Racial Profiling

Racial Profiling Racial Profiling Abstract This manuscript will take an in-depth look at racial profiling. Many studies have been conducted on this type of practice and a few of these studies will be observed. Concerns for racial profiling such as racial tax, impacts on minorities, and police citizen partnerships will also be addressed and how it affects the individual, criminal justice field and the community. Some sanctions will also be discussed to find ways on how to combat this practice. Finally the cases of Atwater v. City of Lago Vista and Terry v. Ohio will be compared. Racial Profiling The debate involving racial profiling is been around for many years. There have been many studies of about this issue over the past 20 years. Some researchers believe that racial profiling does not have a place in the criminal justice system. Although others disagree with this claim and believe that it does have a place in the criminal justice field and does stop crime. This manuscript will take an in-depth look at the constitutional issues, correctional initiatives, and compare two cases dealing with racial profiling. Literature Review Higgins, Gabbidon and Vito (2009) conduct a study focusing on the public opinion on racial profiling during traffic stops. They collected data from Gallup there runs a poll every few years on the perception of whites and minorities on several issues. The sample size was 2,000 randomly selected Americans of many different races and ethnic backgrounds. Dependent variables were tested by using two different questions that include the following: â€Å"is it ever justifiable for police use racial or ethnic profiling, and if they felt that racial profiling was widespread when motorists are stop on roads and highways† (Higgins, Gabbidon, and Vito, 2009). The independent variables were tested by finding out what the relationship between each race was. The demographics for the study found that 47% of the survey respondents were male with an average income of $50,000 to $75,000. The sample also showed that 37% were black and 22% Hispanic (Higgins, Gabbidon, and Vito 2009). The results o f this study showed that there were mixed results when dealing with race relations and safety concerns. The researchers show that race relations had an influence on racial profiling, while safety did not. A study conducted by Parker, McDonald, Alpert, Smith, and Piquero (2004) focuses on the contextualized examination of racial profiling. This study basically looks at multiple studies conducted by many other researchers on the topic of racial profile. The authors conclude that community level characteristics and their relationship to racial profiling are unknown. They also argue that the clarity and meaning of racial profiling is lacking (Parker et al., 2004). The study also shows that more analysis should be done to see the relationship between police discretion and racial profiling. Kim (2004) examines how religious individuals feel towards racial profiling. The researcher collected data from the ABC News/The Washington Post Afghanistan Attack Poll #2. The sample size consisted of 1,009 adult participants ranging from the ages of 18 and older and living in the United States (Kim, 2004). In a survey that was conducted the participants were asked their religious identification, their race, and feelings about racial profiling. The researcher found that religious Americans are more likely to support the racial profiling of Muslims or people Arab descent. The author believes that this is true because of the public safety because of the events that occurred on September 11, 2001. Ramirez, Hoopes, and Quinlan (2003) also look at racial profiling in this definition after the events that occurred on September 11, 2001. They first take a look at the case of Wilkins v. Maryland State Police. This case was brought up by the American Civil Liberties Union (ACLU) about statistics of stops done on Maryland Turnpike. It showed a big contrast in the amount driver searched by the Maryland State police because a study showed that 79.2% were African-American (Ramirez, Hoopes, and Quinlan, 2003). The authors then look at different definitions for the phrase racial profiling of pre-September 11 and post-September 11 and believe that they are not easily understood. They believe that a more distinct definition should be developed for law enforcement officials to use. Oliver (2003) discusses constitutional concerns when dealing with the topic of racial profiling. The author takes a look at Fourth Amendment and how it affects racial profiling. This article takes an in-depth look at Atwater v. City of Lago Vista. The case was brought forth because Gail Atwater felt that she was illegally stopped by police because of a race. This case made its way to the United States Supreme Court and the justices found the officers actions did not violate the Constitution. The majority of five justices said that it did not violate the Fourth Amendment because a warrantless arrest is legal for minor criminal offenses (Oliver, 2003). The author believes that this case reshaped the fourth amendment of the United States Constitution. In an article written by Simmons (2011) racial profiling is examined for some definitive solutions. The author discusses some of the harms that racial profiling has on the victims. The researcher believes that racial profiling imposes a racial tax on individuals and groups that are subject to this practice (Simmons, 2011). Other harms that the author discusses are the impacts on monitory communities, and impacts on police citizen partnerships (Simmons, 2011). The author also discusses how there have been some push for legislation to help stop racial profiling, but the legislation failed to pass. The researcher believes the more studies need to be performed to help resolve the issue of racial profiling. Smith and Alpert (2002) discuss how the use of social sciences can help the court system resolve the issues of racial profiling. The authors also discuss some of constitutional constraints when dealing with racial profiling in the legal system. The researchers state â€Å"That most stops done by law enforcement officers based solely on race are generally found unconstitutional