Women Empowerment free essay sample

Curriculum and Gender Question : The Indian Experience, Saroj Pandey ( Senior lecturer, DTEE, NCERT, New Delhi) , Social Action, Vol. 46, Jan-Mar. 1996, p. p. 340-347 This article explores the development of the curriculum in formal educational organisations from the point of view of gender equality, tracing back the historical antecedents,. It comments on the pre-independence and post independence status of womens education. It discusses recommendations made by various committees formed for womens education after independence. While appreciating the absence of visible curriculum differentiation, it states that gender inequality still persists in a social form. The article emphasizes that there is a need for sincere and sustained efforts to improve status of women in India. Equality Mishra, Sweta , Women and 73 rd Constitutional Amendment Act: A Critical Appraisal , Social Action, Vol. 44, 16-30, (1997) This paper begins by briefing about the marginal position occupied by the indian woman in the society and also in the political process due to socio-economic constraints. We will write a custom essay sample on Women empowerment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It outlines the evolution of the Panchayati Raj Institutions (PRIs) against this backdtrop. It then gives a brief account of the position of women in the PRIs before the 73rd Constitutional Amendment Act. Finally, it examines the probable role of women in the context of the 73 rd Amendment Act. It examines whether women will be able to exercise political power through this system, what hurdles are there on their way, and finally how they can overcome these? Mrs. Sweta Mishra is a Research Scholar, Department of Political Science, University of Delhi, Delhi. Gender equality through reservation in decision-making Bodies, By Shashi. S. Narayana. Social Action 1998, Pg 147 This article discusses the need for political empowerment of women through reservation in its decision making bodies like parliament, and state legislature in the same line as at ‘Panchayat’ (village) level in India. The current economic and socio-political maladies along with increasing violence against women and children are attributed to the failure of male oriented polity. Representation of women in higher bodies of political authority has been considered a prerequisite for the success of democracy at the grass-root level. However the need for accountability and sense of commitment on the part of the elected women representatives is stressed. This requires a higher degree of awareness among women regarding health, literacy, gender and other relevant social, economic and political issues. Law and Gender Inequality : The Politics of Womens Rights in India. , Flavia Agnes, Oxford University Press, 1999, This book explores the issue of gender and law reform with reference to the politics and history on India. It also explores the strategies, which could safeguard the of womens rights in a country like India, which has a typical social, cultural and political background. The book is divided in four parts. First part contains five chapters and speaks about Pre-colonial and colonial Legal Structures. Second part comprises of three chapters, and explores the post-independence developments. Third part of the book which consists of two chapters explains the Developments in the personal laws of non-muslim minorities. Fourt and last part of this book contains the analysis of the current trends of the debate on the Uniform Civil Code. Off the Beaten Track: Rethinking Gender Justice for Indian Women by Madhu Kishwar OUP, New Delhi: 1999 Madhu Kishwar is an influential participant in the womens rights and human rights movements since the 1970s and is the founding editor of Manushi a journal about women and society. This volume is a collection of some of Madhu Kishwars best and most controversial essays concerning topics central to womens issues in India today: the role of marriage payments and dowry, unwanted daughters, denial of inheritance and land rights to women, love, sex and marriage, sexual harassment, identities, beauty contests etc. Many of these offer a critical appraisal of Madhu Kishwars activism and engagement. The essays are an attempt to grapple with one of the most serious challenges to women in India: Why is it that inspite of all the high profile attention on womens issues many remain unresolved? Most of the work thus far has resulted only through symbolic actions such as passing of laws, which very often are inappropriate and not implemented. In most cases where laws are misused it contributes to increasing the vulnerability of womens lives. The volume also deals with Madhu Kishwars moving away of ism-driven politics and orthodox feminist thinking. The essays reject statist interventions in social reform and appeal to peoples consciences to bring about any meaningful changes in the position of women. Gender Justice and The Supreme Court by Indira Jaising in Supreme but not Infallible: Essays in Honour of the Supreme Court of India B. N. Kirpal, Ashok H. Desai, Gopal Subramaniam, Rajeev Dhavan and Raju Ramachandran (eds. ) OUP, New Delhi 2000 (pages 29, words 199). Indira Jaising is a Senior Advocate of the Supreme Court of India. She has been a fellow of the Institute of Advanced Legal Studies London and is Secretary of Lawyers Collective which deals with socio legal issues of public interest. This essay traces the evolution of gender justice in the Supreme. Before taking up judicial decisions concerning issues that involve womens rights, the author draws attention to the composition of the judiciary and its starkly unrepresentative character. Through an analysis of cases dealing with property rights to women to cases of violence against women, the essay addresses the problem of formal equality and the evolution of equality jurisp rudence in the Indian Supreme Court where sameness and similarity form the criteria for classification. One of the recent cases (Vishakha vs. State of Rajasthan) where the Supreme Court has considered provisions in CEDAW to address sexual harassment in the workplace is also discussed. While some recent decisions do indicate a positive step towards gender justice the unevenness in this development is attributed to a greater emphasis on criminal law as opposed to civil law, leading to a neglect of womens economic rights. Finally, the essay points to emerging issues concerning validity of personal laws, womens representation etc. which will engage the courts and it is felt that an increasing number of women in the