Wednesday, April 8, 2009

Speech Outline - Global warming

Introduction
How many of you are aware of about earth hour today? Why we mark an hour for mother earth? I think the answer lies in global warming which is due to green house effect. In simple words, Global Warming can be defined as the increase of the average temperature on Earth. And because of human activities the earth’s natural balance has lost. Level of CO2 has increased more than 30% than the pre-industrial level the trees can photosynthesize. As a result the world is overheating. Out of the 20 warmest years on record, 19 have occurred since 1980. The three hottest years ever observed have all occurred in the last eight years. Research done by Intergovernmental Penal on Climate Change (IPCC), by 2000 scientists found that man are responsible for Global warming.
Causes:
- Burning fossil fuel- With less than 5% of population the USA produces 21.1% of all CO2 emitted, china 28%, India and Japan above 4%., haven’t sign Kyoto protocol yet!
- Deforestation-jungles and rainforests were the lungs of the world.
- Predicted average global temperatures would rise 2.5 to 10.4 degrees by the end of this century. The rise from 1901 to 2005 was just 1.2 degrees.
Effects:
- Climate change-monsoon disasters
- Melting of glaciers on north and South Pole. Disappearance of nations, cities and islands
- Biodiversity-more than I million species extinction- agricultural crops-economic consequences.
- Results in the extinction of 30% of species and the loss of 30% of coastal wetlands.
What you can do:
- Raise your voice, first start with yourself
- Reduce! Reuse! Recycle!
- Saving electricity, conserving fuels, Planting more trees, etc..
- Buy and encourage environmentally friendly products
Conclusion
Scientists say that we must reduce our carbon emissions by at least 80% by 2050.Reduction does not remove effects at once as gases and its impact lasts more than 200years. To visualize the effects of global warming and its consequences I recommend to you watch the Oscar nominated” inconvenient truth” from former vice president of USA, Al Gore. Do not let our selfishness destroy the moth earth and extinctions of species. Everyone can make a difference! After all, it will be our next generation that will feel the effects.
References
http://www.climatenetwork.org/climate-change-basics/usa-and-australia
http://www.sierraclub.org/energy/tenthings/
http://www.globalwarmingreview.com/

Islamic Monetary System

The distinctive facet of an Islamic financial system is the absolute prohibition of interest (riba) and well functioning zakah system. Islam aims to promote the virtues of ‘Adl and Ihsan among its followers and after providing basic necessities to all the government need minimum state intervention to establish a just social and economic order. However, to ensure social justice and, in the context of prevalent conditions, the state is empowered to take all necessary actions within the framework of Islamic Shari’ah to achieve this objective. The countries that have chosen to bring their economic parallel with the rules prescribed by Islamic law have had to restructure their banking systems to conform to the restriction on interest-based financial transactions.


Islamic banking system is fundamentally an equity-based system in which depositors are treated as if they were shareholders of the bank. Accordingly, depositors are not guaranteed the nominal value, or a predetermined rate of return. To remain consistent with Islamic law, the bank cannot charge interest in its lending operations, but has to use special modes of investment and financing that are also based on the concept of taking up profit and loss mutually.


The conduct of monetary policy in an Islamic economy has also been addressed recently in a number of papers1 .Similar to conventional system Islaic monetary systems seeks to establish monetary stability with economic well being and full employment along with economic growth. In addition, it aims to promote social distributive just by recognizing need for elimination of poverty. There are a number of policy instruments available for controlling domestic liquidity. These include, for example, changes in reserve requirements, overall and selective controls on credit flows, changes in the monetary base through management of currency issue, and moral suasion. Central bank should allow expansion of money supply only to the extent it is justified by a possible contribution to growth in real balances Furthermore, as pointed out by Akram Khan (1982) and Siddiqi (1982), open market operations could still be conducted with securities that do not bear a fixed rate of return. The monetary authorities also have the possibility of directly changing the rates of return on both deposits and loans by altering the ratios in which the banks and the public are expected to share in the profits and losses that are associated with the transactions, i.e., the profit-sharing ratios. Other than their own capital and equity, the main sources of funds for Islamic banks are two forms of deposits - transaction deposits and investment deposits. Murabahah, musharakah leasing etc are Islamic tool of financing investment.


To begin with many seemingly makeshift and second-best policies have been adopted, but this is only to be expected as Islamization of the economy involves a learning process . What Islamic economic system looks like is not like what Islamic banks are right now. Considerably more theoretical analysis and actual experimentation is required to reconcile the rules and codes of economic behavior that have evolved over fourteen hundred years with the functioning of a modern-day economy. Yet Islamic banking has proven that equity based banking is still most viable and best source to prevent handle financial shocks. However, economists still have much to contribute concerning the directions that the Islamization of economies takes.