The Role Of Audit Committees And Corporate Governance Accounting Essay

In order to better corporate administration, accounting organic structures, market regulators and committees has recommended the preparation of audit commissions. In 2001, after the creative activity of Douala stock exchange ( DSX ) , the Cameroon capital market authorization requested all listed companies to set up audit commissions. This survey focuses on the function of audit commissions and corporate administration in Cameroon listed companies.Particularly, how audit commissions operates in a developing economic system like Cameroon and how these patterns can be compared with those in the western economic systems every bit good as other emerging economic systems, the relationship of audit commissions with direction, internal and external hearers.The major accomplishments and challenges confronting audit commissions. This survey revealed that AC in Cameroon are challenged with unequal human resource capacity, the intervention of the authorities and kiping stockholders every bit good the fast changing legal and runing environment. However, there has been a singular betterment on the dependability of fiscal describing therefore vouching investor ‘s assurance. Key words ; Audit commissions, corporate administration, Cameroon, listed companies, direction, internal hearer, external hearer, OHADA ( organisation for harmonisation of concern jurisprudence in Africa ) , CMA ( capital market authorization ) , Decision devising.Table of ContentDeclaration Recognition List of Figures List of Abbreviations List of Tables AbstractionChapter 1 Introduction1.1 Introduction 1.2 Background 1.3 Motivation 1.4 The survey nonsubjective and Questions 1.5 The survey range 1.6 The restrictions .7 The survey constructionChapter 2 Conceptual model2.0 -IntroductionSection A ; Corporate Administration2.1- The Definitions of Corporate Governance 2.2- The Background of Corporate Governance 2.3- Corporate Governance Code 2.4 Corporate Administration mechanism 2.5 Corporate administration Environment 2.6 The Development of the construct of Corporate GovernanceSection B ; Audit Committee2.7 The Operationss of Audit Committees 2.7.1- The Charter 2.7.2 Composition of the commission 2.7.3 -Qualification and Experience 2.7.4- Meetings and Reports 2.8-The Relationship between Audit Committees, the direction, internal hearers and external hearers 2.9 The major Accomplishments and Challenges confronting Audit Committees. 2.10- Conclusion.Chapter 3 Theoretical Frameworks for Corporate administration and Audited accountCommittees3.1 debut 3.2 The Agency theory 3.3 Evidence on struggle of involvement between stockholders and directors 3.3.1 Conflict over Compensation 3.3.2 Conflict on variegation and wealth reduction investing 3.3 the Stewardship theory 3.3.1 Summary of the theoriesChapter 44.1 Corporate Governance issues in developing states. ( Cameroon ) 4.2 The legal and Regulatory model for Corporate administration of listed companies in Cameroon. 4.2.1The Role of Douala stock exchange ( DSX ) 4..2.2- The Board of Directors 4..2.3 The Audit Committee 4.2.4- The Stockholders 4. 2.5.The Role of the Governance 4.3- The Actors of Corporate Governance ; Stockholders and Directors Chapter 5 Research Methodology 5.1 debut 5.2 Questionnaire study 5.3 Administration of Questionnaires study 5.4 Responses of the questionnaire study 5.5 Interview Survey 5.5 Administration of interview studyChapter 66-Findings and Discussion 6.1- Operation of Audit Committees 6.2- Relationship of Audit commissions with direction, internal and external hearers 6.3- Accomplishments and ChallengesChapter 7, Conclusion, Refrences and AppendixChapter 1 Introduction1.1-IntroductionIn the past two decennaries, there has been turning attendings on corporate administration notably after the corporate prostration of high net income companies in the universe like the Enron and WorldCom. Corporate administration is now a first order issue largely in economic systems where companies are run by commanding stockholders ( Albuquerue and Wang, 2008 ) and a big figure of companies are seeking to follow better corporate administration patterns ( Garay and Gonzalez, 2008 ) .Traditionally, corporate administration is regarded as a mean by which companies safeguard the public assistance of its moneymans such as its investors, creditors and loaners. Today, with the current recession and planetary fiscal hurt, issue of corporate administration patterns in companies and the functions of different commissions are been studied. Audit commission is going the most widely used mechanism to guarantee good corporate administration in companies ( Chen et al, 2008 ) .The audit commission is an operating commission of the company ‘s board of managers that have some inadvertence duties such as the fiscal coverage, fiscal revelation, external hearers, internal auditing every bit good as control. A good figure corporate administration surveies has being carried out in developed states of