Liberia A country struggling from the effects of civil war

Table of Contents Introduction – Facts on Liberia History of the Liberian civil war Literature review Possible solutions Conclusion References Introduction – Facts on Liberia Liberia is a country located on the shores North Atlantic Ocean in West Africa. Covering an area of 43,000 sq. miles and having a population of around 3.49 million people, its capital city is Monrovia, which has a population of 1.01 million. In addition, the country’s annual economic growth rate as at 2008 was 2.1%.Advertising We will write a custom research paper sample on Liberia: A country struggling from the effects of civil war specifically for you for only $16.05 $11/page Learn More Unlike most African countries, Liberia was never officially colonized; it became a republic in 1847, having been established by slaves who had been sent to the country from the US after being set free. Liberia therefore regards the United States of America as its pseudo-col onialist. There are 16 indigenous tribes in Liberia with the most dominant group being the Kpelle accounting for about 20% of the population. There are also â€Å"descendants of freed slaves that arrived in Liberia after 1820, who make up less than 5% of the population† (US Department of State, 2010). The population of Liberia is predominantly Christian (85%) with Muslims forming a sizeable percentage, 12% (US Department of State, 2010). Moreover, the official language of Liberia is English. Liberia’s mainly depends on agriculture, with rubber being its cash crop. For many years, Liberia was among the stable countries in Africa until the onset of the civil war, which ravaged the country and brought it onto its knees. The country is now trying to recover from the devastating war, with political reforms being put in place. Liberia held its first democratic elections in November 2005, with Ellen Johnson Sirleaf emerging victorious to rule the nation and become the pioneer African woman to head country democratically elected. History of the Liberian civil war Since the inception of Liberia as a republic, it has been ruled mainly by the Americo-liberians. This is despite the fact that they account for less than 5% of the population. This group created legislation, which ensured that they remain in power. They ensured that the members of indigenous communities could not be allowed to vote until 1946 when the law was repealed. However, the domination of the americo-liberians continued until â€Å"1980 when a group from the indigenous Krahn tribe, led by Samuel Doe, staged a military coup against the government† that was led by William Tolbert, an Americo-liberians (Insight on Conflict, 2010). In a surprise turn of events, Doe put to death William Tolbert and many other officials of his government who were mainly americo-liberians and aided in the formation of Peoples Redemption Council (PRC), a party of the indigenous Liberians. This party ousted the True Whig Party, which had been in leadership since the inception of the republic (US department of state).Advertising Looking for research paper on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, Doe’s subsequent rule was characterized by very cruel oppression of political opponents and general nepotism towards his ethnic tribe of Krahn. The favoritism of the Krahn tribe created ethnic tensions between them and other ethnic groups. Doe continued to rule the country until its invasion from Ivory Coast by Charles Taylor, former minister in Doe’s government. By early 1990, Taylor controlled much of Liberia but Economic Community of West African States (ECOWAS) prevented him from seizing Monrovia. In fact, the power struggle between Taylor and Doe created a very bloody civil war (US department of state, 2010). ECOWAS facilitated a peace agreement, which led to the formation of a five-man transition government , leading to disarmament and eventually elections on 19th July 1997 (US department of state, 2010). Charles Taylor’s National Patriotic Party worn the elections by collecting 75%; however, democracy led to increased ethnic tensions in the groups, which were loyal to the opponents of Charles Taylor. At the same time, Taylor’s support for a rebel faction involved in the Sierra Leone civil war, the Revolutionary United Front (RUF), led to regional tensions. This later led to renewed violence in Liberia. The second civil war was ignited by conflict between the Liberians for Reconciliation and Democracy (LURD) group and the local community; however, the government could do little to quell the situation as a result of sanctions, a situation that accelerated the spread to the strife in the country killing dozens of citizens. This culminated in the eventual resignation of Taylor in 2003 after he had lost control of about two thirds of Liberia leading to the arrival of peacekee pers to quell the heavy fighting in the capital Monrovia. Taylor was thereafter put to trial in Sierra Leone due to his support of the RUF, which was involved in the Sierra Leone civil war (Insight on conflict, 2010). Among the root causes of the first civil war in Liberia was ethnicity between the tribes of Liberia. This problem was first cultivated by the americo-liberians who founded the state of Liberia. They denied the indigenous tribes the right to vote in elections and put in place other legislations, which generally oppressed the indigenous Liberians. This was despite the fact that they were not indigenously Liberians and accounted for a very small percentage of the total Liberian population