Category Archives: Social Studies


Joyjit Sanyal

Dr. Sujit Sikidar,

Ajit Timung,



This present study entitled ‘A study on the Socio-Economic condition of Rubber Plantation workers of Diphu, Karbi Anglong district of Assam’ is undertaken with the objective to throw light on the lives of the plantation workers. Rubber Plantation is a highly lucrative and profitable business and is mostly privately owned. This research work intends to study the condition i.e. the socio-economic condition of the plantation workers in Diphu where the rubber plantation business is flourishing over the last two decades due to its nature. It is a matter of great concern to study the fact whether the workers are able to gain a part of the fruits of the business or not. This knowledge can only be gained by studying the socio-economic of the workers.

The present study is undertaken with the following objectives:

  • To Collect Socio-economic data of workers in the rubber plantation with a view to study the problem faced by them in their working, living and social condition and the extent of the welfare amenities available to them.

Key words: Plantation, unskilled labour, labour welfare, etc.



Socio-generally means society, social and it refers to any number of demographic and social conditions such as the age structure, racial composition, sex ratio, marriages and so on.

Economic refers to the economic conditions such as income, unemployment, rates and so on.

Socio-economic condition refers to an individual level of income, wealth, education and prestige. It consists of the cultivated behaviors of their daily life activities like how they live and earns education, hospitality, wages and salaries, role of family, ethical issue, social responsibility of business.

The  basic objectives of this research on the socio-economic condition of rubber plantation worker is to gather idea and their problem faced by them and to improve their standard of living, education, provide adequate amount of salary and wages, rent and accommodation.


The term ‘Plantation’ has been defined under the Plantation Labour Act 1951 to include any plantation to which the Act, whether wholly or in parts applies and includes offices, hospital dispensaries, school or other premises used for any other purpose connected with such plantation. Section 1(14) of the Act applies to any land  or intends to be used for growing tea, coffee, rubber, cinchona and cardamom which measure 5hectare or more and in which fifteen or more persons are employed or were employed on any  draft of the   proceeding 12 month.


Workers mean a person (including any member of the medical staff) employed in a plantation for hired or reward, whether directly or through any agency, to do any work skilled, unskilled, manual or clerical but does not include:

  • A Medical officer employed in the plantation
  • Any person employed in the plantation primarily in a managerial capacity or
  • Any person temporarily employed in the plantation in any work relating to the construction, development or maintenance of building, road, bridge or canals.

When use in relationship to plantation, it means the person who has the ultimate control over the  affairs of the plantation and where the affairs of any plantation are entrusted to any person (whether called a managing agent, manager, superintendent or by any other name) such person shall be deemed to be the employer in relation to that plantation.


Rubber plays an important role in the industrial and economic development of a country. Rubber plantation provide the principal raw material required for manufacturing of around 35,000 rubber product ranging from toy balloons to tyres of giant moving equipment.

India ranks third in production fourth in the consumption of natural rubber in the world. Rubber Plantations are spread over 5.9 lakh hectares in 16 states. Rubber is primarily grown in Kerela and adjoining Kanyakumari district of Tamil Nadu, the traditional growing areas of the country. Besides these, rubber is also grown in the North-Eastern state like Tripura, Assam, Meghalaya, Mizoram and Manipur.


In any research project it is essential to understand what has already been done in the specific topic that the researcher chooses and what has been done in the wider subject area of that topic. A Literature review is a text written by someone to consider the critical point of current knowledge including substantive finding as well as theoretical and methodological contributions to a particular topic. Literature reviews are secondary sources, and as such, do not report any new or original experimental work. Also, a review of literature can be interpreted as a review of an abstract accomplishment.

  1. Mahalakhsmi, Assistant professor, Bharthiar University Art and Science College, Dec 2012 (IJSETR) volume 1, in her study on the Socio-economic status of women employees in tea plantation industries found out that no. of women workers are facing many problem in the tea plantation. Since women workers are engaged more than the male workers. The study is basically focus on their living condition, wages earning and socio-security benefit. The important factor for their development and the problem faced by the employees are also identified.
  2. V USHADEVI and V.N JAYACHANDRAN (2001) A Project of Kerela Research Programme on Local Level Development (KRPLLD) Centre for Research Studies Thiruvanthapuram. SOCIO-ECONOMIC PROFILE OF RUBBER TAPPERS IN THE SMALL HOLDING SECTOR. The study basically focused on the tapper’s workers. The study found that tapper work is not an easy work as it requires skill and is labour intensive for the good health of the rubber tree and maintaining the longetivity of its production period.
  3. A COMPARATIVE STUDY OF THE INFORMAL CONDITIONS OF THE PLANTATION LABOURERS OF INDIA LABOUREROF INDIA AND SRI LANKA. By Neelam Choudhary and Deeksha Tayal. The study focuses on the section of plantation labourers,who are directly employed by the employer are and contract workers. The study also suggest the effectiveness of any formalization strategy would require collective involvement and social dialogue among all the key players in the plantation sector.
  4. Government of India (1980) Labour Bureau Ministry of Labour   Socio-economic condition of women workers in plantation action. In this study the Government of India focused on the plantation sectors of the labour economical life.

 From the above literatures it is known that many researchers have been done regarding socio-economic condition of plantation workers in different geographical areas. The research gap in this study is that no such study has been done in the geographical area where this study has been undertaken. So the survey has conducted among the rubber plantation firm of Diphu, Karbi Anglong of Assam.


The present research enquiry is undertaken with the following objectives with the hope that a new stock of knowledge may be created with the study undertaken:

  • To Collect Socio-economic data of workers in the rubber plantation with a view to study the problem faced by them in their working, living and social condition and the extent of the welfare amenities available to them.

Plantation crops like rubbers are high value crops of great economic importance and provide huge employment opportunity. Suitable land and also agro climatic condition provide favorable environment for rubber plantation.

Expansion of cultivation, which is one of the reasons for stepping up rubber production on a sustainable basis taking place mainly in non-traditional areas. Diphu is one of such non-traditional areas identified by Rubber Board of India. There is a growing popularity of rubber cultivation in the area. Rubber plantation offer ways for generating additional revenue for the growers.

The beneficiaries under the various scheme of rubber board may also avail of long term financial bank loans in order to supplement the financial and other assistance granted by the Board as well as to acquire financial liquidity for undertaking the plantation operation. The Board will in such instance provide the required technical support to the bank concerned extending finance.

It is gathered from the concerned people that rubber cultivation is highly income generating if managed properly. The small scale cultivators or a grower of rubber is emerging in the district. The implication of this development on firm will be significant. There are of course, several inherent problems of small scale cultivation of rubber like capital lock up due to long gestation period, capital intensive, nature of production systems, processing and marketing problems.

In Diphu, Rubber plantations are very popular and the growers are very much interested in cultivating such crops. The land is climatic in nature which is suitable for rubber plantation. The study reveals three unit level of plantation firm. Out of 15 plantations firm, three unit level of plantation firm has been selected for the study. The firms are privately owned in Diphu.

Out of that unit level is M/S Rongmili Rubber which is located near Matipung 5km distance away from Diphu town. It was established in the year 1990 by Harold Engti a resident of Rongmili, Diphu. At present there are 311 numbers of workers.

Another firm is taken from M/S Tungjang Rubber Estate established in the year 1987 by Mr. Gajendra Timung. The firm is located at Diphu-Lumding road 5km distance from the Diphu town. There are 52 nos of workers.

And the third firm is M/S Babu Teron Rubber firm established in the year 1996 located at Diphu Lumding road 5km from the main town. No. of worker are only 12.

The information collected on the no. of unit allowing all the data are collected in the table all the three unit of firm together.


The research design for this study is descriptive in nature. Descriptive researches are those studies which are concerned with describing the characteristic of a particular individual, or of a group. A descriptive research design can be either quantitative or qualitative. Descriptive research involves gathering data that describes events and then organizing, tabulation, depiction and describing the data collection (Glass and Hopkin, 1984). It includes survey and fact finding.

 Here the detailed study of the Socio- Economic Condition of Rubber Plantation workers of Diphu, Karbi Anglong district is done. The information is collected with the help of an unbiased non disguised and structured questionnaire consisting of close-ended question and field survey.



Simple random sampling is the process of drawing a sample from a population in such a way that each and every unit or item of the population has the equal chance of being included in the sample.

 Two stages of sampling design were adopted for the survey. In the first stage of sampling, the sample size of the unit level or employer level schedule has been determined.

In the second stages, sample worker level schedule have been canvassed.


The Universe of the study contains of the 15 registered rubber plantation firms in Diphu where an approximately 1500 numbers of worker are engaged in the plantation work.


Out of the 15 numbers of plantation firms, three of the units had permitted the researcher to interact with their employees and as such these three numbers of firms forms the sample units for the study.


The sample size includes all the workers belonging from the three unit level of the plantation


 (i) Two specially designed schedules were canvassed for the purpose of this survey. The unit level questionnaire was canvassed to capture the working condition of workers. A unit level questionnaire was designed to collect data for the unit as a whole on important parameters ,like  year of establishment, types of ownership, mode of payment wages and earning of the manual workers, leave and holidays, daily hour of work, sex-wise employment of workers in the plantation, trade union, welfare amenities available to workers, social security and benefit.

 (ii) The worker level schedule is designed to collect the data on living condition of women workers employed in the plantation. The schedule was designed to capture the important aspects like migration, status caste, demographic particular (age profile, marital status, education qualification etc.), Wages and earning total income and saving indebtness, medical expenditure etc.


Data has collected both by Primary and Secondary sources.

Primary data: Primary data has been collected through a structured, unbiased and non disguised questionnaire which consisted of field survey all the workers from different firm gave their relevant information during the survey.

Secondary data: Secondary data has been collected through books, websites and journals based on the relevant topics of the research work.


In course of conducting the survey the researcher faced difficulty in establishing communication linkage with the workers because most of the tribal workers in interior areas are not fluent in any language other than their mother tongue. As a result, the researcher has taken the help of university students belonging to Karbi Community and they were engaged by the researcher for facilitating collection of information.





 The results of the field survey lend us to the following finding:

  • In course of field survey, it is noticed that the worker chosen in 3 sample plantations have absorbed 100% tribal workers from the same locality, who all belong to ST population in the study area.
  • Around 63.3% of the workers belonged to the age group of 25-35 years whereas 20% of the workers belonged to the age group of 15-25 years.
  • Around 36.67% of the workers have never had the opportunity for any formal education whereas about 58.33% of the workers had attended school but couldn’t pass out.
  • It has also been found out that mostly the males are engaged in the plantation works here in Diphu which constitutes about 68.33% of the total population. Whereas the rest constitutes the female workers.
  • 72% of the workers were found to be married and the rest 28% were unmarried. Further, it was also found out that around 30% of the workers interrogated had 4-6 dependent family members, 33% had 2-4 dependents and 30% of them had 1-2 dependents.
  • Around 63.33% of the workers were found to be permanent employees of the rubber plantations whereas 36.7% of the workers were employed casually.
  • With regards to the annual earning of the workers, it was discovered that 40% of them have an annual earnings in between Rs.20,000-Rs.40,000 per annum and 33.33% of the workers earned Rs.40,000-Rs.60,000 per annum, which constituted mostly the permanent workers. On the other hand 21.7% of the workers were found to earn below Rs. 20,0000 per annum. This group mostly belonged to the casual workers. Furthermore, this group may be getting engaged as hired wage workers for contract jobs or seasonal jobs, etc.
  • The Researcher also made his best attempt to get hold of the information with regards to the total household income of the plantation workers. However, in this regards, most of the workers were found to be suspicious over declaring the total household income. The Researcher in this regards could roughly gather the fact that around 66.7% of the worker’s household had an annual income below Rs.50,000 whereas 33.33% disclosed that they had an annual income in between Rs.50,000- Rs.1,00,000.
  • Only 16.75% of the workers were found to have a savings bank account in Diphu, the rest 83.35% were indifferent towards the idea of having any bank account at all.
  • Most of the workers revealed that they had an annual savings ranging from Rs.10,000 to Rs.20,000 at their respective bank accounts.
  • Our study also reveals that banking habits, banking services flourished & multiplied in the tribal society with the growth of plantation activities. It appears that there is a positive correlation between banking services & plantation activities. It does ensures that major plantation activities on the other hand promote financial inclusion in Karbi Anglong district comparatively much better than the other districts of the state.
  • 33% of the workers reported that they were paid their wages on a monthly basis, this section of workers constituted the permanent workers of the plantation. Whereas another 13.33% and 18.34% reported that they were paid their remunerations on daily and weekly basis respectively.
  • However, almost 51.75% of the workers were dissatisfied with the amount of wages structure being paid to them. 41.7% were found to be satisfied with their wages from the plantation. But another 6.6% were unable to undecided on the satisfaction level.
  • It was quite evident from the field study that the workers were highly satisfied with the working hours since 87% of the workers responded in positive when enquired about their satisfaction with regards to the time they have to spend on the plantation.
  • Again 71.7% of the workers were also in favour of the recess that they are provided in the working hours by the plantation management but another 25% shared that they were not happy with rest intervals that they are provided with.
  • Only 65% of the workers responded that they were provided with sick pay leaves whereas the rest 35% shared that they were not provided any kind of sick leaves with pay.
  • Around 66.7% of the workers responded that they were provided medical benefits by the employer but within certain ceilings on monetary benefits. Usually there family members were not considered in the scheme. Further, the amount provided is usually very meager. Another 33.33% were not provided any such facility at all. It may be because of the fact that they were casual in nature. The casual workers constituting 33.33% of the workforce are excluded under the scheme.
  • Usually the workers are required to perform their duties in the open and as such the requirement of Rest Shelter facilities is necessitated. However, the Researcher found out that around 8.3% of the sample respondents said they were not provided with any such facilities. The plantation workers are generally exposed to heat, sun rays, rain and gifts of Mother Nature because of the nature of works involved in open fields. As a result, work facilities under a shed or a thatch is not possible accounting to such worker’s grievances.
  • Only 26.7% of the workers responded that they were provided with the canteen facilities of which only a few were found to be satisfied with the food items served in the canteens. However, the majority of the workers responded that they were not provided with any such facilities.
  • Around 65% of the workers shared that they were provided with housing facilities. The workers are usually provided shelters within the plantation in temporary dwellings. The conditions of the kutccha houses are dilapidated with no electricity facility.
  • From the study it was found out that around 61.7% of the workers responded that their employers provided educational facilities to their children. On enquiring further, it was found out that the employers usually provides a lump sum amount on yearly basis to the workers for getting their children admitted to the schools and for the purchase of books and other materials.
  • None of the employers are found to be providing their workers with insurance benefits.
  • Though the chances of accidents are quite rare in the rubber plantations but all the sample populations responded that their employers bestowed them with accident benefits.
  • Around 60% of the women workers responded that their employers were providing them with the maternity benefits which included 6 months period with half the pay rates. Most of the other responded in negative mainly because of the fact that they fall in the category of casual workers.
  • Finally the workers were asked to provide their overall viewpoints with regards to the welfare facilities they were receiving from their employers. It was found out that 40% of the workers were very highly satisfied with all the facilities provided by their employers. On the other hand, 48.3% of the employees were found to be moderately satisfied. However no workers were found to be highly dissatisfied. Only a mere 3.3% of the workers were found to be dissatisfied.

An in depth analysis and study is conducted to find the Socio-Economic Condition of Rubber Plantation worker in Diphu. Among the three selected units, the questions were framed to understand about living condition, employment status earning wages and benefits from the workers view, the researcher gathered in depth status of both the men and women employees in the rubber plantation. The nature of work is very hard. They are engaged in 8-10 hours of work. Most of the employees have no other tasks leaving apart the plantation work. The region surrounding still remains underdeveloped so the employees have no other sources of employment to improve their lifestyle. The present wage structure is not adequate to run their family. They are leading life in poor condition and also not able to provide proper education facilities to their children.   Only things they appreciates is that they have free water facilities, accidental benefit, maternity benefit, rest shelter facilities, education facilities with which overall they are moderately satisfied as a whole.

 Women tappers represent only a small percent of total sample tapper. Generally, they are forced to enter the field of tapping because of financial crisis of concerned families. They do not have any job satisfaction, because it is difficult to manage in tapping, collecting latex as well as left with household chores. Therefore they hardly have life.


  1. Kothari,CR (2004), Research Methodology, Methods and Techniques, 2nd Edition, New Age International(P)Ltd, New Delhi.
  2. A. Mahalakshmi, Asst.Prof., Bharitiar University of Arts and Science College,Nalparai-642127: International Journal of Science, Engineering and Technology Research (IJSETR) Volume 1 issue 6,Dec 2012 :A Study on the socio-economic status of women employees in Tea Plantation Industries( ISSN:2278-7798).
  3. T.V USHADEVI and V.N JAYACHANDRAN (2001): A Project of Kerela Research Programe on Local Level Development (KRPLLD) Centre for Research Studies Thiruvananthapuram SOCIO-ECONOMIC PROFILE OF RUBBER TAPPERS IN THE SMALL HOLDING SECTOR. Final Report .
  4. Government of India Ministry of Labour and Employment .Labour Bureau Chandigarh (2008-2009) Socio-Economic Condition of Women Women workers in plantation Industry.
  5. D. Rajasen (Sept 2010) NRPPD Discussion paper Livelihood and Employment of Workers in Rubber and Spices Plantation.
  7. Glass ,GV and Hopkins, K.D(1984) Statistical methods in education and psycholology, 2nd Editio Boston Allyn and Bacon .


The Relationship between Risk Management Committee Characteristics and Modified Audit Opinion in Malaysia

Suhaimi Ishak


The purpose of the study is to examine the relationship between risk management committee (RMC) characteristics and modified audit opinion in Malaysia among the non-banking and financial companies listed in Bursa Malaysia. Data is collected from the annual reports of a sample of 300 companies for a period of 2004 until 2009. Both descriptive and multivariate analyses are employed to address the research objectives. The results indicate that separate RMC is negatively related with acceptance of modified audit opinion. Besides, the larger the size of RMC and the higher number of overlapping status for RMC’s members, it probably will higher the acceptance of modified audit opinion. Further, modified audit opinion that has been received at prior financial year is likely to receive the same opinion at current financial year. However, the status of auditor whether big or small firm is not related to modified audit opinion. The findings provide empirical evidence on the development and importance of RMC and its characteristics for the quality of companies’ financial reporting.

Keywords: risk management committee; risk; modified audit opinion; Malaysia



The global economic downturn has exposed the poor risk management practices of many companies and organization (Baker, 2011). At the Corporate Governance Week 2010 and 2011 which jointly hosted by Security Commission (SC) of Malaysia and Bursa Malaysia (BM), the both chairmen of these regulatory bodies stressed about the risk management process and board’s awareness on that process as a key element in the corporate governance practices in a company. The remark was pointed to the board as a key person in establishing and implementing well of risk management process in the company. The remark also is a signal to the board of director (BOD) to give more attention to the company’s risk management profile and the formation of committee at the board level that concentrate on the risk management profile is one of the good initiatives. Again, the deputy executive of SC at the ASEAN Audit Regulators Group Forum 2013 in Kuala Lumpur has stressed about the auditors to consider seriously when assessing the risks surrounding clients’ financial statements. Meanwhile, the objective of the study is to examine the relationship between the risk management committee’s characteristics (separate RMC, RMC size and RMC overlapping) and modified audit opinion issued by the auditors in Malaysia. We seek to ascertain whether RMC enhance the quality of financial reporting particularly on risk profile of the organization. We apply the modified auditor opinion as measure to the quality of financial reporting. In Malaysia, under the best practices in corporate governance of Malaysian Code on Corporate Governance (MCCG) (2007) and (2012) (Revised) clearly stated the board has principle responsibility for “identifying principal risks and ensuring the implementation of appropriate systems to manage these risks”. BOD has the responsibility in setting the strategies and creating the environment for effective risk management system in a company and the existence of RMC is a good step for the effective of the system (Yatim, 2010). The formation of RMC with focusing on the broad areas of risks including internal and external risks will help company in managing those risks without depending only on the audit committee. Some expertise on the company business’s external environmental are needed in RMC rather than depending on audit committee members which have expertise in internal control and accounting transactions. For example, RMC members with expertise on business opportunity and investment will evaluate the company’s viability in future and reducing the risks of going-concern. This situation will reduce the acceptance of modified audit report by the company. The job profile of RMC with focusing on broad areas of risks can reduce the exposure of risks by the company including the external risks such as going-concern risks and competition risks. Consequently, the probability of receiving the modified audit report particularly on risks issue is less due to the effective managing the risks exposure to the company. Theoretically, this situation creates a linkage between RMC and modified audit report and further on the quality of financial reporting.

To be an effective committee, RMC as a board committee should has the strong attributes whether in term of its composition (board size and director’s type), board process (frequency of meetings) and board characteristics (knowledge, skill, experiences, academic qualification, relevant training and multiple directorships). The strong composition of RMC, its process and characteristics is parallel with the argument in resource dependency theory. The theory as proposed by Preffer and Salancik (1978) argued that board (RMC) as a crucial resource to the organization and also acted as a bridge between organization and external link.

The formation of separate RMC is still voluntary in most countries in the world including Malaysia and the function of risk management sometimes is combined with Audit Committee (AC) or directly under the Board of Director (BOD) of the company (Subramaniam, McManus & Zhang, 2009). This study tries to relate whether the existence of separate RMC probably will reduce the issuance of modified audit opinion by auditor. Board size is prominently used in corporate governance studies (Dalton, Daily, Johnson & Ellstrand, 1999) and viewed as an important element of company’s governance quality (Musteen, Datta & Kemmerer, 2010). For the risk issues, the smaller board is expected to gain better oversight function due to the less difference of ideas and approaches. Ong and Wan (2008) argued that larger board may have conflicting in executing and maintaining the board effort norms as the oversight function. They may have conflicting among them for the monitoring and decision made. However, for the company’s business and industry risk oversight function, the vast knowledge and experiences of board’ members are needed (Dalton et al., 1999) and the knowledgeable and experienced directors would be gained through outside as the independent non-executive directors who are not involved with the company’s management function and duty. Some companies have limited members of BOD. The same directors might hold several positions as members of some sub-committee of BOD. The member of RMC might be a member of remuneration or audit committee and the overlapping of directorship by directors is view as the insight to the corporate governance mechanism (Zajac & Westphal, 1996).

The structure of this paper is as follows. The next section provides a brief review of past research and hypotheses development. Followed by research methodology section, analysis of result and discussion. The conclusion and recommendation is presented in last section.

Previous Research and Hypotheses Development

The study on the association between risk management committee’s characteristics and modified audit opinion remains scant and limited. However, some previous study have examined the relationship between board’s characteristics or audit committee composition and audit opinion (see Carcello & Neal, 2000; Farinha & Viana, 2009; Masyitoh & Adhariani, 2010; Wenyao & Qin, 2007; Pucheta-Martinez & Fuentes, 2007). The role of RMC in risk management is relatively unexplored and the literature on that field is limited and scant. Tufano (1996) added the lack of research in risk management committee was due to the lack of meaningful data on risk management practices. Again, Subramniam and Carey (2011) reported that the establishment of formalized system of risk management in organization is more recent development. The establishment of RMC is seen to be a complement to the oversight function of board of director and might be able to reduce the burden of task by audit committee. Zaman (2001) suggested it is impossible to expect the audit committee to implement more than high level review given their lack of expertise and time. It was also supported by Fields and Keys (2003) that RMCs have gained popularity as an important oversight committee. The argument is parallel with agency theory that RMC as a board committee should acted on behalf of the shareholders at all. Furthermore, Subramaniam et al. (2009) added that the existence of separate RMC with focusing on the risk profile was also able to increase the quality of internal monitoring in relation to risk management. Thus, the probability of the company to receive modified audit opinion is less and the first hypothesis is generated as follow:

H1:      The existence of separate or distinct RMC is negatively associated with the probability that the company will receive modified audit report.

