Effect of Brexit on the Financial Markets

Effect of Brexit on the Financial Markets What are financial markets? Financial markets are an open and regulated system where companies can raise large amounts of capital through bonds and stock markets, or offset their risk by investing in commodities, foreign exchange futures contracts or other derivatives. Due to the size of financial markets, they are highly liquid, meaning businesses can easily and quickly generate cash by selling their assets. Since financial markets are public and work under a lot of regulations, there is a lot of information transparency and prices of everything traded reflects this. (Source: â€Å"Six Basic Functions of Financial Markets†, Iowa State University, March 5, 2012.)   What is the European Union and what is Brexit? The European Union, like the name suggests is a political and economic union of 28 countries within Europe. The UK became part of the EU in 1973 and had to pay a membership fee every year The creation of the European union was to firstly bring countries together after the 2nd world war had left many economically and politically disabled or struggling. This economic cooperation would become the world’s biggest single market and it still is today. (European Union European Commission, 2017) Even though the UK has benefited a lot from being in a single market, there were many who thought that Britain would be better off on its own; and for this reason the government decided to have a referendum after which on the 23 of June 2016, Britain exited the Single market, giving back it’s seat in the European Parliament and all the benefits that came with it. How can financial markets affect economic performance? Demirgà ¼Ãƒ §-Kunt and Levine in their 2001 book, ‘Financial Structure and Economic Growth’ said there is a strong connection between financial markets development and economic growth. The way in which this happens is that a well-functioning financial market will efficiently direct the flow of savings and investments in an economy as such to enable businesses to accumulate capital and goods and services to be produced. A well-established financial market alongside a wide range of financial products will benefit borrowers and lenders and therefore the economy as a whole. Another benefit of an efficient financial market is that by providing a range of financial options at varying risk levels and pricing structures, borrowers and lenders can be closely matched for their individual needs. This allows investors to determine and calculate their cost of financing by looking at their returns on their investments and then choosing the best financing and investment choice for their requirements. The European Union created a single banking market with a single currency and therefore created Europe-wide financial markets which made investing and borrowing euro-denominated stocks, bonds and derivatives easy for all EU countries that are part of the Euro by eliminating exchange rate risks. By doing so, products and services that were previously only available on a country by country basis were now available to a wider market, creating better competition which in turn makes markets more efficient and prices lower for individuals.   This is called the ‘Single-Passport’ system, whereby any business set up in one-member state may provide its services to the rest without further authorisation requirements (European Commission 2016) Not only does euro-based financial markets benefit the Eurozone, it also attracts international investors to invest here and benefit from the competitive market, (Mishkin, 2012) and by being part of the ‘single-passport, Non-European companies can set up their head office in London, and have access to all the benefits of the Single Market. UK financial market relationship with the EU Professor Nick Bloom of Stanford University said: â€Å"The single European market increased competition and forced British firms to increase the level of innovation.† London is one of the biggest financial hubs of the world and hosts the largest number of banks and commercial insurance companies. According to (Belke A. et all) around 6 trillion euros, which is equivalent to 37% of Europe’s financial assets are managed in London, which is twice the amount of the nearest rival Paris. London also dominates Europe’s 5.2 trillion-euro investment banking industry. What this means is that major investments happing in some of Europe’s biggest cities are financed by companies operating within London. This is why, (Mark Carney, Governor of the Bank of England), said: â€Å"Europe relies heavily on London’s debt and equity markets.† When it comes to foreign exchange markets, the UK is way ahead of its European counterparts with an impressive almost 40% share of the worlds foreign exchange and derivatives handling. According to the (City of London Corporation) each year, $869 trillion worth of Euro, Yen and Dollars are traded from London. This is higher than all the Euro-Zone countries combined. https://www.reuters.com/investigates/special-report/britain-europe-cost/ London currently accounts for 70% of the Euro Sovereign debt trades, meaning that the EU countries cannot shut outlondons capital markets as this would be suicide. (Rueters) According to Reuters (Kai Pfaffenbach) Frankfurt is desperately trying win over businesses to relocate to their city from London. To help in this, the European Central Bank started the â€Å"Capital Markets Union† project in 2015, where they want Euro-zone financial markets to provide improved fund raising for companies by replicating Britain’s financial services and become more efficient in the stocks, bonds and other securities markets. How Brexit is affecting Financial Markets: https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7The question of how Brexit will affect the UK economy is very uncertain. The sterling fell to a 31 year low, stock markets fell and foreign direct investment has frozen. All these things point towards the short-term impact of Brexit to be very serious. The real question is, what will the long term effects be, and how will markets react to cope with such uncertainty about the future. The institutional framework of the EU and the euro has created dependencies amongst countries. For this reason, Brexit will have affects in not just UK financial markets, but financial markets across the globe. According to (Gordon and Shapiro 1956) the dividend discount model, expectations about future effects on financial markets will have an effect on stocks and other financial variables now. From the graph above, we can see that when the news of Brexit was announced and the UK markets became uncertain about the UK’s future in the single market, the pound fell to its lowest price in 31 years. Because of Brexit and Policy uncertainty, markets adopt a ‘wait-and-see’ attitude towards investment decisions.   If London is no longer part of the single market, it loses its attractiveness as a foreign direct investment hub and a gateway to the European financial markets. According to the financial times, almost half of the FDI coming to the UK comes from the EU and after Brexit, this investment will significantly decrease due to increased trade costs and tariffs. The Office of National Statistics (ONS) tells us that FDI has been about 5% of UK GDP between 1999 and 2015. The analysis from the financial times estimates the decrease in FDI would be 22%. The impact of Brexit on the UK financial sector can be broken down in to 3 things: What agreement can the UK make with the EU in its post-Brexit negotiations. The extent to which financial sector businesses move their operations from the UK to a Eurozone country before any negotiation agreements are made.How well the UK financial sector can survive based on its global position and relationship. Until a deal is made with the EU, we cannot predict how the market will end up like, but we can hypothesise certain outcomes like the following: Currently, the UK is still part of the EU, and hence has passporting rights. Once these rights are gone, UK firms will have to have state level authorisations from EU countries to perform activities. This will depend upon whether the regulators in those countries will allow UK financial markets to sill operate within their borders. The best outcome would be if the UK retains their passporting rights through either a negotiation or remaining a part of the EEA. Johnathon ford writes in the financial times that another option that UK based companies may have is to open up subsidiaries in different EU countries, that way giving them access to customers within those markets. This is however costly and inefficient. Alternatively, UK firms could take advantage of Third Country Regime (TCR) access provisions. What this means is that companies that were incorporated outside the EU can still do business on a cross-border basis if they wish to do so without having an establishment within that EU country, however EU law will require that the regulations and legal structure they follow complies with EU. Reuters business news tells us that Standard Chartered (Stan.L) and JPMorgan (JPM.N) were the latest global banks that have outlined plans for European operations after Brexit. Goldman Sachs Lloyd Blankfein said that â€Å"London’s growth as a financial centre could stall as a result of upheaval caused by Brexit.† So, because of Brexit and the uncertainty of what the future holds for UK’s financial markets; UK based financial firms especially those in London are looking to move their operations into the EU market to benefit from the single market. Another financial market area that will be affected by Brexit is that of selling of derivatives for companies to buy protection or lower their risk portfolio against changes the US dollar and or spikes in the price of oil. As a result of tighter financial regulations on banks, some will opt out of providing this service and those who do will offer a smaller variety of products at a higher price. Ultimately, this is bad for markets as they are not getting the best deal they can. London also dominates the euro derivatives market. EU policymakers have not liked this for a while and want to shift this to a Eurozone country after Brexit. This will in turn increase the price of trading for corporations that deal in multiple currencies as they will have to go through several clearing houses. Bankers are unsure how much extra it will cost a European company to borrow without direct access to London, however, the association for financial markets said customers are being overly optimistic if they think that lending agents will bear the burden or grunt of this. They will push the increased cost of borrowing onto the consumer, which will ultimately make them less competitive in the market. Ernst and Young say in their research paper that they surveyed major corporates including Airbus and Volkswagen and found that these companies were really worried about rising costs of funding as a result of Brexit. London has dominated the financial centre for decades and has built its reputation on the service it provides. It would be very difficult to replicate this market. This has been due to its vast talent pool, widespread use of the English language and the UK legal system and the vast amount of money going through the UK through these financial markets. Another great strength of the UK is its over-the-counter derivatives market. Corporations often use swaps to protect themselves against adverse interest rates and currency moves. Over-the-counter derivatives have to go through clearing houses who are sort of the middle