Europe, United provinces of America and Japan ( Joshi and wakil,2004 ) .Very few surveies has being carried out and completed in less developed countries.Tsamenyi, Enninful-Adu and Onumah ( 2007 ) observes that corporate administration surveies in less develop states are limited and are available merely on single state footing. This survey tries to bridge the spread in anterior survey by adding more in our apprehension of the operations of audit commission and the major accomplishments of audit commissions in Cameroon. Furthermore, old research in developing states did non addressed the issue on how audit commissions relate with the direction, internal hearers and external hearers.In this survey, we seek to make full in this spread by look intoing on how audit commissions in Cameroon listed companies relate with the direction, internal hearers and external hearers1.2 BackgroundJensen and Meckling ( 1976 ) defined bureau relationship as a contract under which one or more individuals ( principals ) engages another ( agent ) to exert a service on their behalf. Directors or agents are being delegated the daily determination devising by stockholders. Directors are hence charged with the duties of utilizing and commanding the house ‘s economic resources.However the directors may non move ever to the stockho lders best involvement due to inauspicious choice and moral jeopardy ( Anthony and Govindarajan,2007 ; 531 ) . Therefore, stockholders has to supervise directors activities in order to guarantee that they live up to the commissariats of their contracts ( Goddard and Masters,2000 ) To avoid direction failures, Moldddoveanu and Martin ( 2001 ) argued that stockholders must ordain confirmation, monitoring every bit good as countenance ( wages and penalty ) mechanisms. Moldoveanu and Martin ( 2001 ) defined confirmation mechanisms as the tools used in formalizing the determinations of the agent, in giving concluding veto for an enterprise, directive or the action program of the agent. Monitoring mechanisms ( both ongoing and separate monitoring ) are use to detect, record and to mensurate the end product of the agent ‘s attempts. Furthermore, approving mechanism give selective wagess / or penalties to agents for/ or for non alining their attempts with stockholders aims or stockholders involvement. A good figure of corporate administration surveies has being carried out in developed states of Europe, United provinces of America and Japan ( Joshi and wakil,2004 ) .Very few surveies has being carried out and completed in less developed states.Tsamenyi, Enninful-Adu and Onumah ( 2007 ) observes that corporate administration surveies in less develop states are limited and are available merely on single state footing.1.3 MotivationProper corporate administration is a really imperative mechanism to reconstruct investor ‘s assurance, to enlarge the private sector, and to excite economic growing. It have been predicted that â€Å" good administration of companies will shortly go as important to the universe economic system as proper administration of single states. † Some people may see this as excessively early to hold, but this anticipation was suggested with grounds, if non evidently true today, so, is really likely to be true in the hereafter. The planetary recognition of the impact of events sing corporate societal irresponsibleness ‘s such as the fiscal crises in Asia, the corporate dirts in the universe high net income companies like Enron and WorldCom and the fiscal crisis in most African states in the last decennary.All these cases negatively affected the public assistance and the lives of many such as the employees, the pensionaries, house ‘s creditors and loaners. These raised the pressing demand for effectual and efficient ordinance of corporations and besides led to fear in market places, and a lessening in stock monetary values. In most underdeveloped states, like in Africa, the acknowledgment of lost chances to mobilise fiscal resources in domestic and international capital markets via good corporate administration took the involvement of most African Heads of State. This so inspired the African Heads of State to include good corporate administration as one of the four chief thematic countries subjected to reexamine under t he African Peer Review Mechanism ( the APRM ) .The four selected countries include, political administration and democracy, economic administration and direction, socio-economic development, and good corporate administration. The demand to closely supervise the operations of corporations can be justified by the undermentioned two grounds ; -The increasing involvement of the investors in developing states to put in listed companies. -The Potential additions or losingss that hinge on good direction of corporations can be financially profitable or economically annihilating1.4 Research aim and QuestionsThe research aim is to add more in the apprehension of the operations of audit commissions in footings of their composing, rank, independency, meeting