Literature review Many different scholars have studied the civil war in Liberia and proposed different causes of the conflict. One such explanation of the Liberian civil war is the ethnic theory. The country was divided into the americo-liberians and 16 indigenous groups. The people who controlled the country both politically and economically were the americo-liberians; and each of the groups had its own institutions, cultures, and values, as well as motives.Advertising We will write a custom research paper sample on Liberia: A country struggling from the effects of civil war specifically for you for only $16.05 $11/page Learn More The americo-liberians wanted total political and economic control of the country despite the fact that they formed less than 5% of the total population of the country. In addition, the americo-liberians dominated the political and economic aspects of Liberia from 1847-1980. However, they were succeeded by another ethnic community, the Krahn, which dominated the country from 1980-1999. Moreover, each of the groups that was in power tried to benefit only people from the same ethnic group (Kieh, 2008, p18). Another explanation of the causes of civil war in Liberia is known as the settler state theory. This theo ry classifies the Liberian community into two groups: the settlers and the indigenous group. The settlers, the americo-liberians, came from abroad and their main agenda was to establish domination in the country where they settled. The settlers saw themselves as superior to the indigenous group. They tried to make the indigenous group conform to their cultures and termed the cultures of the indigenous group as backward. After the indigenous groups accepted the cultures of the settlers, they formulated laws to help them acquire land and have general domination over the indigenous group. The settlers also gradually become autonomous from the mother nation, and then established systems to advance their general agenda (Kieh, 2008 p25). Both these theories have been used to explain the causes of Liberian civil war. However, these theories are not correct; one important point to note is that in both cases, the theories explain that the civil war is caused by general inequality in the Libe rian society with some groups of people being superior to others. The levels of inequalities between the americo-liberians and the indigenous communities are very high in Liberia. Indeed, the americo-liberians control a large part of the social, economic, and political spheres of the Liberian society. Possible solutions Many countries in Africa have had civil wars including Angola, Congo-Kinshasa, Congo-Brazzaville, Sierra Leone, and Ivory Coast, with Angola having had the longest civil war in Africa (Handelman, 2010). However, depending on how a country tackles the challenges posed by civil war, it may be the springboard for a nation’s path to prosperity. Many countries have emerged even stronger after being on the brink of total collapse due to civil war. For instance, the American civil war helped America to become even stronger politically and economically. Immediately after the war, measures were taken to ensure equality of blacks who were considered inferior to the whit es. This was through the enactment of various legislations by the state, with the thirteenth amendment to the constitution (1865) abolishing slavery.Advertising Looking for research paper on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More The congress then passed legislation to ensure that the blacks had more freedom (the civil Rights Act). This gave the blacks the freedom to enter into contracts, own property and bear witness in court, as well as giving the blacks more economic and political freedom. These and other legislations allowed the states that had left the Union to come back to the union, the result of which was consolidation of peace and prosperity of the United States of America. To reduce the probabilities of occurrence of civil war the government must be able to fully tackle the underlying problems that led to the civil war so that there may be long-term prosperity. In Liberia, the greatest problem has mainly been lack of ethnic equality and fair distribution of resources. These are the main factors that led to the first and second Liberian civil wars. However, the government must first tackle the immediate problems that the country faces due to the prolonged civil war. Disarmament of the youth should b e among the priorities of the government. The government must also devise means of integrating these youths into the community to avoid recurrent violence; for instance, the youth must be taught how to coexist peacefully with other members of the community (Youth in Humanitarian Crises, 2010). The government must also create ways of rebuilding the infrastructure, which was destroyed by the war. These include transport and communication systems, electricity, and improvement in security. However, the most important measure to guarantee prosperity would be the enactment of legislation, which gives economic and political freedom to the population. This would ensure peace and therefore help in attracting foreign investors into the country, thereby helping in job creation and reduction of other problems caused by the war (Radelet, 2007, p 8). The government must also ensure that there is peace and security, in addition to revitalization of the economic activity. Primarily, the majority of Liberians are dependent on agriculture for their income, with rubber being the main cash crop. Therefore, the