man who make sure neither party defaults on their payments. Even though the UK is not part of the Euro single currency, it still manages  ¾ of all euro-denominated swaps. As the UK decides to leave the EU, this creates a problem, because now most of these swaps won’t be clearing through the bloc. Germany and France have already said that they want the euro-denominated derivatives to be cleat=red through the EU; however LSE has argued that doing so would cost London thousands of jobs. According to a private report by EY, this estimate loss of jobs could be around 83,000 by 2024. The EU needs London’s money, says Mark Carney, governor of the Bank of England. He calls Britain â€Å"Europe’s investment banker† and says half of all the debt and equity issued by the EU involves financial institutions in Britain. What impact would Brexit have on the way in which banks are regulated in the UK? There are three pillars in the UK banking regulations: The capital requirements directive IV and the capital requirements regulation.The banking act of 2009 Bank Resolution and Recovery Directive (BRRD) Since the BRRD and CRD IV were EU legislations, the UK has to decide after Brexit how much they want to keep. CRD IV implements the requirements of Basel III, which the UK would still be committed to after Brexit. Brexit will likely have an effect on the legislation application of the EEA branches and subsidiaries. What  Ã‚  impact would Brexit have on the UK insurance industry? The London market currently has access to over 500 million customers through the EU and a substantial amount of insurance and reinsurance is distributed into and out of the UK. For the UK to continue to have access to these customers, they have to negotiate bilateral treaties to ensure member states allow them passport into the EU. The prudential regulation authority (PRA) has been very involved in negotiating the solvency II directive which was based on the risk-based regime of the UK. What  Ã‚  impact would Brexit have on the UK funds industry? Currently most UK based fund managers already use Irish or Luxembourg UCITS and alternative investment funds (AIF) platforms for Pan-European distribution of funds therefore Brexit will likely not have much effect on this sector of the financial market. The problem the UK asset management industry will face is the risk of changes to rules enabling MIFID investment firms, AIFMS and UCITS management firms to choose UK based investment managers. Currently, the administration is deemed sufficient for EU firms to contract asset management jobs to the UK managers. Another drawback may be that EU member states may put obstacles in front in the form of tax regimes that make it less attractive for EU firms to hire UK investment managers. Corporate tax: The EU previously set the legal requirements for corporate tax in the UK. Since we will no longer be a part of the EU, these regulations will be revised by HMRC and new draft regulations will be put in place. Currently businesses that have offices within and outside the UK enjoy a 0% rate of withholding tax. This may no longer be the case and companies will look for ways to save themselves from varying taxations in different countries, or changing their place of business to protect themselves from higher or double taxation. VAT VAT was a European Union Concept and now that the UK government is responsible for this, they may decide to change the rates at which this is charged or what products VAT will be charged on. Accounting law At the moment, there is a significant EU accounting and company law legislations that may come under review after Brexit. These include, directive 2013/34/EU about annual financial statements, consolidated financial statements and reports. Directive 2009/101/EC about the disclosure of company documents and company obligations. Directive 2012/30/EU on the formation of public limited companies. Directive 89/666/EEC on disclosure requirements for foreign branches of companies. Global Impact of Brexit There is no roadmap to follow or analogy to invoke as a guide or pattern for how the Brexit vote will reverberate in the months and years to come. However, a few immediate consequences seem highly likely: †¢Ã‚  The flight to safety away from the epicenter of this British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values. †¢Ã‚  A higher U.S. dollar and Japanese yen are negative to both economies’ export sectors. In the case of Japan, this is particularly unhelpful to its efforts to reinflate and reinvigorate the economy after decades of deflation. †¢Ã‚  The higher U.S. dollar also triggers additional pressure on China to float the yuan lower, as it is caught in the divergence between its two largest export markets—the EU and the U.S.. †¢Ã‚  For the U.S., the negative impact on exports is relatively small compared with trends in domestic demand, but the deflationary pressure on tradable goods will widen the divergence between reasonably strong inflation in the services sector vs. reasonably strong deflation in the goods sector. †¢Ã‚  The European Central Bank will be compelled to raise its level of intervention yet again, as risk premiums across the region rise. Among the larger Eurozone members, Italy is in a particularly vulnerable position—now made more vulnerable. Each blow to members of the Eurozone periphery also further make Germany’s outperformance in the Eurozone even more unsustainable. The nature of the UK’s eventual exit agreement with the EU is crucial, and hangs over a multitude of markets. CEP BREXIT ANALYSIS Life after Brexit: What are the UK’s options outside the European Union? It is highly uncertain what the UK’s future would look like outside the European Union (EU), which makes ‘Brexit’ a leap into the unknown. This report reviews the advantages and drawbacks of the most likely options. After Brexit, the EU would continue to be the world’s largest market and the UK’s biggest trading partner. A key question is what would happen to the three million EU citizens living in the UK and the two million UK citizens living in the EU? There are economic benefits from European integration, but obtaining these benefits comes at the political cost of giving up some sovereignty. Inside or outside the EU, this trade-off is inescapable. One option is ‘doing a Norway’ and joining the European Economic Area. This would minimise the trade costs of Brexit, but it would mean paying about 83% as much into the EU budget as the UK currently does. It would also require keeping current EU regulations (without having a seat at the tab le when the rules are decided). Another option is ‘doing a Switzerland’ and negotiating bilateral deals with the EU. Switzerland still faces regulation without representation and pays about 40% as much as the UK to be part of the single market in goods. But the Swiss have no agreement with the EU on free trade in services, an area where the UK is a major exporter. A further option is going it alone as a member of the World Trade Organization. This would give the UK more sovereignty at the price of less trade and a bigger fall in income, even if the UK were to abolish tariffs completely. Brexit would allow the UK to negotiate its own trade deals with non-EU countries. But as a small country, the UK would have less bargaining power than the EU. Canada’s trade deals with the United States show that losing this bargaining power could be costly for the UK. To make an informed decision on the merits of leaving the EU, voters need to know more about what the UK governme nt would do following Brexit. This is the first in a series of briefings analysing the economic costs and benefits of Brexit for the UK. Economists for Brexit: A Critique Professor Patrick Minford, one of the ‘Economists for Brexit’, argues that leaving the European Union (EU) will raise the UK’s welfare by 4% as a result of increased trade. His policy recommendation is that following a vote for Brexit, the UK should strike no new trade deals but instead unilaterally abolish all its import tariffs. Under this policy (‘Britain Alone’), he describes his model as predicting the ‘elimination’ of UK manufacturing and a big increase in wage inequality. These outcomes may be hard to sell to UK citizens as a desirable political option. Our analysis of the ‘Britain Alone’ policy predicts a 2.3% loss of welfare compared with staying in the EU. This is only 0.3 percentage points better than Brexit without unilaterally abolishing tariffs which would result in a 2.6% welfare loss. Minford’s results stem from assuming that small changes in trade costs have tremendously large effects on trade volumes: according to his model, the falls in tariffs become enormously magnified because each country purchases only from the lowest cost supplier. In reality, everyone does not simply buy from the cheapest supplier. Products are different when made by different countries and trade is affected by the distance between countries, their size, history and wealth (the ‘gravity relationship’). Trade costs are not just government-created trade barriers. Product differentiation and gravity is incorporated into modern trade models – these predict that after Brexit the UK will continue to trade more with the EU than other countries as it remains our geographically closest neighbour. Consequently, we will be worse off because we will face higher trade costs with the EU. Minford’s assumption that goods prices would fall by 10% comes from attributing all producer price differences between the EU and low-cost countries to EU trade barriers, ignoring differences in quality. Sin gle Market rules (for example, over product safety) facilitate trade between EU members as it creates a level playing field. Minford’s assumption that the Single Market merely diverts trade from non-EU countries is contradicted by the empirical evidence. Minford also overlooks the loss in services trade that would result from leaving the Single Market, such as ‘passporting’ privileges in financial services. Minford’s approach of ignoring empirical analysis of trade data seems predicated on the view that because statistical analysis is imperfect, it should all be completely ignored. But such statistical biases may reinforce rather than weaken the case for remaining in the EU. Theories need grounding in facts, not ideology. Bibliography https://fullfact.org/europe/our-eu-membership-fee-55-million/https://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7https://www.ft.com/content/61221dd4-d8c4-11e6-944b-e7eb37a6aa8e?mhq5j=e5http://www.nortonrosefulbright.com/knowledge/publications/115128/mifid-ii-mifir-serieshttp://uk.reuters.com/article/uk-britain-eu-banks/banks-planning-to-move-9000-jobs-from-britain-because-of-brexit-idUKKBN184132http://www.ey.com/Publication/vwLUAssets/ey-uk-eu-planning-for-uncertainty/$File/ey-uk-eu-planning-for-uncertainty.pdfhttps://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.accountingweb.com/community/blogs/geoff-collings/the-effect-of-brexit-on-uk-accountinghttps://www.accountancyage.com/2016/07/21/what-brexit-means-for-accounting-employment-and-taxation-law/ http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587384/IPOL_BRI(2016)587384_EN.pdfhttps://www.ceps.eu/system/files/WD% 20429%20AB%20et%20al%20Brexit%20Applied%20Economics.pdfhttp://www.frbsf.org/education/publications/doctor-econ/2005/january/financial-markets-economic-performance/https://www.ft.com/content/74708d46-c6ca-11e6-8f29-9445cac8966f Mishkin, F. (2012).  