Tuesday, December 24, 2019
The Ethics Of The Enron Collapse Of Enron s Bankruptcy
sprees, wild corporate ââ¬Å"gatheringsâ⬠became the norm. Employees who could not afford the lavish lifestyle created at Enron began to take a toll on them. Trying to keep up with the crowd, lower level employees found themselves maxing out their credit cards and putting themselves in debt. This created an environment that seemed to worry less about earning actual profits. According to Li (2010), shareholders and employees were told by Enronââ¬â¢s CEO the stock would probably rise but did not disclose he was selling his stock while telling everyone else to buy. Shareholders were completely unaware of the irregularities going on at Enron and were constantly lied to about the companyââ¬â¢s actual health. Actually, employees were never told by any of Enronââ¬â¢s top management team, the true status of the company. Li (2010) stated not only until the investigation surrounding Enronââ¬â¢s bankruptcy enabled shareholders to learn of the CEO stock sell-off before February 14, 2002 which is when the sell-off would otherwise have been disclosed. However, the most damaging act was committed by the accounting firm Arthur Andersen. According to Li (2010), their reputation was damaged by their admission on January 10, 2002 that employees of the firm had destroyed documents and correspondence related to the Enron engagement. The shredding of documents was a clear admission of guilt which eventually caused Arthur Anderson to also file for bankruptcy. Auditorââ¬â¢s reputation is based on being reliable, honest, andShow MoreRelatedEnron : A Model Of The Innovative Company1684 Words à |à 7 PagesEnron Enron began in July 1985, and its headquarters were in Houston. It started from a small regional energy supplier. However, Enron was dissatisfied with the traditional way of doing business, so it began to look toward energy security. Enron s management believed that the creation of derivative securities market for any commodity was possible, so Enron developed energy commodity futures, options, and other financial derivatives. Energy deregulation brought this company great commercial opportunitiesRead MoreFailure Of Responsible Management : Enron Corporation1645 Words à |à 7 Pagesmanagement. The Enron Corporation is an example, because Enron event is the typical case for organization failure of responsible management In the end of 2001, Enron scandal has been disclosure, Enron stock prices slumped, and its financial tricks was exposed. The Securities and Exchange Commission (SEC) began survey of company s records. Enronââ¬â¢s auditor ââ¬ËArthur Andersen ââ¬Ëdestroys relevant documents. (Ailon, G. 2011) Enron was bankruptcy in December 2001, and became the largest bankruptcy case in AmericanRead MoreEnrons Business Ethics Failure1485 Words à |à 6 Pages2. The Fall of Enron ...............................................................................4 3. Enrons ethical dilemmas ..................................................................6 4. Conslucions .......................................................................................7 5. Bibliography ......................................................................................8 1. Overview The goal of this report is to analyze business ethics in the contextRead MoreEnrons Impact On Enron1417 Words à |à 6 Pagesââ¬Æ' Many questioned how Enron made its money as no one could verify their revenue that they continually raised each quarter. Even with these questions in the back of people s minds, they continued to believe Enron s executives. Enron was an U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron s executives employed accounting practices that falsely inflated the company s revenues, which, at the height of the scandal, made the firm becomeRead MoreEssay on The Consequences of Bad Business Decisions1304 Words à |à 6 Pagespractices. Once respected businesses like Enron, WorldCom, and Arthur Anderson have been found deceiving there customers, stockholders, and employees. C.E.O.s try to achieve the American dream and pursue capitalism to its fullest potential. In doing so, business leaders have lost their values and ethics, and make bad business decisions. The downfalls of a company are the consequence of C.E.O.s bad decisions. According to Marjaana Kopperi business ethics, can simply be defined in terms of socialRead MoreEnron: Questionable Accounting Leads to Collapse2056 