Showing posts with label Financial Institutions And Transactions Assignment. Show all posts
Showing posts with label Financial Institutions And Transactions Assignment. Show all posts

Friday, 14 December 2018

Understanding of the Client

Risk of Material Misstatement at Financial Statement Level

Section A: Understanding of the Client

  • Salix Pharmaceuticals is a specialty pharmaceutical company. It is engaged in purchasing, developing and trading in medicines and equipment's helpful for gastrointestinal disorders.
  • The company's head office is located in North Conecticut, State of Delaware.
  • Salix is listed on NASDAQ stock exchange.
  • Company is considering merger with Valeant Pharmaceuticals International such that Salix would become a subsidiary of Valeant in the recent future.
  • On 28th of January, 2015 the company identified that its earlier quarter statements would be restated considering certain errors and shall not be relied upon.
  • Company's subsidiary Santarus along with its licensor has commenced a case in US district court against Par Pharmaceuticals Ltd. for infringement of its six patents.
  • Company had made an announcement that its leadership would change in the end of January and the company would have an acting chief executive officer till a new CEO is selected.
  • Company has Xifaxantablets as their base pharmaceutical products and in case any day the consumption of these tablets is unaccepted by the customers, the company may be majorly negatively affected.
  • Company has taken large amount of borrowings, which have potentially booked its future income for payment of interest and repayment of the debt.
  • The company has already sold a large amount of its products to the wholesalers. This may mean that its sales in future would be narrowed by the stock already available with those wholesalers.
  • To stay in the industry, company has to continuously keep innovating. While innovations on a continuous basis may not be possible, company also needs to work upon financing them, since already it is holding large amount of debts with covenants which may impede its ability to take further debt.
  • Company has made a loss of US dollar 414911 thousands in 2014 which in itself questions the ability of the entity to continue in future.

Section B: Risk Assessment

Risk of Material Misstatement at Financial Statement Level

  1. Risk of Material Misstatement at Financial Statement LevelControl Environment –Company has recently received a change in management and it has been accompanied by a decision of the entity to become subsidiary of Valent Pharmaceuticals Ltd. This raises substantial questions on the difference between management and ownership in the company. While the company is facing these situations, its subsidiary has initiated a claim for infringement of patents, which requires an assessment as to whether the company is considering earning through this prospect, because its other prospects may have been closed.
  2. Fraud – Presently there are no described fraud cases in the entity. But it has been highlighted that the company has sold excess stock to the wholesalers which can impede their ability to take in more stock. And, considering that the company is making losses even when additional stock has been supplied to wholesalers shows chances of fraud.
  3. Going Concern – The companyhas taken large amount of borrowings with covenant which restrict it from taking further loans. In the present industry where it is not having funds to carry out the necessary innovations, it seems that this covenant would result in hindering the ability of company to continue as a going concern. Further this borrowing comes with interest payment requirement when the company is incurring losses, this too can be assessed as a factor which questions going concern assumption.

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Risk of Material Misstatement at Assertion Level

  1. Completeness assertion on Sales – It is related as to whether all sales that have increased the level of stock with the wholesalers have been accounted for.
  2. Occurrence of research and development expenditure – The company is out of funds, and the income statement shows an expenditure of US $170,289 thousands. It needs to be considered as to whether it has even occurred.
  3. Rights on Assets – Salix is facing critical condition, this may have encouraged the management to show bogus assets or those assets which are not theirs.
  4. Allocation of absorption of intangible assets – Company has shown high amount of intangible assets absorption, it needs to be assessed whether allocation on yearly basis is right.
  5. Classification of Borrowings – No significant asset has been added to the financial, but a huge borrowing has been added. It puts a question as to whether the borrowing has been rightly classified as long term borrowing.
  6. Valuation of retained earnings – A negative figure of retained earning has been presented in the financial; a valuation basis needs to be assessed.

Risk Conclusion

At the financial statement level the control environment is not effective, depicting that the control risk is high for the business. Further, if the fraud and going concern be considered at the financial statement level, they are also high. In relation to the assertion level, each of the six assertions considered are depicting certain type of risks. The completeness assertion is depicting high risk due to inclusion of excessive sales to the figure. As for the occurrence assertion, research and development expenditure shown in the profit and loss depicts fraud risk. Right on assets assertion evaluation also highlights the possibility on depicting assets as owned when the business does not actually have a right on the assets. On the allocation assertion, excessive absorption of intangible assets has been provided, which again indicates a risk. Finally for classification assertion and valuation assertion too risk has been highlighted due to the expectation of wrong classification and negative retained earnings figure. Thus since the risk at financial statement level and the risk at assertion level both are high, the inherent risk associated with the financials of Salix Pharmaceuticals Ltd is high. Now, the final risk that needs to be assessed is detection risk. Since it has been considered that a major population would be selected and among the population 50% would be necessarily considered, it is expected that the detection risk would be low. However, considering the different fraud risk factors which show that there may be an involvement of management in fraud, which makes it difficult for the auditor to detect the misstatement, again increases the risk factor. Thus as per the AR model

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Audit Risk        = Inherent Risk x Control Risk x Detection Risk
= High x High x High
= High
Therefore the total audit risk for the audit is high. The assessment concludes that the overall company is located in high risk. This means that there are high probabilities that the auditor may not be able to detect the material misstatements in the financial statements.

Section C: Materiality Decisions

Since the company is making losses, materiality level cannot be set at Net Profit Income; therefore on the basis of average income of past three years that is $ 94152, materiality has been set at $42,368. The computation is as follows:
Materiality Calculation
Testing Level of the audit = Standard
Therefore assurance level of the materiality = 2.0
Materiality Base = Average Income for three years = $94,152
Materiality = 50% of Materiality Base               = 50% x $ 94,152                    = $ 47,076
Less: Most Likely Error = 10% of Materiality    = 10% x $47,076                     = $   4,708
Precision is 90%                                                                                                           = $ 42,368
Population Considered = Population above Materiality with Precision at 90%
= This means every account with balance above $42,368 at any time in the year would be considered in population
Sample Size                              = 50% of the population on the basis of risk
Planning Materiality would be the same, until the audit progresses further and additional conditions are recognized. Presently we are on the lower end of the range, due to high possibility of material misstatements. The users of the audit report are the shareholders of the company, whose holding would be transferred to Valeant. Therefore the objective is to ensure that any misstatement which reduces the value of their holding is identified properly.

Section D: Preliminary Analytical Procedures

A common size and horizontal analysis against the previous two years has been made, and it presents that the company had been performing satisfactorily till last year. It was only in 2014 when the company took borrowings and went into losses. Ratios like gross profit ratio, which is 70.20% in this year, and debt to assets ratio which is about 0.5, have been computed. These ratios suggest that while the factory operations of the company are still successful, there are other operations which are restricting its path to continue into unforeseen.

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What could go wrong?

