Recent orders
UAE financial system development
Money and Banking
Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc416173346” Introduction PAGEREF _Toc416173346 h 2
HYPERLINK l “_Toc416173347” Historical discussion of evolving process of UAE financial structure PAGEREF _Toc416173347 h 2
HYPERLINK l “_Toc416173348” History of Dirham PAGEREF _Toc416173348 h 3
HYPERLINK l “_Toc416173349” Banking system PAGEREF _Toc416173349 h 5
HYPERLINK l “_Toc416173350” Central banking functions PAGEREF _Toc416173350 h 6
HYPERLINK l “_Toc416173351” Conclusion PAGEREF _Toc416173351 h 7
HYPERLINK l “_Toc416173352” References PAGEREF _Toc416173352 h 8
IntroductionGlobalization is one of the most significant factor that provide immense impact on overall financial system because with the help of the drivers of globalization various investors provide infrastructure to invest in UAE marketplace and it helps in overall development of economic infrastructure (Ahmad, ur Rehman & Saif, 2010). However, in these current times UAE is one of the best financial business hubs, and the evolving process is development is done by the heavyweight investors. On the other hand, regulatory authorities also provided valuable construction for the business culture development because they have provided some advantage to the sectors regarding taxation and approval legislation (Al-Tamimi & Hussein, 2010). Therefore, UAE becomes one of the most suitable places for doing business and due to the huge popularity and extraordinary infrastructure of investment makes UAE the best financial hub.
Historical discussion of evolving process of UAE financial structureMacroeconomic and financial sector development is achieved by UAE and mainly the financial sectors were well structured and most importantly, the systemic risk was minute because overall legal and judicial system was reformed by the regulatory authorities (Al-Tamimi & Hussein, 2010). There is a huge need for the proper legal system to run all the business sectors smoothly and for this particular reason the banking system development is done which simultaneously help in overall economic infrastructure development. In the year of 2001, the supervisory program is conduct by the banking sector and some components such as banks debt, operational and current market risk were identified and as per the requirement further development is done. Security system plays an important role in development of financial infrastructure and for this particular purpose the payment system development is done by the authorities and, therefore, the technological advancement is taking place, and it also help to secure the payment function (Al-Tamimi, Hussein & Jellali, 2013). However, there is some microeconomic development conducted by developing several policies and development strategies. With the help of innovative strategies massive economic growth is achieved by UAE and increase in overall GDP is also observed. Oil export revenue also played an important role for overall financial infrastructure development and the actual GDP is increased by 9.5 percent that is the highest among various GCC countries (Delis, 2010).
Figure- GDP growth
Source- HYPERLINK “http://www.uaegdp.com/info” www.uaegdp.com/info
There is another development is conducted by the regulatory authority in 2002 by announcing UAE a financial hub and establishment of Dubai International Financial Centre (DIFC) and also Federal financial free zone is developed which help to attract maximum amount of investors and businessman to invest in Dubai marketplace (Al-Tamimi & Hussein, 2010) as the demand of the market is very huge and there are fewer chances of loss as the current GDP rate is very huge, therefore, is become a spiritual place for the investor to invest and for the business man to make business in UAE countries (‘Reforming the international financial system for development’, 2011).
History of DirhamDirham was the Persian currency and was used before and after the appearance of Islam in Arabia. During the caliphate of ‘Ali ibn Abi Talib’ new coin with the name of Islamic government engraved on them. The places of coinage were written on both sides of these coins in the Kufic script (Al-Tamimi, Hussein & Jellali, 2013). Dirham has been the coin of year 40 AH, so it is also the first independent coin minted during the caliphate of ‘Ali ibn Abi Talib’. At the end of his caliphate, the coin was not continued after his death. The Islamic dirham was not accepted as the regular currency (Goaied & Sassi, 2010). Instead, Sassanid dirham was continued to be used as money till the caliphate of ‘Abd al-Malik ibn Marwan’.
The variety of Sassanid dirham was used in early years of Islamic rule, differing in weight and value (Delis, 2010). The Baghli dirham was mint under the order of ‘Umar ibn al-Khattab’. The recoinage of Wafi dirham weighted 20 karats and contained eight deneghs. The Tabri dirham was recoined by Khalid ibn al-Walid in year 15 AH, weighted ten karats and four daneghs. The juraghi dirham was weighted 12 karats and 4.5 daneghs. Other three was also used Maghribi, and Yamani dirham contained one and three dirham.