A smaller board size is seem to be better for oversight responsibility to monitor financial reporting and related internal control (Farinha & Viana, 2009). However, in their study, the result showed the insignificant relationship between board size and the company to receive modified audit report. It means a board size seems to have no influence on modified opinion. The result is consistent with the earlier study by Wenyao and Qin (2007) which found insignificant relationship between board size and audit opinion and the characteristic of board size was irrelevant to the determinant of audit opinion issued. However, Xie, Davidson and Dadalt (2003) reported the negative relationship between board size and earning management activities. In term of accounting fraud, Beasley (1996) found a positive relationship between the number of board members and the occurrence of accounting fraud. In resource dependency perspective, Boyd (1990) argued that sometimes the small board size is due to the scarcity of resource or competitive uncertainty. The earlier study by Pucheta-Martinez and Fuentes (2007) found a positive relationship between the audit committee size and the company to receive qualified audit opinion. Therefore, the study suggests that RMC size can influence on the probability that modified audit report will be issued by the auditor. A smaller RMC size is better for directors’ monitoring functions and less probability that the auditor will issue modified audit report. This situation leads to the second hypothesis:

H2:      RMC size is positively associated with the probability that the company will receive modified audit report.

One director might be a member of twice or more boards’ committees. A member in the audit committee might be a member of RMC. The overlapping of directorship by directors is view as the insight to the corporate governance mechanism (Zajac & Westphal, 1996). Bettenhausen and Murnighan (1985) argued that the experience and knowledge from the other board membership can be brought to the other board committees and the focal and change can be performed. While Alderfer (1986) mentioned that the multiple board membership experience leads to the affecting board decision it is consistent with resource dependency perspective that board as resource in organization should has a pool of experiences. Most importantly and in agency view, several board membership experiences increased the board oversight control on behalf of shareholders (Mizruchi, 1992). The overlapping of members among boards’ committees gives advantages to the BOD entirely because all the committees are the board committee and not related to management function (Carcello & Neal, 2000). The result of each of committees is needed each other. The poor performance of a company is caused by the less directorship member of directors (Gilson, 1990) and the argument was supported by Kaplan and Reishus (1990) that the less directorship member by directors contribute to the emergence of financial distress company. Thus, the next hypothesis is as follow:

H3:      RMC overlap is negatively associated with the probability that the company will receive modified audit report.



Research Methodology

We use the logistic regression analysis to examine the relationship between modified audit opinion and the variables proposed for the characteristics of RMC. The model used to test the hypotheses is as follows:

MA= β0 + β1 SEPRMC + β2 RMCSIZE + β3 RMCOVER + β4 PRAUREP + β5 BIG4 + ε

where :-



Variable Definition and Measurement

According to Aren et al. (2009) there are five types of audit reports, namely standard unqualified or clean audit report, unqualified with explanatory paragraph or modified wording, qualified, adverse and disclaimer audit report. For the purpose of this study, the unqualified with explanatory paragraph (modified wording), qualified (except for), adverse and disclaimer audit report are classified as modified audit opinion. If a company received modified audit report, the data is valued as ‘1’ in the worksheet and if a company received the audit report other than modified audit report, the value of ‘0’ is coded accordingly.

Researcher considers the existence of separate RMC if the committee has a single committee with title of ‘risk management committee’ without any combination with any other committees including audit committee. Any combination of task and responsibility of risk management with other committees’ task are considered no existence of separate RMC (Combined RMC). For the purpose of this study, if the company has a separate RMC, it is coded as ‘1’ and if a company has not a separate RMC, the value of ‘0’ is coded. This criterion has been used by previous studies such as Subramaniam et al. (2009) and Yatim (2009).

RMC size is the total number of RMC’s members sitting on the committee until the end of financial year. A member will be considered as a RMC’s member if the appointment as member is at least six months and above. If the appointment as RMC’s member is below six months or the resignation is above six months from the financial year end, he or she can not be considered as RMC’s member. (see Farinha & Viana, 2009; Pucheta-Martinez & Fuentes 2007).

RMC overlaps refer to the dual or more functions of RMC’s members on the different board committees. A Member of RMC might be a member of audit committee or other board committees at the same time. For a company, a member of RMC or any other board committees has become a member of other board committees such as remuneration committee and audit committee at the same time but not all the members having such situation. For the measurement purpose, researcher compares the composition of RMC with all the other board committees’ composition to identify the members of RMC with dual or more functions at the same time. Then, the total numbers of RMC’s members with dual or more function are divided by the total number of RMC’s members. The figure is used for this study. This measurement has been applied by Carcello and Neal (2000).

Prior audit report refers to the audit report that a company has received for prior financial year. The researcher has read the independent auditor report that is located at the end of the annual report booklet. The researcher has carefully read the report starting from the first sentence until the last sentence of the report in order to identify the type of the audit report. For the measurement purpose, the researcher coded a dummy of ‘1’ if the company received modified audit opinion for prior financial year audit and a dummy of ‘0’ if the company received clean audit report for prior financial year audit. This measurement has been used by previous study (Pucheta-Martinez & Fuentes, 2007; Carcello & Neal, 2000).

Big 4 refer to the four largest international audit firms in the world. They are PricewaterhouseCooper, Deloitte Touche Tohmatsu, Ernst & Young and KPMG. The researcher looks at the bottom of auditor report sheet to identify the audit firm audited the company. The name of auditor and audit firm stated at that side. If the audit firm is one of the Big 4, the data is coded as ‘1’ and if the other audit firms or not a Big 4 audited the company, the data is as ‘0’. More studies have used this criterion for their researches (Yatim, 2010, Kabir, Sharma, Islam, & Salat, 2011; Farinha & Viana, 2009; Pucheta-Martinez & Fuentes, 2007).

Data Collection and Sampling Procedure

The population frame for this study is all the public-listed companies excluding banking and financial institutions listed in Bursa Malaysia’s website from the period of financial year ended 2004 until 2009. Based on the data gathering through the Bursa Malaysia’s website, there are approximately more than 130 companies with modified audit report for the same period (2004-2009) and there are more than 200 companies which have a separate or a stand-alone RMCs disclosure for the said period (Bursa Malaysia’s website, 2012; Yatim, 2009; 2010). Banking and financial institutions are omitted from the sample as the nature and regulations of these firms are significantly different from non-financial companies. The public-listed companies are chosen for this study. Public-listed companies have published the annual report that publicly available and can be accessed through the Bursa Malaysia’s website.

A match sampling approach is adopted as a control procedure (see Ballesta & Garcia-Meca, 2005; Wenyao & Qin, 2007; Sekaran, 2003). Firstly, the researcher selects the companies with modified audit report for the period of study (2004-2009). Then, they matched to the control samples which have the clean audit report based on the conditions that paired companies are in the same industry, most similar in companies’ size (total assets) and in the same period of financial year (Ballesta & Garcia-Meca, 2005; Wenyao & Qin, 2007). To keep reliable and independence, once a control company has been matched to the corresponding company in the test sample in particular year, it is not allow to be matched again with another company (test sample) in another year (Ballesta & Garcia-Meca, 2005). Besides, any company with never stated of whether separate or combined RMC or risk management matters, it is dismissed as the subject in the sample’s list. Lastly, in this study, there are 150 samples with modified audit opinion are gathered and are matched with 150 samples with clean audit opinion. Therefore, the total number of samples in this study is 300 samples.





Analysis of Result and Discussion

Descriptive Statistics for Samples

Table 1 presents the descriptive statistics result for all the companies, modified audit opinion companies and clean audit opinion companies together with the result of t-test. For variable of Separate RMC (SEPRMC), the result shows an average of 13 per cent from the samples have the separate RMC for all companies but in modified audit opinion companies, the result shows only 6 per cent of the samples have separate RMC while for clean audit opinion companies the result shows an average of 20 per cent of the samples have the separate RMC. As expected earlier, the percentage of companies with separate RMC is larger in clean audit opinion companies due to the characteristic of this separate RMC and its function. For the result of Independent t-test, it shows statistically significant for variable of Separate RMC with level of p < 0.01. It is means that there is a significant difference in average for this variable between two different sets of samples (modified and clean audit opinion companies).

Variable Definition:

For RMC Size (RMCSIZE), the result for three categories of companies (all, modified and clean companies) reveals quite similar with average three members. However, in the modified audit opinion companies, two members are recorded in minimum and maximum with seven members of RMC. It is different in clean audit opinion companies, the result states between three and six RMC members. The difference result indicates that in modified audit opinion companies sometimes have very small members of RMC and maximum can be with quite high. Yet, in t-test, the result reveals statistically insignificant for variable of RMC Size.

The result of descriptive analysis also reports for the variable of RMC Overlapping (RMCOVER). All the groups of samples including all companies have minimum with zero per cent of RMC members have overlapping status or do not hold some other board committee members in the same company. While 100 per cent in maximum for the RMC members with overlapping status for all the categories of samples. In average, the modified audit opinion companies recorded with 77 per cent of RMC members with overlapping status and only 72 per cent recorded in group sample of clean audit opinion companies. This difference is statistically significant at weak level (p < 0.1) as showed in the result of t-test.

For the control variable of Prior Audit Report (PRAUREP), the group of all companies recorded 34 per cent in average for the companies received modified audit report for prior year. The descriptive analysis also shows a larger value for the modified audit opinion companies with average of 67 per cent of the samples have received modified audit report for prior year whereas only 0.7 per cent of samples have experienced the said situation for the group of clean audit opinion companies. The huge difference is already expected by the researcher and the result of t-test also reveals the statistically significant at strong level (p < 0.01) for this difference of mean.

Lastly, for Big4 (BIG4), the result of mean for the sample of modified audit opinion companies is at 47 percent whereas for the sample of clean audit opinion companies is at 41 per cent which mean that 41 per cent of the companies in clean audit opinion companies audited by Big 4 audit firms. However, the mean difference for this variable is not statistically

(Pearson Correlation Matrix) for Variables

Table 2 reports the result of correlation among the variables. The correlations are quite low, generally below 0.3 except for a pair of Modified Audit Opinion (MA) and Prior Audit Report (PRAUREP) which are correlated at 70 per cent with significant at level of 0.01. It is means that MA and PRAUREP have strong relationship with assumption of that PRAUREP has major effect on MA. Besides, Separate RMC also has an effect on MA with correlation by 21 per cent and it is significant at 0.01 levels. The other variables that correlated are between Separate RMC and RMC Size, Separate RMC and PRAUREP, RMC Size and RMC Overlap, RMC Size and Big4. The result also reveals that there is no higher correlation with more than 0.85 which means no multicolinearity problem exist in the samples.




Logistic Regression Analysis

Table 3 reports the logistic regression result. The model consists of independent variables (characteristics of RMC) and control variables with Modified Audit Opinion as dependent variable. The result reports the level of correct classification (the percentage of correct predictions) at 83 per cent while Cox & Snell R Square and Nagelkerke R Square report at 49 per cent and 66 per cent respectively. The Chi-square’s test reports at 203.123 and the model is significant at level of 0.00 (p < 0.01). All the independent variables (characteristics of RMC) are statistically significant while for the control variables, only the variable of PRAUREP is significant.  All the variables are significant at expected direction except for variable of RMCOVER which is significant at positive direction.


SEPRMC          = 1, if the existence of separate RMC, otherwise 0

For hypothesis of Separate RMC (SEPRMC), it is statistically significant at level of 5 per cent and following the proposed direction with negative sign. For coefficient, SEPRMC reports at more than 200 per cent and it means that if a company has separate RMC, the probability of the company wills not to receive modified audit opinion is at 200 per cent. The examples of companies that have separate RMC are Opcom Holdings Berhad, Bolton Berhad and Genetec Technology Berhad. The result supported the argument by Subramaniam et al. (2009) that the existence of separate RMC with focusing on the risk profile is also able to increase the quality of internal monitoring and quality of financial reporting in relation to risk management. Consequently, the likelihood of the company to receive modified audit report particularly for risk issues is less. Meanwhile, Harrison (1987) reported that RMC is seen to specifically enhance the accountability of the board as it provides an independent oversight of various board activities especially on the risk issues. Due to the contribution of the RMC, Fields and Keys (2003) argued that RMC has gained popularity as an important oversight committee even though most of the countries in the world are still not to reserve as mandatory requirement to form the separate RMC in a company. The result is supported the proposition of first hypothesis (SEPRMC) that the existence of separate RMC will influence the company not to receive modified audit report. This result is also consistent with the requirement under MCCG 2007 and 2012 which clearly stated that the board has principal responsibility on the risk process including the identification of principal risk until the implementation of appropriateness system to manage those risks. Consequently, the formation of separate RMC as a board committee is able to enhance the effectiveness of risk oversight function by BOD as reported in the result of this study which the existence of separate RMC give impact on the company not to receive modified audit opinion.

For second hypothesis (RMCSIZE), the result also shows a statistically significant at level of 10 per cent with positive direction as expected earlier. For coefficient, the result present at 69 per cent with indication that if a company with higher number of RMC size, the probability it will receive modified audit opinion is at 69 per cent. The result is consistent with the earlier study by Beasley (1996) which found a positive relationship between the number of board members and the occurrence of accounting fraud. However, the result is inconsistent with the finding study done by Xie et al. (2003) that there is a negative relationship between board sizes and earning management activities. While Wenyao and Qin (2007) found insignificant relationship between board size and audit opinion. A big size of committee cause some members ignore their responsibility and assume the other members will look for the duty and responsibility. As a conclusion for this hypothesis, the size of RMC has influence on modified audit opinion.

Besides, there is also a significant (p < 0.05) positive association between RMC Overlapping (proxy by RMCOVER) and modified audit opinion received by the company. The statistical result shows more than 170 per cent for beta coefficient for this variable meaning that if there are RMC members with overlapping status, more than 170 per cent of the company will receive modified audit opinion. However, the expected sign is negative association between RMC overlapping and modified audit opinion. Some reasons would explain the situation and even though the experience and knowledge from the other board membership can be brought to the other board committees and the improvement can be performed as reported by Bettenhausen and Murnighan (1985) but the burden of tasks should be borne by the RMC members. They might not be able to perform well at a board committee (RMC) even they have successful at the other board committees. They also have to spend a lot of time to the several board committees and the concentration on a RMC that focus on risk profiles is at a minimum of time. The other reason might be due to the knowledge gained through multiple board membership that lead to the board oversight control (Mizruchi, 1992) and they have more aware on the risk issues. The highest awareness on risk issues probably gives highest attention by auditor before the modified audit opinion will be issued. As a conclusion, the result provides support to this hypothesis

For control variable, Prior Audit Report (proxy by PRAUREP) is statistically significant (p < 0.01) and with a positive sign as proposed earlier. For coefficient, it is recorded more than 600 per cent and it indicates if a company got modified audit report at prior year, it is 600 per cent likelihood of the company will receive modified audit report in current year. The result is consistent with some previous researches as performed by Pucheta-Martinez and Feuntes (2007) and Mutchler, Hopwood and McKeown (1997). They found that modified audit opinion that has been received at prior year has higher potential to be received at the same in current year. For companies those received modified audit opinion at prior year, they might not be able to solve the issues at current year. Hence, they have probability to receive the same modified audit opinion at current year. This situation leads to the issuance of same modified audit opinion by the auditor which the old issues are concerned by them. As conclusion from this result, Prior Audit Report has a strong association with modified audit opinion that issued by the auditor.

For Big 4 (BIG4), the result states statistically insignificant and there is no relationship between Big 4 audit firms and modified audit opinion. The finding indicates that Big 4 audit firms have no influence on the issuance of modified audit opinion by the auditor. This situation is consistent with study done by Farinha and Viana (2009) that Big 4 audit firms have no significant relationship with modified opinion issued by the auditor.

Conclusion and Limitations

The result from the statistical analysis has shown some significant findings. Firstly, the result documented that the existence of separate risk management committee (RMC) affects the issuance of modified audit opinion by the auditors. The finding contributes to the knowledge and literature that the existence of separate RMC has implication on modified audit opinion specifically for Malaysian environment. The existence of separate RMC probably will reduce the issuance of modified audit opinion. Consequently, the formation of separate RMC as a board committee is able to enhance the effectiveness of risk oversight function by BOD as reported in the result of this study which the existence of separate RMC give impact on the company not to receive modified audit opinion. The regulators and policy makers have to consider for this situation. The formation of separate RMC should be mandatory in future as to perform the risk oversight function at board level.

Secondly, the size of RMC probably affects the issuance of modified audit opinion. The big size of RMC probably the issuance of modified audit opinion is high. The company and regulators have the choice whether to form the big or small RMC since this board committee has influence on modified audit opinion.

The regulators and policy-makers should also be aware on the overlapping status of board members. They have to look at the number of board committees sited by the board members. Some board members sited for more than two or three board committees in the same company at the same time. They also have to spend a lot of time to the several board committees and the concentration on RMC that focus on risk profiles is at a minimum of time. The result of this study shows the higher status of board overlapping will probably higher in acceptance of modified opinion.

Lastly, the acceptance of modified audit opinion by a company at prior accounting year has effect on the acceptance of same modified opinion at current year.  For companies those received modified audit opinion at prior year, they might not be able to solve the issues at current year. Hence, they have probability to receive the same modified audit opinion at current year.

This study is like as the other studies which has the limitations. This study used the secondary data as the samples which the company’s annual reports are used as the main source. May be in the future, the researcher can use the different method in data collection such as interview with auditors and risk officers. Questionnaires also can be used by the researcher in order to collect the primary data. These type of data collection methods are important to the researcher to know some others implicit information that rose up by the auditors or other respondents. The formation of RMC is till voluntary and not mandatory in most countries in the world. The study for the efficiency of this board committee is limited and scant. Future study should be done on its efficiency in term of other indication like the company market share, profit and investment opportunity. The study should also examine the roles played by this board committee for said indication besides the characteristics of RMC. In term of research framework, this study used modified audit opinion as the dependent variable. May be the other researchers will use qualified audit opinion or going-concern opinion as the dependent variable in the framework. The scope is different for qualified or going-concern audit opinion compared to modified audit opinion. The treatment for each type of auditor report is different and some different results would be produced if different type of auditor report is used as dependent variable in the study.


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Delineation of watershed in Amravati tehsil using geomorphological investigations through Remote Sensing and GIS techniques

Khadri S.F.R*, Sachin Thakare and Pooja Surkar


In this study an attempt has been made to understand various geomorphological factors controlling the various landforms which in turn helpful in the delineation of watershed in Amravati tehsil through remote sensing and GIS techniques. The study area exposes part of Pedhi River and Kholad River which is a part of Wardha Watershed. The present investigations have helped to understand the groundwater potential as well as nature of the watershed with the help of detailed geomorphological investigations. Satellite remote sensing data as well as topographic data has been widely utilised in this study to identify the watershed and groundwater potential zones with the help of latest available techniques.

The results of the present study demonstrate the presence of various hydro geomorphological zones showing their groundwater potentialities which vary from excellent to poor. The study area covering Pedhi watershed shows excellent to good ground water quality whereas the Kholad and Kapasi watersheds show moderate to poor ground water quality. Overall, the present study demonstrates the useful ness of remote sensing and GIS techniques in the delineation of potential aquifers in the region which plays a major role in the sustainable   management of water resources in the Amravati region.

Key Words: Remote Sensing, GIS, Geomorphology, Watershed, Satellite, Topography.



A watershed can be defined as the area of land that drains to a particular point along a stream. Each stream has its own watershed. Topography is the key element affecting this area of land. The boundary of a watershed is defined by the highest elevations surrounding the stream. A drop of water falling outside of the boundary will drain to another watershed (Sewickley Creek Watershed Conservation Plan, 2003). From a planning standpoint, watershed is considered the most ideal unit for analysis and management of natural resources. For optimal use of environmental resources in a region, integrated watershed development approach is still viewed by many to be the most ideal as it helps in maintaining the ecological basis of resources utilization (Sahai 1988). Geomorphology is defined as the science of landforms with an emphasis on their origin, evolution, form, and distribution across the physical landscape. The science that deals with surface features of the earth, their forms, nature, their origin and development is termed as geomorphology. DAVIS (1912) first projected the concept of geomorphic cycle. According to bauling (1950), the role of factors that are important the geomorphology are lithology, stratigraphy, climatic variation and the regional basis for the development of landforms. The use of remote sensing technology for Geomorphological studies has definitely increased its Importance due to the establishment of its direct relationship with allied disciplines, such as geology, soils, vegetation/Land use & hydrology.

Geomorphological mapping involves the identification and characterization of various landforms and structural features. The various landforms can influence a conservation area in many ways like slope gradient, elevation and aspect, affect the quantity of solar energy, water, nutrients and other materials, while the slope affect the flow of materials. Slope is also the deciding factors of intensity of disturbance, such as fire and wind, which are strongly influenced by the pressure of vegetation (Swanson et al 1988).

Study Area:

Amravati Tehsil basically part of Amravati city and the villages around it lying between 220 45” N to 210 20” N and 770 32” E to 780 02” E. Amravati is District place and major city in Vidharbha region. Amravati names comes from Hindu goddess “Ambadevi”, in Mahabharata epic Amravati is a capital of Vidarbha Naresh, and it is a part of Varhad (Berar).


Amravati Tehsil is bordered with Achalpur tehsil as well as Murtizapur Tehsil in North direction and Chandur Bazar Tehsil touches the boundary in east and west direction. Wardha River is naturally separate Amravati District from Wardha District. Wardha River is a major River of Vidarbha region which is join Painganga River in the boundary of Marathwada. Pohra Malkhed is protected forest area in Amravati. The average elevation is 543m from MSL.


Climate of Amravati Tehsil is hot and dry, April to June Month having extremely heat and temperature goes to 450 C as well as winter season temp goes down 110 C which shows temperature variation, Rainy season start from end of June Month to September in an average.


There are three main types of soil present in Amravati Tehsil which is-

  • Deep Black Soil b) Medium Black Soil           c) Shallow black Soil

Crop pattern:

Amravati Tehsil is having different types of Crop Pattern such as Cotton, Sorghum (Jawar), Green Gram (Moong), Soybean etc. but Amravati tehsil as well as whole District is famous for Orange (Citrus Spp.)


In Amravati tehsil Badnera is Major Railway Station of Central Railway. National Highway 6 is passed through the Amravati Tehsil.Fig.1 shows the location of Amravati Tehsil.

Fig. 1 Location Map of Study Area

Materials and Method:

Data Used

  1. Toposheet Approved by Survey of India Having 1:50000 scale
  2. Satellite Imagery LISS data having 23.5m resolution
  • ERDAS Imagine Remote sensing Software
  1. ARC GIS Software






Fig.2: Flowchart showing the methodology used for Watershed

Software used:

  • Arc GIS 10: This software has been developed by ESRI Inc. it is one of the leading software for desktop GIS and mapping. Arc GIS gives the power to visualize, explore, query, and analyze data geographically. In this project Arc GIS has been used to display raster map, digitizing different features and querying the data for finding the attributes for any feature on map. Arc GIS Spatial Analyst is a tool which helps in analysis and understanding of spatial relationships in our data. Reclassify tool has been used to reclassify different data and raster calculator has been used for overlay analysis and calculation of final results.
  • Generation of contour map: Contours are polyline that connect points of equal value of elevation. The elevation points were prepared from toposheets on a scale of 1:50000 collected from Survey of India (SOI). The collected toposheets were scanned and registered with tic points and rectified. Further, the rectified maps were projected. All individual projected maps were finally merged as a single layer. The contours were digitized with an interval of 10m. The contour attribute table contains an elevation attribute for each contour polylines. The contour map was prepared using Arc Map of Arc GIS 10. Contour map is a useful surface representation because they enable to simultaneously visualize flat and steep areas, ridges, valleys in the study area.

Fig. 3: Contour Map of Amravati Tehsil

  1. Generation of digital elevation model (DEM): A DEM is a raster representation of a continuous surface, usually referring to the surface of the earth. The DEM is used to refer specifically to a regular grid of spot heights. It is the simplest and most common form of digital representation of topography. The Digital Elevation model for the study area was generated from the Tin.

