Regulating Prostitution Essay Example | Topics and Well Written Essays - 750 words

Regulating Prostitution - Essay Example Stakeholders in Prostitution Prostitution in simple terms involves the sale of sex by an individual for commercial purposes (Bovard para 8). Prostitutes mainly depend on the sale of sex for their daily provisions. Their clients on the other hand provide the sex workers with cash as they pay for the services that they enjoy in the process. Yet another stakeholder in the prostitution circle is the prostitutes’ family members and the families of their clients. The government comes in the scene mainly as a regulator in the event that the activity is legal. Arguments against the Regulation of Prostitution Although prostitution has been legalized in some countries such as Netherlands, England and Scotland, there have been problems in creating new laws and keeping up with the regulations that pertain to its operations (Tigtog para 2). The laws or measures have proved to be a challenge to both the government and the individuals engaged in the activity. Following the inability of the g overnments to regulate the act properly, questions have been raised as to whether it should be regulated (Munro and Giusta 15). Many quarters have argued for the legalization and regulation of prostitution based on the premise that the trade is more like other professions and deserves a fair share of respect, respect and dignity. Its regulation therefore would ensure that prostitutes and all stakeholders in the industry somehow benefit, the government included through taxes. However, this argument goes beyond moral argument as professed by various religious beliefs. Most faiths believe that prostitution in any sense is immoral and therefore should neither be legalized or regulated. Also, in as much as prostitution is legal in some countries, there are still those who work under the table so that they do not lose money through taxation (Munro and Giusta 20). Therefore, it is certain that legalizing and regulating prostitution will not bring as much economic benefits as many may think . Yet another argument for the regulation of prostitution is with respect to health. It is argued by some quarters that when regulated, the chances of reducing the spread of sexually transmitted diseases including AIDS will be reduced. However, this may never be the case since in many jurisdictions cases of sexually transmitted diseases have continued to rise in spite of regulation. Furthermore, the idea that there will be a health clinic that would ensure that the safety and optimal health of legal prostitutes is protected or maintained may not be achievable and reliable (Munro and Giusta 24). It takes about six months for STDs to show on upon screening an infected person. Beyond doubt, very few prostitutes, if any, will lie low for six months after every screening before serving another client to make quick money. The main aim of prostitution is to make more money and if the government regulates its operations then the amount of money made by each prostitute would reduce as the pr ostitutes will have to pay taxes. With reduced earnings, the prostitutes will therefore engage themselves in other illegal activities such as drug abuse and violence hence increasing the rate of crime in a given country or community. Furthermore, the idea that diseases may not be spread if prostitution is regulated is not assured. In case prostitution was to be legalized and regulated, there would be a greater demand for prostitutes

One page summary 2011 Essay Example | Topics and Well Written Essays - 250 words

One page summary 2011 - Essay Example The scatter diagram simply provides graphical evidence that there is an existing relationship and will also provide some idea regarding the strength of the relationship. A scatter diagram is constructed by plotting the values of one variable on the horizontal axis, and the corresponding value of the other variable on the vertical axis. The strength of the relationship is determined by the variability of the cluster of points relative to a mathematical expression describing the association. A run chart is a time-ordered chart, that is, individual measurements are plotted in the order in which they occur, and then connecting the points for ease in interpretation. It is best used to identify sustained shifts or trends in the process average. A control chart is a run chart with control limits. These limits represent the maximum and minimum allowable values for any individual plotted point. Any point that exceeds these limits provides statistical evidence that the process average has changed and that the chart’s centerline is no longer a reliable approximation. Thus, a control chart tests the statistical stability of the

literature Review of Hate Crimes

literature Review of Hate Crimes Abstract Hate crime is a term that was born in the 1980s from journalists and policy advocates who were trying to describe crimes of bias against African Americans, Asians, and Jews. From there, the term hate crime expanded and an act was passed that required the tracking of hate crime statistics. These statistics can often be misleading due to the underreporting of hate crimes and the strict requirements surrounding what constitutes a hate crime. Gender based hate crime is the most prevalent, with African Americans being the largest racial group targeted by hate crime. Trends develop in the amount of hate crimes as seen by the recent upswing in hate crimes against Middle Easterners following the September 11, 2001 terrorist attacks. Police have responded to hate crime by changing their policies and creating new units to specifically target hate crime. There have been new laws created regarding hate crimes and an enhancement of their punishment in an effort to combat hate crime. Possible solu tions to try to decrease hate crime focus on the early identification of young adults and juveniles who may be prone to commit these acts and the intervention and education of offenders. There must also be a focus on the tactics of law enforcement officers if hate crime is to be reduced. 