The theories applied in your firm are the customs separating the business. The response to the questions of what quite a business is and why business happens are very vital in acquiring a systematic governance. In our business, we run sewing operations for canvas, sweaters and blankets. The most annoying challenge we face in our firm is how to keep finding new and unforeseen ways of creating value. And this is what has been termed as corporate theory by Zenger in his book ‘what is the theory of your firm’. In our business model, leaders draw from existing knowledge and previous experience to design a theoretical and cognitive model of the business and come up with an educated hypothesis about where they can find valuable activities, capabilities and resources.

Our current business models use foresights, insights and cross-sight. In foresight, the management uses ideas and anticipations of the industry to predict on customer perceptions, expectations and demands. The foresight is the drive to our future actions on investment, asset acquisition and partnership. In insights, the management ensures they have a profound perception of the current assets and activities of the business. With this knowledge, they are able to define that which is rare, valuable or different. For instance, our key insight is to recognize the value of the company early and a substantial investment in sewing machines and final products and use them to create unique, timeless and new characters required by new agents. In cross-sight, the management has discovered how to integrate and combine assets and business activities to increase on value.

For instance, the sewing machines which are the assets combined with sewing activities would help us increase on our final product. The management wants a successful business but they have realized that in order to achieve success in business, they have to do more than control costs and share customers. According to Ersek, echoed by Girotra & Netessine this is done from breaking the rules of the game and overturn how things have worked before.

Executive Summary

The Airline market has increasingly become competitive particularly with the speedy increase in low cost airlines, revival of airlines that were previously kicked out of the market and the growth of full service carriers. Meanwhile, Pier7 airline is aimed at focusing adequately on the premium segment of the aviation market to strengthen its business. Our marketing tactics will be predominantly focused on the sales promotions instead of brand building. With these adverse odds, our sales efforts which are intensifying we believe could generate exceptional yields which will in turn be sufficient in a competitive cost structure within the Airline industry. Our motto is to fly in high service standards because of the superb variant efforts of the Pier7 team. SIM-Pier7 Aviation team aims at providing recurrent and initial type of training to Full flight stimulators operators and high level training for civil and commercial pilots. With plans of being an independent player in the aviation industry, SIM-Pier7 has received subsequent permission and certifications from numerous aviation regulation authorities (South Africa, Europe, China, India, Russia and United Arab Emirates. To start the consolidation process of our group, we aim at implementing high level strategies of pilot training through an M&A consolidation process that has matured fast in western countries and still growing fast in Asian countries.

Development strategies for the Pier7 Group will be executed as discussed below;

• An increase in group revenue as well as profitability through acquisition of current refinancing and new stimulators from its existing FFS in Paris
• Debut of a pilot training center at Xi’an but working with particular Chinese partners
• Making the group the very first independent center that offers pilot training in China with an aim of making a way for future SIM project in Asia, China as well as Africa with the same partnership
• In the same context, SIM-Pier7 will need a funding amount up to USD 25 million in a short term period basing on how projects should be implemented.

Vision

A chance to make an impact in Airline industry through embarking on Full Flight Stimulators linking to the exponential evolution of Cadet pilots that is increasing universally.

Mission

• To enhance the group’s image through provision of a quantitative training in a continuous process
• Increase provision of exceptional training in FFS (Full Flight Stimulators for all our future pilots particularly in combating the skills and knowledge in aviation

Objectives

• To create a small though profitable aviation network
• To win a larger percentage of aviation customers
• Have a relentless focus on costs
• Keeping aviation procedures and practices simple
• Bridging the gap in finances
• Create a stronger shareholder support with an understanding management

Industry Analysis and trends

The outlook demand for airline operators in the Africa, Asian and Western markets continues to grow strong with fuelling from the burgeoning middle class as well as an increase in intra-regional and universal trade. Basing on the forecasts of trade flows, GDP and other factors in the aviation industry, there is an anticipating that the demand for flights will double with the coming years. This opportunity brings a sizeable chance for all airlines within the region to determine their nature of profit. This scenario means that the aviation market and environment is challenging. For us success in a challenging environment would mean coming up with a different approach which we believe can be earned through developing a leading cist position and also creation of an exceptional value proposition to consumers. In this market, we shall perform both.

Year	units	ASP	flights	% increase in profit
2012	1330	55000	9500	30%
2013	1760	60000	12500	40%
2014	2300	63000	14500	50%
2015	3000	66000	17500	60%

 

Competitive analysis

There are more than 30 companies in the Asian and Western markets that have been developed to address the debut of low cost airlines. Competition within the industry revolves around Multibillion dollar corporations to startup businesses that also aim at taking over Asian, American and African markets. The management at PIER7 believes that the existing companies do not pose any threat to internal business operation.

Marketing strategy

With an increase in the demand for pilots in the next 15 years, our marketing strategy we believe is what will sell us out to customers. Our flights will mainly address the aspect of price, innovation, quality and service. In order to improve our connections with our end users, we shall keep improving on our innovation strategies on every plane annually. Our prices will range from $10000 for low cost flights to $ 50000 for expensive trips. To begin our operations, we will require about 15% of the total amount to make a single purchase of a plane. With the knowledge of the needs of end users, Pier 7 marketing department shall be reinforced through monthly salaries and tips for high performance.

The graph below shows the projected growth for pilots in the next decade and a half

Team collaboration, professional communication and automatic scheduling have been a problem in the nursing profession. In the present system of healthcare delivery, models of patient delivery are done in varying levels of occupational training and educational levels. Within a four day course of treatment, a patient might interact with over 50 different employees and this is for the purpose of effective treatment. However, because of working together, there are reasons that nurses working in a team should have to increase trust, team communication and partnership in service delivery (Patterson, Grenny, McMillan & Switzer 2011). Effective clinical practice calls for sharing critical information accurately and timely for all members within the team. Because team collaboration is needed for effective practice, healthcare professionals must design clear orders at every time, avoid telephone communication and ensure information is not exaggerated in the process of information delivery. A fundamental strategy in sharing effective communication should also be developed hierarchical structure. That is, the flow of information should be initiated at the top of the hierarchy and flow down to other departments with the same order of message. Sending the same message across all departments reduces errors and conflict while increasing influence and power of nurses to act on the specific message.

Night shifts can be stressful and busy for nurses because of lack of energy to focus and be attentive the following day. For nurse meetings, it is essential that the hospital keeps a fair routine for all nurses. For instance, to have the night shift refreshed from a week of hard work, there can be a different team that takes up night shift every weak to relieve the other group of tiresomeness of working at night (Hills 2013). In convenience of sharing, communication routines should be set up in a way that will not affect the concentration patterns of those from night shift. For instance, nursing organizations can have consistent meeting at the beginning of the week, say on Monday morning so that both groups can attend with convenience. Additionally, the hospital can also have information printed on papers and taken round different departments for them to read and sign that communication has reached them.

 

A fundamental role of criminologists in the society is to study information from existing theories on how to stop crime and basing on the information gathered advice policy makers and the criminal justice system on how to actively implement these theories into social platforms. Social learning theory of public policy explains how criminals learn criminal behavior from criminal behavior exhibited by other individuals.