Words à |à 9 PagesEnron: Questionable Accounting Leads to Collapse The Enron Corporation was established by integrating two major gas pipelines in 1985. The Company provided products and services related to natural gas, electricity, and communications and it was one of the worldââ¬â¢s leading organizations at these sectors with claimed revenues of nearly $101 billion in 2000. Throughout the 1990s, Chair Ken Lay, chief executive officer Jeffrey Skilling and chief financial official officer Andrew Fastow transformedRead MoreHow Ethics Influence Behavior in Organizations1010 Words à |à 5 PagesHOW ETHICS INFLUENCE BEHAVIOR IN ORGANIZATIONS In reality, there are some specific regulations governing our lives. However, regulations do not restrain everything. In some aspects, ethics play a much more important role than regulations. Ethics is ââ¬Å"the code of moral values or principles that governs the behaviors of a person or group with respect to what is right or wrongâ⬠(Daft amp; Armstrong, 2012, p.369). Unethical behavior is very common in organizations. When people need to make a decisionRead MoreEnron And The Collapse Of Enron1254 Words à |à 6 Pagesbelow one dollar. This happened to shareholders of Enron. The total debt amounted to over $ 16 billion, which was the largest corporate bankruptcy in American history. Shareholders lost 60 billion dollars within a few days, 4500 employees lost their jobs, and the employees lost billions in pension benefits. I had never heard the name of Enron nor Enronââ¬â¢s scandal until I watched a film, ââ¬Å"Enron: The Smartest Guys in The Room,â⬠but I realized the Enron scandal affected the whole of the business in theRead MoreAndrew Fastow : The Enron Corporation And The Pioneer Of The Financial1067 Words à |à 5 PagesIn 1990 Enron market value increased from $3.5 billion to $35 billion by the end of 1999 (Ivey Business Journal, 2016). During this time Andrew Fastow was the chief financial officer of the Enron Corporation and the pioneer of the financial implication that brought Enron crumbling down. In this nine-year time frame this feat was admired by companies around the globe. Andrew received a CFO Magazine award for his work at Enron and had lavish parties celebrating the results of the quarterly earningsRead MoreEnron : A Look At Ethics994 Words à |à 4 PagesEnron: A Look at Ethics Enron is known worldwide for being responsible for one of the largest corporate scandals in U.S History (History.com Staff). This once well-respected corporation rose as high as number seven on Fortune magazineââ¬â¢s list of the top 500 U.S. companies and employed over 21,000 people (History.com Staff). However, after failed attempts of hiding their large-scale corporate fraud, corruption, and scandalous activites, the corporation was forced to file for bankruptcy which ultimately
Monday, December 16, 2019
Islam and Terrorism Free Essays
TABLE OF CONTENTS: Acknowledgement Chapter -1 1. 1Introduction Chapter-2 2. 1Islam 2. We will write a custom essay sample on Islam and Terrorism or any similar topic only for you Order Now 2 Muslim 2. 3 Concept Of Islam 2. 4 Pillars Of Islam 2. 5 Concept Of JIHAD In Islam Chapter-3 3. 1Terrorism 3. 2 Elements Of Terrorism 3. 3 Types Of Terrorism 3. 4 Terrorist? 3. 5 Al-Qaeda 3. 6 Another Phase Chapter-4 4. 1 Islam and terrorism Chapter-5 5. 1Different Incidents 5. 1 9/11 5. 2 The Madrid Bombing 5. 3 The London Bombing 5. 4 Bombay Attack Chapter-6 6. 1Conclusion CHAPTER-1 1. 1 INTRODUCTION: Terrorism is a very vast and the most discussed topic in the contemporary world of global politics. Although it was being discussed well before 9/11, but the difference after 9/11 is that now even a lay man in the most remote part of the world is discussing it. There were times when people would say that we do not follow politicsà or we do not get involved in politics. But now I think no one can run away from it, it is a part of everybodyââ¬â¢s lives, it is a part of our lives ââ¬â so we better start living with it. Terrorism is an old phenomena it over the time took different shapes. Today terrorism has taken a very complicated and dangerous form. Islam is a religion and a complete code of life and totally appose terrorism. In current scenarios the basic reason of terrorism is not Islam but international politics and national interest of the nations of the world. And world powers use it as a supportive pillars. ââ¬Ëââ¬ËIslam is not a source of terrorism but its