Fire Protection Engineering in the 21st Century Essay Example for Free

Fire Protection Engineering in the 21st Century Essay Abstract Fire protection engineering is the application of scientific and engineering principles to protect people, their property, and their environment from the destructive effects of fire. Fire protection engineers are involved in almost all aspects of fire safety and fire prevention. Among their function is the design, review and recommendation of fire prevention systems, which has two classifications: active and passive. Active fire protection systems react to conditions created by fire, such as increase in temperature or smoke, and act to extinguish the flame. Passive fire protection systems are incorporated in the structural design of the building to prevent spread of fire or smoke, and to prevent structural collapse. Fire protection engineers also adhere to building and fire safety codes. They also participate in the development of these codes, as well as review and enforce them. Fire protection engineers also predict fire behavior by simulating fire conditions through modeling. By this process, certain characteristics of the fire can be predicted. Models may simulate the development of a fire inside an enclosure, look at activation times of output systems such as thermal and smoke detectors, simulate egress situations, or measure the ability of a building to withstand fire. Risk assessments are also done by fire protection engineers and involve hazard analysis, consequence analysis and likelihood analysis. Fire investigation nowadays also involves fire protection engineers that can construct the scene before and during the fire. Fire Engineering 5 I. Introduction Fire protection engineering, the application of scientific and engineering principles to protect people, their property and their environment from fires, is used interchangeably with fire engineering and fire safety engineering. Although this paper uses â€Å"fire protection engineering† to simplify terminologies, it should also be understood that it likewise refers to the two latter terms, except in instances wherein there is a need for differentiation. Several centuries ago, the primary aim of fire protection engineering is to prevent fires, which in those days, has the possibility to devastate entire cities (Hurley 2006). In the 1900’s, the objective of fire protection engineering is to contain a fire in its building of origin. As technology advances, this objective has evolved to containing the fire in the room or object of origin. Towards the end of the twentieth century however, fire protection engineering has evolved to become a professional discipline having its own set of principles (Lucht 1989 cited in Hurley 2006). II. Professional Definition of Fire Protection Engineering Fire protection engineering is the employment of science and technology to protect people and their environment from destructive fires. Some of these principles include design of fire protection systems, analysis of fire hazards, carrying out of risk assessment, fire modeling and post-fire investigation and analysis. Fire protection engineers also review fire protection systems, participate in third-party review of fire protection designs, as well as participate in development of codes that would protect life and property from fire. Furthermore, they may also be called upon to interpret and enforce existing building and fire codes (Koffel 2003). During the design phase of a building, fire protection engineers may work with architects and other engineers to ensure a fire-safe structure. They make Fire Engineering 6 recommendations for cost-effective fire protection solutions to guarantee that the building and its occupants are adequately protected (Society of Fire Protection Engineers 2008). According to a roundtable discussion by fire protection engineers from all over the globe regarding the international practice of fire protection engineering, such a description is true of fire protection engineers in the United States wherein fire protection engineering and fire safety engineering is taken to be the same. According to Koffel (2003), who facilitated the discussion, such a broad definition is differentiated in Australia where fire protection engineers and fire safety engineers offer distinct services. Fire protection engineers are those that design active fire protection systems such as sprinklers, and fire detection and alarm systems according to the appropriate standards. This task is usually done by mechanical engineers who have specialized in active fire protection systems. The design of passive fire protection systems, which are usually incorporated as part of the structural design of a building, is specified by structural engineers and architects. Fire safety engineers, on the other hand, are those that develop fire safety strategies for a building or facility. The same is true in the United Kingdom where â€Å"fire protection engineering† is not a common term. That term is also generally used for those who design and install active fire protection systems. Fire safety engineers are those that assist in the design of buildings and structures in order to meet the life safety requirements of the law. Such requirements in the design include means of escape, structural fire resistance, internal and external fire spread, fire spread through cavities and internal openings, and access and facilities for fire service. Let it be reiterated, however, that for the rest of the paper, fire protection engineering refers to the broad description used in the United States. By training, education and experience, a fire protection engineer is expected to be familiar with the nature and characteristics of fire, analyze how fire starts, how it grows and Fire Engineering 7 affect people, buildings and property, and how it can be detected, controlled and extinguished (Hurley 2006; Society of Fire Protection Engineers 2008). Furthermore, they should be able to anticipate the behavior of buildings, structure and apparatus so as to better prevent life and property from fire. III. Fire Protection Systems In the event of a fire in a building, the protection of the occupants as well as of property is accomplished by a combination of active and passive means. Active fire protection systems are only used when fire is already present. Such systems are usually activated by a combination of sensors or mechanical means (Evans et al. 2005). A sprinkler system, a smoke alarm and a fire defence are just a few examples of active fire protection systems. Passive fire protection systems, on the other hand, insulate a structure by increasing its fire resistance. These systems become an integral part of the building layout and construction materials, and include (but not limited to) compartmentation and fire barriers, stairways for rapid evacuation, and spray-on fire proofing. Both systems are complimentary, not competitive (Cafco International 2007). The law recognises them as being able to (and should) work together to ensure safety in the event of fire. A. Active Fire Protection Systems The most common active fire protection systems used inside buildings are fire alarm systems, smoke control systems, water sprinklers, and portable fire extinguishers and hose reels. Each of these will be discussed in detail in the succeeding discussion. A. 1 Fire Detection and Alarm Systems The purpose fire alarm systems is to detect fires, alert the occupants, send for emergency rescue, and provide information that will facilitate emergency response (Evans et al. 2005). These systems have several main functions depending on the fire scenario, the type Fire Engineering 8 of building, the number of occupants and criticality of content and mission (Artim 2007). First, they provide a means to recognize a developing fire, either by manual or automatic means. Second, they notify building occupants to the fire condition and the necessity of evacuation. Third, they may also transmit signal to emergency responders such as the fire station to alert them of the building’s condition. They may also be used to shut down electrical and air handling equipment, and may be used to set off automatic suppression systems. The control panel is considered the fundamental component of any fire detection and alarm system. Its function is to monitor the â€Å"input† devices, such as the components that detect smoke and fire and then activates the alarm â€Å"outputs† such as horns, bells, warning lights, emergency telephone dialers, and building controls (Artim 2007). Although human beings are excellent fire detectors as they are normally equipped with senses that can detect smoke, heat, flame and odor, they can, in some cases, become an unreliable detection method. A person may not be present during the fire, may not raise an alarm effectively or may not be in perfect health to perceive fire signals. It is for these reasons that automatic fire detectors have been developed. There are many kinds of automatic fire detectors; the most commonly used are thermal detectors, smoke detectors and flame detectors.