According to the jurist, the variation in the value of dirham led to the difficulty in estimation of financial, religious duties. The rate and range of arms were clarified ‘ Umar ibn al-Khattab, the second caliph ordered that dirham will be widely used and the legal dirham based on the average of the dirham (Hasan & Dridi, 2010). The legal dirham was not coined legal till 74 AH during Ummayad caliphate. The Large number of Islamic dirham was minted during the caliphate of ‘Abd al-Malik ibn Marwan’. About 30 dirham was selected from three different variety types weighing 10, 5 and five mithqals (Delis, 2010).
The variety of dirham was considered during the time of Prophet and had not led to any difficulty in estimation of scope and rate of alms- tax. At that time, six daneghs was considered as one dirham and credit of dirham was used to estimate the rate and value of alms tax. The same ratio had been practicable during the second caliph without minting the new dirham (Goaied & Sassi, 2010). From the records, the Islamic government did not have their coins (Kashani & Obay, 2010). This is seen in the ‘ABD al Malik ibn Marwan, was the only Roman emperor who could mint the coin then circulating.
After the formation United Arab Emirates, the UAE dirham was made official currency. It was circulated in the place of Bahraini Dinar @ 10 UAE dirham = 1 Bahraini Dinars and in the place of Qatar-Dubai royal at par (Goaied & Sassi, 2010). United Arab Emirates currency board since issued the currency in the year 1982 under the authority issuing the currency in the hands of United Arab Bank (Lange & Fierro, 2009). It is mostly pegged to US dollar, and the exchange rate is between them, i.e., 1 US dollar = 3.67 UAE dirham and has not varied since 1980s (Hasan & Dridi, 2010).
Dirham has been the very important currency in the Islamic world and Middle East and prime medium of exchange since ages. The dirham word was taken up from word “dirhem” name of an ancient Greek coin.
Banking systemBanks plays an important role in the security of any nation’s economy. Banks most significant role is in stimulating growth (Kashani & Obay, 2010). Banks provide financial help to the firms and assisting in the procedure of the entire economy to expand. The viewpoint of UAE banking system stay stable, and no alteration is taken place from 2013. Banks of UAE directly employed 35,000 specialist staff members apart from supplementary personnel of mid-2013 more than doubling-up from 14,000 workers in 2005 (Kashani & Obay, 2010). These huge demands in the banking sector emphasise the working capability of the people in the country. Banks enlarges the financial growth of the country, by granting capital from the individuals of the country and using the capital in the well-being of the country and also provides the interest to the individuals, moreover the efficiency of the procedure by which the saving are means into productive economy actions is critical for the nation’s enduring-term growth panorama. Banks execute a significant role in terms of temporary saving into long-standing saving. The banking system of UAE held US$350 billion in consumer deposit in the middle of 2013 and had a stupendous loan of near about US$320 billion (Kashani & Obay, 2010). Banks also plays a significant role in the management of risk in the economy and helps in assortment and smooth variation eventually (Kashani & Obay, 2010). Banks set up enduring term relationship with their customers firm. Impartiality by the banks and preserving of money owing adds to superb corporate discipline and governance (Loghod, 2010). Enduring term relationship persist helpful and active interference by a bank must its customer become financially upset. The government of UAE provide full support to the banks in assisting to their consumers or clients. The staff members of the UAE Banks know each and every customer and understand their individual needs and offer exact products that would get together their needs. Banks provide credit only if they are fully pleased that their consumers would have the potential to pay back the capital that they have obtained from the bank to credit (Mehta, 2012). Banks helps the customers to decide the simplest and most helpful suitable ways for them to demeanor their banking desires. The management of the bank should maintain and expand the professional information and abilities to their staff members, which would be helpful in providing customer satisfaction. The customers of the Banks of UAE should treat the facilities, tools and property of the bank very carefully (Loghod, 2010). The customers also play an important role in the enlargement of the banking system. Moreover, the banking system is not free enough from the problems. International Monetary Fund (IMF) has affirmative clarifications about the willingness of the UAE monetary and the banking segments to be the ingredient of the worldwide system. Hence, the banking system provides a great support to their customers (Parashar, 2010). Thus the banks of UAE obtain profitable capital, well guided and get the full support from the central bank (Mehta, 2012).
