Risk aversion Assignment Example | Topics and Well Written Essays - 2000 words

Risk aversion - Assignment Example Generally, the extent of risk aversion is the degree to which the individual prefers the certain income over the uncertain income. In terms of a utility function, this translates to the distance between the utility generated by the certain income and the utility generated by the gamble which has an expected income equal to the certain income. Obviously, for a concave utility function, the utility of the certain income will lie above the utility of the uncertain income with the same expected value. For a convex utility function this will be reversed. These are explained in the diagram below (figure 1). Figure 1: Risk Aversion and the curvature of the utility function In the diagram above, a rational individual is considered whose preferences are represented by the utility function U(.) defined over money incomes X. Suppose the individual has a choice of either playing a lottery with two possible outcomes: X1 and X2, where X2 > X1. To keep things simple let us further assume that both outcomes equally likely to occur. That is, both outcomes X1 and X2 have a probability of occurrence = ?. Thus if X1 is realized the individual gets U(X1) and if X2 realizes, the individual derives U(X2). Then, the expected income from the lottery is ?[X1+X2] and the expected utility is ? [U(X1) +U(X2)]. Now, observe that whether the utility derived by the individual from a certain income of ?[X1+X2] which is equal to U?[X1+X2] lies above ? [U(X1) +U(X2)], the expected utility from the lottery with an expected earning of ?[X1+X2], depends upon the curvature of the function. When the utility function is concave, . This shows that the individual prefers a certain income over and above a lottery with an expected income that is equal to certain income. Extending this logic it is simple to show that a risk loving individual will have a convex utility function while a risk neutral person will have a utility function that has a constant slope. Also, greater the distance between U?[X1+X2] an d ? [U(X1) +U(X2)], the more risk averse is the individual, since the preference for the certain income is even greater in that case. This implies that the more concave the utility function the greater will be the risk aversion of the individual. Similarly, greater the convexity of the utility function, greater will be the individual’s love for risk. Therefore, it can be generally agreed upon that a risk-averse person will have a concave utility function while a risk lover will have a convex utility function. A risk neutral person’s preferences will be designated by a utility function with a constant slope. Now, Mr. D’s Utility function is: Then, and, Since , and thus, Mr. D’s utility function is positively sloped. A positively sloped utility function implies more income is preferred to less by Mr. D. For his attitude towards risk, the curvature (sign of the second order derivative) of the utility function has to be considered. Now, and, Therefore, the ut ility function is convex if the value of the positive parameter and it is concave if the positive parameter . If the utility function is concave, Mr. D is risk averse while if the utility function is convex, then Mr. D is in nature a risk loving person. Therefore, regarding the attitude of Mr. D towards risk, we conclude the following: Mr. D’s attitude towards risk depends on the value of the parameter . If , Mr. D loves

Animal Testing Pros Essay Example for Free

Animal Testing Pros Essay Animal testing is basically making use of animals in experiments carried out for the betterment of human lives. These animal experiments are carried out by universities, pharmaceutical companies and even by students and researchers at medical schools. These animals are either bred specifically for carrying out experiments or are caught from their wild habitat and locked up in cages. There are some pros that motivate scientists to carry out experiments on these animals. So, what are some of the good things that support the torturing of these poor animals? Lets see some of these animal testing pros that makes proponents of animal experimentation argue for use of animals in research. Animal testing helps in finding ways to help save lives of animals and humans by testing lifesaving drugs and processes. A few animals tend to react the same way like humans in response to certain diseases and allergies. This helps the scientists find a cure for certain diseases by studying these animals. Open heart surgeries, coronary bypass surgery and heart transplantation are some of the procedures that came into existence by carrying out experimentation on dogs. Insulin for diabetes, lifesaving antibiotics, etc. have been made by experimenting on animals. Contagious diseases like smallpox, measles, chickenpox, rubella, polio, rabies, mumps, etc. were brought into control due to vaccines made by carrying out experiments on animals. About 99% of the human genes are similar to that of the chimpanzees as well as a few other monkeys. Thus, experimenting with these animals gives  scientists an idea about their possible reaction in the human body. As it is immoral to experiment on humans, chimpanzees and other monkeys remain the only option. Treatment for scarlet fever, tuberculosis, complex surgical procedures for humans were tested OK for humans through animal testing. Tests for vaccines for diseases like AIDS is being carried out on animals. The common animals used for these tests include rats, mice, rabbits, monkeys, dogs, goats, horses, etc. Chimpanzees share about 90% of their genetic make up with humans. These animals have similar reactions and somewhat similar inner organs to humans that help in determining the effects of drugs and procedures on humans. Many transplantation operations were first carried out on animals, that helped determine and save lives for humans. Animals are not only tested for making lives of humans better, but for the betterment of animals themselves as well. People often overlook the fact, that may breakthroughs in veterinary medicine has occurred due to this experimemntation. Animal surgeries, animal antibiotics, etc. have all come into existence, due to testing. Thus, animal testing pros prove it is very vital in saving not only the lives of humans, but those of animals as well. Cell cultures are useful only when one needs to see the side effects at molecular level. In order to see other physical side effects such as rashes, acne, wheezing, cardiac problems, etc. one needs to use animals. Although, animal physiology is not similar to human physiology, the results acquired after animal testing, help gauge their effects on humans. Animal testing helps in figuring out the safety of drugs on humans, before scientists begin the human trail. You dont want people getting adverse reactions to these drugs and adding more woes to their misery. The animal trials help minimize the chances of human death during clinical trials, saving pharmaceutical and medical organizations millions of dollars in compensation. Also, animals, like mice and rabbits, reproduce very quickly. This gives the researchers a chance to see the effects of the experiments on the progeny too. Now, let us see some of the arguments against animal testing. Animal Testing Cons When we speak about animal testing cons, there are plenty of emotional and ethical issues staring in our faces. The first con is the issue of pain the animal must be going through. Although, it is claimed none of the animals were hurt in the test, but how can one be 100% sure? Not all handlers are alike and some just jab the needles through their body, keep them in cramped up spaces, with little or no food sometimes. Animals cannot speak, so how can we determine whether or not and the level of pain the poor creature is going through? Animal testing statistics