Gjmms jan march copy

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GLOBAL JOURNAL OFMULTIDISCIPLINARY AND

MULTIDIMENSIONAL STUDIES

Dr. N.M.LallB.Com. M.A. (Eco), Ph.D.

FRAS (LONDON)Patron

Dr. A.K.JhaPGDM, M.A. (Eco), Ph.D.

Managing cum Chief Editor

ISSN NO : 2394-8965

SHRUTAAYUSH PUBLICATIONGrater Noida

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Member of Editorial BoardDr.V. D. Sharma

(M.Sc. M.A, B.Ed, PGDFM, Ph.D)A Gandhian Professor, Faculty of Management Studies & Ex Proctor Gen.

Secy, Rashtriya Shaikshik Mahsangh (University Campus)VBSPurvanchal University Jaunpur-222003 (UP)Rajya Prabhari Social

Media(Bharat Swabhiman) UP Dr. H.K.S.Kumar Chunduri

Sr. Faculty Member, Department of Business Studies,Ibra College of Technology, IBRA, Sultanate of Oman

Dr. Violetta GassiyAssociate professor, Public administration department, Kuban State Univer-

sity, 149, Stavropolskaya st., Krasnodar RussiaProf (Dr) Ramesh Balkrishna Kasetwar (Retd Colonel)

PGDM, M.A. (Eco), Ph.D.Managing cum Chief Editor

Vineet Jain,Asstt. Prof. (Mechanical)

Amity University Haryana, GurgaonDr. Rushiraj Upadhyay,

Asst. Professor, M.S.W Department, Gujarat University, Ahmedabad

Deepak PathakAssistant Professor, Mechanical Engg Dept., FET Agra College Agra

Mahendra N. UmareAssociateProfessor & HOD (Civil) at NIT, Nagpur

ROB WOODDepartment of Global Strategy & Management 2010-presentWestern

Carolina University, Cullowhee, NC Judi Krzyzanowski

B.Sc, M.SC., Environmental scientistDr. Vijay Pithadia,

PhD., MBA, Electronics TechnicianDr. Dheeraj Pawar

Assistant Professor,Amity Institute of Telecom Engineering and Manage-ment, Amity University, Noida

Raymond W. Thron, Ph.D.,Faculty

College of Health Sciences, Walden University

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Editorial

The current changes and challenges experienced by the contemporaryworld have been an inspiration for us in elaborating this new forum of dis-cussions on the real world issues affecting or having a meaningful impact onthe different segment of society and on our lives. This is an attempt of boldlyand unrestrictedly contributing to new Ideas through research findings anddoing things differently, thereby providing quality and value. Scholars, re-searchers, young researchers worldwide are encouraged to join efforts in find-ing solutions for the common issues raised by the recent social and environ-mental changes. It aims to be a dialogue between the scientific communityand the citizens, as a testimony of their concern to place the results of theirwork in the service of the society. A new orientation in research policy isimperative to respond to the new needs of the society to guarantee environ-mental sustainability and economic growth in the knowledge society. Thepurpose of the Global Journal of Multidisciplinary and MultidimenstionalStudies is to make an area of free circulation of ideas and knowledge, of shar-ing experience and finding effective solutions for real-life problems, to under-stand their causes and foresee the consequences. While the society needs andcalls for research, research needs to be accountable to society. To this end, thejournal publishes Research papers, survey, articles, research findings, bookreviews, and annotations of new books.

Dr.A.K.JhaManaging and Chief EditorGJMMS

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Vol. 1 Issue No. 1 January- March 2015

1. Employability in Open And Distnace Learning (ODL): An 1Empirical Evidence From The National Open University ofNigeria (NOUN)’ Lokoja Study CenterObaka, Jnabo Abel

2. Behaviour of Investor Towards Risk in Mutual Funds With 14Special Reference to Retail Investors in Cochin cityV. Srinivasan and Dr. R. Karuppasamy

3. Remittances and Entrepreneurship Development 26

Jubran Khalid

4. A Study of Sucsses Factors in International Expansion of 46Business

Dr. Munaveer Husain

5. Gender Equality in Environmental Issues for Acheving 54

Sustainable Peace and Security in Nigeria

Obaka, Jnabo Abel

6. The Correlation Between Commerce and Management 64Rochelle R. Dean

7. Quality of Teachers and Infrastructures a Major Road 70Block fro Universalisation of Elemntary Education in Bihar

Dr. Candra Mohan Singh

GLOBAL JOURNAL OF MULTIDISCIPLINARYAND MULTIDIMENSTIONAL STUDIES

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Multidimensional

Multidimensional

ISSN NO. 2394-8965, GJMMSVOL -1, Issue -1, JAN- MAR -2015

EMPLOYABILITYIN OPEN AND DISTANCE LEARNING(ODL): ANEMPIRICAL EVIDENCE

FROM THENATIONALOPEN UNIVERSITYOF NIGERIA (NOUN)’SLOKOJASTUDY CENTRE

Obaka,Inabo Abel

Lecturer, NationalOpen University of Nigeria, EconomicsUnit,14-16, Ahmadu Bello Way,Victoria Island, PMB 80067, Lagos. Nigeria.

ABSTRACT

One of therecurring themes in public discussions about higher educationinNigeria over recent times has been the employability of graduatesfrom thenation’s higher institutions. The National OpenUniversity of Nigeria (NOUN)is the first university inWest Africa that operates in an exclusively openanddistance learning (ODL) mode of education.This study assesses theemployability of NOUN’sgraduates using alumnae of NOUN’s Lokoja studycentre as targetpopulation in which a sample of one hundred and fifty (n=150) were randomly selected.The Graduates’ Opinion Rating ofEmployability ofProducts of Open and Distance Learning (GOREPODL), a model developedby the researcher, were administered electronicallyand by hand to the sampleover a period of eightweeks. Within the period, 150responses were received.The summary of the main findings in thesurvey was in many respects anaffirmation of the employability ofNOUN’s graduates. First, the Survey revealedthat the NOUN’sgraduates – about 62per cent of the sample – were eitheremployed after graduationor benefited from promotion/conversion aftergraduation, i.e. thosewho entered NOUN while working.However,majorityof the respondents complained about the poor conditions ofNOUN’s Lokojastudy centre. In view of thefindings above, it is hereby recommended thatall theNOUN’s studycentres be upgraded with modern amenities. In addition, toincreaseemployability, NOUN’s curricula be redesigned forthe inclusion offormal training for life skills; provision oftechnical and vocational educationsystem; the use of more life caseanalyses in teaching to improve practicality;development ofcompulsory entrepreneurial studies for NOUN’s studentsand;improving employability content in curricula and developingemployabilityperformance indices of NOUN’s graduates.

KEYWORDS:EMPLOYABILITY,GRADUATES, ALUMNAE,EMPLOYMENT, ENTREPRENEURIAL,PROMOTION, CONVERSIONAND

CURRICULA.

2/ Employbilityin Open and distance....... Slokoja stady Center

INTRODUCTION

Within the open anddistance learning (ODL) mode of education,employability is part ofthe Lifelong Learning paradigm, which emphasizesthe continuouslearning process individuals develop throughout their livesand takesplace in formal, informal, or non-formalcontexts. In this domain,distance and online universities are seenas key organizations in preparingadults to fulfill the expectationsof the labour market.

It is a fact that education is the greatestsocial leveler and that educationis the most potent instrument formental and social emancipation. Nations ofthe world, in recognitionof this, sought to provide quality education formajority of theircitizens in an evenhanded and accessible manner (Fafunwa1974). Therelationship between education and employabilityis of increasinginterest among policy-makers,both on the level of the overall provision andthe development of theeducational programmes (Kottmann and De Weert,2013).One of the central goals of higher education is thecompetence-development ofstudents in order to enhance their jobchances (ibid).

Thequality andemployability of universitygraduates arevery importantconcernswith regard to human resource development in a country.Theseare affectedby the level of development of education and training, andtheavailability of skilled mentors and facilities. Research evidencesshowthat openand distance learning (ODL) mode of educationcan improve workefficiency and productivity, and, thereby,enhance employability (Silva,Lourtieand Aires, 2013). Workefficiency togetherwithproductivity, in addition toadefinite required level ofeducation, depend upon training and orientation ofhuman resources.These types of activities would include on-the-jobtraining,upgrading courses, and awareness courses, which are possiblemorethrough ODL mode of education than anyother means.

Further,the ODLsystem can raise employment opportunities inmanyways, as it helps develop the necessary skills, attitude andmotivation to matchopportunities to fresh job seekersand workers’ advancement aswell as for self-employment(ibid).Recently, there has been increase in demand for skilled labouras aresult of globalization and changes in technology and thereorganizationof work structure. The process of skill acquisitionand development through

ODL system in the developingcountries likeNigeria is more importantsinceconventionaltraining institutions do not have the capacity to train allthose whowant to acquire skills.For instance, in Nigeria,about 1.0 millionseek admission to theexisting conventional universities annuallybut only0.12% get admitted due to inadequate resources in theuniversities (Fabiyi andOladipo, 2008).Moreover,only a few of those who want toacquire universityeducation have the means toafford conventionaltraining.

It is in this context that the value ofthe use ofthe ODL mode of

Obaka,Inabo Abel / 3

education forhuman resource developmentin Nigeria cannot be overemphasized.Hence, the need toassess the employability of the National OpenUniversity of Nigeria (NOUN)’sgraduates using alumnae of NOUN’s Lokojastudy centrefor empirical verification.

LITERATURE REVIEW

In this section, the researcher reviewed relevant literatures on theconceptof employability, supply-side anddemand-side elements of employabilityand open and distancelearning (ODL) mode of education in Nigeria.

THE CONCEPT OF EMPLOYABILITY

The dictionarydefinition of employability is ‘the character or qualityofbeing employable’. The Confederation of British Industry (CBI)has definedemployability thus: “Employability is thepossession by an individual of thequalities and competenciesrequired to meet the changing needs of employersand customers andthereby help to realise his or her aspirations and potentialin work” (CBI, 1999, p. 1). Otherattempts to define the concept have hinted ata more holisticapproach, emphasising the impact of both individualcharacteristicsand labour market conditions—i.e. both labour demand andsupplyfactors. The Canadian government’s Labour Force DevelopmentBoardoffered the following definition: “Employability is therelative capacity of anindividual to achieve meaningful employmentgiven the interaction of personalcircumstances and the labourmarket.” (Canadian Labour Force DevelopmentBoard, 1994, p.viii).

A broad-rangingdefinition of the concept was developed by Hillage andPollard (1998)who see employability as an individual’s ability to gaininitialemployment, maintain employment, move between roles withinthe sameorganisation, obtain new employment if required and(ideally) secure suitableand sufficiently fulfilling work. Hencethis covers both unemployed peoplelooking for work and employedpeople seeking alternative jobs or promotion.Employability thus involves; “Thecapability to move self-sufficiently withinthe labour market torealise potential through sustainable employment. Forthe individual,employability depends on the knowledge, skills and attitudestheypossess, the way they use those assets and present them to employersandthe context (e.g. personal circumstances and labour marketenvironment)within which they seek work.” (Hillage andPollard, 1998, p. 12). Schultz,Bowman,Becker and the like as suggested in Akangbou (1985) believethatincrease in the stock of human capital can accelerate nationaldevelopment.Adeyeye (2000) and Akintayo(1990) criticized the manpower planningandeducational system of past and present policy-makers. Some otherscholarsblamed graduate unemployment on mad-rush for paperqualification. The needfor a closer look at the educational contentto ensure tie between job demand


and the educational course contentwas suggested by authors like Akangbou(1985) and Akintayo (2006).

Whereas the original EU strategy included employability as a pillar of itsapproach, themore flexible, longer-term strategy now advocated by theEuropean Commission speaks of promoting more and better ‘investmentinhuman capital and strategies for lifelong learning’. However,this and manyof the Commission’s other guidelines forimplementing the strategy (or so-called ten commandments) reflect thepre-existing focus on employability,including: the promotion ofactive and preventative measures for the (especiallylong-term)unemployed and inactive; improving financial incentives to makeworkpay; and promoting active ageing (CEC, 2003b). Other cross-nationalinstitutions concerned with labour market policy have similarlyemphasised the importance of employability. The United Nations (UN)hasmade employability one of its four priorities for national policyaction on youthemployment (along with entrepreneurship, equalopportunities betweenyoung men and women and employment creation).To this end, the UN’sYouth Employment Network has suggestedthat: “All countries need to review,re-think and re-orienttheir education, vocational training and labour marketpolicies tofacilitate the school to work transition and to give young people . ..a head start in working life.” (UN, 2001, p. 4).

SUPPLY-SIDE ANDDEMAND-SIDE ELEMENTS OF EMPLOYABILITY

Evans et al. (1999)suggest a division of employability into supply-sideand demand-sideelements (described as ‘employability components’and‘external factors’).

Employabilitycomponents are identified as including;– the extentof the individual’s transferable skills;– the level ofpersonal motivation to seek work;– the extentof the individual’s ‘mobility’ in seeking work;– access toinformation and support networks;– and theextent and nature of other personal barriers to work.External factorsinclude– theattitudes of employers towards the unemployed;– the supplyand quality of training and education;– theavailability of other assistance for disadvantaged job seekers;– the extentto which the tax-benefits system successfully eliminates

benefittraps;– and (mostimportantly) the supply of appropriate jobs in the local

economy.Similarly, Kleinmanet al. (1998) discuss a range of ‘micro’ and

‘macro’factors that define the detail of each side of the supply-side–demand-side equation. In an attempt to arrive at a definition of employability thatwould provide a ‘framework for policyanalysis’ and a means of understanding


the complexities of thebarriers to work faced by individuals, Hillage and Pollard(1998) have drawn upon many themes from the existing literature.Theirframework for employability seeks to highlight a complex interactionofdifferent components, namely;

Employabilityassets: including baseline assets, such as basic skillsandessential personal attributes (for example, reliability and honesty);intermediate assets, such as job-specific, generic and ‘key’skills (e.g.communication and problem solving); and highlevelassets, such as those skillsthat contribute to organizationalperformance (for example, team work andcommercial awareness).

Presentation: defined as the ability to secure an appointment to anappropriateposition through the demonstration of employability assets (forexample, through the competent completion of a curriculum vitae orapplicationform, or participation in an interview).

Deployment: referring to a range of abilities including career managementskills(for example, awareness of one’s own abilities and limitations, awarenessof opportunities in the labour market, and decision-makingand transitionalskills) and job-search skills.

Context factors,or the interaction of personal circumstances and thelabour market: Hillage and Pollard accept that the individual’s ability to realisethe assets and skills discussed above will to some extent depend upon externalsocio-economic factors, personal circumstances and the relationship betweenthe two. Externalconditions such as local labour market demand andemployerattitudes will impact upon the availability of suitable opportunities, whilepersonal circumstances will affect theability of individuals to seek and benefitfrom opportunities.

Forthe purpose of this research, employability is considered both in itstheoretical and practical dimensions. Atthe theoretical level, employability isthe students’ potentialto adapt and make their knowledge, skills, and attitudesflexibletowards the labour market, promoting their social inclusionandensuring their quality of life. At a practical level, employabilityis thepotential students bring into practice through their skills to becomeemployed or promoted afterobtaining NOUN certificates.

OPEN AND DISTANCELEARNING (ODL) MODE OF EDUCATION IN NIGERIA

The National Open University of Nigeria (NOUN) is a public distanceeducationuniversity and is the only Nigerian public university to teach allundergraduate, master’s, and PhD degrees based on ODL system. Allthedegrees have been adapted to the National University Commission(NUC) approved programmes. Its diversified educational offer is based on aself-developed pedagogical virtual model that emphasizes the followingprinciples: i) student-centred learning, ii) flexibility, iii) interaction, iv)


accessibility, v) affordability and vi)digital inclusion. These principles guideteaching procedures, the roles of students and teachers, the planning, design,and management of learning activities, the materials used, and the assessmentof the acquired skills (Pereira et al., 2007, p. 10).

At the NOUN,the student is at the centre of the university’s pedagogicalmodel, taken as an active individual, the builder of his/her own knowledgeand integrated within a learning community (Aires, 2007, p.21). At its differentlevels, education should facilitate the acquisition and development ofinterlinked skills required by thedigital society as well as of specific skills inthe area of knowledge chosen by the student. The planning of teaching andlearning activities is meticulous, giving priority to the development of skillsin each subject (Pereira etal., 2007, p. 10). Additionally, the results of studentlearning derive from a combination of autonomous and collaborative learning.Collaborative learning prepares students for the needs of organizations whoseobligations are based primarily on work in multidisciplinary teams and thejoint construction of knowledge(Pereira et al., 2007, p. 11).

The principles ofthe NOUN virtual pedagogical model meet thechallengescurrently facing higher education in the field of employability. The primacy ofproviding students with flexibility, autonomy, reflexivity, and a critical guideto the development of metacognitive skills, developing their perceptions ofself-efficacy and knowledge about their mechanisms of action, thought, anddevelopment, are all dimensions that are closely linked to the skillsrequiredfor employability (ibid).

NOUN is the first university in West Africa that operatesan exclusivelyopen and distance learning (ODL) mode of education(Ojoand Olakulehin,2006).