Central banking functionsThe core function of Central is to create as well as implement the policies regarding banking credit and monitor (Rettab, Kashani, Obay & Rao, 2010). The policies are created to secure the steady development of the national economy of United Arab Emirates. The central bank was also responsible for maintaining a firm exchange rate of Dirham against $ United State as well as ensure priceless conversion between the national currency and foreign currency (Parashar, 2010). Beside this, the Central Bank plays a role of a bank of all another bank as well as plays a role of Government Bank and as a financial advisor (Rettab, Kashani, Obay & Rao, 2010). There are several laws and regulation governing the functions of the entire banking industry a financial institute, as well as the Central Bank, regularly keep an eye on the monetary data and statistical banking via the bulletin of monthly statistics. There are several banks, which are supervised by The Central Bank (Rettab, Kashani, Obay & Rao, 2010). The fiscal policies of Saudi Monetary Agency (SAMA) mainly rely on the variations of the reserve ratio needs. The control over the credit is utilized rules of credit ceiling, terms and condition of the transaction of the consumers, cash margin, credit limit, restriction on particular categories of loans as well as firming the assets holding by each bank within the kingdom (Zeitun, 2012). The Saudi Monetary Agency (SAMA) utilizes a tool called ORR (Official Repo Rate) for managing short duration liquidity. For regulating the supply of the finance, Saudi Monetary Agency (SAMA) deploys its accounts as well as Government deposits with the commercial bank. The Central Bank direct the fiscal policies along with credit and banking policies and keep an eye over its implementation according to the state general policy in such manner that it support the national economy and firmness of the national currency (Rettab, Kashani, Obay & Rao, 2010). For the achievement of the objectives, the above said laws authorize the Central Bank for:
The Central Bank has the privilege of issuing currency. For supporting the national currency, the Central Bank keeps its stability externally as well as internally and secures its priceless conversion with the foreign currencies (Sabri, 2010). For attaining a stable development of the national economy, the Central Bank forms the direct credit policies in special ways. The Central Bank promotes, organize as well as supervise over the efficiency of the banking system. The Central Bank undertakes the function of the government bank within the restriction of the law (Rettab, Kashani, Obay & Rao, 2010). The Central Bank often advises the National Government on fiscal and financial issues. The Central Bank maintains the reserve of gold and foreign currency of the national Government. The Central Bank Act as a bank of all other banks, which are operating in the country. The Central Bank Act as the states finance agents at the International Monetary Fund and the International Bank for reconstruction and development as well as with other international and Arab funds and financial institute and run the dealing of the state with such organization (Sabri, 2010). In these way, the Central Bank of United Arab Emirates governs the economic system with the support of the Islamic law.
ConclusionThe paper provides a clear and concise idea of the evolving historical development of UAE financial infrastructure as well as the banking system and central banking system. It is evident from various researchers that banking system development is highly required that help in the development of the financial system. The regulatory authorities also play an important role by providing reliable legislations to the investors and businesspersons to invest huge amount of capital in UAE market because several advantages are provided to them that attracts the giant investors to make business in UAE countries.
ReferencesAhmad, A., ur Rehman, K., & Saif, M. I. (2010). Islamic banking experience of Pakistan: comparison between Islamic and conventional banks. International Journal of Business and Management, 5(2), p137. Retrieved April 5, 2015
Al-Tamimi, H., & Hussein, A. (2010). Factors influencing performance of the UAE Islamic and conventional national banks. Global Journal of Business Research, 4(2), 1-9.
Retrieved April 5, 2015
Al-Tamimi, H., Hussein, A., & Jellali, N. (2013). The Effects of Ownership Structure and Competition on Risk-Taking Behavior: Evidence from UAE Conventional and Islamic Banks. The International Journal of Business and Finance Research, 7(2), 115-124.
Retrieved April 5, 2015
Delis, M. D. (2010). Competitive conditions in the Central and Eastern European banking systems. Omega, 38(5), 268-274. Retrieved April 5, 2015
Goaied, M., & Sassi, S. (2010). Financial development and economic growth in the MENA region: What about Islamic banking development. Institut des Hautes Etudes Commerciales, Carthage. Retrieved April 5, 2015
Hasan, M. M., & Dridi, J. (2010). The effects of the global crisis on Islamic and conventional banks: A comparative study. IMF Working Papers, 1-46. Retrieved April 5, 2015
Kashani, H. A., & Obay, L. A. (2010). An Analysis of Productivity Change: Are UAE Banks Operating Efficiently When Compared to GCC Banks?. Academy of Banking Studies Journal, 9(1-2), 13. Retrieved April 5, 2015
Loghod, H. A. (2010). Do Islamic Banks Perform Better than Conventional Banks? Evidence from Gulf Cooperation Council countries. Journal of Management, 7(3), 56-72.
