The Russian Revolution of 1917 Essay -- History Soviet

I recollect as a child how I cherished the way my mom took care of me and made all my executive decisions. I recall getting excited about my weekly allowances and about her picking out my clothes for school. However, when I became a teenager I wanted my independence. I know longer wanted her to buy my clothing and I wanted to financially support myself by getting a job. I was so tired of her telling me what to do and how to do it that I revolted. At first it was difficult trying to establish independence in my mother's house, but after a while it seemed as if I had won the battle. Unbeknownst to me that battle would be short-lived and ultimately my mom won the war. Basically, I had constructed my own crazy revolution against my mother. You see a revolution is â€Å"a fundamental change in political organization; especially: the overthrow or renunciation of one government or ruler and the substitution of another by the governed .Activity or movement designed to affect fundamental cha nges in the socioeconomic situation (Webster Dictionary).†One revolution that is said to have inspired communism was the Russian Revolutions of 1917. A communist revolution is inspired by ideas of Marxism whose main purpose is to replace capitalism with communism also considered socialism. â€Å"Marxists believe that the workers of the world must unite and free themselves from capitalist oppression to create a world run by, and, for the working class (Britannica).† The Russian Revolution began in 1917 and consisted of two periods of revolts; the February Revolution and the October Revolution. It has been said that the 1905 Russian Revolution prompted the February Revolution due to â€Å"the massacre is Saint Petersburg, Russia known as Bloody Sunday. A council of wo... ...ns change history whether it is positive or negative. In the case of the Russian Revolution things could have been avoided or done differently however because of this revolution Russia began to slowly rebuild programs such as the New Economic Policy (NEP) were created. Works Cited "Russian Revolution of 1917." Encyclopà ¦dia Britannica. 2010. Encyclopà ¦dia Britannica Online. 02 Dec. 2010 . "socialism." Encyclopà ¦dia Britannica. 2010. Encyclopà ¦dia Britannica Online. 02 Dec. 2010 . Hindsight, Sept 2008 v19 i1 p22(4) Russia, 1914-17: Part 1 the road to revolution. Hugh Jebson. Kirby, David, The Baltic World 1772-1993: Europe's Northern Periphery in an Age of Change (London: Longman, 1995).

Movie Review of The Patriot Essay -- The Patriot Movies Film Revolutio

Movie Review of The Patriot I. Title- The Patriot Production Date- June 28th 2000 Major Characters- Benjamin Martin: Mel Gibson Gabriel Martin: Heath Ledger Charlotte Selton: Joely Richardson Johnny Issacs: William Tavington Lisa Brenner: Anne Howard Charles Cornwallis: Tom Wilkinson II. Movie Summary: â€Å"The Patriot† takes place during the Revolutionary War. It’s 1776 and intense fighting is going on in the north, while in the south the people are scrambling to recruit anyone who was willing to fight against the British. The main character, Benjamin Martin, is a veteran of the French and Indian war who wants independence from Britain, but is not willing to risk the safety of his already motherless children by going to war. His son Gabriel however, has a different view of the war, and enlists in the Continental Army without the consent of his father. Soon Benjamin is forced into action whether he wanted to be or not. When helping out hurt and wounded soldiers from both sides at his home he is viewed as a traitor, and Gabriel is ordered to be hanged. Benjamin’s son Thomas tries to help Gabriel, but is shot and killed by the brutal and nasty Colonel William Tavington, who also orders the Martin’s house to be burned to the ground. This understandably pushes Benjamin over the edge. He and his two younger sons then by themselves gun down over 20 redcoats and rescue Gabriel. Benjamin’s quick shooting and stealthful movements earn him the nickname of â€Å"The Ghost.† He then leaves his children with their aunt Charlotte, and forms a small militia group full of locals to help in the fight against the British and for personal revenge. Martin’s militia accounts for many redcoat deaths and cause a lot of trouble for the British. Col. Tavington however, results to his brutal tactics against the families and loved ones of the soldiers in Martin’s militia. Tavington is responsible for the deaths of Gabriel’s, wife, most of the citizens of their SC town, and later Gabriel himself as well. Martin’s army however overcomes much adversity, and plays a large part in the Continental effort. They later join up with the main Continental Army, and along with the long awaited arrival of the F rench, force Cornwallis and the British to surrender at Yorktown. Benjamin also gets his revenge by killing Tavington in the battle. This spells victory for the Americans and p... ...eeing this it gave us a look at what it might have been like if we lived during the war. I also disliked some things in the movie. I didn’t like how they put the British in a bad light regarding their involvement in the killing of innocent civilians. The brutal acts that were carried out in the movie by the redcoats could not be proven true. The movie also could have included information about other militia groups and the Continental Army as a whole. I also think that this movie was very one-sided. It was definitely pro-American, and against the British. This makes sense because it is an American movie, but I think it serves an injustice to some of the innocent British soldiers. Mainly Hollywood didn’t really care much about the historical accuracy, but they wanted to make an exciting movie that would sell tickets, and they did that in â€Å"The Patriot.† VI Bibliography Danzer, Gerald A., et al. The Americans. Boston: McDougal Littell, 1998. 108-117. Nash, Bruce. The Numbers. 1997. 13 Feb. 2005 . The American Revoulution Home Page. 1998. 14 Feb. 2005 . The Patriot. Dir. Roland Emmerich. Perf. Mel Gibson,Heath Ledger,and Johnny Issacs. DVD. Columbia Tristar , 2000.