Social learning theory

These theories are formed on the basis of people forming and having diverse associations with institutions, peers, family and other people around them on a usual basis that lead to crime. Family associations have a higher role to play when deciding criminality aspect of an individual. If these relationships are positive then there is success within usual law boundaries. If family relationships are negative then criminality prevails. Because individuals are not realistically expected to succeed within acceptable ways within the community, they only way they might be successful are through committing crime. Implications of this theory majorly affect young people because they teach offenders on the dangers of associating in bad behavior. These theories have further caused criminologists to warn the society on the dangers of negative behavior with attempts to rehabilitate those in criminal activities (Siegel 2010).

Strain and control theories

Strain and control implications fall under Social structure theories. These theories mainly focus on the economic and social structures within the society that work together to decrease and prevent crime. Policy implementation in strain and control theories is equally important to the lower socio-economic class within the society causing them to develop their own cultures to stop criminal behavior. Head State programs discussed in strain and control theories provide criminals with job opportunities, education and recreational programs to decrease their attention to crime (Siegel 2008).

Introduction

The terrorism attack on New York City on 11 September 2001 is a past history that remained personal to every firefighter in terms of saving of lives despite what would occur. On that particular day, two paramedics, three hundred and forty firefighters and one FDNY chaplain died while trying to save lives. The terrorism episode necessitated the Firefighters Department of New York (FDNY) to heighten their fire fighting strategies in order to manage to respond to everything ranging from radioactive, biological and chemical fire sniper attacks (Frawley, 2012). The attack necessitated the firefighters to widen their crackdown and skills of fighting fires of such magnitude and to look beyond fighting the fires but to have the skills of predicting the future attacks which might necessitate them to respond on time. The research will demonstrate the effect of the September 11 attack on the New York City firefighters.

The effect of the September 11 attack on the New York City firefighters

The September 11 attack revealed to the firefighters and the Americans that ideas and terrorism might swift quickly across the continents and the world. It was a clear indication that the terrorists have the power and ability to use lethal devices which borrows their technology from the bomb departments to cause harm, property destruction and lives of the citizens (Niles, et al. 2011). Nonetheless, the work of the firefighters in United States and in particular those of the New York City have not yet changed much since the attack. The role of the firefighters still remains to putting out the fires and getting the victims of the attack to hospitals. Despite this, there have been fundamental changes in attitude of the firefighters, sheriff officers, police and emergency medical personnel. The firefighters have been necessitated to understand that it is not whether the attack shall happen but be aware of when it shall happen.

Although the United States firefighters, emergency medical personnel and officers have made great achievements in preparing for the terrorist attacks, there still remain substantial changes to be made in the department. As a matter of fact, the firefights communication with other agencies needs to improve in regard to responding to the large scale incidents (Mantel, 2010). Given the mass casualties in 9/11 attacks, the firefighters and other agencies have been able to receive advanced training in order for them to acquire the awareness and the skills to tackle the attacks of such magnitude. In addition, the firefighters managed to obtain better equipment for responding to the terrorist attacks. The fact that most of the firefighters who participated in the rescue process of the victims of the 9/11 attacks were not well prepared of attack of such magnitude, most of them began to exhibit consistent signs and symptoms of respiratory challenges. The signs and symptoms faced by the firefighters ranged from general cough to severe distress.

After the attack, most of the firefighters together with the other first responders of the attack continued to suffer from the psychological trauma and respiratory ailments. The September 11 attack was heartbreaking in numerous ways. Apart from lack of equipment and supplies and communication challenges, the firefighters sprung in action to respond to the attack by doing whatever they could in aid of the victims around the Washington DC Times Tower (Scoppetta, 2015). As a result of the firefighters’ response to the attack and their love for their job, they developed health problems which hindered them from going back to their work.  Other returned to their stations but they were unable to continue with their mission and work and had to opt for early retirement. The forced early retirement of the firemen who participated in the rescue process in the September 11 attack turned their life upside down.  In order for them to cope up with life they were necessitated to adjust their lifestyle as most health condition had already been affected by the dust from the blast while others had already been made disabled.

The tragedy of September 11 made the firefighters to be vigilant always and to consistently train harder in order to acquire the modern training and skills of tacking the terrorism attack. They realized that every procedure they carried during the attack had it own experience (Scoppetta, 2015). They also came to realize that the more than anything, the quality of skill of the colleagues determines the extent or the quality of response require for an attack of high magnitude. The attack educated the firemen that fighting the attack is not about the people working in the fire department but is all about the love of the firefighting job, risking their lives and saving the lives of the victims.

Due to uncoordinated cooperation and communication among the firefighters and other agencies which participated in the rescue mission in 9/11 attack, the aftermath of the attack which led to the death of many firefighters necessitated and motivated them to observe the public safety by improving their interactions.  The firefighters today are required to adopt and use common radio language in case of an emergency in order to avoid them from suffering from the health and psychological challenges. The September 11 attack provided a good opportunity for the firefighters to recognize the chemical threat and homemade explosives and to determine how events in other states might affect them (Scoppetta, 2015). Given that the September 11 was not the first terrorism attack in the American soil; the firefighters were made to understand that any disruption of relationship across that globe might be exposed to United States. Therefore, the firefighters in United States were necessitated to learn every emerging technology in order to be in a better position to react to the terrorist just in case of an attack. The firefighters came to learn the significance of sharing security information despite how insignificant they might seem at the first glance.

The impact of the September 11 attack was a wakeup call for the firefighters because they were forced acquire firefighting equipment and trucks equipped with radiation detection devices prior to entering a zone of attack characterized with radiation unknowingly. Installing the devices in these trucks and firefighting equipments enabled them to set up the safety zones (Mantel, 2010). Moreover, the attack also taught the firefighters how to get access to the back-up gear which contain fundamentals such as chemical protective clothing and air purifying respirator which would basically protect them from injuries and enable them save lives of the victims. The 9/11 attack change everyone, it change the way the Americans did things, the way they though and dramatically the way the safety department viewed the fire department.

The firefighters are still concerned with the potential harm and symptoms they acquired while rescuing the victims of the September 11 attacks. The recent study revealed that the Ground Zero air contained more than four hundred chemicals which damaged the lungs of more than 12,000 firefighters. The attack necessitated the Fire Department in New York to increase its funding to the firefighters after it realized that they were facing huge risk in their efforts of rescuing victims. Apart from the fire department increasing funding, it promised to safeguard the health of the firefighters in case of a disaster of such magnitude.  The September 11 tragedy in New York City was physiologically and psychologically damaging to both the firefighters and their family (Mantel, 2010). As a matter of fact, the firefighters who managed to make it without being hurt; they started to develop signs of psychological distress. Given the fact that the firefighters came into contact with the reality of the attack, they began to experience frustration and anxiety afterwards. As a result, the Fire Department in New York City came to realize the need for specialized care and counseling after an emergency of such magnitude to the firefighters and their families as part of the department psychological and emotional intervention measures.

Conclusion

The September 11 attack revealed the firefighters shortage in United States which necessitated the Department of Homeland Security to increase the number of the firefighters in the country and to train them in order for them to acquire the modern skills of dealing with attacks of huge magnitude. The American came to understand that through the adoption of highly skilled firefighters, they might be in a better position to protect its citizens and to reduce the number of fatalities just in case an attack of huge magnitude is to happen. The attack was therefore a source of employment for most firefighters in United States because the fire department and United States government realized that the firefighters and the firemen had the power to rescue victims efficiently and to respond to the calls from the other agencies dealing with the attack. The September 11 attack was a wakeup call for the fire department in New York City, firefighters and the United States government.

