An Introduction to Cultural Anthropology

An Introduction to Cultural Anthropology Cultural anthropology, also known as sociocultural anthropology, is the study of cultures around the world. It is one of four subfields of the academic discipline of anthropology. While anthropology is the study of human diversity, cultural anthropology focuses on cultural systems, beliefs, practices, and expressions. Did You Know? Cultural anthropology is one of the four subfields of anthropology. The other subfields are archaeology, physical (or biological) anthropology, and linguistic anthropology. Areas of Study and Research Questions Cultural anthropologists use anthropological theories and methods to study culture. They study a wide variety of topics, including identity, religion, kinship, art, race, gender, class, immigration, diaspora, sexuality, globalization, social movements, and many more. Regardless of their specific topic of study, however, cultural anthropologists focus on patterns and systems of belief, social organization, and cultural practice. Some of the research questions considered by cultural anthropologists include: How do different cultures understand universal aspects of the human experience, and how are these understandings expressed?How do understandings of gender, race, sexuality, and disability vary across cultural groups?What cultural phenomena emerge when different groups come into contact, such as through migration and globalization?How do systems of kinship and family vary among different cultures?How do various groups distinguish between taboo practices and mainstream norms?How do different cultures use ritual to mark transitions and life stages? History and Key Figures Cultural anthropology’s roots date back to the 1800s, when early scholars like Lewis Henry Morgan and Edward Tylor became interested in the comparative study of cultural systems. This generation drew on the theories of Charles Darwin, attempting to apply his concept of evolution to human culture. They were later dismissed as so-called â€Å"armchair anthropologists,† since they based their ideas on data collected by others and did not personally engage first-hand with the groups they claimed to study. These ideas were later refuted by Franz Boas, who is widely hailed as the father of anthropology in the U.S. Boas strongly denounced the armchair anthropologists’ belief in cultural evolution, arguing instead that all cultures had to be considered on their own terms and not as part of a progress model. An expert in the indigenous cultures of the Pacific Northwest, where he participated in expeditions, he taught what would become the first generation of American anthropologists as a professor at Columbia University. His students included Margaret Mead, Alfred Kroeber, Zora Neale Hurston, and Ruth Benedict. Boas’ influence continues in cultural anthropology’s focus on race and, more broadly, identity as forces that are social constructed and not biologically based. Boas fought staunchly against the ideas of scientific racism that were popular in his day, such as phrenology and eugenics. Instead, he attributed differences between racial and ethnic groups to social factors. After Boas, anthropology departments became the norm in U.S. colleges and universities, and cultural anthropology was a central aspect of study. Students of Boas went on to establish anthropology departments across the country, including Melville Herskovits, who launched the program at Northwestern University, and Alfred Kroeber, the first professor of anthropology at the University of California at Berkeley. Margaret Mead went on to become internationally famous, both as an anthropologist and scholar. The field grew in popularity in the U.S. and elsewhere, giving way to new generations of highly influential anthropologists like Claude Là ©vi-Strauss and Clifford Geertz. Together, these early leaders in cultural anthropology helped solidify a discipline focused explicitly on the comparative study of world cultures. Their work was animated by a commitment to true understanding of different systems of beliefs, practice, and social organization. As a field of scholarship, anthropology was committed to the concept of cultural relativism, which held that all cultures were fundamentally equal and simply needed to be analyzed according to their own norms and values. The main professional organization for cultural anthropologists in North America is the Society for Cultural Anthropology, which publishes the journal Cultural Anthropology. Methods Ethnographic research, also known as ethnography, is the primary method used by cultural anthropologists.  The hallmark component of ethnography is participant observation, an approach often attributed to Bronislaw Malinowski. Malinowski was one of the most influential early anthropologists, and he pre-dated Boas and the early American anthropologists of the 20th century. For Malinowski, the anthropologist’s task is to focus on the details of everyday life. This necessitated living within the community being studied- known as the fieldsite- and fully immersing oneself in the local context, culture, and practices. According to Malinowski, the anthropologist gains data by both participating and observing, hence the term participant observation. Malinowski formulated this methodology during his early research in the Trobriand Islands and continued to develop and implement it throughout his career. The methods were subsequently adopted by Boas and, later, Boas’ students. This methodology became one of the defining characteristics of contemporary cultural anthropology. Contemporary Issues in Cultural Anthropology While the traditional image of cultural anthropologists involves researchers studying remote communities in faraway lands, the reality is far more varied. Cultural anthropologists in the twenty-first century conduct research in all types of settings, and can potentially work anywhere that humans live. Some even specialize in digital (or online) worlds, adapting ethnographic methods for today’s virtual domains. Anthropologists conduct fieldwork all around the world, some even in their home countries. Many cultural anthropologists remain committed to the discipline’s history of examining power, inequality, and social organization. Contemporary research topics include the influence of historical patterns of migration and colonialism on cultural expression (e.g. art or music) and the role of art in challenging the status quo and effecting social change. Where Do Cultural Anthropologists Work? Cultural anthropologists are trained to examine patterns in daily life, which is a useful skill in a wide range of professions. Accordingly, cultural anthropologists work in a variety of fields. Some are researchers and professors in universities, whether in anthropology departments or other disciplines like ethnic studies, women’s studies, disability studies, or social work. Others work in technology companies, where there is an increasing demand for experts in the field of user experience research. Additional common possibilities for anthropologists include nonprofits, market research, consulting, or government jobs. With broad training in qualitative methods and data analysis, cultural anthropologists bring a unique and diverse skill set to a variety of fields. Sources McGranahan, Carol. On Training Anthropologists Rather Than Professors Dialogs, Cultural Anthropology website, 2018.Social and Cultural Anthropology Discover Anthropology UK, The Royal Anthropological Institute, 2018.What is Anthropology? American Anthropological Association, 2018.

Leo Soul Mates Scorpions Essays

Leo Soul Mates Scorpions Essays Leo Soul Mates Scorpions Essay Leo Soul Mates Scorpions Essay The beauty of a Scorpio woman is exceptional, mysterious and totally magnetic. She knows that and is proud of herself. She will control her wish to dominate and will let a man lead in a relationship, atleast during courtship. She knows how to hypnotize a man and gets successful, more often than not. Dont expect a Scorpio female to rush into your arms in front of a thousand people and shout her feelings at the top of her voice. Instead, she will come close to you, glance at you in a sensual way and whisper the most romantic words in a seductive tone. If you are not sincere with your feelings, dont even try to get close to a Scorpio girl. With those beautiful, penetrating eyes of hers, she can read exactly what is on your mind. She can easily make out your real intentions, so Dont Flirt. It will amount to insulting her and I assure you, insulting her is not at all good for your health. Even when her tone is soothing, her disposition kind and her smile generous, she can be planning the most powerful retaliation. When a Scorpio woman is insulted or gets hurt, her fury knows no bounds. Then, she can become the most hard-hearted and most sarcastic person on this earth. If she loves with fierce devotion, she hates with devastating malice. If you are really in love with her, then you need to know more about her. She has a very hypnotic gaze and the moment her eyes meet your, you will go tumbling down in her deep passion. Being noticed by a Scorpio female definitely gives a boost to a mans ego. She needs a man who is stronger than she is and weakness in him wont get her sympathy at all. He will be expected to behave like a real man, who can dominate her and make her proud. At the same time, he should respect her individuality. He should be better looking than average, with an intellect, philosophical and totally masculine. He must also be ambitious and able to handle tough situation with poise. After she gets committed, a Scorpio female will shower you with all her love and attention. Her whole life will start revolving around you and she will be extremely loyal and exceedingly passionate. She is passionate with everything that is related to her. It is almost impossible for her to have neutral feelings. Either she will deeply cherish or fiercely hate. If any of the feelings are not experienced, she will become completely indifferent towards it. Scorpio women, however, never let these feelings show. Her expression will always remain neutral, betraying nothing. Her anger is very bad and its better to get out of her way when it gets out of hand. Her characteristics profile will make her storehouse of secrets, but people wouldnt know any of hers. Her personal life will be out of bounds for everyone. At the same time, she will never tell the secrets that have been confided in her, not even to you. Even with you, she will have a private part and its better not to pry. That does not mean she is dishonest. Infact, she will be so brutally honest that, at times, she may hurt people in the process. Like a typical Scorpio, she will choose her friends very carefully and the credible ones will remain with her throughout her life. She will never maintain a relationship with unworthy people. Determination and will power are her basic personality traits. She can use them anytime to come out of anything that is negative. If you have been able to win the true love of a Scorpio female, you can be sure you will never feel lonely again. She will be totally devoted to you and even if you two dont get married for any reasons beyond your control, her love for you will not change. She is one of those who believe in the phrase Till Death Do Us Apart. Rather than overshadowing her husband, she believes in supporting him. Behind every successful man, there is a woman; this idiom is perfect in case of the husband who has a Scorpio wife. For her, the future, the happiness and the dreams of her husband hold the supreme importance. She will always defend him fiercely in public and wont take nicely to anyone taking advantage of him. She will always encourage him to reach for the stars, build his courage and never let him turn back from midway. Scorpio women love their homes and keep them spic and span. Now comes the dangerous part. A Scorpio girl is extremely jealous and fiercely possessive of her loved ones. She is prone to suspicions; so dont give reasons to be doubtful of you. On the other hand, you will have to control your jealousy, since she will be attracting a lot of members of the opposite sex. She also dislikes being possessed by anyone, including you. In such a scenario, just remember that a Scorpio woman will always be loyal and devoted to you, even in the worst of circumstances. And then, you know you cannot leave her and it is better to adjust to such a trifle thing. Nobody walks away from a Scorpio, right? As far as money is concerned, she will enjoy it whether she saves it in a piggy bank or splurges it on luxurious things. She is very conscious of her social standards and will never compromise in case of status. She likes power and will sacrifice money and many other things for it. She seems to be very practical, but inside she is very emotional. Like all Scorpios, she will not see any viewpoint in case of her own emotions. A Scorpio female has a sense of fairness and justice. If you dont wish her good morning one day after a fight, she will do the same for the next four days. The same goes for generosity also. If you do one kind deed for her, she will do four in return. As a mother, she will extremely possessive of her children and will care for them. However, she may not express her love openly and this is something you will have to teach her. She will make them independent, fair, strong and proud of themselves, the way she is of them. She will encourage them to develop their innate talents and make sure they dont go unnoticed. A Scorpio woman can drown you in her passion. But then, she can also bring you to safety when the raft becomes too dicey. She can provide you her calm and steady support in the worst of circumstances. Once you win her love, you will never be lonely again. Your food will be perfectly baked and she will grind fresh coffee for you. You will always come back to a spotless home, radiating with the aura of her magnetic personality, the charm of her deep beauty and the warmth of her everlasting love!

