Economics

Incidence of a tax connotes the ultimate economic effect of a tax on the real incomes of producers and consumers (Nordhaus, 2007, P. 76). The exact incidence of a tax depends on the price elasticity of supply and demand of the product (Nordhaus, 2007, P. 76). The product in consideration in the two chosen articles is cosmetic procedures such as Botox injections and tanning services. The tax falls under the category of luxury tax on cosmetic procedures (South-Western, 2005). Many states have in the past considered and successfully imposed taxes on cosmetic surgery producers. New Jersey was the first to pass a law in 2004 imposing a 6 percent tax on numerous cosmetic procedures, followed by Texas, Illinois, Washington, Arkansas, Tennessee, and New York, passing similar laws (South-Western, 2005). The issue of taxing cosmetic procedures was back in the news in December 2009, with talks of a Bo-tax to be levied on Botox procedures, which were shortly substituted by the Senate imposing a 5 percent tax on elective cosmetic procedures, with one on indoor tanning services, in the proposed health care bill (Louis, 2009, p. E3).

Effect of Tax on Producers
     The tax is levied on producers. The demand for cosmetic procedures such as Botox injections and tanning services is price elastic in nature. As a result, majority of the tax incidence must be borne by producers. In response to the latest tax on elective cosmetic procedures, Dan Humiston, the President of Indoor tanning Association holds the view that salons will absorb the tax themselves rather than burden consumers (Louis, 2009, p. E3). Roel Kunst, the director of operations at Portofino Sun Tanning, which has six salons in Manhattan, also opined that passing on a 10 percent tax on consumers in economically turbulent times is not a feasible option (Louis, 2009, p. E3).

Effect of Tax on Demand and Supply
     The tax is expected to lower supply and demand for cosmetic procedures, assuming market and economic conditions remain unchanged in the future. With producers having to bear the maximum brunt of the tax despite issuing significant discounts to customers (Louis, 2009, p. E3) in recession, the supply of cosmetic procedures is likely to fall. Similarly, assuming that some incidence of the tax must be borne by consumers, demand for cosmetic procedures is likely to fall as a consequence of the tax. This hypothesis is backed by historic observations about similar taxes. For instance, after New Jerseys imposition of a 6 percent tax on cosmetic procedures in 2004, the difference between expected revenue from these procedures in the following year and the actual revenue for these procedures was over 17 million dollars, implying significant reduction in demand for these goods (South-Western, 2005). According to Dr. James Spencer, a dermatologist in St. Petersburg, Fla, the social effect of the tax is to discourage people from using cosmetic procedures including tanning services, linked to health vices such as skin cancer (Louis, 2009, p. E3). In a nutshell, the tax on cosmetic procedures will lower demand and supply for the same in the short run, market conditions remaining unchanged.

Effect of Tax on Equilibrium Price and Quantity
     Assuming that the tax is borne to some extent by both producers and consumers, as is usually the case, the equilibrium price of cosmetic procedures will rise while its quantity falls. The same has been shown in the following figure

Effect of Tax on Equilibrium Price and Quantity of Cosmetic Procedures
     Original equilibrium was attained at point E. The imposition of the tax shifts the original supply curve AB upwards by the amount of the tax. Given that demand is more elastic than supply, incidence of the tax will mostly be borne by producers with consumers experiencing only a slight increase in equilibrium price. This increase in equilibrium price will lower the equilibrium quantity demanded on imposition of tax.

Hypothetical Situation Involving Imposition of a Price Ceiling
     The setting of maximum prices will either have no effect on equilibrium price and quantity (when maximum price is set above the equilibrium) or it will cause a shortage of the commodity reducing price and quantity actually bought and sold below their equilibrium values (Nordhaus, 2007, p. 77). This situation is illustrated in the following graph

Effect of Ceiling on Equilibrium Price and Quantity of Cosmetic Procedures

of maximum prices have been shown in the graph. In case the maximum price is set at C above the equilibrium price Pe, the market equilibrium for cosmetic procedures will remain unaffected and equilibrium quantity will remain at Qe with equilibrium price staying unaltered at Pe, assuming constancy of remaining factors such as income changes and increased awareness about the considered procedures. 

     Now consider the case where maximum price for procedures is set at C. This price is less than the equilibrium price and will offset the market equilibrium achieved through forces of demand and supply. The equilibrium price Pe is no longer legally attainable. Prices will be reduced from Pe to C, as a result of which quantity demanded will increase from Qe to Q2 while quantity supplied falls from Qe to Q1. Thus, there will result an excess of demand over supply (Q2-Q1) and some method of allocation of available cosmetic procedures will have to be devised to allocate the scarce product among consumers.

     In totality, a price ceiling above equilibrium price will have no effect on the market while a ceiling price set below the equilibrium price will create a scarcity of cosmetic procedures in the market and the need for devising a method of allocation of scarce procedures among consumers will ensue.

Australia is a developed country within the southern hemisphere. It comprises the mainland, the highland of Tasmania and other small islands. It has membership in various international bodies like the United Nations, Organization of Economic Cooperation and Development, Asia Pacific Cooperation and the World Trade Organization. The countrys administration is divided into six states and two mainland territories. The common wealth parliament is superior to state legislation on most matters. The country has also focused on international trade by following economic liberalization policy. Although a large potion of the country is dry, Australia has a high gross domestic product (GDP). According to 2009 population estimates, the country has a population of approximately 21 Million indigenous persons. Demographic data shows that the population of the old people is growing very fast as compared to the working age groups which pose a danger to future national productivity. This paper will keenly analyze the Australian macroeconomic indicators for the past five years and present. An analysis of Australian macroeconomic indicators will examine key factors like unemployment, national income, gross domestic product, inflation and national economic growth rate among others.

Unemployment
Despite the economic recession, the labor market has remained very stable and strong. In the last five years, Australia has experienced an increase in employment rates. Employment statistics show that employment rates increased by approximately 0.3 annually for both part time and full time workers. Unemployment rates also decreased to 5.7  over the same time. The numbers of monthly hours spent on working also increased by 0.9. It is also estimated that the countries underutilization of labor stood at 13.8 last year (Sullivan et al, 1996).

Inflation
Over the last five years Australian inflation rates have gone down significantly. In 2008, there was a spirited government effort to lower inflationary rates further via the reserve bank. The country has also been facing a tremendous growth in demand for commodities for the last five years (Heijdra and Ploeg 2002).This demand has been occasioned by capital inflow and the export of primary commodities. According to the Australian bureau of statistics, the countries inflation rate stood at 1.2 in 2008.

Economic growth and Gross domestic product
Over the last five years, Australia had a steady economic growth averaging 3.5 percent.  For instance, Australian gross domestic product has grown steadily with an annual growth rate of 3.2 .  Economic expansion is boosted mainly by increased government expenditure on infrastructure like transport systems, roads and ports and construction of schools. In the last quarter of 2009 gross domestic product statistics showed an expansion of 0.2 . The RBA forecasts that annual gross domestic product will be lower than the long run average of approximately 3.3.

The country has emphasized on export of commodities where the major trade partners are Japan, China, India and the United States. Agricultural products form a substantial portion of the export earnings and contribute about 4  of the gross domestic product. The mining sector has also grown significantly over the past few years. For example, the sector has increased its contribution to the national gross product to 9.6 last year from 4 in 1994. Another major economic segment is the service sector. It is imperative to note that China has had an increased demand for raw materials which in effect has opened a big market for Australian export commodities. In effect, Australian companies are expanding their operation to cater for the growing demand in China. This has led to increased investment in the service and manufacturing sectors hence creating high number of employment opportunities.

Australian economy is one of the strongest and most resilient in the world. The country has a low unemployment and high rates of economic growth. The country has also managed to keep inflation rates low and stable. In my observation, Australian economic growth will gather pace this year irrespective of the global economic recession that has hit many countries in the world. In addition, the global increase in prices for commodities will enhance positive economic growth based on the fact that Australian government has adopted a policy that favors exportation and international trade.

In order for economic growth to take place, several factors are integrated and made to work together each playing a very crucial role. Economic growth is the annual average of all the  factors involved for it to grow and hence if one of the engines of economic growth fails, it will have a direct impact on the other engines as it will slow them down leading to poor performance of economic growth. The main engines of economic growth in any economy include political stability, availability and cost of energy, trade, security in the country or in the region and capital markets and financial institutions. All these factors in one way or another influence the process of investment in an economy and at the same time vary the risk involved in investing in a certain economy thus attracting or  repelling investors who ultimately have a significant impact on the gross domestic product of a country (Viard  Roden, 2009).

Capital markets and financial institutions
In the modern world, economic growth relies very heavily on a financial sector that is very effective and efficient in pooling domestic savings and at the same time mobilizing capital from abroad for investments to be done locally in an effective manner. Without a well functioning financial sector in an economy, it is most likely that most of the productive projects will either be totally unexploited or under exploited. Financial institutions act as chief engines for economic growth since they usually have the productive investment taxing effect and hence decrease the scale for increasing the equipment stock that is required to compete effectively in the global arena. Should the financial sector engine be inefficient, it can significantly reduce the levels of growth that could have been suitable for the optimal market structures and appropriate policies and thus have a very negative impact on the economic growth (Bekaert, n. d.).