show many creatures lose their lives during the course of experiments. Some lose their limbs, eyesight, hearing ability, etc. All in the name of saving human lives. Agreed, when people say millions of animals are killed worldwide for food. But, you cant compare that with the months of torture the animals go through while the experiments are on. Wouldnt you prefer being killed in one shot, rather than enduring poking needles, cuts and poisonous chemicals being injected into your system and being kept caged in a really small space for what seems like all eternity? You may wish to escape the dreaded place that smells of disinfectants, chemicals and may be sure death, but cannot. There are many animal rights group that claim killing animals is inhumane. Animal testing in cosmetic industry as well as a household products is not worth the life of a poor animal. Experimenting using animals also proves to be a bit expensive. This is because the cost of housing, feeding caring for the animals is quite high. Animals are in a great deal of stress as they are not living in their natural habitat and the controlled environment may take a toll on their minds. Also, some claim animal experiments can be misleading as an animals response to a drug cannot be absolutely similar to a humans. People are now suggesting use of tissue culture, statistics and even computer models for carrying out the test. Animal rights also exist and abusing  someone weaker than us is not right. The death of animals due to an experiment gone wrong is similar to murder of a human who was tested against his will. In human tests, at least humans are asked whether they would like to sign up legally for being tested. There are legal papers and documents that safeguard the rights of the human subject and compensate him for any kind of loss. Animals however, are never asked for their opinion and have never had their rights safeguarded. The obvious explanation being they do not have the understanding capabilities of humans. This does not give us the right to use another life for our benefits. To find a cure for cancer, the animal cells are forced to grow abnormally, so that experiments can be carried out to find a remedy. With stem cell research and genetics getting a push, animals are subjected to further animal cruelty. Hybrid animals and cloning is carried out on the poor animals who are injected with genes of other animals within an embryo of another species. The resultant being a cross, that is either malformed or dead before being born. Do we have the right to reduce the dignity of animals by forcing mutations on them? You can see both the sides of animal testing facts tilt the scales of the balance equally. Animal testing helps saves lives of millions of humans, but in turn, thousands of these animals lose their lives. It is an open fact, not all handlers and researchers handle the animals with care. Computers cannot predict an outcome, just the possibility and tissue culture cannot predict the physical implications of a drug like rashes, cardiac failure, etc. Similarly, testing cannot accurately prove the implications of drugs and procedures on humans. Pulling away babies from their mothers before they even get a chance to open their eyes, is not being human. Breeding animals only because you want to check the outcome of your drug on hapless babies is wrong. Till an experiment is a success, torturing hundreds of animals, be it a mice or monkey is rather totally unethical. It has been proven that over 92% of drugs that claim to pass the animal trials fail when tested on humans by the Humane Society of the United States. This debate on animal testing pros and cons will continue till  scientists do not find an alternative to this cruel process of animal experimentation. You can decide for yourself, whether you are for, against or just a mute spectator to animal testing. Every coin has two sides, so does animal testing. It is now up to each one of us to decide, which side do we choose. Read more at Buzzle: http://www.buzzle.com/articles/animal-testing-pros-and-cons.html The question of legalizing marijuana refers to whether or not Americans should be allowed to legally grow, sell, buy or ingest marijuana. At present, the U.S. government claims the right to, and does, criminalize the growing, selling and possession of marijuana in all states. The U.S. Supreme Court affirmed this federal right in two separate court cases: In 2001, U.S. v. Oakland Cannabis Buyers Cooperative, which overturned California proposition 215 which, in 1996, legalized marijuana for medicinal purposes. In 2005, Gonzales v. Raich, which again upheld the right of the federal government to ban marijuana use in all states. (See page two of this article for specific Pros Cons of Legalizing Marijuana.) What Is Marijuana? Marijuana is the dried blossom of cannabis sativa and cannabis indica plants, leafy annual plants with parts that are used for as herbs, animal food, medicine and as hemp for rope-making. The flowers contain psychoactive and physiologically active chemical compounds known as cannabinoids that are consumed for recreational, medicinal, and spiritual purposes, per Wikipedia. Why is Marijuana Banned in the U.S.? Before the 20th century, cannabis plants in the U.S. were relatively unregulated, and marijuana was a common ingredient in medicines. Recreational use of marijuana was thought to have been introduced in the U.S. early in the 20th century by immigrants from Mexico. In the 1930s, marijuana was linked publicly in several research studies, and via a famed 1936 film named Reefer Madness, to crime, violence, and anti-social behavior. Many believe that objections to marijuana first rose sharply as part of the U.S. temperence movement against alcohol. Others claim that marijuana was initially demonized partly due to fears of the Mexican immigrants associated with the drug. In the 21st century, marijuana is  illegal in the U.S. ostensibly due to moral and public health reasons, and because of continuing concern over violence and crime associated with production and distribution of the drug. Latest Developments On June 23, 2011, a federal bill to fully legalize marijuana was introduced in the House by Rep. Ron Paul (R-TX) and Rep. Barney Frank (D-MA.) The bill would remove marijuana from controlled substance classification. On February 25, 2009, Attorney General Eric Holderannounced that that federal agents will now target marijuana distributors only when they violate both federal and state laws. The impact of Holders statement is that if a state has legalized marijuana, then the Obama administration will not override state law. To date, thirteen states have decriminalized marijuana for medical purposes only. In 2010, States Move to Loosen Marijuana Laws In November 2010, Californians defeated a ballot proposition that Californians over age 21 would be able to possess up to one ounce of marijuana, and grow their own plants on a plot up to 5 feet by 5 feet large. Washington, New Hampshire and Massachusetts state legislatures are slated to consider marijuana legalization bills in 2010-2011. And more than 20 other states are considering bills to otherwise loosen criminalization of marijuana use and possession. President Obama Avoids the Marijuana Question When asked at a March 2009 online town hall about marijuana legalization, President Barack Obama avoided a serious answer, and laughingly demurred I dont know what this says about the online audience. But, no, I dont think that is a good strategy to grow our economyWrote an irritated college newspaper columnist at State University of New York at Geneseo: Many people were disappointed by his reaction, as Obama did not offer any counter-arguments and completely ignored the potential medical and social benefits of ending the prohibition on marijuana. Yes, some who wish to see marijuana legalized use it for recreational purposes, but the other benefits cannot be ignored. Cannabis is known to ease pain disorders, including the side-effects cancer patients experience throughout treatment. In addition to this, legalization would strike an enormous blow to organized crime, free up the overflowing prison system and reduce violence along the  Mexican-American border. Obama Supported Decriminalization in 2004 However, in a 2004 appearance at Northwestern University, then Illinois politician Obama told a crowd, I think the war on drugs has been a failure, and I think we need to rethink and decriminalize our marijuana laws. (See page two of this article for specific Pros Cons of Legalizing Marijuana.) Background The following are milestones of federal marijuana enforcement in U.S. history: Prohibition, 1919 to 1933 As use of marijuana became popular in response to alcohol prohibition, conservative anti-drug campaigners railed against the Marijuana Menace, linking the drug to crime, violence and other bad behaviors. 