Odyssey and Victoria Secret Model Essay

Odyssey and Victoria Secret Model Essay Odyssey and Victoria Secret Model Essay Obstacle 1: Opinions Opinions can ruin anybody’s confidence. Once, I dressed up in my new shirt, but a girl came up to me and said, â€Å"Your shirt is so ugly!’’ After that I grabbed my jacket and zipped it up tight. I really thought the shirt looked nice, but one person’s opinion destroyed the confidence I had that day. In the Odyssey, Circe told Odysseus that all his men will perish. If Odysseus told his men about Circe’s opinion about Odysseus’s men then they could have tried to live longer, learn from their mistakes and be a little more careful. Obstacle 2: Bullies Bullying is now seen worldwide and has stripped away every ounce of confidence one person might have possessed. I’ve experienced many years of being bullied and my self-esteem has evaporated. Many people can’t handle the effects of bullying so they call on a greater force to help stop it such as a god, a teacher or parents. The Odyssey has a great example of bullies like when Odysseus taunted the Cyclops while escaping. The Cyclops felt weak because he was defeated by a puny mortal. The Cyclops had to call upon his father, Poseidon, for help to destroy Odysseus and his men. Obstacle 3: Society (Media) The social media has conducted itself to make everyone believe that beauty is created with adding pounds of makeup and prancing around like a Victoria Secret Model. Cover Girl has changed its slogan to ‘’Easy, Breezy, Better’’ instead of the classic ‘’Easy, Breezy, Beautiful.’’ This is a simple example of how society is changing the way ‘beauty’ is seen and breaking down every girl and boys’ confidence including mine. In comparison to The Odyssey, Odysseus believes he has to be tough like when he saw his dead mother in the underworld. He didn’t cry because he wanted to stay strong and continue to find Tiresias. Obstacle 4: Influences (Peer pressure) Influences can only lead to bad decisions. Many of my friends have influenced me to try new things such as a different style. But, it didn’t suit me so I chose my own thing. Odysseus’s men have a habit of drinking and while under the influence they’d make bad choices. Eurylochus, one of Odysseus’s men, told everybody that dying of hunger is

Visit the Ringed Planet Saturn

Visit the Ringed Planet Saturn The Beauty of Saturn Saturn is the sixth planet from the Sun and among the most beautiful in the solar system. Its named after the Roman god of agriculture. This world, which is the second largest planet, is most famous for its ring system, which is visible even from Earth. You can spot it with a pair of binoculars or a small telescope fairly easily. The first astronomer to spot those rings was Galileo Galilei. He saw them through his home-built telescope in the year 1610. From Handles to Rings Galileos use of the telescope was a boon to the science of astronomy. Although he didnt realize the rings were separate from Saturn, he  did describe them in his observing logs as handles, which piqued the interest of other astronomers. In 1655, Dutch astronomer Christiaan Huygens observed them and was the first to determine that these odd objects were actually rings of material circling the planet. Before that time, people were quite puzzled that a world could have such odd attachments.   Saturn, the Gas Giant The atmosphere of Saturn is made up of hydrogen (88 percent) and helium (11 percent) and traces of methane, ammonia, ammonia crystals. Trace amounts of ethane, acetylene, and phosphine are also present. Often confused with a star when viewed with the naked eye, Saturn can be clearly seen with a telescope or binoculars. Exploring Saturn Saturn has been explored on location by the Pioneer 11 and Voyager 1 and Voyager 2 spacecraft, as well as the Cassini Mission. The Cassini spacecraft also dropped a probe onto the surface of the largest moon, Titan. It returned images of a frozen world, encased in an icy water-ammonia mix. In addition, Cassini has found plumes of water ice blasting from Enceladus (another moon), with particles that end up in the planets E ring. Planetary scientists have considered other missions to Saturn and its moons, and more may well fly in the future.   Saturn Vital Statistics MEAN RADIUS: 58232 kmMASS: 95.2 (Earth1)DENSITY: 0.69 (g/cm^3)GRAVITY: 1.16 (Earth1)ORBIT PERIOD: 29.46 (Earth years)ROTATION PERIOD: 0.436 (Earth days)SEMIMAJOR AXIS OF ORBIT: 9.53 auECCENTRICITY OF ORBIT: 0.056 Satellites of Saturn Saturn has dozens of moons. Here is a list of the largest known ones. PanDistance (000km) 134 - Radius (km) 10 - Mass (kg) ? - Discovered By Year Showalter 1990 AtlasDistance (000km) 138 - Radius (km) 14 - Mass (kg) ? - Discovered By Year Terrile 1980 PrometheusDistance (000km) 139 - Radius (km) 46 - Mass (kg) 2.70e17 - Discovered By Year Collins 1980 PandoraDistance (000km) 142 - Radius (km) 46 - Mass (kg) 2.20e17 - Discovered By Year Collins 1980 EpimetheusDistance (000km) 151 - Radius (km) 57 - Mass (kg) 5.60e17 - Discovered By Year Walker 1980 JanusDistance (000km) 151 - Radius (km) 89 - Mass (kg) 2.01e18 - Discovered By Year Dollfus 1966 MimasDistance (000km) 186 - Radius (km) 196 - Mass (kg) 3.80e19 - Discovered By Year Herschel 1789 EnceladusDistance (000km) 238 - Radius (km) 260 - Mass (kg) 8.40e19 - Discovered By Year Herschel 1789 TethysDistance (000km) 295 - Radius (km) 530 - Mass (kg) 7.55e20 - Discovered By Year Cassini 1684 TelestoDistance (000km) 295 - Radius (km) 15 - Mass (kg) ? Reitsema - Discovered By Year 1980 CalypsoDista nce (000km) 295 - Radius (km) 13 - Mass (kg) ? Pascu - Discovered By Year 1980 DioneDistance (000km) 377 - Radius (km) 560 - Mass (kg) 1.05e21 - Discovered By Year Cassini 1684 HeleneDistance (000km) 377 - Radius (km) 16 - Mass (kg) ? - Discovered By Year Laques 1980 RheaDistance (000km) 527 - Radius (km) 765 - Mass (kg) 2.49e21 Cassini 1672 TitanDistance (000km) 1222 - Radius (km) 2575 - Mass (kg) 1.35e23 - Discovered By Year Huygens 1655 HyperionDistance (000km) 1481 - Radius (km) 143 - Mass (kg) 1.77e19 - Discovered By Year Bond 1848 IapetusDistance (000km) 3561 - Radius (km) 730 - Mass (kg) 1.88e21 - Discovered By Year Cassini 1671 PhoebeDistance (000km) 12952 - Radius (km) 110 - Mass (kg) 4.00e18 - Discovered By Year Pickering 1898 Updated by Carolyn Collins Petersen.

Administration and Executive Support Essay Example | Topics and Well Written Essays - 1000 words

Administration and Executive Support - Essay Example The customers count on the company to deliver exceptional services each day and connect them with the world as well as steer their businesses and in their quest to satisfy customers, they need a good managerial structure. An administrative assistant in the company is responsible for administrative as well as clerical duties to run the organization efficiently. These tasks include co-ordination of the administrative activities, retrieving, storing and integrating and relaying information to staff and clients. As a result, administrative assistants must possess certain qualities and skills that will help them carry out duties efficiently in line with the goals and objectives of the company. Key qualities and skills of an administrative assistant Good communication is not only the backbone but also an asset to every business, and thus, an administrative assistant must possess excellent communication skills. Outstanding communication skills coupled with proper listening skills, gives the administrative assistant an ability to form good interpersonal relationships and know how to interact with people since they are in direct contact with customers and clients of the company. Other skills needed by an administrative assistant are organizational and time management skills. Since administrative assistants have multiple jobs and constantly multi-task, organization skills as well as the ability to pay attention to things are a must have qualities. These help them keep track of the duties and everything that is happening and prioritize the tasks, which can only be achieved by excellent time management skills. Confidentiality, dependability and reliability are other qualities that an administrative assistant should possess. They must show high level of or reliability and dependability since they are charged with numerous tasks and responsibilities. Administrative assistants interact with customers directly and so they are bound to know information about their customers thu s they are required to be able to keep the information safe and not be the chief gossipers in the office. They should also be very knowledgeable on the company’s products so that they present precise and non conflicting information to clients. They should also exhibit good customer service orientation, personal appearance, attitude and competence since they interact with client or customers on a daily basis. In addition, a good administrative assistant must have certain traits such as honesty, respect, flexibility, trustworthiness and sound work ethics. There are significant because their close interaction with managers allows them to hold crucial information that must be protected and these qualities form the pillar to safeguarding such information. Individual Action Plan Method Details When? Why? Outcome Virtual training Training on virtual methods of working May, 2012 Help in becoming a virtual administrative assistance Public Relations Participation involves external stak eholders June, 2012 Learn how to interact with external stakeholders Leadership development management Participants are placed in three diverse work assignments August, 2012 Develop competitive leadership skills and experience to perform well. ICT Involve learning new IT services September Keep up with the changing ICT technologies Record keeping Training on methods and ways of keeping records October Lear how to arrange and keep records in orderly manner Stakeholder refers to a person, an organization or a group of people who have direct and indirect contact with the organization and is affected or affect policies, actions and objectives of that organization. These group and people include customers, supplies and distributers, shareholders, the local

Fundametals of pedagogy assignment Essay Example | Topics and Well Written Essays - 2500 words

