Female circumcision in other states

Female circumcision in other states An estimated 100 million to 140 million girls and women worldwide have undergone female gender mutilation/cutting (Population Reference Bureau, 2008). This figure is enormous and unsurprisingly, Female Genital Mutilation (FGM) is an extremely controversial topic within the international sphere. Whilst some may argue that it is simply natural and a general norm within certain areas and cultures, others, largely from the Western world, believe it to be an infringement of a basic human right and so many concerns and condemnations of the practice emerge from an ethical and humanitarian perspective. Engaging with this debate involves studying the works of two academics, Martha Nussbaum and Yael Tamir, both providing counteracting views towards such a complicated debate like this one. This essay examines the practice of female circumcision, arguing that it is legitimate for states like the UK to attempt to bring them to an end, thus agreeing with the argument made by Nussbaum, namely that we should be ashamed of ourselves if we do not use whatever privilege and power has come our way to make it disappear forever (Nussbaum, 1996). My argument however is one of states only being able to legitimately intervene where FGM is being practiced against the will of females, yet if the practice is warranted and women, of adult age, consent to it, then it is not as permissible for states to intervene. Cultural opinions and determination are not valid enough reasons to allow such a horrific process to continue, specifically due to the medical implications of the circumcision procedure as a whole. The Capabilities Approach by Nussbaum (1999) is examined within this essay therefore, in terms of arguing that females should have the choice of whether or not to go through with the act of FGM as this procedure removes their opportunity to fulfil their full capabilities as both human beings and as women. Thus this goes hand-in-hand with the argument that states are legitimate in interve ning to allow capabilities to be satisfied. Finally, a series of policy recommendations are made with respect to the ways in which states, such as the UK, can intervene legitimately to prevent such practices occurring in future years, the key one being education. These measures will therefore protect the human rights and social welfare of females across the world, along with other institutions i.e. Non-Governmental Organisations (NGOs). FGM is commonly performed on young girls as a rite of passage to womanhood (Rahman and Toubia, 2000, p.3). Since the early 1990s, FGM has gained global recognition as a serious health and human rights issue. Often this act is committed for social and cultural values as opposed to medical ones and so it is very difficult to begin a process of change as in order to do this, as the whole thinking of society and its actors would need be adjusted. Largely conducted within African countries, the practice, although having decreased in recent years, still poses a threat to the rights and capabilities of women in such areas. The fall in numbers of females undergoing such circumcision coincides with numerous global efforts to target excisors, medical professionals, and families who perpetuate the practice (Population Reference Bureau, 2008). Political will and implementation of such legislation however is the key hurdle to achieving this. FGM poses severe health risks, both physical and psychological in both the immediate/short-term and also the long-term. Some of these medical problems include: haemorrhaging, infections, septicaemia, shock from the severe pain and loss of blood, risks during childbirth, and in extreme cases, death (Slack, 1988, p.451). Other side effects include: infertility, cysts and abscesses, urinary incontinence and psychological and sexual problems (Population Reference Bureau, 2008). Intense trauma is often caused as many of the females who undergo this operation are of an incredibly young age, held down by force and circumcised with little, if any, anaesthesia (Slack, 1988, p.454).These medical consequences for women who undergo genital mutilation are unbearable to even think of, let alone experience, yet still the practice continues due to the myths which surround the issue i.e. females being sterile until they have been excised and so the procedure will supposedly increase fertility (Slack, 1988, p.447) and other myths that the clitoris is incredibly dangerous to women so if not excised will be harmful to the foetus, physically and spiritually (Slack, 1988, 460). Such myths are of course based on fictitious information but due to social pressures are not questioned but preserved, as has been the case for many years. The following map illustrates where FGM is at its highest and thus such areas are the first which need to be aided through state intervention to stop it. Statistics have shown though, that although the practice is still occurring, largely within third world countries, the number of women undergoing FGM has actually fallen and so this is indicative that some level of progress towards eradicating FGM is occurring. African countries, specifically Egypt, Mali, North Sudan and Ethiopia are (according to 2009 figures) experiencing the highest rates of female circumcision procedures. In international relations, both high priority and low priority political issues need to be addressed, seeking global communication, negotiation and interaction. Globally, greater interconnectedness and increasing multicultural societies are leading to both domestic and international issues being discussed at a global level. This is indicative of states helping other states in terms of economics i.e. through increased trade and assistance during globalisation, and politics i.e. through the exchange of political ideologies and support. The argument here posits that if it is legitimate for states to intervene in economic and political issues, is it not also legitimate for states to intervene, when and where necessary, to improve social welfare and quality of life of the less fortunate? This does of course refer to intervention to stop FGM and resultantly improve the social welfare of women across the globe. Governments duty to take action against practices like female circumcision is e mbedded in international human rights treaties and thus states must comply with this (Rahman and Toubir, 2000, p.44). FGM is therefore a violation of a fundamental human right, and as the process cannot be reversed, the consequences are horrific. Bleeding profusely, reproduction problems, and even death are the terrible repercussions that those who undergo the process will endure. Hence these are serious medical implications and these are medical explanations for stopping the practice, as opposed to the usual moral explanations often spoken of within international ethics theory (Jaeger, Caflisch and Hohlfeld, 2009, p.31). Tamir (1996) however, makes the argument that before looking at other countries, we should look at our own countries as they are highly unlikely to be perfect. I disagree with this to some extent, particularly in relation to the issue of FGM. Countries