in the courts† (Smith and Alpert, 2002). The authors also discuss some legal remedies racial profiling. They claim that this type of practice done by law enforcement officers is a violation of the Equal Protection Clause of the United States Constitution. Smith and Alpert (2002) also discuss how the fourth amendment is rarely applicable in cases dealing with racial profiling because of the Supreme Courts decision of Whren v. United States. They conclude by stating the most court cases that deal with racial profiling ultimately fail because the plaintiffs do not have enough solid research. Durlauf (2006) wrote an article discussing some of the problems of racial profiling in traffic stops. The author shows that there been no benefits identified for the use of racial profile. He believes that the harm to the individuals is greater than the benefits for the use of this practice. He concludes by stating that he rejects any form profiling in traffic stops as a public policy (Durlauf, 2006). In a study conducted by Glaser (2006) the author says is difficult to test the effects of racial profiling because the data is difficult to secure. The researcher during his study simulates racial profiling to see how it affects two different groups. In his first scenario the two groups had the same incarceration rate of 10%. In this scenario no profiling is done in the results come out say the same for both groups. In the next scenario the researcher changes criminality rate for one group to 25% and lowers the second group to only 6.25% (Glaser, 2006). The researcher shows when this occurs and profiling is put into the equation that the group with a higher criminality rate is five times more likely to be incarcerated than the other group. Risse and Zeckhauser (2004) published an article looking at the moral aspect of racial profiling and how to eliminate from ones thoughts of the subject. The authors give a brief history and some conflicting definitions of the phrase racial profiling. They believe that some of the definitions that other researchers use can be confusing and hard to understand. Risse and Zeckhauser (2004) shows it is hard to prove racial profiling because law enforcement use the defense of suspicious activity not solely stopping somebody because of the race. The researchers believe that racial profiling can be used in some cases for the better public safety. The authors conclude that they do know that racial profiling does hurt the African American community, but also believe that it does lower crime rates. Discussion Constitution and Law The topic of racial profiling has constitutional and criminal law issues need to be addressed. Oliver (2003) identifies the major constitutional issues the Fourth Amendment and the Fourteenth Amendment. The fourth amendment can be summarized as illegal search and seizure. In the case of Atwater v. City of Lago Vista the Supreme Court role that the police officers stop on this Atwater did not violate the fourth amendment because for minor criminal offenses a warrantless arrest is permitted (Oliver, 2003). The 14th amendment is known as the Equal Protection Clause and was developed for the protection of individuals no matter what their race or ethnic background was. This is been an issue because the 14th amendment has not been very adequate to help the victims of racial profiling. The reason for this is because racial profiling is very hard to prove. Another issue when dealing with racial profiling is many plaintiffs lose cases dealing with racial profiling because they have not gather ed enough solid research (Smith and Alpert, 2002). Concerns Many concerns can arise when dealing with racial profiling because they can affect many people. Simmons (2011) discusses three of these concerns and they are as follows: imposes a racial tax, impacts minority communities, and impacts police citizen partnerships. When dealing with racial profiling the so-called â€Å"racial tax† many people in the community can suffer psychological and emotional harms. This can be devastating to the individual because they can make them feel unwanted in the community. The community also suffers because word can spread the police officers are profiling a certain race and then trust the criminal justice field falls. The concern that racial profiling has impacts on minority communities can be justified for some of the same reasons stated above. This is also concerned because the practice of racial profiling may lead to higher incarceration rates among the community (Simmons, 2011). This can be harmful to the criminal justice field for some of the same reasons stated above and can have an impact on correctional facilities because it may cause more overcrowding. Racial profiling impacts police citizen partnerships because the trust of the police falls to the individual and the community as a whole. Another concern the may arise with the topic of racial profiling can be the issue of airport security. The impact of not using racial profiling on certain races can have a huge impact on the communities at large. This author believes that racial profiling is wrong in most cases but when it comes to protecting large groups of people should be used. If an individual board the plane with a bomb and was not racial profile this could have an impact on the criminal justice system as well. The country as a whole may feel that the criminal justice system do not do their job properly in stopping such an attack. One more concern could be the racial profiling of the teacher at a University. This can impact the victim because it makes them feel not welcomed at the institution because of the race and ethnic background. If students do not trust the teacher just because of their race, this can have an impact on the school community because lawsuits may arise. These lawsuits in turn will have an impact on the criminal justice field is a may tie up the courts. Initiatives Some initiative should be put into place to stop the practice of racial profiling. Most of the public believes the racial profiling should not be used in any shape or form. In order to combat this some sort of punishments may need to be put in place to stop profiling. One way to combat this practice could be to impose community