government should move in quickly to restore the agricultural production in the country through subsidies and other viable agricultural policies. This will not only enhance food supply in the country, but also create jobs for ex-fighters, refugees, and youth. The opening up of the economy through the reduction of barriers to trade will lead attraction of investments in manufacturing and services industries. This will create jobs for both skilled and unskilled people while at the same time enhancing exports, thereby enabling the government get the much-needed foreign exchange. Finally, the government should strengthen the governance and establish the rule of law in the country, strive to create an efficient civil service and eradicate corruption and impunity. The government should also strengthen the judiciary and parliament so that the two may act as foundation for the rule of law (Radelet, 2007, p 9). Conclusion Most third world countries have at one time of their existence either had a civil conflict or are still in a state of civil war. Therefore, civil war presents a major setback for most third world countries in achieving economic and political prosperity. These countries must therefore be able to understand the reasons of civil war in order to avoid them at any cost. Since most third world countries have had the experience of civil war at one time of their existence, how they tackle their post civil war problems determines so much about their future path to prosperity. This will also apply to Liberia, a country that is currently recovering from the pangs of civil war that had significant and adverse effect on its socio-economic and political environments. References Handelman, H. (2009). The challenge of Third World development: NJ: Prentice Hall – Pearson. Insight on conflict. (2010). Conflict Profile: Liberia. Web. Kieh, G. K. (2008). The first Liberian civil war: the crises of underdevelopment. Lang publishing. Web. Radelet, S. (2007). Reviving Economic Growth in Liberia Working Paper 133. Centre for Global Development. Web. US Department of State. (2010). Background Note: Liberia. Web. Youth in humanitarian crises. (2010). Liberian youth and post conflict transition. Web. This research paper on Liberia: A country struggling from the effects of civil war was written and submitted by user Steven M. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Hagia Sophia Essays

Hagia Sophia Essays Hagia Sophia Essay Hagia Sophia Essay Hagia Sophia one of the most admirable buildings ever created, designed by Anthemios of Tralles and Isidore of Miletus, and built under the Emperor Justinian I from 532–537. The building has an Unbelievable way of allowing light into the building, instead of a few large arched windows Hagia Sophia distributes the weight and allows for numerous windows allowing sunlight to pour into the building. Just in the great hallway alone about ten large arched windows allow the beautifully painted mosaics ceiling, marble coverings, and pillars, to come alive. This fantastic design that the main dome is surrounded on four sides by half semi circles which increases the size of Hagia Sophia immensely when standing below the dome. The Dome in a sense is pulled by the four smaller circular ceiling pieces enlarging the space to make colossal room with a ceiling reaching 180 feet. Each room has a flowing design allowing the space of the entire structure to connect so perfectly. The space is spread out in a centripetal way of organization with the hierarchy space being the large area beneath the dome, which sits above 40 arched windows. This dome is said to have â€Å"changed the face of architecture during the Byzantine empire. † ? These windows also prevent rain and other elements form entering through the roof, however sunlight pours in through these windows. When standing beneath the dome it has an illusionistic design that looks like the dome is actually floating above you. Predominantly the great room surrounded by a lesser hierarchy important rooms which ultimately together interlock to form such a beautiful and unique architectural design. : Every part of the building is so large and extremely detailed; each room is an architectural masterpiece. Space and light are the most prevalent features of Hagia Sophia. Once standing underneath the dome you become amazed at how large of a space you are actually underneath while colossal pillars hold up the ceiling where light flows in. Everywhere you look in Hagia Sophia there are intricate pillars made of breathtaking marble. Hagia Sophia is positioned right in the middle of Constantinople, â€Å"Hagia Sophia became the ceremonial centerpiece of city, the last monument of Roman architectural inventiveness carried out to an ethereal vision on a grand scale. † Several large simple geometric shapes penetrate one another to form the building in such a unique and interesting way. â€Å"Hagia Sophia history is shaded with ownerships by many religions. Beginning in 360 to 1453 it served as the cathedral of Constantinople (also known as Istanbul). For a brief period, it began the Roman Catholic cathedral of the area. † ? Hagia Sophia has been rebuilt several times â€Å"The dome was rebuilt after an earthquake caused its collapse in 557; rebuilt by Isidoros the Younger; there were also partial collapses in the 10th and 14th centuries. The church was converted to a mosque in 1453. † Currently it serves as a Museum. Hagia Sophia changed architecture forever and will always be known as one of the greatest pieces of architecture ever designed.

