Monday, 26 February 2018

CULTURE MATTERS


CULTURE MATTERS

In the early 1990s, I happened to come across economic data on Ghana and South Korea in the early1 960s, and I was astonished steoe how similar their economies were then. These two countries had roughly comparablele vels of per capita GNP; similar divisions of their economy among primary products, manufacturing, and services; and overwhelmingly primary product exports,
with South Korea producing a few manufactured goods. Also, they were receiving comparable levels of economic aid. Thirty years later, South Korea had become an industrial giant with the fourteenth largest economy in the world, multinational corporations, major exports of automobiles, electronic equipment, and other sophisticated manufactures, and a per capita income
approximating that of Greece. Moreover, it was on its way to the consolidation of democratic institutions. No such changes had occurred in Ghana, whose per capita GNP was now about one-fifteenth that of South Korea’s. How could this extraordinary difference in development be explained? Undoubtedly, many factors played a role, but it seemed to me that culture had
to be a large part of the explanation. South Koreans valued thrift, investment, hard work, education, organization, and discipline. Ghanaians haddifferent values. In short, cultures count. Other scholars were arriving at the same conclusions in the early 1990s.
This development was part of a major renewal of interest in culture among social scientists. In the 1940s and 1950s, much attention was paid to culture xiu Foreword as a crucial element in understanding societies, analyzing differences among
them, and explaining their economic and political development. Among the scholars involved were Margaret Mead, Ruth Benedict, David McClelland, Edward Banfield, Alex Inkeles, Gabriel Almond, Sidney Verba, Lucian Pye,
and Seymour Martin Lipset. In the wake of the rich literature these scholars produced, work on culturein the academic community declined dramatically in the 1960s and 1970s. Then, in the1 980s, interest in culture asa n explanatory
variable began to revive. The most prominent and most controversial early contribution to this revival was written by a former USAID official,
Lawrence Harrison, and was published by the Harvard Center for International Affairs in 1985. Entitled Underdevelopment Is a State of Mind-The Latin American Case, Harrison’s book used parallel case studies to demonstrate
that in most Latin American countries, culture had been a primary obstacle to development. Harrison’s analysis generated a storm of protest from economists, experts on Latin America, and intellectuals in Latin America. Inthe following years, however, people ianl l these groups began to see elements of validity in his argument. Increasingly social scientists turned to cultural factors to explain modernization,
political democratization, military strategy, the behavior of ethnic groups, and the alignments and antagonisms among countries. Most of the scholars represented in this book played major roles t hine renaissance of culture. Their successw as signaled by the emergence of a countermovement that pooh-poohed cultural interpretations, symbolically and visibly manifested in a highly skeptical December 1996 critique in the Economist of recent works by Francis Fukuyama, Lawrence Harrison, Robert Kaplan, Seymour MartinLipset, Robert Putnam, Thomas Sowell, and myself. In the scholarly world,
The battle has thus been joined by those who see culture as a major, but not the only, influence on social, political, and economic behavior and those who adhere to universal explanations, such as devotees of material self-interest
among economists, of “rational choice’’ among political scientists, and of neorealism among scholars of international relations. Indeed, the reader will find some of these views expressed in this book, which by design includes
dissent from the thesis captured in the title. Perhaps the wisest wordos n thep lace of culture in humana ffairs are those
of Daniel Patrick Moynihan: “The central conservative truth is that it is culture, not politics, that determines the success of a society. The central liberal truth is that politics can change a culture and save it fromit self.” To explore the truth of Moynihan’s two truths, the Harvard Academy for International and Area Studies organized, under the direction of Lawrence Harrison, the
project of which this book is the principal but not the only product. To what extent do cultural factors shape economic and political developmentI? If they Foreword xu do, how can cultural obstacles to economic and political development be removed or changed so as to facilitate progress?

To wrestle with these questions effectively, it is first necessary to define our terms. By the term “human progress” in the subtitle of this book we mean movement toward economic development and material well-being, social conomic
equity, and political democracy. The term “culture,” of course, has  had multiple meanings in different disciplines and different contexts. It is often  used to refer to the intellectual, musical, artistic, and literary products of a society, its “high culture.” Anthropologists, perhaps most notably Clifford Geertz, have emphasized culture as “thick description” and used it to refer to
the entire way of life of a society: its values, practices, symbols, institutions, and human relationships. In this book, however, we are interested in how culture affects societal development;if culture includes everything, it explains
nothing. Hence we define culturei n purely subjective terms as the values, attitudes, beliefs, orientations, and underlying assumptions prevalent among people in a society.

