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Regulatory Requirements

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1. Event history of the Sarbanes-Oxley Act of 2002

According to Bumiller, (2002), the Enron saga, which occurred in early 2002, set the stage for several things, which resulted in the SOX legislative process that did little to resolve the uncertainty on the enactment of the legislative reform or what will be the provision of the legislation. The events are categorised into three groups:

A) Early events that resolved little uncertainty about SOX

B) Events that resolved virtually all uncertainty that reform legislation would be enacted but did not resolve uncertainty about the final provisions of the Act

C) Events that resolved uncertainty about the Act’s provisions or were informative about its enforcement

A. Event: Early Period

Harvey Pitt, the S.E.C. Chairman called for the building of a new body which regulates public accounting, and would be superior to the accounting industry

Michael Oxley, the Chair of the House Financial Services Committee, brought a House of Representatives bill H.R.3763,the “Corporate and Auditing Accountability, Responsibility and Transparency Act of 2002” after a few weeks.

President Bush unveiled a plan to improve corporate disclosure , auditor and CEO responsibility for doing financial reports

Christopher Dodd, a Senator brought a senate bill S.2004, which was intended to improve financial reporting through engaging an independent oversight board for auditors, providing more resources for the S.E.C and well enhanced accounting standard setting process.

A suggestion was made by the Financial Services Committee report on H.R. 3763, to improve the reliability and accuracy of financial disclosure made in respect to securities law. The House passed the bill on April 24th by a majority of 334 to 90 votes.

The Senate Judiciary Committee affirmed proposed legislation creating felony charges for securities fraud, mishandling or shredding documents .No action was taken by the Senate in respect of the reform proposal that had been brought before the House and passed

B. Event: Resolving Uncertainty about Passage of Accounting Reform Legislation

Paul Sarbanes ,a Senator and Chair of the Senate Banking Committee, hinted at a consensus proposal for changing accounting practices was in progress

On June 15th, a jury convicted Arthur Andersen of obstructing the S.E.C.’s Enron investigation.34

The jury convicted Arthur Andersen on 15th June for obstructing the S.E.C from

Investigating Enron

A legislation was approved on 18th June through the Senate Banking Committee vote of 17 to 4 votes, thus creating an accounting oversight board which is mandated to discipline wayward auditors

The bill S.2673 by Senator Sarbanes in the senate in June 25th

Massive fraud $ 3.8 billion at WorldCom were disclosed

WorldCom faced a lawsuit filed by S.E.C alleging a fraudulent scheme to overstate earning

A report was issued by Senate Banking Committee on Sarbanes bill on July 3rd, while the S.E.C affirmed a requirement that required all CEOs and CFOs to certify companies financial reports were, the two events occurred concurrently (Kohn, & Cola pinto, 2004).

On July 8th the Senate began debating S.2673 which went on for until 15th July

On July 9th, President Bush spoke on Wall Street in support of securities law reform.

On July 15th, the bill S.2673 was unanimously passed through a vote of 97 to Zero by the Senate.

Concurrently, the “Corporate Fraud Accountability Act of 2002” H.R. 5116, was brought to the floor of the House. The top executives of firms were required to certify the financial statements or face criminal penalties arising from misrepresentation of financial reports

The House, which was, controlled the House on July 16th passed H.R. 5118 on 391 to 28 votes.

The same July 16th President Bush ordered that a final bill be passed before the house break for recess in august.

C. Event: Events Resolving Uncertainty about Specific Provisions and Enforcement of

Accounting Reform Legislation

On July 19th an executive session held between Houses –Senate Conference Committee, constituted to reconcile House and Senate bills.

On July 24th, the Conference Committee issued a report .The Sarbanes –Oxley Act of 2002 as known as Conferences Committee’s bill, which reflected reforms included in the Sarbanes bill went through some changes.

The changes made incorporated tougher punishment to executives and gave S.E.C more control of the new Public Company Accounting Oversight Board.

On July 25th, the Conference Committee’s bill was overwhelmingly passed at the Senate by 423 to 3 votes in the House and 99 to 0 votes in the Senate.

On July 29th ,the S.E.C announced that it would post names of CEOs and CFOs on its website for non-compliance

On July 30th, the president assented to the bill.

On August 14th, was the deadline for compliance by the CEO and CFO of large companies to certify their company’s financial statements with the S.E.C.?

2) Briefly explain the three responsibilities of the SEC and three components of SOX.

(a)Responsibilities of S.E.C

In charge of the inspection of brokers, securities firms and investment advisers

Supervise private regulatory organisation in the accounting, auditing and securities fields.

Liaise with the state, federal and foreign authorities to coordinate the U.S security regulations

(b) Components of SOX

Formalizing and reinforcing subjective checks and balances within companies

Introducing levels of governance and sign-off to guarantee that financial reporting exerts full declaration

Ensure the Corporate governance fully adhered to with full transparency.

3) Do you feel these were adequate solutions to the situations at the time of their implementation?

Yes, the actions were adequate response to the problem at hand at that time.

References

Bumiller, E, (2002). “Bush Signs Bill Aimed at Fraud in Corporations”. The New York Times.

Kohn M., & K. Cola pinto, (2004). Whistleblower Law: A Guide to Legal Protections for Corporate Employees. Praeger Publisher

Most people have come to realize that insurance is a necessary evil, but few have a clue as to how to dance with the devil!

Event Insurance – A Prudent Option or Necessary Evil?

Introduction

Insurance is a subject which can leave you cold – rather like doing the VAT returns with your accountant or discussing a legal dispute with your lawyer, you fear that at the end of the conversation your bank account will be a little lighter, and for what purpose? It’s something you know is necessary, but you don’t really want to buy it unless you have to. Event insurance is one element in the management of risk in events, and a well written and carefully structured insurance can rescue an event, or if the worst happens may even be called upon to refund the whole value of the event. Ironically, the cost of insurance represents a tiny fraction of an event’s turnover. Organisers of corporate events may be pleasantly surprised – the insurance can cost less than the room gifts.Before deciding what cover you need, consider the reasons why it is necessary. Some people buy insurance with a clear reason in mind only to find that a loss is caused by something completely different. So is it a necessary evil? These examples show it is necessary, and the cost isn’t evil, so it’s really a matter of what is your attitude to risk?

The process of insurance has been evolved to safeguard the interests of people from uncertainty by providing certainty of payment at a given contingency. The insurance principle comes to be more and more used and useful in modern affairs. Not only does it serve the ends of individuals, or of special groups of individuals, it tends to pervade and to transform our modern social order, too.