NOUN focuses mainly on open and distance teaching and learningsystem, anddelivers its courses materials via print in combinationwithinformation and communication technology (ICT).This ‘single mode’ ofopen education is differentfrom the integration of distance learning systeminto the face- to-face teaching and learning system, which is more typicalofconventional Universities in Nigeria and other parts of the world.Thus,NOUN reflects a novel development in the provision of highereducation inNigeria. Though Nigeria is thepioneer of ODL in West Africa with theestablishment of NOUN in 1983,and several universities have distance learningprograms, ODL is yetto be entrenched, and its gains yet to be fully realised inthecountry (Gambari, 2014). Apart from the problems that bedevilhighereducation in Nigeria in general, ODL suffers setbacks due to thegeneralinfrastructural deficit paricularly in poor postal system,erratic power supply,ICT spread and penetration, the digital divide(Yusuf, 2006) and poorconnectivity among tertiary institutions inthe country which are essential


for this mode of learning.

OBJECTIVESOF THE STUDY

The objectives ofthe present research were to study:1. the employability of NOUN graduates;2. the adequacy, relevance and application of the distance education to

work place;3. the cost-effectiveness and worth of the NOUN course programmes

RESEARCH HYPOTHESES

Hypothesis 1Ho: Thecurricular contents of NOUN courses are inadequate and not

comparable to those of other Nigerian universities.H1: Thecurricular contents of NOUN courses are adequate and

comparable to those of other Nigerian universities.Hypothesis 2Ho:Products of distance learning are not employableH1: Products of distance learning are employableHypothesis 3Ho: The NOUN course programmes are not worth the money and time

invested and the course fees are not the lowest among Nigerian universities.H1:The NOUN course programmes are worth the money and time

invested and the course fees are the lowest among Nigerian universities.#Hypothesis 4Ho:NOUN Study centre atmosphere and decor are not appealing.H1: NOUN Study centre atmosphere and decor are appealing.

RESEARCH METHODOLOGY

The samples for this study comprised of NOUN’s graduates randomlyselected from Lokoja study centrein Nigeria. The sample was drawnfrom graduated students who registered for various degrees programmes atthe NOUN’s Lokoja study centre. A structured questionnaire entitled theGraduates’ Opinion Rating of Employability of Products of Open and DistanceLearning (GOREPODL) was developed by the researchers to gather therequired information. The GOREPODL is a7-itemLikert-type closed endquestionaire designed to measure those NOUN’s graduates who had eithersecured employment after graduation or werepromoted/upgraded/convertedwith their certificates if they were working before undergoing training atNOUN. The questionnaire was also designed to measure those NOUN’sgraduates who were still unemployed. The instrument was administered tothe NOUN’sgraduates through email, telephone textmessages and by handwhen the researcher travelled to Lokoja, KogiState, Nigeria. Their contact


addresses, email addresses andtelephone numbers were obtained from NOUN’sICT Department.Subjects were asked to rank each item as yes,no, or undecided.The questions on theGOREPODL were designed to elicit subjects’opinionsand attitudes towards the adequacy ofskills acquired and the curricularcontentsof NOUN’s courses in comparison to those of otherNigerianuniversities as well as their employability. Others werecoursesrelevancy and applicability to work schedule, whether NOUN’scourseprogrammes were worth the money and time invested, whetherNOUN’s coursefees were the lowest among Nigerian universitiesand whether NOUN’s Studycentre atmosphere and decor areappealing. The instrument wasvalidated bytwo experts in research and evaluation; its test-retestreliability was0.68 (n = 20).One hundred and fifty (n = 150)respondents were from NOUN’sLokoja studycentre. Results were analyzed using simple percentagestatistics.

RESULTS AND FINDINGS

RESULTS GENERATED FROM THE INSTRUMENT ARE PRESENTED IN TABLE 1 BELLOW.

TABLE 1: RESULTS OF THE GRADUATES’ OPINION RATING OFEMPLOYABILITY OF PRODUCTS OF OPEN AND DISTANCE

LEARNING (GOREPODL)

Source: Authors’ Research Survey 2014

No. Questions Yes No Undecided 1. NOUN Graduates have acquired adequate skills

for the labour market. 130 (86.67%)

- 20 (13.33%)

2. The curricular contents of NOUN courses are adequate and comparable to those of other Nigerian universities.

120 (80%)

12 (8%) 18 (12%)

3. As a NOUN Graduate, you were employed or converted or upgraded after graduation.

93 (62%) 57 (38%) -

4. NOUN Courses were relevant to what NOUN Graduates use/apply at work.

90 (60%) 60 (40%) -

5. The NOUN course programmes are worth the money and time invested.

130 (86.67%)

15 (10%) 5 (3.33%)

6. NOUN Course fees are the lowest among Nigerian universities.

80 (53.33%)

50 (33.33%)

20 (13.33%)

7. NOUN Study centre atmosphere and decor are appealing.

60 (40%)

90 (60%) -


Table:1 above shows the item-by-item percentage analysisof thestructured questionnaire entitled the Graduates’ Opinion Rating

of Employability of Products of Openand Distance Learning(GOREPODL)developed by the researcher.One hundred and thirty NOUN’sgraduands(86.67%) perceived that theyhave acquired adequate skills for thelabour market. Twentygraduands (13.33%)disagreed to the statement:“NOUNGraduates have acquired adequate skills for the labour market.”Theresearcher suggest that this finding isnot surprising however, consideringthat NOUN’scurricula are designed for life-long learning andemployability.

Responses to Item 2:One hundred and twenty students (80%) agreedthat, “Thecurricular contents of NOUN courses are adequate and comparable to thoseof other Nigerian universities. ”This indicate that there is little differencein graduates’ perceptions of lectures/tutorials used in the conventionalinstitutions versus NOUN. This finding suggests that students engaged inODL willlikely achieve learning outcomes similar to that offered byconventional educational methods.

In view of the positive responses to Items 1 and 2 above, the study rejectedthenull hypothesis in hypothesis 1 which stated that the curricular contentsof NOUN’s courses are inadequate and not comparable to those of otherNigerian universities and accepted the alternative hypothesis that thecurricularcontents of NOUN’s courses are adequate and comparable to those of otherNigerian universities.

A finding from Item 3, “As a NOUN Graduate, you were employed or convertedor upgraded after graduation,” in which ninety-three graduates (62%) agreeesimply that NOUN’s graduates are employable. The study,therefore , rejectedthe null hypothesis in hypothesis 2 that products of distancelearning arenot employable and accepted the alternative hypothesisthat products ofdistance learning are employable.

Otherfindings in items 4, 5 and 6 were that respondents agreed on coursesrelevancy and applicability to work schedule (64%); that NOUN’s courseprogrammes were worth the money and time invested (86.67%) and thatNOUN’s course fees were the lowest among Nigerian universities(53.33%). This means that in hypothesis 3, the studyrejectedthe nullhypothesis that the NOUN’s course programmes are not worth the moneyand time invested and the course fees are not the lowest among Nigerianuniversities. The study, therefore, accepted the alternative hypothesis thatNOUN’s course programmes are worth the money and time investedand thecourse fees are the lowest among Nigerian universities.

However, in item 7, ninety respondents (60%) disagreed that NOUN’sstudy centres’ atmosphere and decor were appealing. The study, therefore,accepted the null hypothesis in hypothesis 4 that NOUN’s study centreatmosphere and decor are not appealing and rejected the alternative hypothesis


that NOUN’s study centre atmosphere and decor areappealing.

DISCUSSION

It has increasingly become important for individuals to take on a highlyflexible, adaptable and proactive approach towards managing their careers,and by implication, their employability. Being employable is especially relevantto people studying for degrees and graduates as employers seek graduatesthat display qualities that will enable them to ‘hit the ground running’ indelivering value to the organization and to stay abreast of the latestdevelopment in the career environment. Despite the obvious significance ofemployability and widespread interest in the topic, it remains conceptuallyambiguous (Harvey, 2001; McQuaid & Lindsay, 2005) and there is a lack ofempirical studies that explain its foundation (Fugate etal., 2004:16). Moreover,relatively fewstudies have attempted to measure employability (Silva,Lourtie,and Aires, 2013) and fewer stillhave focused on developing accurate measuresto assess the employability of ODL graduates in particular.

Findings from this study are very important as well. Althoughrespondents’ recognition of the worth of ODL university education was neverin doubt, they nonetheless complained about the poor conditions of NOUNstudy centre. Graduates’ responses to item 7 supported this assertion.Most graduates in this study held positive perceptions and attitudes towardsODL as indicated in their responses to items 1-6. These findings suggest thereis strong rationale for the expansion of the ODL institutions in Nigeria. Italsosuggests that ODL institutions have reached the critical tipping point ofacceptance, and as such ODL institutions are well positioned to become apermanent component of the formal education system in Nigeria. Sustainingstudents’ favorable perceptions and improving any and all shortcomings asthey arise now rests on the shoulders of those charged with running Nigeria’sODL institutions. These educational leaders must not only run ODLinstitutions effectively and efficiently, they must strive to continuously improvethe quality of their institutions’ educational offerings and seek ways to expandtheir educational provision.

The 150 NOUN’s graduates at Lokoja study centre who responded tothis survey indicated their interest in the unique features that madeup ODLinstitutions, such as adequacy and relevance of skills and curricular contents,employability and worth of time invested in the programmes, comparativelylower fees, and quality of study centre. The findings reported here also suggestthat those administering and leading Nigeria’s ODL institutions are in anexcellent position to build positively on the favourable perceptions alreadyheld by many distance learning students. They can achieve this through theeffective and efficient management of Nigeria’s ODL institutions.


CONCLUSION AND RECOMMENDATIONS

The overall purpose of this study was to develop and evaluate a measureof graduate employability in the context of the ODL mode of education. Acomprehensive literature review provided the context for highlighting theneed for individuals to be employable against the back drop of a turbulentwork and career environment. The employability construct was a structuredquestionnaire entitled the Graduates’ Opinion Rating ofEmployability ofProducts of Open and Distance Learning (GOREPODL) developed by theresearcher as an instrument to gauge ODL graduates’ employability. The resultsof this study have therefore made a contribution to the academic community,higher education and industrial psychology practice by providing valuableinsight into the conceptualisation and effective measurement of employability,a construct that has become not just important but indeed imperative in acontinuously shifting work and career space.

Research on the phenomenon of employability in distance highereducation needs further development. The challenges currently facingthe Nigerian higher education, particularly the complexity of entering thelabour market for many graduates, the new paradigm of Lifelong Learning,and the peculiarities of adult and distance learning, justify more research inthis domain. In view of the findings above, it is hereby recommended thatall the NOUN’s study centres be upgraded with modern amenities. In addition,to increase employability, NOUN’s curricula be redesigned for the inclusionof formal training for life skills; provision of technical and vocational educationsystem; the use of more life case analyses in teaching to improve practicality;development of compulsory entrepreneurial studies for NOUN’s students and;improving employability content in curricula and developing employabilityperformance indices of NOUN’s graduates.

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14/ Behaviour of Investor Towards ........ Cochin City ISSN NO. 2394-8965, GJMMS

VOL -1, Issue -1, JAN- MAR -2015

BEHAVIOUR OF INVESTOR TOWARDS RISK IN MUTUAL FUNDSWITH SPECIAL REFERENCE TO RETAIL INVESTORS IN COCHIN CITY

V. SrinivasanResearch Scholar in Management Studies, Karpagam University, Coimbatore

Dr. R. KaruppasamyDirector, Nehru Institute of Technology ,Coimbatore

ABSTRACT

A retail investor makes an investment in a mutual fund scheme inexpectation of higher return. The risk is the actual return may be less thanexpected return. The investment behaviour of a retail investor varies withvarious factors contributing to his risk level while making an investment ina mutual fund scheme. This study makes an attempt to understand the investorbehaviour towards risk in mutual funds. The study finds that the investmentbehaviour of mutual fund investors’ is positive towards the mutual fundindustry as investors are satisfied with the returns and service provided bymutual funds. Company reputation and schemes’ features are the drivingfactors for the investors to invest in mutual funds. The risk preference of theinvestors is increasing with decrease in age and with decrease in number ofdependents. However, there is a mismatch between income levels and risk-return preference by investors as individual from varied income levels is willingto take high risk to achieve high returns. In order to avoid this mismatch an“Investors’ Risk Taxonomy Model and Matrix” is been developed using the primarydata collected.

Primary data have been collected from mutual fund investors in Cochin,India through structured questionnaire.

KEYWORDS : INVESTMENT BEHAVIOUR, INVESTOR BEHAVIOUR TOWARDS RISK, MUTUAL

FUNDS, KNOWLEDGE, INVESTORS RISK TAXONOMY MODEL AND MATRIX, COCHIN, INDIA.

INTRODUCTION

At the time of investing, nothing will pay off more than educating oneself.The investors should be aware of various aspects while making an investmentin an investment avenue. In any economy, investments are the major sourceof growth. Presently retail investors’ have plenty of options for making aninvestment, but in the current economic position where the inflation is growingat a faster pace than the interest rate of bank savings and high volatility of

V. Srinivasan . Dr. R. Karuppasamy / 15share market prices puts the investor in a dilemma to choose a suitable andprofitable investment avenue.

This need of investors’ gears to shift the investment trend to mutualfunds where the pool of funds are collected from investors and invested insecurities like shares, bonds, debentures, gold, money market instrumentsetc. which are managed by a professional fund manager. Mutual fund offersvarious schemes which suit the risk appetite and return needs of differentkinds of investors. If an investors, invest in a mutual fund scheme withouthaving the knowledge of own risk tolerance level, he/she may end up losingmoney due to various risks involved in a particular scheme. It is theresponsibility of a Mutual Fund house to understand the risk profile andinvestment behaviour of investors and suggest suitable scheme to them andalso have to manage the risk efficiently by revising the portfolio according tomarket shifts to match the risk level and investment objective of a particularscheme.

This research helps in identifying the differences in the risk profiles ofmutual fund investors and their investment behaviour.

1. REVIEW OF LITERATURE

V G Murugan (2012), evaluated the investors behaviour in mutual fundand found that one–third of investors out of 300 respondents have not formedany attitude towards mutual fund investments. The main reason behind thishas been observed to be the lack of awareness of investors about the conceptand working of the mutual funds. As far as the benefits delivered by themutual funds are concerned, ‘return potential’ and ‘liquidity’ have beenperceived to be the most attractive by the investors, followed by ‘flexibility’,‘affordability’ and ‘transparency’.

Dr. K. Lakshmana Rao (2011), analysed investors perception towardsmutual fund schemes and suggested that Regulatory bodies like SEBI, IRDA,AMFI and other AMC’s have to conduct educational and orientationprogrammes in Universities, institutes and stock exchanges, so that investors’will enhance their knowledge for making more prudent investment decisions.

D Kandavel (2011), conducted a research on attitude of the investorstowards mutual fund selection criterion in Puducherry and found that variedage group people have varied attitude towards mutual fund selection. Genderand education level has no significant influence on the attitude level of investors.

Alex Wang (2011), studied the young generations investing behavioursin mutual funds and found that gender, income, knowledge, and experienceemerge as important personal and social influences on younger generations’investing behaviours in mutual funds. This underscores the importance offinancial socialization of younger generations at school and home.

16/ Behaviour of Investor Towards ........ Cochin CitySimran Saini, Dr Bimal Anjum and Ramandeep Saini (2011), examined

the investors’ perception and awareness towards mutual funds and outlinedthat mostly the investors have positive approach towards investing in mutualfunds. In order to maintain their confidence in mutual funds they should beprovided with timely information relating to different trends in the mutualfund industry.

Nidhi Walia (2009), analysed the risk perception towards mutual fundservices and reveals that due to volatility in the market, retail investors prefermutual funds to stocks, but some desired investors need innovation and addedquality dimensions to the existing mutual fund services to prefer it a priorinvestment avenue.

Ms T R Rajeswari (2001), examined the factors influencing the mutualfund scheme selection by retail investors reveals that mutual fund is the fourthmost preferred investment vehicle. The investors look for safety first in mutualfund products, followed by good returns, tax benefits, liquidity and capitalappreciation.

2. MUTUAL FUND

Mutual fund is a vehicle to mobilize funds from investors, to invest indifferent markets and securities, in line with the investment objectives agreedupon, between the mutual fund and the investors.

Fig 3.1: Mutual fund working process

3.1 ADVANTAGES OF MUTUAL FUNDS FOR RETAIL INVESTORS

a. Professional Managementb. Affordable Portfolio Diversificationc. Economies of Scaled. Liquiditye. Tax Deferralf. Tax benefits

V. Srinivasan . Dr. R. Karuppasamy / 17g. Convenient Optionsh. Investment Comforti. Regulatory Comfortj. Systematic approach to investments

3. RESEARCH METHODOLOGY

In mutual funds different levels of risks are associated with different typeof schemes/funds. It is important to study the investment behaviour of mutualfund investors towards risk is to understand their investment needs, risktolerance level and risk-return needs and other factors influencing theinvestment behaviour of retail mutual fund investors.

A well-structured questionnaire have been prepared and distributed tothe retail mutual fund investors of Cochin region. Since the population ishuge convenience sampling method is adopted for collecting primary data.Responses of 50 individual investors were collected from Cochin usingquestionnaire and those were assumed to be having knowledge of financialenvironment.

4.1 OBJECTIVES OF THE STUDY

- To assess the differences in the risk profile of investors and to suggesta risk model

- To analyse the factors influencing the decision of investors to investin Mutual Funds

- To estimate the satisfaction level of investors who invested in MutualFunds.

4. ANALYSIS AND DISCUSSION

The primary data collected from retail investors using the interviewmethod is been analysed using the frequencies, percentages and factor analysismethods.