Introduction to Financial Markets. [online] Www2.econ.iastate.edu. Available at: http://www2.econ.iastate.edu/tesfatsi/finintro.htm#FMI [Accessed 10 Sep. 2017]. Effect of Brexit on the Financial Markets Effect of Brexit on the Financial Markets What are financial markets? Financial markets are an open and regulated system where companies can raise large amounts of capital through bonds and stock markets, or offset their risk by investing in commodities, foreign exchange futures contracts or other derivatives. Due to the size of financial markets, they are highly liquid, meaning businesses can easily and quickly generate cash by selling their assets. Since financial markets are public and work under a lot of regulations, there is a lot of information transparency and prices of everything traded reflects this. (Source: â€Å"Six Basic Functions of Financial Markets†, Iowa State University, March 5, 2012.)   What is the European Union and what is Brexit? The European Union, like the name suggests is a political and economic union of 28 countries within Europe. The UK became part of the EU in 1973 and had to pay a membership fee every year The creation of the European union was to firstly bring countries together after the 2nd world war had left many economically and politically disabled or struggling. This economic cooperation would become the world’s biggest single market and it still is today. (European Union European Commission, 2017) Even though the UK has benefited a lot from being in a single market, there were many who thought that Britain would be better off on its own; and for this reason the government decided to have a referendum after which on the 23 of June 2016, Britain exited the Single market, giving back it’s seat in the European Parliament and all the benefits that came with it. How can financial markets affect economic performance? Demirgà ¼Ãƒ §-Kunt and Levine in their 2001 book, ‘Financial Structure and Economic Growth’ said there is a strong connection between financial markets development and economic growth. The way in which this happens is that a well-functioning financial market will efficiently direct the flow of savings and investments in an economy as such to enable businesses to accumulate capital and goods and services to be produced. A well-established financial market alongside a wide range of financial products will benefit borrowers and lenders and therefore the economy as a whole. Another benefit of an efficient financial market is that by providing a range of financial options at varying risk levels and pricing structures, borrowers and lenders can be closely matched for their individual needs. This allows investors to determine and calculate their cost of financing by looking at their returns on their investments and then choosing the best financing and investment choice for their requirements. The European Union created a single banking market with a single currency and therefore created Europe-wide financial markets which made investing and borrowing euro-denominated stocks, bonds and derivatives easy for all EU countries that are part of the Euro by eliminating exchange rate risks. By doing so, products and services that were previously only available on a country by country basis were now available to a wider market, creating better competition which in turn makes markets more efficient and prices lower for individuals.   This is called the ‘Single-Passport’ system, whereby any business set up in one-member state may provide its services to the rest without further authorisation requirements (European Commission 2016) Not only does euro-based financial markets benefit the Eurozone, it also attracts international investors to invest here and benefit from the competitive market, (Mishkin, 2012) and by being part of the ‘single-passport, Non-European companies can set up their head office in London, and have access to all the benefits of the Single Market. UK financial market relationship with the EU Professor Nick Bloom of Stanford University said: â€Å"The single European market increased competition and forced British firms to increase the level of innovation.† London is one of the biggest financial hubs of the world and hosts the largest number of banks and commercial insurance companies. According to (Belke A. et all) around 6 trillion euros, which is equivalent to 37% of Europe’s financial assets are managed in London, which is twice the amount of the nearest rival Paris. London also dominates Europe’s 5.2 trillion-euro investment banking industry. What this means is that major investments happing in some of Europe’s biggest cities are financed by companies operating within London. This is why, (Mark Carney, Governor of the Bank of England), said: â€Å"Europe relies heavily on London’s debt and equity markets.† When it comes to foreign exchange markets, the UK is way ahead of its European counterparts with an impressive almost 40% share of the worlds foreign exchange and derivatives handling. According to the (City of London Corporation) each year, $869 trillion worth of Euro, Yen and Dollars are traded from London. This is higher than all the Euro-Zone countries combined. https://www.reuters.com/investigates/special-report/britain-europe-cost/ London currently accounts for 70% of the Euro Sovereign debt trades, meaning that the EU countries cannot shut outlondons capital markets as this would be suicide. (Rueters) According to Reuters (Kai Pfaffenbach) Frankfurt is desperately trying win over businesses to relocate to their city from London. To help in this, the European Central Bank started the â€Å"Capital Markets Union† project in 2015, where they want Euro-zone financial markets to provide improved fund raising for companies by replicating Britain’s financial services and become more efficient in the stocks, bonds and other securities markets. How Brexit is affecting Financial Markets: https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7The question of how Brexit will affect the UK economy is very uncertain. The sterling fell to a 31 year low, stock markets fell and foreign direct investment has frozen. All these things point towards the short-term impact of Brexit to be very serious. The real question is, what will the long term effects be, and how will markets react to cope with such uncertainty about the future. The institutional framework of the EU and the euro has created dependencies amongst countries. For this reason, Brexit will have affects in not just UK financial markets, but financial markets across the globe. According to (Gordon and Shapiro 1956) the dividend discount model, expectations about future effects on financial markets will have an effect on stocks and other financial variables now. From the graph above, we can see that when the news of Brexit was announced and the UK markets became uncertain about the UK’s future in the single market, the pound fell to its lowest price in 31 years. Because of Brexit and Policy uncertainty, markets adopt a ‘wait-and-see’ attitude towards investment decisions.   If London is no longer part of the single market, it loses its attractiveness as a foreign direct investment hub and a gateway to the European financial markets. According to the financial times, almost half of the FDI coming to the UK comes from the EU and after Brexit, this investment will significantly decrease due to increased trade costs and tariffs. The Office of National Statistics (ONS) tells us that FDI has been about 5% of UK GDP between 1999 and 2015. The analysis from the financial times estimates the decrease in FDI would be 22%. The impact of Brexit on the UK financial sector can be broken down in to 3 things: What agreement can the UK make with the EU in its post-Brexit negotiations. The extent to which financial sector businesses move their operations from the UK to a Eurozone country before any negotiation agreements are made.How well the UK financial sector can survive based on its global position and relationship. Until a deal is made with the EU, we cannot predict how the market will end up like, but we can hypothesise certain outcomes like the following: Currently, the UK is still part of the EU, and hence has passporting rights. Once these rights are gone, UK firms will have to have state level authorisations from EU countries to perform activities. This will depend upon whether the regulators in those countries will allow UK financial markets to sill operate within their borders. The best outcome would be if the UK retains their passporting rights through either a negotiation or remaining a part of the EEA. Johnathon ford writes in the financial times that another option that UK based companies may have is to open up subsidiaries in different EU countries, that way giving them access to customers within those markets. This is however costly and inefficient. Alternatively, UK firms could take advantage of Third Country Regime (TCR) access provisions. What this means is that companies that were incorporated outside the EU can still do business on a cross-border basis if they wish to do so without having an establishment within that EU country, however EU law will require that the regulations and legal structure they follow complies with EU. Reuters business news tells us that Standard Chartered (Stan.L) and JPMorgan (JPM.N) were the latest global banks that have outlined plans for European operations after Brexit. Goldman Sachs Lloyd Blankfein said that â€Å"London’s growth as a financial centre could stall as a result of upheaval caused by Brexit.† So, because of Brexit and the uncertainty of what the future holds for UK’s financial markets; UK based financial firms especially those in London are looking to move their operations into the EU market to benefit from the single market. Another financial market area that will be affected by Brexit is that of selling of derivatives for companies to buy protection or lower their risk portfolio against changes the US dollar and or spikes in the price of oil. As a result of tighter financial regulations on banks, some will opt out of providing this service and those who do will offer a smaller variety of products at a higher price. Ultimately, this is bad for markets as they are not getting the best deal they can. London also dominates the euro derivatives market. EU policymakers have not liked this for a while and want to shift this to a Eurozone country after Brexit. This will in turn increase the price of trading for corporations that deal in multiple currencies as they will have to go through several clearing houses. Bankers are unsure how much extra it will cost a European company to borrow without direct access to London, however, the association for financial markets said customers are being overly optimistic if they think that lending agents will bear the burden or grunt of this. They will push the increased cost of borrowing onto the consumer, which will ultimately make them less competitive in the market. Ernst and Young say in their research paper that they surveyed major corporates including Airbus and Volkswagen and found that these companies were really worried about rising costs of funding as a result of Brexit. London has dominated the financial centre for decades and has built its reputation on the service it provides. It would be very difficult to replicate this market. This has been due to its vast talent pool, widespread use of the English language and the UK legal system and the vast amount of money going through the UK through these financial markets. Another great strength of the UK is its over-the-counter derivatives market. Corporations often use swaps to protect themselves against adverse interest rates and currency moves. Over-the-counter derivatives have to go through clearing houses who are sort of the middle