Essay writing grade 4

Wednesday, August 26, 2020

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Tuesday, June 2, 2020

Study On Corporate Governance In The Middle East Finance Essay - Free Essay Example

Middle East and North Africa (MENA), Region, state-owned enterprises (SOE), Gulf Cooperation Council (GCC) ,International Federation of National Associations for Accountants and lawyers(INSOL Introduction: Good corporate governance is essential for modern, well-managed corporations. Many Middle Eastern enterprises have reached a stage in their corporate life where improving transparency, professionalizing board practices, and reinforcing shareholder rights have become crucial to their future growth and competitiveness. Recent interactions in the Middle East clearly revealed the importance of governance, with people recognizing both international governance principles and how such principles fit within their individual cultures. Board functions, board and management relations, and directors responsibility to act in the best interests of the company they serve (rather than of those who elected them) were all apparent principles. Fundamental to democracy is citizen participation, the freedom to assemble and the freedom to petition the government. A high level of interaction and dialogue between the state and the private sector on issues of concern increases effectiveness. Business organizations and business leaders must be able to share their positions with the government officials who respect their views. When the private sector advocates for legislative reform to improve the business environment and the countrys economy, and the government responds positively, governments in the Middle East and elsewhere are recognizing the positive benefit to society as a whole. Governance is a journey, not a destination. With the participation and voices of the public and private sectors of all countries, in the Middle East and around the world, we all continue to grow together, positively affecting our companies and our countries. Corporate Governance has been practiced for as long as there have been corporate entities. Yet the study of the important crucial subject is less than half a century old. Indeed, the phrase corporate governance was randomly used until the 1980s.The 19th century saw the foundation laid for modern corporation: this was the century of the e ntrepreneur. The 20th century was the century of management: the phenomenal growth of management theories, management practices, management consultants, management institutions, management teaching, and management gurus, which all simultaneously reflected a pre-occupation with different styles of management. Now the 21st century promises to be the century of thinking on the subject of governance: As the focus swings to the legitimacy and the effectiveness of the wielding of power over corporate entities worldwide. Governance issues arise whenever a corporate entity acquires a life of its own, and the basis of ownership of an enterprise is separated from its management. A much quoted comment by Adam Smith shows that he understood the issue of corporate governance, The directors of companies, being managers of the peoples money than their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which the partners in a private copartners frequently watch over their own (smith 1776). New concepts of corporate governances: Overall, corporate governance continues to evolve. The metamorphosis that will determine the bounds and the structure of the subject has yet to occur. Present practice is still rooted in a 19th century legal concept of the corporation that is totally inadequate in the emerging global business environment. Present theory is even less capable of explaining coherently the way that modern corporate organizations are governed and worked. The recent financial crisis prompted by the securitization of sub-prime mortgage loans in the United State, which led to the collapse, takeover and, in some cases, nationalization of banks and other financial institutions around the world raised some fundamental corporate governance issues. There are few questions rise up in my mind: Where were the directors of these failed institutions, particularly the independent directors who were supposed to provide checks on overenthusiastic executives? Did the boards understand their firms exposure to strategic risk? Will those who designed and encouraged the derivative products and securitization systems be held to account? Did the auditors ensure that their clients exposure to risk was reported? Were any of the companies, financial institutions or financial intermediately activities illegal? The global economic and financial crisis is also affecting the MENA region, and threatening its capacity to attain the necessary level of economic growth in order to meet the demands of citizens in search of improved welfare, without destroying natural resources. One of the fundamental lessons to be learned from the global financial crisis is that future strategies cannot be adopted without coordinating public policies at all levels of governance, and without the participation of government, local authorities, legal advisor, civil society and the media at different levels. Around the world, in large and small corporate, in the public and the private sectors, governance has become the focus of attention. The exercise of power over corporate entities, the legitimacy of companies and their directors, the effectiveness of governing bodies, and their accountability in society have become crucial topics. The innovative field of corporate governance is expanding and changing dramatically at very fast pace. Twenty-five years ago the phrase corporate governance was not used in corporate sector but now, it is frequently and prominently being used in corporate world. Corporate Governance in Middle East region: For the past few years a corporate governance movement has been sweeping through the Middle East and North Africa (MENA). Practitioners from capital markets, banks, the public and private sectors, and other civil society groups have accepted the need to address corporate governance reform as one of the crucial aspect affecting the international competitiveness, the investment climate and the development of the capital markets of the MENA region. This collaboration is crucial because corporate governance ultimately depends on public-private sector cooperation to achieve the goals of creating a competitive market system and the development of a law justice based society. Recent research and experience show that certain key corporate governance arrangements are critical to private-sector which has led economic growth, enhanced welfare activities, increased flow of investment, development of capital market, financial market efficiency and corporate sector performance. MENA countrie s, in their efforts to stimulate growth, employment and investment, increasing acknowledge the talent and has improved corporate governance for the success of the economic reforms. MENA countries in co-operation with the OECD working group and other multilateral or bilateral association is also working on governance in order to highlight priorities and possible suggestions and recommendations for reform to improve corporate governance frameworks, promote legal changes and progress with reforms of the corporate governance of state-owned enterprises (SOE). In Middle East region, businesses are classified as having: Concentrated ownership, with strong family ownership of both private and listed, companies with state ownership. Dominant family oversight and control, with leadership from the head of the family, entrepreneurial decision making, opaque communications, and relationship base trading. Debt financing in which bank financing is often more than shareholders equ ity. Banking sector equity investment, with banks holding significant shares in companies. The states are typically grouped together as the Middle East and North Africa (MENA). The MENA region includes: Table: A The MENA states ________________________________________________________________________ Algeria Jordan Iraq Morocco Syria Bahrain Kuwait Iran Sultanate of Oman U.A.E. Egypt Lebanon Israel Qatar Tunisia Djibouti Libya Malta Saudi Arabia West Bank and Gaza ________________________________________________________________________ Sources: https://go.worldbank.org/ Broadly, some of these countries have relatively low GDPs and slow industrial growth. In recent years the oil producing countries, benefiting from rising oil prices, have generated large surpluses, which have been invested abroad. Banking reforms have attempted to channel some of these saving into local growth, but domestic financial markets were not so emergent. States also appreciate the need to attract foreign direct investment (FDI) and, therefore, recognize the importance of sound corporate governance. Since the capital markets are not so emergent characterized as small size therefore facing liquidity. Consequently the market does not offer opportunities to investors. Of course there are exceptions to such aforesaid general observations, like Dubai Abu Dhabi (UAE) are making massive investment in tourism and property, whilst attempting to become an international financial centre. Recent evidence shows in UAE, Burj Khalifa is not a just a building, it is a global icon. As the tallest free-standing man-made structure in the world, the gleaming tower reaching to 828 meters in the sky is an example of courage and mans ability to realize the dreams. The MENA region is an economically diverse region that includes countries with a common heritage and significant distinctions in levels of per capita income. Mostly is single-commodity (oil) economy dependent, despite the continuous and tremendous efforts done to diverse the economies. The countries region can be categorized in three distinct economic statutes. The first are the early reformers such as Egypt, Jordan, Morocco and Tunisia which embarked on economic reform programs since mid-1980s opening up their economies to foreign investments, privatizing state-owned enterprises, reducing budget deficit and inflation and liberalized their trade. Securities markets in these countries were established and revitalized5 to be the main vehicle for implementing the privatizati on program. The second are the oil exporting states mainly the Gulf Cooperation Council (GCC) in which their economies heavily dependent on producing and exporting oil. They achieved relatively macroeconomic stability mainly for the continuous increase in oil prices and despite of the recent Iraqi war. Despite the strong fundamentals of these economies, securities markets role, in most of GCC countries, yet minimal in growth. The third category are countries still hasnt achieved economic stability yet either due to political instability such as in West Bank Gaza and in Iraq, or they are in their early stages of reforms such as Lebanon, Syria, Algeria, Sudan, Libya and Yemen. Securities markets in these countries are either relatively small or doesnt exist. The MENA region GDP, in terms of current U.S. dollars, is near US$ 600 billion, about 2% on average of the Worlds GDP in 2001 and 20027. Due to the substantial increase in oil prices, national savings -especially in the oil producing countries- exceeded investments resulting in substantial accumulation of financial assets abroad. Saudi Arabia and Kuwait constituted 3.3% and 2.4% respectively of total global export of capital flows in year 2001, while in 2002, Saudi Arabia share declined to 2.2% and for Kuwait was below 1%9, which might explains the outstanding performance of both markets recently. Market capitalization of MENA region markets amounts for US$ 209 billion in 2002, about 1% of world market capitalization10 and about 35% of MENAs GDP. Saudi Arabia is the largest in terms of capitalization with 36% of total market capitalization of MENA markets in 2002, followed by Kuwait and Egypt with share 17% and 12% respectively. The most active during year 2002 was Kuwait Securities Market with 61% turnover ratio11 followed by Saudi Arabia and Egypt with 41% and 24%, respectively. Six of the eighteen MENA countries (Algeria, Egypt, Jordan, Morocco, Tunisia and the United Arab of Emirates) und ergone the exercise of Report on the Observance of Standards and Codes (ROSC) of the World Bank and International Monetary Fund (IMF). The exercises covered four main areas out of ten. Egypt, Jordan and Morocco are represented in the SP/IFC indices and in the MSCI EMF indices. Saudi Arabia and Bahrain are represented only in the SP/IFC indices. With exception of Egypt, Jordan and Morocco which opened their markets to foreign participation since they embarked on economic reform programs, still some shared a main characteristic of restricting foreign participation and ownership, mostly in GCC countries. In GCC countries, access to their capital markets was restricted to GCC nationals and residents only. However under the pressure to diversify their economies and the attempt to be immune from volatile oil prices, regional markets commenced on allowing gradually foreign investment in their market. Bahrain was one of the earliest GCC countries that opened up its market to foreig ners. According to an Amiri decree, non-GCC residences have been allowed to own up to 49% of capital. Also, Bahrain Stock Exchange was the first to list non-GCC Company. Oman opened its market to foreigners since 1998 with the issuance of Royal decree number 80. As for the Kuwaiti market, currently foreigners are allowed to participate in the securities markets. Under the new Foreign Direct Investment Law issued in April 2001 foreigners are allowed to own up to 100% of Kuwaiti companies subject to some conditions. As for portfolio investments, Portfolio Foreign Investment Law issued in September 2000 allowing foreigners to own and trade shares of joint-stock companies listed on the Kuwaiti Stock Exchange condition on neither an individual nor group of foreigners may own more than 5% of capital of a Kuwaiti bank unless approved by Central Bank of Kuwait. Saudi Arabia allows foreign investors to participate in the securities market through investing in open-end mutual funds. In 199 7, the first special purpose vehicle (SPV) was established to facilitate foreign portfolio investment in equities. Qatar, recently, allowed GCC citizens and expatriates to invest in the Doha Securities Market as an initial phase to introduce new law that will allow foreign investments. Dubai Declaration on Corporate Governance: The Dubai Declaration by Hawkamahs first MENA conference in Dubai formulates a road map and key corporate governance initiatives for the region, writes Bhaskar Raj Good corporate governance is a vital key factor in sustaining economic growth and development in the Gulf region. Policy makers are taking the lead and committing to secure significantly higher standards of corporate governance in the member countries of the GCC. Policy makers, regulators, representatives from regional and international organisations, and business leaders from across the Middle East and North Africa, representing countries of Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia and the UAE, gathered in Dubai to jointly issue the Dubai Declaration on Corporate Governance. This was a landmark event for the region, and they agreed upon following initiatives for reforms in governance: The criteria of two taskforces: one focusing on the corporate governance of banks; and a s econd focusing on the corporate governance of State-Owned Enterprises. The issuance of two policy briefs: one for banks; and a second for SOEs; both to be approved by the relevant taskforces. The consideration of issues relating to the corporate governance of Shariah compliant banks and financial institutions and the importance of ensuring that regional corporate governance frameworks and standards are in line with international codes and the key standards, whilst at the same time remaining consistent with Shariah rules. The preparation of a corporate governance survey of