Jane Wells: Viva Las Vegas? Keep Watching CityCenter - CNBC
This is the real Dubai World. The leader of Gambling in the world. Those who do not understand Islamic Finance Should not certify. The shariah Scholar who certified Nakheel and its Parent Company Dubai World must answer this.
These Sukuk voilates first principle of Islam i.e. Maqasid Al Sharia. The income or rent Sukuk holders has received is basically from Prohibited Businesses i.e. Haram Activities ( Alcohol, Pork, Gambling, Dancing and Prostitution.). The income and guarantee of income from Haram Sources are Haram. All the income received by Sukuk holder therefore is haram and must be cleaned.
Structures and Contract are two essential things but what is more important is business model which should not voilate Maqasid Al Shariah. Even if the structure and Contract are valid but Business Model voilates Maqasid Al Shariah and indulges into Haram such structures and contracts are void. It is very important that complete value cycle of the product must be shariah compliant. The income from such void contract is Haram.
Tuesday, December 15, 2009
Wednesday, December 9, 2009
Dubai World and Nakheel Sukuk Not Shariah Compliant
Dubai World and Nakheel Sukuk Not Shariah Compliant
Islamic economics and finance is not just name of the few structures but they are system of life where good your deeds and intentions are counted. To have valid contract, structure must have Halal source of income, and its substantial income should not be coming from Haram (Prohibited) income. The product must satisfy Shariah compliance through out the product life cycle and not only the structure. The guarantees must come from Halal sources and rent must also come from Halal sources and not from Haram income.
The product must satisfy following requirement.
o Maqasid al Shariah
o Conditions of contract
Islamic Economic System
Islamic economics is based on the Shariah. The basic objectives are to ensure general human well-being and socio-economic justice.
THE DISTINCTION BETWEEN CONVENTIONAL AND ISLAMIC THEORIES
The Role of Moral Values
While conventional economics generally considers the behavior, tastes and preferences of individuals as given, Islamic economics does not do so. It places great emphasis on individual and social reforms through moral uplift.
The Importance of the Hereafter
The Hereafter is a concept which is completely ignored by conventional economics, but it is one which is greatly emphasized by Islam. Because of their innate goodness, human beings do not always try to serve their self-interest.
MAQASID E SHARIAH- the Objectives of Shari'ah
Maqasid al-Shari'ah that is, the objectives of Shari'ah can be defined as below:
· Maqasid al-Shari'ah comprises those benefits/welfare/advantages for which Allah has revealed His Shari'ah.
· Maqasid al-Shari'ah aims at the attainment of good, welfare, advantage, benefits, etcetera, and warding off evil, injury, loss, etcetera, for the creatures. (All this in Arabic terminology can be stated as Masalih al-'Ibad.)
Shari'ah aims at the welfare of the people in this life and in the life hereafter, and for this purpose it has advised the people to adopt such means and measures suggested by it (Shari'ah) as may result in advantage benefit/well-being to them and may ward off evil/injury/loss, etcetera, from them, not only in this world but also in the world hereafter. Same is the philosophy behind His commands and the worships prescribed for His creatures.
Shari'ah Approves of Good and Forbids Bad:
The main objectives of the Shari‘ah are to ensure that human life is based on ma’rufat (good) and to cleanse it of munkarat (evils). It does not, however, limit itself to an inventory of good and evil deeds; rather, it lays down an entire scheme of life whose aim is to make sure that good flourishes and evils do not destroy or harm human life.
The Shari‘ah shapes Islamic society in a way conducive to the unfettered growth of good, righteousness and truth in every sphere of human activity. At the same time it removes all the impediments along the path of goodness. And it attempts to eradicate corruption from its social scheme by prohibiting evil, by removing the causes of its appearance and growth, by closing the inlets through which it creeps into a society and by adopting deterrent measures to check its occurrence.
Ma’rufat
The Shari‘ah divides ma’rfat into three categories: the mandatory (fard and wajib), the recommendatory (mandub) and the permissible (mubah).
The observance of the mandatory is obligatory on a Muslim society and the Shari‘ah has given clear and binding directions about this. The recommendatory ma’rufat are those which the Shari‘ah expects a Muslim society to observe and practise.
Munkarat
The munkarat (the things prohibited in Islam) have been grouped into two categories: things which have been prohibited absolutely (haram), and things which are simply undesirable (makruh).
Muslims have been enjoined by clear and mandatory injunctions to refrain totally from everything that has been declared haram. As for the makruh, the Shari‘ah signifies its disapproval either expressly or by implication, giving an indication also as to the extent of such disapproval.
Aims of Shari'ah Unchangeable
The aims and objectives of Shari'ah are everlasting and unchangeable. They are set by Allah and their application or interpretation is not left to the sweet will of any person or class.
The Definition Of Gambling ( , )
Every transaction that is based on one party's gain and another's loss, or if the transaction is obscure, is called 'gambling' ( , ) in the terminology of the Sharee'ah. In Arabic, it is referred to as Qimaar and Maysir . Since one party gains and the other loses, it falls under the definition of gambling. Gambling, therefore, can take countless different forms. In every era and every different land gambling is practised in a variety of different ways. A special way of gambling existed among the Arabs. This particular method of gambling has been referred to in the Holy Qur'aan as Maysir and Azlaam .
The Prohibition of Gambling
Islam, the all-embracing religion, not only displayed its just and moderate systems in beliefs and devotion, but also in economics and social orders. This just religion could not tolerate the unjust seizure of another person's wealth (through games of chance) which resulted in crippling the poor even more and strengthening the rich by accumulation of wealth without any effort nor could it tolerate the collection of a large amount from the poor and making it one person's property without any lawful religious reason. Consequently, gambling was declared unlawful.
In the beginning of Islaam when the Holy Prophet sallallahu alayhi wasallam was asked aboutalcohol and gambling, this verse was revealed, They ask thee concerning wine and gambling. Say: In them is a great sin and some benefit for men. The sin is greater than the benefit. (2:219) This verse is indistinct regarding the lawfulness and unlawfulness of wine and gambling. Some high-ranking Sahaabah radhiyallahu anhum understood from this verse that these things are undesirable and detestable. They began abstaining from these things immediately. Generally, the people participated in gambling and wine drinking, since a clear ruling declaring the unlawful and Haraam was not revealed and since there had been no definite decision from the Holy Prophet sallallahu alayhi wasallam . Then this verse of Soorah Maa'idah was revealed, O you who believe! Intoxicants and gambling, (dedication of) stones and arrows are abomination of Shaytaan’s handiwork: Abstain from it so that you may prosper. Shaytaan's plan is (but) to excite enmity and hatred between you, with intoxicants and gambling, and binder you from the remembrance of Allah, and from prayer: Will you not then abstain? (5: 90,91)
Islamic Commercial Law -Legality of Cause, Object and Consideration
The need to respect the precepts of Islam also results in rules concerning the cause (sabab) of the contract, as well as assets that are its objects and the consideration payable in respect of them.
Legality of Cause
The underlying cause must be lawful. A useful definition of cause can be found in the law, the ‘direct purpose aimed at by the contract’. So a contract to buy grapes is invalid if the underlying cause of entering into the transaction is to make wine.
Legality of Object
The object of the contract must be legal (mubah), ie:
- Beneficial; examples of assets which are not beneficial include vermin and animals not useful for hunting;
- Capable of being traded; examples of assets not in this category include public property (a mosque, or assets subject to a waqf), and birds not yet caught;
- Capable of being delivered; an asset not capable of being delivered is a beam in the roof of a house which cannot be removed without harming its structure;
- Lawful; wine, pork, blood and idols are examples of forbidden commodities (most schools prohibit the sale of dogs, apart from hunting dogs).
Legality of Consideration
The consideration must also be legal. For example, one cannot pay for goods with wine.
Prohibited Matters in Business Transactions
So far we have focused on one aspect of the business ethics – guidelines prescribed by Islam for conducting business transactions. Another aspect of business ethics is the various forms of unethical business practices a Muslim businessman must avoid in his business dealings. Some of these prohibited and undesirable business practices are as follows:
Dealing in Prohibited (Haram) Items
Dealing in unlawful items such as carrion (dead meat), pigs and idols is strongly prohibited in Islam. Likewise, trading in pork or intoxicants and sale of idols and statues is not permitted in Islam. A verse of the Holy Qur’an says:
Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which name of other than Allah has been mentioned. (5:1)
The Holy Qur’an also says: O you who believe! Intoxicants and gambling [dedication of] stones and [divination by] arrows are an abomination of Satan’s handiwork: so avoid it in order that you may prosper. (5:90) The Prophet (sws) is also reported to have said; Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs and idols. (Bukhari, No: 2082) The Prophet (sws) also said; If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546)
Sale of Al-Gharar (Uncertainty, Risks, Speculation)
1.1. Arbitrarily Fixing the Prices
1.2. Hoarding of Foodstuff
1.3. Exploitation of one’s Ignorance of Market Conditions
Islamic economics and finance is not just name of the few structures but they are system of life where good your deeds and intentions are counted. To have valid contract, structure must have Halal source of income, and its substantial income should not be coming from Haram (Prohibited) income. The product must satisfy Shariah compliance through out the product life cycle and not only the structure. The guarantees must come from Halal sources and rent must also come from Halal sources and not from Haram income.
The product must satisfy following requirement.
o Maqasid al Shariah
o Conditions of contract
Islamic Economic System
Islamic economics is based on the Shariah. The basic objectives are to ensure general human well-being and socio-economic justice.
THE DISTINCTION BETWEEN CONVENTIONAL AND ISLAMIC THEORIES
The Role of Moral Values
While conventional economics generally considers the behavior, tastes and preferences of individuals as given, Islamic economics does not do so. It places great emphasis on individual and social reforms through moral uplift.
The Importance of the Hereafter
The Hereafter is a concept which is completely ignored by conventional economics, but it is one which is greatly emphasized by Islam. Because of their innate goodness, human beings do not always try to serve their self-interest.
MAQASID E SHARIAH- the Objectives of Shari'ah
Maqasid al-Shari'ah that is, the objectives of Shari'ah can be defined as below:
· Maqasid al-Shari'ah comprises those benefits/welfare/advantages for which Allah has revealed His Shari'ah.
· Maqasid al-Shari'ah aims at the attainment of good, welfare, advantage, benefits, etcetera, and warding off evil, injury, loss, etcetera, for the creatures. (All this in Arabic terminology can be stated as Masalih al-'Ibad.)
Shari'ah aims at the welfare of the people in this life and in the life hereafter, and for this purpose it has advised the people to adopt such means and measures suggested by it (Shari'ah) as may result in advantage benefit/well-being to them and may ward off evil/injury/loss, etcetera, from them, not only in this world but also in the world hereafter. Same is the philosophy behind His commands and the worships prescribed for His creatures.
Shari'ah Approves of Good and Forbids Bad:
The main objectives of the Shari‘ah are to ensure that human life is based on ma’rufat (good) and to cleanse it of munkarat (evils). It does not, however, limit itself to an inventory of good and evil deeds; rather, it lays down an entire scheme of life whose aim is to make sure that good flourishes and evils do not destroy or harm human life.
The Shari‘ah shapes Islamic society in a way conducive to the unfettered growth of good, righteousness and truth in every sphere of human activity. At the same time it removes all the impediments along the path of goodness. And it attempts to eradicate corruption from its social scheme by prohibiting evil, by removing the causes of its appearance and growth, by closing the inlets through which it creeps into a society and by adopting deterrent measures to check its occurrence.
Ma’rufat
The Shari‘ah divides ma’rfat into three categories: the mandatory (fard and wajib), the recommendatory (mandub) and the permissible (mubah).
The observance of the mandatory is obligatory on a Muslim society and the Shari‘ah has given clear and binding directions about this. The recommendatory ma’rufat are those which the Shari‘ah expects a Muslim society to observe and practise.
Munkarat
The munkarat (the things prohibited in Islam) have been grouped into two categories: things which have been prohibited absolutely (haram), and things which are simply undesirable (makruh).
Muslims have been enjoined by clear and mandatory injunctions to refrain totally from everything that has been declared haram. As for the makruh, the Shari‘ah signifies its disapproval either expressly or by implication, giving an indication also as to the extent of such disapproval.
Aims of Shari'ah Unchangeable
The aims and objectives of Shari'ah are everlasting and unchangeable. They are set by Allah and their application or interpretation is not left to the sweet will of any person or class.
The Definition Of Gambling ( , )
Every transaction that is based on one party's gain and another's loss, or if the transaction is obscure, is called 'gambling' ( , ) in the terminology of the Sharee'ah. In Arabic, it is referred to as Qimaar and Maysir . Since one party gains and the other loses, it falls under the definition of gambling. Gambling, therefore, can take countless different forms. In every era and every different land gambling is practised in a variety of different ways. A special way of gambling existed among the Arabs. This particular method of gambling has been referred to in the Holy Qur'aan as Maysir and Azlaam .
The Prohibition of Gambling
Islam, the all-embracing religion, not only displayed its just and moderate systems in beliefs and devotion, but also in economics and social orders. This just religion could not tolerate the unjust seizure of another person's wealth (through games of chance) which resulted in crippling the poor even more and strengthening the rich by accumulation of wealth without any effort nor could it tolerate the collection of a large amount from the poor and making it one person's property without any lawful religious reason. Consequently, gambling was declared unlawful.
In the beginning of Islaam when the Holy Prophet sallallahu alayhi wasallam was asked aboutalcohol and gambling, this verse was revealed, They ask thee concerning wine and gambling. Say: In them is a great sin and some benefit for men. The sin is greater than the benefit. (2:219) This verse is indistinct regarding the lawfulness and unlawfulness of wine and gambling. Some high-ranking Sahaabah radhiyallahu anhum understood from this verse that these things are undesirable and detestable. They began abstaining from these things immediately. Generally, the people participated in gambling and wine drinking, since a clear ruling declaring the unlawful and Haraam was not revealed and since there had been no definite decision from the Holy Prophet sallallahu alayhi wasallam . Then this verse of Soorah Maa'idah was revealed, O you who believe! Intoxicants and gambling, (dedication of) stones and arrows are abomination of Shaytaan’s handiwork: Abstain from it so that you may prosper. Shaytaan's plan is (but) to excite enmity and hatred between you, with intoxicants and gambling, and binder you from the remembrance of Allah, and from prayer: Will you not then abstain? (5: 90,91)
Islamic Commercial Law -Legality of Cause, Object and Consideration
The need to respect the precepts of Islam also results in rules concerning the cause (sabab) of the contract, as well as assets that are its objects and the consideration payable in respect of them.
Legality of Cause
The underlying cause must be lawful. A useful definition of cause can be found in the law, the ‘direct purpose aimed at by the contract’. So a contract to buy grapes is invalid if the underlying cause of entering into the transaction is to make wine.
Legality of Object
The object of the contract must be legal (mubah), ie:
- Beneficial; examples of assets which are not beneficial include vermin and animals not useful for hunting;
- Capable of being traded; examples of assets not in this category include public property (a mosque, or assets subject to a waqf), and birds not yet caught;
- Capable of being delivered; an asset not capable of being delivered is a beam in the roof of a house which cannot be removed without harming its structure;
- Lawful; wine, pork, blood and idols are examples of forbidden commodities (most schools prohibit the sale of dogs, apart from hunting dogs).
Legality of Consideration
The consideration must also be legal. For example, one cannot pay for goods with wine.
Prohibited Matters in Business Transactions
So far we have focused on one aspect of the business ethics – guidelines prescribed by Islam for conducting business transactions. Another aspect of business ethics is the various forms of unethical business practices a Muslim businessman must avoid in his business dealings. Some of these prohibited and undesirable business practices are as follows:
Dealing in Prohibited (Haram) Items
Dealing in unlawful items such as carrion (dead meat), pigs and idols is strongly prohibited in Islam. Likewise, trading in pork or intoxicants and sale of idols and statues is not permitted in Islam. A verse of the Holy Qur’an says:
Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which name of other than Allah has been mentioned. (5:1)
The Holy Qur’an also says: O you who believe! Intoxicants and gambling [dedication of] stones and [divination by] arrows are an abomination of Satan’s handiwork: so avoid it in order that you may prosper. (5:90) The Prophet (sws) is also reported to have said; Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs and idols. (Bukhari, No: 2082) The Prophet (sws) also said; If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546)
Sale of Al-Gharar (Uncertainty, Risks, Speculation)
1.1. Arbitrarily Fixing the Prices
1.2. Hoarding of Foodstuff
1.3. Exploitation of one’s Ignorance of Market Conditions
Dubai World Sukuk and Nakheel Sukuk
The company which has its substantial income coming from Casino’s, Alcohol, and Prostitution can issue sukuk and guarantee it. Where whole company philosophy and business model is based on Haram income can issue Shariah compliant product. In this situation not only the issuer but also Shariah Scholars are at fault.
“Dubai world Sukuk and Nakheel Sukuk are not Shariah Compliant and Islamic”
Just by saying Sukuk and Structuring it like Sukuk, it can not become Shariah Compliant. The Shariah Scholars who certified it are answerable Here and Hereafter for promoting Haram in the name of Halal.
The company which has its substantial income coming from Casino’s, Alcohol, and Prostitution can issue sukuk and guarantee it. Where whole company philosophy and business model is based on Haram income can issue Shariah compliant product. In this situation not only the issuer but also Shariah Scholars are at fault.
“Dubai world Sukuk and Nakheel Sukuk are not Shariah Compliant and Islamic”
Just by saying Sukuk and Structuring it like Sukuk, it can not become Shariah Compliant. The Shariah Scholars who certified it are answerable Here and Hereafter for promoting Haram in the name of Halal.
Thursday, December 3, 2009
Why Dubai Failed
Why Dubai Failed
Many people may have given many reasons for failure of Dubai. Dubai was glaring example of flourishing economy and success. This story is deceptive. The success is build on very shaky foundation, basically there are no foundations there and any structures built without foundations is going to collapse one day or other. Dubai builds whole business on Haram element – (Prohibited) by Allah for which failure in both the worlds are clearly mentioned.
These reasons are as below.
1. Interest based financing – high leveraged financing.
2. Economy based on gambling and Haram trade
3. Tourism – serving of alcohol and drugs
4. Dancing, music, night club and prostitution
5. Trade in Haram Food
(Income from Haram source is Haram)
The Punishment for Dealing with Riba (Interest and Usury)
“Those who devour usury will not stand except as stand one whom the Evil one by his touch hath driven to madness. That is because they say: “Trade is like usury,” but God hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for God (to judge); but those who repeat (the offence) are companions of the Fire: They will abide therein (for ever).”
- Quran Verse 2:275 (Chapter Al-Baqara)
To understand the wisdom behind such prohibition we need to be first aware of 2 key Islamic principles on wealth-creation.
1. Islam permits increase in capital through trade and, at the same time, it blocks the way for anyone who tries to increase his capital through lending on interest (riba) - whether it is at a low or a high rate.
Allah Almighty says : “O you who believe, do not consume your property among yourselves wrongfully, but let there be trade by mutual consent…?
- Quran verse 4:29 (Chapter An-Nisa)
I would also like to point to another prohibited means of earning - ‘gharar’ (transactions based on speculation/gambling).
The Hadith of Prophet says:
Do not buy fish in the sea, for it is gharar. (Ibn Hanbal)
Buying ‘fish in the sea,’ or alternatively, ‘what is in the womb’ highlights the speculative nature of the transaction.