judiciary will be able to perceive women as autonomous decision makers and active participants in public life. Identifying Gender Backward Districts using selected Indicators, Preet Rustagi, Economic and Political Weekly, Vol. XXXV, No. 48, November 25 — December 1, 2000, pp. 4276-4286 The article identifies gender backward districts among fifteen major Indian States — Andhra Pradesh , Bihar, Gujarat, Haryana, Himachal Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal — based on 13 gender sensitive indicaters — such as demographic, educational, health related, socio-cultural and economic levels of development. The assesses the relative levels of backwardness or development, ranking based exercise on individual indicators. The study limits itself mostly on secondary data from 1991 census, 370 districts have been taken into consideration. The study indicates female to male ratio (FMR) as a demographic variable. Female literacy serves as basic indicator of educational status. The health related variable is mortality rate. The data source used for the study are : the census of India, 1991, mortality estimates from Rajan and Mohanchandran (1998) and UNFPAs calculated data on fertility and female age at marriage. The paper undertakes detailed state and district wise discussion on each of the selected indicators under separate heads. Through the study mekes no attampt to look at transition overtime and only focus on rural areas, however its significance lies on its methodology that reinforces two points — one disaggregated analysis and second significance of looking at different aspects of gender development. The findings of the study concludes that no state or district exhibits a uniform pattern of backwardness or development in terms of gender sensitive indicators. Gender gap in Literacy in Uttar Pradesh : Questions for Decentralised Educational Planning, Lori Mcdougall, Economic and Political Weekly, Vol. XXXV, No. 19, May 6-12, 2000, pp. 1649 The paper on gender differences in literacy attainment in Uttar Pradesh, 1951-91 reveals significant regional variations in female achievement and the gender gap. A case study of changing spatial patterns in the literacy gender gap within Uttar Pradesh illustrates national statistics on regional gender and caste inequities. The paper raises questions for further study about the ability of decentralized planning to promote educational equality and its threats to community cohesion. The study is mainly based on female and male literacy rates as reported by government of India census data collected in 1971, 1981, and 1991. It analyses total female literacy rates per state and district, comprising both rural and urban. Uttar Pradesh has high female literacy and gender gap and is a big state of 140 million people. The study covers status of literacy in northern and eastern parts of the state and influence of religion, urbanization and income on literacy rate and emphasis of history, social relations and politics on the female literacy level and gender gap in state. The study illustrates female literacy rate in both national and state maps and comparative study in graphs. The study is supported by relevant statistics. Representation for women, should Feminists Support Quotas, Meena Dhanda, Economic and Political Weekly, Vol. XXV, No. 33, August 12, 2000, pp. 2969-2976 The author in this paper a defence of gender quotas in legislative bodies and debates on potential political and socio-cultural consequences of the institution of a gender quotas in the Indian parliament by a constitutional amendment and provides justification for the use of a gender quota in legislative bodies. Author offers consequential argument in section I of the paper. In section II she emphasizes on concept of the public sphere and idea of acting in solidarity with women presupposed in the debate and in section III, she elaborates on her perspective on identitarian justification of gender quotas and compares her justification with support for gender quotas from the argument for ‘a politics of presence’ in section IV. In a concluding section of the paper she derives an answer to : Should feminists support the womens bill for an amendment to the Indian constitution that has provided 33% reservation for women in the Indian parliament and state legislature? Equality of Opportunities vs Equality of Results, Improving Womens Reservation Bill, Madhu Kishwar, Economic and Political Weekly, Vol. XXXV, No. 47, November 18, 2000, pp. 4151-4156 In response to Meena Dhandas article, representation of women should Feminist support Quotas, the author expresses her view point on the same. She argues on the improvements she has proposed to the original Womens Reservation Bill and reasons out its shortcomings. She further refers to impact caste and gender has upon women politicians and their insensitivity to womens concerns. The author states the salient features of the Alternative Bill and presents its advantages. The article presents statistical data analyzing gender advantage in Lok Sabha elections since 1952 and statistic on comparative performance of men and women candidates of recognized parties in Lok Sabha elections. Chatterji, Angana , Women in Search of Human Equality , Social Action, Vol. 40, 46-56, (1990) This paper attempts to situate women in the present context of national development, to assess their condition since the changes in their status and study the link between economic progress and the class to which the woman belongs , for studies have indicated that there is a close connection between the two. In order to analyse it, the paper first identifies the problems in the path of womens equality. After an overview of awareness of their situation among various classes of women, the paper ends with a view of the future and the possible solutions. Angana Chatterji is Research Assistant in the Department of Research, Indian Social Institute, New Delhi. Sarkar, Lotika, National Specialised Agencies and womens equality , Law Commission of India (CWDS), 1998 The report examines the role of the Law Commission of India (LCI), assesses its contribution to womens equality and identifies ways of improving that contribution. Specialised agencies like the LCI were recommended by the UN Commission on the Status of Women to play a multiple role in eliminating womens inequality. The first chapter of the book deals with the genesis of the LCI and the second chapter with its composition, status and functioning. The report, cextly deals with women specifi creports of the LCI which includes topics like, married wimens property, mrape,etc. the