man who make sure neither party defaults on their payments. Even though the UK is not part of the Euro single currency, it still manages  ¾ of all euro-denominated swaps. As the UK decides to leave the EU, this creates a problem, because now most of these swaps won’t be clearing through the bloc. Germany and France have already said that they want the euro-denominated derivatives to be cleat=red through the EU; however LSE has argued that doing so would cost London thousands of jobs. According to a private report by EY, this estimate loss of jobs could be around 83,000 by 2024. The EU needs London’s money, says Mark Carney, governor of the Bank of England. He calls Britain â€Å"Europe’s investment banker† and says half of all the debt and equity issued by the EU involves financial institutions in Britain. What impact would Brexit have on the way in which banks are regulated in the UK? There are three pillars in the UK banking regulations: The capital requirements directive IV and the capital requirements regulation.The banking act of 2009 Bank Resolution and Recovery Directive (BRRD) Since the BRRD and CRD IV were EU legislations, the UK has to decide after Brexit how much they want to keep. CRD IV implements the requirements of Basel III, which the UK would still be committed to after Brexit. Brexit will likely have an effect on the legislation application of the EEA branches and subsidiaries. What  Ã‚  impact would Brexit have on the UK insurance industry? The London market currently has access to over 500 million customers through the EU and a substantial amount of insurance and reinsurance is distributed into and out of the UK. For the UK to continue to have access to these customers, they have to negotiate bilateral treaties to ensure member states allow them passport into the EU. The prudential regulation authority (PRA) has been very involved in negotiating the solvency II directive which was based on the risk-based regime of the UK. What  Ã‚  impact would Brexit have on the UK funds industry? Currently most UK based fund managers already use Irish or Luxembourg UCITS and alternative investment funds (AIF) platforms for Pan-European distribution of funds therefore Brexit will likely not have much effect on this sector of the financial market. The problem the UK asset management industry will face is the risk of changes to rules enabling MIFID investment firms, AIFMS and UCITS management firms to choose UK based investment managers. Currently, the administration is deemed sufficient for EU firms to contract asset management jobs to the UK managers. Another drawback may be that EU member states may put obstacles in front in the form of tax regimes that make it less attractive for EU firms to hire UK investment managers. Corporate tax: The EU previously set the legal requirements for corporate tax in the UK. Since we will no longer be a part of the EU, these regulations will be revised by HMRC and new draft regulations will be put in place. Currently businesses that have offices within and outside the UK enjoy a 0% rate of withholding tax. This may no longer be the case and companies will look for ways to save themselves from varying taxations in different countries, or changing their place of business to protect themselves from higher or double taxation. VAT VAT was a European Union Concept and now that the UK government is responsible for this, they may decide to change the rates at which this is charged or what products VAT will be charged on. Accounting law At the moment, there is a significant EU accounting and company law legislations that may come under review after Brexit. These include, directive 2013/34/EU about annual financial statements, consolidated financial statements and reports. Directive 2009/101/EC about the disclosure of company documents and company obligations. Directive 2012/30/EU on the formation of public limited companies. Directive 89/666/EEC on disclosure requirements for foreign branches of companies. Global Impact of Brexit There is no roadmap to follow or analogy to invoke as a guide or pattern for how the Brexit vote will reverberate in the months and years to come. However, a few immediate consequences seem highly likely: †¢Ã‚  The flight to safety away from the epicenter of this British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values. †¢Ã‚  A higher U.S. dollar and Japanese yen are negative to both economies’ export sectors. In the case of Japan, this is particularly unhelpful to its efforts to reinflate and reinvigorate the economy after decades of deflation. †¢Ã‚  The higher U.S. dollar also triggers additional pressure on China to float the yuan lower, as it is caught in the divergence between its two largest export markets—the EU and the U.S.. †¢Ã‚  For the U.S., the negative impact on exports is relatively small compared with trends in domestic demand, but the deflationary pressure on tradable goods will widen the divergence between reasonably strong inflation in the services sector vs. reasonably strong deflation in the goods sector. †¢Ã‚  The European Central Bank will be compelled to raise its level of intervention yet again, as risk premiums across the region rise. Among the larger Eurozone members, Italy is in a particularly vulnerable position—now made more vulnerable. Each blow to members of the Eurozone periphery also further make Germany’s outperformance in the Eurozone even more unsustainable. The nature of the UK’s eventual exit agreement with the EU is crucial, and hangs over a multitude of markets. CEP BREXIT ANALYSIS Life after Brexit: What are the UK’s options outside the European Union? It is highly uncertain what the UK’s future would look like outside the European Union (EU), which makes ‘Brexit’ a leap into the unknown. This report reviews the advantages and drawbacks of the most likely options. After Brexit, the EU would continue to be the world’s largest market and the UK’s biggest trading partner. A key question is what would happen to the three million EU citizens living in the UK and the two million UK citizens living in the EU? There are economic benefits from European integration, but obtaining these benefits comes at the political cost of giving up some sovereignty. Inside or outside the EU, this trade-off is inescapable. One option is ‘doing a Norway’ and joining the European Economic Area. This would minimise the trade costs of Brexit, but it would mean paying about 83% as much into the EU budget as the UK currently does. It would also require keeping current EU regulations (without having a seat at the tab le when the rules are decided). Another option is ‘doing a Switzerland’ and negotiating bilateral deals with the EU. Switzerland still faces regulation without representation and pays about 40% as much as the UK to be part of the single market in goods. But the Swiss have no agreement with the EU on free trade in services, an area where the UK is a major exporter. A further option is going it alone as a member of the World Trade Organization. This would give the UK more sovereignty at the price of less trade and a bigger fall in income, even if the UK were to abolish tariffs completely. Brexit would allow the UK to negotiate its own trade deals with non-EU countries. But as a small country, the UK would have less bargaining power than the EU. Canada’s trade deals with the United States show that losing this bargaining power could be costly for the UK. To make an informed decision on the merits of leaving the EU, voters need to know more about what the UK governme nt would do following Brexit. This is the first in a series of briefings analysing the economic costs and benefits of Brexit for the UK. Economists for Brexit: A Critique Professor Patrick Minford, one of the ‘Economists for Brexit’, argues that leaving the European Union (EU) will raise the UK’s welfare by 4% as a result of increased trade. His policy recommendation is that following a vote for Brexit, the UK should strike no new trade deals but instead unilaterally abolish all its import tariffs. Under this policy (‘Britain Alone’), he describes his model as predicting the ‘elimination’ of UK manufacturing and a big increase in wage inequality. These outcomes may be hard to sell to UK citizens as a desirable political option. Our analysis of the ‘Britain Alone’ policy predicts a 2.3% loss of welfare compared with staying in the EU. This is only 0.3 percentage points better than Brexit without unilaterally abolishing tariffs which would result in a 2.6% welfare loss. Minford’s results stem from assuming that small changes in trade costs have tremendously large effects on trade volumes: according to his model, the falls in tariffs become enormously magnified because each country purchases only from the lowest cost supplier. In reality, everyone does not simply buy from the cheapest supplier. Products are different when made by different countries and trade is affected by the distance between countries, their size, history and wealth (the ‘gravity relationship’). Trade costs are not just government-created trade barriers. Product differentiation and gravity is incorporated into modern trade models – these predict that after Brexit the UK will continue to trade more with the EU than other countries as it remains our geographically closest neighbour. Consequently, we will be worse off because we will face higher trade costs with the EU. Minford’s assumption that goods prices would fall by 10% comes from attributing all producer price differences between the EU and low-cost countries to EU trade barriers, ignoring differences in quality. Sin gle Market rules (for example, over product safety) facilitate trade between EU members as it creates a level playing field. Minford’s assumption that the Single Market merely diverts trade from non-EU countries is contradicted by the empirical evidence. Minford also overlooks the loss in services trade that would result from leaving the Single Market, such as ‘passporting’ privileges in financial services. Minford’s approach of ignoring empirical analysis of trade data seems predicated on the view that because statistical analysis is imperfect, it should all be completely ignored. But such statistical biases may reinforce rather than weaken the case for remaining in the EU. Theories need grounding in facts, not ideology. Bibliography https://fullfact.org/europe/our-eu-membership-fee-55-million/https://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7https://www.ft.com/content/61221dd4-d8c4-11e6-944b-e7eb37a6aa8e?mhq5j=e5http://www.nortonrosefulbright.com/knowledge/publications/115128/mifid-ii-mifir-serieshttp://uk.reuters.com/article/uk-britain-eu-banks/banks-planning-to-move-9000-jobs-from-britain-because-of-brexit-idUKKBN184132http://www.ey.com/Publication/vwLUAssets/ey-uk-eu-planning-for-uncertainty/$File/ey-uk-eu-planning-for-uncertainty.pdfhttps://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.accountingweb.com/community/blogs/geoff-collings/the-effect-of-brexit-on-uk-accountinghttps://www.accountancyage.com/2016/07/21/what-brexit-means-for-accounting-employment-and-taxation-law/ http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587384/IPOL_BRI(2016)587384_EN.pdfhttps://www.ceps.eu/system/files/WD% 20429%20AB%20et%20al%20Brexit%20Applied%20Economics.pdfhttp://www.frbsf.org/education/publications/doctor-econ/2005/january/financial-markets-economic-performance/https://www.ft.com/content/74708d46-c6ca-11e6-8f29-9445cac8966f Mishkin, F. (2012).  Introduction to Financial Markets. [online] Www2.econ.iastate.edu. Available at: http://www2.econ.iastate.edu/tesfatsi/finintro.htm#FMI [Accessed 10 Sep. 2017].