Fig. 4: Digital Elevation Model of Amravati Tehsil

  1. Generation of slope map: The Slope function in Arc GIS 10 calculates the maximum rate of change between each cell and its neighbors. Every cell in the output raster has a slope value. The lower the slope value indicates the terrain is flatter and the higher the slope value, the steeper the terrain. The output slope raster was calculated in both percent of slope and degree of slope. Slope map was prepared from the DEM.

Fig. 5: Slope Map of Amravati Tehsil


  1. Generation of watershed: Watershed of the study area was demarcated using the software Arc GIS. Drainage pattern was taken as the input data.

Fig. 6: Drainage Map of Amravati Tehsil


Fig. 7: Water body of Amravati Tehsil

Fig. 8: Watershed of Amravati Tehsil

  1. Ground Potential zones map: Ground Water Potential Zones map of Amravati Tehsil Shown in fig. 9 having four different types of zone, they are Excellent, Good, Moderate and Poor. The Ground Water Potential Zone of Study area generated with the help of drainages, geomorphology and land use land cover with integration of Remote Sensing and GIS technique as well as Geology of that area plays an important role. Geomorphology of the study area having alluvial plain, Denudation Hills and Platues. During weighed overlay analysis, the ranking has been given for each individual parameter of each thematic map and weights of 25%, 35%, 30% and 10% were assigned according to their influence for Soil, Hydro-geomorphology, Land use/Land cover, and Slope themes respectively and obtained the ground water potential zones in terms of Excellent, Good, Moderate and Poor zones in the form of a GIS map.

Fig. 9: Ground Water Potential Zone of Amravati Tehsil


  1. Geomorphology Map: Geomorphology as a science developed much later than geology although several aspects of geomorphology are embedded in geological processes. Geomorphology deals with the genesis of relief forms of the surface of the earth’s crust. Geomorphological mapping and necessary supporting data are crucial to developing countries that are usually under severe environmental and demographic strains. Approaches and methods to map the variability of natural resources are important tools to properly guide spatial planning. In this paper a comprehensive and flexible new geomorphological combination legend that expands the possibilities of current geomorphological mapping concepts. The piece-by-piece legend forms a “geomorphological alphabet” that offers a high diversity of geomorphological information and a possibility for numerous combinations of information. This results in a scientific map that is rich in data and which is more informative than most previous maps but is based on a simple legend. The system is developed to also be used as a basis for applications in GIS.
  2. 10: Geomorphological Map of Amravati Tehsil

Results and Discussion

Five major watersheds were identified in the area. The area occupied by the largest watershed is 167 and it falls under the Sub-watershed category which covers around 66.01 % of the area under study, the second watershed has an area of 37 sq km and this also falls in the sub-watershed category and covers around 14.62 % of the study area, the third watershed has an area of 35 and falls in the category of Micro-watershed occupying about 13.83 % of the study area. There are two small watersheds having an area of 5 Sq. Km. and 9 Sq. Km respectively falling in the category of Mini-watershed and covers around 4% of the study area

  • DEM is the 3-D presentation of the surface derived by the interpolation of contour map. It represents x, y and z-axes in pixel size of the order 23.5 meters. The altitude or z axis ranges from 291 meters to 466 meters above sea level
  • Digital slope was derived from DEM on pixel size of order 23.5 meters
  • Ground water potential zones were identified on the basis of slope of the area. Five classes i.e. very good, good, moderate, poor, very poor, were identified. Most of the area comes under very good and good ground water potential zones. The area which has 1-3% slope has very good ground water potential due to nearly flat terrain, area having 3-5% slope has good ground water potential due to slightly undulating topography and some run-off, area with 5-10% slope has moderate ground water potential because these areas have relatively steep slope leading to high run-off, areas with 10-15% and 15-35% slope has poor ground water potential due to steep slope and higher run-off


Geomorphology as a science developed much later than geology although several aspects of geomorphology are embedded in geological processes. Geomorphology deals with the genesis of relief forms of the surface of the earth’s crust. Certain Natural Processes are responsible for the forms of the surface of the earth. The earth’s surface forms are primarily due to hypo gene or endogenous processes, which include diastrophism, leading to geologic structure, tectonic activity and volcanism leading to volcanic landforms.

Alluvial Plain:

An alluvial plain is a relatively flat landform and created by the deposition of highlands eroded due to weathering and water flow in study area. The sediment from the hills is transported to the lower plain over a long period of time. It identified on the imageries dark reddish moderate to fine texture due to agriculture activities. Alluvial deposits of the area constitute gravel, sand, silt or clay sized unconsolidated material. The area under alluvial plain cover in geomorphological map is 246 sq km.

Denudational Hills

Denudetional hills are the massive hills with resistant rock bodies that are formed due to differential erosional and weathering processes. These hills are composed of Vindhyan sediments which are fractured, jointed having no soil cover moderate to steep slope. On the satellite image, these landforms were identified by light or dark brownish with mix green color due to thick forest cover. The area under Denudetional hills cover in geomorphological map is 32 sq km.

Structural Hills

Structural hills are representing the geologic structures such as- bedding, joint, lineaments etc. in the study area. They are located in the eastern parts of the study area having greenish and reddish tone with rough texture on the satellite image. The area under structural hills cover in geomorphological map is 3 sq km.

Flood Plain

A flood plain is an area of land that is prone to flooding. People realize it is prone to flooding because it has flooded in the past due to a river or stream overflowing its banks. A flood plain usually is a flat area with areas of higher elevation on both sides. The area under flood plain cover in geomorphological map is 1 sq km.

Habitation Mask:

A habitation Mask is an area of land that is occupied by human being. It is human settlement area. It is defined as an area of human habitation developed due to non-agricultural use and that which has a cover of buildings, transport, communication utilities in association with water, vegetation and vacant lands. The area under Habitation Mask cover in geomorphological map is 118 sq km.


A plateau is an elevated land. It is a flat topped table standing above the surrounding area. A plateau may have one or more sides with steep slopes. The area under plateau cover in geomorphological map is 458 sq km.

Water Body:

It is an area of impounded water, areal in extent and often with a regulated flow of water. It includes man-made reservoirs/lakes/tank/canals, besides natural lakes, rivers/streams and creeks. The area under water body cover in geomorphological map is 32 sq km.


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The Study on Influence of Psychological and Socio Cultural Factor on the Share Market Operations. Reference to Batticaloa District, Eastern Province, Sri Lanka.


Stock market is an important part of the economy of a country. The stock market plays a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. That is the reason why, the government, industry and even the central banks of the country keep a close watch on the happenings of the stock market. The stock market is important from both the industry’s point of view as well as the investor’s point of view.

This study focuses the influence of psychological and socio cultural factors to implement on stock market in Batticaloa District in the Eastern part of Sri Lanka. This study was conducted with two research objectives: to find out the degree of psychological characteristics of potential investors regarding the stock exchange and to evaluate the level of support of socio culture environment to implement in share market.Self motivation, perception and attitude is the dimension of identifying the psychological characteristics. Social culture factors are including language skill, brokers support and culture support to mature the socio culture supportive.The study was conducted among the potential investors reside in the various part of the Batticaloa District. The data were collected from the 100 sample of people. The proportionate stratified random sampling method was used to select the sampling units and the structured questionnaire was used to collect the data. The data were analyzed using Univariate Analysis and Bivariate analysis techniques. The unit of analysis was individual person.

Finding of the study revealed that respondents (potential investors) were moderate level supportive to implement the stock exchange as indicated by the degree (measured as mean value) of their psychological characteristics (Self motivation 3.5), perception (3.4), and attitude (3.4). Socio cultural environment (3.17) was moderate level influence. In overall this study was find out moderate level supportive to implement the stock exchange in Batticaloa.

Keywords: Investment, Psychology, Stock Exchange, Investor, and Socio Culture Environment




An island nation situated at the Southern tip of India, Sri Lanka is often referred to as the Pearl of the Indian Ocean. With the end of a bitter three decade long civil conflict, the country is taking advantage of new found peace and stability and growing economic prosperity to make its mark as a global logistics center.

Increased political stability is laying the way for strong growth on investment as the Government formulates long term robust development plans to drive economy wide sustainable growth.

Our nation is developing nation and agricultural one for hundred years due to our capability of resources, gain knowledge and technology requirements even we greater than some nations. If we want to become leading one we should change our habits of investment.

Eastern province is a one of the nine provinces in Sri Lanka. The Batticaloa is a one of the district in Eastern Province. Our society based on knowledge income and saving has an essential role and making the most valuable effects by using financial system at an economic entity level.

The fundamental factors such as economy, industry and company analysis play a key role in investment decision process. In earlier there are few ways to invest their money for more money such as purchasing land and gold, invest in education and business ,life insurance, bank deposit share market etc.. But now there are twenty sectors for investment in stock exchange. Each and every sector is important to develop the nation.

The word Investment refers to the deployment of surplus funds either in the financial assets or in the physical assets with the expectation of getting an optimum return in future. R.Jayaraman, Dr.G.Vasanthi, M.S.Ramaratnam, (JBM&SSR Volume 3 ,2014).

These are under the stock exchange there are twenty sector to invest the money which is functioning under the capital market. First we understand the capital market. The Financial Market, which is the market for credit and capital, can be divided into the Money Market and the Capital Market. The Money Market is the market for short-term interest- bearing assets with maturities of less than one year, such as Treasury bills, commercial paper, and certificates of deposits. The major task of the Money Market is to facilitate the liquidity management in the economy. The main issuers in the Money Market are the Government, banks and private companies, while the main investors are banks, insurance companies and pension and provident funds. The Capital Market is the market for trading in assets for maturities of greater than one year, such as Treasury bonds, private debt securities (bonds and debentures) and equities (shares). The main purpose of the Capital Market is to facilitate the raising of long-term funds. The main issuers in the Capital Market are the Government, banks and private companies, while the main investors are pension and provident funds and insurance companies.

 The Financial Market can be also be classified according to instruments, such as the debt market and the equity market. The debt market is also known as the Fixed Income Securities Market and its segments are the Government Securities Market (Treasury bills and bonds) and the Private Debt Securities Market (commercial paper, private bonds and debentures). Another distinction can also be drawn between primary and secondary markets. The Primary Market is the market for new issues of shares and debt securities, while the Secondary Market is the market in which existing securities are traded. (

Investment, first of all we will learn here that what Investment is? Is Investment just a money or capital? Is Investment just a part of your salary or Income? We will answer all these questions in a single line that Investment is that part of your money whose nominal value increases along with the inflation or time to increase its real value. We will learn some benefits of investing which you must know before investing in stock market.

The part of money which you park in some avenues like Bank Deposits, Real Estate, Jewellery or Stock Market to get some return on that capital in future is also known as Investing or Investment.

There are many Instruments of Stock Market called Securities like Shares, Bonds, Debentures etc. and this stock market have its own benefits in his own way for every person who invest in stock market. We will discuss here the advantages and the benefits of investing in Stock Market which you must know before Investing in stock market.

Easy Liquidity: It is the very first benefits of investing, In stock market shares and securities are traded in very high volume which make it a volatile market so there is very easy liquidity in stock market, like if you want to turn your investment in stock market into cash then you can do that very easily. Flexibility: Investing in stock market is very flexible like the market has ups and downs in prices at every trade session, price of stock market moves with the rapidity and flexibility of this market.

Regulatory Framework: Stock Market works under some regulatory framework to protect and safeguard all its investors. For example: In Sri Lanka the Securities and Exchange Commission (SEC) works as a Regulatory Framework Body to safeguard all investors. Maximum Returns: According to the long term perspective it is found that Investing in Stock Market gives maximum returns. For example:

Business Taste: Well, According to me it is the best benefits of investing in stock market you can ever have, here from Business Taste I mean that when a person trades or invest in stock market everything is here works like a business a modern style business. Sole Proprietorship: If you invest in stock market then you are starting your own business where your investment is your capital, like the more your trade is in profit the more your business grows and you are the only person to run this business that is why investing in stock market is your sole proprietorship business.

While in the midst of important transformation to an industrialized economy, its traditional stronghold in the service industry is growing with simultaneous speed. The change in the mindset of the investor’s leads to change in the trend of investment ways. The investor’s sentiment may either be optimistic or pessimistic. The people sentiment and socio culture sentiment are complimentary to each other. Any change in social change lead to a substantial change in the investor’s behavior similarly any change in the investors’ sentiment leads to a substantial change for social culture environment.

At presently telecommunication, bank and industry and food & beverage sectors are very popular one in the capital market and several advantages on investing shares even in the Batticaloa district still there is so many traditional ways are following by the people on investment. Here share investment way is infancy investment way. It should be encourage due to globalization and survive in future change.

Therefore, I have intended to study the influence of social and psychological factors on implement in share Market in Batticaloa District.


The Sri Lankan share market continues to shine as one of the best performing ones. According to Bloomberg news service in 2009.CSE is one of the most modern stock exchange in South Asia a fully automated trading platform and market capitalization of over US$ 23 billion, it has been one of the best performing stock market in the world, with average daily turnover US$ 18 million.

Batticaloa is one of the districts in Sri Lanka, Still now Stock Exchange did not located in Eastern Province. There are huge amount of lands, higher education institutes, big amount of population who are knowledgeable and so many financial institutions.

If the stock exchange will be establish in Batticaloa district, that gives great investment opportunity to public and it will lead to economic development.

Therefore this present study aims to find out the influence of psychological and socio culture environment to establish the stock market in Batticaloa district.

  2. What is the degree of psychological characteristic of potential investors in stock exchange?
  3. To what extent the socio culture environment is favorable to implement in the stock exchange?


  1. To find out the degree of psychological characteristic to implement in Stock Exchange.
  2. To evaluate the level of favorable of Socio Culture environment to implement in stock exchange.

This research is possible to study level influence of psychological and Socio culture factors to implement the share market, based on gender, education, ethnic group, designation, monthly income level, and investors’ behavior of particular people who are living in Batticalo district.

Therefore the researchers have scope of this study to the Batticaloa district and also selected 100 people which use in proportionate stratified random sample size in Divisional Secretariat Divisions in Batticaloa district to carry out this research study.




Psychological Characteristic

Investors are normally assumed to make their financial decisions rationally according to classical economic theories but some novice investors make unsuitable investment decisions based on irrational exuberance (Ricciardi, 2008).

The investor sentiment is primarily based on investor’s psychology. Individual expectation, Individual optimism, individual ability and individual confidence are the four major psychological components of investor sentiments. On other words the investors sentiments are run by individual expectation, individual optimism, individual ability and individual confidence (R.Jayaraman,Dr.G.Vasanthi.M.S.Ramaratnam, JBM&SSR 2014)

Psychological factors operating within individual partly determine people’s general behavior and thus influence their behavior as consumer. Primary psychological influence their behavior as consumer are perception, motives, learning, attitudes and personality and self concept. Even though these psychological factors operate internally, they are also very much affected by social factors outside the individual. (Pride M Ferrell .O. C, 2006)

Emotional development of children and is part of developmental psychology, the study of changes in behavior that occur through the life span. Cognitive psychology deals with how the human mind receives and interprets impressions and ideas. Social psychological looks at how the actions of others influence the behavior of an individual.


The persons buying choices are also influenced by four major psychological factors motivation, perception, learning, and beliefs and attitudes. (Philip Kottel, 2005)

Consumer attitudes are composite of a consumer’s beliefs about feelings ,about behavioral intentions towards some “object “ – within the context of marketing , usually a brand, product category, or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumers will react to the object.

 Consumer attitude are considered by many marketers to be accurate predictors of consumer behavior, making the study of attitude formation and change an important topic. Attitudes are learned tendencies to perceive and act in a consistent way toward a given objective or idea, such as a product, services, brand, company, store or spoke person. This definition emphasizes the impact on attitude of several of other concepts.

The attitude is a person’s enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea. People have attitudes towards almost everything: religion, politics, clothing, music and foods. Attitudes put people into a frame of mind: liking and disliking an objects, moving towards or away from it (Phillip Kottler

Socio Culture Environment

According to Kottler views culture factors exert the broadest and deepest influences on consumer behavior. Culture, subculture and social class, reference group, family and social roles and particularly important in buying behavior.


Sample of the Study


The total population for the study was in Batticaloa district people. There are 100 people were  selected who are resident of Divisional Secretariat division in Batticaloa District (100%) as sample by using stratified random sampling method.

Data Collection Method

In considering objectives it was a cross – sectional one in the time horizon because data were collected in a one single time from the respondents but the unit of analysis was the people of the selected area in the Batticaloa district.

The questionnaire is a structure technique for data collection. The primary data were collected through questionnaires and interviews from the respondents. The questionnaire developed based on three parts, namely research information, personal information and investor’s behavior. In this research questionnaire is closed ended. In general closed questions are considered as more efficient and reliable than open ended questions. In the research one of the ordinal measures called “Likert’s five points rating scale” is used to require respondents to order their answers.

  1. Methods of Data Analysis

Data Presentation and Analysis

The data were analyzed by using univariate analysis and bivariate analysis techniques. In this case, the unit of analysis was individual person of selected area in Batticaloa district.

Method of Data Evaluation

Each variable is given a scale from 1-5 to show the extent of agreement, based on responses, univariate measures were calculated for each of variables. The mean value is lying in the range of 1-5. The range is explore the particular result of this study the range between 1 and 0.25 is express the low level influence for this study. The range between 2.5 and 3.5 is assumed moderate level influence on this study. The range above 3.5 to 5 is considered high level influence on this study. This decision rule is used to measure the level of influence. It shown in the table.

  1. Implication and conclusion

Psychological characteristic of people on Share Market operations in Batticaloa district.

Psychological Characteristic variable with three dimension including self motivation, perception and attitude are evaluated the influence of Psychological Characteristic of people on the share market operations in Batticaloa. We test through univariate analysis and bivariate analysis techniques. This outcome express the mean value is 3.4733 and standard deviation is 0.4524. It is shown in the table 3

If we want to invest in share market we should wish on the activities. That desire depends on our mind likewise involvement on share market operations also leads by our mind. The society should be support to run the business.

The first objective is obtained through the psychological characteristic variable. It is moderate level supportive on this study.

Extent of Social Cultural Environment Supportive to Invest on Share Market Operations.

Socio Culture variable with three dimensions are knowledge on share market, stock brokers support and cultural support. Those dimensions help to identify the influence of socio culture environment. We test through univariate analysis and bivariate analysis techniques. This outcome express the mean value is 3.1733 and standard deviation is 0.23915.

The second objective is obtained through the socio culture factors. It is moderate level supportive on this study.

Overall Result


Eventually when we observe the influence factors for an establishment of the stock exchange in Batticaloa district. Table 4   clearly discloses that influence factors are moderate level to establish the stock exchange in Batticaloa district.


To examine two variable of research we have used six dimensions. All research variables have been measured due to the nature of measurement and research objectives have been investigated with using of mean and standard deviation that summarized in Tables.

It is commonly believed that the investment decision of the investors is driven by the sentiment of investors. Investor’s psychological characteristic and socio culture trends were carefully indentified with the help of existing review of literature. The study has revealed that image factor has appeared as the most influence factor in determining investors decision making. Similarly individual optimism has become the key factor in influencing the sentiment of the investors.

In Batticaloa district there are many educational institutes those are higher education as university, college of education, teacher’s training college, international school and vocational training center even it is distant from share investment, there are low level of awareness and lack of stock brokers firm and information center on this type of investment. In any type of education should change the people and their society. These institutions can be change through subject of finance and investment. We can revolve the people’s investment pattern through provide psychological training as skill, attitude and knowledge development. This step change social culture environment due to most of them are more believe on educated people so if we change the educational society’s investment pattern other type of society also change into share market. Those are possible; the stock exchange will be established in Batticaloa district because visible services are more invited by the people. Based on this type of investment way some are known well some are unknown therefore, we assume this is a childhood investment way  in Batticaoloa, We state without building we cannot run the business perfectly based on our research.

Finally this study convey people are mostly involved all type of investment even experientially traditional investment is well known by the people than share investment because inadequate resources and deepest knowledge on this field. Psychological and socio cultural motivational factors are motivated the people to invest in share market so implementation is necessary one in Batticaloa district.


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Defensive Walls under Threat: Examining the Status of the Great Medieval Defensive Walls of Dawuro People in Southern Ethiopia

Admasu Abebe*

Zelalem Tesfaye**


Historically, in different countries walls are built for different purposes. Among others, defense purpose is the most common one. For instance, to mention a few, we do have the Great Wall of China was built from 3rdcentury B.C to 17thcentury A.D, the Great Zimbabwe Wall was built from 1100–1450 A.D; the Koso Defense mud Wall in Nigeria was built from1000 to 1500 A.D, in Kenya the Gunda-buche Wall and in Ethiopia, the Jegol Wall of Harer city was built in the 16th century for defensive purposes. Likewise, the Dawuro kings who ruled Dawuro between 16th to 18th centuries pursued a common goal of establishing a dependable defense mechanism by building walls and digging ditches. These defensive walls are known as the great walls of Dawuro or locally named as kati halala keela. The average height of a wall is about 2.6m, and its average width is about 3.5m. The sum total of the rows estimated to be about more than 1000 kms. The walls were made of stones without any joining materials like masonry and cement. The walls had seven main gateways called lappunnmitsa. Accordingly, this paper attempts to elucidate whether the construction technology of the Walls evolved from traditional terracing practices. It also presents why the walls were purposefully built and how they used dry stones as building materials. The article discerns that resource mobilization for the construction was based on the owed quota system in family and village levels. Besides, it found that the walls are being destructed by both human activities and natural factors. The indigenous construction technology and spirit of cooperation that manifested through the living wall of Halala Keela is now prone to extinction. Thus, this article is based on fieldwork between 2010-11 and thus it used primary data collected through observation, semi-structured interviews, and focus group discussion. Besides, secondary data were used to supplement the primary data. Finally, it calls for intervention to put in place the proper management of the heritage and to combat the further extinction of the wall.

Key words: Dawuro, Development, Dry stone defensive walls, Halala keela, traditional terracing practice, Omo Valley

  1. Introduction: People, the Land and the Defense Walls

The history of building ‘great’ walls was associated with defensive roles from arch-enemy.  The historical and scientific values of these walls could be compared to different walls across the world.  For example, the Great Wall of China was built from 3rdcentury B.C to 17thcentury A.D to keep themselves safe from semi-nomadic people; the Great Zimbabwe Wall was built from 1100–1450 A.D as enclosure to the commercial and political center (;  Koso Defense mud Wall in Nigeria was built from1000 to 1500 A.D to control trade centers (Aremu 2007:7). The intermittent warfare, the raiding of slave from the state, the trans-Atlantic or trans- Saharan trade might have forced the society in West Africa to build Segou Walls in between 18th to 19th centuries (MacDonald 2012, 343). In western Kenya, the defensive earthworks enclosures known as Gunda-buche were built to protect human enemies as well as domestic animals from wild animals (Odede 2009:47). In Ethiopia, the Jegol Wall of Harer city was built in the 16th century for defensive purposes. In the same line, the Dawuro people had constructed defensive walls from 16th to 18th Century.

The term “Dawuro” is used to refer to both the people and their land. Currently, the Dawuro is constituted as one of the fourteen Zones in South Nations, Nationalities, and Peoples’ Regional State (SNNPR) in the Federal Democratic Republic of Ethiopia, according to the post-1991 political and administrative reordering. Dawuro zone lies in between the Gojeb and Omo Rivers. Dawuro shares boundaries with Konta Special Wereda in the west, Jimma zone (Oromia Region) in the northwest, Hadiya and KambataTambaro zones in the northeast, Wolayita zone in the east, and GamoGofa zone in the southeast directions. Dawuro has an area of 5,000 km2 (Damene, cited in The Ethiopian Herald, 19/02/2003 E.C). Their language is Dawurotsuwa which belongs to the Omotic language family. Based on the 2007 Ethiopian Population and Housing Census projection, the population of Dawuro nationality is about 846,199. The political centre of Dawuro zone is Tarcha, located at 486 km from Addis Ababa.