 

References

Frawley, K. (2012). The effects of 9/11 on the fire fighter labor market. New York Publishers.

Mantel. R. (2010). How 9/11 terror altered job of firefighters, cops. Retrieved from:  http://www.marketwatch.com/story/after-911-firefighters-cops-face-new-challenges-2011-09-10

Niles, et al. (2011). The impact of the World Trade Center attack on FDNY firefighter retirement, disabilities, and pension benefits. US National Institute of Health Journal. Vol.54(9), Pp.62-80.

Scoppetta, N. (2015). How the unthinkable losses on 9/11 reshaped the FDNY. US Homeland Security Department Journal. Vol. 3(1), Pp23-39.

 

Companies around the globe continue to dedicate huge resources to safeguard and protect their sensitive information from cyber attacks and cyber criminals. Due to increased level and frequency of cyber attacks to most organizations across the world, they are currently necessitates to insure themselves with the insurance companies so that in case of loses they may be in position to cover their liabilities. As a result, there are various insurance coverage options for the companies various existing products which might be provided by the insurance companies to protect the valuable organizational assets from damage by the data crackers and hackers (Ahmad & Markell, 2016). It is fundamental for most organizations at the risk of cyber attacks to understand the fundamental insurance coverage which might apply in case the cyber attacks happen upon them.  The organizations under the risks of cyber attacks must understand that they might occur in terms of data breaches. The work will demonstrate how the different insurance policies might be used to hedge against the recent cases of cyber attacks in most organizations.

Definition of Terms

Cyber attacks – An attempt to destroy, hack and damage computer system and network

Internet of Things –proposed internet development in which everyday objects are connected with the internet in order to allow data sending and receiving.

Insurance Policy- a document giving details of the insurance contract terms and conditions

Operational technology- Category of software and hardware that controls and monitors how the physical devices perform

Cyber Insurance- policies adopted by the organizations in order protect them from cyber attacks.

Data Breach-security incident in which confidential, sensitive and protected data is transmitted to the unauthorized users

The organizations’ information and data vulnerable to cyber attacks is constantly evolving with time. Although some hackers and crackers of the organizations data and information do engage in cyber crime and attacks for profit purposes, other do engage in the crime in order to cause fear and disrupt peace in the society. The modern operational technology and Internet of Things have played a critical role of encouraging individuals and organization to participate in cyber crimes (Zoogman, 2012). Hence, it has become the function of the organizations boards of directors and executives to adopt the cyber security approaches in trying to solve the supply chain risk, potential down time and product recall in order to avoid the supply chain risk. The cyber insurance policies usually vary from one insurance company to the other. Therefore, it is the role of every organization in operation to understand the kind of cyber crimes and risks it is likely to encounter during the operation before enrolling for an insurance policy to cover them.

The increased cases of data corruption, breaches and ransom ware in most organizations have necessitated them to look for means and strategies of lessening the cyber risks impacts. Despite the fact that there are numerous strategies which have been adopted by organizations to hedge them from cyber crimes, it should be understood that there is nothing like absolute cyber security in the modern times. As a result, insurance companies have realized the cyber security gap hence the need for them to provide these organizations with the cyber security and privacy insurance policies (Goforth, 2015). The fact that the cyber crimes have evolved, the insurance companies have been necessitated to adjust their insurance policies in order for them to be in line with the cyber attacks against these organizations. The modern cyber attacks against organizations have moved from being purely technical process to more governance related exercise. The risk management process has necessitates the insurance organizations to speed up the process of insurance policy implementation in order to avoid the risks and liabilities associated with cyber attacks.

The privacy insurance and cyber security policies usually covers direct costs associated with the security breach such as business interruption, investigation and notification costs. The insurance policies might be adopted by the organizations in order to cover the organizations’ damages and liabilities cause by the clients. In order for the organizations under the risk of cyber attacks to buy the appropriate cyber insurance policy they are required to understand the risk management strategy and profile (Blowfield & Frynas, 2005). The insurance policies adopted by the organizations usually protect them from: Notification costs, forensic investigative costs, business interruption, crisis management expenses, data restoration costs, cyber extortion costs, regulation proceedings, Network security liability, privacy liability and internet media liability. In addition, although these are just some of the basic insurance policy coverage, the social engineering fraud, reputation harm, privacy policy and cyber liability might be addressed by the insurance policies adopted by the insurance companies.

As a matter of fact, each organization is unique in its own way and much of its cyber risks and the risks in general might depend on the kind of the information the organization holds, how it engages with its clients and how its operates in the economic environment. The appropriate cyber insurance solution for an organization shall depend hugely on how clear the organization is having a clear understanding of its risk profile. In the new cyber world, one size fits all strategy in fighting the cyber crime attacks would not work. Having a risk management strategy is vital for the organization’s future success (Goforth, 2015). Prior to the organization obtaining the insurance policies to cover themselves from the cyber attacks and risks it is important for them to establish the policies appropriate in covering the risks.  The dramatic increase of data breaches in most organizations across the globe has necessitated them to adopt strong response from the insurers, policymakers and consumer groups.

According to the experts, the frequency of the reported organizations data being breached seems to be increasing drastically. As the insurers continue to depend on electronic data transmission and Internet based services internet based services, their exposure to cyber risks and attacks increased. Data breaches in organizations normally differ in their traits. Some organizations data breaches usually involves deliberate intention of stealing of the personally information for the purpose of committing fraud. Data storage is an aspect that makes data breaches extremely important for the insurers. The insurers must be concerned with the security strategies used by their vendors (Goforth, 2015). The insurance companies’ data breaches have been received with different reactions from the various insurers. Data breaches have also necessitated various countries to change their insurance procedures and policies for preventing the future data breaches. Data breaches may be time consuming and expensive for both the individuals and firms impacted by the data breaches. The time and cost of recovery from the data breach vary according to the circumstances of the breach. Due to the changes in law and new rules evolvement the data breach recovery is like to change.

Although most organizations are committed in controlling the data breaches it is still hard for them to estimate and quantify the ultimate costs of organization data breaches. In fact, there are damages which might be caused by individuals working for the organizations and they fail to hold the individuals liable for the damages caused. However, the data breach damages for most organizations may include: credit monitoring services, lost wages and identity insurance theft. In addition, data breach in organizations may result into productivity loss, penalties, fines and court suits from the affected parties (Blowfield & Frynas, 2005). Despite the fact that the organizations might have insured themselves from the data breach costs and liabilities, the insurance companies might fail to cover large portions of data breach associated costs such as loss of the organizations’ reputation, priority information, trade secrets and the negative impact of the stock prices . In the past, organizations expected minimum data breach suits which would be litigated since the federal resources were limited and many states had not yet allowed private right of action after data breach. Recently, litigation after data breaches has become familiar in exploiting their private rights of action. The common proposed federal legislation for addressing data breaches in most of the modern organizations may include: data security breach notification, fortify and secure electronic data, data breach notification and personal data protection and breach accountability Act of 2011.