where this occurs may simply believe this to be a custom or norm, something that is a normal and unquestionable pa rt of a females life. Without being educated and increasing awareness though, this disturbing process will continue. The people living in such small communities view FGM as normality, relying on myths on which to base the rest of their lives. Thus, it is the duty of those more educated i.e. in the West, to use education as the catalyst to bring about change and in turn stop this practice from occurring against the will of females. So why is it that FGM is seen as disgraceful whilst male circumcision is not seen with such unacceptability? A key reason for this relates to religion i.e. in Islamic teachings, male circumcision is natural and compulsory for all Muslim males. Male circumcision is not as harmful in any way when compared to FGM is and men are still able to fully function both physically and sexually whereas women arent. Male circumcision outside of Islam is often undertaken for hygiene reasons and so all of these reasons clearly display the picture that within most societies around the world, male circumcision is widely accepted as a type of norm. The term female circumcision seems to suggest an analogy with male circumcision yet in actual fact, the degree of cutting in female circumcision is anatomically much more extensive (Rahman and Toubia, 2000, p.4). In addition to this, FGM is seen as a way of sexually controlling females and although in current political debate this may seem to be rather liber al in appearance, references to cliteridectomy commonly reveal a patronizing attitude toward women, suggesting that they are primarily sexual beings (Tamir, 1996). Thus many advocates of cliteridectomy are concerned with corruption i.e. that the operation will restrict female sexual desires and in turn this will make them chaste wives and mothers (Tamir, 1996). The issue here though is that sexual enjoyment from women is not an openly discussed matter, but rather a taboo in many traditional communities, and so cliteridectomy is in itself symbolic of repressing female sexuality. Such non-Western cultural practices like FGM often symbolise resistance to the dominance of the West i.e. in Kenya, whereby cliteridectomy gained life as a political tool between British Colonials and African Nationals (Brown, 1991, p.262, cited in Jaggar, 2005, p.577/578). The counter-argument to this though lies within the hypothetical example given by Tamir (1996): mutilation enables women to be free of their reliance on men and thus they are able to function fully in order to follow social and political aspirations. The more common argument however is one of cliteridectomy and similar practices being corrupt in nature, restricting women and not allowing them to break free of the imposed barriers with respect to sexuality. All of these issues relate back to cultural and traditional values and so it often impossible to think beyond ones own culture. Nussbaum, a liberal feminist, provides an almost world-view which encourages people to think outside their own cultural box, raising the argument that just because something is done i.e. FGM, this does not mean that we cannot question it or interrogate it for the greater good. Her concerns therefore lie with issues of morality, freewill and choice. Nussbaum (1996) responded to Tamir (1996), focusing primarily on three points: (1) it is unfair to criticise another culture without being prepared to accept criticisms of ones own culture, (2) one cannot criticise another cultures acts without the certainty that their own culture is free of any evils, and (3) FGM is morally similar to dieting and body-shaping as within American culture. Nussbaum (1996) agrees with the first point, disagrees with the second and believes the third point to be egregiously wrong, con tending that the damage caused to women from extreme dieting and surgery can be undone in most cases, yet genital mutilation cannot be and so this is why it is of the greatest concern. The third critique Nussbaum (1996) makes is of greatest relevance as FGM is often compared cosmetic surgery and enhancements and so on by many theorists. It is often seen as the opposing argument, but as stated in the article, the eight differences between FGM versus dieting and surgery explain why Vogue is not illegal, whereas FGM is illegal in many of the countries where it occurs (Nussbaum, 1996). Nussbaum (1999) later built on Amartya Sens theory of Capabilities and this is of great relevance when examining the controversial topic of FGM. She understands capabilities to characterise each human life and is interested in ensuring that all persons have these capabilities to perform central functions, an explicitly Universalist standpoint. Her argument affirms that within the political arena, human beings exhibit moral capabilities which can in future be developed, yet such capabilities are deprived of the nourishment that would transform them into high-level capabilities (Nussbaum, 1999, p.236). Hence without these capabilities Nussbaum (1999) argues human beings are useless. With regards to FGM, the Capabilities Approach largely frowns upon the deprivation of individuals to have the opportunity to choose to be sexually active or indeed celibate (Nussbaum, 1999, p.238). Capabilities require constant development to be able to function fully. With respect to Nussbaums work, ten ce ntral human function capabilities are identified (Nussbaum, 1999, p.235). FGM breaks two of these capabilities, namely bodily health and bodily integrity (Nussbaum, 1999, p.235). Hence according to these, states are legitimate in intervening and influencing other states where practices like female circumcision are taking away the capabilities of their citizens. Resultantly, the Capabilities Approach is demonstrative of an accurate framework to use where the matter of states, like the UK, legitimising actions, such as FGM, is concerned. This Capabilities Approach was later put into action by the United Nations Human Development Reports, arguing that GDP per capita was not a true reflection of this and instead, Sen argued that how people live their lives and other similar economic indicators, need to be examined. Tamir (1996) opposes such points, arguing that there is much to criticise about ones own culture before one is able to criticise another. So common Western practices such as cosmetic surgery, in her argument, would be open to the same criticisms from non-Western countries as FGM is for people within the West. In her critique, states are not legitimate in intervening in other countries before they have addressed all issues of a similar nature within their own home country. With respect to this argument though, the fact of the matter remains that those individuals who undergo surgery and other cosmetic enhancements are usually doing so out of their own personal choice and so this raises other concerns as to why people feel the need to do this, as opposed to intervening to stop it. Other theorists are generally more reluctant for intervention to occur i.e. Walzer, who would argue that intervention of any kind would only be necessary if a clear case