3 A Study of Hate Crime To better determine how to respond to and handle hate crime, it helps to understand just what hate crime is. An example of hate crime from Shively and Mulford (2007) is, In December 2000, in Brooklyn, New York, Mohammad Awad punched Chaim Spear while yelling obscenities and anti-Semitic remarks (para. 1). This is a very basic example of what can be a very complex criminal act. Specific statistics on just how many hate crimes are committed can be a bit murky due to reporting methods, but one thing that can be gathered from the statistics is that hate crime is not going away anytime soon. Since hate crime is not going away, the appropriate response to hate crime from police and courts is more important than ever. The response of police and courts should also work towards solving the problem of hate crime. That can mean targeting hate crime in youth offenders and possibly preventing it or changing the tactics of law enforcement officers. When studying any problem, a good place to start is determining the origins of the problem. With that being said, hate crime has most likely been around as long as there have been people with differences in religion, race, or sexual orientation trying to live together. But, as pointed out by Shively and Mulford (2007), The term hate crime was coined in the 1980s by journalists and policy advocates who were attempting to describe a series of incidents directed at African Americans, Asians, and Jews (para. 26). The collection of statistics regarding hate crimes began in 1990. It was at this time that the Hate Crime Statistics Act was passed by Congress. The act as defined by Bartol and Bartol (2011), Known as the Hate Crime Statistics Act, it requires data collection of violent attacks, intimidation, arson, or property damage that are directed at a person or group of persons because of race, religion, sexual orientation, or ethnicity (p. 17). During the 1990s, the act was expanded to i nclude disabilities, both physical and mental, as a tracked bias. The Hate Crimes Sentencing Enhancement Act was also passed during the 1990s to lengthen sentences for perpetrators convicted of hate crimes. While studying hate crime it is apparent that there can be trends in hate crime. African Americans usually top the chart in being the target of hate crime, but a trend that started after the terrorist attacks of September 11, 2001 were an increase of hate crimes against people from the Middle East. One of the more surprising finds from Steinberg, Brooks, and Remtulla (2003) was, Gender-based hate crimes, or crimes against women, are perhaps the most prevalent form of hate crime in general, but the most socially acceptable and prevalent type of hate crime among teenagers and young adults is that targeting sexual minorities (para. 28). This find was surprising to read at first, but after reflection, the find makes sense. In many countries, women are still seen as second-class citizens with less rights and privileges than their male counterparts. Among teenagers and young adults, there is still a negative stigma around being homosexual as seen from some of the slang still used. An examp le of this is hearing a group of students describe something they deem to be bad as gay. The impact these hate crimes have on the victims can be overwhelming and lasting. As described by Bune (2004), Sometimes they blame themselves for being victimized, although they are innocent victims. As a consequence of their victimization, victims may isolate themselves from others and possibly develop strong mistrust of other people (para. 10). The impact on the victims makes it very important to get a clear picture on how prevalent hate crime is. But, because of underreporting, it is very hard to have accurate statistics on just how prevalent hate crime is overall. As stated above, two of the problems with statistics regarding hate crimes is determining what constitutes a hate crime and victims not always reporting the crimes against them in fear of either retaliation or shame. According to research from Shively and Mulford, the FBI found 7,163 hate crime incidents with 8,795 victims in a 2005 study. But, the Bureau of Justice Statistics (BJS) using victim interviews and including times when the offender either used hateful symbols or language found 191,000 incidents affecting 210,000 victims. As they explain, The disparity in these two estimates stems, in part, from an important difference in the data collected: the FBI counts only crimes that are reported to the police. For the NCVS, BJS collects information from victims, who are asked if they think hate played a role in the crime (para. 8). This is a huge gap in the two numbers and more than likely, the true scope of the problem lies somewhere in between the two numbers. A specific look at s ome of the groups from the research of Steinberg, Brooks, and Remtulla shows, In 1999, there were 7,876 hate crimes reported, of which 4,295 were motivated by racial bias, 1,411 by religious bias, 1,217 by sexual orientation bias, 829 by ethnicity/national origin bias, 19 by disability bias and 5 by multiple bias (para. 24). With over half of reported hate crimes that were reported being motivated by racial bias, it is clear that race is still an issue in the United States. These statistics can help in responding to hate crime by determining where efforts should be focused. Two main entities focused on hate crime right now are police departments and the court system. Police departments have begun to deal with hate crime by altering their policies regarding how hate crimes are handled and by creating units specifically to deal with hate crimes. One of these policy changes according to Bune is, Establish clearly that the department has zero tolerance to any form of hate crime, regardless of apparent seriousness (para. 6). By doing this, the community will begin to understand that hate crime will not be tolerated and as mentioned above, the penalties for hate crimes can be more severe. The units as described by Shively and Mulford, Many jurisdictions have established hate-crime units in their police departments, and some regional task forces are devoted to investigating hate crime (para. 13). These units have the time to focus on hate crimes specifically and implement strategies in dealing with and hopefully eliminating hate crime. The court system has a t ough balancing act regarding