1930, Federal Bureau of Narcotics established By 1931, 29 states had criminalized marijuana. Uniform State Narcotic Act of 1932 Pushed states, rather than federal authorities, to regulate narcotics. Marijuana Tax Act of 1937 Restricted marijuana to persons who paid an excise tax for certain medical uses of the drug. 1944, New York Academy of Medicine Report finds that marijuana does not induce violence, insanity or sex crimes. Narcotics Control Act of 1956 Set mandatory prison sentences and fines for drug offenses, including for marijuana. 1960s Counter-Culture Movement U.S. marijuana use grew rapidly. Studies commissioned by Presidents Kennedy and Johnson concluded that marijuana use did not induce violence. 1970 in Congress Repealed mandatory penalties for drug offenses. Marijuana was differentiated from other drugs. Per PBS, It was widely acknowledged that the mandatory minimum sentences of the 1950s had done nothing to eliminate the drug culture that embraced marijuana use throughout the 60s 1973, Drug Enforcement Agency Created by President Nixon. 1976, Conservative Christian Groups Led by Rev. Jerry Falwells Moral Majority, rising conservative groups lobbied for stricter marijuana laws. The coalition grew powerful, leading to the 1980s War on Drugs. Anti-Drug Abuse Act of 1986 Pushed for and signed by President Reagan, the Act raised penalties for marijuana offenses, and established harsh mandatory three strikes sentencing laws. 1989, New War on Drugs Declared by President George H.W. Bush 1996 in California Voters legalized marijuana use for cancer, AIDS, glaucoma and other patients, via a doctors  prescription. 1996 to 2008 12 other states legalized medicinal marijuana use, albeit with widely varying restrictions. Most states cant implement their programs, though, as the Bush DEA executed a series ofsurprise raids on marijuana clinics, arresting both sellers and patients. The White House claimed that federal law held precedence over state legislatures. MAIN SOURCE: Condensed from materials produced by PBS and WGBH/Frontline.

Capital vs. Labor Essay -- Economy, Stock Market

Chapter 19 of Liberty, Equality, and Power, asks what the most significant ways in which the ongoing struggle between capital and labor reshaped American society during the late 19th century (Murrin, 523). In response, one of the most important contributions was the introduction of new technologies utilized primarily in factories. This in turn lead to the revolutionizing of production lines, and corporations. This domino effect continued on to spur the birth of unions in the United States, who organized rebellions against corporate power still used today. Finally during this time women underwent a transformation of their civil rights, as well as their role in society. The introduction of new technologies was a double-edged sword in forming society. On one note, inventions like the phonograph, or the electric dynamo brought entertainment and commonplace items to the middle class, as well as household appliance to today's society. Another benefit, included the shift from steam engines to that of internal combustion, seen in automobiles (500). On another side, factories became more efficient by means such as the open-hearth process used in steel mills, leading to lower wages, and longer hours for workers (500). Although the first example has provided today’s society with modern appliances, the latter was more significant during the early 19th century. Now that production lines were more prominent, workers no longer needed to be skilled in multiple jobs, and in turn they were easily replaced by those willing to work for the lowest price. As factory operators pushed their employees to work longer and harder in order to increase profits, unions were formed. An example of this would be the fraternal organizat... ...found that the book gave perspective to each of the individual classes, rather than covering only the bourgeois or the proletariat. Today you will scarcely find a job or institution were women are not allowed, had I not read this chapter it would have been very difficult for me to understand what women at this time went through. Understanding how the people of this time period lived allows me to relate this information to today’s society. This will aid me for the exam by allowing me to connect with these events, in a very personal manner. However I believe that if there were more potential questions at the end of the chapters it would provide more food for thought, and better help one learn the material. Furthermore being able to use more outside material for this assignment, would have led to a more diversified view, as well as more supported arguments.

Acs History

Cancer is detrimental to people. It is not just a sip le disease but is also treated as a human killer. It is considered as one of the most serious health problem next to heart disease. Being defined, cancer is illness on which the cells grow and divide beyond the normal limit, destroy other cells, and even spread this into different part and location of the body. This disease chooses no limit; anyone can have these types of condition. Millions of people suffer from this fatal condition. It was estimated by experts, that after several years, cancer would claim for about 6.2 million lives including men, women, and even children. Also, according to them, it is possible that there would be more victims affected by cancer globally for the coming years. However, given such fact, there are still many reported cases that successfully passed the tragic of having cancer. That’s why there have been different organizations who want to help the problem and minimize the number of victim of cancer. One of those organizations is the American Cancer Society, which has mire than 3,400 offices worldwide and is located at Atlanta Georgia.Former American Society for the Control of Cancer (ASCC), the American Cancer Society was established in 1913 joined by 15 physicians including business leaders in New York City. It was considered as one of the most unforgettable in the history of New York, for having such organization concern with public health. In the early 1913, cancer was not that known and not often reported to the public and society. Awareness of cancer was very low for that moment. Decease victimizes 75,000 people a year in the United States only cause by the decease itself.People involved in the society knew that they have to make public awareness through proper education and information dissemination about cancer if they want progress†¦ Doctors, nurses, and professionals had advertising campaigns containing articles that educate masses with regards to cancer. There has been a campaign that encourages doctors and physicians to be part of the society as well as the campaign. By 1936, Marjorie G. Illig came up with the idea of a new way to have that progress. The proposal was by creating an organization of new selected volunteers that will promote war against cancer.That was called the Women’s Field Army. First step done was to raise money by using different tactics. Through this, Clarence Little, who was the ASCC’s managing director reported that by 1935, 15,000 people who suffered cancer were in control. By 1938, number of victims of cancer reached up to ten times of the previous. After this, ASCC was renamed by American Cancer Society in the year 1945. 