service on individuals who commit racial profiling. This would not be a hard punishment to impose because it could help the community as a whole. Some logistical issues would be to find the appropriate project for the individual to work on. This project could be in the minority community that the individual committed racial profiling against. A second initiative to help stop the practice of racial profiling is to impose fines. This would be easy to apply once the law was set into place. One of the issues that may occur though, is setting the correct amount of money they should be fined against the individual who committed racial profiling. A third and final initiative could be shaming. This may be harder to implement because it is not well-known to the community. One of the logistical issues that may arise is getting adults to cooperate with the initiative. Most adults are not going to stand on the side of the road holding a sign that says â€Å"Im a racial profiler†. These types’ individuals would rather pay the fine first. Another issue is to find the appropriate place to hold shaming, such as a community square or popular mall. This author believes that if shaming should occur in the community that the individual committed racial profiling. Cases There are many cases that involve racial profiling, but Atwater v. City of Largo Vista is one that has been studied many times. Gail Atwater was driving a pickup truck and was pulled over due to what the officer said was a seatbelt violation (Oliver, 2003). This is brought forth to the Supreme Court as a racial profiling case because a few weeks before the same officer pulled over Gail Atwater for the same violation. The issue was that all the passengers were belted in properly. Although the seatbelt violation on how to find $50, the Atwater family felt that they were racially profiled. The Supreme Court later ruled that the case did not involve racial profiling because warrantless arrests are permitted and minor offenses (Oliver, 2003). In a similar case of Terry v. Ohio police officer stopped three men that he thought and committed the crime just moments before. When the officer asked what their name was, they just kind of mumbled. The officer then proceeded to search the men and found a weapon on one of them in an inside pocket. Two the men were charged with carrying a concealed weapon and taken to the police station. The defense for the two men one of the charges dropped because of illegal search and seizure. This case made to the Supreme Court and later developed a Terry stop. This was the case that did not involve racial profiling but involved reasonable suspicion. The outcomes of these two trials did affect individuals because in one case someone was fined, and in the other they were put in jail. Conclusion As discussed throughout this manuscript there are many problems and concerns that arise when dealing with racial profiling. This type of practice is still used very hard to prove. The concerns that were mentioned previously are one of the reasons that racial profiling should be stopped. This author believes that more research needs to be done in order to find the right way to combat this practice. References Durlauf, S., (2006). Assessing racial profiling. The Economic Journal. 116. Glaser, J., (2006). The efficacy and effect of racial profiling: a mathematical simulation approach. Journal of Policy Analysis Management. 5(2), 395-416. Higgins, G., Gabbidon, S., Vito, G., (2009). Exploring the influence of race relations in public safety concerns on public support for racial profiling during traffic stops. International Journal of Police Science Management. 12(1). 12-22. Kim, P., (2004). Conditional morality? The American Behavioral Scientist. 47(7), 879-895. Oliver, S., (2003). The role profiling American society: racial profiling: Atwater v. City of Largo Vista: the disappearing fourth amendment and its impacts on racial profiling. Journal of Law and Social Challenges. 5(1). Parker, K., Macdonald, J., Alpert, G., Smith, M., Piquero, A., (2004). A contextual study of racial profiling. The American Behavioral Scientist. 47(7), 943-962. Ramirez, D., Hoopes, J., Quinlan, t., (2003). Define racial profiling in a post September 11 world. The American Civil Law Review. 40(3), 1195-1233 Risse, M., Zeckhauser, R., (2004). Racial profling. Philosophy and Public Affairs. 32(2), 131- 170. Smith, M., Alpert G., (2002). Searching for direction: courts, social science, in the adjudication of racial profiling claims. Justice Quarterly. 19(4). 673-703 Simmons, K., (2011). Beginning to end racial profiling: definitive solutions to an elusive problem. Washiington and Lee Journal of Civil Rights and Social Justive. 18(25).

Pitbulls Essay -- essays research papers

Picture this for a second. You come home both mentally and physically exhausted after a strenuous day at school. All you want to do is watch TV and relax with your best friend. As you begin up the concrete cracked driveway, these thoughts linger in your mind. You push the key into the door handle but you notice something is wrong. There is no barking, no tail wagging, no sign of your best friend at the gate. All that is left is a notice on the front door explaining that your dog has been destroyed by the RSCPA. This is the outcome that many Queenslanders are facing for owning an American Pitbull Terrier. But it is not only APBT owners that are suffering from this ordeal, but owners that have dogs that even slightly resemble the APBT will be destroyed. This will soon become the case in Victoria if no one tries to save the name and true reputation of the APBT. I would appreciate if you forgot all the hysterics the media has put forward over time on this breed and listen to how it is not his fault if he escapes, is tort to attack or is put into the ring to fight to the death. The APBT does not deserve this reputation, this reputation has evolved from mans misdemeanors. Renewed calls for the eradication of the APBT were prompted by yet another seemingly endless dog attack. Yet when the public learn that these attacks are easily preventable and in almost every case, it is the owner’s irresponsible ownership which allows the gate open for these attacks to occur? The vicious kil...