Fundametals of pedagogy assignment - Essay Example A significant factor concerned in meeting these objectives is motivation. If learners are not motivated in one way or another, then it is most expected that little or no learning will occur, or, if, by any chance, some learning occurs, then it is likely that it will not be retained for future use. Educational theories have great influence on educational structure. In order to capitalise on the success of individual and school-wide, classroom teaching programs, teachers and school administrators should consider students needs, as well as their hierarchical order (Mead, 2009). This should be a top priority in the creation of such programs so that learners can have the ability to reach their most prime level of potential. For instance, if a learner/student does not feel comfortable with the class-room environment, his/her classmates, feels hungry, then the student/learner will not be in a capacity to concentrate well on learning. The student will be preoccupied with these agitations. A number of learning theories (social learning, Behaviorism and Jean Piaget among others) can rectify this as they can help a student understand the best way they can learn in order to make education effective to them (Tough, 2003). Learning is one of the most significant actions in which humans partake. It is the central goal of the educational procedure, even though most of what individuals learn happens outside of school. Comprehending any theory needs a clear thought of what the theory is trying to clarify. When a certain word is applied, individuals normally think everyone has a similar understanding of what the word signifies. Sadly, this is not the case always. In trying to comprehend the numerous theories of learning and their effects to education, it is useful to understand that the phrase â€Å"learning† means diverse things to diverse people and is applied fairly differently in diverse theories (Tough, 2003). As theories of learning developed over the past half-centu ry, descriptions of learning modified from transformations, which happen in the brain or actions of a person to changes in participation in enduring activities with other people to transform in an individual’s identity in a group (for instance, a change to being a leader from being a follower). Even though, a majority of definitions of learning entail a change in a person’s knowledge, capacity to carry out a skill, or take part in an event with other people, there are significant differences among the theories concerning the nature of this amend (Tough, 2003). This paper will apply two educational theories – social learning and behaviorism – to an educational experience that I have associated with and critically examine how well these two theories account for that experience. Social Learning Mary, a 37 year old Nigerian woman living with HIV/AIDs, was acknowledged by From the Ground Up – a group that is involved in building HIV/AIDs programs to hel p both those who are affected, as well as infected with the virus – for her outstanding service who elevate people from the illness. Her story mainly reflects the social learning theory (peer education), which I find extremely significant to associate with as HIV/AIDs is a disease that has affected many in our world today. Mary states that her personal

Role of Police with Reference to Community Issues Essay

Role of Police with Reference to Community Issues - Essay Example Microsoft, Oracle, Satyam Computers, Tata Computer Services, and other educational institutions which have established their branches in the different countries do need man power, for which they need to provide necessary facilities. In this context, certain housing associations are pretty much indulged in the process of providing housing facilities. In such condition, where world meets world, different nationalities, race, colour, caste, community, it is inevitable that there would be certain issues arising every now and then. Therefore, it is necessary there should be certain policies developed by the housing association to combat such issues. In United Kingdom, Pennine Housing 2000 is one such association which provides shelter facilities on rent by complying with the regulations set up by the regulatory authority. Pennine Housing 2000 established in 2001 is Calderdale's largest and registered social landlord, managing the rented housing stock just over 11,000 properties.2 It states that the rents are kept low so that it is within the reach of everybody and standard of homes are constantly improving due to improvement programmes.3 The company has gained support and funding from Housing Corporation to continue to regenerate number of areas, replacing unpopular and rundown properties to newly built housing estates. During the Annual Tenants Conference, a tenant expressed that 99% of tenants view Peninne Housing 2000 with great respect as it is doing stupendous work while remaining 1% want more and much greater services.4 The company has always focused on meeting high standards for which over 112 million between 2001 to 2006 were spent on internal improvements, new central heating systems, and external works such as new doors, re-roofing etc. The company also promises tenancy rights of the tenan t through tenancy agreement. Pennine was recognized nationally within the social housing sector. At the National Housing Federation iNBiz Awards, it won the Best Leadership and the Employer of Choice categories - achievements which clearly place the company as a quality organisation. It also received Gold RoSPA award for Health & Safety and West Yorkshire NHS Modernisation Award for Healthy Living campaign amongst its staff. Pennine Housing being a well known housing company has its duties and responsibilities cut out. It has to provide all the facilities to its tenants as well as the society. It has the responsibility to see that their tenants are not the victims of social exclusion as there may be people of different communities and nationalities. It has to protect the rights and interest of every individual, so that he/she may not get deprived of the facilities to which he/she may be entitled. The company has also tackle issues like labeling where such acts turn an innocent, known to be good guy to some criminal. Such acts/ issues should be addressed and tackled with effective measures for the welfare of the society. And it is the responsibility of Pennine Housing 2000 to look after the buildings and have a vigilante look at all corners of the edifice and see that the repairs are done wherever necessary so that the locality does not turn into a prostitute's hub or crime yard. The company should take effective policing measures to tackle all such issues in the wake of providing decent and good

BUS311 Wk4 DIS Assignment Example | Topics and Well Written Essays - 500 words

BUS311 Wk4 DIS - Assignment Example This includes buildings and minerals. Real property can be categorized into freehold, concurrent and non-freehold estates. Freehold estates are a type of real property that an individual has the right of ownership for an indefinite period while in the case of non-freehold estates; the owner has the right of ownership for a limited period of time (Rogers 2012). Concurrent estate is property that is owned by two or more persons. Real property is immovable. Personal property is any type of property that does not fall under real property. Personal property includes any right that an individual has over movable things. Personal property can be categorized into corporeal and incorporeal forms of personal property. Personal property can be moved from one place to another. The law treats each type of property differently and so should the society. This is mainly due to the fact that the different properties have different characteristics. Businesses protect their logos through intellectual property, businesses, land and buildings are protected using the real property law and the goods that they offer to their consumers are protected by personal law. I couldn’t agree with you less. Your explanations are straight to the point and I think that giving suitable examples makes your work a masterpiece. However, I wish you would have elaborated more on how the society should treat the different types of properties. I totally agree with you when it comes to real property characteristics. However, when it comes to intellectual property I think that it is not personally owned as you have stated. That said, I think your examples on the same are correct (copyrights and patents). I also concur with you that the different types of properties should be treated differently by the society since they have different meanings and covered by different laws. The Sarbanes Oxley act was passed by congress in the year 2002. The act

Compare and contract the views of society presented in Equus and the Essay

Compare and contract the views of society presented in Equus and the time machine - Essay Example This will be illustrated by excerpts from H. G. Wells’ The Time Machine and Peter Shaffer’s Equus. This essay will focus on two aspects of social conformity namely; normalcy and entropy. The works of both writers portray a vision of a troubled future if man continues to dwell within the societal confines that propagate passivity while ignoring pressing issues such as social class splits and individual passion. Normalcy refers to what the society considers the right aspects of behavior. Passivity means inactive or submission to the will of others. In Equus, Dysart is considered normal as he rarely strays outside of societal boundaries. He is married, has no children, and has a good education and profession that places him in a high social class. However, he feels that his life is dull with no spiritual communication. His marriage lacks intimacy as illustrated by his admission that he has not kissed his wife for six years. Disillusioned with modern civilization and unhapp y with his role in it, he turns to Greek civilization for spiritual comfort. This highlights the internal conflict that most people have. In conforming to society’s belief of what is considered normal, one loses their individualism and passion, causing misery in their lives. In contrast, his patient, Alan, seems full of passion and vigor. Alan goes against the societal indoctrination to conceive the idea of a god that differs from the traditional Christianity. This is propagated by the conflicting views on religion of his parents. His mother is a staunch Christian who read him the bible daily and taught him that the sexual act was dirty. His father was an atheist and a strict disciplinarian that could not even allow him to watch television because he believes that it takes away one’s intelligence and concentration. Both parents are products of social norm, which requires them to exist in a world without passion and worship. As a result, Alan conceives a horse god, Equu s, with which he freely expresses his passionate worship and sexuality. He compares the horsegod to Jesus when he says, â€Å"I see you, I will save you.† (66). This adoration hits its climax when he blinds six horses. As a result, he is declared unbalanced and in pain and sent to Dysart to heal his mind. This violence brings out the conflict between the two myths: the pagan worship he created, and the Christian one he inherited which saddled him with guilt and shame concerning his sexuality. The eyes are symbolic of society’s checks on its members, constantly judging and punishing. By striking the eyes, Alan fights the society that has oppressed him. Thus, society forces blind obedience and individuals are forced to suppress their desires. Even though most people are aware of this consequence and are dissatisfied with their miserable existence, they lack the commitment to change their lives. Dysart feels that by removing one’s uniqueness he is destroying part o f their personality, but ultimately strips Alan of what he desires most. Normalcy and passivity are also evident in The Time Machine. The social disparity between the leisurely wealthy upper class and the working class was considered normal, especially in the Victorian England. The rich exploited the workers for profits to finance their passive lifestyle as portrayed by the laziness in the dinner guests in chapter one, who meet to dine and chat. The time traveler belongs to the upper class. This passivity is also evident among the Eloi (upper

