Impacts Of Tourism Industry In Asia Pacific

Impacts Of Tourism Industry In Asia Pacific Tourism industry nowadays is one of the worlds largest and dynamically developing sectors of external economic activities. For most of the country, tourism industry is the major economic and social phenomenond social phenomen the ground of and it has been predicted that it could be the largest income-generating source for a country in the coming year because tourism industry is the three main international industries along with the petrol and motorized vehicles. Southeast Asia is full and rich with the cultural and heritage sites which are worth for preserving and conserving. For the people in the country, these places help them to understand about their past, enrich their present lives and lay the foundation for their future generations. They inhabitants continue to practice and learn from their traditional beliefs, social practices and ritual and to use traditional management regimes to sustain the monuments and surrounding landscape that have nurtured them for several generations. Tourism is one of the worlds most profitable and fastest growing industries, if proper manage by the government of a country, which can be the effective tool for the conservation of culture and heritage sites and nature environment. It offers many economic benefits to the public and communities living in or near the cultural and heritage sites in terms of working opportunities, vitalization of the traditional crafts and cultural practices and opportunities for the inhabitants to express pride in their culture. Problem statement However, the uncontrolled tourism can also cause irreversible damage to physical and intangible heritage resources. These cultural and heritage sites in Southeast Asia region are under threat from different aspects and issues, such as the passage of the time, the forces of nature and disaster, modernization, uncontrolled development and population growth because these cultural and heritages sites is the powerful and strong magnet for the tourists who is interested on the rich cultural experience. Due to the high growth and development rates of tourism industry, volume of the foreign currency inflows which is considerable, infrastructure development, and introduction of new management and education experience dynamically might affect several different sectors of the economy, which might cause some impacts to the social and economic development of the country as a whole. This research intends to investigate and search on what are the impacts that the countries in Southeast Asia are act ually facing, and examine the impact and how does the impact affect the countries in Southeast Asia. Also search on whether the government come out with any way or method to overcome such impart in the country. Research objectives Due to the preserving and conserving of the cultural and heritage sites, every country will come out different ways of management. Tourism industry will affect various aspects and issues within a country which bring a lot of impacts. Then publication is now focusing on the impact of tourism in every Asia pacific country. The uncontrolled tourism will cause different damages and impacts to both the economy and social sectors. To study on the impacts of tourism industry in Asia pacific region, may help to improve the advantages and prevent the disadvantages within the country. Research question -What are the impacts that the countries in Southeast Asia are actually facing? -What is the most common impact that the countries in Southeast Asia is facing? -What is the cause of the impact? -How does the impact affect the countries in Southeast Asia? -Is there any way or method to overcome the impact? Hypothesis statement Impacts can be divided into positive and negative impact. According to the impact of tourism in each country, it possibly will greatly affect the country. Normally the economic impact of tourism in each country is positive impact. As for social and environmental impact, these possibly will cause many social issues and problems if the government of the country did not handle it properly and apply or set any law enforcement. The morality in the country might get worsen and tourism industry will fall greatly due to the social issues and problems. Tourists would not like to travel to such a place which has many issues and problems. Environmental impact of tourism is more likely that the cultural and heritages site will be destroy by the exceed amount of tourists and also those who do not have the perception of recycle. The discharge of sewage will increase and it will destroy the beautiful natural environment in a country. Once the government able to sustain the environmental and stabili ze the social problems and issues, then it will improve the tourism industry and attract more tourists. Theoretical and conceptual framework The purpose of this research paper is to research on the positive and negative impacts of tourism in Southeast Asia. The report would like to inform about the impacts that tourists might have to aware of when they travel to Southeast Asia countries. This research proposal is mostly use the information that can be obtained from some journals and websites. From those journals and websites, researcher is able to obtain the information on impacts of tourism in Southeast Asia countries such as Malaysia, Singapore, Thailand, Burma, Indonesia, and Philippines. It is important for researcher to use the true information and facts in order to convince the tourists about the positive and negative impacts of tourism in Southeast Asia. By informing the tourists about the impacts, then the tourists can have more awareness in their tour and travel in Southeast Asia. With the true information and facts can also know that how the impacts will affect the economic, social, environmental and etc. sector. It is also to research on what actions have been taken or rules and regulation or law enforcement by the government of the countries in Southeast Asia. View on tourism in Southeast Asia Impacts of tourism in Southeast Asia Impacts of tourism in Malaysia Impacts of tourism in Burma Impacts of tourism in Thailand Impacts of tourism in Singapore Significance of study The purpose of this proposal is to find out the impacts of the tourism in Southeast Asia countries. Most of the social impacts of tourism in Southeast Asia are facing the sex tourism which is actually quite serious. Sex tourism is one of the problems that spread disease and from the research, there are some say that tourists from other countries do brought in the disease sometimes. There are also positive impacts of tourism and most of the country gets benefits from the tourism industry. Economic do improve and generate many jobs opportunities from the tourism industry. But it also bring harm to the environmental impact because the rapid growth of tourism industry, the government of the country will build more infrastructure in order to increase the carrying capacity of the tourists every year. Scope and limitation This research paper is only emphasizing on the impacts of tourism in Southeast Asia. To understand the view from the people so I actually trying to get some books or journal which specify on certain topic. The collection of the date is restricted because there are many books and journals cannot be read due to the copyright issues. Therefore, researcher gets as many as data and read. After read then try to elaborate and briefly explain on what written on the data. Basically the research is done purely based on the researcher own opinion and thoughts from the information and data obtained. All the data and information are limited and can be found and obtained from the websites and journals which are free. Chapter 2: Literature review 2.1 Introductions on impacts of the tourism Tourism is greatly affected and impact on the local communities in every country in the world. It can be both a source of income for a country, understanding towards a country and also a destroyer and corrupter of the cultures, social and environment in a country. The impacts of tourism are a popular and common topic in every country since tourism industry is now one of the largest industries in the world. Usually the most common impacts of the tourism industry we can found are the economic, environment, social and health aspects. By using the literature about the tourism as a baseline, should be able to found some impacts in each of the country and try to identify ways in whether these impacts can be affect positively or negatively. Tourism is able to bring benefits to a society or country in variety and different ways, yet there are also some inevitable negative impacts of tourism. Tourists and visitors are actually stood quite an important role towards the impact of tourism in a c ountry. Tourists and visitors should be able to be attentive to the positive impact and aware for the negative side of the impacts. 2.2 Impacts of tourism in Malaysia Tourism industry has greatly impact on Malaysia because tourism industry is the second largest industry in Malaysia. The social impact of tourism which Malaysia is facing is the growing industry of human trafficking. Sex tourism is a very common negative impact which can be found in all over the Southeast Asia country. In the sex tourism industry, majority of it are children which below the age of 18. Exploitation is normally driven by the wealth, poverty, unfair development, races and gender discrimination, corruption of traditional and cultural practices, lack of political will to end it. Based on one of the journal, most of the Malaysian children and women are sent to Singapore, Hong Kong, Taiwan, Japan, Canada, USA, Europe and Australia for prostitution. Otherwise, women and children from China, Thailand, Indonesia, Philippines, Vietnam, Cambodia, and etc. are sent to Malaysia for commercial sex exploitation and the low income labour. Female from the village and rural areas in Ma laysia are also trafficked for the same purpose. There is a huge demand from the tourists who are intentionally travel for the sex tourism. Moreover in Malaysia, the illegal organized crime groups are believed to be involved in sending the Malaysian female and children to other countries and also receiving the illegal entry into Malaysia. When the sex tourism has been started in a country, the amount of tourists who travel for sex tourism will only increase and that will worsen the situation in the country. The government of the Malaysia should come out with some stricter rules and regulations in order to implement and enforce the rules and regulations to tackle the sex exploitation by prevent and tracking the victims from migrant workers and people arrested for prostitution. Government should also increase their efforts to prosecute and punish those who receive benefits and advantages from involving in the sex exploitation. Another than that, tourism industry has bring rapid damage to the ecosystem of the cultural and heritage, natural and popular sites. In Malaysia there are many beaches and Tropicana forests which are naturally and have many tourists every year. Many private or government company wish to get profit and they keep on develop on these natural environment. However, the uncontrolled development like building the mega infrastructure and resorts along the beaches has caused the major destruction to the natural environment. The discharge of sewage and rubbish from the development destruction of the ecological environment can also be the result of the development such as habours, resorts or airports that built along or nearby the beaches. Many organizations have pay attention on this aspect and issue and suggest that preserve and conserve the sustainable ecological environment than uncontrolled development and causing harm and destroy the ecosystem. Malaysia is a country that has different cultures since long time ago and the cultural mixing is very common in Malaysia. The mixing of cultural does help in improving the tourism industry. The development of the tourism has actually help in enhance the