THE ROLE AND IMPORTANCE OF INSURANCE TO THE SOCIETY

1. Insurance Provides Security and Safety:

The insurance provides safety and security against the loss on a particular event. In case of life insurance payment is made when death occurs or the term of insurance is expired. The loss to the family at a premature death and payment in old age are adequately provided by insurance. In other words, security against premature death and old age sufferings are provided by life insurance.

Similarly, the property of insured is secured against loss on a fire in fire insurance. In other insurance, too, this security is provided against the loss at a given contingency. Insurance provides safety and security against the loss of earning at death or in golden age, against the loss at fire, against the loss at damage, destruction or disappearance of property, goods, furniture and machines, etc.

2. Insurance Affords Peace of Mind:

The security wish is the prime motivating factor. This is the wish which tends to stimulate to more work, if this wish is unsatisfied, it will create a tension which manifests itself to the individual in the form of an unpleasant reaction causing reduction in work.

The security banishes fear and uncertainty, fire, windstorm, auto-mobile accident, damage and death are almost beyond the control human agency and in occurrence of any of these events may frustrate or weaken the human mind. By means of insurance, however, much of the uncertainty that centers about the wish for security and its attainment may be eliminated.

3. Insurance Protects Mortgaged Property:

At the death of the owner of the mortgaged property, the property is taken over by the lender of money and the family will be deprived of the uses of the property. On the other hand, the mortgagee wishes to get the property insured because at the damage or destruction of the property he will lose his right to get the loan replayed.

The insurance will provide adequate amount to the dependents at the early death of the property-owner to pay off the unpaid loans. Similarly, the mortgagee gets adequate amount at the destruction of the property.

4. Insurance Eliminates Dependency:

At the death of the husband or father, the destruction of family needs no elaboration. Similarly, at destruction of, property and goods, the family would suffer a lot. It brings reduced standards of living and the suffering may go to any extent of begging from the relatives, neighbors or friends.

The economic independence of the family is reduced or, sometimes, lost totally. What can be more pitiable condition than this that the wife and children are looking others more benevolent than the husband and father, in absence of protection against such dependency? The insurance is here to assist them and provides adequate amount at the time of sufferings.

5. Life Insurance Encourages Saving:

The elements of protection and investment are present only in case of life insurance. In property insurance, only protection element exists. In most of the life policies elements of saving predominates. These policies combine the programs of insurance and savings.

6. Life Insurance Provides Profitable Investment:

Individuals unwilling or unable to handle their own funds have been pleased to find an outlet for their investment in life insurance policies. Endowment policies, multipurpose policies, deferred annuities are certain better form of investment. The elements of investment i.e., regular saving, capital formation, and return of the capital along with certain additional return are perfectly observed, in life insurance.

Importance of Insurance to the Business

1. Uncertainty of Business Losses is Reduced:

In world of business, commerce and industry a huge number of properties are employed. With a slight slackness or negligence, the property may be turned into ashes. The accident may be fatal not only to the individual or property but to the third party also. New construction and new establishment are possible only with the help of insurance.

In absence of it, uncertainty will be to the maximum level and nobody would like to invest a huge amount in the business or industry. A person may not be sure of his life and health and cannot continue the business up to longer period to support his dependents. By purchasing policy, he can be sure of his earning because the insurer will pay a fed amount at the time of death.

Again, the owner of a business might foresee contingencies that would bring great loss. To meet such situations they might decide to set aside annually a reserve, but it could not be accumulated due to death. However, by making an annual payment, to secure immediately, insure policy can be taken.

2. Business-Efficiency is Increased with Insurance:

When the owner of a business is free from the botheration of losses, he will certainly devote much time to the business. The care free owner can work better for the maximization of the profit. The new as well as old businessmen are guaranteed payment of certain amount with the insurance policies at the death of the person; at the damage, destruction or disappearance of the property or goods.

3. Key Man Indemnification:

Key man is that particular man whose capital, expertise, experience, energy, ability to control, goodwill and dutifulness make him the most valuable asset in the business and whose absence will reduce the income of the employer tremendously and up to that time when such employee is not substituted.

The death or disability of such valuable lives will, in many instances, prove a more serious loss than that by fire or any hazard. The potential loss to be suffered and the compensation to the dependents of such employee require an adequate provision which is met by purchasing adequate life-policies.

4. Enhancement of Credit:

The business can obtain loan by pledging the policy as collateral for the loan. The insured persons are getting more loans due to certainty of payment at their deaths. The amount of loan that can be obtained with such pledging of policy, with interest thereon will not exceed the cash value of the policy. In case of death, this value can be utilized for setting of the loan along with the interest. If the borrower is unwilling to repay the loan and interest, the lender can surrender the policy and get the amount of loan and interest thereon repaid.

5. Business Continuation:

In any business particularly partnership business may discontinue at the death of any partner although the surviving partners can restart the business, but in both the cases the business and the partners will suffer economically. The insurance policies provide adequate funds at the time of death. Each partner may be insured for the amount of his interest in the partnership and his dependents may get that amount at the death of the partner. With the help of property insurance, the property of the business is protected against disasters and the chance of disclosure of the business due to the tremendous waste or loss.

6. Welfare of Employees:

The employer has to look after the welfare of the former which can be provision for early death, provision for disability and provision for old age. These requirements are easily met by the life insurance, accident and sickness benefit, and pensions which are generally provided by group insurance.

Importance of Insurance to the Society

1. Wealth of the Society is Protected:

The loss of a particular wealth can be protected with the insurance. Life insurance provides loss of human wealth. The human material, if it is strong, educated and care-free, will generate more income. Similarly, the loss of damage of property at fire, accident, etc., can be well indemnified by the property insurance; cattle, crop, profit and machines are also protected against their accidental and economic losses. With the advancement of the society, the wealth or the property of the society attracts more hazardous and, so new types of insurance are also invented to protect them against the possible losses.

2. Economic Growth of the Country:

For the economic growth of the country, insurance provides strong hand and mind, protection against loss of property and adequate capital to produce more wealth. The agriculture will experience protection against losses of cattle, machines, tools and crop. Similarly in business, too, the property and human material are protected against certain losses; capital and credit are expanded with the help of insurance. Thus, the insurance meets all the requirements of the economic growth of a country.

3. Reduction in Inflation:

The insurance reduces the inflationary resource in two ways. First, by extracting money in supply to the amount of premium collected and secondly, by providing sufficient funds for production narrow down the inflationary gap.