How the Characters React Towards the Shooting of Candy’s Og Essay

The way the characters react towards the shooting of Candy’s dog reveals a lot abut the characters that we might not have expected. Carlson offers to shoot the old dog, complaining many times of the smell. The shooting of Candy’s dog shows the callousness of Carlson and the reality of old age and infirmity. Carlson typifies the men George describes as â€Å"the loneliest guys in the world†. He is outwardly friendly, but essentially selfish. He finds the smell of an old dog offensive so the dog must be shot. He shows very little regard to the dog’s owner, Candy. He relentlessly pursues the dog’s death, more for his own comfort than to put the dog out of its misery. However, Steinbeck does show some sympathy in Carlson, when he suggests â€Å"he won’t even feel it†, referring to Candy’s dogs death. This is contrasted to Candy’s procrastination to put this event off when he says â€Å"maybe tomorra, Le’s wait till to morra† Steinbeck displays that Candy is trying to delay the put down of his dog and his reluctance to end his dogs life shows how much he loves the animal. â€Å"Carlson had refused to be drawn in† this suggest that Carlson is determined and not to be put off. When Carlson brutally keeps after candy, candy’s reaction is described in the adverbs Steinbeck has used: â€Å"uneasily,† â€Å"hopefully,† â€Å"hopelessly,† and the way candy reacts: â€Å"Candy looked for help from face to face.† When he reaches out to Slim for help, even Slim says it would be better to put the dog down. Slim is portrayed as serene and a good listener/observer in this novel, and when Steinbeck suggests â€Å"the skinner had been studying the old dog with his calm eyes† – referring to Slim, it suggests that he had been very thoughtful about the whole incident and even showed his understanding and considerateness when he reminded Carlson to take a shovel, so Candy will be spared the glimpse of the corpse. â€Å"I wisht somebody’d shoot me if I get an’ a cripple† are the words Slim uses that Candy later echoes when he considers his own future. This perceptibly puts Candy in deep thought, it shows Candy’s realisation of his own mortality when Slim states this. The dog, in this case tells us something of the owner. When Steinbeck shows the dog nearing the end of its days it could show that candy was too. Also Steinbeck employs irony by saying that he wanted someone to ‘shoot’ him when he got ‘old’ and ‘crippled’ which he almost is. Slim also reassures Candy when he says â€Å"you can have a pup if you want to†. When Candy finally gives in and allows Carlson to shoot his dog, it shows the reader that candy wants to be over and done with and wants his dog a swift and painless death. There is some empathy shown when Carlson says â€Å"come on boy† to soften the blow for the dog and more so Candy. Once Carlson has taken the dog to shoot, Steinbeck builds the tension within the characters just before the dog is killed. â€Å"George followed to the door and shut the door† – this proposes George’s kind nature and sympathy towards Candy and his dog- this could be one reason as to why George did not give an opinion on whether Candy’s dog should be shot. When George offers â€Å"anybody like to play a little euchre† it is evidently shown that George is trying to change the topic and he doesn’t want to worry Candy about the dog, this makes the reader see George taking people’s emotions into account before his own, we also saw this earlier in the book when George stands up for Lennie. We see this again when George â€Å"ripple the edge of the deck nervously† this shows that he is also concerned about the whole situation. It is evident that whit also showed concern indirectly when he says â€Å"what the hell is taking him so long†. When Steinbeck repeats â€Å"a minute passed, and another minute† he purposely extends the sentence which is a reflection as it prolongs the moment. And then when Steinbeck says â€Å"the silence came into the room. And the silence lasted.† Steinbeck employs short length sentences which make the moment seem longer and intensify the significance of that specific time. After â€Å"the shot sound in the distance† we are told that Candy â€Å"slowly rolled over and faced the wall and lay silent†, this reaction suggests that candy tried to bravely take in what just happened by turning his back to it and attempting to keep unruffled. The use of short sentence shows us that initially after the shot, there were no comments by anyone which implied that it left them in shock and the realisation of what just happened was slowly sinking in everyone’s head. Steinbeck’s employment of repetition of conjunctions with ‘and’ lengthens the sentence at the end, expanding the climax of the scene, as the audience wants to know what happened to Candy, after his most beloved companion has gone. Carlson even cleans his gun in front of Candy after the deed is done, this reinforces his brutal character. While it may be true that killing the dog put it out of its misery, little concern is shown for Candy’s feelings after a lifetime of caring for the dog. Now Candy is like the rest of them — alone.

Introduction To The Central Bank Of Malaysia Finance Essay - Free Essay Example

Sample details Pages: 15 Words: 4635 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The Central Bank of Malaya Ordinance 1958 (CBO) established the Central Bank of Malaysia. At the same time, BNM is known as the central bank of Malaya. In September of 1963, the name was officially changed to Central bank of Malaysia. The purpose of Central Bank was set up to fulfill the need for the management of the countrys money value and credit situation such as government foreign loans. Bank Negara Malaysia is vested with the legal powers under various Acts and Ordinances to regulate and supervise in development of the financial industry. Hence, central bank plays very important roles in financial system of each country. The introduction of BAFIA which is administered by BNM is used to regulate and supervise the operations of the members in the financial systems such as commercial bank, financial companies, merchant/investment bank and discount houses. Don’t waste time! Our writers will create an original "Introduction To The Central Bank Of Malaysia Finance Essay" essay for you Create order There are 5 main missions of the Bank Negara Malaysia to regulate and supervise the development of the financial industry in Malaysia in order to achieve sustained economic growth for the benefit of the nation. I) BNM will promote a work culture which emphasize the highest standards of professionalism, spiritual, teamwork, innovation, ethical to conduct the qualitative and quantitative working result. II) The developing and maintaining a committed workforce which is highly responsibility, proactive, adoptable to the changing needs in the financial industry from year to year. III) BNM focuses on promoting the effective use of