SOEs, to be developed on a consultative basis with the cooperation of key organizations and governments. The recognition of a need to tackle issues surrounding insolvency and corporate restructuring. The Hawkamah Hawkamah, the Institute for Corporate Governance, is a regional entity whose mission is to assist countries and companies of the wider MENA region in developing sound and globally well-integrated corporate governance frameworks, policy and practices. It supports regional and international initiatives to develop open and transparent markets and sound corporate governance regimes. The OECD and Hawkamah works with INSOL and the World Bank and invite ministries, financial institutions, the judiciary, representatives of OECD countries and other regional and international bodies, to meet and to discuss these issues during the first half of 2007. Executive Director of Hawkamah Nasser Saidi outlined Whilst there is still a need for raising awareness and capacity building in this field, we have made significant headway in terms of taskforces, policy briefs, addressing corporate governance in Islamic banking and finance, corporate restructuring and insolvency, family-owned enterprises and small medium enterprises. We now move towards concrete actions and direction resulting from these principles, facilitating the design of a comprehensive roadmap for corporate governance in our region. This will enable us to achieve our ultimate goals of encouraging investment, project finance, job creation and the development of sound financial markets. Need for successful corporate governance: The values of corporate governance: transparency, accountability, and responsibility offer the key for the modernization of the countries of the Middle East and North Africa. The private sector business community can play a leading role in economic, political, and social reforms in the region. In fact, reforms led by the private sector provide the greatest promise for meeting the challenges caused by the regions tepid economic growth and surging youth demographic. Sound corporate governance practices will attract new, much needed investment to the Middle East and North Africa because they improve their management of firms and reduce risk. National institutions, laws, regulations, and practices based on international norms and standards would enable the countries of the region to modernize their corporate sectors, enabling them to attract technology and foreign investment and become internationally competitive. Furthermore, political and sovereign risk would be reduced and econom ic performance and outcomes would be de-linked from ruling political regimes and a dependence on oil and gas resources. Perhaps more importantly, the process of designing and implementing the basics of corporate governance-transparency and regular reporting, independent auditing, removal of conflicts of interest, ethics, protection of minority shareholders rights-provides a foundation for meaningful reform in the economic sector and elsewhere in society. It is clear that there is no one ideal structure for corporate governance. Many alternative structures can work well in the appropriate context. In fact, despite all the commentary on governance structure-unitary and two-tier board, the proportion of INEDs, the separation of chairman and CEO, board committees and the rest, the issue of effective governance is not really about structure but about process. As we have seen some of the different ways countries and cultures apply in the corporate governance, we can now identify the fe w thrust areas that are needed to support successful governance. These include: Accounting and legal professions that are internationally respected, able to discipline their members, and ensure compliance with accounting standards, and legal requirement. A companys registry that facilities comprehensive disclosure, with high levels of transparency. Always vigilance regulatory authorities including securities and future market regulators. A stock market with sufficient degree of liquidity, standing on international norms and foreign and institutional investors. Auditing firms that are professionally managed, reliable, and independent of their clients. A reliable legal system including an independent judiciary, courts that are bias and corruption free, and judgments those are enforceable, free of state or other political pressures. Accountability fix for financial institutions, including brokers, sponsor for new issues, and financial advisors. Professional orga nizations such as director and company secretary qualifying and disciplining bodies. Accountability also given to educational institutions to develop education standard and train for relevant qualifications require for corporate governance. Consulting agencies able to advice companies and its directors. With the support of private and public organization, seminars, workshop to be conducted or organized on different platforms, and conclusion report to be sent to competent authority for taking decisions. Research institution making research on different aspects of corporate governance according to the need of region. Research publications, international conferences and professional journals play a significant contribution to the convergence of corporate governance thinking and practice. Formulate corporate governance codes of good practices. Just implementing Western rules and standards will not improve corporate governance and accounting quality in MENA region. Stan dards alone do not help. There need to be more disclosure on key government variables and related party transactions. They are more important than accounting. Other important changes include building the right market infrastructures and systems for companies to operate, as well as leveling the playing filed between government-owned and privately-owned firms. Conclusion: The paper attempted to provide an overview on corporate governance in the MENA regions markets.. It is evident that MENA markets in the recent decade undergone number of reforms and restructuring on legislative and infrastructure fronts. However, cautious should be taken while adopting and implementing measures of reform. Moving towards a self-regulatory organization (SRO) model without matured institutions is dangerous. Limited institutional capacity, overlapping regulatory functions among authorities and lack of fast track dispute settlement are impediments for SROs. Maturity is not only in terms of laws and regulations but also in terms of practice and enforcement. Thus, adopting self-regulatory organizations (SRO) model remains a future challenge to regional markets. Market discipline, with its various tools, still not yet developed to an extent that improves corporate governance practices; markets are either inefficient or utmost weakly efficient. Thus proper valuation and realized premiums are not really reflective to the soundness corporate governance practice. Thus, market discipline is an element that will not be observed until markets efficiency improves and investors culture develops. Market discipline is both a result and supplementary of massive reforms towards better governance which is only observed in matured efficient markets. Thus, reformers should work on allowing appropriate and even environment for both systems. Which of either system are best for regional markets? Is a question imposes itself. Fundamentally, traditions and cultures should be allowed implicitly to choose their acquaintance with one of the two systems and not vice versa. Using the opposite direction might result in institutional failure, market crises and the collapse of the investors wealth. Previous emerging market crises were good evidence. The key issue is that sound corporate governance practices are reached when trust and confidence is observed. Policy maker s and reformers should realize that better corporate governance practices is function of the soundness of the total system and that this parameter is significant and influential given the characteristics of the regional markets.

