Could Herding Be Consequence Of Vietnamese Banks Reform - Free Essay Example

Sample details Pages: 22 Words: 6740 Downloads: 6 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Risk management become an essential part in the operation of developed banks in the world as it contributes to reduce risk in financial market from which minimize the loss from crisis and turbulence. However, from the view of herding behavior, a tighter risk management regulation may worsen the downturn by quickly contagion in national-wide as well as global scope (Persaud (2000) (1)). In Vietnam, risk management system is in initial process; nevertheless, potential risks in Vietnamese market have proved the necessity of more prudent risk management tools such as VaR model or credit scoring model. Don’t waste time! Our writers will create an original "Could Herding Be Consequence Of Vietnamese Banks Reform" essay for you Create order However, the use of VaR may cause so-called risk management herding, for which solutions should be addressed. CHAPTER I: INTRODUCTION 1. The problem 1.1. Poor risk management as a source of crisis History has witnessed a large number of financial crash and turbulence in the world banking system and many of them left very serious consequences because of their quickly widespread and contagion to worldwide scope. As could be seen in Table 1, the root of these crises is various, such as non-performing loan, illiquidity or changes in real interest rate; however, one of the most important reasons is the inefficiency and laxity of risk management system in banks and financial institutions at the time of the downturn. Mike Batty (2008) indicates that à ¢Ã¢â€š ¬Ã…“an overarching theme of the credit crisis is a failure of risk managementà ¢Ã¢â€š ¬?. According to Batty (2008), credit crisis is the result of the inadequacy in risk management system and failure in risk management techniques. Browel (2001) also point out that financial crises or banking crises in Europe in 1990s decade implies common characteristics containing external circumstance and poor risk management practices. 1.2. Risk management herding: 1987 crash and 1998 LTCM crisis In 1990s decade, herding was very common phenomenon in which market participants with the same risk management policy have taken the same reactions to the risk would make markets to be more volatile and vulnerable (Avinash Persaud (2000)(1)). Therefore, once crisis occurs, it could be quickly contagious from one market to another and push financial system into the deep hole. 1987 crash and 1998 LTCM crisis are two typical examples for the turbulences which were in connection with so-called risk management herding. 1987 crash has happened because of both internal and external causes in which the economists usually see the external reasons as the main causes: program trading strategy, portfolio insurance, derivatives markets and lack of liquidity (Edward (1988)). However, from another view about the reasons for crash based on information avalanches, internal causes like the herding behavior of market participants in buying and selling stock is emphasized. On Monday, 19th October, 1987, which is known as double à ¢Ã¢â€š ¬Ã…“Black Mondayà ¢Ã¢â€š ¬?, The Dow Jones Index sharply fell 22.6 percent (508points) in a single day, the largest one day plunge in the history of stock market. In the weeks or even months before the crash, investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ confidence has become weak because they gradually realized the downward trend of stock prices[2]and the reason for this, based on Shiller (1987)à ¢Ã¢â€š ¬Ã¢â€ž ¢s survey, could be the herding behavior between market participants: similar risk management policy (using the same VaR model) leading to similar reaction to the change of the economy, a large number of investors sell stocks may lead to more and more other investors selling their stocks. Another crisis which is concerned to risk management herding is the collapse of Long-term Capital Management in 1998. LTCM crisis is related to the decline in liquidity condition which is explained by three factors: the born of EMU (European Economic and Monetary Union) in January 1999; the increase in the different ways of transaction such as ATS (electronic alternative trading system) and ECNs (electronic communication networks); and the third factor is herding behavior between investors (Avinash Persaud (2000)(2)). The reason for this, according to Persaud (2000)(2), is changes in factors that affect international capital flows, from which these factors could affect market liquidity. When international capital flows depend on institutional market participants who desire to get higher return than the others, this can boost liquidity of the market. However, herding behavior prevents investors from doing so because many investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ decisions now are identical: they en ter and leave the market at the same time. With tighter risk management system, herding has even caused more volatility when herding investors reach their DEAR (daily earning at risk) limit at the same time, they sell stocks at the same time and drive the crisis to be further. Persaud (2000)(1) analyses this issue based on a cycle of DEAR limit. At first, there is some bad news related to a particular stock, increasing volatility in this stockà ¢Ã¢â€š ¬Ã¢â€ž ¢s market. Banks who have a large amount of this stock in their portfolio can find that their DEARs are reached together, thus they sell their stocks at the same time to decrease DEAR level. This would increase market volatility and correlations because of decline in stocksà ¢Ã¢â€š ¬Ã¢â€ž ¢ prices. Market volatility, in turn, leads to more banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ DEAR limit are reached and create contagion in financial market. In other words, crisis contagion phenomenon in this case could be explained (as Nishimura and Kiyohik o G. (2009)) that in boom, decrease in risk also pushes down capital requirement thus decreases lending. In contrast, when the economy in downturn, bank lending increases due to the rise in downside risk leading to bigger capital requirement. From this, capital adequacy requirement regulated in Basel II is criticized in causing so-call à ¢Ã¢â€š ¬Ã…“procyclicalityà ¢Ã¢â€š ¬? problem[1], when it combines with the herding behavior of investors. First, regulations in Basel II could increase the volatility of the market, and with a minimum capital requirement, the reserve may not satisfy the liquidity demand in bad times. Second, the fair-value accounting in which reference value would not present the value of real market may trigger the problem. Third, herding behavior of investor also amplify procyclicality effect and crisis would be contagious in a wide and unpredicted scope. 1.3. Reasons for herding It can be seen from the issues above that herding can cause negative impacts to finance system in time of crisis because it can cause the contagion effect of the crises. In fact, Stephanie Kremer (2010) states two kind of herding: intentional and unintentional. Unintentional herding is usually driven by fundamentals such as the same information set, the same investment style or the same risk management model. Intentional herding is the imitation of market participants in buying and selling the same stocks, and this imitation is not related to private information or prior belief. Unintentional herding can be a good outcome while intentional herding is seen as an inefficient phenomenon which can cause awful effect to financial market. However, in some case, such as the case indicated by Persaud (2000), unintentional herding which is driven by using the same VaR model also triggers the bad effect of banking crash and financial crisis (Kremer (2010). Therefore, the question why market pa rticipants herd should be addressed. Avinash Persaud (2000) indicated three explanations for herding: Firstly, because we are living in the world of uncertainty, the best way to discover information of the others is imitating them. The second reason is investors are usually rewarded by relative performance, so if an investor strays so far from the others, he may not rewarded. The indicated third reason is investors are easier to be fired if they made their own decision and wrong than if they are wrong but in a group. Because of these reasons, herding becomes very common and difficult to control. The changes in risk management regulations aiming to more transparency, stronger prudential and more market sensitive risk management system may even trigger the effects of herding behavior (Persaud (2000)). 2. Aim of this paper This paper aims to analyze risk management system in Vietnamese banks as well as herding behavior in Vietnamese banks regulatory and financial market to suggest some solutions for controlling this behavior phenomenon. The following of this paper concludes Chapter II to Chapter V, in which Chapter II indicates the literature review related to risk management, herding behavior in institutional investors and regulatory responses. In this Chapter, I discuss the use of VaR as a risk management tool in banks, its drawback in encouraging herding behavior in financial market and also, I consider the literature about the solutions for this phenomenon. In Chapter III, I present the application of international risk management tools in Vietnam banks and potential herding behavior in Vietnamese banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ risk management system. To do that, I summary the risk management system in Vietnamese banks as well as potential risks they could face in the near future, from which I prove the necessity of enhanced risk management tools like VaR model and credit score model. These models on the one hand could create a tighter risk management system, which, on the other hand can lead to contagion in financial crisis. Chapter IV is my conclusions about Vietnamese risk management system, the danger of herding and some recommendations to improve liquidity as well as to avoid herding in this market. Chapter V indicates the drawbacks of this paper. CHAPTER II: LITERATURE REVIEW Introduction of Value at Risk In the late 1980s, the concept of VaR (Value at risk) was first used by major financial institutions to measure their portfolioà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk (Linsmeier and Pearson (1996)). However, the current VaR as a market risk measure was just born since 1993 when the report of G-30 about the born of off-balance-sheet products was published. The born of these new products has addressed a need of smart risk management for them (Alexander J. Mc Neil, Rudiger Frey, Paul Embrechsts (2005)) and with the release of RiskMetrics in 1994, it has created a strong incentive in using VaR as a popular risk management technique in banks and financial firms since that time (Linsmeier and Pearson (1996)). As the definition from businessdictionary.com, à ¢Ã¢â€š ¬Ã…“VaR is the largest loss likely to be suffered on a portfolio position over a holding period (usually 1 to 10 days) with a given probability (confidence level)à ¢Ã¢â€š ¬?. Therefore, VaR