innovative technology and efficient work practices to improve the productivity, efficiency and quality work. IV) Adopting the policies and practices to enhance the competitiveness of local financial institutions toward the globalization of international competitions. V) Control the flow of the money and store the necessary financial resources and financial instruments to maintain the monetary stability effectively. All of these statements are Bank Negara Malaysia missions in order to achieve economic growth and improve our living standard through increasing of country GDP and high value of our currency. Board of Directors: Governor and Chairman Tan Sri Dato Sri Dr. Zeti Akhtar Aziz Deputy Governor Dato Zamani bin Abdul Ghani Deputy Governor Dato Mohd Razif bin Abd Kadir Deputy Governor Dato Muhammad bin Ibrahim D.P.M.S. Organisation Structure: The Governor is the Chief Executive Officer of the Bank and is assisted by three Deputy Governors and seven Assistant Governors. Most of the 37 departments/units in the Bank are organized into seven divisions, with each Assistant Governor being responsible for one. Function of Central bank: 1) To issue and keep reserves and safeguard the value of the Currency i) Bank for currency issue BNM was established in 1959 and become a full-fledged currency issuing authority in Malaysia in June 1967. At that time, BNM had the currency issuing function with the issue of the Malaysia dollar. After that, dollar and cent was replaced by ringgit and sen in 1975. The CBO 1958, which provides authority for BNM to assume the responsibility of issuing the Malaysia currency. Our currency is required minimum cover of 80.59% in gold and foreign exchange. In practice, BNM maintains external assets to cover well above 100% of its currency liability. This practice is totally reflects the Government policy to maintain the full gold and foreign exchange backing for the ringgit Malaysia in order to maintain the currency value. ii) Keep International reserves and safeguarding the value of the ringgit The national reserves are held by the BNM . The reserves of the nation are essentially accumulated from the surplus in the current account. Next is the total amount of the BNM international reserves consist of gold, foreign exchange, reserves position with the International Monetary fund. CBO is responsibility to maintain the minimum external reserves backing of 80.59% against the currency issue. As a result, the provision helps to safeguard the external value of the ringgit. 2) To function as the Governments banker and financial advisor. Normally, central bank acts as the government banker. BNM acts as the banker, fiscal agent and advisor to the government of Malaysia. BNM responsibility on public loan program, as well as raising internal and external loans for the government and managing the government public debt. Basically, government receipt such as new issue of government securities, tax, dividend payments will be managed by BNM. i) Management of the Government account. BNM accepts funds and makes payment on behalf of the government, undertakes the foreign exchange business of the government, provides the same functions as the commercial banks perform for their customers. ii) Source of funds to the Government BNM will supply temporary funds to the government to cover any deficits in the budget revenue. However, legal limitations to the amount and duration of loans that BNM made available to the government. iii) Management of the national debt BNM needs to manage the public debt and us responsible for the floatation of government loan, such as internal loan and external loan. In recent year, BNM try to reduce the external debt and minimize the risks of currency and interest exposure by getting the government to prepay and refinance some of its more expensive loans. 3) To promote the Monetary Stability and Influence Credit Situation to the Advantage of the country. BNM is responsible to make the monetary stability and control the credit situation to help achieve the nations overall economic objective with the great performance. Basically, BNM will ensure that the supply of money and volume of credits are sufficient to meet the domestic demand without any of the deficit of resources in public. Besides that, BNM regulates volume of money and credit by the commercial banks and finance companies in the market through the range of instruments including quantitative and qualitative controls. 4) To promote a sound financial structure and management of the banking system. To enhance the stability of the financial system BNM has always strive to maintain a management regime through moral aspect.BNM manages the banking system well to avoid the systematic failure occurred in order to maintain the public confidence in the banking system as well. The BNM acts as the banker to all the banks such as commercial banks, finance companies, merchant banks discount houses and Islamic bank by maintaining the special accounts for the major financial institutions, inspect them regularly and performs the function of a lender as a last resort. BNM acts as lender of last resort because licensed financial institutions can direct borrow money from the BNM when the institution is temporary short of funds. Secondly, under the BAFIA[1], any of the institutions are required to hold licenses to carry on business. The licenses are issued by the Minister of Finance on the recommendations of BNM. Thirdly, all banking institutions need to maintain two types of deposit accounts with BNM which is reserve account and current account. The main purpose of these two accounts is monetary control. The normal current account records cash transaction between banking institutions and BNM. Another clearing account is maintained by the banks for interbank settlements. History of Fiat money: A fiat money is a medium of exchange and known as the paper money. As we all know that fiat money is money that is declared to have value even if it does not. Fiat money is valued by the people that use it so there is no any production cost to the fiat money and the supply of fiat money can never be limited. Normally, the value of fiat money is always depending on the economy of each country. (History of Fiat Money) As mentioned that, fiat money no production cost and supply of a fiat money can be unlimited so that hyperinflation will be occurred if there are too much of the fiat money flow in the market and cause the purchasing power of the money is lower compare with past. As a result, issuers such as central bank should control and supervise the volume of the fiat money. The United States has prevented hyper-inflation by shifting between a fiat money and gold standard over the past 200 years. In Malaysia, the paper money we called it as ringgit Malaysia which consists of different value on each fiat money as others countries. The currency for our paper money is stable compare with foreign countries because our Central Bank manages the monetary stability well and lower down the fluctuation of currency value. Evolution of Fiat money: 910AD- China is the first country experiments with the paper money- The fiat money is nearly used around hundred years but the paper money is rejected due to the hyper-inflation as the supply of the money more than the production. 