tourists perception to Malaysia. Tourists who travel for the experience of cultural mixing would like to travel to Malaysia for the different and various cultures. Yet with the different and various cultures, Malaysian is able to live in a harmony and peacefully which is actually can be the example or prototype to some other countries. Government of Malaysia will conserve and protect the cultural and heritage sites. This may help to local people and also the future generations to learn from their traditional beliefs and also social practices. Tourism industry also brings impact towards to economic sector. Nowadays the tourism industry is one of the largest industries in Malaysia. In year 2007, Malaysia started to promote their tourism industry with the slogan Malaysia, truly Asia. Based on the reports, the total amount of tourists receive is increasing year by year. Government decided to develop in the tourism industry and they promote the country with the slogan Malaysia, truly Asia because of the cultural mixing in Malaysia. The receipts from tourism are shown rapidly growth and the spending power is also increase. To many tourists, Malaysia is a shopping paradise which the exchange rate is considerate compare to Europe countries. There are a lot of shopping mall had been built in order to improve the economy of the Malaysia. Many resorts and hotels companies decided to invest in Malaysia due to the high growth rate of tourists. It can offer many working opportunities for the Malaysian and able to reduce the unemploymen t rate. All of these have the substantial impact effect on economy of the country. It is able to increase the GDP of the country, reduce the unemployment rate and generate employment, improving the foreign exchange rate and also the economy of country. All the industries which related to tourism industry could be also improve and lead to expansion. 2.3 Impacts of tourism in Singapore Singapore is a country which located at the south of West Malaysia. Singapore is one of the best cities in the world. Its economy is often ranked within the world top ten most competitive and innovative city. Singapore is a small but highly developed country and it consists of 75% Chinese, 14% Malay, 9% Indian, and 2% others. It is the same like Malaysia which is also the cultural mixing country. Singapore is a popular travel destination, and the tourism industry is one of its largest industries. Somehow, Singapore is also well known for the sex tourism in the country. Many tourists travel to Singapore will travel to the district which is actually well known for sex trade. In the district can actually see that there are female from other different countries who are working on the commercial sex exploitation. Based on the research, there are increasing numbers of young girls in Singapore are offering sex for sale. This is the negative social impact of the tourism because there are many tourists actually travel to Singapore and looking for the sex tourism. The sex tourism in Singapore is actually quite famous but however, the government of Singapore did not take much action. The government of Singapore came out with some law enforcement effort in control the amount of trafficking in persons in order to prevent trafficking, especially the commercial sex exploitation. However, the law enforcement doesnt seem efficiently and the sex tourism is still a serious issue and impact for Singapore. This may because the tourists that travel for sex tourism are quite in a big amount and it does help in improving the economy in the country. The GDP and economic in Singapore are always one of the top in the world rank. It has one of the busiest ports in the world and it is the fourth largest foreign exchange in the world. There are many international companies in Singapore which make it one of the busiest countries in the world. Based on the research, the GDP of Singapore is growing year by year. Recent year, there are some entertainments like casino resorts and universal studio grand opened up in Singapore and these sites have become another main tourism attraction. The opening of the casinos is able to attract many tourists who travel for gambling and it may strongly and dynamically improve the tourism industry in Singapore. In order to control the social impact of opening a casino, the government of Singapore comes out with certain rules and regulation to prevent the Singaporean from addicting to the gambler. For the local the entry fee SGD100 per entry will be charged whenever they want to enter the casino or purchas e the annual entry pass for SGD2,000. This is under the Casino Control Act 2006 and the government aim to reduce the negative effects of compulsive gambling. The two casino resorts intend to boost the tourism of the Singapore, they expect that it will generate 45,000 jobs and able to attract 10 million tourists by the year 2015. In economic impact, the government of Singapore handles the tourism well and it increases many jobs opportunities for the locals and also foreign workers. 2.4 Impacts of tourism in Thailand Thailand is a country which located in the heart of the Southeast Asia and it embraces a rich diversity of cultures and tradition. Thailand has the great and proud history of itself, tropical climate and renowned hospitality, the country is a never-ending source of entertainment and enjoyment for the tourists from all over the world. Like other countries in Southeast Asia, tourism is also the major source of income in Thailand. Tourism has been strongly promoted because the government of Thailand believed that tourism promotion will be able to generate the jobs opportunities, raise foreign exchange rates and contribute to economic growth and improved income distribution. In Thailand, the government is actually having the conflicts in water allocation. Thailand would face water crisis in the coming future if the government did not come out with any water management and allocation. Based on research, tourism industry in Thailand is relatively water-intensive sector. By focusing on the tourism industry, which mean the amount of tourists travel into Thailand will increase. Therefor the amount of water been used in Thailand will also increase because more tourists then the demand of water is higher. Tourism do brings a lot of destructive effects. Since the Thailand is having the uncontrolled development on tourism, the government trying to search for the less destructive way and method to reduce the level of destruction. One of the most intriguing sustainable tourism is the rural tourism. Most of the rural areas in Thailand are rich with the cultures, traditions and natural resources, which is able to become a tourism attraction destination. The economic impact of the tourism towards the Thailand is positive because tourism generates more job opportunities, raise foreign exchange rate, and economic growth. But these benefits are mainly for the urban society and city. It did not bring much benefit to rural tourism because most of the profit goes to the urban and modern cities. The profits earn from the taxes and fees return to government and government like not really invest in rural tourism. Most of the cultures, traditions and natural resources are in the rural areas. Therefore , the government of Thailand agreed that the rural areas should be preserved, and conservation of culture, arts, traditions and natural resources are promoted. With the growth in amount of tourists travel to Thailand, it may cause the heavy impact towards the environment. In order to increase the carrying capacity of tourists, the government of Thailand has created more infrastructures, transportation and other facilities which can cause environmental distortion. In Thailand there are a lot of jungles or forests which provide the activities such as jungle tracking and camping. This may affect and cause the pollution to the natural environment. There are many disposal of human waste and discharge of the sewage within the jungle areas and it will cause the environmental impact. The government of Thailand should set the strict rules and regulations in order to protect the natural environment and prevent the increase amount of disposal of human waste and discharge of sewage. Thailand has long been promoted as sex capital in the world. There are many tourists travel to Thailand for the purpose but it brought a lot of problems and impacts especially on the spread of AIDS. The tourists who had HIV might travel to Thailand for sex tourism which actually brought up the cases of AIDS. Government realized the issue and started to promote the use of condoms, in order to reduce the cases of AIDS. Yet the AIDS cases are still very common in Thailand nowadays. 2.5 Impacts of tourism in Burma Tourism in Burma can bring benefits in a various ways like it helps in opportunities for the economic stability and cultural exchange are severely limited. The tourism in Burma is actually supporting the opportunities of economic stability for the local people. This includes all infrastructures which are built for tourism industry such as patronizing hotels, restaurants and etc. Burma is a country that rich with tradition and cultures and so there will be a lot of different and various handicrafts. Tourists shall buy those handicrafts when they travel to Burma which is actually able to improve the welfare of the locals, they are all generally associated with increased opportunities for women. Burma considered as a country which isolated from other countries, so most of the time the Burmese people will never be able to leave their own country. Whenever there are any tourists from the other country travel to Burma, then only the Burmese people able to learn and experience the cultures from other countries. Tourism industry in Burma is able to bring the Burmese people the cultural exchange and they are able to learn the cultural from outside. Burma is also a country which rich with different and various tradition and tourists who travel for the culture experience, they will be able to learn and study on the traditions and cultures in Burma. It can help in create the awareness of the tourists towards the Burma and there will be increase in the amount of the tourists in the future. Somehow, there are some inevitable negative impacts caused by the tourism in Burma. Many of the tourism association in Burma are run by the government. When a tourist spend money on those government run hotels, using government public transport, employing government tour guide, the income and revenues will go directly to the government which do not benefits any of the citizen and local people. The tourism industry in Burma is actually facing a high degree level of leakage. There are some foreign companies in the economic industry of Burma, and most of the economic leakages are caused by them. They involved in import goods from other countries, international marketing cost and the interest payment which will cause the currency leakage from Burma to other countries. Chapter 3: Research Methodology 3.1 Research Philosophy In this chapter the researcher will briefly explain the ways of the research obtained for this proposal and also which method will be used in collect the data. 3.2 Research method and research design This research will be done using a significant common research approaches and the methods will be used is the qualitative method. 3.3 Sources of data The research only obtains the data with the secondary research which involve the valuable information regarding the facts and true information on impacts of tourism in Southeast Asia. Somehow there are limitations from getting the primary research, so researcher based on own experience traveled to these countries and write for the own opinion. 3.4 Secondary Research Secondary research is normally done before the conducting the primary research. The research for this paper is involved a collection data form different books and journals which can be found from the internet. This research proposal is written based on the data and information got from the books and journals and add on some own opinion.