could be considered as the maximum potential lost of a portfolio in specific time period with a given confidence interval. For example if the 95% value at risk of a portfolio is GBP1milllion in weekly period, the probability for total loss of this portfolio exceeds GBP1million for the next week is just only 5% (Natasa Kozu (2010)). From the calculation of VaR, banks and financial firms could manage their capital requirement by retaining enough money provision of market downward trend so as to avoid market risk. Because VaR is easy to understand and apply and it is also a single measurement for risk which is accepted widely (Natasa Kozu (2010)), a VaR model was allowed by Basel Committee in 1995 for banks to measure their capital requirement in case of market risk, based on the parameters from the committee (Linsmeier and Pearson (1996)). This is indicated in Basel Accord I which requires banks to calculate regulatory capital (minimum capital charge) and remain the minimum capital in line with potential loss of banks. However, the p ublication of Basel Accord II framework has required more market sensitive risk management, more prudential principles to guarantee that banks have enough capital to support their risk and stronger market discipline by increasing transparency of banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ publications (Neil, Frey Embrechsts (2005)). Although Basel II and VaR have their own merits, the use of VaR also has some drawback such as it cannot measure risk in extreme situations and may bring the wrong results with the less frequently traded stocks (Natasa Kozu (2010)). In addition, the release of Basel Accord II with three pillars above may increase the effect of risk management herding in crisis period which is considered as à ¢Ã¢â€š ¬Ã…“procyclical effects of financial regulationà ¢Ã¢â€š ¬? (Alexander J. Mc Neil, Rudiger Frey, Paul Embrechsts (2005)) in which minimum capital requirement increasing in recession and decreasing in boom may cause the liquidity of market decline. Literature for risk management herding solutions Avinash Persaud (2000) has suggested the solutions for herding behavior in financial market which, as he indicated, could create systemic risks. The problem that policy makers face is the tighter risk management regulation focusing on market-sensitivity, prudence and transparency can increase the effect of herding behavior, therefore it should be reconsidered in a new way. The requirement of setting an extra capital aside for systemic risk of regulators in particular market where herding exists just only make the problem become more vicious when there is negative information (why). The solutions here are encouraging banks and other financial institutions to allocate collateral in case of systemic risk, or to buy liquidity options from central bank but in good times, not in awful times. In addition, because there are investment inflows that herds less than the others, regulators should facilitate those inflows, including foreign direct investment, equity portfolio and hedge funds rath er than bond flows andà ¢Ã¢â€š ¬Ã‚ ¦..Transparency in the long run is a good action; however, governments should not expose the information with too high frequency. In particular, information should be published or released monthly of weekly, but not daily. Small markets even find it even better not to release their reserves weekly. Peter Haiss (2009) considered the solutions for risk management herding through both sides: regulatory side and banking side. In regulatory side, he suggests to change from actor-based approach to product-based and to consider macroprudential factors in making regulation. In banking side, Haiss (2009) suggests banks to set up conflict mechanism in the management systems (devils advocate-approaches or dialectical inquiry for example) and to control the reward systems to resist herding. CHAPTER III: RISK MANAGEMENT AND RISK MANAGEMENT HERDING IN VIETNAM BANKING SYSTEM Overview of risk management in Vietnamese banks and financial system In Vietnam, risk management systems is in improvement process toward an international standard risk management system (Loi, Hoang Tien (2004)); however, currently, Vietnam is just still apply the Basel I which has revealed many shortcomings in the past decade (Ha, Tran Manh (2009)). The requirement of minimum capital has just concentrated on credit risk, while market risk is also a important source of financial turbulence and downturns. In Vietnam, risk management system is mainly based on Decision no. 457/2005/QD/NHNN of State Bank of Vietnam (with Basel I fundamental) in which regulates capital adequacy ratio (CAR), the ratios of payment ability, credit limitations which are mainly credit-risk related regulations. The market risk is still not focused while financial crisis is happening in global scope. The collapse of Northern Rock in 2007 due to the change in interest rate when LIBOR (London Interbank Offered rate) reached its highest level at 7% in July 2007 and the loss of Ameri can commercial banks in 1990s prove the essential of management of market risk. In 2008, when interest rate and exchange rate in Vietnam proved its strong volatility[1], few commercial banks have a forecast systems which could predict the potential loss that may occur from which brings suitable solutions in case of crisis (Ha, Tran Manh (2009)). Nevertheless, risk management in banks and financial institutions in Vietnam is moving toward the Basel II with new standards aiming to assure healthy Vietnamese financial system (Loi, Hoang Tien (2004)). The four state-owned banks of Vietnam (Bank for foreign trade Vietcombank, Bank for Investment and Development BIDV, Bank for Industry and Trade à ¢Ã¢â€š ¬Ã¢â‚¬Å" Vietinbank, and Agriculture and Rural Development Bank Agribank) have been advised by the State Bank of Vietnam to build credit manuals which contain the international standard in risk management[1]. Along with credit manuals, the four state-owned commercial banks also carry out other activities such as asset-liability management or insider audit which contributes to recognize potential risks in banks operation although there is still a big gap between the standards and the implementation (eStandardsforum (2008)). According to Technical Assistance Report of ADB (Asian Development Bank) 2008, ADB will assist Vietnam in improving their account and auditing system as well as support this country in drawing a draft of new law related to independent audit and strengthening standards for SMEs (Small and Medium-sized Enterprises). Credit information becomes also more transparent through the establishment of Credit Information Centre (CIC) which supplies information of the borrowers to banks and financial institutions. This may decrease the risk of the lending in the future: once banks and creditors have enough information about borrowers, effect of asymmetric information will reduce and therefore put down the risk that creditors may face in the future. Before 2004, the CIC provided entry to information for credit firms only but from 2004 onward, the CIC already facilitated the access to information for all parties of all economic sectors and received the fee. This has improved the transparency in financial market as indicated in pillar 3 of Basel Accord II. However, improvement of transparency in Vietnam financial systems has been facing with many difficulties, especially in case of non-performing loans (NPLs) and non-performing assets (NPA) of state-owned firms which are still considered as state secrets. NPL s in Vietnam has been estimated by Fitch Ratings[2]that it accounts for about 13% of Vietnam banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ total loan at late 2008, however, this is still an underestimated percentage of NPLs (Champleboux, Kurdi, Bultez Gain (2010)). Cleaning NPLs and NPA is currently the target of AMC (Asset Management Company) which belongs to commercial banks and DATC (the national Debts and Assets Trading Company) which belongs to Vietnam Ministry of Finance. In Vietnam there currently are ten commercial banks who have established their AMCs which concentrate on mortgage asset transferred from the banks to recover NPLs of these banks. The DATC concentrates on State-owned Enterprises (SOEs) in which it focuses on resolving the long out-standing NPLs and NPA of these SOEs. Although AMCs and DATC have been established in order to resolve NPLs and NPA which have been overdue for a long time, the targets of these companies still contain conflict: on the one side, they aims to clear NPLs an d NPA but on the other side, they also need to gain profit by dealing with transaction related to NPLs (Loi, Hoang Tien (2004)). In Vietnam Best Practice Report 2008 (Estandardforum (2008)), it is indicated that there is not enough information available to conclude that Vietnam banking and financial system is compliance with Code of Good Practices of IMF on Transparency in Monetary Policy. (Table) Vietnam has already joined the General Data Dissemination System of IMF from 2003 but its entry to Special Data Dissemination System of this organization, which has stricter regulations, is not yet approved because this country has not yet met the entry requirements. The main reason is data published in Vietnam lacks reliability, opportuneness and coverage, especially in case of national accounts. Moreover, difficulties in cooperation between governmental offices who has responsibility of data dissemination also leads to the failure of Vietnam in the road to IMFà ¢Ã¢â€š ¬Ã¢â€ž ¢s Special Data Dissemination System (Estandardforum (2008). About fiscal policy transparency, a report published in 1999 of IMF and World Bank has indicated that Vietnam does not meet the requirement of the Code of Good Practices of IMF on transparency in Fiscal Policy; however, the next reports of IMF also indicated that Vietnam has a good improvement in transparency in fiscal policy presenting in State Budge Law (2002) and altered budget categorization method. National budget was being published annually and national accounting standards were being revised and integrated financial control system was introduced aiming to enhance fiscal report and treasury management. Nevertheless, Vietnam OBI (Open Budget Index) 2006 related to the openness and transparency in budget just reached 2%. The reason for it is among seven documents related to budget which must be public, Vietnam just satisfied only one and even did not allow the public access to the detailed content of that document (Estandardforu m (2008)). Besides, regulation about risk management practices in Vietnam also gives more power to banks and financial institutions (Loi, Hoang Tien (2004)). In particular, Vietnam state-owned commercial banks are allowed to reject the projects that cannot be commercially vital, even in the case of big projects of state-owned huge companies. In Vietnam, there was situation in which state-owned commercial banks understand that a project does not have potential commercial benefit but they still must approve that project because it is from big state-owned company. This is called as lending based on