1500S- Spain becoming the richest nation in the world after collected gold from Mexico and the new world. After that, Spain spent most of their resources to extinguish pirates and then their excessive consumption cause the shortage of gold hoard. Then, they changed to financing the war with debt, finally bankrupted. 1716- John Law persuaded France to use the paper money in the market and declared all taxes necessary paid with it gain acceptance. The paper money becomes more popular than coin and cause to no limitation in printing, excessive moneymaking and planning and fraud. Overvalues in printing the excessive paper money eventually destroyed the system as well. 1791-The French Government again tries to use the paper money as country currency. However, the French Government issued out the assignata which is the interest rate for every personal own properties after they confiscated the land owned by aristocrats Some land was auctioned off in order to exchange for these new interest rate, inflation increased rapidly to 13,000% by 1795. After that, the assignate had been replaced by gold franc due to the Napoleon ended up the revolution, which set up over a century of development for France in that period of time. In the 1930s, Bank of France transform fully into the Government after the Socialists had brought the bank. They eliminated the gold backing of the currency as fast as possible and made the franc as the determinate of fiat money in France. The currency value had dropped 99% during the past 12 years. 1853- In Argentina, the development of gold standard is around 100 years. After that, the central bank of Argentina was formed in 1932; the downfall of the Argentina economy was started afterward. Then, Juan Peron involved in 1943 revolution and exhausted of reserves causing economy collapse in the year. Argentina continued on this line of paper money usage. As a result, the ranking of Argentina economy is falling from the eighth largest to deepest in the world, which it has no financial power to recover until today due to the serious impact to their country economic. 1862-The 16th President of United States Abraham Lincoln succeed to pass the Legal Tender Act and then allowing the United States Government to issue out their own paper money. The decision was supported by the government without any of promises so that a tremendous inflation occurred that caused the practice fall down rapidly out of grace until the Federal Reserve System was built up in 1913. 1923- After World War I, Weimar Republic was established in 1919 in Germany in order to lower down from its total loss result from the world war because Germany needs to take the responsibility to payback the war reparations which is huge amount. The huge amount of debt caused the country was devoid so found no other alternative but to simply print the money in large quantities to pay the reparations. The result was the absorbed most of the income from whole middle class in the society, total value of savings had been destroyed, and paying to fulfill the reparations in front of the angry society in whole Germany. The US dollar eliminates the gold standard in stages below: 1934-First of all, President Roosevelt was 26th President of the United States revalued gold from its standard price of $20.67 to $35 an ounce in an endeavor to print out more paper money in the United States market, with the expectation to increase the GDP of the United Stated current economy so that can eliminate the depression in the society. 1944- One of the steps that US try to substitute the gold by dollar is offered out the Bretton Woods Agreement. The price of gold is around $35 per ounce of dollar so that every foreign nation is available to obtain their own paper currency if they could afford either gold or US dollar because the US dollar and gold are the determinate of the world financial instrument. For the other point of view is meant that each nations volume of currency was depended on the amount of gold and US dollar. 1971- President Nixon ended up the gold trading and no more ending convertibility of dollars to gold. This scenario happened because of the US World Bank was printing excessive dollars and living standard beyond its means. As a result, most of the foreign nations which led by France discovered this benefit and began to demand payment in gold, breaking the system as US faced major outflow of gold. (J.Greene, 2004) Relationship between IMF and World Bank: As we all know that, the International Monetary Fund (IMF) is an intergovernmental organization function in the role of management of the global financial system. This main purpose is achieved by controlling exchange rates and balance of payments global market in the world. Besides that, IMF also provides technical assistance and financial support to member countries in times of crisis situations. For example, IMF will combine with the World Bank provide the financial support funds to the poor countries such as some of the poor Africa countries which is facing the bad economy crisis and the collapse of economy. However, the funds that loan out by IMF and World Bank are considered as the debt trap because of the high compound interest rate charge by IMF to the poor countries and cause them unable to payback their loan. In fact, the cooperation between IMF and World Bank to loan out the funds to poor countries is aimed to absorb their natural resources in that indebted countries if they are unable to cover the repayment of debt. In addition, the Fund that provided by the IMF and World Bank has the purpose of assisting the developing foreign nations in achieving economic stability and reducing poverty levels. The economic stability can led to the high GDP and rise up the living standard in each country so that the poverty will be lesser in the market level. The aim of the International Monetary Fund (IMF) is established to facilitate the growth and development of the global economy, thus providing financial stability and avoid the fluctuation in the monetary market. To achieve them, the IMF aims to: i) Promote international cooperation in the monetary and financial field . ii) Help facilitate the balanced growth of international trade and thereby stimulate employment and reduce poverty as well. iii) Contribute to the stability of exchange rates. iii) Eliminate exchange restriction that obstruct international trade. iv) Provide temporary financial resources to member countries and help in stabilizing their balance of payments. Besides that, the IMF also promotes the adoption of sound economic and financial policies and monitors regional, national, and global economic developments on regular basis. 