Wednesday, May 6, 2020

Essay on Accepting the Extraordinary in Mary ShelleyÃ¢â‚¬â„¢s...

My life, although not without surprises and unusual events, is dictated by predictable and ordinary elements. However, through fiction I am transported into a world of boundless imagination and extraordinary themes. One such example is evident in my response to Mary ShelleyÃ¢â‚¬â„¢s gothic novel Frankenstein. Through fiction, Shelley invites the reader to accept the extraordinary. Firstly, we are led to believe that Victor Frankenstein is able to create life by shocking it with electricity, and to this I responded with an imaginative curiosity. But it was the consequences of the creation provoked a stronger response from me. The element of horror Victor experiences and his reaction to the Ã¢â‚¬Ëœgod likeÃ¢â‚¬â„¢ qualities bestowed upon him as creator is trulyÃ¢â‚¬ ¦show more contentÃ¢â‚¬ ¦Additionally, I was drawn in by the powerful language of Victor, who emphasises is prowess in the field of philosophy and the grandeur of his discovery. Until from the midst of this darkness a sudden light broke upon me Ã¢â‚¬â€œ a light so brilliant and wondrousÃ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦I was surprised that I alone should be reserved to discover this secret. Furthermore I was gripped to the extraordinary by the following prose. I see by your eagerness and the wonder your eyes express, my friend, that you expect to be informed of the secret with which I am acquainted: that cannot be, listen patiently and you will perceive why I am reserved in this subject. This statement concreted in my imagination to the validity of VictorÃ¢â‚¬â„¢s creating ability, hence I responded to ShellyÃ¢â‚¬â„¢s invitation in a positive way, despite my knowledge of modern science. However, my response was far stronger to the extraordinary events that follow the creation of the monster. Victor, who is initially jubilant at the fulfilment of his toils, is suddenly overwhelmed by the enormity of his creation. He is thrusted into a situation that is out of the ordinary, as he is the only mortal to create life. Despite the potential and muscular brilliance of the monster, Victor is disgusted by its physical deformities. As a result he rejects the monster, and is subjected to emotional turmoil. ButShow MoreRelatedFrankenstein And NatureÃ¢â‚¬â„¢S Love. From Stupendous Glaciers1053 Words Ã‚ |Ã‚ 5 PagesFrankenstein and NatureÃ¢â‚¬â„¢s Love From stupendous glaciers to rolling green hills, there is no denying that Mary ShelleyÃ¢â‚¬â„¢s Frankenstein captures natureÃ¢â‚¬â„¢s most majestic and extraordinary sights. There is also no denying that natureÃ¢â‚¬â„¢s enchantment and beauty surrounds FrankensteinÃ¢â‚¬â„¢s intense plot. Hence, the sublime alpine ecosystem where Frankenstein takes place has a great impact on the characters of the novel. As she wrote Frankenstein, Mary Shelley also experienced a magnificent and grand environmentRead MoreIs Humanity Really Frankenstein s Monster?1619 Words Ã‚ |Ã‚ 7 Pages Ã¢â‚¬Å"ferociousÃ¢â‚¬ , Ã¢â‚¬Å"uglyÃ¢â‚¬ , and Ã¢â‚¬Å"frighteningÃ¢â‚¬ . Yet at the same time, a monster can be Ã¢â‚¬Å"amazingÃ¢â‚¬ and Ã¢â‚¬Å"extraordinaryÃ¢â‚¬ . From these characteristics alone, a monster can essentially be anything. In the literal sense, a monster is perceived to be large and physically grotesque, however inner qualities of monstrosity can be easily masked, and are therefore often overloo ked. Three 19th century novels, Frankenstein, Sherlock Holmes: The Sign of Four, and The Strange Case of Dr. Jekyll and Mr. Hyde reveal both

Tuesday, May 5, 2020

Fashion in the 1920s Essay Example For Students

Fashion in the 1920s Essay Fashion is one of the greatest forces in present-day life. It pervades every field and reaches every class. It has always been a factor in human life but never more forceful, never more influential and never wider in scope than in the last decade, and it gives every indication of growing still more important. So with everything in mind, we can really agree with him when he said that it was more than an expression of individual taste; it was instead a statement of group membership, of involvement in the currents of ones time. To be out of fashion, he wrote, is, indeed, to be out of the world. During the decade technology vastly improved which helped spread the word about what people were wearing and driving and how they were decorating their homes or designing their public buildings. Improved communication meant that a large proportion of the general population was exposed to the latest fashion trends and responded, positively or negatively, to them. During the sass the most distinctive clothing styles originated in Europe: in France for womens attire and in England for mens. Coco Channel was one of the first women designers to adopt the new era of clothing, which meant that she adopted a more boyish look. She replaced the corset with lighter clothing that wasnt so restrictive. Throughout the years dresses kept getting shorter and the backs lower. By 1925 dresses were the shortest in history an act of the devil, some thought. Many people were so outraged that they passed laws in the states of Ohio and Utah that the hem length of ladies gowns had to be seven inches from the floor but these responses from mature adults simply increased young womens fondness for their short skirts and cosmetics. After all, what fun is it to rebel if nobody notices or cares? But what are some major reasons for this changes in women fashion? The first one is that after the war women continued to work outside their home, so the clothes had to be altered to allow for an ease of movement. Also with the lack of men due to the war, women began wearing more alluring clothing to attract a husband. The ratification of the 19th Amendment also played a major role as women soon began wearing loose pantsuits called pajama suits, a direct result of the newly gained right to vote and the strong cries for further female empowerment. Probably, one of the first images that pops into your head when you hear the word sass fashion is the Flapper which is the symbol of the oaring twenties. It embodied the decades modern fashion elements such as short sleek hair, a short shapeless dress, a flat chest, and exposed limbs. Flappers also had a reputation that added to their style as well; they smoked from long cigarette holders, applied makeup in public and danced to Jazz with reckless abandonment of propriety. Men of this time wore