1946, they have risen for over $4 million reserved for the education program of the society. Year 1947, there has been public awareness through showing and releasing ads that indicates the signs of having cancer.This was called â€Å"Cancers Danger Signals†. These inc ludes: there’s a wound that does not heal, thickening in other part of the body most especially in the breast, abnormal bleeding, change or difference on warts, continuous indigestion and cough, and difference in bowel habits. After 10 years, this was changed and was replaced by CAUTION. 1980, Dr Sidney Farber was the first receiver of the Society’s program. Aminopterin was first used for the cure of the disease, followed by the era chemotherapy as another way of treatment for cancer.Through the years, they discovered that smoking is closely associated with the cause of cancer and showed the relevance of cleaning or termed Pap smear, Interferon as fighting drug for cancer and many more. They funded researches for over $3 billion dollars as well for the Novel Prize winner. Middle point of the American Cancer Society was the creation of the logo of the ACS. The sword which symbolizes the continuous fight for cancer and twined serpents symbolizes the prevention of the dis ease. Now, the organization has established their name which helps and supports the cancers victims.What we discussed is the positive side, now let’s look more about ACS. It was reported that the American Cancer Society is really receiving wealth being â€Å"charity†. From James Bennett, a professor in the course economics at the University of George Mason, declared that in 1988, ACS had a total balance of $410 million and worth $69 million of lands, buildings and equipment and spent only $90 million or just 26 percent of its budget for researches and other medical programs. The balance of the money was used for operating charges which includes salaries for employees, pensions and many more.By 1989, the fund reached up to $700 million and in 1991, trough the beliefs of the Americans that they greatly help in fighting cancer; they shared $350 million which was 6 percent higher than the previous year. Fund of ACS mostly comes from the public, but with the following decad es, corporations have also shared to support the program. Then, there exist the American Cancer Foundation mainly created so that ACS can now legally ask for fund in many ways like soliciting. The result of this effort was not wasted but instead a great success. There are millions of fund entered the organization.1992, there is this certain article who said that ACS is not really for the sake of cancer victims, but instead, for money and wealth. ACS didn’t stop searching way to gather funds. There is continuous fund raising that was said to support the cancer programs and having money at hand for about $750 million and assets. Also at the same year, the Wall Street Journal, author Thomas DiLorenzo declared that ACS owned over $11 million worth of land and real estate and also 56 cars which was owned by the executives and other 45 for the staffs and employees. Having the budget, they only gave its 10 percent for public services.Needless to say, not all money was brought to the cancer victims. Moreover, only 16 percent of the derived fund goes for the direct service of ACS. Where the money goes? Large percent of the fund raised by ACS went to salaries, travel expenses of executives, and many more. The truth is that more than half of the budget goes to the expenditure of the executives and employees. To be exact, that is about 52 percent of the fund raised obviously bigger than where the money should be allotted. There have been appeals for fund raising due to the insufficient fund, but the question is, why there is so much expenditure by top management.Donors and contributors believes that their contributions goes with the treatment of patients suffering from cancer and not for own goods. To achieve progress, there must be proper allocation of budget the aims to protect and help cancer victims. It should be use for different cancer services and programs. Another one, there exists the fund, for researches, they do not focus on the ways on how to prevent th e disease but instead promoting drugs that will cure cancer. Through this, people can conclude that they were not really aiming to fight cancer but instead to advertise products that will cure cancer.It seems that the fund supposedly for preventing cancer went to the research of drugs that will cure and later, will be sold to the people. In addition, the way used by ACS for fighting cancer is the â€Å"blame-the-victim† strategy. They continuously blame people rather than educating for a healthy environment unexposed to carcinogens. Their silence with the issue benefited corporations that are large contributors of pollution and carcinogens. Given their promises to wipe cancer 100 percent globally failed to the do so. They were not heard in the Congress even there are lots of opportunities to be heard.ACS continued to fail for responding with the Congress. These are the proofs: 1. 1971, ACS refused the invitation to have their testimony in FDA to ban the used of diethylstilbes trol (DES). 2. ACS disagreed that hair coloring products with dyes can also cause cancer. 3. ACS rejects the Congressional Moratorium which bans the use of saccharin. The continuous rejection of ACS tested their sincerity with the program and the organization for treating cancer. Because of this, there are scientist who declared that ACS was not performing well to prevent people from the elements in the environment that causes cancer.This report of criticism declared that the exposure of people in an environment rich in cancer causing elements resulted human suffered from the disease. What they want to imply is that, ACS should make ways to prevent cancer instead of researching things on how to cure it. Studies showed that exposure to different elements such carcinogens fasten the growth of cancer. What ACS should do is to respond with Congress, and make it as partner of imposing laws that will ban the used of different cancer causing elements. They should not neglect the opportunit y to solve the worsening problem of cancer.If they really want to advocate and help people against cancer, they should set objectives that promotes the prevention rather than in the way of curing. In addition, funds gathered should goes on where it should be, because there are lot of people who really want to address this worsening problem. They should not waste the time that the public still trust their name as one of the most charitable organization the helps the public. They have established a good name globally, it should be used well, so that people suffering from the disease receives what they should receive. It’s the life that matters, and life is the issue.We should not sacrifice one for our own sake. Works Cited DiLorenzo, T. J. Uneconomic war on cancer. Journal of Wall Street, March 1992, p. A10. Hall, H. , and Williams, G. Professor vs. Cancer Society. The Chronicle of Philanthropy, January 1992, p. 26. Bennett, J. T. , and DiLorenzo, T. J. Unhealthy Charities and Wealth. Basic Books, New York, 1994. ACS Inc.. ACS History: http://www. cancer. org/docroot/AA/content/AA_1_4_ACS_History. asp. retrieved November 10,2007 Bennett, J. T. , and DiLorenzo, T. J. Unhealthy Charities: Hazardous to Your Health and Wealth. Basic Books, New York, 1994.