solutionââ¬â¢Ã¢â¬â¢ Here we discuss Islam and Terrorism and the present phenomena of so called Islamic terror. This is now days at the top of the international agenda. That is because those who emerge and carry out acts of terrorism in the name of Islam. And those who criticize these acts , represent a tiny minority in the world of Islam. Failing to understand Islam which is religion of peace and justice hey make it a tool of terrorism. In fact from the last few centuries Muslim have been said to be responsible for violence by western forces and their allies. And on the other hand Islam And on the other hand Islam rejects to respond to violence with violence. In fact Islam suggest to respond to evil with goodness. CHAPTER -2 2. 1 Islam What Does ââ¬Å"Islamâ⬠Mean? The word ââ¬Å"Islamâ⬠itself means ââ¬Å"Submission to Allah. The religion of Islam is not named after a person as in the case of ââ¬Å"Christianityâ⬠which was named after Jesus Christ, ââ¬Å"Buddhismâ⬠after Gutama Buddha , ââ¬Å"Marxismâ⬠after Karl Marx, and ââ¬Å"Confucianismâ⬠after Confucius. Similarly, Islam is not named after a tribe like ââ¬Å"Judaismâ⬠after the tribe of Judah and ââ¬Å"Hinduismâ⬠after the Hindu s. The Arabic word ââ¬Å"Islamâ⬠means the submission or surrender of oneââ¬â¢s will to the will of the only true god worthy of worship, ââ¬Å"Allahâ⬠. 2. 2 Muslim Anyone who does indeed submit to the will of Allah as required by Islam is termed a ââ¬Å"Muslim,â⬠which means one who has submitted to the will of Allah. Many people in the West have developed the sad misinformed trend of calling Islam ââ¬Å"Muhammadenismâ⬠and itââ¬â¢s followers ââ¬Å"Muhammadins. â⬠This is a totally foreign word to Muslims and unrecognized by them. No Muslim has ever called his religion ââ¬Å"Muhammadenismâ⬠or called himself a ââ¬Å"Muhammadin. â⬠2. 3 Concept Of Islam: Islam teaches us that this life is a life of worship. We are placed on this earth in order to worship Allah and obey His command. During this earthly life we are subjected to a series of trials. We have the option of enduring these trials and conforming to certain laws, and our reward will be great in the next life, or we may decline to endure these trials and choose to not conform to the law, then we will be made to regret it in the next life. Unlike some other religions which claim that God entered in a covenant with a certain group of people and that this group is genetically better than all other human beings, or closer to God, Islam on the other hand teaches that no color, race, tribe, or lineage is better than any other. ââ¬Å"O humankind! Verily! We have created you from a male and female, and have made you nations and tribes that you may know one another. Verily! the noblest among you in the sight of Allah is the most God-fearing. Verily! Allah is The Knower, The Aware. â⬠The noble Qurââ¬â¢an, Al-Hujrat(49):13. 2. 4 Pillars Of Islam: (1) To bear witness that there is no entity worthy of worship except Allah(God) alone, and that Muhammad (pbuh) was His messenger. This establishes obedience to God Almighty alone. (2) To perform five prescribed prayers to God every day according to a specific prescribed method and at specific prescribed times. This continually reminds us to bear God in mind in all actions, either before or after any given prayer. (3) To pay two and a half percent (2. 5%) of ones wealth to charity every year if their savings exceed a certain minimum level which is considered above the poverty level. (This is the basic concept, the actual calculation is a little more complex). (4) To fast the month of Ramadhan (from the Islamic Lunar calendar) every year from sun rise until sunset. This involves not eating, drinking, or having marital relations, from sun rise until sun set. 5) To perform a pilgrimage to Makkah (in the Arabian Peninsula) once in a Muslimââ¬â¢s lifetime if it is financially possible and their health permits. During this period, Muslims come from all over the world to join together for six days in a prescribed set of acts of worship. All Muslim men are mandated to wear the same garment which was designed to be very plain, simple, and cheap to obtain. 2. 