Advanced Practice Nursing Role Essay Example for Free

Advanced Practice Nursing Role Essay Health professionals like nurses have a chance to go for autonomy in the nursing career which is beyond the practice of being a staff nurse. Various pathways for advanced specialization in nursing career have been established for the past few decades. This expansion of responsibilities and vision as a health professional helps nurses to fulfill growth as professional and as a person. Among the advanced practice nursing roles, the author deeply prefer Family Nurse Practitioner specialized in cardiology. This will help her utilize skills in nursing science and as a health care specialist with a twist on promotion of health of the cardiovascular system. Creative APN Role in Health Promotion The author has chosen the field of family nursing practitioner because of the challenges and roles that it holds. The current responsibilities of the family nurse practitioner posts promising personal as well as professional growth on the field of the health care industry. The advance practice nursing role of family nurse practitioner is composed of different skills which pertains to the areas of management skills of community health nursing, patient care, primary care, intervention on the desired population, and it also deals with community assessment and actions regarding the said assessment. It focuses on promotion of health and healthy living, avoidance of degenerative diseases, and the supervision of the illnesses in different ages, both chronic and acute. (UTA 2008) The author has chosen a specialized field in cardiology because in reference to the data given by the Centers for Diseases Control and Prevention for 2005 Death data table C, the leading cause of death in the United States is cardiovascular related. According to the statistics, 652, 091 deaths were related to heart problems (CDC 2008). The stated data poses a major concern that there is a very big problem related to cardiovascular disorders. In relation to this, the author envisions to help in solving this problem via the career chosen by the author. The family practice nursing with a specialization in cardiology will help the author contribute in building the foundations of a society with healthy cardio vascular systems. Among the probable setting that the author hopes to practice the stated advanced practice nursing role is in the Christ Hospital. It was established for more than 115 years and it was well known to be one of the leading hospitals which continue to promote, plan and innovate for the healthy future of the region. It was noted as one of the best medical institution in the United States for the last few decades consistently. The setting includes 555 beds with more than 1200 physicians and holds the most advanced and sophisticated technology for health care. It is a not-for-profit acute care facility which is supervised by the highly trained specialists that has great passion for health care. It focuses on the services for major surgery, orthopedics, cardiovascular care and other related fields (Christ Hospital 2008). The competencies required for this job ranges from clinical expertise to social relationship within the community. It requires expertise in retrieving records for the data regarding the health, medical history, psychosocial and family records. Ability to conduct physical examination, for the health problems related to the acute and episodic phases are required as well as the ability to interpret the laboratory findings. Provide health assessment to the visited areas or patients and to arrange referrals to other health professional. It is also required to have a knowledge on developing and implementing plans for the supervision of problems in the acute and episodic problems of the assessed in and out patients. In the competencies required to assess patients also include ability to enclose screening evaluation for the cardiovascular health and other relevant information regarding it, distinguishes between normal and abnormal change. Evaluate the pressure of the family or psychosocial factors on patient sickness, situations related to developmental delays and learning disabilities in all ages, reproductive health of both women and men, sexual health, pregnancy, and postpartum care, assess some problems like substance abuse like drugs. Performs and accurately documents appropriate comprehensive or symptom-focused physical assessment on patients of all ages. Recognize health and cardiovascular risk factors of patients of all ages and families in all stages of the family life cycle. Demonstrates proficiency in family assessment; show proficiency in functional assessment of family members. Assesses specific family health needs within the context of community assessment especially the ones that is related to the cardiovascular diseases. Identifies and plans interventions to promote health with families at risk of heart disease (NONPF 2002). Diagnosing of health status focused on the health of heart is also needed, the following competencies are required. Recognize signs and symptoms of acute physical heart disease across the life span. Recognize signs and symptoms of chronic cardiovascular disease across the life span. Evaluates and summarizes collected data for patients of all ages. Plans complete differential diagnoses, with relevance to the epidemiology, environmental and community characteristics, this also includes life stage development and the arrangement seen with increasing age, family, and heart risk factors (NONPF 2002). Upon diagnosis of the members with cardiovascular or heart related diseases. The planning caring and management of the treatment of the disease will proceed which requires a lot of competencies indicated below. It is required for the nurse to have abilities to provide health information for protection, health promotion, formulate strategies for the intervention and prevention of the cardiovascular diseases which aims in improving the cardiovascular system of the family, requires a knowledge on how to treat acute and chronic of cardiovascular diseases in all ages to minimize the risk of developing complications and increase quality of living, prescribe proper medication for the pharmacodynamics and pharmacokinetics, adapts care for to meet the needs of the at-risk patients, evaluate the effectiveness of the plan in relation to the plans made for the at-risk group. Assist the members of the family of the cardiovascular disorder patient, provide referrals to the health care professionals that can support the treatment of the heart disease, and apply the study regarding the idea that is family centered and can supply positive change in the health of the family. Family or Population Health Promotion Theories Models The family nurse practitioner specialized in the cardiology focuses on promoting health in relation to individual level and the family level. The health promotion theory that is suitable for the family nurse practitioner in the individual level is the Health Belief Model which focuses on the person’s perception of the possible risk and the evaluation of the actions that would prevent the problem from occurring again. In this case, the author’s future interaction with individuals who are at-risk to cardiovascular diseases will give her chance to use the said model in promoting the health information. Upon approaching, an at-risk patient, the author will be discussing the perceived susceptibility of the subject to cardiovascular diseases and the initial reaction of the patient will more likely to be curios. The next part is the explanation of the perceived severity and the possible consequences of the CVD in the patient; the next step is to discuss with the patient the possible benefits of positive action. In such case, the patient will soon realize the benefits of the perceived action. And will arrive eventually on the conclusion that the patient should consider on performing the perceived actions that could give benefits. The author also considers another theory of which the community level is involved. The community organization is theory which focuses the involvement of the members of the community in evaluating health problems. Upon interaction within community sites, the author will soon be empowering these families in relation to the participation in campaigns for heart related problems. The participation of the community and the relevance of the selected issue to the problem of the community like the cardiovascular diseases will greatly enhance the active development of the community. The most important activity that the author can do is the critical consciousness that she will be spreading in the community (HPA 2008). Agency and Financing of APN Practice The Christ Hospital will be the institution where the author hopes to apply in the mere future it was the medical establishment that was considered in this paper. It was established for more than 115 years and it was well known to be one of the leading hospitals which continue to promote, plan and innovate for the healthy future of the region. It was noted as one of the best medical institution in the United States for the last few decades consistently. The setting includes 555 beds with more than 1200 physicians and holds the most advanced and sophisticated technology for health care. It is a not-for-profit acute care facility which is supervised by the highly trained specialists that has great passion for health care. It focuses on the services for major surgery, orthopedics, cardiovascular care and other related fields (Christ Hospital 2008). The mission of the Christ Hospital is to lead the region in giving the excellent experience in health care especially the personalized one while forwarding clinical excellence, technology and education. The role that the author will be holding will help the institution in a way of providing personalized health care especially in the cardiology patients. The author’s expertise will also help the institution in advancing clinical excellence especially in the field of cardiology. The role will be financially supported by the hospital or allied services institutions relating to cardiology. In the specific case, the Christ Hospital will be responsible for the financial support of the role. The nurse practitioner in the said institution is included in the employee pay. Some stakeholders that can support the role are the health related institutions, hospitals, clinics, nurse organizations and cardiology specialty centers. The role of family practice nurse practitioner goes beyond the limits of a staff nurse which will promote personal and professional growth. The specialization in cardiology will greatly help in the regression of cardiovascular disease cases in the United States. Thus the APN role stated above will surely benefit not only the author but also the society at large.