Alcohol should not be allowed in Qatar because Qatar is predominantly an Islamic nation. About 77.5 % of the population is Islam, which is the majority. Only 8.5% of the population is Christian while other religions are encompassed in the remaining 14%. Alcoholism should be strongly forbidden in Qatar under whatsoever circumstance, and the government should maintain a zero-tolerance rate on alcohol consumption. The reasons for this stand are discussed below in two major approaches; a religious approach and a health approach.

Islam takes a holistic approach to the well-being and health of human beings. It does not compromise on alcohol consumption at any level either in small or in large amounts. The Glorious Quran prohibits alcohol consumption in a verse and I quote, “intoxication and gambling are an abomination from Satan and orders us to avoid them” (Quran 5: 90). The Quran states that alcohol is one of the tools that Satan uses to distract people from true worship of God. Alcohol makes people to engage in sinful behavior such as indecent sexual behavior and unruliness. People also tend to forget praying to God when they engage in drinking alcohol. Islam is a community-based faith, where the welfare of an individual is the concern of the whole community. Therefore, the Quran strongly forbids alcoholism because it has negative effects on an individual. In turn, these effects could result in disgrace, shame, regret on the drunkard and the community at large. Alcoholism could cause the economy of a nation to be in recession. This is because alcoholics neglect their responsibilities and duties, which contribute to the building of a nation. The Quran does not support this because it is for the growth of all the people in a nation.

On the other hand, alcohol has adverse effects on human health. First, it causes cancer of the kidney, stomach and in some cases, liver cancer. Alcoholism also alters digestion of vital nutrients that the body requires for the overall health of the body. Alcoholics also suffer from mental effects such as depression, insomnia, hallucinations, anxiety and dysthymia. An individual suffers from restlessness, disrupted sleeping patterns, fatigue, and loss of appetite. Pregnant women who are alcoholics expose their unborn babies to danger. This is because the alcohol is transmitted to the fetus organs, and could lead to a disorder known as Fetal Alcohol Syndrome. This syndrome results in brain damage, facial abnormalities and growth retardation. One also tends to have low self-esteem, which leads to depression and in extreme cases, suicide.

Alcoholism also causes negative behavioral changes in an individual. One tends to become aggressive and suffers from periodical mood swings. The moral and ethical aspects of an individual also tend to deteriorate as once increasingly indulges in alcoholism. This is because alcohol affects the brain synapses by slowing them down and consequently, one loses control of their action and their speech. Compulsive behavior also results from alcoholism where one becomes obsessed with alcohol and this negatively affects one’s decision in life. Alcoholics tend to live in denial because they do not want to admit to the fact that alcohol is harmful to their health. This deters them from receiving the help that they need so badly. Families and relationships are not spared by this controversial vice. Alcoholics tend to neglect their families because they are always indulging in drinking and become addicted to it. Alcohol also causes an individual to be violent. This is a serious effect on families because it leads to broken homes and instability among family members.

In conclusion, it should be enforced in Qatar that there should not be alcohol consumption and heavy penalties should be imposed on those found indulging in alcoholism. As discussed above, it is against the Islamic faith and it contributes to deteriorating health of an individual.

Alcoholism Is A Disease That Faces Uncertain Cure

Alcohol is the oldest and most abused drug in the world with approximated third of the world population of 12 years and above believed to be consumers of alcohol. Gifford (2010) notes that the number of alcoholic and problem drinkers continues to increase with five per cent of deaths in the world such as accidents, crime and violence attributed to alcohol. Men constitute more than 80 percent of alcohol abusers with the number continually increasing due to peer pressure and influence (Alterman, 2008). Many preventive and curative measures have been adopted to reduce the consumption of alcoholic substances but the fight hasn’t been promising. Many young people indulge in alcoholism even without stable sources of income, a problem that presents challenges in eradication of alcoholism.

Prentiss (2010) indicates that alcoholic abuse has many dangers apart from risks of death resulting from induced death, violence or injury. Alcohol is a source of many physical and mental disorders such as neurological disorders which result in reduced vision, poor body coordination, memory blackouts and a resulting brain damage. Beer, wine and alcohol, which are the three main types of alcoholic drinks, affects the brain cells due to their stimulant that induces fake feelings leading to impair judgments, self-consciousness and unnecessary excitement (O’Malley, 2006). Alcohol consumption also causes cardio logical problems such as increased blood pressure, stroke and heart failure. Respiratory problems like lung diseases, respiratory failure, tuberculosis, and throat and mouth cancer are results of alcohol consumption. Liver disease which comes second after alcohol-induced accidents in claiming lives is caused by continued chronic alcohol abuse. Furthermore, alcoholism leads to poor personal management especially mismanagement of resources and family affairs for parents. Alcoholism is therefore a continued chronic abuse of alcoholic substances that leads to addiction leading to increased tolerance thus abusers are forced to take great amounts to satisfy their desired alcoholic effects.

Alcoholism thrives in a setting where appropriate awareness of the effects of the alcoholic substances is lacking. Lack of proper understanding about alcoholism and how to deal with it stimulate the practice causing innocent suffering to all people who take alcohol. Prevention of alcoholism can be the best cure that ensures that individuals are enlightened on the effects that come with abusing alcohol and other drugs. However, once alcoholism is not prevented, alcoholics must be recognized and appropriate recovery programs initiated before addiction.

The future of curbing alcoholism and alcohol abuse is not promising. This is due to the failure of many strategies that have been initiated to ensure that young people do not indulge in alcoholism. Though many governments, churches and non-governmental organizations still strain to control alcohol abuse, their efforts are yet to bear recognizable fruits. Many victims of alcoholism break out of alcoholism when the damage is already done and no possibility of going back to life of sobriety.

While alcohol has had many adverse effects to abusers, many communities have used it to identify themselves in the world of cultural practices. Alcohol and alcohol addicts have been used in many western countries to support cultural ideals. Many scientists have termed alcoholism as “a disease that can be arrested but not cured” because the cure lies with the abuse since freedom to entertainment is guaranteed in many constitutions (Alterman, 2008). Alcoholism is therefore an issue that faces unclear existence since beer and other legal alcoholic substances are sources of income for a country while being agents of physical, social and moral pollution.

REFERENCES

Alterman, R. 2008. A Look to the Future of Alcoholism Treatment. Cheston: Lachance Publishing.

Gifford, M. 2010. Alcoholism. New York: Greenwood Publishing House.