Capital markets are vital engines as far as economic growth is concerned, when they are either poorly functioning or they are underdeveloped, they usually have the effect of deterring foreign investments since such markets are both expensive to trade in and illiquid. This impacts very negatively on the direct investment since it becomes difficult to raise local capital as it is costly. Illiquidity coupled with high costs of transaction also inhibits the efforts of raising capital for the large local corporations and thus compelling them to shift to foreign markets where they shall not experience such difficulties (Ewah, Esang  Bassey, 2004).

The financial sector in an economy concretely pools the financial resources from the households that are quite dispersed and efficiently allocates them to entrepreneurs who are also dispersed. Via the former activity, a financial sector that is efficient permits the households to not only diversify their risk but also maintain their investments in a liquid state such as bank deposits. The latter activity involves gathering of information and investment projects selection that is screening, as well as the monitoring of the activities of the entrepreneurs. The financial sectors as an engine to economic growth thus acts as an intermediary between the financial savers and the investors (Damar  Ard1, 2006).

Capital markets are very closely related to economic growth, well elaborate and functioning capital markets enhances the opportunities of investment in an economy and thus result to better economic growth performance. In most of the emerging markets, the costs of transactions are usually higher for the foreign investors as compared to the local ones. Illiquidity coupled with government taxes as well as several restrictions in the capital markets usually make it difficult for corporations to participate in foreign markets. Such factors impair the ability of the capital markets as an engine for economic growth (Bekaert, n. d.).

Political stability and security as engines of economic development
Political stability is a very crucial engine of economic growth and prosperity. Without this crucial factor, it is very difficult for the economy to achieve any growth since all the other factors heavily rely on the performance of the political stability in a country. It is the political stability that gives room to the other economic growth engines to perform optimally. In situations where the investors anticipate that there is a likelihood of political instability in future, the most probable step they can take is withdrawing their investments from the country and shifts them to the countries that are enjoying political stability. Therefore, political stability as an engine of economic growth attracts capital inflows through direct investment, whereas political instability has a reverse effect. Political stability has a direct impact on the level of risk assumed by the investors, while political stability lowers this risk and thus attracts both foreign and local investments political instability increases the risk making most investors to shy from investing in such economies. Therefore, the state of political stability in a country has a direct and a significant impact on the gross domestic product of the country and thus affects the rate of economic growth (ZABLOTSKY, 1996).

Political instability in a country makes it almost impossible for any meaningful business to be carried out. Trade networks are disrupted and hence the various channels of distribution are done away with. It also adversely affects the countrys infrastructure especially those that facilitates transport and communication, which are vital for any significant business to be carried out. It also becomes quite difficult for a country experiencing political instability to participate actively in the international market. In the modern world where labour mobility among nations is very high, it gives the human capital an opportunity to move away from the nations that are experiencing political instability to those ones that are more politically stable. Human capital is very vital in economic growth and when it is lost to other nations as a result of political instability in a nation, economic growth is adversely affected (Schaefer, 2009). 

Before any rational investor can make any substantial investment in a country, he or she must first assess the security status in such a country. If there is ample security in the country, it increases the probability of foreign investors making their investments in such a country, and thus takes a crucial role in exploiting the resources available in the country and also adds value to the products and services that are produced in the country. Insecurity on the other hand acts as an inhibitor to these all important engines of economic growth. As insecurity increases in a country, the existing investors transfer their capital assets to other nations, which are enjoying more security while the investors who had intended to invest in the country reverse their decisions. Hence, the state of political stability in a country is a very important engine of economic development as it can either lead to more or less exploitation of resources political instability leads to less value being added to the goods and services that are produced in a country thus resulting in a lower gross domestic product (Schaefer, 2009).
Just like in the case of political instability, the state of security in a country has a direct impact on the risk involved in investing in a country. Insecurity increases the risk involved and therefore, for an investor to accept to invest in such a country, the rate of return on the investments he or she has made must also be high so as to compensate for the high risk involved. This implies that only a few investors are willing to invest in such a country and they can only invest in a few segments of the economy they consider highly profitable (ZABLOTSKY, 1996). 

Trade and infrastructure as engines of economic growth
For any economy around the world to grow, trade must play a very crucial role in facilitating the chain of distribution of the various products and services that are produced in the economy. Openness, which is the aggregate of imports and exports to the gross domestic product of a country, is usually considered to be the main determinants as far as trade is viewed as an engine of economic growth. Economic growth that is led by exports acts as an indicator that the exports comprise the chief path via which the process of liberalisation can have an effect on the level of output and eventually have an effect on the economic growth rate. Expansion of exports increases the level of productivity by providing enhanced economies of scale. Increased exports usually have the effect of alleviating the constraints of foreign exchange and hence offer enhanced access to foreign markets. Furthermore, exports increase growth in the long run as it permits the growth of innovations especially in the development and research sectors that make it possible for trade to have a greater impact on the economic growth of a country (Parningotan, n.d.).

Without trade, goods and services could only be produced on small scale basis since they could only be used for subsistence purposes. However, due to trade, it is possible for people to produce what they can produce best and cheaply in large quantities. This leads to more economic growth since the producers are in a position of fully exploiting the available resources and also enjoy economies of scale. The networks involved in trade enables people to obtain goods and services that are not produced in their localities and at the same time to dispose off the products and services they have in excess to their needs (Chapman, 2007).

On its part, the infrastructure makes it possible for all the elements of economy to be integrated in a productive manner. Infrastructure eases the mobility of human and physical capital it also makes it easier for services and products to be transported from one region to another, through safe and fast means. In addition, infrastructure makes it possible for all the industries operating in a given economy to access most of the facilities they require for production purposes. A sound infrastructure is thus a vital engine of economic growth since it leads to lower costs of production making the produced goods and services to be cheaper and thus affordable to the consumers (OFallon, 2003).
The most important aspects of infrastructure include the transport and communication networks, power distribution networks, gas pipelines and systems of water and sewerage. These entire infrastructures have a direct impact on the performance of an economy.  For those countries whose infrastructure networks are either underdeveloped or are poor, the rate of economic growth is also poor since it is not supported by a sound infrastructure network. This is due to the fact that they lead to a high cost of production that reduces the level of activity within the economy and thus impacting negatively on economic growth. In addition, poor infrastructure chases away foreign investors and also the large local investors, who opt to invest in countries with good infrastructure where they can be able to produce more cheaply and thus increase their profit margins (Pedroni, P.  Canning, 2004).

Energy as an engine of economic development
Energy is also a very important engine as far as economic growth is concerned there is no particular economy in the world that can grow in the absence of energy. It is used in virtually all sectors of the economy and hence its availability and cost is very important for economic growth. Therefore, if energy is not easily available and hence expensive, it will have an impact on all goods and services that are produced within that particular economy as it will lead to increased cost of production and transport. When dealing with energy as an engine of economic growth, various issues surrounding the energy subject have to be considered. These include the energy sources, energy harnessing, use, direction and redirection of energy. This basically means that it has to be dealt with as a system that is intertwined (Stern, 2003).

The initial converting activities are the ones that set the economy into motion. These primary activities basically contribute net energy into the economy. It is these activities that are responsible for converting the energy from its natural form in which it normally occurs such as solar light and heat, running water, wind, tides, fossil fuels, minerals, chemicals and gravitation into final forms, which can eventually be utilised in the production of services and goods. Once the energy is used to produce services and goods, it can be said to have increased the gross domestic product since it makes it possible for value to be added at various levels. In most cases, these primary activities of converting the energy do not bring about energy into a form that can be directly used to produce various services and goods. Therefore, they have to be first converted into forms that are more usable or be delivered to locations where can be utilised by more advanced converting activities. These activities do not only add value to the energy as a factor of production, but they also make it possible for more refined goods and services to be produced (Boopen, 2006).

Energy is also used in the transport and communication segments of the economy, which are of great importance in economic growth. There is very little progress if any that can be achieved without transport and communication industries. Therefore, since it is the energy that drives these two sectors, it indirectly drives the economy of a country. Energy increases the rate at which raw materials and also goods and services are transferred to the areas they are required. Energy also makes it possible for many natural resources to be exploited which ultimately leads to economic growth. Industries manufacture goods worth billions every day. They however cannot be able to do so without the use of energy. However, in the current world, it has been observed that energy must be chosen and used in a sustainable manner otherwise it might end up having detrimental effects. One of the greatest hazards resulting from using non renewable energy to drive the economy is pollution and thus for energy to act as an engine of economic growth, such defects must be avoided as they will in the long run erode all the economic gains that have been achieved. Currently, the nations with more energy resources especially the oil producing countries have achieved more economic growth as compared to the ones that are not endowed with such resources (Alam, 2006).

Economic growth is affected by several factors in different ways, the engines of economic growth such as political stability and security, capital markets and financial institutions, trade and energy are the ones with more driving force on any given economy around the world. Without these factors, it is very difficult and in fact impossible for any meaningful economic growth to be achieved. Therefore, for a country to ensure that it prospers in terms of economic growth, it must ensure that these engines of economic growth are well taken care of and integrated in a beneficial manner that optimises each of them. By doing so, several segments of the economy will be integrated and the end result will be enhanced economic growth. It should however be noted that, the absence of any of these engines will most likely result to poor performance of the economy.