2. ‘Gharar’ (speculation/gambling) violates the principle that all parties have both complete knowledge and access to the product before the transaction.
In summary, Quran forbids both risk-less gain, as in the case of Riba (Usury), and transactions based entirely on risk, as in ‘Gharar’ (Speculation/Gambling). Islamic Shari’a encourages Muslims to be “risk neutral” and earn profit through neither seeking speculative gain nor hoping to lock down all risk with fixed returns.
Ibn Majah recorded that Abu Hurayrah said that the Messenger of Allah said,
(Riba is seventy types, the least of which is equal to one having sexual intercourse with his mother.)
Continuing on the subject of prohibiting the means that lead to the unlawful, there is a Hadith that Ahmad recorded in which `A'ishah said, "When the Ayat in Surat Al-Baqarah about Riba were revealed, the Messenger of Allah went out to the Masjid and recited them and also prohibited trading in alcohol.'' The Six collections recorded this Hadith, with the exception of At-Tirmidhi. The Two Sahihs recorded that the Messenger of Allah said,
`Ali and Ibn Mas`ud narrated that the Messenger of Allah said,
(May Allah curse whoever consumes Riba, whoever pays Riba, the two who are witnesses to it, and the scribe who records it.)
(276. Allah will destroy Riba and will give increase for Sadaqat. And Allah likes not the disbelievers, sinners.) (277. Truly, those who believe, and do deeds of righteousness, and perform the Salah and give Zakah, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.)
Allah Does Not Bless Riba
Allah states that He destroys Riba, either by removing this money from those who eat it, or by depriving them of the blessing, and thus the benefit of their money. Because of their Riba, Allah will torment them in this life and punish them for it on the Day of Resurrection. Allah said,
(Say: "Not equal are Al-Khabith (evil things) and At-Tayyib (good things), even though the abundance of Al-Khabith may please you'') ﴿5:100
Ibn Jarir said that Allah's statement, (Allah will destroy Riba) is similar to the statement reported of `Abdullah bin Mas`ud, "Riba will end up with less, even if it was substantial.'' Imam Ahmad recorded a similar statement in Al-Musnad.
Giving Short Measures
The community of the Prophet Shu‘ayb (sws) was known for practicing it with impunity. Consequently, they were destroyed for their persistence in deceit and disbelief in Allah and His Messenger. Allah the Almighty has repeatedly commanded exactitude in weights and measures. One of the verses says: And give full measure when you measure, and weigh with a just balance. That is good and better in the end. (17:35)
So the earthquake seized them and they lay (dead), prostrate in their homes. Those who belied Shu 'aib, became as if they had never dwelt there (in their homes). Those who belied Shu aib, they were the losers.
Then he (Shu 'aib) turned from them and said: "0 my people! I have indeed conveyed my Lord's Messages unto you and I have given you good advice. Then how can I sorrow for the disbelieving people's (destruction)." Surah 7: 91-93
The Prohibition of Gambling
[The Quran 5:90] O you who believe, intoxicants, and gambling, and the altars of idols, and the games of chance are abominations of the devil; you shall avoid them that you may succeed.
Dealing in Prohibited (Haram) Items
Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which name of other than Allah has been mentioned. (5:1)
The Prophet (sws) is also reported to have said; Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs and idols. (Bukhari, No: 2082) The Prophet (sws) also said; If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546)
"They ask thee concerning wine and gambling. Say, 'In them is great sin and some benefit for men; but the sin is greater than the benefit."
(Qur'aan 2:19)
FROM THE HADITH
• On the authority of Abu Huraira (may Allah be pleased with him), who said: The Messenger of Allah said: “Allah the Almighty is good and accepts only that which is good. Allah has commanded the Faithful to do that which He commanded the Messengers, and the Almighty has said: “O ye Messengers! Eat of the good things, and do right..” (Quran 23:51). And Allah the Almighty has said: “O ye who believe! Eat of the good things wherewith We have provided you..” (2:172). Then he mentioned [the case of] a man who, having journeyed far, is disheveled and dusty and who spreads out his hands to the sky [saying]: O Lord! O Lord!-while his food is unlawful, his drink is unlawful, his clothing unlawful, and he is nourished unlawfully, so how can he be answered!” (Muslim).
Zinna - Prostitution
Islam has prohibited certain professions and industries to its followers because they are harmful to the beliefs, morals, honor, or good manners of the society.
Prostitution: Prostitution, for example, is legal in many countries of the West; permits and licenses are issued to those who ply this trade, and prostitutes enjoy rights similar to other professionals. Islam absolutely rejects and condemns this practice, and forbids any female, free or slave, to earn money by selling her sexuality.
Dancing and Other Erotic Arts: Similarly, Islam does not permit sexually exciting dancing or any other erotic activity, such as suggestive or obscene songs, provocative dramas, and every type of rubbish which some people today term "art" and "progress."
The fact is that Islam prohibits every sort of sexual contact and sexual relationship outside marriage. This is the secret behind the significant words of the Qur'an prohibiting fornication and adultery (both of which are known as zina in Arabic). And do not come near zina; indeed, it is an abomination and an evil way. (17:32) This indicates that not only is zina forbidden, but likewise anything which brings one near to it. Everything to which we have referred above, as people are well aware, for example, provocative dances and songs, constitutes "coming near zina;" these things are certainly intended to tempt, excite, and lead one toward such sin. And what havoc they wreak in the lives of people!
Manufacturing Intoxicants and Drugs: Earlier we saw that Islam prohibits any participation in the promotion of alcoholic beverages, whether it be in their manufacture, distribution, or consumption, and that anyone who participates in any of these is cursed by the Messenger of Allah (peace be on him). The case of other intoxicants and drugs, such as hashish, cocaine, and the like, is the same; manufacturing, distributing, or consuming any of them is haram. In short, Islam prohibits the Muslim to work in any industry, business or profession which deals in, or promotes, anything which is haram.
Any economy based on Haram can’t succeed.
Definition of best human according to Islam –The meaning of the Quran - 49:13 “O mankind! We created you from a single (pair) of a male and a female, and made you into nations and tribes, that ye may know each other (not that ye may despise (each other). Verily the most honored of you in the sight of Allah is (he who is) the most righteous of you. And Allah has full knowledge and is well acquainted (with all things).”
Sura: 69. Al-Haqqah
(69:5) Then the Thamud were destroyed by an awesome upheaval;
(69:6) and the Ad were destroyed by a furiously raging wind-storm
(69:18) That will be the Day when you shall be brought forth (before Allah) and no secret of yours shall remain hidden.
(69:19) On that Day, he whose Record is given to him in his right hand *12 will say: “Lo! Read my Record! *13
*12 The record's being given in the right hand will by itself show that the concerned person's account is clear and settled and he is appearing in the Divine Court as a righteous man and not as a culprit. It is probable that at the time the records are distributed the righteous man himself will extend his right hand forward to receive his record. For on account of the good treatment that he would have received right from the moment of death till his appearance in the Plain of Assembly at Resurrection, would have given him the satisfaction that he was there to be blessed and not to be punished. At many a place in the Qur'an it has been explicitly stated that right at death itself it becomes clear to every man whether he is entering the next World in a blessed or wretched state. Then from the moment of death till Resurrection the righteous man is treated like a guest and the evil man as a culprit under custody. After this, froth the time the second life starts on the Day. of Resurrection, the condition and state of the righteous is entirely different from the condition and state of the disbelievers, hypocrites and culprits.
*13 That is, he will be overjoyed as soon as he receives his record and will show it to his companions. In Surah Al-lnshiqaq: 9, it has been said "He will return to his kinsfolk rejoicing."
(69:20) Verily I was sure that I would be handed over my account.” *14
*14 That is, ". He was fortunate because he had been conscious of the Hereafter in the world and had lived his life with the belief that he would have to appear before God one day and render his account to Him.
(69:25) As for him whose Record will be given to him in his left hand, he will exclaim: “Would that I had never been given my Record,
(69:26) and had not known my account.
(69:35) today he has been left here friendless;
(69:36) and has no food except the filth from the washing of wounds,
(69:37) which only the sinners will eat.”
Allah Has Destroyed People Who Involved in Haram ( Prohibited)
(7:4) How many a township We have destroyed! Our scourge fell upon them at night, or when they were taking midday rest.
(7:5) And when Our scourge fell upon them their only cry was: 'We are indeed transgressors.' *5
*5. People can learn a lesson from the tragic fate of those nations that spurned God's Guidance, and instead followed the guidance of others; and they became so degenerate that their very existence became an intolerable burden on the earth. Eventually, God's scourge seized them. and the earth was cleansed of their filthy existence.
(7:10) We assuredly established you in the earth and arranged for your livelihood in it. Little do you give thanks.
A morsel of Halaal food
Eating haraam gives rise to every type of infamy. Whereas, the halaal morsel is the cause of every kind of goodness and charity. Numerous traditions praise the acquisition of livelihood through lawful means. For example the Holy Prophet (s.a.w.s.) says, "Worship consists of seventy parts and the best part is earnings by lawful means." (Safinatul Behaar) The Messenger of Allah has also said, "When a man eats halaal food an angel stands over his head and prays for his forgiveness till he finishes eating." (Safinatul Behaar) The Prophet has remarked in a similar vein, "One who strives to earn his livelihood in a lawful manner from morning till night, achieves salvation." (Safinatul Behaar) The Holy Prophet (s.a.w.s.) states that Allah has said:
"I will not care on the Day of Qiyamat from which door he enters Hell, the person who does not care from which door he earns money in this world." (Behaarul Anwaar) The Prophet of Allah (s.a.w.s.) has also mentioned the following tradition: "One who does nor care from which way he earns wealth in this world will be sent to Hell in Qiyamat and I shall not care from which way he is made to enter it." (Behaarul Anwaar)
(Surah Nisa 4:2) It should not be that in a hurry to obtain livelihood you obtain it through illegal ways, before Allah provides you with the halaal sustenance that He had decreed for you."
Many people may have given many reasons for failure of Dubai. Dubai was glaring example of flourishing economy and success. This story is deceptive. The success is build on very shaky foundation, basically there are no foundations there and any structures built without foundations is going to collapse one day or other. Dubai builds whole business on Haram element – (Prohibited) by Allah for which failure in both the worlds are clearly mentioned.
These reasons are as below.
1. Interest based financing – high leveraged financing.
2. Economy based on gambling and Haram trade
3. Tourism – serving of alcohol and drugs
4. Dancing, music, night club and prostitution
5. Trade in Haram Food
(Income from Haram source is Haram)
The Punishment for Dealing with Riba (Interest and Usury)
“Those who devour usury will not stand except as stand one whom the Evil one by his touch hath driven to madness. That is because they say: “Trade is like usury,” but God hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for God (to judge); but those who repeat (the offence) are companions of the Fire: They will abide therein (for ever).”
- Quran Verse 2:275 (Chapter Al-Baqara)
To understand the wisdom behind such prohibition we need to be first aware of 2 key Islamic principles on wealth-creation.
1. Islam permits increase in capital through trade and, at the same time, it blocks the way for anyone who tries to increase his capital through lending on interest (riba) - whether it is at a low or a high rate.
Allah Almighty says : “O you who believe, do not consume your property among yourselves wrongfully, but let there be trade by mutual consent…?
- Quran verse 4:29 (Chapter An-Nisa)
I would also like to point to another prohibited means of earning - ‘gharar’ (transactions based on speculation/gambling).
The Hadith of Prophet says:
Do not buy fish in the sea, for it is gharar. (Ibn Hanbal)
Buying ‘fish in the sea,’ or alternatively, ‘what is in the womb’ highlights the speculative nature of the transaction.
2. ‘Gharar’ (speculation/gambling) violates the principle that all parties have both complete knowledge and access to the product before the transaction.
In summary, Quran forbids both risk-less gain, as in the case of Riba (Usury), and transactions based entirely on risk, as in ‘Gharar’ (Speculation/Gambling). Islamic Shari’a encourages Muslims to be “risk neutral” and earn profit through neither seeking speculative gain nor hoping to lock down all risk with fixed returns.
Ibn Majah recorded that Abu Hurayrah said that the Messenger of Allah said,
(Riba is seventy types, the least of which is equal to one having sexual intercourse with his mother.)
Continuing on the subject of prohibiting the means that lead to the unlawful, there is a Hadith that Ahmad recorded in which `A'ishah said, "When the Ayat in Surat Al-Baqarah about Riba were revealed, the Messenger of Allah went out to the Masjid and recited them and also prohibited trading in alcohol.'' The Six collections recorded this Hadith, with the exception of At-Tirmidhi. The Two Sahihs recorded that the Messenger of Allah said,
`Ali and Ibn Mas`ud narrated that the Messenger of Allah said,
(May Allah curse whoever consumes Riba, whoever pays Riba, the two who are witnesses to it, and the scribe who records it.)
(276. Allah will destroy Riba and will give increase for Sadaqat. And Allah likes not the disbelievers, sinners.) (277. Truly, those who believe, and do deeds of righteousness, and perform the Salah and give Zakah, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.)
Allah Does Not Bless Riba
Allah states that He destroys Riba, either by removing this money from those who eat it, or by depriving them of the blessing, and thus the benefit of their money. Because of their Riba, Allah will torment them in this life and punish them for it on the Day of Resurrection. Allah said,
(Say: "Not equal are Al-Khabith (evil things) and At-Tayyib (good things), even though the abundance of Al-Khabith may please you'') ﴿5:100
Ibn Jarir said that Allah's statement, (Allah will destroy Riba) is similar to the statement reported of `Abdullah bin Mas`ud, "Riba will end up with less, even if it was substantial.'' Imam Ahmad recorded a similar statement in Al-Musnad.
Giving Short Measures
The community of the Prophet Shu‘ayb (sws) was known for practicing it with impunity. Consequently, they were destroyed for their persistence in deceit and disbelief in Allah and His Messenger. Allah the Almighty has repeatedly commanded exactitude in weights and measures. One of the verses says: And give full measure when you measure, and weigh with a just balance. That is good and better in the end. (17:35)
So the earthquake seized them and they lay (dead), prostrate in their homes. Those who belied Shu 'aib, became as if they had never dwelt there (in their homes). Those who belied Shu aib, they were the losers.
Then he (Shu 'aib) turned from them and said: "0 my people! I have indeed conveyed my Lord's Messages unto you and I have given you good advice. Then how can I sorrow for the disbelieving people's (destruction)." Surah 7: 91-93
The Prohibition of Gambling
[The Quran 5:90] O you who believe, intoxicants, and gambling, and the altars of idols, and the games of chance are abominations of the devil; you shall avoid them that you may succeed.
Dealing in Prohibited (Haram) Items
Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which name of other than Allah has been mentioned. (5:1)
The Prophet (sws) is also reported to have said; Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs and idols. (Bukhari, No: 2082) The Prophet (sws) also said; If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546)
"They ask thee concerning wine and gambling. Say, 'In them is great sin and some benefit for men; but the sin is greater than the benefit."
(Qur'aan 2:19)
FROM THE HADITH
• On the authority of Abu Huraira (may Allah be pleased with him), who said: The Messenger of Allah said: “Allah the Almighty is good and accepts only that which is good. Allah has commanded the Faithful to do that which He commanded the Messengers, and the Almighty has said: “O ye Messengers! Eat of the good things, and do right..” (Quran 23:51). And Allah the Almighty has said: “O ye who believe! Eat of the good things wherewith We have provided you..” (2:172). Then he mentioned [the case of] a man who, having journeyed far, is disheveled and dusty and who spreads out his hands to the sky [saying]: O Lord! O Lord!-while his food is unlawful, his drink is unlawful, his clothing unlawful, and he is nourished unlawfully, so how can he be answered!” (Muslim).
Zinna - Prostitution
Islam has prohibited certain professions and industries to its followers because they are harmful to the beliefs, morals, honor, or good manners of the society.
Prostitution: Prostitution, for example, is legal in many countries of the West; permits and licenses are issued to those who ply this trade, and prostitutes enjoy rights similar to other professionals. Islam absolutely rejects and condemns this practice, and forbids any female, free or slave, to earn money by selling her sexuality.
Dancing and Other Erotic Arts: Similarly, Islam does not permit sexually exciting dancing or any other erotic activity, such as suggestive or obscene songs, provocative dramas, and every type of rubbish which some people today term "art" and "progress."
The fact is that Islam prohibits every sort of sexual contact and sexual relationship outside marriage. This is the secret behind the significant words of the Qur'an prohibiting fornication and adultery (both of which are known as zina in Arabic). And do not come near zina; indeed, it is an abomination and an evil way. (17:32) This indicates that not only is zina forbidden, but likewise anything which brings one near to it. Everything to which we have referred above, as people are well aware, for example, provocative dances and songs, constitutes "coming near zina;" these things are certainly intended to tempt, excite, and lead one toward such sin. And what havoc they wreak in the lives of people!
Manufacturing Intoxicants and Drugs: Earlier we saw that Islam prohibits any participation in the promotion of alcoholic beverages, whether it be in their manufacture, distribution, or consumption, and that anyone who participates in any of these is cursed by the Messenger of Allah (peace be on him). The case of other intoxicants and drugs, such as hashish, cocaine, and the like, is the same; manufacturing, distributing, or consuming any of them is haram. In short, Islam prohibits the Muslim to work in any industry, business or profession which deals in, or promotes, anything which is haram.
Any economy based on Haram can’t succeed.
Definition of best human according to Islam –The meaning of the Quran - 49:13 “O mankind! We created you from a single (pair) of a male and a female, and made you into nations and tribes, that ye may know each other (not that ye may despise (each other). Verily the most honored of you in the sight of Allah is (he who is) the most righteous of you. And Allah has full knowledge and is well acquainted (with all things).”
Sura: 69. Al-Haqqah
(69:5) Then the Thamud were destroyed by an awesome upheaval;
(69:6) and the Ad were destroyed by a furiously raging wind-storm
(69:18) That will be the Day when you shall be brought forth (before Allah) and no secret of yours shall remain hidden.
(69:19) On that Day, he whose Record is given to him in his right hand *12 will say: “Lo! Read my Record! *13
*12 The record's being given in the right hand will by itself show that the concerned person's account is clear and settled and he is appearing in the Divine Court as a righteous man and not as a culprit. It is probable that at the time the records are distributed the righteous man himself will extend his right hand forward to receive his record. For on account of the good treatment that he would have received right from the moment of death till his appearance in the Plain of Assembly at Resurrection, would have given him the satisfaction that he was there to be blessed and not to be punished. At many a place in the Qur'an it has been explicitly stated that right at death itself it becomes clear to every man whether he is entering the next World in a blessed or wretched state. Then from the moment of death till Resurrection the righteous man is treated like a guest and the evil man as a culprit under custody. After this, froth the time the second life starts on the Day. of Resurrection, the condition and state of the righteous is entirely different from the condition and state of the disbelievers, hypocrites and culprits.
*13 That is, he will be overjoyed as soon as he receives his record and will show it to his companions. In Surah Al-lnshiqaq: 9, it has been said "He will return to his kinsfolk rejoicing."
(69:20) Verily I was sure that I would be handed over my account.” *14
*14 That is, ". He was fortunate because he had been conscious of the Hereafter in the world and had lived his life with the belief that he would have to appear before God one day and render his account to Him.
(69:25) As for him whose Record will be given to him in his left hand, he will exclaim: “Would that I had never been given my Record,
(69:26) and had not known my account.
