The Fundamental Problem Of Exchange In Long Distance Trade Essay Example for Free

The Fundamental Problem Of Exchange In Long Distance Trade Essay How did medieval merchants solve the fundamental problem of exchange in long distance trade? What light does this shed on the prosperity of the Venetian Republic and Portugal before 1700? Trading has been an elementary part of economies since the advantages of it were discovered. The ability to exchange goods greatly contributes to economic efficiency as it enables us to capture gains from natural comparative advantage and division of labour. There are evident gains from trade when a country has an absolute advantage in the production of a good. A country is said to have absolute advantage in production if it can produce the same amount of output with less inputs relative to other countries. This brings about a stronger economy, as there is greater specialisation and technical innovation, which has positive impact on the economy in the long run. There are also gains in trade when a country has a comparative advantage in the production of a good. This is when the opportunity cost for producing a good is lower than that of another country. This results in a higher aggregate output, which means that gains can be split between both countries. The fundamental problem of exchange has existed since the advantages of trade were discovered. It says that even if there are potential gains from trade, trade may still not occur as the lender will not want to lend without being assured that the borrower will not invest the money in a hopeless venture, or take the money and run. It is very difficult to be sure that the person on the other end of a deal will fulfil their contractual obligation. In short, in the absence of commitment, an exchange will not take place. The arguments against trade, if the other side of the bargain wants the maximum gain for him or herself, can be seen very clearly by using the one-sided prisoners dilemma. Player I has the choice of either conducting an exchange or not. If no exchange is conducted, then both player I and II realise no gain. If player I does decide to exchange, player II has the choice to either cooperate or to renege. Both sides gain if player II cooperates, but if we are assuming that player II wants to maximise their own self interest then player II will decide to renege, in which case player I will be worse off. It is possible however that player I will anticipate this happening and so decide not to exchange in the first place. This leaves us in the initial position of both sides not realising any gains from trade and no one being any better or worse off. For the trade to therefore take place, it is essential that player II can guarantee that they will keep to their side of the bargain and not renege. A way for this to successfully occur arose in Europe, as institutions were developed through the formation of merchant guilds. Economic institutions are defined here as a system of social factors, such as rules, beliefs, norms and organisations, that guide, enable and constrain the actions of individuals; thereby generating regularities of behaviour. Merchant guilds were formed in order to act as a deterrent of opportunistic behaviour, both between merchants themselves and between merchants and the state. Within the merchant community itself, the majority of merchants traded through networks of kinship and the exchange of hostages. Networks worked extremely well in deterring opportunistic behaviour, as those with good reputations would carry out many trades, as they were trusted in the community. The fact that reputations also took a long time to build up and could be quickly erased made them of extreme value to people. It was also possible to use strategic marriages and trade through families if you wanted to be sure both sides of a trade were secure. As a medieval ruler would have a local monopoly of the area he ruled, he would be faced with the temptation of abusing his power and appropriating merchants. Merchants therefore devised a solution to combat this problem, which was by organising a boycott of a state that abused the rights of a merchant. This deters predatory behaviour by the ruler, as it is not desirable to deprive the population, the ruler and the merchants the benefits of trade. It therefore has the potential to work very well, but the problem is that it can be very difficult to sustain as some merchants may see ways of maximising their personal gains by renegotiating with the ruler, causing the boycott to deteriorate. It was therefore vital if planning a state boycott to ensure rules were set out to prevent this from happening. Venice played a major role in re-opening the Mediterranean economy to western European commerce after the post-Roman Empire collapse, and the establishment of effective protection for merchants was crucial in this. Venice was very different to other economies of its time as the state was able to create an institutional framework that was favourable to merchant capitalism. It did many things, including the creation of political and legal institutions that guaranteed property rights and enforced contracts; it created a government bonds market, a fiscal system and a democratic system of governance. The creation of the government bonds market was one of the earliest financial markets created. It formed ways of raising funds for the government through compulsory loans on which interest was regularly paid, which is directly comparable to modern day government bonds. It is possible to see just how prosperous the Venetian Republic was in comparison to other European countries by looking at the GDP per Capita it had. In 1500, it had a GDP of $1100, which was far larger than other countries; the UK had a GDP of $714, Spain $698 and the second highest GDP per capita was Belgium with $875. This shows just how prosperous the Venetian Republic really was. Between 1147 and 1249, Portugal emerged from Arab rule. It did so with a significantly different political regime in comparison with that of Venice, as military aristocracy and the church became major landowners, and the interests of the church