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The effectiveness of Budgeting and Budgetary control in Business Organizations A case study of ADV Telecoms

“The effectiveness of Budgeting and Budgetary control in Business Organizations: A case study of ADV Telecoms”

Introduction

A budget is a master document prepared by organization outlining how funds will be sourced and then later used. A budget is just a guideline and is not a must that actual revenue and expenditure must tally with the estimates of the budget. For this reason it is possible that an organization may find use of budget effective or ineffective in its operations. It all depends on the mechanisms that the organization has put in place. It is for these and other reasons that I am planning to carry out this research. Budgetary control on the other hand is management’s exercise of authority over implementing the contents of the budget. Control is vital so as to help the organization realize or achieve its set objectives (Bourne, 2002).

Since it is not possible to study all organizations in Australia, am going to use ADV telecom as my case study. ADV telecom is an Australian telecommunications company that has its headquarters in Australia and branches in the USA, UK and Canada. Its products include call termination, broadband phone, calling cards and hoisting IPBX. Since its inception ADV has positioned itself as an innovative, quality oriented and affordable telecommunications company in Australia. Results obtained from this research may be applicable to all organizations regardless of their size, activity, level of production, number of years in business and etc.

Research problem

The research problem of this dissertation is to critically analyze the effectiveness of Budgeting and Budgetary control in Business Organizations with special reference to Australia’s ADV telecom.

Research question

In this dissertation proposal, am going to explore three major research questions. These are the questions that I hope will help me come up with concrete and valid results of this particular research. These are as follows:

To what degree does ADV telecom embrace Budgeting and Budgetary control in its operations?

How effective/ineffective has been Budgeting and Budgetary control in ADV telecom’s operations?

Does budgeting and budgetary control practiced in ADV telecoms result to lack of initiative and innovativeness, and if so, why

Has Budgeting and Budgetary control helped ADV telecoms realize its objectives?

Literature Review

This particular part of the research will examine in length the existing literature on Budgeting and Budgetary control in Business Organizations. This will start from earlier writings of Management gurus, contemporary world and the latest developments of this important topic. The stand of management authors will also be looked into.

For a long time, the effectiveness of traditional Budgeting and Budgetary control in Business Organizations has been questioned by many authors in the subject. For instance a recent study by Stevens (2000) came up with very interesting findings. Stevens explored not only the extent to which organizations embraced traditional budgetary requirements in their organizations but also the validity of this phenomenal in modern business culture. He found out that business organizations had invested heavily on IT infrastructure, wide range of management tools, activity accounting and business process re-engineering. Even with these new advancements, Stevens found out that Budgeting and budgetary control process remained predominantly the same. In addition he realized that some organizations may have failed due to break down of corporate ethics which was brought about by use of budgets to force realization of certain goals. On the same note a study by Daum found out that traditional budgeting process is not effective because it disempowers the staffs that are in the front line, accelerates down the organization’s response to new market developments and does not encourage information sharing.

Writing on the same topic, Daum (2002) commented that traditional budgetary process is increasingly becoming an unnecessary obstacle in business rather than a road to progress. Daum says that budgeting has been seen as taking too long, too complicated and inflexible. This literally means that we can not adapt fast enough to new market trends like economic trends, changes in tastes and preferences and even adapting to competitor’s strategies.

Conceptualization

This section covers the concept of effective budgeting and budgetary control systems associated with companies. As per the research questions; the extent to which ADV telecoms has embraced budgeting and budgetary control systems as well as the impact of budgeting and budgetary control systems in an organization. This part shall discuss the impact budgeting and budgetary control has on the competences of an organization. The competitiveness of an organization can be identified as a function of budgeting and budgetary control. ADV telecoms competitiveness depends entirely on the level of its initiative and innovation. At the same time ADV telecoms like other organization innovation and initiative are constrained by the control culture, external environment, and task/ industrial factors. For the purpose of this study, behavioral implications which are either positive or negative resulting from ADV telecoms organizational structure and budgetary management control culture will be looked at.

Organizational structure

Organizational structure is the hierarchy that facilitates the three levels of interpersonal relationship in an organization namely, upward, downward and horizontal. The organizational structure of an organization affects the effectiveness of budgeting and budgetary control systems. Which top management makes the budget together with the subordinate the company nay end up incurring more expenses hence making the budget ineffective? On the other hand when top management acts authoritatively in budget planning the subordinated lack a point for then to also claim for the share of participating in planning for resources hence the organization saves on this wise (Daum, 2002). ADV telecoms budgeting and budgetary control systems rely on this aspect for it to be competitive.

Behavioral issues

Budgeting is also affected by behavioral issues because human factor is involved in the entire process of its preparation. The interaction of people in budgeting process has got two behavioral issues namely; (Daum, 2002).

Designing the budget process where it is identified who should be involved in the planning and budgeting process and the standard to which the budget should be set to have a positive impact on people’s motivation and performance.

Influencing the budgeting process. How do people try to change the budget and manipulate it towards their own ends?

Management style

Another factor to consider in effective budgeting and budgetary control in an organization is management style. Organizations which have inflexible and slow management styles result in ineffective budget development where as organizations which is flexible promotes and encourages an organizational culture of control, Voluntary coordination and novelty (Bourne, 2002). This section has dealt with concepts associated with effective budgeting and budget control systems in an organization. Those concepts will continually be referred to when the researcher’s shall be studying the effectiveness of budgeting doing budgetary control systems in ADV telecoms case study.

