Wednesday, July 31, 2019

Huntsville Project Team Meeting

HUNTSVILLE PROJECT TEAM MEETING As the Huntsville project manager to effectively coordinate and host a progress meeting with team members. There are three things that must be accomplished: meeting objectives; use the minimum amount of time; and participants should leave with a sense of direction and effectiveness in the meeting process. With these criteria in mind, the process of structuring, planning, preparation, and execution of the Project Progress Team Meeting will be a definite success. Predetermine the outcome and purpose of the meeting.Prior to setting the meeting objectives, I have to decide the end results or what I want this meeting to accomplish; whether it’s decision based, to generate ideas, update the status of the project, etc. so that it maximizes the allotted time and all participants can come prepare. Under all the stress of schedules, and time constraints; time is a precious resource during the life of a project and it should be used wisely. Therefore, duri ng the planning stage of this meeting, I owe it to my team members and myself to streamline the meeting in the most effective way to meet and cover all objectives in the least amount of time.In doing so I would prepare the agenda with the following factors in mind: priorities the agenda to determine what absolutely has to be covered; define the end result (what I want the meeting to accomplish); identify who needs to be in attendance and if required consider previously scheduled obligations so that I pick the superb time and date for max participation. With solid objectives, a tight agenda and a commitment to involving the meeting participants in the planning, preparation, and execution of the meeting, it’s a common curtsy to circulate the agenda to participants (team members) to get their feedback and buy-in.This gives them the sense of belonging and lets them know they’re actively contributing to the success of the project. Prior to closing the meeting I think itâ₠¬â„¢s important to reintegrate the highlighted points of the meeting and identify any team member due out so that everyone leaves the meeting on the same accord. Sending out meeting notes to assure objectives were met, would be the icing on the cake.

Tuesday, July 30, 2019

Mentoring Relationships: An Analysis

Mentoring is defined as a form of teaching where one guides without leading and basically teaches by example. In essence, it’s about helping to learn how to achieve something. Mentoring can be applied to a variety of fields and specialties, including business, the academe, healthcare, and government. For this case study, the focal point of interest as to learning experiences in mentoring will be Dr. Rachel Lindsay. It can be said that Dr. Lindsay has had many different types of mentoring relationships in the course of her professional career. Currently a professor of nursing, her original intent was to be a physician. However, her first mentor became responsible for altering this course of action. This mentor is none other than her own mother, who happened to be a nurse as well. The influence her mother had played a large role in her decision to become a nurse instead, after seeing the work her mother did and eventually becoming comfortable with it. The next major mentoring relationship she had afterwards was when she became a nurse consultant to a dentist who worked with chronically ill people. Her work with the dentist allowed her to gain an intimate perspective of the lives of the chronically ill and affected. Subconsciously, her experiences laid the foundation for her even deeper concern for the welfare of others, especially after being party to the various sufferings and vulnerabilities of the patients who came while she was under the tutelage of the dentist. However, while her experiences thus far with the mentoring process had been successful and beneficial towards her overall development as an individual, there were also times when the system let her down. When given the task of having to deliver a course for nurses who work in nursing homes, Dr. Lindsay immediately discovered a problem with the course in question. Hoping to rectify the situation, she approached her dean, whom she looked up to, in the hopes of him becoming her mentor and help her revise the course to make it a better one. Unfortunately, the dean did not honor this request and only disappointed her. This became her first experience at being let down by a possible mentor in her life. This was further proven when she discussed her career plans, only to find that he was against nurses with advanced degrees. Disillusioned, Dr. Lindsay turned to a nurse practitioner only to be disappointed again; her new mentor only seemed content with discussing procedural knowledge but not abstract changes. These happenings turned out to be for the better however because it signaled her return to the hospital setting, where she would later handle staff development classes and meet another mentor in her life, Bob the HR director. Under him, she learned many new things, not just about the profession itself, but with dealing with others and outside pressures as well. It would not be long before she became satisfied enough to move on to another job. Dr. Lindsay eventually ended up in the academe, where another mentor emerged in the form of her division chair. Just like her other mentors, this one did not seem threatened or impressed that much with her degrees or experience, thus their working relationship became very good indeed. This relationship would soon be tested because of a case of plagiarism of one of Dr. Lindsay’s students, and it can be said that neither Dr. Lindsay nor the subject chair in question saw eye to eye on how best to treat the student. In summary, after all her experiences with different mentors, Dr. Lindsay’s mentoring tool kit should include the knowledge she has gained through her many years in formal education, plus the knowledge she gained through her various experiences. This, combined with the many years she spent under various mentors will help her to become the most effective mentor possible. References Gibson, S. K. (2004). Being mentored: The experience of women faculty. Journal of Career Development, 30(3), 173-188. Stewart, B., & Krueger, L. (1996). An evolutionary concept analysis of mentoring in nursing. Journal of Professional Nursing, 12, 311-321. Veenman, S., & Denessen, E. (2001). The coaching of teachers: Results of five training studies. Educational Research and Eva