latter part of the same chapter deals with family law related topics like Gindu Marriage Act. Finally , the report concludes with catious recommendations like as per Indian laws a mother is continued to be treated as comng onl after the father as a natural grardian of a minor child is against the recommendations of the UN Commission on Feminist Theory The History of Doing, An illustrated Account of Movements for Womens Rights and Feminism in India, 1800-1990, Radha Kumar, pp. 197. The book is about the use of feminist movement in India. It notes the historical context of the movement and gives an account on the struggle of the radical thickness and social reformist, who first raised issues of womens fundamental rights. It gives an account of womens participation in freedom struggle and the emergence of the feminist movement as a process. The book reviews contemporary feminist movement and analysis the issues caused on dowry deaths, rape case and practice of sati. It present selective survey of major campaigns, organizations and figures defining issues that were raised and fright, photographs, old and new documents, excepts from letters, books and informal writings, case history of social activist makes good an interesting reading. It is a brief , interpretative account on history of womens movement in India, both pre and post independence period. Gender and Politics in India Edited by Nivedita Menon, Delhi, Oxford University Press, 1999. This volume presents an overview of feminist theory and politics in India. The introductory chapter provides an outline of the issues involved and the importance in explaining the politics of gender in India. The essays focus on different aspects of feminism in India, and debates on various issues like environment and gender, the impact of technological change on women work force, interpreting constitutional guarantee of ‘right’ to equality with gender perspective; different womens movement and the challenges encountered; and sexuality and gender. The section on environment and gender discusses Vandana Shivas concept of ‘Eco-feminism’. The ‘work’ section highlights structural adjustment and its impact on women, whereas the ‘law’ section suggests ‘reconceptualization’ of equality in view of womens subordination. The problem of a contemporary theory of ‘gender’ in the perspective of present socio-cultural change in Indian society has been highlighted. Girl child Girl Child in Indian Society Mita Bhadra (ed. ) Rawat Publications New Delhi: 1999 (words 200) Mita Bhadra is Senior Lecturer in the Department of Sociology and Social Anthropology, University of North Bengal, Darjeeling. Her area of research includes industrial sociology, gender studies and social change. The main focus of this collection of seven articles by a variety of authors is on the prevailing inequalities, discrimination against the girl child and her gender marginalisation. It presents information on the social status of the girl child in India including child labour and child prostitution. The volume also discusses the various laws enacted to secure the rights of the girl child in India. The first article deals with declining sex ratio, under nourishment, child marriage, female foeticide and the SAARC Plan of Action and the Government of Indias initiative to improve the status of girl children. The second paper deals with gender stereo-typing, prejudices, girl child abuses etc. The third and fourth papers deal with the exploration of situations under which the girl child is living. The fifth article touches upon issues of child marriage, which is rooted in traditionality and illiteracy, and its impacts. The sixth article focuses on child labour as and its impact on health. The seventh paper deals with various laws with reference to child prostitution as well as the living conditions of victims of such exploitation. The volume promises to be valuable to social researchers as well as for planners and policy makers. Kanya: Exploitation of Little Angels by Dr. (Mrs) V. Mohini Giri, Gyan Publishing House, New Delhi: 1999 Dr. (Mrs) V. Mohini Giri is former Chairperson of the National Commission for Women and has been spearheading the cause of sex workers and other marginalised sections groups among women. This volume on children prostitution deals with almost all relevant issues from prevention of child prostitution, to rescue and rehabilitation, awareness and social mobilisation, health care, housing and civic amenities, economic empowerment, legal reform, law enforcement trafficking and other human rights issues. The volume also informs of relevant national and international legal provisions including the 1949 Convention on the Suppression of Traffic in Persons and the Exploitation of the Prostitution of Others (Trafficking Convention) and CEDAW for the protection of the girl child from prostitution. It provides valuable insights into the system of exploitation as most of the instances cited are from Dr. Giris experience in the course of her work in the field of womens human rights. The volume also makes valuable recommendations for improving the condition of child prostitutes, many of whom come from the most disadvantaged sections of Indian society. The recommendations lay great emphasis on the active involvement of civil society groups and local level administrative authorities as it recognises the import of public support for the effective implementation of any such social legislation. Sreenath Lalitha, Victimisation of girl- child in the home , Journal of the Indian Law Institute, Vol. 38, pg-101-107, 1996 This article is a case comment on the case of Biswanath Das Vs Maya Das, which acquires significance as it highlights the deficiencies and inadequacies that exist in the present legal system, statutory laws, judiciary and Bar- and the Society. The Indian society is still plagued by victimisation of girl child through performance of child marriage despite the forthcoming Beijing Summit focussing on womens right and the affirmation in the UN Declaration of 1989 to which India is a signatory. There is an urgent need for law reform to protect the status and rights of child brides in India. The author points out that the male-chauvinist traditions of patriarchal societies still hold sway over the minds of the judges in courts. Bhadra Mita, Girl Child in Indian Society , Rawat Publications,1999 This volume aims at analysing the situation under which Indian girl children are living and identifying the sexual inequalities within the household and society at large. Emphasis is given to the girl child who should be given her rightful