5 Concept Of JIHAD In Islam: in the Ar abic language the word ââ¬Å"Jihadâ⬠literally means, ââ¬Å"to strive,â⬠and ââ¬Å"to struggle. â⬠Some Muslim scholars further classify Jihad into following categories: 1. Jihad-an-nafs or Jihad against oneââ¬â¢s self; 2. Jihad ash-shaitaan or Jihad against Satan; 3. Jihad al-kuffar or Jihad against disbeliever; 4. Jihad al-munafiqeen or Jihad against hypocrites; 5. Jihad al-faasiqeen or Jihad against corrupt Muslims. Qurââ¬â¢an-(9:5):à à ââ¬Å"But when the forbidden months are past, then fight and slay the pagans wherever ye find them, And seize them, beleaguer them, and lie in wait for them in every stratagem (of war) ; but if they repent (accept Islam) and establish regular prayers and practices regular charity then open the way for them; for God is oft-forgiving, Most Merciful. Qurââ¬â¢an-(8:65):à ââ¬Å" O Apostle ! Rouse the believers to the fight, if there are twenty amongst you, patient and persevering , they will vanquish two hundred; if a hundred, they will vanquish a thousand of the unbelievers; for these are a people without understanding. â⬠CHAPTER 3 3. 1 Terrorism: Acts of unlawful violence and war. Terrorism is no t a new phenomena, its is as old as creation of man. It came into existence when for the first time in the history of mankind someone intimidated others to gain his purpose. With the passage of time advancement in the methods and techniques made terrorism more complicated and artful. Terrorism is defined as a mean of extending intimidation in a systematic way by governments, groups or individuals to gain various political, religious and ideological objectives. The experts on terrorism agree that terrorism is a structure mode to spread violence and terrify people with purpose of gaining political, ideological and religious aims. 3. 2 Elements Of Terrorism: There are four elements of terrorism: ? Violence, force(83. 5%) ? Political(65%) ? Fear, emphasis on terror(51%) ? Threats(47%) ? Psychological effects and anticipated reaction(41. 5) ? Intentional, planned, systematic, organized action(32%) ? Methods of combat, strategy, tactics(30. 5%) 3. 3 Types Of Terrorism: ? Bio-Terrorism ? Chemical-Terrorism ? Cyber-Terrorism ? Nuclear-Terrorism ? Religious-Terrorism 3. 4 Terrorist? Terrorist are those group of people who commits acts of violence to produce fear, or harass or weaken or embarrass government security forces. Such groups discourage foreign investment, or assistance programs that can affect the target countryââ¬â¢s economy. There are about 30 organization involve in terrorist activities throughout the world. Al-Qaeda is the main network of terrorist according to American think tank. 3. 5 Al-Qaeda After expulsion from Saudi Arabia, Osama bin Laden( leader of Al-Qaeda) established headquarters for al-Qaeda in Khartoum, Sudan. The first actions of al-Qaeda against American interests were attacks on U. S. servicemen in Somalia. Osama Bin Laden is on the American Federal Bureau of Investigationââ¬â¢s list of FBI Ten Most Wanted Fugitives for his possible involvement with the circa 1998 bombings of the United States Embassies in Dar es Salaam, Tanzania, and Nairobi, Kenya. 3. 6 Another Phase Some terrorist groups such as Hamas and Hezbollah have limited their acts to localized regions of the Middle East, while others, notably Al-Qaeda, have an international scope for their terrorist activities. Bombings An increasingly popular tactic used by terrorists is suicide bombing. This tactic is used against civilians, soldiers, and government officials of the regimes the terrorists oppose. The use of suicide bombers is seen by many Muslims as contradictory to Islamââ¬â¢s teachings;[weasel words] however, groups who support its use often refer to such attacks as ââ¬Å"martyrdom perationsâ⬠and the suicide-bombers who commit them as ââ¬Å"martyrsâ⬠(Arabic: shuhada, plural of ââ¬Å"shahidâ⬠). The bombers, and their sympathizers often believe that suicide bombers, as martyrs to the cause of jihad against the enemy, will receive the rewards of paradise for their actions. Suicide attack A suicide attack (also known as suicide bombing) is an attack intended to kil l others and inflict widespread damage, while the attacker intends to die as well in the process. CHAPTER-4 4. 