  • Sales can be overstated in the coming years to show the worth of company to be taken as a subsidiary.
  • There can be overstatement of assets to ensure that the comparison between it and balance sheet's borrowing level which has been shown as long term debt can be retained.
  • The company may not be able to provide the profits expected by the Valeant Inc for merger. This may lead in the holding company reducing the operations of Salex Pharmaceuticals in future.
  • The company can also loss the present patent claim it has filed, which can result in further endangering the prospects of going concern of the organization through putting on more cash charge.

Institutional Arrangement On Biodiversity Conservation

This is a solution of Institutional Arrangement On Biodiversity Conservation that describes about Developing business

INTRODUCTION

This chapter outlines the theories that guide this study; and reviews related literature on biodiversity conservation, tourism and its socio-economic and environmental impact.The four theories are explained thus:

The Tourism Led Growth (TLG) hypothesis

TLG explains that international tourism generates foreign exchange, increases investment in the local areas, analyses economies of scale, increases income (Song, Dwyer and ZhengCao 2012). The hypothesis emphasizes that tourism can lead to long term economic business growth (Brida et al. 2009). With the view of tourism generated economic growth, economic benefit from the tourism initiative implemented in Benin is measured to determine its profitability and likelihood of growth.

The Structure-Conduct-Performance (SCP) Paradigm

The SCP paradigm presents an important theory for examining the market perspective of the supply from tourism. SCP paradigm proposes that the nature of the market system in which a firm operates determines the conduct of the firm and its overall performance such as its growth and profitability (Song, Dwyer and ZhengCao 2012). Therefore the content of an ecotourism package, the structure and strategies applied in execution of its activities, will influence the overall outcome of the tourism initiative. In the context of this study inclusive ecotourism practise with adequate understanding and involvement of stakeholders roles will give rise to a result oriented ecotourism activity unlike a decentralized practise where stakeholders are not fully involved.

Heterogeneity

Ecological heterogeneity is based on theoretical framework aggregated from the work of diverse biodiversity conservation managers and scientists; and the cross-cutting theme is “ecological heterogeneity in time and space” (Illuis 2003:504). The theory explains that heterogeneity underlies biodiversity and adaptive management (Illuis 2003)
Ecological Heterogeneity in the context of this study is the outputs of ecotourism activities which is either positive or negative and are produced with time. The result obtained will enable a more adaptive management of ecotourism activity to achieve its aim of conserving biodiversity and improving livelihood, without harming the environment further.

Interactional Theory

The interactional theory according to Wilkinson (1991) sees social interaction as a way by which communities are created, recreated and developed; which aids the fulfilment of emotional and material needs of the community. The interactional theory emphasizes that those relations in community influence the outcome of tourism-led development (Matarrita-Cascante 2010).
This study is based on these theories outlined; the interactional theory highlights the importance of community involvement, the SCP paradigm portrays the importance of outlining the roles of stakeholders as part of the structure of eco-tourism package, the TLG hypothesis illustrates the significance of evaluating economic benefit from tourism; and the Ecological Heterogeneity outlines the output from ecotourism practise which may be adverse in terms of GHGs emission, and aids adaptive management.

OVERVIEW OF BIODIVERSITY ISSUES AND CONSERVATION

Initially, interference in species habitat was caused by the need for food, living space and fuel; recent development in global economy, economic activity and demands from consumers drive the threat to biodiversity globally (Lenzen et al. 2012). According to Dikgang and Muchapondwa (2012), biodiversity provide different services such as provisioning services, regulation services, support services and cultural services and these services improve the economic processes; but unfortunately increasing human population, increasing cultivation and absence of awareness has significantly affected biodiversity (Kingsford et al. 2009). Conservation has been seen by some farmers as a luxury and as an issue of affordability, using different sayings to deter conservation such as "conservation begins after breakfast"; "it is hard to be green when you are in the red" (Conradie et al.2013:334). Kinver (2013) explains that ecologist have to improve their efforts in convincing people on the need for conservation, by identifying why it is important that the environment is adequately managed.
One of the practises that have led to increased loss of species is agriculture; however, none is to blame as increasing populations have led to increasing food demands and therefore the need for agriculture (Duncan 2013). Through agriculture (farming) species all over the world have been destroyed, even measures encouraged by nature reserves are limited and do not seem enough to reduce the cause of farming on biodiversity (Economist 2008).  According to Tisdell (2011), the main driver of agriculture is market failure: increase in markets and expansion of trade areas, which, in turn, hinders conservation approaches through creation of land space. Duncan (2013) argues that even though short term relationship with species look bright, the long term relationship with species currently does not look promising on sustainability. She further explained that for increased conservation of biodiversity as well adequate provision of food for increasing population, expanding agriculture is not a good practise and that intensification in a particular area is more favourable.
The second significant practise is deforestation due to need for timber; loggers have played a significant role in this area (Revkin 2012). However, a switch from cutting of trees to planting of forest trees will go a long way in conservation of species; although this method has been adopted in Africa, Asia and South America, deforestation is still practised in some parts of these continents (Black 2011). An example is in south-western Benin, a country in Africa where the economy is dependent on agriculture, livestock, trade and agro food processing; but where poor conservation practises have increased exploitation of natural resources(BECG 2010).According to Tanaka et al. (2013), this increased exploitation of biodiversity is due to the needs of the people; a core example is the increase in the need for rice in West Africa which inspired expansion of an area in Zou department (Zogbodomey, Benin) for lowland rice cultivation. Therefore, for policy decision to reduce impact on biodiversity, a global perspective should be adopted, which involves all stakeholders, both the local producers and the consumers of the products produced; forming joint decisions channelled towards adequate conservation approaches.

THE STAKEHOLDERS IN BIODIVERSITY CONSERVATION AND THEIR ROLES

For adequate conservation process a management plan is essential and this should involve all stakeholders, the measures to be taken should be agreed among the stakeholders and, importantly, the approach should suit the ecological requirement of the site(Young et al. 2013). Conradie et al. (2013), states that stakeholder identification is essential in meeting conservation targets as they contribute mostly, and are in better positions to execute plans for conservation of biodiversity. Young et al. (2013) suggested that stakeholders should be formed at a local and regional level; they divided stakeholders into three: Government and Government departmental representatives; users of biodiversity; and the technical and scientific advisers.

Government and Government departmental representatives

Governments play an important role by designing institutions for biodiversity conservation (Nilsson and Persson 2012). Reischl (2012) identified that governments are represented by their institutions on conservation and these institutions should interact, as well as be aimed to address biodiversity conservation issues. More so the support of governments and their representatives are needed for implementation of conservation actions formulated by scientist and practitioners (Arlettaz et al. 2010).
In the case of Benin Republic, CEBEDES (2007) highlighted that there are legal voids in Benin’s rules and regulations which needs to be addressed such as the traditional property rights, also that Benin’s legislative frameworks needs to be revised, updated and enforced; and development of capacity to support institutions are required.

The technical and scientific advisers

Scientific advisers contribute to conservation through their literatures; as they inform practitioners on biodiversity issues and proffer solutions to the problem (Arlettaz 2010). According to Laurance et al. (2012), strong science focused on real world conservation should guide research in biodiversity conservation.