The U. S. Federal Trade Commission (FTC) has sued Intel Corp. for malpractices to stifle competition and strengthen its monopoly by adopting anti-competitive tactics preventing superior competitive microchips from reaching the market, thereby, depriving the consumers of choice and access to potentially superior non-Intel chips and lower price benefits (Lohr, 2009). The FTC is seeking a comprehensive order that will stop Intel from using threats, bundled prices or other offers to encourage exclusive deals or hamper competition or unfairly manipulate the prices of its products. The FTC may also seek an order prohibiting Intel from unreasonably inhibiting the sale of competitive CPU chips or other products or even precluding it from producing or distributing products that impair the performance of corresponding non-Intel products (Lohr, 2009).

Analysis
     Intel has a monopoly in the microprocessor chip market. For over a decade it enjoyed market shares of 80-90 percent by revenue and 75 percent by unit (Scribd, 2009). Its invention of the x86 microprocessor chip constitutes its primary source of market power. Further, Intel controls x86 microprocessors and PC system standards, giving it the power to dictate what type of products can enter the market in competition (Scribd, 2009). Having unique sources of market power is characteristic of monopoly markets (Last name, Year). Secondly, Intels profit margins compared to the narrow margins of its primary customers, top-tier OEMS re-affirm its monopoly status. According to Dell founder and CEO Michael Dell, Intel biggest customer, even Microsoft cannot match Intels profit margins and pricing power. In the period from 2001-2003 Intels sales went up 22.5 percent while their profits increased at the rate of 350 percent (Scribd, 2009). Intels clients also depend on it for product allocation, marketing support and technical information for research and development.

     In the microprocessor chip market monopolized by Intel, there are multifarious barriers to entry protecting its monopoly status, as is the case with monopoly markets by their very definition (Last name, Year). Firstly, designers and manufacturers of microprocessors require access to intellectual property which only Intel has resulting in substantial licensing issues for potential entrants (Scribd, 2009). Secondly, the cost of designing and constructing manufacturing facilities for microprocessors ranges in billions of dollars, in addition to huge amounts of time required for gaining regulatory approval for the facilities and constructing them, reducing entry into the market (Scribd, 2009). Thirdly, the microprocessor industry is characterized by economies of scale making it extremely difficult for small manufacturers to achieve operative profits (Scribd, 2009).

      The charges levied against Intel are characteristic of a monopolistic firm imposing limitations on competitors (Last name, Year). Intel has done the same through implicit agreements and cartels (Last name, Year) such as paying for exclusivity rights to Japan manufacturers and entering into exclusivity deals with Dell and German retailers to cut out competition (Scribd, 2009). It has allegedly been engaging in various other anti-competitive practices to end the competition it faces or would face in the market from superior products. These practices have deprived consumers of cost and innovation benefits and have been deemed unfair and unlawful on multiple occasions (Lohr, 2009). This article brings to light the true nature of monopoly existence and operation.

This paper will be describing a few organization behaviour terminologies and concepts. Furthermore it will provide an analysis of the culture and behaviour of a particular organization that I have chosen and with which I am familiar with.

Organizational Culture and Behaviour
               Organizational culture and organizational behaviour are two very different things. While behaviour is how one behaves or acts, culture on the other hand is more related to the environment or the manners which are more likely favoured by a particular social group. Organizational behaviour is the study of the behaviour that goes on in an organization, i.e. how people or individuals, and even groups act or behave in an organisation. This behaviour obviously includes how people react and respond to certain things and how they develop their relationships in an organisation, (Newstrom, 2010,p42). These relationships are between different employees or managers and they constitute the whole idea of organizational behaviour. How employees react to problems, challenges or certain situations and the changes these bring about in their behaviour is all a part of organizational behaviour.

              Organizational culture is on the other hand linked to organizational behaviour because culture is made through how people create a certain environment or how people go about things in a social group. Organizational culture is therefore the values, experiences and beliefs that are present in an organisation and the ideas that employees should adopt in order to pursue organisational goals. How the employees go about tasks, how they treat each other, how instructions are followed, how orders are fulfilled is all part of an organizational culture.

Diversity
               Diversity means being diverse or a condition that is changeable. In organizations however diversity lies in the prospect of cultural diversity that revolves around its people or hired employees. Diversity among people can definitely be in the form of race, gender and age, ethnicity and culture. An organization can consist of groups of different sort of people belonging to all these demographics. When employees are hired in an organization their race, color, gender or ethnicities are not taken into account, thus an organization is always diversified and will always have diversity. This diversity is very common in all professional organizations and in no way does it affect working policies or the achievement of organizational goals.
             A diverse culture however might have to face certain problems and quite a lot of challenges since people from different race and ethnicities may have problem working together due to differences in culture and upbringings. Not only that, but there is also the factor of discrimination which mostly exists in every organization. Wherever there is diversity in an organization these problems prevail and solutions should be found in order to maintain the diversity. Managers therefore have to manage the behavior and culture in a way that the diversity does not affect the prospect of achieving organizational goals and does not create any hindrance in organizational success.

Communication
            Communication is the process of conveying your message or your information in the most convenient and easiest way so as to get it across to the receiver. It means transferring your information from one source to another. Communication involves speaking, listening, observing, evaluating, organizing, analyzing etc, and requires a vast range of intrapersonal and interpersonal skills in processing information. Effective communication involves sending your message in a proper and professional way, encoding your message in such a way that the decoder perceives the exact meaning of the meaning without any misconceptions. Otherwise it will come under the prospect of miscommunication. Communication is the factor through which cooperation and collaborations take place or occur(Sweeney, 2004,p32).
            Communication in organization or business involves internal communication that could include top to bottom information flow or bottom to top communication. Communication between different departments as well as managers in an organization is known as communication. It may also include the promotion of your product or service through communicating about your product or relaying its information to the public through advertisements or customer relations.

Business Ethics
                Ethics are the basis of right and wrong by an individual or even a group or in other words they could be the principles of what is considered correct and whatever is considered incorrect. In the same way, business ethics relate to the morals and principles of what is right and wrong in the environment of an organization and the conducts related to its employees. The ways that they are supposed to cater to different situations and respond to certain problems come under the aspect of business ethics. Business ethics decide how a particular problem is supposed to be solved because that is where the morals come in and where the principles of right and wrong start to play a distinct role in the decision making. Every organization has some ethics that all individuals are supposed to follow while some organizations also have codes of conduct which are also considered as the organizations business ethics. These outline a set of rules that the employees are expected to follow in order to achieve organizational goals.
            Business ethics can involve different ethical issues such as those related to other companies or some that are related to leadership or corporate governance etc. While solving such issues the morals and principles of the organization must be kept into consideration and decisions should this be made accordingly.

Change Management
              Change management is the adoption of certain set of processes that make sure that the changes brought about in an organization are implemented in a manner that is controlled and to some extent is systematic.
                Change management basically aims to set in the change in a particular manner so that it is accepted by the employees and the change is not faced by resistance. Through change management the organization goals of a successful transformation are met by the orderly success that it wants to achieve. When a company wants to bring about any changes or transformation it adopts chain management so that the transformation takes place without any problems. In order for that, different processes are adopted and put into action. Change management also relates to project management where the changes made to a project are approved and introduced formally  (Filicetti).

Analysis of Culture and Behavior of American Association of Healthcare and Administrative Management
            The culture and behavior of American Association of Healthcare and Administrative management is very similar to the culture and behavior of any professional organization however it has more to offer and has an amazing culture. Its culture is to create an environment that can provide quality service to all its members and can provide leadership in all areas such as communication and education, representation etc.

This is a Research Paper looking at the Australian Monetary Policy in depth. Some of the major elements of discussion here include the interest rates and the required reserve ratios for the period between 2008, September 15th to December 30th 2009. The paper will undertake to discuss the nature of these implementations by the Australian Central Bank. There will also be a discussion of the reasons why it was necessary for the Bank and the Government to make these measures and how the applied changes would impact on the entire economy of the nation, and on each economic factor within the economy.

Money is the set of the assets in a given economy with which people regularly use in buying of goods and services from one another. It has three functions store of value, measure of value, and a commodity for exchange. Money has liquidity as one of its functions. Liquidity is the given ease at which any given asset will be converted into a medium of exchange in a given economy. Commodity money takes that form of a given commodity with a given intrinsic. Examples here include gold, silver, and cigarettes. Fiat money is used as money because of the governments decree and lacks an intrinsic value. Examples include coins, currency, and check deposits.

The Federal Reserve (Fed) in Australia has been serving as the nations central bank. It has been designed to oversee the banking system and at the same time regulate the quantity of money circulating in the countrys economy. Regulates banks to ensure they follow federal laws intended to promote safe and sound banking practices. The Fed acts as the bankers bank which makes loans to the banks and always lender of last resort. It also conducts monetary policy by giving controls on the supply of money.

The Federal Open Market Committee, FOMC, is made up of these voting members One, the chairman and some other six members from the Board of Governors, the president of the Federal Reserve Bank of Australia, and the presidents of the other regional Federal Reserve banks. Monetary policy is usually conducted by the Federal Open Market Committee. Money supply refers to that quantity of money made available in the economy. Monetary policy on the other hand is the setting of the money supply by the policy-makers at the Central Bank.