and coverage, charter guideline every bit good as the accomplishments and challenges. The research besides aims at analyzing the relationship between audit commissions with the direction, internal hearer and external hearers. Finally we will compare our findings with those in western and other emerging states. To accomplish these purposes, the research worker seek to beg the sentiments of four bunchs of respondents in the three listed companies in DSX ( SEMC, SOCAPALM, and SAFACAM ) . ( I ) the presidents of audit commissions, ( two ) the company secretaries, ( three ) the finance caputs ; and ( four ) the external hearers of all the companies listed in the Douala Stoc k Exchange ( DSX ) . The undermentioned research inquiries will be address ; a ) How the audit commission operates in less states like Cameroon and how these patterns are compared with those in developed states B ) How audit commissions relate with direction, internal hearers and external hearers degree Celsius ) What are the chief accomplishments and challenges confronting audit commissions1.5 The survey rangeThe range of this survey is to analyze the function of audit commissions and corporate administration in developing states peculiarly in companies listed in the Douala stock exchange ( DSX ) Cameroon.The analyses will focus on on the operations of audit commissions in listed companies in DSX by looking at their manner of choice, composing, frequence of the commission meeting, coverage, making and experience, the accomplishments and challenges confronting audit commission. The old research in developing states did non addressed the point on how audit commission relate with the direction, internal hearer and external auditor.In this survey, the research worker seek to make full in this spread by look intoing how audit commissions in listed companies in Cameroon relate with the direction, internal and external hearers1.6 Restrictions.It is imperative for the research worker and the users of this research to be qui vive of the pertinent restrictions as they try to progress and understand the consequences of this survey ( Anderson and Poole, 2001 ) . We should acknowledge that the method of questionnaire study is entitled to built-in restrictions. Harmonizing to Matthews ( 2002 ) all studies are entitled to some built-in failings as some respondents give responses which they believe are expected of them, or which portray themselves and the organisation in the best visible radiation. This can be the instance of the responses of the participants in this surv ey which included AC presidents, company secretaries and finance caputs. They may hold overstated their appraisal of the AC patterns as this was seen to be more of import than the other group of the participants ( external hearers ) . Besides, it can be probably that the questionnaires were non clear, this causes respondents to construe some inquiries otherwise or on their ain manner. This survey was besides limited by the fact that the interview study sample size was excessively little ( merely 5respondents opted ) as carry oning more interviews would hold guaranteed a broader apprehension of the research issue, nevertheless the interview study was merely to complement the questionnaire study to acquire a deeper penetration of the findings1.7 The survey constructionThis paper will be made up of seven chapters, chapter one introduces the subject of corporate administration and audit commissions, it besides give the first apprehension of the thesis background, motive, research aims, research inquiries and the restrictions. chapter two which is conceptual model is in two subdivisions. Section one will be based on corporate administration definitions, its background, corporate administration codifications, mechanism, corporate administration environment and in conclusion the development of the construct of corporate administration. Section two of this chapter will establish foremost on the operations of audit commissions ( maps ) , subsequently focuses on the charter, composing which has to make with the inquiry of independency ( Joshi and Wakil,2004 ) , the factor of fiscal accomplishments as a requirement for audit commissions member is besides examined every bit good as audit commission meetings and studies.Blue Ribbon commission ( 1999 ) ) gave recommendation that audit commissions members must be financially literate. Second, this subdivision will speak about the relationship of the audit commissions with direction, internal hearers and external hearers. Last, this subdivision will speak about some of the major accomplishments and challenges confronting audit commissions. Chapter three will seek to analyse some theoretical models like the bureau theory and stewards theory. And so look at the some of the bureau jobs between directors and stockholders. This chapter will in conclusion give a belief sum-up of the two theories ( bureau and stewardship theory ) In chapter four, the research worker will speak about corporate administration