5.1. PROFILING OF RETAIL MF INVESTORS IN COCHIN REGION.

Table 5.1.1: Gender of respondentsGender RespondentsMale 86%Female 14%

18/ Behaviour of Investor Towards ........ Cochin CityTable 5.1.2: Age of respondents

Age of Investor Respondents20-30 years 36%30-40 years 32%40-50 years 16%50-60 years 14%60-70 years 2%70-80 years 0%

Table 5.1.3: Annual Income of respondentsAnnual Income Respondents< 1 Lakh 0%1-2 Lakhs 10%2-3 Lakhs 26%3-4 Lakhs 16%4-5 Lakhs 18%5-6 Lakhs 4%6-7 Lakhs 2%7-8 Lakhs 0%8-9 Lakhs 0%9-10 Lakhs 0%> 10 Lakhs 4%

Table 5.1.4: Annual savings of respondentsAnnual Savings of investor Respondents< 50 Thousand 8%50 Thousand - 1 Lakh 42%1-2 Lakhs 22%2-3 Lakhs 16%3-4 Lakhs 2%4-5 Lakhs 4%5-6 Lakhs 4%> 6 Lakhs 2%

V. Srinivasan . Dr. R. Karuppasamy / 19Table 5.1.5: Education Level of respondents

Qualification of investor RespondentsPost Graduate’s 44%Graduate’s 46%Higher Secondary 10%EducationNo Education 0%

Table 5.1.6: Marital Status of respondentsMarital Status of Investor RespondentsMarried 82%Unmarried 18%

Table 5.1.7: Occupation of respondentsOccupation of Investor RespondentsPrivate Employee 54%Government Employee 20%Self Employed 22%Others 4%

5.2. INVESTMENT BEHAVIOUR OF RETAIL MUTUAL FUND INVESTORS

From the appendix fig. 5.2.1 it is observed that out of the total populationof retail mutual fund investors, 30% of investors prefer mutual funds as theirbest investment avenue, 18% prefer to invest in savings bank account, 16%prefer to invest in bank fixed deposits, 8% prefer to invest in public providentfund, 4% prefer to invest in life insurance policies, 16% prefer to invest inequity shares whereas 8% people prefer to invest in Gold, Recurring deposits,post office savings and commodities.

From the appendix fig. 5.2.2 it is seen that out of the total population ofretail mutual fund investors, 72% people prefer to invest in equity relatedschemes, 20% prefer to invest in balanced schemes and the remaining 8%prefer to invest in tax saver and debt schemes.

From the appendix fig. 5.2.3 it is observed that out of the total populationof retail mutual fund investors, 80% prefer to invest when market is performinglow, 8% prefer to invest when market is balanced, 8% prefer to invest whenmarket is performing well and the remaining 4% prefer to invest when marketis fluctuating.

From the appendix fig. 5.2.4 it is seen that out of the total population ofretail mutual fund investors, 26% people believe that investing in mutualfund schemes will help them in achieving their goals, 52% people has a partialconfidence that investing in mutual fund schemes will help them in achievingtheir goals and 22% people has a no idea whether investing in mutual fundwill help in achieving their goals.

20/ Behaviour of Investor Towards ........ Cochin City5.3. RISK PREFERENCE, AWARENESS AND TOLERANCE LEVEL AMONG MUTUAL FUND

INVESTORS.

From the appendix fig. 5.3.1 it is observed that out of the total populationof retail mutual fund investors, 80% people are well aware of the risks involvedbefore investing in a mutual fund scheme, 18% people are partially aware ofthe risks involved before investing in a mutual fund scheme whereas only 2%people are unaware of the risks involved before investing in mutual fundscheme.

From the appendix fig. 5.3.2 it is seen that out of the total population ofretail mutual fund investors, 74% people has good knowledge of fact sheetbefore investing in a mutual fund scheme, 18% people has partial knowledgeof fact sheet before investing in a mutual fund scheme whereas 8% has noknowledge of factsheet before investing in a mutual fund scheme.

From the appendix fig. 5.3.3 it is observed that out of the total populationof retail mutual fund investors, 32% prefer a portfolio which yields high riskand returns, 56% prefer a portfolio which yield above average risk and returns,6% prefer a portfolio which yields below average risk and returns andremaining 6% prefer a portfolio which yields low risk and returns.

From the appendix fig. 5.3.4 it is seen that out of the total population ofretail mutual fund investors, the investors who belong to the age group of20-30 years tend to take higher risk and the investors who belong to the agegroup of above 50 years tend to take below to above average risk.

From the appendix fig. 5.3.5 it is observed that out of the total populationof retail mutual fund investors, the investors who have the earning of 2-3Lakh annual income willing to take high risk aiming for high returns andinvestors who earn above 5 lakhs also willing to take high risk aiming toearn high return.

From the appendix fig. 5.3.6 it is seen that out of the total population ofretail mutual fund investors, the investors who has two and less than twodependents tend to take high risk while investing, whereas the investorswho has more than two dependents tend to take moderate risk.

V. Srinivasan . Dr. R. Karuppasamy / 215.4. INVESTORS RISK TAXONOMY MODEL AND MATRIX.

Fig 5.4.1: Investors Risk Taxonomy ModelBased on the demographics and the risk – return needs of the Mutual

Fund investors the following Risk Taxonomy Model and Matrix has beenprepared in order to provide a suitable scheme to a particular investor to suitone’s risk tolerance level and risk preference which helps the Mutual Fundcompanies to gain investors’ trust for long term and also to avoid future lossto the investor.

22/ Behaviour of Investor Towards ........ Cochin CityTable 5.4.1: Investor Risk Taxonomy Matrix.

The Risk Taxonomy Matrix is used to identify exact risk tolerance levelof an investor with characteristics varied by age group, income level andnumber of dependents.

5.5. SATISFACTION LEVEL OF INVESTORS TOWARDS MUTUAL FUNDS

From the appendix fig. 5.5.1 it is seen that out of the total population ofretail mutual fund investors 6% investors are highly satisfied with the returnsproduced by their investment, 82% investors are satisfied with the returnsproduced by their investment and 12% investors are moderately satisfied withthe returns produced by their investment.

Annual Income of Investor

Age of Investor

1-2 Lac

2-3 Lac

3-4 Lac

4-5 Lac

5-6 Lac

6-7 Lac

7-8 Lac

8-9 Lac

Dependents to Investor

20-30 Years

H H H H H H H H 1 AA AA AA H H H H H 2 BA AA AA AA H H H H 3

30-40 Years

AA AA H H H H H H 1 BA BA AA AA H H H H 2 BA BA AA AA AA H H H 3

40-50 Years

AA AA AA H H H H H 1 BA BA AA AA AA H H H 2 BA BA BA AA AA AA H H 3

50-60 Years

AA AA AA AA H H H H 1 BA BA BA AA AA AA H H 2 BA BA BA BA BA AA H H 3

60-70 Years

AA AA AA AA AA AA H H 1 BA BA BA BA AA AA H H 2 L L BA BA BA BA AA H 3

70-80 Years

BA BA AA AA AA AA H H 1 L BA BA BA BA AA AA AA 2 L L L L BA BA BA AA 3

V. Srinivasan . Dr. R. Karuppasamy / 23From the appendix fig. 5.5.2 it is observed that out of the total population

of retail mutual fund investors 10% investors are highly satisfied with theservice provided by the Mutual Fund companies, 80% investors are satisfiedwith the service whereas 10% investors are moderately satisfied with the service.

5.6. FACTORS INFLUENCING INVESTORS TO INVEST IN MUTUAL FUNDS

From the table 5.6.1 and 5.6.2 it is observed that factor analysis isconducted using 14 variables identified. The results of factor analysis identifiedthree factors which influence the investment decision of retail investors are

i. Reputationii. Featuresiii. Innovativeness and RatingThis Factor analysis clearly says that investors tend to choose a scheme

from a Mutual Fund house by taking into consideration the reputation ofmutual fund house, features, innovativeness and rating of scheme.

5. CONCLUSION

This study reveals that the investment behaviour of mutual fund investors’is positive towards the industry. The mutual fund investors are satisfied withthe returns and service provided by the mutual fund companies. Reputationof the company and fund features’ are found to be the driving factors for theinvestors to invest in schemes of mutual funds.

The mismatch between the investors’ risk tolerance level and the risk-return preference of the investors leads to the loss in the investors’ principaland trust. To avoid this mutual fund companies should suggest suitable schemeto the investors where the risk prevailed in the scheme is perfectly tolerableby the investor.

Since this study is carried out among the investors in Cochin City, thereis a further scope for the researchers to extend similar studies in other cities.

6. SUGGESTIONS AND RECOMMENDATIONS

- Among the respondents 34% of the investors have chosen savingsbank account and bank fixed deposit as their favourite investment avenue.Thus there is an ample opportunity for the mutual fund companies to capturethese markets by imparting knowledge in the minds of investors about theadvantages of investing in mutual funds.

- Out of the total respondents 20% have less or no knowledge of therisks involved in a scheme before making an investment decision. The MutualFund companies should feel responsible in making their investors aware ofrisks involved before making an investment decision.

- Out of the total respondents 26% do not have knowledge of fact-sheetbefore making an investment decision. Hence all the investors should be

24/ Behaviour of Investor Towards ........ Cochin Cityrequested to go through fact-sheet before making an investment.

- There is a high mismatch between the investors risk tolerance leveland the risk an investor is facing after making an investment. This should beavoided by following the Investor Risk Taxonomy Model suggested in chapter5.

- When investors are requested to give suggestions for improvement inthe selection of Mutual Fund schemes, most of the investors suggested thatconducting seminars and workshops in a frequent intervals to educate themregarding the performance of the schemes will help them in making a wisedecision.

REFERENCES

(A) ARTICLES

Kandavel D. (2011), “Attitude of the Investors towards Mutual FundSelection Criterion in Puducherry an Empirical Study.” InternationalReferred Research Journal, Volume 3, Issue 26, pp. 18:20.Murugan V G. (2012), “Evaluation of Investors Behaviour in MutualFunds.” EXCEL International Journal of Multidisciplinary ManagementStudies, Volume 2, Issue 1, pp. 274-285.Rajeswari T R and V E Rama Moorthy.(2011), “An Empirical Studyon Factors Influencing the Mutual Fund/Scheme Selection by RetailInvestors.”.Rao K.Lakshmana. (2011), “Analysis of Investors’ Perceptions towardsMutual Fund Schemes with Reference to Awareness and Adoption ofPersonal and Family Considerations.” International Journal ofMultidisciplinary Research, Volume 1, Issue 8, pp. 175-192.Saini Simran, Dr Bimal Anjum and Ramandeep Saini. (May 2011),“Investors’ Awareness and Perception About Mutual Funds.”International Journal of Multidisciplinary Research, Volume 1, Issue 1, pp.14-29.Walia Nidhi and Dr Ravi Kiran, (May 2009), “An Analysis of Investor’sRisk Perception towards Mutual Funds Services.” International Journalof Business and Management, Volume 4, No. 5, pp. 106-120.

(B)BooksWang Alex. (2012): “Younger Generations’ Investing Behaviours inMutual Funds: Does Gender Matter?.” The Journal of Wealth Management.pp. 13-23.NISM-Series-V (2011), “A: Mutual Fund Distributors CertificationExamination” National Institute of Securities Markets. Navi Mumbai.Malhotra, Naresh K.( 2003) “Marketing Research”. Pearson Education.New Delhi.

V. Srinivasan . Dr. R. Karuppasamy / 25Chawla, Deepak and Neena Sondhi (2011) “Research Methodology”.Vikas Publishing house pvt. Ltd.New Delhi.Satish D and Kishore Krishna P (2006), Behavioral Finance – AnIntroduction, The ICFAI University Press. Hyderabad.

26/ Remittances and Enterpreneurship Development ISSN NO. 2394-8965, GJMMS


REMITTANCES AND ENTREPRENEURSHIP DEVELOPMENT

Jubran KhalidDepartment of Economics University of Gujrat

ABSTRACT

For the last one decade, remittances have been showing an upwardincreasing trend in case of Pakistan and being, the second best source offoreign exchange and foreign investment, they work like a dominant force tomanage the current account deficit. During the global economic down turn,remittances have shown resilience and recorded 23.9 percent growth during2009 over the previous year 19.5 percent in 2008. Remittances have becomethe economic lifeline for the destiny of Pakistan and promoted economicgrowth as it shows 5.5 percent share in GDP of Pakistan in 2010. As far as thematter of entrepreneurship is concerned, it is the software of the economyand works like blood in vain for economic growth. In developing countrieslike Pakistan, entrepreneurship plays a vital role in promoting the economicgrowth through employment creation and poverty reduction. The situationof entrepreneurship in Pakistan is not satisfactory due to some factors likecorruption, property rights, policy implications, tax regulations etc. This studyconducts a survey to analyze the role of remittances in entrepreneurshipdevelopment. The survey includes the 120 households that were interviewed,located in rural and urban areas of Gujrat. The major focus of the study is onan important source of entrepreneurship development for the households ofGujrat, remittances. This study employs the logistic regression to computethe results as econometric technique and it concludes five variables as Amountof remittances, Family business experience, Profession in abroad, Maritalstatus, and Domestic credit availability are significant and have positiveassociation with the entrepreneurship development except Marital status.Remittances don’t very robustly impact on the entrepreneurship development.Based on the results and discussion, the study suggests that governmentshould provide the technical education, opportunities to invest, remove thehigh constraints on the credit, and remove the obstacles on the way ofentrepreneurship. Last but not least, the government should sketch outentrepreneurship and innovation based policies.

Jubran Khalid / 27

KEYWORDS: REMITTANCES, ENTREPRENEURSHIP, CREDIT AVAILABILITY, BUSINESS EXPERIENCE,LOGISTIC REGRESSION

INTRODUCTION

International migration is one of the important factors, which affect therelations between developing and developed economies in 21st century. By2010, the stock of international migrants in foreign countries has touched thefigure 215.8 million or 3.2 Percent of the world population. Official recordedamount of remittances from these workers constituted the amount of $440billion in 2010 of which the developing countries received $325 billion. Eventhough, these remittances show resilience during the global economic crisisas fell by 6 Percent and afterward they recovered soon (World Bank, 2011).

Remittances work like an energy for the developing economies as theyhelp to build the financial sector, improving the living standard of thehouseholds, bring them out of the extreme poverty, and prepare them againstthe income shocks as well. The changing behaviour of the households leadsan increase in the demand of the goods and services, which in turn boost upthe entrepreneurship environment in the economy, create the employmentand promote higher economic growth [Orozco, M. (2007), Khan, A. (2009)].

No doubt, remittances are important for the economic growth anddevelopment, they are also play a vital role in promoting the entrepreneurshipdevelopment for the households who receive the foreign earning. The recipienthouseholds are more tend to invest the amount of remittances inentrepreneurial activities (i.e. to initiate a business) which in the long runleads economic growth in the economy [Yang, D. (2004), Dornates and Poze(2006), Adams, R. H. (2007), Vacaso, C. (2010)]. Entrepreneurship is one of theimportant engines of growth for Pakistan. The pity is that the entrepreneurialactivities remain limited in Pakistan since its independence. It is believed thatentrepreneurship cope with the new economic, social and environmentalchallenges. Pakistan ranks at 85th among the 183 countries in the world withrespect to ease of doing business in 2010 and 105th in 2012. To highlight theimportance of the entrepreneurship development, it believed that without itthe sustainable growth is not possible [Hussain et al (2006), Orozco, M. (2007),Naude (2008), EIP (2009), World Bank, (2012)]. This study measures the roleof remittances in entrepreneurship development and highlights the importanceof remittances as the best source of capital for entrepreneurship development.

As for Pakistan, remittances have become the second best source of foreignreserve and foreign investment. For the last one decade, Pakistan hasexperienced a high growth in its remittances than any other of its neighborcountry and they have grown by 22.6 percent in 2006-07, 19.5 percent in2007-08, 23.9 percent in 2009-10, and 23.8 percent in 2010-11 from $7.3 billionto $9.1 billion and 25.8 percent during the 2011-12. Due to the high trend of

28/ Remittances and Enterpreneurship Developmentremittances in Pakistan, it ranked the fifth largest remittances recipient countryin the world by 2011. This recent per-excellent growth in remittances attributedto the unmatchable efforts of government to renovate the remittances frominformal to formal channels. Since the launch of Pakistan Remittances Initiative(PRI) in 2009, the remittances received from the formal channel amounted upto 91 percent in 2011-12 from the 75 percent in 2009-10 (Economic Survey,2006-11).

Figure 1.1: Remittances Inflow to Pakistan US$ MillionSource: World Bank, 2011

In Pakistan most of the people are involved in inherited business i.e.Father’s business and people mostly imitate in business adoption (Haque 2007).The New Growth Framework for Pakistan confirmed that entrepreneurshipis an engine for the economic growth and development but still its growth isstagnant (Haque, 2011). Entrepreneurship in Pakistan, remains limited and,the most problematic factors for doing business in Pakistan are corruption,policy instability, crime and theft, tax regulation. (Global CompetitivenessReport 2011-12). Due to these factors, the environment of doing business isimpacted a lot and need to control them for the entrepreneurship development.The self-employed in Pakistan are 15.6 million people (hold own business) in1999, 16.7 million in 2005-06 and 18.3 million in 2009-10 (Human and LaborForce Statistics, 2000-10). These facts also confirmed that the number of self-employed people is increasing over the time.

