Present Day Scenario & Needs
Transparency amidst board members and greater demand for individual accountability has become a must for Arab Companies as the economy is adopting a market based approach.
“Corporate Governance” the term did not exist in the Middle East & North Africa either in the government books or Arabic terminology as the areas primitively housed companies and enterprises which were owned by individual families or states.
In order to run modern day businesses few elements like transparency and conflict of interest were absent, as the companies carried out unorganized and self-restricted policies without adhering to the social elements.
To the positive side of things, in present day scenario 14 out of 17 economies present in the middle-east have adopted “hawkamah” a term which refers to “governance.” However the economies that are in transition on the political and economic fronts, the process of adopting corporate governance has not yielded positive results.
The industries have got a boost with Shale Gas slicing the cost of natural gas by as much as 65%. This reduction in costs has consolidated the industries but also poised challenges for the industries across the globe. The closest competitor being the Industries in Europe have been affected adversely by this added advantage to the US industries. Companies are refraining from investing more money as the labor and natural gas both cost more than the competitors.
European Chemical Industry faces severe threats to the extent where their survival is at stake. Petro-chemical industries attract major investments in the present market scenario. In such competitive market the natural gas costing to the US has reduced from 12$/MBTU to 3$/MBTU whereas the costing for natural gas which is the life and blood of the industry has been oscillating between 8$/MBTU – 11$/MBTU. Such a huge price differential definitely attracts investment in favor of the US companies. US companies have undertaken mass production owing to reduced costs and thus have hence far established their supremacy on both the vital fronts viz. Costing and Quantity.
Commercial banks are profit seeking organizations. The way the commercial banks handle their portfolio is how the profits are reflected in their books. Portfolio management is basically how the commercial banks handle their assets and liabilities. Portfolio management refers to the management of assets and liabilities in such a way that the profits are maximized. Though banks want to make profits but at the same time they are concerned about liquidity and safety. In fact these three namely liquidity, profitability and safety are the main objectives of a monetary policy.
Banks have to earn profits because if they don’t, they would not work as all the shareholders would sell off the shares if proper dividends are not earned. Hence they have to earn profits for their shareholders and at the same time satisfy the withdrawal needs of its customers. The main problem here comes is sticking the balance between liquidity and profitability as both contradict each other. This is the trade-off between liquidity and profitability.
In each of country, healthcare system is arguably one of the fundamental aspect. The government of the states has been constantly refining its metrics with regards to health. This is an extreme necessity of the health care is to carry on. One of the most important things to do would be to focus on the patient’s betterment and to take feedback from them. Feedback will help you know if the patient is really happy. This is necessary not only in the public sector but also in the private sector. The future of health care is in a dilemma at the moment and needs to be carefully looked at. The quality as well as the economical stats are in dire need of improvement. These are required not on a small scale but on a large nationwide scale.
Practices That Will Help Improve The State Of Affairs In The Health Care Sector
1. Payments based on values – This means that the patient has received exactly what he spent his or her money for. Otherwise, he or she will get full refunds. This can now very easily be done because of numerous new technologies. All one has to do is collect the data and send it across. It isn’t difficult to prove whether the treatment was efficient or not. It can easily be done in the form of “patients”.
There is no greater priority for the nation than to put the citizens back to work. Look around, there are millions who are unemployed. Nations needs to constantly looking at job creations for younger generations and growing workforce, and also for job replacements that were lost in the transitions.
Those policymakers who are looking out for solutions, they need to create a business environment which would be conducted to the success of smaller businesses as well as the entrepreneurs. The principal drivers of the growth of the job sector are the small and the medium sized enterprises ( or SMEs ) which generate about two thirds of the new jobs which is as per the data of the U.S. Small Business Administration.
The second ingredient that is needed to create jobs successfully is a focus on trade. The opportunity to tap into the dynamic foreign markets has a higher appeal as the foreign markets make up about 80% of the purchasing power of the world and contributes more than ninety percent in the economic growth of the country and provides over ninety five percent of the consumers.
We know that the population of our planet is increasing at an alarming rate and soon it will reach the 10 billion mark. For the survival of the people we need the natural resources. The demand for food and energy will be more year after year. So, it is necessary for the conservation groups to adopt necessary strategy to conserve the natural resources. According to the available data and lessons learned from the work of conservation groups including nature conservancy, it is clear that education is the best strategy for conservation, especially educating the young women from the developing countries of the world.
It will be difficult for most conservationists accept the fact that education can aid in conservation. The nature conservancy’s Africa program tried to conserve a vast forest area on the western boundary of Tanzania. This area contained the Mahale Mountain National Park. This area had a good population of wild animals including elephants, chimpanzees etc. The project area also covered a great portion of Lake Tanganyika which is famous for the biodiversity. Most of the people in this area were dependent on farming and fishing and hence there were complex land and water conservation issues. A survey conducted on 50, 000 people in the area, on the socioeconomic issues showed that about 49 % of the population were under 15 years of age and the average household size was 6.7 which is highest in the world. The under –age-five mortality was highest here.