(69:35) today he has been left here friendless;
(69:36) and has no food except the filth from the washing of wounds,
(69:37) which only the sinners will eat.”
Allah Has Destroyed People Who Involved in Haram ( Prohibited)
(7:4) How many a township We have destroyed! Our scourge fell upon them at night, or when they were taking midday rest.
(7:5) And when Our scourge fell upon them their only cry was: 'We are indeed transgressors.' *5
*5. People can learn a lesson from the tragic fate of those nations that spurned God's Guidance, and instead followed the guidance of others; and they became so degenerate that their very existence became an intolerable burden on the earth. Eventually, God's scourge seized them. and the earth was cleansed of their filthy existence.
(7:10) We assuredly established you in the earth and arranged for your livelihood in it. Little do you give thanks.
A morsel of Halaal food
Eating haraam gives rise to every type of infamy. Whereas, the halaal morsel is the cause of every kind of goodness and charity. Numerous traditions praise the acquisition of livelihood through lawful means. For example the Holy Prophet (s.a.w.s.) says, "Worship consists of seventy parts and the best part is earnings by lawful means." (Safinatul Behaar) The Messenger of Allah has also said, "When a man eats halaal food an angel stands over his head and prays for his forgiveness till he finishes eating." (Safinatul Behaar) The Prophet has remarked in a similar vein, "One who strives to earn his livelihood in a lawful manner from morning till night, achieves salvation." (Safinatul Behaar) The Holy Prophet (s.a.w.s.) states that Allah has said:
"I will not care on the Day of Qiyamat from which door he enters Hell, the person who does not care from which door he earns money in this world." (Behaarul Anwaar) The Prophet of Allah (s.a.w.s.) has also mentioned the following tradition: "One who does nor care from which way he earns wealth in this world will be sent to Hell in Qiyamat and I shall not care from which way he is made to enter it." (Behaarul Anwaar)
(Surah Nisa 4:2) It should not be that in a hurry to obtain livelihood you obtain it through illegal ways, before Allah provides you with the halaal sustenance that He had decreed for you."
Wednesday, November 18, 2009
Hunger - Reasons and Remedies - I
Can Hunger be managed by symbolic fast and hunger conference of FAO
What are the causes of hunger? The first and fore most reason given by the FAO is the non availability of enough food and resources for the poor. I do not agree with it. There are more than enough resources available but they out of reach of the poor. They are concentrated in very few hands globally.
· Half the world — nearly three billion people — live on less than two dollars a day.
· The GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries (567 million people) is less than the wealth of the world’s 7 richest people combined.
· Nearly a billion people entered the 21st century unable to read a book or sign their names.
· Less than one per cent of what the world spent every year on weapons was needed to put every child into school by the year 2000 and yet it didn’t happen.
· 1 billion children live in poverty (1 in 2 children in the world). 640 million live without adequate shelter, 400 million have no access to safe water, 270 million have no access to health services. 10.6 million died in 2003 before they reached the age of 5 (or roughly 29,000 children per day).
Not enough resources?
Is this the real issue?
I do not think that this is issue?
Exploitation –is the single most important cause of Hunger. There are different types of exploitations- Economic System, Political System, Social System
The present system is at the core of the poverty. This system works towards concentration of wealth in few hands. The present financial system has benefitted few individuals at the cost of putting vast majority in pool of hunger. The present financial crisis has wiped out 38 trillion US dollar of wealth from economy. The biggest question now, do we really need a system which is played like casinos. These are called derivatives officially (gambling product which is legally allowed in system). Presently there are more 600 trillion US dollar derivatives contract exists which is 10 times bigger than size of global economy.
This exploitation is basically failure of multilateral institutions UN, IMF and World Bank. They are suppose to promote peace, justice and equality in the world. They remained mute witness of the exploitation are became the instrument of exploitation.
The only solution “Change Has Arrived”, Change the system, only changing color will not work; there is immediate necessity to change the complete system, “In and Out”.
Acute causes of poverty:
Warfare: The material and human destruction caused by warfare is a major development problem. For example, from 1990 to 1993, the period encompassing Desert Storm, per capita GDP in Iraq fell from $3500 to $761. The drop in average income, while a striking representation of the drop in the well-being of the average Iraqi citizen in the aftermath of the war, fails to capture the broader affects of damages to the infrastructure and social services, such as health care and access to clean water.
Colonial Histories: One of the most important barriers to development in poor countries is lack of uniform, basic infrastructure, such as roads and means of communication. Some development scholars have identified colonial history as an important contributor to the current situation. In most countries with a history of colonization, the colonizers developed local economies to facilitate the expropriation of resources for their own economic growth and development.
Centralization of Power: In many developing countries, political power is disproportionately centralized. Instead of having a network of political representatives distributed equally throughout society, in centralized systems of governance one major party, politician, or region is responsible for decision-making throughout the country. This often causes development problems. For example, in these situations politicians make decisions about places that they are unfamiliar with, lacking sufficient knowledge about the context to design effective and appropriate policies and programs.
Corruption: Corruption often accompanies centralization of power, when leaders are not accountable to those they serve. Most directly, corruption inhibits development when leaders help themselves to money that would otherwise be used for development projects. In other cases, leaders reward political support by providing services to their followers.
Social Inequality: One of the more entrenched sources of poverty throughout the world is social inequality that stems from cultural ideas about the relative worth of different genders, races, ethnic groups, and social classes. Ascribed inequality works by placing individuals in different social categories at birth, often based on religious, ethnic, or 'racial' characteristics. In South African history, apartheid laws defined a binary caste system that assigned different rights (or lack thereof) and social spaces to Whites and Blacks, using skin color to automatically determine the opportunities available to individuals in each group.
Debt is an efficient tool. It ensures access to other peoples’ raw materials and infrastructure on the cheapest possible terms. Dozens of countries must compete for shrinking export markets and can export only a limited range of products because of Northern protectionism and their lack of cash to invest in diversification. Market saturation ensues, reducing exporters’ income to a bare minimum while the North enjoys huge savings. The IMF cannot seem to understand that investing in … [a] healthy, well-fed, literate population … is the most intelligent economic choice a country can make.
Many developing nations are in debt and poverty partly due to the policies of international institutions such as the International Monetary Fund (IMF) and the World Bank.
Their programs have been heavily criticized for many years for resulting in poverty. In addition, for developing or third world countries, there has been an increased dependency on the richer nations. This is despite the IMF and World Bank’s claim that they will reduce poverty.
When IMF donors keep the exchange rates in their favour, it often means that the poor nations remain poor, or get even poorer. Even the 1997/98/99 global financial crisis can be partly blamed on structural adjustment and early, overly aggressive deregulation for emerging economies.
This is one of the backbones to today’s so-called “free” trade. In this form, as a result, it is seen by some as unfair and one-way, or extraction list. It also serves to maintain unequal free trade as pointed out by J.W. Smith.
Resources available on Earth for All Human
Earth
Earth is the third planet from the Sun and takes 23 hours, 56 minutes to spin on its axis one time.
Size: Earth has a diameter of 7,926 miles (12,756 kilometers).The planet Earth is a planet of oceans. The total area of the Earth is approximately 510 million square kilometers and the oceans cover about 71 percent of the Earth's surface, which is about 360 million square kilometers.
There are a total of 5 oceans, and they are the Arctic, Pacific, Atlantic, Indian, and the Antarctic Ocean. Out of these five, there are three major oceans, the Atlantic, Pacific, and the Indian Ocean. They account for 90 percent of the area covered by oceans. The Pacific Ocean is the largest of oceans, its area is 181 million square kilometers, which covers nearly a third of the Earth's surface. The Atlantic Ocean is the second largest, covering 94 million square kilometers, and the Indian Ocean is the third largest, covering about 74 million square kilometers.
The oceans' tremendous presence causes it to have a huge effect on the planet and our civilization. It is greatly responsible for the climate of the Earth. It regulates air temperature and supplies moisture for rainfall. The ocean also provides us with food, energy, minerals, and a cheap method of transportation. Without the oceans, the Earth wouldn't be able to sustain life.
Surface: From space, Earth looks like the blue water world it is. About 70 percent of Earth's surface is covered with water, and 97 percent of all that water is in the salty oceans. Only 3 percent of Earth's water is freshwater — the water we drink.Earth is covered with mountains, volcanoes, lakes, rivers, and oceans. Most of the surface material is made of rocks — high in silica, iron, and magnesium.
Forest
Forests cover about a quarter of the world's land surface, excluding Greenland and Antarctica.
· The Amazon Rainforest covers over a billion acres, encompassing areas in Brazil, Venezuela, Colombia and the Eastern Andean region of Ecuador and Peru.
· More than half of the world's estimated 10 million species of plants, animals and insects live in the tropical rainforests. One-fifth of the world's fresh water is in the Amazon Basin.
· One hectare (2.47 acres) may contain over 750 types of trees and 1500 species of higher plants.
· At least 80% of the developed world's diet originated in the tropical rainforest. Its bountiful gifts to the world include fruits like avocados, coconuts, figs, oranges, lemons, grapefruit, bananas, guavas, pineapples, mangos and tomatoes; vegetables including corn, potatoes, rice, winter squash and yams; spices like black pepper, cayenne, chocolate, cinnamon, cloves, ginger, sugar cane, tumeric, coffee and vanilla and nuts including Brazil nuts and cashews.
· At least 3000 fruits are found in the rainforests; of these only 200 are now in use in the Western World. The Indians of the rainforest use over 2,000.
· Rainforest plants are rich in secondary metabolites, particularly alkaloids. Biochemists believe alkaloids protect plants from disease and insect attacks. Many alkaloids from higher plants have proven to be of medicinal value and benefit.
· Experts agree that by leaving the rainforests intact and harvesting it's many nuts, fruits, oil-producing plants, and medicinal plants, the rainforest has more economic value than if they were cut down to make grazing land for cattle or for timber.
· The latest statistics show that rainforest land converted to cattle operations yields the land owner $60 per acre and if timber is harvested, the land is worth $400 per acre. However, if these renewable and sustainable resources are harvested, the land will yield the land owner $2,400 per acre.
· If managed properly, the rainforest can provide the world's need for these natural resources on a perpetual basis.
Food from the Sea: Oceans cover nearly 75% of the earth's surface.
Although a large percentage of the aquatic plants and animals that eventually become human food are either captured by fishers or produced by mariculturists in the world's oceans, a significant amount also comes from fresh water. The term "seafood" commonly is used to describe aquatic plants and animals consumed by humans, regardless of source. Fisheries and aquaculture produce roughly 140 million tons of plants and animals annually. Included are finfish, mollusks (including octopus and squid), crustaceans , seaweeds, reptiles, and marine mammals: the first four categories make up the bulk of the human food that comes from the waters of the world.
Global production of farmed aquatic animals and plants in 2003 reached 55 million mt with an on-farm value of US$ 67 billion. As per statistics, aquaculture currently accounts for nearly 22% of total world catch including species used to produce fish meal and fish oil. It is continuously growing from 1987 and the production increased by 148%. Fisheries sector provides an overall 17% of the world’s animal protein intake to which the Asian countries contribute around 26%. The world per capita fish consumption is about 12 kg per year, 8 kg for developing countries and 25 kg for developed countries. The per capita fish consumption for India is even less than 8 kg per year. Thus, there is a need to increase per capita fish consumption level by increasing fish production. There is a need to exploit the food from sea as a security against under nutrition and malnutrition as sea has ample scope for continuous supply of protein rich food for socioeconomic upliftment. India has a vast coastline and seas to ensure food security through its fisheries and aquaculture policies and related S&T measures.
This seaweed plantation in Bali, Indonesia illustrates the role of Mari culture (marine aquaculture) in meeting human food demands. Global seaweed production exceeds 10 million metric tons annually.
With respect to finfish, the herring, sardine, and anchovy group is used primarily for the manufacture of fish meal. The cod, hake, and haddock group is commonly sold as fish fillets and fish sticks. Those fishes are also used to make artificial crab, shrimp, and other products that mimic more expensive seafoods.
Production of carp and closely related fresh-water species approaches that of the herring group. The vast majority of the carp produced in the world are products of China's aquaculture activity. China began culturing carp, according to some estimates, as long ago as 4,000 years. Carp continue to be very important in the diets of most people in China. Carp are also produced in significant numbers in parts of Europe, the Middle East, India, and a few other locations.
Clams and oysters dominate the mollusk category, followed by scallops, mussels, and abalone. Total mollusk production exceeds 15 million metric tons annually.
Inequality of World Food Consumption
World Food Consumption Map shows a world map where the countries of the world have been shown using different colors according to the daily food consumption in that part of the world.
The countries with the maximum food intake i.e. 3,500 calories per person are United States of America, Portugal, France, Turkey etc. Canada, Mexico, Argentina, Australia, Kazakhstan etc have an annual intake of 3,000 to 3,500 calories per person. The countries with the minimum food intake are Afghanistan, Mongolia, Chad, Ethiopia, Angola etc.With a population of about 6 billion, food consumption has become a fast rising concern. As to statistics by World Bank, population in the world is growing by more than 200,000 people a day and that has an impact on world food consumption.
Report documents extreme levels of global wealth inequality
A report released Tuesday by a United Nations group documents the staggering levels of global inequality in household wealth. The report gives a partial portrait of a world society characterized by extreme concentrations of wealth in the hands of the richest sections of the population, with the position of much of the remainder ranging from general economic insecurity to dire poverty.
According to the report, published by the World Institute for Development Economics Research (WIDER) and based on data from 2000, the top one percent of the world’s adult population (about 37 million people) owns 40 percent of the world’s wealth, while the top two percent owns over half and the top 10 percent owns 85 percent. Wealth is defined as physical and financial assets minus liabilities.
In contrast, the bottom half of the world’s adult population—or about 1.85 billion people—owns collectively only one percent of the world’s assets.
This means that the top one percent of the world’s adult population owns 40 times more than the bottom 50 percent, and nearly 3 times more than the bottom 90 percent.
· First ever study of global household assets· 50% of world's adults own just 1% of the wealth
The richest 1% of adults in the world own 40% of the planet's wealth, according to the largest study yet of wealth distribution. The report also finds that those in financial services and the internet sectors predominate among the super rich.
Europe, the US and some Asia Pacific nations account for most of the extremely wealthy. More than a third live in the US. Japan accounts for 27% of the total, the UK for 6% and France for 5%.
The UK is also third in terms of per capita wealth. UK residents are found to have on average $127,000 (£64,000) each in asset, with Japanese and American citizens having, respectively, $181,000 and $144,000. All data relate to the year 2000.
The global study - from the World Institute for Development Economics Research of the United Nations - is the first to chart wealth distribution in every country as opposed to just income, for which more comprehensive date is available. It included all the most significant components of household wealth, including financial assets and debts, land, buildings and other tangible property. Together these total $125 trillion globally.
The report found the richest 10% of adults accounted for 85% of the world total of global assets. Half the world's adult population, however, owned barely 1% of global wealth. Near the bottom of the list was India, with per capita wealth of $1,100, and Indonesia with assets per head of $1,400.
India Rejects Blame for Higher Global Food Prices
Politicians across the Indian political spectrum are condemning President Bush's remark, linking high food prices in the West to a growing middle class in India.
Indian experts, citing data from here and from the United States, say American per capita food consumption is three to five times that of Indians. Ecologist Shiva argues Indians, overall, are eating less, not more, despite a growing middle class here. "Per capita consumption of food has dropped from 177 kilograms per capita per year to 152 in the last decade and a half. Instead of Mr. Bush citing that 350 million middle class, he should be citing the Indian children being denied. One million a year are dying for lack of food," added Shiva.
What are the causes of hunger? The first and fore most reason given by the FAO is the non availability of enough food and resources for the poor. I do not agree with it. There are more than enough resources available but they out of reach of the poor. They are concentrated in very few hands globally.
· Half the world — nearly three billion people — live on less than two dollars a day.
· The GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries (567 million people) is less than the wealth of the world’s 7 richest people combined.
· Nearly a billion people entered the 21st century unable to read a book or sign their names.
· Less than one per cent of what the world spent every year on weapons was needed to put every child into school by the year 2000 and yet it didn’t happen.
· 1 billion children live in poverty (1 in 2 children in the world). 640 million live without adequate shelter, 400 million have no access to safe water, 270 million have no access to health services. 10.6 million died in 2003 before they reached the age of 5 (or roughly 29,000 children per day).
Not enough resources?
Is this the real issue?
I do not think that this is issue?
Exploitation –is the single most important cause of Hunger. There are different types of exploitations- Economic System, Political System, Social System
The present system is at the core of the poverty. This system works towards concentration of wealth in few hands. The present financial system has benefitted few individuals at the cost of putting vast majority in pool of hunger. The present financial crisis has wiped out 38 trillion US dollar of wealth from economy. The biggest question now, do we really need a system which is played like casinos. These are called derivatives officially (gambling product which is legally allowed in system). Presently there are more 600 trillion US dollar derivatives contract exists which is 10 times bigger than size of global economy.
This exploitation is basically failure of multilateral institutions UN, IMF and World Bank. They are suppose to promote peace, justice and equality in the world. They remained mute witness of the exploitation are became the instrument of exploitation.
The only solution “Change Has Arrived”, Change the system, only changing color will not work; there is immediate necessity to change the complete system, “In and Out”.
Acute causes of poverty:
Warfare: The material and human destruction caused by warfare is a major development problem. For example, from 1990 to 1993, the period encompassing Desert Storm, per capita GDP in Iraq fell from $3500 to $761. The drop in average income, while a striking representation of the drop in the well-being of the average Iraqi citizen in the aftermath of the war, fails to capture the broader affects of damages to the infrastructure and social services, such as health care and access to clean water.
Colonial Histories: One of the most important barriers to development in poor countries is lack of uniform, basic infrastructure, such as roads and means of communication. Some development scholars have identified colonial history as an important contributor to the current situation. In most countries with a history of colonization, the colonizers developed local economies to facilitate the expropriation of resources for their own economic growth and development.
Centralization of Power: In many developing countries, political power is disproportionately centralized. Instead of having a network of political representatives distributed equally throughout society, in centralized systems of governance one major party, politician, or region is responsible for decision-making throughout the country. This often causes development problems. For example, in these situations politicians make decisions about places that they are unfamiliar with, lacking sufficient knowledge about the context to design effective and appropriate policies and programs.
Corruption: Corruption often accompanies centralization of power, when leaders are not accountable to those they serve. Most directly, corruption inhibits development when leaders help themselves to money that would otherwise be used for development projects. In other cases, leaders reward political support by providing services to their followers.
Social Inequality: One of the more entrenched sources of poverty throughout the world is social inequality that stems from cultural ideas about the relative worth of different genders, races, ethnic groups, and social classes. Ascribed inequality works by placing individuals in different social categories at birth, often based on religious, ethnic, or 'racial' characteristics. In South African history, apartheid laws defined a binary caste system that assigned different rights (or lack thereof) and social spaces to Whites and Blacks, using skin color to automatically determine the opportunities available to individuals in each group.
Debt is an efficient tool. It ensures access to other peoples’ raw materials and infrastructure on the cheapest possible terms. Dozens of countries must compete for shrinking export markets and can export only a limited range of products because of Northern protectionism and their lack of cash to invest in diversification. Market saturation ensues, reducing exporters’ income to a bare minimum while the North enjoys huge savings. The IMF cannot seem to understand that investing in … [a] healthy, well-fed, literate population … is the most intelligent economic choice a country can make.