suits, day suits, formal suits, all different kinds of suits. Along with their suits, they wore a hat according to their class in society: the upper class wore top hats, middle class wore a fedora, and the working class wore a flat cap or no cap at all. To complete their ensemble they wore black patent leather shoes or saddle shoes. As well as the classic suit, flannel, twill, knickerbockers, and sweaters were a more commonly seen casual wear among men of all ages, Then around 1925 Oxford bags were introduced to the public, after being worn as a kind of uniform for Oxford University students. This style grew and grew and before you knew all the young men were wearing them. As the decade progressed, the automobile increasingly became another definer of status and social class in America, both for young people and their parents. Henry Fords Model T, which dominated the U. S. Rake until it went out of production in 1927, gave middle-class and even lower-middle-class citizens affordable, reliable transportation. The quintessential expression of American energy and optimism in the sass was the skyscraper, the great tower that aspired toward heaven and dominated the earth (rather, the urban streets) below. Throughout the sass, then, a con cern for fashion, for style as a social and cultural delineated, flourished. Fashion developments in attire, in architecture, and in automobiles helped to define the decade and these developments proved more pervasive and more influential than they had ever been in the past.

Saturday, April 18, 2020

Y2k (3187 words) Essay Example For Students

Y2k (3187 words) Essay Y2kThis year, most of the world is preparing to celebrate the year 2000 and the coming of anew millennium. However, many businesses, manufacturers, banks and hospitals arequietly hoping for an uneventful new years transition. At midnight on December 31,many businesses will be anticipating what effects the millennium rollover will have oncomputer software and other equipment that contain a time sensitive chip called anembedded chip. Early computer programmers, in an effort to conserve limited memoryspace, programmed computers to read the year in only two digits. So computers read 15as 1915, and 02 as 1902, and so on. Thus, when the year 2000 arrives, many computerprograms might go from December 31, 1999 to January 1, 1900. Some computers willcease to function, or ?crash?. Needless to say, if these programs control functions such aselectricity, airline travel, or communications, the results could be disastrous. Manycompanies and governments have spent countless hours and untold dollars makingsoftware Y2K (year 2 thousand) compatible. We will write a custom essay on Y2k (3187 words) specifically for you for only $16.38 $13.9/page Order now The consequences of not preparing for the Y2K problem could spell disaster forthe company involved. For example, a small Midwestern manufacturer encountered asimilar date-related problem in 1996 (a leap year) when the company did not realize thattheir entire computer network would be affected by the extra day in the year. When theyear 1997 turned over, all systems shut down. This malfunction caused the liquidsolutions being produced to freeze, causing them to destroy the pipelines they ran through. This disaster cost the company over $1 million in new equipment. The catastrophe causedmassive delivery delays to their customers, and the company believes numerous customeraccounts were lost as a result. This is just a small example of what could happen whencomputer software and related equipment is not tested for Y2K compatibility. Now,imagine the confusion and disaster that could result from a similar incident occurring in ahospitalwhere lives, not inventory, are at stake. ?Code Blue 2000? is the term used to describe the possible breakdown of theworlds hospital software and related medical devices. Most hospital organizations haveprepared themselves for any problems that might occur with their software and medicalequipment. It is the organizations that ignore the potential problem that will most likelyloose valuable patient information, and in extreme cases, have their ability to furnishadequate health care reduced. Major Hospital in Shelbyville, Indiana, has a team of computer scientists currentlytesting the hospitals computer systems software for Y2K compatibility. First, mocksystems are tested to determine what will actually happen when the year changes. Then,obsolete software and equipment is replaced with Y2K compliant equipment. MajorHospital has spent over a half-million dollars on research of the Y2K problem. Thisresearch is extremely costly to an organization, but the alternativeignoring theproblemcould be catastrophic. This report will cover the numerous ways the Y2K problem could affect hospitals. The first and most important area that will be reviewed is the manner in which the Y2Kproblem could affect patients. The Y2K problem could adversely affect the biomedicaldevices some patients rely on for life-sustaining purposes. Then, the potential problemson the clerical side of hospital administration will be explored; focusing on patientsmedical records and accounts. Finally, the possible adverse effects on utilities such aselectricity, gas, and water will be discussed. A hospital is a place that a person should feelsafe and secure. This report will describe the steps being taken by hospitals to ensure thattheir patients peace of mind and sense of security is unaltered. The Y2K problem is a concern for hospitals worldwide for a variety of reasons. Perhaps the most pressing concern are the biomedical devices, which contain computersoftware, that many patients rely on. Some critical biomedical devices are pacemakers,fetal monitors, Magnetic Resonance Imaging machines (MRIs), and heart defibrillators. One of the most important biomedical devices that could be affected by the Y2K problem is the pacemaker. A pacemaker is a biomedical, electronic device implanted inthe wall of the heart designed to detect irregular heartbeats and provide regular, mild,electric shocks that restore normalcy to the heartbeat. The pacemaker then records thetime an electric shock was administered; this information can then be downloaded to acomputer system and analyzed by medical personnel. Cardiologists use this information todetect patterns and irregularities in the patients heart rhythms. If the software were torecord faulty times for the shock deliveries, the cardiologist could