In Field Flow Lines Of Oil Fields Environmental Sciences Essay

As oil Fieldss mature, smaller â€Å" in-field † flow-lines used alternatively of big diameter bole pipes. The little diameter grapevines normally installed by reel-lay techniques. In this technique the grapevine to be laid is manufactured in a uninterrupted length on board of the pipelaying vas and so spooled onto a big reel. During the pipelaying procedure the grapevine is normally straightened and passed over an inclined incline. Tensioners and/or clinchs are used for keeping the antecedently launched ( Joop Rodenburg et Al. Patent application rubric: Marine Pipelaying System and Method for Installing an Offshore Pipeline That Includes One or More Accessories ) . This method normally used in little diameter but requires thicker walled pipe to avoid local buckling during bending and unbending procedure ( M.F. Bransby et a l. ) . Offshore grapevines are buried beneath the ocean floor for protection against angling activity icebergs scouring and to supply on bottom stableness and bettering thermic insularity of the grapevine system. There is extended usage of little diameter, stiff steel grapevines within the seaward oil and gas industries to transport trade goods from their point of recovery to the shore ( or to other installings ) . Burial of these grapevines beneath the ocean floor is necessary for safety, operational and environmental concerns, e.g. bar of harm from angling vass, iceberg protection, on bottom stableness and betterment of the thermic belongingss of the grapevine system. Since grapevines are laid in remote and potentially hostile environments, frequently at great H2O deepness, the cost of puting and keeping the grapevine can be highly high, in footings of the existent work required, equipment mobilisation times and costs, and reduced end product. Therefore, offshore inhumed grapevines must be constructed as rapidly and expeditiously as possible, whilst keeping the highest degree of certainty against failure for the continuance of their usage. To accomplish high flow rates in grapevines, the gas or oil must be kept at high temperature and force per unit area. Normally, these grapevines are laid with close zero axial tonss, at the ambient temperature. On warming, the grapevine will see important axial strain, which is resisted by seabed clash so that compressive forces addition in the pipe. These compressive forces are on occasion big plenty to bring on perpendicular upheaval ( upheaval buckling ) of trenched lines, with the pipe emerging from the dirt or going significantly distorted, so that its ability to defy farther burden is compromised. Upheaval clasping may go on on start-up or as a progressive turbulence clasping during operation. These phenomena are due to cyclic conditions brought approximately by chilling and heating due to line breaks, which bit by bit ‘ratchet ‘ the pipe upwards, or from initial ballad imperfectness ( or a combination of the two ) . The dirt above the grapevine and the floaty weigh t provide opposition to this uplift force and the embedment deepness must be sufficient to forestall the perpendicular pipe motion from happening ( see Figure 1 ) . Among legion reported instances of upheaval buckling, the 17 kilometer long â€Å" Rolf A † to â€Å" Gorm E † grapevine in North Sea could be mentioned which has been reported ab initio in July 1986 one-year study and subsequently in September 1986 as a comprehensive out of straightness study ( M.F. Bransby et a l. ) . Impinging and burial is typically achieved by specialized H2O jetting, plowing and cutting equipment. Knowledge of the in situ mechanical belongingss ( before and following impinging operation ) of these dirts is highly of import for the design of inhumed grapevine systems ; burial techniques can bring forth considerable perturbation to the construction of seabed deposits, taking to alterations in their behavior. Perturbation of the ocean floor in the locality of the trench depends on the dirt type and province, and the manner of operation of the trencher. Ploughed soft and stiff clay backfill is lumpy in nature with big balls of integral clay, making the heterogenous construction supplying a macro construction. Stiff clay is believed to be hydraulicly fractured and really soft or silty clay is liquefied. The exact behaviour between these two extremes is non clear yet. Homogeneity of the subsequent backfill will besides be a map of clip to commissioning of the grapevine ( Cathie et al.2005 â€Å" Frontiers in Offshore Geotechnics: ISFOG 2005 – Gourvenec & A ; Cassidy ( explosive detection systems ) A © 2005 Taylor & A ; Francis Group, London, ISBN 0 415 39063 Ten † ) . The surfaces of the clay balls will be remoulded and soften due to exposure to free H2O during plowing. The nothingnesss between the balls will be filled with H2O, slurry and sand fractions if present. This double porousness stuff will consolidate much faster than a homogenous stuff consisting of purely integral stuff and a suited theoretical account for carry oning analysis of the consolidation procedure is that proposed by Yang and Tan ( 2005 ) and Wilson et al.1982. ( Yang, L.-A. , Tang. S.-A. & A ; Leung, C.-F. ( 2002 ) . Geotechnicque 52, No. 10, 713-725 ) ( R.K. Wilson and E.C. Aifantis, On the theory of consolidation with dual porousness – II, Int J Eng Sci 20 ( 1982 ) , pp. 1009-10035. ) Of peculiar concern to industry are trenches that have been H2O jetted in soft powdered silt and clay dirts, due to the potency for important alterations in construction and the associated uncertainness of the trench backfill belongingss around the grapevine. A remotely operated tracked ‘trencher ‘ is driven over the ocean floor. The trencher has a series of noses mounted in frontward confronting jet-legs, which penetrate the ocean floor below. Water is pumped out of these jets at high force per unit area to destruct the construction of the clay, so the grapevine will drop into it. During jetting, the construction of the seabed dirt is likely to be broken down and may liquefy wholly, particularly where the initial undrained shear strength is less than 10 kPa or where there is a important per centum of silt. Hence undrained analyses are more appropriate in this instance. It is besides possible that some integral balls of clay could stay ( although these may be capable to some remoulding ) and these can increase the strength of the ensuing backfill. Determining the grade of liquefaction or hydraulic break and the conditions under which these phenomena occur is an country of ongoing research. In peculiar, the province of the backfill and strength addition will lend well as to whether drained or undrained conditions occur during upheaval clasping events due to the different drainage features of slurried and ‘lumpy ‘ backfill ( ref ***is it Cathie et al. , 2005? ) . Likewise, the resulting clip dependant backfill behaviour following jetting will be different ; both soil provinces will consolidate and derive strength bit by bit, but this will happen much faster in the ‘lumpy ‘ backfill ( ref *** is it Cathie et al. , 2005? ) . This is peculiarly important in dirts with a high per centum of clay where the consolidation procedure can take many months, particularly after full liquefaction. Due to recent involvement in the country of upheaval buckling, a figure of analytical and numerical theoretical accounts have been developed to foretell the perpendicular opposition to shriek motion provided by the dirt and grapevine system. These theoretical accounts incorporate assorted false failure mechanisms for the behavior of the soil-pipeline system during upwards gesture through the trench backfill. The theoretical accounts are preponderantly flat strain ( 2D ) representations that assume dirt distortion and failure surfaces that either extend to the seabed surface ( shallow ) or are to the full contained within the backfill stuff ( deep ) . The uplift capacity of the soil-pipeline system will depend on the geometry of this deforming system, the mobilised shear strengths and organic structure weights, the comparative rate of burden and the potency for withdrawal of the dirt to happen behind the pipe during upheaval.Scope of the thesisDespite the aforesaid organic structure o f research bing in the literature, much confusion still exists as to the appropriate design parametric quantities and failure mechanisms involved for different instances. Existing design attacks assumes that deep failure does non happen for the trench deepnesss and grapevine geometries that are found in the field, nevertheless jumping malleability solutions based on the upheaval of strip ground tackles suggest that this may non needfully be the instance ( Merifield et al, 2001 ) .This research presents both numerical finite component survey and experimental survey that examines the opposition of slurried clayey dirts against upheaval buckling of inhumed grapevines. It has been conducted to measure the current state-of-the-art, to supply counsel for the design of inhumed grapevines for backfill dirts in this province and to clear up some of the facets of uncertainness in this subject.

