Archive for August, 2012

Human Trafficking, Forced Labor and Modern Day Slavery

August 9, 2012

 

Human trafficking, sex slavery and forced labor are among methods through which rights of human beings are taken away in the present day world. Human rights can most appropriately get discussed under ethical issues. In this regard, it is preferable to consider ethical behaviors as those which involve kindness, compulsion and sympathy, and actions which do not lead to human suffering as well which set an individual at liberty to select on what to do or not to do (Burroughs & Powell 15). Human trafficking, sex slavery and forced labor have been in the rise. They have been occurring all over the world including in Saudi Arabia, America, Thailand, Sudan, among many other countries. However, each category of the vice is preference in certain regions than others. Governments should feel under obligation to eradicate the vice (McCabe 116).

In a general view, the reason for the increased slavery and human trafficking is due to a number of reasons. For instance, it is caused by persistence of racial and ethnic profiling (Bales & Soodalter 20). This is where members of certain races and ethnic communities tend to think that they are superior to others. They therefore use this reasoning to justify their reasons for oppression others (Bolkovac & Cari 3). However, the judiciary should be strict in punishing those who carry out discrimination.

Another factor which has promoted existence of this kind of vice is the problem of poverty. Those who accept to go and work mainly in foreign countries end up getting enslaved. It is unfortunate that they risk of leaving their mother countries for greener pastures not even aware of where they are likely to find themselves later (Baughman 9). They take up the risk since they do not have better opportunities in their own countries. Things only turn to be sour where they get employed by those who are not conscious of human dignity (McCormick 17). Those who have suffered as victims of this form of oppression are even denied access to communication. It is unfortunate that once they have entered into the trap they lack methods of getting out. Today, there is high availability of communications mainly facilitated by the presence of the mobile phone (Cullen 40). This has a key technique through which those who have been enslaved have using to find assistance.

Another reason which has led to high increase of human trafficking, slavery and forced later is lack of understanding of ethical issues among human beings. As it has been described by various philosophers, human beings are born with id, ego and superego (Destefano 11). This takes the society to shape their behavior traits among other factors. Those who fail to develop virtues among them kindness, sympathy and compassion are likely to oppress others (McCormick 89). This can also be explained in the tendency for people to seek to rule and dominate others based on their selfish nature by birth.

There sometimes exists lack of sensitivity of the existence of the inherent dignity in human beings. This leads to some people tending to oppress others in slavery including that of labor and sex. It requires education on human rights (Grant & Grant, 133). When those who break the law on the matter receive punishment, then others develop consciousness on why they should not engage on oppression due to difference in gender, race or language.

The problem of trafficking of human beings which later leads to enslavement as sex workers, domestic workers and other forms of labor is prompted by the existence of demand. The demand on the other hand is caused by the failure of the governments either to form proper framework for curbing the vice or failure to implement it. It is important that every country take the issues seriously on ethical grounds (Hall, et al I 27). For, instance it is wrong to enslave people because it is a form of discrimination. Those who engage in discrimination based on race, gender, religion or any other reason should be prosecuted (Meinert 1). This is because they violate the law by dehumanizing others. In addition, minority and vulnerable groups are the most affected. This includes, children, women and minority ethnic groups. Lack of proper guidelines to protect such groups is the result for their enslavement (McCormick 36).

The civil societies have a key role in fighting against the vices in society mainly those which lead to violation of human rights. In cases where such groups are not active then cases of slavery and human trafficking tend to be high. These groups need to be active and raise their voices against modern using social media, demonstrations and other available means. This will be based on the sensitivity of the weight of the matter in regard to human dignity.

Another reason why the problem of slavery is high whether in domestic work or in the farm is because the oppressed people are not aware of the existence of law to protect them. This ends up leading to acceptance of the vice in the society. Even the neighbors who witness the oppression think that it is normal and thus they do not offer any criticism.

The mass media is an important tool for education and creating of surveillance in society apart from educating the members of public (McGill 96). The current trend in rise of human trafficking and enslavement can be reduced through the media reports and education. Those who accept to move away from their countries but later find themselves getting enslaved are ignorant of the existence of the vice. They therefore accept at their own to be transported to the countries where they later suffer in the enslavement (Skinner 15). The media should talk about the places where the demand for people to be used as sex objects and in labor should be put at the spot both in the electronic and mass media. In other words, the members of the public should be sensitized about the issue so that they avoid making themselves victims (Sher 98).

The rise of human trafficking and consequently enslavement in sex, domestic labor and other forms of labor is as a result of lack of concern at the international community. Though the existence of rules in the Declaration for Human Rights and in the International Humanitarian Law, these rules are not adequate (Trodd, et al 22). Therefore, there is need to strengthen them so that individual governments become responsible for action of its citizens who enslave others. By doing so the laws of the countries regarding the issue will be strengthened as the implementation is as taken seriously (Parrenas 10). There is no doubt that there is a wide gap as the matter lacks enough addressing. It is evident through the continued existence of the problem and even its present increase. Both the Governments of the receiving country of human trafficked people and the country of origin should be held accountable. The question is why they fail to stop this kind of crime from occurring (Hart 35). These governments should take responsibilities of protecting their citizens as well as the whole human race under international conventions. Those who cross the border should do it in justification of where they are going or from where and for which reason.

Lack of education regarding human trafficking and the issue of current day enslavement mainly of domestic worker has not been addressed through school education. This has caused lack of sensitivity on the ethical issues surrounding it. It is necessary that every individual get to understand that human respect and dignity are inherent that that they should be preserved at all cost. This should be emphasized through the teaching that all are equal and there is no prove that there is any human being who is superior to the other by the virtue of birth (Legrain 21). By doing so, a positive culture regarding the image of oneself and others will be inculcated in young generations as they grow. Thus, people will say no to enslavement. They will seek to fight for their dignity at all cost (Kempadoo 32).

Rise of human trafficking and enslavement has lead to increased violation of rights for human life. This is because those who become victims of the situation suffer threats from their masters who may end up killing them (Koser 45). The problem is that in many occasions they lack legal documents and they happen to be in a foreign country not as free people but as slave of the owners. They lack identity and legal documents that the relevant authority does not have legal documents to show where they live. They are fearful to report of their current situation and sometimes they lack power to do so. They get tormented not facing forced labor but also sexual harassment (Kasten & Sage 67). Finally, some get killed.

The existing gap in the execution of rules of migration forms a leeway for the increased rate of human trafficking. This is seen in the crossing of borders of individuals from of different countries to other countries where they move to seek for employment. Governments need to put strong measures in guarding the borders so that people do not cross without the right documents (McCabe, 116). The security personnel should work to detect illegal immigrants. Any person noted to have come into a country or moved out as a result of human trafficking by use of illegal or legal documents should be forced by all means to give information regarding those who are engaged in the act (Kara 109). Such people should be dealt with in regard to both in internal law of the country as well as international conventions.

The worst form of human trafficking the present time is that which involve child trafficking. It violates the rights of children (King 84). Children should be highly protected against any form of suffering since they are young, vulnerable, tender and in the process of adopting in the world through learning. They have not developed to make certain decisions and they are being trained to do so. The government, the civil societies, non-governmental organizations have taken up this responsibility. The rights of children well stipulated in the different laws and conventions (Bales 23). It is totally unfair to take away a child from their family for it is a right of every child to grow up in a family in which they find identity. Also, trafficking of children leads to other evils like child labor. There is need to the governments to emphasize that parents should guard their children against such cases (Bales 15). Those lost children should be immediately reported and measures immediately taken to identify them and take them back to their families.

In conclusion, there has been increased reporting of human trafficking, sex slavery, domestic labor slavery and farm labor slavery. All these forms of actions are unethical because they are deny the victims of their inherent dignity. The factors that lead to high rate of the crimes is due to existence of demand, lack consciousness about the need to respect all be people as equal being, ignorance of the victims, lack of action by the media and civil society in fighting against the vice and lack of education in schools regarding the matter. Individual governments and the international community’s need to work together to stop these kind of crimes from occurring.

 

 

Work Cited

Bales, Kevin. Disposable People: New Slavery in the Global Economy. California: University of California press, 1999.

Bales, Kevin. How We Free Today’s Slaves. California: University of California press, 2007.

Bales, Kevin and Soodalter, Ron. Human Trafficking and Slavery in America Today. California: University of California press, 2009.

Baughman, Christopher. Off the street: Prostitution is not a victimless crime. California: Behler Publications, 2011.

Bolkovac, K. and Cari, L. The Whistleblower: Sex Trafficking, Military Contractors, and One Woman’s Fight for Justice. New York: Palgrave Macmillan, 2011.

Burroughs, Dillon and Powell, Charles. Not in My Town: Exposing and Ending Human Trafficking and Modern-Day Slavery. New Hope Publishers, 2011.

Cullen, Kathryn. Humantrafficking. Facts on File Publishers, 2009.

Destefano, Anthony. The war on human trafficking: US Policy Assessed. New York: Anthony Destefano.

Grant, David and Grant Beth. Beyond the Soiled Curtain: Project Rescue’s Fight for the Victims of the Sex-Slave Industry. Onward Books Publishers, 2007.

Kara, Siddharth. Sex Trafficking: Inside the Business of Modern Slavery. Columbia University Press, 2009.

Kasten, Liora and Sage, Jese. Enslaved: True Stories of Modern Day Slavery. New York: Palgrave Macmillan, 2008.

Kempadoo, Kamala et al. Trafficking and prostitution reconsidered: new perspectives on migration, sex work, and human rights. Paradigm Publishers, 2005.

King, Gilbert. Woman, Child for Sale: The New Slave Trade in the 21st Century. Chamberlain Bros, 2004.

Koser, Khalid. International Migration: A Very Short Introduction. Oxford University Press, 2007.

Legrain, Philippe. Immigrants: your country needs them. Princeton University Press, 2007.

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International Human Resource Management for MNEs

August 2, 2012

Introduction

The term, Multinational Enterprises (MNEs), refers business organizations operating on an international level or having international commerce. It is a traditional term that refers to organizations that conduct business operations in places outside their mother countries. MNEs can be subdivided into three categories, multinational MNEs, International MNEs and global (transnational) MNEs (Briscoe and Schuler 2004). These terms seem to be used interchangeably but some slight differences exist between the three MNEs descriptions. Global or transnational MNEs refer to business organizations having a high percentage of sales (over 50 percent) and employees outside their mother countries. These organizations usually have operations in several countries with highly centralized policies but highly decentralized operations and marketing activities (operations and marketing are localized within a given country) (Briscoe and Schuler 2004).

On the other hand, international or multinational MNEs refer to organizations having international operations. However, these operations are not as developed and advanced as is the case with global or transnational MNEs. Whichever the case, MNEs have operations in several countries. For the purpose of this research, MNEs shall be defined as organization operating in countries outside their mother countries.