Islamic Banking Resistance to Securization

Islamic Banking Resistance to Securization Islamic Compliant ABSTRACT Receivables securitization is a vital financial instrument which has faced some resistance in the Islamic world with the exception of Malaysia with the result that its role in Islamic finance is as yet underdeveloped. The reasons behind this resistance are relatively ambiguous, and have not been thoroughly explored, as the existing Islamic literature offers only touches on the topic on a superficial level. This study traces the roots of the concerns of Islamic academics, opens them up to thorough discussion and proposes an objective way forward. While this study identifies three justifications behind the Islamic resistance to receivables securitization that relate to fiat money, gharar (risk), and usury, it could be argued that the key issue driving these objections is a misapplication of the Islamic rules governing gold and silver to fiat money. There is, however, a strong basis for arguing that fiat money is merely a ‘legal commodity and should be regulated by the Islamic commodity rules, removing the obstacle to the use of receivable securitization. Concerns regarding gharar (risk) and interest are valid but can be safely managed by developing an ethics-based form of securitization that protects against such risks as gambling or inability to deliver. In addition, securitization transactions could be structured on usury-free models. Finally, an attention should be drawn to the methodology used by Islamic intellectuals to apply Islamic rules to contemporary concepts. Methodologies need to be re-examined to ensure that they are true to the spirit of Islamic teaching. Introduction While it is still a relatively new concept, securitization has become a vital and effective instrument for raising funds, boosting liquidity, managing risk and allocating capital efficiently. Nevertheless, in a world where consumption has become a way of life and gambling has been raised to the status of a profession or an art form, securitization poses a silent but real threat to economies. The question has been raised as to whether or not securitization has played a role in the recent financial crisis.[1] It is argued that securitization encourages excessive borrowing, limits oversight by lenders and encourages dependence by borrowers, as well as creating what some call the illusion of liquidity.[2] Undoubtedly, the provision of loans and securitization facilitates the realization of individuals goals and creates investment opportunities. But due to the sensitivity of these tools, a disciplined and ethical environment is needed in order to protect against their misuse. This is, according to Hugo Bouleau, what is offered by the principles of Islamic finance[3]; indeed, Islam provides a comprehensive ethical way of life including commerce and investment. Islamic financial system solidly links between real assets, profits and risks. A financial transaction which does not provide these linkages may fail in the Shariah compliance test. However, assessing compliance is not always as simple as it may appear. While the foundations of the Islamic financial system were laid centuries ago, there are still divergences in scholar views concerning details, which has created serious challenges and generated debate in terms of identifying and understanding the gaps in applying the foundations of Islamic Shariah on the contemporary concepts. This has slowed the process of formulating a definite Islamic regulatory framework for financial industry particularly in a purely capitalist world. As one the most debatable issues under Islamic law; this study focuses on the Islamic regulatory framework of receivable securitization which is acknowledged by Shariah scholars and Islamic finance professionals as very important instrument, but at the same time as a critical and sensitive field. The framework of Shariah compliant receivable securitization is not yet firmly established due to the novelty of many economic and financial concepts, the lack of the Shariah scholars consensus on understanding and accommodating contemporary aspects, and, arguably, the expanded application of sadd al-dharai approach which, generally, means banning any permissible activity if it might lead to impressible result, contrary to the Shariah maxim the norm in regards transactions is that of permissibility which simply means that, any transaction, in principal, is permissible until a contradiction to Shariah is proven. This dilemma has given rise to two major directions of thought with regard to an Islamic perspective on receivable securitization; one is originated in Malaysia and the other, generally speaking, representing the rest of the Islamic world. As a result of these factors, receivable securitization is less developed in Islamic financial markets than in the conventional. In fact, individuals or institutions who seek to comply with Shariah rules can find themselves lost in a maze of contradicting views and fatwas (considered opinions of Shariah scholars). In response to this reality, this study provides an analytical examination of the status of Shariah compliant receivable securitization for the sake of identifying the roots of the gaps and challenges. After all, it is not a study specializing in Shariah but an academic and professional tracing, using a simple problem solving technique, of the realistic causes behind challenging receivable securitization under Islamic law. It is a vital step for a clear understanding of the problem toward proposing a rational way forward. The study addresses these issues in three chapters. Chapter One, An introductory platform, establishes the significance of the research topic, reviews the existing literature and demonstrates the value added by this study. Chapter Two, General Background and key underlying concepts, provides an introduction to the concepts of receivable securitization as well as the Islamic financial system in order to assist the reader in engaging with the ideas presented. Chapter Three, the Islamic regulatory framework for receivable securitization, provides a conceptual introduction to Shariah compliant securitization, and examines the roots of causes that behind challenging of the receivables securitization under Islamic law, where Chapter Four, Proposal for a way forward, provides a global proposal for embracing an ethical and disciplined Islamic compliant receivables securitization. Finally, the Conclusion summarizes the overall inputs and outputs of the study including its question and results. Chapter One: AN INTRODUCTORY PLATFORM 1.1 Why it matters Globalization is inescapable. The faiths, cultures and nations of the world are being gathered together into a single economy and trade pool. Despite the diversity of identities, economies are compelled to meet around the global table. At the end, the wisest strategy for any ideological group is to find a way to accommodate international developments while remaining true to its principles and convictions. Islam is the second largest religion of the world, with its followers estimated at 21% of the worlds population.[4] Muslim communities in historically non Muslim countries are growing rapidly. For instance, a 2001 census in the UK indicated a population of 1.591 million Muslims[5]. Although the next census will be in 2011, Richard Kerbaji reported that the growth of Muslim population is 10 times faster than that of other communities within the UK.[6] Independent of radical trends, the significance of Islam as a major world religion and the impact of Muslims as a community within the global context have made Islamic considerations a top priority on political and economic agendas within the international arena. Likewise, the global Muslim community cannot afford to be passive but must rationally and objectively engage with global changes and challenges. In a lecture given in 1993, H.R.H. the Prince of Wales stressed the fact that: †¦ The Islamic and Western world can no longer afford to stand apart from a common effort to solve their common problems†¦ We have to share experiences, to explain ourselves to each other.[7] This is, indeed, the reality of where we find ourselves today. And while interaction between civilizations and national and international factors is unavoidable, fundamental beliefs and inviolable principles will continue to exist which must be understood and respected. From finance perspective, while exact s are not available, broad agreement does exist that the size of the wealth and assets and the wide range of business networks of Muslims, both in Islamic countries and in the rest of the world, is significant. The demand for financial services which comply with Islamic law can be expected to increase tremendously, particularly following the recent global recession. It is estimated that there will be about 15 20 % annual growth in the Islamic financial products, with equity fund assets climbing to US $53 billion by 2010.[8] It is clear that a direct correlation exists: whenever the demand for banking products increases, banking debts multiply. This heightens credit risk and threatens the availability of capital and liquidity. Basel II, which represents the international consensus on capital standards, embraces securitization as an effective and helpful tool in this regard.[9] However, unless Muslim intellectuals invest considerable energy in developing clear and reliable regulatory frameworks which comply with Islamic law for the newborn concepts including securitization, Islamic banks will continue to experience difficulties in the areas of liquidity and risk management, and will fail to meet the requirements for international convergence. From another angle, the recent global economic crisis has exposed the fragility of capitalist economics. According to Sam Whimster â€Å"[c]apitalism itself is without morality†¦The finance capitalism of today has some startlingly irrational features and is no longer led by those who possess the requisite moral probity†.[10] As the need for more disciplined and ethical systems becomes increasingly apparent, the potential of Islamic finance as an alternative to conventional finance is gaining attention. As a result, broader awareness is developing in the international community regarding the features of Islamic finance and securitization. Toby Birch comments that the Islamic principles established by a desert-dwelling Bedouin fourteen hundred years ago embody the timeless wisdom which holds the key to the financial crises of today.[11] The recognition of the advantages of Islamic financial systems on objective and professional terms by non Muslim experts places a serious responsibility on Muslims experts and researchers to address and resolve the internal challenges which currently impede the development of Shariah compliant products, including receivable securitization. 1.2 Literature review It could be stated that a wealth of studies on Islamic finance can be found in libraries and on the online resources. In addition, Arabic and English literature typically have many publications on securitization within its conventional sense. However, studies focussing specifically on Shariah compliant receivable securitization, and its underlying challenges, are, noticeably few. The works which have, in fact, played the greatest role in shaping the dominant Islamic view on receivable securitization, are the many working papers that have been submitted at Islamic scholarly forums and conferences, particularly the annual conferences of the International Islamic Fiqh Academy, and the Islamic Fiqh Academy of Muslim World League. For instance, at its 19th conference in April 2009, the International Islamic Fiqh Academy discussed a group of working papers specifically focussing on, or closely related to, receivable securitization. However, by and large, the structures and approach of the papers were virtually identical, which is to be expected as the authors shared the same perspective on the same issue. In terms of its significance, securitization represents one of the most important innovations in the finance sector. It is, as Leon Kendall puts it, â€Å"changing the face of American and world of finance†.[12] This view is shared by many experts in the field, who see securitization as an essential component of the modern financial system. Vinod Kothari makes an identical statement to that of Kendall, and suggests that securitization is more than funding instrument that works beyond financial limitations.[13] This admiration for securitization can be attributed to the advantages which, according to Charles Ston and Anne Zissu, provides in alleviating balance sheet pressure,[14] transferring and fragmentizing credit risk, raising capital and securing liquidity. The importance of securitization is recognized by Islamic Intellectuals. AbdulBari Mushaal points out that receivable securitization is an important instrument in that it provides lenders rapid turnaround on their capital in order to re-inject it into investment and production operations.[15] Fuad Muhaisen identifies nine advantages provided by securitization, including its role in funding and financing privatization projects.[16] Furthermore, the working papers mentioned above which were submitted at the 19th conference of International Islamic Fiqh Academy demonstrate a common acknowledgment of the importance of receivable securitization in the Islamic world. Despite the worldwide recognition of the importance of securitization, another side of it could be recognized. Lawis Ranieri describes securitization as an adventure that involves a dark side, observing that it has contributed to destabilizing the thrift system and industry.[17] This represents one factor in the argument that securitization has been a contributing factor in the global credit crash. Thrift and credit are connected while they are also key components in the greater economic system. Securitization arguably promotes excessive credit creation,[18] encourages a culture of consumerism, and has contributed to the global financial crisis. Niall Ferguson argues that the crisis was caused by the rise and fall of securitized loans.[19] While this assertion deserves consideration, it is possible that it was not securitization but the absence of the ethics that rationalize its use, which was the problem. Islamic finance principles offer a framework with the capacity to fill this void. In his book ‘Islamic Finance Standards: Solving the Global Financial Crisis, Samir Kantaji provides a practical analysis of the global crisis and suggests that Islamic principles of finance provide the ethical and disciplined environment necessary to prevent such a future financial crash.[20] While the principles of Islamic finance were established more than fourteen hundred years ago, they do offer, as implied by Hugo Bouleau, solutions to todays banking problems.[21] The question, however, is whether Shariah scholars have the flexibility to apply these principles meaningfully to contemporary financial concepts, in general, and to securitization, in particular. The dominant philosophy of Shariah scholars is sadd al-dharai (banning any permissible activity if it might lead to an impressible result). This approach has been stressed by the International Islamic Fiqh Academy in its Resolution No. 92 (9/9), issued in April 1995.[22] However, many Islamic intellectuals oppose broadening the application of sadd al-dharai. Akhtar Zaiti emphasizes the contrasting Shariah maxim, â€Å"the norm in regards transactions in that of permissibility†, and the fact that the financial principles, maxims and frameworks provided by the Quran and Sunnah are not detailed because the finance industry and human interests vary over time. She argues that Muslims should be guided by this principle of permissibility as they engage with evolving financial concepts, including securitization, except in cases which present an obvious contradiction with the Quran and Sunna.