hate crimes. There are many acts that are racially motivated, but because of first amendment rights are protected. One example is cross burning. As explained by Harr, Hess, and Orthmann (2012), Without more evidence to prove a hate crime, cross burning is deemed a protected form of speech (p. 151). The court cannot interpret what is meant by the acts involved even if they are implied. Even without that, there is still the positive regarding hate crime legislation and laws. According to Shively and Mulford, The Federal Government and all but one State (Wyoming) have specific hate-crime laws (para. 10). Even though these laws vary in what they encompass or the enhancement of the penalties, having the laws in place is a step in the right direction regarding handling hate crime. After getting an idea about what hate crime is and tactics to try to combat it, there is another question that must be answered. What can be done to get rid of hate crime or at least significantly reduce the number of hate crimes? One idea from Steinberg, Brooks, and Remtulla is, To prevent future hate crimes, law enforcement agencies, state and federal agencies, public interest groups, and schools have been working together to identify and track hate crimes and to mitigate the conditions that foster them (para. 44). It is not surprising that there is a large amount of hate crimes perpetrated by young adults and juveniles. That developmental period lends itself to trying to fit in and struggling with peer pressure. That is why there must be a focus on young adults and juveniles if hate crime is to be decreased. Three ways this can be accomplished is by tracking the crimes that are being committed and identifying the causation behind them, stopping the recruitment of juveniles to hate groups, and using the data from tracking and identifying the causation of hate crime to intervene and educate at risk juveniles and young adults. Another way to try to reduce hate crime is to alter law enforcement tactics. This can be accomplished in a number of ways, such as police leadership ensuring that departmental policies are followed regarding hate crimes and assisting prosecutors in getting convictions of hate crimes by providing accurate information. A major tactic regarding victims as explained by Bune is, à ¢Ã¢â€š ¬Ã‚ ¦recognizing the particular fears and distress typically suffered by victims, the potential for reprisal and escalation of violence, and the far-reaching negative consequences of hate crimes on the community, the department will attend to the security and related concerns of the immediate victims and their families (para. 28). There should be a focus on healing and the rights of the victim after a hate crime has taken place. It not only helps the victim a nd their family, but the community as well to see that there is support and that it is okay to report crimes with fear of retaliation. Hate crimes definition has expanded since the 1980s. Even as different groups are added, the importance of focusing on hate crime will not change. Statistics regarding hate crime are very hard to track due to the underreporting of them as well as strict definitions on what the FBI determines to be a hate crime. Over the past few years, police departments and the court system have responded to hate crime by changing their policies, creating new units, and enacting laws centered on hate crime. Some possible solutions to decrease hate crime are to focus on young adults and juveniles and by changing law enforcement tactics regarding hate crime. A final example of hate crime and just how heinous and serious it can be comes from June 1998 in Jasper, Texas. James Byrd, Jr. was a 49-year-old African American man who was walking home from a family party when he was offered a ride home by three known white supremacists. They took him to a remote road and beat him and then dragged him behind th eir truck. The rest of the story as described by Bartol and Bartol, Police found Byrds head, neck, right arm, torso, shoes, a wallet, and other personal items scattered along the route. A mile-long blood trail on the road marked the gruesome scene (p. 18). A scene like the one described is not just another murder. It is the perfect example of the type of hate needed to commit a crime of this magnitude and why there needs to be such a focus on hate crime and its prevention. 9

The Choosing Essay by Liz Lochead

The Choosing Essay Marianne Lavery The poem â€Å"The Choosing† by Liz Lochead deals with problems of growing up and the issue of education through the two central characters, Mary and Liz. This poem is about two young girls called Mary and Liz who grew up together living an ordinary life. They were both intelligent and ambitious. They were best friends for years at primary school until they had the chance to go to secondary school and they went their separate ways to start their new lives. Later on in the poem they meet very unexpectedly on a bus years later. This really does show the reader just how much the two girls have change from primary school. In stanzas 1, 2 and 3 the poet Liz Lochead has emphasized the similarities between the two girls by describing their appearances. They both had the same â€Å"mouse-coloured† hair which suggests they are ordinary. Also they were polite, smart and proud. The poet has used repetition by saying how â€Å"equally proud† they are. This emphasizes the similar attitude the girls had towards their education. Alliteration has also been used. â€Å"Collins’ Children’s Classics†. Stanza 4, describes how their lives took different paths. Mary moved because of cheaper rent somewhere else and Liz stayed where she was, in her hometown where she grew up. Mary’s father had a very bad attitude towards girls’ education and he is also sexist. He didn’t believe in high school education especially for girls or in forking out for uniforms†. Marys family had also financial difficulties according to the poet. The final three stanzas shows that ten years have passed since the two girls went their separate ways but they find their selves sitting in the same bus as each other. However this time as they meet, Mary does not recognise Liz. Mary is sitting next to her husband â€Å"who is tall, curly haired a nd has eyes only for Mary†.