Outline the Key Principles of Natural Law

Jamshed Masjedi Outline the key principles of Natural Law Let’s start off with a definition of Natural Law: a moral code existing with a purpose of nature, created by God. Aristotle theory of purpose inspired St Thomas Aquinas to develop his idea of Natural Law to present a rational basis for Christian morality. Aquinas developed an absolute and deontological theory which states that certain acts are innately right or wrong. Natural Law directs people to their great purpose, and can be deduced through reason.Good acts are those which enable humans to fulfil their purpose, and are in unity with the primary precepts. Through Aristotle’s idea that everything has a purpose (theory of causality) and we have a purpose to do good and avoid evil and seek happiness and fulfilment in life (eudaimonia), Aquinas started by trying to work out what the purpose of human life was. Aquinas developed the primary precepts which follow from this idea. The Primary precepts are connected wit h preservation of life, reproduction, education, living in a society and worshipping God.These Primary precepts can then be developed into secondary precepts as practical human rules that govern our daily behaviour. For example from preservation of life, one could argue someone who is in desperate need of organs or bloods would be correct. This could lead to a secondary precept of you donating your organ(s) to saves lives of other. Another example is about reproduction linking it genetic engineering with Natural Law suggesting that humans have an essential nature and manipulating it, through genetic engineering, is conflicting to the natural order of things and so is wrong.Aquinas developed four kinds of law: eternal, natural, human, and divine. Eternal law is humans being not being able to know gods intention. Natural law is humans with a natural sense and the discovery of reason. Human law is some sort of man-made law with the natural law supplied by the government to the societie s, and divine law is the specially revealed law in the scriptures. The main aspect of Natural Law theory is that it relies heavily on reason. It can be discovered by anyone, regardless of any religious alignment.For this reason it is universal and not a relativist argument but an absolutist argument. Reason is used in order to establish how we should live our lives. We use our reason to fulfil the requirements of the primary precepts and therefore to achieve our aim of doing good and avoiding evil. If everything is created for a purpose, human reasoning in examining that purpose is able to judge how to act in order to conform to that purpose. Thus, the role of reason plays a huge part as Aquinas states â€Å"To disparage the dictate of reason is equivalent to condemning the command of God. Hence, humans shouldn't be trapped by their desires and that the duty of a Christian is alike to the duty of an atheist or agnostic. Reason is the superlative human asset that ultimately separate s us from animals. However, if human reasoning is misguided it could lead us to the wrong moral choices such as following ‘apparent goods’ which could leads away from Natural Law rather following ‘real goods. ’ An example of an ‘apparent good’ is getting drunk or taking drugs as it seems like we are doing a good thing in the short term however, on the long term, it’s not.Or as a rather deeper example, perhaps we can consider that Hitler with his misguided belief about Jews, seeking an apparent good to remove them, in the end, it wasn't such a wise move. Jamshed Masjedi For Aquinas, both the intention and the act are important. According to Aquinas, God knows the secrets of our hearts and thus, our actions must be interior rather than exterior. The purpose behind an act gets recorded. For example we should help an elderly person cross the road because it is the honest thing to do not because to gain admiration of others i. . someone watch ing nearby. It is said that if humans act towards this way, it’s said that god is glorified. Is this theory relevant to the 21st century? Many theories have been created 10 years ago, 100 years ago or 1000 years ago that still shape and dictate our society today, since it’s the 21st century, many theories have been developed and improved, but as far as questioning the theory of natural law and it’s standing, it’s a theory holding major significance around the world today.For example the Roman Catholic Church supports the theory with them making the primary precepts into absolute rule thus, meaning no room for negotiation. Natural Law has many benefits to society and for individuals. Since it’s an absolutist argument, it provides moral foundation to rules with clear guidance at all times. Most individuals are in favour of Natural Law because it offers a universal code. Most people believe in preserving life, education etc. On the Flip side, Natural Law theory cannot seem to get at certain individuals.It relies to use reason correctly, however, it is fair to say that we do not all have the same ability to reason. If we do, everyone can come up with the same conclusions and decide what’s right and wrong. The precepts are to be looked when one finds them in a situation, but this also is disputed. Homosexuality is a common example of something that Natural moral Law is unable to provide a succinct response to. Furthermore, in modern forms Natural Law does not allow room for negotiation because the Roman Catholic Church has made the secondary precepts into absolute rules.The book of Genesis seems befuddling with Natural Law. It’s inconsistent with the story of the Fall. Genesis 3 teaches that that human reason was separated from God Through sin. Thus, if our reason is corrupt then how can we deduce God’s purpose? Society can never guarantee people’s safety but with the theory of Natural law, it’s open in arms for offering protection, therefore will always be relevant. Furthermore, natural law is a good guide for the believers in God. Natural law will provide an instructive and dependable guide to moral behaviour.The Roman Catholics Church is in favour of Aquinas’s brilliant knowledge of reasoning in the Natural law. What's more, Aquinas himself was a Catholic and so, some might question from whom is it relevant to? It can hardly be claimed that Natural Law ethics is irrelevant to Roman Catholics. Linking to situation ethics, Natural Law would be helpful when making a logical decision depending on the situation a person’s in and with its deontological and absolutist status, it would also create guidelines to follow for all especially for individuals or societies wanting the absolute right and wrong.Due to the adaptation in the 21st century, the Natural Law theory is always going to be controversial. I think the most usual criticism for during our time is that it may be too inflexible over major issues. There is no direct reference to issues, for example like abortion or euthanasia. Others might argue that the theory is too old and other types or similar systems of ethics are better that the Natural Law theory. For example, if Aquinas could have been wrong about the primary precepts, he could have also been wrong about the secondary precepts.Finally, I believe this could be the strongest negative assessment of Natural Law, is that this God-based ethic may no longer be relevant to, what is an increasingly secular society. On the whole, I believe that taking both arguments in on the balance, Natural