Users of Biodiversity

Policies and programs on conservation have been re-articulated and have tried to focus on accommodating local needs and aspirations; leading ecosystem serving production that has an economic value and provide farmers with incentives and new handcraft, causing them to forgo the practise of over-using the environment (Dressler et al. 2013). But even with the increasing awareness and programs on conservation Rantala et al. (2013) explained that policy implementers and conservationist are yet to fully understand the needs of the people as well as secure the wellbeing of the people whose livelihood depended on the resources they no longer have access to.
The perception of community members and their understanding of biodiversity conservation are essential for the successful business management of biodiversity, as their knowledge will influence their interaction with the environment; and it is important that the local communities are a part of conservation plans made for their area (Vodouhe et al. 2010). The indigenous people have more knowledge of their environment and species that dwell in them, they are better positioned to know what can increase the survival of these species (CEBEDES 2010). Also, results from the fifth World Park Congress (WPC), gathered by the IUCN World commission on protected area (UNEP-WCMC 2012), showed that when assessing the role of local communities and indigenous people in decision making, a consideration of customary and territorial rights is very important. Conservation made easily accessible by the public and are more inclusive, produces better results and, the citizens in communities close to biodiversity to be conserved play vital roles in the conservation process (Kothari et al. 2013). Therefore analysing the roles of various stakeholders in a conservation plan is essential to eliminate conflict of interest and ensure adequate implementation of conservation practises posed.

Stakeholders in the pilot project on Koussoukpa Zogbodomey in Benin

The stakeholders identified in biodiversity conservation following the project in Benin were resource users, administrators, municipalities and Parliament members. The stakeholders’ roles during the research project were to analyse both the benefit of conservation currently implemented, alternative options and work towards implementation. They also assessed the security provided by legal frameworks implemented and the extent to which the institutional arrangements are sustained (CEBEDES 2007). The strategy used in stakeholder identification in the pilot project was to discover institutional and individual partners who were interested in biodiversity conservation in Benin, Costa Rica and Bhutan, and who are willing to share experiences on issues pertinent to conservation debates at local level and among the public (CEBEDES 2007). The stakeholders outlined in table 2.1 were the main actors who participated in the pilot project in Koussoukpa  Zogbodomey Benin (section 2.8). In each organization identified in table 2.1, large amount of players were involved, a comprehensive administrative organization of these players was found to have been crucial to the success of the pilot project (Alladatin 2010; CEBEDES 2010; Floquent, Alladatin and Abdelaziz2010).
Table 2.1        Stakeholders in Koussoukpa Zogbodomey Benin pilot project (Alladatin 2010; BECG 2010; CEBEDES 2010; Floquent, Alladatin and Abdelaziz2010)
Initiating EntityBasic InformationRole
CEBEDES (Benin Centre for Environmental; and Development, Economic and Social )
Sector: Non-Governmental Organization (NGO)
Centre of Operations:
Benin
Ownership: National-level
Governments
CEBEDE Xudodo acted as the facilitator in the project process.
Supporting EntityBasic InformationRole
AVIGREF (Village association for wildlife reserve management)Sector: NGO
Centre of Operations:
Benin
Ownership:
State-level governments
Organization of the Riparian population for the purpose of reserve management.
Sensitize population on the necessity to preserve habitat, flora and fauna.
Ensure that exploitation of natural resources promotes community development. Assist CENAGREF in performing task of control activities.
CENAGREF (National Centre for wildlife management)Sector: NGO
Centre of Operations:
Benin
Ownership:
State-level Governments
Manage the Pendjari National Park with the objective of preserving Benin’s ecosystem and biodiversity.
Controls the park and monitors species, park settlement, tourism management and potentials, and anti-poaching.
ECOBENIN (Benin Eco-Tourism Concern)Sector: NGO

Centre of Operations:
Benin

Ownership:
National-level
Governments
Act as major player in the promotion of ecotourism in Tanougou and Kouusoukpa Zogbodomey Benin.
DPNP (Directing Board National Park Pendjari)Sector: NGO
Centre of Operations: Benin
Prevention of path opening with heavy machines.

INSTITUTIONAL ARRANGEMENT ON BIODIVERISITY CONSERVATION

Institution is defined by North (1990:3) as “the rules of the game in a society or, the humanly devised constraint that shape human interaction”. According to MacDonald (2010)in the World Conservation Congress (WCC) legible institutions and struggles in conservation organizational order are addressed. Institutions limit or encourage the interaction between ecosystem and humans; however there are rules set up to moderate the interaction between social systems and ecological systems (Gatzweiler 2005). Due to the large scale of interaction between ecosystem goods and services, institutional diversity is also essential and more so the diverse governance structures should be fit into the different scales of interaction (Padmanabhan and Jungcurt 2012).
Mongbo (2008) explained that institutional arrangement play significant role in the transformation of Benin socially, focusing on its tourism and national park development; and according to Yami et al. (2009) for new developmental projects towards conservation of natural resources, institutional arrangement in place needs to be evaluated, identifying its weaknesses and strengths; if not sustainable practise may be undermined and finances lost. Barrett, Lee and McPeaks (2005) report that how well a community or nation monitor and enforce its rules and institution on conservation is more important than which rule they adopt; more so rules designed to be flexible are important for the advancement of development and advancement of goals; and the most common problem with communities and developing areas is that the capacity to enforce these rules are often time lacking.
There are different institutions that govern diverse conservation practise and some of this practise are more significant than the others, the most known are the Payment for Ecosystem/Environmental Service (PES), Protected Area method (PA) and the Biodiversity Development Agreements (BDA) which are further discussed in this report; more include the ‘fee-simple purchase’, ‘tradable development rights’, ‘preferential tax treatment for conservation’, ‘land restriction with regulation’. On a broader scale these least common types of conservation fall under the most significant ones listed earlier (Boyd and Simpsons 1999).  Stakeholders also play significant role in ensuring the execution of institutions established for conservation purposes; the institutions will have no effect if not enforced (Floquent, Alladatin and Abdelaziz 2010). Read More : Unit 6 Contemporary Issues In Travel And Tourism

2.5 CONSERVATION PRACTISES

2.5.1 Payment for ecosystem/environmental service (PES)

PES strategy spans over the interest of landowners and the need for biodiversity conservation, creating a more direct conservation model; PES is therefore a conservation system where private landowners are provided with financial incentives to execute conservation practises that protect the ecosystem as well as provide some of its services (Garbach 2012). PES has also been referred to as a direct payment method where conservationist gives incentives to individuals to preserve the ecosystem rather than destroy it (Ferraro and Kiss 2002). Ferraro and Kiss (2002) further explained PES advantage as it being a direct payment approach which is cost efficient, using the principle that the most economical way to acquire something is to pay for it rather than pay for something that looks like it. PES has some identifiable disadvantages,Clement et al. (2010) explained that PES program require funding and may be unsustainable over time. PES may cause conflict due to inequality triggered by payment to some members of the society; and local people may use the conflict as an avenue to fight against conservation (Dressler et al. 2013).
PES have been practised in different countries but significant to this study is the practise in Costa Rica; in Costa Rica the practise of PES caused other likely conservation schemes to be ignored, putting minor importance on agricultural context and concentrated on financial incentives (Vignola et al. 2012).  PES although somewhat effective in conservation of biodiversity in Costa Rica is understood when related to Costa Rica’s national budget; after the first decade in 2006 PES caused a 0.43% increase in the national budget and an increase of 13.3million USD in Costa Rica’s annual budget (Daniel et al. 2012).