With the rapid progression of technology advancement, it is arguably that innovation is vital for the economy progress. There is much research going on in different universities across a range of different subjects like material science, renewable energy, medical technologies and the Big Data. If we need to ensure that innovations grow into commercial products that have the capability to create jobs as well as services, collaboration has to be sought out between the government, the industry and the academia for the innovation process.
If this succeeds then it will certainly prove to be a game changer for a country.
The federal government has a key role to play in the funding of basic research and to align it with the needs of the public while the private industry has the primary responsibility to deliver as per the federal investment. For the universities it is crucial to move the discoveries and the ideas from the game house to the real world in order to fulfill their mission and to make way for a successful future for the university.
There are many people who like to stay in harmony with the nature but in the case of people who does not find it worth. Since they found that the industry, though finds to be helping people will harm the nature and this leads to find no harmony. This makes us find a way of investing where social responsibility also takes its place. Living together in harmony needs some investment which is termed with the help of ESG investing (environment, social and governance investing) which helps to gain harmony. There are several people who have their own view about the investing and plan to improve it in their own way.
When the term of staying in harmony with the nature is put in 66 CFA Institute Conference in Singapore, which was headed by Glenn K. Silverman, the Investing Solutions chief investment officer says that people are emotionally attached to the nature and it is important to take care of the nature to improve productive harmony. Though I am not an environmentalist, I always want to make sure to have safe clients say Mr. Silverman.
People usually have the right to get a foreign account for themselves to make the savings and the information about the account will not be given to anyone. This makes people to have all the information safe but they in turn have to pay tax for even a foreign account. In such cases, it is imprinted to know that people can make use of the system where the company or the financial place like bank can share its information with the government so that the tax paid to them will be reduced. Out of all the nations, only the leading nation has decided to have the facility to get and share all the financial information from one country to another to know about all the account holders of the country who have an account in foreign back. Though this sounds good as people need not have to pay the tax to set an account in a foreign country, they might get into a problem as they will be having money which might need to pay the income tax for their own country.
The work has been signed by countries like UK with USA but the only country staying out currently is Switzerland as they state that the information should be secured in the bank and giving out the information might lead to customer dissatisfaction. The Organization for Economic Operation and Development which involves 34 nations in it says it is important to give the information and keep a clear flow of the information so that individuals won’t have to pay the tax for having an account in any country. But Switzerland has a differing opinion. They say that they won’t bow to this deal as the customers of the bank or other financial places have their account as they find them to be more secure and exchange of information might make them less the confidence in these people. The other aspect is that the Swiss law makes has refused the deal and says they don’t like to bow to any of USA deals.
The administration of a country should be in the right hands to lift the country from economic problems and lead it to prosperity. They should understand that science and technology is the tool to achieve prosperity. The growth of the U.S economy after the World War II was mainly due to its advances in the field of science and technology.
It is necessary that the administrators while giving the support to big companies should also consider the needs of small businesses as well. For example president Barack Obama has tried to rescue the car makers in Detroit from facing bankruptcy, but, the effort done to achieve this will be wasted unless the small auto parts manufacturers are not competitive enough. These manufacturers need necessary technical information to produce competitive products to meet the need of the market. The government should support the National Digital Engineering and Manufacturing Consortium which is providing these manufactures the information on technology through the Purdue university and through the Supercomputer center in Ohio.
According to the earlier estimation the world population was expected to reach 8 billion by the year 2023, however some recent studies made by the university of Missouri show that the global fertility rates are reducing faster and there will not be the expected growth in the population. The changes in the economy are affecting the family size and it is slowing down the population growth according to the study. This study was funded by the National Science Foundation.
Mary Shenk, assistant professor of anthropology at the University of Missouri attributes this reduction in fertility rate to high educational attainment of people, increased employment opportunities the shifting of people away from agriculture and improved standard of living. It is expected that by understanding the cause of the reduced birth rate, it is possible to design new policies to influence better fertility. This will result in reduced competition for water, food land etc.
Problems In Food Production
What is to eat will be the big question faced by billions of people in 2050. The crop failures due to droughts, floods and diseases are reducing the availability food. People all over the world are concerned about the sources of food. The growing population makes the scenario even worse. Agricultural industries are already facing great pressure to meet the demands of the market. Agricultural experts are trying to make farming sustainable. The history of mankind shows how the unscrupulous use of resources caused the failure of agricultural revolutions. About 11, 000 years ago the Middle East area had huge cultivation of wheat due to the irrigation facility. The practice of mono-crop and over dependency for water to survive caused desertification and the civilization failed.
The Future Problems