Monday, July 29, 2019

How well is neo-functionalism still able to account for the evolution Essay

How well is neo-functionalism still able to account for the evolution of the European Union - Essay Example Studied critically, the EU policies positions Europe as a silent superpower having power that equals or supersedes the one held by US in almost all aspects expect that of deployment of military forces (Moravscik, 2005, p. 349). The European Commission receives preferential treatment and recognition in international secretariats as the powers of the European Parliament continue to increase steadily over years. From 1950s, scholars have described European Union as an institution on an upward growth path and in course of achieving ever closer ties (Moravcsik 2005, 350). He asserts that such thinking is linked to neo-functionalism, forming one of the two main theories considered in analyzing EU integration; neo-functionalism and inter-governmentalism (Moga 2009, 796). Both theories have been criticized, amended although they consist of strong theoretical arguments useful in understanding integration. The theory of neo-functionalism emerged in mid 1950s and is used to explain regional integration where countries do away with barriers to trade to enforce free trade. Neo-functionalism is heavily connected to the strategies used in integration (Rosamond 2000, 10). Jean Monnet, described by various authors as the principal architect of the European integration and a founding father of EU adopted an approach that aimed at bringing integration in similar sectors with an aim of bringing attaining spi llover effects which would further the integration process (Rosamond 2000, 11). The theory was developed by Earns Haas where he reformulated the principles of functionalist and analyzed them in the context of regional organizations. Neo-functionalist views integration as driven by creation of institutions although they were not originally aimed to do this. Neo-functionalism postulates that with the formation central supranational sate, the role of nationalism and national states declines. In addition to positive spill over, the other mechanisms seen as driving integration include technocratic automaticity and change of domestic alliances (Moga 2009, 796). An example of positive spill over is a situation in which a sector such as coal and steel under the governance of a single central institution cause so much pressure to the other associated areas of policy including taxation and wages and influences integration (Wallace 2004, 15). Change in domestic alliance happens when various st ate interest groups, elites and associations transfer their loyalty to supranational institutions and away from national institutions. This is usually fuelled by a realization that supranational institutions offer better paths for achieving the desired goals rather than national institutions (Wallace 2004, 16). This leads to grouping of individuals having pro-European ideas and persuades national leaders to shift their alliance to an integrated region (Wallace 2005, 17). Technocratic automaticity views integration as being boosted by supranational institutions which become stronger than member states. This paper will evaluate how well neo-functionalism can still be used to account for the evolution within the European Union and the discussion will be based on the various developments that have occurred during the past two decades. Inter- govermentalism looks at integration from