Security and Privacy in Workplace

1. 0 Introduction Whalen and Gates (2010), define monitoring differently in their article. They define it as a method and procedure of examining the workers in an organization and study their constant events intended to guarantee that together the protection of employees and requirements of the employer are met. Nearly all companies nowadays take videos of their employees, they read their emails and monitor their Web surfing. This can be done surreptitiously and some organizations are honest about it Chan et al. (2005). Privacy is one of the most important things that are immensely fitting to be something of the past.In general companies are permitted to observe employee activities by the courts. Private companies have been setting rules in situations when employees are taken into service for instance contracts that affirm that they will be monitoring employees’ use of the Internet or any company tools (Chieh and Kleiner, 2003). Efforts have been made in arrangement for laws t hat protect business and the employees, regrettably most current court cases have been deceiving evidence in the eyes of the magistrates thus confidentiality or privacy laws have been unsuccessful for employees.It has been recommended that government, big firms and industries and health care systems should have the capability to tape and study workers activities as it is a benefit to research and development for several years. Most legislation is the same opinion that laws should be set in place even though the breach of human rights forbid them from approaching the issue to a law level (Welebir and Kleiner, 2005). Sadly, comprehensible defenses of privacy opposed to security may never be evident from the view point of the law.Employers’ main apprehension is the decrease in productivity, virus attacks/ damaged equipment (i. e. computers), legal charges and loss of classifies data. Employees’ major worry is incursion of their privacy, mistreatment of control and precisi on in their work. A survey conducted in the year 2000, is that sixty two percent of the employees use Internet resources once a day for their private reasons and twenty percent of them use it for at least ten times.This is why employer is at unease because a large number of workers are using company property for their own use and not for the business purposes. According to Watson (2002) sopports the idea that productivity is what most companies are concerned about such that if employees use them for their own private uses it will negatively affect productivity. It is compulsory for them to put regulations and policies that will help them monitor employees and their activities during working hours.Some of the main things that companies use are telephone monitoring particularly when personal calls are made, electronic surveillance, drug testing and verification of emails sent externally for private reasons. Reasons why companies make use of policies is for the reason of a decrease in productivity , sensitive material which arise from unpleasant email usage, workplace accidents caused by prohibited drug use, employees bitterness over monitoring of computers and sexual harassment complaints prompted by dating among workmates. 2. 0 Research Objectives R01.To identify if security and privacy actions affect things like productivity in the workplace/organization R02. To state some of the security and privacy actions that some companies are implementing in the workplace R03. To analyze whether organizations nowadays are focusing more on prioritizing their security initiatives thus undermining their employees and their personal lives R04. To evaluate if companies are using the right tools, technologies and methods to maintain good quality security and privacy within their organization 3. 0 Research QuestionsRQ1. What do organizations hope to achieve by implementing security in their companies? RQ2. What effect does security and privacy actions have on productivity in th e organization? RQ3. Do organizations of nowadays focus more on prioritizing their security initiatives hence undermining their employees and their personal lives? RQ4. Do companies use the right methods, technology and tools when they choose security and privacy as a priority? 4. 0 Hypothesis H1. Security and privacy actions increase things like productivity in the workplace. H2.Telephone and email monitoring, monitored computer web use and surveillance cameras are some of the security actions that some organizations are implementing to their workers. H3. Organizations nowadays are more focused on prioritizing their security initiatives thus undermining their employees’ personal lives. H4. For a company to maintain good quality security and privacy within their organization they have to own the right tools, technologies and methods. Theoretical Framework Workplace performance Security and Privacy in the workplace Priorities of the company such as productivity and protectionT he independent variable is security and privacy implementation in companies and workplace performance is the dependent variable. Priorities of companies such as productivity and protection are the controlling variables to the results. 5. 0 Achievements gained From Implementing Security and Privacy in the Workplace Organizations hope to achieve a better performance from their employees when they implement security in the workplace. Most companies today in most parts of the world do observe their workers because they have reasonable reasons for doing so.Since employers are accountable for their employees they have to provide them with a safe and a secure workplace. By monitoring or surveilling employees, employers hope to achieve several things such as employee or customer satisfaction, protection of the company’s confidential information and prevent trade secrets from leaking out, non-offensive material from emails and the internet, high performance from the network and the sy stems and to boost employee productivity (Vorvoreanu and Botan, 2001). 5. Non-offensive material from emails and the Internet According to Lee and Kleiner (2003), employees are responsible for all their workers during employment hours such that even any of the workers happens to send offensive information/materials and they happen to offend the receiver, the employers are the ones who will be liable to this course of action. If the material that would have been sent is found offensive for certain then the company can be sued which can affect the companies’ reputation to a greater extent.To prevent such cases most companies have seen it fit to take the initiative of monitoring each and every email and web use by the employees. 5. 2 Prevention of trade secrets from leaking out According to Paciniet al. (2008), there are several physical actions that employees consider when doing an internal control to safeguard trade secrets of the company. Such actions include a restriction on accessing certain premises (use of key cards), locks for all file cabinets, surveillance equipment to see all movements and passwords for accessing computers.Monitoring employees especially when it comes to trade secrets boosts productivity because employees who have intentions to harm the organization are quickly detected and those who are loyal to the company will work to their maximum potential because they know that they are safe. 5. 3 High Performance from Network and the systems of the Company Companies do not only monitor their employees just to check if they are doing work properly. They also monitor them in order to know if the network and system performance is not being taken advantage of by being used for personal use hence a decrease in productivity.If a computer network is efficient it is of a great advantage because it increases productivity in the workplace. If a computer system is poor it can be a great loss to the firm because productivity can decrease which result s in loss of customers and profits. Most employers really consider the network bandwidth traffic; this is related to employees using the network for personal use . These activities include downloads which decreases network and systems performance, also sharing and use of large audio and video files, surfing the internet and personal emails which are of high volume.All these actions by employees can cause the network/system be attacked by viruses which may cause it to be disabled (Trim, 2005). Secondly, if the bandwidth is used for purposes that are not work-related somehow it would be an expense that could have been avoided and to make matters worse the expenses that are incurred do not contribute to the wellness of the firm (Strategic Direction, 2009). For example nowadays most organizations are seeking to adopt the Web 2. 0 technologies for the sake of privacy and security of their companies.This type of technology according to Almeida (2012), it enables the employers to prevent d ata loss which would have been caused by inappropriate use of social media applications such as YouTube, Skype during working hours will definitely increase productivity in the workplace. According to Doshi (2009), employer does believe in monitoring their employees because it is a fast and easy method of getting the job done. Productivity and profits increase because the employees will work efficiently and at ease hence a lot of work is done in a short period of time.When workers work efficiently the employees themselves is satisfied hence customers are satisfied as well (Chan et al. 2005). According to The Gazette (2008), Internet abuse is a rising problem that is costing Canadian businesses beyond sixteen billion dollars yearly in lost productivity and the amount is predicted to be eighty billion dollars in the United States. 6. 0 Security Actions That Most Organizations Are Implementing 6. 1 Drug Testing Most organizations do drug testing for security reasons.For companies that are doing drug test, they test mainly for alcohol and drugs separately and others test for both. Employees who come to do their job under the influence of drugs/alcohol may be a threat to other work-mates. Secondly, drug testing has increased because of a rise in health cost and an increase in the danger imposed by lawsuits which come from worker disease. Many companies are involved with drug testing their employees because it is one of the best ways for solving medical and economic problems (Jardine-Tweedie and Wright, 1998) .According to Lu and Kleiner (2004), if the drug testing by the employer is legal and correctly does things according to the law of that particular state then the company will have to look forward to higher profits. High profits are obtained because the employee will be more productive, higher level of morale, a low rate of absenteeism, low health care and fewer injuries are encountered during working periods. 6. 2 Electronic Surveillance Computers are changing rapidly nowadays especially in the workplaces such that monitoring employees by electric equipment is more common.Surveillance cameras/ CCTV is another means used by employers to monitor their employees, they are always aware of all the activities that take place in the organization and surrounding areas. According to Chen and Park (2005), monitoring employees regularly would reduce cases of spies in the organization getting away with their actions. Such cases are few because these â€Å"spies† are aware that they are being watched thereby lose interest to do any illegal actions that will jeopardize their identity (Lu and Kleiner, 2004).Next, management’s main objective is to increase productivity and gain more profit hence they believe monitoring employees’ will improve their productivity levels for the better and an assurance of service of high quality. Chieh and Kleiner (2003) states that employers can use information they get from the cameras to find out th ings that are going wrong in the workplace or find out reasons why productivity is decreasing. For example, an employer can discipline workers who may have been wasting their working hours on their own interest based from the information obtained from monitoring.From this employees are bound to focus more on their assigned duties rather than waste time during working hours. Surveilling employees also motivates them to work even harder than they have been doing (Lee and Kleiner, 2003). Managers can somehow conduct a performance evaluation of their employees whereby they will be able to give a feedback to the employees’ and explain which parts needs correction. From monitoring they are able to dictate the type of employees who are hard-working and those who need help.Employers are also able to detect mistakes the employees are making and from this it will be easy to assist them and correct them. 6. 