Insurers from the various industries and organizations have responded to the aspects associated with privacy breaches in different ways. As a result, some insurers have become leaders of the organizations privacy protection. Due to the financial costs associated with the data breach, the insurers have realized the need to adopt a variety of insurance products in order to minimize the potential impact and costs associated with data breach. Apart from the risk management strategies, both the insurers and non-insurers have a variety of insurance policies which they might use to reduce the potential costs associated with data breaches (Bragge, 2006). As a matter of fact, secure insurance coverage for addressing the data insecurity is fundamental in preventing the losses for the organizations. Basically, organizations using outside consultants to prevent and hedge the organization from data breaches have lower overall costs.  Most organizations fail to obtain insurance policies at the right time because of: inadequate information by the firms in regard to the insurance coverage, underestimation of the organization’s exposure to data breach risks and fear of insurance policy costs. Moreover, organizations risk management solutions such as strict policies related data security practices vendor and internal data security might discourage the firms from obtaining or purchasing insurance coverage. Despite the organizations decline to obtain insurance coverage, cyber insurance still matters in the modern time. The fact that the magnitude and frequency of the data breaches in most organization have necessitated the organizations to secure their sensitive data from data breaches.

Based on the industry that an organization operates in, it must decide the appropriate insurance policies that it should adopt in order to avoid data breaches and the associated costs. Understanding the legislative and legal environment surround privacy breaches is fundamental for the insurers in developing the insurance products for the emerging market place and risk management guidelines (McCullough & Gatzlaff, 2012). In case of cyber attack, it is important for the injured organization or individual to notify the insurance companies. It is the responsibility of the company personnel to work as a team in ensuring the relevant data that led to cyber attack in order to provide the appropriate insurance policy to solve the data breaches. Prior to the organization obtaining insurance policies it is important for them to involve the technology managers, risk managers and insurance managers in order to ensure that the right insurance for the organization is obtained.

In conclusion, there are different insurance policies which might be used by various organizations to hedge themselves from cyber attacks such as data breaches. The fact that most insurance companies would be resistant in covering most of the cyber attack and crime, it is important for the organizations to take the insurance policies with a lot of tender care. The value of the insurance policies in the modern times of data breaches, cyber risks, cyber attacks and hacks might not be under estimated.

References

Ahmad & Markell, (2016). Cyber security and privacy insurance. Fraud Prevention Institute for Employee Benefit Plans Journal. Vol. 1, Pp. 8-10.

Blowfield & Frynas, (2005). Editorial Setting new agendas: critical perspectives on Corporate Social Responsibility in the developing world. International affairs.

Bragge, J.(2006) A repeatable e-collaboration process based on think lets for multi-organization strategy development. Oxford University Press.

Goforth, A. (2015). Brokers respond to boom in cyber security demand after Anthem Hack. New York Publishers.

McCullough &Gatzlaff, (2012). Implications of privacy Breaches for Insurers. Insurance Regulation Journal. Vol. 46, Pp. 198-216.

Zoogman, J. (2012). Insurance Options: Cyber attack.  Retrieved from: www.fiancial executives.org

 

Introduction

United States shared a long cooperation and friendship history with Kuwait which are rooted on the two countries democratic traditions, shared values and institutions. [1]Prior to Kuwait gaining independence, it had already established a diplomatic relationship with Kuwait. Kuwait has been fundamental in the United States efforts in provision of security to the Persian Gulf region because of the country’s strategic location, close cooperation with United States and objection of the Past Iraq aggression. Even before Kuwait had attained its independence in 1962, it had already established a formal defense cooperation agreement which ensured that United States maintained prepositioned military equipment and military forces in Kuwait. The military forces of United States enabled it to project power in Kuwait and combat resistant that was being caused by the Islamic State. The work shall demonstrate the role of United States in Kuwait independence in 1962.

The role of United States in Kuwait independence in 1962

According to the research “A Struggle for Supremacy: Great Britain, the United States and Kuwaiti Oil in the 1930s,” British government had promised to control the Kuwait economic resources such as oil for the sake of its interest and would continue to resist any external force that would hinder it from achieving its objectives. [2]Nevertheless, the United States suggested that by Britain gaining control of the Persian Gulf it was infringing and assaulting the fundamental interests of United States following it long cooperation history with Kuwait.  Given the fact that United States were interested with strengthening its relationship with the Persian Gulf region and more specific Kuwait, it confessed to repel the assaults which were being committed to Kuwait  using the available means such as the use of the military force. The United States desire to strengthen its relationship with Kuwait necessitates it to use the power upon it to force the Great Britain to transfer its supremacy to United States.

The transfer of Britain supremacy in Kuwait to United States is believed to occur between 1920 and 1930. During this period, the oil concessions were being granted to the Persian Gulf region and more specifically in Kuwait because of its potential to produce huge amount of oil which would become the source of the government revenue and economic activity in the future.  Therefore, there is a strong ground to believe that by United States taking Great Britain supremacy of controlling Persian Gulf and Kuwait in Particular would guarantee it economic development and political centrality in Kuwait. [3]Hence, during the Inter-war period, the American Oil Companies managed to win a sufficient share of the oil reserves in Kuwait despite the facing severe opposition and resistance from the British Government. By 1934, the Standard Oil Company which was an American company held half of the share of the Kuwait Oil Company. In addition, the other United States oil Companies represented the multinational Iraq Petroleum Company which used to control the Qatar and Iraq oil mining.

With the consensus between United States and Kuwait for United States to continue controlling both political and economic affairs of Kuwait, the United States realized that it had the ability to involve itself on other influences in the country. Upon the new cooperation and relationship between United States and Kuwait, the American oil miners and workers were allowed to enter Kuwait under the leadership of the United States government representatives. Due to the benefits United States would accrue by forming a strong relationship with Kuwait, it was ready to prepared to use any political pressure to support the American companies which were seeking to be integrated in the Persian Gulf region more so in Kuwait.[4] The United States requested the Kuwait Government to make the American oil companies part of the concessions policy between the two governments. Two years later when United States was prepared to celebrate the Treaty of friendship with Kuwait, the British refused to renegotiate the treaty’s terms and conditions because it believed that by doing so, it would be protecting the American oil companies’ interests. Despite the British resistance to re-negotiate the peace treaty it had signed with United States, both the state department interests in politics and American oil in the Kuwait region increased.

The British government resisted United States economic acquisition in Kuwait and the Persian Gulf region because it already knew that the political involvement in the country territory would follow. The suspicion later followed in the future years prior to Kuwait gaining its independence in 1962. [5]After the Second World War, the American government decided to extend the lend lease to Kuwait government in terms of agricultural improvements, financial assistance and economic development in general. Therefore, it was clear that the United States government determination to fight for a larger share of the oil companies in Kuwait necessitates it to persistently fight for economic and political involvement in Kuwait and the Persian Gulf region.  The complex negotiation between Great Britain and United states in 1930 signaled the end of the Britain political and economic involvement in the Persian Gulf region to be more specific on Kuwait despite the fact that the full British military withdrawal in the region occurred in 1971. The naval, diplomatic, economic , political and supremacy battle gains by United States during the First World War at the expense of the Britain in Kuwait were believed to be irreversible in the future because they enabled Kuwait to gain its independence later in 1962.

Although the Great Britain imperial power and fundamental role in balancing the European power, United States failed to recognize its military strength and used its economic power and strategy to ensure that it captured and formed a strong relationship with Kuwait. Previously, both Great Britain and America recognized that the struggle for supremacy existed between them and Great Britain was not ready to resist the challenge that was being posed by America. Despite the fact that the United States managed to Capture and influence Kuwait to offer its oil companies a larger share in the economy, the Great Britain continued to retain Navy powers, its role in the European balance of power and its global strategic dominance. Nonetheless, in the attempt of both countries to gain more powers for controlling Kuwait they suffered internationally and financially.[6] As a result of United States economic confusion in the First World War, it had failed to influence Kuwait to be on its side to for strong economic ties. It was until in the Second World War II that United States managed to launch a successful economic challenge against the Great Britain. Given the fact that the Great Britain economic muscles were weaker than those of the United States it was necessitated to pass its supremacy in the Persian Gulf region and to be specific in Kuwait.