This book explores

Sunday, 25 February 2018

Different Types of Loans

All loans, no matter what they are, are either secured or unsecured. Knowing the difference can better help you understand how they work and what to expect when applying for one.

Secured Loans

A secured loan is one that relies on an asset, such as a home or car, as collateral for the loan. In the event of loan default, the lender can take possession of the asset (foreclose on a home or repossess a car, for example) and sell it to recover the amount of money loaned. For this
reason, interest rates for secured loans are often lower than those for unsecured loans.
In many cases, such as in the purchase of a home, the asset to be used as the collateral will need to be appraised before the terms of the loan can be set.
Examples of secured loans are:
  1.         Car loans
  2.         Boat (and other recreational vehicle) loans
  3.         Mortgages
  4.         Construction loans
  5.         Home equity loans
  6.         Home equity lines of credit
  7. ·        Unsecured Loans

Unsecured loans do not require the borrower to put forth an asset for collateral. The lender relies solely on the borrower’s credit history and income to qualify him for the loan. If the borrower defaults, the lender usually has to try to collect the unpaid balance through a variety of efforts which may include using collection agencies, freezing accounts, lawsuits, and garnishing wages. Because there is a considerably higher assumption of risk on the lender’s part with an unsecured loan, the interest rate is usually much higher.
They are often more difficult to obtain and the amounts loaned are usually lower than that for secured loans.
  1. Examples of Unsecured Loans are:
  2.         Personal loans
  3.         Personal lines of credit
  4.         Student loans
  5.         Credit cards/department store cards
  6.         Payday Loans