share of human dignity and opportunity- a concept which has found and appropriate place in the Plan of Action for implementing the World Declaration on Survival Protection and Development of Children in 1990s . The papers that have been compiled in this volume , range from those analysing the status of girl child in India to her socialisation process, gender stereotyping, discrimination changing age at marriage, girl child labour , child prostitution, and ameliorative legislations for her status enhancement in family, society and changing trends in these areas. Kishwar Madhu , Where Daughters are Unwanted , Manushi, no-86, Jan-Feb,1995, pg-15-22 The article emphasises the magnitude of the problem of sex determination tests (SDT) in India which has resulted in sex selective abortions of thousands of female foetuses . The state of Maharashtra passed the Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse ) Act of 1988 to ban SDT. But inspite of stringent provisions , due to lack of proper implementation, this law has failed to curb the problem. There are many advocates of SDT, and they believe it will help control the population growth. Scarcity of women does not imply that their life will get better- it is a myth. The author decries the fact that often women themselves prefer a male child as shown from various studies due to social conditioning. The real solution lies in making families realise the value of their daughters, otherwise these SDT will never end. Health and Well Being Na Shariram Nadhi, My Body is Mine, by Sabala and Kranti, edited by Mira Sadgopal, 2 nd Edition 1996. The writers of the book have documented a process of self realization through self-examination of ones body. It potrays a process of self-help training experience in womens health and deals with issues that adversely affect womens health such as class caste and gender oppression in family and society, medicalisation of health, coercive and women targeting policies of the government and social stereo typing. It compiles the experience of eighteen women, in a ten months (Between February 1993 and November 1994) training on self-Help Training in Womens Health based in Hyderabad. The book contents issues related to gender sensitization and health politics of health and population, body politics and beyond fertility awareness and sexuality, gyn-ecological disorders and healing child-bearing support, the Experience documented here are those of dalit, tribal and otherwise marginalized women made out of deliberate choice. Each chapter in the book gives objectives and the mythology used in the training. It also records the successes and failures of the training processes, yet is a friendly and practical guide for seeking alternatives. The form of the book is simple and illustrative. The illustrations in book reflects the experience and insight of the participants. Mental health from a gender perspective, Edited by Bhargavi. V. Davar, New Delhi, Sage pub, 2001, pp. 427. This book is the compilation of a number of papers presented at a seminar on gender and mental health in 1995, and is an effort to understand the politics of the mental health discoursed from a gender perspective. The book is divided into four parts: part 1 reviews the issues involving women and mental health in India- clinical psychology; the social and cultural ambience; the contributions and the limitations of the interested parties. Part 2 deals with mental health issues related to body, reproduction and sexuality. Part 3 covers sexual violence, child abuse and mental health whereas the part four deals with inter-phase between gender and social institutions like hospital, court and media. Labour and Employment Women and Sexual Exploitation: Harassment at Work by Rehana Sikri, Kanishka Publishers, New Delhi: 1999 (149 words) The work, taking cognisance of the increasing number of women in the total workforce of countries of the world and the consequent emerging patterns of social interaction views the work place as a new domain of conflict in the running battle of the sexes. As the work presents a comprehensive profile of the working force in India drawing upon data from decennial Censuses, National Sample Surveys and small scale socio-economic surveys, it includes womens occupational profile as well as the social mores and family values that determine behavioral patterns specifically in the workplace. These survey results are analyzed for a further interpretation of the components of sexual harassment and male-female relationship in the workplace. Working womens search for identity is also addressed in the context of the traditional pattern of gender and sexual exploitation. The book brings out the distinctive and alarming aspects of gender confrontation and its sociological significance. Kishwar, Madhu, Sex Harassment and Slander as weapons of subjugation , Manushi, no. 62, jan-feb-92, pg-2-15 In this paper the author focuses on the more insidious and routine forms of sexual harassment women have to deal with when they step into the world to earn a livelihood or take part in social, political and educational activities. The segment of society chosen is university students and teachers from middle class. Real life experiences have been recounted which show how men use aggressive sexual encounters to maintain dominance and control and how and why women are forced to suffer such behaviour . Steps towards protecting women from sexual harassment are suggested, to bring a meaningful change in womens currently powerless and vulnerable position. Also, sexual slander is used as a weapon to keep women in a perpetual state of fear, the fear of losing izzat (honour) in a way that can affect a womans very chance of survival and result in loss of family, job and being a social outcaste. Exploitation of Domestic Women Workers : Case Studies from Karnataka, Kerala and Tamilnadu, Social Action, Vol. 43, April-June 1993, p. p. 235-241 This paper is an offshoot of a study conducted on the problems of women in the unorganised domestic sectors in the states of Karnataka, Kerala and Tamilnadu The purpose of the study is to portray the exploitation of domestic women workers. It emphasizes that the structure of the family affects exploitation directly as well as indirectly while stay with the employer results in direct exploitation. It suggests that economic support and skill training to the women of the non-familial structure, may enable them to be independent and self reliant. Women Making a Meaningful Choice — Technology and New Economic Order,Nirmala Banerjee Swasti Mitter, Economic and Political