The transfer of the supremacy powers from the Great Britain to United States resulted to the Kuwait Oil Company being set up as an Anglo-American consortium. Given the fact that the American oil interest succeeded in Kuwait in the face of the irrefutable legal rights which were being held by the British Government as protecting and mandatory powers, United States managed to settle the debts which were being held by Kuwait. The United States promised Kuwait that the economic rights it was trying to attain would not be reflected in the political gains in the future between the two countries. [7]Nevertheless, the substantial oil interests’ acquisition by United States from the British government marked the start point for the American involvement in the defense and political affairs of Kuwait. Despite the fact that the British interest to the Persian Gulf would be dated back to the early 19^th Century, they were mainly based on the maritime. The British government believed that there should be no navel threat by the Gulf pirates around the Indian Ocean. In order for the British Government to succeed in its maritime interest it established permanent maritime naval. Nevertheless, the need to control the means of communications such as the sea and the land occurred.

The American oil companies were the most feared and powerful multinational companies in Persian Gulf with a long political influence history. [8]The American companies were believed to deal with the Kuwait rulers directly in order to gain their oil share in the market. Although the Kuwait rulers had agreed not to grant the oil concessions to any country or government without the agreement of the British Government which reserved the all the rights, the United States decided to use the economic strategy to initiate the changes and oil ownership in Kuwait. As a result, Kuwait rulers came to realize that despite the fact that Britain was a super power it could not manage to control United States economic supremacy. By the rulers realizing that they had the powers to control and decide for their economic and political direction for their country, they agreed to welcome the United States into their territory for economic development and for it to enhance Kuwait’s independence.

The negotiations saga among the United States, Kuwait and the Great Britain was believed to be technical, tedious and complex. Unlike the other states in the Persian Gulf region, Kuwait had comparative stable government and clear boundaries. Nevertheless, the formation of oil company consensus was made difficult by the fact that: the British government had already agreed with Kuwait not to form another agreement with another government and long economic disputes in the country. The United Oil Company pressure in Kuwait forced the Great Britain Government to do away with the oil war as well as Persian Gulf rights preservations. The process enlighten the Kuwait people as they managed to release that they had the powers for their resources and that they could terminate the previous agreements  and treaties they had formed with the Great Britain Government. [9]Kuwait understood that there was need for it to make a sacrifice in order for it to be in position to gain friendship with the Americans. Moreover, given the deteriorating international relations, Kuwait realized that there was the need for it to work together and cooperate with United States in order to overcome the aftermath of both World War I and II. Previously, Kuwait Government thought that it would manage to protect its oil field through the British government because it would manage to minimize foreign penetration in the control.

The America government and Oil Companies’ penetration into the Persian Gulf and Kuwait in particular revealed that the total exclusivity principle which had already been established by the British government was possible to be breached. In addition, the move demonstrated that America capital in Kuwait would be useful for peace making and stability as it would create a reconciliation attitude between United States, Kuwait and the British Government an aspect that was important for the world. The Kuwait government further realized that with the entrance of the American government and oil companies in the Persian Gulf, it was possible to accept change and transform as a whole. Unlike the Americans, the British Government wanted to United States exploit the opportunities in Kuwait and the region without being responsible. The entrance of in the Kuwait territory and the Persian Gulf region expressed hope that if the past concessions with the British government had been terminated, the region would definitely become independent country.  [10]After both the rulers and the government of Kuwait had realized that America government was not only interested on economic activities in the region and Kuwait to be specific, they welcomed it in their economic and political affairs. As a result, within a short period of time Kuwait had allowed the United States to coordinate its economic and political affairs; progress, international cooperation and stability transpired in the region.

Conclusion

Despite the fact that the British Government had tried to form strong agreement and concessions with the Persian Gulf region and in particular Kuwait to prevent the external forces such as United States from intervening with its affairs, United States economic strength enabled it to snatch British government its supremacy powers. United States took the British Government supremacy powers by ensuring that its oil companies had the largest share of Kuwait oil and the Persian Gulf region. As a result of the Kuwait acceptance of United States participation in its economic, social and political affairs it managed to gain its independence in 1962.

 

References

Alger, F.(2013). The United States in the United Nations. International Organization Journal. Vol. 27(1), Pp.1-23.

Cleveland, H.(2010).The Future Role of the United States in the United Nations: American Foreign Policy Challenged Journal. Vol. 342, Pp.67-79.

Katzman, K. (2016). Kuwait: Security, Reform, and U.S. Policy. Retrieved from: http://fpc.state.gov/documents/organization/225878.pdf

Kostianen, A. (2014). “The Delaware Colonists and Their Heritage.”  Michigan State University Press.

Lords, C.(2015).The role of the United States in small Wars. Small Wars Journal. Vol.54, Pp.89-100.

Venn, F. (2013). A Struggle for Supremacy? Great Britain, the United States and Kuwaiti Oil in the 1930s. New York Publishers.

 

Introduction

According to article one of the United Arabs Emirates federal law number six of 1985 regarding financial institutions and investment companies, Islamic Banking and Finance refers to financial institutions which are committed to abide their conduct and activities to the Islamic Shari’ah Law (Lahsasna, 2014). Therefore, Islamic banking are banking institutions which provide banking services such as: provision for funds for investment and trade, saving and current accounts, honoring and issuing of loans in accordance with the provisions and rules of the Shari’ah principles, theories and law of the Islamic economics. Despite the fact that Islamic banking began with the Islam religion principles, it evolved through two phases before it later developed into the present era institutional practices (Bai, 2011). The two major phases included:  prophetic Era and the modern Islamic banking and finance.  The work will endeavor to identify and explain the main components and principle of Islamic Banking and Finance and how they have transformed the Islamic Mortgages in the United Arab Emirates. “The study will cover the Shari’ah Framework and the legal Framework of the instrument, as well as its modus operandi. A one-to-one interview will also be conducted for the verification of the information that is provided by the available literatures.”

Literature Review

According to the prophetic era, the general public used to carry out safe keeping practices of their personal properties, money and valuable items to the holy prophet SAW for safekeeping as a result of his trust and confidence they had upon him. Nevertheless, the process never developed into an institutional practice but it remained as trustworthiness and honesty exercise. As a result, the holy prophet decided to establish a public treasury which was referred to as Bayt al-mal for the purpose of managing and safekeeping the public properties and resources. The accumulated resources in the public treasury were used for the general public purposes such as: public services financing, military wages payment and public constructions. The Bayt al-mal treasury was developed into an institution that would extend financing services to the general public. At the time, the Bayt al-mal was providing funds to individuals for trading on profit sharing agreements basis.  The profit sharing agreement (al-mudharabah) is a principle of partnership contract that is basically being used in the modern Islamic financial institutions.