Historically, Dawuro had been a highly centralized powerful independent kingdom, until Emperor Menelik II incorporated it into the Ethiopian Empire in 1891. Dawuro’s southern, eastern, and northern strategic border positions were enclosed by vigorous defensive walls. The walls stretched from the borders of Gofa in its southwestern direction and extended to the borders of Wolaitta, Kambata, Hadiya and Jimma zones in its northwestern direction. Conversely, in the western borders from Gofa-Konta to Gojeb River, the kingdom was blocked by a series of defensive ditches with 3 meters depth. These defensive ditches should be equally treated with the Walls, but not dealt well in this paper.

Besides, some sources affirm that in southwestern direction it stretched up to the border of Kaffa as far as south Omo to the areas of the “Ari, Bume and Omo Galab” pastoralist areas (Sied 2007: 27).  The construction of these walls might have begun in the first half of 16th century and completed during the reign of king ;Halala, probably in the second half of 18th century (Elias 1999: 120).  Although the Walls were started by his predecessors, it might have been named after king Halala who finalized the construction. However, for the purpose of this article the authors refer to the walls as “Dawuro Walls” because we believe the walls had not been built by a single king and for consistency purposes.

To commemorate their ancestors’ suffering during the construction process, the Dawuro people consider the walls as sacred places and hence they never walk on them as this might despise their ancestors. In this regard, Blake Janet (cited in Kamenka 2000: 77) stated that the relationship between cultural heritage, cultural identity and human rights as “… the importance to the human beings of the sense of identity given not so much by material improvement, but by customs and tradition, by historical identification, by the religion… the sense of identity for most people is essential to their dignity, self-confidence, value that underlie in the concept of human right itself.” More importantly, Rosabela, (2005:283) stated “without culture there is no future.”

  • Setting the Context of the Problem

Ethiopia is one of the countries, which has long history of civilization and outstanding human achievements. In its jurisdiction, there are copious past attainments that profusely guarantee its civilization (Institute of Archaeology 1966:4). Nonetheless, those achievements are not treated fairly and equally among the diverse cultural materials. For instance, the cultural heritages in southern Ethiopia were not treated as much as those in northern Ethiopia. Kassaye (1998: 12) reported that “the type and number of the heritages that we knew are less than those we didn’t in southern Ethiopia.” He also stressed that “the protection, preservation, documentation and scientific investigation done on the heritages were predisposed to single dimension on those well-known historical heritages” (Kasssaye 1998:13).

The case of Dawuro walls is the untold and unexplored tangible heritage of the medieval period of Dawuro people. This was not without reason. The historical accounts of medieval periods in Ethiopia are distorted, sometimes fabricated and at other times forbid recognition. Hence, little is known about Dawuro walls. For historians, it could seem unread massage in a box of Ethiopian history. According to Oliver (1963: 50) unlike the western history, African history should focus on the living culture and material remains of the past which could serve as primary sources. Moreover, conducting continuous scientific studies on these walls could bring about paradigm shift to the understanding of the history of the so called “uncivilized, barbarian and backward” southern societies. Perhaps, lack of recognition and scientific investigation of the Dawuro walls might have “shadowed” the medieval history of Dawuro and its cultural attributes to the human community.

Leave alone in the 19th and 20th century historical accounts, the case of Dawuro walls is not given any serious attention in 21st century. To the contrary, the massive development projects led by the government of Ethiopia have destroyed some parts of the wall.  Recently, a few archaeological surveys have been undertaken on the kati Halala Defense Walls. First, in February 2007, on the request of the local government for the destruction caused by Gibe III hydroelectric project, Rapid Archaeological Impact Assessment was made by Authority for Research and Conservation of Cultural Heritages (ARCCH) (Hailu 2007: 1). Second, in November 2008, the ARCCH made an archaeological survey and investigated the stone walls of Ijajo keela in Wollaita (67 kilometers long, 1.5 to 2.5m height, 1 to 2.5m width) and Kati Halala Walls in Dawuro (Ethiopian Electric Power Corporation 2009: 147).

  • The Objectives of the Study

The main objective of this article is to discuss the genesis of the construction process of the walls and the defensive strategies of the medieval Dawuro people. In particular, it aims to explain the pouring forces for the construction of the walls, to elucidate the physical structure and the purposes of the walls, and to identify the causes of endangerments of the walls.

1.3. Methodology

This article employed qualitative research methodology in order to dig out qualitative information (Johnson and Christensen 2004: 180). Nominal data were collected during fieldwork in selected sites. During the fieldwork, notes, pictures and video images of the walls were taken. In the meantime, selected key informants were interviewed. Besides, 47 interviewees who had good knowledge of the oral tradition were purposefully selected. Interviewees were selected from five districts but the majorities were chosen from the nearby settlements surrounding the Dawuro walls. Two focus group discussions were carried out. With regard to document analysis, the researcher used reports, letters, magazines, diaries, electronically accessed materials, theses, dissertations and books.

The kati Halala walls and ditches lie in more than 45 kebeles (villages) of the border areas of the zone. From these, nine kebeles were selected as specific study area for fieldwork (see fig. 1 below).

Fig.1. Map of Dawuro Zone and the Study sites

In order to estimate the average height and width of the walls, through non-random sampling technique, 20 sites were selected and measured. Accordingly, the subjects of the study were selected based on “who knows what”. Elders, traditional religious fathers, concerned local politicians and professionals (teachers, lawyers and heritage management experts) were included in the study. Lastly, the data from both primary and secondary sources were transcribed after repeated listening, watching and reading of the records. Finally, it was analyzed and interpreted.

  1. The Genesis of Dawuro Walls: From Terracing to Defense Walls

The long and tall Dawuro walls might have evolved from the people’s indigenous practice of terracing. In southern Ethiopia, some ethnic groups are well known for their knowledge of building dry stone walls as mechanism of soil conservation. For example, the Konso people are known for having dry stone walls terraces to get cultivable surfaces on steep slopes, counteract erosion, assist drainage and encourage the formation of cultivable deep soil (Demeulenaere 2002: 81; Amborn 1989:73). Likewise, the Dawuro people, who live near the Omo River valley, had been practicing construction of terraces[1] from stone and dug trenches to keep the soil fertility since long ago. Besides, according to my informants, terraces helped to protect crops from wild animals like pigs, maintaining soil fertility and protecting it from erosion. In Dawuro tradition, there is also an experience of re-terracing farm plots. A terraced plot may be cultivated for about 4-5 years until it loses its fertility. Then, it will be removed and shifted to immediate spot. The mark where the terrace lay for years will become very fertile, and the shift produces fertile soils for the farmers. Elders in the localities asserted that such a terracing system is a long established knowledge of the society. The elders of Dawuro confirm that these terraces have existed on their farms and grazing lands since time immemorial.

Consequently, one may conclude that the long-standing tradition of terracing and re-terracing of farm plots has laid the foundation and skill for building strong and defensive great Dawuro walls. The designing and planning strategy of the walls also shows us how well-skilled and traditionally trained man power took part in the whole construction process (Hailu 2007:409 and ARCCH 2008:13). As a result, they might have learned the dry stone wall building technology from agricultural practices of terracing. Accordingly, all the engineering skills and architectural know-how employed to the construction were the products of the local skill. However, nowadays, the degree of terracing in Dawuro has significantly declined because of labor intensiveness of terrace construction (Watson 2009: 1) and time consumption. Therefore, these indigenous practices are overlooked by contemporary farmers and state development agencies.

  • The Unsettling Reasons of Dawuro Walls Construction

The construction of Dawuro walls had several presumptions. The first one reveals that it might have begun during the reigns of Kati Mao, from Susungiya clan, Kawo Ubana from Zutuma, Kawo Dina Moha from Zalinisya clan and Kawo Nao Beyedu from Kawuka clan in the first half of the 16th century (Minister of Tourism and Culture 2010:1 and Wogaa 2000:44-45). The second presumption focused on the assumption that the whole process of construction that took more than 20 years was begun and completed during the reign of Kati Halala in the second half of the 18th century.  Most of the sources indicate that the construction of the walls might have begun in the first half of the 16th century, during the turbulent period in Ethiopian history – the periods of Ahmed Gragn`s war[2] and the Oromo expansion. Haberland (1977:3) mentioned that three factors: political, cultural, and ethnic movements that had played a prominent role in the history of the loss of the people of south western Ethiopia. They were the influence of Islam and Arab culture, the spread of Christian Empire, and the Oromo population movements.

Second, pastoralists from around Lake Turkana and lower Omo valley might have put pressure on Dawuro peasants during resource scarce seasons. Hence, these pastoralist groups had been pushing towards the Upper Omo basin up to Gojeb River searching for free grazing land and water, which again forced them to cross the Dawuro territory. Their mobility, accompanied by raids, might have instigated conflict with the highland settlers. Thus, such pastoralist movements might have been causes for everlasting conflicts between the herders and/or with cultivators (Informant J, K & L). For example, according to local Dawuro elders consider the Golda (but Fujimoto (2009: 313 defined golda as Surmic-speaking, chiefly the Bod’i) pastoral groups as entirely merciless, brutal murderers, and greedy ran sackers and raid their cattle during dry season. Furthermore, the current contentions between pastoralists and cultivators around Gojeb River in Wara, Goriqa, Aba and Baza Shota are the signs of the continuity of the conflicts. Therefore, the construction of the defensive ditches and walls along Dawuro territory on a right side immediate to Omo and Gojeb Rivers might be intended to block the routes of these pastoralists along these rivers.

Third, the informants declared that the construction of the Walls were associated with the society’s unity and loyalty. The people “always considered themselves as independent, (Abbo daadada gumiya Dawuro! meaning, “a hero people like a thunder, free, loving their state, jealous of their identity, and having strong unity and solidarity.” Weil Simone (2002:79) theorized: “true liberty is not defined by a relationship between desire and satisfaction but by the relationship between thought and action.” Likewise, the oral traditions of the Dawuro stated that the society had thought and planted vanguard wall to maintain their identity and ultimately their freedom. The strong sense of defensive identity could also be referred from some of the Dawuro proverbs, “qommu bayanappe qodhiy qanxeto” (which means it is better to be slaughtered than lose one’s identity). Accordingly, their intrinsic spirit of patriotism had perhaps helped them to construct such huge walls using their indigenous knowledge.

Finally, the oral traditions collected from the informants confirmed that after the detection of the main security problems of the kingdom, the Dawuro kings usually held public discussions. Afterwards, the congregation promised to build walls and dig ditches on the whole borders to shield from the alien threat. This public promise (oath) is known as “nuu awaa lafunuwa mayizaa” (the oath of our seven forefathers). Accordingly, it had become the hallmark decision for generations to accomplish the construction.



  • Role of Social Structure in Dawuro Wall Construction

The well‑structured social structure of the Dawuro people has played pivotal role in the construction of the walls. Acording to key informants confirmed that the well-organized political administrative structure of the kingdom empowered regional states and they played key roles in the whole construction phases. In such a social and political structure, even their leaders knew the names of each individual (Seid 2007: 41; Wandimu, 2009:17). Tha Dawuro had the following social structure:

King® Woraba® Erasha® Guuda® Daana ® Huuduga® D’uga.

The king rules and oversees all the functions of the subordinate social structures. Worabas (‘regional’ leader) were authorized in each administrative region under the king. It seems that each region under woraba was ordered to fortify its own territory. Then, the construction sites of the regions were also sub-divided for different Erashas (village leader) under the supervision of Woraba. Thus, the quota was given to each woraba to mobilize the people in his/her territory. Labor mobilization takes place through conscription of labor force based on quota system. An individual who could engage in the construction was recruited from each family based on a quota scheme. The quota system was given for each of the seven administrative regions.[3] For instance, if there were four youngsters in a family, two of them would be sent to build the walls and the remaining two would serve the family. If there were no youngsters in the family, the male parent would either go to build the walls or pay additional tribute (in kind: such as offering fatten goat, ox, and/or sheep). Sometimes apart from the quota, some individuals would voluntarily participate in the building process to be regarded as gadaawo means a hero. Thus, we have three approaches of conscription: youngsters are mandatorily required to construct (quota system), a male parent can either take part in construction or pay in kind in lieu of his absence, and finally, in addition to these categories any volunteer can take part in. Later on, the independently built fortifications were interconnected with one another thereby forming complete and unified Defense Walls.

 It is important to note that the building of the walls took place on difficult landscapes of hills, plateau, mountains, plains, and steep cliffs, searching for appropriate sites that could pledge the military defensive strategies. Three to seven parallel rows of walls would be built in the directions where an intensive attack was assumed to arise. The inaccessible steep cliffs, hills, mountains in the border would reinforce the defense system. In these areas, the walls were not constructed instead those natural fences were believed to serve as defensive grounds.

  • Description of the Physical Structure of the Dawuro Walls

The Dawuro walls were constructed on strategic defense positions, skirted by the Omo and Gojeb Rivers. The length of a single row of the wall, estimated to be more than 200km and the sum total of each wall was about more than 1000 kilometers (Ministry of Culture and Tourism 2010: 1). In addition to my field observation, some of the informants stated that the heights, upper width, and thickness of the walls varied according to the landscape as well as the direction from which a threat was expected. The upper width and the heights of the walls, being proportional, give regular thickness of the walls. When the height increased in the plains, the upper width also increased vis-à-vis to the steep hill area. During the fieldwork, 20 selected sites of the walls were measured to estimate their height, width, and thickness. Accordingly, the height of the walls ranged from 1.8 meters in steep hills and ill-constructed areas to 3.8 meters in the plains and well-constructed areas. The average height was about 2.6 meters. The length of the upper width of the walls extended from 1.6 meters in the steep hills and poorly constructed parts to 5.70 meters in the plain and well-constructed areas. The average length of the upper width was about 3.5 meters.

Fig. 2. Partial view of Dawuro walls (photo by the authors).

The dry stone walls were two separate but interlocking walls, tied at irregular intervals. Neither mortar or nor cement was used for bonding. Carefully dressed, sharp and flat stones were placed towards the front sides on the upper part of the walls facing the enemy position. Indeed, it was designed so as to easily crash the enemy who happened to break/cross the wall. Hence, to make the walls strong enough, the proportion of thickness, height and width of the walls were well calculated on the basis of how much a cavalry horse able to jump the wall.

Constructing dry stone walls was very expensive and time consuming. Scholars suggest that building dry stone wall currently may not be cheap even if supported by modern technology. A 1.5m high dry stone wall might cost £270. Walling needs hard work: a good craftsman can build probably three meters of wall a day.

  • Dawuro Walls: Main Gateways and Its Function

As a defensive wall, the Dawuro walls had the ‘killing fields’ in between the Walls, ranging from 300 to 1000 meters, which help the soldiers attack an enemy by surprise. A killing field referred to an area between the first wall and second or third wall. When the first wall was breached, the guards ran to the second wall and ambushed the enemy. Soldiers usually waited on top of the second wall armed with spear, shield, knife and sharp stones. When the enemy came to the killing field; soldiers could step ahead and easily attack them. If the enemy forces breaking the walls were enormous, they would retreat back and hide themselves on the other walls (third to the seventh walls). At the bottom of the walls, very sharp wooden weapons were erected to crash the enemy when they tried to cross the walls.

Moreover, the Dawuro walls had main gateways appropriated to control the import and export trade activities. The movements of people to and from the neighboring kingdoms were highly controlled. These gates did not have doors to be opened and closed rather watched by soldiers day and night. The king directly assigned gatekeepers (Wogaa 1992: 42; Seid 2007: 27; Womdimu 2009:18). The Dawuro Walls had seven main gateways. They were: Gate of Dara, Gate of Aba-Garga, Kaffa Gate, Gate of Qala, Gate of Yelu or Doylu, Gate of Zima Waruma and Gate of Zaba Garada. Here below each of the main gateways are discussed.

  1. Daara Mitsa (Gate at Dara): It is located in Gena Bosa district in Baza-shota around Gibe and Gojeb Rivers confluence. It is found on the top of the first row of the defense walls. Above the gate, there were two rows of Defense Walls and two watching towers on the top of the mountain and there are ten fortresses built on the two sides of the gate.

As illustrated in the figure below, in between the exit and entrance door there were three steps of seats carved from rocks. The gate keepers seat on them to check the incoming and outgoing of the people both for security and to collect tributes. Besides, on the two sides of the gate there were ten forts: five on the right hand and five on the left hand side.

  1. Aba Garga Mista (Gate of Aba-Garga): It is located in the western part and used to control the attacks from Jimma and Konta; yet it was used as trade route to Jimma. As to informants, the forces of Menelik II controlled the territory through this gate in 1891.
  • Ella or Kaffa Mista (Ella/Kaffa Gate): It is located in the Manta-Tulama to protect the territory from aggressors and cattle burglars especially from Kaffa.
  1. Qala Mitsa (Gate of Qala): It is located in the southwestern part on the border of Konta and Gofa. Yet, the cattle raiders from Menit, Bume, and Goldia continuously attacked the Dawuro society during dry season in this direction. Currently, the gate is found in the dense forest of ChaberaChurchura national Park.
  2. Yelu or Doylo mitsa (Gate at yelu or Doylu): It is located in the southern part on the borders of Gamo-Gofa, and Malo.
  3. Zima-waruma or Dangarsa mista (Gate of Zima Waruma): It is located in the eastern part on the way to Wolaitta. In this direction, seven parallel rows of Walls were built to block the attacks from that side.
  • Zaba-garada or Barakenna mitsa (Gate of zaba Garada): It is found in the northeastern part of the region on the borders of Kambata, Tanbaro and

  1. Evaluating the Current Condition of Dawuro Walls

Based on the data gathered from fieldwork, the factors that exposed the heritage to endangerment can be broadly classified into three actors: natural hazards, local communities’ activities and state development projects. First and foremost, the Dawuro Walls remained for half a millennium without any maintenance and protection. Hence, the dynamic changes of climate exerted its own impacts on the heritage. As a result, this heritage is highly damaged by the continuous variation of temperature. Some of those natural factors affecting the heritage are weather, land slide, wind and bank erosion, trees growing on the walls, and wild animals. Second, local people’s undertakings such as settlements, land grazing, use as construction material and others had affected negatively the maintenance of the walls. Third, state led development project had also demolished some parts of the walls. For example, for the purpose of construction of main road part of the Dawuro wall was demolished. Here below, these three actors are noted and analyzed.

Natural Hazards: The walls are located in the hot gorges of Omo and Gojeb Rivers. The temporary variation of temperature and rainfall throughout its age caused the disturbance of structure, joints, curving position and its architecture. As a result, the Walls are cracked and dismantled in various areas. Besides most of the walls were constructed on the topography of steep hills, plateaus and mountains of high potential areas where land sliding occurs. During the rainy seasons, the land highly slides from the top of hills and mountains, causing the Walls crack and break down. Besides, the high erosion rate and some of the small water drainage (during summer season) dismantle it. When strong winds cause trees to tip over, the roots of the trees often displace the structure of dry stone. Furthermore, there are numerous natural growing big trees on the walls and their surroundings. Similarly, the structure of the walls is disturbed when wild fire burns down both the branches and roots of old trees.  These trees dismantle the Walls twice, first in their growing stage and second when they get burned. Finally, the damages also exerted from various wild animals such as monkeys, apes, lions, leopards, buffalo, hyena, antelope, etc often cross the walls while searching food from the other side of the walls.

Activities of Local Community: Here, according to the data obtained from field observation and focused group discussion with local community members, the damages on the heritage caused by settlement and resettlements. As discussed earlier, the high density of population and shortage of farming land might have forced the people to search for free land around the walls and to settle there. Such human settlements damage the structure of the walls and this has been clearly observed during the fieldwork. Second, the inhabitants near the walls graze their cattle in the Omo gorge by crossing the walls. The local people cross these parallel rows of the walls in various directions so that they could access free grazing lands, and mineral waters in Sogida as well as Omo Rivers. The inhabitants around the walls get wood for construction, fuel and agricultural implements from Omo and Gojeb gorges by crossing several rows of the walls.

State-led Development Induced Endangerments: Today, Ethiopia is achieving its economic prosperity through constructing infrastructures such as roads, hydroelectric dams, and others. While the rate of the introduction of development projects and investments increased, the destructions on the heritages are also increasing from time to time. Specifically, when roads and dam construction activities were launched in the area, the heritage was easily removed just like any kind of “garbage” and was disfigured without any due attention for its historical significance.

In this regard, it is very important to elucidate the controversies between development projects and heritage conservation specifically on the Dawuro walls.


Case I: The Construction of Sodo-Chida Road (1996)

In 1996 the Ethiopian Road Authority constructed a road that crossed the walls in seven different parts. To minimize the labor and financial costs of the construction, the contractor simply removed the well-dressed basalt stones from the nearby walls and used it for the construction of road as raw materials without any consulting the Dawuro people or compensating the people. This issue was clearly reflected during the discussion with local community members in the fieldwork. Currently, the road that connects Dawuro, Wolayitta and Oromiya Region (e.g.Jimma and Illu Abba Bora zones) is found in area to be submerged by the Gibe III Dam reservoir. Therefore, the road is realigned in the downstream direction to the Gibe III dam.


Fig.3.  Sodo-Tercha- Chida road construction which cut the walls  (photo by authors)

  Case II: Gibe III Hydroelectric Dam Project2 

Gibe III dam project is being constructed on the Omo River between Dawuro and Wolaitta zones in SNNPR. The reservoir of the dam extends for about 150 kilometers over the narrow Omo River gorge from elevation 670 to 896 meters above sea level. It has the capacity to produce 1870 MW and an annual energy production of 6,500 GWh, which provides great input for the development of the country (EEPCO 2009: 1). On the other hand, such a big project has its own side effects on the environment and historical heritages. For instance, The Great defensive stone Walls of Dawuro are one of the historical resources located in the west bank of Omo River (from 1 to 2.5 kilometers away) and exposed to a serious destruction due to this project. The impacts of Gibe III dam project on the heritage is examined at three levels: during initial stage (the building of road routes, camps, clearing of trees and geological excavation), construction stage (digging foots of dam, bulldozing trees and stones to remove waste materials from one site to the other) and operating stage (its partial occupation by the reservoir).

At the end of 2006 mid-day international consulting engineers of Gibe III hydroelectric project reported to ARCCH that they had encountered the elongated stone of kati Halala walls in Dawuro and Ijajo wall along the Omo River (Haile 2007:399). Besides, in November 2007 they also sent a letter to Dawuro zone administration stating that:

According to our research findings, we found that the historical wall, built by King Halala of Dawuro, has total length of 175km, highest 2-2.30 in the project area. During the operation stage of the Dam, about 5km of the wall was partially submerged by the reservoir. Therefore discussion with concerned body is needed about the aim of the project, and the expected impacts and rescue mechanisms.