Methodology

In-depth interviews

Primary data will be collected through in-depth interviews with employees of ADV telecoms who are involved in preparing budgets and other management level employees (Potter, 2006). Both structured and non structured interview techniques will be employed and will take the form of friendly discussion at ADV telecoms. To ensure that the interview takes the required direction i.e. does not deviate from the intended purpose, the interviewer will be guided by a set of basic questions on the topic of research. However, through the discussion flexibility and necessary deviations will be maintained to keep the environment friendly and comely. In-depth interviews shall be conducted so that the researcher can understand properly the existing budgeting and budgetary control systems at ADV telecoms (Potter, 2006). Some selected respondents who shall include heads of budgets, senior manger in network planning department, project planning and budgeting division’s manger, and chief engineer in charge of innovations shall be selected from ADV telecoms and interviewed separately by oral means for about one hour each. In addition to the above respondents, senior manger in networking and planning and other manager who are responsible for spearheading company development and are involved in providing necessary information on capital budget shall be interviewed so that more information the topic of study is achieved. To enrich discussions all the interviews shall be recorded instead of taking notes during the interview sessions. Key information which shall be gathered shall include budgeting and budgetary control processes of ADV Telecoms Company, problems encountered by project manages in implementing the budgetary process and how budgeting and budgetary control process impact innovations and initiative in the company(Potter, 2006).. The in-depth interviews were selected as tools of collecting qualitative data because of its ability to gather personal information and views and other relevant information concerning budgeting and budgetary processes without bias. And because the study investigates behavioral aspect of budgetary and budgeting control, the data collected from each respondent shall be subject to personal bias (Davila, T, et.al, 2005). Therefore to avoid gathering wrong information, the interviews were conducted in a manner to scrutinize the validity of the information gathered from different parties.

The results from the interview shall provide plenty of information and an in-depth understanding of the prevailing conditions around budgeting and budgetary control at ADV telecoms organization. In-depth- interviews are also expected to assist in collecting extra information that is relevant to the characteristics of respondents and the environment which often are important in interpreting the results. Any unsystematic raw data which will be collected will be edited and arranged so that errors and omissions are detected. Incase further r clarification will be required, relevant respondents will be contacted as will be found necessary. Finally, the findings will be complied and then analyzed.

Participant observation

Another qualitative method of data collection which shall be used in data collection on effectiveness of budgeting and budgetary control at ADV telecoms is participant observation. As the name depicts, this is a way of collecting information from the target group trough observation (Potter, 2006). The researcher participates in all the activities of the individuals being observed rather than just being an observer. The research has got two roles that of an observer and participant. According to the research question “the effectiveness of budgeting and budgetary control in ADV telecoms limited organization, information can best be gathered by the researchers being involved in budgetary activities of ADV telecoms so that they may realize the effectiveness of the organizations budgetary process and its effectiveness. By participating the researcher will be able to know the three qualitative aspects of budget approach which include authoritative, consultative, and participatory (Potter, 2006). The researcher will participate in ADV telecoms budgetary meetings and seminars so that they will be able to get “emic” perspective of ADV telecoms concerning the effectiveness of budgeting and budgetary control systems practiced in that organization. During participation the researcher shall conduct minor interviews based on open ended questions and collect all relevant materials that shall be found useful for data set up. Participatory observation also enables the researcher to build good relationship with the staff members and this improves the interaction hence more information can be extracted concerning the budget by observations of the relationship between the budgetary team and the management team(Potter, 2006).. To collect enough information by using this kind of tool, the researchers will ensure that they attend all financial, social and any meeting relevant to discussing the effects of budgeting and budgetary control systems available at ADV telecoms. Participatory observation qualitative method of collecting raw data is one of the best methods for it gives the researcher a chance to examine the subject behaviors, make notes as well as make conclusions which are not influenced by the subjects(Potter, 2006). Thus this kind of method is the best especially where sensitive are like finances and budgets are discussed.

The researcher must be careful so that he/she may not be influence and loose objectivity by going native. Generally participatory observation method engages the researcher in the activities of the case being studied and enables the researcher to try to learn the kind of life in the organization as an “insider” while remaining an “outsider”. The researcher shall make objective notes in the field note book, record all the informal meetings and interaction with the workers of ADV telecoms and also record al the information communicated through mass media (Potter, 2006).

Participant observation shall provide the researcher with the understanding of the operations of ADV telecoms in the line of budgeting and budgetary control systems practiced their. This method will also enable the researcher to understand other factors which were not known when the research was being designed. This will be a boost to the research since the research will provide the exact situation as it is at the budgetary department of ADV telecoms and data will be analyzed so that the conclusions derived at will be accurate and relevant.

Qualitative content analysis

Qualitative content analysis is a method of analyzing written, observed, verbal or even visual communication data. It is mostly used in arts and social sciences where qualitative data collection method is widely applied. This method was for the first time used to analyze newspapers, hymns and magazines. Qualitative content analysis is an objective and systematic means of quantifying and describing otherwise qualitative phenomena. Using this method the researcher is able to test theoretical issues to understand the data collected. By grouping a given qualitative phenomena with same characteristics, it becomes possible to analyze it the same way you could do to quantitative data (Mayring, 2000).

In this particular research, I am intending to use this method to some degree so as to help me get some information on qualitative aspects of this project that can not be quantified. Such data will cover issues to do with employee’s attitude towards use of Budget and budgetary control, employee satisfaction, how effective has it been in addressing these concerns among other phenomena’s. In order to effectively realize the potential of this method I will do it step by step, taking the necessary precautions so as not to fail mid way.

The first step will consist of collecting data on the various issues that I would like to address. Of course this will be deduced from the research questions. Data will be obtained from both primary and secondary materials. This will include interviews, opinions, attitudes and even observations made to my respondents in this survey (Berg, 2001). For example I may ask the finance manager as to what degree does he conform to budgetary requirements of the organization? Similarly an employee may be asked to give opinion on how budgeting affects him or her. After collecting data the next step will be to define the unit of analysis that I‘d like to use. All the data whether in the form of sentences, words or even paragraphs will need to be unitized before they are encoded. This is to make the analysis and comparability of findings easier. It is important to note here that under qualitative analysis we use themes rather than physical linguistic units to encode information (Berg, 2001).

The third step will be to categorize the themes and coding scheme. This will involve placing the themes in categories according to how they share characteristics or what I want to achieve. This can be done both deductively and inductively using three major criteria which are earlier studies, relevant theories or better still the data I will have collected. To ensure consistency I will develop a coding manual which among other things will define category names, rules for assigning codes and examples. Next I will pilot test the system just to be sure that everything is in order and will output the desired information. If the coding system proves to be valid and working I will go ahead with my research otherwise I will revise everything or make necessary amendments to avoid arriving at invalid results (Mayring, 2000).