O’Malley, A. 2006.The Cure for Alcoholism. Charleston: Biblio Bazaar Reproduction.

Prentiss, C. 2010. The Alcoholism and Addiction Cure. London: Duncan Baird Publishers.

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Event Log for an Off-Campus Career Fair

This event log will be on an off-campus event known as the Midlands Career Fair. It is an event, which is held annually, and its main intention is to attract students who wish to gain employment in leading companies. Provided below is an event log of the Midlands Career Fair, which I attended most recently.

Monday 2 December 9.00 a.m- Arrived at the Midland Career Fair, where there were more than one hundred companies in attendance. They were all from different sectors of employment and had their representatives, who were sent to guide students on how to take the right career path. I registered my attendance at the entrance of the career fair.

9.10-9.10.30- I went to the hospitality section of the career fair, since this is where my interest lies. I met with representatives from the Hilton and Crown Plaza resorts. They each gave a presentation of their individual companies. Later on, I took a business card of the human resources manager at the local Hilton hotel chain.

10-30-11.00- There was some special entertainment being provided by a local band and I spent thirty minutes listening to their enjoyable music. At the same time, I bought some coffee and sipped it until I decided to continue checking out other stands at the career fair.

11.00- 12.30- It was announced that a local wealthy businessman would be giving a presentation to people who were interested in becoming entrepreneurs. I therefore, went to the auditorium and sat, as I listened to the guest speaker of the day. It learnt quite a lot from the businessman as well as gained tips on how to start my own business. Afterwards, I went home to reflect on the day’s happenings.

Lightning

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Lightning

Even before, human beings existed on earth, lightning stroked the earth. It is even believed that the planet’s evolution is due to the effects of lightning. All over the world, the sky is usually lighted at around one hundred in terms of seconds. Furthermore, when lightning occurs, the bolts do not all reach the ground. For example, in the United States, it is estimated that lightening occurs twenty five million times. Most people associate lightning with negative aspects, but it should be known that it has its positive aspects. Lightning is known to cause extreme damage particularly for objects and people that are not well protected. It should be known that when compared to other natural disasters, lightning does not kill many people. On a yearly basis, lightning strikes at least one aircraft, which is in the sky. Luckily, modern aircrafts have been constructed in a way that they are not affected by lightning strikes. Moreover, many forest fires, as well as failure of electric power lines are caused by lightning. The advantage of lightning in forest fires is one that cannot be ignored. It helps in ensuring that the forests constantly have a life cycle that is natural (Dwyer, 2005).

Lightning is described as being an electric discharge that has an extremely high current. It then releases pulses that are in the form of energy at one hundredth millionth seconds. It is usually measured in terms of miles, and it has a diameter that measures two or one inches. Most lightning bolts have tens of thousands of peak currents in the form of amperes. They have temperatures, which are as high as 50000 Fahrenheit degrees. The heat is hotter than even the sun, as its heat is five times more deadly. Lightning columns have plasma’s, which are extremely high in temperature (Rakov & Uman, 2003). The plasma has broken atoms that exist in the form of gas and are usually particles, which are charged electrically. They also have positively charged ions and negatively charged ions. The gases are known to be ionized in nature. The charged particles movement is the one responsible for creating a lightning channel. The latter is what makes up the electrical current whereby, the electrons move.

When ice crystals and soft hail are electrically charged when in the air, lightning arises. Thereafter, negative and positive charges accumulate and in various, diverse regions. In turn, large voltage develops at the regions, which have been charged. The regions are at the ground and the charged region. The voltage then expands in size until it has a million volts ranging from fifty to five hundred. There is also a chance that ionization of the air may take place. Furthermore, a plasma column is formed, and it has a channel that is electrically conducted. This is the time people are able to see lightning in the sky. It should be known that there are various ways as well as directions through, which lightening develops. At most, in the cloud to cloud lightening that occurs globally, there is a 90% chance of it hitting the ground. The latter is due to negative charges, which are transported to the ground, from the clouds. This is referred to as negative downward lightening. The other types of lightening, which exist, are positive upward, negative upward and positive downward discharges. In some rare instances, lightning usually moves upwards even in buildings, such as the New York Empire State Building (Dwyer, 2005).

Lightning occurs at an extremely fast speed that people cannot view it well. It even becomes impossible for people to appreciate its complex structure as well as its development stages. Fortunately, it is possible to determine the lightning development direction. Most times, one can view lightning’s main channel as well as its branches. There are many individual strokes in any given lightening flash. Also, they follow a similar cloud to ground path when lightning occurs. In any given channel, the constant recreation of the plasma takes place on a regular basis. In between the strokes, there are dark intervals and they last up to many milliseconds. The latter is the reason why people often see flickering light during a lightening episode. During a flash of lightning, there are usually five or three stokes. Moreover, people can observe strokes ranging from about one even up to twenty six (Rakov & Uman, 2003).

In every stroke that is downward, there are leaders, which always move downwards. Later on, there is a return stroke that moves in an upward direction. A conducting path is created by the leader, which intersects between the ground and the cloud. Furthermore, negative charges are distributed on the route that has been created. Also, in the path, the return stroke moves to the cloud from the ground. In turn, positive charges are distributed in order to neutralize, and at the same time, make the leader become negative. In any lightning flash, there are electrical currents, and they have diverse strokes. There is usually a rapid, current rise by the return stroke, and it can even reach up to many thousand amperes. During the current’s initial phase, many amperes move and in a second, can transmit even thousandths of amperes. The channel is in turn heated up due to the return stroke that is high. In some cases, it reaches up to 50000 degrees Fahrenheit. Also, the pressure is higher than that of the usual atmospheric pressure. Later on, intense light is produced by the channel. This is what human beings view and it can even expand. Shock waves are usually produced, and people hear thunder, which is a sound wave (Rakov & Uman, 2003).

It is extremely impossible, as well as impractical, to extract energy that is useful from lightning. In every cloud to ground lightning, there is a lot of energy consumption. The flashes usually last and has energy that is 360 kilowatts in every hour. The same energy can be used in lighting light bulbs that have a 100 Watt capacity, and for one month duration. Also, energy produced by the lightning flash varies from one hundredth to one thousandth. It is then taken to a strike point, and most energy is usually lost at this stage. Moreover, other energy then exists in the form of radio waves, light and thunder, after air has been heated up. If people had the ability of containing the energy produced by lightning flashes, they would have many difficulties. The latter is because there are extremely low chances that lightning can strike the ground. An example is a lightning incident that took place in Florida. There was a tower that was sixty meters in length and lightning struck it. Ever since, lightning strikes it on a yearly basis. Florida does not have many incidents of lightning as compared to other American states. Thus, in order to capture strikes created by lightning, many towers would have to be built (Gosline, 2005).