To date, it is believed that there are well over sixty thousands MNEs all over the world, which employ, directly and indirectly, over 75 million people all over the world (Briscoe and Schuler 2004). The rate at which MNEs are growing and increasing in number is high and the number of people employed by MNEs is increasing significantly. Business internalization has various consequences, particularly to the human resource management (HRM). Business internalization affects various HRM issues and concerns including staffing, executive development, compensation and labor relations among others. Human resource management for MNEs then becomes complicated and exceedingly crucial considering that various HRM issues, such as labor relations, employment policies and employee availability among others, often vary from country to country.

Another important HRM issue facing multinational enterprises is cultural diversity, since operating in different countries implies dealing with employees from different cultural backgrounds. This situation may be made worse when employees from different cultures are pulled to work together in the same station. Therefore, there is a need to understand the various challenges facing multinational enterprises’ human resource managers and how MNEs overcome these challenges. Such an understanding is crucial towards equipping MNEs human resource managers with the correct tools for business success.

Literature Review

Literature review is an unending process of research work (Kumar 2005: 12). The process begins with definition of the research problem and continues until the end of the research study under consideration. The literature review process comprises of four distinct steps: literature search, critical review, development of a theoretical research framework and, finally, development of the conceptual research framework. This section presents a critical review of literature in international human resource management.

Forms of International HRM

When viewed from the HRM perspective, internalization can take different forms: operating parent-country firms overseas and Operating foreign firms in the home country. The difference between the two IHRM setups is concerned with the HR managers’ position with respect to a firm’s HR policies and practices (Floor van den Born and Peltokrpi 2010 & Varma, Pichler and Budhwar 2011) and the challenges associated with the firm’s policies and practices. Whichever the setup, cultural difference, language difference and differences in employment policies between the firm’s parent country and host countries poses challenges on HRM practices especially on recruitment (Rogerson-Revell 2007 & Rogerson-Revell 2008).

Operating parent-country firms overseas

This is the situation where a human resource manager works as a human resource professional for a parent country, in the main headquarter or regional headquarters of the MNE under consideration. In figure 1 (IHRM model), the situation is shown by firm “X”. This form of international HRM could also imply working as an expatriate human resource manager in a foreign MNE’s subsidiary (Varma, Pichler and Budhwar 2011). Headquarters IHRMs have various responsibilities, which include employee selection, employee training, transfer of employees between the various firm’s locations in the country, determination and the administration of appropriate compensation, establishment of HRM policies and practices for the foreign operations of the firm under consideration (Hocking, Brown and Harzing 2007). In most instances, local human resource managers are nationals of the host country or host country nationals (HCNs). Several researchers argue that this setup is aimed at ensuring efficiency in HRM practices (Myloni, Harzing and Mirza 2007; Vo 2009; Simonin and Ozsomer 2009; Olsen and Martins 2009; Massingham 2010; Reiche 2011; Hang-Yue and Foley 2011 & Judge and Li 2012). This is so considering that hiring of the workforce, in host countries, is usually done at a local level and employment rules and practices of the MNE must align with those of the host country.

However, this setup, which essentially leads to centralization of HR policies and practices, is associated with various problems especially with interface for subsidiary managers. When HR policies and practices are dictated from the parent-firm headquarters, HR managers at the local level (subsidiary managers) differ from HR managers from the firm’s parent country (HQ) (Pudelko and Harzing 2007). This, according to Pudelko and Harzing (2007), becomes a major issue where employment policies and culture differ between the firm’s parent country and local countries.

A new trend is emerging that is making IHRM more complex than before, which is aimed at ensuring that HR managers get international experience for the benefit of MNEs. According to Vance, Vaiman and Andersen (2009), MNEs are increasingly sending HR managers to foreign countries or giving them foreign assignments. This strategy results to a complicated IHRM since a HR manager from country A may be stationed at country B or at the firm’s parent country (HQ), which is not his mother country. Being a new trend, much research work has not been done on this form of IHRM.

Figure 1: IHRM Model (Briscoe and Schuler 2004)

Operating foreign firms in the home country

The second form of international human resource management is where a human resource manager works at his or her home country, at the foreign subsidiary of a foreign multinational enterprise (Ando 2012). Such an arrangement is presented by firm Y in figure 1. According to Ando (2012), such an arrangement also involves working as a HR manager for a firm in ones country, which has been purchased by a foreign firm, multinational firm or a local firm striving to become an MNE, such that the firm under consideration is owned by foreigners. In both cases, the underlying factor is the fact that the HR manager works for a foreign-owned firm, but in his or her home country.

Consequently, HR managers working under this setup are on the receiving end when it comes to HR policies and practices (Floor van den Born and Peltokrpi 2010). HR managers work with foreign headquarters and, in some instances, expatriate managers who have been sent to work at the firm’s subsidiary. Accordingly, Ando (2012) concluded that these HR managers are often faced with the challenge of integrating local operations with the firm’s foreign headquarters. There often arise differences between host country and the firm’s parent country with respect to language, employment laws, employment practices and cultures (Briscoe and Schuler 2004). These differences may leave HR managers working under this setup to face various challenges.

Available research has concentrated on each of the two IHRM setups. However, there is no available research to compare the two IHRM setups. Such an analysis is crucial in establishing the best IHRM setup that will ensure MNE efficiency and effectiveness.

Aims

This research study is aimed at analyzing the challenges faced by international human resource managers aimed at establishing the best IHRM setup.

Objectives

Based on the aforementioned aim of the study, the objectives of this study are as follows:

Understanding the IHRM setup being employed by firms or IHRM setup in which IHRM managers for different MNEs operate.

Understanding the challenges facing international HR managers under the different IHRM setups

Analyzing the challenges facing international HR managers under each of the IHRM setups to evaluate the best IHRM setup

Outcomes

At the end of the study, the researcher will data have collected and analyzed data that will show the different IHRM setups alongside their challenges with respect to HR policies and practices. The analysis will show the best IHRM setup (the one associated with fewer challenges than the other will).

Personal Justifications

Successful completion of the research study requires a coherent understanding of international human resource management and the operation of MNEs. Further, the research study requires an understanding of data collection and analysis techniques. The researcher is highly competent on the three issues, which will ensure successful completion of the research study.

Methodology

Research methodology is usually aimed at providing the researcher with the guidelines and principles for conducting a research study, which he or she should apply when conducting his/her research activity (Goodwin and Goodwin 1996: 162). If a researcher fails to adhere to the guidelines and principles, it is highly possible that he or she will come up with questionable results, which only serve to deny the research its meaning and purpose (Kumar 2005: 14). In light of this, this section seeks to highlight the research methodology that will be applied for the research activity at hand.

Research involves collection of data and the analysis of the data to draw conclusions on the issue under consideration. Data validity and reliability are crucial components of every research since they ensure that a researcher makes valid conclusions and appropriate recommendations. Data validity and reliability are achieved through use of the correct research approach and data collection method, which depends on the topic under research. Accordingly, the researcher will strive to select the most appropriate research approach and data collection method.

There are two main research approaches: quantitative research and qualitative research. Quantitative research approach is used to gain deep insight into causes or facts regarding the issue under consideration while researchers use qualitative approach to increase their understanding about the issue under consideration or to develop hypothetical questions (Goodwin and Goodwin 1996: 163). A quantitative approach is best applicable to the research at hand since the research aims at gaining a deep insight at international human resource management on MNEs.

A mixed approach, which combines the two aforementioned research approaches, is very helpful in overcoming the shortcomings that are unique to each of the main research approaches (Goodwin and Goodwin 1996: 163). In the attempt to ensure data validity and reliability, a mixed approach will be used, which will result into a combination of numerical and non-numerical data being collected.

As aforementioned, the selection of an appropriate data collection method is paramount to ensuring data validity and reliability. According to Kumar (2005: 14), the data collection method to be employed for a specific research activity largely depends on the research approach being employed. A survey method will be used to collect data from HR managers of UK firms and MNE subsidiaries. A questionnaire will be designed, which will be used to assess the various components of an organization’s HRM system. Completing the questionnaires will either be either during interviews with the HR managers or they shall be sent by post and completed by the HR managers at the absence of the researcher. During the interview process, respondents will provide additional qualitative data but only quantitative data will be collected when questionnaires are sent by post. A sample size of 480 multinational enterprises’ human resource managers from the United Kingdom, the focus of the study, will be used

Resources

Resources for the research study will be as follows:

Item

Description

Units

Rate (USD)

Total (USD)

Questionnaires

preparation of 480 research questionnaires, 2 pages each

960

12

Postage

Postage of 480 questionnaires

480

0.375

180

Transport

Interviewing 60 HR managers

60

25

1500

Total

1692

Evaluation

The sample size of 480 international HR managers from UK MNEs is sufficient to draw a valid conclusion. The research methodology, including the research approach and data collection method to be employed will lead to valid and reliable data being collected.

Bibliography

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Multinational Companies: Alignment with Strategic Orientation and Human Resource

Management Practices”. Journal of Business Communication, vol 47, no. 2, pp. 97-118.

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Research in Early Childhood Education. Amsterdam Avenue, New York: Teachers

College, pp. 161-163.

Hang-Yue, N. & Foley, P. 2011. “Factors Affecting the Adoption of High Performance Work

Systems in Foreign Subsidiaries: An Empirical Investigation in Hong Kong”.

International Journal of employee studies, vol 19, no. 2, pp. 1- 30.

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Expatriate Knowledge Transfer, Application, and Learning within a Transnational

Organization”. Human Resource Management,vol 64, no. 4, pp. 513-553.

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Management, vol 7, no. 3, pp. 47-63.

Kumar, R. 2005. Research Methodology: A Step-by-Step Guide for Beginners. London, UK:

Saga Publication, pp. 12-20.

Massingham, P. 2010. “Managing Knowledge Transfer between Parent Country Nationals

(Australia) And Host Country Nationals (Asia)”. International Journal of Human

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Myloni, B. Harzing, A & Mirza, H. 2007. “The Effect of Corporate-level Organizational Factors

on the Transfer of Human Resource Management Practices: European and US MNCs and

their Greek Subsidiaries”. International Journal of Human Resource Management, vol

18, no. 12, pp. 2057-2074.

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Reiche, B.S. “Knowledge Transfer in Multinationals: The Role of Inpatriates’ Boundary

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English for Specific Purposes, vol 26, pp. 103-120.

Rogerson-Revell, P. 2008. “Participation and Performance in International Business Meetings”.

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Simonin, B.L. & Ozsomer, A. 2009. “Knowledge Processes and Learning Outcomes in Mncs:

An Empirical Investigation of the Role of Hrm Practices in Foreign Subsidiaries”.

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AMERICA`S INFLUENTIAL PIECE

August 2, 2012

Irving Washington’s novel “Rip Van Winkle”

Irving Washington’s novel “Rip Van Winkle” was a great influence on the American culture, highlighting experiences and changes since the Revolutionary War.


Outline

Thesis statement: “Irving Washington’s novel was a great influence on the American culture”.