issues in developing states ( Cameroon ) , the legal and regulative model of corporate administration in listed companies in the Douala stock Exchange ( Cameroon ) concentrating on the function of the Douala stock exchange, the authorities of Cameroon, the board of managers, stockholders and audit commission, This chapter will look in conclusion at the histrions of corporate administration which involves the stockholders and directors. Chapter five which is research methodological analysis, the research worker will establish his research method on questionnaire and interview study turn toing the survey objectives.This questionnaires will be based on the operations of audit commissions, composing, independency, fiscal literacy, relationship, self-evaluation every bit good as the major accomplishments and challenges.they will largely be â€Å" true or false † type inquiries while others will ask the respondents to rate the commissions achievement with a mark of 4 ( to a greater extend ) to a mark of 1 ( non at all ) Chapter six will concentrate on the findings and treatments sing the research consequences. The findings and treatments will focus on on the operations of audit commissions, the relationship with direction, internal and external hearers every bit good as the accomplishments and challenges. Figure 1.thesis lineation.Chapter 2 Conceptual Frameworks2.0-IntroductionScandals, Frauds, every bit good as corporate failures has increase the demand for reforms and better ordinances more particularly in the Fieldss of corporate administration. In the early 1990s, in united land, a good figure of issues like the prostration of Maxwell concern imperium, leaded to the stimulation of treatments and statements refering the constructions for commanding executive power ( power2002 ) .In December 1992, a codification of best patterns was published ( the Cadbury codification ) .this codification gave recommendations to companies to organize audit commissions consisting of independent non-executive managers ( power2002 ) In United provinces of America, the addition figure of net incomes restatements in public traded companies, together with the fiscal statement fraud allegations every bit good as deficiency of responsible corporate administration in extremely profitable companies like Enron, Global crossing, World com In USA, Leisurenet in south Africa have sharpened the increasing attending in corporate administration every bit good as audit commissions in peculiar. The diminution of these companies raised much concerns sing the deficiency of argus-eyed inadvertence by boards of managers and audit commissions in fiscal coverage procedure scrutinizing maps ( Rezace et al,2003 ) .George W Bush, USA president in the province of the brotherhood reference, mentioned the gravitation of this job by saying that â€Å" Through stricter accounting standard and tougher revelation demands. Corporate America must be made accountable to employees and stockholders and held to the highest criterion of behavior ( B ush,29th January 2002 ) † .In USA a good figure of committees, ordinances and audit commissions has been formed to turn to corporate administration issues in USA. some of these include Tread manner committee ( 1987 ) , the Blue Ribbon commission ( 1999 ) .Further more, the 2002 sarbanes-oxely act was signed in to jurisprudence and one of its chief proviso were that all listed companies set up audit commissions ( Joshi and wakil,2004 ) Rezace, Olibe and Minmier ( 2003 ) stated that good corporate administration promote relationships of answerability between primary corporate participants and this will travel a long manner to heighten corporate public presentation as direction holds answerability to the board and the board is held accountable to the stockholders. One of the board chief map is to guarantee quality accounting policies, internal controls every bit good as independency. This will cut down fraud and fiscal hazard are anticipated every bit good as advancing accurate, high quality and timely revelation of fiscal and other information to the stockholders. CMA ( 2002 ) defined corporate administration as the procedure and the construction used to direct and pull off concern personal businesss of the company towards heightening prosperity and corporate answerability with ultimate aim of recognizing stockholders long-run value while taking in to account the involvement of other stakeholders. In Cameroon, corporate administration issues has been taken really serious.the Cameroon capital market authorization ( DSX ) in concurrence with commonwealth association for corporate administration has produce a sample codification for best patterns in corporate administration in June 2001.One of the cardinal recommendations in the Douala stock exchange ( DSX ) ( 2001 ) is that all listed companies establishes audit commissions consisting of independent non-executive managers which has to maintain under reappraisal the range and consequences of audit, their effectivity, independency and