[23] Similarly, Fuad Muhaisen argues that Islam clearly identifies which activities are prohibited, leaving room for innovation and development over the course of time, and that this is how contemporary financial concepts should be approached.[24] Regardless of the argument, what is certain is that the convictions of some Shariah scholars, coupled with the rapid development of finance and economic concepts and the impossibility of accurately foreseeing all of their potential implications, impede the development of Islamic financial systems. Studies addressing Shariah compliant receivable securitization typically roam around avoidance of Riba (usury) and Gharar (Risk), issues which are subdivided into more focused points such as profit-risk share, tangible asset connection and other underlying sub-issues. However, sale of loan is considered the cornerstone of employing receivable securitization, and is the subject of vigorous debate by Islamic intellectuals. Sale of loan was a topic of discussion at the 1998 International Islamic Fiqh Academy conference. The conference concluded that the sale of loan to a third party, whether at a current or deferred price, is strictly prohibited in Islam because it leads to Riba (usury).[25] But at its 2006 conference, International Islamic Fiqh Academy demonstrated greater flexibility and determined four permissible models for sale of Loan,[26] A similar resolution was issued by Islamic Fiqh Academy of MWL at its 2002 conference stating that some sale of loan models are prohibited because they lead to riba (usury) or Gharar (risk) of the inability of delivery, accordingly, receivable securitization is prohibited.[27] It should be noticed that loan in Islam could be goods, services, usufructs or receivables (cash flow), but none of the mentioned resolutions accepted the sale or securitization of receivables. There is no consensus regarding the prohibition of sale of loan. For example, in his book ‘The theory of loan in Islamic fiqh Ahmed Al-Hajj discusses the different viewpoints supporting and opposing sale of loan and concludes that it is permissible provided that delivery of the sale (repayment of the loan) is not possible[28]. This approach has been embraced by the Malaysian Securities Commission Shariah Advisory Council since 1996 which opened the door wide to receivable securitization in this Islamic country[29], which is, according to Rashid Al-Khan, has been widely criticized by many Middle Eastern scholars.[30] Furthermore, Saiful Rosly and Mahmood Sanusi point out that trading of Islamic bond structured on a sale of loan basis in Malaysia has been found impermissible by the majority of Shariah scholars.[31] Apparently, there is a clear disagreement over the key issues involved in achieving effective Shariah compliant receivable securitization. However, this does not mean that Shariah compliant receivable securitization cannot be utilized until the dilemma is resolved. Nor does it mean that the current position of Shariah scholars is final. The possibility always exists of renegotiating the interfaces that are developed between Shariah and developing technical concepts. The literature already includes a number of publications which discuss the foundational concepts of Islamic finance and attempt to develop an Islamic framework for securitization which brings together Islamic principles and finance innovation. But gaps remain in terms of scope and approaches of studies. To put differently, the existing Islamic literature offers only a superficial and indirect exploration of the reasons for which the permissibility of receivable securitization has been challenged under Islamic law, and handles this discussion within previous immature viewpoints. 1.3 Scope and significance of the study This study provides a panoramic view of the current situation of receivable securitization within the Islamic law. It discusses the dominant Islamic intellectuals approach that banes it, and tackles the question of what are the realistic reasons of challenging receivables securitization under Islamic law. In order to add value, this study is a digging deeper into the roots of the argument. Using a simple problem solving techniques, it traces those roots to out what is, precisely, reason behind the resistance of Shariah scholar to accepting receivables securitization. Differently, this study openly discusses the issues, and it is completely built of the maxim that in principal, any transaction is permissible until a contradiction to Shariah is proven. Furthermore, the study reflects rational viewpoint regarding riba (usury) concept which has been unreasonably exaggerated over the time. Notwithstanding, this study must not be read as a revolt against any of the Islamic schools of thought or organizations, but an objective attempt to re-pull the attention to realistic causes of prohibition of receivables securitization under Islamic law. Overall, this study helps to identify areas where religious perspectives and technical practice do not yet interface with regard to receivable securitization, and spells out the reforms needed to the approach of Islamic intellectuals methodology in terms of Islamic financing in general and securitization in particular. Chapter Two: General Background and Key Underlying Concepts 2.1 Introduction In order to understand the roots of the challenges of Islamic compliant receivable securitization, this chapter highlights key aspects of securitization as created and developed by the conventional finance industry and, on the other hand, the related key aspects of Shariah and Islamic finance. 2.2 An introduction to Securitization 2.2.1 Origin of Securitization While Vinod Kothari states that securitization has a two hundred year history in Denmark and suggests that therefore Denmark should be considered its birthplace, he admits the fact that securitization as a structured finance instrument was developed in the US.[32] Indeed, credit for the innovation of securitization is due the US government which initiated the first mortgage-backed securitization transaction through the Government National Mortgage Association (GNMA) in 1970.[33] The introduction of securitization was promoted by a severe shortage of liquidity which caused by a withdrawal of traditional lenders who turned to more profitable investments.[34] However, the perception of securitization as a magic wand that could make fund and liquidity problems disappear, together with a credit crush, dramatically expanded the usage of securitization. In the years since, extensive experience and lessons have been, and are being, learned in tailoring and structuring securitization transactions. 2.2.2 Concept of Securitization Little documentation exists regarding the origin of the term ‘securitization. Lewis Ranieri claimed that this term was not a real word, and it was used for the first time by the Wall street Journal in 1977.[35] As an emerging concept, therefore, securitization does not yet have a universally accepted definition. According to Leon Kendall, securitization is a process of packaging individual loans and other debt instruments, converting the package into a security or securities, and enhancing their credit status or rating to further their sale to third-party investors.[36] While this definition describes the process of securitization, Peter Jeffrey focuses on the objective of securitization and suggests that in its simplest form it is a secured borrowing, whereby a company borrows against an asset or group of assets.[37] This is exactly what was concluded by a United Kingdom VAT Duties Tribunal in Capital One Bank (Europe) Plc v Revenue and Customs [2005] when it stated that secu ritization is â€Å"nothing more than a sophisticated means of borrowing money†.[38] From a different angle, Vinod Kothary called attention to the philosophy of securitization and pointed out that it is in its widest sense is every process that converts financial relation into a transaction. However, he defined the term asset securitization as a device of structured financing in which an entity seeks to pool together its interest in identifiable cash flows over time, transfer the same to investors either with or without the support of further collaterals, and thereby achieve the purpose of financing.[39] Securitization can be also defined as â€Å"The transformation of a loan portfolio or other assets such as property into securities that can be sold in the primary market and traded in the secondary market†.[40] Another definition that is ascribed to Ernst and Young states that securitization is: â€Å"Any transaction under which a securitization vehicle directly or indirectly acquires receivables or bears risk associated with commitments taken or activities carried out by third parties and issues in exchange securities whose return is directly linked to the risks borne†.[41] While clearly many definitions exist for the terms ‘securitization and ‘asset securitization'[42] which describe them in either the simplest or broadest terms and approach the concept from various perspectives, all concur that securitization is a process of packaging and transforming a specific bulk of assets through a special purpose vehicle(s) into marketable securities for the purpose of liquidity and/or risk management. A key point to be addressed here is that the term ‘asset securitization is commonly used to describe the process of securitizing financial claims or receivables, notwithstanding the fact that balance sheets include other types of assets that can be subject to securitization, particularly under Islamic law (i.e. lease structure). In this context, the verb securitize, according to the Concise Oxford Dictionary means to convert an asset, specially a loan, into marketable securities, typically for the purpose of raising cash.[43] This confirms the fact that other assets can be securitized but accounts receivable and loans are the most common type of securitizable assets, perhaps because they constitute the bulk of the assets of financial firms and credit institutions. 2.2.3 Structure of and Parties to Receivable Securitization Receivable securitization can be structured on a typical funded, synthetic or collateralized debt obligation (CDO) structure.[44] However, in order to avoid dispersion and complexity; the focus here will be on the typical funded structure. A typical funded structure of receivables securitization (see 1) basically involves borrowers, an originator, an issuer and investors. These form the backbone of a typical funded securitization structure; nevertheless, a credit enhancer, rating agency and an underwriter/lead manager are also considered key players for the sake of regulatory compliance and in order to introduce an attractive opportunity for the targeted investors. Borrowers: Given that receivable securitization is a process that deals with loans; borrowers are considered the cornerstone of a securitization transaction. As they are responsible for paying the underlying loans, structuring a receivable securitization must take into account their credit capability. Some regulatory frameworks may require their consent. Originator: In receivable securitization, lenders or creditors are usually the originators of a securitization transaction. The originator can be a governmental agency or any financial, credit or investment institution such as a commercial bank, investment bank or captive finance company. The role of the originator does not start only at the point of the agreement with the SPV, but begins earlier,[45] specifically, from the moment that the originator recognizes the need for, or the feasibility of, securitizing a bulk of receivables. The origination process includes many steps involving, but not limited to, planning and structuring the securitization transaction, identifying and segregating the assets, notifying the borrowers, establishing the SPV(s), concluding the consultation and services agreements and handling any mediation activities between the borrowers and the SPV. Furthermore, the originator might continue to play the role of ‘servicer, providing, among other services, customer services, payment and collection services as well as default management and collateral liquidation.[46] An issuer: The key point of the securitization process is the issuance of the securities that resulted from pooling and transforming the assets. This issuance is usually performed by an SPV, which is normally a new and independent entity established for the purpose of taking over the position of the originator as a lender or creditor in the credit relationship. In other words, once a securitization takes place, borrowers no longer have a credit relationship with the originator, but rather with the SPV. A rating agency: For a successful securitization, a good rating of the credit quality of the transaction should be secured from a very well-established rating agency. Professional rating agencies usually provide a professional evaluation of the type and quality of the underlying assets, including any related risks.[47] Credit enhancer: Credit enhancement is a very important process for attracting investors to be involved in a securitization transaction. It provides them with a certain level of protection in the event that the originator fails to meet his commitments or the cash flows for the securitized assets are insufficient to cover the projected return of the securities. Another point, which will be discussed further below, is that credit enhancement can be secured internally through guarantees provided by the originator or on the basis of the quality of the securitized assets. Having noted that, a credit enhancer appears as a party in a securitization structure only if the credit enhancement is provided by a third party enhancer (i.e. by a letter of credit). In such a case, the enhancer must have a high credit rating in order to secure the confidence of the investors. Underwriter / lead manager: The offering of the issued securities public or to private investors is usually handled by a professional firm, typically, a bank which plays the role of underwriter in the securitization process. The key role of the underwriter is to manage the process of selling the securities to investors in order to achieve the securitizations targets. It should be noted that the trend among financial professionals today is to call this party a ‘lead manager, rather than an ‘underwriter, because the guarantee provided is, in principal, a commitment to make every effort to ensure that the securities are sold. There is, however, no guarantee in terms of the prices and quantity of the securities sold.[48] Investors: The ultimate objective of the securitization process is to transfer risk to investors and/or to generate liquidity from them. A securitization transaction may target specific kinds of investors through a private placement process or open it to the public. In both cases, the key investors are usually fund managers, pension funds, governmental funds, commercial banks and insurance companies.[49] 2.2.4 Process of Securitization It goes without saying that the securitization process involves detailed, complex and overlapping steps. In this paper, however, the focus is on the key steps which have strong significance in terms of the research objectives, namely, the packaging and transferring of the underlying receivables as well as the issuance of securities. 