Parallels Between The Sun Also Rises by Hemingway and The Great Gatsby

Parallels Between The Sun Also Rises by Hemingway and The Great Gatsby by Fitzgerald  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚   During the decade of the 1920's, America was going through many changes, evolving from the Victorian Period to the Jazz Age. Changing with the times, the young adults of the 1920's were considered the "Lost Generation". The Great War was over in 1918. Men who returned from the war had the scars of war imprinted in their minds. The eighteenth amendment was ratified in 1919 which prohibited the manufacture, sale, or transportation of liquor in the United States. Despite the eighteenth amendment, most people think of large, lavish parties when thinking about the 1920's. The nineteenth amendment was passed in 1920 which gave women the right to vote, a major accomplishment in the women's right movement. Women traded in their long, pinned-up hair styles for short, stylish bob haircuts. Two great American literary writers emerged from the "Lost Generation": namely Ernest Hemingway and F. Scott Fitzgerald. Both men wrote their best novels during the 1920's in which they examined the evils of the time, and the consequences that accompanied the actions of the characters who acted on such vices. There are parallels between the vices of Hemingway's The Sun Also Rises and the vices of Fitzgerald's The Great Gatsby: namely excessive alcohol consumption, sexual promiscuity, and the power of money. The first parallel between a vice in Hemingway's The Sun Also Rises and a vice in Fitzgerald's The Great Gatsby is that of excessive alcohol consumption. The character's in The Sun Also Rises; namely Brett Ashley, Jake Barnes, Robert Cohn, Mike Campbell and Pedro Romero, are residing in Europe were there is no prohibition on liquor. Whet... ...oney and all the people he know through business contacts and the many parties he had thrown, only Nick and Gatsby's father attended his funeral. In conclusion, there are several parallels of vices between Hemingway's The Sun Also Rises and Fitzgerald's The Great Gatsby: namely the excessive consumption of alcohol, sexual promiscuity, and the power of money. WORKS CITED Fitzgerald, Scott F. The Great Gatsby. New York: Scribers, 1925. Jones. Interview. Celebration. BBS message 1160. 10/11/94. Hemingway, Ernest. The Sun Also Rises. New York: Macmillan, 1954. McDowell, Nicholas. Hemingway. Vero Beach: Rourke, 1989. Monique, Interview. Theme. BBS message 1755. 11/03/94. Rood, Karen Lane, ed. Dictionary of Literary Biography American Writers in Paris, 1920-1939. Vol. 4. Detroit: Gale, 1980. J:ofsengclarklessaylindasch.doc   

Social Reforms, India

The reform activities united people and the attack on institutions like caste which hampered social unity created a sense of oneness in the people. But most of these reform movements had certain limitations. The questions to which they gave primacy concerned only small sections of Indian society. Some of them failed to emphasize or even recognize that colonial rule was inimical to the interests of the Indian people. Most of them worked within the framework of their respective communities in a way tended to promote identities based on religion or caste.Many of these limitations were sought to be overcome during the course of the national movement with which many social and religious reformers were closely associated. Indian nationalism aimed at the regeneration of the entire Indian society irrespective of caste and community. It was no longer necessary to confine the movement of social reform to one’s own community. http://www. historytuition. com/indian_society_in_colonial_per iod/social_reforms/impact_of_the_reform_movements http://www. indianetzone. com/22/indian_socio-religious_reform_movements_19th_century. tm A reform movement is a kind of social movement that aims to make gradual change, or change in certain aspects of society rather than rapid or fundamental changes. A reform movement is distinguished from more radical social movements such as revolutionary movements. Reformists' ideas are often grounded in liberalism, although they may be rooted in utopian, socialist or religious concepts. Some rely on personal transformation; others rely on small collectives, such as Mahatma Gandhi's spinning wheel and the self sustaining village economy, as a mode of social change. 1. Raja Ram Mohan RoyRaja Ram Mohan Roy was popularly known as the ‘Father of Indian Renaissance ‘ was born on 22nd May 1772 in a Brahmin family in Bengal. He founded the Atmiya Sabha in 1815 and the Brahmo Samaj on 20th August 1828. Through these Institutions he fought ag ainst Orthodox Hindus and the fanatic Christian Missionaries. He was against of Sati system, Polygamy, Child marriage, Caste system and Untouchability. He was the great supporter of Inter-caste marriage, women education, Widow remarriages etc. Ram Mohan started publishing Newspapers and Magazines for which he was called the ‘Father of Indian Journalism'. . Mahatma Gandhi According to Gandhi † I would make the spinning-wheel, the foundation on which build a sound village life†. Gandhian way of education put emphasis on the development of body, mind, heart & soul. His scheme of education he called â€Å"Nai Talim† a beautiful blend of craft, art, health & education in one & covers the whole education of the individual till death. His education is more for girls than the boys. Gandhi ji was the first who Break the bridge between touchable & untouchable. He was the devotee of non-violence. 3. Gopabandhu DashGopabandhu Dash (1877–1928) known as Utkal Mani( Gems of Odisha) was a defining social worker who excelled in the field of politics as well as literature. Gopabandhu was a legend in the Indian culture. He served his people even at the cost of his family. During his study period, he started Kartavya Bodhini Samiti (Duty Awakening Society) to encourage his friends to do their duty as citizens and take on social, economic and political problems. He was leading a team to aid flood victims, when he heard of his son's serious illness but remained to serve the locals rather than return home to his son. e became the founder president of Congress in Odisha. 4. Swami Vivekananda Swami Vivekananda was another important Social Reformer who brought spiritual reawakening among the Indians in the 19th Century, popularly known as the ‘Intellectual Monk of India’ He was born in Calcutta on 12th, January, 1863. He began his life of wondering all over the country with his message of ‘Awakened India’ or ‘Prabhuda Bhara t’. He set-up ‘Ramakrishna Mission’ on 1st May, 1897. According to him, ‘Man is the maker of his own Destiny. The whole world has been made by the energy of man, by the power of faith’. 5. Swami Dayanada SaraswatiSwami Dayanada born in 1824 in a small town of Gujarat. Swami Dayananda Saraswati, the founder of the ‘Arya Samaj' was one of the maker of Modern India. His Arya Samaj gave emphasis on the liberation of the Hindu Society. He called people ‘Go back to the Veda’ created consciousness among the people. He strongly opposed Idol worship, ritualism, practice of animal sacrifice, the idea of Heaven etc. This movement also challenged the Christian Missionaries who tried to convert the uneducated, poor and depressed classes of the Hindus. 6. Annie Besant Annie Besant was of Irish origin and made India her second home.She fought for the rights of Indian and was the first woman president of Indian National Congress. In 1893, she left for India having been influenced by the Indian culture and civilization. She was famous as a social worker, educationalist, journalist, prominent Theosophist, social reformer, political leader, women's rights activist, writer and orator. She fought for the Human Rights of Indian women. 7. Dr. Bhimrao Ambedkar Dr. B. R. Ambedkar was born on April 14, 1891 in Mhow (presently in Madhya Pradesh). Dr. B. R. Ambedkar is viewed as messiah of dalits and downtrodden in India. He was the chairman of the drafting committee in 1947.Bhimrao Ambedkar experienced caste discrimination right from the childhood. he was the first who reduce the bridge between tribal & non-tribal. 