Babe Ruth as cultural symbol Essay Example | Topics and Well Written Essays - 1250 words

Babe Ruth as cultural symbol - Essay Example In this sense, Babe has remained synonymous to baseball and stories about baseball will never be complete without mentioning his name. It is therefore undisputed that Babe becomes a cultural symbol with regard to baseball game. As a cultural symbol, it is important to develop a concept so that it can be understood why Babe is termed such. It is important to look at some of the journals that have tried to account for Babe’s life chronologically, his achievements in the baseball and the kind of attributes that made him to be a renowned baseball player. Babe Ruth formerly known as George Herman Ruth, Jr lived in the period of 1895 and 1948 (Addona 16), during his life; he acquired the nicknames Bambino and later got another one ‘sultan of Swat’. The baseball player from America was involved in almost 22-seasons in the all-prestigious Major League Baseball in the US where he was privileged to be part of three teams between 1914 and 1935 (Addona 18). With his brillianc e in the game, Babe was able to set records in the game that took subsequent players years to break. Known for his talent in the play, babe was able to perform beyond the expectation of many, in this regard, it is important to enumerate some of the performances Babe was able to realize during his time. In the home runs he was able to record 714, which has since been surpassed, in the runs batted in, he was able to record 2,213, which equally has since been broken. He also made sterling performances in the slugging percentage and on- base plus slugging with 690 and 1,164 respectively (Caser 22). These contributions by Babe in the game directly contributed to his fame in during the time when liking of baseball was fast fading. Babe was instrumental in reviving support that was fast dwindling for the game and streamlined the support to life once again. It can also not go unnoticed that Babe’s first team was Boston Red Sox, here he played the position of a starting pitcher but fo llowing his release to New York Yankees he changed his position to play right fielder full time (Tootle 18). He maintained good play in this position that saw him emerge as one of the prolific and dependable players in the team where he stood out as one of the talented and committed payers to bring change in the team as well as in the game. It is arguable that because of his participation in the team, they were able to clinch seven titles in pennants as well as four titles in the World Series. Babe also had an experience with the Boston Braves shortly before retiring and becoming one of the first players considered in an election to the National Baseball Hall of Fame (Caser 25). From the records set by Babe, it is clear the he made immense contribution into the game. Through the records set by him in the initial times, it was possible for the later generations to strive and reach his standards; this can be seen as a form of inspiration to others. Some of them will be cited in this p aper for the purposes of corroborating the statements, babe was the first of all players to in a season hit a target of 60 in home runs and that was in 1927. This mark stood to be the record for as long as up to 1961 when another player Roger Maris eclipsed it with 61 in a season-one point ahead of what babe recorded (Levin 27). That is 34 long years before the record was broken. In his lifetime in the game, he also recorded about 174 home runs; this record also

Immortal Beloved (the story of Beethoven's life, with an emphasis on Essay