of genocide was being demonstrated whe re thousands of victims were losing their lives. In my critique of this though, the practice of FGM, although maybe not as severe as genocide, is indicative of female oppression and so causes a predictable number of deaths which could have been prevented had the right systems been put into place through state intervention. The factor specific to FGM which makes it appropriate for outsiders to intervene and attempt to halt it is that of women not being given a choice of whether or not to undergo the procedure. Women should be able to decide for themselves whether or not they wish to be circumcised, with no pressure from external forces, yet before such a decision they must be made aware of the implications in terms of health and future capabilities. This is what Nussbaum (1999) is referring to in her Capabilities argument as outlined previously. As prosperous developing countries, it is the obligation and duty of states like the UK to intervene to stop FGM when it occurs against the will of women, at least until sufficient change is seen and this change fosters sustainability. The following section therefore examines the ways of doing this. Since the early 1990s, FGM has been recognised as a global human rights issue and so numerous efforts have been made to end it or to at least reduce the number of cases of it occurring. Initiatives such as the annual International Day Against Female Genital Mutilation on February 6th, introduced by the United Nations Population Fund (UNFPA) in 2007, demonstrates this, calling for greater government commitment to programmes preventing the practice (Obaid, 2007). Although female circumcision is a heavily criticised practice in many developed countries, it is not feasible to simply condemn the practice as this suggests that Western culture is paramount. Understandings of cultural relativism need to transpire but more importantly, a process of change needs to be instigated. Nussbaum (1996) is correct in critiquing Tamir for this (suggesting cultural relativism is a valid argument), explaining how it is difficult to morally decide whether or not intervention should be committed in terms o f local or distant acts, and although individuals will legitimately prioritise about these decisions, this does not mean that we should not intervene. Poor education and low levels of income among women in African countries, coupled with inadequate governmental support (Wakabi, 2007, p.1069) are the key issues regarding the eradication of FGM and only when such problem areas are addressed, can progress begin to occur. Rahman and Toubia (2000, pp.58-68) identify three types of measure to be implemented in order to tackle the FGM issue: legal, regulatory and policy measures. It is important to note from the very beginning though that no single measure will be feasible if states are to intervene, but rather a series of combined approaches and changes must be adopted. Legal measures involve ratifying human rights arrangements to ensure that rights within such treaties are upheld and also carefully considering the imposition of criminal sanctions to dissuade people from committing the circumcision operation (Rahman and Toubia, 2000, pp.59-61). With regards to regulatory measures, suggestions have been made of disciplining those medical professionals who engage in the practice and removing their licences if they persistently offend (Rahman and Toubia, 2000, p.68). Finally, but most importantly, policy measure areas are discussed, these being: education, the media, empowering women and increasing access to reproductive welfare services (Rahman and Toubir, 2000, pp.68-71). The primary way of states intervening legitimately, in my argument, is through the process of education. By educating those within the countries where the practice of FGM takes place, the root cause of the problem can be targeted. This has previously been done through NGOs and alike, yet states too can intervene to promote adequate social welfare for the women within countries where FGM is a severe issue. Older generations need to be approached and made to understand the deficiencies associated with the practice and thus ultimately this will feed through to younger generations. Simultaneously though, younger generations too need to be targeted as t hey are the future and by educating them, forthcoming generations of females will be protected against such a painful practice. Governments need to begin devoting resources to providing FGM practicing countries and communities with information about the negative effects of the procedure and about human rights as important. Such information however must emphasize the potential psychological and physical impact[as well as] examine the history and purpose (Rahman and Toubir, 2000, p.68). If we now examine the media, the argument made is one of facilitating public dialogue and discourse about FGM along with the promotion of women to be free from FGM by various media outlets (Rahman and Toubir, 2000, p.69). This is a very good suggestion, yet in my critique, isnt feasible due to the fact that media within FGM practicing countries is relatively low, if at all existent. Thus this policy recommendation is good in theory yet in practice may not be as simple as first assumed. Empowering women is the third suggestion, self-explanatory in nature yet the ways of doing this include reforming policies which prevent women from improving their status i.e. social, economic etc, ensuring women can work alongside men and that issues of equal pay are addressed (Rahman and Toubir, 2000, p.70). Again this poses potential difficulties in that in certain rural communities, women are not seen as employable and do not have the opportunity to go out to work and more importantly have not been educated enough to undertake even the most low-skilled job positions. Hence such a recommendation is reliant on the previous policy suggestion of education, as only when communities are educated will the women within them be able to start working legitimately. The final proposal is that relating to reproductive services for females within the communities where female circumcision is occurring. These services are critical in providing women with accurate information about FGM as a whole in terms of th eir reproductive health (Rahman and Toubir, 2000, p.71). This is a great service as it is well-known that women who have been circumcised require regular medical attention and so this would address this issue and make it a more widely recognised initiative. Hence the ideal outcome of this is that women, who understand the severity of the practice for their health, will be less likely to make their daughters go through with it (Rahman and Toubir, 2000, p.71). This is ideal and would be the best possible solution but, Rahman and Toubir (2000) fail to consider the impact of community, religious, cultural, family and social pressures on women who do not undergo the FGM operation. Thus reproductive services although being an invaluable resource, are not as simple and easy in terms of changing social attitudes immediately. In the long-run however, reproductive services do have the potential scope