8. Medha Patkar Medha Patkar was born in Mumbai. On 28 March 2006, Patkar started a hunger-strike to protest against the decision of the authorities to raise the height of the Narmada Dam. She ended her 20-day fast on 17 April 2006, after the Supreme Court of India refused the Narmada Bachao Andolan's appeal to stop the cons truction of the dam. She was held by the police at Singur on 2 December 2006 after protesting against the acquisition of farmland. She is a great social Reformer & social Activist. . Justice Mahadev Govind Ranade Justice Mahadev Govind Ranade was a distinguished judge, writer cum social reformer of India during the pre-independence era. Justice Mahadev Govind Ranade was a judge, politician, writer cum reformer of India. Politically, Ranade established the Poona Sarvajanik Sabha and was also among those who played a phenomenal role in setting up the Indian National Congress party. Justice Mahadev Govind Ranade was also an active reformer. He set up the Social Conference movement, which worked against infant marriages, widows remarriage, spending heavily in marriages and other social functions.Ranade advocated for widow remarriage and female education. 10. Bankim Chandra Chatterjee Bankim Chandra Chatterjee was a grat poet and novelist. In his famous book â€Å"Kamala Kanter Dafferâ €  pointed out the social evils and blind beliefs prevalent in Indian Soiety, which were pertaining to injustice to the poor and the downtrodden. He advocated remwedial measures for the eradication of all the evils. He wanrs to maintain equality between the rich and the poor. The famous song'Bande Mataram† was his creation. Most Hindus today still adhere to traditional teachings and practice passed down via the four main communities.What has been termed â€Å"modern Hinduism† has grown largely out of a number of quite radical reform movements of the nineteenth and early twentieth centuries. These movements had a relatively small number of followers and by no means replaced or superseded the major traditional forms of Hinduism. Some specific reform movements, like the Arya Samaj and the Ramakrishna Mission, still continue to be influential. The reform movements largely emerged from the growing contact that Hindu thinkers had with Western thought, culture and religion. Below are the four most important movements and the names associated with them. The Brahmo SamajThe Brahmo Sabha was founded in 1828 by Rama Mohan Roy (left) and in 1843 was restructured and renamed Brahmo Samaj by Devendranatha Tagore, father of the well-known poet, Rabindranatha Tagore. Rama Mohan was extremely learned and strongly influenced by Christianity. He disagreed with the doctrine of reincarnation and fought to abolish certain traditional practices, some of which had been grossly misused. These included caste, polygamy, image worship,  sati, and child marriage. His ideas of worship were drawn largely from Christianity. Devendranatha Tagore was greatly influenced by the western philosophy of Locke and Hume.He tried to reform the Brahmo Samaj but lacking support eventually left. Keshab Chandra Sen joined the Samaj in 1857 and initially worked with Tagore. But later disagreeing with Tagore's ideas, he left to establish his own movement. Today the Brahmo Samaj has but a fe w thousand members and little visible influence on the Hindu community. It failed to fulfil the hopes of those who saw the future religion of India as a blend of Christianity and Hindu metaphysics. The Arya Samaj The Arya Samaj was founded by Swami Dayananda Sarasvati (left) in 1875 as a radical reform movement.Dayananda wanted to halt the Christian missionary onslaught and to return to the ancient Vedic tradition. He therefore sought to purge Hinduism of what he considered later additions, such as image worship, pilgrimage and ritual bathing. Although emphasising the ancient Vedic tradition, Dayananda also sought to modernise Hinduism and to re-absorb Hindus who had converted to Islam or Christianity. His movement, with its concerns over the influence of other religions sowed the seeds for the many political parties that desired to re-establish Hindu rule in India.The Arya Samaj is still an active organisation, both world-wide and in the UK. Its members agree to follow its â€Å"T en Principles† and worship largely through  havan  (the sacred fire ceremony) and recitation of the Gayatri-mantra. The Ramakrishna Mission Ramakrishna (right) was born Gadadhar Chatterji in a poor but orthodox Bengali  brahmana  family. As a young man he became the priest at the Kali temple near Calcutta. He was later initiated as a  sannyasi  and experienced mystical visions, especially of Devi. He was profoundly influenced by Christianity and Islam and emphasised the universality of religion.He preached that â€Å"Jiva is Shiva† (the soul is God). He met many contemporary reformers and it was Keshab Chandra Sen who made him first known to the world. It was Vivekananda (1863–1902), however, who made Ramakrishna really famous. Born into the wealthy Dutt family, he was named Narendranath. He joined the Brahmo Samaj but later became Ramakrishna's favourite disciple, receiving the name Swami Vivekananda. He was expert in presenting Advaita Vedanta and g reatly impressed the Western world in his presentation to the World Parliament of Religions in Chicago in 1893.He travelled extensively, promoting wide reform, claiming that other reformers â€Å"played into the hands of Europeans. † He established the Ramakrishna Mission, today well known for its social and educational programmes. Gandhi's â€Å"Satyagraha† Mohandas Gandhi (1869–1947) is probably the best known Indian of the twentieth century He was primarily an educator and reformer. His ultimate aim was to re-establish Ramarajya, the reign of Lord Rama – or, in more Western terms, the â€Å"kingdom of God on Earth. † He, was opposed to British oppression and particularly the way Indian cotton was sent to Manchester and the clothes returned for sale in India.He tried to free his country from this unhealthy economic dependence and campaigned for India's independence from British Rule. His means to do this was  satyagraha  Ã¢â‚¬â€œ grasping the truth – based on  ahimsa  (non-violence), with an unswerving faith in God. He followed many orthodox practices and was particularly fond of the  Bhagavad-gita. He often referred to the â€Å"still small voice within. † He is most well known for his support of the untouchables. He died at the hands of an assassin, disappointed with the partition of his beloved India. Social religious reform movements in India By Ms.Seema Lal  Ã¢â‚¬â€ Presentation Transcript 1. Name- Seema Lal Subject- Social science Category- secondary classes (IX & X) Topic of e-lesson- Socio religious reform movements . Target group- VIII & X Classes. 2. Learning Objectives†¦.. 1. To teach students about rise of series of religious and social reform movements. 2. To make them understand conditions which led to the rise of these movements. 3. To tell students how these movements led to reform of both- society and religions. 4. To help them learn key role played by the reformists to uplif t the status of women. 3. Index Social religious reform movements – Information .Evils in Indian society Varna system / Caste system Raja Ram Mohan Roy Arya Samaj Ramakrishna mission Ishwar Chandra Vidyasagar Mahadev Govinda Ranade Annie Beasent &Theosophical society Sir Syeed Ahmed Khan Impact of movements / Limitations Test your Knowledge 4. SOCIO RELIGIOUS REFORM MOVEMENTS 5. VARIOUS SOCIAL AND RELIGIOUS REFORM MOVEMENTS AROSE AMONG ALL COMMUNITIES OF THE INDIAN PEOPLE . IN RELIGION ATTACKED BIGOTRY,SUPERSTITION&HOLD OF PRIESTLY CLASSES. IN SOCIAL LIFE AMIED AT ABOLITION OF CASTES,CHILD MARRIAGE & LEGAL & SOCIAL INEQUALITIES. 6. VARIOUS SOCIAL EVILS EXISTED DURING 18 TH CENTURY.SEVERAL EVIL CUSTOMS AND PRACTICES HAD BECOME PART OF HINDU SOCIAL SYSTEM. STATUS OF WOMEN DETERIORATED. LIFE OF HINDUS WAS GOVERENED BY CASTE SYSTEM . BACK TO INDEX 7. A SYSTEM IN WHICH WOMAN WAS BURNED ON THE PYRE OF HER HUSBAND. SATI SYSTEM 8. CHILD MARRIAGE 9. NO EDUCATION TO GIRLS ! 