Sunday, July 28, 2019

Universal jurisdiction application of International Law Essay

Universal jurisdiction application of International Law - Essay Example Universal jurisdiction refers to universal prescriptive jurisdiction and obliges states to assume jurisdiction over international crimes that are especially serious regardless of where the crime was committed (O’Keefe, 745). According to the dissenting opinion of Van den Wyngaert, the definition of universal jurisdiction is not clearly established under international Convention or customary international law with the result that the definition is uncertain (Arrest Warrant of 11 April 2000 also known as Joint Separate Opinion of Judges Higgins, Koijmans and Brugenthal). However, the International Law Commission and the International Criminal Court Statute both provide ample explanation of the concept of universal jurisdiction and its purpose. This paper identifies and analyses the international law on universal jurisdiction and identifies where uncertainties may arise. Definition and Concepts of Universal Jurisdiction According to the International Law Commission’s Report of the Sixth Committee, universal jurisdiction is defined as: †¦a legal principle allowing or requiring a state to bring criminal proceedings in respect of certain crimes irrespective of the location of the crime and the nati onality of the perpetrator or the victim (1). Arguably, the concept of universal jurisdiction is also referred to in the Rome Statute for the International Criminal Court, 1998 (ICC Statute). The Preamble to the ICC Statute, states that â€Å"the most serious crimes of concern to the international community† â€Å"must not go unpunished† and that all member states will implement laws for ensuring the â€Å"effective prosecution of† of those crimes† and in doing so, the international community must cooperate (ICC Statute, Preamble). More specifically, the Rome Statute of the ICC goes further to state that: †¦it is the duty of every State to exercise its criminal jurisdiction over those responsible for international crimes (Preamble). According to the Joint Separate Opinion of Judges Higgins, Koijmans and Brugenthal, various states have implemented laws conferring jurisdiction on them over international crimes. However, none of these states have provide d for jurisdiction over crimes to which the enabling state does not have some form of connection (Joint Separate Opinion of Judges Higgins, Koijmans and Brugenthal, 70). National courts have been more decisive however. For example, the Federal Court of Australia listed a number of international crimes over which it had universal jurisdiction. The Supreme Court of Austria ruled that it had universal jurisdiction over crimes of genocide. The United States has assumed universal jurisdiction in two notable cases, Yunis in 1988 and Bin Laden in 2000(Joint Separate Opinion of Judges Higgins, Koijmans and Brugenthal). Some states are hesitant to assume jurisdiction over a matter that another state has jurisdiction over. For example both the UK and the Russian Federation have expresses similar views against one state assuming jurisdiction over a matter that relates to an offence that was committed within the territory of another state (Joint Separate Opinion of Judges Higgins, Koijmans and Brugenthal). Regardless, in addition to international treaties in which jurisdiction over specific crimes such as torture and genocide require some form of link to the offence, the offender or the victims in order to confer jurisdiction, universal jurisdi

Saturday, July 27, 2019

Doha Development Round Essay Example | Topics and Well Written Essays - 1250 words

Doha Development Round - Essay Example To add to that, even USA and EU have strategic differences on certain issues. The most recent round, which was held in 2008, broke down after the member countries failed to reach a consensus regarding agriculture import rules (BBC, 2008). Though these were followed by intense negotiations, they failed to break the deadlock. The World Trade Organization was formed with an aim to supervise and liberalize international trade. The Doha round of talks was a devise formulated to achieve that aim and lower trade barriers around the world, thus facilitating growth in trade globally. Besides that, the talks were also meant to insure that multilateral trading system must benefit the developing countries that constitute over three quarters of WTO members. The Doha declaration declared that the member countries of the WTO should strive to negotiate a policy, wherein the developing countries manage to secure for themselves a share in the growth of world trade in accordance with their respective national economic growth. To achieve the above stated goals, the following twin means were identified- reducing import tariffs, thus allowing the developing countries to have wider access to the global markets, and discouraging domestic and export subsidies, which would enable the over-production of goods at very low prices. This in turn would again boost trade practices. The talks were centered around... Thus, the Doha declaration carefully worked on these strategies and elaborated a set of objectives with stipulated deadlines. The objective was to establish a fair and market-oriented trading system through a program of fundamental reforms. The program strengthened rules, and provided specific commitments on government support and protection for agriculture. The purpose was to correct and prevent restrictions and distortions in world agricultural markets. (WTO 2001). As has been discussed earlier, the major emphasis was on decreasing and eventually phasing out export subsidies, reducing support systems that pose a threat to trade relations, and broaden the limits of global markets, thus making them more accessible to the developing countries. Out of the 132 countries that are a part of the WTO, 103 countries are classified as developing or least developed. In majority of these countries, agriculture is the chief occupation for the masses. Thus, all possible steps were taken to ensure that developing countries benefit from the declaration, especially when it comes to the issue of agriculture. The issue was managed under the following dimensions- market access, domestic supports, export competition, and development issues. At certain places, these counties were also rendered special treatment, to alleviate domestic problems of food scarcity and rural development. Recently, however agriculture( more specifically, agriculture import rules) has become the crux of several deadlocks. The reforms were not limited to the agricultural sector alone. Negotiations were also carried out to implement tariff cutting schemes on major non agricultural