Development Finance

Financial development is the basis of every country development when ever we talk about the developing countries of the world. Every body must say their financial strength is one of the factors for their decreased development with out financial heath of the country. It is unable for any government to put forward the development plans which after words brings good results in the financial heath of the country.There are so many countries in the world to talk here Africa is one of them where the financial position is very low also some other countries like Sudan, Somalia, and many more who are just at the developing countries list. One of the main things in increasing the financial growth of any country is the economic growth through globalization of capital and the cross border trade. Trading with such countries and provision of foreign aid to such countries which are low in financial position in the view of USA government is the basis for their development that’s why today more work done for increasing the financial heath of the low developing countries.In the year 1980s and 1990s, it was noted that due to some reasons the financial development in many countries remains low because of the financial markets crisis. These crises were due to the changes in investments and due to the government crisis in those countries and the lack of international standard financial institutions hat are capable of attracting more investment opportunities from the foreign investors. For increasing the growth of economy, foreign investment in the country plays a major role.Due to the increase of foreign investment the export position increases or in other words low financial position is due to the low banking and financial standards in the country. Going to talk about the financial health of Africa as an example as every body knows the financial development of Africa is very low as compare to the developed countries of the world, but now the developed countries are playing a good role to develop such countries as Africa to put forward the development plans they have provided foreign aid to such countries in order to full fill the development plans and open the routes of trade.Third World Countries, Why they are in List of third World?Third world countries as the name says are those countries which are low in economic growth and the less developed countries of the world during the French revolution. The French demographer Alfred Sauvy named these countries as the third estate because these countries are in the list of those countries which are not of high technologies and less industrialized, like the other countries of the world. The reason behind is such lack of financial growth is the lack of funds.â€Å"The concept of the â€Å"Third World† developed after the Bandung Conference of Colored people in 1955; a conference greatly influenced by Communist China and after it began feuding with Russia (The Sino-Soviety Split). Its main idea was that a third power bloc had to be created that would be distinct from the capitalist, industrial world (First World) and the Communist, Industrial world (Second World). The French Economist Alfred Sauvy popularized the term â€Å"Third World† to refer to these countries. â€Å"Third World† was also used in the West to refer to countries receiving foreign aid†.The third world countries are low developed countries in the world because of: ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   There low gross national product, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Poverty reasons, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In terms of human development, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In terms of press freedom, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The lack of financial institutions, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Industrialization, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Technology, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Lack of foreign investments.List of third world countries includes many coun tries in which large number of countries belongs to the continent Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Malawi Eastern Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Somalia Eastern Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Congo Middle Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Liberia Western Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Nigeria Western Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Ethiopia Eastern Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Zambia Eastern Africa ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Afghanistan Central Asia ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Eritrea Eastern AfricaBecause of the low financial development issue basically regarding to the countries of Africa, which are east west and in middle Africa so it is important to talk about the country in Africa.Somalia †¦Country in Eastern AfricaSomalia which is situated in the eastern part of Africa a country which is not to be own by the basis of government as which is in the other developed countries of t he world. The country’s borders are also to those which are also included in the less developed countries of the world, the development related to the financial growth of the country is so low as it has been seen that there were fight existed for many years in the country which didn’t brought any government and made the country low in every financial step.Because of no government and management powers the country has not the idea of trade finance government rules institutions for investments and so on. The country has been the living place for many ethnic group in past but the large number of people n the country were not belong to Somalia French British and Italians were also came to Somalia in the 19th century.However it is to say that the 1880s period for Somalia was taken as the good period for development. After the entrance of Italians and British people there the claims on the land started in this regard first claim was given by the British as the British Somali a land in 1886. After words the other part of the land in southern area claimed by the Italians as the Italian Somalia land after the second world war the British Somalia land become independent and again the proclamation was given in the 26th June 1960. After words there were many claims on the country's land had been taken place which from the very starting put Somalia’s development at the back.After the whole fighting about different claims by many countries on Somalia and the internal war a regional government was formed there this was not in strong financial condition an earth quake, which arose in the Indian Ocean and followed Somalia too. This was the natural disaster of 2004 and due to tsunami large numbers of people namely 300 were killed and many of the villages were destroyed. In the year 2006 the civil war begins in Somalia, which has stopped the large number of development in the country.Somalia became the victim of earth quakes and different diseases like aids a nd hunger in times of civil war and child mortality are the reasons which left the country too far away from the developed countries of the world. Because of these so many reasons the financial health of the country is still not in the position to define however the developed countries of the world are playing great role in increasing the financial development in the country, but the think lacking is the natural aid also they have lack of so many resources to develop the country.Financial Development in SomaliaDue to war and hunger problems it is hard for any one to note down the financial growth o f the economy in 2005 the GDP growth was 2.4% in Somalia which was estimated by CIA. Main exports items belong to live stocks, which are bananas sugar maize fish and sorghum and the small industry of Somalia based on the agricultural products.Private Sector Development in SomaliaThe private sector development in Somalia is so hard to explain it was so worse in past but now it is to say th at it is getting developed day by day. The private sector development includes business policies, the financial sector policies and institutional policies, but the thing which is required is the skilled people who are able to put forward such development policies and convert them in the basic development of the country. The basic idea of private sector is to develop the relationship of the country with other countries of the world. It includes:l   The relationship development good relations with the neighbor countries in order to increase the export import conditions.l   Attracting the foreign investors to make investments in huge amounts to the country which will ultimately results in the development of the countryl   The association formed which is the Somali foundation services association the private sector includes the responsibilities to increase the development of this association in order to increase the business issues and development of business plans with the other business companies out side the country also.Development of Banking Sectorl   The private sector is working to form a firm which is capable of doing the work of central bank development the development of central banking in the country policies of the bank guidelines the rules and regulations of the bank the provision of funds and bills for the   allocation o small businesses there advancement and the increase of organizational structure of central bank dealing with the problems  Ã‚  Ã‚   of financial and accounting controls the private sector is monitoring the role of central bank by the appointed firm.l   Because of fisheries livestock’s are the basic items of export so the private sector is getting developed to increase the development of these sectors in order to make bounce in exports and the financial health of the country.l   The private sector is now developing such institutions under the government provision of funds for the training of students in the mana gement business finance accounting scientific official works administration works engineering works and medical too. This includes the development of women too, including the women trainees in order to enhance the development of the country every body should