Immortal Beloved (the story of Beethoven's life, with an emphasis on romance - Essay Example er and life of the man whose letter contained the words of the title, Ludwig Van Beethoven, the famous composer of the late 18th/early 19th centuries. The film starts with Beethoven’s death. Schindler was his secretary and is charged with settling Beethoven’s final affairs. As he sorts through the various documents left behind, he discovers an old love letter, written in Beethoven’s hand, to someone he calls simple his ‘Immortal Beloved’. The woman is never provided with any further identification, but Schindler runs around Europe attempting to discover who this woman was. As he travels, he talks to many women who played a part in Beethoven’s life. Flashbacks from the women’s memories help to illustrate Beethoven’s life and reveal some of his brilliance, inspiration and imagination. His music provides the musical score. Through this exploration, a great deal is revealed about the composer and his times. The film portrays Beethoven as a sensitive madman, obsessed with his music and with women, in nearly equal order. As the movie is presented, it can be neatly divided into three main segments, each detailing the flashback memory of a different candidate for Beethoven’s beloved. In each one, some aspect of the composer is brought into sharper focus. While the focus of the story is on Beethoven’s love life, it also illustrates how he is also obsessed with the idea of turning his nephew Karl into his own prodigy. The battle that ensues over this child reaches epic proportions, finally forcing Countess Anna Maria Erdody to stand up against Beethoven in court. Besides this countess and Johanna, Karl’s mother, the other woman who is seen to play a big role in Beethoven’s life is Countess Giulietta Guicciardi, his patron and student. There are other women as well; making it difficult to determine just who Beethoven might have meant in his letter, but that is the point. The film, as in real life, never conclusively identifies one woman

Reasons Why Corporate Acquisitions Occur and Fail Essay Example for Free

Reasons Why Corporate Acquisitions Occur and Fail Essay There are a number of reasons why a firm purchases another company. Mullins (2001) stated several of these reasons, one of which includes the most apparent and important reason—to increase profit and maximize its shareholder’s wealth. Elimination of competition is another reason to acquire a firm. Some companies acquire their competitors to reduce competition and improve its position in the market. However, acquisition for this purpose is against the law according to the antitrust acts. As a result, the acquiring firms emphasize in its press release that the acquisition is not anti-competitive but a way to better serve the customers. If the U. S. regulatory agencies, however, construe that the acquisition could be anti-competitive, the acquisition may be blocked. Company growth is also one of the reasons why acquisitions occur. Acquisition is also an approach used when the acquiring firm has excess cash which can be used for investments. To reduce corporate risk, firms also purchase another company which could result in improved earnings and sales stability. For instance, a clothing company specializes in swimwear while another clothing firm designs winter clothes. Thus, purchasing the swimwear company to gain profit during summer and spring is a good strategy to eliminate the sales instability of the winter clothing company caused by the changes in season. This example could also be used to illustrate another reason why acquisitions occur—to enter another market. The target firm’s experience and resources, including its employees’ expertise and business relationships, are readily available for the acquiring firm to take advantage of. Thus, rather than start a swimwear collection of its own, it would be much easier for the winter clothing company to acquire the swimwear company. A company’s resources could also be the target of the acquiring firm. These resources may be tangible (e. g. , plant and equipment), intangible (e. g. , trade secrets and patents), or talents of the target firm’s employees. Another reason cited for acquiring a firm is synergy, which is a term used to describe efficiency gained from doing more than one thing. For example, it is a good strategy for a meat processing company to acquire a leather goods manufacturer as they require the same raw material. Finally, acquisition occurs when the owners of a family-owned business wish to retire or leave the business and the next generation is not interested to continue the business (Mullins, 2001). In an interview conducted by Barnett (2004) for her article, Benoit shared another reason why acquisitions