The Australian Economic and Monetary System have always required that there should be no minimum money reserves within its banks, unlike in the United States and other global economies. Looking at the countrys framework of its Monetary Policy, it is based on a centerpiece aimed in tackling inflation in the economy, and here the Reserve Bank have been required to set a policy which would be applied in achieving a lesser inflation percentage of not more that 3 percent (Robert, 2003). The idea here is that, on average, an inflation rate in the economy that is sufficiently low will not in any way affect the economy materially, or even in the decision making strategies. This target of lowering the inflation rates has been known to provide a discipline in which the Monetary Policy will be used in influencing decision-making. This policy has also been speculated to serve as the main anchor or tool for lowering the inflation rates within the private sector economies (Stefano, 2008). In order to ensure that such a target is met between the period of September 2008 and December 2009, there has been an agreement between the Central Bank and the Australian Government.

Monetary Policy of Australia
    The period between September 2008 and December 2009 has seen the Reserve Bank of Australia, RBA, coming up with the Australian Monetary Policy which would be used to drive the economy into its proper direction. This has been revolving around the interest rates and the reserve ratios. The Reserve bank of Australia, RBA, has achieved this by increasing the interest rates by about 0.25 percent for every consecutive third month. This would mean that the present interest rates would be standing at 3.75 percent (Robert, 2003).  Although such a decision by the RBA never came as a surprise, the move had been forecasted by some twenty economists in the country. The other thing is that such a policy had been greatly criticized by the Chief Executive, Ridout Heather, of the Australian Industry Group. The CEO, Chief Executive Officer, said to Bloomberg News in an interview that the bank should have waited until all the economical signs had been clear so that it can be easy to project such economical developments and advancements (Stefano, 2008).

According to some economic experts, the major prospects in the ongoing economy expansions within the private demands have been necessary for the nation. This has brought about much strength for all the business investors and corporate industries. The country has also been able to note a number positive early signs towards the labor market improvement and the general market conditions. This has been brought about by the practicing of open market operations within the economies of the country (Mattsson, 2005). Presently, there has been an increasing trend in the employment opportunities in the country. Although such signs have been good, there are still a number of worries that the unemployment scenarios would be high as time goes by. Some experts have also noted that there is a possibility of the countrys exchange rates to rise within the end of this last quarter. Also, there are some fears that some of the global inflations may have to affect the inflation rates and economic growth within the next few months (Robert, 2003).

Generally, the Monetary Policy would be useful and applicable in increasing and advancing the sustainability as well as economic growth activities. This would ensure that the inflation rates are in consistent per the expected percentage targets within the next years ahead (Mattsson, 2005). After seeing the interest rates increase within the third quarter of the period, the Reserve Bank of Australia will have to wait for a few months then be able to take necessary harsh measures for tightening the economic strategies and on the existing monetary policies. This will ensure that the recent interest rates are increased as time goes by. This way the country will be able to meet the requirements of a real economic power. After putting in place all these strategies in the country, there have been a number of positive developments such as increased employment which has increased by 25 thousand employees in the first half of the period. The increased rates have also been applied to increase revenue which would then be used for economic developments. As experts say, the inflation rates are likely to remain as low as possible, and this is due to the capacity utilization mechanism that have been kept as low as possible. The final result here is that the interest rates will continue to rise even after the time bracket has elapsed, that is after December 2009.

Central Bank Implementations
With the Banks operations, reserves are deposits that banks have received but have not loaned out. In a fractional-reserve system of banking, banks tend to hold a fraction of the money deposited as a reserve while lend out the rest. When a bank makes a loan from its reserves, the money supply will increase. The money supply is therefore affected by the amount deposited in banks and the amount that banks loan. Deposits into a given bank are usually recorded as either assets and liabilities. The fraction for the total depositions that a bank has kept as reserves is known as the reserve ratio. These loans will become an asset to the bank.

Money Multiplier This is the amount of money the banking system has to generate with each value of reserves. The Australian Central Bank has been able to implement a number of changes to the monetary supply within the countrys economy. This has been achieved through the application of open market operations. Looking at any international Monetary Policy, we will note that it is any set or operations which lie in the terms through which a given economy give operational targets. Such targets determine the cash flow rates within the economy dynamics (Ekins, 2000). Such monetary policies will develop strategies on which interest rates are imposed on all overnight loans transacted between a number of institutions within the market and the circulating monies.

In order to achieve this, the Reserve Bank Board has the mandate to decide what changes are necessary in the Monetary Policies. This should also specify the new targets to be applied in the cash rates (Mattsson, 2005).This decision reached at will be applied in reflecting the required targets in the cash rates. Alternatively a decision aimed in tightening the Monetary Policy is the one which reflects the realisation of a high level target level in the cash rates. Once such a decision has been arrived at by the Reserve Bank Board, it will be able to set up new targets for the economies cash rates. Such rates will then be required to be announced by the government media release. This will give a details explanation why it was necessary to arrive at such a decision. Any change following will also be required to be announced in the press release (Adams, 2006). Such a release will give information on the new arrived cash rate target.The media release should be distributed in form of electronic services on that very day in which such a change has taken effect. Looking at the Monetary Policy changes in Australia within this period, the countrys Reserve Bank has been using its domestic open market and market operations. These are wholly referred to as the Open Market Operations. Such operations have been noted to be very effective in influencing the cash rates in the country (Adams, 2006).

When the countrys existing Monetary Policy has to be changed, all the market operations have to be aimed in moving all the cash rates to a given target level, either high or low. Between these changes in the Monetary Policies, the major focus on the market operations. Such operations would be necessary in keeping the cash rate as close as possible to the required target (Benjamin, 2009). Because these operations are basically used in the management and supply of the available funds in the banks and the money market, there are therefore referred as Liquidity Management (Anderson, 2009).

Open Market Operations
Open-Market Operations have been used to increase the money supply, and here the Fed buys the government bonds from the people. In order to decrease the money supply, the Fed sells government bonds to the public. This has been the major strategy which has been applied by the Central Bank in bringing about the Monetary Policy. Here, the cash rate has always been determined within the money market. Such a determination is always based on the dynamics existing from the interaction of supply and demand for the overnight transaction funds (Adams, 2006). The Reserve Central Bank has the ability of pursuing the necessary target for any terms for cash rate. This makes the bank able to have dominion on the funds supplies which are used by the major banks in settling down the transactions existing amongst themselves (Anderson, 2009).This hence brings about the settlement exchange funds. The Reserve Bank therefore ensures that the banks keep some funds with it. This hence satisfies the Monetary Policy targets.

    The other strategy applied by the Bank is to monitor the market conditions in the first day of the policy. If the conditions come out differently as expected, the bank has the mandate to re-enter into the market and take control of the dealing (Brian, 2004).As the day ends, the banks can borrow money at a cost rate of 25 points. These are points above the normal target within the cash rate (David, 2009). These funds are known as the Exchange Settlements, and are paid with an interest rate of 25 points below the stated cash rate (David, 2009).There is also the Real-Time Gross Settlement strategy system (Brian, 2004). In this system, all the banks can have proper management of their liquidity, and this will be achieved by the use of a repo facility. This intra-day repo is available for such banks free of charge. The bank also ensures that all the settlement risks that may occur are eliminated so that the Reserve Bank is not put at risk should a given bank withdraw its participation or fails in its operations.

Monetary Policy and Debt Management
It would be necessary that any stated Monetary Policy is capable of maintaining and handling any debts incurred by the countrys economy. Any sound financial policy will be required to see that the Government has fully funded the budget and ensuring that there are genuine securities for any kind of deficit that may occur (Hirsch, 2001). It should also be necessary that the private sector enterprises do not borrow funds from the Central Reserve Bank. Presently, a number of nations have come up with legislations which deliver similar outcomes. With Australia, this has been achieved effectively through the agreement that has been made between the Reserve Bank and the countrys Treasury. Such an arrangement ensures that Monetary Policy by the bank is entirely out of question for any matters to do with Governments debts and their management. This means that the Treasury will directly be responsible for such debts. This makes the Central Bank responsible for the policy only and not for the countrys debts.

It will also be necessary to note that it cannot be easy to have all the deficits in the budget being matched exactly day-after-day with regard to all the issues of markets security.This is because such issues arise in weekly basis only and not on daily basis. So that it can be easy to overcome such mismatches between the daily expenditures and financing, the Government Treasury ensures that it keeps enough cash reserves in the Reserve Bank. Such fund balances are used to buffer the economy when the time comes (Hirsch, 2001). The Central Bank of Australia is also known to provide overdraft facilities that are used by the Government in covering periods of unexpected huge cash deficits. Through the application of such measures, the Central bank has been able to monitor money supply within the countrys economy. This ensures that necessary precautions are put in place for necessary economic achievements.