Unlike the convectional banks the Islamic banks are prohibited from charging profits or interests to its clients because they are required to establish an investor entrepreneur relationship rather that creditor-debtor relationship associated with the convectional banks. Moreover, the Islamic banking and finance prohibited unreasonable risks and speculations because both leads to hoarding of the essential commodities and goods.  The Islamic banking and finance prohibits its clients from engaging in gambling or lottery, the bank is restricted from financing immoral and unethical practices such as production of weapon and ammunition, alcohols brothel business (Bragge, 2006).  Nonetheless, the Islamic bank is subjected to the Sharia’h law and regulation. The Shari’ah board of finance is mandated to audit and review the products and the practice of the Islamic bank. The board approval is pre-requisite of all activities and operations of the bank. Despite the fact that the Islamic banking might differ with the convectional banking, the two institutions are similar because they both operates on the same template of investment products and deposit products, both of them are structured in a similar manner because they are subject to the regulations and licensing of the central bank (Lahsasna, 2014).

Sharia’h Framework of Islamic Mortgages in the United Arab Emirates

According to the Sharia’h framework of Mortgages in the United Arab Emirates, Riba (Al-Ziyadah) which is believed to be growth, expansion, addition or an increase in the amount charged on mortgages are prohibited.  Technically, interest (Al-Ziyadah) is believed to be unlawful gain on mortgages. The Islamic banking sectors in United Arabs Emirates are prohibited from dealing or operating based on interest on mortgages. The Islamic banks are only allowed to purchase or sell contract on the bases of profit and loss sharing platform (Cally, 2013).   The interest on the mortgages in the United Arabs Emirates is restricted by the judgement of the Supreme Court of Pakistan, Opinion of majority of scholars, Sunnah and the holy Qur’an. The Holy Qur’an prohibits the United Arabs Emirates Islamic Banking sector from charging interest on mortgages on the basis of unjustified and unlawful enrichment (akl amwal al-Nas bi al-batil), acquisation of the monetary advantages in the business transactions without the just counter value, avoidance of risk and exploitation of the business transactions.

Islamic banking and financing institutions usually provides the financial services such as the mortgages in accordance with the Shari’ah law and regulation. The Islamic Mortgages in the United Arab Emirates necessitates the Islamic financial institutions in the region to ensure that the services being provided emphasize fairness, equity and ethical for the general good of the whole society. The sharia’h law recognizes the Holy Qur’an as the source of financial knowledge that goes beyond human innovation, intuition and scientific methods. The Shari’ah considers the finance services such as the mortgages offered by Islamic banks in United Arab Emirates as an act of devotion to the almighty Allah (Chow, 2007). The financial services by the banks in the United Arab Emirates are believed by Shari’ah tends to establish altruism, empathy, cooperation, justice and entrepreneurship. The Holy Qur’an believes that the fundamental goal of the Islamic finance should never aim at maximizing their profits or interests. The commercial law segment of Mortgages offered by Islamic Financial institutions in United Arabs Emirates is believed to be part of the Shar’iah Law. The Shar’iah law generally means the path of guidance in terms of values, prohibitions and commands.

The Islamic Jurisprudence (Fiqh) is a philosophical branch of the shari’ah law that guides the offering of the mortgages by the Islamic banks in United Arabs Emirates. The scholars and the jurists of the Shari’ah law are responsible for interpreting the laws guiding the strategies and approaches which must be respected before finance assistance such as mortgages are offered (Junseng, 2004). The law adopted while offering mortgages must be in compliance with the values and scientific principles established by the Shari’ah law. The interpretation of the Shari’ah Law while offering financial services such as mortgages human effort must be involved but must be subjected to eventual amendment. In addition, the Shari’ah while dealing with mortgages in United Arabs Emirates must be deduced in its objective conformity.The main objectives of Shari’ah law in guiding how the mortgages in United Arabs Emirates must be offered include: Necessities, Need’s and Ornamentations (Junseng, 2004). Prior to the Islamic financial banks decide to offer mortgages to its customers and clients they must preserve the Islam religion, preservation of life, preservation of property, preservation of procreation and intellect.

The reasons the Islamic financial institutions in United Arabs Emirates are prohibited from charging interests on mortgages is because the Shari’ah objectives is to preserve and protect the public interest in all segments and aspects of life.  The Shari’ah law believes that by allowing the Islamic institutions such as Banks in the United Arabs Emirates to charge interests on mortgages would be repelling harm while at the same time seeking benefit. The foundation of the Islamic fiancé practices in the United Arabs Emirates region is the Shari’ah objectives which aim at benefiting the society rather than the financial institutions offering mortgages as well as other financial services (Lahsasna, 2014). The shari’ah objectives of preserving the society’s wealth and property by prohibiting the Islamic banking sector in the United Arabs Emirates is to attempt to abide by its principles and rules (Kasri, 2014). Nevertheless, the Shari’ah law also recognizes the human perception and cognitive ability in the process of interpreting the rules and principles which must be followed while offering the mortgages to clients in United Arabs Emirates. the Islamic financial institutions which offers mortgages in United Arabs Emirates and which are fuandamentally required to observe the rules and principles of the Shari’ah law understand that the public interest must be given the first priority followed by the personal interest. The Shari’ah law which guides how the mortgages in United Arabs Emirates believe that in order to create harmony between the Islamic and the convectional knowledge common grounds must be established.

The Accounting and auditing organization for Islamic Financial Institution was established in 1991 in Bahrain. The mission for the AAOIFI harmonizes and standardizes the international Islamic financial reporting and finance practices in accordance with the Shari’ah rules and regulations.  The vision for the AAOIFI Standards is to guide the Islamic Financial market operations in accordance with the shari’ah laws, rules and principles. In addition, the AAOIFI standards normally provide the Islamic Financial Institutions which offers financial services such as mortgages with the guidelines and standards which support the growth of the industry.  The AAOIFI Shari’ah standards have been made compulsory regulatory requirement for the Islamic Institutions in United Arabs Emirates offering financial services such as mortgages (Kojima, 2009). The AAOIFI Shari’ah standards have been adopted by a multilateral institution which is Islamic Development Bank Group. The standards have been used voluntarily in these Islamic financial institutions as an internal guidance structure. Nevertheless, the AAOIFI standards in terms of auditing, ethics and governance are believed not to be the compulsory regulatory necessity for Islamic finance.  Basically, these standards are normally used voluntarily by the Islamic financial Institutions as Islamic finance jurisdictions. The AAOIFI Shari’ah standards are aimed at establishing solid regulatory and supervisory landscape for the Islamic financial institutions industry in the globe. The function is embedded in its professional development standards in the areas of governance, auditing, accounting and ethics all of which must be in compliance with the Shari’ah rules and principles.

Recently, the United Arabs Emirates AAOIFI signed a memorandum of cooperation with the UAE’s Securities and Commodities Authority. The two parties aimed at exchanging expertise and mutual cooperation relationship in the areas of professional building and development, shari’ah principles awareness and the financial instruments and products available and relevant in the financial markets (Lahsasna, 2014). The AAOIFI standards in relation to the mortgages in United Arabs Emirates may be considered relevant for investment benchmarking and mobilization for excellence business. In addition, the Securities and commodities Authority usually support the Islamic finance development both in United Arab Emirates and the globe at large. The AAOIFI standards have been applauded by many Muslims seeking Mortgage assistance in United Arabs Emirates because it fosters the strong technical and professional ties which are constructive strategic partnership (Lahsasna, 2014).