2.5.2 Biodiversity Development Agreements (BDA)

BDA connects the interest of biodiversity owners and users through the arrangement of biodiversity prospecting efforts, which according to Kursar et al. (2006:1), biodiversity prospecting is “the investigation of biodiversity as a source of useful medicines or genes and in practice might provide the expected benefits”; but biodiversity prospecting is being used below its potential in biodiversity rich region. BDA’s strategy is to sell successfully conserved products and thereby pay royalties to the host government for each sale; BDA advantages include technology transfer, training, payment and job opportunity (Kursar et al. 2006).

2.5.3 Protected Area (PA)

According to Dudley (2008:8) “A protected area is a clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long term conservation of nature with associated ecosystem services and cultural values”. Being the cornerstone of biodiversity conservation approach in the world (Gregoire et al. 2007) the aim of protected areas is to limit natural resource exploitation (UNEP 2013). More than 12% of the earth’s land surface is among the world designated protected areas but yet biodiversity loss continues at a higher rate (UNEP-WCMC 2008). Steady increase in ecological isolation have caused forest habitat loss around protected areas explained Gregoire et al. (2005); the degradation of the surrounding area of a reserve can led to changes in soil, in vegetation composition, in its microclimate and perhaps species extinction(Gregoire et al. 2005, Dikgang and Muchaponda 2012).
Lack of incentive to communities where protected area is practised have caused conflict and also caused exploration of non-adequately managed protected areas (Vodouhe et al. 2010, Dikgang and Muchaponda 2012). Another limitation with protected area is the existence of poor payment to staffs, poor infrastructures for workers, in some cases where human settlement are involved, finance is required to adequately settle the people who are being displaced from their habitats (Clement et al. 2010).  Leverington et al. (2010) illustrated that despite insufficient funding and unsatisfactory inventory management, there are positive results showing positive impact of protected area in biodiversity conservation. The Rapid Assessment and Prioritization of Protected Area Management (RAPPAM) have been developed by WWF to monitor effectiveness of protected area as a biodiversity conservation measure (Ervin 2003).
IUCN protected area management categories include: strict nature reserve (ecotourism sites), national parks, natural monument, habitat/species, protected landscape/seascape, and managed resource protected area (Dudley 2008).An example of protected area is the Pendjari biosphere reserve (ecotourism site) which has an area of 480,000 ha, one of the largest protected area groups in West Africa spanning across Niger, Burkina Faso and Benin (Alladatin 2010).

2.6 ECOTOURISM AND PARK DEVELOPMENT

Tourism according to World Tourism Organization (WTO) is ‘activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business strategy and other purposes not related to the exercise of an activity remunerated form within the place visited. Ecotourism is therefore tourism that is nature-based and managed for sustainability (Gurung and Seeland 2008). The practise of ecotourism is identified in Conradie et al. (2013) as a marker for conservation mindedness. Ecotourism is currently seen as one of the most significant areas in the world economy; contributing extensively to income and welfare of countries (Motavalli 1995, Gossling et al. 2005). The success of ecotourism in countries such as Costa Rica is impressive and has increased the attraction of other countries to adopt ecotourism as a form of economic growth as well as environmental preservation (Higgins 2006).
Despite the benefits of ecotourism, ecotourism has some impacts on the environment explained Gossling (2002) and they include:  land use and land cover, where land is used for road development, erection of building for accommodation and catering services; energy use in terms of transport related activities which led to increased emission of greenhouse gases and global warming. Also biotic exchange and wild life species extinction, through international commerce and live organism trade in; exchange and dispersion of diseases, through transport of infected organism, disease from tourist from new locations; changes in human-environmental relations; and water use.
Furthermore, crucial to tourism sustainability is, fossil fuel use and greenhouse gas emission, which from a global perspective is, the most urgent environmental issue in relation to tourism; transportation, assessing journey level from 60% to 95% in-addition to transport locally; accommodation and tour activities (UNEP 2011). Tourist industries and organization in tourism business fear that energy prices may cause decline in countries’ economic welfare through eco-tax payment (Gossling et al. 2005).

2.7 STUDY AREA

2.7.1 Benin

Benin is a country in West Africa, bordering Nigeria, Burkina Faso and Togo. Benin is small in size with an area of 112,700 sq. km and a population of 9,877,292; Benin has been described as one of the poor countries in Africa with most of the population dependent on agriculture for their livelihood, although cotton production and regional trade is practised (CIA 2013). In West Africa, Benin is popularly known for its most heterogeneous flora and fauna even though resource identification is yet to be completed (Mongbo 2008). The economy of the country is still underdeveloped and according to 2012 estimate, has a GDP of $15.84 billion (CIA 2013).

2.7.2 Benin economy

The decline previously recorded in Benin’s economy was gradually reversed since 2010; in 2012, a 3.8% of growth was estimated and is projected to increase in 2013 and 2014; one of the areas of focus for achieving this growth is the elimination of hindrance in its agricultural practises and natural resource mining (African Economic business Outlook 2013). As found in Song et al. (2012) and Conradie et al. (2013) this action may deter biodiversity conservation approaches which aim at preserving the environment via reduction of agricultural practises, however, either practise (agriculture or biodiversity conservation) may become a priority depending on its potential to improve Benin’s economy.
Records also hold that rapid deforestation is experienced in Benin, with increasing population; and consequently Benin has lost about 70,000 hectares of forest per year between 1990 and 2001; every year at least 1,600km2 of tree formation are converted to farmland (BECG 2010). More so about 280 plant species which represents 10% of the flora are threatened; however global strategy explains that a minimum of 60% of the threatened species require conservation in a protected area (Houehanou et al. 2012).

2.7.3 Benin’s biodiversity conservation practise

Inconsistency in the implementation of conservation plans is prevalent in Benin and absence of corrective actions are still unknown (CEBEDES 2007). Benin’ s rich natural resource protection have not produced benefits like conservation in Costa Rica, and institutions managing its natural resources are weak and most times bypassed by the habitants, causing increase in biodiversity depletion. Therefore, there is need for institutional products development and its enforcement; involvement of the habitants of these areas in the institutional formation to eliminate the lack of compliance. Also the institutions should favour the populace if not they are not likely to be sustained. Conservation practise likely to favour Benin is Protected area services specifically tourism (CEBEDES 2010).
Protected area management is currently practised in Benin, covering about 20% of the national area, example include the Pendjari national park, transnational W park, Gazetted forest, community protected wetlands, sacred forest (Houehanou et al. 2012).  Houehanou et al. (2012) observed that although this reserve is well managed and has increased tourist attraction in Benin, focus is more on conservation of the wide range of animals in the reserve than the vegetation present because the former provide more financial resources than the latter.