Outline………………………………………………………………………………………….. iii

I.Abstract………………………………………………………………………………..………iv

II. Overview………………………………………………………………………………………………………………….v

III. Introduction…………………………………………………………………………………vi

1. Character Analysis………………………………………………………………….…….vi

2. Significance of Rip Van Wrinkle’s sleep……………………………………………….vii

IV. Theme of change……………………………………………………………………………vi

  1. Metaphor representing American revolution……….…………………………….vii

  2. The necessity of change in the society………………………………………….viii

  3. Effect of change on Rip and the American society

V.Conclusion……………………………………………………………..……………………xi

V.Work cited……………………………………………………………………..……………xii

The abstract gives a generalized view of the whole research paper based on one source. The overview gives a summary of what is contained in the analysis and conclusion part of the whole report. The whole work highlights the influence Rip Van Wrinkle had in the American culture.

  1. ABSTRACT

The story Rip Van Winkle has been well drafted to cover different time periods in history. It depicts America’s struggle during and after the revolutionary War. Washington has managed to use characters that represent different societies at different times. As such, the story is able to teach us about the past as well as the present. “Rip Van Winkle” means someone who is inexplicably or even blissfully of the current events.  This describes some of the modern socialists of today. The story presents distinctive features that took place in American literary periods, most of them, which occurred particularly in the Romantic Period. “Rip Van Winkle” has been used to help us comprehend the context of American Revolution by observing the behaviors of the American citizens/subjects. It clearly uses imagery that helps us understand how human behaviors are manifested in our culture today.

  1. OVERVIEW

In the introduction part of the research paper, I have given a highlight of the main protagonist in the novel by describing his characters and the characters of his wife. I have also related these two characters to revolution process that took place in America. For instance, Rip represents the Americans, and the deeds of her wife represent the colonists, that is, England. In the analysis part, I have explained why the author chose Rip Van Wrinkle as the main character and how his deep sleep is related to the two contrasting time periods of the American society prior to and after the revolution. In the conclusion, I have illustrated how Rip has been symbolically used as a subject of change in the American Revolution process.

  1. INTRODUCTION

Rip Van Winkle is a short story describing a man who resided in a small village within the Hudson Valley. Rip was a very charming man, and this made everyone to become fond of him. This because he was always willing to help anyone who was in need though, he never tended his own family and farm. He was seen as a kind neighbor who was very obedient. However, his wife could hear none of it. His wife, Dame Van Winkle, saw him as an irresponsible man, and always confronted him in almost everything he did. The constant nagging of his wife made him seek refuge by running away from her only to come back after she was dead and gone.” from the even this stronghold the unlucky rip was at length routed by his termagant wife,”(Bowden 18). Rip has contrasting characteristics. For instance, he is very hardworking to the rest of the people in his neighborhood, but lazy when it comes to his own home. This short story by Washington Irving’s Rip Van Winkle gives an ideal demonstration of the changes America experienced during the revolution after the First World War. It also gives an account of the transition the American Revolution brought, an insight of the colonists and their internal personalities, as well as the extreme changes that were realized in the society. Irving Washington’s novel was a great influence on the American culture.

  1. Character Analysis

When Irving Washingtonwas writing the novel, Rip Van Winkle, he had the American people in his mind. The story was written at time when the American society was experiencing drastic changes that resulted from the American Revolution. After the revolution, the Americans were struggling and working tirelessly hard to form their own identity (Irving 1). The author wrote this novel as one way of inspiring the Americans so that they can form an identity, which would liberate them from the English culture and rule. The author chose Rip Van Winkle as his main character to act as a symbol of early Americans struggle for independence. The struggles that Rip went through are similar the struggles the Americans were going through before and after the revolution (Irving 6). He has described these changes using a series of metaphors to cover the revolutionary experiences. This novel symbolizes the sentiments of the Europeans towards the new American society after the revolution and also establishes the American identity before and after the revolution. The author has used the character Rip Van Winkle to embody America as it was viewed by England. He depicts Americans as useless and indolent subjects of the Crown. Another character in the play Dame Van Winkle is arrogant in character and very demanding. She clearly represents the arrogance of England (Ferguson 529-544). On the other hand, the Townspeople are mirror images of the American society prior and post Revolution. Dame is constantly carrying out the acts of tormenting by forcing him to attend to do some of the household duties. As such, she aggravates Rip so much that he resorts to flee and seek refuge in the town of tavern where he remains idle for some time with his friend. These acts are a direct representation of the political situation in America where the British government is in full controls. The British colonies dominated all the activities in their colonies. They could not allow Americans to take part in any national activity (Freeman 1).

  1. Significance of Rip Van Wrinkle’s sleep

The author chose the term “Rip Van Winkle” to create a character that is oblivious of social change. Rip lives in his own world and time. He remains stuck and fails to keep up with time. He is, therefore, a perfect character who is frozen in time (Williams 172-178). His reawakening has been used by the author to give a contrast of two time periods, by using the cryogenic freezing to bring the character into the future. The two time periods in this case are the prior and post American Revolution, or the twenty years that overlapped the revolution. In the novel, Rip falls in a deep sleep when England was in full control of the American society and their colonies and is reawakened when America has gained its independence from the colonists. This scenario is evident as Rip visits the village he had spent much of his time and finds it completely different (Leary 27). In addition to the political shifts that are contrasting over a period of twenty years, the story has alluded to society’s economic shifts. For instance, society has changed from a rural based economy to an urbanized one as viewed by Rip. His shock and disbelief of the pace and style at which the changes have taken place to the village he once left are genuine as evidenced some of the remarkable quotes he made. While Rip’s view of the Hudson River and Catskill Mountains is a highly romanticized one, his shock at the change in the pace and style of life upon returning to the village is genuine as evident in the quotes he made. The very village that used to be very large had been altered; a few days back it used to be very large and more populous. The familiar huts he was accustomed to had changed and in their place, modern rows of new houses had replaced them, structures he had never seen before. The kind of characters he was used to had changed and instead of the normal drowsy tranquility and phlegm, busy bustling disputatious tones were created (Rubin-Dorsky 499-522).

  1. THEME OF CHANGE

  1. Metaphor representing American revolution

Dame Van Winkle might have had the right of constantly nagging her husband. This is because Rip was never concerned with his family. He fails to show responsibility by taking poor care of his home and farm. As the author notes, the fences of his compound were continually falling giving his a cows a chance of going astray and destroy the cabbages. Furthermore, his children were too wild and rugged because they were left unattended. Ironically, Rip was good at tending his neighbors’ farm and always found time to play with and tend to children from the neighborhood. His wife was therefore, justified in tormenting and nagging him (Rubin-Dorsky 393-406). In the same way, the Royal England imposed hefty taxes on the Americans for them to generate enough revenues as one way of paying for the seven year war which caused them a fortune. It was also one way of protecting themselves against future rebellions. Although this caused uproar among Americans, the colonists remained adamant and could not relent in their efforts of accomplishing their mission. From another perspective, Rip’s actions can be seen as a metaphor given that his rebellion against authority was benefiting the people of the town (Hart). The needs of his family can be likened to the Crown losing ground and respect as the American society gained loyalty of its people. Rip Van Winkle finally sets his mind and walks out on his wife taking his dog and gun alongside him into the woods. This can be viewed by the reader as a metaphor that represents the American Revolution (Diedrich).

  1. The necessity of change in the society

After waking up from his deep sleep, Rip is not in a position to recognize the same people from his village. This is because their faces have changed and the village has taken a new version. His wife among other village people died long ago, and some had left the village and never came back. This represents a revolutionary war from which America gained independence from their colonial masters. The only features that remained unchanged are the Catskill Mountains and the Hudson River. These two remains exactly the same way they were prior to his sleep (Colker 131-133). He also encounters a group of other people who he vividly remembered even though they were too old. This event tells us one thing that changes are necessary if a society has to move forward, however, some of these radical changes should not eradicate the traditions and old ways of a society entirely. In any case, real lasting changes are nothing but an amalgam of both the old and new, and that the new rests on the foundations of the old (Young 547-573). Therefore, though the society has realized some changes continuity is inevitable. Hudson makes some association with Rip’s son. This association between an Englishman and an American means that even if Britain was overthrown, some society values did not die with the revolution (Cummings 1). Interestingly, when Rip wakes up he does not know that revolution had taken place. He finds himself in trouble when he openly presents his loyalty to King George III not knowing that after the revolution, no American was supposed to be loyal to a Hanoverian. (Tulle 1). The Americans had long changed the image of the crown, King George III, replacing it with that of George Washington. The current election process makes Rip more baffled and confused. When asked which side he was to vote, he is thrown into dismay and only shouts his loyalty to King George. The main issue and aim of the story was for the Americans to realize their identity twenty years long after Rip had fallen asleep, something which they eventually did (Irving 78-102).

  1. Effect of change on Rip and the American society

The revolution ignites the fire among the American people and in their spirits. The townspeople gained a lifeline with much anticipation from their self government. In this story, the American people are working hard to do away with the tyranny of their colonial masters; just as Rip is doing the best he can to escape the torments of his wife. His luck however, came when Dame Van Winkle died (Hedges 38-55). This fact is symbolic in that it represents the Rip’s personal freedom and that of the nation as a whole. Upon receiving their freedom, the American people became excited and demonstrated their joy by holding elections. Rip who had always found it difficult to recognize himself in the entire story gets to realize himself in the end after his daughter identified him and took him alongside her. Rip finds happiness and a peace of mind after finding out that his wife is dead and gone. Just like the people of Townsend and the American nation as a whole, reap was eager to enjoy the freedom that he had been longing for and deserved (Curtis 101).

  1. CONCLUSION

We should say that Rip Van Winkle’s story gives leaders a colorful picture of how the American society looked like. The author managed to set a story of a foreigner penetrating the American environment in a significant period when the country was forming a historical identity. All the pictures, landscape descriptions, and historical backgrounds that have been mentioned in the story echoes the culture of the old settlers and also depicts a vivid portrait of the colonies’ way of life and the kind of psychological changes the Americans underwent in the hands of their colonial masters. The revolution that took place then has been represented in a short dream but the resulting changes are seen as the most crucial aspects in the formation revival of the American nation. The author however, championed the entire American enterprise, and gave the American men the courage forging a pleasant future for their country through the main character, Rip.

  1. WORKS CITED

Bowden, Mary. Washington Irving. New York: Twayne, 1981.

Colker, Marvin. Medieval Rip Van Winkle Story. The Journal of American Folklore 76:300 (April-June, 2003), 131-133.

Cummings, Michael.Irwin washingtong’s. 2006.Web. 09/01/2011. <http://www.cummingsstudyguides.net/Guides3/Winkle.html&gt;.

Curtis, George William. Washington Irving: A Sketch. New York: The Grolier Club, 2001.

Cullina, Alice. Classic Note on Rip Van Winkle Story. New York: Grade Saver, 2009.

Diedrich, Knickerbocker. Irwin washingtong’s Rip Van Winkle. 2011. Web. 09/01/2011.<http://www.timetravelreviews.com/shorts/rip_van_winkle.html&gt;.

Ferguson, Robert . “Rip Van Winkle and the Generational Divide in American Culture.” Early American Literature 40:3 (2005), 529-544.