Another strategy applied by the Fed is the Changing the Reserve Requirement. The reserve requirement is the percentage amount of a banks total reserves not loaned out. There is the increasing of the reserve requirement which decreases the amount of money in supply. The decreasing of the reserve requirement will thus increase the money supply. There is also the Changing of the Reserve Requirement. The reserve requirement is the total amount of a banks total percentage reserves that cannot be loaned out. Increase in the reserve requirement will decrease the money supply. Decrease in the reserve requirement will therefore increase the money supply. Fed also operates by the Changing the Discount Rate. The discount rate is that interest rate which Fed charges any bank for loans received. An increase in the discount rate will definitely decrease the money supply. Any decrease of the discount rate will increase the money supply (Ekins, 2000).

Reasons behind these Changes
There were quite a number of reasons why this country came up with these changes so that they could bring about necessary impacts on the economy. Looking at such changes in the monetary operations, it will be seen that the country had been experiencing an alarming increase in inflation. This meant that, if unchecked, the country would be plunged into a big economic disaster. It was therefore necessary to come up with necessary implementations which would ensure that the inflation rates had been brought down (Stefano, 2008). Once such inflations had been dealt with, the next thing would be to see the currency exchange rate improving. This would bring about economic advancements.

There was also the need to come up with a pact for binding the government, the treasury and the central bank in controlling the monetary circulation in the country. This would ensure that a low cash rate would be realized from the existing high cash rate which seemed to threaten the countrys economy (Anderson, 2009). It was also necessary to put in place a proper decision making tool or policy which would control the private sector business as one of the major factors and players behind the countrys economy. Such a control on all private businesses would be necessary if the required inflation percentage were to be realized.

The other important aim for these changes was to drive the economy into its proper direction. This would be achieved by ensuring that the Central Bank would not be responsible for any debts of the government. This meant that the Treasury would be responsible for such debts. This way the Bank would be left with one duty of checking inflation rates and ensuring that all the necessary measures in open market operations were in the right track to enhance economic development. There was also the need to ensure that necessary measures were put in place to monitor transactions and dealings amongst the banks in the country (Stefano, 2008). This required all the banks to deposit a 25 point amount with the Reserve bank so that the bank would not loose or be affected by the failure in any of the banks operations. Having seen the above, we will agree that such a policy would touch the major corners or factors of the economy, thereby providing a benchmark for economic development. This would create a sense of security within business operations, and the final result would be realization of economic sustainability in the stated period, that is before December 30th 2009.

Generally, these changes would have necessary impacts on the entire economy of Australia. As we have noted, a number of experts have been projecting a reduction in the unemployment rates within, before the period ends. This will be caused by the willingness for a number of people to invest in the promising economy of the country (Stefano, 2008). This will be applicable as a major tool that will fuel the economy. Also, the presence of minimal reserve amounts in the Reserve Bank has been a key strategy that ensures that almost all the funds are used in economic developments. The presence of security in the banks operations has also been playing a major role in improving the countrys economy. The economy of Australia is supported by trading industry. This is so because even all the manufacturing industries produce goods that are put into the market for trading. This is why the Central Bank has been there to apply the Open Market Operations to bring the necessary changes in the money demand and supply (Ekins, 2000). This means that the economy can achieve equilibrium in funds and market trading.

The period for this policy has almost ended, but the necessary aims have been achieved from this Monetary Policy. In conclusion, the Australian Monetary Policy has been a useful tool which has seen the economy increase and advance in terms of its sustainability. This has brought about necessary mechanisms for driving the economy to the positive. This plan has ensured that the inflation rates have been brought down. After seeing the interest rates increase for the first quarter of the period, there were some conjectures that the policy was a total failure, but later positive developments started to emerge slowly by slowly. This has ensured that the interest rates have been increasing to increase the countrys revenue. After putting in place all the necessary strategies in the country, it is inarguable that there are a number of developments which have been recorded in the economy. There have been increased employments, reduction in inflation rates, and control of open market operations (Stefano, 2008). This means that the Australian Monetary Policy has not at all been a failure, but a stepping stone to a better economic performance.

This post discusses my journey towards the horizons marked with leadership and success. It states how I achieved my dreams through hard work and perseverance. The beginning of this journey was not so pleasant as I was not satisfied with my early years in school. But as I crossed the borders, I realized the big opportunities that lay ahead and how I just have to have trust on myself and my abilities to achieve them. I have now become someone I can be proud of. I have reached the point that will make my father proud of me for he was my role model, my first and foremost teacher. It is the story of my challenges and achievements. The following pages hold the journey of my life in a nutshell.

Describing Myself
Seung Hyun Yoo is my name, and whenever I read my name written in a bold and steady script, I wonder what it would be like if it appeared in the list of Top Ten CEOs of the world. The desire to be the best CEO seems to run in my blood for my father is also one. As he is the CEO of the highly esteemed and thriving Ganong industry in Korea, I feel I have inherited business aesthetics and leadership skills from him. I want to be a good CEO who is recognized globally for his work.
A major part of my life was spent in South Korea. I grew up in Seoul, acquiring a strong base by studying in one of the most prestigious public middle schools. My grades however, were not what I envisioned because I had difficulty fitting in the education system in Korea. This was my very first challenge. I had to float in a system that threatened to drown me had I not been hard working and a go-getter. My first achievement was graduating in flying colors that compelled me to pursue my studies in the USA. Hence, I decided to attend a boarding school and chose St. Johns Northwestern Military Academy in Delafield, Wisconsin which was perfect to polish and bring out the real leader in me.

Life was not easy and I knew there were many more challenges in store. The second one was to get myself accepted among my school mates as a respected and hard-working student. Getting used to the military life was a tough ride at first. However, I knew that I had to adjust and I successfully strived to settle in. The students started accepting me which was another big achievement. I had found my place.

As the sophomore, I added another feather in my cap by getting a GPA over 3.0 and an important position as the squad leader. My job was to take care of six cadets carry out daily inspections and teaching drills, and work towards setting a good example as a leader. I felt this was not enough challenge for me hence I also got myself enrolled in two AP classes. Even with the grueling schedule and rigorous workload, I achieved the status of a model cadet. I also received many military awards as  the winner of the squad competition, the Honor Company, and the Presidents Challenge. As the year neared its end, I finished with a 3.6 GPA and earned my second Deans List Award. My achievements make me stand tall and proud. When I think about my low GPA in Korea, I honestly feel I have come a long way.

In the final year of my high school, I was invited to SJNMA CADRE, a leadership camp for only a few selected cadets. I am now a lieutenant a platoon leader, and the head of the Foxtrot Company which is the best company in school. My current GPA is 3.9 and I am taking one AP and Honors class. I continue to demand more from myself. The real attraction for me lies in being a leader. By attending St. Johns Northwestern Military Academy I have became a strong student, leader and a confident man ready to continue my journey towards the limitless skies.

Sierra Leone is one of the many African nations which despite their many natural resources have remained way below in the economic growth ranking on the globe. Marked with many civil and military rules since its independence, this West African nation has for years attracted the United Nations to send peace keeping troops to oversee the security of its citizens. It should be noted here that peace and sustainable security are the most crucial factors towards realizing economic growth in any nation (UN office for the Coordination of Humanitarian Affairs). It is in fact due to the many decades of conflicts in Sierra Leone that the nation has been listed by United Nations as least viable nation for sustaining humanity. This has been mainly attributed to the notably high poverty levels as well as the poor quality of life which the citizens have been exposed (Kanu 57). Clearly noted is the fact that sierra Leone is overly dependent on mineral exploitation at the expense of investing in its potential viable agricultural and industrial sectors. This is basically what makes this nation a major import of food stuffs and textile, a cost which exceeds its actual annual exports. All this equates to poor governance as sound government policies are more involving to the long term sustainability of a nations economy rather investing heavily on exhaustible natural resources. It should however be noted that since the end of the disarmament exercise led by UN peace keeping troops in 2004 has evidently instilled a major peace and economic stability in the nation.

This post is a research on the republic of Sierra Leone. The author gives a discussion on the geography, political environment and on the population of Sierra Leone. The author also gives a critical discussion about the economic growth that have been witnessed in the nation up to date and it implication to the living standards of the citizens.

Sierra Leone as a republic
    The republic of Sierra Leone is found in the western region of the African continent. It is a small nation whose total area is approximated to be 71,740 square kilometers with a population of 6.4 million citizens (U.S. Department of State). Bordering Sierra Leone are nations like Guinea and Liberia to the northeast and southeast respectively. To the southwest the West African nation borders the Atlantic Ocean. This makes it to house Queen Elizabeth Ii Quay which is claimed to be the third largest sea harbor in the world. Being a constitutional sovereign nation, Sierra Leone is comprised of three provinces and fourteen districts which act as government bodies of the nation.

    To be noted here is the fact the nations 6.4 million citizens are from sixteen varied ethnic group each of which has its own language and cultural customs. However, of all this many tribes, only two are evidently dominant as they make up to 30 percent of the nations population (Kanu 61). This is the Mende who mainly occupy the south eastern province and the Temne tribe predominantly found on the north and west area provinces of the nation. It is however to be noted that the population of Sierra Leone is evidently marked with the different ethnic groups tending to dominant a district if not a province. A unique ethnic group in the Sierra Leone nation is the Krio tribe. This group is mainly comprised of freed slaves from both West Indies and the United States of America and is the main occupants of the nations capital city Freetown (Hirsch 101).