Law has become not irrelevant, but less relevant, because the modern definition of human nature is much wider than that offered by Aquinas. Natural law is based purely on deductive, rational reasoning. This makes it an objective theory, it is not open to interpretation – should everyone reason correctly we should all come to the same conclu sions about what is right and what is wrong.We can see this in action around the world, with many societies sharing common beliefs about morality – this is strength of the theory since there is evidence of a common system of morality in place, although that is not to say the universal theory is natural law Natural Moral laws relies on our ability to reason correct, that is to use casuistry to deduce the correct action based on how it fits in with our precepts. However, it is fair to say that we do not all have the same ability to reason.Whilst Aquinas maintained that all humans were equal he did say that some were better at reasoning than others and therefore we should practice our logical skills so that they become habitual. This is fine to an extent, but if we were to encounter a totally alien situation we would have no prior experience to draw reference from, and so our ability to decide the right course of action would come down to our individual ability to reason correct ly In such a situation we should stick to the precepts; since they are logically sound, but even these can be ambiguous.Homosexuality is a classic example of something natural moral is not able to provide a succinct response to. On the one hand we can say since homosexuality doesn't lead to procreation, and so it is a misuse of humangenitalia, but on the other hand we can say that since it is pleasurable, that pleasure is there for a reason.

Student Stress

Today's students are faced with many challenges, many additional pressures, and numerous stresses. High school creates a variety of difficulties and challenges for teens but on average their main stresses are schoolwork, personal problems and time consuming Jobs. Teens find themselves under far too much pressure. Being a teenager Is typically thought of as a fun and free time In life, but It's turning Into a stressful period in a person's life. Most teens set a goal of doing well in school to achieve their dream job or Just better themselves.Many classes feel short and quick, teachers buzz through topics and units faster than most can comprehend. Still, the teachers and parents expect you to be able to achieve high marks on tests and assignments. The work load is enormous. Every class you are expected to do an hour or two of homework every night and finding the time is close to impossible. Most programs at university expect a high 80 percent average. For some it comes easy, others, a great challenge. Expectations from universities and parents can add more stress on to your already trustful school life.I personally feel as If school has gotten a lot harder since our parents attended. Since they had a grade 13, an extra year to prepare and learn. This means that everything taught within five years Is now squeezed Into four. Learning at a quicker pace is a lot more difficult than having an extra year. High school impacts a student's life for the rest of their educational path. Along with many hours at school, most students have a part time Job to attend right after school. Work conflicts with school and the work load.I personally have a art time Job and after working 5-6 hours after school, homework is the last thing on my mind. Many teens get jobs to gain independence from their parents and stand on their own financially. However there is also the reality of funding post-secondary education. University tuitions are expensive and have been rising throughout the ye ars. Some the dream of university is all based around grades but the finances too. Saving up and working hard at school Is extremely stressful and hard to find a balance between school, work and a social life.Students need time to relax and moieties that's hard to find. I get extremely stressed whenever I have work and even the smallest amount of homework, so I can only imagine how it is for grade twelve working all the time with huge amounts of homework. Working as a teenager is stressful and adding homework on top of that can be unbelievable. Personal problems are a reality for almost everyone. But for teenagers it's harder to handle due to social media, bullying and parents. Social media has been a huge toll on many of my friends.The drama that surrounds social media can be tolling on a student's incineration. Privacy is a thing of a past with almost every personal problem now being slew on social media sights. This has happened to everyone at some point in high school, either be ing bullied on or off social media. Even If it's not In school, family stresses can dramatically Impact your day or your attentiveness In and out of school. High school is stressful from the start, but the stress accumulates as the years go important that students be able to recognize this stress and deal with it before it becomes overwhelming.

Fast Food Nation Analysis Essay Essay

The non-fiction book â€Å"Fast Food Nation† by Eric Schlosser writes about how the fast food industry works from different viewpoints. Throughout the book it can be very disturbing and very real about the fast food industry. Changing American society and causing many great problems. The author established well credibility by providing well facts and supporting it. He talks about the success and failures of what happened in the fast food nation. Many failures happened in the past such as mistreating the cattle and poultry. The animals were mistreated because they were being fed dead animal and chemicals. The cattle would get injected by hormones to make them bigger so once they get slaughtered there would be a lot of meat. This book is different from the other books I’ve read in my past English classes because the author supports and backed his claims and facts with evidence. Workers at slaughter houses would use lack of health care to treat the meat which caused infectious diseases. From pg. 195 the author talks about the foodborne disease which is very common. Ã'”Every day in the United States, roughly 200,000 people are sickened by a foodborne disease, 900 are hospitalized, and fourteen die. I agreed from everything of what the author wrote. Fast food business owners are mostly greedy and do not care about the public’s health. Read Also:  Analytical Essay Example Topics Teenagers, uneducated adults, and undocumented people work for low wages. Meatpacking jobs is the most horrendous and dangerous jobs today. Fast food has shaped American society because it contributes obesity that many Americans face every day. Fast food companies spend a lot of money to sponsor their food and make people buy their food. For an example Mc Donald’s spend millions to bring consumers especially children. Toys and a Mc Donald’s TV show manipulated children to make their parents take them to eat at Mc Donald’s and get the toys that were sponsored. Now thankfully there is more awareness of the fast food problem. More people are spreading the word of being healthy mostly at schools. Encouraging students to exercise and eat healthy. Natural and organic foods are becoming more popular in the country. Even though the government haven’t really taken any steps to stop the mistreating of animals and of what goes in our food.

