Analysing Argument - A Way to Pay for College, With Dividends Essay

Analysing Argument - A Way to Pay for College, With Dividends - Essay Example The article is based upon the argument of proving the benefits of human capital contract as the more suitable and appropriate source of study finance that is beneficial for the students as well as for the entire society and labour market. The author has impressively described the pros and cons of several ways of arranging the higher studies finance and has persuasively concluded that the human capital contracts are the most expedient and equitable way for the students to manage finance for their higher education. The author has included the experience of some students who have availed different options for securing the finance for their higher education. In the light of the experiences of these people the author insists that the most suitable, fair and supportive mode of college finance is human capital contract that needs to be further refines and elaborates to provide students will freedom of choice about their professional careers. He also highlight the disadvantages and problems associated with the other modes of higher education finance and argues that the comparison of all the possibilities unveils that human capital contract is the best options among all the choices and schemes available and implemented for providing the finance for the higher education to the students. The article explains that the choice of getting study finance through the "human capital contract" appears to be helpful resource for finance for the low income students of US, Mexico and Colombia etc. The author compares this option with certain other possibilities of getting finance. He also talks about the income based repayment introduced by US government and criticizes the finance schemes like income based repayment. He argues that in these methods the students are bound to repay the loans once they finish their education. This liability limits their freedom and they have little options in front of them to initiate their careers and rather spending time in the job of their choice, th ey are compelled to work for the corporations from where they could earn enough to pay their loans. The author argues that human capital contracts have more options and freedoms for the students and that rather than becoming slaves they could make free choice for their working careers. He shares his opinion â€Å"with human capital contracts, students would have wider options. They would know that, regardless of their career choices, their payments would not be unmanageable†. The author answers the people concerns and criticism regarding the market based mechanism of financing and their demands for the free college financed by the government. The author explains that it is not realistic approach to expect that the government should get enough from the taxes to build the free college for the students because usually the government fail to collect the desired amount of taxes from the citizens. He stresses upon this opinion by explaining that expecting government to provide educ ation finance will cause heavy tax burden on all the citizens that will eventually added to the problems of the people rather facilitating them. The article presents the author’s viewpoint that if the government will take the initiative to provide free college education it will result in the

International Monetary Fund and World Bank Essay

International Monetary Fund and World Bank - Essay Example "Due to their considerable financial resources, technical assets, and global presence, the IFIs1 (i.e. the World Bank and the IMF, S.K.) have the capacity to assist in maintaining or recreating an environment of peace and stability."2 The World Bank's focus is on the provision of long-term loans to support development projects and programs. The IMF, on the other hand, concentrates on providing loans to stabilize countries facing short-term financial crises. The World Bank and IMF are directed by the governments of the world's richest countries. Combined, the "Group of 7"3 holds more than 40% of the votes on the Boards of Directors of these institutions and the U.S. alone accounts for almost 20% of the votes. It was the U.S. policy during the Reagan Administration in the early 1980s, to expand the role of the World Bank and IMF to manage developing economies4. The statutory purposes of the IMF are, first, utilizing a permanent institution for the purpose of ensuring international monetary cooperation which also makes available expertise to deal with relevant problems. Second, bringing about an increase in the balanced growth of international trade, which will result in significantly reduced levels of unemployment. Third, ensuring that the stability, orderly arrangements and avoidance of competitive depreciation in respect of exchanges is maintained. Fourth, elimination of restrictions which hinder world trade by helping in the establishment, in respect of current transactions, between members. Fifth, reducing the duration and lessening the amount of disparity in the international balances of payments of members5. Their fundamental difference is that the World Bank is primarily a developmental institution whereas the IMF is a cooperative institution that seeks to maintain an orderly system of payments and receipts between nations. Each has a different purpose, a distinct structure, receives its funding from different sources, assists different categories of members and strives to achieve its distinct goals through methods specific to itself. The primary aim of the World Bank was the financing of economic development and accordingly, the Bank's first loans, during the late 1940s, were disbursed in order to finance the reconstruction of the war-ravaged economies of Western Europe. When these nations recovered some measure of economic self-sufficiency, the Bank turned its attention to assisting the developing countries, to which it has given more than $330 billion as loans. The World Bank's main aim is to promote economic and social progress in developing countries, by bringing about an increase in their productivity in order to enable their citizens to have a better quality of life6. The IMF is involved in key policy negotiations with regard to the exchange rate and the budget deficit. The monitoring of country's economic performance by the IMF provides the basis of so-called IMF surveillance activities over members' economic policies. The World Bank, on the other hand, is far more involved in the actual reform process through its country-level representative office and its numerous technical missions. Moreover, the World Bank is also present in most of the line ministries; the reforms in health, education, industry, agriculture, transportation, the environment, and so on are under