to be a success. Other suggestions for intervention include: withholding aid to those countries where FGM is continuing to happen along with working with local groups to support advocacy efforts promoting negotiated, verbal intervention as opposed to plain physical intervention. The critique of this though relates to speaking but taking no action and some theorists would argue that an issue like FGM can only be tackled by head-on intervention that doesnt pussyfoot around the topic but rather stops the practice for the horror it causes, and rightly so. It can be argued by many that these policy recommendations are too simplistic and idealistic yet the fact of the matter remains that before any of these can be implemented, government structures need to be changed. In places like Somalia, several humanitarian organisations have launched campaigns to stop the spread of FGM, yet the widespread insecurity and absence of a central administration have only handed minimal success to their efforts (Wakabi, 2007, p.1070). A case study of Mali however informs us of the positive impact of NGO based intervention, working alongside local communities and governments. The initiative here used a mobile cinema travelling from village to village to encourage the open discussion of womens health issues and once trust had been established, discussed FGM more openly in an attempt to change social attitudes towards it (Good, 2010). This programme has increased awareness about FGM amongst the Malian community, and is beginning to get positive results in M ali, where women are deciding against their daughters being circumcised (Good, 2010). Kenya too has undertaken programmes, the key one being Ntanira Na Mugambo which translates to Circumcision by Words (BBC News, 1998). This week long programme secluded women from males, informing them about FGM in a subtle manner i.e. referring to anatomy, reproduction, self-esteem building, dealing with peer pressure and respecting adults (BBC News, 1998). Thus this type of programme didnt abhor FGM outright but rather tackled the issues surrounding it, offering an alternative view yet allowing the women to make up their own minds. Another project was employed in Uganda where an Outreach Plan was created, targeting leaders of rural communities who commit the practice of FGM. Such a plan provided local community leaders with economic incentives to stop the process i.e. that those women who undergo FGM find it incredibly difficult to work and thus their contribution to the workforce is trivial (Rahman and Toubia, 2000, p.78). Such intuition prevents women from being forced to be circumcised whilst also positively impacting upon productivity and as a result increasing economic efficiency. Outside pressure does still exist though and experts on FGM believe it is vital to actively engage with communities to ban the practice and penalise those who still conduct it. Thus as said before, education, although the most important element of this process of instigating change, cannot simply be the only solution, but rather must be combined with a series of other strategies. To conclude, FGM is a practice heavily debated about within international relations due to the ethical concerns it raises and ultimately infringes. Cultural relativist positions would argue that is necessary to understand the behaving of different groups due to cultural backgrounds, yet the stance that we should simply accept differences is highly critiques where FGM is concerned. In my critique, the practice is one worthy of severe condemnation, yet through little fault of the people continuing it but rather the myths and general history surrounding it. Hence, ultimately it is these myths and historical factors that need to be eradicated in order to promote the safety of women across the globe, particularly in less-developed countries. Thus this essay has agreed with and supported the argument put forward by Nussbaum that it is legitimate for states like the US and UK to intervene to bring the practice of FGM to an end yet this is relative to the situation. My core argument however remains that if women are being forced to undergo genital mutilation, then it is acceptable for states to intervene through the measures discussed previously. However, if the procedure if consented to and women are voluntarily wishing to go through with it out of their own freewill, then states are not legitimate in intervening. Intervention thus is dependent on the factor of choice towards FGM, yet women and men alike should be educated about the medical and psychological consequences of it. Additionally, such education should enlighten communities about the falsities of the myths they cling on to and how they are in actual fact untrue. The Capabilities Approach is fundamental to this process of education as it informs the public of how FGM can harm and worsen the capabilities of women. Education however will not work alone and must be accompanied by a series of other policy measures, namely legislation, regulatory policies and reproductive services. It is therefore legitimate for states like the UK to intervene to halt practices like FGM, according to the circumstances outlined in this essay and through the policy recommendations suggested. Bibliography BBC News (1998) Female genital mutilation [online] Available from: http://news.bbc.co.uk/1/hi/health/medical_notes/241221.stm [Accessed 25th November 2009] Good, H. (2010) Mobile cinema helps change attitudes about female genital mutilation/cutting in Mali [online] Available from: http://www.unicef.org/health/mali_52714.html [Accessed 21st March 2010] Jaeger, F., Caflisch, M. and Hohlfeld, P. (2009) Female Genital Mutilation and its Prevention: A Challenge for Paediatricians in European Journal of Paediatrics, Vol. 68, pp.27-33. Jaggar, A.M. (2005) Saving Amina: Global Justice for Women and International Dialogue in Pogge, T. and Horton, K. (2008) Global Ethics: Seminal Essays (eds.), New York: Paragon House, pp.565-603. Nussbaum, M. (1999) Women and equality: The capabilities approach in International Labour Review, Vol.138, No.3, pp.227-245. Nussbaum, M. (1996) Double Moral Standards? A Response to Yael Tamirs Hands off Clitoridectomy [online] Available from: http://bostonreview.net/BR21.5/nussbaum.html [Accessed 7th March 2010] Obaid, T.A. (2007) Statement on the International Day Against Female Genital Mutilation [online] Available from: http://www.unfpa.org/news/news.cfm?ID=927 [Accessed 21st March 2010] Population Reference Bureau (2008) Female Genital Mutilation/Cutting: Data and Trends [online] Available from: http://www.prb.org/pdf08/fgm-wallchart.pdf [Accessed 25th November 2009] Rahman, A. and Toubia, N. (2000) Female Genital Mutilation: A Guide to Laws and Policies Worldwide, London: Zed Books Slack, A.T. (1988) Female Circumcision: A Critical Appraisal in Human Rights Quarterly, Vol.10, No.4, pp.437-486. Tamir, Y. (1996) Hands off Clitoridectomy: What our revulsion reveals about ourselves [online] Available from: http://bostonreview.net/BR21.3/Tamir.html [Accessed 7th March 2010] Wakabi, W. (2007) Africa battles to make female genital mutilation history in World Report 2007, Vol.369, pp.1069-1070.