It is possible to test and to research about lightning concerning how it can be triggered. When this is done, it can be extremely beneficial in protecting buildings and people. The most common and safest way of inducing lightning is by using a rocket. It is then charged over head where the cloud is located. The rocket usually has a grounded wire, which is thin, and it trails behind it. There are other regions other than in the atmosphere of the earth where lightning occurs. There is evidence, which shows that, in Jupiter, lightning discharges exist. Furthermore, the discharges are said to be larger than the ones, which occur during lightning on earth (Gosline, 2005). There is a lot of information regarding lightning, but more research needs to be conducted. Concerns regarding radiation that is high energy, and which is obtained from lightning needs to be known. The latter is deadly to human beings and makes them be at harm. During lightning flashes, there is the production of nitrogen oxides, and it can cause global warming. For example, ball lightning needs to be research more upon, as it is not well understood. In conclusion, lightning is a fascinating phenomenon that needs to be known. People should have knowledge on how they can protect themselves from the effects of lightning. In turn, property and human life can be saved.

References

Rakov, V. & Uman, M. (2003). Lightning: Physics and Effects. Cambridge: Cambridge University Press.

Dwyer, R. (2005).”A Bolt Out of the Blue,” Scientific American, 292, 5, 2005, 64-71.

Gosline, Anna. (2005). HYPERLINK “http://www.newscientist.com/article/mg18624981.200” “Thunderbolts from space”. HYPERLINK “http://en.wikipedia.org/wiki/New_Scientist” o “New Scientist” New Scientist 186, 2498, 30–34.

Event Log for An on-campus Cultural Day

This event log is for the annual cultural day held on the campus sports grounds. The event was for providing the various students who come from diverse nationalities make their culture known to their fellow students. The theme for the event held on 4th December was ‘Different Nations one Global Community’.

2.00 p.m-2.30 p.m- I attended the opening ceremony at the event and heard a speech by the guest of honor.

2.30p.m-3.15 p.m- The Korean students were performing some of their traditional dances and I went over to their stand to see this rare and unique dance. I was quite amused by their performance as it was something that I had never seen before.

3.15 p.m- 4.00 p.m- The students from the various African countries had prepared their local delicacies and I had to take advantage of this opportunity. I tried out dishes from Nigeria, Kenya and South Africa, and they were extremely tasty. My best dish was the fried chicken that the Nigerian students had prepared, as it was quite different from my usual the chicken taste.

4.00 p.m-5.00p.m- I met some of my friends and decided to continue viewing the other stands together. We went to the Australian stand where the students gave a short presentation on what their country has to offer, and especially for tourists. I was quite impressed and vowed that in the future, I would visit Australia.

5.00 p.m-5.30 p.m- I attended the closing ceremony, where the guest of honor gave a vote of thanks. Thereafter, I took some brochures then headed home after quite a memorable day.

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Albania’s Pyramid Schemes

Introduction

In 1940s Albania had a predominantly agricultural economy, and depended on a classic Stalinist economic model characterized by central planning, and bureaucratic decision-making processes (Kindleberger 54). This model prevailed until the beginning of the 1990s, when the government initiated economic reforms which promoted private ownership (Davies 78). The private sector contributed about two third of the GDP, and the rising remittances from the Albanians working Greece and Italy increase the disposable incomes. The improved economic environment increased consumer imports, and investments in the emerging pyramid schemes. Lack of proper financial institution and securities markets encouraged the Albanians to look for alternative investment opportunities such as the pyramid schemes. This paper examines the effects of the pyramid scheme on the local economy.

Background

As suggested by Dirk pyramid schemes operate on a simple principle whereby, money paid by the later investors is used pay artificially high returns to earlier investors (78). At first, early investors are promised high returns to woo potential investors. As the word spreads, many people are pulled into the scheme to benefit from the huge capital gains. As Jarvis observes during the early phases, the whole process seems to work, but with time the interest and principal owed to the old investors exceed the money that the scheme has (5). As a result, investors are forced to cut short the payments and investors start panicking.

Some of the players that were involved in the pyramid scheme include VEFA which was formed in 1992 by Vehbi Alimuca, and took in at least $700 million in deposits. The institution started as a trading company and is accused of promising customers unsupportable rates. The second major player is Xhafferi which was formed by Rrapush Xhafferi and at the time of its collapse it had taken $250 in deposits. Another key player in the pyramid scheme was Gjallica which was formed in 1991 and took in an estimated $850 million in deposits. Sude on the other hand, offered lottery services but thereafter started taking deposits from the customers. At the time of its collapse, the company had $90 million in liabilities and no assets. Just like Sude, Populli offered to pay its customers two times principal invested after 3 months. The company worked closely with the Albanian opposition parties, and at the time of its collapse its liabilities were over $150 million.

Events leading to the crisis

As Chris Jarvis, an IMF economist observes in the article titled, the rise and the fall of pyramid schemes Albania, the origin of the pyramid schemes can be traced to the decline of the smuggling market. According to Jarvis the smuggling of oil products through Albania ended with the suspension of the UN sanctions against Yugoslavia (10). As a result, the pyramid period schemes were forced to look for alternatives sources of income. One of the viable ways at the time was to increase the interests so as to attract capital from potential investors. Within a short time the deposit-taking market grew tremendously, and by the mid-1996, the deposit-taking companies were offering interest rates as high as 19%. In the first few months, the companies had attracted two million depositors, and the number continued to grow in the second half of 1996. The players in the informal sector competed by offering attractive rates and just to illustrate, in the September 1996 Populli offered a monthly interest are of 30% which Xhafferi countered with a 44% rate while Sude offered to double the principal in two months. To capitalize on these opportunities some of the investors sold their property while other sold their animals, and then put the proceeds in the pyramid schemes. Worried about the integrity of the schemes, the Governor of Bank of Albania issued the first warning, and then followed by the Minister of Finance. The government formed a committee to investigate the schemes but unfortunately it never delivered. All long, other institutions including the IMF continued to warn the government about the toxic nature of the pyramid schemes, but government chose to disregard their advice. The effect of allowing unlicensed companies to engage in deposit-taking companies, started being experienced at the end of the 1996, and subsequently, the World Bank and the Bank of Albania issued a public warning which went unheeded until in November when Sude collapsed.