Payday loans are relatively new on the loan scene. They are short-term loans borrowed using the borrower’s next paycheck as guarantee for the loan so, in a way, they are secured. However, payday loans have notoriously high annual percentage rates (APRs) and can be difficult to pay off. Banks do not generally offer Payday bloans. Most establishments offering them are private companies with separate storefronts.
Title Loans
A title loan, also fairly new, is a type of secured loan where the borrower can use
their vehicle title as collateral. Borrowers who get title loans must allow a lender to
place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount. When the loan is repaid, the lien is removed and the car title is returned to its owner. If the borrower defaults on their payments then the lender can repossess the vehicle and sell it to repay the borrowers’ outstanding debt. Typically, the same companies that offer Payday loans will also offer title loans.
Student Loans
Student loans are, of course, used to get a person through college or other educational institution. There are many different types of student loans including:
        Stafford loans, the most common federal education loans
        students receive. They can be either subsidized or unsubsidized.
        Perkins loans, low-interest federal loans, administered by the school, for students who demonstrate exceptional financial need.
        PLUS loans, usually used to cover expenses not met by other federal
        financial aid. These can be taken out by dependent students’ parents or by graduate students.
        Institutional loans, non-federal aid that schools loan their students.
        Private loans, usually sought by parents of students ineligible
for other aid or those who do not receive enough aid to cover the cost of attendance. In many cases, these must be secured by some form of collateral.
Mortgages
Mortgages are probably the most complicated types of loans and have the most variations, the first being who is underwriting or guaranteeing the loan. A mortgage loan might be any one of the following:
Conventional
Conventional loans are those that aren’t insured by a government agency like the Federal Housing Administration (FHA), Rural Housing Service (RHS), or the Veterans Administration (VA). Conventional loans may be conforming, meaning they follow the guidelines set forth by Fannie Mae and Freddie Mac, or non-conforming, meaning they don’t meet Fannie and
Freddie qualifications.
        FHA Loans
FHA mortgage loans are insured by the government through mortgage insurance that is funded into the loan. First-time home buyers are ideal candidates for an FHA loan because the down payment requirements are minimal and the borrower’s FICO credit score does not affect the interest rate.
VA Loans
This type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The main benefit to a VA loan is the borrower does not need a down payment. The loan is guaranteed by the Department of Veteran Affairs, but funded by a conventional lender.  Mortgage loans also vary greatly by repayment parameters. These days there are many options including:
Fixed-Rate Mortgages
A fixed-rate mortgage is one in which the interest rate on the note remains the same through the term of the loan. As a result, the payment amount and the duration of the loan are fixed. The borrower makes a consistent payment, usually monthly, for a specified number of years until
the loan is paid off. These payments are amortized, meaning that, as time goes by, more of each payment is applied to the principal than to interest.
The most common type of fixed-rate mortgages are 30 year and 15 year but other variations are also available. Adjustable-Rate Mortgages An adjustable-rate mortgage, commonly called an ARM, is one in which the interest rate fluctuates. It can move up or down monthly, semi-annually, or annually. In many types of ARM, the rate remains fixed for a period of time before it adjusts. For example, the rate on a 5-year ARM with a 30-year term will not be adjusted for the first five years.
With any ARM, it is important to note how frequently the interest rate can adjust, plus the index and the margin used to set the new interest rate. In other words, if it is tied to the prime rate and that rate jumps by 2 points in a year, the ARM rate could jump as well. However, there is often
a cap put on how much the rate can be raised in a single adjustment period.
Interest-Only Mortgage
Interest-only loans contain an option to make an interest-only payment. The option is available only for a certain period of time. However, some mortgages are indeed interest only and require a balloon payment, consisting of the original loan balance at maturity.
Balloon Mortgages
These mortgages are structured with a payment schedule similar to that of a thirty year fixed rate loan, although the term of the balloon loan is shorter, most often spanning five to seven years. At the end of the loan term, the outstanding balance must be paid in one lump sum, often by refinancing the home.
Reverse Mortgages
Reverse mortgage are available to any person over the age of 62 who has enough equity in their home. Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for as long as the borrower resides in the home (or it can be an up-front lump sum payment). The interest rate can be fixed or adjustable. When the
homeowner moves out or passes, the house is sold and the mortgage is paid off.
Home Equity Loans
A home equity loan is a loan for a fixed amount of money that is secured by a home. The borrower agrees to repay the loan with equal monthly payments over a fixed term, just like the original mortgage. If the borrower defaults on the payments, the lender can foreclose on the home. A homeowner must have equity in the home to get a home equity loan, thus the name. The equity is the appraised value of the home minus the amount still owed on the original mortgage. Usually, the maximum loan is for a certain percentage, say 90%, of the total value of the home minus the amount of the original mortgage.
Home Equity Lines of Credit
Like a home equity loan, a home equity line of credit — commonly known as a HELOC —requires the borrower to use his home as collateral for the loan. The HELOC, however, works much differently. It is a revolving line of credit, much like a credit card, against which the homeowner can borrow by writing a check or using a check card connected to the account.
The credit can be used as needed, however, the total amount that can be borrowed is set much like the Home Equity loan. Because a HELOC is a line of credit, the borrower makes payments only on the amount actually borrowed, not the full amount available, which can be an advantage for many people. Also, even after paying down a HELOC, the homeowner can re-borrow amounts up to the credit limit of the HELOC. Benchmark Community Bank tries to make the advice on its Financial Answer Center as useful and reliable as possible.
Information has been gleaned from a number of expert resources. However, the purpose of this advice section of the website is to provide customers and visitors with general guidance and useful tips only. It doesn't necessarily deal with every important topic or cover every aspect of the topics with which it deals and might not be relevant or appropriate in all circumstances. It is not designed to provide professional advice and should not be relied on as such. If in any doubt, you should consult an appropriately qualified expert for specific advice before acting on any of the information contained in the Answer Center.

Insurance in Islam Social Insurance


Insurance in Islam Social Insurance

Only risks involving heavy charges form objects of insurance, and these differ according to the times and social conditions, Among the Arabs at the commencement of Islam, daily ailments were unknown and the cost of medical care was practically nothing. The average man built his house with his own hands, and did not pay even for the major part of the material. Thus it is easy to understand why one had no need of insurance against sickness, fire etc. On the contrary, insurance against captivity and against assassination were a real need. Already in the time of the Prophet, this point had received attention, and certain dispositions were made which had the elasticity of further development and adaptation to circumstances. Thus, in the Constitution of the City-State of Medina of the first year of the Hijrah, this insurance is called ma'aqil and it worked in the following manner. If someone was made a prisoner of war by an enemy, payment of ransom was needed to procure his liberation. Similarly, all bodily torts or culpable homicides required payment of damages or blood money. This often exceeded the means of the individual concerned, prisoner or criminal. The Prophet organized an insurance on the basis of mutuality. The members of a tribe could count on the central treasury of their tribe, to which everybody contributed according to his means. And if the treasury of the tribe proved inadequate, other related or neighbouring tribes were under obligation to render aid. A hierarchy was established for organizing the units into a complete whole. At Medina, the tribes of the Ansarites were well known. The Prophet ordered the Meccan refugees there, who belonged originally to the various tribes of Mecca, or were Abyssinians, or Arabs belonging to different regions, to all constitute a new "tribe" of their own, for purposes of the said social insurance.