    The climate of the nation is tropical type just like other West African nations. This is mainly owing to the fact that it borders the Atlantic Ocean. Another reason is that the nation closely neighbors the equator being only on the 7th parallel north of the equator. The nation experiences dry and rainy seasons between the months of December to may and may to November respectively. It is however to be noted that the nation as a diversely varied environment which ranges from savannah to rainforests. Still to note is the fact that the nations forest cover has greatly reduced over the last past few decade (Kanu 21). This has been attributed to the extensive and unregulated logging and mining practices in the nation. Such decrease in forest cover has also been claimed to the cause of the reduced overall wildlife population in the nation.

    The Sierra Leone nation is formed of mixed religious faiths among its many ethnic groups. However, Muslim religion is the most popular religion as it forms an estimated 65 percent of the population.  Here the Mandinka ethnic group is the leading Muslim believer with over 99 percent of its members being Muslims (U.S. Department of State). They thus evidently know for upholding Islam in their practices. The Christian believers form an approximated 30 percent of the all population while the remaining 5 percent are African indigenous religion believers. It is due to such mixture of religion in this nation that the Sierra Leone constitution recognizes and protects freedom of religion. This recognition and protection of the freedom of worship the nations has been seen by many as the main reason why the nation has rarely witnessed any religious conflict unlike other African nations.

History of Sierra Leone
    According to archeological evidence, Sierra Leone has been inhabited by humans for over 2,500 year by varied tribes from different parts of the African continent (Hirsch 41). Historians have on the other side claimed that the dense tropical forest in the nation could be the major reason why it was never threatened by powerful pre-colonial African empires. The recognition of the Freetown harbor by the Portuguese traders in the mid 15th century however marked the subsequent exploitation and colonization of the nation by the Europeans in mid 16th century. It is to be noted here that during this time Sierra Leone was acting as a trading point for slaves (U.S. Department of State).   However, attempts by the Europeans to colonize Sierra Leone during the 17th and 18th centuries were greatly hampered by diseases and the natives hostility to the colonists. Historical evidence has in it that such attempts were executed through resettling formerly enslaved Africans in the nation along with some whites. This saw the liberation and settlement of many slaves or Krio in Freetown.

    Due to the dominance of trade by the Krio community with the Europeans, colonizing sierra Leone was easily realized in the early 20th century making Freetown the official home of the British governor who oversaw other British colonies such as Ghana and Gambia. To be noted is that even with the many struggles and fights against the Krios and the whites by the natives, they rarely succeeded to overthrow their dominance until in 1951 when a new constitution that provided for a decolonization framework was implemented. This process continued until 1961 when Sierra Leone officially gained its independence. However, the Sierra Leone nation has ever since its independence been a victim of civil and military rule and conflict until 2004, a factor which has greatly compromised its economic and infrastructural capacity (UN Office for the Coordination of Humanitarian Affairs).

Government and politics of Sierra Leone
    After experiencing many military and civil governments, a new constitution for the nation was drafted and adopted in 1991. The constitution recognizes the nation as a republic which is governed by a democratically elected president and a unicameral legislature as well as having a judicial arm of the government (Kanu 21). It is however to be noted that 1997 marked the worst political era of the republic owing to the violent overthrow of Kabbah the then civilian president by a military coup led by Koroma. It has been claimed that it was during Koromas military rule that the economy of Sierra Leone got its worst depression. It was also during his era that many of those perceived to be political enemies were murdered. However, this ended with the reinstated of Kabbah as the president in 1998 through the help of the Nigerian led peace talks but this never went without eminent attacks from political rebel forces. Such forces have been evidently been claimed to have been strong supported by the Liberian government due to its interest in dominating the nations rich diamond fields (Kanu 61). This led to a joint attack on the nation by rebels and Liberian mercenaries who wanted the release of the revolutionary united front leader Sankoh. Such conflicts led to Sankohs release and eventual signing of a power sharing deal which saw Sankoh become the nations vice president until 2000 when he was captured and eventually died in custody following his partys abduction of UN peacekeepers in the nation. Sankohs capture led to an intensified human conflict in the nation which left an estimated 50,000 people dead forcing for UN to initiate a disarmament operation in the nation which saw over 70,000 solider disarmed by 2004 (UN Office for the Coordination of Humanitarian Affairs). This move has evidently improved the human conflict situation in the nation and thus increasing the democratic space for the people. This is evident from the success democratic elections of 2007 which saw Ernest Koroma become the current president of the nation.

The economy of Sierra Leone
    Dispute the many natural resources such as minerals, agricultural and fishery, Sierra Leone has evidently remained one of the poorest nations in the world (Kanu 58). This has been closely with the recurrent civil wars which have been witnessed in the nation up to 2004. This is because such evidently hampered economic activities in the nation as well as discouraging investors. Also, such conflicts have been accused of the serious destruction of the nations infrastructure and its export base. Still to be noted is the fact that most of the nations wealth has been drained in supporting the war.

    It is however to be noted that the economy of the nation is currently experiencing remarkable signs of recovery to attain sustainable growth. This is because following the increasing peace in the nation, investors and potential customer confidence is seen to be constantly increasing. In 2008 alone, the nation recorded a GDP of close to 2 billion (Hirsch 213). This was a great growth from the estimated 11.7 percent inflation rate in its economy in 2007. Economists projections have also identified that the nations economy will grow by two percent in the year 2009. It should be noted that such have possible due to the increased freedom of movement among the people of Sierra Leone as well as the successful resettlement of the displaced citizens. This means that they can contact their day to day

    Sierra Leone has its economy highly viable due to the fact that it has many exploitable resources. First and foremost, this nation is in the top ten list of diamond producing nations in the world. Export of diamond for example earners the nation an estimated over 250 million annually (Kanu 62). It is however to be noted that historically the nation have made many struggles to control the exploitation and exporting of its minerals. Nevertheless, the current political environment in the nation is quite viable, a factor which has seen an increase in the number of genuine investors in the mining sector. Such has also reduced the rates of smuggling of minerals from the nation. It is to be noted that current is experiencing increased international relationships which has ensured a sustainable market for its products.  Another resource is agricultural production. Two thirds of the nations population is engaged in subsistence farming. This alone has been found to account for an estimated 53 percent of the nations national income (Kanu 64). The current governments plans to have cash crops farming introduced in the nation is seen a highly viable project which will eventually increase the nations annually revenue collections. Such will also reduce the nations over reliance of minerals as their major export goods.

    The current economic growths being experienced in Sierra Leone have been a direct result of the finding of peace in the nation, support from the IMF and World Bank and other bilateral donors as well as increasing investors confidence. Statistics show that in 2002 Sierra Leone managed to have over 900 million debit relieved by IMF and World Bank (Kanu 64). Many bilateral donors on the other side have increasing funded the nation. Such funds have and are still being used for improving the nations poverty reduction policies. The policies have overseen the decentralization of government functions. It is to be realized that it is only through decentralized governance that a nation can claim to be equitably distributing its resources.

    Still identified to the current economic situation of Sierra Leone are the early governments implementation good governance policies, improved education and the creation an effective nations security system (UN Office for the Coordination of Humanitarian Affairs).  Also, the relatively effective corruption in the nations government is a possible cause of such growths.  To be noted here is the fact that the sole purpose of any government is to protect its citizens and their activities. The realization of just and fair competition in the society calls for the implementation of good governance policies. It is only by having good governance in a nation that we can claim successful fight on corruption. Just is none to all, corruption is the second most destructive element of a nations economy after civil conflicts. It is in fact due to this reason that many nations like the Chinese republic regards large scale corruption cases among its citizens as a capital crime punishable by death penalty (Kanu 71). Based on this, Sierra Leone governments efforts to combat corruption could be highly attributed to the economic growth that the nation is currently witnessing. Still, it is in the interest of every investor to have an assurance of security for his or her investment. The Sierra Leone governments move to have an effective police force in the nation is seen as a great incentive to both investors and consumers.

    It is however to be realized that the government of Sierra Leone is evidently facing many drawbacks towards realizing a sustainable economic growth. First is the problem of the governments over reliance on mineral mining as their major economic activity (Hirsch 215). It is no doubt that this West African nation is a leading producer of diamond in the world. Still to be noted is the fact that such exports have a great potential for improving the living standards of the nations citizens. It is however evidently clear for an economic point of view that mineral as a viable resources are exhaustible and thus can eventual lead to the ultimate fall of the nations economic. It is owing to this that the governments over reliance on mining are seen by many as a great failure for a visionary government. This denies the Sierra Leone government the chances of diversity in the international marketplace.

    Another drawback is the high levels of unemployment in the nation. The economic actual measure of a nations economic worthy is dependent on the living standards of its citizens. This means that the level of employment among the citizens should be far much high compared to that of unemployment. This problem in Sierra Leone has however been closely attributed to the slow pace which the government is taking to implement reforms in government offices (Kanu 91). It should be noted that failure to remove corrupt and non-performing elements from government equates to the governments failure to ensure fast expansion of its economy and thus creation of more jobs. Another reason for the low employment levels in the nation is the slow pace of privatization of public corporations (Kanu 99). Privatization programs have evidently not only improved many nations revenue but more have led to the fast growth of the corporations thus accommodating more workers. It is to be remembered that such delays of the privatization program has evidently led to donors sanctioning their economic support to Sierra Leone nation.