Economic and political reasons behind the scheme

4.1 Political climate

As suggested by Christopher Jarvis in the book titled, the rise and fall of the pyramid schemes in Albania, between 1945 and 1985, Albania political leadership was wanting, under the rigid dictatorship of Enver Honxha. At the time, the government’s political policy was based on the principles of central planning, elimination of private ownership and insistence on national-self reliance. As a result of these policies, the Albania’s economy was isolated and its populace were impoverished. However, in the early 1990s, the economy started to rise, and by 1995 the GDP had grown by 10%, while inflation and external imbalances had greatly reduced.

The transformation of the Albanian economy spurred consumerism while industrial output increased significantly. By 1995, the Albania’s economy had exceeded all the targets set by the International Monetary fund, and excited about this splendid performance, the investors took up business opportunities in the textile, oil and soft-drink industries (Blejer 31). These gains were later lost, in the run-up to the 1996 elections due to poor political leadership. Some of the decisions that negatively impacted on the country’s microeconomic performance include the elimination of the VAT and the unrealistic promises by the political aspirants. After the elections which were won by the Democratic Party, the political authority made weak decisions and the leaders were unwilling to make critical decisions such as streamlining the banking sector. Eventually, weak political leadership gave way for the banking industry to engage in the pyramid schemes.

4.2 The problems in the financial sector

In the run-up to the crisis, Bezemer observes that the formal financial system was inadequate (18). The banking sector was dominated by the three state banks and private banks found it hard to penetrate the industry. Due to the monopoly that the state banks enjoyed, the quality of services rendered to the Albanians was poor and just to illustrate, customers had to wait for more than 15 days to complete inter-bank transactions. With time, the general distrust for banks increased, with the customers holding a high proportion of their financial assets in cash while others invested in alternative areas. At the time, banking institutions were also faced with the bad loan problem, and to address this situation the Bank of Albania imposed bank-to-bank ceilings. This intervention although appropriate, made it difficult for the private investors to access credit facilities, forcing them to turn to the informal credit market. Indeed, according to a survey conducted in 1996, 36% of the investors relied on the informal market. The growth of the informal market in Albania was tolerated by the authorities, and with time these illegal banking institutions became the best avenues for savings in the country. With little supervision from the government, companies in the informal credit market stopped lending funds, instead preferring to invest the depositors’ funds in productive investments and to some extent criminal activities.

4.3 Weak legal and government framework

In the run-up to the crisis, companies involved in the informal market were not adequately supervised not did they pay corporate tax as required by law. In addition, the banking institutions in the informal market operated under the civil code, and failed to comply with the Law on the Banking System. The reluctance by these entities to comply with the applicable laws was helped in part by the laxity of the government institutions. Just to illustrate, the Central Bank, the Ministry of Justice, the Bank of Albania and the Chief Prosecutor, failed to close the borrowing companies as provided for in the Law of Banking System. As Blumi reports members of the government also colluded with the borrowing companies for financial gains (2). Political parties and senior government official benefitted from campaign contributions from companies such as VEFA.

Effects of the government’s actions on the economy

The government took both short-term and long-term measures which will be discussed later in the paper. However, some of the aspects of the government’s decisions need to be discussed in this section. One of such decision is the reluctance by the Albanian government to bail out the pyramid scheme depositors. This decision was viable because at the time, the government was facing budgetary constraints and compensating the depositors would have resulted to major fiscal costs. In addition, to close the budget deficit caused by the unexpected loss of revenue, the government reduced the public sector wages in 1997. Again this measure allowed the government to deal with the high levels of inflation that were being experienced in the country.

Short-term and long-term effects of the pyramid

In the article titled, the rise and fall of the pyramid schemes in Albania, Jarvis points out that by 1997 the liabilities incurred by the pyramid schemes accounted for half of the entire GDP (21). In the article, Jarvis also likens the pyramid schemes to the bubble whereby the demand for products and the money supply in the market (21). After the bubble burst, capital inflows and actual and perceived wealth reduced instantly. As result, the demands for goods reduced and this could explain the reason why imports too reduced after the collapse of pyramid schemes. However, as Jarvis admits it was not possible to identify some of the micro-economic effects of the pyramid schemes as most the players deposited the money with state-owned commercial banks (21). In turn, commercial banks invested their money through treasury bills thus allowing the government to close the budgetary deficits. In other words, a significant proportion of the money did not trickle down to the real economy and as such its economic effects were rather limited. Even then, the few short-term effects that were experienced are detailed below.

6.1 Short-term effects

6.2.1 Loss of revenues

Some of the government owned businesses such as the posts and tax offices were closed after the crisis. In addition, most of the many industries ceased operating, the effect of which the government revenue collections reduced significantly.

6.2.2 Increase in inflation

In the year 1996 the inflation rates increased to 17% while the current account of the balance of payments reduced by 2% of GDP. After the collapse of the pyramid schemes and subsequent eruption of civic disorder the government’s revenue steam was cut short, leading to depreciation of the exchange rate, and increase in the inflation.

6.2 Long term effects

According to Humphrey, it is hard to identify the long-term effects of the pyramid schemes, as most of the money did not trickle down to the real economy (56). Humphrey further observes that limited effects of the scheme could be attributed to the resilience of the Albanian economy (80). Even then, a few long-term effects that were experienced are discussed below.

6.2.1 FDI investment

Due to poor government regulation, the foreign investors were reluctant to invest in Alabania. Capital inflows reduced as well, as the potential investors were discouraged by the volatile political stability and the inability of the Albanian government to regulate the informal market.

6.2.2 Poverty

As a result of the pyramid schemes, thousands of Albanians were left impoverished. Some of the investors had sold their property and put the proceeds in the schemes, and when borrowing companies collapsed they were left with nothing. On the positive side, the agricultural output increased as the discouraged investors, aggressively engaged in farming activities to offset the money lost to the pyramid schemes.

Interventions

7.1 Short-term measures

The first borrowing company to collapse was Sude, followed by Gjallica, an event that caused huge civil unrest in the Southern City of Vlore. In response to the civil unrest, the government took a number of measures which will be detailed next. Firstly, the government froze the accounts of the borrowing companies, and limited withdrawals to $300,000. This measure was intended to prevent unlicensed companies from withdrawing depositors’ money. This measure helped the government to seize the assets of the companies which were then returned to the depositors. Under the leadership of the Fatos Nano, the chairman of the Socialist Party, the interim government with the cooperation of the internal partners took deliberate measures to improve the economic health of the Albania. In this regard, the international Monetary Fund and the World Bank greatly assisted the government to restore tax collection and restore stability in the Albanian cities. To improve the ailing economy the government also raised the VAT, initiated structural programs and strict monetary controls. According Pettifer and Miranda these measures improved achieved the following results: the output and the value of the local currency increase significantly, inflation reduced by 11% and the budget deficit was brought under control (45).