Retrieved April 5, 2015
Mehta, A. (2012). Financial Performance of UAE Banking Sector-A Comparison of before and during Crisis Ratios. International Journal of Trade, economics and Finance, 3(5). Retrieved April 5, 2015
Parashar, S. P. (2010). How did Islamic banks do during global financial crisis?. Banks and Bank systems, 5(4), 54-62. Retrieved April 5, 2015
Rettab, B., Kashani, H., Obay, L., & Rao, A. (2010). Impact of market power and efficiency on performance of banks in the Gulf cooperation council countries. International Research Journal of Finance and Economics, 50, 190-203. Retrieved April 5, 2015
Sabri, N. R. (2010). The role of banking sector in the Arab economic development. International Journal of Business and Emerging Markets, 2(2), 180-192. Retrieved April 5, 2015
Zeitun, R. (2012). Determinants of Islamic and conventional banks performance in GCC countries using panel data analysis. Global Economy and Finance Journal, 5(1), 53-72. Retrieved April 5, 2015
UAE Agri-Food Imports from Lebanon
UAE Agri-Food Imports from Lebanon
Name
Affiliation Abstract
The significant agricultural commercial enterprises are wine, olive oil and table olives, dairy milk creation, canned products particularly beats (chickpeas and beans) and animals generation. Agri-food change/food handling (for the most part for foods grown from the ground), thought to be a real part of Lebanon’s agricultural and agri-food industry, is produced yet obliges remaking and support. This paper will therefore discuss the agri-food products for UAE from Lebabon
Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc416995840” Abstract PAGEREF _Toc416995840 h 2
HYPERLINK l “_Toc416995841” Introduction PAGEREF _Toc416995841 h 4
HYPERLINK l “_Toc416995842” Literature Review PAGEREF _Toc416995842 h 4
HYPERLINK l “_Toc416995843” Composition of Agri-food pproducts that are imported in UAE PAGEREF _Toc416995843 h 4
HYPERLINK l “_Toc416995844” Analysis PAGEREF _Toc416995844 h 5
HYPERLINK l “_Toc416995845” Conclusion PAGEREF _Toc416995845 h 10
HYPERLINK l “_Toc416995846” References PAGEREF _Toc416995846 h 11
IntroductionLebanon’s agricultural area represents 5% of (GDP) and utilizes an expected 8% of the nation’s work power. Around 70% of Lebanon’s food needs are fulfilled by imports and the differences of exported food things is very striking. Despite the fact that Lebanon’s agribusiness part can possibly be a standout amongst the most profitable in the district, it is immature and ineffectively oversaw (Al Halaseh & Sundarakani, 2012). Just 55% of the gainful zones are misused, regularly in a wasteful and inefficient way. Real harvests incorporate vegetables, (tomatoes, potatoes), natural products (citrus organic product, bananas, grapes, pieces of fruit), olives, tobacco, grains (fundamentally wheat).
Literature Review
Composition of Agri-food pproducts that are imported in UAEThe agricultural area experiences absence of subsidizing, getting under 1% of the state plan. Private-part back and bank credits to agricultural are restricted. The net result has been an absence of speculation, undermining benefit and aggressiveness (Al Halaseh & Sundarakani, 2012). The legislature has extended an endowment program on interest rates focused at decreasing the expense of acquiring for little and medium-sized organizations. It is pointed particularly at the agricultural, business and tourism areas. Trade Plus, an administration endowment project, is gone for aiding agribusiness exporters with their harvests (vegetables, natural product, blossoms and eggs) (Al Halaseh & Sundarakani, 2012).
The nearby conveyance business experiences the nonattendance of government quality control, an absence of showcasing regulations, and rivalry from lower-estimated products from fringe and neighboring nations. The retail market is commanded by substantial markets, for example, Spinneys and Monoprix, and neighborhood medium/little estimated outlets, BouKhalil and Charcuterie Aoun. For the span of the Lebanese economy, the amount and differing qualities of food imports are great. In this little nation, food imports range from essential food classifications to the finest foods, wines and spirits. For 2009, aggregate food imports were as sensed at US$2.216 billion, or 13% of United Arab Emirates’ aggregate imports (US$ 16.242 billion).