Ever increasing remittances become the economic lifeline of Pakistan andthe second largest source of foreign exchange earnings and foreign investment.It is clear remittances play an important role in entrepreneurship developmentand prove a good source of capital to finance consumption, construction,savings and investment (i.e. human capital, Manufacturing, Agriculture andsmall businesses) [Woodruff and Zanteno (2001), Yang, D. (2004), Dornatesand Poze (2006), Adams, R. (2007), Vacaso, C. (2010)]. However, in case ofPakistan, with this fact that Pakistan stands at 5th world’s largest remittancesrecipient countries, the remittances are not used in a productive way. Insteadthe major amount of these remittances are used for the consumption,

Jubran Khalid / 29

construction, travelling etc. [Hussian, et al (2006), Haque, (2007), Chemin, M.(2008), Economic Survey 2011-12]. Therefore, it is really an alarming situationfor Pakistan and it needs to cope with the problems in the way of lowentrepreneurship growth, as the going era is entrepreneurship-based. Gujratis very prominent with respect to international migration as the 24.3 percenthouseholds receive remittances and this study measures the role of remittancesin entrepreneurship development in Gujrat for the recipient households.

LITERATURE REVIEW

International remittances and its impact on the migrants’ households isstill a hot debate and much of the literature has been conducted to explainthis phenomenon.

Massey et al (1987) explores the notion of remittances impact on theentrepreneurial activities and business formation. They uses the data collectedamong thirty Mexican communities and U.S. destination areas and estimatethe model including uses of personal resources, household assets, communitycharacteristics, local market potential and macro condition of market to predictthe odd of business formation. The results tell that the receipt of U.S. earningby the households significantly increased the odd of business formation andproductive investment.

Lopez, J. R. and Seligson, M. A. (1989) made a study with respect tocheck the impact of remittances on the small business development in ElSalvador. The study uses the purposive sampling for the collection of thequalitative information and sample size 200 was to be covered. Businesses arediffering with respect to type as repair shop, auto shop, vendors, restaurantsetc. The results are differing to Mexico as the residents of El Salvador are morelikely to invest in businesses than that of Mexicans. Finally, the study concludesthat half of the respondents report that they invest the amount of remittancesin business development.

Blanchflower, D. G. and Oswald, A. J. (1998) explain the factors whichaffect the supply of the entrepreneur in the society to take part in theentrepreneurial activities or not. The authors find that the availability of creditand inheritance facilitate an individual to be self-employed. The study uses asurvey comprises of interviews of the respondents selected by the randomsampling design and Probit model is used as modeling technique. Many ofthem who report that they don’t own a business is due to lack of capital.

Wit et al (2000) explains the successful determinants of entrepreneurship.The study uses the data from EIM firm survey. It includes the panel data onthe people who started a business in 1994. The success of the business dependson the profits, employment created by the entrepreneur and the survival periodof enterprise. The multiple regression technique is used for the analysis. Theresults find that the duration in business and profit are important

30/ Remittances and Enterpreneurship Developmentdeterminants of a successful entrepreneurship.

Woodruff and Zanteno (2001) examine that credit plays a vital role insmall scale enterprise. The secondary data is used on enterprise taken fromthe Mexico National Urban Employment Survey 1998. The data shows thataccess to capital from remittances have significant effect on the invested capital.The regression findings also suggest that access to remittances determinedthe decision to start an enterprise. The results show that almost 20 Percentremittances are responsible in the invested capital in micro enterprises in urbanMexico.

Yang, D. (2004) uses the four survey data in his study as LFS, SOF, FIESand APIS for impact analysis of remittances on the households. The studyfinds that remittances income helps the households to overcome the creditconstraints, which hamper the investment. Favorable migrant shocks improvethe migrants’ families’ child schooling, reduce child labor, increased expenditureon education and durable goods ownership. Further, the author found thatbetter overseas economic opportunities provide help to the source householdsto invest and encourage them to engage themselves in riskier entrepreneurialactivities.

Haas, H. (2005) in his study in Morocco checks the impact of migration,remittances on economic development on the sending region. He conducts asurvey for qualitative data among the sampled 507 non-migrant, internaland international migrants’ households in Moroccan Todgas Oasis. The studyconcludes that international migration and remittances significantly contributeto economic development and their standard of living. The migrants’households are able to invest more than that of non-migrants in housing,agriculture and other enterprises.

Hussain et al (2006) argues that over the time period remittances affectthe consumption and production in Pakistan. The most affected sectors inPakistan are: construction, transport, communication and consumer goodsindustries. The people have set up small businesses are trade like: motor shops,grinding flour mills, cement agencies, tailoring, bakries and fertilizer shopsespecially those who received remittances. Remittances also used in the realestate development.

Hass, H. (2007) elaborates the relationship between internationalremittances and various direction of socio-economic development in developingcountries. He cites several studies, which indicate that remittance promotesaccess to self-employment and increases the investment in shape of smallbusinesses. In the absence of well functioning credit markets, remittancesprovide migrants and their families’ financial resources to invest in enterprises.Remittance essentially has a substantial potential to reduce poverty indirectlythrough multiplier effects generated by remittances expenditures and

Jubran Khalid / 31

investment.Nude, W. (2008) discusses the entrepreneurship with respect to economic

viewpoint. For this study, a survey was undertaken and found thatentrepreneurship in developing countries remained an under researchedphenomenon. Economic development is the structural phenomenon towarda modern, technological economy based on the services and manufacturing.Entrepreneurship has both positive and negative effects on economicdevelopment. High economic growth result in high per capita income. Thepolicy implication suggests that promoting the entrepreneurship in kind thatin turn promotes high economic growth.

Faridi et al (2010) focuses on the determinants of entrepreneurship inPakistan. They use the primary data for it at district level and cover the 494sampled workers in their interview in district Bahawalpur. For the resultsanalysis, logistic regression technique is employed and the study concludesthat experience and age of the workers have positive and significant effect onself-employment. Further education and good health of the individual alsopositively related to the decision to start their own business so the Govt.should provide the good facilities of health especially in rural areas.

Vasco, C. (2010) reveals in his study that migration and remittances areinsignificant for the rural likelihood to own a business. He uses the Livingstandard Measurement survey (LSMS) 2005-06 data. Probit model is used forresults. Instead of remittances and migration, he found that education, creditaccess and access to services are positively correlated with the probability thatthe households would own a business. However, the households who haveat least one member in abroad have more number of family members inbusiness.

Rehman, M. (2011) checks the economic benefits of remittances from themigrants to their families in the home country. The data is taken from theHousehold survey conducted in Bangladesh and for qualitative data; theauthor conducts an interview of the Bangladesh respondents. The surveyconsists of 12893 sample but the author took 4427 among them i.e. only thosewho were working in Saudi Arabia. The study concludes that only 18 Percenthouseholds use remittances for income generating purposes i.e. doingbusinesses.

THEORETICAL FRAMEWORK

Theoretical framework elaborates the possible channels of the selectedvariables and their inter-links and how they impact the outcome variable intheir turn. The private sector investment (i.e. Entrepreneurship development)causes to raise the employment and income level, which in turn promoteseconomic growth as well.

32/ Remittances and Enterpreneurship DevelopmentBox 1

Source: [Lopez and Seligson (1989), Blanchflower, D. G. and Oswald,A. J. (1998), Woodruff and Zanteno (2001), Ya,ng, D. (2004), Dornates andPoze (2006), Adams, R. H. (2007), Acosta, Fajnzylber, and López (2008)]

Blanchflower, D. G. and Oswald, A. J. (1998), Shad et al (2006), Vasco, C.(2010), Massey et al (1987) and, support that if credit is available from financialinstitutes, friend and family domestically then more the probability to developenterprise. The microfinance plays a vital role in this field and provides creditto the individuals through they have developed their small businesses andstart earning livelihood.

Woodruff and Zanteno (2001), Cuervo, A (2005), and Faridi, et al (2010)find that experience in doing business has significant impact on to start abusiness as compare to a non-experience holder. It means entrepreneurialabilities also important in doing a business.

Arif (1999) uses the job in abroad as explanatory variable in his study tocheck its probability for entrepreneurship development in the country of originby households of the migrants. If an individual is self-employed or engagedwith the entrepreneurial activities in the country of destination then morethe chances that he start business in the country of origin.

Wagner, J. and Sternberg, R. (2002) use contact with the entrepreneursin the society in his study and find that it increases the probability that theindividual to become an entrepreneur. As most of us imitate in doing businessand Haque (2007) confirms that individual often imitate in business adoption.So contact with the entrepreneurs in the society helps them to adopt thebusiness.

Marital status of emigrant of post migration also affects the decision todevelop the entrepreneurship. Arif (1999) uses marital status of the migrantin his study and found that being married show a negative association to thepropensity to invest. Faridi et al (2010) also employs the marital status asvariable for the worker finds it an influencing factor in decision to involve in

Jubran Khalid / 33

self-employment activities.

METHODOLOGY

The study uses the data for analysis, which is collected by holding asurvey in Gujrat. The nature of the dependent variable is binary as theremitter’s family is asked whether they have initiated any business = 1 and 0= otherwise. No doubt that different econometric technique can be applied tothis proposed model as Nero-Network technique, Factor analysis etc. but thestudy employs the Binary logistics for the analysis as different studies usesthe Logistic regression to estimate such models [Arif, 1999 and Faridi et al2010].

SAMPLING

Tahseel Gujrat is selected for this study and this study is based on theprimary data, which is collected by conducting a survey among the selectedpopulation and interviewed them face to face. At first stage, the present studyuses stratified sampling. The data on its union councils and its Mohallahs, isachieved from the 1998 consensus. The study considers Rural and Urban astwo stratas. At the second stage, due to lacking of proper sampling frame, thestudy considers the two clusters as 44 rural union councils and 21 urbanunion councils out of total 67 union councils of Tahseel Gujrat. By using theSPSS software, the number of elements i.e. rural and urban UCs, are selectedfrom each cluster as 8 UCs from rural and 4 from Urban UCs. It is total of 12UCs selected the survey to collect the data. As one rural UC covers on average7 villages while one urban UC covers 10 mohallahs on average. From eachrural and urban selected UCs, two villages and two mohallahs are selected byusing the SPSS software through the simple random technique. Fiverespondents are selected from each selected village and mohallah by using thepurposive sampling to fulfill the targeted sample size 120.

MODEL

On the base of preceding discussion and existing literature such as, Arif(1999), woodruff and Zenteno (2004), Adams, R (2005) Dornates and Poze(2006) and Adams et al (2008) the given model is employed to estimate the roleof remittances in entrepreneurship development.

Eq. 1“Li”

stands for Logit model and the log of odd ratios is linear not only inexplanatory variables but also in parameters.ENT = Entrepreneurship AREM = Amount of Remittances

annuallyEDB = Experience in Doing Business DCA = Domestically Credit

34/ Remittances and Enterpreneurship DevelopmentAvailability

PMS = Post Marital Status Cont E = Contact with entrepreneurPAb = Profession in Abroad

Entrepreneurship is used as dependent variable and binary in nature as1 = the remitter family initiate an enterprise and 0 = otherwise. P if Ent = 1 and1-P if Ent = 0. The remitter family is asked that they have initiated any businessafter migration. Remittances are defined as the amount of remittances receivedby the migrant family and used in continuous form in the model. Postmigration marital status of the migrant is used in nominal form in the modeland experience in doing business means the family business experience beforeinitiating current business and employ in nominal form as 1 = Yes and 2 = No.The contact with the entrepreneurs in the society is also employ in nominalform 1 = Yes and 2 = No. Domestic credit availability facility is used in nominalform in the model 1 = Yes and 2 = No. Profession in abroad is used in nominalform in the model 1 = Business man and 0 = otherwise. They are employed asindependent variables in the model ( Gujrati, 2004)

RESULTS AND DISCUSSION

The reliability statistics of the data is given in Table 1. Cronbach’s Alphais the most common measure of internal consistency (reliability). A commonlyrule of the thumb for describing the internal consistency using Cornbach’sAlpha is as alpha is greater than 0.7.

Table 1 Reliability StatisticsCronbach’s Alpha N of Items0.851 20Table 6.1 is showing the test statistics for the reliability of the data and

the score of Alpha is 0.851 which shows a high level of internal consistencyfor our scale with this specific sample.

DESCRIPTIVE ANALYSIS

The descriptive analysis for the respondents is give in table 2 which tellsthat for each urban 1.3 rural are available and the mean age is 31 years whichshows that it is 13.119 varying from its mean.

Table 2 Descriptive Statistics of RespondentsVariables N Minimum Maximum Mean Std.

Deviation

the respondentLocation of 120 1.00 2.00 1.39 .49Education of the 120 .00 3.00 1.70 .91 respondentMarital status of 120 1.00 4.00 1.47 .54

Jubran Khalid / 35

the respondentAge of Respondent 120 16.00 81.00 31.16 13.19Member of Family 120 2.00 19.00 7.32 3.12

As for the member of the family, 2 is minimum and 19 is maximum and onaverage 7.3 members of the family live in a house.

Table 3 Pre-Migration Descriptive AnalysisVariable N Minimum Maximum Mean Std.

Deviation

Locality 120 1.00 2.00 1.36 .48Marital status 120 1.00 2.00 1.27 .45Age 120 1.00 45.00 24.80 5.77Education 120 .00 3.00 1.58 .82

Table 3 explains the pre migration descriptive for the emigrants, whichexplain that against one urban 1.3 rural are emigrants and their mean age is24 years which is 5.77 varying from its mean.

Table 4 Post Migration Descriptive AnalysisVariables N Minimum Maximum Mean Std.

Deviation

Age 120 22.00 60.00 34.60 10.02Location 120 1.00 2.00 1.42 .49Education 120 .00 3.00 1.60 .82Marital status 120 1.00 2.00 1.71 .45

Table 4 shows post migration that the average age of the emigrants is 34 andagainst 1 urban 1.4 rural is available. More of the emigrants are married aftertheir migration as compare to their pre-migration. As for the education, itremains same for pre-post migration for the emigrants.

DEMOGRAPHIC PROFILE OF RESPONDENTS

Table 5 presents demographic profile of the respondents including theirage, education, marital status, member of the family and family system bylocation. Education is highly significant among these variables as the p-valueis (0.001). It means there is significant variation in education level amongrural and urban i.e. rural and urban differ due to their education. Those wholive in urban location are more educated than those who live in rural areas.

36/ Remittances and Enterpreneurship Development

Table 5: Demographics of Respondents

Source: own survey*shows the significance at 1% level of confidence

Figure 1: Locality

Figure 2: Marital Status

The Figure 1 is showing that 39 percent of the respondents live in ruralarea where as 61 percent are living in urban areas. Figure 2 is showing thatthe population, which is selected for survey, 45 percent is married and 54percent are single. However, the 1 percent is who is widower.

DEMOGRAPHIC PROFILE OF MIGRANTS

Migrants’ demographics are given in Table 6 including their education,

Variables Location Education* Illetrate SSC HSC Graduation+Above

Rural 3 40 20 10

Urban 4 11 12 20

Total 7 51 32 30

X2 = 17.138 df = 3 Sig. = 0.001

38/ Remittances and Enterpreneurship Developmentshowing that most of the emigrants are single as 72 percent are single andonly 28 percent are married at the time of migration.

BUSINESS DEVELOPMENT AND SOME INDEPENDENT VARIABLES

Table 7 discusses the analysis for some of the independent variables withrespect to the business initiation with the help of remittances. Six out of tenvariables are statistically significant and have significant variation with respectthat do remittances help them to initiate a business? Country of migration(0.007), family business experience before initiating this business (0.000), contactwith the entrepreneur in the society (0.000), and amount of remittances (0.007)are significant at 1 Percent level of confidence while domestic credit availability(0.071), migrant marital status during migration (0.072) are significant at 10Percent level of confidence.

Table 7: Business Development and Some Independent Variables

Source: own survey*shows significance at 1% level of confidence

Variables Do remittances help you to initiate a business? Country of Migration* Middle East Europe African countries USA

Otherwise 38 16 7 1

Yes 25 28 1 4

Total 63 44 8 5

X2 = 12.135 df = 3 Sig. = 0.007 Marital Status of Migrant*** Single Married

Otherwise 22 40

Yes 12 46

Total 34 86

X2 = 3.230 df = 1 Sig. = 0.072 Family Business Exp* Yes No

Otherwise 20 42

Yes 50 8

Total 70 50

X2 = 35.884 df = 1 Sig. = 0.000 Contact with Ent* Yes No

Otherwise 20 41

Yes 48 10

Total 68 51

X2 = 30.316 df = 1 Sig. = 0.000 Domestic Credit Ava.*** Yes No

Otherwise 18 43

Yes 26 31

Total 44 74

X2 = 3.269 df = 1 Sig. = 0.071 Amount of Remittances (000)* 100-499 500-999 1000-1499 1500 + above

Otherwise 41 15 1 1

Yes 27 17 6 8

Total 68 32 7 9

X2 = 12.023 df = 3 Sig. = 0.007

Jubran Khalid / 39

**shows significance at 5% level of confidence***shows significance at 10% level of confidenceThe p-value (0.007) for the country of migration shows that those

migrants who are residing in the Middle East are 63 of which 25 initiatedtheir own business with the amount of remittances and 44 are those wholives in Europe of which 28 has initiated their own business with remittances.The migrants who are in Europe direct more remittances in initiating thebusiness than those who are in Middle East. The families who have businessexperience use the amount of remittances significantly in initiating the businessafter the migration of family member. The p-value (0.007) for the amount ofremittances shows that it is highly significant that those who receive 100-499thousand rupees yearly as remittances are 68 of which 27 say that they haveinitiated a business and 41 say they have used for other purposes. As theamount of remittances increase from 100-499 thousand, the proportion ofthose who don’t spend on business development decrease and they shift theamount of remittances into business development. Contact with theentrepreneurs in the society also show positive association to initiate a businesswith remittances. Domestic credit availability and marital status showssignificant association with business initiation.