relationship between banks and clients (Dinh and Kleimeier (2006)) in which approval for lending is not only depends on quantitative characteristics of borrowers like income or collateral but also based on qualitative factors such as fame or borrowersà ¢Ã¢â€š ¬Ã¢â€ž ¢ position in the community. Therefore, the big state-owned companies usually have advantage in applying for a loan from state-owned comme rcial banks even if their projects do not have bright prospect about success ability which contributes to raise the risk in banking lending operation. Giving more power to SOCBs (State-owned commercial banks) is one in many steps of reform in banking system and would also help to reduce risk in financial and banking operation. Potential risk and the need of risk management in Vietnam financial system Vietnam financial system contains many potential risks Downgrade of Vietnam Issuer Default Ratings Although Vietnam banking system is in improvement process with its own merits, the country still has to face many difficulties brought by a weak banking and finance industry, which is rated as à ¢Ã¢â€š ¬Ã‹Å"BB+à ¢Ã¢â€š ¬Ã¢â€ž ¢/Negative B by the StandardPoorà ¢Ã¢â€š ¬Ã¢â€ž ¢s and as à ¢Ã¢â€š ¬Ã‹Å"CCCà ¢Ã¢â€š ¬Ã¢â€ž ¢ by the Economist Intelligence Unit (Champleboux, Kurdi, Bultez Gain (2010)) . Fitch Ratings have also just downgraded Vietnam IDRs (Issuer Default Ratings) of long-term loans in both domestic and foreign currency from à ¢Ã¢â€š ¬Ã‹Å"BB-à ¢Ã¢â€š ¬Ã¢â€ž ¢ to à ¢Ã¢â€š ¬Ã‹Å"B+à ¢Ã¢â€š ¬Ã¢â€ž ¢, in which short-term IDRs in foreign currency is remained at à ¢Ã¢â€š ¬Ã…“Bà ¢Ã¢â€š ¬Ã¢â€ž ¢ because of Vietnam weak banking and financial system[4]. Liquidity risk and inflation risk The potential risks in Vietnam current financial market contain two main risks that are liquidity risk and inflation risk. One of the main reasons of the global subprime crisis which started in the US from 2007 is liquidity risk, in which short-term deposits were used to finance long-term loans. In Vietnam, the economy has suffered from the crisis, however, the effects were not too serious as developed countries who received direct consequences of the downturn because Vietnam banking systemà ¢Ã¢â€š ¬Ã¢â€ž ¢s scale is small, banks in Vietnam are mainly commercial banks and Vietnam has not yet deeply joined the world playground. Nevertheless, the global turbulence has been warning Vietnam about the danger of liquidity risk in Vietnam financial system (Hookway Barta (2009)). Inherent liquidity risk in Vietnam is caused by bad-debt (NPLs) which is mainly from SOEs (State-owned Enterprises) and therefore, it is difficult to be resolved. Another reason is the dollarization of Vietnam eco nomy which disappears one of the most important functions of central bank: à ¢Ã¢â€š ¬Ã…“lender of the last resortà ¢Ã¢â€š ¬? (Hauskrecht Nguyen, T.Hai (2004)). Dollarization is the situation in which a country use foreign currency (US dollar) to carry out the transaction in this country due to the stability of foreign currency compared to domestic currency[1]. Vietnam has a highly dollarized economy and it is not beneficial dollarization (Hauskrecht Nguyen, T.Hai (2004)): in case liquidity demand become emergent, central bank could not have enough money to inject to the economy because of the inelasticity of money supply in foreign currency. Bank panics followed by financial crisis are easy to happen especially when Vietnam economy is wider opened as its promise for the entry to WTO. Beside liquidity risk, inflation risk is also a danger to Vietnam financial system. In current time, Vietnam has plenty liquidity which pushes the Government of this country pumping a great deal of credit to the economy to reduce lending interest rate from which supports banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ lending. This may worsen the problem of NPLs and NPA which have existed in Vietnam banks system for a long time, raise the current account deficit of this country and increase inflation back to the level of over 20% of 2008 (Champleboux, Kurdi, Bultez Gain (2010))[6]. Therefore, Vietnam financial system is still facing the danger of future inflation. Applications of VaR in Vietnam bansks (for market risk) Vietnam financial market is in reform progress to the light of Basel II; therefore, using VaR as a measure of risk in risk management system of this country (pillar 2 of Basel II) would be inevitable in the near future. Currently, there are three main methods to measure VaR: Delta-Gama, Monte Carlo and historical simulation in which Monte Carlo method or stochastic simulation method is used most popularly because of it is more exact and more flexible than the others (Natasa Kozu (2010)). Delta-Gama method is quite similar due to its assumptions that risk of the portfolio is linear and risk factors are normally distributed and thus these are also disadvantages of Delta-Gama method. Historical simulation method uses historical data to measure VaR with weights in present and Monte-Carlo method is more sophisticated with assumption that each risk factor has different distribution and parameter. (Natasa Kozu (2010)). To apply VaR into risk management system of Vietnam banks and financial institutions, Ha Tran, Manh (2009) recommends historical simulation method because it seems the most suitable method for Vietnam banking system. According to Tran, Delta-Gama method is simple but lack of accuracy, while Monte Carlo is too complicated with a small economy like Vietnam: it is difficult to build different simulation program for each Vietnamese bank due to limit in financial ability as well as staffà ¢Ã¢â€š ¬Ã¢â€ž ¢s skill to apply the model. Historical simulation is considered as the most suitable one because it brings quite exact result and is easy to construct; in addition, Vietnam commercial banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ historical data is initially established and market factorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ data like interest rate, exchange rate are also easy to capture in the past ten years. Applying historical simulation method to measure VaR in Vietnam banks follows seven steps: The first step is determining the risk factors (as market variables) which can affect banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ income. Second step is gathering historical data in an enough long period. In the third step, the simulation of changes in market variables in the future will be carried out based on assumption that they have the similar tendency as in the past, from which identifying the potential lost correspondence to each episode of market variables as the fourth step. In the fifth step, VaR could be calculated with a given confidence interval. The two final steps are using Stress-test and Back-test to ensure the accuracy of VaR and banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ ability to stand changes in risk factors that are far different from changes in the past. To calculate VaR of an investment portfolio, assume that present value of the portfolio is Pt: Pt=P (f1,t , f2,t ,à ¢Ã¢â€š ¬Ã‚ ¦.,fn,t) Where f1,t , f2,t ,à ¢Ã¢â€š ¬Ã‚ ¦.,fn,t are risk factors at time t The changes in risk factors in the past could be expressed as: à ¢Ã‹â€ Ã¢â‚¬  f ­ik = (à ¢Ã‹â€ Ã¢â‚¬  f1,t , à ¢Ã‹â€ Ã¢â‚¬  f2,t ,à ¢Ã¢â€š ¬Ã‚ ¦, à ¢Ã‹â€ Ã¢â‚¬  fn,t ) (k=1,2,à ¢Ã¢â€š ¬Ã‚ ¦,s where s is the number of episodes of each factor) From which calculate simulated value of each factor, starting with factor 1: f ­ik = f1,t + à ¢Ã‹â€ Ã¢â‚¬  f1,t And simulated value of the portfolio will be: Pk= P (f ­1k , f ­2k ,à ¢Ã¢â€š ¬Ã‚ ¦, f ­nk) The changes in portfolio value will be: Rk=( Pk à ¢Ã¢â€š ¬Ã¢â‚¬Å" Pt )/ Pt From that VaR could be calculated as: VaR=Ave(Rp) à ¢Ã¢â€š ¬Ã¢â‚¬Å" Rp(c) Where Ave (Rp) is average return of the portfolio Rp(c) is return correspondence to the cth differentiation Thus we could use changes in stocksà ¢Ã¢â€š ¬Ã¢â€ž ¢ market price to calculate VaR without deriving parameters as well as identifying functional distribution. To illustrate this method, assume that a bank has a portfolio including 1,000 stocks ACB of Asia Commercial joint-stock Bank with price VND28,350,000 in 09/09/2010 and 1,000 stocks AGC of An Giang coffee joint-stock company with price of VND24,200,000 in 09/09/2010. Historical data about price of this stock is collected in Table 2, and that is data from 09/09/2009 to 09/09/2010. From Table 2, VaR was calculated equaling to -2039.2[1]that means the maximum loss of portfolio in 10/09/2010 will not excess VND2,039,200 with confidence level of 95%. By calculating VaR, bank could prepare enough money to survive if the worst situation occurs. However, in fact there are changes in risk factors that are not similar to changes in the past, thus Stress test becomes a necessary tool in banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ risk management (Ha, Tran Manh (2009)). One of the risk factors that affects bank operation is interest rate: changes in interest rate will immediately have effects to banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ assets. Therefore, banks could use historical simulation method to estimate the maximum loss in the future with a given confidence level based on changes in historical data of interest rate, after that expanding changes more than the fluctuation in the past thus banks would prepare more careful for potential loss in the future. Similarly, Vietnam banks could use historical simulation method to calculate VaR due to the changes in inflation rate as well as exchange rate and use Stress test to establish solutions to cope with these market risks. Applying VaR in Vietnam banking system requires Back-test from central bank because sometimes VaR model could bring wrong result compared to reality. For example, if a bank applies VaR model with confidence level of 95% in 252 working days for the past year, the bank would calculate VaR of its portfolio. However, if portfolio loss excesses VaR in more than 13 days (5% of 252), VaR model of that bank would not be accurate and it should be modified to more accurate model. Applications of credit score model in Vietnam banks (for credit risk) As indicated above, liquidity risk due to non-performing loans is a big problem in Vietnam banking system. To solve this, some commercial banks in Vietnam have used credit scoring model which is an important section in their credit manuals (Dinh and Kleimeier (2006)). One of the credit score model being used in Vietnam banks is described in Table 3, in which 14 variables are divided into two panels A and B corresponding to first round and second round in evaluating loans. Borrower is first evaluated based on nine variables (Panel A) and if his or her score is over a certain level, loan applicant will be continuous assessed by other five variables (Panel B). After this second round of assessment, borrower will be ranked as different categories in Panel C and from which, banks could make its loan decisions. As can be seen from Table 3, loan applicants are assessed by experience of credit staff while score assigned to each borrower is not calculated statistically. Therefore, the bank could not find the probability