    The last problem affecting the economy is smuggling of minerals particularly diamond from the nation. These acts are a major drawback to the overall revenue collections. It has been evidently claimed that such incidences of smuggling of diamond are the main catalyst to the recurrent insecurity particularly in rebel dominated regions. This is threat to investors and the process of realizing a legitimate economy in the nation.

    It has been evidently established that Sierra Leone is a land of varied and highly viable economic resources. The nation is not only a land of valuable minerals but also a major trading base due to its Queen Elizabeth Ii Quay harbor. Still clear is the fact that the nation has a great potential of producing both agricultural and fishery products. Also to be stated is the fact that even with no much civil conflict in the region, the economy of the nation has not sufficiently grown.  It is owing to this reasons that the government should be more vigorous while dealing with investment policies for the nation.

Stiff Competition from foreign enterprises due to globalization has affected almost every undertaking in international trade. Lots of firms are in search of opportunities to penetrate other foreign markets and spread out in the already penetrated ones. They franchise, license, export, andor do express foreign investment.

The Gulf Cooperation Council (GCC) is made up of the Arabian Peninsula which comprises the Bahrain, Kuwait, Saudi Arabia, Qatar, the Sultanate of Oman, and the United Arab Emirates, all of which are situated in the Southwestern area of the Asian continent. The GCC was founded in 1981 with an objective of promoting coordination among constituent states in all fields therefore achieving unity (EIU, 2009). The GCC economies have in the recent past been a worldwide focus in investment due to their strong infrastructural projects and thriving tourism and financial sectors, in addition to being exporters of oil and gas. The GCC investors have been noted to expand their investments to Africa, Asia and within the Gulf expanse, even as the US slowed in economic growth.   The economic slowdown by the GCCs major trading partners in addition to the recent drop in oil prices has had its effects on the GCC economies.

It is expected that these economies are going to experience stronger economic growth due to the advantages they bear on their major investments. Surveys conducted by agencies such as the daily Emirates Business have predicted a hike in the prices of crude oil which is in turn going to accelerate the economic growth of the GCC states which are rich in oil. According to them, only a major decline in the prices of crude oil can invalidate the growth trend. In this point of view, a higher standard price of oil in 2010 will lead to growth in the nominal GDP all over the GCC economies (Shuchita, 2009).
It was in addition revealed that frail demand from the importing nations together with a key plunge in oil prices might negatively affect the green prospects of development in the region. A small portion of people in the survey said that they do not perceive any dip in oil prices nevertheless weak demand from importing nations can be an obstacle. Additionally four per cent of responds also said that continual crisis in the globe can derail growth and an extra four per cent believe regional political apprehension as a hindrance factor.

In the wake of the current world financial crisis, banks in the GCC see this as the right time for consolidation. The GCC banks have witnessed an expanding growth through the recent years since 2002. For instance banks in Qatar which is one major economy in the region recorded a growth of 50 (EIU, 2009). Now, banks in the Gulf region are more concerned on coping with fallout from the worldwide financial crisis and its shock on some family-owned organizations. The majority of banks that had deferred their expansion strategies are now considering mergers and acquisitions to expand their operation. The Kuwaiti banking sector for instance is potentially ready for mergers. As many of the Kuwaiti banks identitys  they have simply a very limited number of fresh customers coming into the market yearly, thus they have to struggle hard to draw them.   

Although mergers and acquisitions among the banks are no universal remedy, if the banks get this right they might be in a better position to claim their duty in the fresh financial order in the world. The proposed single currency for the Gulf region in the 2013, may add momentum to this shift. I this point of view, there is enormous prospective for the region and its financial institutions to play a key part in financial intermediation on a worldwide scale.

Tourism and travel in the Arabia is growing very fast. A  research by Fast Future and Global Futures and Foresight has revealed that an astounding 3,630billionn is now  invested in projects such as airports expansion, tours and travel, hotels, holiday projects,  and other infrastructure transversely thirteen Middle East countries going up to 2020 (Blitz, 2008). In Dubai, many conferences have been held relating to the subject of hotel investment in the Arabia, and many issues have arisen that relate to manpower. High quality services have to be maintained across the area, since any compromise on this matter will be disastrous to Dubai which has been a favorite destination.  This translates to investment in training manpower as well as maintaining incentives attractive enough to keep them in the face of global competition.

Millions of staff needs to be recruited into the region every year until year 2020 (Blitz, 2008). The resource team evidently requires being extensive and some are aggressively targeting other continents such as Africa and South America. The GCC is experiencing a business growth too fast to be compared to any other economy. It is however interesting to note that all GCC states are making considerable progress towards liberalizing their policies which relate to investment and economy, therefore facilitating a conducive environment for business and trade.

The GCC is expected to grow to an important economic and trading hub in the word. In 2020, the GCC is expected to be a US 2 trillion economy, getting almost one-quarter of oil supplies in the world in addition to increasing productions of petrochemicals, plastics and metals (EIU, 2009). As economic influence gradually turns towards the south and east, up-and-coming markets will become progressively more important trading partners and venture destinations. Gulf investors and supreme wealth funds are expected to expand their assets into Asia and Africa moreover the region is expected to export much of its oil to countries under industrialization.

International monetary fund is a global organization that oversees the world financial system by tracking the macroeconomic policies of the affiliate nations especially the policies that affect the exchange rates and the balance of payments. It was established in 1945 with 45 founding nations with the aim of stabilizing the exchange rates and helping in the reconstruction of the global payment system. It had been formerly created in 1944 during the United Nations Monetary and Financial Conference when representatives from 44 governments met in Bretton Woods, New Hampshire and agreed on the framework for international economic collaboration. The framework was important to avoid the earlier disastrous economic policies that had led to the Great Depression of the 1930s. The countries had tried to support their declining economies by reducing imports, devaluating their currencies and limiting the capacity of the citizens to buy imported goods which only worsened the situation. International trade continued to decline and employment and living standards dropped in most countries. Thus the countries sought to restore order in global monetary affairs by forming an organization that could oversee the system and restrict policies that could hinder trade. The countries contributed to a pool which they could borrow from when they experience payment imbalances. The functions of the IMF are supplemented by the World Bank which was also established at the same time. The World Bank is mainly concerned with long-term development and poverty reduction initiatives.

    The membership of the organization increased over the years and now stands at about 186. During the 1960s, membership increased when most countries that gained independence joined the organization and again in the 1990s as the member states of the former USSR were welcomed after the dissolution of the USSR. The needs of the new independent countries and the transition countries were quite different from those of the founding members hence the organization had to have new instruments over the years. The organization has continued to develop programs and policies that are geared towards helping the member countries meet their challenges.

Role of the IMF
    The primary purpose of the institution is to ensure the stability of the international monetary system. The international monetary system is the system of exchange rates and global payments that enable nations and people to buy goods and services from each other. This is very important to ensure sustainable economic growth and increasing cost of living. In order to maintain stability and avoid crises in the international monetary system, the organization reviews national, regional and world economic and fiscal progress. It provides advice to the member states on how to adopt policies that can stimulate economic stability and reduce their vulnerability to economic and financial problems and improve the living standards of people. The organization serves as a forum where the member countries can discuss the effects of their policies. The IMF also avails funds to the countries so as to meet their balance of payments difficulties. This occurs when the countries are short of the foreign exchange whenever their foreign income is less than the payments they are making to other countries.  The other function of the IMF is to provide technical assistance and training to the countries so that they are able to expand the expertise and institutions required to attain economic stability and development (Danaher, p 50).

    The countries that join the IMF must accept that their economic and financial policies can be scrutinized by the international community. They also make a commitment to institute policies that are favorable to foster economic expansion and price solidity. They cannot manipulate the exchange rates for undue competitive leverage and must avail their economic data to the International Monetary Fund.  Through a program known surveillance, the IMF regularly monitors economies and the related technical advice offered to identify the setbacks that can cause problems. The country surveillance involves annual comprehensive discussions with the countries referred to as the Article IV consultations. During the discussions, the IMF team   goes to the country to collect economic and financial information and hold talks with the government officials. The findings of the team are taken to the IMF management and the Executive Board which then gives its views to the countries in question. As a result, the views of the global and the realities of international experiences impact on the national policies. The IMF also carries out Global Surveillance reviews of world economic trends and developments based on the World Economic reports and Global Financial stability Report. The reports cover improvements, predictions and policy issues in international financial markets. There is also regional surveillance which is concerned with the assessment of policies undertaken under regional agreements within the regional blocks. The three levels of surveillance are being integrated due to the increasing interdependence of the countries economies (Danaher, p 65).

    Through its oversight role of the member countries in the macroeconomic and financial sector, it focuses on the policies affecting the countries budget, the administration of money and credit facilities and the exchange rate. It also oversees the macroeconomic organization which includes state and consumer spending, the investment sector, international trade, the gross domestic product, employment and price increases. It also focuses on the balance of payment, the financial sector policies and structural policies that impact macroeconomic performance (Baumol, p 374).