Justify the methods and processes

Justify the methods and processes This chapter covers the research methodology and purpose of this chapter is to justify the methods and process which are examined while the research is carried out. It consists of process model, research approach, research design, research method, data collection etc. Data Collection Research Approach Research Design Literature Review Research Questions Formulation Research Undertaking Primary Secondary Inductive Deductive Explanatory Exploratory Descriptive Semi-Structured Open ended Interview Semi Structured Questionnaires Data Analysis Results/Conclusion Source: Authors Qualitative Approach The given figure outlines the research methodology which is being carried out during the research process. It shows how authors will continue their research process. The research undertaking is related to incorporation of CSR in two leading MNC, s in telecommunication sector. It will focus on three main areas of research named as describing CSR, integrating CSR and monitoring CSR. Several research questions will be prepared on the basis of knowledge and experience and the basic aim of these questions is to analyze the CSR activities in telecommunication sector. The literature review will be made by comparing different articles in the relevant field which will give a new insight. The research is presenting a framework for developing, collecting and analyzing the data. Different research strategies such as exploratory, descriptive and explanatory are used for research objectives and authors will go with descriptive research strategy which is connecting to inductive research approach fr om observations to theory. The data will collect on primary and secondary basis by semi structured open ended interview and questionnaires. The research design shows that the data will be analyzed and concluded through qualitative research approach. First, regarding the objectivity of the thesis the authors believe that the results may first be subjected to the personal judgment and may not be valid over a long period of time because industry is constantly changed over the time. These results may also not be applicable to other markets or other geographic regions except the Pakistani markets. As the authors have no specific knowledge about Pakistani market so they decided to carry the exploratory research. The research described in this thesis has been designed and carried out in context of master level education and rules, regulation, instruction and academic requirements set by the supervisor and the Karlstad University. The main objective of the research is to investigate the dimensions of the problems which are being analyzed in the previous chapter and to draw the valuable results from the research and to help the authors to build up a good understanding and to have a deep insight into the previous study. 2.1. Inductive and Deductive Research Approach: Inductive research approach works more specific to more general (Trochim, 2006). Sometimes it called bottom up approach. In this type of theory, researchers begin with observation, detect some patterns, formulate some hypothesis and finally end with developing a theory. While on the other hand, Deductive approach works in other way, it moves from broader generalization to more specifications. Informally it is called top-down approach. In this approach the researcher start with thinking up a theory about the topic and area of interest or area of research. Then researchers narrow down it and develop a hypothesis about particular topic which they want to test. After that they do the examination on the hypothesis. Finally and ultimately this leads to the confirmation of data, either it confirms the original theory or not Theory Hypothesis Pattern Observation INDUCTIVE DEDUCTIVE Observation Pattern Hypothesis Theory Source: Authors 2.2. Research approach used: In this study authors will use inductive approach as we start with the observation related to problem which is being analyzed in problem discussion session. Authors will use CSR dimensions which are describing, integrating and monitoring. In general, this study is not developing a model or any type of theory somewhat the theories are narrow down to tackle a specific problem. 2.2.1. Unit of Analysis: It is one of the most important ideas in the research project. Unit of analysis is a main entity that the researchers want to analyze in their study. It will be individual unit of analysis which will base on two leading organizations from telecommunication sectors of Pakistan and we will compare the results and variations between units. 2.3. Research Methods: In order to solve a problem, different researcher use systematic and orderly collected data for the purpose of getting information from them (Ghauri and Gronhaug, 2005). Yin (1994) and Zikmund (2000) proposed three different purposes of research labeled as exploratory, descriptive and explanatory. Exploratory studies are fantastic mean to find out what is happening, to ask for new imminent and to ask questions. Robson (1993) mentioned that in order to clarification and understanding the problem, exploratory studies are valuable mean. Descriptive studies describe inside the problem areas regarding to the literature and the purpose is to study the current events. It purpose is to find out the answers of what, who, how, when, where questions (Zikmund 2000). This theory usually correlates the previous knowledge and understanding the nature of research problems. Explanatory studies make the relationship between the variables. The purpose of this study is to emphasis on the events and problems in order to explain the relationship between the interrelated variables. 2.3.1 Quantitative Research: According to Cresswell (1998), the quantitative research can be defined as an inquiry into social and human problems based on testing a theory composed on the variable, measures with numbers and analyzed with statistical procedures, in order to determine whether the predictive generalization of the theory hold true. Above definition mentioned that this theory concern with the statistical data and the transformation of data into figures and graphs. The transformation of the data can be achieved by using SPSS software to get the result of correlation between two factors/variables. This type of research makes large number of units into small amount of information. 2.3.2 Qualitative Research: According to Cresswell (1998), the qualitative research can be defined as an inquiry process of understanding a social or human problem, based on building a complex, holistic picture, formed with words, reporting detailed views of the informants and conducting in natural setting Statistical tools are not used in such kind of research. It is difficult to draw conclusions from qualitative research because of it is more demonstrating than generalizing. It is in contrast as a large amount of information is collected from small number of units. This type of research mostly addresses the question Why and describes the phenomena. This type of research cannot and should not be transformed in the forms of numeric. The advantage of this research is flexibility. 2.3.3. Difference between Qualitative and Quantitative Research: Difference Qualitative Quantitative Underpinning Philosophy Empiricism: The only knowledge that human beings acquire is from sensory experiences (Bernard 1994: 2) Rationalism: That human beings achieve knowledge because of their capacity to reason (Bernard 1994:2) Approach to Inquiry Unstructured Structured Investigation Objective To define variation in an event, situation, issue, etc. To describe an extent of variation in an event situation, issue, etc. Variables Measurement Stressing on the description of variables Stressing on some structures of either measurement or classification of variables. Sample Size Limited Cases Emphasis on greater sample size. Focus of Inquiry Checks multiple problems but accumulate necessary information from fewer respondents. Narrows focus in expression of extent of inquiry, but accumulate necessary information from a greater number of respondents. Main Research Value Validity but does not state to be value-free. Value free in terms of Reliability and objectivity. Main Research Topic Investigate experiences, feelings, perceptions, expressions and meanings. Describes pervasiveness, occurrence, and extent nature of subjects, views and attitude; finds out regularities and prepares theories. Data Analysis Subjects answers, descriptions or study data to identification of themes and illustrates them. Subjects variables to frequency distributions, cross-tabulations or other statistical methods. Communication Organization more descriptive and narrative in nature. Organization more systematic in nature, drawing deductions and conclusions, and testing degree and potency of a relationship. Source: Ranjit K. (2005). 2.4. Researched Method used: The research study will base on two companies from telecommunication sectors that operate in Pakistan. Authors have employed qualitative research in order to analyze the incorporation of CSR because qualitative research aims is to deal with questions which are related to the developing and understanding of the meaning and experience dimensions of humans lives and social worlds. Qualitative research has its roots in social science and is concerned with the understanding and describing the world of human experiences such as their knowledge, attitudes, behaviors and beliefs, opinions, emotions etc (Mack, MacQueen, and Guest Namey). 2.5. Data Collection: The most important and essential part of the study is data collection. Williman (2001) explained that primary data and the secondary data are the main source of data collection. So it is very important for us even in the context of study to achieve its purpose, both and primary and secondary data have been used. 2.5.1. Primary Data: Primary data is information which is gathered first time in order to solve and justify the problem and to complete the study. In order to do primary research, the following prominent techniques have been used: Interviews Questionnaire Introspection The main objective of the primary data is that data collected is exclusively applicable to the particular study. While its main disadvantage is time consumption and less degree of control. 