of default of borrowers that helps banks in enhancing their risk management system. This requires a more effective credit score model (in which probability of default should be considered) for Vietnam banks to improve their bad-debt problem. Dinh and Kleimeier (2006) suggested a model with 22 different variables including nine quantitative and thirteen qualitative criteria. Each variable is divided into small groups, then it is coded based on the formula: Ln(gi/bi) + ln(B/G) Where: gi and bi is number of good loans and bad loans of ith group respectively G and B is number of good loans and bad loans in total From this probability of default corresponding to each group could be estimated and banks would have reference to make loans decisions. Table 4 presents 22 variables being used in the model, in which data was collected from one of Vietnam commercial banks (Dinh and Kleimeier (2006)) to calculate probability of default. As can be seen in Table 4, each group in each variable is assigned to a probability of default from which the bank would find it much easier to make their own loans decisions. For example, the higher income, the lower probability of default, so loans condition could be easier for applicants with higher income; or college graduate applicants have the highest probability of default thus should be limited in making loans. Bank can depend on probability of default of each loan applicantsà ¢Ã¢â€š ¬Ã¢â€ž ¢ group to decide whether loans should be made or not; however in this model ln(B/G) is constant but it might be changed in reality of banking practices (Dinh and Kleimeier (2006)). Therefore, it should be combined with relationship lending, that is, banks could apply this model for loans that are already approved by credit staff before because in some cases, credit officer may realize qualitative risk based on his relationship with borrowers (Schereiner (2003)). Risk management herding in Vietnam Herding in risk management policy In the past, risk management in Vietnam was still considered as an expense and banks must pay for it because of law and regulations. Very few banks, especially state-owned commercial banks, understand the strategic importance of risk management as well as the danger of financial turbulence arising from poor risk management. The reason for it is the strong protection policy of this country in which State Bank of Vietnam intervene deeply into state-owned commercial banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation, thus they rarely have to face bankruptcy; therefore, state-owned commercial banks usually care about profit rather than risk management. Currently, although banking system in Vietnam is in reform process in which risk management has been focused to satisfy WTOà ¢Ã¢â€š ¬Ã¢â€ž ¢s requirement, it is still very initial and in original process in which commercial banks have still not conceived enough about risk management techniques as well as their applications[2]. Herding in Vietnamese stock market V. Kallinterakis (2007) has found the evidence of herding in Vietnamese financial market and the relationship between herding and thin traded market in which people do not trade stock continuously thus stock price is unchanged for several days. By using the model of Hwang and Salmon (2003), Kallinterakis (2007) collected the data of VN-index and closing prices as well as market capitalization of the stocks listed in Ho Chi Minh Stock Exchange from 01/03/2002 to 28/02/2007. The result shows that thin trading could be the intensiveness for herding behavior in Vietnamese stock market because after the days in which orders implementation were postponed, the next active trading days would witness a huge demand or supply accumulated in the postponed days, from which possibility of herding in buying or selling stocks could be increased. By using model of Christie and Hwang (1995), Faber, Nam and Hoang (2006) also find out the exist of herding in Vietnamese stock market in 2000-2006 period, toward stocks that have extreme positive returns in the market. The results from research above due to bubble in stock market in the period 2006-2007 in which Vietnamese stock market grew at second highest speed in Asia, just followed China (Pham Ha (2010)). The growth of Vietnamese stock market in which stock price soared is the main reason for herding behavior between stock investors. Nevertheless, stock market bubble has burst in 2008 leading to the plunge in Vietnamese stocksà ¢Ã¢â€š ¬Ã¢â€ž ¢ price after VN index reached its peak at March 2007 ( this can be seen in Figure 1). This due to global financial crisis which started from US subprime crisis 2007-2008 pushing Down Jones and SP500 index fell at very high speed. At present time stocks have been thought that being traded with real price, however, with the lack of information and transparency, the only way for many individual investors is herding, especially herding to foreign investors. Although Vietnamese financial system is in reform progress which contains enhancing transparency, this still has faced many difficulties; therefore, herding could still happen in the future. CHAPTER IV: CONCLUSION AND RECOMMENDATIONS Some conclusions From above analysis about risk management system and potential risks in Vietnamese financial market, I would like to conclude the main points as follow: Firstly, risk management system in Vietnam banks is still in initial stage with many drawbacks, especially bad-debt and liquidity problems, transparency or the lack of international auditing. Government still intervenes too deep into banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation to protect state-owned commercial banks and this creates dependent psychology in state-owned banks system. Regulations about risk management system in Vietnam banks are still based on Basel I, however, this country is in reform process toward the light of Basel II, in which VaR model is core tool in controlling market risk. Vietnam are facing many potential risks in which liquidity risk (credit risk) and inflation risk (market risk) are big dangers to the financial system thus finding solutions for these risks would become essential once this country steps completely to the world playground. Therefore, using VaR model to estimate price of market risk would be inevitable although herding could be its possible outcome. Secondly, herding has happened in Vietnam stock market as a common phenomenon in 2000-2007 period, and whenever the lack of transparency and the inaccuracy of information in Vietnam financial market exist, herding still to happen and can could other stock bubbles which has burst in 2008. After bubble burst in stock market, investors are more careful in making investment decisions; however, the transparency has not been improved enough and the evidence for which is that Vietnamà ¢Ã¢â€š ¬Ã¢â€ž ¢s Issuers Default Rating has been downgraded by Fitch to à ¢Ã¢â€š ¬Ã…“B+à ¢Ã¢â€š ¬? due to high NPLs and NPA which are considered as state secret. In addition, Vietnam stock market is still a start-up market, very few investors have ability to analyze market and make decisions strategically; therefore, herding would not disappear from the market just after one bubble burst. Thirdly, according to V. Kallinterakis (2007), thin trading in Vietnamese stock market could encourage herding phenomenon; thus correction for thin trading can reduce herding in Vietnames stock market. Fourthly, Vietnamese financial market is in reform toward WTO entry requirement; thus in the future, transparency must be enhanced, VaR could be used to measure market risk from which avoiding loss if crisis occurs. However, as Persaud (2000) research, the application of VaR and more transparency in banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation could worsen the problem in case of crisis. If banks use the same VaR model, it could create contagion phenomenon; and Vietnamese banks are in a very early stage in using such a VaR model, with limitation in skill of staff to apply VaR, thus banks using similar models is a reasonable possibility. Moreover, Vietnam Central Banks, as requirement of WTO, would must not intervene too deeply into banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation as well as financial market; therefore, in the future, this country would have to face crisis more frequently with more serious consequences: Vietnamese financial market would not separate from global financial system, and if herding happens in time of crisis, the downturn could contagious widely and worsen the problem. Fifthly, beside market risks, Vietnamese banks also have to cope with credit risks and credit score model is using in some commercial banks of Vietnam although it just stops at a qualitative model in which loans decisions are made mainly based on experience of credit staff. The suggestion of Dinh and Kleimeier (2006) about the model in which banks could estimate probability of default of each category of loan applicants might be a good suggestion for Vietnamese banks in controlling credit risk. This could help banks reduce probability of default of borrowers and increase liquidity, especially in crisis situation. Recommendations From the conclusion above, I would like to suggest some recommendations for improving risk management system in Vietnamese banks as well as controlling herding behavior in Vietnamese financial market and banking system: Firstly, applying solution of Persaud (2000) that is using VaR model as a risk measure and enhancing transparency because they are good for banks in the long-term. In Vietnam the application of historical simulation VaR model could help banks avoid their DEAR limit being hit at the same time because each bank has a different portfolio and even in case they unintentionally invest in the same portfolio, banks have prepared for the loss thus avoiding probability of default. Transparency should be enhanced, especially in stock market, but it should stop at publishing information weekly only. Secondly, applying credit score model of Dinh and Kleimeier (2006) to decrease credit risk and increase liquidity. Thirdly, thin trading in Vietnamese stock market should be corrected, i.e orders should be implemented continuously in everyday to avoid excess trading in the next à ¢Ã¢â€š ¬Ã…“activeà ¢Ã¢â€š ¬? day. It could decrease herding in stock market. CHAPTER V: DRAWBACK OF THE PAPER Drawback of this paper is I could not find the evidence for herding of institutional investors but find the evidence for herding in all market containing both institutional and individual investors thus just could bring solutions for all market. This due to limitation in collecting data in Vietnamese financial market. In addition, risk management in Vietnam is still initial, therefore, risk management herding and its consequences to this country are not as mature as in developed countries and thinking of solutions for this problem seems too early to the country in which banking system is still in strong protection of Government. However, Vietnam is in reform progress and sooner or later, the country would have to face this problem when it really becomes a player in global playground.