The Islamic Financial Services Board is an organization with the mandate of setting international standards which enhances and promotes the Islamic Financial Services stability and soundness in United Arabs Emirates and the globe. The Islamic Financial Services Board usually uses the global prudent standards and principles in the financial industry to define the banking procedures, insurance sectors and capital markets. In addition, the Islamic Financial Services Board usually coordinates initiatives and conduct research on the issues related with the industry. It also organizes conferences, seminars and roundtable discussions with the relevant stakeholders (Lahsasna, 2014). As a result both The Islamic Financial Services Board and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are important components which guides the way in which the mortgages in United Arabs Emirates must be offered in accordance with the rules and principles of Shari’ah law.

In 1997, the Shari’ah Advisory Council of Securities Commission Malaysia resolved that the crude palm oil characteristics were in accordance of the Shari’ah Principles. The resolution was touchy because it conflicted with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) (Kojima, 2009). Despite the fact that Malaysian Shari’ah Resolution conflicted with the IFSN standards, AAOIFI Shari’ah Standards and the Shari’ah scholars rule, the SAC argued that it was permissible for the transaction to continue and be permissible on the foundation of public interest and the Malaysian trading regulations. Therefore, despite the fact that the crude palm oil contract was conducted in accordance with the Sharia’h rules and regulations it violated some of the principles and rules of Shari’ah standards which aimed at benefiting the general public (Kojima, 2009).

Legal Framework of Islamic Mortgages in the United Arab Emirates

The Islamic Financial Business Law Number 13 of 2014 is the foundation for the basis for the Islamic financial business in United Arabs Emirates. The Shari’ah rules and regulation do not allow the financial institutions in United Arabs Emirates to charge interests on mortgages. Nevertheless, the general concepts and principles may be adopted and be amended in order for them to conform to the shari’ah law (Lahsasna, 2014). Due to the economic growth and efficiency needs of the modern businesses and economies across the globe and the United Arabs Emirates region, the principles and regulations of Shari’ah law must be adjusted in order for them to match with the convectional knowledge.

Despite the fact that the Shari’ah Law prohibits the financial institutions in United Arabs Emirates from charging interest or “Riba” on mortgages, the institutions together with the Shari’ah law should realize the concept of time value of money which is a crucial concept in the conventional finance (Kojima, 2009). The Islamic Finance Institutions must understand that one Dirham today is worth than a Dirham to be received in the future due to the personal preference for current consumption, risk, investment opportunities forgone and the reduced purchasing power caused by inflation. To a small extent, the Shari’ah law recognizes the concept of time value of money as a fundamental value for production and consumption activities. Nevertheless, the Islam believes that lending and mortgage offering by the financial institutions is a righteous Act. Therefore, since the lender makes a sacrifice in offering the mortgage to the debtor, the lender should never force the debtor to pay the amount in excess not unless the debtor voluntarily decided to pay interest on the mortgage. The Shari’ah Law disregards the concept of time value of money because money is no longer treated as a commodity in Shari’ah law (Kojima, 2009).  Hence, the characteristics of the mortgages offered by Islamic financial institutions in United Arabs Emirates might include: application of the general laws of permissibility on the financial and banking systems. The Shari’ah law restricts any kind of undertaking that may be termed harmful to mankind, prohibits Riba because it is one way used by financial institutions to multiply their money and prohibits risky transactions and unreasonable speculations (Lahsasna, 2014).

The Modus Operandi of Islamic Mortgages in the United Arab Emirates

The fact that Islamic Financial Institutions prohibits interest on mortgages and financial services, they do recognize financing and deposits products. The two products are normally recognized as either in the surplus or the deficit sectors. The deposit products are the methods and facilities for safekeeping of money in the banking sector. The money may be kept in the checking account, saving account and money market account (Olowe, 2010). The account holder has the mandate to withdraw the deposit according to the agreement of the conditions governing the account. The Islamic saving account is normally framed in al-mudarabah contract which is the profit sharing between the bank and the account holder. Therefore in attempt for the Islamic financial institutions to protect the interests, necessitates and needs of the general public it ensures that the Islam religion is preserved, there is preservation of procreation, property, life and intelligence (Van, 2009).  In addition, in attempts to prohibit the Islamic Financial institutions from charing interest on financial services they provide to an individual or an institution, they restricts: betting, moderate Shai’ah law interpretation, ban unjust acquisition of wealth, necessitates commitment to payment, promotes Haram and Halal, creates a believe that everything is created for mankind and makes the Muslim come to understand that God is the owner of everything. Above all, the Shari’ah law prohibates the institutions and individuals from investing on certain prohibited activities and requires the followers of the law to be committed to the social responsibilities as expected by Allah and the environment

Conclusion

The “Introduction to Islamic Banking and Finance” is a fundamental component as far as the Islamic mortgages in the United Arab Emirates is concerned because it introduces the researcher to the contentious debate of Shari’ah law that guides and prohibits the Islamic financial institutions from taking interest on financial services such as mortgages from individuals or institutions. Shari’ah Law believes that interest on mortgage is prohibited by both the Holy Qur’an and Prophet S.A.W. Therefore, in case charged on mortgages or loan borrowed from the financial institutions in the United Arab Emirates, it shall be going against the will of God because it shall be harming and injuring mankind.

References

Bai, H. (2011). Resolutions of Shari’ah Advisory Council Of Bank Negara Malaysia. London. Oxford University Press.

Bragge, J.(2006) A repeatable e-collaboration process based on think lets for multi-organization strategy development. New York Publishers.

Cally, K. (2013). United Arab Emirates: A new perspective. London: Trident Press.

Chow G. (2007). Environmental Problems and Policies. Princeton University.

Junseng L. (2004). Renewable Energy Policy in China: Financial Incentives. National Renewable Energy Laboratory.

Kasri, N. (2014). A Critical Analysis of the Resolution of the Sharôñah Advisory Council of Securities Commission Malaysia: A Case Study of the Crude Palm Oil Futures Contract. New York Publishers.

Kojima, M. (2009). Government response to oil price volatility. Extractive Industries for Development Series, No. 10, World Bank.

Lahsasna, A. (2014). Shari’ah Issues and Resolutions in Contemporary Islamic Banking and Finance. International Relation Journal. Vol.3(2), Pp. 23-49.

Olowe, R. (2010).volatility, global financial crisis and the month-of-the-year effect. International Journal of Business and Management, 5(11): 156-170.

Van, E. B. (2009). “The island of happiness”: Exploitation of migrant workers on Saadiyat Island, Abu Dhabi. New York, NY: Human Rights Watch.

Abstract

According to the International Air Transport Association, it is strongly expected that the passenger traffic will increase to near double digits equaling to approximately 7.2 billion passengers compared to the present 3.8 billion by the end of two decades from now. People really want to fly as they search for trade, exploration and sharing the benefits of innovation and economic prosperity thus the demand of air travel is really set for achieve the double digits mark. This paper aims at highlighting the various the needs for a sustainable system of transport defining sustainable transport systems. In addition, the paper aims to give information on emissions and mitigation of jet airplane Greenhouse Gas as it too highlights transport airships that are poised to replace the older passenger jetliners that are damped as most polluting. The paper will culminate in showing how the transport airship are crucial in causing some impacts to the fate of international trade.

Paper’s Strengths and Weaknesses

It is highly likely that the rising demand in air travel will double in the next two decades or even triple the level as at the year ended 2015 if only trade liberalization gather and sustains pace. This communicates that if the current trend towards protectionism of trade will gain more strength, growth cold figure to 2.5% per annum Compound Average Growth Rate against the predicted 3.7% annual Compound Average Growth Rate prediction noted presently. Sustainable transportation seeks to ensure that there is easily accessible, environmentally-friendly, safe and affordable air transport with social and economic factor considered in decisions concerning the transportation activity. The innovation and technology that there is presently, will see some ease of pressure to the environment as jet liners become more lighter and use lesser fuel thus lesser pollution.