2.7.4 Zogbodomey: Lokoli-Hlanzoun Swamp/Koussoukpa Swamp in Benin

Zogbodomey in the South-Western Benin is where the heart of the Lokoli-Hlan River lies (Figure 2.1).
Figure 2.1:       The Hlan river (Floquent 2010)
Institutional Arrangement On Biodiversity Conservation
Figure 2.2        Map of Zuo Department (Zogbodomey community) (Tanaka et al. 2013)
Institutional Arrangement On Biodiversity Conservation
The Hlan River is a swamp forest with an area of about 500acres interspersed with wild Macabo Taro, as shown in Figures 2.1 and 2.2 above. The site spans across Dome, Zogbodomey and the Toffo community, but most of the river is developed in the Koussoukpa one of the administrative district in Zogbodomey Benin (Alladatin 2010).
A large number of plants and animal species habit the swamp forest; some of the plant species include: Alstonia congensis, Syzygium owariense, Hallea ledermannii and Nauclea xanthoxylon and some animal species are Lutra maculicollis, cercopithecus aethiops tantalus,and Atilax paludinosus.Some of these species are under threat, while some are rare and endemic; also some are used by the population as food (Floquent, Alladatin and Abdelaziz2010).The population of the area that covers the Hlan forest is summarised in Table 2.2.
Table 2.2:                    Population in the study area   (Floquent 2010)
Villages

Total

Men

Women
Lokoli-Koussoukpa1675790885
Deme1323623700
Hon1496700796
Kpome525225732681
Total974646865062
The Zogbodomey economy is based on agriculture, livestock, trade and agro food processing; 80% of the population is dependent on agriculture, maize and groundnut are the main crops cultivated, however, vegetables, cassava, cotton, cowpeas, soybean and rice are grown as well. Most of the enterprises in Zogbodomey refine the products from agriculture (BECG 2010). The people also practise livestock production on pigs, poultry, goat, rabbits and sheep. Increasing exploitation of biodiversity is due to the needs of the people and the dependence of their livelihood on agricultural practises (Tanaka et al. 2013).

2.8 PILOT PROJECT ON KOUSSOUKPA SWAMP (ZOGBODOMEY)BENIN

2.8.1 The Project Initiative and Approach

The Project was designed to address biodiversity conservation challenges by drawing experiences from Costa Rica, Bhutan and Benin, identifying opportunities, options and designs adoptable at community, municipal and National levels (CEBEDES 2007). Lessons were drawn for three types of protected areas: gazetted forests, national parks and community protected areas.One of these community protected areas is the Hlanzoun swamp forest in Koussoukpa Zogbodomey community. Significantly one of the project’s objectives was to contribute to the protection in the Hlanzoun swamp forest through ecotourism promotion using initiatives from practise in Bhutan and Costa Rica (Floquent 2010).

2.8.2 Project Activity

Different activities were carried out during the project. CEBEDES (2010) reports that an exchange trip was organized with AVIGREF for some people in Hlanzoun to visit Pendjari National Park in Benin for an experience of the practise in the biosphere reserve; this in essence is to influence the Hlanzouns’ perception on ecotourism, train and teach them on ecotourism practise. Also a visit to the Tchaourou, Toui and Kilibo (TTK) forest was organized to assess the conservation activity in the forest. An Ecotourism centre was set up in the koussoukpa Zogbodomey Benin and a forum of discussion for results obtained from project was planned. However this project was stopped at the initiation of ecotourism in the Koussoukpa Zogbodomey Community in Benin and there has not been any analysis on the economic impact of the initiative (CEBEDES 2010). See more : Managing Financial Resources Decisions Assignment

2.9 BIODIVERSITY CONSERVATION AND ITS ENVIRONMENTAL AND SOCIO ECONOMIC IMPACT (ESIA)

2.9.1 Economic impact

According to Meffe (2008) one of the drivers of biodiversity loss and destruction is economic growth. The kuznet curve which is an inverted U was used to explain the relationship between income per capita and environmental quality: environmental degradation (biodiversity loss) increases alongside increasing income and at some point environmental degradation decreases (Kuznet 1955). In this scenario the income per capita explains the economic impact while environmental quality is biodiversity state. Although Czech (2008) suggests that in a macroeconomic situation, the kuznet curve is seen as a fallacy and is not exactly important. Also, Dietz and Adger (2002) hypothesised that the relationship between biodiversity conservation and economic growth cannot exactly be assessed within the Kuznet hypothesis framework; explaining that due to the current rate of species extinction, biodiversity loss may slow at some point of rise in income but cannot be reversed.
Agriculture is deemed the foundation of economy and the main activity which impacts on biodiversity, examples include, farming, logging, livestock rearing and mining (Czech 2008). As ecosystem is used the output in the economy also increases, as illustrated in Figure 2.3. However, biodiversity conservation with incentives also gives rise to increase in economy, as in the case of Costa Rica where most of its conservation practises led to increase in the country’s finances especially ecotourism which is now the main source of finance in Costa Rica (Floquent and Abdelaziz2010).Kursar et al. (2006) recognised that the challenge of integrating biodiversity conservation has been identifying its economic value and thereby justifying its implementation.
Figure 2.3        GDP produced over time from ecosystem input (Czech 2008)
Institutional Arrangement On Biodiversity Conservation
Analysis of economic impact of biodiversity conservation plans for a country, region or community should have incentives for the habitants and on the long run enhance economic development; research have shown that ecotourism is expected to yield economic benefits such as creation of jobs, increase goods and services supply, enhance building maintenance and generate revenues for the government through tax (Kirkby et al. 2010). Therefore, tourism brings about changes usually observed in economic growth (Matarrita-Cascante 2010).

2.9.2 Social impact

Social features include attitudes, connectedness via groups and networks, relations of trust, exchanges of goods, knowledge and social norms (Moon, Marshall and Cockline 2012). According to Mkapa  in the UN GSSD expo (2013) for a successful sustainable development and green economy achievement, development must be inclusive, meaning everyone at different levels must be involved; he further explained that incentives to host community is also one of the keys. This inclusive sustainable development will led to activities such as environmental education, lecture presentations and public and media relations; and they are to be incorporated in the biodiversity conservation project plan and will in turn impact the social economy positively as well enhance social concerns (Lee and Iwasa 2012). Conservation practise that positively impacts users and owners of biodiversity motivates people participation. Moon, Marshal and Cocklin (2012:293) stated that “conservation policies that maintain or improve landholders, personal circumstances, and promotes pro-environmental norms may result in increased participation and thereby conservation outcomes”.