misinterpret the resultsand administer improper medical care. The results could be deadly for some patients. The Veterans Administration interviewed the top five pacemaker manufacturers togauge their awareness of the potentially hazardous Y2K problem. One company said theproblem would be corrected by mid-year; two companies stated the problem was alreadyunder control; and the final two companies were behind schedule in eradicate the problem. In addition to the pacemaker, there are several other biomedical devices that maycontain faulty software. One such type of device is an anesthesia monitor. An anesthesiamonitor regulates the anesthesias effect on the patient during surgery. Another criticalbiomedical device is a fetal monitor. A fetal monitor helps examine the condition of thebaby while it is still being carried by the mother. Incubators, critical to a newborn babyssurvival, could also be adversely affected by the Y2K problem. Other biomedical devices(and their functions) include MRIs (produce computer-generated views of arteries,nerves, tendons, and tumors), infusion pumps (used in intravenous drips), and heartdefibrillators (emergency method of establishing a heartbeat). All of the aforementioneddevices contain embedded microchips critical to their functions. There are also intensivecare monitors that may not be Y2K compliant; these include heart monitors, bloodpressure monitors, and machines that provide additiona l oxygen and physical support. Finally, dialysis machines (help remove waste from a patients blood) and radiationequipment (x-rays, chemotherapy, etc..) are other critical pieces of medical equipment thatcould fail if the software controlling their functions is not Y2K compliant. Major Hospital is currently working with all of their medical equipment vendors toensure that all biomedical devices are Y2K compliant. ?We are confident that outstandingpatient care will not be interrupted,? says Carol Hussman, information systems manager atMajor Hospital, ?and we are about 95 percent finished with all testing.?One may think that in this day and age, with all of our technological advancements,that the Y2K problem would not be of concern to even the average computer user with afairly new system; much less a vital institution such as a hospital where thousands of ourloved ones lives hang in the balance. However, this is not the case. There are stillhospitals in the United States that are not equipped to deal with the Y2K problem. Moreover, the U.S. is not the only place where the Y2K problem is causing difficulties. Infact, almost a third of computer-related equipment in Australian hospitals, includingcardiac monitors and drug distribution systems, have failed the mil lennium test. .u363113e89176df7f0ca21b140825223c , .u363113e89176df7f0ca21b140825223c .postImageUrl , .u363113e89176df7f0ca21b140825223c .centered-text-area { min-height: 80px; position: relative; } .u363113e89176df7f0ca21b140825223c , .u363113e89176df7f0ca21b140825223c:hover , .u363113e89176df7f0ca21b140825223c:visited , .u363113e89176df7f0ca21b140825223c:active { border:0!important; } .u363113e89176df7f0ca21b140825223c .clearfix:after { content: ""; display: table; clear: both; } .u363113e89176df7f0ca21b140825223c { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u363113e89176df7f0ca21b140825223c:active , .u363113e89176df7f0ca21b140825223c:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u363113e89176df7f0ca21b140825223c .centered-text-area { width: 100%; position: relative ; } .u363113e89176df7f0ca21b140825223c .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u363113e89176df7f0ca21b140825223c .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u363113e89176df7f0ca21b140825223c .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u363113e89176df7f0ca21b140825223c:hover .ctaButton { background-color: #34495E!important; } .u363113e89176df7f0ca21b140825223c .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u363113e89176df7f0ca21b140825223c .u363113e89176df7f0ca21b140825223c-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u363113e89176df7f0ca21b140825223c:after { content: ""; display: block; clear: both; } READ: Reconstruction of the South EssayThe final aspect of patient care that may be affected is the mental health of thepatients. In a crisis situation, patients might panic; hospital staffs will have to be aware ofthis potential crisis. Major Hospital personnel are aware of this aspect of the Y2Kproblem and are focused on preventing any software problems that may lead to patientconfusion or panic. However, there are no specific strategies in place to handle possiblepatient disorder, other than by answering patient questions on an individual basis. The Y2K problem is not limited to biomedical devices, however. This dilemmaeffects non-medical devices such as the personal computers used in record-keeping andaccounting. If the programs that are used are not corrected, many problems could arise. Even though some patient records are kept in paper form as a backup, most patientinformation, such as test results, medical histories, registration, and insurance informationare kept in computer databases. These databases, if left unchecked for the Y2K problem,could malfunction. Patient information is important to physicians and other hospitalpersonnel using the databases. It is readily available to them at the touch of a keypad. Ifpatient information is inaccurate, it could result in detrimental care or incorrect medicationbeing administered to patients. This dilemma could be solved in one of two ways. One option hospitals have is toput all information on paper, which would be very time consuming and prone to causeerrors, or the database systems can be programmed to be Y2K compatible. In order toaddress the Y2K problem, President Bill Clinton signed into law the ?Year 2000Information and Readiness Disclosure Act.? In a statement by the president released bythe Office of the Press Secretary of the White House, this law requires the shared?necessary information tools needed to overcome the Y2K problem.? This will helphospital information systems departments acquire the knowledge necessary to reprogramnoncompliant systems. The personal computer problem not only affects the hospital records department,but also the purchasing, billing, and payroll aspects of the accounting department. The purchase of essential medical equipment and supplies could be delayed if clerical softwareis not brought into Y2K compliance. In