However, four variables, education of the migrant (0.606), duration ofstay in abroad (0.288), profession in abroad (0.181) and age of the migrant(0.183) show no significant difference in initiating a business. It means thatthese variables don’t affect to initiate the business decision significantly i.e.no significantly association between these variables and initiating a business.

() shows the p-values

ECONOMETRIC ESTIMATION OF THE MODEL

The logistic regression is given in Table 8. In Table 8, the value of Coxand Snell R-square, value of Nagelkerke R-square and the number of thecases are also given. The value of Cox and Snell R-square (0.595) shows thegoodness of fit of the model i.e. 60 Percent variation in dependent variable isexplained by the logistic model i.e. the independent variables and the value ofNagelkerke R-square (0.804) indicates that there is strong relationship of 80.4Percent between the independent and the dependent variables.

40/ Remittances and Enterpreneurship DevelopmentTable 8: Binary Logistics Regression Analysis of Remittances and

Entrepreneurship Development

Source: own survey*shows significance at 1% level of confidence**shows significance at 5% level of confidence***shows significance at 10% level of confidenceThe odd ratio of amount of remittances is showing that it is not very

much influencing the dependent variable. Family business experience beforeinitiating the business is highly significant in the model and positively relatedwith the dependent variable that higher the family experience in businessleads more the probability that they direct the amount of remittance to initiatean enterprise. The model predicts that the odds of developing entrepreneurship22.660 times higher for those who have family business experience than thosewho don’t have family business experience. The odds ratio of entrepreneurshipdevelopment is 4.963 times higher for those who are self-employed(businessman) in abroad than those who are not self-employed. The odds ofentrepreneurship development show that 4.244 times is higher for those whohave domestic credit availability than those who don’t have domestic creditavailability. Post migration marital status of the emigrant negatively influencingthe entrepreneurship development as the odds of entrepreneurshipdevelopment 0.214 shows that married spend less as compare to those whoare single. However, the contact with entrepreneurs in the society comes outto be insignificant.

ENTREPRENEURSHIP

Table 9 is showing that in which field the focus of enterprises is high.Trading and Agriculture are significant at 1 percent level and there is highassociation between these variables and remittances. Those who say thatremittances help them to initiate a trading business are 48 people out of total

Variables Parameters SE Wald Sig. Exp(B) Contact with Entrepreneur -0.502 0.855 0.344 0.557 .606 Domestically Access to Credit 1.446*** 0.851 2.884 0.089 4.244 Marital Status -1.542*** 0.895 2.969 0.085 0.214

Profession in Abroad 1.602*** 0.895 3.204 0.073 4.963

Family Business Experience 3.121* 0.971 10.324 0.001 22.660

Amount of Remittances 0.0000051909* 0.0000013459 14.876 0.000 1.000

Constant -4.975* 1.092 20.775 0.000 .007 Cox and Snell R-square 0.595 Nagelkerke R-square 0.804

N 120

Jubran Khalid / 41

population while 3 say remittances don’t help them to initiate this businessand 72 respondent inform that they don’t have trading business and 13 arethose who say that remittances help them to develop the business other thantrading.

Table 9: Remittances and Entrepreneurship

As for the agriculture, 6 respondents report they develop agriculturewith the help of remittances and 0 responses receive by the respondents forother than agriculture. As for the real estate business, only 5 respondentsgive response that remittances help them to initiate real estate business and 0of others and 115 are those who inform they have initiated a business otherthan real estate of which 53 say remittances help them to initiate this business.

CONCLUSION

Remittances work like energy for the economy and without it thesustainable growth not possible. The present era is also entrepreneurshipand innovation based. The present study measures the role of remittances inentrepreneurship development in Gujrat. Including the six independentvariables such as amount of remittances, family business experience, creditavailability, marital status, profession in abroad and contact with theentrepreneurs in the society, the binary logistic regression is employed toestimate the model.

The results and findings of the study confirm that there is no associationbetween amount of remittances and entrepreneurship development but forthose who have family business experience is highly significant in the modeland show positive association with the dependent variable in businessinitiation. The other variables also give positive association except the maritalstatus. The families with business experience shows a highly significant impacton the entrepreneurship development as its odd ratio shows 22 times higherto initiate an enterprise than those who don’t have business experience.Likewise, the credit availability and profession in abroad also considerablyaffect the probability to start a business (Table 8).

Variables Do Remittances help you to initiate a business? Trading* otherwise Trading

Otherwise 59 3

Yes 13 45

Total 72 48

X2 = 66.079 df = 1 Sig. = 0.000 Agriculture* otherwise Agriculture

Otherwise 62 0

Yes 52 6

Total 114 6

X2 = 6.751 df = 1 Sig = 0.009 Real Estate** otherwise Real Estate

Otherwise 62 0

Yes 53 5

Total 115 5

X2 = 5.577 df = 1 Sig. = 0.018

42/ Remittances and Enterpreneurship DevelopmentTable 9 gives the glimpses of the entrepreneurship development and fulfills

the second objective of the study as more of the respondent response thatthey have directed more of the amount of remittances to initiate the trade-base business as shop of mobile, grocer, cycles, oil agency, poultry farm, etc.as compare to the agriculture and real estate businesses. So, the study concludesthat people develop enterprises more in trading field than any other.

In short, the entrepreneurship works like the software for the economybut due to some problems like policy instability, tax regulations, legal insecurity,market failure and poor access to credit prevent the migrants’ households totake risk of investing the money in entrepreneurship development.

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46/ A Study of Success factors.............. Expansion of a Business


A STUDY OF SUCCESS FACTORS IN INTERNATIONAL EXPAN-SION OF A BUSINESS

Dr. Munawwer HusainVisiting Associate Professor School of Business Management

College of Business University Utara Malaysia

ABSTRACT

Studies have been made on how companies use the Internet as a tool intheir expansion strategy, however an overlooked field has been how Internetcompanies expand their business internationally. Varying generality has beenidentified within these areas, with the organizational structure, marketingand sales, and economic factors being the most standardized amongst thecase study subjects. the results can be used as an example of general successfactors in international expansion by other Internet-service companies.

KEYWORDS: SUCCESS FACTORS, INTERNATIONAL EXPANSION, MARKETING STRATEGIES

1.INTRODUCTION:

The Internet has enabled international expansion possibilities for businesswhich before only was limited to those of certain organization size andfinancial strength. The structural IT-development within the last decade andthe break-through of the Internet has had an extensive impact on globalcommerce. The Internet is one of the fastest growing communication channelsin the world (International Telecommunication Union 2008) with a regularestimate of almost 1.6 billion user (Internet World Statistics 2009) . The Internethas set new standards for communication and rationalized information sharingpeer-to-peer. A large number of new business models have been inventedthrough the use of Internet, as well as creating a new market space for allmodern businesses of today. The internationalization is a key process forInternet companies although there are several barriers including geographical-and cultural factors depending on the country expanded to. Variations cantherefore be required in the service delivery as well as organizational structure.Also different countries require specific marketing and sales strategies as well

Dr. Munawwer Husain / 47as budget level- and financial management. The specific internationalizationstrategy for Internet-service companies is therefore an essential aspect of beingsuccessful on the Internet marketplace. Thanks to the Internet there are anumber of ways to follow through with an international expansion (Kjellman2005). Sweden, although a small market, has been the origin of a number ofsuccessful Internet-service start-ups i.e. Skype, Trade Doubler and PriceRunner. Due to the fact that Sweden is a small home market, Internet- servicecompanies have been forced to expand internationally in order to becometruly successful, thereby underlining the importance of theinternationalization for Swedish Internet- service companies. Today,innovation performance is a crucial determinant of competitiveness andnational progress. Moreover, innovation is important to help address globalchallenges, such as climate change and sustainable development. But despitethe importance of innovation, many OECD countries face difficulties instrengthening performance in this area. Indeed, many OECD countries haveseen little improvement in productivity performance in recent years despitethe new opportunities offered by globalisation and new technologies, especiallythe information and communication technologies

2. LITERATURE REVIEW: THE DETERMINANTS AND FORMULATIONOF INTERNATIONAL BUSINESS STRATEGY

2.1. CLASSIFICATIONS OF INTERNATIONAL BUSINESS STRATEGY

International business strategy can be defined as effectively and efficientlymatching a company’s internal set of activities with the opportunities andchallenges provided by geographically dispersed environments that crossinternational borders (Porter, 1996; Verbeke,2009). However, there is no onecorrect international business strategy. A review of literature reveals variousframeworks and from that various topologies of strategies. Harzing (2000)provided a good integration and empirical evidence of various studies oninternational business strategy classification before that. Her article explained,even though there are a lot of different terms provided by literatures oninternational business over the years “there is a reasonable convergence inthe basic characteristics of the categories distinguished by the various authors”(Harzing, p. 103, 2000). After synthesizing the theories of 19 different studies,including highly influential works such as, Prahalad and Doz (1987), Bartlettand Ghoshall (1989) and Roth and Morrison (1990), she supported Bartlettand Ghoshall’s (1989) classification of four types of international businessstrategies. They are: Multidomestic, Global, Transnational and International,The two advantage dimensions is well illustrated by Integration–Responsiveness (IR) Grid Framework developed by Prahalad in 1987. Thisframework brings together pressure for local responsiveness and cost


reductions (labeled ‘business integration’ in the frame work). Which are thetwo conflicting pressures distinctive to companies engaging in multinationalmarket. It is a useful tool to illustrate

(see Figure 1) where each international strategy fits in term of the relationto multinational market demands.

2.2. INTERNATIONAL BUSINESS STRATEGY FORMULATION

To determine which strategy is appropriate for an international businesswe look at theory of international strategy formulation. Conceptually, businessstrategy is about making a fit between internal capabilities to external situation(Porter, 1996). Therefore, a comprehensive formulation plan that includesboth internal and external factors is needed. Tall man and Yip (2008) providedsuch framework of strategic analysis which includes: setting goals, analysingthe environment (competitive and industry analysis), analysing resourcesand capabilities, developing strategic options, choosing a strategy andimplementing that strategy before going back to the start again with feedbacks.

Adding to this are the specifics of external environments (industry andmarket) related to a business operating multinationally. These specifics involve(1) increased geographic spread; (2) building cross-national economicintegration; (3) varying local preferences leading to local 5 responsivenesspressure; (4) different strategic options of going into another country (Tallman& Yip, 2008). These different dimensions need to be taken into considerationin deciding which international business strategy is appropriate to use.

Dr. Munawwer Husain / 492.3. SUCCESS FACTORS OF INTERNATIONAL BUSINESS STRATEGY

Some studies suggests that the effectiveness of an international businessstrategy can be traced back to when the decision to employ that strategy wasmade. If the right strategy was chosen and implemented in the right industryat the right time then it will be effective. So in this case, the determinant ofsuccess is the external environment in which the company operates in(Carpano, Chrisman & Roth, 1994; Kim & Mauborgne, 1993). However, thisview is ignoring the internal capabilities of a company, it assumed that everycompany has homogeneous resources and they are used in the same way(Zou & Cavusgil, 1996). This assumption is too simplistic and unrealistic.Other studies suggest that success factors depends on which strategy is chosenand how the internal capabilities, organization structure and corporate culturesupports and fit that strategy (Zou & Cavusgil, 1996). For a company thathas a Global Strategy the successful factors are the strengths of production,marketing and R&D activities in

keeping the production cost low. For Multidomestic, they are sensitivityto local demands and production capabilities to respond to them. ForTransnational, the factors are strong capabilities to keep cost low whiledifferentiate product offerings and fostering multidirectional flows ofinformation and skills. And for International Strategy, it is the capabilities totransfer core competencies to other market (Bartlett & Ghoshal, 1998; Hill etal, 2008).

2.4 PRODUCT-MARKET DEVELOPMENT STRATEGY

Ansoff stated his Product-Market model for over 50 years ago (Boag &Dastmalchian, 1988). The model has two dimensions: Markets and Productsand presents four growth strategies that are formed

over these two dimensions (Figure 2 ).Figure 2 Product-market grid matrix (Boag & Dastmalchian, 1988)

Current products New ProductsCurrent markets Market penetration Product developmentNew markets Market development Diversification

2.5 GOODS VS. SERVICES

To identify success factors in international expansion of internet SERVICEcompanies it is important to know the differences between goods and services.The existing research on internationalization of service companies dividesinto two groups. First the ones that suggest that there are differences betweenthe internationalization of services and the internationalization of goods andsecondly, the ones that don’t find any differences (Blomstermo & Sharma,2003).


The first group focuses on those services that have the following fivecharacteristics:

1. Intangibility – services are invisible2. Inseparability – simultaneous production/consumption, services

cannot be exported3. Perishability – Services cannot be stored and demonstrated4. Variability – Services are less standardized5. Ownership – Ownership cannot be transferredThe other group states that there is no need for a special

internationalization theory for service companies. Existing theories canaccommodation them by making simple modifications (Boddewyn 1986). Onestudy argues that the problems posed by the simultaneous production andConsumption characteristic can be overcome by modulisation. The definitionof modulisation is the standardization of services in separate modules thatcan be combined by the customer (Sundbo 1994). Erramilli (1991) suggestthat a high amount of control in service companies is possible with a limiteddegree of resource commitment. The risks and costs for establishing a wholly-owned subsidiary are limited to establishing an office that can relatively easilybe closed and Success Factors in International Expansion . transferred to adifferent place. In the early and late phases of the internationalization process,service companies demand high-control foreign market entry modes.

2.6 MARKET STRATEGIES IN INTERNATIONAL EXPANSION

International expansions can be made with different strategies. Thetheories around this could be relevant to identify possible success factors.Blomstermo & Sharma (2003) indentify two characteristic foreign market entrystrategies: client-following and market-seeking. Client- following is defensiveand means that the service companies follow its existing domestic clientsabroad. Market-seeking is an offensive approach and refers to a service companyentering foreign markets primarily to serve customers abroad. The resultsindicate that market-seeking companies are likely to employ such entry modesas exporting, alliances and joint ventures. Client-following companies showless preference for low integration and control entry modes. They selectedwholly-owned and partly-owned subsidiaries. Hollensen (2007) states thatelectronic marketing/Internet as an internationalizing strategy means thatthe service company extends its accessibility through the use of advancedelectronic technology. Amazon.com for example launched its concept withtaking into account that the interest in its services would automatically developoutside national borders. When using electronic marketing the company isnot bound to any particular location. The service can be administrated fromanywhere on the globe and still reach customers throughout a hugeinternational market via Internet connections.

Dr. Munawwer Husain / 512.7 MARKET STRATEGIES IN INTERNATIONAL EXPANSION

International expansions can be made with different strategies. Thetheories around this could be relevant to identify possible success factors.Blomstermo & Sharma (2003) indentify two characteristic foreign market entrystrategies: client- following and market-seeking. Client- following is defensiveand means that the service companies follow its existing domestic clients abroad.Market-seeking is an offensive approach and refers to a service companyentering foreign markets primarily to serve customers abroad. The resultsindicate that market-seeking companies are likely to employ such entry modesas exporting, alliances and joint ventures. Client-following companies showless preference for low integration and control entry modes. They selectedwholly-owned and partly-owned subsidiaries. Hollensen (2007) states thatelectronic marketing/Internet as an internationalizing strategy means thatthe service company extends its accessibility through the use of advancedelectronic technology. Amazon.com for example launched its concept withtaking into account that the interest in its services would automatically developoutside national borders. When using electronic marketing the company isnot bound to any particular location. The service can be administrated fromanywhere on the globe and still reach customers throughout a hugeinternational market via Internet connections.

3. RESEARCH METHODOLOGY

When conducting a social science research Yin (2003) suggests fivepotential research strategies: experiment, survey, archival analysis, history orcase study. They all have advantages and disadvantages. Yin provides threecriteria for choosing the most appropriate strategy:

i) The nature of the research question,ii) whether the relevant behavioral events can be manipulated,iii) If the research focuses on a historical or current event.Since this thesis focuses on exploratory questions, not require any

control over actual behavioral events Yin (2003) would suggest that case studyis the best strategy. Due to the lack of existing theories and studies withinthis specific area we think that case studies are arguably the most useful forthe purpose of this thesis. Six case studies are produced based on interviewswithin selected relevant companies. Another fundamental decision is whetherto conduct either a single, multiple cases, as well as numerous of levels ofanalysis (Yin, 2003). There is a distinct trade-off: a single case study offersmore in-depth analysis of an isolated event, however multiple case study mayprovide a greater background for arguing the validity of the empirical findings.Due to the uniqueness of this thesis and to find stronger arguments for thesuccess factors in international expansion of Internet-service companiesmultiple case studies are more appropriate. This will affect the depth of the


analysis, but will as an advantage generate more general conclusion and as aconsequence be more proper for answering the stated thesis question. In orderto determine the most appropriate research method, it is important to takeinto consideration what subject to be studied. The more defined and developedtheories, the greater the possibility for applying a quantitative study. When astudy is of an explorative nature, Yin (2003) suggests that a qualitative approachis optimal. A qualitative approach allows for a more in-depth analysis of aspecific event as opposed to a more superficial overview of a number of events(Holme and Solvang, 1997).