Friday, July 26, 2019

Detailed Research Proposal Example | Topics and Well Written Essays - 1250 words

Detailed - Research Proposal Example These definitions underpin the reason why it tends to wield strong influence on the behavior of teenagers. There are many reasons behind peer pressure but foremost of these is the desire of teenagers to follow people whom they idolize and wish to follow and also to belong and be identified with a group. This is, fundamentally, human nature. Therefore, it is inevitable. Humans are willing to adhere to social mores because it is a requisite in being a member of the community. The dynamics is the same in the case of peer pressure. The school and the social environment of children and adolescents is a microcosm of our society where membership, belongingness and recognition are very important aspects of growing up. The potency of influence of peers has also been attributed to the power of the crowd over its members. It has been said that it â€Å"provides a means of transition from unisexual to heterosexual social relationships by facilitating interclicque activities (Tierney et al., 52) .† Negative peer pressure adversely impacts the psyche of young people and adolescents. The pressure from a group that an adolescent belongs to is very effective because minors are still not capable of completely comprehending the consequences of their actions. Drug abuse, smoking, sex, violence etc. are just few of the activities that teenagers are being forced to do just they could be part of a group (Phelan, Davidson and Thanh 1991). The most extreme outcome of peer pressure is the deviation from established social norms (Berten and Van Rossem 2011). The undesirable behaviors could include drug offences, street violence, theft and burglary, among other crimes. Additionally, several social problems could also result in the process such as teenage pregnancy and bullying. Peer pressure, hence, is an important public issue that needs to be defined, understood and addressed as a problem. By doing so, it is expected that several pressing public concerns can also be dealt with. Fo r instance, it can contribute to solving the problem of juvenile delinquency. This study seeks to contribute to the body of literature on this theme and in the process enrich the extant resources that could ultimately help solve the negative effects of peer pressure. The topic of the research is how to reduce the impact of negative peer pressure on children. Research Hypothesis Peer pressure is an important social phenomenon that intrinsically links human behavior to a cause. Construction of social identities become critical paradigms that are influenced by group representation, ideologies, inter-cultural compulsions etc. and motivate people to adopt specific behavior or activities that would represent their group characteristics. Indeed, Evans & Rilling, (2000) believe that in order to feel secure and connected, individuals adapt themselves to particular situation, setting or people thus, changing their behavior to experience inclusion and consistency. Teenagers especially tend to follow peer group so that they can become part of that particular group and be accepted by the members. Children get attracted by peer groups because they are still trying to find their position in society and assert themselves as individuals. Thus, it is important that adolescents and teenagers must be carefully guided to understand the difference between what is good for them

Ethical dilemma.organizations ethical dilemmas Essay

Ethical dilemma.organizations ethical dilemmas - Essay Example According to McManus, â€Å"ethics involves learning what is right and what is wrong, and then doing the right thing†. The main thrust of this paper is to discuss what is an ethical dilemma and how are organizations responding to these dilemmas. If an organization’s leading moral principles could not distinguish between what is right and what is wrong or when values are in conflict, then it is in a situation called an ethical dilemma. However, most of the time, an ethical dilemma has no absolute answer because determining right and wrong is a subject matter of what the organization believes. The main thrust of this paper is to discuss what is an ethical dilemma and how are organizations responding to these dilemmas. Ethical Dilemma Ethical dilemma in an organization is complicated because it is necessary for the organization to make a decision among competing values or set of principles in a safe fashion that the organization is morally responsible. These dilemmas are o ften found in every organization and profession where there are people that have diverse personalities, behaviors, goals, and perceptions that are asked to work in the same fashion despite of these differences (Johnson 259). There are ethical dilemmas in an organization that are hard to settle because of their complexity and this kind of dilemmas are aided by a formulated written ethical guidelines, the code of ethics, in order to guide the organization in coming up with a sound decisions.