addition to President Clinton signing into law requirements that hospitals andother businesses share information to help solve the Y2K problem, The Washington StateHealth Association (WSHA) also recommends steps for compatibility for insurance billing. According to Tom Byron, chief information officer of the WSHA, ?The Washington StateUniform Billing Committee (WSUBC) has adopted multiple resolutions concerningelectronic submission of Uniform Billing (UB-92) claims such as, (1) use of the MedicalFlat File, Version 5.0, (2) all plans should be ready to accept the recommended format byOctober 1, 1998, (3) providers should submit claims in the recommended format byJanuary 1, 1999, (4) all plans should allow for a period of October 1, 1998 to March 31,1999 for providers to submit claims in either the recommended format or the currentformat, and (5) electronic formats not Y2K compliant should cease beginning April 1,1999. If the laws enacted by the U.S. Congress and the president , and therecommendations made by the WSUBC are followed, the Y2K problem will likely havelittle or no affect on the clerical areas of hospitals. In addition to the patient care and clerical concerns facing hospitals with respect tothe Y2K problem, there is one other pressing concern for hospitals. Utilities are essentialto the everyday life most people are accustomed to. If the electricity goes out at home,most people just burn candles and wait, without much worry, for the lights to come backon. However, losing utility service in a hospital could be much more than aninconvenience. Imagine having to go to the hospital on December 31, 1999. It could be more of aproblem than you think. All hospitals rely on electricity, gas, and water for their everydayoperations. A spokesperson for Major Hospital states that all methods have beenexhausted to comply with state and federal guidelines and suggestions regarding the Y2Kproblem. The suggestions include, but are not limited to, obtaining a copy of the?Approach to the Y2K Problem?, distributed by the federal government. This approachsuggests a plan of attack and an inventory of all systems that might be affected. A teamshould be formed with a leader to assess the problems. This team should assess andprioritize possible problems. At that point, the team must prepare a list of all assessmentsmade. This leads the team to the testing phase of the operation. After testing, correctionsshould be made, and a reassessment needs to be done. Utilities are just a small portion ofthe testing that will be done. Utility companies are spending more than $2 billion to test and prepare theircomputers and replace software in order to successfully meet the Y2K challenge. At thistime, there is no evidence that the Y2K problem will create power failures within thenationwide electrical power-service grid. Electric companies plan to have a dressrehearsal in September, 1999, to gauge how utilities will react to a simulation of the Y2Kscenario. The inability of some equipment and computers with date-sensitive components todistinguish the correct year after the year 2000 has now become a widely recognized andaccepted problem. The utility company Cinergy began an active response to this dilemmain 1996 with a review of several million lines of computer software application code in acampaign to locate and correct date-sensitive fields. Most of that code has since beenexamined, corrected, tested, and returned to operation. All such remaining systems are onschedule for completion by March, 1999. Cinergy, like most owners of information systems, will be required to modifysignificant portions of its systems to accommodate new local, state, and federalrequirements brought about by the Y2K problem. During 1997, Cinergy incurred costs ofapproximately $8 million. Maintenance or modification costs will be absorbed as theyoccur, while the costs of new software will be capitalized and amortized over thesoftwares useful life. For example, at Hawaiian Electric Company (HECo), the Y2K project teamidentified significant problems with its energy management system (EMS). EMS is the?brain? of the power distribution system at all electric companies. This system is used toremotely control transmission system breakers, coordinate power generation schedules,compensate for large transmission line breaks, and provide protection against voltage, andcurrent and frequency transients. HECo and their EMS system vendor determined thatEMS would crash on the rollover to January 1, 2000. This would have, in turn, resultedin HECos transmission network crashing, and by default, a major power outage and lossof all generating capacity. .ub96f0bb0579a8f327b5f9a4c440d9025 , .ub96f0bb0579a8f327b5f9a4c440d9025 .postImageUrl , .ub96f0bb0579a8f327b5f9a4c440d9025 .centered-text-area { min-height: 80px; position: relative; } .ub96f0bb0579a8f327b5f9a4c440d9025 , .ub96f0bb0579a8f327b5f9a4c440d9025:hover , .ub96f0bb0579a8f327b5f9a4c440d9025:visited , .ub96f0bb0579a8f327b5f9a4c440d9025:active { border:0!important; } .ub96f0bb0579a8f327b5f9a4c440d9025 .clearfix:after { content: ""; display: table; clear: both; } .ub96f0bb0579a8f327b5f9a4c440d9025 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ub96f0bb0579a8f327b5f9a4c440d9025:active , .ub96f0bb0579a8f327b5f9a4c440d9025:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ub96f0bb0579a8f327b5f9a4c440d9025 .centered-text-area { width: 100%; position: relative ; } .ub96f0bb0579a8f327b5f9a4c440d9025 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ub96f0bb0579a8f327b5f9a4c440d9025 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ub96f0bb0579a8f327b5f9a4c440d9025 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ub96f0bb0579a8f327b5f9a4c440d9025:hover .ctaButton { background-color: #34495E!important; } .ub96f0bb0579a8f327b5f9a4c440d9025 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ub96f0bb0579a8f327b5f9a4c440d9025 .ub96f0bb0579a8f327b5f9a4c440d9025-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ub96f0bb0579a8f327b5f9a4c440d9025:after { content: ""; display: block; clear: both; } READ: STUDY OF FAMILY INTERACTION LEAD TO NEW UNDERSTANDING OF ABUSIVE PAREN EssayBesides medical devices, embedded chips are ?hard wired? into other pieces ofequipment that may be critical to patient services or hospital operations. This equipmentis often the responsibility of the vendor, not the hospital. These systems include 1) firealarm systems, including detection, sending/ receiving, and suppression