Based on this request, from January 28 to February 4, 2007 preliminary archaeological survey and rapid impact assessment was conducted by team of 3 ARCCH experts and 1 from the mid-day international engineers consultancy particularly in the accessible area of Zima-waruma Kebele in Dawuro zone (Hailu 2007: 400). Later, on November 20, 2008, ARCCH conducted fieldwork survey in 2 phases: first from October 3-14, 2008 and second from October 15- November 2, 2008 in five zones (Wolayita, Dawuro, Jimma, Hadiya and Kambata-Tambaro) of reservoir outpouring areas and adjacent buffer zones. Its principal aim was to evaluate and locate archaeological resources in the proposed area (ARCCH 2008: 2-3). This interim study stated that a total of 45 sites of Archaeological importance were located in the course of the survey; most of these sites are located above 893masl (below 893masl expected to be submerged by the reservoir). Out of this, 4 sites were identified in Wolaitta side of the Omo River whereas 41 sites were found to be in Dawuro zone (Loma and Gena-Bossa woredas) on the western side of the same river. Eight sites were found in Subo-Tulam kebele (found in Dawuro) where the construction of the dam and its related activities are taking place and located between 700 to 920 masl and found between 2 to 2.5kms away from the Omo River (ibid: 8-9). This report also concluded that most of the discovered sites contain defensive walls which might be affected by the dam reservoir. The report also added that two sites from manara locality in kindo-koysha district of Wolyita zone and six sites from Dawuro zone will be affected by the water of the reservoir.  Besides, the walls that descend from shirgimi mountain of Dawuro to the same valley can be flooded by the reservoir through shirgimi Valley that joins the Omo Valley. Moreover, three sites that preserve the Halala defensive walls could be affected by the construction activities and may be covered by water if the reservoir is over flooded. Sied (2007: 27) also anticipated that “the newly constructed Gibe III hydro-electric power station may affect its (Halala walls) historic significance in the future.” Even though the interim archaeological survey partially identified the impact of Gibe III dam on the Halala walls, it was reserved from describing the magnitude and scale of the impact in measurable units (like kilometers, meters and so on).

Fig. 4. kati Halala wall located immediate to Omo River in flooding zone (photo by the authors)

At the beginning of January 2009, a discussion was held between the Mid-Day International Consultancy Engineers and Dawuro zone administrative bodies (with five members) on the importance of the project, impacts of the project and compensation issues. Among the other issues, it seems that the zone administrative officials stressed in their discussion about the historical significance of the walls for Dawuro society and attention should be paid to preservation activities.

On the contrary, some of the government owned magazines (zemen metset October 2006: 48), by referring to environmental and social impact assessment, stated that about 2% of the Halala walls (5kms) would be flooded by the reservoir. Disputes, surprisingly Abraham Dereje reported in the Ethiopian Herald (October 13 and 23/ 2013) that:

The construction of Gilgle Gibe III Hydroelectric Dam, which is expected to go fully operational in April 2016, will not have any effect on King Halala wall. A research undertaken on the dam`s environmental effect revealed…. that the artificial lake which will cover about 150 km of land will have no effect on King Halala wall, which was constructed by king of Dawuro in the 16th c to protect the people from external attack. The 175 kms long wall is completely free from any possibility of being under the water of artificial lake unless unexpected flooding happens in the area, Yacob noted. … However, the water of the artificial lake is expected to cover 2% (1.34 km of the 67km long wall) of King Ijajo wall, the other wall is located in Wolayta zone…  the dam`s reservoir will not totally have any effect on King Halala wall while only 2% of King Ijajo wall may be covered by it.

This quote may indicate the controversies of the interim archaeological survey findings and the government reports regarding the impacts of Gibe III on the kati Halala walls. Moreover, the existence of favoritism of studies towards the development projects could seems lead to wrong conclusions. Specifically, even though the interim archaeological survey suggested that six sites of Halala walls of Dawuro and two sites of Ijajo wall in Wolayita will be flooded by the reservoir, it has showed favoritism towards Ijajo wall. Likewise Tsadiqu (2014: 47) stated that even though the designed rescue mechanisms for Ijajo wall, which was built by the provincial ruler of Walyita seems fair, but it couldn’t put a clear rescue mechanism for kati Halala walls. Thus, the exact part of the heritage that would be submerged by the reservoir is unknown because of the absence of appropriate documentation and continuous in-phase archaeological and historical assessments.

On the other hand, it could be argued that, the commencement of Gibe III project in 2016 will have the following merits, if properly handled: promotion and conservation of the Walls; archaeological importance of the walls, the registration of the walls as national and international heritage, access to additional infrastructures (like boat and road transportations), and attract tourism and recreation development. These are the hopes aired despite the damages it causes to the heritage the Dawuro people cherished for centuries.

In nutshell, any reasonable person can see that the natural, local communities and the state led development projects are causing serious damages to the Dawuro wall. Leaving beside the controversy over the impact of the dam would have on the Dawuro Walls, serious attention to its conservation shall be given. According to UNESCO (2013: 25) there are two main approaches of conservation and management of heritage. The ‘conventional’ approach refers to the methodology adopted by the conservation professionals on the conservation of the materials of the past to be preserved for the sake of future generations. The other is ‘value-led’ conservation approach based on the values attached by all stakeholders (not only by the experts). In the latter case, conservation and management plans should be based on local values and, more importantly, on the cultural significance of heritages to the society. For instance, the Dawuro people regard the Wall as the symbolic and feels about their destruction stating that “walls are built up on our forefather’s bones and bloods and even walking on them is taboo” (EEPCO 2009). This has to be positively viewed and valued so that its protection shall be built on this value.

  1. Concluding Remarks

The great Dawuro walls are complex, unique and famous medieval dry stonewalls in the Omo Valley. The walls have been considered as signals for the existence of high degree of political and social cohesion of the society. The walls are sources of self-inspiration, pride and identity for the society that witnesses the patriotic deeds of the people by building strong unity. Historically, it is the living testimony for the Medieval Civilization in the Omo Valley during the 16th to 18th centuries. Scientifically, it can help to investigate the indigenous architectural technology in dry stone building and a potential area for research in archaeological, historical, and engineering fields of studies.

However, this article found that, first, state-led development projects are jeopardizing this historical heritage and worries of the Dawuro people are sidelined. Lack of emphasis from ARCCH for conservation of the walls at national level undermined its necessary cares and protections. This indicates that it needs cooperative conservation campaign to protect, safeguard, and preserve the heritage. Second, there should be an attempt to: first, launch awareness creation training for the local people and design a participatory and integrated conservation projects. Third, authors suggest that, it is quintessential empowering local experts and researchers on sustainable preservation. Third, do deep inventory assessment and research on the side of the effects of development projects on the heritage and clear naturally growing trees from the walls. Fourth, involve public universities and other research institutes in the conservation process, create open-air museums, build recreation centers and organize tour exhibitions.
















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* Lecturer in History and Heritage Management at Mada Walabu University. He holds MA in Ethiopian Studie from Addis Ababa University. He can be reached at:

**Researcher at the Institute of Indigenous Studies and Lecturer in Law at School of Law, Dilla University. He holds MPhil. in Indigenous Studies from University of Tromso, Norway. He can be reached at:

[1] Even today, the low land area of Hala, Qayi, Sayki, and Zima Waruma Farmers Associations (FAs) in Loma Woreda and Dachiya Deneba, Zaba Garada, Dasha Aja, Garada Bachira, Garada Intela FAs in Gena-Bossa district had numerous early terraced plots. Those terraces found in the farm plots and in the forest were about 1 meter high and 0.5 meter wide. The distance between the corresponding terraces was about 5 meters. In those localities, small basalt stones could be found on most of the farming lands.

[2] In addition, there was a myth about “Gragn’s war” and his personality among the Dawuro oral traditions. There were a number of stone stelae called “Gragnsucha” (Gragn`s stone). According to the tradition, these stones were erected by the left- handed “Ahmed Gragn” as an anchor for his horses. Others maintain the view that it was the place where his soldiers were buried and these stelae were grave markers. Hence, these stones and the myths related to them strengthened the suspicion that the walls might have been constructed during the “Gragn’s war”.

[3] These seven administrative regions include: Gena, Bosa, Loma, Koyisha, Mareqa, Tocha and Isera.

2 This is not intended to publicize against the development project unlike to some of western media. But it is for the big deal to define the challenges for conservation of “undefined Ethiopian Heritage”

A Review on Impact of Teacher Training Programs on the Attitude of Teachers

Reuben Nguyo Wachiuri



The purpose of this paper is to look into the impact of teacher training programs on the attitude of teachers. The preservice and in service programs were considered. Various aspects were looked at such change of attitude towards inclusion, use of ICT, teaching profession, micro teaching and so forth. The results show that teacher training impacts positively on the attitude of the teachers. Notwithstanding individual teachers have particular temperaments and personality traits that influence how they approach new ideas and situations. Thus, learning outcomes in teacher education are a function of both what programs offer and what teacher trainees bring to the training course. It is also worth noting that at times experienced teachers did not have a change of attitude but they had an improvement in their efficiency. In some cases teachers change in attitude did not translate to a change in behavior due to lack of facilities in the schools.

Key Words: Attitude, pre service training, in service training, teacher trainee


Education is undergoing transformations across different parts of the world including Africa. The reform impulse has seen the rise and construction of new learning standards and assessments which will only work if there is investment in the capacity of educators to work together effectively. It’s time to clear away non-essential demands and build capacity in our schools for smarter teaching and learning. Educators are ready for it, students deserve it, and our future prosperity and security require it (Valerie Strauss, 2013). Improving teachers by building their capacity in their professional and personal life is important in the process of reforming education.

Today, students need to learn how to transfer knowledge and skills to real-world problems by communicating and collaborating in groups locally, nationally, and globally to find creative solutions that are innovative, efficient, and sustainable (Valerie Strauss, 2013). Instead, we have 21st century learners being taught by 20th century teachers in a 19th century educational system (Asia Society, 2012). Because of the globalized world’s new demands for careers and life in the 21st century, international educational leaders are transforming outdated educational systems to reflect a variety of instructional strategies and assessments that will engage multicultural and diverse student populations.

According to Trorey and Cullingford (2002), teachers are central to the capacity of schools to perform and no amount of policy reform will make education more effective unless teachers are

part of the change. One of the fundamental facts that educators and teachers have to bear in mind

is to know how important it is to have the ability to stay current and utilize the most up to date

information. Continuous provision of teachers needs through different forms of support such as

training and other forms of career development are a crucial component in nearly every modern

proposal for educational improvement. Regardless of how schools are formed or reformed, structured or restructured, the renewal of staff members’ professional skills is considered

fundamental to improvement.

Global trends show that majority of our teachers have had opportunities to attend well developed and thoughtful workshops on how to transform teaching and learning. However, the enthusiasm engendered by the workshops wane when they return to the classroom and the reality of the thousands of other things that have to be done in order to achieve effective teaching and learning (Joyce and Showers, 2002).


Attitude on Inclusion

            There is some evidence that an important predictor of successful integration of students with disabilities in regular classrooms is the positive attitude of teachers (Sharma, Florin, Lowerman & Earle, 2006; Al-Khatteb 2004; Avramidis, 2001; Mowes, 2000; Elloker, 1999; Gadium, 2002; Dover, 2002; & Mckeskey & Waldrom, 2002). Research evidence also sugggests that positive teachers’ attitudes towards inclusion often begins during pre-service teacher preparation (Jung, 2007; Avramisids, Bayliss, & Burden, 2001; Campbell, Gilmore, & Cuskelly, 2003; Shippen et al.,2005). Subban and Sharma (2007) pointed out that if teachers leave from the university with negative attitudes then those attitudes are difficult to change. Consequently, positive attitudes can and need to be fostered through both training and positive experiences with students with disabilities.

            The effect of teacher preparation for inclusion is known to have significantly affected pre-service teachers’ attitudes in both Jordan and UAE. Teacher efficacy in implementing inclusion directly affects their practices and attitudes toward including students with disabilities in general education (Sharam, et al., 2006; Pace, 2003). Both males and females had negative attitudes towards people with disabilities in both Jordan and the UAE. One reason for the negative attitudes of males and females could be that pre-service teachers in this study had not been informed that students with special needs would be included in their classrooms and that, as general educators, they do not prefer to be responsible for teaching students with disabilities in the regular classroom. Other reason could be attributed to the fact that the number of male students in this study was small (Al Zyoudi M., Al Sartwai A. & Dodin H.2011).

            Jordanian pre-service teachers had more positive attitudes than their counterparts in UAE. This result could be attributed to the fact that UAE as a nation is relatively new, having been established in 1971; hence, much of its effort has been devoted to creating new programs and services in all aspects, particularly in education. These efforts are still in early stages and need more time to prove their effectiveness. In contrast, Jordan has a long history of providing education for all students. Education in Jordan has received much attention and improvement including preparation of teachers, programs and curriculum. These developments play a major role in improving the quality of services and programs which reflects on improving pre-service teachers attitudes towards inclusive education. This interpretation seems supported by Sharam et al., (2006) who concluded that pre-service teachers from Western countries (i.e. Australia, and Canada) had more positive attitudes toward students with disabilities than their Eastern counterparts (i.e. Hong Kong and Singapore).

            Pre-service teachers in the UAE considered the absence of appropriate materials and equipment as barriers to successful inclusion. Pre-service teachers in this study were critical of the services provided for students in general education classrooms. On the other hand, in Jordan, pre-service teachers showed positive attitudes towards inclusion, because they found appropriate resources that facilitated successful inclusion. This result is supported by Alzyoudi (2006) who found a strong relationship between sufficient resources and successful inclusion. Pre-service teacher education must, therefore, be concerned with the promotion of teacher attitudes as well as instructional competences (Andrews, 2002; Reinke and Moseley, 2002).

            Pearson (2009) says that teacher education is a context in which changes in attitudes, beliefs and values do occur. Atkinson (2004) and Forlin et al. (2009) note that if the negative attitudes of pre-service teachers are not addressed during initial teacher education, they may continue to hamper the progress of inclusive education efforts in schools. Training in special/inclusive education has consistently been found to have influenced educators’ attitudes (Campbell et al., 2003; Cook, 2002). Lancaster and Bain (2007) agree that in general, there is a positive change in attitudes after undertaking an inclusive/special education unit of study and this is the case across a number of contexts and countries (Ching et al., 2007; Kyriakou et al., 2007).

            However, Molina (2006) found research evidence to demonstrate that theoretical classes and reading are not sufficient to modify teachers’ and students’ negative attitudes towards pupils with special educational needs. Loreman et al. (2007b) conclude that if pre-service teachers are going to develop positive attitudes towards inclusive education, they need opportunities for direct interaction with people with disabilities, instruction on policy and legislation relating to inclusive education, and opportunities to gain confidence in practical teaching situations with students with disabilities.

            Johnson and Howell (2009) also show that attitudes are amenable to change through a course and an assignment that involve the analysis of case studies in inclusive education. Elhoweris and Alsheikh (2006) suggest that attitudes can be improved by increasing students’ knowledge about learners with disabilities and ways to meet their learning needs and suggest that teacher education programmes may need to include more alternative learning styles and instructional strategy.

            Lambe (2007) found that successful teaching practice in the non-selective sector had the most positive influence on perceived competency and on general attitudes towards inclusion.  A study by Yellin et al. (2003) however, concluded that mere exposure to students with additional needs may not be enough to change attitudes in a positive way –it is the quality of experiences which produces real change. Campbell et al. (op. cit.) provided a one semester course on human development and education and field work with learners with Down syndrome. Following this, students felt significantly less discomfort, uncertainty, fear and vulnerability when interacting with people with disabilities. They also reported feeling less sympathy, an outcome also noted by Tait and Purdie (2000) which may indicate a more relaxed approach to disability as opposed to an overly sympathetic view.

            Studies overseas have found that many teachers have less than positive attitudes towards students with disabilities and their inclusion in general education classrooms (D’ Alonzo, Annemaree Carroll and Giordano, & Cross, 1996; Vaughn, Schumm, Jallad, Anne Jobling, Slusher, & Saumell, 1996). In a study of teachers in rural British Columbia, it was established that both their in service and preservice education had inadequately prepared them for the realities of inclusion (Bandy & Boyer, 1994). Teachers reported a high percentage of children with special needs in their classrooms who had a wide range of disabilities. They revealed a grave concern pertaining to the lack of support services available to the students and themselves, and disclosed a perceived inability to provide optimal educational programs to children with special needs because of inadequate teacher preparation and lack of adequate resources. Of 231 teacher trainees in Northern Ireland and Scotland, 96 percent indicated that they did not believe their professional training had prepared them to meet the challenge of inclusive education (Wishart & Manning, 1996). Another study conducted in 45 states in the U.S.A. concerning inclusion reported that respondents did not feel prepared to meet the needs of their students with disabilities (Lombard et al., 1998).

            Hickson, (1995) asserts a positive attitude change towards people with disabilities was noted on completion of a mandatory disability course component. In addition, attitude formation and change were also linked to contact with people with disabilities. In an Australian study, Forlin, Jobling, and Carroll (2001) identified several factors that were related to interactions with people with disabilities for a group of preservice teachers. It was found that preservice teachers had a high level of sympathy toward people with disabilities, were fearful of being disabled, and felt vulnerable in interactions with people with disabilities.

            A survey of teachers undertaken by the Queensland Government (Disability Services Queensland, 1999) further reported that 86 percent of the respondents considered that others would not feel relaxed and comfortable when interacting with people with a disability. Annemaree C., Chris F. & Anne J, (2003) observed that the most noticeable improvement regarding interactions with a person with a disability was that preservice teachers felt less ignorant, more able to act normally and surer of how to behave, once they had completed the course. They also demonstrated less pity and a greater focus on the person rather than the disability.


Attitudes on Computer Information Technology (ICT) Usage

            Teo, T., Lee, C. B., & Chai, C. S. (2007) study shows that perceived usefulness, perceived ease of use and subjective norm were significant determinants of pre-service computer attitudes. Facilitating conditions did not influence computer attitude directly but through perceived ease of use. These findings demonstrate that social norm and facilitating conditions are potential variables that may be used to extend the Technology Acceptance Model (TAM) for research on computer attitudes.

            Wong et al (2005) examined the use of the Internet among 310 pre-service teachers using questionnaire survey method. They found that pre-service teachers’ use of the Internet was influenced by support from friends, confidence level, attitude towards the Internet and perceived usefulness (PU). Khine (2001) studied 184 pre-service teachers to examine their use of Information Communications Technology (ICT) through studying their attitudes towards computers and found a significant relationship between Computer Attitudes (CA) and its use in the institution. Yuen & Ma (2001) administered the Chinese Computer Attitude Scale for Teachers to 216 secondary teachers in Hong Kong to examine the factors that influence the instructional use of computers and their results revealed that affective attitudes, general usefulness, behavioral control and pedagogical use were significant in determining the use of ICT among teachers, accounting for 37% of the model specified.

            A key reason for studying teachers’ CA is the ability of attitudes to predict computer usage. Research has shown that a teacher’s attitude towards the computer is a major predictor for future computer use (Myers & Halpin, 2002) and their need for learning computing skills that in turn will lead to computer literacy (Zhang & Espinoza, 1997). For example, Yildirim (2000) found that teachers who used computers more would tend to develop positive attitudes that promote further use of the computer in their daily teaching tasks and conduct activities that require computers to play a major role in, for example, computer-mediated forums.

 Attitude on other Variables

            In a study in Iran, Shahmohammadi (2014) noted the short in service training course significantly affected the teachers’ attitude in the learning environment which includes: Relationship with Students, Presentation and Culture and Adjustment and not in Individuals and Activity. The reason being, they had already developed a positive attitude towards the same during their teaching practice and teaching experience. According to Senior (2006) it is nearly impossible for teacher to implement all the principles of teaching that they have been taught in training courses since these courses are overloading teachers with a plethora of methods, and teaching skills. This may account for the high number of mistakes in the two areas of presentation and execution/method.

            Shahmohammadi (2014) also asserts that in some cases there was a mismatch between the student teachers’ attitude and their teaching practice in class. That is to say they failed to put into practice what they valued .The researchers are of the opinion that the reason why the teachers did not follow some of the training guidelines might be due to their being overwhelmed with a surplus of principles on the one hand and being new to the atmosphere and inexperienced on the other. This might have made it difficult for them to make on the spot decisions in spite of their willingness to do so. This finding supports Ajzen’s (1988) claim that teachers’ attitudes may be something and their actual behaviors may be something else based on the opportunities and resources available to them. This point is consistent with the common observation that some teachers who agree with particular types of activities do not carry them out in their classrooms. For these teachers, attitude is not predictive of their behavior. The point to remember is that teachers’ inadequate performance should not be considered as an indication of their incompetence. If they are given enough time and practice they would probably gain the confidence to be more judicious in their decision making.

            Researchers have observed that some experienced teachers also did not follow the training course guidelines. The reason might be the incompatibility of what the teachers had gained through years of experience and what was introduced as sound practice in the training course. Their experience might have convinced them that what the training course introduced as effective practice was not feasible. This case is also in line with what Hollingsworth (1992) has theorized. He claims that prior knowledge and experience serve as a filter to pedagogical learning during the pre-service years, altering how pedagogical instruction is learned and enacted by teachers. This was actually observed in this study since some teachers who had a few years of experience in teaching did not follow exactly what was prescribed to them in the training course and preserved their previous beliefs and personal theories. As individuals, teachers have particular temperaments and personality traits that influence how they approach new ideas and situations. Thus, learning outcomes in teacher education are a function of both what programs offer and what teacher trainees bring to the training course.

            Srivastava (1989) attempted to study the impact of teacher education programme of Lucknow University on pupil- teachers’ attitude and teaching efficiency. The findings of study were: Most of the trainee groups changed their teacher attitude positively and significantly after training.  However the experienced male trainees did not show any change in their teacher attitude, there was no significant change in the teacher-aptitude of the male postgraduate student-teachers and the experienced female trainees as a result of the training. All the trainees showed significant and appreciable improvement in their classroom teaching performance, after the completion of the training, the females showed better teacher-attitude and aptitude than the male trainees. Male trainees showed better teaching efficiency than female trainees, and the trainees teaching social sciences showed better teaching efficiency than those teaching science and mathematics.

            Roy (1991) examined the impact of the elementary teacher education programme on attitudinal change of the elementary teacher-trainees of Orissa towards community involvement. The elementary teacher education programme with the elements of community involvement, both in theory and practice, positively affected the change in attitude of the student-teachers towards community involvement. Both the categories of student-teachers were almost equally prone to change in their attitude towards community involvement. Previous teaching experience had no role to play in the change in attitude of student-teachers towards community involvement.  The degree of interest in teaching was responsible for accelerating the development of attitude towards community involvement.

            Ramachandran (1991) attempted to conduct an enquiry into the attitude of student-teachers towards teaching. The findings of the study were: Regular college teacher-trainees had a more favorable attitude towards teaching than the correspondence course teacher-trainees, female teacher-trainees had a more favorable attitude towards teaching than male teacher-trainees, the sons and daughters of teachers had a highly favorable attitude towards teaching. Post Graduate (PG) teacher-trainees had a more favorable attitude towards teaching than undergraduate teacher-trainees; the nature of the course did not influence the attitude of teacher-trainees towards teaching.

            Yadav (1992) studied the impact of teacher training on certain personality characteristics of trainees. The findings of the study were:  All the dimensions of self-concept increased through teacher training except the feeling of inadequacy which decreased. Social maturity of the teacher-trainees increased in all the dimensions except for self-direction, personal adequacy and enlightened trust; the teachers’ training had a significant influence on their self-concept, social maturity and attitude towards the teaching profession.

            Fortune, et al. (1965) designed a questionnaire to assess attitudes of students towards micro teaching technique in Stanford summer micro technique clinic. The result was quite encouraging. It was found that 60 percent of the participating students reported their micro teaching experience either very or extremely valuable. Dhadwal (1981) in his study of attitude of B.Ed. trainees towards teaching profession found that trainees belonging to urban areas have more favourable attitude as compared to those belonging to rural areas. Men have less favourable attitude as compared to women towards teaching profession. Raina (1990) found that there was no significant difference in attitude towards teaching profession. Between the in-service education science, arts and commerce teachers differed significantly in their attitude to teaching.

Shukla (1997) conducted a study on the attitude of the college teachers towards their profession and found that majority of teachers show favourable attitude towards their profession. Female teachers show greater positive attitude than male teachers.

            Sali (2003) studied the attitude of teachers towards four aspects of in-service training programme i.e. content enrichment of school subject, teaching methods, new trends in education and innovation in education and interpreted favorable attitude towards different aspects. Depaul et al. (2003) studied the difference in the attitude of elementary school teachers towards in-service education in between non graduates, graduates and post-graduate, married, unmarried, urban and rural. The result showed that there is no significant differences between the mean attitude score towards the in-service education with regard to different variables.