10. NO WIDO W REMARRIAGE 11. PARDHA SYSTEM BACK TO INDEX 12. VARNA SYSTEM KASHATRIYAS VAISYAS SUDRAS BRAHMANAS BACK TO IND 13. FOUND BRAHMO SAMAJ IN 1828 . ABOLISHED SATI AND CHILDMARRIAGE . ADVOCATED WIDOW REMARRIAGE. CONDEMNED POLYTHEISM. STOOD FOR MODERN EDUCATION FOR ALL. RAJA RAM MOHANROY 14. HE PERSUADED GOVT.TO ABOLISH SATI & CHILD MARRIAGE. STOOD FOR EQUAL RIGHTS FOR WOMEN AND THE RIGHT TO PROPERTY TO WOMEN. HE WAS AN INTERNATIONALIST & SUPPORTED CAUSE OF FREEDOM EVERY WHERE. HIS SAMAJ WAS THE FIRST ATTEMPT TO REFORM HINDU SOCIETY. BACK TO IND 15. ARYA SAMAJ SWAMI DAYANAND 16. THE ARYA SAMAJ –1875 DAYANAND SARASWATI FOUNDED ARYA SAMAJ. HE ATTACKED CHILD MARRIAGE. HE WAS AGAINST IDOL WORSHIP. BELIVED IN INFALLIBLITY OF VEDAS. HE OPPOSED CASTE SYSTEM. ADVOCATED EQUAL RIGHTS FOR MEN AND WOMEN. NUMBER OF D. A. V SCHOOLS & COLLEGES WERE STARTED BY THE SAMAJ ALL OVER INDIA. BACK TO IND 17.RAMAKRISHNA MISSION FOUNDED BY VIVEKANAND – DISCIPLE OF RAMAKRISHNA PARA- MHANSA. HE ESTABL ISHED THE MISSION & EDUCATIONAL INSTITUTIONS . UPLIFTED STATUS OF WOMEN . BACK TO IND 18. ISHWAR CHANDRA VIDYASAGAR-1820-91 WORKED FOR THE CAUSE OF EMANCIPATION OF WOMEN. DUE TO HIS EFFORTS LEGAL OBSTACLES TO WIDOW REMARRIAGE WERE REMOVED BY A LAW IN 1856. PROMOTED EDUCATION AMONG GIRLS & SET UP INSTITUTIONS FOR THEM . BACK TO IND 19. MAHADEV GOVINDA RANADE-1842-1901 WAS A SOUL OF THE INDIAN SOCIAL CONFERENCE-1887. CAMPAIGNED FOR ABOLITION OF CASTE,INTERCASTE MARRIAGES WIDOW REMARRIAGE,EDUCATION FOR WOMEN UPLIFTMENT OF LOWCASTES & HINDU MUSLIM- UNITY.BACK TO IND 20. ANNIE BESANT AND THEOSOPHICAL SOCIETY WORKED FOR REVIVAL OF HINDUISM -ITS PHILOSOPHY& MODES OF WORSHIP. HELPED IMPART INDIANS A SENSE OF PRIDE IN THEIR OWN COUNTRY. FOUNDED THE CENTRAL HINDU COLLEGE . ORGANISED HOMERULE MOVEMENT BACK TO IND 21. SYED AHMEDKHAN 22. .ESTABLISHED-MOHAMDEN – ANGLO- ORENTIAL COLLEGE. .INSISTED ON COOPERATION WITH BRITISHERS AND REFORMS AMONG MUSLIMS. .PERSUADED MUSLIMS TO RECEIVE MODERN EDUCATION. ALIGARH MOVEMENT SIR SYED AHMED KHAN BACK TO IND 23. Impact of reform movements. EMANCIPATATION OF WOMEN. WIDOW REMARRIAGE ACT IN 1856. SATI &INFANTICIDE WERE BANNED.MARRIAGEABLE AGE OF GIRLS WAS RAISED 1860. EDUCATION TO GIRLS BEGAN. BACK TO IND 24. LIMITATIONS OF REFORM MOVEMENTS 1. THEY CONCERNED ONLY SMALL SECTIONS OF SOCIETY. 2. WORKED FOR THEIR RESPECTIVE COMMUNITY. 3. FAILED TO EMPHASISE THAT COLONIAL RULE WAS INIMICAL TO THEIR INTEREST. 25. TESTING OF KNOWLEDGE Q1. WHEN WAS BRAHMO SAMAJ FOUNDED? Q2. WHO FOUNDED ARYA SAMAJ? Q3. WHAT WERE THE CONTRIBUTIONS OF SIR SYED AHMED KHAN? Q4. WHO STARTED HOMERULE MOVEMENT? Q5. LIST EVILS THAT EXISTED IN INDIAN SOCIETY? Q6. WHY REFORM MOVEMENTS DID NOT BECOME POPULAR? BACK TO IND From Social religious reform movements 19th centuryMany Indians realized that the reform of social institutions and religious outlook of people was a necessary pre-condition for the growth of national unity. Through successive movements they carried forward the pioneering work started by few enlightened Indians. This was a difficult task as orthodox elements formed large and strong groups in the country. During the second half of 19th century only two important laws were passed by the British government. One of these passed in 1872 sanctioned inter-caste and inter-communal marriages. The other passed in 1891 aimed to discourage child marriage.Brahmo Samaj Young Bengal Movement Ishwar Chandra Vidyasagar Veda Samaj and Prathana Samaj Rama Krishna and Vivekananda Arya Samaj Theosophical Society Sayyid Ahmad Khan and the Aligarh Movement Cultural awakening Seva Sada: It was founded in 1885 by Behramji Malabari (Parsi social reformer). It was a humanitarian organization that specialized in care of discarded and exploited women specially widows. It provided for education and welfare of women and encouraged widow remarriage. Servant of India Society founded by Gopal Krishan Gokhale in 1905 for social service. Indian National Social C onference:An offshoot of Prarthana Samaj, founded by Ranade and Raghunath Rao. Its conference was held in 1887 at Madras sharing the platform with the annual session of INC. It virtually became social reform cell of INC. Social Service League was founded in 1911 by N. M. Joshi to collect social facts, discuss them and build public opinion on question of social service. Seva Samiti: It was founded by Hridayanath Kunzru in 1914 at Allahabad to organise social service, to promote education and to reform the criminals and other fallen elements of society. Pandit Ishwar Chandra Vidyasagar:Pandit Ishwar Chandra was a great educator, humanist and social reformer. He was born in 1820 in a village in Midnapur, Bengal. He rose to be the Head Pandit of the Bengali Department of Fort William College. He firmly believed that reform in Indian society could only come about through educ ation. Vidyasagar founded many schools for girls. He helped J. D. Bethune to establish the Bethune School. He fou nded the Metropolitan Institution in Calcutta. He protested against child marriage and favoured widow remarriage which was legalized by the Widow Remarriage Act (1856).It was due to his great support for the spread of education that he was given the title of Vidyasagar. Jyotiba Phule: Jyotiba Phule belonged to a low caste family in Maharashtra. He waged a life-long struggle against upper caste domination and Brahmanical supremacy. In 1873 he founded the Satya Shodak Samaj to fight against the caste system. He pioneered the widow remarriage movement in Maharashtra and worked for the education for women. Jyotiba Phule and his wife established the first girls’ school at Poona in 1851. Saint Ramalinga: Saint Ramalinga was one of the foremost saints of Tamil Nadu in the nineteenth century.He was born on October 5, 1823 at Marudhur, near Chidambaram. He was the last son of his father, Ramayya Pillai and mother, Chinnammayar. Developing a deep interest in spiritual life, Ramalinga m oved to Karunguli in 1858, a place near Vadalur where the Saint later settled down. His divine powers came to be recognised at the early age of eleven. In 1865 he founded the Samarasa Suddha Sanmargha Sangha for the promotion of his ideals of establishing a casteless society. He preached love and compassion to the people. He composed Tiru Arutpa. His other literay works include Manu Murai Kanda Vasagam and Jeeva Karunyam.His language was so simple as to enable the illiterate people to understand his teachings. In 1870 he moved to Mettukuppam, a place three miles away from Vadalur. There he started constructing the Satya Gnana Sabai in 1872. He introduced the principle that God could be worshipped in the form of Light. Sri Vaikunda Swamigal: Sri Vaikunda Swamigal was born in 1809 at Swamithoppu in the Kanyakumari district of Tamil Nadu. His original name was Mudichoodum Perumal but he was called Muthukkutty. He preached against the caste system and untouchability. He also condemned r eligious ceremonies.Many came to his place to worship him and slowly his teachings came to be known as Ayyavazhi. By the midnineteenth century, Ayyavazhi came to be recognized as a separate religion and spread in the regions of South Travancore and South Tirunelveli. After his death, the religion was spread on the basis of his teachings and the religious books Akilattirattu Ammanai and Arul Nool. Hundreds of Nizhal Thangals (places of worship) were built across the country. Self-Respect Movement and Periyar E. V. R. : Periyar E. V. Ramaswamy was a great social reformer. In 1921, during the anti-liquor campaign he cut down 1000 coconut trees in his own farm.In 1924, he took an active part in the Vaikam Satyagraha. The objective of the Satyagraha was to secure for untouchables the right to use a road near a temple at Vaikom in Kerala. E. V. R. opposed the Varnashrama policy followed in the V. V. S. Iyer’s Seranmadevi Gurugulam. During 1920- 1925 being in the Congrees Party he s tressed that Congress should accept communal representation. Subsequently in 1925, he started the â€Å"Self-Respect Movement†. The aims of the ‘Self-Respect Movement’ were to uplift the Dravidians and to expose the Brahminical tyrany and deceptive methods by which they controlled all spheres of Hindu life.He denounced the caste system, child marriage and enforced widowhood. He encouraged inter-caste marriages. He himself conducted many marriages without any rituals. Such a marriage was known as â€Å"Self-Respect Marriage. † He gave secular names to new born babies. He attacked the laws of Manu, which he called the basis of the entire Hindu social fabric of caste. He founded the Tamil journals Kudiarasu, Puratchi and Viduthalai to propagate his ideals. In 1938 at Tamil Nadu Women’s Conference appreciate in the noble service rendered by E. V. R. he was given the title â€Å"Periyar†.On 27th June 1970 by the UNESCO organization praised and ado rned with the title â€Å"Socrates of South Asia†. Social Policies and Legislation  : Social Policies and Legislation-In the beginning, the British interest was limited to trade and earning profits from economic exploitation. Therefore, they did not evince any interest in taking the issue of social or religious reforms. They were apprehensive of interfering with the social and religious customs and institutions of the Indians because of the fear that they might lose trade advantage. Thus, they adopted the policy of extreme precaution nd indifference towards social issues in India. The one reason why they indulged in criticizing the customs and traditions of India was to generate a feeling of inferiority complex among the Indians. However, in the mid-19th century the social and religious movements, launched in India, attracted the attention of the Company’s administration towards the country’s social evils. The propaganda carried out by the Christian missionari es also stirred the minds of the