1 Islam And Terrorism . During the last two decades in particular, the concept of ââ¬Å"Islamic terrorâ⬠has been often discussed. In the wake of the September 11 terrorist attacks on targets in New York and Washington which caused the death of thousands of innocent civilians, this concept has once again returned to the top of the international agenda. Even though the hijackers have Muslim identities, the terror they perpetrated cannot be labeled ââ¬Å"Islamic terrorâ⬠, just as it would not be called ââ¬Å"Jewish terrorâ⬠if the perpetrators were Jews or ââ¬Å"Christian terrorâ⬠if they were Christians. In fact, the aggressors can commit such violence only with the intention of attacking religion itself. It may well be that they carried out this violence to present religion as evil in the eyes of people, to divorce people from religion and to generate hatred and reaction against pious people. Consequently, every attack having a ââ¬Å"religiousâ⬠facade on American citizens or other innocent people is actually an attack made against religion. All the three Theistic religions command love, mercy and peace. Terror, on the other hand, is the opposite of religion; it is cruel, merciless and it demands bloodshed and misery. This being the case, while looking for the perpetrators of a terrorist act, its origins should be sought in disbelief rather than in religion. People with a fascist, communist, racist or materialist outlook on life should be suspected as potential perpetrators. The name or the identity of the triggerman is not important. If he can kill innocent people without blinking an eye, whatever his label is, then he is a disbeliever, not a believer. He is a murderer with no fear of God, whose main ambition is to shed blood and to give harm. How we can say that Islam and Muslim are terrorist? In current scenario Muslims are the only victim of terrorism because they face terrorist activities on daily bases and also face world criticism. They are all anti-Muslims and make different prapogenda against muslim because some elements are against and oppose the progress and development of these muslim countries and want to engage them in such activities. Even as they said some muslim liberations parties as terrorist parties as they called hamas in palastine, hizbullah in lebenon, mujahidin moment in Kashmir and true Afghanistan islamist moments and many other moments as terrorist moments if they are terrorist moment then what is Israel done in palistaine, black waters in Pakistan, raw in Kashmir, fbi, and cia in Afghanistan ,Iraq, and Pakistan and also some other muslim countries. On the one side they said that they work for human rights and freedom and on the other hand they called liberation moments as terrorist moment if they claim on islam and muslims then muslimalso claim that the non muslims state are also terrorist! Islam is that religion who forbid people to harm even animal and than how a follower of islam other humans like him? They are many other form of terrorism like cyber terrorism, bio terrorism, reginol terrorism, chemical terrorism and mostly muslim countries are unfamiliar with these terms then why west emphasizes that muslim are terrorist why they cannot blame on other form of terrorism the reason is that they only against islam and muslim? For this reason, ââ¬Å"Islamic terrorâ⬠is quite a erroneous concept which contradicts Islamââ¬â¢s message. That is because, the religion of Islam can by no means concur with terror. On the contrary, Muslims are responsible for preventing terrorist acts and bringing peace and justice to the world. Islam, a religion of mercy, does not permit terrorism. In the Quran, God has said: God does not forbid you from showing kindness and dealing justly with those who have not fought you about religion and have not driven you out of your homes. God loves just dealers. (Quran, 60:8) CHAPTER-5 Main Incidents Of Terrorism Through Out The World: 5. 1 9/11 In response to the September 11, 2001, attacks on the WTC and Pentagon, the U. S. invaded Afghanistan in October 2001 to dismantle al-Qaeda and the Taliban. Al-Qaedaââ¬â¢s infrastructure in the country was destroyed and their military commander, Muhammed Atef, was killed. Abu Zubaydah, another top operative, was captured in Pakistan. Bin Laden and al-Zawahiri, however, escaped and are presumed alive. They release audio and video messages to the Arab media from time to time. In March 2003 the U. S. widened the war on terrorism by invading Iraq and deposing Saddam Hussein and his Baath party (see Iraq profile). The decision to encompass Iraq in ââ¬Å"the war on terrorâ⬠has been highly controversial. Although President Bush asserted that there was a working relationship between Hussein and al-Qaeda, no solid proof of collaboration between them specifically on the Sept. 1, 2001, attacks, or on any other terrorist activities has emerged. 5. 