Many developing nations are in debt and poverty partly due to the policies of international institutions such as the International Monetary Fund (IMF) and the World Bank.
Their programs have been heavily criticized for many years for resulting in poverty. In addition, for developing or third world countries, there has been an increased dependency on the richer nations. This is despite the IMF and World Bank’s claim that they will reduce poverty.
When IMF donors keep the exchange rates in their favour, it often means that the poor nations remain poor, or get even poorer. Even the 1997/98/99 global financial crisis can be partly blamed on structural adjustment and early, overly aggressive deregulation for emerging economies.
This is one of the backbones to today’s so-called “free” trade. In this form, as a result, it is seen by some as unfair and one-way, or extraction list. It also serves to maintain unequal free trade as pointed out by J.W. Smith.
Resources available on Earth for All Human
Earth
Earth is the third planet from the Sun and takes 23 hours, 56 minutes to spin on its axis one time.
Size: Earth has a diameter of 7,926 miles (12,756 kilometers).The planet Earth is a planet of oceans. The total area of the Earth is approximately 510 million square kilometers and the oceans cover about 71 percent of the Earth's surface, which is about 360 million square kilometers.
There are a total of 5 oceans, and they are the Arctic, Pacific, Atlantic, Indian, and the Antarctic Ocean. Out of these five, there are three major oceans, the Atlantic, Pacific, and the Indian Ocean. They account for 90 percent of the area covered by oceans. The Pacific Ocean is the largest of oceans, its area is 181 million square kilometers, which covers nearly a third of the Earth's surface. The Atlantic Ocean is the second largest, covering 94 million square kilometers, and the Indian Ocean is the third largest, covering about 74 million square kilometers.
The oceans' tremendous presence causes it to have a huge effect on the planet and our civilization. It is greatly responsible for the climate of the Earth. It regulates air temperature and supplies moisture for rainfall. The ocean also provides us with food, energy, minerals, and a cheap method of transportation. Without the oceans, the Earth wouldn't be able to sustain life.
Surface: From space, Earth looks like the blue water world it is. About 70 percent of Earth's surface is covered with water, and 97 percent of all that water is in the salty oceans. Only 3 percent of Earth's water is freshwater — the water we drink.Earth is covered with mountains, volcanoes, lakes, rivers, and oceans. Most of the surface material is made of rocks — high in silica, iron, and magnesium.
Forest
Forests cover about a quarter of the world's land surface, excluding Greenland and Antarctica.
· The Amazon Rainforest covers over a billion acres, encompassing areas in Brazil, Venezuela, Colombia and the Eastern Andean region of Ecuador and Peru.
· More than half of the world's estimated 10 million species of plants, animals and insects live in the tropical rainforests. One-fifth of the world's fresh water is in the Amazon Basin.
· One hectare (2.47 acres) may contain over 750 types of trees and 1500 species of higher plants.
· At least 80% of the developed world's diet originated in the tropical rainforest. Its bountiful gifts to the world include fruits like avocados, coconuts, figs, oranges, lemons, grapefruit, bananas, guavas, pineapples, mangos and tomatoes; vegetables including corn, potatoes, rice, winter squash and yams; spices like black pepper, cayenne, chocolate, cinnamon, cloves, ginger, sugar cane, tumeric, coffee and vanilla and nuts including Brazil nuts and cashews.
· At least 3000 fruits are found in the rainforests; of these only 200 are now in use in the Western World. The Indians of the rainforest use over 2,000.
· Rainforest plants are rich in secondary metabolites, particularly alkaloids. Biochemists believe alkaloids protect plants from disease and insect attacks. Many alkaloids from higher plants have proven to be of medicinal value and benefit.
· Experts agree that by leaving the rainforests intact and harvesting it's many nuts, fruits, oil-producing plants, and medicinal plants, the rainforest has more economic value than if they were cut down to make grazing land for cattle or for timber.
· The latest statistics show that rainforest land converted to cattle operations yields the land owner $60 per acre and if timber is harvested, the land is worth $400 per acre. However, if these renewable and sustainable resources are harvested, the land will yield the land owner $2,400 per acre.
· If managed properly, the rainforest can provide the world's need for these natural resources on a perpetual basis.
Food from the Sea: Oceans cover nearly 75% of the earth's surface.
Although a large percentage of the aquatic plants and animals that eventually become human food are either captured by fishers or produced by mariculturists in the world's oceans, a significant amount also comes from fresh water. The term "seafood" commonly is used to describe aquatic plants and animals consumed by humans, regardless of source. Fisheries and aquaculture produce roughly 140 million tons of plants and animals annually. Included are finfish, mollusks (including octopus and squid), crustaceans , seaweeds, reptiles, and marine mammals: the first four categories make up the bulk of the human food that comes from the waters of the world.
Global production of farmed aquatic animals and plants in 2003 reached 55 million mt with an on-farm value of US$ 67 billion. As per statistics, aquaculture currently accounts for nearly 22% of total world catch including species used to produce fish meal and fish oil. It is continuously growing from 1987 and the production increased by 148%. Fisheries sector provides an overall 17% of the world’s animal protein intake to which the Asian countries contribute around 26%. The world per capita fish consumption is about 12 kg per year, 8 kg for developing countries and 25 kg for developed countries. The per capita fish consumption for India is even less than 8 kg per year. Thus, there is a need to increase per capita fish consumption level by increasing fish production. There is a need to exploit the food from sea as a security against under nutrition and malnutrition as sea has ample scope for continuous supply of protein rich food for socioeconomic upliftment. India has a vast coastline and seas to ensure food security through its fisheries and aquaculture policies and related S&T measures.
This seaweed plantation in Bali, Indonesia illustrates the role of Mari culture (marine aquaculture) in meeting human food demands. Global seaweed production exceeds 10 million metric tons annually.
With respect to finfish, the herring, sardine, and anchovy group is used primarily for the manufacture of fish meal. The cod, hake, and haddock group is commonly sold as fish fillets and fish sticks. Those fishes are also used to make artificial crab, shrimp, and other products that mimic more expensive seafoods.
Production of carp and closely related fresh-water species approaches that of the herring group. The vast majority of the carp produced in the world are products of China's aquaculture activity. China began culturing carp, according to some estimates, as long ago as 4,000 years. Carp continue to be very important in the diets of most people in China. Carp are also produced in significant numbers in parts of Europe, the Middle East, India, and a few other locations.
Clams and oysters dominate the mollusk category, followed by scallops, mussels, and abalone. Total mollusk production exceeds 15 million metric tons annually.
Inequality of World Food Consumption
World Food Consumption Map shows a world map where the countries of the world have been shown using different colors according to the daily food consumption in that part of the world.
The countries with the maximum food intake i.e. 3,500 calories per person are United States of America, Portugal, France, Turkey etc. Canada, Mexico, Argentina, Australia, Kazakhstan etc have an annual intake of 3,000 to 3,500 calories per person. The countries with the minimum food intake are Afghanistan, Mongolia, Chad, Ethiopia, Angola etc.With a population of about 6 billion, food consumption has become a fast rising concern. As to statistics by World Bank, population in the world is growing by more than 200,000 people a day and that has an impact on world food consumption.
Report documents extreme levels of global wealth inequality
A report released Tuesday by a United Nations group documents the staggering levels of global inequality in household wealth. The report gives a partial portrait of a world society characterized by extreme concentrations of wealth in the hands of the richest sections of the population, with the position of much of the remainder ranging from general economic insecurity to dire poverty.
According to the report, published by the World Institute for Development Economics Research (WIDER) and based on data from 2000, the top one percent of the world’s adult population (about 37 million people) owns 40 percent of the world’s wealth, while the top two percent owns over half and the top 10 percent owns 85 percent. Wealth is defined as physical and financial assets minus liabilities.
In contrast, the bottom half of the world’s adult population—or about 1.85 billion people—owns collectively only one percent of the world’s assets.
This means that the top one percent of the world’s adult population owns 40 times more than the bottom 50 percent, and nearly 3 times more than the bottom 90 percent.
· First ever study of global household assets· 50% of world's adults own just 1% of the wealth
The richest 1% of adults in the world own 40% of the planet's wealth, according to the largest study yet of wealth distribution. The report also finds that those in financial services and the internet sectors predominate among the super rich.
Europe, the US and some Asia Pacific nations account for most of the extremely wealthy. More than a third live in the US. Japan accounts for 27% of the total, the UK for 6% and France for 5%.
The UK is also third in terms of per capita wealth. UK residents are found to have on average $127,000 (£64,000) each in asset, with Japanese and American citizens having, respectively, $181,000 and $144,000. All data relate to the year 2000.
The global study - from the World Institute for Development Economics Research of the United Nations - is the first to chart wealth distribution in every country as opposed to just income, for which more comprehensive date is available. It included all the most significant components of household wealth, including financial assets and debts, land, buildings and other tangible property. Together these total $125 trillion globally.
The report found the richest 10% of adults accounted for 85% of the world total of global assets. Half the world's adult population, however, owned barely 1% of global wealth. Near the bottom of the list was India, with per capita wealth of $1,100, and Indonesia with assets per head of $1,400.
India Rejects Blame for Higher Global Food Prices
Politicians across the Indian political spectrum are condemning President Bush's remark, linking high food prices in the West to a growing middle class in India.
Indian experts, citing data from here and from the United States, say American per capita food consumption is three to five times that of Indians. Ecologist Shiva argues Indians, overall, are eating less, not more, despite a growing middle class here. "Per capita consumption of food has dropped from 177 kilograms per capita per year to 152 in the last decade and a half. Instead of Mr. Bush citing that 350 million middle class, he should be citing the Indian children being denied. One million a year are dying for lack of food," added Shiva.
Sunday, November 8, 2009
Water Grid to Sustainable Growth of GCC
Saudi Arabia plans to phase out production of all water-intensive crops that have depleted the desert kingdom's scarce water supplies, Saudi's water and electricity minister said yesterday."We have a plan to phase out all the production of water intensive crops in order to preserve water," said Abdullah bin Abdul-Rahman Al Husayen on the sidelines of an industry conference in Dubai.The crops include wheat, soya beans and animal fodder, he said, declining to comment on when the crops will be phased out. "It would be best to grow these kinds of crops outside Saudi Arabia."Agriculture accounts for 66 per cent of human water consumption worldwide, according to the World Water Council. And in Saudi Arabia where the resource is already scarce, the government is towards more conservation in the agriculture sector.The kingdom needs around 2.6 million tonnes of wheat annually, and the government said last year it would rely entirely on wheat imports by 2016."Imports and growing water intensive crops outside Saudi is a more feasible option for us," said Husayen.Like other wealthy Gulf states, Saudi Arabia has been buying foreign farmland in Asia and Africa to secure food supplies after inflation had nearly doubled the price of food last year.So far foreign investors have acquired some 15-20 million hectares of farmland in poorer countries since 2006, according to the International Food Policy Research Institute.
Food security will remain a significant issue for the Middle East and North Africa due to supply uncertainty on one hand and a growing population and looming water shortage on the other, a report from Standard Chartered (StanChart) Bank said.Although food prices have dropped by a third from the peak of mid-2008 food crisis, prices are now rising again and are 80 per cent higher than the recent low in mid-2002."This marks the resumption of a longer-term trend of rising prices, driven by the increasing cost of agricultural production to meet the inexorable rise in demand for food commodities," it said.While Mena, particularly GCC, has the financial resources to purchase food commodities, it is nevertheless facing the issue of how to feed its rapidly growing population while also maintaining living standards.The report, The end of cheap food, says the region is inclined to import more food to address this problem.But the whole region still faces a further long-term food security risk, as it relies on the proceeds of hydrocarbon sales to buy food, it said.Mena is a highly import-oriented economy as it faces a shortage of water resources, which makes it difficult to grow water-intensive crops such grains. Besides, there is a large demand from a young, growing population.
RIYADH: Saudi Arabia, which leads the six-nation Gulf Cooperation Council in terms of ambitious organic farming projects and by setting up a private sector Saudi Organic Farming Association (SOFA), is currently mapping out a comprehensive action plan for the development of organic farming and food.
Saudi Minister of Agriculture Fahd Balghunaim, who was elected president of the 10-member SOFA board of directors, said, “The Saudi government has been backing the initiative to promote organic farming with the help of the German technical agency GTZ.
“Custodian of the Two Holy Mosques King Abdullah has donated SR10 million, while Crown Prince Sultan has given SR5 million to support this initiative and to ensure the production of organic food to the highest standards and quality.”
The project initiative known as “Introduction of Organic Farming into Saudi Arabia” is being promoted by GTZ, said Agriculture Minister Balghunaim.
The GTZ is also responsible for preparing the organizational set-up for SOFA, while offering its expertise to the ministry in order to prepare a regulatory framework for organic farming in Saudi Arabia.
The SOFA, he said, was also entrusted with the task of monitoring organic production, protecting farmers and promoting consumer awareness. The move is in line with the policies of European countries, which are also working on the development of organic farming and food as agreed in the Copenhagen Declaration.
Saudi Minister of Agriculture Fahd Balghunaim, who was elected president of the 10-member SOFA board of directors, said, “The Saudi government has been backing the initiative to promote organic farming with the help of the German technical agency GTZ.
“Custodian of the Two Holy Mosques King Abdullah has donated SR10 million, while Crown Prince Sultan has given SR5 million to support this initiative and to ensure the production of organic food to the highest standards and quality.”
The project initiative known as “Introduction of Organic Farming into Saudi Arabia” is being promoted by GTZ, said Agriculture Minister Balghunaim.
The GTZ is also responsible for preparing the organizational set-up for SOFA, while offering its expertise to the ministry in order to prepare a regulatory framework for organic farming in Saudi Arabia.
The SOFA, he said, was also entrusted with the task of monitoring organic production, protecting farmers and promoting consumer awareness. The move is in line with the policies of European countries, which are also working on the development of organic farming and food as agreed in the Copenhagen Declaration.
Water and Food is Greatest of Challenge and Sustaianble Development is Solution- Water Grid is the Future for Dry GCC
Presently waste water is treated and dump into the sea but this is just waste of the resources. When there is water scarcity and every drop of water is precious much more is required to be done. When GCC is talking leadership is talking of single GCC market, Single economy and Single Currency. The work on single Electric Grid is already underway and progressed very well. This success will definitely encouraging and soon there will be single Railroad for GCC.
The biggest challenge of the century is Food and Water. What are we doing for it?
Think……….it is the biggest challenge………………….. Food and Water
Solution has to be innovative. And one of best option at hand instead of throwing treated waste water in the sea develop water grid, make desert green and provide this water for agriculture.
Single water grid for GCC
Where treated waste water is flow into single pipeline and supplied across the desert to make it green and Agriculture land. This will be most beneficial option. Instead of throwing treated waste water into sea let us use it to make advance of desert and for agriculture. Clean, and green sustainable future.
Major Issues and Challenges Arising from Topography, environment and weather conditions
· Water
· Agriculture
· Environment
· Health
The biggest challenge of the century is Food and Water. What are we doing for it?
Think……….it is the biggest challenge………………….. Food and Water
Solution has to be innovative. And one of best option at hand instead of throwing treated waste water in the sea develop water grid, make desert green and provide this water for agriculture.
Single water grid for GCC
Where treated waste water is flow into single pipeline and supplied across the desert to make it green and Agriculture land. This will be most beneficial option. Instead of throwing treated waste water into sea let us use it to make advance of desert and for agriculture. Clean, and green sustainable future.
Major Issues and Challenges Arising from Topography, environment and weather conditions
· Water
· Agriculture
· Environment
· Health
WATER CHALLENGES FOR THE REGION
ü Limited water supplies of variable quality
ü Increasing gap between demand and availability
ü Lack of a comprehensive strategy for water resources
ü Fragmented institutional framework
ü Limited enforcement of legislation to protect water resources
The Desalination and Advanced Water Reuse becomes and extremely important tool in the Integrated Water Management. The establishing optimized models and example of effective implementation of desalinated projects trough IWPP will provide in short term the critically needed desalinated water.To meet the challenge, large-scale dual-purpose power/desalination plants are built to reduce the cost of production of electricity and water. Thermal energy extracted or exhausted from power plants is used effectively in the desalination process. In the author’s estimate, over 30,000 MW of power is combined with desalination plants in the largest use of the cogeneration concept. There are unique conditions in the many arid countries and particularly in the Gulf where peak demand for electricity rises significantly during summer mainly because of the use of air-conditioning, and then drops dramatically to 30-40% of summer capacity. This creates situation that over 50% of power generation are idled. In contrast, the demand for desalinated water is almost constant. Water can be stored while electricity storage is not practical. Cost-effective integration of three proven technologies, desalination, power and aquifer storage recovery (ASR) can secure a reliable, sustainable and high-quality fresh water supply for the Gulf States. The seasonal surplus of unused idle power could be used by electrically driven desalination technologies RO and Hybrid Systems including NF/RO/ MSF process in combination with ASR creating a system of Desalination/ Aquifer Storage and Recovery (D/ASR). The ability to store and recover large volumes of water can contribute to the average downsizing of power and water facilities with substantial operational cost savings. D/ASR provides strategic reserves of potable water, to prevent damage or depletion to existing oasis or aquifers, for controlling salt-water intrusion, or improvement in water quality. D/ASR is of strategic importance to the Middle East
Contents
Today the Water availability and security is even more of a critical concern and became a more important priority for the Middle East Region. In addition, the critical need for a reliable water supply creates an opportunity for the leadership to demonstrate its management abilities by supporting a program to substantially improve the availability of water and provide security of its supply.Fresh water is no longer the infinitely renewable resource that we once thought it was. Unlike oil, fresh water has no viable substitute. The sea is the unlimited source from which we can create new fresh water through desalination This century demands creative solutions. It requires effective integration of energy resources to generate power and to economically create and store desalinated water. Confronting the water challenge is essential to a country’s sustainable development and to the security of its communities. Water will be the most important resource of this century. The GCC countries installed over 15.9 million m3/day desalination plants, equal to 42% of global installed capacity and which constitute over 50% of all municipal water supplies. Equally important, most of the countries have only one to three-day of water supply in storage, meaning that if the plants providing the desalinated water or the pipelines transporting the water to the cities were disrupted, major water shortages would immediately be the result.The Middle East countries, particularly the Gulf Cooperation Council States- GCC is the biggest users of desalination technology a 42%, and significantly more over 60% of the world’s seawater desalination capacity. It is in the Abu Dhabi where commitment for new desalination capacity is the greatest. To meet the challenge, large-scale dual - purpose power/desalination plants are built to reduce the cost of production of electricity and water. Sewage treatment capacity will have to more than double over the next six years, according to new MEED Insight report GCC Wastewater 2009.
Utilities are seeking to meet robust demand and replace antiquated infrastructure, it says.
Despite the onset of the worst economic downturn in a decade, the outlook for the GCC wastewater sector - one of the most active over the past five years - remains bright, the report says, with almost $10bn of investment planned in new treatment capacity up to 2015.
The existing wastewater infrastructure has been under severe pressure since 2004 when strong economic growth, an expanding population base and an upsurge in real estate activity led to significant increases in sewage inflows and serious overloading at treatment plants across the region.
The late 2008 collapse in the oil price and subsequent real estate downturn put a brake on the runaway growth in demand, particularly in Dubai where leading real estate developers have cancelled or reduced in scope a string of sewage treatment plant (STP) projects in response to the real estate crash.