2.5.1a. Qualitative Interviews: Authors have been extensively used this approach in study. In qualitative interviews, discussion often made face to face. This type of interviews is unstructured which shows that interviewers follow the direction of interview takes. The interviewees are free to answer whatever he/she want to do. A positive result can be achieved by the proper training of the interviewers or on the experience and skills. Authors have done this job through email and telephonic interviews. 2.5.1a (i) Questionnaire: It is very effective when the researcher knows the requirement and procedures in order to measures the area of research. This process can be done either conducting by itself or doing it by electronically/post. 2.5.2. Secondary Data: Secondary data is a source of collecting data from literature review, articles, internet, papers and journals. Authors have used books, internet, research contribution, journals and have specific companies information.( Ghauri and Gronhaug 2005) explains the benefits of secondary data. It helps in following ways It helps to answer the research questions. It helps in problem formulation. It helps in selecting the suitable research method. Secondary data can be classified into internal and external data. The data which is provides by company is called internal data while the data which is gathered from literatures, articles, internet etc is known as external data. It is source outside the organization. 2.6. Data collection Method used: In this study, authors have employed qualitative research method. Authors have employed qualitative research in order to analyze the incorporation of CSR in leading telecommunication companies. Qualitative data is mainly including all the aspects of the research problem. External secondary data consisting of the books reviews of the library of university west and also related different articles on the cultural dimension. The other secondary data World Wide Web and Google was also used frequently. The secondary data was very helpful in order to formulate the questions. The internal secondary data is mainly consists of the websites of the organizations. The primary data consists of the interviews, telephonic information and electronic mail. 2.7. Research Criteria: In qualitative research, only a sample this is a subset of a population is chosen for any specified study and it impossible to get the data from everyone in a community in order to accumulate valid findings. The studys research purposes and the characters of the study population such as age, size and diversity decide which and how many people are being selected. In a nonprobability sampling, the researchers have more possibility of selecting some units to study than other units. The use of reliability and validity are common in quantitative research and but it can also be used in the qualitative research paradigm for assessing the findings. In quality analysis, it is certainly interpreting the results as for analyzing the data because it requires constructing codes and categories from the raw data. This means that the understanding aspect of this stage of the research process vary from this stage of quantitative research project where it can be treated for separate analysis and interpretation. 2.7.1. Credibility: In a qualitative study, it is not likely that the results would be the same in any case but the key points and findings should be moderately presented for the recognition of data. The questions force reflection on own interaction and influence with the system which is being searched. The researchers try to make best efforts for convincing the readers that the interpretation or explanation of the results is credible. The Thick Description (Geertz 1973) which arises from the practice of ethnographic research in anthropology and integrates how it is felt for doing research as well as what researchers observed. The objective of thick description is to make able the readers feel that he or she is actually present in the research setting, and possibly even as if he or she is making the research. (Maylor Blackmon) We have made interviewed through emails and telephonic conversation in our own language and later on translated into English. The answers show the results which moderately interpret the data. We believe that it will give positive impact on readers. 2.7.2. Transferability: The transferability of a working hypothesis to different situations depends upon other conditions between original situation and the situation to which it is transferred. The researchers are not able to specify the transferability of findings but they can provide only sufficient information that can be used by the readers to decide whether the findings are applicable to the new situation or not. In a qualitative research, it is considered in the generalization of findings that the results which have been investigated by the researchers have no relevance anywhere else. It is the readers choice what they perceive whether it is useful or not or some are not interested in replying of the results. We have found the results from the original situations. It will be decided by the readers what they think about the results or they are interested or not in replying whether they are applicable or not in the new situation. We believe that the results will provide a true picture of the prevailed situation. Dependability: Dependability shows the reliability, correctness, integrity and describes the availability performance of the findings. In a qualitative work, according to Lincoln and Guba (1985), since there can be no validity without reliability (and thus no credibility without dependability), a demonstration of the former is sufficient to establish the latter. It means dependability in the research process has a significant importance and it can vary over the time. The results show the reliability and correctness of our findings. Our findings are based on interviews and introspections. We have made best efforts make our results reliable and valid according to our research. 2.7.4. Conformability: According to Lincoln and Guba (1985), it is a degree to which the researchers can make an obvious neutrality of the research interpretations through a conformability audit. It is considered that each researcher will bring an exclusive perception to the study. The researchers can document the procedures for inspection and rechecking the data whether it is free from bias or not throughout the study. It mainly concerns that the research should not be influenced by personal and other people influences. Our research interprets the unbiased results. We have asked open questions and defined the answers accurately with good sense. Our research has not influenced any person or any organizations image. It gives a good impression about the research topic to the readers which will not be impacted by it.

Identifying the Enemy in a War Against Terrorism :: September 11 Terrorism Essays

Identifying the Enemy in a War Against Terrorism Abstract: In the good old days, it seemed like such an easy task to identify and give a face to who were your friends and foes at time of war, even at the risk of racial and cultural stereotyping. We are finding that it is very difficult to be at war with a concept like "international terrorism" because we also must give it a face. During World War II an article was published in the December 22, 1941 issue of Life magazine titled "A Handbook for Americans." A section of the handbook detailed ways that Americans could "tell a Jap from a Chinese." I found these stereotypes to be quite ridiculous – but the article underscores that there are some problems of mobilizing a society for war, whether it is against Japan in 1941 or against international terrorism in 2001. One problem that would seem the easiest to solve is: "How do you identify friend from foe?" Another problem is: "How not to lose friends and alienate bystanders who might get caught in the middle in the process of waging war on one's foes?" The nature of terrorism makes both tasks difficult. In a recent book on 21st century terrorism, Cindy Combs notes that terrorism is a synthesis of war and theatre: a dramatization of violence which is perpetrated on innocent victims and played before an audience in the hope of creating a mood of fear without apology or remorse for political purposes. Terrorism is therefore by its nature a clandestine activity carried out by actors operating in the shadows of societies. Who are the individuals and groups who practice this tactic? What would a profile look like of today's "typical" terrorist? We know that they are young - having in some cases been recruited in secondary schools. They are both men and women who have less formal education and family wealth than their counterparts in the 1960s. More importantly, in confronting them we know that they engage in dehumanizing their victims - victims do not have an individual face, nor are they parents or husbands or wives - they are simply the "enemy." Coupled with this tendency to engage in w hat one noted social psychologist calls "black and white thinking," today's terrorist commits to the abandonment of all restraints on the use of violence.

Delmar The Spy That Got Away Essay -- manhattan project, george coval,