Proper Way to Live by Confucianism and Taoism Essay

Confucianism and Taoism are ideologies that originated from China. These two ideologies have become popular even though different in their various approaches. The analysis of this paper will include introduction of the main ideologies of Confucianism and Taoism, and it is also providing a comparison between the two ideologies. Confucianism It is a word used for the ideologies of Confucius, a scholar that existed at the time of warring states. The keyword of Confucianism generally is the concept of humanism (Ritzer 37). Among the five virtues of Confucianism are Humanism, Righteousness, Principle, Knowledge, and Integrity. Taoism He was a scholar who like the others lived in the period of the warring states, and had a different approach in his ideologies. Tao is the main concept of Taoism, meaning â€Å"way.† It is described as a spontaneous, natural, external way of things, as well as the way they pursue their course (Ritzer38). The argument of many philosophies is that in case people are going to let everything in life to flow in their own way, then everything would definitely work out, like in the starts of his argument in this case it affirms the word â€Å"refrain.† While Confucianism has emphasized more on humans and their capabilities, Taoism has emphasized nature and equality. According to Confucius when an individual has faults, he should not have fear in abandoning them. Confucianism recognizes the need to be strong by shunning away any set back from other people who do not recognize the ability that you possess as portrayed by the statement â€Å"Do not grieve when people fail to recognize your ability, Grieve for your lack of ability† (Ritzer 38). The philosophy talked about not listening or be bothered with what other people think about your ability but always rise-up to the occasion and not grieve. These concepts are what Confucius was using in bringing order and peace to society and he was considered successful in doing so. Based on the facts that his argument on life emphasizes more on the importance of human relations, it is still influential. Confucius has emphasized humbleness, the philosophy describes what a noble mind aspires to â€Å"slow to speak and quick to act,† in the same way the ancient people spoke little. This is similar to Lao Tzu view about life describing life to be with little quarrels in order to avoid quarrelling with other people. Moreover, Confucius view about life is all about loyalty, ready to change whenever wrong, always standing by your words, as well as choosing only the kindred as your friends. Taoism has emphasized humbleness and gratefulness throughout life, â€Å"†¦have little and gain; Have much and be confused.† Taoism also has considered humbleness in life in another perspective affirming need for a person to stand by his own words as a way of being humble. The philosopher describes wise men as setting example to all and in order for that to happen a wise man must always stand by his own word, a character that can be desired and be emulated. Taoism view about life has been considered as perhaps too mystical. It can be criticized to be just an ideology that is trying to escape reality. Moreover, as much as Taoism could give a skeptical view, it failed to provide a realistic solution about life. However, Confucius as a philosophy is more welcomed because it has a deeper sense of life with realistic solution, especially regarding the opinion that other people have about some other people. According to Confucius, people should not just be comfortable with the way they have been described and given title, whether positive or negative. When they talk good about other people, do not just take the complement and remain comfortable, investigate and find out the reason behind being good to them. This is always more serious when they hate you. Since there are many reasons behind somebody holding an opinion about another person, it is indeed important to investigate more why other people have decided to have that opinion, this is because there may be genuine reason behind doing so or may just be a misunderstanding of what was wrongly perceived. According to Confucius just like Taoism in some aspects every individual is required to act with virtue in every social matters, family, community, state, and kingdom, mainly to ensure order and unity. Though these two philosophies may have taken different philosophies, they have in one way or the other succeeded in shaping of the society in terms of their way of life and their approach to life. Realistic or not realistic their ideologies stand to stay and the perceiving mind is what should embrace and accept the reality. Conclusion Following the rise of individualism and freedom, the modern society always forgets their manners and patience. Most of the people tend to be selfish, rude, and having over high esteem about themselves. Just as emphasized by Confucius in his time, people should learn to be calm and respectful in life. Also Taoism has pointed out the need to learn being free, empty our minds, as well as clear our souls. This is because nobody in this world that do not need peace of minds. References Ritzer, George.Contemporary Sociological Theory and Its Classical Roots: The Basics. McGraw-Hill, 2009. 37–38. Print. Source document

The And Educational Welfare Of A Child - 1097 Words

ELC When reflected back upon my internship and all the different activities that encompass the ELCC standards, I was amazed how most assignments can be related to school improvement. I can consider that I believe the class was school and community relations my topic research was Response to Intervention. (RTI) In my current district the graduation rate is around 86% compared to the State of Arkansas at 80% and national average in the mid 70’s. Although my school is very good compared to other schools across the state and the nation, it occurred to me we could still be better. My hope was not just to write a paper and earn a good grade, but to write a paper and try to make a difference in the life and educational†¦show more content†¦Most if not all of these students eventually were placed into a smaller group environment called Alternative Learning Environment. (ALE). What I gathered was these students wasted 3-4 school years to finally make it to a more intensive behavi oral environment that caters to academics as well. My objective was to implement a more intensive RTI program at an earlier age to identify these students and use more intensive classroom interventions to identify the student’s needs. The biggest concern I had working on my research paper and working with administration was the fact if a 9th grader failed at least two classes they carried a 50% more risk to drop out of high school. The principal agreed to implement a RTI committee that the chair person is an administrator and work as a team identifying at risk students at an earlier date. To this day the RTI team is working and identifying students attempting to help the student be successful in the classroom. I can honestly say if it wasn’t for my internship and realizing that a need existed, more than likely I would have not been involved near as much as I am now. My recommendation for school improvement would be for a solid RTI committee to include parents and stude nts into an education contract. This proposal would could possibly achieve many benefits to the stakeholders. 1, the school, student, and parent sign a