2.9.3 Environmental impact

Environmental Impact Assessment(EIA) is essential in identifying the specific conservation strategy useable for different threatened species (Safont et al. 2012). Also Gontier et al. (2006) explained EIA as a tool to be applied in planning biodiversity conservation practises; various activities and processes are involved in conservation implementation such as infrastructural development; these practises differ and may have diverse impact on the environment. Therefore it is possible to analyse the possible impacts of any kind of activity on biodiversity through defining biodiversity’s composition, key processes and structure; and explaining how projects programs affect biodiversity components (Slootweg and Kolhoff 2003).
Intact forest ensures reduced carbon emission into the environment and hence increased carbon credits (Kursar et al. 2006) and one of the side effects of expanding land use for agriculture is increased greenhouse gas emission (Gelfand et al. 2011).Vegas-Vilarrubia, Nogue and Rull (2012) stated that species extinction and species distribution shifts increases global warming and vice versa. Slootweg and Kolhoff (2003) further explained as shown in Figure 2.4, that in analysing a large project the following must be put into consideration: firstly the program which may be a biophysical intervention will give rise to a biophysical change which may be changes in its recipient’s characteristics (example soil, water, flora and fauna, air) secondly, each biophysical change may cause a link of second-order and higher-order biophysical changes: lastly biophysical change may cause on-site changes (influence in the area of project) and off-site changes (influence outside the area of project).
Institutional Arrangement On Biodiversity Conservation
Figure 2.4        Project impacts and changes (Slootweg and Kollhoff 2003).

2.10 GLOBAL WARMING: GREEN HOUSE GAS (GHG) EMISSION

Global warming also recognised as global climate change is as a result of increased concentration of greenhouse gases in the atmosphere (Choaqun 2011). Global warming is now evident and CO2 is the main contributor, expected to account for 60% of the GHG emission in the next century (Dhillion and Wuehlisch 2013). CO2 emissions are caused by burning of fossil fuel, consumption of goods and services, activities that destroy the natural vegetation (Davies and Caldeira 2010). As illustrated in figure 2.5, Africa’s forested area, contributes 21% of the global carbon stock, which is analysed to monitor the trends in climate change (FAO/UN 2011). Other gases, the non CO2 ‘Kyoto gases’ contribute to global warming and they include chlorofluorocarbons (CFC), nitrous oxide and methane; these gases contribute one-third of CO2’s GHG emission but they have high global warming potential, for example methane accounts for 3.7 times the global warming of CO2(Meinshausen et al. 2009). Tourism contributes to global warming through the emissions from accommodation, transport and activities; and as at 2005 tourism contributed 5% to CO2 global warming (Scott 2008).Through the 20th century global warming has increased by 0.8oC and is projected to rise by 1.4 to 5.8oC, as shown in Figure 2.6. This has caused the increased focus on a low carbon economy,reducing pollution, carbon emission and energy consumption; and all over the world, measures and strategies to reduce the accumulation of GHG in the atmosphere are been analysed (Choaqun 2011).
Figure 2.5:       Africa’s carbon stock in forest Biomass (FAO/UN 2011)
Institutional Arrangement On Biodiversity Conservation
Figure 2.6        Surface temperature change and Kyoto-gas emissions (Meinshausen et al 2009).
Institutional Arrangement On Biodiversity Conservation

2.11TOURISM AND GLOBAL WARMING

Although researchers have commented that climate change impacts tourism negatively, it is important to note that ecotourism also increases climate change, through GHG emission from accommodation, catering services, transport and some other tourism activities (Perch-Nielson, Sesartic and Stucki 2010). Also UNEP (2013) identified that one of the main challenges of tourism is the growth in its energy consumption and GHG emissions. Filimonau et al. (2013) confirms that the footprint of tourism through GHG emission is obvious, as shown in table 2.3, therefore in the quest to reduce climate change and ensure sustainable development through green practises like ecotourism, plans to reduce emissions of GHG impact of tourism are also essential.
Institutional Arrangement On Biodiversity Conservation
Table 2.3:                    Tourism CO2 contribution (Scott 2008).
Tourism contributes about 4.4% of the global CO2 emission and a growth rate of 3.2% per year up to 2035 has been projected for emissions. Climate change is fast rising and to avoid its danger there is need to reduce emissions by 3% to 6% per year starting from 2015 (Peeter and Dubois 2010).
Filimonau et al. (2013) further mentioned that measurement of GHG emitted per activity is therefore inevitable. GHG emissions measurement against the economic impact of ecotourism helps determine if ecotourism is actually alleviating environmental issue or increasing it; this measurement can be through eco-efficiency calculation which measures the amount of GHG per unit of revenue generated (Gossling et al. 2005). GHG intensity calculation is another method of measurement, which, analyses GHG emission against value added by an economic activity, which in this case is ecotourism (Perch-Nielson, Sesartic and Stucki 2010). Munday, Turner and Jones (2013) explained that measurement of GHG is also viable as recently, data used in tracking tourism consumption have been improved such as the Tourism Satellite Account (TSA), World Tourism Organization (WTO) and World Bank.
Although Becken (2008) stated that climate change challenge caused by tourism is an avenue for tourism to stir towards being more strategic, systematic and sustainable. Weaver (2011) proposed that the view on climate change issues from tourism will hamper the productivity of a sustainable tourism; explaining that tourism and its climate change challenges are not fully understood, and possibly no solution may be discovered. However, more research in sustainable development will always be followed by research on climate change for achievement of more sustainable development (Scott 2011).
As a form of solution Butler (1980), Middleton and Hawkins (1998), SAIC (2006) and Serrano-Bernardo (2012) suggested different models as an effective means to monitor environmental issues. However their suggestion varied in different ways, while SAIC (2006) focused on discussing the Life Cycle Assessment, Butler (1980), Middleton and Hawkins (1998) focused on assessing tourism destination cycle and tourism carrying capacity, further Serrano-Bernado (2012) stated the possibility of adopting the SAIC (2006) cycle for all tourism activity. Figure 2.7 outlines the Life Cycle Assessment framework.
Institutional Arrangement On Biodiversity Conservation
Figure 2.7:       Life Cycle Assessment Framework (SAIC 2006)
More so Choaqun (2011) suggested that for a tourism that support sustainable development, renewable energy technology can be used; renewable energy source are solar, biomass, geothermal, hydro and wind energy, which do not harm the environment. This in turn will lead to development of new ideas for tourism enhancement.

2.12 CHAPTER SUMMARY

Despite all the cited literature herein, there still appear gaps in knowledgeregarding:(1) the roles of stakeholders in biodiversity conservation in Benin Republic. (2) The likely economic benefit of the ecotourism initiative implemented in Koussoukpa Zogbodomey Benin. (3) The adverse environmental impact of ecotourism in Benin Republic, in terms of GHG emitted into the environment. The next chapter outlines methods employed to address this mentioned gaps in knowledge.
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Internet And The Chinese Communist Party