Across much of the region, the existing STP infrastructure is more than 20 years old and incapable of meeting today’s demands, both in terms of handling volumes and treating effluent to international standards. It has become a priority, therefore, for utility providers across the region to take existing plants out of service and replace them with new capacity.
ü Limited water supplies of variable quality
ü Increasing gap between demand and availability
ü Lack of a comprehensive strategy for water resources
ü Fragmented institutional framework
ü Limited enforcement of legislation to protect water resources
The Desalination and Advanced Water Reuse becomes and extremely important tool in the Integrated Water Management. The establishing optimized models and example of effective implementation of desalinated projects trough IWPP will provide in short term the critically needed desalinated water.To meet the challenge, large-scale dual-purpose power/desalination plants are built to reduce the cost of production of electricity and water. Thermal energy extracted or exhausted from power plants is used effectively in the desalination process. In the author’s estimate, over 30,000 MW of power is combined with desalination plants in the largest use of the cogeneration concept. There are unique conditions in the many arid countries and particularly in the Gulf where peak demand for electricity rises significantly during summer mainly because of the use of air-conditioning, and then drops dramatically to 30-40% of summer capacity. This creates situation that over 50% of power generation are idled. In contrast, the demand for desalinated water is almost constant. Water can be stored while electricity storage is not practical. Cost-effective integration of three proven technologies, desalination, power and aquifer storage recovery (ASR) can secure a reliable, sustainable and high-quality fresh water supply for the Gulf States. The seasonal surplus of unused idle power could be used by electrically driven desalination technologies RO and Hybrid Systems including NF/RO/ MSF process in combination with ASR creating a system of Desalination/ Aquifer Storage and Recovery (D/ASR). The ability to store and recover large volumes of water can contribute to the average downsizing of power and water facilities with substantial operational cost savings. D/ASR provides strategic reserves of potable water, to prevent damage or depletion to existing oasis or aquifers, for controlling salt-water intrusion, or improvement in water quality. D/ASR is of strategic importance to the Middle East
Contents
Today the Water availability and security is even more of a critical concern and became a more important priority for the Middle East Region. In addition, the critical need for a reliable water supply creates an opportunity for the leadership to demonstrate its management abilities by supporting a program to substantially improve the availability of water and provide security of its supply.Fresh water is no longer the infinitely renewable resource that we once thought it was. Unlike oil, fresh water has no viable substitute. The sea is the unlimited source from which we can create new fresh water through desalination This century demands creative solutions. It requires effective integration of energy resources to generate power and to economically create and store desalinated water. Confronting the water challenge is essential to a country’s sustainable development and to the security of its communities. Water will be the most important resource of this century. The GCC countries installed over 15.9 million m3/day desalination plants, equal to 42% of global installed capacity and which constitute over 50% of all municipal water supplies. Equally important, most of the countries have only one to three-day of water supply in storage, meaning that if the plants providing the desalinated water or the pipelines transporting the water to the cities were disrupted, major water shortages would immediately be the result.The Middle East countries, particularly the Gulf Cooperation Council States- GCC is the biggest users of desalination technology a 42%, and significantly more over 60% of the world’s seawater desalination capacity. It is in the Abu Dhabi where commitment for new desalination capacity is the greatest. To meet the challenge, large-scale dual - purpose power/desalination plants are built to reduce the cost of production of electricity and water. Sewage treatment capacity will have to more than double over the next six years, according to new MEED Insight report GCC Wastewater 2009.
Utilities are seeking to meet robust demand and replace antiquated infrastructure, it says.
Despite the onset of the worst economic downturn in a decade, the outlook for the GCC wastewater sector - one of the most active over the past five years - remains bright, the report says, with almost $10bn of investment planned in new treatment capacity up to 2015.
The existing wastewater infrastructure has been under severe pressure since 2004 when strong economic growth, an expanding population base and an upsurge in real estate activity led to significant increases in sewage inflows and serious overloading at treatment plants across the region.
The late 2008 collapse in the oil price and subsequent real estate downturn put a brake on the runaway growth in demand, particularly in Dubai where leading real estate developers have cancelled or reduced in scope a string of sewage treatment plant (STP) projects in response to the real estate crash.
Across much of the region, the existing STP infrastructure is more than 20 years old and incapable of meeting today’s demands, both in terms of handling volumes and treating effluent to international standards. It has become a priority, therefore, for utility providers across the region to take existing plants out of service and replace them with new capacity.
Friday, October 16, 2009
Nobel Peace Prize to Barack Obama Why not to Mahatma Gandhi
NOBLE PEACE PRIZE –
GANDHI AND PRESIDENT BARACK OBAMA
World’s One of the Greatest Proponent of Peace and Harmony Mohandas Karamchand Gandhi has never got Nobel Peace Prize “BAPU” OR “MAHATMA GANDH”
The Nobel Peace Prize for 2009 BARACK OBAMA
The Reason
“Obama has as President created a new climate in international politics. Multilateral diplomacy has regained a central position, with emphasis on the role that the United Nations and other international institutions can play. Dialogue and negotiations are preferred as instruments for resolving even the most difficult international conflicts. The vision of a world free from nuclear arms has powerfully stimulated disarmament and arms control negotiations.”
The Nobel committee awarded the 2009 Peace Prize to President Barack Obama Friday, Oct. 9, in a prospective, premature accolade normally reserved for those who have accomplished considerable, tangible results in the pursuit of peace.
To be sure, Obama has tried to advance the cause of peace. His speech in Cairo in June attempted to address the shortcomings of both the Muslim world and America and was viewed as a first step towards reconciliation.
The Nobel Peace Prize for 2007 Albert Arnold (Al) Gore Jr.
The Norwegian Nobel Committee has decided that the Nobel Peace Prize for 2007 is to be shared, in two equal parts, between the Intergovernmental Panel on Climate Change (IPCC) and Albert Arnold (Al) Gore Jr. for their efforts to build up and disseminate greater knowledge about man-made climate change, and to lay the foundations for the measures that are needed to counteract such change.
Indications of changes in the earth's future climate must be treated with the utmost seriousness, and with the precautionary principle uppermost in our minds. Extensive climate changes may alter and threaten the living conditions of much of mankind. They may induce large-scale migration and lead to greater competition for the earth's resources. Such changes will place particularly heavy burdens on the world's most vulnerable countries. There may be increased danger of violent conflicts and wars, within and between states.
JIMI CARTER The Nobel Peace Prize 2002
During his presidency (1977-1981), Carter's mediation was a vital contribution to the Camp David Accords between Israel and Egypt, in itself a great enough achievement to qualify for the Nobel Peace Prize. At a time when the cold war between East and West was still predominant, he placed renewed emphasis on the place of human rights in international politics.
Common thread to this prize
· This prize is given for the US President and Vice President for doing nothing inside the US, changing the world for US and protecting the interest of strong US lobbies who pays them to became President.
“Change the world for peace, and Camp David Accords between Israel and Egypt (this is what exactly press release of Noble Peace Prize Committee says…………….Now we need second Camp David…………Mahmood Abbas has already withdrawn his support to UN Report on Gaza War Crime and will not come to discussion in UN Human Rights Body). And the Al Gore for Environment but precisely speaking America has not rectified KYOTO agreement and will not rectify it in future they want everybody else to change but they will not change themselves and “ Change has Come” we need peace accord in middle east but interest must be secured so before had award come and much more to come. But all actions are nothing to do with USA itself but they are outside and to protect the interest, this precisely call says change the world for us, we will not change for you. USA will remain the same, it will not sign KYOTO accord and award is for Al Gore to convince whole world to rectify it. (Environment Protection) “Change has arrived” for world, for all countries and call for action to change the world, “Not USA”. USA will continue to hold WMD, modern WMD the finance structured product and derivatives and futures and options, put many people in poverty using it and no body will question. USA will continue to ask all benefits from all nations in WTO Doha round and Environment Summit and will not give anything to others and will not share any responsibility for the same and continue to emit Carbon gases to the maxim. “This is what exactly means CALL FOR ACTION, Protect American Interest, Change the World for American interest “CHANGE HAS COME”.
Bapu We Are Sorry We Can’t Deliver To You What You Deserve
But Great People Don’t Need Prize, They are Great by Their Action and Devotion. Bapu sacrificed whole life for philosophy he believed in and died for it.
World of Bapu’s Dream Free of Poverty and Corruption, Sustainable and Free of Arm and Ammunition (Swaraj, Suraj a Ahimsa) –
Bapu man of action who liberated India from the clutches of British Empire with his philosophy of Ahimsa, the fought the empire with his power of Ahimha( Non Violence), Truth and Self Reliance and Sustainable ( Charakha and Khadi)
Village SwarajMy idea of village Swaraj is that it is a complete republic, independent of its neighbors for its own vita wants and yet interdependent for many others in which dependence is necessary. Thus, every village's first concern will be to grow its own food crops, and cotton for its cloth. It should have a reserve for its cattle, recreation and playground for adults and children. Then, if there is more land available, it will grow useful money crops, thus excluding GANJA, tobacco, opium and the like. The village will maintain a village theatre, school and public hall. It will have its own waterworks ensuring clean water supply. This can be done through controlled wells or tanks. Education will be compulsory up to the final basic course. As far as possible, every activity will be conducted on the co-operative basis. There will be no castes such as we have today with their graded untouchability. Non-violence with its technique of Satyagraha and non-co-operation will be the sanction pf the village community. There will be a compulsory service of village guards who will be selected by rotation from the register maintained by the village.
THE REAL India lies in the 7, 00,000 villages, if Indian civilization is to make its full contribution to the building up of a stable world order, it is this vast mass of humanity that has….to be made to live again.
We have to tackle the triple malady which holds our villages fast in its grip : (I) want of corporate sanitation ; (ii) deficient diet; (iii) inertia . . . They [villagers] are not interested in their own welfare. They don't appreciate modern sanitary methods. They don't want to exert themselves beyond scratching their farms or doing such labour as they are used to. These difficulties are real and serious. But they must not baffle us…
Mass Production vs. Production by the Masses
I would categorically state my conviction that the mania for mass-production is responsible for the world-crisis. Granting for the moment that machinery may supply all the needs of humanity, still, it would concentrate production in particular areas, so that you would have to go about in a round about way to regulate distribution, whereas, if there is production and distribution both in the respective areas where things are required, it is automatically regulated, and there is less chance for fraud, none for speculation.
ARTS AND CRAFTS
The villagers should develop such a high degree of skill that articles prepared by them should command a ready market outside. When our villages are fully developed, there will be no dearth in them of men with a high degree of skill and artistic talent. There will be village poets, village artists, village architects, linguists and research workers. In shout, there will be nothing in life worth having which will not be had in the villages.
Today the villages are dung heaps. Tomorrow they will be like tiny gardens of Eden where dwell highly intelligent folk whom no one can deceive or exploit. The reconstruction of the villages along these lines should begin right now….. The reconstruction of the villages should not be organized on a temporary but permanent basi
The best, quickest and most efficient way is to build up from the bottom . . . Every village has to become a self-sufficient republic. This does not require brave resolutions. It requires brave, corporate, intelligent work. . .
Harijan, 18-1-1922
Independence must begin at the bottom. Thus, every village will be a republic or Panchayat having full powers. It follows, therefore, that every village has to be self-sustained and capable of managing its affairs even to the extent of defending itself against the whole world. It will be trained and prepared to perish in the attempt to defend itself against any onslaught from without. Thus, ultimately, it is the individual who is the unit.
Our Nomination for Future Nobel Peace Prize
Dr. Manmohan Singh, The man of (in) action like Obama the US President
His Greatest achievement
· He signed nuclear agreement no body knows for sure what it has and what it do not, changing India’s position of fifty years on NPT, “ Al Bardai got Nobel for why not Manmohan”
· We have taken risk of loosing government and declared it in Japan that we will go ahead with nuclear treaty there. ( When we are promised a aircraft full of …………..promises, and with this………….we bought ( Amar Singh Came to our rescue and with our old friend Lalu, do you know? We don’t need them now so we dump them just like you BIG BROTHER)…………….and we sold………… …sorry…….WHER IS OUR AWARD? We won the vote of confidence …………poor communist will never understand economics of becoming rich………..over night………..
· We removed Mani Shanker Aiyer as petroleum minister, no body knows real reason. ( IPI Pipe line which BIG BROTHER DON’T WANT)
· We have become aligned from NAM (Non aligned movement) country.
· We will continue to buy all kinds arms and ammunation from BIG BROTHER.
· We are ready to sale all our Jewel ( NAVARATNA)
· Soon we will sign Doha; we have changed our minister now, Kamal Nath who was not willing to sign and talking to much like Mani Shanker Aiyer.
· MOST IMPORTANT WE HAVE MANY MORE THINGS TO GIVE IF YOU PROMISE US NOBEL
Bapu Forgive US but Please don’t Forget US we need you for next election, we can’t win it without you.
Bapu we will continue to forget you, and forget your sustainable and village center approach of development and continue to serve interest of different lobbies, we will continue to sell all jewels in our treasury “NAVRATNA”.
Bapu don’t forgive us and we will not forget and forgive you too, we too need you to win election.
“ We came to Power for Killing you, sorry killing your ideas of one nation, one people and equal rights”
By demolition Babri Masjid Sorry by demolishing your idea of “ Ishwar Allah Tere Nam Sab Ko Sanmati De Bhagwan”
Bapu next election we will repeat Gujrat Riot across the nation to come to power, sorry again by mistake sorry “ We will Gujarat Shining, India Shining” for next election.
Bapu please…………. No more excuse………… you must come to our rescue ………..you are also Guajarati………..if you help me I will be PM……………..balle…………balle…….no more …. balle…..balle ………………
Only Jai Sri Ram
See , we thrown out our long time friend and partner Jaswant Singh for speaking truth, it is very bitter “ Karela aur wo bhi neem chada”
Now don’t have any Mukhauta ( Govidacharya can come and fill the gap) ………….sorry our great leader for future election……….who has ability to keep truth hiding, you must help us to come to our you always goes with “B” team, we are real Indian, we are Aryan you must help us, like Krishna. Yes we don’t have Draupadi, Subhadra but still we have Sushma and Vasundhara………………Bapu…… …please…….we have only one hope…………..Gujarat………
Tuesday, August 11, 2009
India 9 percent Inclusive Growth Issues and Challenges
India Growth Story
In the previous post I have written about farmer’s suicide and status of poverty in India. In this post I am talking about how it can be managed and reduced.
Seasonal Rainfall Scenario (1 June to 29 July)
In the previous post I have written about farmer’s suicide and status of poverty in India. In this post I am talking about how it can be managed and reduced.
Seasonal Rainfall Scenario (1 June to 29 July)
The cumulative seasonal rainfall for the country as a whole during this year’s monsoon has so far been 19% below the Long Period Average (LPA). Progressive cumulative rainfall departure from LPA during monsoon season 2009 for the country as a whole and over the four broad homogeneous regions of India are given below
Out of 36 meteorological sub-divisions, the cumulative rainfall during 1 June to 29 July 2009 was excess/normal in 17 and deficient in 18 and scanty over 1 (West Uttar Pradesh) meteorological sub-divisions.
Can we Change Monsoon?
No, we can’t do anything to it. It was like this for all the time, it is becoming more and more unpredictable so because of Global Warming.
This reminds of what the former Finance Minister of Pakistan and the author of the UNDP's Human Development Report, the late Mahbub-ul-Haq (who was a personal friend of Dr Manmohan Singh) had once remarked, ''We were wrongly taught that we should take care of GDP and it will automatically take care of poverty. Let us reverse it. We need to take care of poverty and it will automatically take care of GDP". And the World Bank reluctantly acknowledged, though belatedly, ''the gap between some of India's largest and poorest states exhibit slow progress in human development indicators; low growth rates particularly in the agricultural sector. If the present trends continue, the bulk of the poor in these states will be unable to participate in future growth.'' Like Mr. Chidambaram, Mahbub-ul-Haq too refused to accept the stark reality – economic growth will not reduce poverty and deprivation.
India Growth Story
India’s economy has come a long way, especially since the start of this century. It is impossible to ignore India’s rise in every field.
GDP at market prices has increased from US$ 20 billion in 1950-51 to US$ 912 billion in 2006-07 and is expected to cross a trillion dollars in the current year. In terms of purchasing power parity (PPP), India’s GDP at US$ 4 trillion in 2006-07 accounted for 6.3 per cent of global GDP.
Average annual economic growth, which had been constant and tardy at 3.5 per cent during the first thirty years of Independence, increased to 5.7 per cent during the 1990s and, since 2003-04, the average rate has increased further to 8.6 per cent. 2006-07, in particular, was a splendid year with the GDP growing at 9.4 per cent.
This growth has not been jobless growth. During 1999-2000 to 2004-05, India added to its workforce about 12 million people each year. During this period, the rate of growth of employment was 2.9 per cent per year.
Present Status of Poverty and Employment in India
Protectionism, self-reliance and village republics are not enough to lift 1.3 billion of the world’s poor out of absolute poverty. There is sufficient empirical evidence to demonstrate that trade can be a powerful catalyst for poverty reduction, that free trade with fairer policies will benefit the world's poor more than aid or charity. The problem is that World Trade Organization negotiations and global trade are far from free and fair, with the balance skewed in favor of powerful trading blocs like the US and EU and against poorer nations
Employment Generation
The latest Economic Census of India 2005 reports that rural India witnessed a higher rate of employment-generation in recent years compared to urban India
Rural India has outshone its urban counterpart in generating employment, reports the latest Economic Census of India 2005. In the average annual growth in employment since 1999-2000, with employment growth rates of 3.33%, rural areas have outperformed the urban sector, which registered a rate of 1.68%, according to provisional results of the census. Interestingly, the results also show that 42.12 million enterprises are engaged in various economic activities other than crop production and plantation.
If poverty reduction is an explicit over-riding concern, any programmed, project or policy must be evaluated for its effects on this, which means assessment of its impact on poorer populations in terms of:
productive employment opportunities
access to and price of basic food requirements
access to basic housing/shelter requirements
access to and price of basic infrastructure services, including power, water, sanitation
access to and price of health services
access to and price of education services
access to and voice in the institutions of governance and administration
Focusing on all these indicators in turn imply that poverty is viewed as a multi-dimensional phenomenon, rather than simply in terms of nutritional deprivation, and the effects of material poverty on social exclusion are also recognized.
Trust on Agriculture
Studies by the Ministry of Agriculture have clearly demonstrated that farm incomes have fallen in the past five years. Rice farmers in West Bengal for instance earn less by 28 per cent in 2002-03 than what they earned in 1996-97. Incomes of sugarcane farmers decreased in Uttar Pradesh by 32 per cent and in Maharashtra by 40 per cent. Farm incomes of north Indian farmers eroded by 10 per cent on an average. The sharp decline in farm incomes is happening at a time when incomes in the urban areas are on an upswing. Add to it the declining consumption of cereals in real terms, the message is crystal clear. For bulk of the population, the capacity to buy food is eroding fast. This is leading to worsening of poverty and thereby leading to acute malnutrition. The Economic Survey, presented a day before the Budget, clearly stated that cereal consumption within a year had fallen drastically, indicating worsening poverty levels.