2.2.4.1 Packaging the Underlying Receivables The most vital step in a securitization transaction is packaging the underlying assets. This begins with identifying the targeted receivables, which may include any assets that generate cash flows over a period of time, such as mortgages, credit cards loans, consumers loans, corporate loans, auto loans, s Islamic Banking Resistance to Securization Islamic Banking Resistance to Securization Islamic Compliant ABSTRACT Receivables securitization is a vital financial instrument which has faced some resistance in the Islamic world with the exception of Malaysia with the result that its role in Islamic finance is as yet underdeveloped. The reasons behind this resistance are relatively ambiguous, and have not been thoroughly explored, as the existing Islamic literature offers only touches on the topic on a superficial level. This study traces the roots of the concerns of Islamic academics, opens them up to thorough discussion and proposes an objective way forward. While this study identifies three justifications behind the Islamic resistance to receivables securitization that relate to fiat money, gharar (risk), and usury, it could be argued that the key issue driving these objections is a misapplication of the Islamic rules governing gold and silver to fiat money. There is, however, a strong basis for arguing that fiat money is merely a ‘legal commodity and should be regulated by the Islamic commodity rules, removing the obstacle to the use of receivable securitization. Concerns regarding gharar (risk) and interest are valid but can be safely managed by developing an ethics-based form of securitization that protects against such risks as gambling or inability to deliver. In addition, securitization transactions could be structured on usury-free models. Finally, an attention should be drawn to the methodology used by Islamic intellectuals to apply Islamic rules to contemporary concepts. Methodologies need to be re-examined to ensure that they are true to the spirit of Islamic teaching. Introduction While it is still a relatively new concept, securitization has become a vital and effective instrument for raising funds, boosting liquidity, managing risk and allocating capital efficiently. Nevertheless, in a world where consumption has become a way of life and gambling has been raised to the status of a profession or an art form, securitization poses a silent but real threat to economies. The question has been raised as to whether or not securitization has played a role in the recent financial crisis.[1] It is argued that securitization encourages excessive borrowing, limits oversight by lenders and encourages dependence by borrowers, as well as creating what some call the illusion of liquidity.[2] Undoubtedly, the provision of loans and securitization facilitates the realization of individuals goals and creates investment opportunities. But due to the sensitivity of these tools, a disciplined and ethical environment is needed in order to protect against their misuse. This is, according to Hugo Bouleau, what is offered by the principles of Islamic finance[3]; indeed, Islam provides a comprehensive ethical way of life including commerce and investment. Islamic financial system solidly links between real assets, profits and risks. A financial transaction which does not provide these linkages may fail in the Shariah compliance test. However, assessing compliance is not always as simple as it may appear. While the foundations of the Islamic financial system were laid centuries ago, there are still divergences in scholar views concerning details, which has created serious challenges and generated debate in terms of identifying and understanding the gaps in applying the foundations of Islamic Shariah on the contemporary concepts. This has slowed the process of formulating a definite Islamic regulatory framework for financial industry particularly in a purely capitalist world. As one the most debatable issues under Islamic law; this study focuses on the Islamic regulatory framework of receivable securitization which is acknowledged by Shariah scholars and Islamic finance professionals as very important instrument, but at the same time as a critical and sensitive field. The framework of Shariah compliant receivable securitization is not yet firmly established due to the novelty of many economic and financial concepts, the lack of the Shariah scholars consensus on understanding and accommodating contemporary aspects, and, arguably, the expanded application of sadd al-dharai approach which, generally, means banning any permissible activity if it might lead to impressible result, contrary to the Shariah maxim the norm in regards transactions is that of permissibility which simply means that, any transaction, in principal, is permissible until a contradiction to Shariah is proven. This dilemma has given rise to two major directions of thought with regard to an Islamic perspective on receivable securitization; one is originated in Malaysia and the other, generally speaking, representing the rest of the Islamic world. As a result of these factors, receivable securitization is less developed in Islamic financial markets than in the conventional. In fact, individuals or institutions who seek to comply with Shariah rules can find themselves lost in a maze of contradicting views and fatwas (considered opinions of Shariah scholars). In response to this reality, this study provides an analytical examination of the status of Shariah compliant receivable securitization for the sake of identifying the roots of the gaps and challenges. After all, it is not a study specializing in Shariah but an academic and professional tracing, using a simple problem solving technique, of the realistic causes behind challenging receivable securitization under Islamic law. It is a vital step for a clear understanding of the problem toward proposing a rational way forward. The study addresses these issues in three chapters. Chapter One, An introductory platform, establishes the significance of the research topic, reviews the existing literature and demonstrates the value added by this study. Chapter Two, General Background and key underlying concepts, provides an introduction to the concepts of receivable securitization as well as the Islamic financial system in order to assist the reader in engaging with the ideas presented. Chapter Three, the Islamic regulatory framework for receivable securitization, provides a conceptual introduction to Shariah compliant securitization, and examines the roots of causes that behind challenging of the receivables securitization under Islamic law, where Chapter Four, Proposal for a way forward, provides a global proposal for embracing an ethical and disciplined Islamic compliant receivables securitization. Finally, the Conclusion summarizes the overall inputs and outputs of the study including its question and results. Chapter One: AN INTRODUCTORY PLATFORM 1.1 Why it matters Globalization is inescapable. The faiths, cultures and nations of the world are being gathered together into a single economy and trade pool. Despite the diversity of identities, economies are compelled to meet around the global table. At the end, the wisest strategy for any ideological group is to find a way to accommodate international developments while remaining true to its principles and convictions. Islam is the second largest religion of the world, with its followers estimated at 21% of the worlds population.[4] Muslim communities in historically non Muslim countries are growing rapidly. For instance, a 2001 census in the UK indicated a population of 1.591 million Muslims[5]. Although the next census will be in 2011, Richard Kerbaji reported that the growth of Muslim population is 10 times faster than that of other communities within the UK.[6] Independent of radical trends, the significance of Islam as a major world religion and the impact of Muslims as a community within the global context have made Islamic considerations a top priority on political and economic agendas within the international arena. Likewise, the global Muslim community cannot afford to be passive but must rationally and objectively engage with global changes and challenges. In a lecture given in 1993, H.R.H. the Prince of Wales stressed the fact that: †¦ The Islamic and Western world can no longer afford to stand apart from a common effort to solve their common problems†¦ We have to share experiences, to explain ourselves to each other.[7] This is, indeed, the reality of where we find ourselves today. And while interaction between civilizations and national and international factors is unavoidable, fundamental beliefs and inviolable principles will continue to exist which must be understood and respected. From finance perspective, while exact s are not available, broad agreement does exist that the size of the wealth and assets and the wide range of business networks of Muslims, both in Islamic countries and in the rest of the world, is significant. The demand for financial services which comply with Islamic law can be expected to increase tremendously, particularly following the recent global recession. It is estimated that there will be about 15 20 % annual growth in the Islamic financial products, with equity fund assets climbing to US $53 billion by 2010.[8] It is clear that a direct correlation exists: whenever the demand for banking products increases, banking debts multiply. This heightens credit risk and threatens the availability of capital and liquidity. Basel II, which represents the international consensus on capital standards, embraces securitization as an effective and helpful tool in this regard.[9] However, unless Muslim intellectuals invest considerable energy in developing clear and reliable regulatory frameworks which comply with Islamic law for the newborn concepts including securitization, Islamic banks will continue to experience difficulties in the areas of liquidity and risk management, and will fail to meet the requirements for international convergence. From another angle, the recent global economic crisis has exposed the fragility of capitalist economics. According to Sam Whimster â€Å"[c]apitalism itself is without morality†¦The finance capitalism of today has some startlingly irrational features and is no longer led by those who possess the requisite moral probity†.[10] As the need for more disciplined and ethical systems becomes increasingly apparent, the potential of Islamic finance as an alternative to conventional finance is gaining attention. As a result, broader awareness is developing in the international community regarding the features of Islamic finance and securitization. Toby Birch comments that the Islamic principles established by a desert-dwelling Bedouin fourteen hundred years ago embody the timeless wisdom which holds the key to the financial crises of today.[11] The recognition of the advantages of Islamic financial systems on objective and professional terms by non Muslim experts places a serious responsibility on Muslims experts and researchers to address and resolve the internal challenges which currently impede the development of Shariah compliant products, including receivable securitization. 1.2 Literature review It could be stated that a wealth of studies on Islamic finance can be found in libraries and on the online resources. In addition, Arabic and English literature typically have many publications on securitization within its conventional sense. However, studies focussing specifically on Shariah compliant receivable securitization, and its underlying challenges, are, noticeably few. The works which have, in fact, played the greatest role in shaping the dominant Islamic view on receivable securitization, are the many working papers that have been submitted at Islamic scholarly forums and conferences, particularly the annual conferences of the International Islamic Fiqh Academy, and the Islamic Fiqh Academy of Muslim World League. For instance, at its 19th conference in April 2009, the International Islamic Fiqh Academy discussed a group of working papers specifically focussing on, or closely related to, receivable securitization. However, by and large, the structures and approach of the papers were virtually identical, which is to be expected as the authors shared the same perspective on the same issue. In terms of its significance, securitization represents one of the most important innovations in the finance sector. It is, as Leon Kendall puts it, â€Å"changing the face of American and world of finance†.[12] This view is shared by many experts in the field, who see securitization as an essential component of the modern financial system. Vinod Kothari makes an identical statement to that of Kendall, and suggests that securitization is more than funding instrument that works beyond financial limitations.[13] This admiration for securitization can be attributed to the advantages which, according to Charles Ston and Anne Zissu, provides in alleviating balance sheet pressure,[14] transferring and fragmentizing credit risk, raising capital and securing liquidity. The importance of securitization is recognized by Islamic Intellectuals. AbdulBari Mushaal points out that receivable securitization is an important instrument in that it provides lenders rapid turnaround on their capital in order to re-inject it into investment and production operations.[15] Fuad Muhaisen identifies nine advantages provided by securitization, including its role in funding and financing privatization projects.[16] Furthermore, the working papers mentioned above which were submitted at the 19th conference of International Islamic Fiqh Academy demonstrate a common acknowledgment of the importance of receivable securitization in the Islamic world. Despite the worldwide recognition of the importance of securitization, another side of it could be recognized. Lawis Ranieri describes securitization as an adventure that involves a dark side, observing that it has contributed to destabilizing the thrift system and industry.[17] This represents one factor in the argument that securitization has been a contributing factor in the global credit crash. Thrift and credit are connected while they are also key components in the greater economic system. Securitization arguably promotes excessive credit creation,[18] encourages a culture of consumerism, and has contributed to the global financial crisis. Niall Ferguson argues that the crisis was caused by the rise and fall of securitized loans.[19] While this assertion deserves consideration, it is possible that it was not securitization but the absence of the ethics that rationalize its use, which was the problem. Islamic finance principles offer a framework with the capacity to fill this void. In his book ‘Islamic Finance Standards: Solving the Global Financial Crisis, Samir Kantaji provides a practical analysis of the global crisis and suggests that Islamic principles of finance provide the ethical and disciplined environment necessary to prevent such a future financial crash.[20] While the principles of Islamic finance were established more than fourteen hundred years ago, they do offer, as implied by Hugo Bouleau, solutions to todays banking problems.[21] The question, however, is whether Shariah scholars have the flexibility to apply these principles meaningfully to contemporary financial concepts, in general, and to securitization, in particular. The dominant philosophy of Shariah scholars is sadd al-dharai (banning any permissible activity if it might lead to an impressible result). This approach has been stressed by the International Islamic Fiqh Academy in its Resolution No. 92 (9/9), issued in April 1995.[22] However, many Islamic intellectuals oppose broadening the application of sadd al-dharai. Akhtar Zaiti emphasizes the contrasting Shariah maxim, â€Å"the norm in regards transactions in that of permissibility†, and the fact that the financial principles, maxims and frameworks provided by the Quran and Sunnah are not detailed because the finance industry and human interests vary over time. She argues that Muslims should be guided by this principle of permissibility as they engage with evolving financial concepts, including securitization, except in cases which present an obvious contradiction with the Quran and Sunna.