occur. He stated that acquisition allows the acquiring firms to get new clients. The escalating stock prices and reasonable interest rates were also considered as reasons for the increase in the number of acquisition deals (Flanagan, et al. , 2004). Even with these good reasons, many corporate acquisitions fail. A survey conducted by the KMPG reported that 83 percent of the acquisitions fell short of the forecasted plans (Lear, 2000). Additionally, in the book of Galpin and Herndon (The Complete Guide for Merging and Acquisitions, 2000), studies showed that only 23 percent of all acquisitions earn their cost of capital. In addition, the stock prices of acquiring companies rise only 30 percent of the time after an announcement of the acquisition deal. 70 percent of the cases observed also revealed that synergies projected for acquisition deals are unattained. â€Å"People† problems and cultural issues were also noted as the most cited reasons in failed integration (cited in Flanagan, et al. , 2004). Barnet (2004) and Lear (2000) agree with Galpin and Herndon’s findings which cite the clash of cultures of the two firms being combined could be a reason for acquisition failure if the integration is not facilitated well. Acquisitions fail when acquiring firms do not carefully consider and analyze the culture of the two firms being combined and their compatibility in areas like personality, work styles, integrity, and trust Barnett, 2004). References Barnett, S. (October 1, 2004). Mergers: its a culture issue; Most of the time, the reason behind the merger/acquisition is to reach new clients. The National Public Accountant. Retrieved October 27, 2007 from http://www. allbusiness. com/management/583960-1. html Flanagan, D. , et al. (2004). Merger and acquisition opportunities: due diligence activities offer internal auditors numerous opportunities to help ensure the success of proposed company integrations. Internal Auditor, August 2004, 55–59 Lear, R. W. (April 1, 2000). The artic1es of acquisition. The Chief Executive. Retrieved October 27, 2007 from http://findarticles. com/p/articles/mi_m4070/is_2000_April/ai_63609542/ print Mullins, G. E. (2001). Mergers and acquisitions: boon or bane? Central Wisconsin Economic Research Bureau. Special Report, Second Quarter. Retrieved October 27, 2007 from http://www. uwsp. edu/business/CWERB/2ndQtr01/SpecialReportQtr2_01. htm

Audrey Hepbrun: A Hollywood Fairytale Essay example -- essays researc

Outline I. Intro: Thesis- Audrey Hepburn took a difficult childhood and turned it into a gilded fairytale effortlessly. II. Family Life/Growing up: A-Shyness B-Turbulent family III. Suffering in Holland: A-Reasoning to return 1. Childhood in Holland B-"Aware of suffering and fear" IV. Dancing: A-Love of Dancing B-Chorus girl V. Getting into acting: A-Getting started 1. Acting surprise B-First movie role VI. Going to America: A-Can't act 1.Gigi rehearsals B-Audrey makes Hollywood VII. Miscarriage: A- 1st miscarriage 1. Another miscarriage 2. Miscarriage 1966 B-"Gift of God" VIII. Conclusion Audrey Hepburn: A Hollywood Fairytale. Christina Bremmerman Ms. Karyn B. Lentz Honors English 11 May 7, 2002 Bremmerman 1 Christina Bremmerman Ms. Karyn B. Lentz Honors English 11 May 7, 2002 Audrey Hepburn... ...out.("Audrey Hepburn Biography" 3). Even after miscarriages Audrey was still Bremmerman 6 the actress with a perfect life that everyone saw. Giving birth was her greatest feat, even greater than becoming a great actress. She achieved the one thing in life she had always wanted. After many hardships Audrey Hepburn's life changed to the better on the outside, she led the life everyone thought they wanted, but being the scenes she was still being faced with emotional misfortunes. She was a remarkable actress and she becomes even more remarkable as the conflicts of her life are revealed. Bremmerman 7 Works Cited "Audrey Hepburn Biography" [http://www.thefairestlady.com/audrey/printable.html]. May 8, 2002 "Hepburn, Audrey" Americana. 1987 Lavin, Cheryl. "Vital Statistics--Audrey Hepburn" St. Louis Post- Dispatch November 8, 1989 Warren, Jane. The Daily News Woodward, Ian. Audrey Hepburn. New York, St. Martin's press, 1984.