hearers objectivenesss. The codification further stated that separate audit commissions enables the board in deputing to the sub-committee the duty for thorough and item reappraisal of the audit affairs, besides to enables non-executive managers in lending independent judgement and have a positive function to play in an country in which they are peculiarly fitted and offer the hearers a direct nexus with non-executive managers ( CMA,2002 ) In south Africa, mangema and chamisa ( 2008 ) found out that the likeliness of a house to be suspended from the stock exchange is higher in houses without audit commission. This therefore suggest the importance and the necessity of audit commissions in Africa. This chapter will be divided in to two subdivisions. Section A will concentrate on conceptual model for corporate administration while subdivision B will concentrate on conceptual model for audit commissions.Section A. Corporate Administration2.1 The Definitions of Corporate GovernanceStates are different from one another in footings of engineering, civilization, political system, economic and historical development ( Roman,2001 ) .There differences make the definition of corporate administration to change from state to state therefore doing it really hard to came out with a universally acceptable definition of corporate administration. Shleifer and Vishny ( 1997 ) defined corporate administration while looking at the ways in which the providers of fundss to the steadfast assures themselves of good return for their investing. However this definition merely laid more accent on the providers of fundss, it fails to acknowledge the relationship that exist between the house ‘s directors and stakeholders since every house has many stakeholders with different involvements that must be taken attention of by the house. It is in this respect that corporate administration is besides looked upon as a corporate group of people united as one individual who has the power or authorization to command an organisation ( Ruin,2001 ) Australian criterion ( 2003 ) defined corporate administration as a pattern in which companies are controlled, directed and held to account. Harmonizing to Australian criterion ( 2003 ) corporate administration therefore comprises of power, answerability, leading, stewardship way every bit good as control. This definition takes in to consideration the demand of cheques and balances in organisation direction procedure, therefore it can be regarded as more comprehensive ( Gregory,2000 ) .The Australian criterion definition is besides similar to other definitions like that given by audit committee ( 2009 ) which emphasis the importance of answerability and control in organisational administration. The presence of many different definitions for corporate administration shows that every writer formulates a definition that suit his or her subject. ( Deunb and neubeuer,1992 ) .For case, harmonizing to Turnbull ( 1997 ) corporate administration influences all houses activities that produces good and or services, harmonizing to Colley et Al ( 2004 ) corporate administration is the act of regulating whereas Cadbury ( 2000 ) specify corporate administration harmonizing to the system by which the house is directed and controlled. However Wallace and Zinkin ( 2005 ) pointed out clearly that the term good corporate administration is really easy to give voice but hard to understand and appreciate.2.2 – The Background of Corporate GovernanceThe construct of corporate administration is been used both in economic sciences and in jurisprudence, and it is understood to intend enforcement of contract, protection of belongings right every bit good as corporate action ( McNutt,2010 ) , onc e and for all, corporate administration is associated with people runing within the organisation, nevertheless the organisation has to be decently governed in order to accomplish their set aims. This construct of corporate administration became more normally used and spoken in 1980s ( parker,1996 ) nevertheless it originated in 19th century when incorporation was advocated for as a agency of restricting liability ( fletcher,1996.vinten,2001 ) .The creative activity of registered companies is being perceived as the existent starting point for the treatment on corporate administration ( Adams,2002 ) .This enrollment of companies was supported by the joint stock companies act of 1844 ( Uk ) .The silver demand of modern corporation lead to the separation of control map from ownership ( Berles and means,1967 ) .With this separation, house ‘s proprietors no longer exert control over the house ‘s action because it was seen as a function of professional directors or agent ( kiel and Nicholson,2003 ) .This so propose the demand of corporate administration to protect house ‘s proprietors from the actions of directors.In respond to this demand, the limited liability a ct 1855 ( UK ) was created to protect stockholders from debts above their parts Francis ( 2000 ) argued that the demand for corporate