Later in the time of the caliph 'Umar, the branches of insurance were organized on the basis of the profession, civil or military administration, to which one belonged (or even of regions). Whenever needed, the central or provincial government came to the succour of the branches, as we have described above when speaking of State expenditure.

Insurance signifies essentially the repartition of the burden of an individual on as many as possible, in order to lighten the burden of each. Instead of the capitalistic companies of insurance, Islam preferred organising insurance on the basis of mutuality and cooperation, aided by a pyramidal gradation of the branches culminating in the central government.

Such a branch could engage in commerce with the help of unutilized funds remaining at its disposal, so that the capital is augmented. A time might come, when the members of a branch could be fully exempted from paying further contributions, or might even receive amounts of the profits of commerce. It goes without saying that these elements of mutual aid could insure against all kinds of risks, such as accident of traffic, fire, loss in transit, and so on. Also, it goes without saying that the insurance business is capable of being "nationalized" for all or certain kinds of risks (i.e. temporary motives such as the dispatch of parcels, etc.).

Without entering into technical details, it may be pointed out that capitalistic insurance, in which the insured person does not participate in the benefits of the company in proportion to his contributions, is not tolerated in Islam as this would constitute a form of game of chance.


In passing, we might mention another social institution of the time of the caliph 'Umar. He had organized a pension system for all the inhabitants of the country, and according to the Kitab al-Amwal of Ibn Zanjuwaih and ar-Risalahal-'Uthmaniyah of al-Jahiz, even non-Muslim subjects were among the beneficiaries of these pensions - so much so that as soon as a child was born, he began to receive a certain pension. The adults received the minimum necessary for living. In the beginning, the caliph practised a certain discrimination amongst the different categories of the pensioners, and if the minimum was one, the most favoured person received forty; yet towards the end of his life, he decided to observe complete equality, but he died before this reform could be introduced. This institution, named "Diwan," by 'Umar, seems to have originated in the very time of the Prophet, as the following report implies: "The basis of this practice is the narration that the Prophet named Mahmiyah ibn Jaz' to be in charge of the governmental fifth of the booty captured on the Banu'l-Mustaliq; and in fact Mahmiyah was in charge of the governmental fifth of all booties. The sadaqat (zakat taxes) were controlled separately and had their own particular administration. 
However, peaceful revenues from the enemy (fay') were administered by separate functionaries. The prophet used to spend the sadaqat on orphans, the weak and the poor. If the orphan reached puberty and military service (Jihad) became his duty, he was transferred from the list of the beneficiaries of the sadaqat to that of the fay'. If he refused to render military service, he would not benefit any more from the sadaqat and was commanded to earn his livelihood himself." (cf. Sarakhsi. Sharh as-Siyar al-Kabir, ed. Munajjed. 1978).

Project management And Project Manager Responsibilities

Project management administers the arranging, sorting out and executing a project. A project is an endeavor in particular begins and end parameters intended to create a characterized result, for example, another PC framework. A project is unique in relation to continuous procedures, for example, an administration program or an advantage management program.

The project management design is relied upon to adequately and proficiently directs all parts of a project all the way, with the perfect objective of conveying the result on time and on a spending plan. A project design frequently starts with a project sanction, and it is required to distinguish potential difficulties ahead of time and handle any barriers as they emerge so as to keep the project on a plan.

Project Manager Responsibilities

Business pioneers perceive project management as a particular capacity inside the association and contract people particularly prepared in this teach - i.e., project supervisors - to deal with their association's project management needs.

Project supervisors can utilize different strategies and ways to deal with run projects, for the most part choosing the best approach in light of the idea of the project, hierarchical needs and culture, the attitudes of those taking a shot at the projects, and different components.

Dealing with a project includes different advances. Despite the fact that the wording for these means differs, they regularly include:

Defining project goals;

Outlining the steps needed to achieve those goals;

Identifying the resources required to accomplish those steps;

Determining the budget and time required for each of the steps, as well as the 

project as a whole;

Overseeing the actual implementation and execution of the work; and

Delivering the finished outcome.

As a major aspect of a solid project management design, project administrators execute controls to evaluate execution and advance against the setup timetable, spending plan, and destinations laid out in the project management design. This is frequently alluded to as the project scope.

Since projects regularly require groups of specialists who don't normally cooperate, viable project management requires solid correspondence and transaction aptitudes. Project chiefs additionally need to work intimately with the numerous partners who have interests in any given project, another zone where solid correspondence and transaction aptitudes are fundamental.


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