1) Solve Economic Crisis: The primary relationship between IMF and central bank is solve economic crisis and global financial crisis with the central bank. The IMF will contribute and lend funds to the low income countries such as Haiti which needs the most financial support from outside. For example, the focus of IMF involvement in the developing world and run the IMF-supported programmes in some particular countries especially in the low-income countries such as Haiti. In Haiti population is around seven million people, consider as the poorest country in the western hemisphere with the per capita gross domestic product (GDP) if approximately US$250 compared with the average of US$3320 for latin America and the Caribbean region. (Mobekk I.Spyrou, 2002). As a result, IMF decide to lend a hand to help Haiti by providing some funds to improve the GDP and economic growth. On the other hand, IMF also signs agreement with few central bank and borrowing some funds to them. The detail of the agreement is shown as below: IMF Signs ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬1.95 Billion Borrowing Agreement with the Danish Central Bank Press Release No. 09/390 November 5, 2009 The International Monetary Fund (IMF) and the Danmarks Nationalbank, the central bank of Denmark, have signed a borrowing agreement to provide the Fund with up to ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬1.95  billion (about US$2.9  billion). The agreement is part of a commitment made by the European Union in March 2009 to contribute up to ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬75 billion to support the IMFs lending capacity. The European Union has since committed an additional ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬50  billion to the Funds expanded New Arrangements to Borrow. The signing of the agreement with the Danmarks Nationalbank means the Fund can now add these resources to those already available through borrowing agreements signed with other members. These agreements contribute toward an increase in Fund resources that was requested in April 2009 by G-20 leaders and International Monetary and Financial Committee in order to provide timely and effective balance of payments assistance to its members in the current crisis. From: https://www.imf.org/external/index.htm IMF Signs ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬120 Million Borrowing Agreement with the Central Bank of Malta Press Release No. 10/32 February 12, 2010 The International Monetary Fund (IMF) and the Central Bank of Malta have signed an agreement to provide the Fund with up to ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬120 million (about US$165 million). The agreement is part of a commitment made by the European Union in March 2009 to contribute up to ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬75 billion (then equal to about US$100 billion) to support the IMFs lending capacity The European Union has since committed an additional ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬50 billion to the Funds expanded New Arrangements to Borrow. The signing of the agreement with the Central Bank of Malta means the Fund can now add these resources to those already available through agreement signed with other members. These agreements contribute toward an increase in Fund resources that was requested in April 2009 by G-20 leaders and the International Monetary and Financial Committee. in order to provide timely and effective balance of payments assistance to its members in the current crisis. From:https://www.imf.org/external/index.htm 2) Analyzing each country capital market development Basically, IMF is devoting more resources to the analysis of global financial market and their relationship with the macroeconomic policy (International Monetary Fund ). However, IMF will publish the Global Financial Stability Report twice a year in order to analyze the current analysis of development in global financial markets. Besides that, IMF working staffs also work with central bank member in each country to help them identify potential risk and then find the solution to counter the risk as well as reduce the risk. As a result, each member country can achieve the financial stability, including through the Financial Sector Assessment Program. The Financial Sector Assessment Program is jointly and run by the IMF and World Bank to warn countries to concern the risk in their financial sectors. In addition, the IMF will also offers some training programs to country officials on how to manage well in their financial system operation, monetary and exchange regimes, and capital markets. The main purpose of IMF offers the training programs is to reduce the human error in daily financial operation and improve the quality of work. Therefore, the training programs can help each country development in their financial industry due to the efficient and effective working skills contribute by the staff. Malaysia Central Bank Administered Legislation: The Central banks in Malaysia has the legal power to meet its objectives such as: -to sustain high economic growth -to maintain a high level of employment -to maintain the price stability -to ensure a reasonable balance in the countrys international payments position -to eradicate poverty -to restructure society In order to enable the bank functions well and control all financial institutions in Malaysia, the Central Bank is given with comprehensive legal powers under the various Acts and Ordinances to regulate and supervise the financial system in order to control the banks in each country to follow the rules and regulations and operate with the legal license too. These acts include as below: a) The Central Bank of Malaysia Act 1958 The Act provides for the establishment, administration, power and specifies the roles of the Central Bank. It also enumerates the powers and the duties of the Central Bank in relation to: The Central Bank of Malaysia has the right to issue out the currency in the country in order to achieve the economic growth rate and maintain the economic stability in the financial market. The maintenance of external reserves in order to safeguard the external value of the currency. It also provides banking services to state government and government owned institutions. -The authorized business of the Bank is every of the financial institutions must acquire the license that issued by the Central Bank of Malaysia before they operate their financial transactions businesses in Malaysia. If not the businesses are considered as illegal and the Central Bank of Malaysia has the power to fine the particular owner or jail him/her. -The Central Bank also has the specific powers to deal with ailing institutions because they need to provide the necessary financial support to those ailing institutions in order to protect them in the financial market place and avoid from bankruptcy. Central Bank of Malaysia