The fifth step will be to code all the text that I will have collected for subsequent analysis. During this process I will try and avoid “drifting into an idiosyncratic sense of what the codes mean” (Schilling, 2006). I will also maintain an open and flexible mind so as to accommodate any new developments that may emerge. When am through with this I will proceed and analyze my data to get the answers to my research questions.

Finally I will draw my concusions from this and proceed ahead with reporting the findings of my research. Qualitative content analysis together with the other two methods are an indispensable tool in conducting researches related to social sciences owing to their nature, thus all efforts should be made to perfect it and enhance our research horizons.

References

Berg, B.L. (2001). Qualitative Research Methods for the Social Sciences. Boston: Allyn

and Bacon publishers

Bourne, M, (2002), New Departures in Planning and Budgeting

Daum, J H, (2002). Beyond Budgeting: A Model for Performance Management and Controlling

in the 21st Century, Controlling and Finance.

Davila, T, et al, (2005) “Managing budget emphasis through the explicit design ofconditional

budgetary slack”, Accounting, organizations and Society, Volume 30,

Mayring, P. (2000). Qualitative content analysis. Forum: Qualitative Social Research,1(2). Retrieved July 28, 2008, from HYPERLINK “http://217.160.35.246/fqs-texte/2-00/2-” http://217.160.35.246/fqs-texte/2-00/2- 00mayring-

e.pdf

Potter, W. (2006). An analysis of thinking and research about qualitative methods. Mahwah: NJ.Lawrence Erlbaum Associates.

Schilling, J. (2006). On the pragmatics of qualitative assessment: Designing the process

for content analysis. European Journal of Psychological Assessment, 22(1), 28-37.

Stevens D. E., (2000). Determinants of Budgetary Slack in the Laboratory: An Investigation of

Controls for Self-Interested Behavior, New York: Willey and sons

The Effect the Arab Spring on Education in Egypt

The Effect the Arab Spring on Education in Egypt

Name of the Student

Name of the Institution

Introduction

The wave of Arab revolutions (also known as Arab spring) started in December 17, 2010, in Tunisia and later spread to other Arab countries. The Arab Spring spread to Egypt in January 2011 (Andersson & Djeflat, 2012). Hosni Mubarak’s regime had lasted for 30 years, and had enjoyed remarkable stability over the period. Although there had been instances of protests prior to the Arab spring, mass protests led by the Muslim Brotherhood against Mubarak’s regime started on 25th January, 2011. After 18 days of protest, Mubarak was forced to step down on 11th February 2011 (El-Bendary, 2013). The protests were mainly caused by Mubarak’s authoritative approach to governance that was supported by unsustainable economic and political system. Many Egyptians aspired for a new government that would restructure the economic and political system that had become ineffective (El-Bendary, 2013). When Mubarak took office in 1981, his government helped to revive education system in Egypt through massive investments. During his tenure, his government attached importance to education and recognized that every person has a right to education. However, Mubarak’s authoritative approaches created more problems to Egypt’s education system, which had become acute by 2011 (El-Bendary, 2013). Many of the problems that the education system has been facing were caused by poor policies of Mubarak’s government. As a result, the quality of education in Egypt suffered a major backdrop during Mubarak’s era. As such, Egyptians aspired for a new government that would come up with better policies that would provide adequate support to the education system and come up with solutions to the existing challenges.

The government of Muhammad Morsi that took over from Mubarak promised to solve the problems. Morsi’s government made some reforms to education before June 2013, when he was ousted by the military after mass protests against his authoritative moves (El-Bendary, 2013). However, the education system required massive reforms, most of which Morsi’s government was unable to achieve. The interim government that took over from Morsi has continued supporting reforms in Egypt’s education system, although the achievement has not been very significant due to some limitations. The purpose of the essay is to explore the effects of the Arab Spring on Egypt’s educational system. In particular, the paper examines the challenges that the educational system in the country has been facing and the impact of post-Mubarak leadership policies on education. Before engaging on the main topic, the paper presents an overview of education in Egypt from a historical perspective. The paper explores the role of religion and previous rulers on education.

Overview of Education in Egypt

The current status of the Egyptian education system has been impacted by several historical factors. Different leaderships and their policies have had the biggest impact on Egyptian education system. Another major factor that has had a major influence is the Islamic religion. Education is Egypt has a very long history. As early as 2686BC, writing was one of the major aspects that were used to express Egyptian culture and to transfer culture from one generation to another (Hefner, & Zaman, 2007). The period was followed by Unification of the Lower and Upper Egypt, giving rise to the rule of Pharaohs. The Age of Pharaohs lasted for many centuries and ended in 525BC after invasions. During the period, writing was still part of the culture of Egyptians (Hefner, & Zaman, 2010). As early as 323BC, one of the first and most extensive libraries in the World was already established in Alexandria, Egypt. People with interest in learning about Egyptian culture and historical issues accessed written materials from the library. The library remained as the main destination that offered scholars opportunity to learn in a well organized setting, until 30BC, when the Romans invaded Egypt (Hefner, & Zaman, 2010). The Romans managed to conquer the Egyptians and to rule over them until 640AD, when the Arabs invaded Egypt. The Arabs conquered the Romans and exercised influence over Egyptians in social, cultural and economic dimensions. The Egyptians dropped Christianity that had been introduced by the Romans and shifted to the Muslim Culture. Egyptians started adapting to the Arabic language Brought by the Arabs (Hefner, & Zaman, 2010).

Remarkably, the Arabs brought in new influences in education in Egypt. Prior to the entry of the Arabs, there were rare cases of housed formal education in Egypt. When the Arabs arrived, they established formal housed education, which was taught in temples (Hefner, & Zaman, 2007). The subjects that were taught in the temples included the arts, medicine and sciences. In 972AD, the first university in Egypt was established, called the Al Azhar University. The university followed a system that was based on Islamic religion. In particular, the methodology of teaching in the university was based on the principles of the Quran (Hefner, & Zaman, 2007). The system that was established then laid a ground for the religious education that is still present in Egyptian schools today. Egypt was ruled by dynasties from 868 to 1260, when Turkish tribes invaded and took over ruled until 1517. Unlike the Islamic rulers, the Turkish rulers placed little emphasis on education. In 1517, the Ottoman Empire conquered the Turkish rulers and ruled until 1798. Like the Turkish rulers, the Ottoman Empire did not put emphasis on education. The French invaded Egypt and Napoleon exercised his power between 1798 and1801. Although the French exercised their power over a short period of time, Napoleon sensitized the Egyptians about the importance of education. As a result, various several leaders emerged after Napoleon, who took education seriously (Hefner, & Zaman, 2010).