3 Emails, Voicemails/Telephone calls, Files and Web/Internet use monitoring Many companies monitor employees’ emails, files, voicemails and internet use for various reasons. The number of companies who practice this type of monitoring has increased over the past years (Cox et al, 2005). Employers proclaim that by monitoring employees email, voicemails/telephone calls that way they can be certain that they do not contain any materials that can offend the receiver.Email monitoring is when employers monitor all emails that are going in and out for security purposes to make sure that employees are not disclosing employment or business confidential information. They may monitor as well to check if employees are not harassing other coworkers. Telephone monitoring is a system of managing calls and observing service by the employees. This type of surveillance is used to monitor employees when they make or receive calls and they can gather information on how the employees are performing.Internet use monitoring is when managers take the initiative to observe all t he steps of their employee’s online tracks. Sixty percent of the firms in the United States of America gain from the complex technology and they opt to monitor the workers activities on the Internet (Ciocchetti, 2010). In cases that they are in such situations whereby a worker sends offensive material employees are able to deal with the accused accordingly based on the proof of recorded conversations/videos.For example, Xerox Company fired forty employees who were caught viewing Pornography sites on the internet during working hours (The Register, 2000). Employers have been monitoring all its employees all over the world (ninety-two thousand in total) by taking records of every web site opened. The main reasons why they were fired is because they spent most of their working hours on issues that were not related to their company and also viewing pornographic sites may have been offending material to coworkers.Companies have installed different types of technologies just to mon itor their employees’ activities. Examples include software that filters specific content of information to prevent it from leaving the firm which may lead to the disposal of company secrets. Other types of software used by companies are those that can monitor log-on and off times so that employers can see if workers are wasting time on issues that are not company related.Monitoring of emails, voicemails, files and Web use is believed to be another way that makes it certain that employees will work efficiently and possess productive work habits. Productive work habits boosts efficiency which increases productivity thus perfecting customer service. According to Welebir and Kleiner (2005), the worry for organizations is to keep up with the aspect of having power over production and encouraging utilization of the Internet as a priceless resource.A survey conducted by IntelliQuest Information group revealed that there was an increase in private use of the Internet at work. The re sults signified that the use of had grown from 6. 9 hours to 9. 8 hours for every week prior to the last year and about fifty seven million workers access Internet from their workplace for private use. Further information provided by the study was that the number of workers seemingly receiving classified information from competitors has increased from 9. 2 percent to 24. percent within a year. Moreover workers are getting emails with attachments, roughly one fifth of the workers have reported receiving insulting email from an inner source and only a third to confess spending more time on the Internet for personal use. States do not have the same policies for monitoring and governing websites viewed by the residents. States like China, Vietnam and Singapore does not only block sites for pornography they also ban access to linguistic and political issues (Hechanova and Alampay, 2010). 7. Prioritizing Security and Privacy Ignores Employees’ Personal Lives Opponents of implementi ng security and privacy in the organization state that organization nowadays are too concerned with their own company interests and its prosperity thus forgetting that their employees do have personal lives. Installing electronic cameras that will be watching their activities all day when they are at work, monitoring emails and phone calls is making companies seem as if they are forgetting that their employees have a life to live (Dubbeld, 2004).This side of the coin feels that staff is at liberty to confidentiality when they are using the Internet. Employees argue that as they are allowed to breaks, lunch hours or other selectedperiods where they are not liable to any duties but still in the building they should have the freedom to do things like checking their e-mail, do their banking or shopping and maybe just browse the Internet on free time. Everyone is entitled to some privacy no matter where they are so they argue that they should be able to do this during their free time wit hout anyone monitoring all their movements.Secondly, employees do not consider it as monitoring productivity when companies even observe staff in the toilet or relaxing areas of the office. Some employees consider it as an intrusion and they have lawful hope that they can maintain their personal lives private. Undermining workers privileges to confidentiality by surveillance and monitoring is not the only problem that employees face. It also generates high levels of stress and nervousness which to higher chances may lead to poor health of workers and a reduction in performance.Examples of physical wellbeing problems which may be caused by monitoring are repetitive Strain Injury and Carpal Tunnel Syndrome from performance monitoring by the company for instance keyboard strikes. To add on, employees believe thatthey are individuals who can make their own decisions hence it is their right to be treated as proficient andindependentpeople. Guaranteeing their individual development and pe rformance that can be valued is what they believe they can achieve if they are treated as independent people thus they consider surveillance as violating their privacy (Ahmed, 2007).Workers argue that as long as individual e-mail does not hinder or conflict with business life, it should be permitted. Employees also argue that phone calls take more time than writing an e-mail and also that they should be given time to do individual matters because it can reduce the rate of absenteeism. Most employees have suggested that as long as there is a realistic limit on this practice of monitoring emails, there is no reason for fear but in situations where someone does something unusual then they will have to be dealt with (Kierkegaard, 2005).Even if employees are informed that they are being monitored and in agreement that they are using company property they still feel that their employers’ are not respecting the fact that besides working for tem they also have personal lives which st ill go on whether they are working or not. 8. 0 Better results can be achieved by using the right tools, technologies and methods For a company to maintain good quality security and privacy within their organization they have to own the right tools, technologies and methods.A company cannot just instill a rule/wake up one morning with intentions of monitoring all the activities of their employees and expect high productivity. Companies have to follows certain regulations to install such things as software that monitors an employees’ Internet use and all phone calls, drug testing and electronic surveillance. A cautiously worded policy that informs employees concerning the necessity of surveillance in the company will be the most probable way that it can gain acceptance or support for workplace monitoring from them (Watson, 2002).According to Mei-ShaChieh and Kleiner (2003), as regards to other forms of monitoring, it is vital that all forms of surveillance should not be unreas onably intrusive. The methods that employer’s use when they consider monitoring employees should be practical because if they are not deemed like that then the company can encounter problems such as rebellious employees; which may cause a decrease in performance. Arnesen and Weis (2007) critically supports the idea that Employers must know that it would not be irrationally intrusive to observe what an employee does in public; however it might be intrusive to observe the employee’s behavior hen they are in private places such as the toilet. For example, it may be practical to take pictures of employees when they are at work to observe productivity. However, it may unreasonable to put transparent panels in the ceiling of an employee lavatory. Moreover, if convincing conditions state the use of cameras in locker rooms or other private areas, they are supposed to have signs warning employees they are there. Next, Kierkegaard (2005) states the some of the international regu lations and codes that organizations should take note of when they decide to prioritize security and some form of privacy in their workplace.The International Labor Office (ILO) has issued a Code of Practice on the Protection of worker’s personal data† and it is anticipated to give assistance on the safeguard of workers’ private data. The most important requirements of the Code include issues like using individual data legally and justly only for reasons that are directly applicable to the employment of the staff and for the reasons which they were gathered for in the first place. Employers should by all means necessary not keep insightful private information of employees and all employees should be well-informed before such events take place in the organization.They should be informed of any kind of monitoring that especially the ones that involve personal data collection. However, the information obtained from monitoring them should not be the only issues when doing a performance appraisal. Companies have a duty to safeguard private documents against any kind of a loss, unapproved access, usage, changes or exposure. Employees must have admission to their entire personal information and all rights to scrutinize and get a copy of all the archives.Revealing an Internet supervising policy is an essential element in an organization. Workers ought to be up to date with the type of activities that would be supervised, the regularity monitoring and how the management will be informed of the activity. If the organization verifies how the employees use their Internet then they must be informed and if the company retains deleted information for reasons like security when they should be informed about it (Welebir and Kleiner, 2005). The staff should not have beliefs that their actions on the Internet are confidential.Even though companies do not want to present the idea that they are monitoring each word they key in and mouse clicks on the Internet, it is compulsory to tell employees that they do not own any personal confidential rights when they are using the company Internet. 9. 0 Research Design and Methodology The impact of implementing security and privacy in the workplace and the effect it has on performance in the firm is an ontological study which takes a subjectivism view because security and privacy is created from the perception that workplace performance might be positively or negatively affected.The research is more of an explanatory studywhich is a deductive approach where Saunders et al. (2006), defines deductive astestinga concept in which the researcher cultivates the concept and assumption and design a research plan to test the assumption. The research strategy that is suitable for this study is survey because according to Saunders et al. (2006), it is usually related to a deductive approach and since we are using companies it is a tactic commonly used in businesses.I believe the research choice suitable for t he study is a multi-method qualitative study whereby semi-structured interviews and questionnaires can be used for data collecting. Time horizon that can be used is a longitudinal study where according to Saunders (2006), the researcher embarks on a study at numerous facts in time in order to answer a research question. For reliability and validity sake to how security and privacy affect workplace performance several times of embarking on such a question will provide accurate results. Physical access is the one suitable for my study since I am an external researcher.Access would be granted from the management of all the companies that are to be used for the study and gaining an informal access from all the employees for accurate results. One of strategies that can be used to gain this access is that the project will benefit the company in one way or the other. Research ethics that should be maintained during data collection stage are confidentiality and anonymity. Furthermore, the s ampling method technique I used is probability specifically cluster sampling is what I would consider because there are specific types of jobs that make use of surveillance cameras, computers (with internet) and telephones. . 1 Possible Results Based on the literature analysis, H1 can be accepted because by implementing security in the workplace it can work in two ways. Firstly, protects the business from competitors and can be used when evaluating employees. H2 can also be accepted because not only American companies use Surveillance cameras, do telephone and Internet monitoring, companies in Europe and in countries like China, Vietnam, Philippine, Australia also do the same. H4 is acceptable because for the policy of applying security and privacy to work companies have to follow proper procedures.However H3 will remain debatable in the sense that in every topic that arises there is always going to be a group of people who will rebut the idea. It is acceptable only when the company does not communicate the use and the reasons behind the monitoring. 10. Conclusion Based on the evidence and facts from the literature review which provided various perspectives about security and privacy it can be concluded that monitoring employees can result in something noble or something unscrupulous.For example, emails and surfing the Internet can be a disruption but at the same time the feeling of being watched regularly can also be a disruption. Law of privacy has to balance employee interest against those of the employers and more prominently it must center on the important concepts of human self-esteem. Information technology has assisted firms to enlarge their productivity and efficiency but the misuse of the Internet has steered firms to monitor all communications operated electronically to guard their companies and limit legal responsibilities.Nowadays two major developments to be concerned about in regards to electronic surveillance is the great concern for employee p rivacy and the increased cases of employers being caught accountable for workers’ misbehaviors of electronic communication. Although the courts are in support of employers they must be alert about the workers’ rights though shielding the firms’ interests. Words 4 282 References Ahmed, S. ( 2007). Analysis of Workplace Surveillance In a Quest for an Ethical Stance. Journal of Business Systems, Governance and Ethics, Vol 2,No. 4. Almeida, F. 2012). Web 2. 