The HDI for India is 0.619, which gives the country a rank of 128th out of 177 countries with data
This year’s HDI, which refers to 2005, highlights the very large gaps in well-being and life chances that continue to divide our increasingly interconnected world. By looking at some of the most fundamental aspects of people’s lives and opportunities it provides a much more complete picture of a country's development than other indicators, such as GDP per capita. Figure illustrates those countries on the same level of HDI as India can have very different levels of income.
Of the components of the HDI, only income and gross enrolment are somewhat responsive to short term policy changes. For that reason, it is important to examine changes in the human development index over time
One suicide every 8 hours
Vidarbha remains a grim statistic. One suicide in every eight hours. More than half of those who committed suicide were between 20 and 45, their most productive years. The Maharashtra government says as many as 1920 farmers committed suicide between January 1, 2001 and August 19, 2006. Nearly 2.8 million of the 3.2 million cotton farmers are defaulters, reports Jaideep Hardikar
India's Growth - Luxury for the rich, squalor for the poor
"India is one land, but the rich and poor exist on apparently different planets. Virtually unreported are some awful daily realities: the rate of malnutrition in children under five is a shamefully high 45%. Less than a third of India's homes have a toilet and most women have to wait until the dark of evening to venture out to answer the call of nature. The talk of making poverty history sounds hollow in India, a land which is home to a third of the world's poor and where some 300 million people live on less than $1 a day."
Even in macroeconomic terms India is still poor and small. It holds a sixth of the world's population but accounts for just 1.3% of world exports of goods and services, and 0.8% of foreign direct investment flows.
Even the investment that is trickling in is becoming more and more capital intensive rather than labour intensive. Hence this whole propaganda that investment creates more jobs is being proven to be utterly false in India.
In urban India this whole phenomenon of liberalization is playing havoc with city dwellers. As India's famous novelist and social activist Arundhati Roy put it, "This project of corporate globalization has created a constituency of very rich people who are very thrilled by it. They do not care about the hawkers being cleared from the streets or the slums that are disappearing overnight. India is not coming together but coming apart because liberalization has convulsed the country at an unprecedented unacceptable velocity."
Now half of Delhi's 14 million inhabitants live in slums and 18,000 structures outside of slum clusters have been deemed illegal. But if this capitalist aggression is devastating the lives of the workers and the urban poor, it has had a more devastating effect in the villages where 70% of India's population lives. As Roy says, "Where India does not live, it dies."
There have been reports of the phenomenon of endemic farmer suicides across India. In some states it worse than in others. The arrival of new pesticides, genetically modified seeds and swanky tractors that soak up increasingly expensive fuel have pushed up the cost of production.
First cousins: The ties between rural and urban India
At 27.8% of the total population, India’s level of urbanisation remains quite low. But that’s still 285 million urban citizens, a number that would constitute the fourth-largest nation in the world. To feed these ever-consuming cities electricity, water and natural resources, the habitats of rural India are becoming more and more depleted, forcing further migration into the cities
Thus, as urban studies scholars such as Amitabh Kundu have time and again pointed out, the level of urbanization in India actually remains quite low even though its contribution to the national economy has become extremely high--calculated at 60% in 2001.
But unfortunately, a hard-headed study of urban habitats around the world reveals that their goals may just not be achieved. And this could have everything to do with the situation of the 745 million rural Indians that shadow the horizon of all Indian cities. A shadow that may darken over a period of time when one finds that to feed the ever-consuming cities with electricity, water and natural resources, the habitats of rural India gradually become more and more depleted, forcing larger and larger numbers to migrate to cities, thereby further straining resources, especially since all the existing policies are doing little to absorb the needs of the urban poor.
Commitment to reduce Poverty Is Lacking
The ministry of water resources had demanded Rs 4,500 crore for the completion of major irrigation projects in the coming Budget.
The state governments' failure to complete irrigation projects has led to an escalation of their combined cost by close to a whopping one lakh crore rupees. According to the Planning Commission, 383 irrigation projects in 23 states have spilled over from the Ninth Five-Year Plan to the tenth plan.These projects were to irrigate more than 20 million hectares, reducing the farmers' dependence on the monsoon. By the end of the ninth plan, only 35 per cent of the area was covered. The delay in implementation is attributed to several factors. For one, the allocation to the sector in the Union budget has been coming down, point out sources. Another reason is that the number of irrigation projects has been increasing over time, without the earlier ones getting completed.
The state governments' failure to complete irrigation projects has led to an escalation of their combined cost by close to a whopping one lakh crore rupees. According to the Planning Commission, 383 irrigation projects in 23 states have spilled over from the Ninth Five-Year Plan to the tenth plan.These projects were to irrigate more than 20 million hectares, reducing the farmers' dependence on the monsoon. By the end of the ninth plan, only 35 per cent of the area was covered. The delay in implementation is attributed to several factors. For one, the allocation to the sector in the Union budget has been coming down, point out sources. Another reason is that the number of irrigation projects has been increasing over time, without the earlier ones getting completed.
Agriculture as Thrust Area
Agriculture plays an important role in the rural economy of India. This sector provides gainful employment as well as raw materials for a large number of industries in the country. Of late, amid economic reforms and trade liberalization, considerable changes have been noticed in this sector. The reform process introduced in the early 1990s failed to recognize the crucial importance of this sector due to which it has faced serious difficulties. These difficulties manifested in a variety of forms like loss of livelihood, consequent decrease in purchasing power of the rural masses, and a steady increase in input prices crippling the agricultural producers. Complete failure of land reform programmes in turn resulting in a distorted land holding pattern, the crisis in this sector during the post-liberalisation has aggravated.
Looking at the core concerns of this sector, the growth of this sector in terms of increased public investment is of immense necessity at this juncture to revive the fate of the rural economy of India.
Looking at the expenditure pattern of the present government towards agriculture and allied activities, the share of agriculture and allied activities from total expenditure and GDP declined drastically to 10.37 percent and 1.64 percent respectively compare to the previous budget (2008-09 RE). The obvious conclusion from this expenditure trend shows how committed is present UPA government at the centre towards reviving the rural economy of India as more than 52 percent of the total population of India depends on agriculture as their means of livelihood.
Graph-1: Percentage Distribution of Plan Allocations in Agriculture and Allied Activities Since the Seventh Five Year Plan
Source: Compiled from the data given in Economic Survey, 2007-08, GoI
Plan expenditure shows the commitment of the government towards the overall development of that sector over the plan period. Share of plan investment (both Center and States/UTs) in agriculture sector has been declining since 1985. Declined share of investment in agriculture shows that less priority has been accorded to this sector. During the Seventh Five Years Plan, the share of plan investment in agriculture and allied activities out of total plan investment was 5.8 % and this got reduced to 3.7 % in the proposed Eleventh Five Year Plan.
The Solution
There can’t one single pill which can solve the Problem, we need step by step approach. And first of this step is Reducing dependence on Rain fed Farming and Monsoon
Step 1
Water Conservation
- Farm Level
- Village Level
- Taluka Level
- State Level
- National Level
TARUN BHARAT SANGH EXPERIMENTS
(TBS) built many check dams in Alwar district, in the 503 sq km watershed of the 45-km-long Arvari river some 238 water harvesting structures had been constructed by the mid-1990s by the 70 villages located within its watershed. The work started in 1986 and, lo and behold, the Arvari, till then a drain that flowed during the monsoon did not dry up but slowly became a perennial river. In 1990, it had a flow till October and, by 1995, it had become perennial. tbs now lays claim to revival of five rivers.
Hydrogeologist R N Athavale who visited the Arvari watershed has made the following estimates based on his experience to explain the revival of rivers. Earlier, only 15 per cent of the rainfall would go into the soil 5 per cent becoming soil moisture and about 10 per cent going deep into the ground, most of it below the bottom of the wells and the level of the Arvari bed because of the depleted groundwater reserve. Therefore, only 5 per cent of the rainfall would slowly seep into the Arvari and villagers could use just about 1 per cent for drinking and irrigation. Now, with check dams, 35 per cent goes into the soil instead of 15 per cent. As a result, the monsoonal runoff to the Arvari has dropped from the earlier 35 per cent of the rainfall to only 10 per cent. But an estimated 22 per cent of the total rainfall now seeps into the Arvari from the recharged groundwater reserve in the post-monsoonal months to give it a perennial flow. The villagers themselves now use about 3 per cent of the total rainfall that falls in the watershed with which they can take two crops a year.
Hydrogeologist R N Athavale who visited the Arvari watershed has made the following estimates based on his experience to explain the revival of rivers. Earlier, only 15 per cent of the rainfall would go into the soil 5 per cent becoming soil moisture and about 10 per cent going deep into the ground, most of it below the bottom of the wells and the level of the Arvari bed because of the depleted groundwater reserve. Therefore, only 5 per cent of the rainfall would slowly seep into the Arvari and villagers could use just about 1 per cent for drinking and irrigation. Now, with check dams, 35 per cent goes into the soil instead of 15 per cent. As a result, the monsoonal runoff to the Arvari has dropped from the earlier 35 per cent of the rainfall to only 10 per cent. But an estimated 22 per cent of the total rainfall now seeps into the Arvari from the recharged groundwater reserve in the post-monsoonal months to give it a perennial flow. The villagers themselves now use about 3 per cent of the total rainfall that falls in the watershed with which they can take two crops a year.
Friday, August 7, 2009
Importance of Ethics in Knowledge Economy
THE IMPORTANCE OF HOLISTIC APPROACH TO HUMAN RESOURCES MANAGEMT IN KNOWLEDGE ECONOMY
Economy based on creating, evaluating, and trading knowledge. The knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy. In the second meaning, more frequently used, it refers to the use of knowledge technologies to produce economic benefits.
Various observers describe today's global economy as one in transition to a "knowledge economy", as an extension of an "information society". The transition requires that the rules and practices that determined success in the industrial economy need rewriting in an interconnected, globalized economy where knowledge resources such as know-how and expertise are as critical as other economic resources.
Concepts
A key concept of this sector of economic activity is that knowledge and education (often referred to as "human capital") can be treated as one of the following two:
§ A business product, as educational and innovative intellectual products and services can be exported for a high value return.
§ A productive asset
Can be defined as
“The concept that supports creation of knowledge by organizational employees and helps and encourages them to transfer and better utilize their knowledge that is in line with company/organization goals”
Driving forces
Commentators suggest there are various interlocking driving forces are changing the rules of business and national competitiveness:
§ Globalization — markets and products are more global.
§ Information technology, which is related to next three:
¨ Information/Knowledge Intensity — efficient production relies on information and know-how; over 70 per cent of workers- in developed economies are information workers; many factory workers use their heads more than their hands.
¨ New Media- New media increases the production and distribution of knowledge which in turn, results in collective intelligence. Existing knowledge becomes much easier to access as a result of networked data-bases which promote online interaction between users and producers.
¨ Computer networking and Connectivity – developments such as the Internet bring the “ Global Village” ever nearer.
As a result, goods and services can be developed, bought, sold, and in many cases even delivered over electronic networks.
¨ Knowledge enhanced products or services can command price premiums over comparable products with low embedded knowledge or knowledge intensity.
¨ Pricing and value depends heavily on context. Thus the same information or knowledge can have vastly different value to different people, or even to the same person at different times.
¨ Knowledge when locked into systems or processes has higher inherent value than when it can "walk out of the door" in people's heads.
¨ Human capital — competencies — are a key component of value in a knowledge-based company, yet few companies report competency levels in annual reports. In contrast, downsizing is often seen as a positive "cost cutting" measure.
¨ Communication is increasingly being seen as fundamental to knowledge flows. Social structures, cultural context and other factors influencing social relations are therefore of fundamental importance to knowledge economies.
Knowledge, productivity, education, and intellectual capital were all regarded as exogenous factors that are, falling outside the system. New Growth Theory is based on work by Stanford economist Paul Romer and others who have attempted to deal with the causes of long-term growth, something that traditional economic models have had difficulty with.
Enhancing human capital is critical for GDP growth
But sustained GDP growth doesn't just happen. In order to make investments in technology, a country must have sufficient human capital. Human capital is the formal education, training and on-the-job learning embodied in the workforce.
What is the knowledge economy? "A knowledge-driven economy is one in which the generation and exploitation of knowledge play the predominant part in the creation of wealth" (United Kingdom Department of Trade and Industry, 1998). In the industrial era, wealth was created by using machines to replace human labour. Many people associate the knowledge economy with high-technology industries such as telecommunications and financial services.
More than 60% of US workers are knowledge workers
Knowledge workers are defined as "symbolic analysts", workers who manipulate symbols rather than machines. They include architects and bank workers, fashion designers and pharmaceutical researchers, teachers and policy analysts. In advanced economies such as the US, more than 60 per cent of workers are knowledge workers.
What Is Knowledge?
Unlike capital and labour, knowledge strives to be a public good (or what economists call "non-rivalrous"). Once knowledge is discovered and made public, there is zero marginal cost to sharing it with more users. Secondly, the creator of knowledge finds it hard to prevent others from using it. Instruments such as trade secrets protection and patents, copyright, and trademarks provide the creator with some protection.
Know-why and know-who matters more than know-what
There are different kinds of knowledge that can usefully be distinguished. Know-what, or knowledge about facts, is nowadays diminishing in relevance. Know-why is knowledge about the natural world, society, and the human mind. Know-who refers to the world of social relations and is knowledge of who knows what and who can do what. Knowing key people is sometimes more important to innovation than knowing scientific principles. Know-where and know-when are becoming increasingly important in a flexible and dynamic economy. Know-how refers to skills, the ability to do things on a practical level.
Knowledge gained by experience is as important as formal education and training
The implication of the knowledge economy is that there is no alternative way to prosperity than to make learning and knowledge-creation of prime importance. There are different kinds of knowledge. "Tacit knowledge" is knowledge gained from experience, rather than that instilled by formal education and training. In the knowledge economy tacit knowledge is as important as formal, codified, structured and explicit knowledge.
The Importance of Intellectual Capital
Intellectual capital is a firm's source of competitive advantage
To become knowledge driven, companies must learn how to recognise changes in intellectual capital in the worth of their business and ultimately in their balance sheets. A firm's intellectual capital - employees' knowledge, brainpower, know-how, and processes, as well as their ability to continuously improve those processes - is a source of competitive advantage.
The Importance of ICT
ICT releases people's creative potential and knowledge
What about information and communication technologies (ICT)? ICT are the enablers of change. They do not by themselves create transformations in society. ICT are best regarded as the facilitators of knowledge creation in innovative societies (OECD, 1996). The new economics looks at ICT not as drivers of change but as tools for releasing the creative potential and knowledge embodied in people.
The New Economics of Information
The rate of technological change has greatly increased over the past thirty years. Three laws have combined to explain the economics of information (Gilder, 1994). Moore's Law holds that the maximum processing power of a microchip at a given price doubles roughly every 18 months. In other words, computers become faster, but the price of a given level of computing power halves. Gilder's Law - the total bandwidth of communication systems will triple every 12 months - describes a similar decline in the unit cost of the net. Metcalfe's Law holds that the value of a network is proportional to the square of the number of nodes. So, as a network grows, the value of being connected to it grows exponentially, while the cost per user remains the same or even reduces.
While Metcalfe's Law has been applied to the Internet, it is also true of telephone systems. Gordon Moore first formulated Moore's Law in the early 1970s. There can be no doubt that the cycle of technology development and implementation is accelerating and that we are moving inexorably onward, out of the Industrial Age and into the Information Age.
Human Capital and Knowledge Management
The emergence of the global economy, monumental improvement in information and communication technology, and the emergence of the knowledge economy are among the forces that are resulting in the transforming the Human Resources (HR) function. There is a growing consensus that human capital (HC) is critical to an organization’s success and that the HR focus must be more strategic in the new knowledge-based economy (K-economy) era. Knowledge economy and emphasis on HC provides opportunity for HR function to fundamentally alter its role in the corporation and become true value-adding partners. To achieve this HR, must understand the most valuable of organisational knowledge is embedded in the HC and it must creatively aid in its sustainable exploitation.
The importance of HR and their management is ever more critical to organizations in the K-economy. Modern organizations are under relentless pressures to change. It is argued that organizations had to focus on the value of investments in HR as a major source of competitive advantage (Guest, 1990; Schuler & Jackson, 2005) in the face of structural changes in the organizations. HR are seen as the foremost intangible assets which composes a firm’s core competence and crucial to solving organizational problems and increasing performance (Rowley & Saaidah, 2007). This raises the question of how HR should be managed in the context of the K-economy to generate superior value including the issues organisational architecture of HR management (HRM) function.
The new strategic roles require a major shift to managing organizational capabilities, managing relationships, and managing learning and knowledge (Coates, 2001; Lengnick-Hall & Lengnick-Hall, 2003; Saint-Onge, 2001; Ulrich, 1997). Gloet (2004) submitted that HRM the revitalisation of the HR function requires the changes in roles, responsibilities, strategic focus, and learning. The new HR roles with particular reference to the knowledge economy have been outlined by Lengnick-Hall & Lengnick-Hall (2003) as one of HC steward, knowledge facilitator, relationship builder, and deployment specialist. Adequate HC must be channelled into the organisation with new competitive arrangements that caters the changing needs of the k-workers. To develop and exploit knowledge in an ever changing environment, HC must be constantly refurbished through active and ongoing individual, group and organisational learning Fitz-enz (in Chatzkel, 2002). Traditional organised and formalised learning is necessary but highly inadequate to cope with the learning needs in a k-economy. Additionally, HR must seek to develop relationship with not only the internal stakeholders but also supplier, intermediaries, buyers, and regulators to facilitate capabilities are distributed across these networks to maintain quality of services. Finally, HR, according to Lengnick-Hall and Lengnick-Hall (2003) must be able to deploy resources across networks to maintain service levels by process redesign and also improvements.
HRM AND KNOWLEDGE MANAGEMENT IN K-ECONOMY
In the K-economy, HR and HRM will face a number of challenges. Firstly, HR must face the rather daunting task of revising and causing the revision of the conventional mental models and paradigms of work and workers. According to Senge (1995), the mental models underpin cognition, affect and action. Unless, the paradigms are changed, the old HR will not have an easy time transforming the organisation for the new economy. In the K- economy, the new HC i.e. the K-workers must be reconceived. The inappropriability of the knowledge embodied in the HC requires new forms of control and motivation (Soo, Devinney, Midley & Deering, 2002). The meaning and understanding of work must be accordingly revised. Active advocacy may be required to ensure the legal and political institutions recognise and facilitate the new management.
Secondly, HRM will be challenged to share the functional knowledge of and about the HR systems with the rest of the organisation. Functional units with organisations are repositories of both specialized explicit and tacit knowledge that collectively forms the store of organisational knowledge. The bane of knowledge management (KM) in most organisations is the lack of sharing and exchange of this critical information with others within the organisation. Departmentalism and functional silos have limited the contribution of various functional knowledge to business success. Strategic HRM calls for greater networking between HR and line units within organisations to facilitate the transfer of knowledge in both directions. Strategic HRM (SHRM) proponents have urged HR to maintain active link with the line to appreciate and develop amore business oriented mindset, hitherto missing in the professionally driven and introverted HR function (Guest, 1990; Wright, McMahan, Snell, & Gerhart, 2001). Knowledge transfer of the tacit type require interaction and exchange as the social context is key to effective transfer of HR or line knowledge (Roberts, 2001:102).