and the state became very closely linked. The fact that it was placed very well geographically meant that it was able to develop a strong empire through its unearthing of new trade routes and voyages of discovery. The Portuguese state was willing to give Jewish merchants and scholars refuge after they were driven out of Spain, as they recognised the value they had to society through the skills they were able to bring. They were able to provide scientific development, as well as being providing valuable links in trading with the Islamic world. This allowed important networks to be built up, which increased the volume of trade that Portugal came into contact with and so built up its strength as an empire. Although Portugal was extremely successful in its core business areas of shipping and trade, this success did not lead to successful wider development. This can be seen when looking at figures for per capita income before the nineteenth century, which gives an estimate of the per capita income of Portugal of $632. This is far lower than other relatively similarly dominant economies, such as Italy and Belgium, who had per capita incomes of $1100 and $875 respectively. The reason for this can be given by the fact that in general, agriculture and industry were the determining factors when analysing the per capita incomes, and in Portugal these industries were quite underdeveloped relative to other countries. In comparison to Portugal, Venice was far more prosperous. Not only when looking at the per capita incomes, but also when seeing how much more developed the Venetian institutional framework was. It was formed to be favourable to merchant capitalism, which vastly strengthened its trading platform as a country, and therefore the amount of money it was able to make. Trading was only possible through solving the fundamental problem of exchange. Over time, ways of solving the problem became more sophisticated; from using boycotts and networks of trust, to legal frameworks and courts of law. We have been able to become more affluent as economies due to the advantages that trade brings us, as can be seen looking at examples of economies from hundreds of years ago that first experienced the prosperity that trade brought. We have also been able to see the importance that institutions hold in nurturing and maintaining an environment that is favourable to trade, namely in Venice. References: The Fundamental Problem of Exchange: A research agenda in Historical Institutional Analysis Avner Greif, 2000 Cambridge University Press Maryam Shakiba L100

Boot Camps and Juvenile Crime Essay -- Juvenile Crime Boot Camps Incar

Boot Camps and Juvenile Crime Five years ago, responding to an increase in serious juvenile crime, the state of Maryland initiated one of the nation's largest boot camp programs for teenage criminals. The program, called the Leadership Challenge, quickly became the model for other states. But last week, after reviewing a task force report that documented instances of physical abuse at their camps, Maryland officials appeared on the verge of conceding that the current initiative was a failure. Military-style discipline may work as punishment at juvenile boot camps, but it has not been effective as rehabilitation. The Maryland experience, together with problems in other states, has already led some states to close their boot camps and even to rethink how their penal laws treat young offenders. All in all, it is a remarkable turn of events for an idea that was once greeted as a breakthrough in the fight against juvenile crime There is increasing evidence that boot camps never worked. A national study last year by the Koch Crime Institute, a public policy group in Topeka, Kan., showed that recidivism among boot camp attendees ranged from 64 percent to 75 percent, slightly higher than for youths sentenced to adult prisons. Gerald Wells, a senior research associate at the Koch Institute, said of the report, "The shocking parts are the allegations of abuse, but the more alarming parts are the failures." Research has also shown, according to Mr. Wells and other penal justice experts, that these camps were grounded in a false and unexamined assumption. "People thought boot camps shaped up a lot of servicemen during three wars," Mr. Wells added. "But just because you place someone in a highly structured environment with discipline, does not mean once they get home, and are out of that, they will be model citizens." Boot camps have their roots in the 1970's, with the advent of large, well-organized and extremely violent street gangs. In response to these groups, many states began to imprison more young people. By the 1990's, as the number of repeat juvenile offenders rose to record levels, it became clear that prison sentences were not working. In 1994, nearly 10,000 juveniles were charged with criminal offenses, an all-time high. More than 2,300 of them were charged with murder, compared with fewer than 1,000 in 1980, according to th... ...and they also need to learn respect, self-respect, discipline and a new way of conducting themselves in society," Ms. Townsend said. "Facilities that provide structure and discipline can be run effectively and have a role in our fight after juvenile crime." Many experts disagree, citing the expense of running such programs properly. "It's a budget issue," said Doris Mackenzie, a University of Maryland criminology professor. "They are popular in the public, people feel we should treat these kids tough, and everyone can get onto the bandwagon," she said. "But when it comes to this extra expense of doing the follow-up, we find, the money is not there." In any case, juvenile crime has been falling since 1994, after an overall drop in the nation's juvenile population. This will make it highly unlikely, say political observers, that voters will agree to pay for individualized rehabilitation. Much more likely, they say, is that the 27,000 young people who once went to boot camp each year will instead be sent to prison. As bad as boot camps have proved to be, Mr. Wells added, "once you start incarcerating kids, you have lost. But unfortunately, that is where we seem headed."