Banking Industry in Nigeria

Against the backdrop of the role of banks as financial intermediaries and their function as the engine of growth of the economy, this paper examines the extent to which the banking industry has helped to stimulate economic activities in Nigeria and what the prognosis looks like in the post-consolidation era.The paper notes that the banking industry in Nigeria witnessed a remarkable growth in terms of deposit base, number of branches, total asset and volume of loans and advances, especially since the de-regulation of the financial services sector in the last quarter of 1986. However, given the potentials of the market, banks need to do more, particularly in financing the real sector of the economy.It is argued that the consolidation programme is expected to have a positive effect on employment in the long-run, and that has drastically altered and redefined the nature of competition in the banking industry. Furthermore, it argues that mere size would no longer be a critical factor in t he customers’ choice of which bank to patronize. Rather, emphasis would shift to the ability to deliver superior value to customers. THE BANKING INDUSTRY AND THE NIGERIAN ECONOMY POST-CONSOLIDATION By DR. B.B. EBONG GROUP MANAGING DIRECTOR/CHIEF EXECUTIVE UNION BANK OF NIGERIA PLC 1. 0 INTRODUCTION Banks facilitate economic growth in a variety of ways. In the first instance, they act as financial intermediaries between the surplus generating units and the deficit spending ones. This is a two-fold function involving the mobilisation of savings from the former group which are then channelled to the latter to support productive economic activities. This intermediary role is important in two respects.First, by pooling together savings that would have otherwise been fragmented, banks are able to achieve economies of scale with potential benefits for the users of such funds. Secondly, in the absence of banks, each person or business seeking credit facility would have had to individ ually look for those with such funds and negotiate with them directly. This is a cumbersome and timeconsuming process of double coincidence of wants. By matching the preferences of savers with those of borrowers therefore, banks help in overcoming such difficulties.It is pertinent to note that it is from this intermediation function that banks normally not only earn the bulk of their income by way of interest margin but also pay out returns to savers, compensating them for the opportunity cost of their money. It is important to bear this point in mind because, as we shall see later, if any bank is unable to recover the funds it lends out, its own existence as a going concern would be undermined rapidly and ultimately. This is to the extent that its ability to meet the withdrawal needs of depositors would be impaired.It is for this reason that the officials of any bank cannot afford to toy with the management of its risk assets. Towards ensuring that the funds they lend out are recov ered, banks have found it expedient to provide business advisory services to their customers. The essence of availing their clients these services is to assure themselves that the beneficiaries adopt modern management policies and practices in running the affairs of their respective companies which benefit from borrowed funds. The ultimate goal is to guarantee that these customers are in a position o service their loan obligations as and when due. This, in turn, would enable banks meet their obligations to depositors while also earning a narrow margin to ensure business continuity and corporate growth. Banks also play a pivotal role in an economy by providing a mechanism for producers/buyers and consumers/sellers to settle transactions between themselves. They do this not only within a country but also across national boundaries through a highly efficient and technologically enabled payments systems.In the process, banks encourage specialisation and division of labour, a major advan tage of which is the enhanced production and economic growth of the country. Furthermore, banks act as a conduit for the transmission of monetary policy. They provide a veritable platform when it comes to the implementation of monetary, credit, foreign exchange, and other financial sector policies of the government. Among other things, monetary policy is designed to influence the cost and availability of loanable funds with a view to promoting non-inflationary growth.The instruments available to the Central Bank to achieve this include open market operations (OMO), the cash reserve ratio (CRR), liquidity ratio (LR) and of course, moral suasion. The capacity of the banking industry to perform these functions effectively is, to a large extent, determined by the financial health of the individual institutions themselves and soundness and viability of the industry as a whole. For instance, where the majority of banks are adjudged to be weak and unhealthy, that will impair the ability of the industry to lubricate economic growth and vice versa.Against this background, the objective of this presentation is to examine the extent to which the banking industry has helped to stimulate economic activities in Nigeria and what the prognosis looks like in the post-consolidation era, come January 2006. To achieve its objective, this paper is organised into five parts. Following this introduction, we review the performance of the Nigerian banking industry between 2000 and 2004 in section II. The challenges facing the banking industry, which the current reform programme was designed to address, are highlighted in section III.In section IV, we present the prognosis and outlook during the post-consolidation era while section V contains the concluding remarks. 2. 0 THE PERFORMANCE OF THE NIGERIAN BANKING INDUSTRY IN 1990 – 2004 PERIOD. The banking industry in Nigeria has witnessed a remarkable growth, especially since the de-regulation of the financial services sector in t he last quarter of 1986. In terms of headcount for instance, the number of banks increased by about 154. 8% from 42 in 1986 to 107 in 1990. It further increased by about 12% to120 in 1992.By 2004, however, the number had reduced to 89. This was because, some banks had to be liquidated on account of their dwindling fortunes. The number of bank branches also rose from 1,394 in 1986 to 2,013 in 1990, 2,391 in1992 and by 2004 in spite of the reduction in number of banks, it had reached 3,100. This translates to an inter-temporal increases of 44%, 18. 8% and 29. 7%, respectively. Given this scenario, the pertinent question agitating the critical mind is the extent to which the expansion in the number of banks and their branch network had impacted on the economy.Another way to evaluate the performance of banks is to carefully examine the credits they granted, both in terms of volume, distribution by sectors, and the maturity profile. The data on banks’ credit to the economy are sho wn in table 2 below. Table 2: Banks’ Credits to the Economy, 1990 – 2004 Year Aggregate banks’ credit (Net) (N billion) 42. 