INTRODUCTION This research paper is about the Soviet spy, George Koval, codename DELMAR who penetrated the Manhattan Project. The purpose of this research paper is to identify lessons learned based on George Koval’s activities with the Manhattan Project and not repeat the same Counterintelligence failures in the future. George Koval managed to elude capture and operate virtually unsuspected for the entire length of his espionage career against the U.S. and so little is known about him. Analysis of his activities should prove to be extremely valuable to the intelligence community. BACKGROUND On Christmas day in December 1913, in Sioux City, Iowa, George Koval was born to a family of Jewish immigrants from Belarus, then part of the Soviet Union. George Koval’s father, Abraham was a carpenter and his mother, Ethel Koval was a convert to Socialism. George Koval’s parents maintained correspondence with members of their extended family in the Soviet Union. In the 1920s, they got involved with an American society to help with the resettlement of Jews in the Soviet Union, a Communist organization. This organization was called Idishe Kolonizatzie in Sovetn Farband (IKOR). Since 1928, IKOR’s main focus had been Jewish resettlement in Birobidzhan, a city near the border of Manchuria that Stalin promoted as a secular Jewish homeland. Abraham Koval was the secretary of the Sioux City IKOR branch in the 1920s. The Koval family held strong Communist beliefs that were instilled in George Koval from an early age. While attending high school at Central High School, known locally as the castle on the hill in Sioux City, Iowa, George Koval joined the Young Communist League, and in August 1930 was its delegate to the Iowa co... ...ded over to the GRU (military intelligence) Museum the Gold Star medal and Hero of Russia certificate and document bestowed on Soviet intelligence officer George Koval". Kremlin.ru. President of Russia. Retrieved 2009-06-20. Srebrnik, Henry (2001). Gennady Estraikh; Mikhail Krutikov, â€Å"Yiddish and the Left Diaspora, Ethnicity and Dreams of Nationhood: North American Jewish Communists and the Soviet Birobidzhan Project† Oxford: Legenda Press. Walsh, Michael (May 2009). "George Koval: Atomic Spy Unmasked". Smithsonian. Nora Levin, 1988, vol. 1. â€Å"The Jews in the Soviet Union Since 1917†. Cited from George Koval FBI investigative file, in Andrey Shitov, Op. Cit. Vladimir Lota, Red Star, July 25, 2007 â€Å"His Name Was Delmar†. https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-publications/books-and-monographs/cias-analysis-of-the-soviet-union-1947-1991/

A computer system consists of hardware and software. :: Computer Science

A computer system consists of hardware and software. A computer system consists of hardware and software. Hardwareis the equipment, which makes up the computer system. Hardware consists of: - Input devices such as keyboard, mouse, joystick - The Central Processing Unit (CPU) - Output devices such as a printer, monitor, graph plotter - Backing storage devices such as disc drive, hard drive - Media such as discs, tapes, paper etc There is hardware that I used is:  · Mouse  · Keyboard  · Printer  · Monitor A tracker ball mouse ==================== A tracker ball mouse is an input device and similar to a mouse but the ball is set into a cup on the top of the unit. A finger or, on larger tracker balls the palm of the hand, is used to roll the ball in any direction. The ball controls the movement of the pointer on the screen. Buttons on the tracker ball work in the same way as mouse butons to activate processes on the screen. My alternative of using a mouse with a tracker ball would be a mouse without a tracker ball. Benefit: ======== * A tracker ball does not require a large flat surface. Drawbacks: ========== * Most people find them a bit fiddly * Not accurate * Not quiet ALTERNATIVE: Mouse without a tracker ball ========================================= The pointer on the monitor screen mirrors the movement of the mouse by the user's hand. Under the mouse is a ball, which rolls as the mouse is moved. This movement of he ball causes two shafts to rotate inside the mouse; one shaft records the movement in the north-south direction and the other shaft records the east-west movement. When the screen pointer is over a0n icon or menu selection, the mouse button can be clicked, double clicked or dragged to activate a process. Some mice have a small wheel as well as the buttons. The function of the wheel depends on the software being used on the computer; in a document, it can allow the user to scroll up and down; in a desktop publishing package, it might enable the user to zoom in and out of the page. Over a period of time, the performance of the mouse can deteriorate as the ball and shafts collect dust and dirt. Some modern mice use a light beam and detector to register movements instead off the mouse ball. Many mice now use infrared or wireless links to the computer, which removes the need to have a connecting cable. Benefit: ======== * It is easy and convenient to use * It is inexpensive * Most modern software includes an option to use it. * It selects a position on the screen more quickly than is possible

CASE STUDY ON FINANCIAL ENGINEERING THE ENRON FRAUD

At one clip Enron was one of the universe ‘s largest manufacturers of natural gas, oil, and electricity. A It besides appeared to be one of the most profitable companies, taking stockholders from $ 19.10 in 1999 to $ 90.80 by the terminal of 2000. A Enron ‘s top direction answered to a Board of Directors whose duty was to inquiry and dispute new partnerships, ventures, and determinations within the company. A On several occasions, Andrew Fastow, the company ‘s Chief Financial Officer approached the board of managers with new investing partnerships which the board approved with really small oppugning. A Some of these partnerships created a struggle of involvement due to the fact that Fastow was non merely pull offing the partnerships, but he was besides an investor in an outside entity that took portion in purchasing and selling assets with Enron. A Fastow was able to make and pull off several of these partnerships while still keeping his function as CFO of Enron. A This was due to the regulation set in topographic point by the Financial Accounting Standards Board ( FASB ) which states, â€Å" if an outside investor puts in 3 per centum or more of the capital in a partnership, the corporation, even if it provides the other 97 per centum, does non hold to declare the partnership as a subordinate. A Therefore, assets and debt in the partnership can be withheld from the corporation ‘s balance sheet. † A With this regulation and the many partnerships Fastow created, Enron did non hold to declare the assets and debts from these partnerships, hence concealing 100s of 1000000s of dollars in losingss and debt. A The board of managers nevertheless did non see Fastow ‘s interaction with the partnerships to be a serious job due to the fact that the fiscal addition potency to Enron was great. A In fact Enron had a 65 page codification of moralss that was given to all employees. Enron was a kid of the deregulated energy markets in the lat e eightiess. Before so, most public-service corporations were publically provided, and Enron realized it could turn a net income by selling and merchandising these public-service corporations. Sometime around 2000, Enron began merchandising through the cyberspace, a revolution in the industry. The job was that this scheme required a perpetually high portion monetary value. Thus, Enron ‘s scheme shifted from energy trading to portion monetary value as the company ‘s primary focal point. Most experts believe that it was around this clip that Enron began utilizing fiscal technology to maintain its portion monetary values high and keep a high net income on the books. To make this, Enron in kernel â€Å" leveraged itself through debt, which it used to turn its non-core sweeping energy operations and service concern by maintaining most of this debt from looking on the balance sheets with luxuriant fiscal technology. When the stock monetary value began to fall, though, these same off balance sheet entities ended up downgrading Enron ‘s recognition evaluation. Suddenly, Enron was in over its caput — it could non borrow money due to its low recognition evaluation, nor could it utilize its ain money to transact concern, because it did non really have any. In fact, Enron had kept such a monumental sum of debt off the books — plenty to restrain every plus Enron claimed and so some — that the company merely imploded under its ain weight.Enron: The Nigerian Barge DealEnron Corporation was an energy company based in Texas and created when InterNorth acquired Houston Natural Gas Company in 1985. Enron ‘s growing was fast, it was named America ‘s Most Advanced Company † for six back-to-back old ages and it shortly became the 7th largest company in the United States, until its bankruptcy was declared in 2001. Accounting fraud, money laundering and confederacy are some of the charges which Enron stood accused of in a series of dirts that eventually came to a caput in the largest bankruptcy in history. One of these dirts was named the Nigerian Barges instance ( [ Fleischer1, 2005 ] ) . Enron tried to sell an involvement in three power-generating flatboats in the seashore of Nigeria unsuccessfully. When Enron failed to sell it by December of 1999, Merrill Lynch, one of the universe ‘s taking fiscal direction and consultative companies, agreed to purchase that involvement. That dealing was closed at the terminal of December 1999, and hence Enron could book about 12 million dollars in net incomes that twelvemonth and meet gaining marks. But the dealing was a fraud ( [ Kirkendall, 2005 ] ) . The chief job with this trade was that Merrill Lynch acted merely as a temporal purchaser to assist Enron look more profitable than it truly was. Enron ‘s Chief Financial Officer Andrew Fastow promised verbally to Merrill Lynch that Enron would purchase back the flatboats at a determined net income within six months, or Enron would happen a 3rd company to make so. This fact turned the dealing to be a simple loan, and non a true sale, as Enron claimed. Enron ‘s nonsubjective with this dealing was non other than doing its fiscal statements look better so that it could better the income statement and so, for case, borrow money from Bankss and the populace at a lower involvement rate, or merely pay the executives in Enron indefensible fillips. The thought, announced in 1999, was that Enron would construct gas-fired power workss near Lagos. Estimated costs put the undertaking at about $ 500 million. Before the chief works was built, Enron would get down providing power from three 30-megawatt barge-mounted workss firing either oil or gas, harmonizing to a 1999 article in Global Power Report, mentioning an Enron spokesman. The flatboats were to get down operation every bit early as the autumn of 1999, though programs had non been finalized. The initial study was that Enron would get down building, likely in the first half of 2000, and finish the underta king in 22 months. For Nigerians, the undertaking was of import because, though Africa ‘s largest state is rich in energy resources, it faced relentless power crises and blackouts. By September, the cost estimation for the new power composite was up to $ 800 million. Enron was committed to financing it and to put ining an associated 175 mile-long, 24-inch diameter, offshore natural gas grapevine to provide the works. By February 2000, seemingly before any building, the trade was already confronting political