0 Technologies and Social Networking Security Fears in Enterprises’’, International Journal of Advanced Computer Science and Applications,Vol. 3, No. 2, Amicus Guide. (2005). Amicus Guide to Privacy at Work. Privacy at Work. [Online]. Retrieved on 19 March 2012 from: http://www. amicustheunion. org/pdf/PrivacyatWork. pdf Arnesen, D. W and Weis, W. L. (2007). Developing an Effective Company Policy For Employee Internet And E-Mail Use. Journal of Organizational Culture, Communications and Conflict, Vo lume 11, No. 2,pp. 53-65. Chen, J. V and Park, Y. 2005) â€Å"The role of control and other factors in the electronic surveillance workplace†, Journal of Information, Communication and Ethics in Society, Vol. 3 Iss: 2, pp. 79 – 90. Ciocchetti, C. A. (2010). The Eavesdropping Employer: A Twenty-First Century Framework for Employee Monitoring. [Online]. Retrieved on 19 March 2012 from: http://www. futureofprivacy. org/wpcontent/uploads/2010/07/The_Eavesdropping_Employer_%20A_Twenty-First_Century_Framework. pdf Cox, S; Goette, T. and Young, D. (2005). Workplace Surveillance and Employee Privacy: Implementing an Effective Computer Use Policy, Volume 5 Issue 2. Dubbeld, L. 2004) â€Å"Limits on surveillance: Frictions, fragilities and failures in the operation of camera surveillance†, Journal of Information, Communication and Ethics in Society, Vol. 2 Iss: 1, pp. 9 – 19. Guha, M. (2008). â€Å"The Visible Employee: Using Workplace Monitoring and Surveillance to Protect Information Assets without Compromising Employee Privacy or Trust†, Library Review, Vol. 57 Iss: 9, pp. 746 – 747 Hechanova, R. M. and Alampay, E. A. (2010). Monitoring Employee Use of the Internet in Philippine Organizations’’, The Electronic Journal on Information Systems in Developing Countries, Volume 40 Issue: 5, pp. -20. Kierkegaard, S. (2005). Privacy in Electronic Communication. Watch your e-mail: your boss is snooping. Computer Law & Security Report,†Vol. 21 Iss: 3, pp. 226-236. Lee, S. and Kleiner, B. H. (2003). â€Å"Electronic surveillance in the workplace†, Management Research News, Vol. 26 Iss: 2/3/4, pp. 72 – 81. Mei-ShaChieh, C. and Kleiner, B. H. (2003),†How organisations manage the issue of employee privacytoday†, Management Research News, Vol. 26 Iss: 2 pp. 82 – 88. Petrovic-Lazarevic, S. and Sohal, A. S. (2004). â€Å"Nature of e-business ethical dilemmas†, Information Management & Computer Security, Vol. 2 Iss: 2, pp. 167 – 177. Rustad, M. L. and Paulsson, S. R. (2005). Monitoring Employee e-mail and Internet Usage: Avoiding the Omniscient. Electronic Sweatshop: Insights from Europe. U. Pa. Journal of LaborAnd Employment Law, Vol. 7:4. Saunders, M. , Lewis, P, and Thornhill A. (2006) Research Methods for Business students. 4th edition . UK: Prentice Hall. Strategic Direction. (2009) â€Å"Social networking and the workplace: Making the most of web 2. 0 technologies†,Vol. 25 Iss: 8, pp. 20 – 23. The Gazette (2008). ‘Stealing’ time at work on Net.One of the new trends to watch in labor law is how companies and labor tribunals handle cyberslacking- a term coined to describe people who spend an excess of time on the Internet at work. [Online]. Retrieved on 31 March 2012 from: http://www. canada. com/montrealgazette/news/business/story. html? id=32125d78-a479-497a-ae19-4f461ea18060 The Register. (2000). Xerox fires 40 in porn si te clampdown. Document Company staffs get caught shuffling more than just paper. Trim, P. R. J. (2005). â€Å"Managing computer security issues: preventing and limiting future threats and disasters†, Disaster Prevention and Management, Vol. 4 Iss: 4, pp. 493 – 505 Vorvoreanu,M. and Botan, C. H. (2001). Examining Electronic Surveillance In the Workplace: A Review of Theoretical Perspectives and Research Findings. [Online]. Retrieved on 16 March 2012 from: http://www. cerias. purdue. edu/assets/pdf/bibtex_archive/2001-32. pdf Warren, A. (2002) â€Å"Right to privacy? The protection of personal data in UK public organisations†, New Library World, Vol. 103 Iss: 11/12, pp. 446 – 456. Warren, M. J. (2002). â€Å"Security practice: survey evidence from three countries†, Logistics Information Management, Vol. 15 Iss: 5/6, pp. 347 – 35. Watson, G. (2002). E-mail surveillance in the UK workplace-a management consulting case study†, Aslib Proceed ings, Vol. 54 Iss: 1 pp. 23 – 40. Welebir, B. and Kleiner,B. H. (2005),†How to write a proper Internet usage policy†, Journal of Management ResearchNews, Vol. 28 Iss: 2 pp. 80 – 87. Whalen, T. and Gates, C. (2010),†Watching the watchers: â€Å"voluntary monitoring† of infosec employees†, Journal of Information Management & Computer Security, Vol. 18 Iss: 1 pp. 14 – 25. Moghe, V. (2003) â€Å"Privacy management – a new era in the Australian business environment†, Journal of Information Management & Computer Security, Vol. 1 Iss: 2, pp. 60 – 66 Ying-Tzu Lu, Brian H. Kleiner, (2004),†Drug testing in the workplace†, Journal of Management Research News, Vol. 27 Iss: 4 pp. 46 – 53 Jardine-Tweedie, L. and Phillip C. Wright, (1998) â€Å"Workplace drug testing: avoiding the testing addiction†, Journal of Managerial Psychology, Vol. 13 Iss: 8, pp. 534 – 543 Chan, M; Woon, I. and Kanakanh alli, A. (2005). â€Å"Perceptions of Information Security in the workplace : Linking Information Security climate to Compliant Behavior†, Journal of Information Privacy and Security, Volume 1 Issue: 3, pp. 8-41 Chieh, C. M. and Kleiner, B. H. (2003), â€Å"How organisations manage the issue of employee privacy today†, Journal of Management Research News, Vol. 26 Iss: 2 pp. 82 – 88 Bibliography Gritzalis, S. (2004). â€Å"Enhancing Web privacy and anonymity in the digital era†, Journal of Information Management & Computer Security, Vol. 12 Iss: 3, pp. 255 – 287. Griffiths, M. (2010),†Internet abuse and internet addiction in the workplace†, Journal of Workplace Learning, Vol. 22 Iss: 7 pp. 463 – 472 Morgan, C. (1999).Employer Monitoring Of the Employee Electronic Mail And Internet Use. McGill Law Journal, Vol. 44 pp. 850-902. Jardine-Tweedie, L. and Phillip C. Wright, (1998) â€Å"Workplace drug testing: avoiding the testing addi ction†, Journal of Managerial Psychology, Vol. 13 Iss: 8, pp. 534 – 543 Appendices Appendix 1: Evaluation of Sources In order to do my literature review I made use of secondary data which consisted of journals, books and web publications (which included newspapers). From these sources I could get dependable information because they are reliable sources.I did not manage to get a lot of recent journals for the current year and for the previous year but I did manage to get publications which were within the ten years. These sources really helped me understand more facts about my research topic. Most of the journals that I found were useful to explain my topic and write more facts because they had information that I wanted to use. Most of the journals that I found discussed reasons why organizations were implementing security and privacy in their organizations and the proper procedures that were supposed to be taken for such policies.However it was not easy to get journals that rebuttal those ideas and supported that somehow it affected employees. Secondly, I was able to find journals that explained security and privacy from companies in different countries. The issue of security and privacy in the workplace was more crucial beginning 1996 which shows that it’s an issue that that was brought about technology advancements. I found most of my journals on emerald insight and to top it up I found more from scholar web publications. I took my time to paraphrase all the necessary information from the journals that I found to support all my assumptions.I used twenty- three journals to support my ideas, except for one journal all of them the author name was given, dates, journal article headings and all the information needed to do the referencing. The impact of implementing security and privacy and its effect on workplace performance Appendix 2: Mind Map Week 1 Received topics to research on Week 2 Search for relevant journals mainly from Emerald Insi ght. com Week 2 Research Objectives Research Questions Hypothesis Week 2 Chose the research topic Week 3 Theoretical Framework Introduction & Search for more JournalsWeek 4 Non-offensive material from emails and the Internet High performance from company networks &systems Week 4 Protection of company confidential information Prevention of trade secrets from leaking out Week 4 Positive effects of security and privacy mainly on productivity, employee &customer satisfaction Week 5 Security & Privacy actions that companies are using Week 6 Facts raised by opponents of Security and privacy e. g. electronic surveillance Week 7 Owning the right tools, technologies and methods Week 9 Research Design and Methodology Possible Results

Reaction paper Essay

Last summer term, in relation to our subject Business Policy and Strategy, our professor required our class to attend a seminar about the programs being held by a non-government organization, which is the Development Action for Women Network (DAWN). At first, I don’t even know that an organization like this exists and I don’t have any idea on what is it all about, or what are the activities it is engaged into. Before going to the seminar’s venue, I had a presumption that it will be about how to develop a good business strategy, or some kind of an inspiring speech from someone successful. Upon arriving at the venue, I’m quite disappointed because the seminar is almost halfway through. I already had the mindset that I wouldn’t learn anything from it because, in addition to the fact that we were late, we were also had no choice but to take the seats at the last rows of the venue. But, when the speaker said something about the Filipino women and their half-Japanese, half-Filipino children, it stirred my curiosity and tried really hard to listen, to concentrate and to cope-up with the talk. And that’s when I have learned what DAWN is all about. Based on the speeches of those people involved with DAWN, their main advocacy is to help promote human rights and welfare, particularly of those Filipino women who migrated in Japan and their Japanese-Filipino children. I was disturbed by the specificity of their objective, I mean, why for Filipino women who migrated in Japan only? Then, I came to realize that maltreated and violated Filipinas from Japan are very common, so why not? I became interested to learn more about DAWN because their vision and missions are inclined to the promotion of equality between men and women and also the protection of women rights for the betterment of their families. Of course, this is a very important matter for a woman like me. I was also amazed by the number of programs they have to provide services to their clients, like providing health assistance, legal and paralegal assistance, educational assistance, temporary shelter, case management services, and even air/travel assistance. But more than these programs, the speakers also mentioned about their other activities that would provide long-term help to their clients. These are the alternative livelihood programs they’re implementing, like the Sikap Buhay (SIKHAY) and the DAWN Multipurpose Cooperative Inc. Through these, their clients can start rebuilding their lives, and at the same time regain their sense of dignity and self-worth through participating actively in productive activities. One of the speakers also mentioned that DAWN also provides further assistance to interested women clients in acquiring new skills that are apt to the changing times, such as hands-on computer training. These helpful programs show that DAWN is really willing and is committed in helping their clients. So, I think, that was the seminar is all about – to inform us about DAWN and its undertakings and to encourage us to support, and if possible, to participate in their activities. But the main objective of this paper is to be able to relate what we’ve learned in the said seminar to our subject, Business Policy and Strategy. So, the question is, how can we incorporate a good business strategy into DAWN’s activities? I can see many possible ways. One good business strategy is to use their advocacy to promote possible profit-oriented programs. The use of ideals or principles that promote, for example, human rights, will enhance the image of a company, and will in turn, may attract investors, sponsors, or even customers. Another strategy is to build a separate branch or a firm that will provide the same programs (i.e., training, counselling) to other group of people that has the capability to pay for such services. They have an advantage because they already have experience and are already known in providing those kinds of services. Another strategy is to use their network groups in promoting their possible â€Å"profit-oriented† activities. Since they have developed and maintained strong linkages with their fellow NGOs and also to some government agencies, they can utilize it to have better access to resources and to the market. And besides, their relationship with the other organizations also adds to the credibility of the company. Finally, another strategy that I can think of is the proper utilization of their research and development facilities to be able to expand and improve the business. This is also a possibility and can likewise provide an advantage because DAWN has established an extensive network with research institutions for ready access to vital research findings as well as for immediate response to needs for other areas for research. It is an edge over their competitors who don’t have established relationships with research institutions. And that is how I see the relationship between DAWN and business strategy. I therefore conclude that no matter what your line of business is, there can always be a good strategy available for you to have an edge over the others. All you have to do is to utilize what you have and be the best in it, just like what DAWN is doing.