Weekly, Vol. XXXIII, No. 51, December 19, 1998, pp. 3247-3256 The paper address two contemporary issues, one related to Indian working womens response to technological changes and globalisation; and second relates to the impact of these changes on womens work in India. The reference used in the article published secondary material and documents of the grassroots experiences of NGOs that are currently engaged in women workers in the formal and informal sectors. The documented material is of the selected NGOs from eight Asian countries between 1994 and 1996 that United Nations University Institute for New Technologies (UNU / INTECH, Maastricht, the Netherlands) had commissioned. The paper focuses exclusively on India with emphasis on demands, concerns and aspirations of Indian working women with respect to technological changes as reflected in those commissioned reports. The study examines women of diverse background and their co-relation with changing technologies in the past and present, in different regions and industries of the country. The paper further analyses the position of Indian Womens movement in context with womens traditional role in the society. Employment of Women and reproductive hazards in Work Places , By Neeru Sehgal, research scholar( Delhi university), in Journal India Law Institute, Vol. 29, (1987), pp. 201-215. Treatise examines exposure hazards of toxic substances on fertile, pregnant mothers, discriminatory, exclusionary practices against women by employers to avoid legal, moral accountability. Probes instances of transfers to low paid jobs, self inflicted sterilization, law amendments introduced in U. S, disparate treatment on women, safety measures, foetal protection, medical screening. It cites instances and court judgments. It examines Indian perspective of the problem in developing countries and also examines Indian factories act in disallowing women from doing hazardous jobs, timings prescribed for women, hazards in industries of tobacco, cotton, agro based etc. Probes studies of India council of medical research on expectant women exposed to toxic substances in worlds worst industrial disaster Bhopal gas tragedy involving a multinational. Examines employers responsibilities, government role, duty to protect the interests of women under article 39(e) of the Indian constitution, need to have regulatory framework for multinationals seeking to operate industries in India. Marginalisation of Women Widows in India: Social Neglect and Public Action by Martha Alter Chen (ed. ) Sage Publications, New Delhi: 1998 Martha Alter Chen is Development Advisor, Harvard Institute for International Development and Lecturer, Kennedy School of Government at Harvard University in the USA. A specialist on gender and poverty, she has worked on South Asia and is author of A Quiet Revolution: Women in Transition in Rural Bangladesh and Coping with Seasonality and Drought. This volume aimed at a better understanding of the status and condition of widows as a marginalised group of Indian society is a result a workshop and a conference at Bangalore in 1994. The first was an informal gathering of 25 widows and 10 activists while the conference included 65 activists, scholars and policy makers who had experience on issues relating to widows. After these events, a network of widows and activists was established and a two year action plan launched in six states to ensure rights and dignity to widows. The papers in this volume, most of which were presented at the conference are grouped into six broad sections. Three papers explore the ideological construction of widowhood in India including patriarchal constructs, the practice of levirate and property rights under customary and modern statutory law. Two papers deal with the demographics of widowhood with reference to mortality and aging. The other four themes include property rights, social security, employment and social identity based on case studies of actual practice and individual histories. The author also provides a framework for analysis of widowhood in India, which includes concepts such as Patrilocality, Patrilineal Inheritence, Remarriage Practices, Employment Restrictions, Maintenance and Social Isolation. Marriage and Family life Enslaved Daughters, Sudhir Chandra, Oxford University Press, Delhi, 1998; This monograph discusses the Rakhamabais case, the first case filed in 1884 for restitution of conjugal rights and in detail. It also discusses the repercussions of the case on the society. Rakhamabai wedded Dadaji at an age at which she was incapable to give a wise consent. She refused to be obligated to a marriage solemnized when she was only eleven. During the eleven years of their unconsummated marriage she had grown to develop a strong dislike and argued that she was not bound to go to Dadaji. Dadaji moved the Bombay High court for the restitution of his conjugal rights, which resulted in strengthening her determination to resist the autocracy of indigenous social authority and colonial legal dispensation. Status of Women and Social change, By B. Sivaramayya in Journal of Indian law institute, Vol. 25, 1983, pp. 270. The author looks at ancient shastric Hindu law in matters of rights of women; sati practices, the involvement of the British in enacting laws to protect womens social status. It examines views, interpretations of courts, legislature in matters of bigamy, conjugal rights, inheritance, divorce, maintenance under Hindu marriage act and Muslim personal laws. It also looks at the Muslim community views. It examines the provisions of criminal procedure code and the Indian penal code in relation to above topics. This article cites instances, circumstances of litigation and court interpretations and views. In this article an attempt is made by the author to critically examine the social status of women by way of legislation, judicial interpretations and processes. Chowdhary Prem , Widow Remarriage in Haryana , Manushi, no. 82, May-June 1994, pg-12-18 The article explores the apparently progressive practice of widow remarriage in the state of Haryana in India which has several possible repressive aspec

Show How Transactions in Derivatives Can Be Used to Either Hedge Risk or to Open Speculative Positions. Essays