The first leader who put emphasis on education in Egypt was Muhammad Ali, who ruled from 1805 to 1848. One of the most remarkable contributions of Ali in education was the creation of a ‘dual education system.’ The ‘dual education system’ still exists today (McCulloch & Crook, 2013). He managed to revive the Islamic education system that had suffered severe backdrop under the previous rulers. Ali had a vision for Economic growth of Egypt. However, he realized that the Islamic education system did not support economic growth. As such, Ali decided to create a parallel secular system that could support his visions for economic growth. He relied on advisors and the European models to create the new system. The parallel system was fully funded by the government. Ali started a higher education institution that mainly offered education to the leaders and military elite (Cook, 2001). Philosophy was the main course offered in the higher education institution. The education offered in the institution was designed to support the economy of Egypt and to develop future leaders. After successfully establishing the higher education system, Ali created the primary and secondary education systems as well. The main aim of establishing the primary and secondary education systems was to develop knowledgeable citizens who would support economic growth. During the period, Ali also came up with many other economic plans. For instance, the Suez Canal was opened during his leadership. The opening of the canal made Egypt strategic important in the global economy. Ali took advantage of the situation through establishing dominance of Egypt in the Suez Canal.

The Ottoman and British saw Ali’s economic plans as a threat to their economic plans. As a result, their moves impeded Ali’s efforts to support the economic growth of Egypt. Eventually, the Ottoman, the British and other countries signed agreements that broke up the dominance of Egypt on the Suez Canal (McCulloch & Crook, 2013). As a result, the influence of Ali on the Economy of Egypt declined. The economy of Egypt started declining, making the second education system created by Ali obsolete. Leaders who came after Ali did not put as much efforts as his. They did not commit a lot of resources on education like Ali.

Ismail was the next leader who put some efforts on education in Egypt. Ismail led Egypt from 1863. One of his remarkable efforts was re-opening of the “Committee of Public Instruction,” an agency that was established by Ali but closed due to lack of financial support. In addition, he added support of the government to education, but his efforts were hampered by economic challenges that hit Egypt, leading the country’s economy to become bankrupt. The challenges that faced Egypt during the period paved way for the entry of the British in Egypt. One of the significant aspects of the British entry in Egypt is the British Occupation that started in 1882. Egypt was colonized by the British, led by Evelyn Baring, who ruled the country (Sayed, 2006). When Baring (also called “Lord Cromer”) took power, his focus was to re-establish the economy of Egypt. In other words, he did not pay attention to education. In fact, his intentions were to develop leadership that world enable the British to stay in power. In order to support his plans, one of his strategies was to keep the locals illiterate to minimize their ability to overthrow the British rule. At the same time, they created a few loyal Egyptian elites who helped to support their power structure. The Egyptian elites supported the British rule because they were indebted to the British for their own success and social standing (Sayed, 2006). The British colonial rule had a major impact on the Egyptian population. To start with, the population rose from 7 million to around 11 million people between 1882 and 1907. At the same time, the colonial leadership did not invest in education (Cook, 2009). As a result, only 5 percent of Egyptians were literate by 1922. Although Egypt was given independence in 1922, the lack of investment on education by the British rule had a major negative impact on the overall societal development.

Immediate leaders after independence did not put much effort on education. One of the main reasons is that they inherited the policies that had been established during the British colonial rule. Significant support for education started in 1950s, through the efforts of Taha Hussein. Hussein was a blind Minister of Education. Hussein believed that every individual had a right for education and thus, he fought for literacy relentlessly (Mazawi, 2002). He increased financial support for education and established free education for all. Hussein is hailed as the leader who made a major step in reviving education in Egypt during the 20th century. Gamal Abdel Nasser, who took leadership in 1954, continued supporting education. Nasser’s leadership focused on providing support to social welfare organizations. During his tenure, he attached importance to free education for all. He established programs that included students from other countries. Nasser’s government provided support to both secular and Islamic education. Nasser’s government guaranteed employment to all college graduates (Mazawi, 2002).

Anwar Sadat, who had served as minister in Nasser’s government, shifted Egypt’s priorities during his tenure. Sadat led Egypt from 1970 to 1981. His government focused on liberalizing economic policies. To support his goal, he established a program called Open Door Policy. Sadat’s government did away with guaranteed government employment for college graduates. The move led to a high level of unemployment for college graduates. Although Sadat’s government opened many new higher education institutions, the salary for the teaching staff remained very low. As a result, lecturers started looking for employment in other countries (Starrett, 1998).

After Sadat’s assassination in 1981, Mubarak took over leadership in 1982. Initially, Mubarak made lucrative plans to support education. In his plan named “the Grand Revival,” Mubarak laid out strategies to revive education, among other social welfare aspects. Although he made some efforts top support education initially, his controversial authoritative regime has created more problems than benefits to country’s education system.

The Key Challenges and Expectations after the Arab Spring

There are many pressing challenges that the Egypt’s education system has been facing. One of the key challenges is the lack of adequate infrastructure (Acedo, Adams & Popa, 2012). The population rate in Egypt has been growing rapidly over the last three decades. By 2011, the young people below fifteen years constituted 32 percent of the country’s population. As a result of high growth rate of young population, enrollment rates in schools at all levels have been rising constantly (Acedo et al. 2012). However, the government of Mubarak did not respond appropriately to the issue. In particular, Mubarak did not invest adequately in adding school facilities to counter the problem. As a result, the number of secondary and primary schools available were fewer than the demand, by the time Mubarak was ousted. The problem led to overcrowding in classes. In addition, the existing public schools had poor facilities. Many public schools did not have essential facilities such as laboratories, art rooms, playgrounds and music rooms. Lack of quality facilities in schools has, for a long time, affected the performance of both the students and the teachers. The students have been aware that the teachers are not to blame for the lack of quality education in schools (Acedo et al. 2012). In a fieldwork conducted by Sarah Hartmann in 2011, students explained that lack of adequate facilities in schools was the major factors that affected their performances ((Acedo et al. 2012).