Freeman, Brian. Rip Van Winkle’s as a metaphor for American experience during the Revolutionary period.In Literature, In US History. 2010.

Hart, James D. “The Sketch Book.” Oxford Reference Online. 2009. Web. 09/01/2011 <http://www.oxfordreference.com/views/ENTRY.html?subview=Main&entry=t53.e1810>.

Hedges, William. Introduction to The Legend of Sleepy Hollow and Other Stories by Washington Irving. New York: Viking Penguin, 1998.

Irving, Washington. “Rip Van Winkle.” The Norton Anthology of American Literature. Ed. Nina Baym. New York: Norton & Company, 2008. http://digitaldisruption.blogspot.com/2010/01/rip-van-winkles-as-metaphor-for.html

Irving, Pierre M. The Life and Letters of Washington Irving. New York: York: AMS Press, pg 78-102, 2009.

Irving, Washington. Rip Van Winkle and Other Stories. New York: Penguin, 1994.

Leary, Lewis. Washington Irving. Minneapolis: University of Minnesota Press, 1963.

McAuliffe, Kathleen. “Rip Van Winkle Disease.” Discover Magazine. 2007. Web. 09/01/2011 <http://discovermagazine.com/2007/medical-mysteries/rip-van-winkle-disease/article_view?b_start:int=0&-C=>.

Rubin-Dorsky, Jeffrey. The Value of Storytelling: ‘Rip Van Winkle’ and ‘The Legend of Sleepy Hollow’ in the Context of ‘The Sketch Book. Modern Philology 82:4 (1985), 393-406.

Rubin-Dorsky, Jeffrey. Washington Irving: Sketches of Anxiety. American Literature 58:4, 499-522, 2006.

Tulle, Aston. Brief Analysis ofRip Van Winkle. Web. 09/01/2011

<http://voices.yahoo.com/brief-analysis-rip-van-winkle-3618575.html&gt;.

Williams, Stanley. The Life of Washington Irving. New York: Oxford University Press, Octagon Books, 172-178, 1997.

Young, Philip. Fallen from Time: The Mythic Rip Van Winkle. The Kenyon Review 22:4, 547-573, 1960.

America’s Influential Piece

August 2, 2012

My Thesis statement
Irving Washington’s novel “Rip Van Winkle” was a great influence on the American culture, highlighting experiences and changes since the Revolutionary War.
Outline
I. Introduction
A. Rip Van Winkle Overview
B. Influence or Van Winkle on the American Culture
C. Why Van Winkle was written
II. Rip Van Winkle Characters
A. Why the Author Chose the title Rip Van Winkle
B. How Rip Van Winkle was related to Royal England and American Society
C. The Aftermath of the revolutionary war
III. Conclusion
A. The impact of Rip Van Winkle on the readers
IV. References

Introduction
Rip Van Winkle overview
The story Rip Van Winkle has been well drafted to cover different times in history. It depicts America’s struggle during and after the revolutionary War. Washington has managed to use characters that represent different societies at different times. As such, the story is able to teach us about the past as well as the present. “Rip Van Winkle” means someone who is inexplicably or even blissfully of the current events.  This describes some of the modern socialists of today. The story presents distinctive features that took place in American literary periods, most of them, which occurred particularly in the Romantic Period. “Rip Van Winkle” has been used to help us comprehend the context of American Revolution by observing the behaviors of the American citizens/subjects. It clearly uses imagery that helps us understand how human behaviors are manifested in our culture today.
Influence of Rip Van Winkle on the American Culture
Rip Van Winkle is a short story describing a man who resided in a small village within the Hudson Valley. Rip was a very charming man, and this made everyone to become fond of him. This because he was always willing to help anyone who was in need though, he never tended his own family and farm. He was seen as a kind neighbor who was very obedient. However, his wife could hear none of it. His wife, Dame Van Winkle, saw him as an irresponsible man, and always confronted him in almost everything he did. The constant nagging of his wife made him seek refuge by running away from her only to come back after she was dead and gone.” from the even this stronghold the unlucky rip was at length routed by his termagant wife,”(Bowden 18). Rip has contrasting characteristics. For instance, he is very hardworking to the rest of the people in his neighborhood, but lazy when it comes to his own home. This short story by Washington Irving’s Rip Van Winkle gives an ideal demonstration of the changes America experienced during the revolution after the First World War. It also gives an account of the transition the American Revolution brought, an insight of the colonists and their internal personalities, as well as the extreme changes that were realized in the society. Irving Washington’s novel was a great influence on the American culture.
When Rip Van Winkle was written
When Irving Washington was writing the novel, Rip Van Winkle, he had the American people in his mind. The story was written at time when the American society was experiencing drastic changes that resulted from the American Revolution. After the revolution, the Americans were struggling and working tirelessly hard to form their own identity (Irving 1). The author wrote this novel as one way of inspiring the Americans so that they can form an identity, which would liberate them from the English culture and rule. The author chose Rip Van Winkle as his main character to act as a symbol of early Americans struggle for independence. The struggles that Rip went through are similar the struggles the Americans were going through before and after the revolution (Irving 6). He has described these changes using a series of metaphors to cover the revolutionary experiences. This novel symbolizes the sentiments of the Europeans towards the new American society after the revolution and also establishes the American identity before and after the revolution. The author has used the character Rip Van Winkle to embody America as it was viewed by England. He depicts Americans as useless and indolent subjects of the Crown. Another character in the play Dame Van Winkle is arrogant in character and very demanding. She clearly represents the arrogance of England (Ferguson 529-544). On the other hand, the Townspeople are mirror images of the American society prior and post Revolution. Dame is constantly carrying out the acts of tormenting by forcing him to attend to do some of the household duties.  As such, she aggravates Rip so much that he resorts to flee and seek refuge in the town of tavern where he remains idle for some time with his friend. These acts are a direct representation of the political situation in America where the British government is in full controls. The British colonies dominated all the activities in their colonies. They could not allow Americans to take part in any national activity (Freeman 1).
Rip Van Winkle Characters
Why the author chose the title Rip Van Winkle
The author chose the term “Rip Van Winkle” to create a character that is oblivious of social change. Rip lives in his own world and time. He remains stuck and fails to keep up with time. He is, therefore, a perfect character who is frozen in time (Williams 172-178). His reawakening has been used by the author to give a contrast of two times, by using the cryogenic freezing to bring the character into the future. The two periods in this case are the prior and post American Revolution, or the twenty years that overlapped the revolution. In the novel, Rip falls in a deep sleep when England was in full control of the American society and their colonies and is reawakened when America has gained its independence from the colonists. This scenario is evident as Rip visits the village he had spent much of his time and finds it completely different (Leary 27). In addition to the political shifts that are contrasting over a period of twenty years, the story has alluded to society’s economic shifts. For instance, society has changed from a rural based economy to an urbanized one as viewed by Rip. His shock and disbelief of the pace and style at which the changes have taken place to the village he once left are genuine as evidenced some of the remarkable quotes he made. While Rip’s view of the Hudson River and Catskill Mountains is a highly romanticized one, his shock at the change in the pace and style of life upon returning to the village is genuine as evident in the quotes he made. The very village that used to be very large had been altered; a few days back it used to be very large and more populous. The familiar huts he was accustomed to had changed and in their place, modern rows of new houses had replaced them, structures he had never seen before. The kind of characters he was used to had changed and instead of the normal drowsy tranquility and phlegm, busy bustling disputatious tones were created (Rubin-Dorsky 499-522).
How Rip Van Winkle was related to Royal England and American Society
Dame Van Winkle might have had the right of constantly nagging her husband. This is because Rip was never concerned with his family. He fails to show responsibility by taking poor care of his home and farm. As the author notes, the fences of his compound were continually falling giving his a cows a chance of going astray and destroy the cabbages. Furthermore, his children were too wild and rugged because they were left unattended. Ironically, Rip was good at tending his neighbors’ farm and always found time to play with and tend to children from the neighborhood. His wife was therefore justified in tormenting and nagging him (Rubin-Dorsky 393-406). In the same way, the Royal England imposed hefty taxes on the Americans for them to generate enough revenues as one way of paying for the seven year war which caused them a fortune. It was also one way of protecting themselves against future rebellions. Although this caused uproar among Americans, the colonists remained adamant and could not relent in their efforts of accomplishing their mission. From another perspective, Rip’s actions can be seen as a metaphor given that his rebellion against authority was benefiting the people of the town (Hart).  The needs of his family can be likened to the Crown losing ground and respect as the American society gained loyalty of its people. Rip Van Winkle finally sets his mind and walks out on his wife taking his dog and gun alongside him into the woods. This can be viewed by the reader as a metaphor that represents the American Revolution (Diedrich).
The Aftermath of the revolutionary war
After waking up from his deep sleep, Rip is not in a position to recognize the same people from his village. This is because their faces have changed and the village has taken a new version. His wife among other village people died long ago some had left the village and never came back. This represents a revolutionary war from which America gained independence from their colonial masters. The only features that remained unchanged are the Catskill Mountains and the Hudson River. These two remains exactly the same way they were prior to his sleep (Colker 131-133). He also encounters a group of other people who he vividly remembered even though they were too old. This event tells us one thing that changes are necessary if a society has to move forward, however, some of these radical changes should not eradicate the traditions and old ways of a society entirely. In any case, real lasting changes are nothing but an amalgam of both the old and new, and that the new rests on the foundations of the old (Young 547-573). Therefore, though the society has realized some changes continuity is inevitable. Hudson makes some association with Rip’s son. This association between an Englishman and an American means that even if Britain was overthrown, some society values did not die with the revolution (Cummings 1). Interestingly, when Rip wakes up he does not know that revolution had taken place. He finds himself in trouble when he openly presents his loyalty to King George III not knowing that after the revolution, no American was supposed to be loyal to a Hanoverian. (Tulle 1). The Americans had long changed the image of the crown, King George III, replacing it with that of George Washington. The current election process makes Rip more baffled and confused. When asked which side he was to vote, Rip is thrown into dismay and only shouts his loyalty to King George The main issue and aim of the story was for the Americans to realize their identity twenty years long after Rip had fallen asleep, something which they eventually did (Irving 78-102).
Conclusion
The impact of Rip Van Winkle on the readers
We should say that Rip Van Winkle’s story gives leaders a colorful picture of how the American society looked like. The author managed to set a story of a foreigner penetrating the American environment in a significant period when the country was forming a historical identity. All the pictures, landscape descriptions, and historical backgrounds that have been mentioned in the story echoes the culture of the old settlers and also depicts a vivid portrait of the colonies’ way of life and the kind of psychological changes the Americans underwent in the hands of their colonial masters. The revolution that took place then has been represented in a short dream but the resulting changes are seen as the most crucial aspects in the formation revival of the American nation. The author however, championed the entire American enterprise, and gave the American men the courage forging a pleasant future for their country through the main character, Rip.