2 The Madrid Bombing On March 11, 2004, Spainââ¬â¢s most horrific terrorist attack occurred: 202 people were killed and 1,400 were injured in bombings at Madridââ¬â¢s railway station. Evidence soon emerged that al-Qaeda was responsible. By April, a dozen suspects, most of them Moroccan, were arrested for th e bombings. On April 4, several suspects blew themselves up during a police raid to avoid capture. Many Spaniards blamed their prime ministerââ¬â¢s staunch support of the U. S. and the war in Iraq for making Spain an al-Qaeda target. 5. 3 The London Bombing On July 7, 2005, London suffered a terrorist bombing, its worst attack since World War II. Four bombs exploded in three subway stations and on one double-decker bus during the morning rush hour, killing at least 52 and wounding more than 700. A group calling itself the Secret Organization of al-Qaeda in Europe claimed responsibility on a Web site, asserting that the attacks were a retaliation for Britainââ¬â¢s involvement in the wars in Afghanistan and Iraq. A year after the bombing, British investigators concluded that the links between the bombers and al-Qaeda were marginal. The four bombers, all born in Britain, had all visited Pakistan, but there was no evidence of any direct support from al-Qaeda. 5. 4 Bombay Attack The 2008 Mumbai attacks were more than ten coordinated shooting and bombing terrorist attacks across Mumbai, Indiaââ¬â¢s largest city, by Islamic terrorists from Pakistan. The attacks, which drew widespread condemnation across the world, began on 26 November 2008 and lasted until 29 November, killing at least 173 people and wounding at least 308. . 5 Iraq bombing Iraq faces bomb blast and sucide bombing on daily bases. And America blame on Iraqi people while they blame America for this. 5. 6 pakistan bombing attacks Pakistan facing also facing bomblast attacks and sucide bombing attacks on daily bases and after 9/11 pakistan face a lot of problem and critical situation of security and still facing terrorist activity. As attack on marriot Islamabad, g. h. q Rawalpindi etcâ⬠¦Ã¢â¬ ¦ CHAPTER-6 6. 1 Conclusion: In my opinion: Islam and terrorism have nothing to do with each other. But at the same time it is Islam that has made it very clear what is terrorism and who are the terrorists. We all know that there is no clear definition of terrorism in politics, but there is very clear definition by Islam. Because Islam has made very clear rules for war, and there are no abiguities whatsoever. We, the Pakistanis, are now actually the ones who are more clear about it than anyone. No doubt there were many confusions before, but after the Lal Masjid operation followed by the worst form of terrorism, Pakistanis have realised what terrorism is and who the terrorists are. Well, I might be exaggerating that all the Pakistanis have realised it, but I am quite confident that the large majority has realised it. The reason behind that is the successful military operation in Swat. As soon as Musharraf left, the things started to unfold and people started realising that they have been betrayed. Even the majority of the supporters of Musharraf now know and admit that he was playing ââ¬Å"the double policy game. â⬠We always knew that the tribal areas were full of merciless criminals who were involved in inhumane criminal activities who would do anything for dollars. The same criminals turned into terrorsists with a fake ideology for power. Who doesnââ¬â¢t like to be in power? So whatever they are doing is for power and nothing to do with Islam. I have friends from those areas who are politically much aware than many of us, and they also confirm that those Muslims are involved in the most unIslamic activities. And then there are other factors of brain-washing, foreign elements, etc. But this proves that Islam has nothing to do with terrorism which Pakistan is facing. And at this moment Pakistan is the hardest-hit terrorism victim. Iraq and Afghanistan are now way behind in this regard. The only focus is now Pakistan. So it should be clear now that Islam and terrorism are not related but only being projected as one, and Pakistan is the best example. REFERENCES: http://www. faithfreedom. org/Articles/SKM/jihad. htm http://www. religioustolerance. org/isl_jihad. htm United State Policy On Terrorism BY Ahmed Ijaz Terrorism Ideology And Revolution By Noel Oââ¬â¢Sullivan The Osama Bin Ladin I Know By Peter L. Bergen How to cite Islam and Terrorism, Papers
Saturday, December 7, 2019
An Overview of the Economy of Brazil