Is India Ready For Sovereign Wealth Funds Finance Essay - Free Essay Example

Sample details Pages: 20 Words: 5861 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Introduction Can India boast of any preparedness to give wings to a proposal to establish its very own Sovereign Wealth Fund. The reactions to this question vary from emphatic agreement to vehement opposition. The question has been on many minds. Its been the talk around town, the objet de ragots of the intellectual circles; and not without merit. Everyone from economic analysts to RBI spokespersons, from class room students to the Finance Minister everyone has their own take on the matter. Everyone else seems to be doing it. UAE has the Mubadala, Singapore has the Temasek and China has the China Investment Corporation. 17 such SWFs have come up in the last 4 years alone. Predictions place their purchasing power at approx. US $15 trillion by 2015.[2]SWFs are here and they are making themselves count. Then, why is it that India is sitting out on the action? Don’t waste time! Our writers will create an original "Is India Ready For Sovereign Wealth Funds Finance Essay" essay for you Create order In the midst of this contemporary debate is a lesser heard, yet incisive, opinion but, arent we there already? However, we shall put this argument to the test at a later stage. For now, it suffices to say that the deliberations have brought to the fore a wide array of intriguing challenges. Analysts, arguing fastidiously from both sides, have taken great pains in contributing towards what exists today as a heap of literature on this issue, albeit predominantly of the paper-less kind. To add flavor to the discussion, rumors abound that the Indian decision makers have, in fact, been seriously contemplating floating such an enterprise. Nonetheless, the question remains even if a SWF based on Indian soil is on the horizon; is India sufficiently equipped to handle this 20th century global phenomenon which seem to have a knack of remaining embroiled in political controversy? An answer to this query would necessarily entail two parallel issues. Firstly, all factors considered, is India capable of venturing into the league of those nations which operate SWFs? Secondly, do Indian laws and regulations have the potential to adequately regulate the outgoing investments from India and the incoming investments from other SWFs? The bulk of this essay shall analyze the first of these issues, for it has attracted a much wider and divergent assortment of viewpoints. In its span, the essay shall examine some of the most fundamental questions which have proved to be the most contentious. After looking at The When?, i.e. at what point of time should a sovereign turn towards SWFs as tools of economic and strategic development, it shall present a study closer home, Is India There Yet?. Going beyond, we shall consider The Why? which shall consist of the quintessential arguments put forth by those who voice support for the assertion that India should consider setting up a SWF, and the Why Not? which shall argue against such a conclusion. Using the findings to the above queries as a foundation, the remainder of the essay shall present a model for a possible course of action for India in the coming years. The When Sovereign Wealth Funds the Common Wisdom While there are a multitude of reasons why countries around the world establish SWFs[3], the unsaid rule which dictates their creation is the existence of excessive surpluses[4]in the coffers of the initiating nation. Also, it is interesting to note that a SWF is defined more so by the source of its funds than by the targets that such a fund seeks to acquire. SWFs[5]usually consist of balance of payment surpluses, other fiscal surpluses, official foreign currency operations, proceedings of domestic privatization, receipts from commodity exports, etc. It is not by mere coincidence that the countries which have made vigorous forays into SWFs can be categorized as either oil-rich nations or profiteers of commodity exchanges. As the story goes, nations which had gained excessively during the oil-boom years and from trade activities sought to diversify their investment portfolios. Since their economies were heavily dependent upon either oil production or commodity exchange, those investments which offered their economies protection against adverse events (such as international trade price fluctuations) were the obvious choice for them to utilize their excessive reserves. Soon enough, with the success of this investment model and the discovery of other strategic benefits which were accrued on to the SWF nations, the trend caught along. This shapes our understanding of what constitute the preferred prerequisites for when any country looks to give impetus to its SWF program. In particular, a correlation can be drawn between heavy investment into SWFs in those years in which there were exceptionally high earnings from oil and gas production and/or there was sizeable liquidity created on account of exports.[6]Foremost examples of SWFs constituted out of surpluses from oil and gas exports include countries like Saudi Arabia, Abu Dhabi, Norway, Kuwait and Russia.[7] It must be noted that this does not preclude non-oil and non-commodity rich nations from indulging in SWFs. Several countries, such as China and Singapore, have invested in SWFs after recording year on year accumulation to their reserves through non-oil and non-commodity fiscal surpluses. Experiences in these nations suggest that governments show an inclination towards creating SWFs at times where budgetary surpluses are excessive or when there is negligible international debt or the same has at least been reasonably curtailed. Therefore, it is safe to assume that more than anything else it is the accumulation of a buffer-stock of reserves from fiscal surpluses[8]which determines the right time for any country to set up a SWF. Is India There Yet? The aforementioned criterion represents an informal, yet precise, account of most of the SWFs which control nearly US $4 trillion[9]in the global economy today. To ascertain whether such a model can be replicated in India, we would need to examine several domestic as well as international fiscal and non-fiscal factors which would come in to play along with a cost-benefit analysis of executing such a program. For the sake of our convenience, we may divide these factors into two categories those which would influence us to conclude that India is not prepared for SWFs since the possible repercussions of implementing such a program would prove to be detrimental to our interests, and those which place the gains from such implementation at a considerably higher pedestal than the collateral expenses which would be incurred. Part I: The Why Not India Isnt Ready for a Sovereign Wealth Fund (i) Our Reserves: What Do They Really Represent? India currently faces the highest fiscal deficit it has recorded in the past decade and a half a staggering 6.8%.[10]While it is reassuring to think of our reserves in terms of their current value, which stands at over US $270 billion,[11]this figure betrays the truth of what it actually represents. Unlike most other countries, Indias reserves do not represent its actual net savings. Instead, these reserves merely reflect the surplus of capital inflows over its current account deficits.[12]They are in the form of extra-commercial borrowings, or portfolio investment inflows. In actuality, these reserves are either debts which need to be paid back, or funds which may flow out of India at a moments notice.[13] Even if the current reserves could be put aside for SWF investment, there is little confidence that the current growth rate of our surpluses can be maintained. This implies that, over time, not only would our reserves be unfit for diversion for a SWF, but it would become costlier to maintain the same level of the reserves. Therefore, we face a situation dissimilar to the traditional SWF investing countries we do not have surpluses in our reserves which we can invest! A move to divert these funds from these reserves to form a SWF would be fraught with danger since it could prove to be disastrous in the event of a need to liquefy the reserves. (ii) Risky Investments vs. Safe Bets: Assessing Indias Risk Appetite Currently, the RBI is entrusted with the responsibility of handling Indias reserves. These reserves are invested in the US treasury bills, which result in relatively low yields but are acknowledged as safe investments. This also reflects on Indias risk appetite. SWFs are generally considered to have an affinity for risky and potentially high yielding investments. This aspect becomes even more highlighted in the light of the current post-crisis effect looming over the uncertain and volatile markets. Furthermore, in the absence of cautious planning, withdrawing vast sums of Indian investments from the US treasury may pave the way for further volatility in the global economy. This would also translate into the reduction of Indias export competitiveness since the current reserves ensure that an appropriate level of currency prices is sustained. (iii) The Institutional Bend: A System of Inherent Risk Aversion The management of our current reserves is the function of a complex system of checks and balances. This system, in several ways, exerts an inherent pressure which is biased against making risky investments. Given this fact, would it be possible for an Indian origin SWF to break lose of these shackles to make unclouded judgments as to where the SWF would make its investments? Or would such investments prove to be far too adventurous for our taste? For instance, who is to say that even after a SWF is established, the investments would not be channeled to the same low-yield, high-safety assets through the nugatory effect of these internal pressures? (iv) The Times They Are A Changing: The Post Recession Blues It has been opined that since the market situations have considerably improved over the recent months, India should look to take advantage of a short window of opportunity to set up a SWF and acquire assets at inexpensive rates. However, it must be borne in mind that Indian companies have fared exceedingly well over the past couple of quarters, bettering expectations, because of a combination of various stimulus packages made available to them. On the other hand, the current fiscal deficit, a trade deficit of over US $70 billion, an external debt of nearly US $200 billion, surging oil prices and the spiking inflation levels are indicative of the real situation which, on the whole, is far from favorable. Therefore, despite a promising market performance, SWFs may prove to be far less yielding than expected, or may have longer gestation period for maturity. The question then is can India afford to gamble its reserves on such an unsure bet? Or, would Indian have the luxury to patiently wait for these investments to mature? Furthermore, in the recent past, other SWFs have recorded negative growth (Norway, 1st quarter of 2009, -4.8%) and have incurred mammoth losses. A comprehensive risk assessment is, therefore, not only advisable but, in fact, necessary prior to the formulation of any concrete SWF policy. (v) The Realities of Sovereign Boundaries Cross-Border Politics SWFs offer certain non-economic benefits on the side platter. These include the strategic edge that they provide to a sovereign through its overseas economic influence. However, such influence is often aggressively resisted by local governments and politicians sometimes in a state of frenzy, despite bonafide motives of the investors. In the aftermath of 9/11, an offer to acquire an American port-operating company by a fund stationed in Dubai was subjected to strict political resistance, as was an offer by China to takeover an American oil company. These cases exposed the vulnerability of overseas transactions to the will of the local politicians. It also raises the question of certainty how safe and certain are SWF investments from turbulence in the local political establishment?