Works Cited
Bowden, Mary. Washington Irving. New York: Twayne, 1981.
Colker, Marvin. Medieval Rip Van Winkle Story. The Journal of American Folklore 76:300 (April-June, 2003), 131-133.
Cummings, Michael. Irwin washingtong’s. 2006. Web. 09/01/2011. <http://www.cummingsstudyguides.net/Guides3/Winkle.html&gt;.
Curtis, George William. Washington Irving: A Sketch. New York: The Grolier Club, 2001.
Cullina, Alice. Classic Note on Rip Van Winkle Story. New York: Grade Saver, 2009.
Diedrich, Knickerbocker. Irwin washingtong’s  Rip Van Winkle. 2011. Web. 09/01/2011. <http://www.timetravelreviews.com/shorts/rip_van_winkle.html&gt;.
Ferguson, Robert . “Rip Van Winkle and the Generational Divide in American Culture.” Early American Literature 40:3 (2005), 529-544.
Freeman, Brian. Rip Van Winkle’s as a metaphor for American experience during the Revolutionary period .In Literature, In US History. 2010.
Hart, James D. “The Sketch Book.” Oxford Reference Online. 2009. Web. 09/01/2011 <http://www.oxfordreference.com/views/ENTRY.html?subview=Main&entry=t53.e1810&gt;.
Hedges, William. Introduction to The Legend of Sleepy Hollow and Other Stories by Washington Irving. New York: Viking Penguin, 1998.
Irving, Washington. “Rip Van Winkle.” The Norton Anthology of American Literature. Ed. Nina Baym. New York: Norton & Company, 2008. http://digitaldisruption.blogspot.com/2010/01/rip-van-winkles-as-metaphor-for.html
Irving, Pierre M. The Life and Letters of Washington Irving. New York: York: AMS Press, pg 78-102, 2009.
Irving, Washington. Rip Van Winkle and Other Stories. New York: Penguin, 1994.
Leary, Lewis. Washington Irving. Minneapolis: University of Minnesota Press, 1963.
McAuliffe, Kathleen. “Rip Van Winkle Disease.” Discover Magazine. 2007. Web. 09/01/2011 <http://discovermagazine.com/2007/medical-mysteries/rip-van-winkle-disease/article_view?b_start:int=0&-C=&gt;.
Rubin-Dorsky, Jeffrey. The Value of Storytelling: ‘Rip Van Winkle’ and ‘The Legend of Sleepy Hollow’ in the Context of ‘The Sketch Book. Modern Philology 82:4 (1985), 393-406.
Rubin-Dorsky, Jeffrey. Washington Irving: Sketches of Anxiety. American Literature 58:4, 499-522, 2006.
Tulle, Aston. Brief Analysis of Rip Van Winkle. Web. 09/01/2011
<http://voices.yahoo.com/brief-analysis-rip-van-winkle-3618575.html&gt;.
Williams, Stanley. The Life of Washington Irving. New York: Oxford University Press, Octagon Books, 172-178, 1997.
Young, Philip. Fallen from Time: The Mythic Rip Van Winkle. The Kenyon Review 22:4, 547-573, 1960.

Remittance and the Socio-Economic Development of Nigeria

August 2, 2012

Remittance and the Socio-Economic Development of Nigeria

Apparently, two contradictory schools of thought can be used to explore whether remittance has been useful in the socio-economic development in Nigeria. These are Neoclassical/ Equilibrium, which is a developmental theory, which states that remittance is meant for positive development and Historical-Structuralist theory, which is an underdevelopment hypothesis, and argues that remittances are for negative development. The two theories are useful in comprehending remittances issue (Sander, 2003). There exist no intellectual suggestions in Nigeria that remittances are unreal. Central Bank of Nigeria’s current governor stated that financial remittances in the last six years by Diaspora Nigerians totaled to 304.8 trillion naira. It is worth recognizing that social remittances such as innovative ideas, social capital, knowledge, technology transfers, social values, political democratic attitudes and habits and cultural influence are as significant as financial remittances. These are essentially interactive tendencies products characterizing human political behavior. The contemporary issue of remittances in Nigeria calls for attention from international organizations such as the World Bank, international researchers, NGOs, governments and International Migration Policy Programs. In Nigeria, remittance studies did not begin long time ago, and so is the case in Sub-Sahara Africa.

Currently, there has been a massive population mobility growth. This has been because of information technology and globalization. Consequently, approximately two hundred million people reside outside their birth countries (Adelman & Taylor, 1990). This has is a great deal of concern to international agencies, policy makers, development practitioners and governments in developing nations. As a result, there has been a need to harness migration potentials for the two receiving nations. There is also the urge to strengthen the development-migration link after the realization that earnings from the majority of the Diaspora all over the globe can be used in reducing poverty in the origin counties, and positively affect development. Francois Bouguinen observed, “with the number of migrants now reaching over 200 million, their output and income are a powerful force for poverty reduction” this fact evidences how relevant remittance is, as not only a migration-development nexus’ critical element but also play a significant role in social and economic development of developing nations. Several studies on remittances have generally been done. However, the developmental result on individual Sub-Saharan Africa nations has been untouched or given enough attention.

Definition and origin of remittances in regard to Nigeria

Remittances can be defined as the international migrant worker’s earnings portion that mi sent back to the origin country from the employment country. This definition has been modified by International Monetary Fund to include transfers made by workers who have resided in foreign economies for about a year. This, however, does not constitute transfers from self-employed migrants. It is acknowledgeable that remittances are an economic force that is very powerful for economic development in labor-exporting nations offering financial resources. In addition to sustaining the basic needs for many families and thereby alleviating poverty, the financial resources also support private sector investment. Official flaws were recorded by Central Bank in Balance of Payment statistics, which IMF reported later (Sander, 2003).

Broadly, remittances are a reflection of the monetary dimension in the complicated linkages web existing between migrant Diasporas and the home nations. Being an old phenomenon the economic competence and prevalence of remittances in each society has been recognized and long hierarchically. In 1846-1848 after a Great famine, the Irish female domestics’ remittances in USA were considered as a very significant capital source for the Irish country. In addition, remittances were a key in the development of Spain, Yugoslavia, Portugal and Greece between 1950 and 1960 (Adelman & Taylor, 1990).

Just as in other African countries, remittances are historically part of the culture in Nigeria. Indeed, the social experience is that the family is naturally bound together and therefore sharing with parents from one’s resources is culturally mandatory. Domestic remittances are prevalent in Nigeria as well as other African nations. A difference however exists between internal domestic remittance and the one that is globalization drive in reference to quantum, sheer money value set in foreign currency. It has increased because of the high value associated with foreign currencies as opposed t the national currencies. This situation emerged because of Nigerian economy collapse in 1980s, which brought about massive unemployment as well as other hardships (Sander, 2003). This situation was aggravated further by IMF imposition of Structural Adjustment programs in mid-1980s (Sander, 2003). The programs were implemented under Babangida administration, and were the origin for the masses hardships including high unemployment rate. Good governance issues together with government’s inability to solve unemployment had made semi and highly skilled Nigerian professionals’ emigrants too many European destinations or instance Netherlands, USA, Canada, Germany, Italy and Britain. In these destinations, there are many Nigeria Diasporic communities. It is also worth noting that African nations such as Nigeria are yet to recognize the full potential of its Diaspora as economic development agents, as illustrated in the table.

After this realization together with the desire to emulate nations such Mexico, south Korea, India and china that know diasporas development potentials in economic development, Nigeria’s’ Federal Government initiated (NNVS) Nigerian National Volunteer Service and NIDO (Nigerian in Diaspora Organization) in 2008. The agencies were to act as a sensitization to Diasporic Nigerians and in exact, contributing towards socio-economic development. The remittances from Diaspora were a target of increasing socio-economic development. Studies show that Nigeria delight in remittance as opposed to aid in the ratio 6:1. In the last decade, Nigeria was the largest remittance recipient in Sub-Sahara Africa. It was followed by Mauritius, Sudan and Lesotho. Nigeria gets thirty to sixty percent remittance. Recently, DFID (International Department for International Development) in UK conducted a survey, which showed that Nigerians based in UK send the highest amount of money home compared to other groups. In addition to Nigeria being a top recipient nation in regards to households that send money home, it was also one of the nations with the biggest household remittance amount. In UK, a Nigerian household of average sends approximately 1022 pounds in the previous twelve months. Nigeria is considered the biggest remittance recipient in sub-Saharan Africa with an estimate of sixty-five percent receipts of the officially recorded remittances and a two percent of global flows. The banking system remittances in 2004 were 2,262.32 million dollars, 3,318.84 in 2005 and 7,678 in 2006 according to Central Bank of Nigeria statistics (Mohapatra & Ratha, 2011). Both urban and rural Nigeria centers seem to have developmental growth because of remittances.

Remittances developmental aspects about micro and macro-economic affects

Remittances developmental impact in Nigeria can be assesses through two dimensions. These are micro and macro economic impacts. In regard to macro economy, remittances contribute a significant financial flow. Remittances is considered a key source of foreign exchange required to boost finance imports, hard currency reserves and enhances banks’ ability to finance loans. This is inclusive of commissions reserved by banks on foreign currencies whenever huge foreign money amounts are transferred. It is worth noting that the Nigerian banks recapitalization to gain an equity base capital of 25 billion naira was embarked in 2005 in Nigeria principally to assist banks manage the financial remittance from abroad (Mohapatra & Ratha, 2011). This is as stated by Governor Charles Soludo from Central Bank of Nigeria. Additionally, in order to accommodate and encourage more financial remittances from citizens abroad, some Nigerian banks have started opening oversea branches. Zenith Bank and United Bank for Africa recently opened oversea branches in UK. Central Bank of Nigeria and other banks have received huge percentages and sums of total financial remittances because of remittances from semi and highly skilled professionals as well as from illegal and short sty emigrants. Foreign reserves have been boosted and the natural currency has been made to appreciate better.

Remittances earnings have enabled the Central Bank of Nigeria to lend money to commercial banks and the government to carry out policies and programs that are related to poverty alleviation. For instance, NAPEP (National Poverty Eradication Program) contains the leading government agency involved with Poverty Eradication Program. From 2005, it has given out 500 million naira under revolving micro-credit scheme. One hundred and twenty thousand individuals benefited since they were enabled to start small enterprises (Mohapatra & Ratha, 2011). Additionally, fifty thousand individuals were educated on targeted skills necessary for entrepreneurial development. This was managed under capacity acquisition program. Exactly 240, 000m Naira was given to 72,000 farm households under NAPEP’s employment program farmers to increase capacity and productivity. More to that, 200,000 keke NAPEP units were distributed among youths and sold at fifty percent discount on owner operated basis (Mohapatra & Ratha, 2011). Capacity building programs for NAPEP also include micro-credit facilities grants and youth empowerment scheme (Levitt, 1996).