jobs, harmonizing to Global Power Report. The contracts were called into inquiry by the World Bank, Nigeria ‘s national public-service corporation, the National Electric Power Authority and other Nigerian provinces. The World Bank reportedly said the trade should hold been competitively command and that the concluding contract was excessively favourable to Enron. Even before anything happened in the manner of providing energy, Enron was selling pieces of its trade to Merrill Lynch. That dealing and Merrill ‘s speedy sale of its involvement back to an Enron-related entity is at the bosom of the condemnable allegations. Industry deregulating besides caused new jobs for Enron which, for the first clip, needed to hold a strong competitory focal point. Enron knew that it could win in a deregulated environment merely if it were the lowest cost manufacturer or if it could separate its merchandise from the competition. The latter would look to be a frustrating end, when the merchandise is defined as a trade good like natural gas. Enron ‘s direction was fighting with how to explicate a scheme that would give clients what they wanted and develop a sustainable advantage in this new environment. They needed to happen a manner to â€Å" box † natural gas molecules, dependable bringing, and predictable monetary values such that it could specify a clear merchandise line and pass on the company ‘s alone accomplishments. Ques:1 What are the ethical issues involved in this instance? Ques: 2. What are the exposure profile for Enron ‘s clients with regard to natural gas monetary values? What are the exposure profiles for Enron? Ques: 3. What suggestions do you hold for Enron?Summary OF THE CASE:The Financial Engineering encompasses the design, analysis, and building of fiscal contracts to run into the demands of endeavors. † Thus we can state that Financial technology is the phenomenon which facilitates the process/ merchandise invention in the fiscal industries which will assist in heightening the stockholders ‘ wealth. The basic motivations in traveling for fiscal technology are as follows: Reducing liability on the balance sheet, or Reducing disbursal on income statement, or Increasing gross on income statement, or Increasing tax write-offs on revenue enhancement returns Companies normally go for fiscal technology to cut down their hazard liability and accretion of debt in the balance sheet. The range of fiscal technology includes the followers: Investing Banking Corporate Strategic Planning Hazard Management Primary and Derivatives Securities Evaluation Fiscal Information Systems Management Portfolio Management Security Trading The instance that we have chosen here will be explained from one facet out of the many countries covered under the range of fiscal technology that is â€Å" Corporate STRATEGIC Planning † . This construct shall be explained in the context of EnronaˆÂ ¦.which has been regarded as the biggest fraud in history. Under Corporate Strategic Planning Scope the company has used Financial Engineering to be-fool the the stakeholder of the company. In corporate strategic be aftering one really of import determination includes â€Å" Strategic ALLIANCE † which the companies follow for carry throughing their strategic every bit good as fiscal motivations. Enron has excessively did the same thing. Enron was created by a merge between Houston Natural Gas and Inter north. Houston ‘s Natural Gas ‘s CEO Kenneth Lay headed the amalgamation of the two companies. Kenneth Lay became the CEO of Enron. Enron was originally entirely involved with the distribution and transmittal of electricity and gas in the United States. In the amalgamation, Enron incurred a big sum of debt, and as a consequence of deregulating, no longer had sole rights to its grapevines. The company had to happen a manner to bring forth net incomes and hard currency flow. Kenneth Lay hired Jeffrey Skilling to work for Enron as an comptroller. Skilling suggested the pattern of purchasing gas from a web of providers and selling it to consumers at a fixed monetary value with a contract. Enron was interested in the enlargement, edifice, and operation of grapevines, power workss, and other substructure worldwide. After merely a twelvemonth of operation Enron merged with a company called Spectrum Seven, a compa ny whose president and CEO is the former president of the United States, George W. Bush. In 1999, Enron tried to spread out their company by making the Azurix Corporation, a H2O public-service corporation company. Enron was named â€Å" America ‘s Most Advanced Company † by Fortune magazine from 1996 to 2001. Enron was on Fortune ‘s â€Å" 100 Best Companies to work for In America † in 2000. The company ‘s hereafter appeared to be bright and assuring continued success. One of the really of import issue which led to the ruin of Enron was Nigerian Barge trade which was chiefly done to victimize the Govt and the stakeholders. Enron had promoted that it is come ining into a trade with the Nigerian Barge Fieldss of supplying energy human dynamos at that place. . For Nigerians, the undertaking was of import because, though Africa ‘s largest state is rich in energy resources, it faced relentless power crises and blackouts. The trade was a strategy to â€Å" park † Enron ‘s assets to bolster its net incomes and that no hazard was transferred to Merill Lynch in the trade because of an â€Å" unwritten ‘handshake ‘ side trade † by Enron to buy back the flatboats back from Merill or happen another suited purchaser. It was a fake that allowed Enron to illicitly book about $ 12 million in pretax net income, when in fact there was no existent sale and no existent net incomes. The function of Merill Lynch in this whole thing has been questionable since they have deviated from their basic responsibility and helped them in indulging into deceitful activities. Alongwith this instance and many others Enron had to atlast file for bankruptcy and it has been a affair of great concern for the US Govt. since one of its major investing bankers were involved in the instance.Question:Ques:1 What are the ethical issues involved in this instance?Autonomic nervous system: Enron showed a dainty image in forepart of the Nigerian Govt. Nigeria had abundant resources but lacked in expertness to use them expeditiously. Enron promised them to supply them expertise but it was merely a manner to â€Å" park † their assets. They wanted to conceal their earlier frauds and unethical manner of net incomes ( black money ) . The most unethical portion was that they were playing with their codification of behavior and puting a bad illustration for the remainder of the corporate. Butone of the board members of Merrill Lynch bl ew the whistling and the aureate image of Enron was tarnished.Ques: 2. What are the exposure profile for Enron ‘s clients with regard to natural gas monetary values?Ans. It has been identified that Enron ‘s jobs were non in its energy operations, but from â€Å" dot com † investings and in some foreign subordinates. Enron was originally entirely involved with the distribution and transmittal of electricity and gas in the United States. But after the amalgamation and the deregulating in the US, people could now entree gas at subsidised rate. This reduced its monopoly over the distribution of natural gas. But it had a strong political backup. The company ‘s connexion to George W. Bush, and Houston ‘s local political relations has received much attending in the recent yesteryear. In 1986, Enron was involved with Bush ‘s company in joint boring for oil. It has been said that George Bush and Kenneth Lay even shared good friendly relationship dealingss . That is why the company ever enjoyed some kind of shelter even after making unethical patterns. The clients did non hold any pick except for buying at the monetary values offered by Enron.Ques: 3. What suggestions do you hold for Enron?Ans. The lone suggestion that we have for Enron is that it should accept its error and apologise for its fraud. This can be one manner of recovering its image. Another option would be to counterbalance the Nigerian Barge Govt. so that it may experience that Enron is truly atoning on its error of working the abundant resources of Nigeria which remained unutilized.SWOT ANALYSIS OF THE CASEStrengthStrong political backup ( Bush & A ; Houston Govt. ) Good repute with fiscal establishments ( Merrill Lynch )FailingCertitude and extra dependance on its dependable resources Lack of support from top direction executives in strategic planning determinations ( window dressing of the histories at in-between degree )OpportunityRecover their lost energy because of clients assurance in them Promoting themselves in such a manner that the trade was fundamentally done to supply the client services at lower rates and non to conceal any corporate dirt.MenaceIt becomes hard to recover the lost image even if the company goes for â€Å" n † no of CSR as the expression goes â€Å" 1 dissatified client will state 30000 people whereas 1 satisfied client will state merely 3 † . So the company functionaries can good conceive of in what quantum their image or trade name equity has tarnished.CRITICAL APPRAISALThis is non the first cozenage or fraud for which Enron has been alleged. Previously it had been into spotlight when it created a bogus SPV ( SPECIAL PURPOSE VEHICLE ) to pull strings their histories. They have created a false SPV ( Particular Purpose Vehicle ) to reassign all their losingss to that entity. It was fundamentally done to change over their ruddy balance sheet into a rose-colored one. Strong political backup and everlasting support from the taking fisca l establishments urged Enron to go on these frauds since they believed that Govt will come to its deliverance in instance it faces any job. Enron had non merely misused the options available through fiscal technology for their ain motivations but in a manner destroyed the state ‘s image besides because they were stand foring US Corporate civilization in Nigeria. So the state ‘s unity besides was at interest. The approaching companies can larn a lesson in two ways – 1. They may be encouraged to make such kind of frauds since Govt come for deliverance ( negative motive ) 2. It may put an illustration for them non to reiterate such an act in future. ( positive motive ) . In Indian context it is really of import to larn a lesson because we have been top ranked in Corporate cozenage this twelvemonth.