Show How Transactions in Derivatives Can Be Used to Either Hedge Risk or to Open Speculative Positions. Essays Show How Transactions in Derivatives Can Be Used to Either Hedge Risk or to Open Speculative Positions. Essay Show How Transactions in Derivatives Can Be Used to Either Hedge Risk or to Open Speculative Positions. Essay Economics of the Financial System Show how transactions in derivatives can be used to either hedge risk or to open speculative positions. Derivatives have become popular in response to the increasing volatility and complexity of financial markets. A diverse range of new financial products have been created to enable market participants to handle the risks arising from trade in securities and to speculate on future expected movements in securities prices, without direct trade in the assets themselves. Derivative contract creates a promise to deliver or trade an underlying product at some time in the future. The contract gives one party a claim on an underlying asset or cash value of the asset, at a fixed date in the future. The other party is contractually bound to meet the corresponding liabilities. Financial derivatives are traded on organized market such as LIFFE (London International Financial Futures Exchange) and through the intermediation of the clearing house system, there is more flexibility of exchange, and the risk of credit default is reduced. The two parties need not know each other they only have to satisfy the exchange that they are creditworthy to transact. The initial purpose of derivative contracts was to allow traders to hedge risk which they faced in the cash market. Two of the most popular derivative instruments are financial futures and options. Financial futures commit the parties to buy or sell underlying assets at set prices on an agreed future date. The benefit of financial futures in its most basic form can be exemplified by a poultry farmer who is worried about the risk of price fluctuations in eggs for instance. He knows in 8 months he will sell a certain quantity of eggs. He can hedge against this risk by selling (going short) an eight month â€Å"future† in eggs. The â€Å"future† will consist of a standard amount of chicken to be exchanged in eight months, at an agreed fixed price on the day the â€Å"future† is sold. The agent buying the eggs goes long, and is bound by contract to purchase the eggs in 8 months. A premium reflecting the risk of price fluctuation would be charged by the agent. If all goes well, the rate of profit on future contract can be very high but not without considerable risk. Investing in securities expose investors to many risks, the most important is the risk of an unexpected fall in the value of an investment. Likewise, not investing also exposes them to opportunity risk; the risk that future prices of portfolio of asset would rise thereby making it more expensive to acquire. Derivatives market offer investors an efficient way of managing some of the risks incurred in investment by purchasing derivative instruments. This allows them to attain desired adjustment to risk without having to trade in the underlying securities and sometimes gaining a profit. Hedging has become increasing popular as it helps investors to protect against the future value of their portfolio. An investor with a portfolio of cash, bonds and shares can take out a hedge to protect the future sale price of her portfolio by selling a corresponding amount of the appropriate futures contract. Risk could be hedged through options or future contracts. Hedging through future contracts involves taking a position in financial futures contract that will incur a gain to offset a loss in their existing investment portfolio. For example, Amana Mutual Fund manages a large portfolio of stocks. The portfolio manager speculates the prices of stock will fall over the coming month but will increase again after that time. They would like to hedge their portfolio against a loss over that period. A stock index futures contract with a month to settlement date is offered on the Dow Jones Industrial Average stock index at an index level of 20,000. Amana chooses to sell a futures contract on this index because it reckons that this index is strongly correlated with its existing stock portfolio. In a month, at the stipulated settlement date, Stanford will purchase the same contract. If stock prices plunge over this period, the index will fall as well, and so will the futures contract on the index in response. Amana will profit on its future position, because the future price paid at which the index is sold will be less than price paid for the index at settlement date. After a month, the stock market falls as anticipated, and the futures price of the DJIA is at an index level of 19,000. DJIA futures contract are rated at ? 10 the DJIA index, so Amana stands to gain. Sold DJIA futures for 20,000; receives 20,000 times ? 10 =? 00,000 Purchased DJIA futures for 19,000; owes 19,000 times ? 10 =? 190,000 Gain is ? 200,000 ? 190,000 = ? 10,000 This shows that Amana benefits from selling a DJIA futures contract. Amana has gained from a market decline, which can partially counterbalance the loss on its existing stock portfolio. However, to hedge a huge stock of portfolio, Amana would have to take a short position that had a value equal to the size of its entire stock po rtfolio. Options give one party the right, but not the obligation, to buy (or sell) at a set price on an agreed future date. Future Contracts are a means of avoiding risk but at the cost of eliminating opportunity. A trader may prefer to hedge risks through options so he can take advantage of an unexpected upswing. If hedgers of an equity portfolio sell futures contracts against their position to protect their portfolio and see the stock market go up rather than down as they presumed, they would not be able to take advantage of the upswing. It is therefore advisable to use future contracts when the investor is certain of future outcome as the contract fixes the value of an asset. However, hedging via options is more expensive as it protects from downside loss while leaving upside potentials open with the right but no obligation to purchase asset at a fixed price. Derivatives allow firms to hedge against security prices and interest rate movements, the latter being the most actively traded future contract used by banks and treasury managers. A pension fund manager holds an equity portfolio which closely resembles the US stock market in its compositions. If he thinks the US market is going to fall and wishes to turn his portfolio into cash. He has two choices, he could either sell shares which would not be as profitable because share prices might be depressed if it is a large portfolio plus it is time consuming. Or she could simply sell stock index futures against her portfolio. If accurate, the loss incurred on her equity portfolio will be counterbalanced by a profit on her financial futures position. Derivatives reduce the cost of protection through sophisticated risk management. Firms that are adversely affected by interest rate movements can take particular position in derivative securities to offset the effect of interest rate movement thereby reducing risk. By coming into a ‘forward rate agreement’ a company treasurer can fix the cost of borrowing which will be required on some future date, thus avoiding the risk of fluctuating interest rates in the prevailing period. Interest rate future contracts can be used to match the interest rate characteristics of the bank’s asset and liabilities portfolios. Market makers can hedge the risk resulting from significant positions in equities or bonds by buying offsetting contracts in equity or interest rate futures. Interest rate futures specify the amount of the notional bond and its interest- rate coupon, for instance a ? 