When the new government led by Morsi came to power in 2011, one of main agendas was to solve the problem through adding more school facilities to accommodate the high number of students enrolled. Precisely, Morsi’s government injected additional capital to build more primary and secondary schools, as well as higher education institutions. In addition, the government of Morsi injected more capital aimed at adding facilities and improving the existing one in schools (Alayan, Rohde & Dhouib, 2012). However, Morsi adopted authoritarian leadership style that led to a backdrop of the economy of Egypt after Mubarak. As a result, the government budget has been under strain. In the year 2011-2012 budget, for instance, there was a deficit of 8.6 percent. As a result of limited resources, the government has been facing difficulties in giving adequate support to the schools.

Another major challenge that the Egyptian school system has been facing is the lack of quality teaching in public schools and dependence on private tutors. The main reason for the poor quality of teaching is the lack of adequate remuneration to the teachers. By 2011, teachers employed by the government at all school levels hardly earned more than US$281 (LE1, 600) a month (Alayan et al., 2012). The low pay rates highly reduced the morale of teachers and consequently, this led to low quality output. In addition, the government has not been supporting teachers’ training appropriately. The problem was compounded by the fact that Mubarak’s government employed unqualified teachers to curb shortages in the public schooling system. After the entry of a new government in 2011, the ministry of education made improvement in teachers’ training as one of the agendas to be met (Topi & Tucker, 2014). However, the there has been little in the achievement of the goal so far. Currently, majority of the teachers, especially in the primary and technical education are untrained (Topi & Tucker, 2014).

The poor quality of education in public schools and lack of adequate support to the teachers has led to the rise of an ‘informal sector’ that aim at filling the gap that is left by the public schools. A report produced by the Egypt’s Central Statistics and Mobilization Agency in 2011 indicated that the locals spent 60 percent of their investment in education on private tutoring. The problem with private tutoring is that it is expensive and thus, it leaves students from poor families in disadvantaged situations, in relation to their classmates. In this regard, the formal education sector has been contributing to the social stratification and inequalities in access to quality education (Alayan et al., 2012). In addition, the teachers employed in the formal education sector have been engaging in private tutoring to support their salaries. Engaging in private tutoring has led to conflict of interests; supporting the students to excel in the public schools would mean that they would not seek for additional services from the private tutors. As a result, the teachers have been reluctant to provide quality education within the public schools.

In her 2011 fieldwork study, Hartmann noted that the teachers in many primary and secondary schools did not bother to provide their teaching services the whole lesson. Hartmann noted that some teachers just introduced subjects superficially in classes and expected to provide elaborate details during private lessons. According to Hartmann, the private tutoring has also led to high rate of absenteeism in schools. Hartmann learned that the main cause of private tutoring is lack of adequate compensation to the teachers. According to Hartmann, most primary school teachers by 2011 were paid between US$17.41 and 59.69 a month. The teachers expected the new government after Mubarak to improve their salaries. Morsi’s government took the issue seriously and promised to increase the payments for teachers at school levels. During the year 2012, for instance, the Morsi’s government awarded allowances to teachers employed by the state. As a result, teachers are allocated allowances that are equal to their basic salaries. However, the government was initially reluctant, and the increment only came after a series of protests by the teachers. The interim government that took over after Morsi has also put the increment of salaries of teachers as one of the major priorities (Topi & Tucker, 2014).

Another major challenge that has been facing Egyptian educational sector is over-centralized control. The government of Mubarak recognized that every citizen has a right to education. As such, the government has been exercising a dominant role on education with the aim to enhance accessibility and affordability to all citizens. In 2003, Hussein Kamel Bahaeddin, the then minister of education explained that the main reason for the high level of control was to ensure a minimum common level of socialization and enculturation (Harrigan & El-Said, 2009). This explains the fact that the government of Egypt has been spending a lot of funds in education. A report produced by the World Bank Report in 2002 indicated that the government of Egypt spent 8.8 per cent of GDP on education. The average spending was higher than in OECD countries, which was 4.6 per cent of GDP by 2002 (Harrigan & El-Said, 2009). The ministry of education has been exercising dominance in education through issuing specific lesson plans for schools to follow and through controlling the curriculum. As a result of the tight control, the teachers are unable to teach materials that are not included in the lesson plan. In addition, they have limited ability to structure the progress of their classes to fit specific contexts. The ministry of education has also been providing specific learning materials to be used in schools. The teachers are not allowed to use materials that are not approved by the state. The content of the learning state-approved materials have been highly politicized, and are designed to inculcate specific understandings and values ((Harrigan & El-Said, 2009). Egyptians expected the post-Mubarak government to reduce the state-control over education offered to students. When the government of Morsi came to power, the first step in reducing government dominance was to remove content in materials that focused on passing specific political understandings and values to the students. In March 2012, for instance, the ministry of education announced that it was going to cut roughly 20 percent of the content in education materials at all levels, which paid attention to the legacy and achievements of the National Democratic Party (Topi & Tucker, 2014).

In addition to controlling the content of education, the government of Egypt has been giving standardized and centrally administered state examinations. All students are required to pass the exams in order to progress t the next level (Acedo et al., 2012). Sometimes, the exams are also politicized. Despite the promises of the new government to reduce direct control over the content of education, Morsi’s government continued influencing the content of exams. For instance, in end-year 2011 exams, students were given a compulsory question in which they were required to write a letter thanking Supreme Council of the Armed Forces for the support during the revolt that started in 25th January. Although the interim government that has taken over after Morsi has not been engaging in such activities, it has done little so far to reduce the influence of the government on the content of education and exams. There is need for additional changes to the education system to reduce such control to the content of education (Topi & Tucker, 2014).