4. CONCLUSIONA strong centralistic organization where the overall management was

conducted through the head office is commonly observed in all case studysubjects. The centralistic organization structure, with the overall managementcentralized and local organization limited to sales, seems to be an obvioussuccess factor as it can be derived from interviews and organizationobservations made of all study subjects Regarding marketing and sales fourkey success factors with a high level of generality were identified throughoutthe study; the extension of market pre-studies, sales focus duringinternationalization, service productification as well as client-followingexpansion. The results are that initial market study is a common successfactor among the companies to some degree . There is a relatively explicitcorrelation between complexity of the business model and the extent of marketpre-study process .Throughout this qualitative study we have been able toidentify a number of mutual success factors from the case study subjects withineach of the six different areas studied. The most evidential results foundconcerning general success factors is within the importance of an overallcentralistic organization structure as well as central product development.Strongest mutual key success factors according to case study subjects,Centralistic organization structure ,Central product development ,High levelof market pre-study ,Stand-alone country budgets and High level of salesfocus.

REFERENCES

Harvard Business School Press, Boston, Massachusetts.Capdevielle, L, Li, M & Nogal, P 2007, A creation of competitive advantageby using differentiation of company’s strategy actions. The case studyof IKEA Sweden with experiences on Chinese and French markets,University of Halmstad, School of Business and Engineering.Carpano, C, Chrisman, JJ & Roth, K 1994, ‘International strategyand environment: an assessment of the performance relationship’,Journal of International Business Studies, Vol. 25,No. 3, pp. 639-656.

Dr. Munawwer Husain / 53Hambrick, DC & Fredrickson, JW 2001, ‘Are you sure you have astrategy?’. Academy of Management Executive, Vol. 15, No. 4, pp. 51-62.Harzing, AW 2000, ‘An empirical analysis and extension of the Bartlettand Ghoshal typology of multinational companies’, Journal ofInternational Business Studies, Vol. 31, Vo. 1, pp. 101-120.Aaby, N.E., Slater, S.F. 1989, ‘Management influences onexportperformance: review of the empirical literature, 1978-1988',International Marketing Review, vol. 6, no.4, pp.7-26.Aharoni, Y. 1966, The Foreign Investment Decision Process,HarvardUniversity Press, Cambridge, MAAndersson, S. 2000, ‘Theinternationalization of the firm from an entrepreneurial perspective’,International Studies of Management & Organization, vol. 30, no.1, pp.63-92Andersson, T. Svensson, R. 1994, Entry modes for Direct InvestmentDetermined by the Composition of Firm-Specific Skills, The ScandinavianJournal of Economics, Vol. 96, No. 4. Pp.551-560.Barry M Staw, ”The escalation of commitment to a course of action”.Academy of Management review pre-1986: Oct 1981;6, 000004; ABI/INFORM Global pg. 577Bartlett, C. and Ghosal, S. (1987), ”Managing Across Borders: NewOrganizational responses”, Sloan management Review, Fall 1987: 29, 1,pp 43-53.Begley, T. and Boyd, D. (2003), ”Why Don’t They Like Us Overseas:Organizing U.S.Business Practices to manage Culture Clash”, Organizational Dynamics,32 (4): 357-371.Blomstermo, A., & Sharma, D. 2003, Three decades of research on theinternationalization process of firms. In A. Blomstermo, A., & D.Sharma (Eds.). Learning in the Internationalisation Process Johanson, J.,and Vahlne, J.-E. 1977, The Internationalization Process of the Firm -A Model of Knowledge Development and Increasing Foreign MarketCommitments. Journal of International Business Studies, 8, 23-32.Johanson, J., and Wiedersheim-Paul, F. 1975, The Internationalizationof the Firm - Four Cases.Journal of Management Studies, 12, 305-322. Success Factors inInternational Expansion Adalberth, Elings-Pers 58

54/ Gender Equality in Environment.... Security in Nigeria


GENDER EQUALITY IN ENVIRONMENTAL ISSUES FORACHIEVING SUSTAINABLE PEACE AND SECURITY IN

NIGERIAObaka, Inabo Abel

Lecturer, National Open University of Nigeria, Economics Unit,14-16, AhmaduBello Way, Victoria Island, PMB 80067, Lagos. Nigeria.

ABSTRACT

The persistent gender inequality and exclusion of women from decision-making at different levels of government occasioned by the feminization oftheir contributions to environmental issues is the bane of achieving Nigeria’ssustainable peace and security. For many decades, gender inequality hasdamaged the country to the detriment of women while their male counterpartsare not limited by their gender. Transforming the tradition of gender inequalityin environmental issues has the impetus to accelerate Nigeria’s quest for peaceand security. As such, this paper examines the gender equality in environmentalissues for achieving sustainable peace and security in Nigeria. Secondary datawere obtained from the World Bank, UNEP, FAO, UN, Womenwatch,Population Reference and National Bureau of Statistics. Documentary methodof reserach was adopted. The results confirms the long-held view of genderinequality in environmental issues and hence, the lack of achievement of peaceand security in Nigeria. It is, therefore, recommended that efforts should bemade by stakeholders to bring the needed change and promote gendermainstreaming which makes the issues of men and women equal concern.This change should start from the family level and traditional institutions,considering the fact that transformation demands effective change. In addition,as agents of change and equal partners with their male counterparts, womenshould be linked with actualization of sustainable peace and security throughgender mainstreaming in environmental issues. Finally, proper enforcementof equal status acts on environmental issues at all levels is highly recommended.

KEYWORDS: GENDER, INEQUALITY, EQUALITY, WOMEN, ENVIRONMENTAL ISSUES, PEACE

AND SECURITY TRADITION, FEMINIZATION.

Refrain: A Woman is More Woman With a Man; and a Man is MoreMan with a Woman...

Obaka, Inabo Abel / 55

INTRODUCTION

Gender and environmental issues have long been a reference point forresearch and debate within the field of peace and conflict studies, the relativeimportance of which continues to increase as the relationship between humanand ecological well being becomes more clear, and environmental consciousnessrises in social scholarship more generally.

In recent time, debates about the relationship between the environmentand peace have focused on how environmental problems like resource scarcity,climate change, persistent organic pollutants (POPs), ozone depletion, landdegradation, biodiversity, international waters are likely to create or exacerbateconflict. Gender mainstreaming has been the primary method for integratinga gender approach into environment and development efforts. In practice,gender mainstreaming means deliberately giving visibility and support toboth women’s and men’s contributions individually, rather than assumingthat both groups will benefit equally from gender-neutral developmentinterventions. Gender equality is a goal that has been accepted by governmentsand international organizations. It is enshrined in international agreementsand commitments. The threat of environmental issues, have been recognizedas global priority issues. Almost all of these environmental issues aresustainable development challenges, with broad impacts not only on theenvironment but also on economic and social development, and hence, onpeace and security.

The rationale for the gender equality and environmental sustainabilitydiscussion topic is based on strong policy basis, as well as findings thatenvironmental degradation and gender inequality are mutually reinforcing,threatening progress towards development and hence, peace and security.Achieving greater equality between women and men will require changes atmany levels, including changes in attitudes and relationships, changes ininstitutions and legal frameworks, changes in economic institutions, andchanges in political decision-making structures.

What is the purpose of inclusive, permanent, and continuous educationif not to promote pedagogical processes that help people feel a part of thesurroundings in which they live – processes that encourage people tounderstand that taking care of the environment also means taking care ofthemselves as well as others in ways that guarantee the quality of life forthemselves and for future generations?

Environment and gender relations form an inextricable nexus thatultimately involves relationships between human beings of all ages, races,colours, ethnic groups, beliefs, nations, and countries, all of which are tied toan understanding of the planet Earth as Ile, the Mother Earth of the Yorubapeoples; Ani, the Earth Deity or so-called “Mother Earth” of the Igbo people is


also called Ala (land), which is actually the physical manifestation of Ani.This paper looks at the strategy for promoting gender equality inenvironmental issues for achieving sustainable peace and security in Nigeria.

A REVIEW OF LITERATURE AND CONCEPTS CLARIFICATIONBy comparison with men in poor countries, women face historical

disadvantages, which include limited access to decision-making and economicassets that compound the challenges of environmental issues (OECD, 2010).The challenge of these environmental issues is unlikely to be gender-neutral,as it increases the risk to the most vulnerable and less empowered social groups.In the formulation of global and national approaches, as well as in the strategicresponses to specific sectors, gender awareness, substantive analysis andinclusive engagement will be necessary.

GENDER EQUALITY

Gender equality is first and foremost a human right. It refers to theequal valuing of the roles of women and men. It does not imply that womenand men are the same, but that their interest, needs and priorities should bevalued equally and accorded equal treatment. It works to overcome the barriersof stereotypes and prejudices so that both sexes are able to equally contributeto and benefit from economic, social, cultural and political developments withinsociety. However it must be recognized that equal treatment will not produceequitable results, because women and men have different life experiences.

ENVIRONMENT

The natural environment encompasses all living and non-living thingsoccurring naturally on Earth or some region thereof. It is an environmentthat encompasses the interaction of all living species (Johnson, 1997).

PEACE

Galtung defined peace as the absence of violence, and not as the absenceof war (Galtung 1969: 167). Of course, the usefulness and validity of thedefinition depends solely upon the definition of violence. What, then, isviolence? According to Galtung, violence is everything which prevents thefull realization of innate somatic and mental human potentials. To put it in alittle different way, violence is anything which produces a gap between thephysical and mental potentials of human beings and their actual conditions(Galtung 1969: 168). From this perspective of violence, poverty,underdevelopment, oppression and other social ills afflicting billions of peoplelargely in developing countries can be seen as manifestations of violence, and,from our perspective, their elimination should be viewed as important peacevalues or necessary conditions of peace.


SECURITY

Security is a public good that is necessary for ensuring individual andcollective safety, stability and development. It is the primary function andresponsibility of the state to deliver this public good, ‘security’, to its peopleand communities in an appropriate and accountable manner as to preventconflict and foster development. Wherever this public good is deficient, theopposite appears, that is the rule by force, which in turn tends to contributeto the eruption of violent conflict.

METHODOLOGY

Secondary data were obtained from the World Bank, UNEP, FAO, UN,Womenwatch, Population Reference and National Bureau of Statistics.Documentary method of reserach was adopted.

WHY GENDER EQUALITY MATTERS TO ENVIRONMENT

> Women perform two thirds of the world’s working hours, producehalf of the world’s food, earn only 10% of the world’s income and own lessthan 1% of the world’s property.

> Women are more reliant on natural resources for their livelihoods thanmen as they do not have equitable access to alternatives such as wage labourand the security and benefits these provide.

> Degraded environments mean that women have to walk further tocollect water and fuel wood. As a result their access to education and otherproductive activities may be curtailed and they will be exposed to the risk ofgender based violence in isolated areas

> Women have less control of and access to land and natural resourcesthan men – in many cases women are excluded from formal ownership ofland.

> Due to their socially constructed roles and existing inequalities, womenare more vulnerable to the impacts of environmental and natural disasterssuch as drought, floods and cyclones than men.

> Women are disproportionately vulnerable to sexual exploitation andabuse and other forms of violence in times of vulnerability and need. Thisrisk increases at times of disaster.

PRESENTATION OF EXISTING FINDINGS

Brief presentation of existing findings that provides an evidence baseand conceptual frame for the discussion is necessary.

WOMEN, ENVIRONMENT AND DEVELOPMENT

Poor men and women are increasingly recognised as caretakers of the


environment. Women are particularly reliant on the environment to meettheir basic needs and play an essential role as managers (i.e. use and control)of natural resources. Women are responsible for reproduction and productionin the household and for water and energy needs, placing them in directcontact with the natural environment on a daily basis. Women, therefore,rely more heavily on natural resources than men as they have fewer alternativesources of livelihood. Although women are highly reliant on their localenvironment for their livelihoods, they frequently lack ownership and decision-making power over the natural resources on which they depend. These factorslimit women’s potential to climb out of poverty, makes them very vulnerableto environmental change or degradation, and increases and perpetuatesinequality.

“Throughout Africa, women are the primary caretakers, holdingsignificant responsibility for tilling the land and feeding their families. As aresult, they are often the first to become aware of environmental damage asresources become scarce and incapable of sustaining their families.” (Wangari,2004).

Poor men and women are highly dependant on Common PropertyResources (CPRs) such as forests, pastureland, fishing grounds and wetlandsfor their livelihoods. These commonly owned resources provide poor menand women with wild foods (particularly important as a coping strategyduring food shortages) medicinal plants and construction materials. CPRsare managed by traditional, socially accepted rules, which may or may notensure equity of access and sustainable use (matriarchal versus patriarchalsystems). When these rules break down due to pressures from populationgrowth and development, resources can become scarce and degraded and maylead to conflict and insecurity. Women are especially dependent on CPRs asthey often don’t have access to formally recognised farming lands. As CPRsbecome degraded or are converted to other uses (e.g. wetlands reclaimed forintensive farming, forests cleared for roads) women lose a valuable source offood and income.

VULNERABILITY AND ENVIRONMENTAL SECURITY

Poor households are vulnerable to environmental shocks, includingdrought, floods, cyclones and outbreaks of disease. Women headed householdstend to be the most vulnerable in a community, and are at a greaterdisadvantage when disaster strikes. Women tend to have less diversifiedopportunities for income generation than men and are wholly reliant on thenatural resource base pre and post disaster. In situations of mass populationmovement, such as displaced and refugee

settings, women are often wrongly blamed for destruction of their newsurroundings as they continue to collect wood and other resources for their


family’s survival. Women are also more likely to have fewer assets than men,especially physical assets that can be sold in times of stress. Limited access tocredit and market-based activities disempower women.

The 2011 Human Development Report (UNDP, 2011) finds that “greaterequality between men and women and within populations may havetransformative potential in advancing environmental sustainability.” Analysissuggest that environmental challenges and gender inequalities are mutuallyreinforcing; seriously jeopardizing health, education, livelihoods and otheraspects of human well-being and thus causing wars and insecurity. The HDRprojects a disturbing slowing down and even reversal of human developmentin developing countries by 2050, if deepening environmental risks and socialinequalities are not addressed together. The 2011 HDR shows how promotinggender equality can advance environmental outcomes by improving access toclean water and sanitation, combating land degradation and reducing deathsdue to disasters, indoor and outdoor air pollution. The 2011 HDR finds thatgreater involvement of women in decision-making is of instrumentalimportance in addressing environmental degradation, including evidence thatwomen show more concern for the environment and support pro-environmental policies. It is important to recognize women’s reproductiverights and universal access to quality reproductive health services, because inthe long-run, environmental sustainability cannot be achieved without thestabilization of population growth (UNFPA 2007). Furthermore, in ruralcommunities women are agents of change and custodians of knowledge aboutecosystem management, natural resources, and endangered species. Womenare crucial in the transformation of current food production systems to tacklethe major drivers of biodiversity loss.

A proposed set of questions that could frame our discussion on the topicare:

i. How do gender relations—different roles and status of women andmen within the community, political sphere, workplace, and household (forexample, roles in decision-making and different access to and control overresources and services)—affect the success of environmental sustainabilitygoals and hence sustainable peace and security?

ii. In relation to environmental sustainability goals, how to addresspotential gender constrains, such as: cultural norms, reproductive rights,reproductive and productive roles, freedom of movement, literacy, education,training, access to services, transport, control over resources, legal rights,traditional or religious rights, decision making ability and involvement, andmethods of promoting participation and empowerment?

iii. How can policies related to environmental sustainability promotegender equality, peace and security?

iv. How to build institutional capacity to address gender equality and


environmental sustainability and how to build cross-sectoral links for peaceand security with gender implications?

ANALYSIS OF FINDINGS

In answering question one in relation to how do gender relations affectthe success of environmental sustainability goals and hence sustainable peaceand security, I argue that gender relations between women and men, andgirls and boys, play a key role in the access to environmental resources, controlof the resources, and the goods and services they provide. The relevance ofgender to environmental issues has been discussed since the early 1970s,when the growing debate on environmental issues intersected with theemergence of studies on women’s roles in development. Accounting fordimension of gender is an important consideration for projects that addressglobal environmental issues. To successfully address gender issues, projectsmust recognize the role of women as primary land and resource managersand weigh the different ways women and men consider conservation incentives.Literature and studies on this topic recognize that failure to understand andaddress gender dimensions within environmental projects risks wasteddevelopment resources and negative effects on household welfare, women’sequality, and environmental sustainability.

In addressing the second question in relation to potential genderconstraints to environmental sustainability goals, I refer to various studies,including an evaluation of gender conducted by the World Bank, which foundthat project results are superior when gender considerations are integratedinto the design and implementation of projects. In addition, the Earth Summitin Rio de Janeiro (1992) and the Fourth World Conference on Women in Beijing(1995) made explicit references to the need to design environmental programswith a gender focus to increase women’s access to and control over resources,as well as improve the effectiveness of such projects. Today, an even deeperunderstanding exists of the relationships among household welfare, women’sequality, and environmental sustainability. MDGs emphasize the clear linksamong gender equality, poverty alleviation, and sustainable development.Not only is the third goal, “Promote gender equality and empower women,”specifically targeted toward gender, it has been recognized that gender issueswill play a key role in the effective achievement of the other seven goals,including the seventh goal, “Ensure environmental sustainability,” for whichthe women could play a key role. The Rio Conventions — namely the UNConvention on Biological Diversity (CBD), the UN Framework Conventionon Climate Change (UNFCCC), and the UN Convention on CombatingDesertification (UNCCD), also recognize the important linkage betweengender-related issues and achievement of the Conventions’ goals andobjectives.