In order to increase the efforts towards poverty eradication, federal government approved more 9 billion naira to NAPEP. This sum is a safe net measure for providing basic education to the poor by schooling their kids. SMEDAN (Small and Medium Enterprises Development Agency of Nigeria) is another agency involved with eradication of poverty. The government created this agency to enable funds access for medium and small businesses. The agency also provides business information services, offers business support service, improves MSMEs economic environments and provides a pathway for accessing finances. National Inspectorate of Employment is another agency that concerns with poverty reduction. Other activities carried out by the agency include linkage with agencies that offer loans, linkage with employers, sanitation and landscaping skills training, entrepreneurship development training, business training skills apprentice training in handicraft and trades and agricultural training in various farming specializations such as bird rearing and fish farming.

Micro economic remittance effect is higher on personal family household of urban and rural especially considering that the GDP is approximately 71 US dollars and yet around seventy-five percent citizens live below a dollar daily. Survey and case study findings in six states’ remittance recipients- Delta, Edo, Imo, Abuja, Lagos, Benue, Oyo and Kwara show that remittance holds a leverage particularly in households that live close to the level of subsistence (Sander, 2003). Migrant households used most remittances for consumption-cater for the daily needs such as feeding, education and health. They also invested in entrepreneurial activities, bought landed property and improved homes. Generally, at the micro level remittance is used for education, medical and health expenses, basic expenses and needs, building or improving housing, buying livestock or land, purchasing consumer durables such as appliances and stereo television, loan repayments, savings, employment or income generating activities and investing in the socio-cultural life.

In all the states virtually, remittance funds other members of the family’s migration as a way through which household income can be enhanced. A smaller portion of the remitted funds is utilized in financial investments such as wealth generation, business and savings. The propensity of using remittances for consumption largely agrees with the aspect that remittances and migration constitute poverty reduction strategies and livelihood of individual migrants and families. To the poorer families, consumption has follow-up effects of improving living standards and education opportunities. Other findings show that Delta and Edo states that a good number of migrant families utilizes remittances for risk sharing (idiosyncratic risks), as well as loans for paying off migration costs.

Remittances and migration has a gender effect in that households that have more remittance from females are vulnerable to human traffickers’ victims. A negative impact of remittance is manifested in the desire to travel to European nations such as Italy where women are engaged in prostitution. Recent studies refer to the engagement of women from various parts of Third World nations in prostitution as the novel slavery form. For instance, seven thousand prostitutes from Benin in Torino Italy are waiting to be involved in commercial activities in order to be self-employed. Tailor (2004) argues that responses prove that women from states such as Delta and Edo are pressured by family members to opt for migration since they are more reliable sort term remitters and they had rather send welfare enhancing consumption remittance such as health care and education n for siblings and parents’ health care. Male counterparts use remit money for savings or investing in housing and land on their behalf for the future. It is obvious that males have home consumer goods in their homes such as cars and television.

Respondents from the survey prove that remitters from all states prefer constructing houses for the emigrants. Consequently, there are European model houses in urban and rural commercial centers. Although remittances have offered European model houses having beautiful architectural designs the negative effect is that civil servants are unable to mobilize adequate money to buy o build such houses. In Lagos, many fine houses are owned and built by Diaspora who remits to friends, families and parents for this purpose. The same scenario is found in Abuja where the Diaspora buys expensive Federal Government houses which is an inconvenience for civil servants.

Remittance recipients also involve themselves in business activities such as car dealers, motor spare part businesses and internet related businesses. Fish farming is also prevalent in Ilorin, Kwara state where Dutch fishes are exported to Ibadan from Holland in tons. The fish are crossbred using the local ones and later sold to the public at reduced prices. Fish proceeds are paid into the owner’s account while the farm’s owner makes a fifty thousand US dollars profit each month. This is considered a good business. There is a new emerging business where remittances are used for future business engagements such as purchase of shares in companies and banks.

Survey findings prove that while much of the remittances that individuals sent meet the families’ needs, more Nigerian emigrants are involving themselves in community development projects in towns and villages of origin through the home to own organizations. Brett and Sedeca (2004) argue that International Migration Findings prove that Nigerian migrants made pooled or individual remittance for development via home improvement unions. In Benin, Edo association has managed to liaise with the overseas counterparts to acquire remittances for development purposes. In addition, other smaller towns and associations engage themselves in remittance development projects. Other smaller town and village associations under Edo Association are present and continue to engage in prominent roles in ethnics and community related projects. For example, Ekpoma Association in Expoma town has engaged in community projects such as maternity hospital and borehole water projects. Similar projects were carried out in Iviegbepui, Edo by the oversea diaspora community after remittance was sent to the local community leaders. Edo Association helps in transferring group or individual remittances to the local indigenes due to weak financial systems.

Urualla people who reside in USA, china, Italy and Germany via a powerful network, they were able to organize themselves in to Urualla Progressive Union. The association has contributed influentially in community projects such as construction of town halls, roads and culvert. Since Diasporic communities have powerful networking with local associations, it is possible for them to engage in community projects. An example for this is Uje in Benue State where the local hometown group collaborated with Netherlands and overseas officials through a powerful network and managed to get support to construct five boreholes as well as town halls. On the same note, the Diaspora from Igala donated research materials-text books, scientific items – laboratory equipment, computers and telescopes worth 20 million naira to Kogi State University’s chancellor (Mohapatra & Ratha, 2011). Igala in Diaspora’s president based in US promised that the association will support the newly founded university. The state’s governor facilitated the items’ transportation. D. Eugene Nwosu is a US emigrant from Nigeria who raised 16.6 million naira for medical purposes in the Nigerian rural community. This mission is under Nwosu Goodness and Mercy Foundation and will be undertaken between 13th and 27 September to Ajalli in Anambra state. The donations include health tools, medications and cash and were got from a fund raising ceremony in US south coast city that is very historic.

Micro, macro-economic and communal effects offer the overwhelming evidence that remittances have contributed positively in Nigeria’s development. The effect is felt strongly when the country’s poverty situation is considered. In 2000, the poverty rate was at 2.9 percent of GDP (Tailor, 2004). As remittances were recorded annually by the Central Bank, the poverty rate reduced slightly. Currently, the poverty rate of GDP is at nine percent. This development equates to the neoclassical perspective that sees international migration as a positive idea for receiving and sending migrants since migrants act as a supplement for scarce domestic labor force. Migrants get god money as well as human capital, and generate savings and remittances, which is used to swell up the banks’ financial resources. This proves that many small-scale projects were initiated using proceeds from remittances.

On the same note, returnees acquire new skills which enable them engage in meaningful jobs and thereby engage themselves in developmental activities in the mentioned six states. This has been useful in poverty reduction. In some instances, the government appoints some returnees experts in the administration affairs of the nation. Okonjo-Iweala and Prof. Charles Soludo are some of the appointed people who have worked with World Bank previously. The training and expertise together with the implemented policies have been very useful in developing Nigeria. As Nigeria diaspora continues to remit money, it is used for poverty reduction projects, which eventually reduce poverty in the nation. The reason why remittance’s impact on development is rarely noticeable in Nigeria is that it is not part of resources mainstream in the country. This could be because a steady money flow is accessible (Tailor, 2004).

From the foregoing discussion, there is a need to improve remittance in the nation in order to contribute to more growth. Some of the ways through which this can be achieved include promoting efficient and transparent collection and utilization of remittances. Remittance transfer can be encouraged by adopting macro-economic policies that are conducive to growth an investment such as direct foreign investment opportunities and good savings interest rates in principal economy areas, entrepreneurial, commercial and productive activities. Commercial banks also need to introduce products that lick to remittances directly such as educational loans, housing loans insurance and micro loans for encouraging investments and savings by recipients.

References

Adelman, I. & Taylor I. (1990). Is Structural Adjustment with a Human Face Possible? The Case of Mexico. Journal of Development Studies, 26 (4), 387-407.

Brett, J. & Sedeca, S., 2004. Diaspora, Émigrés and Development: Economic Linkages and Programmatic Responses. Retrieved from http://www.tessproject.com

Levitt, P. (1996). Social Remittances: A conceptual tool for Understanding Migration and Development. Working Paper Series, 96 (4), 12-45.

Mohapatra, S. & Ratha, D. (2011). Remittance Markets in Africa. World Bank Publications.

Sander, C. (2003). Migrant Remittances to Developing Countries. Retrieved from http://www.migrationinformation.org/Feature/display.cfm?id=393

Tailor, E. (2004). Remittances and Poverty in Guatemala. Oxford University Press: New York.

Remittance and the Socio-Economic Development of Nigeria

August 2, 2012

Remittance and the Socio-Economic Development of Nigeria

Apparently, two contradictory schools of thought can be used to explore whether remittance has been useful in the socio-economic development in Nigeria. These are Neoclassical/ Equilibrium which is a developmental theorist and argues that remittance is meant for positive development and Historical-Structuralist which is an underdevelopment theorist and argues that remittances are for negative development. The two theories are useful in comprehending remittances issue. There exist no intellectual suggestions in Nigeria that remittances are unreal. Central Bank of Nigeria’s current governor stated that financial remittances in the last six years by Diaspora Nigerians totaled to 304.8 trillion naira (Levitt, 30:1996). It is worth recognizing that social remittances such as innovative ideas, social capital, knowledge, technology transfers, social values, political democratic attitudes and habits and cultural influence are as significant as financial remittances. These are essentially interactive tendencies products characterizing human political behavior. The contemporary issue of remittances in Nigeria calls for attention from international organizations such as the World Bank, international researchers, NGOs, governments and International Migration Policy Programs. In Nigeria, remittance studies did not begin long time ago, and so is the case in Sub-Sahara Africa.

Currently, there has been a massive population mobility growth. This has been as a result of information technology and globalization. Consequently, approximately two hundred million people reside outside their birth countries (Adelman and Taylor, 391:1990). This has is a great deal of concern to international agencies, policy makers, development practitioners and governments in developing nations. As a result, there has been a need to harness migration potentials for the two receiving nations. There is also the urge to strengthen development-migration link after the realization that earnings from majority of the diaspora all over the globe can be used in reducing poverty in the origin counties, and positively affect development. Francois Bouguinen observed that “with the number of migrants now reaching over 200 million, their productivity and earnings are a powerful force for poverty reduction” this fact evidences how relevant remittance is, not only as a migration-development nexus’ critical element but also play a significant role in social and economic development of developing nations. According to Tailor (10:2004) several studies on remittances have generally been done. However, the developmental result on individual Sub-Saharan Africa nations has been untouched or given enough attention.

Definition and origin of remittances in regard to Nigeria

Remittances can be defined as the international migrant worker’s earnings portion that mi sent back to the origin country from the employment country. This definition has been modified by International Monetary Fund to include transfers made by workers who have resided in foreign economies for about a year. This however does not constitute transfers from self-employed migrants. It is acknowledgeable that remittances are an economic force that is very powerful for economic development in labor-exporting nations offering financial resources. In addition to sustaining the basic needs for many families and thereby alleviating poverty, the financial resources also support private sector investment. Official flaws were recorded by Central Bank in Balance of Payment statistics, which IMF reported later.