Another major problem facing the education in Egypt is increased focus of learning for examinations. In particular, pedagogical approaches and methods to teaching in Egypt are problematic. During Mubarak’s tenure, the teaching methods and approaches shifted focus from the subject matter, to rote-learning and memorization. In other words, the focus has been on passive learning, with little focus on the fundamental impact of education to the students. The problem has been compounded by the lack of adequate facilities, equipments, library books and other learning materials. Consequently, students in many cases lack both educational and physical stimulus. The lack of engagement on subject matter has long-term impact on their levels of attainment and concentration (Alayan et al., 2012). The students themselves have noted the weakness and have been critical of the teaching approach. In an interview conducted by Noha El-Hennawy on students who had moved from national primary school in Egypt to international primary school in Canada, the students recounted that they appreciated education in the international school more than the national school. The students stated that in the national schools, their role was only tom go home and memorize facts, whereas in the international school, they had to concentrate and revise (McCulloch & Crook, 2013). The students stated that in the national school systems, they had to learn so many things that they would not need in life, whereas in the international school, they were taught staff that they could retain, apply in practical situations and convey to others. Such testimony indicates that the pedagogical approaches in Egypt have intense focus on examination, rather than the implications of the education in the life of students. The teachers just rush through the materials given by the ministry of education, just to meet the curriculum requirements. After that, they just emphasize on the materials that they believe is likely to appear in exams (McCulloch & Crook, 2013). Although government of Morsi focused on improving the quality of education, there has been little focus on improving the teaching approaches (Topi & Tucker, 2014).

Another major problem in the Egyptian education system is negative attitude of the general population towards vocational training. In Egypt, vocational training is perceived as a reserve for the students who fail to get enough marks to qualify for higher education in public universities. There is obvious implication on the capacity and quality of output of the students who pursue vocational training. Unfortunately, 2010 OECD report indicated that one of the major challenges affecting Egyptian education system is inability of the students who pursue vocational training to pursue further studies in universities (Hefner & Zaman, 2010). The students who take vocational training are ‘tracked out’ and are given limited opportunities to access higher education in universities. However, students from wealthy families are able to escape the problem through continuing with education in private universities and qualifying for universities spaces. Unlike the wealthy, who are able to use their financial ability to access university education, students from the disadvantaged families are forced consider vocational training and low-skilled labor as necessary. They do not have better choices. The negative attitude towards technical and vocational education leads the government to give little support to it relative to the other education institutions (Hefner & Zaman, 2010). As a result employers in Egypt have been complaining due to lack of candidates with specific skills to work in certain sectors and fields. At the same time 80 percent of the available jobs in Egypt required vocational education and training (Hefner & Zaman, 2010). Mosrsi’s government recognized the problems and thus, reforming vocational education and training was one of the gains of the government when it came to power. As such, the government of Egypt has been working to support programs such as Training System Reform Programme and Technical and Vocational Education, which had been launched in 2005 but lacked adequate support from Mubarak’s government. The two programs were created to provide training for students in areas such as tourism, services, manufacturing, and construction. In addition the Morsi’s government partnered with sectoral associations and the local employers to offer training facilities for agroindustrial, garment and construction industries. By 2013, the programs had trained 50,000 persons (Topi & Tucker, 2014). Despite the efforts, vocational training is not fully reformed and it requires additional support. In addition, the government ought to remove the limitation that is placed on individuals who have acquired vocational training from accessing higher education in universities (Topi & Tucker, 2014).

Another major that has been facing educational system is the presence of social inequalities. The lower-level private schools have significant differences from the public schools. In most cases, the private schools have some advantages because they are subjected to fewer state-imposed constraints (McCulloch & Crook, 2013). In the private schools, teachers have autonomy to develop lesson plans in response to the needs of students. In most cases, the number of students in classes is smaller than in the public schools (McCulloch & Crook, 2013). Also, many private institutions have better and adequate facilities. As a result, the concentration of education by the students in the private institutions is higher than in the public institutions. In short, the private institutions are better equipped to prepare the students to meet the demands of the job market. Unfortunately, the private schools are only accessible to students from wealthy families. Children from poor and disadvantaged families have no other choice than to enroll in the public schools. The implication of the differences is social inequality, since those who are able to access education in private schools have better chances of getting jobs (McCulloch & Crook, 2013). By the time Morsi took leadership, Egyptians expected new reforms in the educational sector that would reduce the inequality in access to quality education and jobs. Although the new government promised to improve quality of education in the public schools, no significant progress has been achieved so far. One of the major reasons for lack of achievement is the fact that the government has been facing budget constraints and has been unable to provide adequate financial support to educational sector (Topi & Tucker, 2014).

Lastly, the higher education in Egypt has been facing challenges, including mismatches between outputs and the job requirements in the employment market, inability to attract adequate funding and lack of strong research output and capacity. Egypt has 18 public and 17 private universities. Just like the public primary and secondary schools, the public universities rely entirely on government funding (McCulloch & Crook, 2013). During the wake of revolution in 2011, funding challenges facing higher education institutions in Egypt increased sharply due to the economic backdrop that hit the country. The lack of adequate funding also affected research capacity and output, which also relies on funding. In addition, the quality of education has been falling due to lack of adequate modern facilities, hence lowering ability of the students to get jobs. Precisely, the students from some private universities have better chances of getting jobs than students from public universities (McCulloch & Crook, 2013). However, the new government that took over from Mubarak took the issue as a major priority. The government increased the budget targeted on higher education, but the process of raising the funds took a period of six months. In addition, the government sought assistance from donors (Topi & Tucker, 2014).

Conclusion

In conclusion, education in Egypt has a very long history that can be traced from many centuries back. Initially, education in Egypt took place in informal setting. Teaching in formal settings was introduced by Muslims, and took place in Temples. However, early formal education was grounded on the principals of the Quran. Islam religion supported education for a long time, and is credited for supporting the emergent higher education. Various rulers emerged later, some of whom supported education, while others did not. Ali is remembered as one of the leaders who gave adequate support to education. One of the remarkable periods when education in Egypt suffered a backdrop was during the colonial Era, under the rule of the British. Education received adequate support many years later after the British rule, under leaders who fought relentlessly to support literacy. Mubarak’s regime, which started in 1980s promised to revive educational system, and actually used a significant percentage of the countries budget on education. However, Mubarak’s authoritative regime led to many more problems that highly affected the quality of education offered in public schools at all levels. The major challenges that the education system in Egypt has been facing include strains on infrastructure, over-centralized control, inadequate access to funding, presence of social inequalities, focus on learning just for examination, dependence on private teachers, poor teaching quality and negative attitudes towards vocational education and training. During the revolution that took place in 2011, the general public aspired for a new government that would solve the above challenges. Although the government of Morsi and the succeeding government have made a few changes and increased investment in the education system, the achievement has not been significant. One of the main reasons for the lack of significant achievement is budget constraint as a result of economic backdrop after revolution. The current government that took over from Morsi needs to be more vigilant in supporting and reforming education system to make it more beneficial to the citizens.