Notes on solitude Essay

Solitude n. the state or situation of being alone. (syn. loneliness? , solitariness, isolation, seclusion, sequestration, withdrawal, privacy, peace) [Google] Solitude is a state of seclusion or isolation, i. e. , lack of contact with people. It may stem from bad relationships, loss of loved ones, deliberate choice,infectious disease,mental disorders,neurological disorders or circumstances of employment or situation (see castaway). Short-term solitude is often valued as a time when one may work, think or rest without being disturbed. It may be desired for the sake of privacy. A distinction has been made between solitude and loneliness. In this sense, these two words refer, respectively, to the joy and the pain of being alone. [wikipedia. org] â€Å"Our language has wisely sensed the two sides of being alone. It has created the word loneliness to express the pain of being alone. And it has created the word solitude to express the glory of being alone. † – Paul Tillich (Paul Johannes Tillich (August 20, 1886 – October 22, 1965) was a German-American Christian existentialist philosopher and theologian. ) [wikipedia. org] What is Solitude? By Hara Estroff Marano, published on July 01, 2003 – last reviewed on November 21, 2013 Loneliness is a negative state, marked by a sense of isolation. One feels that something is missing. It is possible to be with people and still feel lonely—perhaps the most bitter form of loneliness. Solitude is the state of being alone without being lonely. It is a positive and constructive state of engagement with oneself. Solitude is desirable, a state of being alone where you provide yourself wonderful and sufficient company. [http://www. psychologytoday. com/articles/200308/what-is-solitude] â€Å"I care for myself. The more solitary, the more friendless, the more unsustained I am, the more I will respect myself. † ?Charlotte Bronte,Jane Eyre â€Å"If you’re lonely when you’re alone, you’re in bad company. † ?Jean-Paul Sartre â€Å"The more powerful and original a mind, the more it will incline towards the religion of solitude. † ?Aldous Huxley â€Å"I live in that solitude which is painful in youth, but delicious in the years of maturity. † ?Albert Einstein â€Å"A man can be himself only so long as he is alone; and if he does not love solitude, he will not love freedom; for it is only when he is alone that he is really free. † ?Arthur Schopenhauer,Essays and Aphorisms â€Å"Whosoever is delighted in solitude, is either a wild beast or a god. † ?Aristotle â€Å"Loneliness is the poverty of self; solitude is richness of self. † ?May Sarton â€Å"I am now quite cured of seeking pleasure in society, be it country or town. A sensible man ought to find sufficient company in himself. † ?Emily Bronte,Wuthering Heights â€Å"Our language has wisely sensed these two sides of man’s being alone. It has created the word â€Å"loneliness† to express the pain of being alone. And it has created the word â€Å"solitude† to express the glory of being alone. Although, in daily life, we do not always distinguish these words, we should do so consistently and thus deepen our understanding of our human predicament. † ?Paul Tillich, The Eternal Now (Charles Scribner’s Sons, New York, 1963 ) â€Å"According to greek mythology, humans were originally created with 4 arms, 4 legs and a head with two faces. Fearing their power, zeus split them into two separate parts, condemning them to spend their lives in search of their other halves. †? Plato â€Å"To Solitude O solitude! if I must with thee dwell, Let it not be among the jumbled heap. Of murky buildings; climb with me the steep,— Nature’s observatory—whence the dell, Its flowery slopes, its river’s crystal swell, May seem a span; let me thy vigils keep ‘Mongst boughs pavillion’d, where the deer’s swift leap Startles the wild bee from the fox-glove bell. But though I’ll gladly trace these scenes with thee, Yet the sweet converse of an innocent mind, Whose words are images of thoughts refin’d, Is my soul’s pleasure; and it sure must be Almost the highest bliss of human-kind, When to thy haunts two kindred spirits flee. † ?John Keats Etymology solitude (n. ) mid-14c. , from Old French solitude†loneliness† (14c. ) and directly from Latin solitudinem (nominativesolitudo) â€Å"loneliness, a being alone; lonely place, desert, wilderness,† from solus†alone† â€Å"Not in common use in English until the 17th c. † [OED] A man can be himself only so long as he is alone; †¦ if he does not love solitude, he will not love freedom; for it is only when he is alone that he is really free. [Schopenhauer, â€Å"The World as Will and Idea,† 1818] Solitudinarian†recluse, unsocial person† is recorded from 1690s. Happy the man, whose wish and care A few paternal acres bound, Content to breathe his native air, In his own ground. Whose heards with milk, whose fields with bread, Whose flocks supply him with attire, Whose trees in summer yield him shade, In winter fire. Blest! who can unconcern’dly find Hours, days, and years slide soft away, In health of body, peace of mind, Quiet by day, Sound sleep by night; study and ease Together mix’d; sweet recreation, And innocence, which most does please, With meditation. Thus let me live, unseen, unknown; Thus unlamented let me dye; Steal from the world, and not a stone Tell where I lye. Ode to Solitude, Alexander Pope.