Thursday, July 25, 2019

Management of Change and Innovation Essay Example | Topics and Well Written Essays - 3500 words

Management of Change and Innovation - Essay Example Therefore any change taking place within the organisation directly affects its people, which in turn affect the running of the organisation. The management of change is now commonly viewed as a complex and difficult area worthy of special attention and study (Buchanan and Boddy, 1992). Therefore the concept of organisation change and subsequently the change management have been the areas of study in the latest efforts to come out with effective management techniques. Management has to see that the change if required must be effected in such a manner it works for the betterment of the organisation and its people. There's in fact a very thin dividing line between change and innovation. While on the one hand innovation at times calls for some radical changes in the functioning of the organisation, change too may be or may not be a result of the innovation in some processing/techniques for the company. There are in general three broad categories of change: Changes in people: Such a change involves changes in attitudes, expectations, Perceptions, Behavior etc. This type of change is also brought about when employees retire, quit, and/or are transferred, promoted, demoted or fired. The human element in an organisation is dynamic and it must always be considered as such. Human beings constantly keep changing in their characteristics depending upon the environmental factors. Also some personnel become obsolete primarily because the activity they perform becomes obsolete or the way of doing it changes drastically. Changes in the organizational structure: Such a change involves changes in authority relationships, coordinating mechanisms, Job redesign, Spans of control etc. A 'dynamic' manager is always on the lookout for the opportunity to improve the organisation. The developments in organisation theory and the possible benefits to be gained from better organisation help stimulate and keep alive the organisation dynamics. Following the collapse of the UK housing and construction market in 1989, McInerney underwent a major restructuring; following which, McInerney Holdings was formed. Changes in technology: If there are changes in work processes, work methods, equipment etc. This type of change generally results out of innovation. Change brings along a component of uncertainty with it, as nobody feels totally confident about the new things. Therefore, if implemented in haste, there's every chance that such a change will be resisted. Change should therefore be implemented in a 'controlled' manner to ensure that change is seen to be implemented in an orderly and consistent manner. Innovation on the other hand should be 'channeled' when decisions are made within a company. Innovation may be a precursor to change, but may equally be required for design, or problem solving of newer problems, newer projects or just for competing with the competitors. Change is generally brought about by external forces as well as some internal factors. The major external factors responsible for change are; Marketplace: If the market sees newer marketing techniques, marketing communication methods, competition, etc. then the company is required to take an appropriate step so that it remains in business and continues to grow. In today's competitive environment this is one of the potent reasons for change. For example, the construction major of Ireland McInerney Holdings Plc found the leisure market in the Iberian Peninsula attractive,

Wednesday, July 24, 2019

Are you a leader If so, why If not, why not Reflect on your Essay

Are you a leader If so, why If not, why not Reflect on your performance in a leadership role. What did you do well What did - Essay Example The Australian Leadership Development Centre believes on one meaning of this word. It may just be a simple yet strong definition. According to the Centre, leadership is â€Å"any behaviour that influences the actions and attitudes of followers to achieve certain results† (Killian, 2007). There are some people who say that for one to be a leader that person should have followers. Example, a person who can be so timid and quiet can be pushed by certain factors like emotions and intellect to come out of his shell and make his voice be heard. People then noticed him and took quite a following because of his belief. That does make him a leader already? He can be considered as a leader. Another definition for leadership is â€Å"about managing energy, first in yourself and then in those around you.† That made the first example a leader, he is a made leader rather than a born leader (de Percy, 2009). There are people who were born to lead. They are those who do have a very str ong personality, will to serve and always make it a point that their opinions are heard, convincing and influential. Most of the times these people are born from a family of leaders and they were brought up with high awareness of the advocacy is to be heard and make others follow. The school is where the foundation of being a leader begins. This is where the skills are discovered and enhanced. From a simple classroom organization to the next level of a club or organization are considered as the learning grounds of a person who dreams to become a leader. Skills are needed to become a leader. But the first step in becoming one is being confident and making one self to be heard with pride and without the fear for the criticism that might be awaiting that person once he opens his mind and mouth to make way for his thoughts and opinions to be heard. This is also the place where everything starts to shape up. If one realizes that he could not stand the criticism being brought up to him, t hat person tends to be just one of the followers. However, when one continues to fight for his opinions and debate on criticisms, that person is on his way in becoming a leader. Being a leader though also involves quite a few factors. One factor that may come into mind is one’s willingness to lead. Even if one person do have the characteristics of being a leader, if that person have other things in mind that hinders him from being one, he would not become one. That person do have all that it takes to become an effective leader but ought to be a follower, he would not become a leader. Willingness to lead is the first step on becoming a leader. Leading a pact of people should be in one’s heart and mind to do his role efficiently. If one is just forced to the position of a leader, therefore that person would not be efficient for the reason that being a leader is not what he wants to be in his life. Next is that the person needs to have a goal. Why does he want to be a lea der? For the fame? For the power? There are so many reasons that can be stated on why a person would want to be a leader. If the cause of that want is perceived by the many to be for the good of everyone, therefore that prospect leader would be a leader because he has a goal and that goal was conveyed in a convincing manner which made others believe in his opinions. That is the next factor, the power to convince. As what have been stated earlier, to be a leader one should