What Determines The Bond Market Development In Pakistan Finance Essay - Free Essay Example

Sample details Pages: 15 Words: 4554 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? This study empirically analyzes the determinants of bond market development Pakistan between 2003 and 2009. It considers the stage of development and the size of the domestic bond market, as well as the historical, structural, institutional and macroeconomic factors driving bond market development in Pakistan. In this research the study of macro-economic variables, Banking size, natural openness, Broad money (M2), money in circulation, Interest rates and Inflation rates, to inspect causal impact of each macro-economic indicator on bond market development in Pakistan, six years data gathered on monthly basis from July 2003- June 2009 for macro-economic indicators and bond market capitalization have been collected, the study applied ARIMA model as a statistical tool for data analysis.. Don’t waste time! Our writers will create an original "What Determines The Bond Market Development In Pakistan Finance Essay" essay for you Create order Overall, the results show that a convergence of factors matters for the development of domestic bond markets in Pakistan; these include size of the banking sector, and the money in circulation in market. Policy implications include increased efforts to strengthen the investment environment and the need for a regional approach to bond market development. Introduction The 1997-98 financial crises highlighted the problem of bond market underdevelopment in Asia. The small size and slow growth of regional bond markets, as many observers noted, left corporate borrowers greatly depend on banking finance. Given the short tenor of bank loans, a shock to confidence left Asian economies vulnerable to a disruptive credit crunch. Since banks denominated many of their loans in foreign currency, exchange-rate depreciation could result in serious balance-sheet damage and thrust highly leveraged corporations into bankruptcy. After the Asian crisis significant attention has been paid to the role of bond markets in overall financial sector stability and economic development. Several studies have found that financial market development is correlated with economic development (Levine, 1996) and Montiel, 2003)). Corporate bond markets are important for financial market because it provide long term financing, competition to the banking sector and enhancing stability of financial sector. Whenever companies need finance their project or expansion they have four sources to get money (1) retained earnings (2) bank borrowing (3) corporate bonds, and (4) equity. In emerging market most the financing is done through bank borrowing. For example in 2003 over 80 percent of corporate financing in emerging markets was in the form of bank loans (Luengnaruemitchai and Ong, 2005). Similarly, in Pakistan the majority of external financing of firms is through the banking sector. The bond market is vital to any economy. It raises the capital to build infrastructure, helps promote the economic growth, fuels investment that in turn creates jobs, and enhances market efficiency. Theoretically, bonds lower the cost of borrowing and provide an effective channel for savings. It is believed that the bond market is the one of the main instrument of the capital market and plays important role in mobilizing savings into productive investment that promotes economic grow th and development. Pakistani corporate bond market (CB) is only partly developed by international standard. Statement of Problem This thesis will be taking into account the understanding of the mechanism of the bond market and the strategies required by the government to accelerate and increasing investments in bonds market. This thesis will be also be taking into account in making strategies that will help the issuers of bond in increasing investments in the corporate and to bonds to attract investors towards the bond market. Some problems that need to address in development of bond market in an emerging economy are macroeconomic conditions and economic policies in practice and the second set of issues are related more with microeconomic development. For this research five independent variables and one dependent variable are taken to identify what are the determinate of development of bond market. The independent variables are 1) Interest Rate, 2) Inflation Rate (CPI), 3) Natural Openness, 4) Money Circulation in market, 5) Banking Size and 6) Board Money (M2) and dependent variable Bond Market Cap italization as a share of GDP Significance of the Study This thesis will be taking into account the understanding of the mechanism of the bond market and the strategies required by the government to accelerate and increasing investments in bonds market. Significance for the issuers: This thesis will help the issuers of corporate bonds in increasing investments in the bonds market to attract investors towards the bond market. This research will help in determining your financial goals which is the first step to successful investing. This is a crucial step, for many of the decisions you make later will depend on the goals you set now. Establishing investment goals will help you assess how much money youll need, when youll need it, and how much youll need to invest to reach your goal. Literature Review There has been two phases of development of the corporate bond market in the case of East Asian countries (Das 2005), i.e., before and after the Asian financial crisis. In the pre-crisis period, Korea was the leader in creating corporate bond market which was fuelled by supply of corporate bonds by a large number of chaebols and demand of Investment Trust Companies (ITC). Before crisis, share of corporate bonds in total corporate financing was 32% followed by 31% of private loans and 28% of equity during 1995-1999 (Davis Stone, 2004). But in post crisis Malaysia become the leader with the volume of bond market of 51 % of GDP in 2001. For bond issuance in Hong Kong, Singapore and South Korea financial institutions plays a very important role, but they are not so active in China and Malaysia. (Ameer, 2007). (Eichengreen and Luengnaruemitchai, 2004) finds that the country size and openness are positively related to bond market development. Distance from the equator, a proxy for en dowment theories, similarly enters with its expected positive sign. It is not possible to use colonizer mortality rates in an analysis of Asian bond markets, since relatively few Asian countries were colonized by the European powers, and colonizer mortality estimates (and logic) are based on data for and the experience of one-time colonies. On the other hand, they find that countries with more concentrated banking systems appear to have smaller bond