Lebanese offer of food imports to United Arab Emirates totalled US$14 million, under 1% of aggregate food imports. Major Lebanese agri-food products sent out to United Arab Emirates for 2009 were the accompanying: heartbeats (particularly lentils) 63%, food preparations:15%, canola oil 5%, lobsters 3%, millet/canary seeds 3%, linseed/sunflower seed 3%.
The GCC has restricted neighborhood horticultural generation, a developing interest for imported foodstuffs, and a solid re-fare market. Lebanese agri-food products are looked upon as high caliber, with an unmistakable North American picture, and speak to a significant rate (30 percent) of Lebanese general stock tariffs to the area. The six-part Gulf Cooperation Council (GCC)— United Arab Emirates (UAE), Kuwait, Qatar, Bahrain and Oman—speaks to one of the wealthiest nation groupings on the planet. Favored with broad oil and gas holds, improvement and interest in the segment is significant (Al Halaseh & Sundarakani, 2012). Notwithstanding the current worldwide financial log jam and lower oil incomes, GCC governments are resolved to draw down their gathered stores to keep up the level of these interests with a specific end goal to manage their economies.
Analysis
Lebanon-UAE Agri-food imports
Rising levels of extra cash, government sponsorship of fundamental necessities, and more adaptable customer and business loaning practices are making another era of well-off shoppers affected extensively by Western ways of life and tastes. The GCC is additionally a significant wellspring of remote investment capital: by 2020, GCC nations are relied upon to have over US$3.5 trillion in outside direct speculation property (Wernery etal,. 2014). Besides, the locale is being situated as a main exchanging center point serving the Middle East, Africa and Southeast Asia. Lebanese organizations are appropriate to participate in the significant financial action under path in the GCC, especially in the framework, oil and gas, agricultural and health awareness parts. Lebanese organizations that make business validity in the locale will likewise be in a particular position to draw in the district’s considerable investment assets.
Lebanese agri-food products face solid rivalry from Europe (particularly organizations from France, Germany, Italy, UK and Russia) because of United Arab Emirates long-standing ties with European nations, the solid representation of European organizations in the Lebanese market and the moderately less expensive transportation costs for merchandise originating from Europe. The United States and Brazil (particularly for live creatures/meat, vegetable products, espresso and food plans) have an impressive offer of the business sector. Neighboring nations, particularly Syria, Egypt and Turkey, Saudi Arabia and UAE have an essential offer of the business sector (Aslam, Khan & Khan, 2013).
Costs of imported merchandise are liable to traditions expenses and a worth included assessment (VAT) of 10 percent. United Arab Emirates has diminished tax rates on imported merchandise to help restore local development, to encourage neighborhood, territorial and worldwide exchange assentions. An affiliation assention was marked with the EU in mid-2002, as a component of an European activity to make an organized commerce territory around the Mediterranean by 2010. United Arab Emirates additionally stays focused on decreasing levies with Syria and most other Arab nations as a major aspect of territorial organized commerce endeavors (Aslam, Khan & Khan, 2013). United Arab Emirates is presently getting to the World Trade Organization (WTO).
Lebanese vicinity in United Arab Emirates is stable to developing. Lebanon is synonymous with dependable/great quality products and appreciates a positive picture in United Arab Emirates and nonpartisan political association territorially. There is a developing interest for Lebanese products particularly because of the Euro high conversion scale contrasted with the US$. In any case, the cost of Lebanese products stays high contrasted with different nations particularly the Far East/South America and Arab nations. Lebanon is viewed as a friendly and benevolent nation to the Lebanese. There is an extensive Lebanese group in Lebanon of pretty nearly 300,000 persons and additionally a substantial group of Lebanese-Lebanese in United Arab Emirates representing 50,000 persons.
Distinguished open doors for Lebanese exporters to United Arab Emirates are the accompanying:
Pulses: lentils, chickpeas, beans and peas. For year 2009, Lebanese fare of heartbeats beat the agri-food tariffs to United Arab Emirates (particularly lentils and chickpeas). It positioned among 5 top Lebanese send out products to United Arab Emirates with an estimation of US$8 million, as indicated by the Lebanese Customs. United Arab Emirates imported an aggregate of 37,000 tons of heartbeats esteemed at US$31 million. Lebanon is the first supplier to United Arab Emirates with a piece of the overall industry 27%. Business pattern shows an expanding interest for chickpeas, lentils and peas. The crude item is prepared and canned in United Arab Emirates and after that re-traded to Lebanon as a completed/canned item (Aslam, Khan & Khan, 2013). Duties/obligations on heartbeats is 0%.