play a role otherwise the development would not be with high sense so the development of women in the country is also necessary for the development of the country.l   The private sector is working for the development of the central bank of Somalia and the financial sector too. Training and orientation programs for the workers through which increase and encourage the idea of increasing the financial growth of the small and large business which in future results in the development of economy an financial development of the country.So it is to say that the private sector development is going on in the country but not with high sense because of lack of capital and other resources the country is developing low but it is expected th at the private sector will be strong in future to perform more and big operations.Somali Institutional and Capacity Development ProjectThis is the project which is based on the institutional development of Somalia. The lack of institutional and organizational development leads the country with low growth of the financial sector the association is formed for facing the challenges of low institutional developments to raise funds for such institution and increase the organizational structure in the country. The project is made to develop the Somalis human resource management program for this reason the project is made to develop the management training programs for the increase of human development and the increase of administration skills in the human.In 2006 this project SICAD has achieved many goals related to the institutional development, which were the primary objectives, and the help of this project achieved these in a very smaller period. The increase and advancement of public private relationship this project team is working with the university of Hargesia the project is also working as the team which is capable of evaluating the skills among public and the motivational government health programs in order to make public aware of every disease its danger for health and the cure this working is based on the control of HIV AIDS in Africa.â€Å"The PRSL Program has a two-pronged approach to working towards the reduction of poverty – more upstream, at advocacy for MDGs and poverty analysis/monitoring and, more downstream, at community driven recovery. Human Rights, Peace-Building, Gender, HIV/AIDS are addressed as cross-cutting issues†. (Poverty Reduction and Sustainable Livelihoods(PRSL))African Development InstituteThe African development bank is performing the function as an institute to enhance the training program among the general public the capacity development which includes the development of organization institution the society develop ment in order to increase the role of general public in the making of financial condition better for this reason the bank is performing the function of there is agreement that macroeconomic stability is critical for the growth of financial sector services. â€Å"Countries should adopt appropriate macroeconomic policies, encourage competition within the financial sector, and develop a strong and transparent institutional and legal framework for financial sector activities. In particular, there is a need for prudential regulations and supervision, strong creditor rights, and contract enforcement†. (Financial Development in the Middle East and North Africa)It is to say that the financial sector development is responsible for the development of economy as a whole those changes which are not in the control of any one only the financial sectors brings such changes for the better health of the economy with out such developments it is hard to say that the economy is developed and if the economy is underdeveloped it means the country financial sector is underdeveloped it is not so strong to perform the functions as the financial sector of developed countries of the   world. This development for African countries is also very essential like in Somalia because of so many crisis the country's economy development rate is so low as compared to the other countries of the world.Banking Sector Development in SomaliaAs the position of economy in the past years was so worse so one cannot easily judge the banking sector development in Somalia it needs the full concentration on the history of the performance of Somalia national bank which performed the functions of commercial banking system in the past. After the mergers and financial development the Somalia banking sector divided in to two major categories named Somali commercial banks and the Somali savings and credit banks. After this division the Somali national bank controlled its workings to the functions of central bank only.In the view of international monetary funds, these are the basic things fore the financial sector growth and development. ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Monetary sector ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Regulation of policies ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Non-banking financial sector policies ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Development of institutions ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   GDP and GNP measurement tools.What of the role of the international institutions? Here again, views varied from those who urged the World Bank Group to stay out of Somalia to those who were desperate for aid agencies to come in. Some believed that Somalia needed concessional loans, others that Somalia should never take out a loan againThe lack of private sector development in Somalia is due to the lack of security and law enforcement agencies. There the fights and political instabilities brings so many problems for the banking sector to develop also as the banking sector o f every country requires the full concentration on the development of institutions and public awareness programs, but Somalia is lacking in such capabilities the parties conflicts and other conflicts makes the banking sector so weak as the foreign investment is unpleasant in this sector.The financial institution today requires the large number of financial security from the government and the security for foreign investments. These are lacking in Somalia so no body wants to invest there whose currency rates are low and the economy is less developed. In the view of many peoples the government should work to encourage the development of those sectors, which are associated to public also.How to Improve Development Strategies?The thing which wants a complete discussion here is not that how Somalia developed how it survives within the developed countries but the thing is this which one is lacking which thing is important for the development of the country and which is not, which sector o f the country needs high development and which sector wants low. The answer to all these questions are in the hands of policy makers in the hands of developed countries of the world, like what has to be done by the united nations for the achievement of development in Somalia?Somalia is no longer included in the annual United Nations Development Program (UNDP) Human Development Report world ranking. If it were to be included, according to a special report on Somalia, it would sit firmly at the bottom in 175th position, below war-afflicted Sierra Leone: ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Peace and security, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The stoppages of arm forces to take part in Somalia affairs, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The capacity enhancement, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Development of public sector, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Need of foreign aid to develop Somalia training institutions, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Food assistance and othe r aid programs from international community, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The development of live stock sector, ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Illegal activities control.These were some of the main things, which need full concentration from the international world to look at. These issues required the attention of developed countries of the world in order to develop Somalia. for any country’s private sector development it is necessary to bring the public sector development for the advancement of economy if one or more then one sector is lacking in development the country’s economy remains at lower position and the country’s financial sector also not developed.Socio Economic Development of SomaliaUnited Nations development program to cover the economic policy to develop the economy in this context in the year 2002 World Bank and UNDPS combine’s efforts brings the socio economic survey which is taken from each house hold living in the country. T his data which is on the socio economic development of the country is based on the analysis of most of the economy gaps and the need of resources through of the country. The view of making such efforts were to brought forward the financial and investment institution for the socio economic development and the improvement of employment housing and demographic factors.It includes the things like the participation of women’s in the development of the economy and the role of institutions to increase the training and attraction of foreign investors towards this less developed economy. World Bank monitors whole of the function of collection of data regarding the economy of the country this report brings large number of those things, which are not to be brought up with the help of any other association.The Socio-Economic Survey 2002 is the first in a series of joint World Bank / UNDP statistical reports. The data collection and statistical capacity building will be further strengthen ed under the joint World Bank / UNDP re – engagement strategy for Somalia, with the collaboration of other development partners.These efforts put forward the efforts of women to the Somalia economy that is their participation in different public and private institutions like many women take part in police forces. The United Nations development program was based on the Somalia economy but also on the development of general public there and their participation in every financial and non-financial sector of the economy.Somali