markets, consistent with arguments suggesting that banks with market power may use it to discourage bond flotation. He also looked further at the robustness of the positive association of bank and bond market development, which runs contrary to some popular arguments and is likely to be controversial Asian economies from excessive dependence on bank loans and to foster the development of a more diversified and efficient financial sector, and there is evidence that they are growing (Fernandez and Klassen 2003). But the level of bond ma rket capitalization is low and results from the fact that bond markets are separated by country, with low liquidity, limited investor participation, underdeveloped infrastructure and few intermediaries. In the absence of bond markets in some cases complicated efforts are made to finance large infrastructure projects and enterprises with high minimum efficient scale found it hard to meet their financial needs. The amount that could borrow from a syndicate of banks which could securitize their loans, but security of that amount was too costly and very much difficult in the absence of a bond market. (Eichengreen and Luengnaruemitchai, 2004) Lummer and McConnell, (1989) and Gilson, (1990) point out that bank borrowing enables a firm to efficiently undertake corporate debt restructuring, in contrast to bond issues, where it faces the difficulty of having to communicate with a large number of creditors. To better understanding of the bank-corporate bond market relationship, along wi th other determinants of bond market development, can drop light on how best to provide appropriate policies to facilitate bond market development. The results (Dickie and Fan, 2005) is also support by the interest group theory proposed by (Rajan and Zingales, 2003) that emphasizes s that banks with market power may attempt to strangle the development of corporate bond markets. This is because the development of corporate security markets may compete for good borrowers from banks, through this the quality of bank loans may drop, the task of risk management may become harder as loans become riskier, and they may need to hire more human capital to manage the things. The ability of banks to oppose bond market development is related to the structure of the banking sector. A more concentrated banking sector is the more they will possess bond market development. (Dickie and Fan, 2005) The soundness of the banking system also has important for development of the government securities ma rket and bond market. Domestic and foreign investors are deeply concerns for the soundness of the banking system that has an adversely impact on the ability of the corporate and government to issue new bonds and securities. (Silva, 2008) Adelegan and Radzewicz-Bak (2009 in his research finds that commercial banks are more dominate in SSA countries and, they are comparatively large in size as compared to other segments of the financial sector as well as the roles that play as market makers for primary issues. According to the Eichengreen and Luengnaruemitchai, (2006) coefficients on the ratio of bank loans to total debt finance suggest that the relative importance of bond finance rises with the financial development of the host country, while country (population) size is otherwise insignificant, suggesting minimal economies of scale. Eichengreen and Luengnaruemitchai, (2006) find in his research the interest rate highlight the importance of push factors: investments do not a lways go to the countries with higher interest rates, but they clearly come from countries where interest rates are low. According to the Adelegan and Radzewicz-Bak (2009) interest rate is also having a negative significant relationship between bond market developments. This suggests that higher interest rates and interest rate volatility are related with a smaller bond market. Silva (2008) In Asian countries banks and non-bank financial institutions plays a very important role in developing bond market as the issuers, mainly raising subordinated debt to meet capital adequacy requirements, and attract investors in this market. According to Silva (2008) there are several unpleasant consequences of high and volatile inflation on the efficient functioning of bond markets. Inflation rate has a very close relationship with expansion in money supply, budget deficits and currency depreciation. High inflation is largely a result of higher growth of money and fiscal deficits financed b y banking sources, especially by central bank which increases reserve money and fuels the overall monetary growth, thereby leading to inflation. The private sector borrowing from the banking sources also creates additional pressure for monetary management, partly a result of non development of alternative sources of financing or bond market. (Silva, 2008) Maysami, Howe, Hamzah (2004) suggest that an increase in M2 growth would indicate excess liquidity available for buying securities, resulting in higher security prices. Empirically, (Hamburger and Kochin, 1972 and Kraft and Kraft, 1977) found a strong linkage between the two variables, while (Cooper, 1974 and Nozar and Taylor, 1988) found no relation. Adelegan and Radzewicz-Bak (2009) in his study considers the correlation between the share of domestic debt to GDP and M2 to GDP, which is a measure of the domestic financial development base, on the premise that a large banking sector will help the government sell its debt domesti cally. According to Adelegan and Radzewicz-Bak (2009) as most of the sub-Saharan African (SSA) countries are shallow, and have inadequate access to finance. As a result, domestic resources as an alternative source of financing are becoming increasingly important in SSA, with SSA governments focusing mainly on domestic markets in order to avoid renewed or unsustainable external indebtedness. Weak development of financial sector is meaning that firms borrow from banks instead of issuing bond in stock market. Likewise, smaller value of transaction (turnover ratio, as a percentage of GDP) in stock market shows that public prefers to place deposit in banks more than to issue bond in stock market. This condition also proved by case that broad money growth provided by quasi money growth. (LKhagvajav B., Batnyam D. and Gan-Ochir D. (2008). In his research he consider macroeconomic and bond market stability. Generally macroeconomic stability is very important factor for the development of the bond market. They expect that the higher the volatility of the underlying economic situation the less incentive firms and savers would have to participate in the market. Theoretical Framework Hypothesis Construction In this chapter we construct our hypothesis to test the whether interest rate, inflation rate, natural openness, banking size, broad money M2 and money circulation any significant association with bond market capitalization. For this ARIMA technique is applied on the 72 months period data for all the variables. Banking Size According to Dickie and Xiaoqin Fan (2005) finds that central hypothesis of this research paper is that a highly concentrated banking sector could more effectively