Corporate Governance in Australia After Hih Essay

In the light of various corporate scandals, regulatory bodies and corporate governance were placed under pressure by shareholders and stakeholders to form a tighter grip in governing corporation’s conduct. The obligations, roles and responsibilities of company’s stewards are under scrutiny of Corporations Act, listing rules, country’s code of corporate governance, ethics as well as social standards. At the same time, advocates of market forces as a replacement to regulations and legislation continue to pursue for market deregulation and liberalisation based on the believe that government intervention will only distort resources allocation and hinder market growth. The collapse of Australian company HIH Insurance Ltd (HIH) in 2001 was analysed in terms of its conduct and compliance to the Corporations Act, listing rules as well as code of corporate governance as released by the Australian Securities Exchange (ASX) Corporate Governance Council (CGC). Reforms in regulations and the Corporate Governance Principles and Recommendations 2007 by ASX CGC were used to recommend best practices in corporate governance that should have taken place in HIH. Lastly, the effect of globalization and challenges to good corporate governance resulting from globalization were discussed from the perspective of national government, regulatory bodies as well as the corporation itself. Justice Neville Owen, The Royal Commissioner in the HIH Royal Commission Report described corporate governance as the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations, and the Australian Securities Exchange (ASX) Corporate Governance Council added that corporate governance relates to and influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimized (The HIH Royal Commission, 2003; ASX Corporate Governance Council, 2007). The meaning of corporate governance has evolved over time but, in the strictest sense, is linked to the legislation that allows its existence. The law sets forth a company’s rights and responsibilities but this can differ from country to country. However, it is generally accepted that corporate governance extends beyond the law to include a consideration of best practices and business ethics (Birt, Chalmers, Beal, Brooks, Byrne, & Oliver, 2008). The structure of corporate governance as put forth by Farrar (2005) and represented in the figure below illustrates the relationship within the corporate governance structure: Figure: The structure of corporate governance (Farrar, 2005). The issues surrounding the rights and responsibilities of corporations are complex and ever changing as financial markets become more global, corporations become larger and more powerful, and society’s perception of the corporate role changes. A school of thoughts advocates for market forces to be the regulator of the financial market. The neo? liberals assume that factor markets work efficiently without government intervention if property rights and competition are guaranteed. They considered government interventions as less efficient than market? based solutions and stresses that government interventions hamper private sector development and that government should concentrate on improving the enabling of business environment through deregulation (Emeseh, Ako, Okonmah, Obokoh, & Ogechukwu, 2010). Neo-liberalism challenges the conventional structuralist orthodoxy of government intervention by highlighting the negative effects of â€Å"financial repression† on economic growth and development. They refer financial repression to be the set of government legal restrictions preventing financial intermediaries in the economy from functioning at their full capacity. The distortion of domestic financial markets through rules and legislation is claimed to have negative impact on economic growth. In essence, corporations should be relied on in the main to self? regulate in the critical aspect of business activities. Neo-liberalism has prompted many countries to implement liberalisation and deregulation of their financial markets on the recommendations of the World Bank and IMF (Emeseh, Ako, Okonmah, Obokoh, & Ogechukwu, 2010). The significant role of market forces in contributing to good corporate governance and strong corporate performance has for some time been emphasised in economic literature on the corporation and corporate law. In fact, advocates consider the influence of market forces to be an effective substitute for formal legal regulation (duPlessis, McConvill, & Bagaric, 2005). However, through-out the last two decades, legislation reforms and corporate governance has also grown rapidly, particularly since the collapse of Enron Corporation in 2001 and the subsequent financial problems of other companies in various countries. As financial scandals continue to emerge, there will be continued attention placed on corporate governance issues, especially relating to transparency and disclosure, control and accountability, and the most appropriate form of board structure that may be capable of preventing such scandals occurring in future (Mallin, 2007). In pursuance of good corporate governance, an area of interest would be how directors’ conduct and decisions should be in the best interest of the company, its shareholders and other relevant stakeholders. In this context, the agency theory is a very suitable framework that can describe the problems associated with the principal-agent relationship caused by separation of ownership and control between shareholders (the principal) and directors (the agent) in corporations. Information asymmetry, moral hazard, difference in attitude towards risk and difference in interest between shareholders versus directors are common agency problems that would usually be at the expense of shareholders (Mallin, 2007; Rahman, & Salim, 2010). For example, directors may have a wider range of economic and social needs (such as to maximize compensation, security, status and to boost their own reputation), while shareholders are interested only in maximizing return on investments. Furthermore, as directors are usually contracted to the company on short term basis, they may be eager for short-run payoffs within their contract term, whereas shareholders’ interest would be based on long-term success. Australian companies have a unitary board structure and the regulatory framework for corporate governance and directors’ duties is governed by (i) Statute (notably the Corporations Act), (ii) Common law rules (for example, cases relating to directors’ duties), (iii) The company’s constitution, and (iv) Guidelines issued by the Australian Securities and Investments Commission (ASIC) (Dibbs Barker Gosling Lawyers, 2003). ASIC plays a vital role in enforcing and regulating company and financial services laws to protect Australian consumers, investors and creditors. It acts as Australia’s corporate regulator and administers various legislations including the Corporations Act 2001, Australian Securities and Investments Commission Act 2001, etc. (Australian Securities ; Investments Commission, 2010a). By the