Essay on The Worse Mistake in Human History - 1398 Words

Most people would argue that the transition from hunting and gathering of food to agricultural food production was the best innovation in human history. We are taught to believe that this innovation gave rise to civilization, allowed for more leisure time in which people could then focus on arts and allowed for a higher yielding, more consistent and reliable food source. Despite some of the innovations that sprang from agriculture, upon a closer look, we can see that with the advent of agriculture came class division, gender inequality, less leisure time, overpopulation, diseases, deficient diets and starvation. The transition from hunting and gathering to agricultural food production may have been the worst mistake in human history.†¦show more content†¦Therefore, there can be no kings, no class of social parasites who grow fat on food seized from others.† (1987). He also argues that the food surplus created by early farmers made it possible for humans to establish a non-food-producing sector such as kings, chiefs, bureaucrats and priests. Once food is stockpiled, a social and political elite emerges, taking control of food production and asserting the right to taxation; procuring food for themselves through the work of others allows them to have more leisure time and engage in political or other social activities (1997). Agriculture not only gave rise to a ruling class of kings and scribes based on hereditary rights, but also to an elite class of specialized craftsmen, such as pottery makers or smiths. This divided the society into a ruling class of elites who enjoyed the fruits of others and laborers or commoners who worked in order to support not only themselves but also the elites. Along with the class divisions created by agriculture it is believed then also came gender inequalities. Hunter-gatherer bands tended to be nomadic. 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Human Resource Management Report on No Name Aircraft †Free Samples

Question: Discuss about the Human Resource Management Report on No Name Aircraft. Answer: Introduction This is a report on the state of the human resource at the organization "no Name aircraft". The company is facing some hard times due to the loss of their profit margins. This has been attributed to quite a number of things. The company which is operation in Four countries (namely, Australia (main), China Singapore and Vietnam) builds and sells aircraft to many countries worldwide. It is estimated that they see their aircraft to about fifty countries worldwide. The operates in a way that the parts of the planes are produced in china and in Japan whereas most of the designing is done in Singapore. The planes can then be assembled in either Singapore or Australia. Over the years the company has experienced some shortcomings and it is facing a possible takeover in the near future. And therefore there is sufficient need to look for ways of maximizing on the shareholders' return on investment. This is through obtaining a high share price. A human resource professional generally develops and assists in the development of policies, and assists in their implementation. These policies are geared towards ensuring that human resources are used in an efficient and effective manner, ensuring the organization and employees all get value from their investment and efforts. I have written this report in an attempt to try first and identify all the issues that the company is facing. This includes the issues in the management of operations across the different countries that the company operates in. This will have to include the incorporation of both customer and staffing policies. This report will also address the issue that the company is facing in the management of its structures in regards to the international standards. This includes performance management, training, and development issues that the staff members face in each country. The report will finally conclude with a conclusion and some recommendations of exactly how the company can benefit from this report by incorporating a new plan. The Organization. "No name "Aircraft is a company that is known worldwide for the production of Aircraft and aircraft parts. The company operates in four countries but its products are sold to more than forty countries all over the world. The main branch of the company is in Australia, but there are branches in China, Singapore and in Vietnam. This shows how the organization can be diverse. This is because of the many countries that they are operating in. with all these branches it is noted that there are different types of employees in the whole organization as a whole, therefore diversity is deemed to be evident in its operations. Human Resource issues faced by the organization. Due to the diverse nature of the human resource, this large organization is bound to face very many human resource organizational issues (Chen, 2009). This issues might be the ones that are causing many problems to the whole company, causing the expected imminent takeover, Some of this issues have arisen from: culture Diversity Training and development of staff International performance management. The organization's culture Culture in business is defined as the various values and beliefs that are able to determine how a company's employees and the management of the business interact and how they handle business transactions both inside the business and outside the company (Noe, 2006). In this case, we are seeing a company with quite numerous problems in the communication within its own structures. The company has seen the rise of a very negative structure and way of operations. The staff workers have been noted to have some form of don't care attitude whereby they only aim at completing their works and not making sure that their work is up to the right standards. I have noted that this lack of connection between the employees also translates towards their relationships with other branches in the other countries. This is then translated to the way the production occurs. This is because the people who make the parts in one section are not in connection to the others who make the complimentary parts who are in another section. This was further enhanced by the revelation that the company workers are divided into groups. These groups are responsible for the production of different parts of the plane. And with the poor form of communication in the company creates some form of quality compromise. This has led to the numerous complaints by clients on the quality of their products. Diversity Diversity refers to the different natures of people in an organization who work together. There are various forms of diversity. This includes race, gender, age, personality, education and ethnic groups (Collins,2003). In our company, the fact that it operates in four different countries portrays an image of its diverse nature. This is however not the case on the ground. Kumra, Manfredi Vickers, 2011 explains Diversity in an organization is where people from different cultures and age are employed to work as a team in the same place. This management style is essential since it brings a lot of advantages with it. It is important to note that employees from different generations will think differently and have different suggestions and ideas. Therefore, managers and supervisors should find ways of bringing these individuals together for the proper running of the organization We have identified that in the main branch there is an issue regarding how employees of the different generations. This is seen as the senior staff members are not in good relations with the junior staff members. This has been noted to hinder the development of the organization as a whole since there is no immediate connection between the staffs. Apart from that, I noted that the organization in China does not employ persons with disabilities. This is against the laws and it gives out quite a bad image for the organization as a whole. This, therefore, shows that the company lacks a clear set of rules that govern the relationships of workers in the company as a whole. Training and development of staff Due to the vast nature of the organization, there are numerous employees who were noted to be moving from one country to another so as to work at different levels. The fact that the organization is the same does not mean that the workers in all the countries will be performing their duties in the same level (Chen, 2009). It was noted that when a staff member gets a transfer to another country, they were not provided with sufficient training. Apart from that, there are no adequate methods of determining whether the training that has been offered to an employee is adequate for the work that they are supposed to do. Apart from that, I noted that there was no form of systematic planning and management programs for employees. This is attributed to the fact that the employees are not aware of career prospects. This was because the company has been noted not to implement their development plans. Performance management. In any given organization it is always vital to conduct some forms of performance reviews (Chen, 2009). In this company, it was noted that they only conduct this performance reviews in their main branch i.e. Australia. The other branches of the company do not conduct performance reviews. This is worrying since most of the work is done in the subsidiary branches. Therefore performance reviews in an attempt to know the quality of otheir products could be carried out across the whole organization. Possible solutions to the various Human Resource issues: Culture In order to create a good and successful business, there should be a formidable culture in the organization. This culture should include the values which are upheld by the company itself. The culture should also include the standards and beliefs that the organization is supposed to attain. In short, the culture should be in line with the goals of the organization. Since the culture of an organization is portrayed both by the relations of employees inside and how the general public views the company, it is mandatory that the culture is instilled in all the branches of the company. This is because as long as it is the same company, the perception will be taken as the general culture of the whole company. In this company, there should be structures put in place to monitor and encourage the employees to strive for success. This can be brought through the use of reward systems whereby employees who exceed their expectations are rewarded. This will encourage them to give their all in the work that they are doing. With the implementation of this, we will see quality products being produced through the organization. Apart from that, the various teams that work under production should be linked in a way that they coordinate instead of working separately. This will prevent the different teams from getting into each other's way. Diversity In order for the organization to manage diversity, it should be able to create forums in which the young and the senior staff members can work together. This is because what one person knows can be used to complement the other person. The senior members have the experience of how most of the things are supposed to operate whereas the young staff members are more skilled in terms of the current affairs such as the use of technology. In the attempt to improve the organization's management, diversity must be upheld. This will ensure there is efficient production as quality products will be produced. This will be because of the merge of the abilities and skills of the different sets of people. The organization should also consider the disabled people when they are looking for employees, provided the people are qualified and skilled in the post that is vacant. This is because regardless of their disabilities some of those disabled people are even more skilled and may perform much better for the organization in general. Diversity can be upheld in the organization through the different work groups incorporating both the young and old, males and females. This will create an environment of unity whereby all the different people can work together for the success of the organization on general. Organizations that benefit from employees feedback are richer in a number of ways. They have people on the ground giving them quality feedback, which is invaluable for business. Furthermore, this opinion is from experts in the business, who are loyal to the organization, and are therefore likely to give honest opinions. It is therefore in the organizations human resource department to encourage not just advice and such opinions, but any concerns they may have regarding ethical conduct on the part of any of the stakeholders in the institution. To encourage this feedback and communication from employees, it should be safe to do so. This means that employees who air their views should be able to do so under the full protection of the organization. They should be able to air any grievances without judgment or retribution for threatening the prospects of others. For this to succeed, the organization should encourage and even reward honest opinion from employees. It is important for employees to know that not only will they