References

Acedo, C. Adams, D. & Popa, S. (2012). Quality and Qualities: Tensions in Education Reforms:

Tensions in Education Reforms. Rotterdam: Springer

Alayan, S., Rohde, A. & Dhouib, S. (2012). The politics of education reform in the Middler East:

Policy Sector Healthcare

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Policy Sector: Healthcare

Introduction

As the societal and corporate environments become more complex, individuals are being expected to perform optimally in order to enhance growth and development. In particular, societal expectations have equally become complex and in order to survive and thrive, populations are increasingly being required to exhibit executive functioning at all times. It can not be disputed that the health of the populations is at the center stage of effective functioning. Essentially, individuals that are robust health wise tend to be more productive than their counterparts. Regardless of this recognition, most of the governments have failed dismally to provide for the health needs of their populations. Global reports indicate that poor health conditions are one of the major courses of the stagnation that is currently being experienced in the economic sector. Just like other countries across the globe, America has failed to provide for the holistic health needs of its populations.

Recent researches indicate that the health sector problems have adverse impacts on the holistic wellbeing of America. To a great extent, these also contribute to developmental delays that have been experience din the recent past. The complexity of the health care issues has increased over time. In this regard, it can not be disputed that health care problems have persisted for a significant period of time now. The inherent persistence implies that either the relevant parties are not taking vital steps to address it or the steps being taken are not sustainable. It is for the preceding reasons that this study deemed it necessary to review the policy issues in the health care. Arguably, relative findings would be instrumental in resolving the intrinsic inconsistencies in an effective and timely manner. This would improve the performance of the populations and enable the country to attain its national goals and objectives in different other sectors.

Major Policy Issues

The major policy issues are wide and varied. To begin with, Mahar (2006) indicates that the issue of lack of insurance for a significant percentage of the American population is critical. Although a significant percentage of the poor population is currently covered by Medicaid, statistical evidence ascertains that others are not. The affected segment of the population in this regard constitutes the low income population that works for employers that do not provide medical insurance. This group is further increasing in number as more job opportunities shift from the manufacturing to the service industry.

Another problem pertains to the issue of the country spending too much money on health care. Economic reports ascertain that health care assumes a significant 16% of the national economy. The implications of this rise are felt by American employers and family that are responsible for shouldering the cost. Relative insurance costs according to Mahar (2006) have doubled in the past decade and are further escalating at a very fast rate. From a global point of view, the country spends the highest amount of financial resources of health care. Regardless of this, the increasing costs have not improved the health of the Americans in any way.

Another health policy issue entails a significant percentage of the employees receiving restricted insurance coverage. In this regard, it is agued that most of he insurance plans tend to be negotiated between insurance providers and employers. In most instances, they are limited to one insurance carrier or HMO. For this reason, most of the employees end up having limited options with respect to health care provider alternatives.

What the Government is doing with Regard to Each

The American government is responsible for ensuring that the preceding issues are addressed and the health of the American population is secured. Currently, it is taking certain distinct measures to address the concerns accordingly. However, these have not yielded significant results to date. With respect to catering for the needs of the uninsured, the government has directed all employers to provide insurance for the employers. Further, Mechanic (2003) indicates that it has taken distinct steps to expand the children’s State-Children Health Insurance Program (S-CHIP) to the adults. Basically, this insures children whose parents’ salary is too high to get Medicaid ye to low that they can not afford private insurance using other state programs, or Medicaid expansions. A significant percentage of the democrats’ advocate that parents should also be allowed to participate in this system is order to cater for the uninsured.

With regard to health financing, several proposals have been put forth by the government in the past. To begin with, a proposal has been suggested to advocate for employers providing for the entire insurance costs and paying for 80% of the premium costs. Through time, the government has also made significant effort to guarantee the unemployed as well as those who have lost their employment continue insurance cover. Proposals have also been put forth to regulate the insurance policy. In this regard, individual states were expected to cite either one or multiple regional alliances to purchase insurance on behalf of the insurance industry.

The government has also taken measures o enforce medical saving account. The MSAs in this regard were expected to be a personal property and individuals as well as employers were expected to make deposits in these accordingly. The relative deposits were supposed to be tax free and individuals would be penalized for withdrawing money for other expenses apart from health insurance premiums and medical expenses. The money that they would not spend would slowly earn interest and they would be allowed to use for medical expenses especially after retirement.

With respect to providing restricted health options for the employees, many states have taken practical steps to enact the ‘patients’ bill of rights’. This addresses part of the alleged abuses that have been detailed under this concern. The legislation has been instrumental in guaranteeing specialized medical coverage, emergency treatment and it has also detailed an appeal strategy for individuals that have been denied relevant services.

What Explains Government Action or Inaction

In most instances, the government enforcement of the above mentioned measures has been compounded by increased opposition from major stakeholders in the industry. Concerning the issue of restricting the health options to employees, reports indicate that the government has taken efforts to expand the initiative to the national scale. The policy issue regarding whether the employees should be accorded the right to the health maintenance organization for their malpractice has stalled the process. In the case of medical savings account, the opponents of this have argued that this proposal is ideal for the young generation. However, withdrawing the relative individuals from the insurance pool would have for reaching implications including an increase in the insurance rates.

Other oppositions have been experienced from the insurers as well as provider organizations. In essence, the inherent opposition can be attributed to the complex nature of the health reforms. In this regard, Mahar (2006) indicates that the health sector has various stakeholders who have differing views regarding their position on the emergent complex issues. Making them to have a unified approach to most of the concerns can prove unyielding especially in instances where the affected stakeholders have a great influence or comprise a majority of the opponents.