protect itself from disintermediation caused by bond market development. These results support the hypothesis that bank concentration is significantly negatively correlated with bond market development. These finding also provides the support for (Rajan and Zingaless, 2003) interest group theory of financial development. H1: Banking size explains the causes of change in bond market capitalization. Natural Openness According to the research done by Adelegan and Radzewicz-Bak (2009) find that openness (Exports to GDP) is negatively related to bond market development. This implies that the lower the level of natural openness, measured by exports to GDP, the lower the level of access to external funding and the greater the development of the local bond market. This is opposing to findings in (Rajan and Zingales, (2001) and Eichengreen and Luengnaruemitchai, (2004) on developed and Asian markets H2: Natural openness explains the causes of change in bond market capitalization. Inflation Rate According to research done by Ameer (2007) using Granger-causality tests finds that inflation rates have no influence on primary markets activities in South Korea and Malaysia. (Silva 2008) fins as inflation increases, the duration of the government securities declines and investors preference shifts to short-term government securities. H3: Inflation rate explains the causes of change in bond market capitalization. Interest Rate Eichengreen and Luengnaruemitchai (2004) find that volatility of interest rates is not significant bond market development, their level, suggests that higher interest rates are associated with smaller bond markets. H4: Interest rate explains the causes of change in bond market capitalization. Broad Money (M2) The research done by Adelegan and Radzewicz-Bak (2009 )considers the correlation between the share of domestic debt to GDP and M2 to GDP, which is a measure of the domestic financial development base, on the premise that a large banking sector will help the government sell its debt domestically. H5: Broad Money (M2) explains the causes of change in bond market capitalization. Money in Circulation According to the money market model given by Case and Fair (1999) an enhance in the money supply (Ms) at equilibrium causes a decrease of the interest rate (r), because when ever more money is supplied, than needed, thus households will deposit their over and above money at a bank, trying to take advantage from the high interest rate of interest-bearing bonds. Following this increasing supply of money, force is put upon the interest rate, which drops until new equilibrium will form at a lower interest rate. H6: Money in circulation explains the causes of change in bond market capitalization. Data collection Now we turn from broad hypotheses to empirical implications. Data set cover the period 2003 to 2009 at monthly frequency for maximum of 72 observations. The data are for all variables are taken from the annual reports of state bank of Pakistan. Empirical Model/ Statically Tool Bond market capitalization = f (Natural Openness, Banking Size, CPI, Interest Rate, Broad Money (M2), Money in circulation) Bond market capitalization = f (NO, BS, CPI, I, M2, M) Following model is used to find the relationship between macroeconomic variables and bond market capitalization. And to test the hypothesis that Macro economic variables has significant association with bond market capitalization. Empirical Result The Parameter Estimate table 1 shows that estimate of model parameters and associated significance values; including AR and MA orders as well as any predictors the parameter representing. Non- seasonal moving-average component (labeled AR1) is significant. The variable representing the natural openness, broad money (M2), interest rate and inflation rate are not significant i.e. 0.497, 0.842, 0.947 and 0.112 respectively which means they dont have any relationship with the Bond Market Capitalization. Only two variables that predict significant are Banking Size and Money Circulation i.e. 0.001 both at 5% significance value; it means that this predictor has a relationship with the Bond Market Capitalization. The change in natural openness, broad money (M2), interest rate and inflation rate does not affect the Bond Market Capitalization, but the change in Banking Size and Money Circulation does affect the change in Bond Market Capitalization. The correlation coefficient table 2 is a measure of linear association between two variables. The values of the correlation coefficient range from -1 to 1. The sign of the correlation coefficient indicates the direction of the relationship (positive or negative). The absolute value of the correlation coefficient indicates the strength, with larger absolute values indicating stronger relationships. The correlation coefficients on the main diagonal are always 1.0, because each variable has a perfect positive linear relationship with itself. Correlations above the main diagonal are a mirror image of those below.The correlations table displays Pearson correlation coefficients, significance values, and the number of cases with non-missing values.Pearson correlation coefficients assume the data are normally distributed.The Pearson correlation coefficient is a measure of linear association between two variables. The values of the correlation coefficient range from -1 to 1. Non seasonal lags values are the previous values of t he present natural openness, broad money (M2), banking size, money circulation, interest rate and inflation rate. When natural openness is 0 then the bond Market capitalization will be -0.858, similarly when banking size, inflation rate, interest rate, board money, and money circulation is 0 then the bond Market capitalization will be 0.749, 0.505, -0.538, 0.426 and -0.525 respectively. Alpha is not in percent it is a magnitude, when natural openness, broad money (M2), banking size, money circulation, interest rate and inflation rate are zero then bond Market capitalization will be equal to intercept. The sign of the correlation coefficient indicates the direction of the relationship (positive or negative). The absolute value of the correlation coefficient indicates the strength, with larger absolute values indicating stronger relationships. The correlation coefficients on the main diagonal are always 1.0, because each variable has a perfect positive linear relationsh ip with itself. The correlation coefficient for the natural openness and banking size is -0.623 thus, these both are 62.3% negatively correlated. The correlation coefficient for the banking size and inflation rate is 0.196 thus, these both are 19.6% positively correlated. The correlation coefficient for the inflation rate and interest rate is -0.483 thus, these both are 48.3% negatively correlated. The correlation coefficient for the interest rate and broad money (M2) is -0.281 thus, these both are 28.1% negatively correlated. The correlation coefficient for the broad money (M2) and money circulation is -0.401 thus, these both are 40.1% negatively correlated. The correlation coefficient for the money circulation and natural openness is 0.4 thus, these both are 40% positively correlated. Summary Assessment of Hypothesis S. No Hypothesis Regression Coefficient ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² Significance Value t Value Empirical Conclusion H1 Banking size explains the causes of change in bond market capitalization. -4.141 0.001 -3.695 Accepted H2 Natural openness explains the causes of change in bond market capitalization 0.682 0.497 0.688 Rejected H3 Inflation rate explains the causes of change in bond market capitalization. -0.202 0.112 1.64 Rejected H4 Interest rate explains the causes of change in bond market capitalization -0.043 0.974 -0.064 Rejected H5 Broad Money (M2) explains the causes of change in bond market capitalization. -3.40E-007 0.842 -0.201 Rejected H6 Money in circulation explains the causes of change in bond market capitalization. 