[23] Similarly, Fuad Muhaisen argues that Islam clearly identifies which activities are prohibited, leaving room for innovation and development over the course of time, and that this is how contemporary financial concepts should be approached.[24] Regardless of the argument, what is certain is that the convictions of some Shariah scholars, coupled with the rapid development of finance and economic concepts and the impossibility of accurately foreseeing all of their potential implications, impede the development of Islamic financial systems. Studies addressing Shariah compliant receivable securitization typically roam around avoidance of Riba (usury) and Gharar (Risk), issues which are subdivided into more focused points such as profit-risk share, tangible asset connection and other underlying sub-issues. However, sale of loan is considered the cornerstone of employing receivable securitization, and is the subject of vigorous debate by Islamic intellectuals. Sale of loan was a topic of discussion at the 1998 International Islamic Fiqh Academy conference. The conference concluded that the sale of loan to a third party, whether at a current or deferred price, is strictly prohibited in Islam because it leads to Riba (usury).[25] But at its 2006 conference, International Islamic Fiqh Academy demonstrated greater flexibility and determined four permissible models for sale of Loan,[26] A similar resolution was issued by Islamic Fiqh Academy of MWL at its 2002 conference stating that some sale of loan models are prohibited because they lead to riba (usury) or Gharar (risk) of the inability of delivery, accordingly, receivable securitization is prohibited.[27] It should be noticed that loan in Islam could be goods, services, usufructs or receivables (cash flow), but none of the mentioned resolutions accepted the sale or securitization of receivables. There is no consensus regarding the prohibition of sale of loan. For example, in his book ‘The theory of loan in Islamic fiqh Ahmed Al-Hajj discusses the different viewpoints supporting and opposing sale of loan and concludes that it is permissible provided that delivery of the sale (repayment of the loan) is not possible[28]. This approach has been embraced by the Malaysian Securities Commission Shariah Advisory Council since 1996 which opened the door wide to receivable securitization in this Islamic country[29], which is, according to Rashid Al-Khan, has been widely criticized by many Middle Eastern scholars.[30] Furthermore, Saiful Rosly and Mahmood Sanusi point out that trading of Islamic bond structured on a sale of loan basis in Malaysia has been found impermissible by the majority of Shariah scholars.[31] Apparently, there is a clear disagreement over the key issues involved in achieving effective Shariah compliant receivable securitization. However, this does not mean that Shariah compliant receivable securitization cannot be utilized until the dilemma is resolved. Nor does it mean that the current position of Shariah scholars is final. The possibility always exists of renegotiating the interfaces that are developed between Shariah and developing technical concepts. The literature already includes a number of publications which discuss the foundational concepts of Islamic finance and attempt to develop an Islamic framework for securitization which brings together Islamic principles and finance innovation. But gaps remain in terms of scope and approaches of studies. To put differently, the existing Islamic literature offers only a superficial and indirect exploration of the reasons for which the permissibility of receivable securitization has been challenged under Islamic law, and handles this discussion within previous immature viewpoints. 1.3 Scope and significance of the study This study provides a panoramic view of the current situation of receivable securitization within the Islamic law. It discusses the dominant Islamic intellectuals approach that banes it, and tackles the question of what are the realistic reasons of challenging receivables securitization under Islamic law. In order to add value, this study is a digging deeper into the roots of the argument. Using a simple problem solving techniques, it traces those roots to out what is, precisely, reason behind the resistance of Shariah scholar to accepting receivables securitization. Differently, this study openly discusses the issues, and it is completely built of the maxim that in principal, any transaction is permissible until a contradiction to Shariah is proven. Furthermore, the study reflects rational viewpoint regarding riba (usury) concept which has been unreasonably exaggerated over the time. Notwithstanding, this study must not be read as a revolt against any of the Islamic schools of thought or organizations, but an objective attempt to re-pull the attention to realistic causes of prohibition of receivables securitization under Islamic law. Overall, this study helps to identify areas where religious perspectives and technical practice do not yet interface with regard to receivable securitization, and spells out the reforms needed to the approach of Islamic intellectuals methodology in terms of Islamic financing in general and securitization in particular. Chapter Two: General Background and Key Underlying Concepts 2.1 Introduction In order to understand the roots of the challenges of Islamic compliant receivable securitization, this chapter highlights key aspects of securitization as created and developed by the conventional finance industry and, on the other hand, the related key aspects of Shariah and Islamic finance. 2.2 An introduction to Securitization 2.2.1 Origin of Securitization While Vinod Kothari states that securitization has a two hundred year history in Denmark and suggests that therefore Denmark should be considered its birthplace, he admits the fact that securitization as a structured finance instrument was developed in the US.[32] Indeed, credit for the innovation of securitization is due the US government which initiated the first mortgage-backed securitization transaction through the Government National Mortgage Association (GNMA) in 1970.[33] The introduction of securitization was promoted by a severe shortage of liquidity which caused by a withdrawal of traditional lenders who turned to more profitable investments.[34] However, the perception of securitization as a magic wand that could make fund and liquidity problems disappear, together with a credit crush, dramatically expanded the usage of securitization. In the years since, extensive experience and lessons have been, and are being, learned in tailoring and structuring securitization transactions. 2.2.2 Concept of Securitization Little documentation exists regarding the origin of the term ‘securitization. Lewis Ranieri claimed that this term was not a real word, and it was used for the first time by the Wall street Journal in 1977.[35] As an emerging concept, therefore, securitization does not yet have a universally accepted definition. According to Leon Kendall, securitization is a process of packaging individual loans and other debt instruments, converting the package into a security or securities, and enhancing their credit status or rating to further their sale to third-party investors.[36] While this definition describes the process of securitization, Peter Jeffrey focuses on the objective of securitization and suggests that in its simplest form it is a secured borrowing, whereby a company borrows against an asset or group of assets.[37] This is exactly what was concluded by a United Kingdom VAT Duties Tribunal in Capital One Bank (Europe) Plc v Revenue and Customs [2005] when it stated that secu ritization is â€Å"nothing more than a sophisticated means of borrowing money†.[38] From a different angle, Vinod Kothary called attention to the philosophy of securitization and pointed out that it is in its widest sense is every process that converts financial relation into a transaction. However, he defined the term asset securitization as a device of structured financing in which an entity seeks to pool together its interest in identifiable cash flows over time, transfer the same to investors either with or without the support of further collaterals, and thereby achieve the purpose of financing.[39] Securitization can be also defined as â€Å"The transformation of a loan portfolio or other assets such as property into securities that can be sold in the primary market and traded in the secondary market†.[40] Another definition that is ascribed to Ernst and Young states that securitization is: â€Å"Any transaction under which a securitization vehicle directly or indirectly acquires receivables or bears risk associated with commitments taken or activities carried out by third parties and issues in exchange securities whose return is directly linked to the risks borne†.[41] While clearly many definitions exist for the terms ‘securitization and ‘asset securitization'[42] which describe them in either the simplest or broadest terms and approach the concept from various perspectives, all concur that securitization is a process of packaging and transforming a specific bulk of assets through a special purpose vehicle(s) into marketable securities for the purpose of liquidity and/or risk management. A key point to be addressed here is that the term ‘asset securitization is commonly used to describe the process of securitizing financial claims or receivables, notwithstanding the fact that balance sheets include other types of assets that can be subject to securitization, particularly under Islamic law (i.e. lease structure). In this context, the verb securitize, according to the Concise Oxford Dictionary means to convert an asset, specially a loan, into marketable securities, typically for the purpose of raising cash.[43] This confirms the fact that other assets can be securitized but accounts receivable and loans are the most common type of securitizable assets, perhaps because they constitute the bulk of the assets of financial firms and credit institutions. 2.2.3 Structure of and Parties to Receivable Securitization Receivable securitization can be structured on a typical funded, synthetic or collateralized debt obligation (CDO) structure.[44] However, in order to avoid dispersion and complexity; the focus here will be on the typical funded structure. A typical funded structure of receivables securitization (see 1) basically involves borrowers, an originator, an issuer and investors. These form the backbone of a typical funded securitization structure; nevertheless, a credit enhancer, rating agency and an underwriter/lead manager are also considered key players for the sake of regulatory compliance and in order to introduce an attractive opportunity for the targeted investors. Borrowers: Given that receivable securitization is a process that deals with loans; borrowers are considered the cornerstone of a securitization transaction. As they are responsible for paying the underlying loans, structuring a receivable securitization must take into account their credit capability. Some regulatory frameworks may require their consent. Originator: In receivable securitization, lenders or creditors are usually the originators of a securitization transaction. The originator can be a governmental agency or any financial, credit or investment institution such as a commercial bank, investment bank or captive finance company. The role of the originator does not start only at the point of the agreement with the SPV, but begins earlier,[45] specifically, from the moment that the originator recognizes the need for, or the feasibility of, securitizing a bulk of receivables. The origination process includes many steps involving, but not limited to, planning and structuring the securitization transaction, identifying and segregating the assets, notifying the borrowers, establishing the SPV(s), concluding the consultation and services agreements and handling any mediation activities between the borrowers and the SPV. Furthermore, the originator might continue to play the role of ‘servicer, providing, among other services, customer services, payment and collection services as well as default management and collateral liquidation.[46] An issuer: The key point of the securitization process is the issuance of the securities that resulted from pooling and transforming the assets. This issuance is usually performed by an SPV, which is normally a new and independent entity established for the purpose of taking over the position of the originator as a lender or creditor in the credit relationship. In other words, once a securitization takes place, borrowers no longer have a credit relationship with the originator, but rather with the SPV. A rating agency: For a successful securitization, a good rating of the credit quality of the transaction should be secured from a very well-established rating agency. Professional rating agencies usually provide a professional evaluation of the type and quality of the underlying assets, including any related risks.[47] Credit enhancer: Credit enhancement is a very important process for attracting investors to be involved in a securitization transaction. It provides them with a certain level of protection in the event that the originator fails to meet his commitments or the cash flows for the securitized assets are insufficient to cover the projected return of the securities. Another point, which will be discussed further below, is that credit enhancement can be secured internally through guarantees provided by the originator or on the basis of the quality of the securitized assets. Having noted that, a credit enhancer appears as a party in a securitization structure only if the credit enhancement is provided by a third party enhancer (i.e. by a letter of credit). In such a case, the enhancer must have a high credit rating in order to secure the confidence of the investors. Underwriter / lead manager: The offering of the issued securities public or to private investors is usually handled by a professional firm, typically, a bank which plays the role of underwriter in the securitization process. The key role of the underwriter is to manage the process of selling the securities to investors in order to achieve the securitizations targets. It should be noted that the trend among financial professionals today is to call this party a ‘lead manager, rather than an ‘underwriter, because the guarantee provided is, in principal, a commitment to make every effort to ensure that the securities are sold. There is, however, no guarantee in terms of the prices and quantity of the securities sold.[48] Investors: The ultimate objective of the securitization process is to transfer risk to investors and/or to generate liquidity from them. A securitization transaction may target specific kinds of investors through a private placement process or open it to the public. In both cases, the key investors are usually fund managers, pension funds, governmental funds, commercial banks and insurance companies.[49] 2.2.4 Process of Securitization It goes without saying that the securitization process involves detailed, complex and overlapping steps. In this paper, however, the focus is on the key steps which have strong significance in terms of the research objectives, namely, the packaging and transferring of the underlying receivables as well as the issuance of securities. 2.2.4.1 Packaging the Underlying Receivables The most vital step in a securitization transaction is packaging the underlying assets. This begins with identifying the targeted receivables, which may include any assets that generate cash flows over a period of time, such as mortgages, credit cards loans, consumers loans, corporate loans, auto loans, s