In answering the third question, how can policies related toenvironmental sustainability promote gender equality, peace and security, Ibelieve that, within a project context, it involves identifying gaps in equalitythrough the use of sex-disaggregated data, developing strategies and policiesto close those gaps, devoting resources and expertise to implementing suchstrategies, monitoring the results, and holding individuals and institutionsaccountable for outcomes that promote gender equality. Gender equality doesnot mean that women and men will become the same, but rather impliesequal treatment of women and men in laws and policies, and equal access toresources and services within families, communities, and society at large. Toachieve this goal, a two-pronged approach of gender mainstreaming is oftenrequired:

i. Systematically analyzing and addressing in all initiatives the specificneeds of both women and men; and

ii. Targeted interventions to enable women and men to participate in —and benefit equally from — development efforts.

Gender equality is not solely a women’s issue; in fact, it seeks to tailoractivities to the beneficiaries of the project from both sexes. Gender equality isadvantageous to both men and women and cannot be achieved without thefull engagement of both.

For the last question, that is question four, on how to build institutionalcapacity to address gender equality and environmental sustainability andhow to build cross-sectoral links for peace and security with genderimplications, the researcher believes that a public participation policy shouldbe applied that ensures both women’s and men’s involvement in environmentalissues.

POSITIVE ACTIONS TO MAXIMISE LINKS BETWEEN GENDER EQUAL-ITY, ENVIRONMENT, PEACE AND SECURITY

There are many opportunities to address the linkages between genderequality, environment, peace and security. All the issues could be addressedthrough mainstreaming training and strategy. In order to be effective, strategiesto decrease poverty and preserve the environment need to take into accountthe disparities between men and women’s access to resources and livelihoodopportunities. Opportunities to mainstream gender equality, environment,peace and security and to enhance synergies between them include thefollowing:

> Raise awareness of the impact of environmental degradation andenvironmental risk on women’s livelihoods, health and safety.

> Ensure women and men are equally involved in decision-making forenvironmental policy and planning.

> Identify opportunities to mainstream environment and gender equality


in Poverty Reduction Papers (PRSPs) and Country Strategy Papers (CSPs),sector strategies and area-based programmes.

> Identify win-win activities for environment and gender equality e.g.natural resources managed equally by men and women in communities;livelihood diversification to meet men’s and women’s needs; support strategiesto empower women to engage equally with men in decision-making relatedto the environment and natural resources.

> Promote and support women’s rights to access, use and ownership ofland and other natural resources.

> Improve women’s access to credit so that they can diversify their incomegenerating activities and reduce their dependency on natural resources.

> Support research into understanding the coping strategies of poorwomen and men and identifying ways to protect the natural resources onwhich they depend in times of stress.

> Ensure gender sensitive approaches are used in responding to naturaldisasters and in post-conflict and recovery situations.

> Ensure that agricultural extension services take account of gender rolesand responsibilities in target communities and tailor appropriate trainingand inputs at both women and men.

> Identify opportunities to provide specific support to address inequalitiesin the way that natural resources are used, owned and managed by men andwomen.

CONCLUSSION

In this discussion, the effects of gender inequality on the success ofenvironmental sustainability goals, ways to address potential gender constrainsin this context, the effect of envisioned environmental sustainability resultson gender relations, as well as promoting gender equality in the design ofenvironmental sustainability goals, related policy and institutional capacityfor implementation were considered.

As land and resource use laws change, women need to be informed oftheir new rights. Government agencies need to remember that women maybe unable to attend public meetings on these issues for social reasons or beunable to travel due to family responsibilities. This lack of exposure toinformation and the high levels of illiteracy among women mean that theytend to be less well informed about their rights than men. There is also atendency among agencies to assume that men will pass on the information totheir wives, which may not always be the case. Initiatives to educate womenand men about their rights must be tailored around the daily roles andresponsibilities of men and women, and where necessary, tailored to facilitatewomen’s participation. It is, therefore, imperative that men and women alikeare engaged and involved from the beginning in defining, designing and


managing the change needed to ensure long-term sustainable goals.It is, also, recommended that efforts should be made by stakeholders to

bring the needed change and promote gender mainstreaming which makesthe issues of men and women equal concern. This change should start fromthe family level and traditional institutions, considering the fact thattransformation demands effective change. In addition, as agents of changeand equal partners with their male counterparts, women should be linkedwith actualization of sustainable peace and security through gendermainstreaming in environmental issues. Finally, proper enforcement of equalstatus acts on environmental issues at all levels is highly recommended

REFERENCES

Galtung, Johan (1969), “Violence, Peace, and Peace Research,” Journalof Peace Research, 6(3), 167-191Johnson, D. L.; Ambrose, S. H.; Bassett, T. J.; Bowen, M. L.; Crummey,D. E.; Isaacson, J. S.; Johnson, D. N.; Lamb, P.; Saul, M.; Winter-Nelson, A. E. (1997). “Meanings of Environmental Terms”. Journal ofEnvironmental Quality 26 (3): 581–589.OECD 2010 “Gender Inequality and the MDGs: What are the MissingDimensions?” Retrieved from the World Wide Web: http://www.oecd.org/social/povertyreductionandsocialdevelopment/45987065.pdfOECD 2010 “Investing in women and girls – the breakthroughstrategy for achieving all the MDGs.” Retrieved from the World WideWeb: http://www.oecd.org/dataoecd/45/55/45704694.pdfThe 2011Human Development Report (UNDP, 2011)United Nations 2012 The Millennium Development Goals Report.Retrieved from the World Wide Web: http://www.undp.org/content/dam/undp/library/MDG/english/The_MDG_Report_2012.pdf [UNDP2011 Human Development Report: Sustainability and Equity: A BetterFuture for All. Retrieved from the World Wide Web: http://hdr.undp.org/en/reports/global/hdr2011/UNFPA 2007 Potentialcontributions to the MDG agenda from the perspective of ICPD “MDG7: Ensure Environmental Sustainability.” Retrieved from the WorldWide Web: http://www.unfpa.org.br/lacodm/arquivos/mdg7.pdfWangari Maathai- Nobel Lecture, Oslo, December 10, 2004

64/ The Correlation Between Commerce and Management


THE CORRELATION BETWEEN COMMERCE AND MANAGEMENT

Rochelle R. Dean

School of Business, Liberty University

ABSTRACT

This paper proposes to explore the correlation between Commerce andManagement as I give a better insight on the role of Management and theeffects it has globally. Commerce should be properly managed as a commercialactivity that enhances the standard of living within a nation that will increaseits standing in the world. When commerce is allowed to run unregulated as ithas, large businesses and major conglomerates can become immune to failuremaking them too powerful which levies negative externalities on citizens aswell as globally to the benefit of business owners. Broadly speaking, nationsshould be concerned with the way commerce is managed to enhance theprosperity of its citizens and those who directly benefit by producing jobs,beneficial goods and services. The organization and coordination of theactivities of a business in order to achieve defined objectives is defined as theprocess of being managed or managing.

Management is often included as a factor of production along withmachines, materials and money. (Drucker, Peter) According to the managementguru the basic task of management is marketing and innovation. This paperexamines the key elements to the outcomes of the correlation of commerceand management and its effect on the global market.

KEYWORDS: COMMERCE, MANAGEMENT, EFFECTS, CORRELATION

INTRODUCTION

The purpose of commerce and management is to promote anunderstanding of the managers within organizations and the way thatmanagement is applied to commerce. Commerce and management properlyconnected can create a mechanism of cohesiveness that produces positive resultsthat far outweigh the negative impact of its present mismanagement. It is tothe benefit of nations to establish governmental agencies with their ownpolicies responsible for the promoting and managing of commerce to enhanceeconomic growth and the standard of living for their citizens. It is virtuallyimpossible not to see the correlation of commerce and management as without

Rochelle R. Dean / 65proper management of commerce the world is left in a state of global meltdownas we are seeing today.

Commerce is the conduct of trade amongst economic agents. Generally,commerce refers to the exchange of goods, services or something of value, betweenbusinesses or entities. Management is the organization and coordination of theactivities of a business in order to achieve defined objectives.

According to Drucker the term management refers to both a title withinan organization and a set of functional skills. Ideally both descriptors shouldbe effectively combined in performances of managers however many adopt amind set of entitlement in the rank and demonstrate poor functional skills. Itis clear that with so many governmental agencies committed to the fosteringand promotion of commerce and economic growth, there exists weak linksbetween the management of these agencies. Therefore we must take a closerlook at the correlation of commerce and management.

METHOD

IMPORTANCE OF COMMERCE AND MANAGEMENT

Commerce and management are essential to profitability andsustainability. It is to the benefit of nations to establish governmental agencieswith their own policies responsible for the promoting and managing ofcommerce to enhance economic growth and the standard of living for theircitizens. It is fundamentally important to see the correlation of commerce andmanagement as without proper management of commerce the world is left ina state of global meltdown.

Commerce management is important because it is imperative tomaintaining good relationships with other nations. It allows the growth ofglobalization and produces positive economics.

Commerce and management are important to the economic activity ofall human beings within their nations.

PROBLEMS WITH COMMERCE AND MANAGEMENT

It is clear that with so many governmental agencies committed to thefostering and promotion of commerce and economic growth, a detachmentexists within the management of these agencies.

Research conducted by English statesman Sir Thomas More in the 16th

century found that,“The practice of modern management originated from the studyof low efficiency and failures of certain enterprises and that management generallyconsists of the interlocking functions of creating corporate policy and then organizing,planning, controlling and directing the resources of an organization to achieve the purposesof that policy.”

According to More’s theory, management has been distinctly created forcorporate entities as in most instances the policies of many organizations are


levied within the range of administration.Administration is not management. Therefore we I can conclude that

the reason why commerce and management is failing immensely is due to thefact that it is generally left within the parameters of the government ororganizations who have no proper management structure and leavingno controls for governments to effectively manage economic stability withinnations. There is no general framework [standardization] for management asthe structure of management varies depending on its corporate ladder whichleaves corporate governance to be better structured.

Government agencies only see the need to administer instead of beinginnovators and bringing new ideas to the table to bring about economicgrowth, sustainability and prosperity and effectively managing these ideas.Instead governments have concluded to administer while the corporate worlddictates to them.

Governments administer and in this capacity there is no competitionwhereas management consists of competitive analytical thinking. This is thereason that governments have difficulty as it relates to commerce andmanagement and corporate governance is the leader in growth, productivityand wealth. This allows the private sector to demand authority and influencedecision making within nations or becoming pragmatic in the same right.As a result of the administration as opposed to proper management ofcommerce and management the global economy is in a state of duress and wefind that governments have concluded to either wait on market forces whileothers have become ruthless and very aggressive in their conquests foreconomic power and sustainability while corporate governance continues tocontrol and lend itself to dominance. As corporate organizations effectivelyadminister, manage, produce and grow.

SOLUTIONS TO COMMERCE AND MANAGEMENT

Solutions to commerce and management broadly encompass properstructuring and allowing innovation to bring forth new ideas, initiativesand theories that will present themselves to new projects within trade, aids totrade and the successful management of this process.

Effective management must be prevalent and outlined to allow commerceto produce commercial activity within any given framework and economy.It is the responsibility of governments to create policies that will lend to amore controlled way in which organizations manage. There must be someset rules that all organizations adhere to with the option of adding to thesepolicies for their own benefit or special purposes.

This brings about cohesiveness and the ability to manage growth of majororganizations that stifle commerce management as well as it effects the growth

Rochelle R. Dean / 67of smaller enterprises and gives way to new opportunities and industries.Solutions to commerce and management include consistency, proper staff andthe correlation between administration and effective directives carried out bymanagers who are able to distinguish between both roles.

RESULTS

Governments must begin to identify commerce and management as abeacon to the revitalization of the global economy. Commerce and managementmust be reintroduced so that we can produce sustainability and proper growthglobally.

Commerce and Management effectively working together fuelsimprovement in any area that it may venture creating new opportunities foreconomic stability.

It is important that commerce and management work together due tonew liberalization and globalization policies. There has been a shift fromplanned economies to market oriented economies making the relevance of thetwo more imperative.

Commerce and management effectively implemented within the publicand private sectors has the capability to demand more controls thus givinggovernments more opportunities to introduce new perspectives in the area ofcommerce and the effects of its management within the industry.

There should be standardized reformations that govern commerce andmanagement that give both public and private authorities equal opportunityto business before fostering competitiveness within both sectors.

This allows the mismanagement and or failure to manage commerce andmanagement to lead to missed opportunities within domestic trade,international trade and trade aids respectively.

Governments must see the importance of commerce and managementas it is to the advantage of the public sector to model the management skillsand in some cases project management skills of the private sector so that theycan begin to see greater outcomes to economic sustainability.

Governments must seek to bring cohesiveness to commerce andmanagement bringing back controls that regulate activities within thisindustry. This is the basis of the daily economic activity of nations.

With proper planning and regulation of international managerialpolicies that cover all areas related to management, we will begin to see amore controlled manner in which managers execute and complete tasks.Governments will see the distinction between management and administrationand the importance of the correlation of commerce and management withinthe global market.

It would be better suited if governments were to capitalize oncollaborating both planning and market oriented economic models creating


market-oriented planning.Williams (1999, p. 21) refers to “the marketing of places” and writes:“Currently, however, there has been a rebirth of interest in approaches to strategic

planning with ‘collaborative’ positions becoming central.... ...[O]ur major cities haveentered into a new competitive era, promoting a range of ‘capacity-building’ initiativesand perceiving local political fragmentation as impairing their ability to compete..... Thestarting point is no longer the visions of the local government or of the private sector.Instead both join forces against an external threat - that “their” region will lose inrelation to other regions.”

Market-oriented planning executed within commerce and managementwill yield tremendous opportunities to local and international economies.Governments would benefit not to ride free on the cooperative efforts of othermunicipalities but seek to make room for more initiatives making their regionsmore attractive and competitive.

DISCUSSION

Commerce and management plays a significant role in the world economyat large as the correlation of the two (2) effect every single human being. It isvery important that governments, policy makers, as well as corporate andbusiness professionals are able to identify the importance of this field ofexpertise. While the correlation of commerce and management has been leftunnoticed for many years. Many organizations have lent themselves to thepromotion of commerce as well as governments have departments of commercewithin in their organizational charts. The issue lies within the structure ofproper managerial roles, objectives and the way that these roles affect thepolicies and objective of these departments.

There is no systematic process as to how these departments will manageas the roles of management differs from one organization to the other. Thisleaves a disconnect as well as confusion within a field where concisemethodology and practicality must exist. It is the general consensus thatgovernments accept bureaucracy and this is unacceptable as it relates tocommerce and management.

Commerce and management must always be cutting edge. Nations mustdemand expertise in the area of Economics, Commerce, Management,Technology, Business as well as the promotion of research. The execution ofthis area of high demand must be done so according to an across the boardinternational standard of management with flexibility for nationalities to takeinto consideration their cultural differences, address them and build uponthose policies that apply to every nation. This will allow some standard ofmanagerial fairness but also leaves room for competiveness within trade. Thesemanagerial standards must exist within all organizations that promotecommerce and trade.

Rochelle R. Dean / 69CONCLUSION

Commerce and management effectively functioning as one has thecapacity to produce new prospects within commerce that can produce economicopportunities that will revive global markets. The marrying of commerce andmanagement is an essential point within the restructuring formation,implementation and integration of new policies that can only yield acomprehensive means to trade.

Commerce and management working together will produce newopportunities that will foster governmental competiveness within the marketwhich will allow for many new initiatives and further development for nations.

Standard rules across the board allows for the removal of corruption,unfair tactics within business and more control as both public and privatesectors have a fair opportunity to investment opportunities, trade andbusiness.

The collaboration of commerce and management effectively producesstructure, control, economic growth as well as it gives both the public andprivate sectors equal opportunity to market share. This creates more businesses,jobs, opportunities for trade as well as governmental programs committed toinnovation, research and development.

REFERENCES

Williams (1999), “Metropolitan Governance and Strategic Planning:A Review of Experience in Manchester, Manchester, Melbourne andToronto”. Progress in Planning, pp .21Milgrom, P. and J. Roberts (1992), Economics, Organization andManagement. Englewood Cliffs: Prentice-Hall.Staley, S. R. and L. Scarlett(1998), http://www-pam.usc.edu/volume1/v1i1a5s1.html.“Market-Oriented Planning: Principles and Tools for the 21stCentury.” Planning and Markets Drucker, Peter (2005), ManagingOneself, Harvard Business Review Vol. 1, pp. 103-109Goodman, M and Dingli, S. M (2013), Creativity and StrategicInnovation Management

70/ Quality of Teachers and Infrastructures ...... Education in BiharISSN NO. 2394-8965, GJMMS


QUALITY OF TEACHERS AND INFRASTRUCTURES A MAJORROAD BLOCK FOR UNIVERSALISATION OF ELEMENTARY

EDUCATION IN BIHAR

Chandra Mohan SinghAssistant Director

CDOL, JMI, New Delhi-25

ABSTRACTQuality of elementary education has always been a concern for various

committees and commissions of education. Consistent efforts have been madeby the government in the last decades to improve the quality of elementaryeducation. The NPE 1986, POA 1992, NCF 2005 and SSA had recommended anumber measures for improvement of the quality of education through reformsin content and processes of classroom teaching, improvement in schoolinfrastructures, provisions of additional teachers, standardising levels oflearning at elementary stage. As a result a large number of educationalinitiatives were taken like OB, MLL, PMOST, SPOT, DPEP, MDM etc. Thoughthere has been substantial improvement in access, enrolment and retention atelementary levels in Bihar the qualitative improvement in education in generaland learner’s achievement in particular have not been recorded as perexpectation because the absence of competent teachers and the requirededucational infrastructures of good quality. The quality of teachers refers tothe educational status, training, and competency level of teachers teaching atelementary levels. Whereas, quality of infrastructures refers to the educationalfacilities like classrooms, reading materials, water, sanitation, playground,charts, modules, teaching aids, library, laboratory, art and craft equipment’s.The major road block for Universalisation of Elementary Education in Biharis the absence of sufficient number of qualified, trained and committed teachersat elementary level. However, those who are available they are not competentdue to the poor quality of educational infrastructures as a result most of theschools are plugged by child unfriendly pedagogy, traditional way of teaching,poorly functioning of schools, detention of children, corporal punishment,teacher absenteeism, shortage of female teachers and discriminative attitudeof teachers which not only de-motivate the students but also force them todrop out. The present paper on one hand tries to highlight the quality status

Chandra Mohan Singh / 71of teachers teaching in elementary schools as well as on the other hand examinethe quality in terms of quantity of infrastructures which are a major concernfor universalisation of elementary education in Bihar.