 The review shows that the teacher training programmes have an impact on teachers’ attitudes towards various aspects in the teaching profession. Both preservice and in service programs were looked into. It is also notable that not only do the programs influence the attitude of the teachers but also their past experiences and personality traits. Moreover, the attitudes of the teachers do not always translate to behavior change due to lack of equipment and materials.


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The Impact of Economic Globalization on International Trade Trends in Developing Countries at the Beginning of Third Decade

 Said Mohammad Karim

  • Introduction

Currently, the world is experiencing a new scientific revolution in information, communication, transportation and technological knowledge-intensive. This revolution has deepened the globalization of all aspects of economic life of the movement of goods, capital, services and skilled labor. It became the technological revolution and in particular its part informational pivotal role. With The emergence of the phenomenon of globalization, which is the current stage of development of international economic relations, properties, and not put forward a new theory or a new perspective to understand the mechanisms of this development, and is a composite concept basically means examining the nature of the developments that have taken place for the international relations of economic, social, cultural and political dimensions, which makes impact on the trends of this development in the future.In other words, this might consider to be characteristics of the modern capitalist system.This is taking shape at the beginning of the Nineteenth and Twentieth centuries, which prompted researchers to give up the use of the concept of system, which necessarily involves the mechanisms and rules are clear and specific. Interested in studying changes in the relations between the inside limbs, in favor of the concept of globalization, which seems more neutral in the phenomenon of the more obscure and at the same time. However, this neutrality does not hide faith dimension inherent in it and which threatens the countries that rejected extinction and extinction, especially developing countries .premise from which this search extent to which developing countries of economic globalization and trade liberalization and the acceleration of goods and services flows, are developing their current state countries can to engage in the international economic system.

  • Concept of Economic Globalization

The current stage known a group of radical changes in the global economic system, predicted for the beginning of a new economic system characterized by milestones and trends are different from those prevailing before. Hence, the world is controlled by two trends which are linked and that they were separate, namely, globalization and economic liberalization.These two trends already taken place in switching conditions, the formation of economic behavior, and become more attached to influential tracks international national economy, and so became a success and progress to the strength of nations and blocs measured, this is even linked to the extent of participation or involvement paths of these two directions towards globalization, which has become prevalent even more dominant force in the world today, it was not coincidence. The return of the dream that accompanied the individuals since ancient times, to expand the range, mobility and investment, transfer of wealth and profit open broader horizons, as a result is made possible of the change in the international system, and the decline in the concept of a centralized economy or router to be replaced by the concept of a market economy, and its adoption as a tool essential for development. This concept, which stretch in all directions, is seen to the world as a single market, and thus is represents and embodies a vision based for a large segment of the countries that were leading and defending the principles of a free economy, giving the private sector a leading role. This means the predominance of the ideology of the free economy, triumph of the market economy, market mechanisms, and political liberalism. Consequently, globalization of the economy and on the scope of each of the international economy began to spread to all levels of production, financing, technological, marketing and administrative (Kella, 2011).

By taking a comprehensive look at the global situation, it can be said that the world has become more essential than ever before, and that the economical differences have become more acute and severe than they used to be and that the global distribution of income has become less balanced and less fair, though there is a large gap dominant to the world, it is likely to represent a serious threat to the growth achieved and the continuous development in the future.

The advanced industrial countries, which have committed themselves to the principles of free economy and previously defended him and worked on the publication, these countries are driving the global developments and designed a way that suits them.Because at this stage they have methods and the elements, it has a vested interest and potential of circulation, published and approved by the largest possible number of countries. These countries have prepared themselves in advance, who beneficiaries and are supported by an engine with motive to activate economic their income and activate its institutions list by exploiting existing possibilities and opportunities in the world.

However, developing countries that suffer from significant transitional structural and social problems, in most of these countries are still grappling with and affected by the global developments accelerating. All of these forces and trends formed with each other at the current stage the process of transition of the new global economic system. Which must be closer to the analysis of its components as well as determine the characteristics and features to identify the transformations and challenges and issues that began determined in the field of international trade, monetary system, manufacturing transport technology, preservation of the environment and other (Avhild, 2007). At this stage no wonder to show several terms reflect the features of the current stage, and even the future experienced by the transition process towards the establishment of a new global economic system, such as the term globalization or constellation or inclusiveness.

  • Technological Revolution and the New International Division of Work

The troubles of the existence of the technological revolution and information with the increasing freedom of movement of goods international capital may help clearly on the interrelationship and overlap between the parts of the world and confirm the global markets.Drop the barrier of distances between countries, and create a new type of international division of labor, which is the process whereby industrial productivity between more than one country so that the distribution of the components of any final product manufacture in more than one place. Thus it is no longer the main support of strength, as the economic capability is natural resources,  which it has become the main foundation in that to own advantage or competitiveness in the international arena, and which revolve around the cost and price and productivity and quality and is what the depth of the trend towards interdependence.

The emergence of new patterns of division of labor were not known, where the traditional image of the international division of labor is to allocate some of the country’s raw materials and mining and food commodity and specialty other countries in industrial products, and the assumption was that the country is developing a comparative advantage in the first type, while developed countries have a comparative advantage in industrial goods (Diab, 2010).

This division is no longer in line with reality, and the issue here is not just a shift in the comparative advantages of industrial goods to some developing countries, but what caused the technological revolution of the availability of new possibilities for specialization. This is due to the multiplicity of types of single products, for instance there is no one type of cars or radios or television or computer, but rather there are multiple types of needs and what type them in terms of production conditions may be different from what the other needs. Hence the division of labor between the different countries in the same products appears, and it has become fashionable, but mostly for a large number of consumer durables and machinery and equipment, that the same item appears in the list of exports and imports for the same country, this is known as the division of labor within a single industry.It has become fashionable to parcel one product among a number of the country’s production so that specializes every country in part or more, and this is known as the division of labor within a single product intra – firm.This kind has become of specialization of the most important aspects of the division of labor between the industrialized country and with each other, as well as in increasing cases between industrialized and developing the country.

Thus the decisions of production and investment become taken in accordance with considerations of economic rationalization in relation to cost and earning, even there has become an opportunity for many developing countries to penetrate the global market in a lot of products.Where new styles allow international division of labor to those countries gain competitive advantages in a wide circle of goods, and perhaps the experience of the Asian tigers in Southeast Asia, is the best example to that. The revolution in production was the occupation of knowledge of information relative importance of the first in the production process. Moreover, it is reflected in the emergence of new patterns of international division of labor, where the back of the division of labor within a single product intra – firm so that the distribution of the production of the various parts of a single item on the different countries of the world well be appear according to considerations of economic efficiency (Murray, 2013).

The new world economic system, which began to show its characteristics and features as well as is determined with the beginning of the nineties is still in the process of composition and formation conditions and compared to previous arrangements. It is noted that it uses new tools and methods to maximize the goals and objectives in line with the evolutionary stage – the stage of globalization – which reached and global changes that have taken place, and the new mechanisms that have arisen.Therefore, the dynamic characteristic of the new global economic system make sure day after day, as evidenced by the prospects for changing the balance of the existing economic powers on the basis of the future It is evidenced by the presence of more than one order of what will be the new world economic order in the atheist century the third millennium, some suggesting unipolar shape, some raised pyramidal shape, and othersuggesting parallel blocks shape.

  • Changes in the International Trading System at the End of Twentieth Century

The most important characteristic of a shift in the international trading system towards commercial freedom system after 1994 and the beginning of 1995 along with the establishment of the World Trade Organization – has included not only the liberalization of trade in industrial goods, but also included agricultural goods and other industrial goods such as textiles and clothing. This is in addition to the trade in services which is considered a turning point in international economic relations, and the liberalization of trade applied to services the principle of gradual liberalization and includes trade services, banking, insurance, capital market, transport of land maritime and air, contracting, tourism, telecommunications, and services such as professional technical consultancy and professional services offices. This encourages the phenomenon of labor migration or function instead of the labor force migration. In addition to the liberalization of services, it has included a shift in the international trading system, liberation organization, protection of literary, artistic property industrial, as well as liberalization of investment laws having impact on international trade restrictions.

The transformation of the internal orientation of any development strategy of import substitution to production for export is a result of the new trends of globalization and the great opportunities offered by the global market.This shift comes in particularly large number of developing countries. As a result, because the country has managed to developing high growth rates are achieved by the country has pursued a strategy of export-oriented development based on the exploitation of the potential of the global market to the greatest extent possible.

East Asia countries proved with a growing number of developing country success towards this direction. The international market can accommodate both availability which has the will to penetrate and it is important to complete the elements of export-oriented strategy, which works to promote the expansion of exports of products which features produced or can be produced present or future at relatively low cost compared to the rest of the other countries (Windsor, 2009). The export economy is a traditional long-term development process, is to put the pillars of transformation to be able to bring about changes restructuring in the economy, and that lead to the creation of diverse activities and sectors production structure uses the best technological methods, and earn exported products generally the ability to invade the world market. The strength become highly competitive, including corrects the position of developing countries in the patterns of specialization, and the international division of labor.

The profits from trade liberalization are not distributed evenly on the winners, both in industrialized nations or the developing countries. Hence, a according to the highest estimates is expected to be out collectively by more than 17 percent of the estimated increase in global income developing countries.The industrialized countries will get $ 100 million of the total expected in the world’s income as a result of partial liberalization of trade and of $ 119 billion which increases the share of the industrialized nations of the expected increase of up to 84 percent, and get developing countries to 10.3 percent. Despite those results, the importers of foodstuffs will be one of the most affected by trade liberalization, since the liberalization of trade in agricultural products, especially rice and oil, grain and wheat and uninstall support them by industrialized nations resulting in a rise in prices. On the other hand, it can be said that the distribution of gains attributable to developed countries obsessed by the global triad: the United States, Japan, and the European Union (Salih, 2006).

  • Nature of International Trade and Situation of Developing Countries at the Beginning of the Third Decade

Exchanges between developed and developing countries still in a large part subject to the international division of labor that prevailed after World War II. Accordingly, take it in the form of raw materials in exchange for industrial goods. Raw materials and for historical reasons  is an important part of the trade as well as developed countries providing the bulk of the trade of industrial goods in the world of the total exports of these countries towards the outside while the developing countries do not believe only a small percentage of the trade of raw materials in the world although it is part of the largest oil exports.Despite the fact that developing countries are the main source of raw but there are no raw materials in the industrialized countries and also exchange industrialized countries among them an initial goods. And some of these raw materials needed by countries of the South, and in general, a quarter of the value of exports of industrial countries to developing countries is equivalent to the value of all exports in the form of raw materials coming from these countries to the industrialized nations.International trade rolling is now a market of industrial goods. It can be conclude from this that the developed countries dominate the exports of all industrial goods and an important part of the raw materials we will review the exports of some of these products. However, this growth achieves significant differences between the various developing regions in addition to the contraction of world production growth.There are other factors behind the chill international trade such as the events that took place in the Middle East region, the changes in Eastern Europe, and declining terms of trade for developing countries rates (Salih, 2006).

On the other hand, the nineties identify the fast growth rate of international trade, and this is due in part to the rapid spread and flourishing trade in components of high-tech electronic goods. In spite of ongoing international trade, it grows faster than the speed of growth of total production. This is due mainly to the poor economic performance of developed countries. As regardless of an increase in global production, the rate of growth in developed countries has fallen as a result of the slowdown in production, which represents more than two-thirds of world production, and this is because of multiple factors, including the increase of public debt in most industrialized countries. Secondly, the growing pressure on European currencies as a result of deflationary monetary policies and their impact on exchange rates and interest rates. Finally, imbalances in the budgets of industrialized countries and that happened from the possibility of using fiscal policy as a catalyst for growth.

The beginning of the third decade has decrease in global production and international trade has reached lower global production rate levels since the eighties of the twentieth century, perhaps these reductions offered by global production and international trade through during this period returned mainly to the effects of the events of September 11, 2001, in the United States and that has touched most sectors in all regions with the exception of some Asian countries.

International trade continues to be a main driver behind the growth of the international economy, international trade and the growth rate is still in twice the growth rate of world output. The larger developing economies like China and India have seen continuous growth export activities. There are quite a number of developing countries made profits from the significant improvement in the terms of trade over the past few years, and due in large incision to the incident recovery in oil prices and some other commodity. On the other hand there are a number of oil-importing countries and exporting agricultural crops have been damaged from the terms of trade prevailing and suffered a loss, and in the light of high oil prices exceeded the proportion of the rise in prices exports of those countries as a result of the deterioration of commodity exports to those countries or for the two reasons together. Generally, the price of primary commodities has reached the top level and it is expected that many non-oil commodity prices are falling from the (United Nations report, 2005).

There is no doubt that the global economic changes that have evolved in the new world economic order will affect the developing countries, and that the global trinity economic and what raised from new issues in all areas reflect a new strategy aimed at pre-emptying the strategies most development self-reliant, such as those pursued by Japan and which star by the emergence of economic power to defy the developed countries such as Europe and America. This new strategy of developing countries pays adoptive development in the context of dependency of developed countries based on trade and foreign direct investment. That is why the developing countries adapt to what results this new trading system of the new patterns of international division of labor and toward greater economic interdependence.

 On the other hand, the investment and new issues on social paragraphs as measures of operating procedures, child labor … etc., are likely to act as an obstacle to humanitarian restructuring process. Under the trade agreement on the protection of intellectual property rights system is protecting the rights of the franchise strict and very accurate. Which may generate technological monopolies impede the transfer of technology on a global scale and that this will slow down the resettlement of industries operations. Moreover, the expectation of trade sanctions against countries that disturb the standards of work and child labor will give a significant adverse consequences for the transformation of the economies of low-wage and access to comparative advantages in the global market, and thus the new rules in the game of international trade and investment are likely to affect the recycling comparative advantage through cross-national companies and foreign direct investment process.

It is clear from all of the above, that the developing countries stand at a crossroads, choices are limited, either rejection. Therefore, isolation from the most important part and the most capable of the countries of the world, any part of the product of the progress of scientific and technological development, acceptance and as a result adapt to the international economic system that believes countries of the South that is uneven and unfair. For both options have to pay the price and the cost of each will be incurred (Zakey, 2000).

There are many who are interested in development affairs in the countries of the South incite rejection and call for an alternative think it is more useful to developing countries and their peoples, and is to increase the level of coordination and cooperation between these countries and clustering, if possible, to cope with the new realities in the global economy in order to modify or influence at least for the benefit of the South, and in spite of the theory of gravity for this option. However, the potential application of the facts to face many difficulties and obstacles, including economic limited capacity of the countries of the South in their current state, although it is under the South title meant a large group of countries a population of over 80% of the world’s population but they do not contribute to global income by more than about 20% and more than one billion people live below the poverty line as their share in making scientific development and technological progress modest negligible on a global level.

In addition to the low level of the will of the decision-making circles in these countries to develop the level of cooperation and coordination among them, in one hand to cope with the global economic system, on the other hand to cope with the global economic system. For developing countries to deal more rational and more open to the new economic variables, and working on extensive and comprehensive review of the development of its policies in preparation for the re-formulated in line and the new changes, and the development of economic mechanisms, including work contributes to better exploit the potential available and possible resources (Amin, 1997).

To conclude based from the above point, the new world economic order still needs to be repaired in its mechanisms and the functioning of its institutions, and reconsider the rules, whether in the field of trade, investment or other even it has the consent of the countries and the peoples of the developing world and the developed alike. It also notes that the new global trading system caused a sensation about his future, especially after widespread protest movements against globalization and its mechanisms.

  • Conclusions


  1. Developing countries in general face significant challenges may direct to gains, since if overcome, and could direct to losses if these countries unable to cope the changes.
  2. Reduce significantly the level of protection for the agricultural sector over the next few years, as it is also a most important sector in the economies of most developing countries that have a negative impact and unexpected results.
  3. These countries can draw its policy improvement and the development of their economies, especially with regard to the national production, which it is devoid of protection or low level of protection. There is no valid one answer for each of developing countries, and dealing with the issue of this importance vary from state to state depending on their circumstances and their potential.
  4. The abolition or reduction of subsidies for some products well weakens the competitiveness of developing countries in global markets.
  5. Progressive liberalization of services trade will lead to heightened competition in the global services market, and because of the weakness and fragility of the services sector in developing countries, especially the financial services activity of banks, insurance companies, Projections indicate that this sector may be affected negatively as a result of editing.
  6. The unit controls the commercial multi-density expansion parties and restricted the use of some selective economic policy that had a role in the success of the exports of developing countries tools, is no longer possible in light of the increasing liberalization in the international capital markets.The globalization of production of transnational corporations imposes legislation and laws on companies in relation to the objectives of the industrial policy of the host country. here it is emerge a conflict with the important role that practiced by governments in most developing countries, and especially industrial policies to accelerate structural transformation and strategic in the economy by supporting certain sectors identified as strategic to own comparative advantage kinetic potential task and receive so government support.


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The Role of Private Wing set up in Public Hospitals in Reducing Medical Professionals’ Turnover


Belayneh Bogale zewdie 


The objective of this article is to assess the role of private wings in public hospitals to tackle medical professionals’ turnover in selected public hospitals. Retention of qualified health staff has become a major problem in Ethiopia. Medical professionals left the public sector mainly due to attractive remuneration elsewhere. To solve this problem the Ethiopian government launched private wings within public hospitals in 2008. In this study a descriptive design with mixed approach was applied. Data was collected through questionnaire, key informant interviews, and document review. Purposive sampling was also utilized to target respondents. Data was collected from 5 hospitals and 192 health professionals. The finding revealed that Medical professionals’ level of awareness on different aspects of private wing was not satisfactory; however most of them became happy to know about the chances of earning extra income at home. On average, 50% of the doctors’ and 40% of other health professionals’ total monthly income were earned from private wings. Accordingly, professionals expressed their intention to continue working in their facilities at least for the next 3 years. Hospitals’ human resource documents also reveal a slight but a steady decline in turnover. The study found out that the initiation of private wings in public hospitals contributed to motivation and retention of health professionals. Major benefits to private wing staff include rise in sense of hospitals ownership, skill use and better income.


Key Words: Private Wing set up, Turnover, Medical Professional, Health care reform and Public hospitals


The African continent is facing a health crisis occasioned by very low funding of health services and deterioration of health service infrastructure (Dovlo, 2003). The loss of health workers has significant economic as well as replacement consequences which include high cost and time taken to recruit, select and train new staff. Ethiopia is among many other countries that have been affected by a turnover and brain drain of health workers. Many studies show that the shortage of health workers in Ethiopia has been at a crisis point. According to FMoH (2008), health professionals migrate either from rural to urban areas, from government to private institutions, or to foreign countries in a very alarming rate for various reasons.


After 1991 the Ethiopian government undertook a robust reform in deferent sectors. One of the reforms was health sector reform. After thorough study and assessment of the health situation, the FMoH of Ethiopia developed a health care financing strategy in 1998 that was endorsed by the Council of Ministers and became a very important policy document for introduction of health financing reforms. The government recognized that health cannot be financed only by government and underscored the importance of promoting cost sharing in provision of health services (FMoH, 1998).

In line with the health care financing strategy and based on the approved legal frameworks, a wide range of health care financing reforms have been implemented since 2006.
The initial phase of the implementation was very narrow in few selected regions and health institutions. However, later the health care financing reforms have been expanded to nearly all parts of the country. The reform consists of eight components; revising user fees charged at government health facilities, retaining the collected fees at the facility and using that revenue to improve quality, rationalizing and systematizing rules for fee waivers, increasing hospital managerial autonomy, opening private wings in public hospitals, and outsourcing nonclinical health services. These reforms are being implemented in all regions of Ethiopia (USAID, 2012:3).

Establishment of private wings in public hospitals is one aspect of the Ethiopian government’s health sector financial reform program which was launched in 2008. In the last four years or so, certain Ethiopian public hospitals have created private wards that function within their physical and organizational boundaries. According to FMoH (2010) the establishment of public hospital private wings has the potential to generate additional income and can increase the ownership of the hospital services by health professionals. The establishments provide services to those who can afford to pay more for those services. The set up is meant to improve the quality and timeliness of services. It also helps reduce the turnover of skilled manpower through additional compensation, and to motivate staff members to provide more and better service.

Hence the article will focus on the assessment and analysis of the role of private wings in reducing medical professionals’ turnover with particular reference to government owned hospitals under Addis Ababa Regional Health Bureau.


Although Ethiopia has one of the highest numbers of health workers in sub-Saharan Africa, its large population leaves it with a very low health worker to population ratio. The Ministry of Health reported a total of 66,314 health workers are in service, including 30,950 health extension workers. The national health worker ratio per 1000 population is 0.84. This result is far less than the standard set by the World Health Organization of 2.3 per 1000 population (FMoH, 2010 cited in AHWO, 2010). Even out of the total health work force (in terms of skill mix), Doctors and Midwives form a significantly smaller share. Despite the government’s effort to tackle this problem, the shortage and high turnover of health workers has become a severe setback. The county is one of 57 countries considered to have a health workforce crisis (UNDP, 2010).

Retention of highly qualified health staff has become a major problem in Ethiopia. Between 1987 and 2006, 73.2% of Ethiopian medical doctors left the public sector mainly due to attractive remuneration in overseas countries, local NGO’s and private sectors. Unless the proper remedial measure is taken, the problem will even get worse in the coming years (Birhan, 2008). The 2005 bulletin of the WHO reports that there are more Ethiopia doctors working outside Ethiopia than in the country itself.

In developing countries where medical professionals’ turnover is rampant different intervention mechanisms to tackle the problem are emerging. Similarly, the Ethiopian government introduced Health Care Finance Reform including private wing establishment in public hospitals as one component. Setting up of private wings in government health institutions where the professionals could work at during their leisure time and earn additional income is mainly aimed at cutting back turnover due to low payments.

Despite all its benefits, prior researches and international experience suggests that this type of ward has much potential for promoting inequity within hospitals. The three key problems are the failure to generate sufficient revenue to sustain hospital-wide quality improvements, the likelihood of resource allocations within the hospital becoming biased towards the private wards and failure to meet their predetermined objective of reducing turnover (Birn et al., 2000; Suwandono et. al, 2001).

In Ethiopia as these private wing establishments were created and started delivering services, it became clear that not much was being done to evaluate them and to understand their governance arrangements and the impact on medical professional’s turnover. Even the limited available data is not rich enough to provide reliable information on the issue.  Therefore, whether public hospitals has gained benefit of retaining medical professionals as a result of setting up private wings and the role the establishments practically play is a critical knowledge gap that needs to be addressed. Thus, this study therefore sought to investigate the role of private wings in public hospitals in reducing medical professionals’ turnover.


The overall objective of this study is to assess and scrutinize the role played by private wings in public hospitals to tackle the problem of medical professionals’ turnover in five selected public hospitals in Addis Ababa. More specifically:


  • To assess the extent of private wings’ contribution to motivate medical staff, and to improve their income;
  • To describe the contribution and achievements of the private wings in retaining medical professionals;
  • To find out the attitude and awareness of medical professionals on private wings;
  • To describe the challenges/constraints of private wings in reducing medical professionals’ turnover.


Research Design

 It is generally accepted that the selection and application of a research design is dictated by the problem at hand. Accordingly, to carry out this research and achieve the objectives, a mixed research approach (both qualitative and quantitative) is used. The mixed research approach is very efficient in answering research questions compared to the quantitative and qualitative approach when used in isolation (Creswell, 2003). Therefore, by using a mixed approach it is able to capitalize the strength of quantitative and qualitative approach and remove any biases that exist in any single research approach.

Besides, the research applied descriptive type of research design using the survey method. Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present (Creswell, 2003). Since little is known and researched about the roles and contributions of private wings in medical professionals’ turnover, the researcher has no control or effect on the variables of the study. The study was rather intended only to describe the roles and contributions of the wards.