units, 2) securitysystems, including sending/receiving units, video and surveillance systems, and badgereaders, 3) telecommunications equipment, including telephone switching equipment,emergency call management systems, pagers, and cellular phones, 4) buildinginfrastructure, i ncluding HVAC, energy management and lighting controls, emergencygenerators and lighting, uninterruptible power supplies, and elevators. Major Hospital isamong a number of the worlds health care providers that will participate in every effort tominimize any and all malfunctions related to the Y2K problem. Gas companies are contacting their suppliers and service providers to determinethe status of their year 2000 compliance projects and will be developing contingency plansif their efforts do not meet certain goals. An inventory of computer systems, embeddedsystems, and resources has been developed and prioritized according to the importance tothe continuing operation of the companies. It is anticipated by gas companies that thistesting, and any required modifications to systems, will be completed by July, 1999. Major Hospital uses gas for heating and lab equipment. However, Major Hospital isunlikely to be affected by a gas outage because gasoline-powered electric generators willtake over in the event of an outage and run most systems. Wastewater and sewage treatment facilities are highly automated and contain year2000-vulnerable embedded chips. Also, emissions monitoring and control systems dependon year 2000-vulnerable embedded controls. Malfunctions due to Y2K problems couldlead to accidental pollutant-filled releases and emissions that could endanger localresidents. In August, 1998, a malfunctioning computer in Boulder, Colorado was blamedfor water main breaks that cut service to over 40 homes, flooded basements and garages,and turned city streets into raging rivers. A computer controlling water pressure gaveinaccurate readings, prompting a city worker to open the mains. Some residents andbusinesses were left without water for over a week. Major Hospital staff have preparedfor a water shortage. They have stocked up on bottled water, just as every other hospitalhas done. However, bottled water will only last so long. In the event of a prolongedwater shortage, such as the one in Boulder, Major Hospital personnel will be faced withpersonal hygiene and medicine issues. Patients must be bathed on a daily basis andwashed off completely. It is difficult to comprehend a hospital as an unsanitaryenvironment; where doctors must ?scrub? repeatedly to reduce the risk of infection andpatients must be kept free of germs. Medicines are sometimes mixed with water to formtheir completed structure. This crux could alarm the many patients who depend on thesemedicines. The sewage treatment plant in Shelbyille, Indiana that services Major Hospitalstates that the plant is already Y2K compliant. The faculty and staff at Major Hospital is extremely confident that when the newmillennium arrives, it will not be accompanied by any significant problems or catastropheswith regard to malfunctioning utilities. If any problems do surface, Major Hospital hasassured its community and its patients that the problems will be minor in scope and will bequickly and efficiently dealt with. As has been discussed in this report, the Y2K problem is a vast and complex issuethat must be dealt with by hospitals. Virtually every facet of hospital care is affected bythe Y2K problem. Patient care, clerical software, and utilities are three major aspects ofthe hospital organization that, if left unchecked for Y2K compliance, could causeconfusion, sickness, and even death among hospital patients. Worst case scenarios involvemalfunctioning pacemakers, improper medication being dispensed, and unusabledefibrillators in emergency situations. The Major Hospital staff, like most other hospitalstaffs, continue s to work diligently to ensure that whatever malfunctions occur are minor. It is difficult to predict the scope of the Y2K problem and the possible severity ofrelated malfunctions when the most knowledgeable computer experts disagree on theseverity of the problem. According to Alastair Stewart, a senior Year 2000 advisor withinformation technologies market watcher Giga Information Group, the Y2K computerdate bug will not cause an ?embedded systems Armageddon? as some have feared. ?Itmay rain, but the sky wont fall.? Giga recently called for a ?common-sense approach? tothe Y2K threat. Some projected scenarios have Y2K failures toppling civilization. Forexample, in one sequence of falling dominoes, embedded track switching controls willcause railroads to fail to deliver coal to power generation plants. As a result, electricutilitieswhich have Y2K problems of their ownwill shut down. As the power grid goesdead, telephones will stop working. Without communications the interlinked banks andinternational finance structures begin to fall and, ultimately, so does c ivilization. ?Can you hear the four horsemen galloping off in the distance remarked Stewart. ?Its easy to scare people with talk about The Great God Teowawki.? ?Teowawki?stands for ?the end of the world as we know it,? Stewart explained. Just as some downplay potential Y2K problems, others offer substantial evidencethat the Y2K problem is for real. Mike Wedland, a noted software expert and author ofnumerous computer software guides, produces the following examples for consideration:U.S. Social Security computer programmers have identified 30 million lines of codethat need to be changed to reflect the correct date after the year 2000. Some 400programmers have been working on this problem since 1991. As of June, 1997 theyhad corrected only 5 million lines. The Internal Revenue Service has identified 100 million lines of code that need to bechanged in their computers to fix Y2K problems. They have only found about 300programmers and they are just now getting started. An estimated 65 percent of the businesses in the U.S that need to correct the problemhave done nothing so far. Regardless of whether the Y2K problem is all hype or a catastrophe waiting tohappen, hospitals must prepare for the worst. While businesses deal in profits and stocks,hospitals deal in human beings. When peoples health and lives are at stake it is best to beaggressively cautious. It appears that most U.S. hospitals have a firm understanding of theconsequences of not being Y2K compliant, and are dealing with the issue accordingly. Technology Essays