Health and Health Promotion Essay

A traditional approach to health care in general is one in which the goal of intervention is disease management in an attempt to minimize the harmful effects of a health crisis. Once a health crisis occurs, the quality of life for an individual is already negatively impacted. Therefore, health promotion is an equally, if not more important, component of health care that aims to improve the quality of life. Through the primary prevention efforts of health promotion, emphasis on avoiding disease and adopting a healthy lifestyle offers the greatest opportunity for a healthy and fulfilling life. As primary care givers, nurses play an important role in health promotion by demonstrating proper attitudes and behavior modeling, by providing valuable patient education and by advocating for and empowering patients and their families. There are numerous nursing theories which provide a framework for nurses to employ health promoting strategies in their practice. Defining Health and Health Promo tion One of the most widely used definitions of health is that of the World Health Organization (WHO): â€Å"Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.† Since the publishing of the WHO definition, changes in population demographics, the aging of society, and the changing nature of disease have caused researchers to question the relevance of this definition in today’s world. One criticism is that the concept of complete health disregards those with chronic illnesses who can learn to live fulfilling lives (Huber et. al, 2011). According to O’Donnell (2009) health is not a constant  state, but a state that continually evolves with life circumstances. Regardless, health isclearly a complex state that exists both to, and apart from, its relationship to illness. Health promotion is a process that benefits both the individual and society. The essence of health promotion is the preservation of health. Caring for the sick is a reactive intervention to health care issues whereas health promotion is a proactive strategy for prevention. An important step necessary to shift the momentum of healthcare to a proactive role is making the public aware of how they can actively participate in managing and improving their own health. As noted by Jadelhack (2012), â€Å"Health promotion is carried out by and with people, not on or to people† (p. 85). Education is a key factor in this step, as well as providing people with the resources needed to live out strategies for a healthy lifestyle. Improved health reduces healthcare costs and improves the overall quality of life. The Role of Nursing Theory Nursing theory and nursing practice are interrelated processes, and neither one holds value without the other. Theories unapplied are speculative, and practice without purpose is ineffective. To adequately participate in health promotion strategies, nurses must understand the basis for, and the goal of, their practice. Two theories that demonstrate health promotion are Neuman’s Systems Model and Roy’s Adaptation Model of Nursing. Both models provide a solid framework for nurses to develop and employ health promotion strategies when caring for their patients. In the Neonatal Intensive Care Unit (NICU), application of these theories can contribute to the health status of both infants and their families. These theories complement each other in the process of the developmental care practices that are found to be an essential component of health promotion in this unique patient population. Two Theories Betty Neuman’s System model focuses on how patients respond to environmental stressors, and on how nurses can help maintain wellness through the use of prevention strategies aimed at attaining, maintaining, or retaining what Neuman’s model refers to as patient system wellness. According to this theory, patients are multidimensional beings, having a physiological, psychological, socio-cultural, spiritual and developmental element.  