Major Contemporary Challenges

There are different emergent challenges that are compounding the relative efforts that have been previously undertaken by the government to improve the healthcare societal facet. The relative challenges need to be addressed from a modern perspective in order to yield beneficial results. Seemingly, most of the problems stem form the process of policy making. In most instances the democrats and republicans have been unable to come to an agreement concerning sensitive policy issue. This has further been compounded by the multiple parties or stakeholders in the sector. Consulting with all of these during the process of policy formulation has in most instances yielded minimal results. This is because each party and administration has its own individual approach to policy formulation. The characteristic competing and overlapping jurisdictions have culminated in the fragmentation of administration as well as overly specific programming. All the preceding multiple factors have greatly compounded the process of formulation of ideal policies in the sector.

Another contemporary challenge that is being experienced by the sector pertains to inadequate financing. In this respect, it can not be disputed that the cost of healthcare has increased significantly in the recent past. Global trends indicate that this problem is being experienced across the globe. Health services and products have increasingly become very expensive and there affordability is becoming a major challenge. This can be attributed to the diversification of medical problems and the relative complex medical procedures that are required to address the inherent concerns.

Another contemporary problem compounding the health sector and relative improvement efforts pertains to the lack of awareness of the public regarding their health rights. In this respect, Fox and Fronstin (2000) indicate that the public is not informed about its rights and privileges with regards to healthcare. It neither understands nor appreciates its stake in the health sector. This has increased its vulnerability to exploitation by the health providers as well as the employers. The inherent profit oriented approaches that are assumed by the health providers make it difficult for them to cater for the needs of the patients in a sustainable manner. The government on the other hand has failed dismally to provide the relevant regulation. As aforementioned, this is attributable to various factors that range from the complex process of policy formulation, implementation and enforcement to increased opposition from the major stakeholders in the health sector.

Proposed Solutions

There are various solutions that have been proposed to address the current state of affairs. To begin with, the federal government has been advised to review its priorities with respect to providing healthcare. In this regard, it has been advised to place great emphasis on the respective leading indicators of health. For instance, although continued insurance of the uninsured facet of the society is of paramount importance, it is argued that the Medicare and Medicaid funds can be effectively employed to improve the health of individuals that currently benefit from the respective programs. In this regard, the government needs to work closely with all the stakeholders to simplify the relations between them and ensure that the public is aware of the available services as well as how it can benefit from the respective services.

Prioritization of health concerns according to the health critics would enable the government to reduce the amount of resources that are currently being employed to finance relative initiatives. In addition, the improvement of relations would ease the formulation as well as implementation of important health care policies.

Another solution that has been proposed pertains to implementation of important regulations to govern the operations and decisions of health care providers. In most cases, the American public has suffered in the hands of health care providers. In addition to charging high rates, the respective providers have been implicated for offering very few health care options to the public. The government in this regard has been urged to step in to curb the inefficiencies accordingly. The inherent regulation would go a long way in ensuring that the public has unlimited access to quality healthcare at affordable cost.

The Most Feasible Solutions

At this point, it can not be disputed that the health sector has various inconsistencies that are compounding the general health of the American population. Although the government has taken certain measures to counter the scenario, these have yielded minimal results because of various factors. Besides being opposed by a significant percentage of the stakeholders, the government has not been keen on effective enforcement of the relative measures. The following proposals can go a long way in improving the current state of affairs and ensuring that the American public has access to quality health care.

With regard to providing insurance services to the uninsured, the government should enforce the regulations requiring the employers to provide insurance packages to all employees. These need to be consistent with the mount of income of the employee but should be able to cater for basic healthcare. To enhance optimal output, the insurance providers on the other hand need to regulate their rates and ensure that they are in line with the economic and social dynamics as well as expectations. This can be useful in ensuring that the public is not denied its right to health care. A more non compromising government stance in this respect can go a long way in ensuring that relative concerns are implemented and enforced. At this point, it should be noted that relative efforts have been compounded by increased opposition from various parties (Hwang & Grossman, 2009).

With respect to financing, the government should review its priorities in this regard and ensure that the current provisions provide optimal benefits for the beneficiaries. Arguably, the current system can provide for the entire health need of the American population if important reforms are made. In particular, improving the interrelationships and increasing collaboration as well as coordination between major stakeholders can go a long way in eliminating current inconsistencies. Finally, the employers and health management organizations need to be compelled to provide sufficient health options for their employees. Employees in this regard should be accorded the right to sue them accordingly. If the insurance rates are regulated, this should bear optimal results in the long run.

Models of Typologies that Best Capture the Sector

One of the models that best captures the US health care pertains to the Bismarck model. This was named after the Germany founder Otto Von Bismarck. It essentially employs the insurance system that is in most cases financed by the employees and employers using the payroll deduction system. The American health care is also reflective of the business model. In this the drugs move form the manufacturer to the distributor then to the healthcare providers, patients and employers. The employer and employee play an important role in financing the relative services. The health providers are profit oriented and look forth to maximizing relative profits at the expense of the normal citizens.

How the Sector is Similar to and Different from Three Others

This sector is similar to and different form other sectors in different ways. Compared to the education sector, both have inequalities as a certain segment of the public does not access quality education and healthcare. The differences are that the health sector offers other options for the disadvantaged. Compared to the housing policy, the former has major improvements than the health policy. Statistical evidence indicates that the government provides quality housing for a significant percentage of the population. Likewise, the transport sector is better than the healthcare sector in different ways. In this regard, the government provides affordable and adequate transport system for its population. In addition, the respective transport systems are diverse and maintained accordingly.

References

Fox, D. & Fronstin, P. (2000). Public spending for healthcare approaches 60 percent. Health Affairs, 19 (2), 270-75.

Hwang, C. & Grossman, M. (2009). The innovator’s prescription. USA: McGraw Hill.

Mahar, M. (2006). Money driven medicine: The real reason health care costs so much. New York: HarperCollins.

Mechanic, D. (2003), Policy challenges in improving mental health services: Some lessons form the past. Psychiatric Services, 54 (1): 1227-1232.