Broadly, remittances are a reflection of the monetary dimension in the complicated linkages web existing between migrant Diasporas and the home nations. Being an old phenomenon the economic competence and prevalence of remittances in each society has been recognized and long hierarchically. In 1846-1848 after a Great famine, the Irish female domestics’ remittances in USA were considered as a very significant capital source for the Irish country. In addition, remittances were a key in the development of Spain, Yugoslavia, Portugal and Greece between 1950 and 1960.

Just as in other African countries, remittances are historically part of the culture in Nigeria. Indeed, the social experience is that the family is naturally bound together and therefore sharing with parents from one’s resources is culturally mandatory. Domestic remittances are prevalent in Nigeria as well as other African nations. A difference however exists between internal domestic remittance and the one that is globalization drive in reference to quantum, sheer money value set in foreign currency. It has increased as a result of the high value associated with foreign currencies as opposed t the national currencies. This situation emerged as a result of Nigerian economy collapse in 1980s which brought about massive unemployment as well as other hardships. This situation was aggravated further by IMF imposition of Structural Adjustment programs in mid-1980s. The programs were implemented under Babangida administration, and were the origin for the masses hardships including high unemployment rate. Good governance issues together with government’s inability to solve unemployment had made semi and highly skilled Nigerian professionals’ emigrants to many European destinations or instance Netherlands, USA, Canada, Germany, Italy and Britain. In these destinations, there are many Nigeria Diasporic communities. It is also worth noting that African nations such as Nigeria are yet to recognize the full potential of its Diaspora as economic development agents.

After this realization together with the desire to emulate nations such Mexico, south Korea, india and china that know diasporas development potentials in economic development, Nigeria’s’ Federal Government initiated (NNVS) Nigerian National Volunteer Service and (NIDO) Nigerian in Diaspora Organization in 2008. The agencies were to act as a sensitization to Diasporic Nigerians and in exact, contributing towards socio-economic development. The remittances from diaspora were a target of increasing socio-economic development. Studies show that Nigeria delight in remittance as opposed to aid in the ratio 6:1. In the last decade, Nigeria was the largest remittance recipient in Sub-Sahara Africa (Tailor, 10:2004). It was followed by Mauritius, Sudan and Lesotho. Nigeria gets thirty to sixty percent remittance. Recently, DFID (International Department for International Development) in UK conducted a survey which showed that Nigerians based in UK send the highest amount of money home compared to other groups. In addition to Nigeria being a top recipient nation in regards to households that send money home, it was also one of the nations with the biggest household remittance amount. In UK, a Nigerian household of average sends approximately 1022 pounds in the previous twelve months. Nigeria is considered the biggest remittance recipient in sub-Saharan Africa with an estimate of sixty five percent receipts of the officially recorded remittances and a two percent of global flows. The banking system remittances in 2004 were 2,262.32 million dollars, 3,318.84 in 2005 and 7,678 in 2006 according to Central Bank of Nigeria statistics (Sander, par. 6:2009). Both urban and rural Nigeria centers seem to have developmental growth as a result of remittances.

Remittances developmental aspects in regard to micro and macro-economic affects

Remittances developmental impact in Nigeria can be assesses through two dimensions. These are micro and macro economic impacts. In regard to macro economy, remittances contribute a significant financial flow. Remittances is considered a key source of foreign exchange required to boost finance imports, hard currency reserves and enhances banks’ ability to finance loans. This is inclusive of commissions reserved by banks on foreign currencies whenever huge foreign money amounts are transferred. It is worth noting that the Nigerian banks recapitalization to gain an equity base capital of 25 billion naira was embarked in 2005 in Nigeria principally to assist banks manage the financial remittance from abroad. This is as stated by Governor Charles Soludo from Central Bank of Nigeria. Additionally, so as to be able to accommodate and encourage more financial remittances from citizens abroad, some Nigerian banks have started opening oversea branches. Zenith Bank and United Bank for Africa recently opened oversea branches in UK. Central Bank of Nigeria and other banks have received huge percentages and sums of total financial remittances as a result of remittances from semi and highly skilled professionals as well as from illegal and short sty emigrants. Foreign reserves have been boosted and the natural currency has been made to appreciate better.

Remittances earnings have enabled the Central Bank of Nigeria to lend money to commercial banks and the government to carry out policies and programs that are related to poverty alleviation (Adelman and Taylor, 34:1990). For instance, NAPEP (National Poverty Eradication Program) contains the leading government agency involved with Poverty Eradication Program. From 2005, it has given out 500 million naira under revolving micro-credit scheme. One hundred and twenty thousand individuals benefited since they were enabled to start small enterprises. Additionally, fifty thousand individuals were educated on targeted skills necessary for entrepreneurial development. This was managed under capacity acquisition program. Levitt, 28:1996 argues that 240, 000 million naira was given to 72,000 farm households under NAPEP’s employment program for farmers to increase capacity and productivity. More to that, 200,000 keke NAPEP units were distributed among youths and sold at fifty percent discount on owner operated basis. Capacity building programs for NAPEP also include micro-credit facilities grants and youth empowerment scheme.

So as to increase the efforts towards poverty eradication, federal government approved more 9 billion naira to NAPEP. This sum is a safe net measure for providing basic education to the poor by schooling their kids. SMEDAN (Small and Medium Enterprises Development Agency of Nigeria) is another agency involved with eradication of poverty. The government created this agency to enable funds access for medium and small businesses. The agency also provides business information services, offers business support service, improves MSMEs economic environments and provides a pathway for accessing finances. National Inspectorate of Employment is another agency that concerns with poverty reduction. Other activities carried out by the agency include linkage with agencies that offer loans, linkage with employers, sanitation and landscaping skills training, entrepreneurship development training, business training skills apprentice training in handicraft and trades and agricultural training in various farming specializations such as bird rearing and fish farming.

Micro economic remittance effect is higher on personal family household of urban and rural especially considering that the GDP is approximately 71 US dollars and yet around seventy five percent citizens live below a dollar daily. Survey and case study findings in six states’ remittance recipients- Delta, Edo, Imo, Abuja, Lagos, Benue, Oyo and Kwara show that remittance holds a leverage particularly in households that live close to the level of subsistence. Migrant households used most remittances for consumption-cater for the daily needs such as feeding, education and health. They also invested in entrepreneurial activities, bought landed property and improved homes. Generally, at the micro level remittance is used for education, medical and health expenses, basic expenses and needs, building or improving housing, buying livestock or land, purchasing consumer durables such as appliances and stereo television, loan repayments, savings, employment or income generating activities and investing in the socio-cultural life.

In all the states virtually, remittance funds other members of the family’s migration as a way through which household income can be enhanced. A smaller portion of the remitted funds is utilized in financial investments such as wealth generation, business and savings. The propensity of using remittances for consumption to a great extent agrees with the aspect that remittances and migration constitute poverty reduction strategies and livelihood of individual migrants and families. To the poorer families, consumption has follow-up effects of improving living standards and education opportunities. Other findings show that Delta and Edo states that a good number of migrant families utilizes remittances for risk sharing (idiosyncratic risks) as well as loans for paying off migration costs.

Remittances and migration has a gender effect in that households that have more remittance from females are vulnerable to human traffickers’ victims. A negative impact of remittance is manifested in the desire to travel to European nations such as Italy where women are engaged in prostitution. Recent studies refer to the engagement of women from various parts of Third World nations in prostitution as the novel slavery form. For instance, there are seven thousand prostitutes from Benin in Torino Italy who are waiting to be involved in commercial activities so as to be self employed. Tailor (15:2004) argues that responses prove that women from states such as Delta and Edo are pressured by family members to opt for migration since they are more reliable sort term remitters and they had rather send welfare enhancing consumption remittance such as health care and education for siblings and parents’ health care. Male counterparts use remit money for savings or investing in housing and land on their behalf for the future. It is obvious that males have home consumer goods in their homes such as cars and television.

Respondents from the survey prove that remitters from all states prefer constructing houses for the emigrants. Consequently, there are European model houses in urban and rural commercial centers. Although remittances have offered European model houses having beautiful architectural designs the negative effect is that civil servants are unable to mobilize adequate money to buy or build such houses. In Lagos, many fine houses are owned and built by Diaspora who remit to friends, families and parents for this purpose. The same scenario is found in Abuja where the Diaspora buys expensive Federal Government houses which is an inconvenience for civil servants.

Remittance recipients also involve themselves in business activities such as car dealers, motor spare part businesses and internet related businesses. Fish farming is also prevalent in Ilorin, Kwara state where Dutch fishes are exported to Ibadan from Holland in tons. The fish are crossbred using the local ones and later sold to the public at reduced prices. Fish proceeds are paid into the owner’s account while the farm’s owner makes a fifty thousand US dollars profit each month. This is considered to be a good business. There is a new emerging business where remittances are used for future business engagements such as purchase of shares in companies and banks.

Survey findings prove that while much of the remittances that individuals sent meet the families’ needs, more Nigerian emigrants are involving themselves in community development projects in towns and villages of origin through the home to own organizations. Brett and Sedeca (par. 3:2004) argue that International Migration Findings prove that Nigerian migrants made pooled or individual remittance for development via home improvement unions. In Benin, Edo association has managed to liaise with the overseas counterparts to acquire remittances for development purposes. In addition, other smaller towns and associations engage themselves in remittance development projects. Other smaller town and village associations under Edo Association are present and continue to engage in prominent roles in ethnics and community related projects. For example, Ekpoma Association in Expoma town has engaged in community projects such as maternity hospital and borehole water projects. Similar projects were carried out in Iviegbepui in Edo by the oversea diaspora community after remittance was sent to the local community leaders. Edo Association helps in transferring group or individual remittances to the local indigenes due to weak financial systems.

Urualla people who reside in USA, china, Italy and Germany via a powerful network, they were able to organize themselves in to Urualla Progressive Union. The association has contributed influentially in community projects such as construction of town halls, roads and culvert. Since Diasporic communities have powerful networking with local associations, it is possible for them to engage in community projects. An example for this is Uje in Benue State where the local home town group collaborated with Netherlands and overseas officials through a powerful network and managed to get support to construct five boreholes as well as town halls. On the same note, the diaspora from Igala donated research materials-text books, scientific items – laboratory equipment, computers and telescopes worth 20 million naira to Kogi State University’s chancellor (Tailor 9:2004) Igala in Diaspora’s president based in US promised that the association will support the newly founded university. The state’s governor facilitated the items’ transportation. D. Eugene Nwosu is a US emigrant from Nigeria who raised 16.6 million naira for medical purposes in the Nigerian rural community. According to Adelman & Taylor 15:1990), this mission is under Nwosu Goodness and Mercy Foundation and will be undertaken between 13th and 27th September to Ajalli in Anambra state. The donations include health tools, medications and cash and were got from a fund raising ceremony in US south coast city that is very historic.

Micro, macro-economic and communal effects offer the overwhelming evidence that remittances have contributed positively in Nigeria’s development. The effect is felt strongly when the country’s poverty situation is considered. In 2000, the poverty rate was at 2.9 percent of GDP (Tailor, 45:2004). As remittances were recorded annually by the Central Bank, the poverty rate reduced slightly. Currently, the poverty rate of GDP is at nine percent. This development equates to the neoclassical perspective that sees international migration as a positive idea for receiving and sending migrants since migrants act as a supplement for scarce domestic labor force. Migrants get god money as well as human capital, and generate savings and remittances which is used to swell up the banks’ financial resources. This proves that many small-scale projects were initiated using proceeds from remittances.