7.2 Legal framework

One of the immediate measures that needed to be performed is the closure of the remaining pyramid schemes. However, this action was impeded by the lack of a proper legal framework, and the reluctance of the politicians to act on the errant entities since they had invested their money in the schemes. Eventually, the law was passed in 1997, and it gave way for the appointment of administrators. The new administrators would be sources from major accounting firms and were given authority to sell the companies’ assets, and seize the assets of the persons associated with the pyramid schemes. The new administrators took up their duties in November 1997, and the delay in their appointment gave the scheme owners an opportunity to reduce the liquid assets. The work of the administrators was hampered by the lack of cooperation from the scheme owners and the employees. There also great rivalry between the administrators and the government officials hence impeding the asset recovery process.

Impact of the schemes

8.1 Protests

Following the collapse of the pyramid schemes, civilians poured into the streets in what is now referred to as the Albanian anarchy of 1997. The first protests took place on 16th January 1997 followed by another one on 24th January. Protests started from the Southern areas and then spread to the North. With the help of the rebels and the socialist forces, the protesters destroyed government buildings and the process 2,000 people were killed. Eventually, the protests spread to Tirana, forcing the government resign and an interim coalition was appointed.

8.2 Civil wars

Following the collapse of the pyramid schemes, looters amassed arms from the government armoires. The citizens took arms for self-defence purposes and as a form of reimbursement from the money lost in the scheme. Yurchak estimates that during the 10 day civil unrest, 3,600 explosives, 650,000 weapons, 1.5 billion ammunitions, 3.5 million grenades and 1 million mines were looted (67). The influx of small arms impacted negatively on the national security as armed robbery and banditry cases increased tremendously. By 1998, the crime rates in Albania were higher that the global average. Some of the weapons that were looted were trafficked to the ethnic Albanian rebel groups, the refugees from Kosovo crisis and Greece. In total, an estimated 200,000 weapons were smuggled into Kosovo, Macedonia and the neighbouring countries. Access of weapons, facilitated the Kosovo Liberation Army to engage in armed conflict.

Conclusion

The pyramid schemes in Albania occurred at a time when the country’s economy was transitioning from being centrally controlled to a free-market system. The spread of schemes was encouraged by lack of adequate regulatory framework and political will to regulate the activities of the borrowing companies. The pyramid schemes took in a lot of depositors’ money due to lack of proper legal framework and opposition from the outgoing parliamentarians. The presidential decree finally paved way for the appointment of the administrators and subsequent recovery of the illegal assets. Although, the scheme was widespread, its macroeconomic effects were limited and short lived. The civil disorder experienced after the crisis affected government revenue collections and enhance the rebels’ military might. The crisis highlights the importance of regulatory frameworks and stable financial systems to ensure institutions in the banking industry are well supervised.

Works cited

Bezemer, Dirk. Post-Socialist Financial Fragility: The Case of Albania. Cambridge Journal of Economics 25.1(2009):1–23.

Blejer, Mario. Albania: From Isolation toward reform. Washington: International Monetary Fund, 1992

Blumi, Isa. Hoxha’s Class War: The Cultural Revolution and State Reformation, New York: Nova Science, 200

Davies, Norman. Europe: A History. Oxford: Oxford University Press, 1996

Dirk J. Bezemer. On Eagle’s Wings: The Albanian Economy in Transition. 1961–1971. East European Quarterly 33.3(1999):2.

Humphrey, Caroline. The Unmaking of Soviet Life: Everyday Economics after Socialism. Ithaca, NY: Cornell University Press, 2002

Jarvis, Christopher. The Rise and Fall of the Pyramid Schemes in Albania. Washington, DC: IMF, 1999

Kindleberger, Charles. Maniacs, Panics and crowds: A history of Financial Crises. New York: Basic books, 1978

Pettifer, James, and Miranda Vickers. The Pyramid Banking Scheme and the Democratic Party Government. London: Tauris, 2007

Yurchak, Alexei. Entrepreneurial Governmentality in Post-Socialist Russia: A Cultural Investigation of Business Practices. Armonk, NY: M. E. Sharpe, 2002

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Alcoholism of the Elderly in the Bronx

As the social problems increase in their diversity and occurrence, a significant percentage of the population are resorting to various measures in a bid to cope with the respective problems. Alcoholism is one of the practices that populations of all ages are assuming in order to cope with the wide ranging social problems. Although this is not sustainable, it provides a temporary escape to the daily challenges that the affected populations grapple with. This practice has had diverse impacts on the holistic wellbeing of the individuals as well as the society. Alcoholism among the elderly is a social problem that is increasingly gaining prominence in Bronx. This can be attributed to the various social problems that the population in this region faces. It is against this background that this paper provides an in depth analysis of alcoholism amongst the elderly in Bronx. In detail, it evaluates the effects of the practice, statistics, prevalence and reasons for occurrence.

Statistical evidence indicates that a significant 17% of the elderly in Bronx and faced with the problem of alcoholism (Gary, Efremova, Army and Saba 228). Hospital statistics indicate that 21% of the older adults in hospitals suffer from drug related health problems. These comprise of both the hardy survivors and the late onset groups. With regards to gender, both the male and females suffer from alcoholism equally. This practice has been triggered by various factors that are social, economic, medical and cultural in nature.

On of the common causes of this problem in Bronx pertains to the low social and economic status of the population residing in the region. Lack of sufficient resources to cater for all the needs of a family makes an individual to be stressed up This culminates in incidences of stress and depression that drive an individual to alcoholism. According to Lowinson, Ruiz, Millman and Langrod, alcoholism amongst the elderly in Bronx is also caused by the inability to cope effectively with changes in life such as retirement and the relative reduction in income (77).

The challenges that the respective populations face make it difficult for them to effectively maintain healthy lifestyles. It is for this reason that they often resort to alcoholism to enable them cope accordingly.Alcoholism amongst this segment of the population in Bronx is also triggered by familial conflicts and impairment of sleep. In most instances, relative problems stem from incidences of low income and health complications. In order to cope with the problems, the elderly individuals resort to use and abuse of alcohol. As aforementioned, alcoholism has adverse effects on the holistic wellbeing of the elderly population that is affected by the problem.