Mckinsey Report July 2012

Day of reckoning for European retail banking McKinsey report July 2012 The dynamics of the global banking sector have been in flux since the beginning of the 2008. Irate creditors everywhere have called for more stringent regulation to ensure that that the interests of financial institutions are more closely aligned with those of their customers and shareholders. The global, European and national authorities have responded with vigour and the regulatory reform to which all banks, wholesale and retail, will be subject in the coming years will have an important impact on their bottom line. The single biggest cause of a reduction in retail banks’ ROE will come from the global regulatory mechanism Basel III, which will place greater capital requirements on banks and more emphasis on adequate funding and liquidity. Furthermore, three important European regulatory instruments, the EU Mortgage Directive, the Markets in Financial Instruments Directive (MiFID II) and the Single Euro Payments Area (SEPA), Payment Service Directive, will also considerably diminish ROE. Finally, the implementation of new national regulation will create further downward pressure on ROE, though this will vary considerably from country to country. This report provides estimates on the impact on capital, revenues, costs and profit margins of all the relevant regulations on each product (both asset- and liability-based) in each of the four biggest European markets – France, Germany, Britain and Italy – which combined constitute 66% of the EU27 retail-banking market. ROE is the standard metric used and the report calculates the cumulative effect of all regulation as if it were all put in place immediately, using 2010 as the baseline year. The paper reaches some important conclusions. Firstly, with regard to national and continent-wide retail banking markets, ROE will fall from approximately 10% to 6% when all four markets are taken as a whole. Below is a breakdown of the effect in each of the national markets: Country France Germany Italy UK ROE Pre-Regulation 14% 7% 5% 14% ROE Post-Regulation 10% 4% 3% 7% Delta -29 -47 -40 -48 The impact in the UK is particularly caustic as national regulation is extensive. In terms of the effect of regulation on the different product offerings of retail banks, asset-based products are generally the harder-hit. In the UK and France, mortgages and small-business loans will be the most adversely affected. Similarly in Germany mortgages, personal and small-business loans will be the most negatively influenced. In Italy, the value of every asset-based product will be impaired. The disheartening truth of the matter is that across the board the ROE of asset-based products will fall below 10%, which is currently the estimated cost of equity for retail banks. On the other hand, liability-based products will prove more resilient. Deposits will become more valuable to retail banks as they are an advantaged form of funding and liquidity under new regulation. Geographically speaking, in France and Germany only investment products and debit cards will be negatively affected and in Italy most liability-based products will escape relatively intact. However, once again domestic regulation in Britain will play a role in reducing retail banks’ ROE, to the extent that all liability products in the UK will be adversely affected. An important section of the report discusses global systemically important financial institutions (GSIFIs). Such pecuniary establishments are considered too interconnected and universal to be subject to the new regulation imposed on smaller-scale retail banks. The Financial Stability Board has therefore proposed additional capital requirements for G-SIFIs, which will induce a further reduction of their ROE of anywhere between 0. 4 percentage points and 1. 3 percentage points depending on the institution. In addition, it will be obligatory for all G-SIFIs to prepare a recovery and resolution plan (RRP) that will provide a strategic map for authorities to wind down the bank in the event of dissolution. The Basel Committee on Banking Supervision (BCBS) is also developing new global rules on risk IT for G-SIFIs which are expected to be issued by the end of 2012. Such regulation will mean that these organisations will be subject to exhaustive supervision and many ad hoc requests, thus amplifying costs and absorbing management resources. The general conclusion of this paper is that it is improbable that banks across the board in Europe will return to pre-regulation ROE levels in the short to medium term. The UK will be particularly adversely affected due to its inflexible domestic regulation. Nevertheless, the paper proposes four mitigative measures retail banks can employ in order to cushion the blow of new regulatory forces on their ROE levels. The first is â€Å"Technical Mitigation†, which essentially involves improving efficiency of capital and funding. Secondly, â€Å"Capital – and funding-light operating models† seek to further improve funding efficiency and reduce risk-weighted assets (RWAs) by implementing changes to their product mix and characteristics and ensuring more vigorous pursuit of collateral and better outplacement of risk. Thirdly, and although they will be severely limited in doing so by regulatory authorities, banks can execute â€Å"repricing† in order to compensate the shortfall in ROE. The paper predicts more repricing in fragmented industries, which implies that the scale of repricing will be limited in the UK, a highly concentrated industry. Types of repricing include new fee-based pricing, modular pricing, partial performance remuneration and value-added packages. Finally, and perhaps most dramatically, financial institutions can engage in â€Å"Business-Model Alignment. Such restrategizing would involve two principle shifts. The first centres on a new, rigorous focus on ROE in retail banks, meaning greater investment in management systems and strengthening their resource allocation processes. The second important shift can be denoted as â€Å"Sustainable Retail Banking,† and comprises four key elements: expansion into new revenue sources, creation of advice for which customers w ill pay, reconfiguration and refocusing of the distribution system to render it leaner and simpler and cutting absolute costs by 20 – 30%. By exercising the above levers, retail banks can create a bulwark against the weight of new regulation and cushion the inevitable reduction in their ROE. Anticipatory forward-planning of mitigation measures is central in adapting to the new regulatory environment engulfing retail banking and will help banks that are fully committed to returning to pre-regulation ROE levels to achieve their post-regulatory reform potential.