Data Sources and Instruments

In this study, both primary and secondary data sources were utilized to address the research objectives. The techniques used to elicit primary data were questioners, key informant in-depth interviews and review of organizational documents. The design of the questionnaire and interview questions was guided by the objectives of the study and the literature research. The secondary data was more or less collected from published documents, books, and journal articles. Other magazines, internet sources including access to electronic scientific articles such as Google’s scholar search facilities, as well as hard copies or reports and other studies were also utilized in the process of data gathering.

Sampling and Sampling Procedures

The study was conducted on those government owned hospitals under Addis Ababa health bureau that have private wings. These hospitals are five in number namely Yekatit 12, Dagmawi Minilik, Gandhi Memorial, Ras Desta Damtew, and Zewuditu Memorial.

The population of this study was all health professionals in the five hospitals with diploma and above academic qualification in their field of work. According to AAHB (2014), there are 1,281 health professionals in the five hospitals that have diploma and above qualification. Since the study population of this study was homogeneous (all were government employed medical professionals) 15% (192) medical professionals were purposively selected as a sample to fill the questionnaires.

Proportional techniques of study subject allocation to the five hospitals were also applied. Accordingly, selection of intended study subjects from the five governmental hospitals under Addis Ababa health bureau was made using the following formula:

                                                 Where nx – sample size in x hospital

                                                             n – Estimated final sample size

                                                             Nx – Total number of medical professionals in x hospital

                                                             N – Total medical professionals in all hospitals

Table 1: Proportional sampling procedure of the study subjects

Hospitals No of medical Professionals Proportional allocation samples
Gandhi Memorial 207 32
Ras desta Damtew 177 27
Dagmawi Minilik 298 45
Yekatit 12 306 46
Zewditu 276 42
Total 1281 192

Source: calculated by the researcher based on the HR summary from the health bureau: 2014

The questionnaire was distributed to cover different categories of health professionals as it was given to doctors (all types), nurses and midwife, pharmacists, health officers, laboratory technologists, and radiologists. On the other hand key informant in-depth interview was also conducted with medical services directorate director of AAHB, hospital directors and personnel department heads of each hospitals.

 Method of Data Analysis

In this thesis both qualitative and quantitative data analysis techniques were employed. Data collected by using questionnaires was organized, coded and then analyzed. Specifically, simple statistical analysis like percentage, frequency, tabulation and graph were used in order to analyze the data easily. Microsoft excel was also applied for producing charts and to simplify the calculation. On the other hand, information gained through key informant interviews was described qualitatively.


Assessment on Motivation and Income Improvement

The data revealed that the establishment of private wings has contribution to motivate and improve the income of medical professionals; however there is still a considerable level of intent to quit among medical professionals. Close to 40 percent of the study participants showed their interest to continue working in their hospitals at list for the coming three years. This may justify the rise in commitment after the introduction of private wings. However there is still high intent to quit, close to 30 percent of the study subjects were actively searching for alternative jobs. Seeking better job oversea, narrow opportunity for further education, poor leadership and communication, poor pay and benefit, inadequate facility and supplies, and seeking better job in private sector and NGOs are reasons for the intent to quit.

The level of private wings’ contribution to make employees stay in the public sector was rated “to some extent” by most respondents. Besides, after the establishment of private wings medical professionals’ commitment and moral show some extent of improvement. The above statements infer that the extent of private wings contribution to make employees stay in the public sector is small and is not at the expected level. In addition regardless of the rise in income still considerable number of respondents claims no change in level of motivation and morale. Therefore, the hospitals must utilize non financial motivators at the same time so as to boost up the level of motivation and moral to the expected level.

Further, the study found that reliance on private wings as sustainable source of income has not yet deepened and professionals’ livelihood improvement after the introduction of the scheme is insignificant. Respondents expect little rise in income followed by those who expect no income rise from the future expansion and development of private wards. The level of livelihood improvement after the launching of private service was also rated insignificant/little; therefore it is difficult to say the establishment of private wings in public hospitals brought momentous improvement in the livelihood of health professionals.

Medical professionals are delighted with their chance of earning extra income from private wings. However, they criticize private wing set ups for not providing the entire necessary benefit package for the staff (see the table below).

Table 2: Level of medical professionals’ satisfaction with pay/benefits
















1 I am frustrated by the payment in the private wing      16










2 I feel satisfied with my chances for earning extra income     35









3 There are benefits we do not have which we should have    24






   24 (13.1%)  183


Source: Owen Survey: 2014

Note: (5) = strongly agree, (4) = agree, (3) = neutral, (2) =disagree, (1) =strongly disagree

 In this regard the survey result indicated on an average 50% of the medical doctors (all types) and 40% of other professionals’ total monthly income is earned from private wings. This is a good rise in monthly income due to the establishment and operation of private wings.

Nonetheless, the finding illustrates the existence of equity related complain in the distribution of private wings profit which may contribute to resignation of professionals who feel that they are not sharing equally. (See the graph below). Moreover, the study also found that private wings payment is not as lucrative as other part time option.

Enhancement in Retention and Reduction in Turnover

In the study the contributions and achievement of private wings in retaining medical professionals was also assessed. One third of the health professionals had quit offsite dual practice because of the part time job created in private wings. Therefore, the success of private wings in avoiding off site dual practice (some call it public private overlap) is considerable. In addition all most all respondents who are still engaged in offsite dual practice would give up given private services strengthened and sustained. This implies if properly managed and strengthened public hospital private wings have a potential of reducing unregulated and illegal dual practice.

With regard to medical professionals’ public-private hospitals preference, the result shows “some extent” of preferences of private hospitals over the public ones. However in comparison with prior research (Tigist, 2006) made in the same study area, medical professionals in the public sector had “great extent” of preference of the private sector over the public. Though other variables may contribute for the difference in the extent of preference (“great” and “some”), perhaps motivation resulted from private wings may also contribute which may in part be viewed as a success in this regard.

Moreover, despite the fact that the highest number of respondents (43%) responded that private wings did not significantly reduced turnover so far, decline in turnover after the initiation of private services was noted from the calculation of turnover rates over. Hospitals under the Addis Ababa Health Bureau experience a slow but steady decline in medical professionals’ turnover rate since the establishment of private wings in 2008. (See the graph below)

This decline in medical professionals’ turnover may also be due to other interior and exterior variables, but since private wings were lunched as intervention mechanism to reduce turnover its success in this regard is observable.

On the other hand, close to half of medical professionals who participated in this thesis were considering job oversea even after initiation of private services. Hence, the contribution of private wings to curb outmigration is very insignificant. A focus on monetary compensation as a tool to prevent medical professionals from migrating abroad would mean their total income would have to be raised impossibly high. Therefore, instead of considering private wings as sole instruments, some of the other push factors of outmigration may need to be focused on.

 Attitude and Awareness

With regard to the attitude and awareness of medical staff on different aspects of private wings, the general impression and experience of the medical professionals in private wings is rated positive/favorable and the time they spent in private wings is productive. The establishment of private

wings also created a chance to use maximum skill for medical professionals and sense of hospitals ownership also shows improvement.

The awareness survey reveals that most professionals (87 percent) are conscious of the objective of private wings, but the remaining 13 percent has little awareness of that. This shows some health workers are blindly involved in private service without clearly understanding the objectives. It also shows poor communication and awareness creation activates from the management side. Likewise, there is good level of awareness on the rights and responsibilities of medical professionals involved in private service and on types of services provided in private wards. However, the level of awareness regarding rights and responsibilities of patients and financial aspects (revenue and expenditure, and pricing policy of private wings) is limited. This ambiguity and knowledge gap on the rights and responsibilities of patients and financial aspects of the wards may create conflict and uncertainty which may generate intent to quit.

In the study, most health workers (more than 70 percent) are comfortable with the schedules of private wings (see the chart below). However, since all medical professionals (particularly nurses) are not involved in private wards at the same time, most of them feel underutilized and fail to get a permanent additional income.

 The study also reveals respondents are neither satisfied nor dissatisfied by their workload. Despite the fact that training or special orientation is critical before the implementation of a reform agenda, trainings or at least special orientation program designed particularly for private wing services are not given to the great majority of the professionals. Therefore, the hospitals should organize and provide special trainings for staff discharging private wing tasks.

  Constraints/Challenges of Private Wings in Reducing Turnover

The major constraints/challenges faced by private wings in an effort of reducing medical professionals’ turnover are as follows. First, the income tax issue has slowed down the success of the private wings. The incentive to provide services in the private wings is lessened since the staff member has to report the extra income and pay taxes. The tax issue needs to be resolved with the regional tax bureau, or there may need to be a national policy. A related issue rose by the study subject, particularly nurses, was the need for some system to reward staff based on performance and the equity on pay related complain. Secondly, little knowledge about the existence and operations of private wings among service seekers (patients) is another constraint. Medical service seekers low level of knowledge about private wings as alternative option may create a mismatch between service provider and clients. Thirdly, medical professionals also complain the irregularity of private wings pay due to poor management as a problem. Another constraint is related to the capacity of private wings which make the benefits neither consistent nor all inclusive. Fifthly and finally, hospital managers also expressed their fear of over stretching the already scarce resources in public hospitals due to the establishment of private wing. Therefore unless these problems are solved it may back slide the already attained promising achievements.

Overall, the establishment and operation of public hospital private wings has brought about considerable rise in motivation and in income of medical professionals. The scheme also improved the staffs’ sense of hospitals ownership; created chance of earning extra income, the actual turnover rate was also declined. Nonetheless, professionals’ level of awareness on some aspects of private wings is poor and various challenges/constraints are faced in the process of the wards operation.



On the basis of the findings and conclusions reached, the following recommendations are forwarded in order to improve the contribution of private wings in reducing health workers turnover.


  • The medical professionals who discharge private wing tasks should have at least basic awareness on different aspects of private wings before taking the responsibilities. To this end relevant and continuous awareness creation and informative seminars has paramount importance to minimize the information gap of staff in private wards. Moreover, there has to be a mechanism to check out whether the provided training has improved the trainees’ attitude and knowledge as well as their performance. Hence, the hospitals should organize and provide informative trainings and seminars as soon as possible.
  • The development of private wings in hospitals for health workers to earn additional income outside of regular hours may already be a step in the right direction. However, reliance on private wings and financial incentives as a sole motivator and retention mechanism is very erroneous. Therefore, hospital management bodies should create good working environment and encourage employees through the application of different incentive mechanisms both financially and non- financially with the support of the government and other stakeholders. Policies and interventions may also want to focus on nonmonetary compensation, which was found to affect health worker motivation worldwide. Policies that provide quality and needs-based compensation in the form of access to further training, career development opportunities, and professional guidance can help in motivating health workers to better perform and motivation.
  • The health bureau and hospitals under it should promote and advertize private wing set ups in public hospitals and provide information for service seekers. Moreover, service seekers should be aware of a broad mix services provided in private wards, the pricing policy and the benefit they enjoy relative to other private options.
    • There are gray areas about private wings among medical professionals and service seekers. Some of these are due to information gap and different perceptions on the effect the private wing will have on the normal health facility services. Hence, the researcher recommends that an in-depth evaluative study on the various methods presently utilized in the various regions as well as in the AAHB facilities be conducted. And the best methods of operating private wings should be presented for all regions to consider. Some national guidelines may also need to be established to allow some consistency across the country.

Collaborations and partnerships form the backbone for most of the cost intensive projects. Public Private partnership projects if implemented and monitored carefully yields mutually beneficial results. Partnership can be monetary, skill based or resource based. Collaboration/ partnership can be within government departments, within private organisation or a mix of two. A case of taking land for using it as a financing tool is also possible as highlighted in thesis infrastructure financing through land which is a project undertaken by government agency.


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NON PERFORMING ASSETS AND ITS MANAGEMENT (A comparative study between public and private sector)



Bhanu Uday Somisetti

Dr. P. Raja Babu

                                                      K.Venkateswara Kumar                                                                     


Today banking has to play very prominent and crucial role in developing countries like India. In the Indian financial system banks acts as a financial intermediary or institution serves different services to accelerate the economic growth of the country. To improve the financial health of the banks various norms have been introduced at regular intervals. It is quite clear that generally the good health of a bank is reflected in better return on assets. The Non- Performing assets not only reduce the profitability of the banks by writing of the principal amount, as well as the amount of interest on advances and it is also a threat to the stability of the bank. This article mainly focuses on the causes and how a bank manages Non-Performing Assets (NPAs) under the guidelines of RBI.

KEYWORDS: Non-Performing Assets, Financial Institutions, Profitability, Banking Sector, Economic Growth, Reserve Bank of India (RBI).


All assets do not perform uniformly. In some cases, assets perform very well and the recovery of principal and interest happen on time while in other cases there may be delays in recovery or no recovery at all because of one reason or the other. Similarly, an asset may exhibit good quality performance at one point of time and poor performance at some other point of time. NPAs refer to loans which are at risk of default. Reserve Bank of India (RBI) defines “An asset, including a leased asset, becomes non­-performing when it ceases to generate income for the bank. Banks have to classify their assets as performing and non-performing in accordance with RBI’s guidelines. Under these guidelines an asset is classified as non-performing:

  • If any amount of interest or principal installments remains overdue for more than 90 days in respect of term loans.
  • In respect of overdraft or cash-credit an asset is classified as non-performing if the account remains out of order for a period of 90 days and
  • In respect of bills purchased and discounted account, if the bill remains overdue for a period of more than 90 days.

According to the RBI guidelines banks must classify their assets on an on-going basis into the following four categories:

  • Standard assets: Standard asset service their interest and principal installments on time, although they occasionally default up to a period of 90 days. Standard assets are also called performing assets. They yield regular interest to the banks and return the due principal on time and thereby help the banks earn profit and recycle the repaid part of the loans for further lending. The other three categories (sub-standard assets, doubtful assets and loss assets) are NPAs and are discussed below.
  • Sub-standard assets: Sub-standard assets are those assets which have remained NPAs (i.e., if any amount of interest or principal installments remains overdue for more than 90 days) for a period up to 12 months.
  • Doubtful assets: An asset becomes doubtful if it remains a sub-standard asset for a period of 12 months and recovery of bank dues is of doubtful.
  • Loss assets: Loss assets comprise assets where a loss has been identified by the bank or the RBI. These are generally considered uncollectible. Their realizable value is so low that their continuance as bankable assets is not warranted.

‘If banks do not classify an asset as NPAs, they naturally have more money to earn interest income on their advances. If a large portion of NPAs goes unreported, the bank could reach a situation where it has advanced more money than it has available – a technical bankruptcy’. By giving this leverage ultimately RBI is delaying the inevitable, at some point of time the NPA bubble will burst.


There are two key ratios for measuring bank asset quality.

  • Gross Non-Performing Assets (GNPAs): Gross NPAs is the sum of all loan assets that are classified as NPAs as per RBI guidelines. Gross NPA Ratio is the ratio of gross NPA to gross advances (loans) of the bank.
  • Net Non-Performing Assets (NPA) ratio:  Net NPAs are calculated by deducting provisions from gross NPAs. The net NPA to advances (loans) ratio is used as a measure of the overall quality of the bank’s loan book.

Net non-performing assets = Gross NPAs – Provisions

NPA ratio = Net non-performing assets / Advance


Banks with high level of NPAs have lesser funds to give loans and advances, i.e. lesser funds their interest income has to be reduced. Another negative impact of high NPAs:

  1. High level of provisioning (banks are required to keep aside a portion of their operating profit as provisions, higher NPAs will increase the amount of provision thereby impacting the profitability)

Provisioning Norms:

  1. For substandard loans, a general provisioning of 15% on the total outstanding amount is made if the loan is secured, for unsecured loans the total provisioning that needs to be done is 25% of the outstanding balance;
  2. For doubtful assets, provisioning of 100% on the total outstanding amount is made if the loan is unsecured, for secured loans the total provisioning is in the range of 25% to 100 % of the outstanding balance depending upon the period for which the asset has remained doubtful;
  3. Loss assets should be completely written off. If loss assets are permitted to remain on the books for any reason, 100 % of the outstanding amount should be provisioned.
<li>The burden of maintaining the capital adequacy ratio;</li>
<li>Increased pressure on Net Interest Margin (NIM);</li>
<li>Reduce competitive position;</li>
<li>Continuous draining of profits;</li>
<li>Negative impact of goodwill with the bank;</li>
<li>Restricted cash flow by the bank due to the provision of a fund created against the NPA.</li>

The main objectives of the study are given below:

  • To study the concept of Non-Performing Assets in the banking sector
  • To analyze the performance of banks under the concept of NPAs
  • To understand how a bank manages its NPAs and
  • To study various channels to recover the NPAs

  2. Chandan Chatterjee, Jeet Mukherjee and Dr.Ratan Das, (2012) ‘Management of non-performing assets – a current scenario’ in their study they evident that the NPAs have a negative influence on the achievement of capital adequacy level, funds mobilization and deployment policy, banking system credibility, productivity and overall economy. And they also compare the performance of public, private and foreign banks and they present that the public sector banks are facing more problems with NPAs rather than others.
  3. Amit Kumar Nag, (2015) ‘Appraisal of non-performing assets in the banking sector: An Indian perspective’ the author of this article done a comparative study by taking ten private, public and foreign banks. This article reveals the performance of various banks and he suggested some measures to overcome NPAs difficulty.
  4. Rajeshwari Parmar, (2014) ‘Non-Performing Assets (NPAs): A Comparative Analysis of SBI and ICICI in this study the author takes a comparative study between SBI & ICICI banks and construct a relation between Net profit and Net NPAs. The author found that there is a positive relation. In case of SBI means that as profits increase NPA also increase because of mismanagement on the side of the bank and the other side of the coin ICICI bank got a negative relation which indicates that amount of NPA decreases and Profits will increase more by the amount not becoming NPA. So, they conclude that when compare to SBI (PSB), ICICI (Private bank) manages NPAs efficiently.
  5. Sonia Narula and Monica single, (2014) ‘Empirical Study on Non-Performing Assets of Bank’ in this article the authors conduct a study on private bank i.e., Punjab National Bank (PNB). It is concluded that when PNB Gross and Net NPA compared with total advances we get the result that there is mismanagement on the side of PNB. While analyzing the impact of NPA level on PNB we derived the conclusion that there is a positive relation between Net Profits and NPAs of PNB. It simply means that as profits increases NPA also increases. It is because of the mismanagement on the side of the bank.


Table: 01 shows Gross, Net advances and net NPAs of Public and Private Sector banks during the period of 2003-14. It is found that gross, net advances and Net NPAs of public and private sector banks were raised more ten times during the period of 2003-14 whereas the ratio between Net NPAs and Net advances, Total assets have been increasing between 2010 and 2014 for public sector banks whereas private sector banks have been decreasing. It is clearly indicated that when increasing loans and advances as a result Net NPAs also increases.


 (Amount in Billion)


While comparing public and private sector banks with NPAs, public sector banks are back to regulate NPAs and there is a need for proper management of NPAs because to increase the profitability and productivity. Last month, Finance Minister Arun Jaitley had said that though NPAs in the banking sector was a cause of concern, there was no ground to “panic”. Due to NPAs is the challenging for the banking sector and its impact on the economy slowed down. He had said the NPA was mainly in sectors like highways, steel, and textiles.

            Central Bank of India has topped the list of public sector banks with maximum bad loans, including restructured assets as a percentage of total advances. According to the data provided by the RBI to the Finance Ministry, Central Bank of India’s 21.5 per cent assets are either bad or have been restructured to save them turning non-performing assets (NPAs). The other banks, which have significant amounts of gross NPAs and restructured loans include United Bank of India (19.04 per cent), Punjab & Sind Bank (18.25 per cent) and Punjab National Bank by 17.85 per cent as on December 2014. Indian Overseas Bank, State Bank of Patiala, Allahabad Bank and Oriental Bank of Commerce all have bad and restructured loans in excess of 15 per cent. The rising bad loans have become a major concern for the Reserve Bank as well as the government. Most of the restructured loans are from the corporate sector. The top 30 defaulters are sitting on bad loans of Rs 95,122 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2, 60,531 crore as on December 2014.



  1. Debt Restructuring

Once a borrower faces difficulty in repaying loans or paying interest, the bank should initially address the problem by trying to verify whether the financed company is viable in the long run. If the company project is viable, then rehabilitation is possible by restructuring the credit facilities. In a restructuring exercise, the bank can change the repayment or interest payment schedule to improve the chances of recovery or even make some sacrifices in terms of waiving interest etc.

The RBI has separate guidelines for restructuring loans. A fully secured standard/sub-standard/ doubtful loan can be restructured by rescheduling of principal repayments and/or the interest element. The amount of sacrifice, if any, in the element of interest, is either written off or provision is made to the extent of the sacrifice involved. The sub-standard accounts/doubtful accounts which have been subjected to restructuring, whether in respect of a principal installment or interest amount are eligible to be upgraded to the standard category only after a specified period.

To create an institutional mechanism for the restructuring of corporate debt the RBI has devised a Corporate Debt Restructuring (CDR) system. The objective of this framework is to ensure a timely and transparent mechanism for the restructuring of corporate debts of viable entities facing problems.

  1. Other recovery options

If rehabilitation of debt through restructuring is not possible, banks themselves make efforts to recover. For example, banks set up special asset recovery branches which concentrate on recovery of bad debts. Private and foreign banks often have a collection unit structured along various product lines and geographical locations, to manage bad loans. Very often, banks engage external recovery agents to collect past due debt, who make phone calls to the customers or make visits to them. For making debt recovery, banks lay down their policy and procedure in conformity with the RBI directives on the recovery of debt. The past due debt collection policy of banks generally emphasizes on the following at the time of recovery:

  • Respect to customers
  • An Appropriate letter authorizing agents to collect
  • Due notice to customers
  • Confidentiality of customers’ dues
  • Use of simple language in communication and maintenance of records of communication

In difficult cases, banks have the option of taking recourse to file cases in courts, Lok Adalats, Debt Recovery Tribunals (DRTs), One Time Settlement (OTS) schemes, etc. DRTs have been established under the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for expeditious adjudication and recovery of debts that are owed to banks and financial institutions. Accounts with loan amount of Rs. 10 lakhs and above are eligible for being referred to DRTs. OTS schemes and Lok Adalats are especially useful to NPAs in smaller loans in different segments such as small and marginal farmers, small loan borrowers and SME entrepreneurs. If a bank is unable to recover the amounts due within a reasonable period, the bank may write off the loan. However, even in these cases, efforts should continue to make recoveries.

  • SARFAESI Act, 2002

Banks utilize the Securitization and Reconstruction of Financial Assets and Enforcement of

Security Interest Act, 2002 (SARFAESI) as an effective tool for NPA recovery. It is possible where non-performing assets are backed by securities charged to the Bank by way of hypothecation or mortgage or assignment. Upon loan default, banks can seize the securities (except agricultural land) without intervention of the court. The SARFAESI Act, 2002 gives powers of “seize and desist” to banks. Banks can give a notice in writing to the defaulting borrower requiring it to discharge its liabilities within 60 days. If the borrower fails to comply with the notice, the Bank may take recourse to one or more of the following measures:

  • Take possession of the security for the loan
  • Sale or lease or assign the right over the security
  • Manage the same or appoint any person to manage the same

The SARFAESI Act also provides for the establishment of asset reconstruction companies regulated by the RBI to acquire assets from banks and financial institutions. The Act provides for sale of financial assets by banks and financial institutions to asset reconstruction companies (ARCs). The RBI has issued guidelines to banks on the process to be followed for sales of financial assets to ARCs.

  1. Through website

            The present era is the internet era, RBI provide website like  to sell the mortgaged assets banks and ARCs can conduct an auction through this website in an effective manner.