also has the relationship with the Government and financial institutions in the market because Central Bank needs to control the monetary stability I the market so that the inflation or recession will not too high or too low. The Act also contains general provisions on the Banks accounts, powers to compound. b) The Banking and Financial Institutions Act 1989 (BAFIA) The main purpose of BAFIA provides the licensing and regulation of financial institutions which conduct the businesses of banking, finance, merchant banking, discount house and money- broking. Besides that, BAFIA also provides for the operating regulation of the financial institutions which is the difference types of the service that offered by the financial institution included the non-bank sources of credit and finance, such as credit card companies, building societies, factoring, leasing or purchasing companies and the growth of finance institutions. However, the Non-scheduled institutions which are related to finance may also be related to the BAFIA as the Minister of Finance may decide whether the business can operate in the financial market or reject due to the limitation of the new entry of business firms. c) The Exchange Control Act 1953 The Act is formed to restrict any activity that involved in dealing in gold and foreign currencies, transaction with the residents, issuance of securities to foreign countries, imports and exports products and settlements. Besides that, The Exchange Control Act also enhances the Controller for Foreign Exchange to require permission and agree on the precedent and to compel the provision of the Act. d) The Islamic Banking Act 1983 The main purpose of The Islamic Banking Act 1983 is contributed for the licensing and regulation of any bank that wants to deal with the Islamic banking business. The Act vested the provisions on the financial requirement and duties of an Islamic Bank, ownership, and the procedures to control and management of Islamic banks, restrictions on Islamic business, acquire the powers of supervise and control over Islamic bank and other general provisions such as penalties and fine if the bank make any mistake in managing the Islamic business in the transaction. e) The Insurance Act 1996 The Insurance Act 1996 has the provisions to deal with the licensing of insurers, insurance brokers, adjusters and reinsurers. Besides that, the act also deals with establishment of subsidiary and offices, establishment of insurance fund in the firms, give the instruction and control of failure insurers, the control on management the distribution of licensee, accounts of licensee, examination and identification the powers of the Central Bank, winding-up of the firms, shift of business of licensee. The Act also provides for issues relating to policies, insurance guarantee provident fund scheme, and enforcement powers of the Central Bank, offences and other basic provisions. f) The Takaful Act 1984 Any takaful businesses in Malaysia need to register and follow regulations in the Takaful Act 1984 and the other purposes of relating to or connected with takaful. Takaful means that mutual assistance which provides for mutual financial relieves and assistance to the participants in case of emergency whereby the participants in the Takaful must also mutually agree to contribute for that mutual financial purpose. g) Emergency Act 1979 and the Essential Regulations 1986 An Act to provide the Central Bank the provision to identify the affairs of any person it suspects or has specific reasons to believe is a deposit-taker. The act empowers the rights to the Bank to freeze the properties of the deposit-taker and other person that suspect has the relation with the deposit taker. The Act also enumerates the powers of the Managers, provisions on anteriority of payment and cost. h) The Loan Ordinance 1959 The Loan Ordinance 1959 to authorize the raising loans and issues related to purpose of the Development Fund in the market within the Federation by the Government. Moreover, the Act also enables the Central Bank act as the agent of the government and enables the raising of the loans by trend of book-entry such as the scripless. i) The Treasury Bills Act 1946 The Treasury Bills Act 1946 is one of the acts to contribute for the issue of Treasury Bills in the market Malaysia. Through the Treasury Bills Act 1946, Central Bank will act as the agent of the government in order to conduct the book-entry such as the scripless and others. j) The Government Investment Act 1983 An Act to contribute on the Minister power to receive injection of money for fixed period and to pay dividend thereon. IMF agreement: Each country government will sign an agreement with IMF which is shown as below: (i)   Ãƒâ€šÃ‚   The operation of the International Monetary Fund should follow the agreement which is signed by IMF and Central Bank to avoid any conflicts in financial transaction because of the provisions of the agreement as originally formed and adjusted will protect each side benefits without any fraud will happen in future. (ii)    The provided fund to practice its daily operations and financial transaction should always constant in a General Department and a Special Drawing Rights Department. However, all of the members in the provided fund shall given a chance to take part in the Special Drawing Rights Department (iii)    All the transactions and operations authorized by IMF Agreement should be practiced through General Department which has responsibility of enabling the fund available in transaction and operations. Inversely, some of the operations and transactions consisting special drawing rights have the alternative to conduct through the Special Drawing Rights Department instead of General Department. History of Fiat Money. (n.d.). Retrieved July 28, 2010, from Fiat money history in US: https://www.kwaves.com/fiat.htm#top J.Greene, R. (2004, March 21). Fiat money systems. Retrieved July 24, 2010, from Fiat money systems: https://www.gold-eagle.com/editorials_04/greene032104.html iKyo. (2009, June 18). Functions of central bank. Retrieved july 25, 2010, from Functions of central bank: https://ikyo.wordpress.com/tag/functions-of-central-bank/ Mobekk, E., I.Spyrou, S. (2002). Re-evaluating IMF involvement in low-income countries. the case of Haiti , 11. International Monetary Fund . (n.d.). Retrieved July 20, 2010, from About IMF: https://www.imf.org/external/about/whatwedo.htm IMF-International Monetary Fund Home Page. (n.d.). Retrieved July 23, 2010, from About IMF: https://www.imf.org/external/pubs/ft/aa/aa00.htm Fish, W. (2003, june 08). The Terrorism Of Debt. Retrieved August 17, 2010, from Information Clearing House: https://www.informationclearinghouse.info/article4368.htm Perkins, J. (2004, November 9). Confessions of an Economic Hit Man. Retrieved August 7, 2010, from How the US Uses Globalization to Cheat Poor Countries Out of Trillions : https://www.democracynow.org/article.pl?sid=04/11/09/1526251