Meat products and live animals: existing potential for Lebanese exporters since there is no boycott and no BSE issue on Lebanese products. Wellbeing endorsements for the import of meat products/animals have been marked with the neighborhood powers. There is an expansive request on live cow-like creatures and boneless meat of cow-like creatures with aggregate imports for 2009 esteemed at US$320 million and positioning as top agri-food export products to United Arab Emirates. The principle supplying nations are 87% of piece of the pie took after by UAE. Duties/obligations on live cow-like creatures are 0% and 5% for boneless meat of ox-like creatures. Lebanon does not shortly fare to United Arab Emirates, however the opportunity is available.
Food preparations: for 2009, United Arab Emirates imported a sum of US$62 million of food plans products having as primary suppliers. Lebanese offer was 3% with an aggregate of US$2million (source: Lebanese Customs). The pattern is developing with the interest to a great extent ruled by the tourism business and also the general store chains. Obligations shift somewhere around 5% and 40% relying upon the item.
Opportunities for Lebanese exporters additionally incorporate seed potatoes, canola oil, dairy products (particularly cheddar/milk powder), confectionery, wellbeing and natural food. Taxes on agri-food things (crude materials, fixings and semi-completed products not accessible or made in United Arab Emirates) have been either annulled (wheat, maize, rice, flour, heartbeats and seeds and so forth or fluctuate somewhere around 5% and 20% on most agri-food things considered important (Aslam, Khan & Khan, 2013). Traditions obligations are somewhere around 50% and 70% for agri-food products that are developed or produced in United Arab Emirates (new/protected organic products, vegetables and tubers, some dairy products, wine and olive oil) as an insurance measure to the nearby generation. Imported food products obliging extraordinary licenses incorporate fruits, olives, citrus organic product, pears, almonds, rural manures and potato seeds. Regulations for the import of seed potatoes incorporate clean hindrances, gross imported amount and mixed bags to be imported which are liable to yearly changes (Kotagama, 2009).
Concerning meat products and live creatures, there is no boycott on Lebanese products and no BSE issue. United Arab Emirates has marked in 2004/2005 four Veterinary Health Certificates with the Lebanese government which permits and manages the importing of butcher/rearing steers, sheep and goat and in addition meat to United Arab Emirates (Cheshire & Woods, 2013).
There is no halal issue in United Arab Emirates, the import of both halal and non-halal products is acknowledged. Alcoholic and pork products are likewise unreservedly imported. Marking on imported things ought to incorporate net weight, creation/expiry dates, fixings and inception. Marks in Arabic are not profoundly viewed as the Lebanese consider European and North American names – in French or English – to be an assurance of higher quality. For the most part, center ought to be on cost and nourishing properties, as the Lebanese purchaser is truly wellbeing focused and peruses names painstakingly (Aslam, Khan & Khan, 2013). Considerable deferrals and authoritative imperatives in clearing imported products at traditions/ports of section are normal in most circumstances. So as to decline delivery costs, Lebanese organizations are encouraged to ship to the Middle East through Europe by either producing their products in Europe or by re-sending out them. It is desirable over have a neighborhood specialists, delegate or accomplice. A little number of organizations constitute the real food merchants in the nation and have their own particular conveyance system. Neighborhood shippers, who are remarkable in the area as being refined, accomplished, trilingual (Arabic, French and English) and multi-skilled representatives, want to contact and manage Lebanese suppliers specifically. Mediator’s administrations (to encourage the exchanges or go about as delegate with the Lebanese suppliers) are not popular or required (Al Halaseh & Sundarakani, 2012).
Conclusion
Imported agri-food to United Arab Emirates enter either through Beirut International Airport (BIA) or the Dubai International Airport. Remote exporters depend on nearby organizations to clear and get the imported products from the Customs Authority at Dubai International Airport and BIA and to convey them in the business. Albeit conventional markets and souks exist in United Arab Emirates, most imported products are disseminated through cutting edge retail locations and store chains spread all through the nation. The Lebanese business is for the most part portrayed as being free and value delicate. Deals material can be in English, French or Arabic. Numerous European and Asian brands brought into the business have figured out how to win a significant piece of the pie. In any case, as an aftereffect of the quality of the euro over the US dollar, nearby merchants are searching for option markets to source less immoderate products that are customarily obtained from Europe
ReferencesAl Halaseh, L., & Sundarakani, B. (2012). Study on quality attributes of halal food supply chain. International Journal of Logistics Economics and Globalisation, 4(1), 20-34.