Thirdly, as part of the overall development of a strategic role and mindset, HR is advised to empower the line units with HR decisions (Ulrich, 1997). To make this empowerment work, HR must not only render many aspects of the functional knowledge explicit for line units to absorb the new knowledge efficiently (i.e. manuals, SOP, guidelines etc), it must also seek to transfer the corresponding tacit knowledge (Polanyi, 1966). Empowerment will falter if the empowered feel ill-prepared to reliably execute the HR authority devolved to them (Hazman, 1999). Effective transfer of explicit and also the tacit aspects of HR knowledge will ameliorate anxiety of about the new roles and develop greater willingness toward empowerment (Zahra & George, 2002). The exchange of the tacit elements will also diminish fears that the line units will place production and business needs ahead of human care and compassion and risk running foul of the statutory requirements.
Fourthly, HR must develop systems, policies and practices that cohere with the knowledge strategy of the new economy organisations. Lee’s (1999) taxonomy of HR policies for knowledge based firms provides a conceptual guide for practitioners. Haesli and Boxall’s (2005) case study of the complementarity of HR policies and knowledge strategy (codification vs. personalisation) is yet another example of HR facilitating a KM strategy.
Why are ethics important in Knowledge Economy
Recent events in corporate America have demonstrated the destructive effects that occur when the leadership of a company does not behave ethically. One might wonder why highly educated, successful, and business savvy corporate professionals at Enron, Tyco, WorldCom, and Adelphia got themselves into such a big mess. The answer lies in a profound lack of ethics.
Running a business ethically is good for business. However, "business ethics" if properly interpreted means the standards of conduct of individual business people, not necessarily the standards of business as a whole.
Applying ethics in business makes good sense. A business that behaves ethically induces other business associates to behave ethically as well. If a company (or a manager) exercises particular care in meeting all responsibilities to employees, customers and suppliers it usually is awarded with a high degree of loyalty, honesty, quality and productivity.
The best way to promote ethical behavior is by setting a good personal example. Teaching an employee ethics is not always effective. One can explain and define ethics to an adult, but understanding ethics does not necessarily result in behaving ethically. Personal values and ethical behavior is taught at an early age by parents and educators.
Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build. A business or society that lacks ethical principles is bound to fail sooner or later.
Ethics refers to a code of conduct that guides an individual in dealing with others. Business Ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in business environment. It deals with issues regarding the moral and ethical rights, duties and corporate governance between a company and its shareholders, employees, customers, media, government, suppliers and dealers. Henry Ford said, "Business that makes noting but money is a poor kind of business".
Ethics is related to all disciplines of management like accounting information, human resource management, sales and marketing, production, intellectual property knowledge and skill, international business and economic system. As said by Joe Paterno once that success without honor is an unseasoned dish. It will satisfy your hunger, but won't taste good. In business world the organization's culture sets standards for determining the difference between good or bad, right or wrong, fair or unfair.
Corporate Governance in Knowledge Economy
Corporate governance may be regarded as the moral or ethical or value framework under which corporate decisions are taken. Corporate managements generally have been concerned with using the physical, financial and human resources available with the management to get the best possible results in the interests of the stakeholders and, particularly, shareholders. It is quite possible that in the effort at arriving the best possible financial results or business results there could be attempts at doing things which are verging on the unlawful or even unlawful. There is also the possibility of grey areas where an act is not unlawful but considered unethical. These raise moral issues.
The basic issue of what will be the ethical issues in corporate governance requires absolute integrity in all operations. Integrity in the wider sense covers:
· Financial integrity
· Moral integrity
· Intellectual integrity
In corporate governance financial integrity that assumes greatest importance. This would mean that the directors and all concerned should be open and straight about issues where there is conflict of interest involved in financial decision making. When it comes to even the purchase procedures, there is need for greater transparency.
Corporate governance and ethical behaviour have a number of advantages. Firstly, they help to build good brand image for the organisation. Once there is a brand image, there is greater loyalty, once there is greater loyalty, there is greater commitment to the employees, and when there is a commitment to employees, the employees will become have more incentive which drives creativity. In a competitive environment, creativity is vital to get a competitive edge.
Business Definition for: Corporate Social Responsibility
A voluntary approach that a business enterprise takes to meet or exceed stakeholder expectations by integrating social, ethical, and environmental concerns together with the usual measures of revenue, profit, and legal obligation
Corporate Social Responsibility - What does it mean?
CSR is about how companies manage the business processes to produce an overall positive impact on society.
The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts, used the following definition. "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large"
The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions as different as "CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government" from Ghana, through to "CSR is about business giving back to society" from the Phillipines.
The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because:
Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society.
When times get hard, there is the incentive to practice CSR more and better - if it is a philanphropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove.
Ethical Audit
Ethical auditing is a process which measures the internal and external consistency of an organisation's values base. The key points are that it is value-linked, and that it incorporates a stakeholder approach. Its objectives are two-fold: It is intended for accountability and transparency towards stakeholders and it is intended for internal control, to meet the ethical objectives of the organisation.
The value of the ethical audit is that it enables the company to see itself through a variety of lenses: it captures the company's ethical profile. Companies recognise the importance of their financial profile for their investors, of their service profile for their customers, and of their profile as an employer for their current and potential employees. An ethical profile brings together all of the factors which affect a company's reputation, by examining the way in which it does business. By taking a picture of the value system at a given point in time, it can:
- clarify the actual values to which the company operates
- provide a baseline by which to measure future improvement
- learn how to meet any societal expectations which are not currently being met
- give stakeholders the opportunity to clarify their expectations of the company's behaviour
- identify specific problem areas within the company
- learn about the issues which motivate employees
- identify general areas of vulnerability, particularly related to lack of openness
The findings of the audit give a snapshot, a view at a particular point in time, of the company's ethics. In the case of a first audit, they will necessarily be of less value for comparison purposes than would future audits, but they ought to give a clear picture of both values and vulnerabilities. An audit report is a factual document. Obviously it reaches a judgement, but it is not intended to be judgmental, in the sense of condemning a company for moral failure. The assumption which EIBE would make is that any company which commissioned an ethical audit is concerned about its moral standing and therefore intends to take action, where necessary, if moral failings become apparent. This is a stance which is praiseworthy and should be supported: the report's findings will give the company the knowledge necessary to take appropriate action. In this respect, the EIBE ethical audit is very far removed from the original social audits which were carried out on companies in the 1960s. These were undertaken by outsiders critical of company behaviour, who were seeking ammunition to bring external pressure on the company to change.
We believe that ethical audit will have particular benefits for multinational companies, but it could also be of great value in take-over and merger situations, especially ones which involve partners from different countries where there may be conflicting value systems.Other benefits include enhanced corporate reputation, making the company fraud resistant, and improving staff morale and motivation.
The technology of ethical auditing is still in its infancy. The full payback is not yet known. The benefits listed here derive from a number of experiences of consultancy work by members of the European Institute for Business Ethics, plus benefits about which we have been told by colleagues elsewhere. Our experiences have convinced us that this is one of the most exciting developments in management in decades - and that it is not simply another fad. Values are the basis of all organisational behaviour, and focusing on values will enable management to create an organisation which is excellent in every possible sense.
Importance of ethics in present global economy
The importance of holistic approach to human resources development has became more important in knowledge economy. If we look at financial crisis, it is handy work of very few unethical and corrupt people in the system. At AIG it one derivatives trading department which is responsible for the mess, Maddoff, Standford, then Societal General, Lehman, Satyam, Bearings, these are the few names. Names are not important but their corrupt attitude and behavior which has made this financial crisis. In this economy where one singe person can play havoc across the world we need more prudent and ethical mangers. If we see the 1996 crash of asian currencies, we can blame on one man for playing and manipulating the currency market. This is terrorism where lives of millions of peoples, their hard earn money and retirement benefits vanish. This must be very strongly and considered as terrorist act, this is terrorism by all means.
This financial crisis is all about the behaviors of few individuals at the helm of organization has made whole organization go down. Their greed and corrupt, unethical behavior has made the life miserable for millions of people.
In this global knowledge economy and global village where one individual can play havoc we need people who are socially responsible, transparent, and ethical. Who will consider themselves responsible for all stake holders, i.e. society at large? “This is what exactly I mean by holistic human resources management.”
Holistic Approach to the Human Resources Development
“And the Firmament has He raised high, and He has set up the Balance (of Justice), In order that ye may not transgress (due) balance, so establish weight with justice and fall not short in the balance.” Quran Surah Rahman: Ayah 7-9:
Allah has created this world in balance and justice but our deeds messes it. These deeds vary from personal life, our social behaviors, and our economic and political activities. If we see at the financial crisis world is in, this is very clear example”. Today people wants to transfer the risk, this will never work. What we are in “Financial Crisis” is ultimately result of not sharing the risk but transferring it to other. This is because we transgressed our limits on balance and justice. If we want to change, we need holistic approach to change our lives, then and then only justice and peace can come to the world. If we want to change this world, it must come from within first.
The Islamic Approach to Ethics in Financial Transaction
Quran 2:188
And do not eat up your property among yourselves for vanities, nor use it as bait for the judges, with intent that ye may eat up wrongfully and knowingly a little of (other) people's property.
The following was revealed about 'Abdan Ibn Ashwa' [al-Hadrami] and Imra' al-Qays [Ibn 'Abis]: (And eat not up your property among yourselves in vanity) through oppression, theft, usurpation, perjury, and other forbidden means, (nor seek by it to gain the hearing of the judges that you may knowingly devour a portion of the property of others wrongfully) through perjury; Imra' al-Qays admitted taking the money when this verse was revealed.
Tafsir Ibn 'Abbas, trans. Mokrane Guezzou
Tafsir Ibn Kathir
And eat up not one another's property unjustly (in any illegal way, e.g., stealing, robbing, deceiving), nor give bribery to the rulers (judges before presenting your cases) that you may knowingly eat up a part of the property of others sinfully.) Tafsir Ibn Kathir
`Ali bin Abu Talhah reported that Ibn `Abbas said, "This (Ayah 2:188) is about the indebted person when there is no evidence of the loan. So he denies taking the loan and the case goes to the authorities, even though he knows that it is not his money and that he is a sinner, consuming what is not allowed for him.'' This opinion was also reported from Mujahid, Sa`id bin Jubayr, `Ikrimah, Al-Hasan, Qatadah, As-Suddi, Muqatil bin Hayan and `Abdur-Rahman bin Zayd bin Aslam. They all stated, "Do not dispute when you know that you are being unjust.''
It is reported in the Two Sahihs that Umm Salamah narrated that Allah's Messenger said:
(I am only human! You people present your cases to me, and as some of you may be more eloquent and persuasive in presenting his argument, I might issue a judgment in his benefit. So, if I give a Muslim's right to another, I am really giving him a piece of fire; so he should not take it.)
The Ayah and the Hadith prove that the judgment of the authorities in any case does not change the reality of the truth. Hence, the ruling does not allow what is in fact prohibited or prohibit what is in fact allowed. It is only applicable in that case. So if the ruling agrees with the truth, then there is no harm in this case. Otherwise, the judge will acquire his reward, while the cheater will acquire the evil burden.
This is why Allah said:
(And eat up not one another's property unjustly, nor give bribery to the rulers (judges before presenting your cases) that you may knowingly eat up a part of the property of others sinfully.) meaning, `While you know the falsehood of what you claim. ' Qatadah said, "O son of Adam! Know that the judge's ruling does not allow you what is prohibited or prohibit you from what is allowed. The judge only rules according to his best judgment and according to the testimony of the witnesses. The judge is only human and is bound to make mistakes. Know that if the judge erroneously rules in some one's favor, then that person will still encounter the dispute when the disputing parties meet Allah on the Day of Resurrection. Then, the unjust person will be judged swiftly and precisely with that which will surpass whatever he acquired by the erroneous judgment he received in the life of this world.''
Quran 4:29
O ye who believe! Eat not up your property among yourselves in vanities: But let there be amongst you Traffic and trade by mutual good-will: Nor kill (or destroy) yourselves: for verily Allah hath been to you Most Merciful!
(O ye who believe! Squander not your wealth among yourselves in vanity) through transgression, usurpation, false testimony, lying in oath or through other unlawful means, (except it be a trade by mutual consent) except if there is mutual agreement between you in the course of buying and selling or in abating the price in selling (Muhabat), (and kill not one another) without justified right. (Lo! Allah is ever Merciful unto you) when He forbade you to kill one another without such a justification. (Tafsir Ibn 'Abbas, trans. Mokrane Guezzou)
Tafsir Ibn Kathir
Quran 4:29. O you who believe! Eat not up your property among yourselves unjustly except it be a trade amongst you, by mutual consent. And do not kill yourselves (nor kill one another). Surely, Allah is Most Merciful to you.) Prohibiting Unlawfully Earned Money
Allah, the Exalted and Most Honored, prohibits His believing servants from illegally acquiring each other's property using various dishonest methods such as Riba, gambling and other wicked methods that appear to be legal, but Allah knows that, in reality, those involved seek to deal in interest. Ibn Jarir recorded that Ibn `Abbas commented on a man who buys a garment, saying that if he likes it he will keep it, or he will return it along with an extra Dirham, "This is what Allah meant, when He said, o (Eat not up your property among yourselves unjustly.'') `Ali bin Abi Talhah reported that Ibn `Abbas said, "When Allah sent down, (O you who believe! Eat not up your property among yourselves unjustly) some Muslims said, `Allah has forbidden us from eating up each other's property unjustly, and food is our best property. Therefore, none among us is allowed to eat from anyone else's food.' After that Allah sent down, (There is no restriction on the blind) (until the end of the Ayah). ﴿24:61 ﴾.''' Qatadah said similarly. Allah's statement, (except it be a trade amongst you, by mutual consent.) means, do not revert to illegal ways and means to acquire money. However, there is no harm in commercial transactions that transpire between the buyer and the seller with mutual consent, so that money is legally earned from these transactions. Mujahid said that (except it be a trade amongst you, by mutual consent.) means, "By selling and buying, or giving someone a gift.'' Ibn Jarir recorded this statement. The Option to buy or Sell before parting is Part of `Mutual Consent' in Trading Mutual agreement in various transactions is attained when both parties have the right to uphold or dissolve the agreement before they part. In the Two Sahihs, it is recorded that the Messenger of Allah said, (The seller and the buyer retain the (right to change their mind) as long as they have not parted.) Al-Bukhari's wording for this Hadith reads, (When two men conduct a transaction, they retain their (right to change their mind) as long as they have not parted.)
Economy based on creating, evaluating, and trading knowledge. The knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy. In the second meaning, more frequently used, it refers to the use of knowledge technologies to produce economic benefits.
Various observers describe today's global economy as one in transition to a "knowledge economy", as an extension of an "information society". The transition requires that the rules and practices that determined success in the industrial economy need rewriting in an interconnected, globalized economy where knowledge resources such as know-how and expertise are as critical as other economic resources.
Concepts
A key concept of this sector of economic activity is that knowledge and education (often referred to as "human capital") can be treated as one of the following two:
§ A business product, as educational and innovative intellectual products and services can be exported for a high value return.
§ A productive asset
Can be defined as
“The concept that supports creation of knowledge by organizational employees and helps and encourages them to transfer and better utilize their knowledge that is in line with company/organization goals”
Driving forces
Commentators suggest there are various interlocking driving forces are changing the rules of business and national competitiveness:
§ Globalization — markets and products are more global.
§ Information technology, which is related to next three:
¨ Information/Knowledge Intensity — efficient production relies on information and know-how; over 70 per cent of workers- in developed economies are information workers; many factory workers use their heads more than their hands.
¨ New Media- New media increases the production and distribution of knowledge which in turn, results in collective intelligence. Existing knowledge becomes much easier to access as a result of networked data-bases which promote online interaction between users and producers.
¨ Computer networking and Connectivity – developments such as the Internet bring the “ Global Village” ever nearer.
As a result, goods and services can be developed, bought, sold, and in many cases even delivered over electronic networks.
¨ Knowledge enhanced products or services can command price premiums over comparable products with low embedded knowledge or knowledge intensity.
¨ Pricing and value depends heavily on context. Thus the same information or knowledge can have vastly different value to different people, or even to the same person at different times.
¨ Knowledge when locked into systems or processes has higher inherent value than when it can "walk out of the door" in people's heads.
¨ Human capital — competencies — are a key component of value in a knowledge-based company, yet few companies report competency levels in annual reports. In contrast, downsizing is often seen as a positive "cost cutting" measure.
¨ Communication is increasingly being seen as fundamental to knowledge flows. Social structures, cultural context and other factors influencing social relations are therefore of fundamental importance to knowledge economies.
Knowledge, productivity, education, and intellectual capital were all regarded as exogenous factors that are, falling outside the system. New Growth Theory is based on work by Stanford economist Paul Romer and others who have attempted to deal with the causes of long-term growth, something that traditional economic models have had difficulty with.
Enhancing human capital is critical for GDP growth
But sustained GDP growth doesn't just happen. In order to make investments in technology, a country must have sufficient human capital. Human capital is the formal education, training and on-the-job learning embodied in the workforce.
What is the knowledge economy? "A knowledge-driven economy is one in which the generation and exploitation of knowledge play the predominant part in the creation of wealth" (United Kingdom Department of Trade and Industry, 1998). In the industrial era, wealth was created by using machines to replace human labour. Many people associate the knowledge economy with high-technology industries such as telecommunications and financial services.
More than 60% of US workers are knowledge workers
Knowledge workers are defined as "symbolic analysts", workers who manipulate symbols rather than machines. They include architects and bank workers, fashion designers and pharmaceutical researchers, teachers and policy analysts. In advanced economies such as the US, more than 60 per cent of workers are knowledge workers.
What Is Knowledge?
Unlike capital and labour, knowledge strives to be a public good (or what economists call "non-rivalrous"). Once knowledge is discovered and made public, there is zero marginal cost to sharing it with more users. Secondly, the creator of knowledge finds it hard to prevent others from using it. Instruments such as trade secrets protection and patents, copyright, and trademarks provide the creator with some protection.
Know-why and know-who matters more than know-what
There are different kinds of knowledge that can usefully be distinguished. Know-what, or knowledge about facts, is nowadays diminishing in relevance. Know-why is knowledge about the natural world, society, and the human mind. Know-who refers to the world of social relations and is knowledge of who knows what and who can do what. Knowing key people is sometimes more important to innovation than knowing scientific principles. Know-where and know-when are becoming increasingly important in a flexible and dynamic economy. Know-how refers to skills, the ability to do things on a practical level.
Knowledge gained by experience is as important as formal education and training
The implication of the knowledge economy is that there is no alternative way to prosperity than to make learning and knowledge-creation of prime importance. There are different kinds of knowledge. "Tacit knowledge" is knowledge gained from experience, rather than that instilled by formal education and training. In the knowledge economy tacit knowledge is as important as formal, codified, structured and explicit knowledge.
The Importance of Intellectual Capital
Intellectual capital is a firm's source of competitive advantage
To become knowledge driven, companies must learn how to recognise changes in intellectual capital in the worth of their business and ultimately in their balance sheets. A firm's intellectual capital - employees' knowledge, brainpower, know-how, and processes, as well as their ability to continuously improve those processes - is a source of competitive advantage.
The Importance of ICT
ICT releases people's creative potential and knowledge
What about information and communication technologies (ICT)? ICT are the enablers of change. They do not by themselves create transformations in society. ICT are best regarded as the facilitators of knowledge creation in innovative societies (OECD, 1996). The new economics looks at ICT not as drivers of change but as tools for releasing the creative potential and knowledge embodied in people.