Internet And The Chinese Communist Party
To the communist party and internet are two entities that are linked by issues of information access and censorship. The communist maintains its political power but suppressing all imagined criticism and opposition that is directed towards the regime. Lipset argued that political legitimacy could convince those being ruled that the political system of the day is desirable without considering how effective the regime can meet people’s basic needs. However, Internet And The Chinese Communist Partyallowing citizens to freely access the internet and share their opinion without censoring does not mean that the Chinese society has transitioned to democracy or the fall of the communist party. The government on many occasion has been  put into spotlight with have it respond to certain issues and events that happen within the society and the ruling party has been forced to address it and assure the public that such an event will not occur again. In such cases, the citizens have felt that they have been heard and cared for and this has an indirect effect of raising the legitimacy of the ruling party. The ruling party deserves some credit for it has lead china through rapid economic prosperity that has increased the living standard, life expectancy, and literacy levels.
Many Chinese are not involved in politics especially of opposing the policies of the ruling party and therefore, they are not affected by censorship as some in the western world have projected. Even if there was free access of internet, the most crucial aspect for the ruling party to continue ruling is to prove that, the political system of their country is legitimate. Enforcing better security processes and solving social issues can improve the legitimacy and effectiveness of the ruling party. Therefore, free internet has enabled the population to demand for more human rights and freedom. The government on the other hand has been forced to respond to some of the people’s demand to win their belief that the party and its policies are still important for the welfare of its citizen.
However, rights groups and answers from the respondent indicate that people are actively debating online about the issues that affect them. Lipset argued that, ‘‘A crisis of legitimacy is a crisis of change’’  and there is no doubt that the ruling communist party will one day face a crisis of legitimacy and be removed from power by force or by stepping down. Democratic value willing the long run be enforced as many people continue to seek freedom of their self but Limongi argue that there is a significant indication that democracy will emerge from conflict, war or economic crisis. Therefore free access information through the internet can be the first step towards democracy but in some cases, this has less impact to the autocratic of the day.
It is clear from the study that many Chinese want to be given more freedom to express their views without being censored but at the same time, they are not willing to challenge the government for they fear the consequences of opposing the government and the resultant benefits that will be lost. However, the study has indicated that, the overall population is willing to demonstrate and demand change on issues that they feel they are not adequately addressed. This shows that public has become more aware of their rights through interaction on the new media but this is not enough to make concrete changes in a society of Chinese caliber  has been under communism rule or over seventy years. This is where the issue of legitimacy comes in. With tremendous improvements that have been carried out by the ruling communist party to improve the Chinese society, the public cannot take them for granted and they view the ruling party as effective and legitimate. Nevertheless, the question here is how long the ruling party can sustain the improvement made so far before the public demand for more. Currently, the ruling party has sustained its legitimacy by addressing issues such as crimes and war on terror and preventing them from happening again. The terrorist event brought out the lime light of information sharing in the internet by use of blogs and network forums up to traditional media that are controlled by the government. This made sure that the government could not ignore but had to acknowledge the tragedy that had happened. With the advent of globalization, events censored in china can still reach other countries and this rises awareness outside china of what is going on. The ruling party find it difficult to dismiss criticism from foreign countries and as such, when there are violation of human rights, the ruling party will always promise to handle them but executing their promise becomes an issue.
Market analysis
five forces of Porter will to analyse market characteristics of the social networks in China.
Power of buyers
Social networks sell advertising space and those whose who advertise on this this sites are the buyers. Furthermore, online advertisement is not a preserve of the social networks alone but it also involves platforms. For example, twitter and Facebook are the main competitors of Google and yet they don’t offer the same services. The prospect of competition for online advertisement in china is high because many multinational companies are entering the Chinese market be causing of the booming economy. Because of these, competition for online space will increase and this will reduce the power of buyer
 New entrant power
Government restrictions have reduced the power o new entrants in the market. Foreign companies find it difficult to compete favourably with domestic companies because of strict censorship and regulatory policies imposed by the ruling communist party. In addition to political patronage of the government, other social factors for example the language is a great barrier to foreign companies that want to enter Chinese market. This leaves the big Chinese markets to local media companies and therefore, foreign companies and therefore foreign entrants enough to compete favourably with domestic companies that are well established. Furthermore, foreign companies that have Internet And The Chinese Communist Partyno right connections and fairly to conform to strict censorship policies have negligible probability by obtaining necessary authorization to enter the Chinese market.
Substitute threat
there are many players ranging from social networks, blog and search engines in the Chinese market. Blogs are popular in china and the country has over 50 million bloggers. Therefore, we cannot say that social network are the only platform where users can exchange and share information. The structure of social networks and blogs is different but they are similar in that they can substitute each other and serve the same function of passing and sharing information.  However, many internet users in china are loyal to social networks because of their personalized nature. Social networks that require user to use their real name have the highest loyalty and this reduces the completion rom bloggers and other form of social media.
Rivalry degree
In spite of the act that there are many online companies operating in china, competition on online arena is not up to the maximum and this is mainly because of restrictions that have been imposed by the government. These restrictions have made so many western companies unable to operate and compete with the domestic Chinese rivals. Major western companies like twitter and Facebook it difficult to compete in Chinese market with a culture inconsistent with what they are used to from their home country. Therefore as much as we can say that the use of internet in china is a sophisticated processes, it appears that market competition is low.
Conclusion
Chinese political system accentuates the fact that the Chinese communist dominates the state and other societal value through its permanent power monopoly. The autocratic policies of the Chinese government are embodied in controlling coverage of both the new and old media. The communist party uses the media to pass out propaganda of uniting the people against unforeseen challenges to international status and sovereignty of the state. The terrorist event that occurred in china exposed to us how fragile Chinese media is and how it is affected by the politics of the
[caption id="attachment_13691" align="alignleft" width="437"]Internet And The Chinese Communist Party In this photo taken July 20, 2015, Chinese veteran Sun Yibai, 97, looks at materials from his youth at his home in Beijing. Veterans such as Sun have long found themselves on the wrong side of the Communist historical narrative. Their service with the Nationalists led to imprisonment, persecution and often death in the years after the 1949 communist revolution. (AP Photo/Ng Han Guan)[/caption]
day. The authority not only control coverage of sensitive issues by old and new media but also require foreign providers to comply with strict restriction to track down offenders and suppress political dissents.
China is one of the BRICS country (Brazil, Russia, India, china and south Africa) (Machael Anti {2012, June}). The emerging economies of BRICS countries is providing a new economic power zone that will not only challenge the United States but also the European Union. Ironically, Machael Anti also ridicule for being one of the SICK countries (Syria, Iran, china and Korea North). These are the only four countries in the whole world with no access to Facebook. Michael observation is an irony of the current state of the new media in Chinese society that has experience dramatic socio-economic growth but with strict control of information disseminated on new media platform. China has the most sophisticated media censorship tools in the world that target both old and new media. Traditional media such as television, newspaper, radio and magazine are all the mouthpiece of the ruling communist party. New media censorship has limited debate on domestic social issues such as personal freedom of speech and poor Chinese human records that are considered topic that can disrupt social order.
The Chinese government has a system called the great firewall of china that blacklist certain search engines, keywords and websites as a response to threats resulting from unrestricted internet access. This complex nationwide firewall is designed to block subversive and pornographic material in real time that can be tweaked by inserting additional keywords. In china, internet use is closely monitored and the content filter. Nevertheless, even with censorship climate, social networks in china are still growing at a highest rate. As over 600 million internet users in china embrace social media, the government has to constantly control  the use of internet by blocking political content that is sensitive as part of its great censorship strategy.
Thousands of army officers are employed by the government to police and control internet use. The government has established internet police bureau that constantly checks chat lines, spikes in internet traffic, screens, monitors blogs with sensitive material, websites, and blocks those who violates the rules. In addition to the army, nearly half of party members of the communist party are also employed by the government to monitor and delete online objectionable content that is a threat to the ruling party. Ministry of public security encourages Citizens are to report disastrous information ranging from banned political issues and dissents and pornographic display.
Furthermore, the government has imported technology such as Green Dam and Youth Escort software that are used to block international websites that are regarded as a threat to the ruling party. Much of the filtering and spying tools that are used the communist government were imported from United States from companies such as Dynamic internet technology, Cisco Systems and Juniper Network. The exchange of uncensored information through the internet is a new kind of revolution for the citizens of china whose lives and mind-set have been tested by domestic social media that have Chinese texture and provide a channel for those who cannot be heard to express their views and opinion and make their voice heard. In china, petition systems without judicial supervision exist on domestic social sites and provides platform for peasants, petitioners and victims to petition the government online instead of going to Beijing. This is done by tweeting their grievances and complain on social sites such as weibo that are then picked by reporters, professors and celebrities that have a high number of followers and this attract the attention of the whole public.
Moreover, the exchange of uncensored information on new media has shaken the propaganda system of the ruling party and this has changed the relationship between the media and the government. The internet has become an important area for the government to monitor the concerns of the citizens. When the terrorist event happen, the new media reacted very fast to emergency and rapidly reported in more depth the news of the event rom multiple Internet And The Chinese Communist Partyperspectives and transferred the information on  a transparent way to democratic channels than the old media. This enabled the public to be together and help each other to address the calamity. In addition, new media has encouraged the citizen the probe the government on the issues of censorship system while at the same time motivating the state to reflect deeply about openness, accountability and transparency as revealed on the new media to bring more benefit to the Chinese populace, stabilize political situation, and serve the interests of the ruling party. The influence of new media has made it hard for the ruling party to completely supress sensitive news. However, popular western social sites like tweeter, Google, YouTube, Facebook and Tumblr have all been blocked.
In old china media was an arm of the government and it was used as a tool to achieve total dreams of domination. In contrast to old days, the new china has experienced tremendous socio-economic development with high numbers of Chinese reaching higher education level that were brought by socialist reforms of opening up. In a new china, a high number of people have sought to be granted freedom of speech and expression so that they can express their views and opinions. The emergence and development of new media in china has enabled Chinese to achieve some degree of freedom of expression in the virtual environment and this has reshaped public opinion within the Chinese society.
The new media has affected culture to appoint to constructing democratic structure by allowing the citizen to have a platform where they can express their views and opinion while at the same time enabling the government to know what is going on throughout the country. The ruling party has been criticised on many occasion for lack of openness and transparency. Growth and development of new media will spur economic development by stimulating economic growth, increase in productivity, job creation, and improve the quality of services and life. The government needs to have a positive attitude towards the development of new media and grant the citizens freedom of speech and expression by abandoning information censorship on the new media. Moreover, even though information on new media I s restricted by the Chinese censors, it is highly probable that some time in future, the new media will have a great political influence by actively debating, recommending and influencing certain policy actions  and prepare the public for a possible rise of democracy.