50,000 nominal 15-year treasury bond with a 10 per cent coupon. Traders using futures to hedge against risk to which they are exposed in the cash market are seeking to lock into existing exchange or interest rates on future transactions. Once a firm has traded out of its open position in the cash market it no longer needs the hedge in the futures market. Howe ver, the use of futures to hedge to hedge against interest rates for instance can give rise to basis risk. Basis risk is the risk that fluctuations in future prices will differ from movement in the price of risk being hedged. Firms are also faced with exchange rate risks, in the absence of fixed exchange rates or monetary unions, firms must take action to protect themselves against these risks by taking out contracts which carry the opposite risk to that which they face in the underlying market. Another advantage of financial futures contract is that they offer both traders and investors the ability to take a short position in the underlying security; sell something they do not have. Traders may think a financial market is falling, by selling future contracts and buying them back later after the price has fallen they would be able to gain profit in a bear market. Derivatives help to combat adverse effects of volatile commodity prices on the economy as forward prices tend to be less volatile than spot prices. Since the spot price of a security can be offset by the sale of future contracts, the risk of holding securities is neutralized. Hedging is the basic motivation for a lot of businesses trading in financial derivatives market. Nonetheless, speculation is just as popular as derivatives allow firms and investors to take positions in the securities on the basis of their expectations of movements in the underlying financial asset. In other words, derivatives are instruments that allow market agents seeking profit gain to gamble on movements in the prices of other instruments without being required to trade in them. Furthermore, speculation provides liquidity in the markets and enables it to operate efficiently. Speculative positions are required to offset any imbalance which may arise from hedging transactions, and active speculation in response to small price movements ensures that any temporary imbalance would not lead to a drastic price change thereby reducing volatility. Derivative markets respond to information quicker than cash market. Therefore it allows speculators to predict with accuracy cash market prices and return of their investment. For example, a speculator who presumed that interest rate was likely to rise or a currency’s value decline would go short in the particular asset by selling a future contract. Derivatives permit traders to build an open position with speed, traders usually close this position when they have achieved profit objective. If anticipated profits are unlikely, they cut losses before delivery date. Investors could either purchase call or put options for speculative purposes. Call options are bought by investors who speculate a rise in price of underlying stock. An investor pays the option premium and becomes the owner of a call option he is entitled to the right to purchase stock at the exercise price up to the time of expiration date. The advantage of this is that investors have secured a price to be paid for stocks and therefore gain a profit in secondary market of stock prices rise. Tayo purchased a call option on British Telecoms (BT) Plc. for $3 per share, with an exercise price of $75 per share. She decides to exercise her option at the expiration date if the market stock price is above $75 at the time. Tayo wants to find out what her possible profit outcomes are per share under the different prices of Boots plc. stock. Possible Outcomes for Investment in a Call Option Possible price of boots plc stock at expiration($)| Premium paid($)| Amount Received from Exercising Option($)| Profit share from investment($)| 71| 3| Option not exercised| -4| 76| 3| 1| -2| 78| 3| 3| 0| 82| 3| 7 | 4| 85| 3| 10| 7| At any price above $75 but below $78, Tayo will exercise the call option but make a loss. For instance, at the price of $76, she can exercise the option by buying the stock at $75 and selling them for $76. However, with a premium of $3 to be paid, she incurs a loss of $2 on her investment. At the price of $78, tayo breaks even and at any price beyond that she makes a profit from this call option. On the other hand, put options are purchased by investors who expect a fall in price of assets. The contract is set at a predetermined rate lower than the current market price, so if prices do plunge further investors earn a profit from put option. This leverage allows speculative investments to be used to take advantage of specific profit opportunities or to insure a portfolio against risk. For an options contract, there has to be a corresponding seller (or writer) to the purchaser of an option, who is prepared to accept the increased risk exposure and the premium has to be large enough to compensate risk. The buyer of a call option acquires the right to buy specified instrument. For example, an investor who speculates that euro will rise against the US dollar could buy a euro surplus giving the right to buy euro at a specified price, say $0. 60 =? 1. If the spot exchange rate were to rise to $0. 68 =? 1, the option holder could acquire euro at $ 0. 60 under the terms of the option and sell them in the spot market at $0. 