Industrial Relations Practices Essay

This chapter seeks to review the thoughts of other experts on industrial relations practices in state owned organisations. The purpose is to have a reference in terms of what others believe and perceive in relation to industrial relation and its practices in state owned organizations using Ghana as a case study. State-Business Relations and Economic Performance in Ghana by Charles Ackah, Ernest Aryeetey, Joseph Ayee & Ezekiel Clottey In their executive summary, Charles Ackah, Ernest Aryeetey, Joseph Ayee & Ezekiel Clottey, talked about the fact that relationship between the state and business community in Ghana had varied since independence. Though each government has had distinct relations with business and private sectors, civilian governments have generally promoted and enjoyed good rapport with the business community while military governments especially in the 1980s have tended to have confrontations with the private sector. Their study used a multi-disciplinary approach that included both qualitative and quantitative aspects of the disciplines of political science, economics, history, sociology and organizational management. They were seeking to understand what constitutes effective state-business relations, and to assess how state-business relations are related to economic performance, their study relied on historical institutionalist inductive theories- comparative historical analysis and path-dependence, among others. For their analysis, their study relied on both primary data, from interviews with selected formal and informal enterprises and regulatory agencies within Ghana, and their secondary data were derived from a review of statutory literature such as the Constitution of Ghana, Acts of Parliament, Statutes, Codes, Contracts, rules and procedures and conventions establishing institutions. Their purpose was to examine the characteristics of formal and informal rules and regulations governing the establishment and operation of foreign and indigenous businesses, how these have evolved over time and how they may have impacted economic performance. For their quantitative economic analysis, their study used a panel of 256 Ghanaian manufacturing firms over the period 1991-2002 to analyze the extent to which an effective state-business relationship is beneficial to economic performance. Focusing on total factor productivity, they found out that an effective State Business Relations (SBR) or a sound investment climate correlates positively with better firm performance, possibly channeled via a more optimal allocation of resources in the economy. Concerning the effect of the investment climate indicators, their results showed that an ‘unfriendly’ investment climate illustrated through firms’ perceptions about economic and regulatory policy uncertainty affecting their operations and growth are negatively correlated with productivity. With regards to the SBR measures, they found that social networks as indicated through the extent to which firms or their managers have close contacts within the government or bureaucracy had a statistically positive correlation with firm performance. Their results indicated that being well connected with those who make and implement government policy increases the chances of being able to lobby to overcome some of the difficulties confronting normal business enterprises, such as the number of procedures it takes to obtain licenses and permits and the number of days it takes to clear imported goods from the port. Narrative analysis of state agencies and Private Enterprises Foundation’s perceptions of SBRs in Ghana from 1992 to 2008 which also coincides and extends beyond the period of econometric analysis of SBRs on firm performance confirms the results discussed above. Both state and BAs agree on a shift from a predominantly ad hoc and informal clientelistic relationship to a more formal and synergistic SBRs in Ghana since 1992. Formal and regularized meetings between state agencies and businesses have positively impacted on firm productivity. They conclude for instance, PEF’s formal advocacy role and function resulted in the use of GCNET to expedite clearing of imported goods. Business concerns of firms are channeled more often through formal by BAs to state agencies. Firms through their BAs make inputs into budget and other policy on formalized basis. Moreover, strong formal relationship between the executive and BAs such as the investors advisory council have helped firms stay close to government and bureaucracy. Overall, their findings contribute to understanding that link between an effective state business relations and economic performance. Their paper adds to the work done by Qureshi and te Velde (2007) by investigating the key determinants of firm performance and also assessing the relationship between an effective SBR and firm productivity in Ghana. The results of their study stress the need for an enabling environment for the private sector. Experiences from East and Southeast Asian economies have also shown that investment and productivity growth critically hinges on an effective and vibrant private sector underpinned by a sound investment climate. Promoting a sound investment climate is one of the core responsibilities of the state in both developed and developing countries to achieve rapid capital accumulation and sustained growth and poverty reduction. Markets are good but are not without flaws. Thus, in order for inequalities in incomes and opportunities not to be exacerbated by the markets, it is important that the many constraints that inhibit the private sector from responding effectively to market incentives are removed, complemented with an increased effectiveness of government involvement in supporting private sector activities. Apart from the positive effect of SBRs on economic performance, the other lesson which can be drawn from their paper is that even though successive governments in Ghana have shown some commitment to supporting a viable private sector that commitment has, at the same time, been undermined by governments’ own fear of a strong private sector acting as a countervailing force and thereby weakening their monopoly over neo-patrimonialism. Consequently, the commitment may be seen as a public relations hoax. An effective SBR in Ghana requires sustained formalized political commitment to policies that sees the private sector as a catalyst and initiator of pro-poor growth and development. In their Introduction, they pointed out a number of theoretical models which provides many compelling reasons why effective SBRs would stimulate economic growth and poverty reduction. Economic growth has been an important topic of discussion in almost every economy for a very long time. Previous research has found steady increases in investment and productivity to be crucial to a country’s long-run economic growth and poverty reduction. Experiences from East and Southeast Asian economies have also shown that investment and productivity growth critically hinge on an effective and vibrant private sector underpinned by a sound investment climate. Promoting a sound investment climate is one of the core responsibilities of the state in both developed and developing countries to achieve rapid capital accumulation and sustained growth and poverty reduction. The economic reform programmes introduced in many developing countries during the 1980’s stressed the need for a propitious enabling environment for the private sector. Initially there were high expectations that a package of macroeconomic reforms (‘getting the prices right’) would give quick dividends in terms of economic growth. There has been growing disappointment with the growth record in many developing countries. Increased globalization and trade liberalization have led to a realization of the huge potential for the private sector but has also led to a considerable shift in the relationship between the public and private sector actors. Empirically, the size and role of the private sector is clearly evolving with globalization. Many high-growth nations have relied on markets to allocate resources. Markets, however, are not without flaws. And in order for inequalities in incomes and opportunities not to be exacerbated by the markets, it is important that the many constraints that inhibit the poor from responding effectively to market incentives are removed. A well-functioning market system, underpinned by strong institutions, with adequate protection of intellectual and physical property rights, and ‘smart’ interventions by the state, provides an enabling environment for businesses and individuals to innovate, compete and create value for all. This encapsulates the paramount importance of inclusive growth, i. e. , creating economic opportunities through sustainable growth and making the opportunities available to all including the poor. The relationship between the state and business in forging economic growth and development has been an enduring area of research for both economists and political scientists since the Industrial Revolution of the 17th Century. Literature and research findings have emphasized both the positive and negative roles of the state in promoting markets and economic developments. By the early 1980s, many interventionist states had been judged to have failed in their quest to directly promote economic development. The public sector in most states became big and excessive, while government control of economic activities was counterproductive as pricing and subsidies favoured the urban few. Among developing countries, Import Substitution Industrialization (ISI) misallocated resources, discouraged exports and limited importation or transfer of much needed technology (Kohli, 2000). Quite contrary to the neo-liberal economic views held by most international development agencies that state interventions in economic growth and development was counterproductive, the role of states in development and the enhancement of pro-poor growth cannot be overstated (Amsden, 1989; Wade, 1990). Notable examples of states like Japan, South Korea in the 1980s and most recently China and India in the late 1990s show the positive role states can play in promoting development and poverty reduction among developing economies. Chalmers (1982) shows that in the case of Japan the state’s ability to prioritize areas for economic development, support private entrepreneurs and undertake direct and indirect interventions in economy promoted economic development. Such developmental states positively alter market incentive structures, manage conflicts, reduce risks and give direction to entrepreneurs (Kohli, 2000). Similarly, the World Bank Report of 1997 acknowledged the important roles of both the state and market, saying that â€Å"an effective state is vital for the provision of goods and services that allow markets to flourish and people to lead healthier, happier lives† (World Bank 1997:1). In short, the state also needs to establish and maintain the institutions that encourage or allow growth-related economic activity. While neoliberal growth theorists officially support a minimal role for government in economic affairs, it is still the case that economic growth generally depends upon a strong government and also relies on the state to construct and organize markets (MacEvan 1999:2-19). Since