Maintaining stability in all these elements is necessary for preserving the state of wellness. The internal environment, the external environment, and the created environment can both positively or negatively affect wellness. Neuman proposes that illness and death are the results of environmental stressors that deplete the patient’s energy resources needed to maintain a state of health. It would stand to reason then, if stressors are reduced or eliminated, less energy would be consumed and could be available for the process of health maintenance. Similarly, Sister CallistaRoy’s Adaptation Model addresses the interaction between an individual and their environment. This model considers an individual’s ability to adapt to a changing environment. According to Roy, adaptation involves how a person views themselves, their role in a situation, interdependence, and meeting physiological needs. Two important processes in the adaptation theory include an automatic physiological response and a coping mechanism which facilitate the adaptive process. Practical Application Both Neuman’s and Roy’s theories are applicable in the Neonatal Intensive Care Unit (NICU), a highly specialized area of nursing that cares for one of the most vulnerable patient populations; the preterm and critically ill infant. Both theories focus on the patient and their environment. The very nature of the NICU environment can negatively affect the infant who is already struggling with an imbalance in their internal environments. Immature physiological, structural, and neurological systems are not prepared to handle the external world outside the womb. Using Newman’s model, nursing practices aimed at reducing stress from the external environment and those facilitating stability within the internal environment of the infant are key to optimizing outcomes for the at-risk premature infant. The practice of developmentally supportive care evolved from the realization that preterm infants are not only affected by the external environment of the NICU, but are also a ctive members responding to their environment and caregivers (Gibbins et. al, 2008). Core measures for developmentally supportive care include protected sleep, pain and stress assessment and management, developmental activities of daily living, family-centered care and a healing environment are identified as health promotion interventions for the NICU patient (Coughlin, Gibbins, & Hoath,  2009). Practices such as cycled lighting, low noise levels, facilitated handling, and kangaroo care are measures which help reduce the negative effects of the NICU environment, stabilize the internal environment of the infant, and promote positive human relationships. The principles of Roy’s Adaptation Model can be applied to the process of family-centered care as it relates to a parent’s ability to adapt to the unexpected delivery of a premature infant. This unexpected event interferes with the psychosocial adaptation of the family, complicating transition to parenthood and the incorporation of a new child into the family system (Zimmerman & Bauersachs, 2012). Allowing parents to be active participants in their infant’s care is a key factor toward promoting emotional, psychological, and physical health of the members in the family unit. Barriers to Health Promotion Because of the unique environment of the NICU, barriers to health promotion activities through developmental and family-centered care efforts lie in family, health care provider and institutional challenges rather than in the NICU patient themselves. Problems with inadequate resources, insufficient staffing, and a lack of education and support for both nursing and parents often impede these efforts (Bamm & Rosenbaum, 2008). Interventions used in the stabilization of infants and competition for resources often draw nurses toward task oriented care, pushing parents to the â€Å"periphery of the NICU environment† (Galarza-Winton et. al., 2013). Fear, insecurity, and powerlessness are barriers for parents that can be abated by developing strong nurse-parent relationships based on mutual respect and trust, and through the promotion of family-centered care. Successful health promotion through developmental care practices are evidenced by parental bonding and confidence in caregiving as well as improved weight gain, earlier discharge, and improved developmental outcomes for infants. Conclusion Despite advances in health care, health care costs continue to rise. In 2006, costs in the U.S. exceeded two trillion dollars, with three-fourths of that money used to treat chronic diseases (Goetzel, 2009). Smoking, alcohol and drug use, obesity, inactivity, poor quality nutrition, and limited access to health care are all examples of modifiable risk factors that contribute to illness and chronic disease. Poor health reduces the general  quality of life and places a burden on individuals, families, and societies. Strategies for health promotion must be developed at many levels including the community, healthcare providers and the government. The aim of health promotion is empowering people to take responsibility for their health, as well as providing them with adequate preventative care. As Benjamin Franklin once noted â€Å"An ounce of prevention is worth a pound of cure.