educated Indians. Western thought and education and views expressed in different newspapers and magazines had their own impact.Some of the British administrators like Lord William Bentinck had evinced personal interest in the matter. There were primarily two areas in which laws were enacted, laws pertaining to women emancipation and the caste system. Social Laws Concerning Wome  : The condition of women, by the time the British established their rule, was not encouraging. Several evil practices such as the practice of Sati, the Purdah system, child marriage, female infanticide, bride price and polygamy had made their life quite miserable. The place of women had come to be confined to the four walls of her home.The doors of education had been shut for them. From economic point of view also her status was miserable. There was no social and economic equality between a man and woman. A Hindu woman was not entitled to inherit any property. Thus, by and large, she was completely dependent on men. During the 19th and 20th centuries some laws were enacted with the sincere efforts of social reformers, humanists and some British administrators to improve the condition of women in Indian society. The first effort in this direction was the enactment of law against the practice of Sati during the administration of Lord William Bentinck.Female Infanticide  : Female infanticide was another inhuman practice afflicting the 19th century Indian society. It was particularly in vogue in Rajputana, Punjab and the North Western Provinces. Colonel Todd, Johnson Duncan, Malcolm and other British administrators have discussed about this evil custom in detail. Factors such as family pride, the fear of not finding a suitable match for the girl child and the hesitation to bend before the prospective in-laws were some of the major reasons responsible for this practice. Therefore, mmediately after birth, the female infants were being killed either by fee ding them with opium or by strangulating or by purposely neglecting them. Some laws were enacted against this practice in 1795, 1802 and 1804 and then in 1870. However, the practice could not be completely eradicated only through legal measures. Gradually, this evil practice came to be done away through education and public opinion. Widow Remarriage: There are many historical evidences to suggest that widowremarriage enjoyed social sanction during ancient period in India.In course of time the practice ceased to prevail increasing the number of widows to lakhs during the 19th century. Therefore, it became incumbent on the part of the social reformers to make sincere efforts to popularize widow remarriage by writing in newspapers and contemporary journals. Prominent among these reformers was Raja Rammohan Roy and Iswar Chandra Vidyasagar. They carried out large scale campaigns in this regard mainly through books, pamphlets and petitions with scores of signatures. In July 1856, J. P.Gr ant, a member of the Governor-General’s Council finally tabled a bill in support of the widow remarriage, which was passed on 13 July 1856 and came to be called the Widow Remarriage Act, 1856. Child Marriage: The practice of child marriage was another social stigma for the women. In November 1870, the Indian Reforms Association was started with the efforts of Keshav Chandra Sen. A journal called Mahapap Bal Vivah (Child marriage: The Cardinal Sin) was also launched with the efforts of B. M. Malabari to fight against child marriage. In 1846, the minimum marriageable age for a girl was only 10 years.In 1891, through the enactment of the Age of Consent Act, this was raised to 12 years. In 1930, through the Sharda Act, the minimum age was raised to 14 years. After independence, the limit was raised to 18 years in 1978. Purdah System: Similarly, voices were raised against the practice of Purdah during the 19th and 20th century. The condition of women among the peasantry was relati vely better in this respect. Purdah was not so much prevalent in Southern India. Through the large scale participation of women in the national freedom movement, the system disappeared without any specific legislative measure taken against it.Struggle against the Caste System and the related Legislation: Next to the issue of women emancipation, the caste system became the second most important issue of social reforms. In fact, the system of caste had become the bane of Indian society. The caste system was primarily based on the fourfold division of society viz. Brahmins, Kshatriya, Vaishyas and Shudras. On account of their degradation in their social status, the Shudras were subjected to all kinds of social discrimination. In the beginning of the 19th century the castes of India had been split into innumerable subcastes on the basis of birth.In the meantime, a new social consciousness also dawned among the Indians. Abolition of untouchability became a major issue of the 19th century social and religious reform movements in the country. Mahatma Gandhi made the removal of untouchability a part of his constructive programme. He brought out a paper, The Harijan, and also organised the Harijan Sevak Sangh. Dr. Bhimrao Ambedkar dedicated his entire life for the welfare of the downtrodden. In Bombay, he formed a Bahiskrit Hitkarini Sabha in July 1924 for this purpose. Later, he also organised the Akhil Bharatiya Dalit Varg Sabha to fight against caste oppression.Jyotirao Phule in Western India and Shri Narayana Guru in Kerala respectively established the Satya Shodhak Samaj and the Shri Narayana Dharma Partipalana Yogam to include self-esteem among the downtrodden. In the Madras Presidency also the beginning of 20th century witnessed the rise of Self-respect Movement of Periyar E. V. R. In order to eradicate this evil practice many other individual and institutional efforts were also made. These movements were directed mainly in removing the disabilities suffered by Harijans in regard to drawing of water from public wells, getting entry into temples and admission into schools.

Mass Incarceration - 802 Words

In Michelle Alexander’s The New Jim Crow, Alexander identifies the racialized mass incarceration problem that we have in our criminal justice system. Reading the book, you can see that mass incarceration is a social problem. This means that the problem can follow the six stages of the policy process. If I were a claimsmaker, I could assert that mass incarceration is a problem by following the six stages. In the claimsmaking stage, I would claim that the War on Drugs creates the racialized mass incarceration in our society today. To show that we have a racialized mass incarceration is a problem, I would bring up statistics to prove we have one. There are about 1.6 million people in prison in the United States (Alexander 101). In 2006,†¦show more content†¦So these people are in a cycle of going back to prison (causing the mass incarceration problem) and possibly selling or doing drugs again (causing drugs to be on the street again). In the policymaking stage, I would e xpect policymakers to realize that they need to create a policy limiting the War on Drugs or stopping the War on Drugs all together. With the idea of stopping the War on Drugs put forward, I would expect the media coverage stage returning to cover the new idea for policies that will limit it stop the War on Drugs. Then, the public reaction stage will happen again and this will show to policymakers if they should continue pushing forward the policy to limit the War on Drugs or to continue working on the policy. If the policy is pushed forward, the social problems work stage would happen. In this stage, I would expect the new War on Drugs policy to be completed and any changes needed will be noticed and worked on. In the policy outcomes stage, I would expect the policy that limits the War on Drugs to be a positive first step in solving our mass incarceration problem. The public would respond again and I would expect a mostly positive view with few people saying that the policy goes to o far and lets out too many people get away get drug charges. I would also expect to see the reaction that the problem is taking too long to solve as the policy willShow MoreRelatedThe Problem With Mass Incarceration1445 Words   |  6 Pages The Problem with Mass Incarceration Over the past few decades, the United States has witnessed a huge surge in the number of individuals in jail and in prison. Evidence suggests the mass imprisonment policy from the last 40 years was a horrible catastrophe. Putting more people in prison not only ruined lives, it disrupted families, prevented ex-prisoners to find housing, to get an education, or even a good job. 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