68. As the price of the underlying product rises, so too will the profit that can be made from exercising the option. The buyer of a call option thus assumes a long position in the underlying product. Swaps are a huge market. The first major example of a derivative trade occurred between the World Bank and IBM in 1983. The World Bank was lending in Swiss Francs and wanted to borrow in Swiss Francs, but it had depleted all its borrowing options, hence it faced rising costs. On the other hand, IBM was a dollar borrower but had never borrowed in Swiss Francs as it had no use for the currency. Nonetheless, Salomon Brothers, the investment bank set up a deal with IBM because IBM could borrow Swiss Francs at a cheaper rate than the World Bank could, so both institutions borrowed currencies they did not need. IBM in Swiss Francs and World Bank in dollars, this was done simultaneously and they converted proceeds into currencies they did need. Salomon Brothers was the ‘writer’ of the debt obligation and because of their dealings with each other; both institutions faced a lower interest rate. All of the above gives evidence that derivatives are a powerful instrument in combating risks and making profits from speculation amongst other. However, Warren Buffet warns that derivatives are not without its curses. He likens derivatives to â€Å"hell†¦. easy to enter and almost impossible to leave† and states that increasing trade in it pose a mega-catastrophic risk for the economy as it pushes companies onto a ‘spiral that can lead to a corporate meltdown’. For example, derivatives trading were held partially responsible for the collapse of the stock market in 1987. The story being that stock market trader anticipated a decline in the price of stocks that weekend. Immense orders to sell were made at brokerage houses and many traders automatically sold futures in shares of major corporations. This panic and wrong speculation destabilised stock markets and contributed to the volatility of the cash market. An example closer to home is the losses of ? 91 million made by traders at NatWest Capital Markets (the investment banking arm of the National Westminster Bank in London) in 1995 and 1996 on deutschmark and sterling options. In Conclusion, financial derivatives , although not without faults, has become a major global growth industry as financial agents have become increasingly assertive and innovative in their use of futures, options and swaps to hedge risks and take speculative positions. References 1) http://news. bbc. co. uk/1/hi/2817995. stm Accessed on the 20th April 2010 2) globalresearch. ca/index. php? context=vaaid=8634 Accessed on the 28th April 2010 3) Howells P Bain K (2007) Financial Markets and Institutions, London: Prentice Hall 4) Mervyn K. Lewis (1999) The Globalization of Financial Services, Cheltenham: Elgar Reference Collection 5) Rutterford J Davison M (2007) An Introduction to Stock Exchange Investment, New York: Palgrave Macmillan 6) Howells P Bain K (2002) The Economics of Money, Banking and Finance, Essex: Pearson Education 7) Henderson R (1993) European Finance, Berkshire: McGraw Hill Book Company 8) Gitman L Madura J (2001) Introduction to Finance, Boston: Addison Wesley 9) Heffernan Shelagh (1996) Modern Banking in Theory and Practice, Chichester: Wiley 10) A. D Bain( 1992) The Economics of the Financial System, Oxford: Blackwell

Tuna Melt Sandwich Essay Example | Topics and Well Written Essays - 750 words

Tuna Melt Sandwich - Essay Example Another advantage of the Tune melt sandwich other than the ease, with which it can be made, is the fact that it is a low impact meal which is highly filling and that it can be made in 10 – 15 minutes. The instructions that one needs to follow in order to prepare the meal are quick and simple. Firstly a list of the things required should be made and the items assembled. Bread is the first of the ingredients. It can be the kind that the maker prefers however a healthy choice would be to pick whole grain bread. Another item that is important to prepare the sandwich is that of a non stick pan or a toaster oven. Non-stick spray and Butter or Margarine is also required. Tuna obviously is an important part of the recipe, can be bought fresh or canned in water. The last thing that Is needed to make the sandwich is Cheese. With the wide variety available any cheese of preference or taste can be picked. However some suggestions are to buy American, Cheddar or Swiss cheese. Once all the ingredients are in place the process for making the sandwich can be initiated. First you need to pick the kind of bread you want to use. Mostly white bread is a popular choice and it works perfectly however in case you want to cut down on your carbs and/ or are watching your weight there is always a healthy alternative to enjoy a tuna melt. Bread that is â€Å"enriched†, that is, has no fake nutrients or corn syrup added can be used. Usually these specifications are mentioned in the label which makes it easy to find whole grain bread. Not only does it digest better and not turn into fat easily it also tastes great. The next step would be to pick a cheese of your preference. American cheese, like Kraft, can be used or Cheddar, or perhaps even Swiss cheese. All of these work just as well. However the amount of cheese used can vary depending on how much cheese one prefers. A slice can be put on the top and one on the bottom. If you are watching your weight then a thin slice of c heese can be used. The next step requires preparing the Tuna. Canned Tuna in water can be used due to its better taste. To prepare the tuna it needs to be heated on a medium setting in a non stick pan on which some butter flavored spray is used. Depending on one’s preference chopped celery or some mayonnaise can be added to the Tuna. Some butter can be applied to the bread depending on one’s preference. In case a pan is used to make the tuna met each slice of bread can be buttered on one side or a 0 calorie spray can be used. Another thing that can be done is if you are using a toaster oven to make the sandwich butter can be applied to the bread and then toasted to avoid any additional calories that can be added due to the butter. Layering is the next step. Cheese piled on the bread with a generous helping of tuna followed by another layer of cheese and bread on top. The last step would be to placing it in the toaster. Place the sandwich on a pan, which can then be ins erted on the toaster oven and heated using a moderately medium or slightly high setting. After giving it a few minutes to cool your tuna melt sandwich is ready to be served. However it is important to note that another option exists. The tuna melt can be cooked in a pan. This can be done by pre-heating the non stick pan on medium heat. After which the sandwich is placed on a pan and flipped with a spatula after approximately 3