The New Economics of Information
The rate of technological change has greatly increased over the past thirty years. Three laws have combined to explain the economics of information (Gilder, 1994). Moore's Law holds that the maximum processing power of a microchip at a given price doubles roughly every 18 months. In other words, computers become faster, but the price of a given level of computing power halves. Gilder's Law - the total bandwidth of communication systems will triple every 12 months - describes a similar decline in the unit cost of the net. Metcalfe's Law holds that the value of a network is proportional to the square of the number of nodes. So, as a network grows, the value of being connected to it grows exponentially, while the cost per user remains the same or even reduces.
While Metcalfe's Law has been applied to the Internet, it is also true of telephone systems. Gordon Moore first formulated Moore's Law in the early 1970s. There can be no doubt that the cycle of technology development and implementation is accelerating and that we are moving inexorably onward, out of the Industrial Age and into the Information Age.
Human Capital and Knowledge Management
The emergence of the global economy, monumental improvement in information and communication technology, and the emergence of the knowledge economy are among the forces that are resulting in the transforming the Human Resources (HR) function. There is a growing consensus that human capital (HC) is critical to an organization’s success and that the HR focus must be more strategic in the new knowledge-based economy (K-economy) era. Knowledge economy and emphasis on HC provides opportunity for HR function to fundamentally alter its role in the corporation and become true value-adding partners. To achieve this HR, must understand the most valuable of organisational knowledge is embedded in the HC and it must creatively aid in its sustainable exploitation.
The importance of HR and their management is ever more critical to organizations in the K-economy. Modern organizations are under relentless pressures to change. It is argued that organizations had to focus on the value of investments in HR as a major source of competitive advantage (Guest, 1990; Schuler & Jackson, 2005) in the face of structural changes in the organizations. HR are seen as the foremost intangible assets which composes a firm’s core competence and crucial to solving organizational problems and increasing performance (Rowley & Saaidah, 2007). This raises the question of how HR should be managed in the context of the K-economy to generate superior value including the issues organisational architecture of HR management (HRM) function.
The new strategic roles require a major shift to managing organizational capabilities, managing relationships, and managing learning and knowledge (Coates, 2001; Lengnick-Hall & Lengnick-Hall, 2003; Saint-Onge, 2001; Ulrich, 1997). Gloet (2004) submitted that HRM the revitalisation of the HR function requires the changes in roles, responsibilities, strategic focus, and learning. The new HR roles with particular reference to the knowledge economy have been outlined by Lengnick-Hall & Lengnick-Hall (2003) as one of HC steward, knowledge facilitator, relationship builder, and deployment specialist. Adequate HC must be channelled into the organisation with new competitive arrangements that caters the changing needs of the k-workers. To develop and exploit knowledge in an ever changing environment, HC must be constantly refurbished through active and ongoing individual, group and organisational learning Fitz-enz (in Chatzkel, 2002). Traditional organised and formalised learning is necessary but highly inadequate to cope with the learning needs in a k-economy. Additionally, HR must seek to develop relationship with not only the internal stakeholders but also supplier, intermediaries, buyers, and regulators to facilitate capabilities are distributed across these networks to maintain quality of services. Finally, HR, according to Lengnick-Hall and Lengnick-Hall (2003) must be able to deploy resources across networks to maintain service levels by process redesign and also improvements.
HRM AND KNOWLEDGE MANAGEMENT IN K-ECONOMY
In the K-economy, HR and HRM will face a number of challenges. Firstly, HR must face the rather daunting task of revising and causing the revision of the conventional mental models and paradigms of work and workers. According to Senge (1995), the mental models underpin cognition, affect and action. Unless, the paradigms are changed, the old HR will not have an easy time transforming the organisation for the new economy. In the K- economy, the new HC i.e. the K-workers must be reconceived. The inappropriability of the knowledge embodied in the HC requires new forms of control and motivation (Soo, Devinney, Midley & Deering, 2002). The meaning and understanding of work must be accordingly revised. Active advocacy may be required to ensure the legal and political institutions recognise and facilitate the new management.
Secondly, HRM will be challenged to share the functional knowledge of and about the HR systems with the rest of the organisation. Functional units with organisations are repositories of both specialized explicit and tacit knowledge that collectively forms the store of organisational knowledge. The bane of knowledge management (KM) in most organisations is the lack of sharing and exchange of this critical information with others within the organisation. Departmentalism and functional silos have limited the contribution of various functional knowledge to business success. Strategic HRM calls for greater networking between HR and line units within organisations to facilitate the transfer of knowledge in both directions. Strategic HRM (SHRM) proponents have urged HR to maintain active link with the line to appreciate and develop amore business oriented mindset, hitherto missing in the professionally driven and introverted HR function (Guest, 1990; Wright, McMahan, Snell, & Gerhart, 2001). Knowledge transfer of the tacit type require interaction and exchange as the social context is key to effective transfer of HR or line knowledge (Roberts, 2001:102).
Thirdly, as part of the overall development of a strategic role and mindset, HR is advised to empower the line units with HR decisions (Ulrich, 1997). To make this empowerment work, HR must not only render many aspects of the functional knowledge explicit for line units to absorb the new knowledge efficiently (i.e. manuals, SOP, guidelines etc), it must also seek to transfer the corresponding tacit knowledge (Polanyi, 1966). Empowerment will falter if the empowered feel ill-prepared to reliably execute the HR authority devolved to them (Hazman, 1999). Effective transfer of explicit and also the tacit aspects of HR knowledge will ameliorate anxiety of about the new roles and develop greater willingness toward empowerment (Zahra & George, 2002). The exchange of the tacit elements will also diminish fears that the line units will place production and business needs ahead of human care and compassion and risk running foul of the statutory requirements.
Fourthly, HR must develop systems, policies and practices that cohere with the knowledge strategy of the new economy organisations. Lee’s (1999) taxonomy of HR policies for knowledge based firms provides a conceptual guide for practitioners. Haesli and Boxall’s (2005) case study of the complementarity of HR policies and knowledge strategy (codification vs. personalisation) is yet another example of HR facilitating a KM strategy.
Why are ethics important in Knowledge Economy
Recent events in corporate America have demonstrated the destructive effects that occur when the leadership of a company does not behave ethically. One might wonder why highly educated, successful, and business savvy corporate professionals at Enron, Tyco, WorldCom, and Adelphia got themselves into such a big mess. The answer lies in a profound lack of ethics.
Running a business ethically is good for business. However, "business ethics" if properly interpreted means the standards of conduct of individual business people, not necessarily the standards of business as a whole.
Applying ethics in business makes good sense. A business that behaves ethically induces other business associates to behave ethically as well. If a company (or a manager) exercises particular care in meeting all responsibilities to employees, customers and suppliers it usually is awarded with a high degree of loyalty, honesty, quality and productivity.
The best way to promote ethical behavior is by setting a good personal example. Teaching an employee ethics is not always effective. One can explain and define ethics to an adult, but understanding ethics does not necessarily result in behaving ethically. Personal values and ethical behavior is taught at an early age by parents and educators.
Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build. A business or society that lacks ethical principles is bound to fail sooner or later.
Ethics refers to a code of conduct that guides an individual in dealing with others. Business Ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in business environment. It deals with issues regarding the moral and ethical rights, duties and corporate governance between a company and its shareholders, employees, customers, media, government, suppliers and dealers. Henry Ford said, "Business that makes noting but money is a poor kind of business".
Ethics is related to all disciplines of management like accounting information, human resource management, sales and marketing, production, intellectual property knowledge and skill, international business and economic system. As said by Joe Paterno once that success without honor is an unseasoned dish. It will satisfy your hunger, but won't taste good. In business world the organization's culture sets standards for determining the difference between good or bad, right or wrong, fair or unfair.
Corporate Governance in Knowledge Economy
Corporate governance may be regarded as the moral or ethical or value framework under which corporate decisions are taken. Corporate managements generally have been concerned with using the physical, financial and human resources available with the management to get the best possible results in the interests of the stakeholders and, particularly, shareholders. It is quite possible that in the effort at arriving the best possible financial results or business results there could be attempts at doing things which are verging on the unlawful or even unlawful. There is also the possibility of grey areas where an act is not unlawful but considered unethical. These raise moral issues.
The basic issue of what will be the ethical issues in corporate governance requires absolute integrity in all operations. Integrity in the wider sense covers:
· Financial integrity
· Moral integrity
· Intellectual integrity
In corporate governance financial integrity that assumes greatest importance. This would mean that the directors and all concerned should be open and straight about issues where there is conflict of interest involved in financial decision making. When it comes to even the purchase procedures, there is need for greater transparency.
Corporate governance and ethical behaviour have a number of advantages. Firstly, they help to build good brand image for the organisation. Once there is a brand image, there is greater loyalty, once there is greater loyalty, there is greater commitment to the employees, and when there is a commitment to employees, the employees will become have more incentive which drives creativity. In a competitive environment, creativity is vital to get a competitive edge.
Business Definition for: Corporate Social Responsibility
A voluntary approach that a business enterprise takes to meet or exceed stakeholder expectations by integrating social, ethical, and environmental concerns together with the usual measures of revenue, profit, and legal obligation
Corporate Social Responsibility - What does it mean?
CSR is about how companies manage the business processes to produce an overall positive impact on society.
The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts, used the following definition. "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large"
The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions as different as "CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government" from Ghana, through to "CSR is about business giving back to society" from the Phillipines.
The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because:
Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society.
When times get hard, there is the incentive to practice CSR more and better - if it is a philanphropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove.
Ethical Audit
Ethical auditing is a process which measures the internal and external consistency of an organisation's values base. The key points are that it is value-linked, and that it incorporates a stakeholder approach. Its objectives are two-fold: It is intended for accountability and transparency towards stakeholders and it is intended for internal control, to meet the ethical objectives of the organisation.
The value of the ethical audit is that it enables the company to see itself through a variety of lenses: it captures the company's ethical profile. Companies recognise the importance of their financial profile for their investors, of their service profile for their customers, and of their profile as an employer for their current and potential employees. An ethical profile brings together all of the factors which affect a company's reputation, by examining the way in which it does business. By taking a picture of the value system at a given point in time, it can:
- clarify the actual values to which the company operates
- provide a baseline by which to measure future improvement
- learn how to meet any societal expectations which are not currently being met
- give stakeholders the opportunity to clarify their expectations of the company's behaviour
- identify specific problem areas within the company
- learn about the issues which motivate employees
- identify general areas of vulnerability, particularly related to lack of openness
The findings of the audit give a snapshot, a view at a particular point in time, of the company's ethics. In the case of a first audit, they will necessarily be of less value for comparison purposes than would future audits, but they ought to give a clear picture of both values and vulnerabilities. An audit report is a factual document. Obviously it reaches a judgement, but it is not intended to be judgmental, in the sense of condemning a company for moral failure. The assumption which EIBE would make is that any company which commissioned an ethical audit is concerned about its moral standing and therefore intends to take action, where necessary, if moral failings become apparent. This is a stance which is praiseworthy and should be supported: the report's findings will give the company the knowledge necessary to take appropriate action. In this respect, the EIBE ethical audit is very far removed from the original social audits which were carried out on companies in the 1960s. These were undertaken by outsiders critical of company behaviour, who were seeking ammunition to bring external pressure on the company to change.
We believe that ethical audit will have particular benefits for multinational companies, but it could also be of great value in take-over and merger situations, especially ones which involve partners from different countries where there may be conflicting value systems.Other benefits include enhanced corporate reputation, making the company fraud resistant, and improving staff morale and motivation.
The technology of ethical auditing is still in its infancy. The full payback is not yet known. The benefits listed here derive from a number of experiences of consultancy work by members of the European Institute for Business Ethics, plus benefits about which we have been told by colleagues elsewhere. Our experiences have convinced us that this is one of the most exciting developments in management in decades - and that it is not simply another fad. Values are the basis of all organisational behaviour, and focusing on values will enable management to create an organisation which is excellent in every possible sense.
Importance of ethics in present global economy
The importance of holistic approach to human resources development has became more important in knowledge economy. If we look at financial crisis, it is handy work of very few unethical and corrupt people in the system. At AIG it one derivatives trading department which is responsible for the mess, Maddoff, Standford, then Societal General, Lehman, Satyam, Bearings, these are the few names. Names are not important but their corrupt attitude and behavior which has made this financial crisis. In this economy where one singe person can play havoc across the world we need more prudent and ethical mangers. If we see the 1996 crash of asian currencies, we can blame on one man for playing and manipulating the currency market. This is terrorism where lives of millions of peoples, their hard earn money and retirement benefits vanish. This must be very strongly and considered as terrorist act, this is terrorism by all means.
This financial crisis is all about the behaviors of few individuals at the helm of organization has made whole organization go down. Their greed and corrupt, unethical behavior has made the life miserable for millions of people.
In this global knowledge economy and global village where one individual can play havoc we need people who are socially responsible, transparent, and ethical. Who will consider themselves responsible for all stake holders, i.e. society at large? “This is what exactly I mean by holistic human resources management.”
Holistic Approach to the Human Resources Development
“And the Firmament has He raised high, and He has set up the Balance (of Justice), In order that ye may not transgress (due) balance, so establish weight with justice and fall not short in the balance.” Quran Surah Rahman: Ayah 7-9:
Allah has created this world in balance and justice but our deeds messes it. These deeds vary from personal life, our social behaviors, and our economic and political activities. If we see at the financial crisis world is in, this is very clear example”. Today people wants to transfer the risk, this will never work. What we are in “Financial Crisis” is ultimately result of not sharing the risk but transferring it to other. This is because we transgressed our limits on balance and justice. If we want to change, we need holistic approach to change our lives, then and then only justice and peace can come to the world. If we want to change this world, it must come from within first.
The Islamic Approach to Ethics in Financial Transaction
Quran 2:188
And do not eat up your property among yourselves for vanities, nor use it as bait for the judges, with intent that ye may eat up wrongfully and knowingly a little of (other) people's property.
The following was revealed about 'Abdan Ibn Ashwa' [al-Hadrami] and Imra' al-Qays [Ibn 'Abis]: (And eat not up your property among yourselves in vanity) through oppression, theft, usurpation, perjury, and other forbidden means, (nor seek by it to gain the hearing of the judges that you may knowingly devour a portion of the property of others wrongfully) through perjury; Imra' al-Qays admitted taking the money when this verse was revealed.
Tafsir Ibn 'Abbas, trans. Mokrane Guezzou
Tafsir Ibn Kathir
And eat up not one another's property unjustly (in any illegal way, e.g., stealing, robbing, deceiving), nor give bribery to the rulers (judges before presenting your cases) that you may knowingly eat up a part of the property of others sinfully.) Tafsir Ibn Kathir
`Ali bin Abu Talhah reported that Ibn `Abbas said, "This (Ayah 2:188) is about the indebted person when there is no evidence of the loan. So he denies taking the loan and the case goes to the authorities, even though he knows that it is not his money and that he is a sinner, consuming what is not allowed for him.'' This opinion was also reported from Mujahid, Sa`id bin Jubayr, `Ikrimah, Al-Hasan, Qatadah, As-Suddi, Muqatil bin Hayan and `Abdur-Rahman bin Zayd bin Aslam. They all stated, "Do not dispute when you know that you are being unjust.''
It is reported in the Two Sahihs that Umm Salamah narrated that Allah's Messenger said:
(I am only human! You people present your cases to me, and as some of you may be more eloquent and persuasive in presenting his argument, I might issue a judgment in his benefit. So, if I give a Muslim's right to another, I am really giving him a piece of fire; so he should not take it.)
The Ayah and the Hadith prove that the judgment of the authorities in any case does not change the reality of the truth. Hence, the ruling does not allow what is in fact prohibited or prohibit what is in fact allowed. It is only applicable in that case. So if the ruling agrees with the truth, then there is no harm in this case. Otherwise, the judge will acquire his reward, while the cheater will acquire the evil burden.
This is why Allah said:
(And eat up not one another's property unjustly, nor give bribery to the rulers (judges before presenting your cases) that you may knowingly eat up a part of the property of others sinfully.) meaning, `While you know the falsehood of what you claim. ' Qatadah said, "O son of Adam! Know that the judge's ruling does not allow you what is prohibited or prohibit you from what is allowed. The judge only rules according to his best judgment and according to the testimony of the witnesses. The judge is only human and is bound to make mistakes. Know that if the judge erroneously rules in some one's favor, then that person will still encounter the dispute when the disputing parties meet Allah on the Day of Resurrection. Then, the unjust person will be judged swiftly and precisely with that which will surpass whatever he acquired by the erroneous judgment he received in the life of this world.''
Quran 4:29
O ye who believe! Eat not up your property among yourselves in vanities: But let there be amongst you Traffic and trade by mutual good-will: Nor kill (or destroy) yourselves: for verily Allah hath been to you Most Merciful!
(O ye who believe! Squander not your wealth among yourselves in vanity) through transgression, usurpation, false testimony, lying in oath or through other unlawful means, (except it be a trade by mutual consent) except if there is mutual agreement between you in the course of buying and selling or in abating the price in selling (Muhabat), (and kill not one another) without justified right. (Lo! Allah is ever Merciful unto you) when He forbade you to kill one another without such a justification. (Tafsir Ibn 'Abbas, trans. Mokrane Guezzou)
Tafsir Ibn Kathir
Quran 4:29. O you who believe! Eat not up your property among yourselves unjustly except it be a trade amongst you, by mutual consent. And do not kill yourselves (nor kill one another). Surely, Allah is Most Merciful to you.) Prohibiting Unlawfully Earned Money
Allah, the Exalted and Most Honored, prohibits His believing servants from illegally acquiring each other's property using various dishonest methods such as Riba, gambling and other wicked methods that appear to be legal, but Allah knows that, in reality, those involved seek to deal in interest. Ibn Jarir recorded that Ibn `Abbas commented on a man who buys a garment, saying that if he likes it he will keep it, or he will return it along with an extra Dirham, "This is what Allah meant, when He said, o (Eat not up your property among yourselves unjustly.'') `Ali bin Abi Talhah reported that Ibn `Abbas said, "When Allah sent down, (O you who believe! Eat not up your property among yourselves unjustly) some Muslims said, `Allah has forbidden us from eating up each other's property unjustly, and food is our best property. Therefore, none among us is allowed to eat from anyone else's food.' After that Allah sent down, (There is no restriction on the blind) (until the end of the Ayah). ﴿24:61 ﴾.''' Qatadah said similarly. Allah's statement, (except it be a trade amongst you, by mutual consent.) means, do not revert to illegal ways and means to acquire money. However, there is no harm in commercial transactions that transpire between the buyer and the seller with mutual consent, so that money is legally earned from these transactions. Mujahid said that (except it be a trade amongst you, by mutual consent.) means, "By selling and buying, or giving someone a gift.'' Ibn Jarir recorded this statement. The Option to buy or Sell before parting is Part of `Mutual Consent' in Trading Mutual agreement in various transactions is attained when both parties have the right to uphold or dissolve the agreement before they part. In the Two Sahihs, it is recorded that the Messenger of Allah said, (The seller and the buyer retain the (right to change their mind) as long as they have not parted.) Al-Bukhari's wording for this Hadith reads, (When two men conduct a transaction, they retain their (right to change their mind) as long as they have not parted.)
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