      All countries are free to turn to the IMF to get funds if they experiences balance of payment problems when they fail to receive adequate funding from the capital markets. It does not act as a financial institution or an aid agency that gives loans but the loans are only aimed at tackling balance of payment problems, economic stabilization and restoring sound economic development. It does not finance development projects as the World Bank and development institutions do.  From the 1970s, the developing countries have been the main beneficiaries of the IMF funding programs. Today, the developing countries and countries undergoing transition are the main borrowers from the International Monetary Funds. The loans only provide a small fraction of what a country needs to finance the required balance of payments. The lending programs fall into three categories namely Stand-By arrangement, extended fund facility and the poverty reduction and growth facility. The stand-by arrangements are intended to address short-term balance of payments difficulties for countries experiencing capital account problems. The Extended Fund Facility is used to deal with balance of payment problems caused by structural problems that may take longer to be rectified than macroeconomic differences. Such a program includes actions aimed at improving the markets and the supply segment of the economy like taxation, privatization arrangements and fixing the labor market. The Poverty Reduction and Growth Facility involve concessional loans which attract interest rates of 0.5 per year and a maturity period of one decade especially to the poor countries. Apart from the above programs, the institution also provides Emergency Services to countries faced with balance of payment crisis due to natural disasters or political problems (Baumol, p, 374).

    The IMF provides technical assistance and training in different areas including national banking, fiscal and exchange rates policies, taxation and management of official data. The main areas include monetary and financial policies, fiscal policy and management, management of statistics and economic and financial legislation. The advice helps to enhance the design and implementation of national economic programs. The technical assistance program was started in the 1960s when the newly independence countries required such a program in setting up their national banks and finance departments. The technical assistance is geared towards aiding the countries in strengthening the monetary system, enhance collection and release of official data, reinforce their taxation and legal regimes and improve the management of financial institutions. In the recent past, the technical assistance has been used to expand the structure of the international financial system. The technical assistance is especially valuable to countries that need to redevelop their institutions in the aftermath of civil unrest or war. The low-income and lower-middle-income nations are the main beneficiaries of the IMF technical assistance programs.

    Technical assistance is provided in different ways. The IMF experts may be sent to the countries to offer advice to the governments and top financial sector officials. The IMF may also deploy resident professionals for a given time period either short-term or long-term. The institution also gives training to government and national bank officials at its main office in Washington DC and the regional offices in different parts of the world. The funds for technical assistance are availed by some of the developed countries and international agencies.

The IMF and Developing countries
    In the recent past, there has been an emerging agreement that the IMF should stop its lending to the developing nations since it was not its appropriate role to play. The fund could do more if it dealt with the financial tragedies even though its performance in this area has been largely questioned. From the 1980s, most customers of the IMF comprised the low income and emerging economy countries as the developed countries depended on capital markets. Over the years, the IMF never preferred disengaging from the low income countries and its role increased in the 1990s after the initiation of the Heavily Indebted Poor Country (HIPC) policy. Through the program, the poor countries were to find a way out of the debt crisis facing them. In 1999, the program was remodeled to become the Poverty Reduction and Growth Facility (PRGF) which increased the lending to the poor countries. The lending program and the IMF supported initiatives in poor countries have come under scrutiny. The issue under contention is whether the policies proposed by the IMF have a negative impact on economic growth, welfare spending and income distribution in these countries (Bird, p 2).

    The role of the IMF in the developing countries can be difficult to discuss due to their diversity. Some of the countries perpetually experience balance of payment problems while others do not. Many of them seek the assistance of the IMF to deal with their balance of payment problems but not all of them are always eager to do this. Furthermore, for those that seek IMF assistance, while some become constant users of the Fund facilities others do not. Some of the countries posses low levels of global resources while others are well endowed. In addition, while some can easily access private capital sources most of them lack this privilege but rely on foreign aid yet the level of reliance on these facilities varies. For a clear comparison to be successful, a broad statistical picture should be presented (Bird, p 3).  

    The IMF was originally formed to maintain a standard of fixed exchange rates but after the removal of the gold standard in 1971, its role changed to providing loans to countries in problems. Those nations that experience balance of payment problems turn to the IMF for funds to cover the existing obligations to the external creditors. The other private lenders will only give funds to troubled countries if they have a loan agreement with the International Monetary Fund. As a result, the developing countries can only access external credit facilities if they have dealings with the IMF. Some of the agreements advanced by the IMF contain preconditions that force the countries to implement structural adjustment programs before they receive the loans. Structural adjustment programs are policies connected to the neo-liberal market policies which are aimed at opening up the countries to transnational corporations especially to the workers and natural assets.  The policies also try to reduce the influence of the government, increase the reliance on market forces in the distribution of natural resources and incorporate the poor countries in the world economy. Some of the policies include privatization of state owned businesses and services, reducing government spending, aligning the economies to increase exports , trade liberalization and investment regulations, increasing interest rates, and removing subsidies on basic commodities (Bird, p 5).

    The model adopted by the IMF dealing with the developing countries has several pros and cons. On the brighter side, the Fund has been able to provide financial support to countries that could not have got such an opportunity anywhere else. Generally, the IMF performance in promoting a stable international exchange rate system has been hugely successful even though it has been hugely criticized. The stabilization programs have managed to prevent currency problems in most countries especially in countries with minimal state intervention in the financial sector (Dreher, p 2). The IMF is able to influence the economic policies and results in the countries through the policy conditions attached to the loan agreements. On the other hand, the lending by the IMF may lead to a long-term dependency on the loans by the countries yet they are supposed to be short-tern measures. The ability of the IMF programs to help the countries has been questioned as most of those that have been helped are possibly poorer than before. Worse still, repayment of the loans is a huge burden to the developing nations as they end up spending more money on repaying the loans instead of financing educational and health programs (Dreher, p 23). 

     The structural adjustment programs have only succeeded in reducing the role of governments in the market and bringing the poor countries in the world market but they have also carried serious side effects. The policies open up the poor countries to the foreign investors, a fact that mainly benefits the transnational companies. The Third World countries are forced to eliminate obstacles to foreign investment and align their economies to be export oriented which favors the transnational. The privatization programs are also dominated by the transnational that purchase most of the government owned enterprises.  The loan bails out arrangements generally benefit the foreign creditors who never absorb the cost of bad debts from the poor nations and this has encouraged excessive lending from the agencies while the poor nations accumulate huge debts.  Many of the countries which have undergone structural adjustment programs have not always recorded economic growth. On the other hand, those that have dishonored some of the preconditions have managed to experience considerable economic development. The countries mainly sheltered some sectors of the economy and retained state control in the economy. The two regions heavily affected by structural adjustment policies were Latin America and Africa has experienced stagnation or collapse in the per capita incomes (Selowsky, p 50).  

    The emphasis on the export oriented economy has led to social disruption in the rural areas of the poor countries. This affects the poor small scale farmers whose economic activities are considered unviable and are under intense pressure from the expanding agribusiness and industries. After they are pushed out of the farms, they join the unemployed groups in towns or to resettle in formerly unoccupied areas. The programs have contributed to widening income and wealth disparities in the third world countries (Selowsky, p 50).

     The Asian financial crisis of 1997 was largely attributed to the dependence on short-term foreign loan by the countries in the region. When it became clear that the private businesses could not cover their payment obligations, the international currency markets started to panic and converted the Asian money into dollars. Consequently, it became difficult for the Asian countries to repay their loans and the import of goods became a problem. When the IMF intervened, it treated the situation like others where countries fail to meet their balance of payments. It gave the countries loans to help them to cover their external debt obligations with preconditions that they adopt structural adjustment programs yet the crisis was different from the balance of payment problems. Most of the countries were not running budget deficits but the institution directed them to reduce their spending, a measure that worsened the economic slowdown. The IMF failed to institute a proper change over from short-term to long term credit facilities which was necessary and forced the countries to undertake private loans outstanding to external creditors.  Malaysia which declined the assistance and advice given by the IMF was able to avoid a harsh economic backlash as compared to other countries (Danaher, p 80).

    A more recent case of the impact of the IMF policies can be understood by considering the case of Turkey and Argentina. The two countries were faced with financial problems in 2001 which led to disastrous social and economic consequences. The countries followed different routes in the recovery programs from the problem. While Argentina refused to take the assistance given by the IMF, Turkey recovered by accepting the intervention of the IMF. Turkey, with the outstanding assistance given by the IMF instituted a strict structural adjustment plan as per the IMF guidelines. Argentina was shunned by the external lenders including the IMF in the face of the problem. It was forced to default on the loans and restructure on its bonds. After several years, both countries recovered from the problems but with different results. In the case of Turkey, the recovery was faster yet it has not been very healthy while in Argentina was able to experience increased growth, reduced unemployment and a better balance of trade as compared to Turkey (Ozremir, p 1).

       From the above discussion, it is clear that the programs endorsed by the IMF on the developing countries are leading to more harm than the available positive results. The programs are only addressing the short term problems but cannot solve the long term solutions required to take this countries from the doldrums of poverty.  Instead of the Fund being a cure to the problems in these countries, it is turning out to be a big curse. The programs themselves are sound but the preconditions attached to the loan facilities are the Achilles heel. It will be better if the loans were given without detrimental conditions or simply for the IMF to concentrate on its core role of stabilizing the exchange rates.