Question: Discuss about the Overview of the Economy of Brazil. Answer: Introduction Brazil, a country that is mostly covered by the amazon, is the fifth largest economy in the world and the largest in the Latin America. It has a population of over 200 million people, who live mostly along the coastline of the Atlantic Ocean. The economy is bigger than that of all the countries in South America because it has established large and well-developed sectors that include agriculture, mining, manufacturing, and service provision sectors. Furthermore, its working middle class is expanding at a fast rate(Ellis, 2012). The presence of Brazil in the international market has been expanding rapidly. Due to the steady improvement in the stability of its economy, Brazil has experienced macroeconomic growth characterised by increase in foreign reserves and reduction in foreign debt by relying more on the domestic borrowing. In fact, in 2008, Brazils debt was awarded the investor grade and Brazil is now considered a net external creditor. Context Between 2003 and 2014, Brazil experienced social and economic growth that resulted in reduction in inequality and more than 29 million people were elevated from poverty(World Bank, 2017). During this period, income for the entire population grew steadily by a rate of 4.4%. In real terms, income attributed to 40% of the poorest people in the economy grew by an average 7.1%. Despite these steps, since 2015, the economy has stagnated in reducing poverty and inequality levels remain high. The nation achieved universal coverage in elementary education but is now facing challenges in improving the quality and productivity of the education system. These challenges mainly affect both the lower and tertiary levels of education. Brazil is undergoing a deep recession now. Its economic growth rate has been reducing consistently since 2010. In 2006, the country had a strong growth of an average annual growth rate of 4.5% up until 2010. However, in 2008, the global financial crisis hit the economy hard. Global demand for Brazilian exports fell and eternal sources of funds dried up. In 2010, Brazil recovered from the crisis and was among the first emerging economies to begin recovery. Investors and consumers revived their confidence leading to the GDP to grow to a rate of 7.5%. This has been the highest rate the country has been able to achieve in the past 25 years. However, this rate fell to 2.1% by 2014. In addition, the GDP has been reducing in the past two years. In 2015, the GDP fell by 3.8% and was followed by another decline of 3.6% in 2016. Several factors have led to this decline. These factors include high inflation rates, low productivity that is characterised by high costs of operation, depending heav ily on raw commodities exports, and high, persistent inflation rates, and low investment levels ("Brazil Economy - overview - Economy", 2017). With its population of over 200 million, the last records of the GDP per Capita in brazil were at $7627.67 in 2015. This GDP per capita equals to 88% of the global average. Brazil achieved an all-time high of $11797.45 in 2013(World Bank, 2017). Unemployment is continually increasing in Brazil. The unemployment rate was at a high of 11.9% in 2016. This translated to an increase of 33.1% from 2015. Unemployment is worst in the capital Rio de Janeiro forcing the public employees to rely on government handouts. Currently, the unemployment rates in Rio are at 11.7%, while that of the entire nation is 11.4%. Most of the sectors that have been largely affected by the unemployment are agribusiness, manufacturing, construction, and professional services including finance and real estate (Rapoza, 2017). In 2015, the government implemented tight monetary policies and elevated the interest rates in a bid to ease inflation. It realigned prices and passed through the depreciation of the exchange rate causing the inflation rate to peak at 10.7% in December. This was way above the upper limit of the governments target of 4.5 2%. Presently, the inflation rates have decelerated. The rates fell to a low of less than 6% in 3 years. This made the bets on the market stronger hence a high reduction of interest rates by 75 basis points by the central bank. It is expected that by June 2017, the inflation rates should have gone to the governments target of 4.5%. This will enable policy makers to reduce the target for the first time in more than 10 years ("Brazil Economy - GDP, Inflation, CPI and Interest Rate", 2017). Monetary