Corporations Act, general duties imposed on directors and officers of companies are stated as (i) the duty to exercise their powers and duties with the care and diligence that a reasonable person would have which includes taking steps to ensure they are properly informed about the financial position of the company and ensuring the company doesn’t trade if it is insolvent, (ii) the duty to exercise their powers and duties in good faith in the best interests of the company and for a proper purpose, (iii) the duty not to improperly use their position to gain an advantage for themselves or someone else, or to cause detriment to the company, and (iv) the duty not to improperly use information obtained through their position to gain an advantage for themselves or someone else, or to cause detriment to the company (Australian Securities ; Investments Commission, 2010b). Beyond their legal duties and obligations, directors are also expected to meet commercial expectations in th e interest of stakeholders, which include, but are not limited to, shareholders. These commercial expectations essentially require directors to drive the bottom line and provide appropriate shareholder returns. Taking it a step further, many directors of today are challenged to embrace triple bottom line reporting and consider the economic, social and environmental ramifications of their corporate activities (Lucy, 2006). While the scope and laws governing the conduct of directors are wide and many, intentional and unintentional breach has shocked the financial market and public numerously. Till today, HIH Insurance Ltd (HIH) that went into liquidation in early 2001 is well remembered by almost every Australian as a collapse caused by mismanagement of the company, and various board members were brought to court on charges including giving misleading information with the intention of deceiving other board members and the company’s auditor. As one of Australia’s largest insurers, the company ran into debts of over AUD$5 billion and subsequent to the collapse, the government carried out an expensive exercise to underwrite many of the failed policies (Mallin, 2007). According to the HIH Royal Commission Report on the failure of HIH, it was concluded that investigators did not find fraud or embezzlement to be behind the collapse. The failure was more the result of attempts to paper over the cracks caused by over-priced acquisitions (notably FAI Insurance Ltd) and too much corporate extravagance based on a misconception that the ‘money’ was there in the business. The primary reason for the huge loses was that adequate provision had not been made for insurance claims and past claims on policies had not been properly priced. HIH was mismanaged in the area of its core business activity (Bailey, 2003). In chorus, the HIH Royal Commission report fundamentally states that the main reasons for the failure of HIH was poor management and greed characterised by (i) a lack of attention to detail and skills, (ii) a lack of accountability for performance, and (iii) a lack of integrity in the company’s internal processes and systems (Nicholson, 2008). Justice Neville Owen further commented in the report on what was the essence of good corporate governance: â€Å"The governance of a public company should be about stewardship. Those in control have a duty to act in the best interests of the company. They must use the company’s resources productively. They must understand that those resources are not personal property. The last years of HIH were marked by poor leadership and inept management. Indeed, an attitude of apparent indifference to, or deliberate disregard of, the company’s underlying problems pervades the affairs of the group. † (The HIH Royal Commission, 2003). The above comment can be loosely translated to say that the directors of HIH have failed their duties. Notably, in April 2005, Mr Ray Williams, the former Chief Executive Officer (CEO) of HIH, was sentenced to four-and-a-half years’ jail with a non-parole period of two years and nine months. Mr William’s sentencing follows ASIC’s successful civil penalty proceedings on the three criminal charges which Mr. William pleaded guilty to. The three criminal charges were (i) that he was reckless and failed to properly exercise his powers and discharge his duties for a proper purpose as a director of HIH Insurance Limited when, on 19 October 2000, he signed a letter that was misleading, (ii) that he authorised the issue of a prospectus by HIH on 26 October 1998 that contained a material omission, and (iii) that he made or authorised a statement in the 1998-99 Annual Report, which he knew to be misleading, that overstated the operating profit before abnormal items and income tax by $92. 4 million (Australian Securities & Investments Commission, 2005a). ASIC’s HIH investigation also led to criminal prosecutions of 9 other former senior executives, including directors of FAI, HIH and associated entities on 31 Corporations and Crimes Act charges. Of high public interest was Mr Rodney Adler, a former director of HIH and the majority owner of FAI was sentenced to four-and-a-half years’ jail, with a non-parole period of two-and-a-half years, on four charges arising from his conduct as a director of the HIH group of companies in 2000. ASIC’s chairman, Mr Jeffrey Lucy, in his public statement said, â€Å"Mr Adler was in a position of trust as a director of HIH but he put his own financial interests before the interests of HIH shareholders† (Australian Securities & Investments Commission, 2005b). Mr Adler was sentenced after pleading guilty to four criminal charges: (i) two counts of disseminating information on 19 and 20 June respectively, knowing it was false in a material particular and which was likely to induce the purchase by other persons of shares in HIH contrary to s999 Corporations Act 2001, (ii) one count of obtaining money by false or misleading statements, contrary to s178BB Crimes Act 1900 (NSW), and (iii) one count of being intentionally dishonest and failing to discharge his duties as a director of HIH in good faith and in the best interests of that company contrary to s184(1)(b) Corporations Act 2001 (Australian Securities & Investments Commission, 2005b). HIH’s disastrous business ventures in U. K. , U. S. , acquisition of FAI Insurance Ltd. nd the Allianz joint venture were identified as what ultimately brought HIH down. These instances of poor decision-making were caused by and reflect a poor corporate governance culture. Corporate governance issues identified included (i) an over-dominant CEO whose decisions were never questioned, (ii) an ineffective chairman who failed his responsibility to oversee the functioning of the board, (iii) an ineffective board who failed to grasp the concept of conflicts of interest, and was unable to monitor and does not question management performance, (iv) inappropriate conduct in remuneration setting and performance measurement (mostly made by Mr. Williams who, although not a member of the committee, attended all meetings by invitation), (v) an ineffective audit committee who showed no concern