Financial Institutions And Transactions Assignment

This is a solution of Financial Institutions And Transactions  Assignment in which we discuss Developing business

Introduction

In any discussion concerning the subject of innovation, the financial resources sector rarely comes to the minds of people. The underlying truth is that more than ever before, the banking industry is insistent on innovation at almost all levels. Donovan, (2012) informs that the current financial systems are in the run for creating innovative financial transactions[1].  Even credit unions and the local community banks are in on the transformation despite their persistent problem of limited budgets and resources.
Currently, the financial transactions space is becoming a platform for innovative ideas in both practice and thoughts, particularly when striving to develop the experience of the customer in the market setting. Frame, Scot, and Lawrence, (2014) suggest that the modern financial institutions are strategizing their innovative end to their internal developments and customer-oriented strategies[2]. The strategy then translates to the creation of innovative financial institutions and transactions respectively.On the side of transactions, customers desire secure, fast, flexible and easy forms[3]. Innovative institutions are thus tasked with the role of monitoring the client’s lifecycle and attempt to optimize on customer engagement. This calls for the adoption of mechanisms to facilitate mobile-ready and real-time client approach that will forman all-round solution for efficient service delivery.
Regarding, the internal organizational developments, the key focus is on customer information availability. As Donovan, (2012), presents, the critical areas of concern, in this case, involve the client's information access and the attached security. The possibility of allowing the customer to access his or her information easily, fast and with flexibility while at the same time protecting it from unwarranted access is emerging as a critical agenda requiring innovation. Additionally, integrating client's information to his or her financial account is evolving as a significant challenge that bars the innovation in the financial industry.  Nevertheless, recent emerging innovative ideas in the industry include the mobile payments (wallets), true virtual cards, Bluetooth LE technology, and wearable payment methods are striving to address the challenge. On a general perspective, the advancement in mobile payment systems, peer-to-peer lending, online equity funding, and Cryptocurrency side chaining are meaningful milestones that innovation has worked on to define the future of finance despite the client’s information system security and integration challenge.
In 1998, PayPay launched the first Digital Wallet, which worked to streamline e-commerce[4]. Since then, the payment system has seen tremendous improvements that have leveled the economic competition playing field. Currently, patchy ventures activities arecompeting well with tech gurus like Google (Google Wallet) and Apple (Apple Pay)courtesy of the forward thinking of the global financial sector’s motive to see through the establishment of the next generation’s best way of money transfer[5]. Much of the recent innovative mechanisms are striving to
[caption id="attachment_1000255" align="alignright" width="300"]FINANCIAL INSTITUTIONS Dollar banknotes and stock of coins on a graph[/caption]
establish a payment system (True digital wallet) that is integrated into mobile devices thus complementing or rendering out-dated the checks, cash, and physical credit cards. An example of the recent product of the mechanism is the Venmo, which is growing as one of the popular methods of settling petty debts. Theapp is primarily convenient because of itsuse in conjunction with the world’s most used social media site (Facebook). The app hence satisfies the simplest consumer need that old and large financial institutions have never thought of.
Forward-thinking institutions are emerging with novel ideas on financial transactions. Donavan, (2012), gives the example of the emergence of the Peer-to-peer lending by Proper and Lending Club as one of the ideas that serves its market niche competitively[6]. The growth of these institutions is marvelous that just in a span of a year the little venture had already brokered over $8 billion in loans[7].These advancements are spearheading the innovativeness of the financial sector in delivering efficient and reliable services to its customers. However, at the face of these inventions, there is always the challenge of adoption headwind. If it were not for these drawbacks, the financial sector could have considered several innovation pop-ups every year if not a month.
In conclusion, the financial sector has seen new growth in both its transactions and ventures over the last two decades. The digital wallets, peer-to-peer lending, true virtual cards, Bluetooth LE technology, and wearable payment methods are remarkable innovative milestones in the financial sectors.
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