[14]SWF investments are usually characterized by voluminous transactions. The case of Hugo Chavez canceling Exxon Mobils contracts demonstrated the potential hazards that such transactions could face in situations of friction with the local government. (vi) Management the Lessons Learnt Thus Far: Pleading for Accountability Several issues related to the management of the SWF crop up, which primarily include, but are not restricted to, the potential interference with the decision making of the SWF. These impediments may be direct or indirect in nature. SWFs have faced the heaviest criticism for being perceived as intimidating and unaccountable enterprises, which are likely to skirt regulatory and transparency frameworks. Unless the highest standards of transparency and accountability are maintained, the discretionary powers conferred upon the SWF may result in an abusive situation wherein vested interests may reign supreme. On the other hand, if mechanisms which are put in place to restrict such arbitrary decision-making are allowed to gain a choke-hold on these powers, a lack of independence given to the management would also lead to a detrimental situation drastically reducing the potential benefits from the SWF. Since India has battled problems with opaqueness and distrust in the sphere of governance, we are more than just acquainted with these troubles. This explains the relatively low enthusiasm on the level of accountability that can be expected from an Indian SWF. Unless a fine balance can be maintained to ensure adequate implementation of the established principles of good governance, such as the Santiago Principles,[15]the principles enumerated in the Linaburg-Maduell Index,[16]and by borrowing a leaf from the books of seasoned SWFs such as the Norwegian model in addition to drawing from Indias past experiences with such problems, the very purpose behind the SWF would stand to be defeated. Lastly, who would be entrusted with the responsibility to manage the affairs of the SWF? Even though the RBI, which is the top monetary regulator in the country, may be lauded for its past efforts and achievements, the fact remains that the body could make do with an internal boost for better efficiency and infrastructure. In dealing with the complexities of Indias regulatory demands, does the RBI not already have enough on its plate? Wouldnt the RBI efforts be best directed towards ensuring the smooth functioning of its existing mandates than the imposition of additional duties of regulating a SWF? (vii) Domestic Needs vs. Overseas Projects: Quenching Whose Thirst First? Another very important aspect regarding the setting up of SWFs is that these funds are normally set up in countries which do not have challenging domestic needs. In other words, a poverty struck country like India setting up a SWF is, at best, unusual.[17] India, at the moment, faces various domestic challenges and would need to divert its attention inwards and give a higher priority to the problems of poverty, infrastructure development, fiscal deficits and other developmental projects for which heavy doses of investment are desired. In the backdrop of these requirements, should Indias reserves be utilized for the purpose of yielding higher returns or quenching its thirst for development? The same argument may be looked at from the point of equity. Bettering returns on investments is likely to affect only a handful of Indian citizens, depending upon the manner in which these returns are distributed between the citizens. On the other hand, by focusing on the pressing domestic needs, India would further its mandate as a welfare state and benefit its citizens, across the board, in an equitable fashion. (viii) The Grey Areas: SWFs Regulations SWFs are a recent phenomenon. Although SWFs can be traced back to the early 1950s, they did not acquire their current shape, structure and dominance in the international financial markets until much later. In fact, the term sovereign wealth fund gained usage as late as half a decade into the 21st century. While much of the debate circulating around SWFs has dealt with their financial, political and strategic prowess, little is known about their interaction with law and policy. Law and policy, true to the dynamism which binds them to the society, have recently taken cognizance of these developments and regulatory frameworks are being erected to tackle some inherent problems with these funds. For instance, the very nature of the investor in these transactions may open up a few issues to debate. Since a SWF does not possess a legal personality distinct from the State, the question of State Immunity crops up. In such cases, what begs attention is the commercial nature of the transactions.[18]Under the UN Convention on Jurisdictional Immunities of States and Their Property, which codifies the customary international law relating to State immunities, the defence of State immunity may not be available to a State if the activities undertaken are of a commercial nature or relate to the participation of the State in a company. This is also reflected in other international conventions, such as Article 6 of the EU Convention on State Immunity. While the principles of sovereign immunity may be better situated to tackle with jurisdictional problems related with SWFs, the possibility of the investor altering the ordinary course of business in the host economy poses regulatory threats. Moreover, the persuasive effect of the SWFs is almost always much larger than what meets the eye because while a country may have invested only a fraction of its reserves in its SWF, it may enjoy far more diplomatic and financial clout than the mere quantity of reserves controlled by its SWF. Also, the principles of governance which have been evolved such as the Santiago Principles, only make such norms voluntary, and not binding, upon a given SWF. In the absence of clearly defined regulations which take them into account,[19]SWFs may be able to slip through the cracks in the existing legal framework. Therefore, this is a crucial point interface between SWFs and the law which needs careful examination for outgoing, as well as incoming investment. As for an Indian origin SWF is concerned, due care must be taken in ensuring that the investments are free from potential hurdles which may threaten to restrict their scope or tie them up in unnecessary conflict or expose our investments to more risk than anticipated. At the receiving end, SEBI and RBI have put in effect adequate measures for foreign SWFs (which are treated as Foreign Institutional Investors) and must continue to remain vigilant about the motives behind the investments. However, the tendency to over-regulate such investments must be resisted to ensure that the enthusiasm of the foreign SWFs is not driven away. A Tentative Conclusion: Too Soon To Draw? In view of the eight broad arguments elucidated above, the natural conclusion which can be reached at this point is obvious certainly, India is not prepared to taken on the challenges posed by SWFs. Not yet, anyways. However, that is only one side of this curious debate. The forthcoming section of the essay shall take up the counter-arguments, which make an attempt at persuading the reader otherwise. Part II: The Why India Is Ready for a Sovereign Wealth Fund (i) The Times They Are a Changing: The Post-Recession Groove In response to a conservative approach to SWFs which put forward the view that the current market scenario, clubbed with Indias budgetary constraints which limit the losses that it can afford to take on its investments, it must be noted that with cautious planning and execution, the situation could work to Indias advantage. This is so because despite the constraints which may limit an allocation for the SWF, India finds itself ready to take on this porthole of an opportunity to obtain assets, which may otherwise be expensive, despite a shoestring budget.[20]However, this would not justify unnecessarily high investments, say more than a mere fraction of its US $270 billion reserves, in extremely risk-prone assets without scrutiny. So long as these requirements can be fulfilled, India would be in a position to sit out and patiently wait for the investments to bear returns. (ii) Indias Current Financial Restraints: What Do They Really Restrain Us From? Admittedly, our reserves may not exhibit true savings. However, this does not prevent us from managing these reserves to the best of their potential.[21]Analysts even argue that given the size of the Indian economy, its balance of payment and trade deficits are stable.[22]Moreover, India figured in the list of countries with the most accumulated reserves. There is absolutely no dispute over the fact that our reserves have crossed over to the excessive grade. With a fractional fund earmarked for a SWF, India can start a relatively smaller SWF, say to the tune of US $5-US $10 billion, with minimal to no threat to its economy. With the subsequent returns from SWF investments over the next few years, India can move towards reducing its fiscal deficit. However, what shall be most interesting would be that since this would also be the teething period for an Indian SWF, this phase could be effectively used as a benchmark of knowledge gathering and practicing for the purposes of our future endeavors in SWF investments which could then focus on bigger investments. (iii) Strategic Investments A Gain in Exchange Globally, SWFs have come to be regarded as incredibility useful tools of non-economic value creation, which can then be used to create opportunities for economic and other benefits. Investments through SWFs are often used subserviently to fulfill the objectives of a wider economic and/or political strategy of a country. For instance, an investment made using a SWF can further economic relations between the host and the investor country, and can be translated into mutually beneficial terms of development. This was seen in the case of Temaseks recent investment in the Indian banking sector. Temasek Holdings, one of Singapores two SWFs and estimated at US $122 billion, invested in the Indian bank, ICICI. This investment strengthened the trust and the financial relationship between the two countries. There has been global skepticism over the motives behind acquisitions by several SWFs. These apprehensions are further fueled by the lack of transparency in the operations of many SWFs. Countries like France and Germany have gone on record in their protest against such operations. However ruthless such actions may appear, the reaction of the global community furnishes evidence of what weve already known SWFs successfully transfer strategic advantages across borders. In the day and age of globalization, when the focus has shifted on to India as a burgeoning world-power, can India afford to sit out and overlook such strategic affairs? As a by-product of setting up an Indian SWF, there would be other associated strategic gains as well. Since the creation of the SWF would necessarily entail the foundation of an independent body, on the lines of SEBI, to deal exclusively with SWFs, this body would undertake monitoring, management and regulatory functions as well. This would prove to be a strategic gain, since this body would be better equipped to monitor the incoming investments from foreign SWFs. (iv) Mitigating Risks: Securing Future Needs the All Eggs in One Basket Syndrome The raison dtre of SWFs is their tendency to palliate investment risks along with creating higher yields from foreign exchange reserves. The yields on Indian investments in the US treasury bills are dismally low and with the dwindling dollar rate, the future of our investments looks bleak. Moreover, these current investments are riddled with inherent costs. The univocal investment advice for India would be to diversify its investments. If India was to utilize a fraction of its investments, through SWFs, in, say, the energy sector, it would be a step in the right direction.