be safe to air their views up the chain of command, but it is the right thing to do, and that it may even yield rewards (Economy, n.d.). In addition to opening up communication, and making it safe, employees should find that their views and comments, when wrong, are criticized in a constructive way, and not with an aim of putting them down. Not all ideas put forward are right for the company. Not all issues, ethical, cultural or otherwise, are as they seem, sometimes suffering from bias. Despite these weaknesses, the comments should not be discouraged, since this may also take away great ideas too. Training and development This is one of the most vital functions of the human resource. In this company, it has been noted that there is no adequate training of employees especially when they are moved from one region to another. This has caused employees to take a lot of time in transmission (Kochan,2003). A solution to this can be laying down proper foundations and orientation programs for either new or employees who have been moved from one branch of the company to another. The company should have their human resource team work hand in hand with all new employees in their departments. This would enhance their transition period and therefore help them settle down easily in their new workplaces. This would thereafter increase the company's productivity. This would create some form of systematic workflow for employees. Performance management The company should implement the performance appraisal methods. This is because the performance of the business is very much reliant on the performance of the different individuals in their workforce. This would help the organization attain all its goals. The company should employ the various performance appraisals. This would work along with the performance reviews that should be implanted in all the branches of the organization. This would create a well-functioning team of employees who are mainly work oriented. Conclusion In conclusion, in order for the company to avoid the takeover and retain its customers and its reputation, it should focus on the employees, their relations and how motivated they can make them. This would lead to higher productivity and hence bring more customers for the company. The success of an organization depends on how well it organizes its operations. The successful integration of the organization`s process with technology and the right human resource strategies will enable the company to operate at an efficient level. The human resource manager should ensure that the each department`s goals are aligned with the company`s overall objectives. Moreover, the manager should ensure that he adapts a viable philosophy that will inspire the company`s progress and ensure that the company is on the right track in the quest for operational efficiency. This philosophy will inspire various principles like adaption of total quality management techniques which have organizations become a ne cessity in modern. References Noe, R. A. (2006). Human resource management: Gaining a competitive advantage. Collins, C. J., Smith, K. G. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms.Academy of management journal,49(3), 544-560. Collins, C. J., Clark, K. D. (2003). Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage.Academy of management Journal,46(6), 740-751. Chen, C. J., Huang, J. W. (2009). Strategic human resource practices and innovation performanceThe mediating role of knowledge management capacity.Journal of business research,62(1), 104-114. Economy, P. (n.d.). 5 ways to get your employees to speak-up. Retrieved 23 05, 2017, from https://www.inc.com: https://www.inc.com/peter-economy/5-ways-to-get-your-employees-to-speak-up.html Kumra, S., Manfredi, S., Vickers, L. (2011). Managing equality and diversity: Theory and practice. Oxford: Oxford University. Schuler, R. S., Jackson, S. E. (1987). Linking competitive strategies with human resource management practices.The Academy of Management Executive (1987-1989), 207-219. Delaney, J. T., Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance.Academy of Management journal,39(4), 949-969. Rousseau, D. M., Wade?Benzoni, K. A. (1994). Linking strategy and human resource practices: How employee and customer contracts are created.Human resource management,33(3), 463-489. Sparrow, P., Schuler, R. S., Jackson, S. E. (1994). Convergence or divergence: human resource practices and policies for competitive advantage worldwide.International Journal of Human Resource Management,5(2), 267-299. Kochan, (2003). The effects of diversity on business performance: Report of the diversity research network.Human resource management,42(1), 3-21. Cornelius, N., Gooch, L., Todd, S. (2000). Managers leading diversity for business excellence.Journal of General Management,25(3), 67-78. Dos Reis, C. R. D. A., Castillo, M. A. S., Dobn, S. R. (2007). Diversity and business performance: 50 years of research.Service Business,1(4), 257-274. Mayer, R. C., Davis, J. H. (1999). The effect of the performance appraisal system on trust for management: A field quasi-experiment.Journal of applied psychology,84(1), 123.

U.s. Health Care Policy Example For Students

U.s. Health Care Policy The United States is the most powerful countries in the world and plays a central leadership role in the world. The U.S. health care policy is amongst the finest and many industrialized nations are laboring toughly to emulate a health care system that mimic the scheme executed by the United States. The United States of America is well known with its high-priced health care system in the globe because they expends farther than its counterparts related to the Gross Domestic product (GDP) per capita approximately â€Å"18%† (Kinckman Kovner, 2015). Government Role in Health Care The government plays an integral part in refining population well-being worth and protection in the United States such as reducing medical errors and enhancing patient safety. The government is in forefront for the procurement and delivery of health care, overseers for health care marketplaces, and safeguard admittance to superiority up-keep for the susceptible population who cannot afford health care. The government’s obligation to safeguard and innovate the concern of society comprises the distribution of quality health care. In concern that marketplace unaided cannot certify totally Americans admittance to superiority health care, the government must uphold the curiosity of its inhabitants by augmenting the marketplaces wherever there are holes and modify the marketplaces wherever there is an inadequacy and injustice. The government backs innovative health technology procurement for practice purposes, and assembles investor throughout the health care system regarding evalua tion related to assessment of health care superiority. The Affordable Care Act is a step in the right direction to lessen the integer of families without insurance, however; the stakeholders, namely â€Å"drug companies, employers, insurers, hospitals and doctors† graciously defy to split cost related vulnerable populace community (Knickman Kovner, 2015). HealthCare: Right vs Privilege We will write a custom essay on U.s. Health Care Policy specifically for you for only $16.38 $13.9/page Order now To address the subject of whether health care in the United States should be a right or privilege, I positively say health care should be a right. I understand that many groups will state that the uninsured population just needs to get a job, or that Medicare and Medicaid pay for people who cannot afford health care. These viewpoints are indeed correct, however, the above are all misconstructions regarding United States health care access and health insurance. Outline1 The Patient Protection and Affordable Care Act of 20102 Social and Economic Issues Affecting Health Care3 Article Reviewed on Socioeconomic Issue on Health Care Delivery The Patient Protection and Affordable Care Act of 2010 The enactment of the Affordable Care Act main reason was to restructure American health care. These restricting incorporates reasonable pricing, superiority and accessibility of health insurance while holding insurance companies responsible (Knickman Kovner, 2015). It is definitely certain some population have gained immensely from the restructuring. Some of the laws prevent coverage denial due to pre-existing conditions and charge difference between male and female etc. The fact remains that several people in community are still uninsured because of affordability. Social and Economic Issues Affecting Health Care Socially and economically a person’s employment status, education, wealth, and race are well-grounded elements that influence the ability to procure health insurance. Injustice in configuration of social wealth differ greatly which can relate to human continue existence and demise. According to Knickman Kovner, (2015). Nearly about â€Å"46 million† people are without insurance coverage, which greatly distress both small and large organization alike, all government entities, and the total health budget of American expenditure. America is a well- known superpower and wealthiest nation in the world that spend significantly more in its GDP in relation to health care and still our health care rank way behind for health system performance .ufdd32efbd42129cdde9c5215227713e0 , .ufdd32efbd42129cdde9c5215227713e0 .postImageUrl , .ufdd32efbd42129cdde9c5215227713e0 .centered-text-area { min-height: 80px; position: relative; } .ufdd32efbd42129cdde9c5215227713e0 , .ufdd32efbd42129cdde9c5215227713e0:hover , .ufdd32efbd42129cdde9c5215227713e0:visited , .ufdd32efbd42129cdde9c5215227713e0:active { border:0!important; } .ufdd32efbd42129cdde9c5215227713e0 .clearfix:after { content: ""; display: table; clear: both; } .ufdd32efbd42129cdde9c5215227713e0 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ufdd32efbd42129cdde9c5215227713e0:active , .ufdd32efbd42129cdde9c5215227713e0:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ufdd32efbd42129cdde9c5215227713e0 .centered-text-area { width: 100%; position: relative ; } .ufdd32efbd42129cdde9c5215227713e0 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ufdd32efbd42129cdde9c5215227713e0 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ufdd32efbd42129cdde9c5215227713e0 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ufdd32efbd42129cdde9c5215227713e0:hover .ctaButton { background-color: #34495E!important; } .ufdd32efbd42129cdde9c5215227713e0 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ufdd32efbd42129cdde9c5215227713e0 .ufdd32efbd42129cdde9c5215227713e0-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ufdd32efbd42129cdde9c5215227713e0:after { content: ""; display: block; clear: both; } READ: Health Care Policy And PoliticsComparable to other countries of same caliber. (Knickman Kovner, 2015). According to Knickman Kovner, (2015) over 80% of individuals deprived of health care do work or resided in a family unit where at least one person works a maximum or job-sharing capacity and still cannot afford a premium coverage for health insurance. These groups of community who works real hard to put food on the table for their family on a minimum wages being deprived of health care coverage because they earn a little over the structured index number indicates that the United States Affordable Care Act restructuring still has a hole in the health care system. Several work industries like restaurants and hospitality with excessive servant throughput have no health care coverage for the workforce; as a result, many are included in the uninsured community. The health care policy enacted by the government to share service coverage between federal, state, and local government for the vulnerable care inclusion has a hole in it. The United States welfare system, namely Medicaid has a st ringent monetarist parameter and protects those disable population and vulnerable poor communities while the Medicare predominantly protects seniors of 65 years and above including the forever incapacitate. Community of low socioeconomic status encounter varied health issues because of their class. There is inability to utilize health care because of affordability, which results in several disabling health and increase mortality. Article Reviewed on Socioeconomic Issue on Health Care Delivery The Journal of American Medical Association article reviewed is call: Addressing Social Issues Affecting Health to Improve US Health Outcomes. It discussed different avenues to resolve social and economic issues related health care. The focus should be more on educating the vulnerable community in from young age, so they can be live a healthy productive life and be part of the solution in decreasing the country GDP. I believe that American health care system should be a basic human right; this is about allowing equivalent prospect for all to employ whatever knack they nurse and to breathe as complete participating appendage of humanity. To have health care as a right, we keep people’s health close to normal functioning that enables them the power to contribute in the civil societal, fiscal aspect of their humanity. To have health care as a right depends on the inclination of persuasive conglomerates amongst all government entities including the secluded private segments for community at large health.