To begin with, it affects the functioning of the liver, heart and nervous system. This is particularly so because the immunity of the affected population is usually low. Then, Hanson, Venturelli and Fleckenstein argue that it culminates in forgetfulness and confusion that undermine effective functioning of the individuals (54). Then, a significant percentage of the elderly individuals usually suffer from terminal diseases such as diabetes, cardiac diseases and so forth. For this reason, they are more likely to be on drugs for most of their time. Alcoholism in this regard leads to mixing of drugs that threatens the health of the affected individuals. From a medical point of view, it is widely agreed that mixing of drugs with alcohol is dangerous and can be fatal.

Works Cited

Gary Kennedy, Efremova Irina, Army Frazier and Saba Abdo. The Emerging problems of Alcohol and Substance Abuse in late life. Journal of Social Distress and the Homeless, 8.4 (1999): 227-239. Print.

Hanson Glen, Venturelli Peter and Fleckenstein Annette. Drugs and Society. USA: Jones & Barlett Publishing, 2005. Print.

Lowinson Joyce, Ruiz Petro, Millman, Robert and Langrod, John. Substance abuse: A Comprehensive Textbook. USA: Lippincott Williams & Wilkins, 2004. Print.

Running Head: Albert Cohen’s Theory of Delinquent Subcultures

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Since time immemorial, crimes have been committed in the world societies. In the recent past, crime rate has increased significantly. Different theories have been put in place to explain these crimes. The functionalist theory is one of the strain theories that attempts to deeply explain crime and deviance as they occur in the societies. Albert Cohen’s theory of delinquent subcultures focuses on mainstream cultural objectives and goals in the vast range of societies. In addition, the theory centralizes on the reasons why the lower class people in the world societies have failed to attain theory desired goals and objective thus replacing them with deviant behavior which often give rise to criminal activities. According to Cohen, the criminal acts that individuals often engage after failing to achieve their objectives leads to development of delinquent subcultures whose objectives and goals sharply contrast with those associated with achieving success in the society.

Focusing on delinquents as ooposed to adults, the theory explains that occurrence of crimes in the society is associated with poor upbringing of young children. Shortly after World War II, Cohen discovered that high number of baby boomers engage in criminal activities in the societies. This is profound in the lower class societies. Everyone in the society holds the same goals but the opportunity to achieve them differs. The lower class have limited opportunities to fulfill their objectives hence some have resorted to criminal activities as away of nursing these frustrations. According to Cohen, the disparity in the accessibility of opportunities for achieving goals has resulted directly to criminal activities. The mainstream goals and objectives are replaced with criminal activities as the alternative of achieving success.

Delinquent behavior among the young people in the societies is uprising against what people in the upper class and the middle class believe should be. The poor conditions experienced by the poor class in the societies, the youths encounter another form of culture that sociologist has labeled status frustration. So what actually happens is that, because these individuals do not fit the existing culture and norm, they ended up forming gangs in an attempt to support each other. The formed gangs are very rebellious and engage in opposing the rules, processes, systems, goals and objectives of the society. These individuals take norms from the larger society or culture, but turn them upside down. Therefore, the delinquent conducts among the young people in the society is right by the standards and rules of the subculture precisely since it is against the norms of the larger society and culture.

The lower class people have been sidelined in the society. They do not acquire necessary communication skills, which in the modern societies is a very crucial skill. Cohen theory explains that delinquent subcultures do no occur as result individual deviant behavior only but by societal factors that pressurize these individuals into forming them.

One flaw that children face in the lower class society is that they are not capable of producing a positive image in the eyes of the responsible authorities. They cannot conform to what Cohen calls “authority figures middle-class measuring tools.” Unlike positive evaluations of individuals, negative evaluations follow individuals for the rest of their lives unless a corrective action is taken to change it. Fundamentally, the lower-class boys in the society suffer rejection by the upper and the middle-class decision makers. On condition of such situations, these boys will opt to being corner boys, the college boys or the delinquent boys. In this respect, the corner boys refer to those portrayed as those not accepted by the middle class counterparts. The corner boys would not engage in delinquent acts but will commit minute offenses. Those praised by their peers often gain sense of comfort and boost individual’s self-esteem. Since they cannot compete with those in the middle and the upper class, these boys will resort to staying in the neighborhood where they compete their lives there. They will compete for their lives in the neighborhood within the lower class by engaging in minute offenses which can often give rise to serious criminal acts especially in the later stages of their lives. The college boys are the next group of lower-class boys. They praise everything that occurs in the middle class societies and they have the tendency of going down the road to fight for their lives. Their actions often lead to dead-end and this is normally caused by the fact that these individuals do not posses have the necessary skills to pursue their lives in the middle and the upper class. The delinquent boys represent the most rebellious groups that flip the values and the norms observed by the middle and the upper class people. In order to achieve their goals and means, they engage in short run hedonism, where they assume that “living for today and letting tomorrow take care of itself.” They are very careless hence do not consider what will happen in the future. They do not weight the consequences of their actions. They do not take heed of the societal teachings; do not observe the behaviors of the authorities hence their behaviors are difficult to control. The only thing they do is to form gangs in an attempt to persuade others that they can make by their own. Boys who are incapable of achieving success in the society often resort to a process that Cohen termed it as reaction formation. This implies that the affected victims react with extremely violent responses to various situations as they occur in the society. These victims do not realize that they on the wrong when break the laws.

Arguably, the focal concerns of the lower class people include trouble, excitement, fate, smartness, toughness and autonomy. People get into trouble by breaking the common laws, and this has the effect of creating image on the subject. In cases where the subject fights and win, people in the class will respect and honor i.e. reputation increases. Therefore, people would not try to fight that individual. As revealed by the Cohen theory, excitement has contributed to range criminal activities in the society. Excitement makes individuals want to know an activity that is out of the societal norm. Autonomy makes individuals desire to become independent. Since they do no have adequate opportunities of achieving this, they resorted to gang involvement.

The lower class people do not feel the impact of policy implementations made by the government or local authorities. This is because they are sidelined during the decision making. The young children do not engage in educational programs that could modify their behaviors and they cannot get the special needs. Due to idleness and the attempt to meet their needs, the subject resort to criminal activities.

Strain theories have tried to explain the occurrence of crimes in the world societies. Objectively, Cohen theory offers the best answer as to why there are cases of crimes in the society. The environment within which an individual is reared helps shape behavior.