independence in 1957, Ghana has been making slow and unsteady progress in achieving structural change and economic transformation. Successive Ghanaian governments have undertaken a number of reforms targeted at improving the investment climate and promoting private sector participation in the economy. In 1992, when the Fourth Republican Constitution was promulgated to usher in multi-party democracy, several other development policies were introduced to augment market interventions for sustainable private sector development. The country adopted and implemented neoliberal structural adjustment programmes and market reforms. Apart from pursuing a vigorous free-market economic, industrial and trade policy, it also adopted a liberalized investment policy, with the goal of attracting foreign investment as well as promoting joint ventures between foreign and local investors. Certain social, political and economic patterns of change have emerged, such as, an expanding private sector and the establishment of legal and regulatory structures. Some improvements have also been attained in the provision of infrastructure, health and education, macroeconomic stability, and ongoing reforms in the financial sector. These changes, however, are unlikely to guarantee the needs of the private sector in today’s complex globalized world. Fundamental problems in the political and administrative system still persist despite many attempts at reform. Problems remain in relation to formalizing business operations in the country and corruption continues to be a problematic factor for doing business in Ghana. Many private companies encounter difficulties with regulations and continuing administrative inertia and corruption. A fairly high percentage of companies surveyed by the World Bank and IFC Enterprise Survey in 2007 report that they expect to pay informal payments to public officials to ‘get things done’ such as securing an operating license, meeting tax obligations and securing government contract. The survey also indicates that the burden of customs procedures in Ghana is quite cumbersome and constitutes a competitive disadvantage. Delays in customs procedures are sometimes deliberate as they create opportunities for officials to request unofficial payments. Against this backdrop, the purpose of their study was to examine the efficacy or otherwise of institutional arrangements put in place by various governments since to promote state business relations aimed at promoting economic growth and reducing poverty. The main objectives of their study were to: †¢? ssess the political and economic factors that have either promoted or undermined the effective functioning of private sector growth in Ghana; †¢? identify and discuss the influence of formal and informal institutions on pro-poor policy decision- making and implementation; and †¢? examine the key determinants of state-business relations (SBRs) and their effects on corporate performance in Ghana. Their study too k a multi-disciplinary approach that includes both qualitative and quantitative aspects of the disciplines of political science, economics, and organizational management. Primary data include interviews with selected formal and informal enterprises and regulatory agencies within Ghana. Secondary data included review of statutory literature such as the Constitution of Ghana, Acts of Parliament, Statutes, codes, contracts, rules and procedures and conventions establishing institutions. Their purpose here is to examine the characteristics of formal and informal rules and regulations governing the establishment and operation of businesses, how these have evolved over time, and how they may have impacted on economic performance. For the quantitative economic analysis, the study uses micro-econometric methods based on firm level data to investigate the linkages between measures of SBRs and firm performance. Cross-sectional and panel data regression analyses were employed to analyze how measures of effective SBRs relate to firm-level productivity. In their conceptualizing state-business relations, they highlighted that, most development theories that emerged in the early 19th century discussed economic and political relations among both developed and developing countries. Many theorists commented on the relations between the state and society which also comprised economic groups. While development remained the overarching focus of such studies, much of what was discussed had direct bearings on the relationship between emergent states in the developing world and how economic agents interacted. Then, the relationship between states and markets were conceived in ideological terms. Capitalists who wrote after Adam Smith emphasized the importance of markets in generating wealth. Most commentators claimed markets can self-regulate. Marxists writers on the other hand introduced class relations in how state and markets operate with claims that dominant classes who control wealth creation in most polities capture the state to pass laws and institutions that favour their cause. In between these two extreme positions on state and markets, many variant views were suggested to explain specific circumstances. Conventional economic theorists see the state as â€Å"an important initiator and catalyst of growth and development† (Martinussen, 1997:220). What still remains contentious is how states are conceptualised. Martinussen (1997:222) lists two major approaches and four dimensions of the state. A ‘society-centred’ approach attaches much importance to societal structures and social forces that exert greater impact on what become the state such that state power, apparatus and functions derive from economic agents and social forces of societies (Poulantzas, 1978). State-centred’ approaches give greater autonomy to state apparatuses and state personnel who act independently of economic agents, social classes or interest groups (Clark and Dear, 1984). Myrdal’s point about discretionary powers of political leaders is shared by dialectic modernization theorists like Jackson and Rosberg (1982) who noted that African rulers’ personality takes precedence ov er rules. State-business relations take place in such political environments where patron-client relationships exist throughout Africa (Sandbrook, 1985). In the absence of a legal framework that ensures security of property; impartial public services that directly facilitate production; and the regulation of foreign economic relations that maximises national interest, informal ties like blood relations, ethnic origins and personal access to political leadership dictate the pace of SBR in many parts of Africa. More recently since the early 1980s, following the monumental role played by states in Asia to transform third world economies into developed states, many theorists have offered explanations on the role of states and markets (Johnson, 1987, Evans, 1995). Conclusions made by such scholars indirectly places emphasis on the ‘magical’ blend between the developmental goals of the state and the profit maximization drive of private sector institutions in Asia. On macroeconomic impacts, the articles revealed the factors responsible for market failure are the existence of monopoly, public goods (goods which are non-rival and non-excludable) and externalities. Others include imperfect and asymmetric information and increasing returns to scale. These factors disturb the optimal allocation of resources in the economy necessitating government intervention. For example, firms in their activities generate an externality which may end up affecting other firms or individuals with the cost or benefit of doing so not reflected in the value of their transactions. Similarly, these firms in the absence of training and adequate knowledge on the importance of investing in transferable worker skills, may under- invest in the skills and capacity of its general workers. The government or public sector is also not exempt from failures. Government failure is said to occur when government action results in a less efficient allocation of resources. As such government intervention though necessary, may not be sufficient in addressing the failures in the market. This is because often, particularly in developing economies, governments lack the institutional and structural capabilities such as perfect information, practical and feasible development plans, essential logistics and structures that are required for addressing the failures which arise from the market. Also, government intervention in the market may result in crowding out which occurs when the government expands its borrowing more to finance increased expenditure or tax cuts in excess of revenue, crowding out private sector investment by way of higher interest rates. Similarly, government intervention activities may suffer intense lobbying and rent-seeking activities especially in countries with high records of corruption, eventually resulting in the misallocation of resources in the economy. With this background, it is obvious that a SBR is extremely essential. Such a relationship provides the solution to state, market and coordination failures. In principle, business associations play a significant role in facilitating the formulation, implementation, and monitoring of economic policies and provision of feedback to the government (Hisahiro, 2005). In addition, such a relationship between the state and the private sector plays a central role in providing a bridge between the business community and political circles. Further, these relations establish communication links between the government and businesses to exchange wide-range economic information, such as on industrial development, export markets and research and development (R;D). In short, by establishing networks between the state and the market, concrete and practical data on industries, markets and technologies are obtained and shared which may serve as an important information bureau for effective industrial and state policies. Harriss (2006) argues that a favorable collaboration between the state and business may have positive consequences for the growth of the economy as a whole, as long as certain mechanisms are in place which facilitate the following: transparency- the flow of accurate and reliable information, both ways, between the business and government; reciprocity between the business and the government; credibility- such that the market is able to believe what the state actors say and; high levels of trust through transparency, reciprocity and credibility. Hence, appropriate government policies, necessary for promoting economic growth in general and private sector development in particular are made possible by an efficient and fruitful state business relations and dialogues. On microeconomic impacts, the article suggested that, a well-structured, organized and effective relationship between the state and the market which satisfies the conditions of transparency, reciprocity, credibility and trust enhances the productivity of the firm in so many important ways. Firstly, an effective SBR helps to reduce policy uncertainties in the economy. Expectations play a major role in the activities of firms and investors particularly when it comes to savings decisions, the type of investment to undertake or the type of goods to produce, the period of production, the