Free Essays on Child Development

Child Development As children grow older they go through a process labeled as child development. Child development is defined as the discipline devoted to the understanding of all aspects of human development from birth to adolescence. Child development is more or less a new field of study and that is because of the viewpoints of children that were predominant before. For instance, historical perspectives influenced the view of children as miniature adults and burdens. The perspective of them as miniature adults were present more so in the middle ages when children were treated like adults, such as in their style of dress, their responsibility of work and sometimes even marriage and monarchy. The other perspective was of children being burdens instead of blessings. They were considered burdens because before modern day contraceptives, many children were unplanned for and unwanted, they only represented another mouth to feed and back to clothe. As times progressed though the view began to change thanks to psychologists and new laws that protected the welfare of children. Also, an influence on the field of child development was philosophies of the moral nature and development of children. Three major philosophies were original sin, the view of children being born full of sin and needing guidance to salvation from their parents, tabula rasa developed by John Locke, which viewed children as blank slates needing to be molded by their parents but treated with kindness and love, and lastly the philosophy of noble savages stated by Jean Jacques Rousseau said that children were gifted with the concept of wrong and right and didn’t need the interference of parents. Rousseau was one of the first to place emphasis on the idea of maturation, which is the unfolding of the genetically determined patterns of growth and development. Child development involves different areas of development that are genetically determined, such as physical, cognitiv... Free Essays on Child Development Free Essays on Child Development Child Development As children grow older they go through a process labeled as child development. Child development is defined as the discipline devoted to the understanding of all aspects of human development from birth to adolescence. Child development is more or less a new field of study and that is because of the viewpoints of children that were predominant before. For instance, historical perspectives influenced the view of children as miniature adults and burdens. The perspective of them as miniature adults were present more so in the middle ages when children were treated like adults, such as in their style of dress, their responsibility of work and sometimes even marriage and monarchy. The other perspective was of children being burdens instead of blessings. They were considered burdens because before modern day contraceptives, many children were unplanned for and unwanted, they only represented another mouth to feed and back to clothe. As times progressed though the view began to change thanks to psychologists and new laws that protected the welfare of children. Also, an influence on the field of child development was philosophies of the moral nature and development of children. Three major philosophies were original sin, the view of children being born full of sin and needing guidance to salvation from their parents, tabula rasa developed by John Locke, which viewed children as blank slates needing to be molded by their parents but treated with kindness and love, and lastly the philosophy of noble savages stated by Jean Jacques Rousseau said that children were gifted with the concept of wrong and right and didn’t need the interference of parents. Rousseau was one of the first to place emphasis on the idea of maturation, which is the unfolding of the genetically determined patterns of growth and development. Child development involves different areas of development that are genetically determined, such as physical, cognitiv... Free Essays on Child Development Child development is the most vital stage of development. The development of the brain and nervous system is very critical during the first year of life; it grows more rapidly than any part of the body. Physical development isn’t the only significant stage of development at this age; social development is also very important. Early attachment is the foundation for all other relationship throughout a person’s life. This was the reason a high quality day care like, Mommy Daycare, was created. Mommy Daycare is the place where your child would love to come to and you would love to leave them in. We have a low staff so that your young one is not overwhelmed with different faces and will feel comfortable with our caregivers. We assign one teacher for every three infants and one teacher for every four toddlers. Our system is set up this way so that each child would acquire the attention that is needed for social development. Our main goal is to assure that children feel comfortable and can emotionally bond with their caregivers. Our caregivers are warm, emotionally expressive and responsive to children. They plan age-appropriate activities so your children may mature in various ways. Early attachment is very important to us at Mommy Daycare. If a child does not have attachment at an early age, future relationships will never occur or will be very difficult to attain. It is also proven by (Cummings Kagan et al., 1992) that â€Å"securely attached children mature into popular, independent, socially skilled, and self-assured children. Insecurely attached children become children that lack curiosity, perform poorly in school, and are emotionally withdrawn.† Another important fact you should know is that finding studies suggest that placing children in day care after 2-1/2 years of age may be emotionally disruptive and require more adjustment only when their attachment behaviors are well established. We w... Free Essays on Child Development Its been stated, the concept of personality is a broad one. The personality theorist has an interest in what individual human beings think, feel and do including how the social situation affects and is affected by the individual. Personality theory is concerned not only with differences between individuals, but also with the basic processes of adaptation through which people interact with the conditions of their lives? (Ehrenreich 33). The development of personality has long been an area of extreme interest to psychologists and psychoanalysts alike. Because of this, many different theories of personality have developed over the years. From Sigmund Freud to B.F. Skinner, everyone seems to have not only an opinion of what personality is and how it develops but also an idea as to what is the best way to measure and report their findings. In order to test their theories, it was necessary to formulate methods of research that were effective, ethical and would provide a solid foundation for future personality research. Personality Psychology is the study of the whole person. The practice of psychology, which stems from a portion of philosophy that addresses the issue of behaviorism, evolved into a significant discipline of its own. Psychology eventually came to represent the very essence of mental performance and therefore, personality theory. Throughout history, there have been a number of modifications that have altered the direction of psychology as a discipline. However, this has not deterred the ongoing realization that there may be more to a particular personality theory than what has been passed down by the masters? In studying personality psychology there are four major themes used. Those are intrapsychic mysteries, interactive episodes, interpretive structures, and interpersonal stories. Intrapsychic mysteries are based upon our unconscious. It focuses on the forces in our daily lives that we are unaware of. Inter... Free Essays on Child Development Attachment in childhood is related to functioning in adulthood. Due to the dependency on their parents, children are raised to live by their parents, cultural standards of living. Following rules, helping care for elders and younger children, and most importantly staying with parents throughout a lifetime in order to help with agricultural businesses are common among eastern and Spanish countries. Children are raised with a fear of being disowned or denied by the family if these rules are not followed (Usita 2001). It is understood that if the children are disowned, they are left with absolutely nothing. Family, money and a â€Å"name† is all stripped due to the lack of respect placed on one’s family. Because of the strict living standards, these children who have now grown into adulthood are left to believe that they are in need of their parent’s acceptance, and therefore begin to raise their own children in the same manner (Tsao 2000). Their decisions are now t hat of a communal affair. They do not move away, In the story of the Japanese immigrant daughter who wanted to move away from her mother to attend college, her decision to move away was seen of abandonment and disrespect (Tsao 2000). It was explained that her mother had taken care of her own mother, which was something that was practiced culturally, and was a sign of respect and gratitude for the care and food that was provided when she was a child. Her care for her mother was not that of a hassle, but one that was due to every young person when their parents grew old. When Sou-Young decided to move away from her home and attend a school in another part of California, her mother did not see it as an accomplishment, but a sign of ignorance and disrespect (Tsao 2000). The idea of children forming an attachment upon their parents seems to be implemented in the good spirit of parents becoming dependent upon their children as they age, forming interdependence. I believe that d...