            In the above study it can be concluded with some proper recommendations to manage NPAs with an efficient and effective manner. Some of the recommendations can be provided by dividing before advancing and after advancing explained as follows:

  • Before advancing
  • The bank should find the proper reasons prior to provide loans and should verify the purpose of loan required by the borrower.
  • The bank should verify the financial strength of the borrower whether he can repay or not.
  • The bank should go for credit analysis, i.e.. Credit execution and administration, Credit appraisals with the help of CIBIL (Credit Information Bureau India Limited). They should concentrate on short term funds rather than long term because chance to repay will high and working capital will be adequate.
  • Diversification of funds is needed means by investing total in one area you can reduce the risk through diversification to various sources.
  • Banks are under the control of RBI nowadays the regulatory authority is easing the norms on PSBs there is chance of easing the more norms to reduce NPAs.
  • Banks should go their policies and procedures strictly.
  • They should go with proper collateral security.
  • After advances:
  • Need to keep an eye on borrower whether he is paying proper payments are not.
  • If proper repayment is not there banks should critically examine and analyze the reasons behind time overrun.
  • Creation of separate department for recovery of loans with a proper officer.
  • Some studies reveal that bank officials are hesitant to sell bad loans because they fear this might be perceived as an admittance of failure to recover the loan. To sell bad loans to ARCs (Asset Reconstruction Companies) leads some recoveries.
  • There is a need to strengthen and fasten the recovery of loans by banks.
  • Bank officials should frequently visit the unit and should verify the physical position of assets and how it manages because if one unit/branch fails affects the total productivity of the entire bank.
  • Banks should go with various recovery strategies and recovery options to manage NPAs in an effective and efficient manner.
  • They should have proper monitor and manage to control NPAs.


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  2. Chatterjee, 1. C., mukherjee, j., & das, d. (2012). Management of non performing assets – current scenario. International journal of social sciences and interdisciplinary research. 1 issue 11, ISSN 2277 3630
  3. Sonia Narula, m. S. (2014). Empirical study of non performing assets of bank. International journal of advanced research in computer science and management science, Vol 2, issue 1, ISSN: 2321-7782.
  4. Nag, a. K. (2015). Appraisal of non performing asset in banking sector: an Indian perspective. Indian journal of accounting Vol. XIVII, ISSN-0972-1479.
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The slum is not only a manifestation of mismanaged urban planning in the countries of the South. The existence of slums worldwide is also a sign that the slum is a crucial element of contemporary urbanisation. This article will attempt to define this phenomenon and understand its causes. Adequate policy responses are then suggested. Without finding appropriate solutions to the housing problems of a majority of urban dwellers, public and private decision makers will not be able to meet the challenges of sustainable development.

The primary causes of slum development are urbanisation, migration of the population from rural to urban areas, lack of proper affordable residences in the urban areas, unhygienic living conditions of the people in these slums. The slums are mostly built in low lying areas next to water bodies and drainages. These also pose as a health hazard for its occupants. The lack of sanitation facilities like proper toilets and bathrooms leads to unhealthy habits like open defecation, washing of clothes in the polluted river water, breathing in the stale, unclean air.

The secondary factors like education facilities, basic government services like policing, security etc are non-prevalent in the slum areas. As the slums are an illegal settlement on government land, the people have no life security and may be asked to evacuate at any time. Even the houses they live in are small compact and tightly packed. The settlement is very rudimentary and haphazard without any proper planning. These being situated in low lying areas are the first to be affected during natural disasters like floods and rains. The government has taken several measures to uplift the pitiful living conditions of the slum dwellers.

The report also contains case studies, both Indian and foreign, for further explanation on the life in squatter settlements. The case study in India is based on Dharavi, Asia’s biggest slum. The financial capital of India known as Mumbai is home to estimated 6.5 million slum people.

Nearly half of Mumbai’s Population lives in small shacks surrounded by open sewers. Nearly 55% of Mumbai’s population lives in Slum areas. Despite of Government efforts to build new houses and other basic infrastructure, most of the people living in slum areas do not have electricity, water supply and cooking gas.

The second case study is on Sao Paulo, in Brazil. A home to one of the biggest slums in the world called Favelas. Slums world‐ over share some common characteristics including a higher incidence of violent crime due to lack of attention from local law enforcement, a higher incidence of disease due to poor sanitation and access to healthcare facilities, the dominance of the informal economy and political bosses, and a higher incidence of child labour, prostitution, and substance abuse. Clearly, the culture of a nation or region plays a large role in determining the degree to which these factors shape the slum. The development of slums appears to be an entirely organic phenomenon which occurs when poorer countries that have under‐developed

urban management, governance structures and poor infrastructure undergo rapid industrialisation and urbanisation and fail to minimise the disparity of prosperity between the urban and rural population.


One of India’s biggest challenges today is coping with the wave of urbanization unleashed by economic liberalization. An estimated 160 million people have moved to the cities in the last two decades, and another 230 million are projected to move there within the next 20 years.

Unfortunately, as any visitor to India can see for themselves, its major metros and tier‐II cities are clearly finding it difficult to cope with the inflow of people. It is no surprise that India’s famously poor infrastructure is critically over‐strained. In response, the ill‐equipped urban systems and the informal housing that are the slums have expanded exponentially in the last few decades without proper access to basic services such as sanitation, healthcare, education, and law and order. While they are often teeming with entrepreneurial activity, they are nevertheless an inefficient use of the city’s human resources and land. In order to truly unleash the productive potential of this dynamic urban population, India will need to build scalable urban systems capable of housing, caring for, employing and integrating large and increasing numbers of new inhabitants. India is not alone in this challenge of course; Mexico, Brazil and Africa have some of the largest slums in the world. It is unclear that there are simple solutions to the problem of slums given their extraordinary organic growth rates– 70% of the world’s population is expected to live in urban centers by 2050 – and solving slums requires a rethink of the design of cities and their borders as well as of the role of rural areas. The challenge is incorporating all of these factors and still being able to provide safe and sounds residences to the abundant inflow of people, with proper planning and without the compromise on the use of the resources of the state.

In this article we will be running through the problems faced by the government due to slum and squatter settlements. The appalling living conditions of these illegal settlements, the health problems caused, the issues faced by the people living there and ways of rectifying this situation in the best possible manner.


“Slums are litmus tests for innate cultural strengths and weaknesses. Those peoples whose cultures can harbor extensive slum life without decomposing will be, relatively speaking, the future’s winners. Those whose cultures cannot will be the future’s victims.” – Robert D. Kaplan, The Coming Anarchy, 1994

A slum is a heavily populated informal urban settlement characterized by substandard housing and squalor. While slums differ in size and other characteristics from country to country, most lack reliable sanitation services, supply of clean water, reliable electricity, timely law enforcement and other basic services. Slum residences very from shanty houses to professionally built dwellings that because of poor quality design or construction have deteriorated into slums.

Slums form and grow in many different parts of the world for many different reasons. Some causes include rapid rural-to-urban migration, economic stagnation and depression, high unemployment, poverty, informal economy, poor planning, politics, natural disasters, and social conflicts.

Most of the people who live in slums are extremely poor, and many are treated as second class citizens by their society. Health problems tend to be very high, as a result of improper sanitation and lack of access to basic health care. Malnutrition is another serious problem in many places, as is crime, which can make them very dangerous for their inhabitants.

Many people view slums as the ultimate symbol of inequality, and in some regions, such areas have formed in some very unexpected locations, sometimes neighboring the homes of the wealthy. Organizations that campaign against them argue that no human being should be forced to live in such poor conditions, and that as a basic act of humanity, cities need to provide livable low cost housing and regulate construction.

Unfortunately, the solution is seldom this simple. The world’s population is rapidly growing, putting immense pressure on available resources, and as developing countries become more developed, this pressure is likely to grow. Although it is somewhat disheartening to think about, gross inequality seems to go hand in hand with growing societies.


Democracy provides free mobility to its people. Part of the freedom of India’s democratic population is the apparent liberty to pursue their dreams anywhere in the country and India’s aspiring population is dynamic and determined to do so. The great slums of India are predominantly created when large numbers of individuals or families move to the urban centres of their dreams, usually in search of better economic prospects. Mumbai has been the number one choice of generations of Indians for decades. These urban centres are not geared to, nor governed in a manner that can accommodate (or reject) such an influx of people. As a result, the incoming migrants find accommodation in unorganised dwellings. India’s slums have received global attention not just from the global NGOs but also in popular culture through movies like Slumdog Millionaire,which portray them as centres of unmitigated squalor and despair. However poor this quality of life may seem from the outside, from a migrant slum‐dweller’s perspective, living there is an entirely rational decision based on three basic factors:

  1. A Higher and More Stable Income. The productive employment opportunity in the urban centre will likely generate a higher and more consistent personal disposable income than in the place of origin – likely a rural, farming centre (e.g. being a chauffeur in Mumbai is a more lucrative and sustainable job proposition than being a labourer at a farm, typically a small plot in an un‐electrified village with erratic water availability.

  1. Social Mobility for the Next Generation. Raising children in an urban environment creates a higher “option value” for the next generation. Typically, cities offers a wider choice of education and employment opportunities, and while no parent wishes their child to grow up in a slum, the chances that the child could rise to a middle class life provides a strong incentive to migrate to one from the countryside. This contrasts to a child growing up in a village dominated by a sub‐scale farm with poor education and employment opportunities, who is unlikely to ever have the same social mobility opportunity.

  1. No Other Option. Unfortunately, slums are the only way to inhabit the city for the vast majority of migrants. With little available low‐cost housing of decent quality near the city centre, a rural migrant would need to go well outside even the suburbs and outskirts of the city to be able to afford real estate. Given the poor transport linkages to the cities, this can create a significant trade‐off for migrant in terms of the occupations that are available and their earnings potential. As a result, most are willing to compromise and make the trade‐off to slum housing in the city to be closer to the place of work.

The coalescing of this process over decades, with successive waves of migrants and no exodus of the previous waves leads to slums growing in scale and scope (see inset on the phases in slum development). Over time, informal economies develop in these slums as they form their own social practices and codes in the absence of any effective oversight from the local government. The larger slums often become a zone for small‐scale industries by illegally diverting public resources (water, electricity) to meet their requirements. These slums also provide bluecollar

labour for construction, manufacturing, and other trades.

Clearly, India’s slums are far from their popular stereotypes as only centres of disease and want. Indeed, an overwhelming number of people in these slums have left their homes in the countryside in the pursuit of opportunities in urban India because of their strong aspirations. Ironically, it is the informal economy which traps many of these slum‐dwellers into the vicious cycle of poverty.

Without real options for their children to secure competitive standards of schooling and with the overwhelming number of slum‐dwellers not trained for the better jobs, social mobility for this class, though inspiring when it occurs, is still limited. Further, continuing urbanisation and slum growth through fresh arrivals from the countryside increases competition for limited resources and, opportunities further reducing both liveability and individual chances for mobility. The very presence of slums ultimately risks creating a different class of urban citizens who only rarely mix with the other ‘classes’ other than as employees. While India’s slums today are full of ambitious hard workers, lack of opportunity can quickly institutionalise poverty and create an unbridgeable gap between poor and rich. Although global technological innovation and India’s growth provides its slum dwellers with access to some of the modern consumables such as motorcycles, televisions, and mobile phones, their ability to shape their own destiny remains limited – and the productive potential of the young migrants eager to work is under‐utilised. However, having established viability and survived attempts to dismantle the slum, India’s largest slums like Dharavi, are now in phase VI, continuous growth through adaptation. This makes them an organic entity that has demonstrated its Darwinian survival status.

Strategies for transforming India’s slums

The history of urbanisation is full of examples of cities which started off by being the hosts (willingly or not) to the economically weaker section of the population who were ultimately graduated from poor living conditions to a combination of affordable housing and basic civic amenities. The solution ultimately lies in better nations, not just better cities, which are scalable and capable of not only absorbing the inflow of people (from within or without), but in fact are economic magnets in attracting the best talent from the country. Five insights provide the basis of the solution.

Firstly, slums are a logical response to urbanisation and the relative lack of opportunity outside of major urban centres in predominantly poor countries. They are facilitated by the right to migrate. So, they are a structural phenomenon.

Secondly, slums become a system of living perpetuated by economics, politics and societal factors. Therefore, it makes sense to see them as a part of the system of a country and also the global system of trade and distribution of wealth.

Thirdly, people accept and adapt to their circumstances without (external) triggers to encourage them to do otherwise. In this sense, slums are adaptive organisms.

Fourthly, slum dwellers can improve the slum to a large extent if mobilised to do so. Therefore, they can also be developed as one would any organisational entity through the application of techniques of change management.

Finally, slum dwellers cannot transform their slum (into a non‐slum) without the support of the environment around them. They lack the critical human and financial resources to make a clean break from their situation. Their transformation requires external impetus and resources. In the absence of this external intervention, they can become disenfranchised rather than citizens in‐waiting and have the potential to develop a culture, set of values and behaviours that can threaten the on‐slum environment they live in.

“People accept and adapt to their circumstances without (external) triggers to encourage them to do otherwise … slums are adaptive organisms”

Therefore, ultimately, a comprehensive and long‐term solution to the problem of India’s slums cannot be about the slums themselves. A viable solution would have to take a holistic view dealing with India’s larger macro challenges and recognise the critical role which cities will have to play if India is to successfully transition into a middle‐income country. Such a solution and would include the following strategies:

  1. Industrial Revolution and Continued Development. While it was the industrial revolution which led to a wave of rapid urbanisation in the West and gave rise to slums,without the industrial revolution, the West would not have been able to afford to develop housing and infrastructure required for its growing populations. The solution to slums is not to reverse industrialisation or to try and contain urbanisation, but indeed to press forward with it more aggressively so that businesses can afford to provide jobs to slum‐dwellers and pay them a proper wage.

  1. Knowledge and Freedom Advantage. India is not fully leveraging its “freedom advantage” (see our previous paper on China which highlights the strong link between a society’s freedom and its development potential) which should in theory allow for people to strive to realise their aspirations. In particular, India needs to create an open knowledge economy where the slum‐dwellers are empowered to solve their own problems and have the access to financing to do so. This requires scaled charities and NGOs that can apply global bestpractices to tackling India’s urban issues and also raise the necessary financing.


  1. Slum Architecture. Lesson from other cities indicate that slums are best solved when housing is horizontal not vertical. In order to assimilate slum‐dwellers into urban life instead of further ostracizing them, India cannot just bulldoze the slums and pile up the people into apartment blocks. A real solution would involve building high‐quality, low‐cost, multi‐storey, diverse formats in the current areas such that these become integrated with the rest of the city (as we see in London or Paris). This needs the best brains in India and the world to come in and design the solutions. The slum is merely the platform for an urban re‐invention.

  1. Sustainable Continuous Dynamic Infrastructure Provisioning. The government needs to create a framework for gradual and continuous upgrading of slum infrastructure through innovative public‐private models and by leveraging the many dynamic charities and NGOs in India. Such a model would see the slum‐dwellers become the driving force of, rather than bystanders to, the improvement of their living conditions by empowering them to identify the solution and then finance and implement it.

  1. Rural ReVisioning and Investment. India cannot solve its slum problem by focusing on the cities alone. Any city which develops the systems to accommodate more people and create economic opportunities will attract a disproportionate number of migrants putting it under further strain unless opportunities in rural areas are sufficiently attractive relative to those in the city. Therefore a comprehensive solution would necessarily have to involve improved infrastructure, schools, employment opportunities and the overall quality of life in India’s small towns and rural centres. India’s countryside has all the potential of a Switzerland (Kashmir and the Himalayas), the Caribbean (the many beaches along its long coast), an African safari (the many wildlife sanctuaries and forests), and a Gulf desert trek (Rajasthan’s deserts and palaces) – however, the

country has barely begun to exploit this potential.



Dharavi slum is located in Mumbai (formally Bombay) in India. India‛s and Mumbai’s biggest slum is known as Dharavi. There are a million people crammed into one square mile in Dharavi. At the edge of Dharavi the newest arrivals come to make their homes on waste land next to water pipes in slum areas. They set up home illegally amongst waste on land that is not suitable for habitation. In the wet monsoon season these people have huge problems living on this low lying marginal land. Many of the people here come from many parts of India as a result of the push and pull factors of migration.


Conditions in the slum


In the slum people have to live with many problems. People have to go to the toilet in the street and there are open sewers. Children play amongst sewage waste and doctors deal with 4,000 cases a day of diphtheria and typhoid. Next to the open sewers are water pipes, which can crack and take in sewage. Dharavi slum is based around this water pipe built on an old rubbish tip. The people have not planned this settlement and have no legal rights to the land. There are also toxic wastes in the slum including hugely dangerous heavy metals. Dharavi is made up of 12 different neighbourhoods and there are no maps or road signs. The further you walk into Dharavi from the edge the more permanent and solid the structures become. People live in very small dwellings (e.g.12X12ft), often with many members of their extended families.

Many architects and planners claim this slum could hold the solution to many of the problems of the world‛s largest cities. Water is a big problem for Mumbai’s population; standpipes come on at 5:30am for 2 hours as water is rationed. These standpipes are shared between many people. Rubbish is everywhere and most areas lack sanitation and excrement and rats are found on the street. 500 people share one public latrine. The famous cloth washing area also has problems, despite its social nature sewage water filters into the water used for washing clothes.

The Positives of Dharavi Slum


There are positives; informal shopping areas exist where it is possible to buy anything you might need. There are also mosques catering for people’s religious needs. There is a pottery area of Dharavi slum which has a community centre. It was established by potters from Gujarat 70 years ago and has grown into a settlement of over 10,000 people. It has a village feel despite its high population density and has a central social square. Family life dominates, and there can be as many as 5 people per room. The houses often have no windows, asbestos roofs (which are dangerous if broken) and no planning to fit fire regulations. Rooms within houses have multiple functions, including living, working and sleeping. Many daily chores are done in social spheres because people live close to one another. This helps to generate a sense of community. The buildings in this part of the slum are all of different heights and colours, adding interest and diversity. This is despite the enormous environmental problems with air and land pollution. 85% of people have a job in the slum and work LOCALLY, and some have even managed to become millionaires.

Recycling and waste in Dharavi


Kevin McCloud found that people seemed genuinely happy in the slum. However, toilets are open holes above a river – hardly hygienic. This could lead to Dengue fever, cholera and hepatitis Dharavi has a recycling zone. It is claimed that Dharavi‛s recycling zone could be the way forward to a sustainable future. Everything is recycled from cosmetics and plastics to computer keyboards. 23% of plastic waste gets recycled in the UK, in Mumbai it is 80%. However, it is humans who work to sift the rubbish in the tips where children and women sift through the rubbish for valuable waste. They have to work under the hot sun in appalling conditions. They earn around a £1 a day for their work. At the edge of the tip the rag dealers sort their haul before selling it on to dealers. The quandary is that people have to work in poor conditions to recycle waste. From the tip it arrives in Dharavi where it is processed. It is sorted into wire, electrical products, and plastics. Plastics in India are continuously recycled. People work in dangerous conditions with toxic substances without protective clothing; this could affect people‛s life expectancy. Even dangerous hospital waste is recycled. One private enterprise makes the metal cages inside suitcases, making 700 pieces per day, paid 3 rupees per piece. There are 15,000 one room factories in Dharavi which there are 300 feeding most of Mumbai. Many of the products from Dharavi end up around the world based upon very cheap labour. Many of the people work in very poor working conditions, and includes children. Indeed, Dharavi is trying to do in 20 years what the west did in 200, develop.



The Favelas are densely packed informal settlements made of wood, cardboard, corrugated iron and other makeshift materials. Later they are replaced by concrete block construction. Often only one wall at a time will be built as a family saves up enough money to buy materials for the next wall. Then concrete tiles replace corrugated iron or other makeshift materials on the roof.

The large-scale improvement in favelas in São Paulo is due to residents’ expectations of remaining where they are. This in turn reflects a change in public policy in the past 20 years, from one of slum removal to one of slum upgrading.

Attempts to tackle the slum housing problem

Over time, a range of attempts have been made to tackle the housing crisis in São Paulo. These include:

  • A federal bank (BNH) which funded urban housing projects and low-interest loans to lower and middle-income home buyers
  • A state-level cooperatives institute (INCOOP) which helped to build housing for state workers such as teachers
  • A state-level development company (CODESPAULO) for housing for low-income families and financing of slum upgrading projects
  • A collaborative private sector/state company scheme (COHAB) to develop housing for limited-income families
  • A municipally managed COHAB for public housing construction, which also funded self-help projects (‘mutiroes’) to upgrade substandard housing.

During the period 1965 to 1982, over 150,000 housing units were built or upgraded, mostly through COHAB. Since the early 1980s, because of cutbacks at federal and state levels, the public housing burden has fallen more heavily on the municipality. Due to its own financial problems the number of housing units built by the municipality each year since the mid-1980s has averaged less than 6,000 a year.

The administration of leftist mayor Luiza Erundina (1989–92) tried to speed up public house building. Here the emphasis was on self-help housing initiatives, known as ‘mutiroes’. The city supplied funding directly to community groups. The latter engaged local families to build new housing or to renovate existing housing. However, the annual house building total only increased to 8,000 during this period.

The new strategy

The election of socialist mayor Marta Suplicy in 2000 marked a change in strategy towards the housing issue:

  • The new administration promised to spend $R3 billion on housing during its term in office.
  • The 1,000 unfinished Cingapura housing units were to be completed.
  • The new strategy would be designed to obtain maximum impact for minimum cost.
  • The concept of the mutiroe (self-help scheme) was resurrected, assisting families in self-construction or upgrading of their own homes.
  • The house unit cost of self-help schemes is between $R11,000 and $R15,000 compared to over $R20,000 for housing units in the Cingapura Project.
  • A flagship scheme to alleviate poverty in favelas is under way in Santo André (Figure 13).

Occupation of buildings by homeless

In July 2003, more than 4,000 homeless people occupied four abandoned high-rise blocks in the centre of São Paulo. Police prevented the occupation of two other buildings. This occupation and others was organised by ‘Movimento Sem Teto do Centro’ (Movement of Roofless in Centre). This organisation is protesting about the poor record of the authorities in tackling the homeless problem. They are also angry about the way street sellers are treated, with the authorities confiscating their goods because they are trading without licenses. For many homeless families and others, street selling is their only source of income.


Brazil has a greater disparity in income levels than most other countries. This impacts on housing and all other aspects of the quality of life. The occupation of buildings by homeless people is an illustration of the social tensions that such a wide income disparity can bring. It can be argued that housing is the biggest problem that São Paulo and Brazil in general has to tackle.


All the strategies described above on their own can transform the slums. However, if implemented together, they could represent a sea change in the way that world’s mass migration and resulting urbanisation is managed. This requires a recognition that the reason why slums in India persist and continue to expand is because of the failure to address fundamental issues of economic opportunity across the country, population growth, urban and rural development and education and skills development. A middle income India will indeed demand world‐class cities and conversely, to reach middle income levels, India needs to create opportunity for the population to be gainfully employed. Given India is already in the midst of a rocky economic cycle at the same time as slums are growing at the edge of every major city, the investment in urban infrastructure can create a highly positive multiplier effect for the economy while addressing a major issue. There is no single point in time or crisis which will tell us that India’s cities have suddenly become “un‐livable”; however if the status quo prevails for the next 20 years, they will get progressively more chaotic and at some stage in the not‐too‐distant future, it will be impossible to harness the economic potential of India’s population without even more radical changes than those outlined above. Addressing this issue is one of the key steps in the regeneration of the India story and will have a highly positive impact on the success of the next government. Indeed, solving the issue is about as difficult as putting a man on the moon, but would have massive collateral benefits for the nation as a whole and would be a true indicator that India is truly ready to play its role on the global stage.

“Solving the issue is about as difficult as putting a man on the moon, but would have massive collateral benefits for the nation as a whole and would be a true indicator that India is truly ready to play its role on the global stage.”


  2. McKinsey, India’s Urban Awakening, 2010
  3. Deccan Herald, “Dharavi SelfCreated Special Economic Zone for the Poor”, 2011
  4. Sussane Wendt(1997), Dissertation for phd, Slum and Squatter settlements in Dhaka
  5. Kevin McCloud, Slumming It