administration patterns became more pronounce in 1980s.This was because during this period, several parts of the universe were sing stock market clangs every bit good as corporate failures in some cooperation due to hapless administration. Harmonizing to united nation,1999 ) corporate prostration was the cardinal driver for alteration to corporate administration codifications. In 1980, as more and more corporate entities continue to fall in in assorted parts of the universe, there were alteration of attitude with greater public presentation outlooks on the house ‘s direction board.It was besides realized here that the house has to be run by the director whereas the board ensures that the house is being run efficaciously ( Adams,2002 ) . The acceptance of the thought of corporate administration can besides be supported on a positive note. There was a turning recognitions that improve corporate administration is indispensable for growing and the development of the state ‘s economic system ( Carkr,2004, Department of Treasury,1997 ) .A survey that was carried out in United States of America by Gompers, Ishii and Metricck,2003 ) reveals that there is a strong correlativity ship between good corporate administration patterns and stockholders public presentation. This survey further reveals that over 60 % of investors were prepared to pay pore on portion of companies with good corporate administration patterns.2.3 Corporate Administration Code ( CGC )In most states, the best mechanism to heighten choice corporate administration reforms is through the execution of corporate administration codification to supplement the already bing concern Torahs. Corporate administration codification can be defined as paperss which stipulate the regulations and processs for regulating and pull offing organisations ( Dabor and Adeyemi, 2009 ; Ugoji and Isele, 2009: Scott, 2007 ; Classeens and Bruno, 2007 ) .While corporate administration involves the procedure by which organisations are governed and controlled with the purpose of adding stockholders values every bit good as meeting stakeholders outlook ( CBN, 2006 ; Iyang, 2009 ) , corporate administration codifications on its portion, flatly stipulates the regulations, rules and the best patterns for pull offing and regulating organisation ‘s efficaciously ( Okhealam and Akinboade, 2003 ; Amstrong, 2003 ; Gatamah, 2008, Andreason, 2009 ) . Most of these codifications are implemented by self-professional regulation bureaus but under the supervising of authorities regulative organic structures. However, the duty for companies to follow and implement these codifications depends on the company ‘s board of managers ( Elebute, 2000 ; Iyang, 2009 ; Sanusi , 2003 ; Soludo, 2004 ) .Therefore, the chief duties of the board of managers are to vouch choice administration public presentation, add stockholders values, preserve the involvement of stakeholders, protect the environment and warrant precise fiscal coverage ( Alo, 2003, WILSO? 2006.dabor and Adeyemi, 2009 ; Roe 2003 ; Ahmed 2007 ; Olusa, 2007 ; Elebute, 2000 ; Iyang 2009 ; Sanusi 2003 ; Soludo, 2004 )2.4 Corporate Administration MechanismCorporate administration mechanism involves the procedures through which a state ‘s concern Torahs and corporate administration codifications are been imposed. ( Reed, 2002 ) .Corporate administration mechanism consist of agencies to supervise, nevertheless the effectivity of the corporate administration mechanism lies on the regulative models and public administration strategy in each state. ( Wilson, 2006 ; Dabor and Adeyemi,2009 ; Ro, 2003, Ahmed, 2007 ; Olusa,2007 ) .the best enact of corporate administration codification is achieve thr ough modulating professional organic structures in confederation with the authorities modulating bureaus and with the stock market governments ( Vintem, 2002, Reed, 2002 ; Wilson,2006 ; oe, 2003 ) The premise or the thought that, the presence of many corporate administration mechanisms will frequently allow to good corporate administration has been proven incorrect by the high degree of corruptness, fraud and dirts in Cameroon and in other parts of the universe. The credence of corporate administration codification by most companies in the private sector is merely a conformity and non an indicant that the companies will oblige themselves to good ethical concern patterns ( Rossouw, 2005 ; Gatamah, 2008 ; Iyang,2009 ) .In Cameroon, over 70 % of the companies listed in the Douala stock exchange have a adopted the corporate administration codification but there are still incidences of frauds, embellzement, deficiency of answerability and unity.2.5 Corporate Governance EnvironmentHarmonizing to Li and Nair, ( 2009 ) , corporate administration environment takes in to consideration the consequence of factors like the state ‘s political system, the economic stableness and socio- cultural factors that can heighten good administration or prevent unethical concern operations ( Li and Nair,2009 ) .Therefore corporate administration