Chinese Interpretation of Various Aspects of Life through the Film titled Red Cliff

Chinese Interpretation of Various Aspects of Life through the Film titled Red Cliff The ancient Chinese film titled Red Cliff showcases Chinese epic war. The film’s concepts were borrowed from the battle of red cliffs and occurrences, which took place during the final stages of Han Dynasty. In addition, the film was produced just before the emancipation of the famous Chinese three kingdoms.Advertising We will write a custom essay sample on Chinese Interpretation of Various Aspects of Life through the Film titled Red Cliff specifically for you for only $16.05 $11/page Learn More The film symbolizes the Chinese interpretation of various aspects of life such as the relationship between man and nature, and the relationship between an individual and the state. This paper endeavors to analyze how the film Red Cliff displays the Chinese interpretation of various aspects of life, most importantly, the relationship between man and nature, and the relationship between an individual and the state. An Overview of Battle of Red Cliffs The battle of red cliffs marked the end of the Han Dynasty. A great warrior known as Cao Cao led his group from the South and fought with his rivals who were led by Liu Cong. As a result, Liu Cong gave up Jing Province (McCurry 5). This was a significant achievement for Cao Cao. After Cao Cao had captured Jing Province, other rivals united to oppose him. Lu Su and Lie Bei combined and formed a strong force that fought Cao Cao’s men at Red Cliffs (Elley 6). The battle between Cao Cao’s warlords and the combined force consisting of Su and Bei’s supporters is known as the battle of red cliffs. The combined force rattled Cao Cao’s men forcing them to retreat. Consequently, Cao Cao conceded defeat. As a result, Cao Cao flew to the North. This boosted the strength of Su and Bei’s territories. Cao Cao decided to consolidate his power in the North. Later, another ruler known as Sun fought Cao Cao and captured Jing Province. After the death of Cao Cao, Lu declared him self as the king of Han Dynasty. However, the remnants of the Han Dynasty engaged in various fights until the dynasty collapsed completely. The collapse of the Dynasty paved way for the emergence of the three kingdoms (McCurry 5). An Overview of the Three Kingdoms The three Kingdoms is a Chinese historical era, which was mainly characterized by disunity. It occurred immediately after the collapse of Han Dynasty. The Han Dynasty is considered as a significant historical event that has shaped Chinese political and cultural aspects. During the Han Dynasty era, China was divided into various regions, which served as administrative posts (Tang 7). In addition, the country had a number of autonomous kingdoms. During the Han Dynasty, China realized economic prosperity. The country was divided into three regional markets. They included the Northwest, the North and the Sichuan. In addition, the routes connecting the three markets were manmade, and they were controlled by the government. The government had immense power and it controlled many affairs. When the Han Dynasty collapsed, the three kingdoms emerged.Advertising Looking for essay on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More This period is regarded as the bloodiest in the Country’s history. It was marred with violence as each kingdom fought for supremacy (Tang 7). However, during the three kingdoms period, the county realized numerous technological advancements (Elley 8). The three kingdoms finally collapsed following disagreements between leaders of the rival kingdoms. Many individuals who lived during this period have become legends. The film titled Red Cliff mirrors the events of the battle of red cliff. A critical Analysis The first Chinese model explaining the relationship between an individual and the state was documented by Zhang Taiyan (UCP, 2004). Zhang engineered the nationalism concept. Individuals are supposed to put thei r nation first (UCP 3). This concept is reflected in the film Red Cliff. In the Film, which is a reflection of the battle of red cliffs, which occurred many centuries ago, each leader puts the country’s interest first. In the film, there are several rival territories each competing for sovereignty as was the case in the battle of red cliffs. For example, the character who mimics Cao Coa aims at solidifying his region’s economic and military prowess. Thus, he fights his rival, Liu Cong in order to capture Jing province. Jing province was an economic and agricultural centre and any leader wanted to control this province. In the film, Red Cliff, the character who is portrayed as Coa Coa shows nationalism by fighting in order to secure a key economic territory for his kingdom. Likewise, the other leaders like Lu Su and Lie Bei fought for the benefit of their territories. At that time, each territory was seen as an independent state, so each leader strived to protect his te rritory. The approach used by Lu Su and Lie Bei in which they formed an allied force to oppose Coa Coa’s rivalry, is also highlighted in the film on Red Cliff. This is another sign of the Chinese interpretation of nationalism. The two leaders, Lu Su and Lie Bei, represent true nationalism by joining forces to conquer the enemy. According to Zhan’s interpretation of nationalism, individuals are supposed to cooperate during hard times (UCP 3). In addition, the Chinese interpretation with regard to the relationship between man and nature is best explained ecologically. On top of that, the relationship between man and nature is also linked to the Chinese concept of Confucianism. Thus, the respect for humanity is paramount. Since man relies on nature, Chinese believed that nature has to be guarded against harm. This concept is also portrayed in the film Red Cliff. The rival parties did not interfere with nature. Chinese believe that nature and man are friends and their frie ndship should not be compromised. Chinese believed that there â€Å"is a need to awe the mandate of heaven and the benevolent regarding anything under heaven and on earth as an integral unity† (Meng 1). Chinese tradition with regard to nature has received global fame. The Chinese culture sees man as an integral part of nature.Advertising We will write a custom essay sample on Chinese Interpretation of Various Aspects of Life through the Film titled Red Cliff specifically for you for only $16.05 $11/page Learn More According to the Chinese tradition, taking life as the essence of benevolence enlivens not only the human consciousness of life, but also an ecology oriented consciousness† (Meng 1). These aspects are portrayed in the film of Red Cliffs. Red Cliff showcases Chinese epic war between rival territories. However, even in the midst of a tough battle, nature is guarded. This is a clear interpretation of the Chinese view with regard to the r elationship between man and nature. Conclusion This paper has noted that the concepts of the film Red Cliff were borrowed from battle of red cliffs and occurrences, which took place during the final stages of Han Dynasty. The film symbolizes the Chinese interpretation of various aspects of life such as the relationship between man and nature, and the relationship between an individual and the state. The battle of the Red Cliff marked the end of the Han Dynasty. A great warrior known as Cao Cao led his group from the south and fought with his rivals who were led by Liu Cong. As a result, Liu Cong gave up Jing Province. This led to the emancipation of the three kingdoms. The three Kingdoms is a Chinese historical era, which was mainly characterized by disunity. It occurred immediately after the collapse of Han Dynasty. The Han Dynasty is considered as a significant historical event that has shaped Chinese political and cultural aspects. The first Chinese model explaining the relations hip between an individual and the state was documented by Zhang Taiyan (UCP, 2004). Zhang engineered the nationalism concept. Individuals are supposed to put their nation first (UCP 5). In the film Red Cliff, the main character shows nationalism by fighting to secure a key economic territory for his kingdom. Likewise, the other characters mimic leaders like Lu Su and Lie Bei also fight for their regions’ wellbeing. At that time, each territory was seen as an independent state, so each leader strived to protect his territory. The approach used by Lu SU and Lie Bei in which they formed an allied force to oppose Coa Coa’s rivalry is also highlighted in the film Red Cliff. This is another sign of the Chinese interpretation of nationalism. In addition, the Chinese interpretation with regard to the relationship between man and nature is best explained ecologically. On top of that, the relationship between man and nature is also linked to the Chinese concept of Confucianism. Thus, the respect for humanity is paramount. Since man relies on nature, Chinese believe that nature has to be guarded from harm. These aspects are portrayed in the film Red Cliffs. Red Cliff showcases Chinese epic war between rival territories. However, even in the midst of a tough battle, nature is guarded. This is a clear interpretation of the Chinese view with regard to the relationship between man and nature; man and nature are friends.Advertising Looking for essay on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More Elley, Derek. The Red Cliff Review. Moviereviews 29 June 2008. Web. McCurry, Justin. â€Å"Chinese epic loses the plot as actors quit  £40m project†. The Guardian 2 April 2007: 1-10. Web. Meng, Peiyuan. Relationship Between Man and Nature in Traditional Human Rights Concepts of China and West. Chinesestudies 4 May 2008. Web. Tang, Ayu. Choice of Kaneshiro as Zhuge Liang criticized. Asiansite 12 March 2007. Web. University of Califonia Press (UCP). The Relationship between the Individual and the People. Chinesestudies 7 May 2004. Web.

The Influence that Salvador Dali Had on the Surrealist Movement Essay

The Influence that Salvador Dali Had on the Surrealist Movement - Essay Example The essay "The Influence that Salvador Dali Had on the Surrealist Movement" will consider the art movement called surrealism and comment on the influence of Salvador Dali, one of its greatest practitioners at the forefront of this art movement. Salvador Dali (1904-1989) was one of the most popular artists of the surrealist movement. Surrealism can be defined as the stuff of dreams, what is held in the subconscious or unconscious, and it is the expression of these thoughts that were the impetus behind the surrealist movement. It is the complete absence of regulated thought and action, in fact the anti thesis of it. The objective of the surrealist movement was to give flight and power to spontaneity and celebrate the absence of order or contrived circumstances. Negative emotions ran high against the established powers after World War I- in fact surrealism was on the rise even in the waning days of World War II. The portrayal of anti establishment sentiment through art and literature de fined the surrealist movement in many ways. Dali in fact took on the name of his elder brother who had died nine months before he was born. His father was a lawyer, notary and a strict disciplinarian. His mother however encouraged his artistic pursuits. Dali believed he was a reincarnation of his brother after it was suggested by his parents that he had similar features to the deceased sibling. Dali was deeply attached to his mother and was distraught on her death in 1921. After her death, his father married her sister, Dali’s aunt. ... With a sharp sense of fashion, he was regarded as a dandy. However his art stood out as well as he was experimenting with Cubism at the time. However he was thrown out of school before the final exams after uttering the scandalous comment that there was no one competent enough to examine him. Dali moved to France and his early works were heavily inspired by Joan Miro and Pablo Picasso, whom Dali adored. Inspired by the artist Diego Velazquez, Dali began sporting a distinctive moustache that became an iconic trademark for the rest of his life. Dali met his future wife Gala, a Russian immigrant ten years his senior at a fellow artist Paul Eluard’s residence in 1929. They were married in a civil ceremony in 1934 and later celebrated a Catholic wedding in 1958. Dali had up to this point been supported by wealthy art collector Edward James of the UK. Dali’s work was introduced to the USA by the art critic In 1931 Dali created his most well known masterpiece ‘The Persis tence of Memory’ and the rest as they say is history. He became so famous that even the creator of the surrealist movement Andre Breton began to grudge him with the taunting derogatory nickname Avida Dollars meaning ‘eager for dollars’. During World War II, Dali and his wife moved to the USA, staying there for eight years. However beginning in 1949, Dali moved back to Catalonia, Spain. After World War II, Dali’s work included influences from religion, science and even optical illusions. Dali’s health suffered a serious setback in the 1980 when his wife in her senility had been feeding Dali with a dangerous cocktail of drugs that impaired his health and made one hand shake uncontrollably. After Gala herself died in 1982, Dali tried to kill himself through starvation but was