4.85E-005 0.001 3.933 Accepted Results/Findings As discussed in the earlier chapters different variables have been taken based on the secondary data of 6 years comprised on monthly basis year 2003-2008, collected from the source SBP. Each variable explains the impact of each macro-economic variable on bond market capitalization in Pakistan, for each scenario a hypothesis was constructed. The independent variables taken in the study were (Inflation rates, Interest rates, Banking Size, Natural Openness, Broad Money (M2), Money Circulation) the dependent variable is Bond Market Capitalization. The results and their findings are as follows. Results With the help of ARIMA model, investigation of secondary data it is found that banking size and money circulation are the primary source among macro-economic indicators that are able to cause a change in the performance of bond market capitalization compared to other four macro-economic indicators i.e. Inflation rates, Interest rates, Natural Openness, Broad Money (M2), it is also found that inflation rates are the second source of causing a change in bond market capitalization. While other variables are i.e. interest rates, natural openness and broad boney (M2) are able to cause a very small change in bond market capitalization. The reason this is that whenever there is excess money is supplied in market people will move out cash and checkable deposits by buying bonds, In Pakistan most of the corporate sector heavily depend on banking sector instead of issuing their own TFCs; the reason for not issuing TFCs by corporate sector is that they have to go through a long process before issuing TFCs and they have to follow certain rule and regulation for issuing TFCs. The statistical interpretations given above show the level of importance of each macro-economic indicator, the acceptance and rejection of result depends upon the significance level i.e. p 0.50 is not acceptable where as p 0.05 is acceptable. Interest rates, inflation rates, broad money (M2), natural openness result point out that they are not able to cause a change in the bond market capitalization due to the reason of no relation among their independent and dependent variables. Where banking size and money in circulation, they cause a change in bond market capitalization (positive/negative impact on bond market capitalization). Conclusion Discussion This paper has argued that the Pakistani bond market has not taken-off and there are many challenges that need to be addressed before it can be put into top gear. Indeed the development of bond market requires hectic efforts which include, corporate sector and banking reforms, the strengthening of legal environment, restore investors confidence, improvement in infrastructure, the extensive process of approving draft, issue costs, competition from other private and public savings schemes, poor understanding and lack of information about the bond market on the part of retail investors and last but not least low volume and limited supply of bond by corporate and government. This paper also finds that the slow development of local bond markets is a phenomenon with multiple proportions. To some extent the problem is one of minimum efficient scale: Pakistan have better capitalized bond markets when capitalization is measured relative to GDP as compared to some other countries. The oth er problem Pakistani bond market is facing to follow the internationally recognized accounting standards has slowed the development of bond markets. Corruption, uncertain poetical conduction, law and order and low bureaucratic quality, which are signs of unreliable securities market regulation, work in the same direction. Countries with competitive, well-capitalized banking systems, on the other hand, have larger bond markets but this is not case in Pakistan. Due to the heavily dependence on banking system and lack of money supply plays a main obstacle for the development bond market in Pakistan. Fortunately, there is little evidence that the small size of public debt markets is an insurmountable obstacle to corporate bond market development. LKhagvajav B., Batnyam D. and Gan-Ochir D. (2008) using the Auto Regression also find that macroeconomic stability (measured by the CPI) and financial intermediary development are important predicators of bond market capitalization determina tion in Mongolia. StanisÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¡aw Kluza, Andrzej SÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¡awiÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¾ski, (2002) Using two set of data to predict the relation between NBP (National Bank of Poland) and bond market capitalization; one on daily bases and other on monthly bases, find in both cases that bond yield is a second order autoregressive process. However, both models significantly predict the role of interest rate for bond market capitalization. Implications Availability of data largely affected the statistical analysis and determination of the relationships among variables affecting the bond market in Pakistan. With the passage of time, it is expected that the data will be available through reliable sources and can be used to improve upon the quality of this study. This limitation is mitigated through the use of published works and qualitative analysis in the study. This research has also certain delimitations. It is expected that after globalization there might be more significant and different policies for the Investment in corporate bonds and Individual investors will also be able to participate in the bond Market. Inaccurate and incomplete information of companys financial position to investors are also one of the main problems. It is also not possible to find data of variables of 50 years and X no of variables. References Ananda Silva 2008, Bond market development: Monetary and Financial system stability IMF (2005), Global Financial Stabilithy Report, World Economic and Financial Surveys, April (Washington D.C.). Barry Eichengreen and Pipat Luengnaruemitchai, 2006, Bond Markets As Conduits for Capital Flows: How Does Asia Compare? IMF Working Paper WP/06/238 (European Department) Cooper, R. 1974. Efficient capital markets and the quantity theory of money. Journal of Finance 29(3): 887-908. 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