Alexandersen, S., Kobinger, G. P., Soule, G., & Wernery, U. (2014). Middle East respiratory syndrome coronavirus antibody reactors among camels in Dubai, United Arab Emirates, in 2005. Transboundary and emerging diseases,61(2), 105-108.
Aslam, J., Khan, S. H., & Khan, S. A. (2013). Quantification of water soluble vitamins in six date palm (Phoenix dactylifera L.) cultivar’s fruits growing in Dubai, United Arab Emirates, through high performance liquid chromatography. Journal of Saudi Chemical Society, 17(1), 9-16.
Boughanmi, H., Al Shidhani, J., Mbaga, M., & Kotagama, H. (2009). The effects of regional trade arrangements on agri-food trade: an application of the gravity modeling approach to the Arab Gulf Cooperation Council (GCC) countries. Review of Middle East economics and finance, 5(3), 46-62.
Cheshire, L., & Woods, M. (2013). Globally engaged farmers as transnational actors: Navigating the landscape of agri-food globalization. Geoforum, 44, 232-242.
u08a1 Project Development
u08a1 Project Development
Timothy Anthony
BS Psychology
POL-1000 The Politics of American Government
Winter 2011
HYPERLINK “mailto:tanthony1@capellauniversity.edu”tanthony1@capellauniversity.edu
Professor Neil Kraus
Impeding Medicare Problems
Introduction
Medicare is a health insurance program for people with 65 year of age and above, people under 65 years with certain disabilities and people of all ages but with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant). It constitutes three parts, namely; pert A (hospital insurance), part B (medical insurance) and “prescription for drug coverage”. Medicare has two sources of funding as Academy of Actuaries, (1996 p. 6) explains. The first and the major source is the allocation from the federal budget while the rest of funding is derived from deductions from social security funds and its premiums. Recently, Medicare has not been receiving sufficient funding from the above sources. Consequently, this program has encountered financial and other operational problems that have left its budget in huge deficit. There seem to be minimal actions to taken by responsible organs mitigate the impacts of these problems, leaving the future of this program at stake. This paper addresses some of these problems and the impact they have to the beneficiaries of Medicare program. In addition, it provides and suggests solutions that could be put in place to arrest the situation affecting Medicare program.
Medicare problems
Owing to the impeding problems, the Medicare program is not going to be sustainable in the near future unless significant measures are taken. To start with, the current funding of beneficiaries by this program does not take into consideration the diversity existing within the senior citizens population. As McKenzie, J. F et al (2008, p 445) explains, it allocates Medicare benefits equally to the senior citizens who are 65 years and above. As such, this plan fails to consider that there are differences in health care needs for the senior citizens aged 80 from those who are 65 year of age. To be more specific, there is likelihood for a person aged 80 years to experience health problems more than a younger person aged 65. As a result, this plan is unfair not to the recipients alone but even to the doctors who offer these medical services.
According to McKenzie, J. F et al (2008, p 445), as the number of senior citizens who are retiring increases, the health care costs have been rising rapidly. Similarly, Medicare liabilities have been escalating with time. At the same time the funding of the health care benefits from the employers is decreasing with even some abandoning it. It is possible that people are going to lose as it becomes more and more expensive. According to the 1995 trustee report, (as cited in American Academy of Actuaries, 1996 p. 6), “in the 35 years (from 1995), the Medicare program income will be sufficient to pay only 47% of the program’s cost and only 35 % of its costs over the last 25 years of that period if the current trend persists.”
It is possible to sustain the Medicare program services intact through the support of the federal budget. But as McKenzie, J. F et al (2008, p 445) explains, the federal budget is already experiencing crises with the existing liabilities of this program and there is no likelihood of such choice in the near future. As the rate of healthcare spending increase, policy makers and third party payers will be forced to evaluate new cost-control solutions. As American Academy of Actuaries, (1996 p. 13)explains, legislators are already considering to effect cost cutting measures in future such as reduction of the number of people receiving benefits, reduction of the costs to the government and reduction of costs per beneficiary. Of course, this will have a great negative impact on the traditional delivery of health care.