† References Bamm, E., & Rosenbaum, P. (2008). Family-centered theory: Origins, development, barriers, and supports to implementation in rehabilitation medicine. Archives of Physical Medicine and Rehabilitation, 89(8), 1618-1624. http://dx.doi.org/doi.org/10.1016/j.apmr.2007.12.034 Betty Neuman’s System Model. (2012). Retrieved April 30, 2014, from http://currentnursing.com/nursing_theory/Neuman.html Coughlin, M., Gibbins, S., & Hoath, S. (2009). Core measures for developmentally supportive care in neonatal intensive care units: theory, precedence and practice. Journal of Advanced Nursing, 65(10), 2239-2246. http://dx.doi.org/10.1111/j.1365-2648.2009.0502.x Galarza-Winton, M., Dicky, T., O’Leary, L., Lee, S. K., & O’Brien, K. (2013). Implementing family-integrated care in the NICU: Educating nurses. Advances in Neonatal Care, 13(5), 335-340. http://dx.doi.org/10.1097/ANC.0b013e3182a14cde Gibbins, S., Hoath, S., Coughin, M., Gibbins, A., & Franck, L. (2008). The universe of de velopmental care: a new conceptual model for application in the Neonatal Intensive Care Unit. Advances in Neonatal Care, 8(3), 141-147. http://dx.doi.org/10.1097/01.ANC.0000324337.01970.76 Goetzel, R. A. (2009). Do prevention or treatment services save money? The wrong debate. Health Affairs, 28 (1), 37-41. http://dx.doi.org/10.1377/hlthaff.28.1.37 Huber, M., Knottnerus, J. A., Green, L., Van der Horst, H., Jadad, A. R., Kromhaut, D., †¦ Smid, H. (2011, ). How should we define health? British Journal of Medicine, 343 (6). http://dx.doi.org/10.1136/bmj.d4163 Jadelhack, R. (2012). Health promotion in nursing and cost-effectiveness. Journal of Cultural Diversity, 19(2), 65-68. Retrieved from http://searchebscohost.com/login.aspx.?direct=true&db=c8h&AN=2011602897&site=nrc=perc Roy’s Adaptation Model. (2013). Retrieved April 30, 2014, from Modelhttp://currentnursing.com/nursing_theory/Roy_adaptation_model.html The electric Ben Franklin: A quick biography of Benjamin Franklin. (n. d.). Retrieved May 1, 2014, from http://www.ushistory.org/FRANKLIN/info/ World Health Organization. (1948). Official Records of the World Health Organization. Retrieved April 30, 2014, from http://who.int/about/definition/en/print.html Zimmerman, K., & Bauersachs, C. (2012). Empowering NICU parents. International Journal of Childbirth Education, 27(1), 51-53. Retrieved from http://web.a.ebscohost.com/ehost/resultsadvanced?sid=6bc9fd5c-0677-4c08-9ea1-16196308d26b%40sessionmgr4001&vid=4&hid=4214&bquery=TI+(empowering+nicu+parents)&bdata=JmRiPWM4aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZl

criminal justice Essay - 1318 Words

Tushnets A Court Divided By R. Anastasia Tremaine - February, 2005 Tushnets A Court Divided Tushnet (2005) takes an insightful look into the current Supreme Court and what it means for the future in his work entitled A Court Divided. Much has been discussed about the Court, particularly since the 2000 election ended up being referred to the judicial branch of government. Constitutional law has always been fascinating subject, as it broaches the areas of guaranteed legal protections. Landmark decisions change the course of history and determine which rights the people have and have not. nbsp;nbsp;nbsp;nbsp;nbsp;The book addresses the obvious problems. First, the author identifies the division between liberal and†¦show more content†¦Although he does not say so in so many words, the author does express the idea that the court is predictable when one has the right tools of analysis, but it is not predictable based on the ratio of conservative to liberal judges. That is a misnomer. Of course, if that is the case, much attention that is paid to the appointment of judges is not warranted. Hence, the author expresses a point that has been made by some but is largely disfavored by a media that loves to accentuate the relevance of appointments. nbsp;nbsp;nbsp;nbsp;nbsp;Tushnet’s (2005) point is this: he claims that judges are activists in their own way. This is quite a controversial position. Not only does he make this blanket statement but he goes through the court, judge by judge, and discerns each of their preferences. The reason why this is controversial is that the concept of judicial activism itself is controversial. Historically, during the judicial review process, restraint is admired. Judicial restraint is about trying to maintain the integrity of the Constitution, even if it means holding on to unfavorable legislation or not acting according to conscience. 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