with risk management and internal control, and (vi) compromised auditor independence (the auditing company was Arthur Andersen and HIH’s board had three former Andersens partners – one of them was the chair of the board yet continued receiving fees under a consultancy agreement. Andersens also derived significant fees from non-audit work which gave rise to a conflict of interest with their audit obligations) (Lipton, 2003). Subsequent to HIH’s collapse, The Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 (commonly known as ‘CLERP 9’) came into force on 1 July 2004. CLERP 9 incorporated a number of recommendations made in the HIH Royal Commission Report. Reforms were made relating to (i) disclosure of directors’ remuneration, (ii) financial reporting, (iii) au ditors independence, (iv) continuous disclosure, and (v) enhanced penalty provisions. CLERP 9 also deals with accounting standards, expensing of options, compliance controls, and encouragement of greater shareholder participation at meeting – all of which represents a significant development in the corporate law framework (Deloitte Touche Tohmatsu, 2005; Alcoc, & Bicego, 2003). Prior to CLERP 9 coming into force, advocates of corporate governance were delighted with Australian Stock Exchange Limited (ASX) release of the â€Å"ASX Corporate Governance Council’s (CGC) Principles of Good Corporate Governance and Best Practice Recommendations† in March 2003. ASX CGC adopted the same ‘principles based’ approach as taken in the UK Combined Code which governs entities listed on the London Stock Exchange. ASX listed entities are at liberty not to comply with the recommendations, but if they do not, they must explain why not. The Guidelines were built on the belief that one size does not fit all companies. The Guidelines contained 10 ‘essential’ Corporate Governance Principles (Principles) and 28 Best Practice Recommendations (Recommendations) which was later revised in August 2007 as â€Å"Corporate Governance Principles and Recommendations† (Guidelines) comprising of 8 Principles and 26 Recommendations (Farrell, Harding, ; Spilsbury, 2003). The Guidelines also reflect ASX CGC’s emphasis in continuous disclosure by listed companies. Each Principle has a ‘Guide to reporting’ about the Recommendations at the end of the ‘chapter’ discussing what should be disclosed and where. Under ASX Listing Rule 4. 10. 3, companies are required to provide a statement in their annual report, disclosing the extent to which they have followed the Recommendations in the reporting period. Where companies have not followed all the Recommendations, they must identify the Recommendations that have not been followed and give reasons for not following them – the â€Å"if not, why not† approach (ASX Corporate Governance Council, 2007). In relation to HIH’s case, a number of the Guidelines’ Principles provide fairly extensive coverage of corporate governance issues identified in HIH earlier. Principle 1 highlights the need for companies to establish and disclose the respective roles and responsibilities of the board and management. In the 2007 edition, the Guidelines added the Recommendation 1. 2 for companies to disclose the process for evaluating the performance of senior executives (ASX Corporate Governance Council, 2007). This Principle serves to provide disclosure in relation to HIH’s situation of an over-dominant CEO and ineffective chairman and board. Where HIH was highlighted to have a board that was ineffective and failed its duties, Principle 2 states that companies need to structure the board to add value with an effective composition, size and commitment to adequately discharge its responsibilities and duties. Recommendations in the principle placed importance in having a majority of the board and the chairman being independent directors to ensure independence in board decisions and prevent conflict of interest. Recommendation 2. 4 suggests that companies should establish a nomination committee to ensure appropriate selection and appointment practices in the company. This Recommendation also provides resolution in relation to HIH’s case whereby the board was mostly made up of directors hired by Mr. William, including the former Andersen partners. In the 2007 edition, the Guidelines added the Recommendation 2. 5 for companies to disclose the process for evaluating the performance of the board, its committees and individual directors (previously this was part of Principle 8 in the 2003 edition, titled â€Å"encourage enhance performance†). This Recommendation helps to ensure directors are given access to continuing education to update and enhance their skills and knowledge that are necessary in performing their duties (ASX Corporate Governance Council, 2007). Principle 3 discusses how companies should promote ethical and responsible decision-making. Beyond legal obligations, directors are expected to make decisions that satisfy not only the company’s shareholders but other stakeholders as well (this principal includes amalgamation from Principle 10 of the 2003 edition Guidelines which was to â€Å"recognize the legitimate interests of stakeholders†). To achieve this, Recommendation 3. 1 encourages companies to establish and disclose their code of conduct pertaining to integrity practices, legal practices and handling of unethical practices. Aligned with this, Recommendation 3. 2 promotes the establishment and disclosure of company’s policy concerning trading in company securities by directors, senior executives and employees (ASX Corporate Governance Council, 2007). Relating to Principle 3 and Principle 7 titled â€Å"recognize and manage risk†, HIH has been considerably questioned of its various business decisions, mostly of which contributed to huge loses and ultimately the company’s insolvency. Criticized decisions made by the company are many, and on top of the list include (i) the acquisition of FAI Insurance (majority-owned by Mr. Adler who later became a member of HIH’s board of directors) for A$300 million which FAI was later estimated to be worth just A$100 million, (ii) re-entering the California market in 1998 and failure to take the difficult decision to exit the market when it proved unprofitable, and (iii) the decision to enter a sector (insurance and re-insurance of film-financing) that has proved problematic for many market participants in London (Cagan, 2001). The lack of risk management within HIH was apparent and Mr. Adler’s unethical conduct was evident with his imprisonment. In view of the importance of risk management, Recommendation 7. 1 urges companies to establish policies for the over sight and management of material business risks (that is financial risks and non-financial risks) and disclose a summary of those policies while Recommendation 7. 2 call for the board to require management to design and implement risk management and internal control system to manage the company’s material business risks and report to it on whether those risks are being managed effectively.

Effective Communication is an Essential Skill to Have

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