Financial Services AssociationThe Somali financial services association was formed in December 2003 in London. This conference was held for evaluating the problems regarding every sector of Somalia economy; the conference was attended by the developed countries leaders who then launched the Somalia financial association. The conference discussed the micro and macro faces of the economy. This association worked to support the industrial development in the ec onomy and the needs of setup anywhere in the economy and worked as a team in foreign countries to bring forward the industrialization and investment of the economy. This association also serves as the regulatory body in the absence of government in Somalia.Foreign Aid and SomaliaDue to the loss of large development programs in the past whose main reasons were the failure of development due to the internal fighting in the country that made Somalia the less developed country. In the day of 1970s to 1990s Somalia had passed up the years of hunger which was up to that extent that no body could think of living in Somalia the problem of hunger aroused in the economy.Due to internal crisis and these crises were spread up to that limit in which many children’s and women’s were killed due to the lack of food support, many disease broke up in the country aids HIV hyper Titus, the people were not had such programs then or the resources to protect themselves from these problems. A fter that worse condition out side world provides the financial assistance in the form of foreign aid to this country, this foreign aid was given by the developed countries of the world aim was to protect the life of people there.Large amount of foreign aid provided by the United Nations and the other developed economy, this foreign aid after the large efforts covered the food problem in Somalia but not that loss of lives and loss to the economy which occurred in those worse days. For this reason many foreign aid offices were established in African countries in Somalia Ethiopia and many other small countries the purpose of making such foreign aid offices were the provision of food and shelter for the people of Somalia.These are playing the role of emergency relief camps. in this role there are so many countries of the world who plays a very great role in the removal of hunger from Somalia these countries includes united kingdom united stats of America Pakistan Russia Germany and so many other countries of the world provided food and forces as the way of supply of food assistance. The German humanitarian agency called diakonie played an important role in the provision of aid to Somalia people they provided the aid of 100,000 Euro in order to get rid of food problem in Somalia. The United Nations refugee’s agency provided the 750,000 Euro to Somalia.Somalia Aid Coordination BodyIt is the Somalia aid coordination body that is formed by the United Nations agencies individuals who provided funds for the development and removal of hunger from Somalia and NGOs. In these donors the United Nations organization is one of the main donors of funds in order to get peace in Somalia. The funds were provided and still providing to Somalia for the rural development the development of country trade that is the country truly based on the live stocks and the agricultural products that’s why the United Nations efforts were comprises of the advancement of such program s through the supply of funds, which make the financial problem limited.After the several efforts made by different big countries of the world there were too much protection to the public was given and the problem of food was removed through the help of developed countries of the world. One of the major thing which is important for any country’s development is the investment so the united nations agencies work to provide the financial assistance in the form of increase in investment policies also. European Union played a very important role in making the financial position of Somalia and efforts to form the structure of the country like the other developing countries one the example of their effort is the city Berbera.In the year 2007 the European Union has given 4 million aids to Somalia for the removal of hunger and development programs. Also they have provided funds for the Ethiopia and Kenya, which are situated near the Somalia. Thus the aid was given to African countries by the European Union to improve their financial health.However as the financial growth of the country always gets better with the role of public in the country and the role of government Somalia was the country which didn’t had the proper governmental system in the past that’s why the country is still lacking in many things as the developed countries of the world there are no such developments in Somalia are made because of the lack of funds even if the European countries and other donor countries have provided a lot but the thing is country’s internal resource lacking which is due to the lack in industrialization and technology with these the training and education programs among public.Beside these foreign aid providence one more thing which was done by the anti parties in Somalia was the kidnapped of many soldiers from different countries of the world who were providing the assistance to public because of these problems many countries bring back their soldi ers from Somalia and their large number of soldiers were also found dead because of this behavior many countries aid stopped in Somalia however now the crisis have been controlled by the European agencies and the forces from other donor countries of the world.This is horrible news. We are so sad for the aid workers who are helping our people. We will do everything possible, even if it means using force, to release the hostages,† Punt land’s interior and security minister Mohamed Abdi told reporters.Concerns PolicyThe policy was made to resolve the issue of food and shelter among the public. this was the policy which made the emergency workings to get funds from the donor countries for the development programs which includes the provision of education health HIV and aids control livestock’s development food crisis in Nigeria dealing with the victims of south east Asia earth quakes tsunami this is the policy through which the evaluation and allocation of needs are located and the supply of assistance given to those sides in Africa.The policy explains the poverty effects on the economy and how it can be removed through making different development programs, which brings forward the financial development of the economy. The foreign aid to Somalia was provided from 1960s by the United Nations and still it is working. United Nations provided largest aid to Somalia but some of the Somalis think that the European Union countries have provided large number of aid to Ethiopia but not to Somalia.Aid Programs for SomalisThis aid program includes various policies and the formation of various agencies for the provision of food to Somalis the international agencies played great role in the provision of aid to Somalis. Somalia is the country which is without the government. The country has no central government system that’s why it is still in the position which it is in the past it is the country of crisis hunger diseases but why it is in this form ? Large countries of the world have made so many efforts to reduce the country’s conflicts but they are failed even the people don’t believe on one other the main reason is hunger they are facing lack of resources made them to fight for their survival.The government in Somalia after the formation was not so happy about the United Nations aid to Somalis. They think that they are not going to help Somalis and they are against Somalis. They want to indulge in the country’s affairs they think that large aids are given to the other countries and Somalia is still in the same condition as it is in the past.According to the view of Somalia prime minister he said that the United Nations and other European countries have lost their powers over Somalia during the last 15 years of its civil war. Most of the Somalis think that the governments of other countries are providing them the aid in their own interest they are interested in taking part in Somalia’s government and other affairs. Large number of aid controlled by the government agencies in Somalia and the us ambassador reported that the aid had been taken in to control by the government agencies and they wanted to stop the air ways through which the aid is supplied to the public.Financial Development and Foreign AidAfter so many crises there are some of the objectives which have been taken in to control by the European Union country’s regarding the Somalia development. However, the food crisis removal programs have taken many donations from the developed countries of the world that has broken the other financial development chain of the country. This breakage is due to their internal crisis, the changes in economy has been done but they are in very small amount as still the fight is not under control.The peoples are distributed among many parties and those parties are not in support of the other countries of Africa like Ethiopia Nigeria Kenya .the financial development program in So malia needs the assistance from the European union but due to their internal crisis now the European union countries are also not playing that role which they have played in the past, as the financial development needs the making of the financial institution and increase of investment opportunities but this is not possible with out the removal of internal crisis in the country because development always needs unity of ideas about growth of the economy.Problems Regarding Financial DevelopmentThe financial development in Somalia needs too many funds and donations from the outside countries. The developed countries of the world have made efforts to cover the problem but it still exists. Every country’s financial development needs some capital to grow up tin that less developed country like Somalia. There is the lack of industrialization and the new technology too so the development of any sector can easily take much of the time and donations to develop however there is lack of b asic needs too.These are those problems for which no one can go forward with out