[23]The reasons are two-fold. Firstly, this would protect Indias long term needs. Secondly, it would mitigate the risks attached with our single-target investment strategy. With the opening up of the Indian economy, India is vulnerable to the fluctuations in the global markets. In the near future, instabilities such as a surge in the oil prices can seriously damage our economy. Therefore, investments which can down-play this threat must be viewed with optimism. On the other hand, with the dollar losing its world-dominance and the emergence of other global currencies, investments in the US treasury bills are not without risk either. It would make much sense in diversifying this investment to safeguard our economy, lest we expose ourselves to the risk of depleting reserves in the event of a falling dollar. (v) Domestic vs. Abroad As regard the issue of prioritizing investment into the investment thirsty domestic economy over economies abroad, the answer would lie in balancing the two investments by weighing their respective investment potential. This essentially means investments overseas must be considered if they are financially more appealing. A blanket-ban policy to needlessly restrict all our investments within India is a two-edged sword, as explained below. It is estimated that India requires nearly US $500 billion to bolster its domestic infrastructure and development projects. This requirement far exceeds what India is capable of self-financing. Therefore, it is without doubt that India needs to look at alternate sources of funding for these projects. This should dispel any misgivings about whether our reserves can be funneled to aid domestic growth. However, our reserves can be usefully deployed to create an atmosphere more conducive to domestic growth. Considering the sheer strength of our reserves, it is inconceivable why a fractional sum cannot be put aside for use in SWFs independent of our pursuit of developmental aspirations. Since none of these arguments raise any doubts as to demonstrate that investing in a SWF would compel India to take anything away from domestic development, an investment equivalent to a marginal proportion of the reserves into SWFs may be acceptable. In fact, the returns from these investments can be cycled back into aiding domestic development. (vi) Good Governance: The Way Out of Other Expected Problems? Several of the associated concerns with SWF can be dealt with through an institutionalized system which imbibes an appropriate balance between autonomy and accountability. If all investments are made in adherence to the strictest norms of pre-investment assessment and are conducted in a manner which is laced with transparency and inspires confidence, almost all of the other claims of those who express reservations about Indias readiness to take a plunge into a SWF can be satisfactorily redressed. Tentative Conclusion: So, Is India Ready for SWFs? A Sneak Peek: What May Come Next Considering these six broad justifications, can we say with conviction that India is prepared to assume the liabilities and challenges which SWFs bring with them in tow? Perhaps, yes. But, this concurrence comes with a rider that, a lot shall depend on the actual means of implementation of the SWFs in India. As far as inward directed SWF investments are concerned, were already there and must continue to exhibit the same level of precaution that we have thus far. Since the investments made by SWFs are set to multiply over the years, it may be useful for us to reinforce our regulatory mechanism by setting up an altogether separate wing to look into SWF investments. Coming to outward directed SWF investments, most certainly, there are numerous permutations and combinations involved in India launching its SWF; a variety of models which we can put to practice. The subsequent segment of the essay shall suggest a suitable model of implementation for India giving due regard to our level of preparedness and our existing frameworks. Conclusion: so, what is the best policy forward? Indias SWF: Approach Underlying Principles Indias maiden foray in to a SWF should adopt an eclectic approach and seek to incorporate the most fitting tried and tested operational models from around the world. Amongst them, the models developed by Norway and Singapore are likely to hold promise for India. Consistently ranked high on efficiency and transparency indices,[24]these models are most appropriate in the Indian setting where opaqueness and accountability are likely to wither away the confidence from the SWF and increase the probability of abuse. Even from a functional aspect, transparency with respect to the governance structures, the actual owners, vital investment decision-makers, audit provisions, etc. are invaluable in building the domestic trust and an internationally projected face of any SWF. This, to a large extent, determines the success of the fund. We find an acknowledgment of this fact in the recently established set of 24 principles which set the benchmark for all practice in the field the Santiago Principles. The principles cover a wide range of areas which vary from a supporting legal framework to correlation of SWF objectives with the countrys macroeconomic goals; and from the tweaking of an institutional framework to setting up effectual governance structures. It also brings under its fold the investment and risk management framework for the funds.[25] Besides these principles, countries like Norway have framed specific ethical guidelines which translate into binding considerations while making investment decisions. As per these guidelines, prior to commitment of funds, recipients undergo a strict scrutiny by a council[26]established for this purpose. If the council is convinced that going ahead with an investment in a potential recipient would be contrary to its ethical guidelines, it has the power to veto such a transaction.[27] Taking a cue from such vibrant developments in the field of SWFs world-over, India would enjoy the luxury of observing the successes and failures of other SWF set ups over the last five decades, of which it should pay close attention to detail over the last decade or so, while determining specific policy objectives and operational requirements. The Funds This brings us to the next issue that of the specifics of the Indian SWF. A small fund, representing funds in the vicinity of, but not more than, 5% of Indias reserves, should be sufficient for India to embark on its short-term SWF related objectives. With future accumulation of reserves, and depending upon the fiscal conditions over the coming years, India can divert more funds into this venture. The Decision Makers Other Specifics But, who shall captain this ship? It is of utmost importance to fortify Indias SWF from misdirected and unwarranted political interference. For this purpose, an autonomous body, akin to the RBI or SEBI, should be established pursuant to a Parliamentary enactment. The gravity of this need is further accentuated on a close examination of the mandate of the RBI under the RBI Act, 1934 which does not confer any powers upon the monetary regulator to invest outside of foreign government treasuries.[28] Once enacted, the law must lay down the procedure of appointment of decision-makers, safeguards against political interference, certain minimum standards of transparency, other confidence inspiring and accountability ensuring governance structures,[29]procedures for systematic disclosures, etc. Preferably, this body should also regulate the incoming SWF investments in tandem with other regulatory bodies, along with an ethical and financial assessment of outgoing investments. It must possess the characteristics of a body which is State owned, but is not State directed. We may refer to Singapores model in Temasek: an incorporated body as a private company with a sole shareholder the Ministry of Finance. A majority of the board of directors should be independent directors from the private sector, such as professional and experienced fund managers, who would necessarily need to approve the investment strategies. Investments This is, arguably, the trickiest of all questions. Where will the funds be invested? Will they look to capture markets abroad, or invest in the domestic sector as well? A major criticism leveled against the SWFs has been its inclination towards prioritizing overseas investments over similar domestic projects. Indias SWF should look at both domestic and foreign assets. The decisions should be weighed primarily on the investment potential of the assets, and wherever an equal opportunity exists, preference must be given to domestic investment. However, we would need to exercise caution as to not dictate such terms to the SWF whether through statutorily incorporated instructions or through political pressures. Instead, the decision should be left at the discretion of the fund managers, with a recommendation in the fund guidelines to this effect. In order to forge friendly and progressive economic relationships with nations and to avoid international frictions at a time when SWF activities are viewed by host countries with extreme paranoia, India must ensure that its investments in foreign assets do not exceed a prescribed maximum limit, of say 1 2%, of ownership. Clarity in its investment objectives would go a long way in ensuring that our fund does not succumb to the lab rat syndrome of frequent experimentation. Like other countries, such as the USA, a detailed, yet broad, account of the purpose and strategies must be laid out.[30] Singapores model has another lesson for India to learn from that of suggested quota allocations. That is, the objectives could make a recommendation as to what proportion of the fund should be invested domestically, regionally and globally. However, even though these stipulations would not be binding on the fund, the SWF managers must strive to meet such criteria, wherever it is so possible. India should have its investment objectives clear before treading into experimenting with SWFs. It needs to reflect on issues like purpose of the fund, its time horizon, rules governing allocation of withdrawal and investment strategies and implementation policies. Incoming Investments As mentioned earlier, the authority which is established to tend to the operations of the SWF hosted in India could also regulate the incoming investments of foreign SWFs. At the same time, India must look to keep abreast of the motives behind investments by foreign SWFs and consider the possibility of entering into agreements with investor nations, like the US,[31]regarding their SWF policies. Evidence That We Are There Already Coming to a point raised at the onset of this essay in one way, India has already set out on its journey to set up a SWF. In his budget speech in February, 2007, the Finance Minister had announced a scheme for the setting up of a special purpose vehicle (SPV) to meet the domestic needs of the infrastructure sector. Hence, India Infrastructure Finance Corporation Ltd. was created. In the technical sense of the word, such an SPV qualifies as a SWF since it uses Indias foreign exchange reserves to the tune of US $5 billion for its funding. This, more than any argument can, should drive home the point that India is prepared to invest in such project. The proposal, a prototype, was met with high industry enthusiasm and was seen as a progressive step. Conclusion In the meantime, as the world awaits the culmination of this debate and the commencement of a sluggish parliamentary process, India watches with great interest, with a glint in its eyes, as the saga of the SWF dominance unfolds in the arena of international finance and diplomatic relations. Slowly, but steadily, it is gaining confidence that somewhere out there, there is a very relevant role for it to play as well. Until then, we prepare ourselves. Yes, we are ready. Now, all we need are the structures.