58 49. 41 59. 25 125. 75 162. 83 194. 05 266. 44 Growth rate (%) Net Domestic Credit Target (%) 13. 5 10. 6 13. 2 17. 5 9. 4 11. 3 12. 0 Actual (%) 17. 1 45. 3 69. 1 91. 4 29. 2 7. -23. 4 1990 1991 1992 1993 1994 1995 1996 16 19. 9 112. 2 29. 5 19. 2 37. 3 1997 1998 1999 2000 2001 2002 2003 2004 302. 31 378. 08 608. 44 807. 01 1,033. 64 1,302. 2 1,591. 2 2,078. 1 13. 5 25. 1 60. 1 32. 6 28. 1 26. 0 22. 2 30. 6 24. 8 24. 5 18. 3 27. 8 15. 8 57. 9 25. 7 24. 5 -2. 8 46. 8 30. 0 -25. 3 79. 9 64. 6 29. 1 12. 0 Source: Central Bank of Nigeria, Annual Report and Statement of Accounts, (various years) As the figures show, the rate of growth of aggregate bank credit (net) to the domestic economy ranged from 13. % in 1997 to 112. 2% in 1993. However, according to the Central Bank of Nigeria, in its 2004 Annual Report and Statement of Accounts, an ana lysis of the sectoral allocation of these credits revealed that the less productive sectors of the economy continued to be favoured. For instance, in 2003, those sectors comprising agriculture, solid minerals and manufacturing got only 40. 2% of the credits. The situation worsened in 2004 as this figure further declined to 37. 0%.The corollary of this is that, on average, it was more attractive for banks to lend to such sectors as distributive trade, especially import financing, because the risks associated with such lending were relatively lower. The turn around time was equally shorter. Furthermore, as shown in the last column of table 2, actual domestic credit (net) consistently deviated from target for most of the years for which data was shown. If we take the targets to be representative of societal preference, what this means is that the flow of credit for each of those years was far from what was socially desirable.The quality of these risk assets has worsened progressively s ince 2002 as the statistics in table 3 demonstrate graphically. Table 3: Asset Quality of Nigerian Banks, 1990 – 2004 Year Ratio of non-Performing Credit to total Credit (%) Ratio of non-Performing Credit to Shareholders’ Funds (%) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 44. 10 39. 00 45. 00 41. 00 43. 00 32. 90 33. 90 25. 81 19. 35 21. 5 16. 9 21. 3 21. 6 23. 08 344. 00 222. 00 299. 00 380. 86 567. 70 496. 00 419. 80 253. 09 89. 20 92. 2 77. 1 85. 9 89. 105. 3 Source: Nigeria Deposit Insurance Corporation, Annual Report & Statement of Accounts, Various Issues The data in table 3 reveal that the ratio of non-performing credit to total credit declined from 45% in 1992 to 23. 08% in 2004. This means that of every N100. 00 lent out during these years, banks lost an average of N30. 60. These losses contributed in no small way to the erosion of shareholders’ funds as shown in the table. These bad accounts represented 567. 7%, 419. 8 % and 105. 3% of shareholders’ funds in 1994, 1996 and 2004, respectively.In deed, in the years 1990 to 1997, the shareholders’ funds had been impaired by non-performing risk assets in several multiples. The factors responsible for the poor quality of risk assets range from inadequate appraisal of credit proposals, unfavourable environmental factors that adversely affected the cash flow of the clients’ businesses to sheer unwillingness to repay credit facilities on the part of borrowers and the corresponding ineffectiveness of the rule of law to catch up with pathological loan defaulted some of whom moved round and ravaged one bank after the other.The deterioration in the quality of banks’ risk assets took its toll on the health of the industry as the outcome of the rating of all licensed banks by the Central Bank of Nigeria using the CAMEL parameters has shown. The result of that exercise, which is reproduced in table 4 below, has shown glaringly that th e performance of banks in the country has deteriorated since 2001. Table 4: Rating of Banks Using the CAMEL Parameters, 2001 – 2004 2001 No. of % of Banks Total Sound 10 11. 1 Satisfactory 63 70. Marginal 8 8. 9 Unsound 9 10. 0 Total 90 100. 0 Category 2002 No. of Banks 13 54 13 10 90 2003 No. of Banks 11 53 14 9 87 2004 No. of % of Banks Total 10 11. 5 51 58. 6 16 18. 4 10 11. 5 87 100. 0 % of Total 14. 4 60. 1 14. 4 11. 1 100. 0 % of Total 12. 6 60. 9 16. 1 10. 4 100. 0 Source: Central Bank of Nigeria, Annual Report and Statement of Accounts, 2004 From the table above, it can be seen that the banks adjudged to be sound was consistently less than 15% of the total number for the four-year period.In addition, those whose performance was considered satisfactory represented as high as 70% of the total in 2001. By 2004, however, this group represented only 58. 6% of the total number of banks covered by the exercise. Apart from poor quality assets, other factors responsible for th is state of affairs include under-capitalisation, weak corporate governance practices, and the challenges of ethics and professionalism. It is these factors that the on-going reform agenda seeks to address with a view to totally overhauling the system.These issues are examined in more details in the next section. 3. 0 CHALLENGES FACING THE BANKING INDUSTRY IN NIGERIA The current banking sector reform in Nigeria was designed to promote the viability, soundness and stability of the system to enable it adequately meet the aspirations of the economy in terms of accelerated economic growth and development. The reform agenda was motivated by the need to proactively put the Nigerian banking industry on the path of global competitiveness to enable it effectively respond to the challenges of globalisation.The overall objective is to guarantee that the economy and Nigerians do not remain fringe players in the context of a globalizing world. The major challenges that the reform was targeted at include inter alia, the following: Weak capital base. Most banks in Nigeria had a capital base that was less than US$10 million while the largest bank in the country had a capital base of about US$240 million. This compared unfavourably with the situation in Malaysia where the smallest bank had a capital base of US$526 million.The small size of most local banks, coupled with their high overheads and operating expenses, has negative implications for the cost of intermediation. It also meant that they could not effectively participate in big-ticket deals, especially within framework of the single obligor limit. The challenge of ethics and professionalism. In a bid to survive the stiff competition in the market, a number of operators had resorted to unethical and unprofessional practices. Strictly speaking, some even went into some businesses that could not be classified as banking.In appreciation of the enormity of the problems caused by the failure to adhere to professional and ethi cal standards, the Bankers’ Committee set up a