the solution of them. These problems are associated with the public and government institution the lack of necessities of life how can any country fulfill the need of the public there is only one thing possible the solution of the problem of public issues or the solution of the problem of government issues everything’s cannot be developed by any one at the same time because for any country the financial development needs.Peace and Prosperity, Security, Government StabilityThe country’s development must go forward with such things if these are not present in the economy. It means the development of the economy remains low and the economy remains in the same position as it was in the past development of countries should bring g by the people of country with the cooperation of government with the provision of ways to develop, but unfortunately the less developed countries specially in Africa are the poor countries there people are not in the position to fulfill the desires as they want they live from hand to mouth.Trade FacilitiesExport and import are the main part of every economy like the other developed countries of the world, which have much export and import in order to go forward. The countries are dependent on their own resources and the developed countries have made so many products from those resources. First thing is this like Somalia and many other poor countries they don’t have such facilities like the foreign investment in the country. The dependency on internal resources as the Somalia export dependent on their agricultural products but they are lacking the skilled force to compete the entire world education is one more problem which is the biggest hurdle in the way of development. To every country’s development knowledge and skills are necessary for development these skills are evaluated from the country’s people.Social Problems in So maliaSomalia is the country which has faced many problems in the past. They don’t have much capital to develop any sector of the economy they are lacking of work force skills and new technology why they don’t have such facilities? Answer is the lack of social security and social development country always develop through society development but these things are not present in the less developed countries the societies are not developed in that sense as the highly developed countries people are.The people of Somalia are as backward as compare to the developed countries of the world and they don’t have enough money to full fill their desires because for m ant y years they lived in hunger and fight they do not know to survive in the open world. They have such problems like health education and security for these reasons they have been suffered from the problems of diseases like HIV and Aids after that the European Union have provided them much donations to cut off these problems.Economic Growth of CountryThis is the essential part, which is placed after the development of society and the development of minds of the people increase in their skills knowledge about different subjects and devotion to work this development of the country needs the development of:Private sector, The banking sector development, Infrastructure of the country, Transport, Industries, Investment opportunities, Credit institutions, Law enforcement, Social programs, Job opportunities. Development Projects in SomaliaAfter the problems from many years now with the help of European countries Somalia is capable of making some projects and government is doing some efforts to fulfill these projects these includes:Development of FarmsFor this reason a project is made by the Somalia government with the help of foreign governments. The development of farming in the country as the whole export lies on the agricultural products of the country.Education ProjectFor improving the socia l health of the country’s people government is now making the project, which is based on the education of public this project t is suggested for Togdheer region of the country.Put Land ProjectBeside the problems of education health is also the other issue of Somalia people so the efforts have been done to remove such problem for this reason government has made the Put Land project which includes the development of infrastructure and the solution of health issues like the provision of clean water to the people and sanitary conditions to protect them from diseases.Business Sector DevelopmentIn the north west of Somalia a project has been made to fulfill the business sector demands like the development of small industry in the country and the development of banking sector too.Health ProjectsAs the Somalia people have been suffered from various diseases in the past, which were the killer disease so efforts have been made in order to solve the health solution of the public. This p roject is based on the development of health of peoples there a project has been launched for Togdheer and Awdal.Contribution OF W.H.OThe world health organization is making much effort to compete the health issues in the country. It includes the development of people by providing them the awareness about different diseases and their symptoms cure and other related issues. The European Union countries in the past years have made so many efforts in order to reduce the health problems from the country and they are successful to some extent. Now the programs have been introduced for the polio HIV and aids awareness among people.â€Å"Civil war, external intervention, clan conflict and poverty have combined to turn Somalia into a â€Å"failed state.† Somalia has no central government. Three principal factions (none of which is recognized by the United States as Somalia’s legitimate government) hold sway in separate parts of the country. In addition, numerous warlords cont inue to vie for dominance at the local level. Hundreds of thousands of Somalis live as refugees in neighboring countries, and many others are internally displaced. The economy is underdeveloped, with drought seriously affecting the country’s pastoral and agricultural base†. (Weak States and Terrorism in Africa: U.S. Policy Options in Somalia)United States Policy toward SomaliaThe United States have played a great role in the removal of many major problems from the Somalia country but still there are some major issues exist there. These made United States to set some priorities and goals to cover the major problems regarding financial development there. Now United Sates have made three goals to develop Somalia which are as under:Removal of Terrorism in SomaliaMain reason for the economic backwardness is the terrorism there for these reasons no foreign investments have been made there now the united states are making efforts through the help of forces of different develop countries to promote the development by removing the terrorism there by which the country’s private sector should be develop.Government StabilityThe formation of government is main thing for every country development as Somalia has been  Ã‚   faced the problem of no central government in the past now the United States and other European states are making the plan to fulfill the goal of government stability and peace in Somalia.Challenge to Face Internal CrisisThe United States plans include a major goal that is to face the internal fights and crisis of the country and develop the country from high sense to make control over and such internal crisis which are the hurdles in the way of economic development of the country.ConclusionThus from the past this is the country which have faced so many crisis and is still facing but these crisis put the Somalia talking in front of the developed countries of the world who have made a tremendous role for covering the problems there. Ho wever, still so many problems exist there but no one can make any thing better if the people living there are not be the support from the donor country. However the United Nations and other agencies from developed countries of the world have provided their forces and much foreign aid to develop the country.There are so many plans and projects made for the development but these all are under construction, not fill up. However it is to say that these plans will be fulfill too nearer in the future but the main problem which is present in the way of development is the misunderstandings among the general public government and the donor countries, for many years Somalia has faced too much problem of hunger so they are not in a position to develop their country with out developing them selves. Chairman Feingold who is the member of US peace committee said:â€Å"Somalia did not become a â€Å"failed state† in a day. Similarly, solving the governance problems that make Somalia an att ractive potential home for terrorists will not happen overnight. We have made a start. I am cautiously optimistic that the United States, Somalia’s neighbors and the international community can make a significant contribution to helping the Somali people regain functional government, and that the conditions that make Somalia attractive to terrorists can be overcome†. (Weak States and Terrorism in Africa: U.S. Policy Options in Somalia)Works CitedArabDataNet.com: Country Guide: Somalia: Snapshothttp://www.arabdatanet.com/country/profiles/profile.asp?CtryName=Somalia&CtryAbrv=so&NavTitle=Foreign%20Investment Accessed, May 12, 2007Financial Development in the Middle East and North Africahttp://www.imf.org/external/pubs/ft/med/2003/eng/creane/index.htm Accessed, May 12, 2007Poverty Reduction and Sustainable Livelihoods (PRSL)http://www.so.undp.org/page.asp?id=668 Accessed, May 12, 2007Somali Institutional Developmenthttp://www.so.undp.org/page.asp?id=662 Accessed, May 12, 2 007SSRN-Banking Development in Somalia by Arnaldo Maurihttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=958442 Accessed, May 12, 2007Situation Reports: Somalia, UNDP Somalia Quarterly Update – Apr 2004http://www.reliefweb.int/rw/rwb.nsf/AllDocsByUNID/a5444022715893a785256e7e006d3720 Accessed, May 12, 2007Weak States and Terrorism in Africa: U.S. Policy Options in Somaliahttp://www.state.gov/p/af/rls/rm/7872.htm Accessed, May 12, 2007World Hunger Notes–The Road to Hell: The Ravaging Effects of Foreign Aid International Charity by Michael Marenhttp://www.worldhunger.org/articles/books/maren.htm Accessed, May 12, 2007