KEY WORDS: QUALITY, INFRASTRUCTURES, ELEMENTARY EDUCATION AND

UNIVERSALISATION

MEANING OF QUALITY

The term quality generally refers to high degree of goodness, worth orexcellence in an object of system. It is a dimension of any object, structure orsystem that is relative in nature and cannot be measured in isolation. Themeaning of quality is perceived differently by different people in varying context.It may be defined as skill, excellence, performance, standard, competence forwork and capability of delivering goods and services. These skills are thegeneral parameters by which the quality of education is assessed. Qualityeducation enable persons, societies and even states in acquiring competenciesrequired for living meaningful and economic life in the present competitiveglobalised world. The above description refers that quality is a managementconcept adopted and integrated now in the educational processes. It is definedas the totality of features and characteristics of product or services that bearits ability to satisfy implicit needs. The dimension of quality in educationrefers to the features of education which have symbols pertain to areas ofinput, output, process or totality of the educational system.

QUALITY OF ELEMENTARY EDUCATION

It is very difficult to define education which devoid of quality, ideally thetwo should be synonymous. The term quality has been differently viewed bydifferent philosophers. Indian philosophers and educational thinkers havealways regarded quality education as that which helps children to becomeconscious and productive citizens capable of facing future challenges in life.Ghandhiji, expressed that true/quality education is the one that draws outand stimulates the spiritual, intellectual and physical faculties of children. Hefelt that craft or any other productive work could be the best medium ofeducation. Apart from making education relevant to society, it resulted in all-round development of a child’s personality. In the view of national father,relevance was an important attribute of the quality of education.

According to Rabindranath Tagore, true education must teach one tolive in harmony with all that exists around us and should be connected tothe immediate surroundings in which one live.

The International Commission on Education, popularly known as Delor’sCommission has recommended that each individual learner must be equippedto seize learning opportunities throughout life, both to broaden her or hisknowledge, skills, attitudes and to adopt to a changing complex and

72/ Quality of Teachers and Infrastructures ...... Education in Biharinterdependent world. To translate this aim into action, the broad concept ofquality education revolves around four fundamental pillars of learning, i.e.learning to know, learning to do, learning to be and learning to live together.Quality education focuses on each of these pillars so that education is regardedas a total experience throughout life, dealing with both understanding andapplication and focussing on both the individual and the individual’s place insociety.

The National Curriculum Framework for School Education (NCFSE),2000 emphasises that “Education ideally must prepare students to face thechallenges of life”. For this it needs to be intimately linked with the different“life skills, the abilities for adaptive and positive behaviour that enableindividuals to deal effectively with the demands and the challenges of everydaylife, by developing in them genuine skills related to a wide variety of areassuch as health and social needs”.

Therefore, quality education must ensure the child’s all rounddevelopment i.e. physical, mental, social, emotional, spiritual aspects ofpersonality and should enable them to use their potential level best.Consequently a major function of education should be to promote capabilityto continuously learn and adopt to change.

DIMENSIONS OF QUALITY ELEMENTARY EDUCATION

SSA scheme has not only emphasised the attainment of universal access,enrolment and retention but also focused on the equity and quality dimensionsof elementary education. The realisation of the goal of universal elementaryeducation is only possible when the required educational infrastructures bothin quality and quantity will be available in elementary schools. The mainindicators of the quality of elementary education in SSA Scheme were visualisedin terms of input, process and output at the school level in particular, and atplanning, implementation, monitoring, supervision and evaluation level ingeneral. It is felt that quality of elementary education can be more objectivelyand concretely seen in terms of the quality of elementary schools. The majordimensions of quality elementary education as per SSA as well as NCERTguidelines are;

1. Basic Infrastructure and other Educational Facilities2. Curriculum and Teaching-Learning Material3. Teacher and Teacher Preparation4. Teaching-Learning Process5. Learning Environment6. Instructional Time (Teaching-Learning Time)7. Evaluation, Monitoring and Supervision8. Community Participation and Support etc.It may be observed that infrastructures and teachers are the most

Chandra Mohan Singh / 73significant quality dimensions of elementary education without having thesufficient number of both there is no meaning of quality of elementaryeducation. It is the teachers who use efficiently the available infrastructuresand resources in the teaching learning process for the realisation of educationalgoal. Both teachers as well as the infrastructures are the complementary ofeach other.

UNIVERSALISATION OF ELEMENTARY EDUCATION IN BIHAR

Universalisation of Elementary Education (UEE) refers to universal access,enrolment, retention, achievement equity and quality in the school educationof class 1st to 8th for the children between the age group of 6 to 14 years. It isalso recognized as the periods of compulsory schooling vide 86th constitutionalamendment making education a fundamental right. Further, it has beenstrengthened by implementing the Right to Education Act 2009. The beginningof this period marks the formal introduction of the child to reading, writingand arithmetic, culminating the formal disciplines such as sciences and socialsciences towards the elementary education. This period of eight years schoolingis one of tremendous cognitive developments, shaping reason, intellect andsocial skills as well as the skills and attitude necessary for socialization andentering into the work place. It is the fundamental period of learning i.e.learning to know, learning to do, learning to be as well as learning to livetogether for socio economic development and national prosperity. Even after66 years of independence Bihar still struggling to achieve the universal accessand enrolment that are the basic parameters of UEE. It has been observedthat more than 70500 schools imparting elementary education across the 38districts of Bihar (DISE 2012-13). Further, it has been found that more than90% schools are in the rural areas in which the availability of basic educationalfacilities is very poor. More than 50% government schools have no toiletfacilities even those having the said facility are not in usable condition. Majorityof primary schools in Bihar are running with single teacher, in the singleclassroom mode even without sitting and blackboard facilities. The studentsteacher ratio is over 52 which not only affect the quality of elementaryeducation being imparted into government schools but also force students tobe out of school particularly girls. It has been found that even after thegovernment rigorous and continuous efforts more than 20 (26.28% of totalenrolment up to class 5th) lakhs children between the age group of 6 to 14years were out of schools and trapped into different kinds of child labour(DISE 2012-13). It is because of the poor quality of infrastructures and theinsufficient number of committed and competent teachers.

QUALITY OF TEACHER TEACHING IN ELEMENTARY SCHOOLS OFBIHAR

74/ Quality of Teachers and Infrastructures ...... Education in BiharTeacher plays a vital role in ensuring quality and effectiveness in learning

and establishing foundation of an educated society. A competent teacher canmake even a dull and boring topic interesting. It is a teacher who providesacademic insights to students and enhances the process of learning. Takinginto account the quality of teachers, it is very important to strengthen theteachers because their status in terms of numbers, education level and theirtraining are very miserable. It is the only state in India where majority ofteachers are not graduates even untrained. Most of them (52.24%) are eitherSecondary or Sr. Secondary passed from the state board of education whichhas no relevance without teacher training for teaching in modern context.Therefore, Bihar is still struggling for UEE because the 19% dropout at primarylevel put a question mark on the teachers’ qualities as well as teachingcompetencies. The quality of teachers as per DISE (2012-13) data in Bihar is asbelow;

Table No. 1 Quality of Elementary Teachers in Bihar as per (DISE-2012-13):

It has been observed from the above table that the quality of teacher is aserious concern for universalisation of Elementary Education in Bihar. It isone of the major reasons which make Bihar the most educationally backwardstate in the country. It is the only state where most of the teachers are untrainedeven not graduate. They are like a doctor without stethoscope or a ship onvoyage without radar. In this particular scenario the term quality seems likea joke or dream which cannot be achieved. It is only state where 1, 27,270differently abled (physically challenged) students are studying in theelementary schools but there is no provision for special teachers yet. Thus,how inclusive education as well as Right to Education Act (RTE 2009) can be

S.No. Teachers teaching in Pry+ U. Pry Schools of Bihar Total Number %of total

1. Total number of Elementary Teachers 2,14,753 ..............

2. Total number of Male Teachers 1,34,406 62.59

3. Total number of Female Teachers 80264 37.38

4. Teacher with below secondary school qualification 5366 02.50

5. Teacher with secondary school qualification 25237 11.75

6. Teacher with Sr. Secondary qualification 86944 40.49

7. Teacher with Graduate qualification 64135 29.86

8. Teacher with Post Graduate qualification 30273 14.10

9. Teacher with M.Phil./Ph.D. qualification 2214 01.03

10. Teachers with other higher qualifications 18 00.08

11. % of teachers received in service training last year ............ 13.4

Chandra Mohan Singh / 75ensured. Even those who are teaching they are not getting timely in servicetraining to update their teaching skill and knowledge. The teacher is notonly responsible for it but the state government with their local agencies andcommunity are more responsible. It reflects that the state government hasonly tried to achieve the ideal ration of teacher and students (1:40) in schoolas suggested in SSA Scheme without considering anything else like education,training of teachers while recruiting. Thus, Universalisation of ElementaryEducation could not be achieved without having the sufficient number ofqualitiful teachers at elementary level.

QUALITY OF INFRASTRUCTURES FACILITIES OF ELEMENTARYSCHOOLS IN BIHAR

Basic infrastructural facilities are a pre-requisite condition for elementaryeducation of good quality. Some of the basic physical facilities, necessary inschools may be classrooms, toilets, drinking water, playground, usableblackboard, seating facilities for students, chart modules, art and craftequipment, library etc. These facilities play an important role in improvingteaching-learning environment and consequently overall school quality. Thereis a need to initiate comprehensive measures for elementary school with basicminimum facilities. Under SSA scheme prescribed financial norms forimprovement of basic facilities in schools. Besides, providing them, it is alsoimportant to maintain them properly. There is a provision of Rs. 2000 perannum as school grant for replacement of non-functional school equipment and Rs.5000 per annum for maintenance and repair to the school building. It has beenobserved from DISE data that more than 70000 schools are imparting elementaryeducation across 38 districts of Bihar, out of these 86 were private schools, 1049 wereunrecognised madrasas and remaining were government schools. Regarding thelocation of schools it was found that more than 90% of schools of Bihar are located inthe rural areas. It refers that majority of primary schools where accessibility is notonly the problems but running with the acute shortage of basic infrastructure facilities.Some of the basic educational infrastructures available in the elementary schools ofBihar have been highlighted in the following table;

Table No. 2. Quality dimensions of Infrastructures in elementaryschools of Bihar (DISE-2012-13):

S. No. Infrastructure Indicators % of total1 % single Classroom Schools 4.62 % Single Teacher Schools 11.73 % Schools with boundary wall 40.14 % Schools with Boys Toilet 61.95 % Schools with Girl’s Toilet 66.96 % Schools having electricity connection 2.4

76/ Quality of Teachers and Infrastructures ...... Education in Bihar7 % Schools having drinking water facility 89.48 % Schools having ramps 45.89 % Schools having play ground 23.710 % Schools having kitchen-shed 13.911 % Schools providing MDM 92.512 % Schools having Computers 0.513 % Schools having Library facility Nil14 % Schools having Laboratory facility Nil15 % Schools having art and craft facility Nil

From the above table, it can be analysed that the paucity of infrastructurewhich force students to drop out because in the absence of adequateinfrastructures facility quality elementary education cannot be ensured. Asan example 60 % schools in Bihar are running without boundary wall wherestudents are free to roam wherever they want during schools hours. Most ofthe schools are running in multigarade modes either in one or two classroomswhere students of class 1 to 5 are sitting together and got same teaching-learning instruction irrespective of their class. How In this particular scenariohow quality of elementary education can be ensured. As per governmentsrecord in 92.5 % elementary schools of Bihar Mid-Day Meal is provided butthe kitchen facility is available only in 13.9% schools what about the rest 86%schools where Mid-Day Meal is prepared either in the classrooms or in thebarandah which disturb the whole teaching learning process. Most of thetime teachers are busy in ensuring timely preparation and distribution ofMid-Day Meal. More than 97% elementary schools in Bihar have no electricity,library, laboratory, art and craft facilities available than how the all-rounddevelopment of the child will be achieved. Even technology based teachinglearning process is not possible. The state government along with local agenciesand community should think to improve the situation. VSS or VEC shouldtake care of the infrastructures available and functioning of schools atelementary levels in Bihar. Only than the situation can be improved otherwisethe Universalisation of Elementary Education will remain a distant dream.

CONCLUSION

On the whole it can be concluded that the goal of universalisation ofelementary education cannot be achieved in Bihar until the quality of teachersand schools in terms of infrastructures will be improved. It is analysed thatthe quality of elementary education can be more objectively and concretelyseen in terms of the quality of teachers and primary schools. It has also beenobserved that it is multi-dimensional, dynamic and complex in nature therefore,while preparing the perspective plan as well as the identification of the strategies

Chandra Mohan Singh / 77for achieving quality UEE, it is important to make a careful assessment of therequirements of infrastructure and teachers. Planning for infrastructureimprovement and up gradation of human resource capacities will require toensure universal enrolment.

Recruitment and training of teachers is one of the crucial issue, whichneed to be addressed seriously. While planning for provision of teachers, it isimportant to ensure rationalisation of teacher’s positions, ensuring that thereare no surpluses teachers in a particular school while other schools, particularlythose located in remote areas suffer from teachers’ shortage. Teachers, vacanciesshould also be accounted for while asking for new positions. It has beenemphasised in SSA scheme that for training of teachers already recruited helpshould be taken from SCERTs, DIETS, BRC, and CRC. Moreover, there shouldbe a provision for at least 30 days in services course for all teachers each year.20 days refresher course for untrained teachers already employed as teachersand 30 days orientation for freshly recruited teachers should be compulsory.As per DISE (2012-13) data it has been observed that only 31% teacher got in-service training in the last academic year again it raises a question. Further,there should be provision for the qualification up gradation, and life-skillbased, self-motivated teaching-learning process. On the other hand thegovernment of Bihar along with their agencies, local communities, PTAmembers, VSS member, teachers should do the need based planning to improvethe infrastructure facilities and teaching learning materials. Otherwise in thepresent scenario of elementary education in Bihar the Universalisation ofElementary Education will remain an unattended goal forever.

REFERENCES

1. Diwan, R. (2002): Improving Quality of Educational Research: Questof School Practitioners and Research. Volume I & II, AtlanticPublishers and Distributors. New Delhi.

2. Govinda, R. and Varghese, N.V. (1993): Quality of Primary Schoolingin India- A Case Study of Madhya Pradesh. NUEPA, New Delhi.

3. MHRD (2002): Sarva Shiksha Abhiyan- Framwork forImplementation, MHRD, Govt. of India, New Delhi.

4. MHRD (2008): Sarva Shiksha Abhiyan, a programme for UniversalElementary Education Framework for implementation, Deptt. ofSchool Education and Literacy, Govt. of India, New Delhi.

5. NCERT (2000): Monitoring Quality of In-Service EducationProgrammes, NCERT, New Delhi.

6. NCERT (2000): National Curriculum Framework for SchoolEducation, NCERT, New Delhi.

7. NUEPA (2013): Education for All: Year 2013 Assessment, India (2013).NUEPA and Govt. of Inida, New Delhi.

78/ Quality of Teachers and Infrastructures ...... Education in Bihar8. NUEPA (2013): State Report Cards 2012-13, Elementary Education in

India: Where do we stand? NUEPA, New Delhi.9. Willms, J.D. (1996): Monitoring School Performance: A Guide for

Education. The Falmer Press: Washington D.C.10. www.bihar.nic.in

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N.B.:1. The membership is given in two broad categories. The fees of these catego-ries are given as follows:(A) For Individuals:Particulars For Indian citizens For Other than Indian

(In Indian Rupees) Citizens (In US Dol-lar)Student(Annual) 500 50Working professionalAnnual 1000 100Five yearly 4000 400Life term 8000 800

(B) For Institutional:Particulars For Indian For Other than Indian

(In Indian Rupees) (In US Dollar)Annual 2000 200Two yearly 3500 350Five yearly 7000 700Ten yearly 12000 1200

2. The membership fee should be paid either b y M.O. or Bank Draft payablein the name of the Shrutaayush Publication payable at Greater Noida.3. Accounting year of publication is from 1st April to 31st March.4.A member is entitled to 4 issues of Global journal of Multidisciplinary andMultidimensional Studies.