sub-committee on â€Å"ethics and professionalism† to handle complaints and disputes arising from unwholesome and sharp practices. Poor corporate governance practices. There were several instances where Board members and management staff failed to uphold and promote the basic pillars of sound corporate governance because they were preoccupied with the attainment of narrowly defined interests. The symptoms of this included high turn over in the Board and management staff, inaccurate reporting and on-compliance with regulatory requirements. Gross insider abuses. One area where this was pronounced was the credit function. As a result, there were several cases of huge non-performing insider-related credits. Insolvency. The magnitude of non-performing risk assets was such that it had eroded the shareholders’ funds of a number of banks. For instance, according to the 2004 NDIC Annual Report, the ratio of non-performing cr edit to shareholders’ funds deteriorated from 90% in 2003 to 105% in 2004. This meant that the shareholders’ funds had been completely wiped out industry-wide by the non-performing credit portfolio.Over-reliance on public sector deposits. These deposits accounted for over 20% of total deposits in the system. In some institutions, such public sector funds represented more than 50% of total deposits. This was not a healthy situation from the viewpoint of effective planning and plan implementation, given the volatile nature of these deposits. On account of the huge reliance on public sector funds, a number of players did not pay adequate attention to small savers who normally constitute a major source of stable funds which should be channelled to finance the real sectors.Instead, they concentrated on a few high networth individuals, government parastatals and blue chip companies. It was in response to this situation coupled with the need to accord the small and medium ent erprises sub-sector the priority it deserves that the Bankers’ Committee came up with the Small and Medium Enterprises Equity Investment Scheme (SMEEIS) with a view to redirecting credit flows to the sub-sector Distinguished Ladies and Gentlemen, the foregoing captures the situation in the banking industry at the time the reform agenda for the sector was conceptualised and introduced.One has taken time to highlight the challenges that the industry was grappling with to enable us better appreciate the rationale for the reform in terms of what it is intended to achieve. Even though the consolidation programme has thirteen basic elements, it is those relating to the minimum capital base for banks and mergers and acquisitions that have received the most attention in the ensuing public discourse on the subject. In the light of this, it might be useful to enumerate these elements, more so that they are at the centre of this discussion.These planks of the reform programme are: Incre ase in the minimum capital base of banks from N2 billion to N25 billion with December 31, 2005 as deadline for compliance; Consolidation of banks through mergers and acquisitions; Phased withdrawal of public sector funds from banks, beginning from July, 2004; Adoption of a risk-focused and rule-based regulatory framework for the industry; Adoption of zero tolerance in the regulatory framework particularly in the area of information rendition/reporting. All returns by any bank must now be signed by the Managing Director;The automation of the process for rendition of returns by banks and other financial institutions through the electronic Financial Analysis and Surveillance System (e-FASS); Establishment of a hotline and confidential internet address to enable Nigerians wishing to share confidential information with the Governor of the Central Bank of Nigeria to do so; Strict enforcement of the contingency planning framework for systemic banking distress; The establishment of an Asset s Management Company as an important element of distress resolution;Promotion of the enforcement of dormant laws, especially those relating to the issuance of dud cheques and the law relating to the vicarious liabilities of the Board members of banks in cases of bank failure; Revision and updating of relevant laws, and drafting of new ones relating to the effective operations of the banking system; Closer collaboration with the Economic and Financial Crimes Commission in the establishment of the Financial Intelligence Unit and the enforcement of the antimoney laundering and other economic crimes measures; andRehabilitation and effective management of the Mint to meet the security printing needs of Nigeria, including the banking system which constitutes over 90% of the Mint’s business. The likely impact of these measures on the banking industry and the economy are examined in the next section. 4. 0 ANTICIPATED IMPACT OF THE CONSOLIDATION PROGRAMME ON THE BANKING INDUSTRY AND T HE NIGERIAN ECONOMY In this section, we will attempt to paint a scenario regarding the probable impact of the consolidation programme on the banking industry and, hence, the economy.In doing so, it is important to reiterate that even though the reform agenda is targeted at the banking industry, its ultimate focus is the Nigerian economy. In view of this, and in order to put the discussion in proper perspective, we would like to begin this section with a brief review of the performance of the economy between 2000 and 2004 which data are presented in table 5 hereunder: Table 5: Nigeria, Selected Macroeconomic Indicators, 2000 – 2004 Indicator Real GDP Growth Rate (%) Oil Sector Non-Oil Sector Manufacturing Capacity Utilisation (%) Gross National Savings (% of GDP) Gross Fixed CapitalFormation (% of GDP) Inflation Rate (%) External Reserves (US $ million) 2000 5. 4 2001 4. 6 2002 3. 5 2003 10. 2 2004 6. 1 11. 3 2. 9 5. 2 4. 3 -5. 7 7. 9 23. 9 4. 5 3. 3 7. 5 36. 1 39. 6 44. 3 45. 6 45. 0 NA 11. 3 15. 6 13. 6 15. 3 7. 3 7. 2 9. 1 12. 0 16. 2 6. 9 9,910. 4 18. 9 10,415. 6 12. 9 7,681. 1 14. 0 7,467. 8 15. 0 16,955. 0 Source: Central Bank of Nigeria, Annual Report and Statement of Accounts, 2004 The data in table 5 reveal that, in real terms, the rate of growth of domestic output ranged from 3. 5% to 10. 2% between year 2000 and 2004. The average annual growth rate for the period was 5. 