quantities to be produced, the technology to be used, how and where to market what has been produced and even how pricing of the commodities should be done. All these decisions are taken based on anticipated market conditions and expected profitability. As such any uncertainty in the economy tends to affect the activities of these firms, the level of investment and consequently the level of economic activity, which translates into economic growth. The absence of clear policies causes these firms to operate in uncertain environments, exposing their businesses to undue risks and resource shortages. Dixit and Pindyck (1994) argue that uncertainty tends to have significant negative effects on investment, especially when investment involves large sunk and irreversible costs. Against this backdrop, it is quite clear that businesses which have a better and effective relationship with the government may not be in the dark when it comes to policy decisions. Several studies confirm the negative effect that uncertainty has on investment. For instance, Bonds and Cummins (2004), in a survey of publicly-traded US companies, found that uncertainty has a negative effect on investment in both the short- and the long -run. Similarly, Ghosal (2003) was also able to show that periods of greater uncertainty have a crucial effect on industry dynamics and thus results in a decrease in the number of small firms and establishments and also a marginal increase in industrial concentration. In short, a greater correspondence and interaction between the state and the business enhances the free flow of information on prospective policies and reduce the level of uncertainty in the business environment, which is expected to result in a greater business confidence, quick firm-decision making and more accurate forecasting. Secondly, an effective liaison between the state and the market results in tailor-made, accurate and efficient government policies and institutions. In other words, an effective SBR will ensure that government policies towards businesses are appropriate and of good quality. This is because, in the presence of such an effective relationship between the state and the market, the design of government policies will be done, among other things, using the input of and in consultation with the private sector. Regular interactions and sharing of information will ensure that the private sector objectives coincide with public action and that local level issues are inputted into the centralized policy processes. The private sector through that will be able to identify opportunities and constraints, as well as possible policy options for creating incentives, lowering investment risks and reducing the cost of doing business. This result in more efficient and convenient government regulations and policies such as tax regimes, licensing requirements and propriety rights obtained through policy dialogues and advocacy which will go a long way to reduce the risks and costs faced by firms and eventually enhance their productivity. Finally, a good relationship between the state and businesses brings about an improvement in the quality, relevance and appropriateness of government taxing and spending plans. An effective relationship will help to ensure that certain facilities and mechanisms necessary for the survival of businesses are available and operational. This is because what motivates a firm to take risks, innovate and improve its performance depends crucially on the availability of certain services, much as it may depend on the private incentive facing the firm. Examples of these public services are good infrastructural system, information and communication technology, legal and judicial services, defense and security, availability of finance as well as the availability of human and physical capital. These facilities and systems affect the firms’ productivity both directly and indirectly. For example, the provision of basic amenities like water and electricity affect productivity directly by facilitating the smooth running of businesses. On the other hand, the provision of infrastructure though may not directly affect productivity will indirectly enhance the transportation of inputs and output to and from the production sites which will enhance the speed of production and also the quality of marketed products and eventually enhance their productivity. The efficient delivery of these public services require an active participation of the private sector which will be responsible for lobbying the government to increase its spending in those areas, creating a more favorable environment for investment. Again, a good SBR is also able to stimulate and sustain innovation. Schumpeter (1940) explains that innovation is one of main forces behind firm dynamics and economic growth. Also, sometimes such collaboration between the government and businesses may result in the government taking the lead to encourage and motivate the private sector to engage in research and development by providing incentives, venture capital for new enterprises and also appropriate property rights. All these activities by the government affect the productivity of the firms directly and encourage further investment. In effect, effective and sustained SBR can ameliorate both market and government failures, which are pervasive in most developing countries, and consequently bring about an increase in the growth of the economy. In conclusion and policy implications, they concluded that the relationship between states and businesses in forging economic growth and development has been an enduring area of research for economists and political scientists since the Industrial Revolution of the 17th Century. The relationship between the state and business community in Ghana has varied since independence. Though each government has had distinct relations with business and private sector, civilian governments have generally promoted and enjoyed good rapport with the business community while military governments especially in the 1980s have tended to have confrontations with the private sector. This study used a multi-disciplinary approach that included both qualitative and quantitative aspects of the disciplines of political science, economics, history, sociology and organizational management. To seek to understand what constitutes effective SBR, and to assess how SBR are related to economic performance, the study relied on historical institutionalist inductive theories- comparative historical analysis and path-dependence, among others. For this analysis, the study relied on both primary data, from interviews with selected formal and informal enterprises and regulatory agencies within Ghana, and secondary data derived from a review of statutory literature such as the Constitution of Ghana, Acts of Parliament, Statutes, Codes, Contracts, rules and procedures and conventions establishing institutions. The purpose here was to examine the characteristics of formal and informal rules and regulations governing the establishment and operation of foreign and indigenous businesses, how these have evolved over time and how they may have impacted conomic performance. For the quantitative economic analysis, the study used a panel of 256 Ghanaian manufacturing firms over the period 1991-2002 to analyze the extent to which an effective SBR is beneficial to economic performance. Focusing on total factor productivity, we have found that an effective SBR or a sound investment climate correlates positively with better firm performanc e, possibly channelled via a more optimal allocation of resources in the economy. Concerning the effect of the investment climate indicators, our results show that an ‘unfriendly’ investment climate illustrated through firms’ perceptions about economic and regulatory policy uncertainty affecting their operations and growth are negatively are negatively correlated with productivity, while social networks as indicated through the extent to which firms or their managers have close contacts within the government or bureaucracy have a statistically positive correlation with firm performance. These results indicate that being well connected with those who make and implement government policy increases the chances of being able to lobby to overcome some of the difficulties confronting normal business enterprises, such as the number of procedures it takes to obtain licenses and permits and the number of days it takes to clear imported goods from the port. Narrative analysis of state agencies and PEF’s perceptions of SBRs in Ghana from 1992 to 2008 which also coincides and extends beyond the period of econometric analysis of SBRs on firm performance confirms the results discussed above. Both state and BAs agree on a shift from a predominantly ad hoc and informal clientelistic relationship to a more formal and synergistic SBRs in Ghana since 1992. Formal and regularized meetings between state agencies and businesses have positively impacted on firm productivity. For instance, PEF’s formal advocacy role and function resulted in the use of GCNET to expedite clearing of imported goods. Business concerns of firms are channeled more often through formal by BAs to state agencies. Firms through their BAs make inputs into budget and other policy on formalized basis. Moreover, strong formal relationship between the executive and BAs such as the investors advisory council have helped firms stay close to government and bureaucracy. Overall, our findings contribute to understanding the link between an effective SBR and economic performance. This paper adds to the work done by Qureshi and te Velde (2007) by investigating the key determinants of firm performance and also assessing the relationship between an effective SBR and firm productivity in Ghana. The results of the study stress the need for an enabling environment for the private sector. Experiences from East and Southeast Asian economies have also shown that investment and productivity growth critically hinges on an effective and vibrant private sector underpinned by a sound investment climate. Promoting a sound investment climate is one of the core responsibilities of the state in both developed and developing countries to achieve rapid capital accumulation and sustained growth and poverty reduction. Markets are good but are not without flaws. Thus, in order for inequalities in incomes and opportunities not to be exacerbated by the markets, it is important that the many constraints that inhibit the private sector from responding effectively to market incentives are removed, complemented with an increased effectiveness of government involvement in supporting private sector activities. Apart from the positive effect of SBRs on economic performance, the other lesson which can be drawn from the paper is that even though successive governments in Ghana have shown some commitment to supporting a viable private sector that commitment has, at the same time, been undermined by governments’ own fear of a strong private sector acting as a countervailing force and thereby weakening their monopoly over neopatrimonialism. Consequently, the commitment may be seen as a public relations hoax. An effective SBR in Ghana requires sustained formalized political commitment to policies that sees the private sector as a catalyst and initiator of pro-poor growth and development.