Tuesday, July 23, 2019

Analysis of the economic arguments of an independent central bank Essay

Analysis of the economic arguments of an independent central bank - Essay Example The Latin American inflations are fable material with inflation rates sky rocketing often to 200% or more. In some extreme cases what was affordable at twilight became unaffordable by daylight. With complex and fine lending and borrowing of money as investible funds, interest rates have turned indicators that are pliable in the hands policy makers or dictators as the case may be.Government, myopic with political avarice, and desirous of sweeping hustings have dictated lower interest rates, keeping economic realities on window sills. This tended to raise up spending and then employment though only in the short term, but finally and in the medium to long term it caused severe inflationary pressures. Inflations were crippling when such spending was directed less towards real sector and more towards wasteful expenditure resulting in the physical output not meeting the heightened stock of money in circulation. It is at once natural for a political system to dictate manipulation of monetar y policy and maintain only a short run vision of popularity in or around the election period even risking higher inflation just because this option always was available to detractors or competitors for votes. The Keynesian prescriptions did not build a specific treatment of inflationary situations despite the fact that such situations had arisen. It was preoccupied with determination of the output levels and relied only on a simplistic analysis of inflation via media the demand and supply theory of money. Enunciation of the Phillips curve added a logical sequence to analysis of inflation. The Phillips curve, in its native form, posited a long-run trade-off between inflation and unemployment. However this causality has been reexamined and redefined theoretically and... This paper presents a thorough theoretical analysis of the varying role of central banks in an economy, in an attempt to find the optimal level of central bank`s independence from state. Central banks the world over have quiet but strong presences. With low public visibility they perform the most vital of functions with that of creating and putting into circulation legal tender money. As is known legal tender money serves as a means of payment, a unit of account and a store of value. The most preferred favoring an independent central bank is that the power to expend money should be separated or delinked substantially from the power to create money. In case these two capabilities converge we have spendthrift governments indulging in fiscal profligacy while the Central Bank simply acts as a 24/7 mint or currency printing house. While political masters may be tempted to manipulate monetary policy to suit their short term political objectives the Central banking professionals, having no such ulterior targets, nurture and design monetary policy generally on a long horizon. Protecting monetary policy decisions from State dictates can better assist the cause of lower inflation while a decent economic growth rate can be targeted concurrently. Short run considerations of political nature force the economy in bouts of uncontrolled accelerations which often turn uncontrollable and unsustainable. In nearly every major financial crisis political interference in financial sector regulation helped make a bad situation worse.