6%, which falls far short of the 10% minimum that is required for the country to meet the targets set in the Millennium Development Goals (MDG). Furthermore, the service sector and wholesale & retail trade still account for a disproportionate share of total output, considering our stage of economic development. On the other hand, the real productive sectors like agriculture and manufacturing are yet to assume their pride of place in the economy. As can be seen from the statistics, capacity utilisation in the manufacturing sector was consistently below 50% throughout the five ye ars.Among other things, this is a reflection of the undue competition that local manufacturers have had to face from their relatively more mature and efficient overseas counterparts. These are not healthy developments from the viewpoint of a developing country that is desirous of achieving sustained economic growth. Given the low level of domestic output, coupled with the rising demand, it is not surprising that the authorities were not able to keep the inflation rate below double digit as intended.It is this parlous state of the economy that the banking sector reform was designed to address at the end of the day. The expectation is that the reform programme will impact positively on the banking industry and thus put the economy on the path of sustainable growth. While most analysts have expressed serious concerns regarding the adverse impact of the consolidation programme on the level of employment, the authorities at the Central Bank of Nigeria have allayed such fears.While acknow ledging that employment opportunities in the industry would shrink, at least in the short run, the management of the Bank is optimistic that the long-term positive effects of the reform programme on the labour market will be more far- reaching. The thrust of the argument is that at the end of the day, the consolidation programme will lead to a stronger and more robust banking industry that will adequately support the expansion of economic activities, especially in the real sectors of the economy. In this process of rejuvenating the economy, more job opportunities will be created.The consolidation programme will drastically alter and redefine the nature of competition in the banking industry. By significantly increasing the minimum capital base for banks, the policy has not only raised the barriers for new entrants, it has also reduced the number of banks in the system through the mergers and acquisitions. It will be recalled that hitherto, competition in the industry was essentially between those players that one may safely refer to as the â€Å"industry giants† on the one hand, and those popularly referred to as the new generation banks, on the other.Going forward, however, what we will witness is a battle for survival among the ensuing mega banks, all with extensive branch network. In the new dispensation, stability of individual institutions and, hence, safety of depositors’ funds is not likely to remain a major consideration in customers’ choice of which bank to patronise. Rather, emphasis will shift to the ability to deliver superior value to clients and stakeholders generally as well as the prices for bank products and services. As pointed out earlier, many banks in Nigeria had relied heavily on the public sector as a source of funds.Consequently, they did not aggressively explore available potentials in other market segments. This situation will, however, change with the withdrawal of public sector funds from the vaults of banks as part of the policy shift. We therefore expect that banks will focus more on those sectors that were hitherto underserved like the real, informal sectors, including the consumer market. They need to devise creative ways of effectively tapping into the opportunities in these market segments, both in terms of deposit mobilisation and the provision of credit facilities.Going forward therefore, banks are more likely to provide better support for sustained economic growth in Nigeria. The pressure to aggressively explore those market segments that were hitherto underserved will be reinforced by the desire on the part of the management of each bank to continue to generate attractive returns to shareholders. Currently, the average return on invested capital (ROIC) in the Nigerian banking industry is estimated at 38%. With the substantial increase in shareholders’ funds, however, each bank will need to generate a minimum of N9. billion in profit before tax in order to maintain the same rate of return. This is a daunting challenge that calls for creativity. To meet the challenge, banks will need to radically redefine their business models and strategies. The status of corporate governance in the banking industry is expected to improve remarkably following the change in ownership structure. This is because, even though poor governance practices cut across the industry, they were more pronounced in the privately owned institutions.Given the dilution of ownership in the new dispensation, the situation where individuals and their cronies had overbearing influence in the running and management of banks will become a thing of the past. Moreover, as public companies, each bank will now be subjected to a higher standard of governance in terms of information disclosure. 5. 0 SUMMARY AND CONCLUSION In this paper, we have examined the probable impact of the on-going banking sector reform on the Nigerian economy.In the process, we drew attention to the challenges facing opera tors in the banking industry that need to be addressed for the industry to make desired contributions to the orderly growth of the economy. These challenges encompass those of unethical and unprofessional behaviour, poor corporate governance practices, weak capital base, and over-dependence on public sector deposits. From the analysis, it is clear that the consolidation programme will impact positively on the economy for a number of reasons.First, the development is expected to have long-term beneficial effects on the level of employment considering that it will facilitate enhanced production in diverse sectors of the economy. The reform programme will also redefine the nature of competition in the banking industry such that each institution will have no choice but to assign priority to its capacity to deliver superior value to its clients, since this is what will ultimately make the difference between losers and winners. By denying anks access to public sector deposits, the reform will make it imperative for them to shift focus to those market segments that were largely unbanked and untapped hitherto. Furthermore, it is envisaged that the consolidation programme will have salutary effects on corporate governance practices in the industry. In concluding this discussion, it is important to reiterate that the realisation of these outcomes would depend on the effective implementation of the programme. In particular, it would depend on how the banks that have embraced mergers and acquisition handle the post integration challenges that will face them.Where these issues are nor properly handled, the anticipated synergy may become elusive.BIBLIOGRAPHY Central Bank of Nigeria, Annual Report and Statement of Accounts, (various issues. ) Nigeria Deposit Insurance Corporation, Annual Report and Accounts, (various issued) Statement of Mckinnon, R. I. (1973), Money and Capital in Economic Development Washington, D. C. : The Brookings Institution. Oboh, G. A. T. (2005), Sel ected Essays On Contemporary Issues In The Nigerian Banking System. Ibadan: University Press Plc.