On the same note, returnees acquire new skills which enable them engage in meaningful jobs and thereby engage themselves in developmental activities in the mentioned six states. This has been useful in poverty reduction. In some instances, the government appoints some returnees experts in the administration affairs of the nation. Okonjo-Iweala and Prof. Charles Soludo are some of the appointed people who have worked with World Bank previously. The training and expertise together with the implemented policies have been very useful in developing Nigeria. As Nigeria diaspora continues to remit money, it is used for poverty reduction projects which eventually reduce poverty in the nation. The reason why remittance’s impact on development is rarely noticeable in Nigeria is because it is not part of resources main stream in the country. This could be due to the fact that a steady money flow is accessible.

From the foregoing discussion, there is a need to improve remittance in the nation so as to contribute to more growth. Some of the ways through which this can be achieved include promoting efficient and transparent collection and utilization of remittances. Remittance transfer can be encouraged by adopting macro-economic policies that are conducive to growth an investment such as direct foreign investment opportunities and good savings interest rates in principal economy areas, entrepreneurial, commercial and productive activities. Commercial banks also need to introduce products that lick to remittances directly such as educational loans, housing loans insurance and micro loans for encouraging investments and savings by recipients.

References

Adelman, I. & Taylor I. (1990). Is Structural Adjustment with a Human Face Possible? The Case of Mexico. Journal of Development Studies, 26 (4), 387-407.

Brett, J. & Sedeca, S. (2004). Diaspora, Émigrés and Development: Economic Linkages and Programmatic Responses. Retrieved from http://www.tessproject.com

Levitt, P. (1996). Social Remittances: A conceptual tool for Understanding Migration and Development. Working Paper Series, 96 (4), 12-45.

Sander, C. (2009). Migrant Remittances to Developing Countries. Retrieved from http://www.migrationinformation.org/Feature/display.cfm?id=393

Tailor, E. (2004). Remittances and Poverty in Guatemala. Oxford University Press: NewYork.

EXCEL PROJECT – INVESTMENT

August 2, 2012

Introduction

Excel is a vital tool in stock portfolio analysis because it helps in the process of analyzing the performance of various stocks before one makes a decision to invest inn such stocks. This paper shall therefore analyze the performance of two large market stocks that manufacture accounting software namely Oracle Corporation and SAP AG and two medium market stocks that manufacture accounting software namely Microsoft Corporation, Intuit Inc and Sage Group. The report shall first analyze the various types of accounting systems sold by each company and the industries which such companies market their products. The report shall then explain how Wall Street views the companies mentioned above. The report shall then explain the results obtained by analyzing the stock performance using excel in four different scenarios. After analyzing the four scenarios, the report shall develop a scenario that would have exceeded the results from the best scenario and finally the report shall explain how excel spreadsheet helped in the process of analyzing the above mentioned stocks and explain other activities that could have been carried out on the data using excel.

  1. Accounting systems sold by each of the five companies

Oracle Corporation; Oracle corporation manufactures and sells various accounting systems which include Oracle EnterpriseOne commonly used in managing accounts payables, accounts receivables, advanced cost accounting among other functions, Oracle Peoplesoft financials which is commonly used for activity based cost management, assets life cycle management, asset management, Billing among other functions, Oracle financials which is used to manage general ledger, final accounts among other functions, Oracle E-Business suite which is commonly used to manage advanced collections, advanced procurement among other functions, Oracle World which is commonly used in bulk stock management, contracts and service billing among other functions etc (Oracle, 2012).

SAP AG; the company manufactures and sells various accounting systems which include SAP Enterprise Software, SAP enterprise asset management and SAP enterprise resource planning financials (SAP, 2012).

Microsoft Corporation; the company offers various accounting systems which include Microsoft office accounting express, Microsoft great plains, Microsoft Dynamics ERP (Microsoft 2012).

Intuit Inc; the company manufactures and sells accounting systems such as QuickBooks, Turbo Tax, Quicken, Intuit Online payroll and Quick Base (Intuit 2012).

Sage Group; the company manufactures and sells accounting systems such as Peachtree, timeslips, Sage MIP fund accounting, Sage business vision accounting, Sage Accpac ERP, Sage Pro ERP, Sage business works accounting, sage pastel, Pastel evolution, ACCPAC ERP, Sage accounting software among others (Sage, 2012).

  1. Industries to which the companies market their products

Oracle Corporation; the company usually markets its products to the following industries; Aerospace and Defense, Automotive, Chemicals, Communications, Consumer good, education and research, engineering and construction, financial services, healthcare, high technology, industrial manufacturing, insurance, life sciences, media and entertainment, natural resources, Oil and Gas, professional services, public sector, retain, travel and transportation, utilities and whole sale distribution industries (Oracle, 2012).

SAP AG; the company usually markets its products to the following industries; Aerospace & Defense, Automotive, banking, chemicals, consumer products, defense and security, engineering, construction and operations, healthcare, higher education and research, high tech, industrial machinery and components, insurance, life sciences, media, mill products, mining, oil and gas, professional services, public sector, retail, telecommunications, transportation and logistics, utilities and wholesale distribution (SAP 2012).

Microsoft Corporation; the company manufactures and markets its accounting systems to the same industries as the ones mentioned in Oracle above (Microsoft, 2012).

Intuit Inc; the company manufactures and markets its accounting systems to small businesses across all industries.

Sage Group; the company markets its products to the same list of industries mentioned in Oracle Corporation above.

  1. How wall street views the firms

Oracle Corporation; Based on MSN money magazine, Wall Street does not understand Oracle’s strategy and as such despite positive profits and optimistic outlook, the company’s price does not respond well to the profits announcement. For instance the announcement of the company’s earnings of $0.62 and projected earnings of between $0.76 and $0.81 for the fourth quarter which is ending in may 2012 did not lead to an increase in the share price instead the price decreased to $30 compared to the price before the announcement which was $30.6 indicating that Wall Street’s view on Oracle is negative (MSN Money 2012).

SAP AG; the Wall Street has rumors that SAP CEO offered to facilitate the merger between Oracle and Sun. SAP rejected the speculation indicating that the company values openness and choice in the market an aspect that gives it a positive view on the Wall Street (SAP 2012b).

Microsoft Corporation; based on the start online magazine on April 21st 2012, Microsoft Corporation exceeded the profit forecast placed on it by Wall Street by gaining 2.5% in hours after the profit announcement on 21st April 2012. This indicates that Wall Street has a positive view on Microsoft Corporation and the company has met and exceeded Wall Streets expectations (The Star Online, 2012).

Intuit Inc; based on the Kansas city star magazine, Intuit was among the Wall Street movers as it announced that it expects its third quarter revenue to be closer to the lower end of its profit guidance on 20th April 2012 indicating that the Wall Street has a positive view on the company (Kansas City Star 2012).

Sage Group; there are no news on the Wall Street for Sage Group because it is listed in the London Stock Exchange

Results and analysis of the four scenarios

The data used in the analysis of the five companies was obtained from yahoo finance database. The choice of this database was informed by the fact that it is up to date and reliable in terms of access to stock prices both opening and closing for each trading day.

The results obtained for scenario one are as shown in the table below where Oracle recorded the highest net gain which is equal to $45,057.6 if an amount of $500,014.2 is invested in the stock for 120 days and Intuit recorded the least net gain which is equal to -$63,293.82.

The results obtained for scenario two and three are as shown in the table below where for scenario two Oracle recorded the highest gain which is equal to $67,584.96 if an amount of $750,005.32 is invested in the stock for 120 days and SAP recorded the least gain which is equal to -$19,171.83. For scenario three, Microsoft recorded the highest gain which is equal to -$67,583.32 I an amount of $750,003.03 is invested in the stock for 120 days and Intuit recorded the least gain which is equal to -$94,937.42.

The results obtained for scenario four are as shown in the table below where Oracle recorded the highest gain which is equal to $90,115.2 if an amount of $1,000,028.4 is invested in the stock for 120 days and Sage Group plc recorded the least gain which is equal to £2502.75 assuming that an exchange rate of 0.62 was applied between the dollar and the British pound.

Scenario 5 which would have exceeded the best scenario

The best scenario among the four scenarios above is scenario four which invests $1 million in each of the best companies in the large market companies and the medium market companies which are Oracle and Sage Group respectively. Scenario four is the best scenario and there is no other scenario that would perform better than scenario four because the other three companies made losses with the 120 days under scrutiny. Only Oracle and Sage Group made profits. The only way that another scenario would perform better than scenario four is by investing more money than in scenario four. Therefore if we invest $1.5 million in Oracle and Sage Group the following result will be obtained.

As shown in the table above, Oracle recorded the highest gain which is equal to $135,169.92 and Sage recorded the least gain which is equal to £3,754.12.

How Excel helped in the stocks analysis

In the stock analysis above, excel spreadsheet helped to manipulate the data faster than doing so manually. The spreadsheet also helps in presenting the processed data in tables and charts an exercise that would be difficult to do and would take a lot of time if done manually. Excel can also be used to create a portfolio of any combination of the five stocks and determine the return of such a portfolio in the 120 days under scrutiny and also the standard deviation and beta of the portfolio which would be difficult to calculate manually.

References

Intuit. (2012). Intuit Small Business Products. Retrieved on 26th April 2012 from http://smallbusiness.intuit.com/small-business/products-a-to-z/index.jsp

Kansas City Star. (2012). Wall Street Movers: Microsoft, Honeywell, Intuit. Retrieved on 26th April 2012 from http://www.kansascity.com/2012/04/20/3566926/wall-street-movers-microsoft-honeywellintuit.html

Microsoft. (2012). Microsoft Business Hub: Products. Retrieved on 26th April 2012 from http://www.microsoftbusinesshub.com/Products

MSN Money. (2012). Oracle misunderstood on Wall Street. Retrieved on 26th April 2012 from http://money.msn.com/top-stocks/post.aspx?post=a18ac324-5cb7-4c88-adbb-c989236669b3

Oracle. (2012). Oracle Industry Solutions. Retrieved on 26th April 2012 from http://www.oracle.com/us/industries/index.html

Sage. (2012). Sage Products and Services. Retrieved on 26th April 2012 from http://www.sage.com/yourbusiness/productsandservices/productsandservicescontacts

SAP. (2012). Business process applications. Retrieved on 26th April 2012 from http://www.sap.com/solutions/index.epx

SAP. (2012b). SAP Statement on the wall street journal piece about Oracle-Sun Deal. Retrieved on 26th April 2012 from http://www.sap.com/corporate-en/press.epx?pressid=12220

The star Online. (2012). Microsoft beats Wall Street profit view. Retrieved on 26th April 2012 from http://biz.thestar.com.my/news/story.asp?file=/2012/4/21/business/11147478&sec=business