Monday, July 22, 2019

Designing a Safer Passenger Aircraft Essay Example for Free

Designing a Safer Passenger Aircraft Essay Aircrafts have become more advanced and fast, but they are drastically affected by ignorance and design incapability. However these structures can fly with more than 200 passengers and heavy cargo, but when they crash, they take away with them many lives and damage valuable property. To prevent such loses several aviation safety agencies like EASA(European Aviation Safety Agency) and FAA(Federal Aviation Administration) have been functioning. These agencies implement and monitor safety rules for aircrafts. They also certify and approve organizations involved in the design, manufacture and maintenance of aeronautical products. Safety of an aircraft depends on every smallest possible detail of it. For designing a safer passenger aircraft a lot of investigation has to be done on flight failures, to prevent such failures. There are four main aspects considered while designing an aircraft: Aerodynamics, Propulsion, Structures and materials, Stability and control. An overview on the design of a fixed wing aircraft: The structure of an aircraft is configured as follows: A fuselage is a long cylindrical body with tapered ends to make its shape aerodynamically smooth. Fuselage carries flight crew, passengers, payload, fuel and engine. Fuselage also holds a large wing which provides sufficient lifting force to the aircraft due to the shape of its cross section (aerofoil). This large wing has ailerons to control rolling motion. The vertical stabilizers present at the rear end of the aircraft, stabilizes the yaw motion and horizontal stabilizers stabilizes the pitch. Elevators are mounted to the horizontal stabilizers and it controls the pitch of the aircraft. Engines provide the trust required for the aircraft. The landing gear is a set of wheels that supports the plane on ground. Control system of an aircraft: Yoke controls the pitch and roll motion of an aircraft. Rudder pedals control the rudder and thus it controls the motion about the yaw axis. Throttle lever controls the thrust produces by each engine and brakes slow or stop the airplane on ground. There are controls for flaps and spoilers. A tiller is used to steer the plane on ground. An automatic flight management system helps pilot in maintaining altitude or mode of flight. Analysis of investigation reports of some airplane crashes and preventive measures in design: A Pilatus aircraft crashed near Bert Mooney airport in July, 2011 due to loss of control. Investigation reports showed that there was icing within the fuel system causing low fuel pressure state as fuel system icing inhibitor was not added to the fuel before flight. All jet fuels contain trace amounts of water that form crystals and block the fuel system. Icing inhibitors decrease the freezing point to about -40? C preventing water from freezing. Some chemical detector can be introduced that could detect the concentration of icing inhibitors present in the fuel. An alarm can also be added to the electronic system of the aircraft which will remind the pilot of adding icing inhibitors while refueling. Aircrafts flying in cold weather develop icing on wings which greatly impair wings ability to generate sufficient lift. Air Florida flight crashed on take-off in January, 1982 as a result of ice on its wings. Modern airliners are designed to prevent accumulation of ice on wings, engines or tails either by routing heated area towards icing or by using inflatable rubber tubes that expand and break off any accumulated ice. Similar method can be used in the design or the accumulated ice can also be removed by sending small amplitude vibrations to the accumulated area. A Boeing cargo airplane experienced ground fire before engine start-up at San Francisco International airport. Investigation blames the design of the supplemental oxygen system hoses and the lack of positive separation between electrical wiring and electrically conductive oxygen system components. The lack of positive separation allowed a short circuit to breach a combustible oxygen hose, release oxygen, and initiate a fire. This can be taken care of in the design and either separation between the oxygen hoses and wiring can be increased or insulation of wiring can be made more strong. Composite materials used in structure of an aircraft consist of layers of fibers embedded in a resin matrix. These layers separate from each other when subjected to cyclic stress and they lose strength. This failure is not shown on the surface. An amphibian plane suffered a structural failure in Florida. The right wing of the aircraft separated during normal flight due to lack of maintenance. Ultrasound based instrument method is used to detect such failures in designing a safer aircraft. As in Air France Concorde crash case, pilot detected fire very late. Installation of video cameras at critical places can be a preventive measure as pilot will be able to keep a watch on plane if there is no other failure detecting mechanism. During high speed landing or take-off extreme pressure and heat build-up in tyres and in such conditions tyres burst. This is equivalent to explosion of 4-5 dynamites. This could damage the fuel tank or engines and even initiate a fire. Some cooling mechanism within tyres can be used to prevent such conditions of high temperature and pressure. Above safety concerns and all other governing factors can be considered to design a safer passenger aircraft. Apart form these problems foreign object debris, positive lightning, bird strike, volcanic ash can also be taken care of while designing an aircraft. Ground based navigation aids can also be improved by improving GPS systems and some backup modes of communication may help in significant reduction in air crashes due to lack of information and misleading.