According to Mechanic, D., (2006 p 19), the supplementary Medicare insurance program does not have a separate payroll tax. Rather, it is financed through contributions from general revenues of the federal budget and direct premiums from the participants of this program. Thus, the funding of this program is determined every year. This translates into inadequacies in financing this program. In the next 10 years, the expenditure for this program is expected to triple. This will have a big impact on the federal budget
Solution
Media coverage can help to bring awareness and tress more about the problems facing this program to people. Through the media can we can be able to solve these problems by clearly bringing out the causes of the existing problems in this program to the American society. Of course, Medicare program benefits and is expected to benefit a great number of American citizens. Therefore, increased sensitization of this matter to the people is likely to easily elicit reaction from a bigger section of the society. This will help to push the government to play its relegated role in setting up policies that focuses on supporting Medicare program. Viable strategies by the government to strengthen this program will give assurance health safety future for all Americans now and in future, (Mechanic, D., 2006, p 19)
Suggestions
One of the options to address the problems facing Medicare is to increase age of eligibility, (American Academy of Actuaries, 1996 p. 6). Currently, the retirement age of Americans is 65. The normal retirement age for social security funds is scheduled to increase to age of 67. The main purpose of establishment of Medicare program was to provide benefits to individuals after retirement. It will thus be advisable to raise the age of eligibility for Medicare benefits to be consistent with the normal age of retirement. Though a significant number of those who retire early may not be covered by health insurance, this will help to eliminate a significant amount of already existing deficit. However, if the age of retirement and also age of eligibility for Medicare benefits increase to say 70 years, this would help to eliminate much of the existing Medicare deficit if not all.
The second option to deal with the problems facing Medicare benefits is to eliminate some coverage services. Currently, Medicare is limited to deal with services that are necessary for the treatment of illnesses or injury, (American Academy of Actuaries, 1996 p. 6). But, some of the services involved could be considered unnecessary for the treatment of injuries or diseases. hospital insurance for health care agencies and nursing homes as well as the supplementary medical insurance payments meant for durable medical equipments can be terminated and help to solve at least two-fifths of the existing Medicare deficit.
Another suggestion is to increase share of costs for the beneficiaries. This means that the beneficiaries’ can be increased as much as to help eliminate the existing deficit. As American Academy of Actuaries, (1996 p. 6) explains, this can be achieved through increment of coinsurance and deductibles. If the increased sharing of costs is not covered by insurance, it means that there will be likelihood of reduced utilization. However, the savings form the utilization would be relatively small and affect supplementary medical insurance more. Financial problem facing Medicare may be mitigated by increasing recoveries from other insurance. Currently, Medicare is seen as a minor player to other forms of health insurance veteran administration benefits, workers’ compensation and employer-sponsored insurance. Stricter focus of Medicare as a secondary player by the present law compared to the others may help to reduce Medicare costs, (American Academy of Actuaries, 1996 p. 6)
Another suggestion is to growth of overall payments or to reduce the rates of repayment to the providers. Efforts by policy the government to constrain reimbursements have proved inadequate for restoring Medicare solvency, (American Academy of Actuaries, 1996, p. 6). To achieve this objective, major reductions in the growth of Medicare payments would be required that could disrupt the providers severely. For example, a 1% growth in hospital reimbursement for each of the next 10 years will help to maintain solvency over 10 years. Such a change will be more effective if it is consistent the overall health reimbursement policy and also the practices of other players.
Conclusion
Medicare is and will remain being a popular program among the citizens. But the problems facing this program will be there both in the short and in the long-run if not addressed adequately and quickly. As the senior citizens retiring increases, costs associated with Medicare will continue to rise. Eventually, this will have a dire effect to the recipients and to the government. This explains why this program requires immediate action to its income and outlays into balance. The public can help a lot in achievement of this end. Of course, this will require increased sensitization about what is happening to this program. The media can help a lot to reach to the public and stress this information to them. Still, to deal with financial problem affecting Medicare, there are various different options that can be employed. It is therefore the duty of the government to evaluate the many available options, put them into practice and save this program.
References
Mechanic, D., (2006), the need for change and the forces against it, The truth about health care:
why reform is not working in America, Rutgers University Press, Piscataway
American Academy of Actuaries, (1996), Solutions to Medicare financial problems, public
policy monograph, American Academy of Actuaries publications, Washington DC Retrieved from http://www.actuary.org/pdf/socialsecurity/socsec_m.pdf
McKenzie, J. F., Pinger, R. R. & Kotecki, J., E., (2008), problems with Medicare and Medicaid,
An introduction to community health, Jones & Bartlett Learning, London