policy is the main tool used to ease inflation in the goods and service provision sector. After President Dilma Rouseff was impeached in August 2016, the vice president Michel Termer took office and directed the policy makers to look for monetary and fiscal adjustments that would restore investor confidence and ensure that the environment was conducive for investment. This move has however faced challenges and opposition. The difficult political environment and a rigid budget has undermined the modifications on the fiscal policy. There is no way to reduce public expenditure because of the rigidity of the bind by the constitution and other legislation. This imposes a burden of payment on the subnational government exposing them to a risk of insolvency. International trade is of great significance to the economy of Brazil although trade and investment face challenges in bureaucracy and regulation. The sum total of the value of imports and exports accounts for 27% of the GDP. The government applies an average tariff of 7.8%. The government plays an important role in the diverse and competitive financial sector and 50% of funds in the private sector are financed by public banks ("Brazil Economy - GDP, Inflation, CPI and Interest Rate", 2017). The economic crisis that Brazil is facing has led to major changes in the BOP current account. In response to the reduction of the GDP in 2016, the current account deficit fell to 1.6% of the GDP. This was a significant fall when compared to the 4.3% deficit that was recorded in 2014. By the end of 2015, 135% of the current account deficit was funded by direct foreign investments thus accounting for 4.2% of the GDP. Brazils Economy Outlook Putting in place growth enhancing changes the success of the adjustments that have been put in place will determine the outlook of the medium to long-term economic advancements. The drivers of growth have been stunted in the past. These drivers such as expansion of labour and commodity boom, and consumption that is fuelled by credit availability are important for the advancement of the economy. It is important that the government increase investment and gains from productivity in the effort to raise competitiveness and achieve growth in future. The government is seeking to reinforce the economy and the workforce in particular in the long run. To do this, it has imposed local content and made it necessary for foreign businesses to transfer technology. In addition to this, further research is being done in energy, healthcare and technology, with further investment in education through programs such as Bolsa Familia and the Brazil Science Mobility Program(World Bank, 2017). Conclusion Brazil has undergone a turbulent economic time in the past. The global financial crisis, economic recession, the political crisis in the country, and a fall in the prices of commodities has made the economy to contract sharply. These events reduces the confidence of the investors and consumers in the economy. High inflation rates, a wide deficit in the budget and balance of payments accounts, and political paralysis have compromised the fiscal and monetary policies in the country leading to a heavy burden of public debt. There is an excessive interference by the state on the economy coupled with poor and inefficient service from the government. Despite these challenges on the economy, the future looks bright if the reforms are successful. References Brazil Economy - GDP, Inflation, CPI and Interest Rate. (2017). FocusEconomics | Economic Forecasts from the World's Leading Economists. Retrieved 9 April 2017, from https://www.focus-economics.com/countries/brazil Brazil Economy - overview - Economy. (2017). Indexmundi.com. Retrieved 9 April 2017, from https://www.indexmundi.com/brazil/economy_overview.html Brazil GDP per capita | 1960-2017 | Data | Chart | Calendar | Forecast. (2017). Tradingeconomics.com. Retrieved 9 April 2017, from https://www.tradingeconomics.com/brazil/gdp-per-capita Brazil Overview. (2017). Worldbank.org. Retrieved 9 April 2017, from https://www.worldbank.org/en/country/brazil/overview Ellis, H. S. (2012).The economy of Brazil. Berkeley, Calif: University of California. Rapoza, K. (2017). Forbes Welcome. Forbes.com. Retrieved 9 April 2017, from https://www.forbes.com/sites/kenrapoza/2016/12/29/brazil-record-unemployment-rate-rises-by-33-rio-de-janeiro-hangs-like-a-loose-tooth/
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