The Migration and Assimilation of Mexican Americans Essay Example for Free

The Migration and Assimilation of Mexican Americans Essay The migration of Mexican Americans has been a long journey. The road in which most have taken is one of sacrifice and hard-work. A road paved with the dreams and hopes, faith, determination, and the forbearance to achieve all that this land has to offer. The subject to be discussed is how Mexican Americans have migrated and how they were assimilated into â€Å"American† society. The history of Mexican Americans migration dates back to the twentieth century, which are closely associated to the growth of the railroads and irrigated agriculture. Economic conditions in Mexico caused hundreds of thousands of Mexicans to make new beginnings in the United States in the years from 1917 to the outbreak of the Great Depression in 1929 (Compean, n. d. ). Because of the expansion of sugar beets in Idaho, many Mexican migrant workers were recruited to the basin of the Columbia River. An increase in the demand for labor was seen when recruiters for the railroad companies and agriculture started to move out to the southwestern states and the borders cities in northern Mexico because many Mexicans voluntarily enrolled to find employment and a better life in the United States (Compean, n.d. ). On the other hand, many traveled to the areas of Oregon, Idaho, and Washington on their own because they received word about work opportunities. However, The Great Depression drastically slowed Mexican migration to those regions, but it did not fully come to a halt. Agriculture started to increase in volume because of World War II coming into place and so the demand for labor also increased. Recruiters, again, went in search for Mexicans and Mexican Americans to work the fields. Thousands from the regions of northern Mexico and the Southwest responded to this call to engage in hard and unceasingly hard work in the fields and orchards. At this time the federal government also joined in this struggle by coming to an agreement with Mexico to import Mexican contract workers, who became known as braceros, to harvest crops in the Pacific Northwest and other regions of the country (Compean, n. d. ). Many criticized the Bracero program indicating that it was an indentured alien program and a system of cross-border labor exploitation. Many Mexicans and Mexican Americans were not all eligible for the Bracero Program. Only healthy, landless, and surplus male agricultural workers from regions not experiencing a shortage in labor were allowed to be part of the Bracero Program contract (Hernandez, 2009). In the post-World War II years that the agricultural work opportunities continued to increase and attract Mexicans and Mexican Americans to such states as Oregon, Idaho, and Washington. An increase in the Mexican American migrant â€Å"settling out† of the migrant stream to search for year-round employment and to establish roots close to where they worked was becoming more predominated. Many plants were erected providing more employment and education was also provided for their children. It could be clearly seen that an assimilation process was occurring because Mexican Americans were able to establish communities. As a subordinate group, they have taken on many similarities or characteristics of the dominant group. Religion-based celebrations and customs also encouraged ethnic fellowship and the continuity of Mexican culture among Mexican American communities in the Pacific Northwest. Many of the assimilated features among the Mexican American people were that of volunteer, cultural, and political associations, which has played an important role in the building Mexican American communities in the Columbia River Basin (Compean, n. d. ). Before 1970, a small amount of inhabitants with poor levels of education and discrimination prohibited many from any purposeful political participation in the community where they reside. Mexican Americans will continue striving to shape politics and in the Columbia River Basin as they become citizens. As second-generation descendants; Mexican Americans will continue to obtain education to have the opportunity for voting, erecting businesses, and to contribute important factors to the cultural life of the region. The Mexican American subordinate group has had a great deal an impact not just in the past but well into the present regarding the agricultural department here in the United States. Hernandez (2009) stated, â€Å"By the turn of the twenty-first century, over one hundred years of Mexican and Latino immigration had forged a large Hispanic population in the United States, which signified a fundamental shift in U. S. demographics and carried a significant impact upon American society and culture. However, the century of mass migration from Mexico and, more recently from Central America, was dictated by developments that spanned far beyond the borders of the United States. Uneven capitalist development and U. S. foreign policy framed the story of Latino immigration to the United States,† (pp. 28). References Compean, M. (n. d. ). Mexican Americans in the Columbia basin. Retrieved from http://archive. vancouver. wsu. edu/crbeha/ma/ma. htm Hernandez, Kelly Lytle. OAH Magazine of History, Oct2009, Vol. 23 Issue 4, p25-29, 5p Schaefer, R. T. (2006). Understanding Race and Ethnicity (10th ed. ). : Prentice-Hall.

Sunday, July 21, 2019

Impact of Islamic Banking on Consumer Financing Sector

Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the Impact of Islamic Banking on Consumer Financing Sector Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the