Air planes are poised to become more environmental friendly and thus ease the burden from passengers who are always at the receiving end of all the flight expenses. However, as the change from less costly but highly polluting fuels, for instance Kerosene, is made, the transition to less polluting fuels, for instance fossil fuels, is a challenge for they are more costly as compared to the highly polluting fuels. Therefore the hustle and tussle to achieve an all-round conservative sustainable air transport system is quite real. Though technology and innovation has seen more efficient planes with lower fuel burn rates, it is yet not up to the expected mark of sustainable transport air system and more has to be done.

Implicit Economic Model

With the achievement of more efficient planes and rise in air traffic, the international economy is headed towards growth. As people travel local ad internationally in search for trade and a place to share their innovation, the economy is with no doubt destined for diversity and so expansion exponentially. With more air traffic and travel, the exchange of goods and services will definitely increase as encouraged by the sustainable air transport system that invites cheaper prices and more reliable transport system.

What did you learn?  

The more sustainable and reliable the transport system, the more the growth in revenue as many passengers find it pocket-friendly to use system for transport. The availability of sustainable and reliable transport system brings efficiency and quickly opens up the world internationally for trade hence more international trade and growth in global capital. This translates to that, the better and sustainable the transport system of a country or a continent, the better and higher the chance of staging a higher rate of economic growth owing to the fast and reliable movement of goods and services.

                                                                               

Early Modern Europe is that period in the history of Europe that spans between the end of middle ages and way to the commencing of the industrial Revolution period. The Early Modern Europe period can notably be marked and identified with events and trends like the Reformation and its associated conflicts in religion, the pronounced rebirth of capitalism and modern nation states, and the European Americans’ colonization among others. The early modern period may not have specific span of date, but is generally believed and agreed to have in it seen the reformation, renaissance, enlightenment, and scientific revolution. Notable changes have been attached to the early modern period with the increase in science and technology, political secularization the Roman Catholic Church diminution among the most notable changes. The period was such an epoch with many people beginning to have an alt in thinking breaking from medieval self-identification mode, affiliated to religion, feudal proclamation or language, to thinking of themselves as a people who belong to a national polity. To clearly understand the European reformation and the religion-political climate in the Early Modern Europe, the confessionalization thesis is of confessionalization thesis is a great route to take (Reinhard, 1999).

The European Reformation aka the protestant Reformation was quite a major movement that principally aimed at making total reforms on the practices and beliefs underlined by the Roman Catholic Church.  Confessionalization is the development of three confessions which include: Catholic, Lutheran, and Reformed, which happened in the second half of the 16nth Century particularly emphasizing on how the state related to the growth of religious denominations. It is believed that social discipline courtesy of the state amounted to the birth of distinctive confessional denominations and identities. Since politics and religion were both players in the process, confessionalization therefore significantly had a role in the reformation and development of the early modern Europe. Therefore, understanding the confessionalization thesis is quite important for understanding European Reformation and the religion-political climate in early modern Europe (Reinhard, 1999).

Developed in the 1970s by two German historians, Heinz Schilling and Wolfgang Reinhard, in their independent scholarships, the confessionalization thesis contrasted the socio-economic scholarship which was popular by then focusing attention on the intertwined roles that were played by religion and politics in the early modern state development. As developed by Walter Zeeden and Gerhard Oestreich, the social disciplining and confession building concepts were highly influential in the development of confessionalization thesis. Combining the two concepts, confession building and social disciplining the two historians, Reinhard and Schilling came up with the confessionalization thesis as they sought to explain the early modern state development (Reinhard, 1999).

Ideally, the confessionalization thesis has its focus on the intertwine and interplay of four vital elements that are concerned with the religio-political early modern Europe atmosphere including the medieval precedent of an intertwined church-state relationship, the religious homogeneity desire, confessions defining their differences, and the highly competitive early modern Europe political climate. Though the church had been somehow bound together long before confessionalization, as pointed out by William Bradford Smith, confessionalization marks the dying days of the last phase of a reformation process that had ensued Europe for at least two centuries before the year 1550. The confessionalization thesis traces its origin from the policies of then church officials in the Roman Catholic, other protestant churches and the bureaucrats of the European state. Confessionalization historians just like those that advocated for reforms in church, much emphasize on the uniformity of developments in the German Roman Catholic. The confessionalization thesis stresses on the close proximity cooperation relationship between the state and the church yet it is common to find a whole state/church spectrum within catholic Germany (Reinhard, 1999).

In its initial stages, the confessionalization thesis greatly had its focus on studying the Holy Roman Empire with most of its affiliated events more German-centered. Maybe the most essential level headed discussion that confessionalization has propelled is whether the spread and dispersion of confessionalism in Europe is the consequence of a top-down spread of “conventionality,” or if a base up model is more fitting. The significance of this level headed discussion goes past the confessionalization proposition, analyzing the elements of culture and its spread through society. At first centered around how elites passed on particular confession booth conventions and implemented ethical quality on the lower populaces, the confessionalization proposition normally fit a top-down model. In any case, this view has been genuinely tested by Marc Forster, Bodo Nischan, and numerous different history specialists. Marc Forster’s study is particularly imperative, since it uncovers a lot of imperviousness to the presentation of Tridentine changes. As the underlying receptors and propagators of the Council of Tent, the Jesuits tried to convey the Catholic Reformation to Speyer. Meeting resistance drove by the nearby ministers and common elites, who did not wish to offend the larger part Protestant populace, the Jesuits observed authorizing the chamber’s changes to be a relentless errand. By the onset of the eighteenth century, through appearances and the presentation of outside ministers, the change of the neighborhood pastorate succeeded (Reinhard, 1999).

Just like politics, religion and religious faiths and beliefs were part and parcel of the day to day life in Early Modern Europe especially between the years 1450 and 1700. There were quite significant changes religiously in Europe thus religion and so confessionalization cannot be left out in making the reformation history of early modern Europe. The religio-political climate in early modern Europe can be drawn from confessionalization bearing in mind that the Roman Catholic empires were against Protestantism and went even to war. Since the Roman Catholics was affiliated to princes and other designated rulers, in such a connection, there was some influence of politics in the early modern Europe religious climate with political rulers having an upper hand in religious issues (Reinhard, 1999).

In a nutshell, confessionalization thesis which is ideally a combination of two concepts that were evident in the early modern Europe, social disciplining and confession building, is a powerful tool in  understanding the religio-political climate in early modern Europe. Confessionalization period brought about significant reformations in Europe as people began to discern their own ways religiously protesting from the norms of the rulers who just wanted a single denomination, notably the Roman Catholic. As people across Europe started to be divided along confessional affiliations, secular people too began to bring people together to a common community with the communion celebration becoming a symbol of unity with all the confessions having recognition of breaking the bread as a unifying aspect. The confessionalization concept is made up of both political and social dimensions and defines the religio-political climate in early modern Europe and European Reformation as a whole (Reinhard, 1999).

 

Reference

Wolfgang Reinhard, (1999), Pressures towards Confessionalization? Prolegomena to a Theory of the Confessional Age, Blackwell Publishers.