environment embodies the state ‘s political, economic, technological, societal and legal systems that affect ethical concern patterns in corporations ( Amaeshi and Amao, 2008 ; Wilson, 20006 ) .Corporate administration so serves as a barometer to mensurate the company ‘s overall public presentation, their strategic pick, determinations and actions. Though the political, economic and socio-cultural consequences of the freshly formed corporate administration codifications in Cameroon are still under probe, the codifications are created or formed to safeguard companies against sick duties like corruptness, environmental maltreatment, and companies misdirection ( Gatamah, 2008 ; Andreason, 2009 ) .2.6- The Development of the Concept of Corporate GovernanceDue to cultural, political, economic and technological differences betw een states, the thought of corporate administration was adopted but with major fluctuations, as a consequent, a assortment of corporate administration model was established. However two major attacks of corporate administration patterns is identified with fluctuation originating merely on the different legal systems at work in assorted states Harmonizing to Solomon and Solomon, ( 2004 ) , Department of Treasury ( ,1997 ) ; states that patterns common jurisprudence like united provinces of America, united land, Canada, and Australia develop a type of corporate administration construction which focuses on stockholder ‘s involvement ( return ) .In this respect, corporate administration has to guarantee that the company achieves the aims set by the stockholders. This type of corporate is is known as foreigner theoretical account of control as it recognizes the spread between the troughs of a house and its proprietors ( Department of Treasury,1997 ) . On the contrary, states with civil jurisprudence such as Germany, France, and Netherlands develop their corporate administration which focuses on stakeholders. In this respects, corporate administration has to equilibrate the involvement of cardinal groups like the employees, directors, creditors and clients ( Solomon and Solomon,2004 ) .This attack is called insider theoretical account of control since it recognizes that the greater control in the house is held by those closer to its existent working ( Department of Treasury,1997 ) However the two attacks have some similarities. For case, they both opted for the fact that the direction boards of the house were to be elected by the house ‘s stockholders to put policies and so depute to the direction the full authorization to pull off the house ( Hilmer,1998 ) .Anyway, it was realized that most states adopted a system of corporate administration with the mixture of the two extremes ( Solomon and Solomon,2004 ) Nowourdays, corporate administration is an international issue because of concern globalistion.3It is seen to play a major function in the direction of companies in both developed and less developed states. However, Davis and schlitzer ( 2008 ) pointed out that corporate administration patterns are non unvarying across states, that each state tend to follow corporate administration processs based on factors like the state legal system, the fiscal system of the state, the state cultural and economic state of affairs and the corporate ownership construction of the state ( the organisation for economic cooperation and development,1998 ) .Section B: Audit Committee2.7-The Operationss of audit commissionsThe audit commissions has as it premier map to help the board in carry throughing its inadvertence duties. By so making, they review the fiscal information that has to be provided to the stockholders, other stakeholders and to the system of internal controls that has been established by t he boards of managers and the direction ( Bean, 1999 ) Bean ( 1999 ) pointed out some of the general duties of audit commissions: -The audit commission has to supply an unfastened ambiance for communicating between internal hearer, independency hearers and the board of managers. -They have to describe actions to the BODs and do some recommendations -The commission have the power to transport out or authorise probes in affairs within the commission ‘s range of responsility.The audit commission has to retain an independent advocate and comptroller if needed to help in an probe2.7.1- The charterIn developing states, audit commission ‘s faces a batch of troubles in transporting out their maps because of deficit in accounting accomplishments ( waweru, Hoque and Uliana, 2004 ) . A batch of writers have undertaken surveies on the inadvertence duties of audit commissions.Most of these surveies reveals that there is a broad fluctuations in sensed and declared duties.According to Kalblers and Fogarty ( 1993 ) survey, the duties of audit commission include inadvertence of fiscal coverage, internal controls and external hearer. Peter coopers and Lybrand ( 1995 ) and Dezoort, Hermanson, Archambeault and Reed ( 2002 ) in their survey found out that the duties of audit commissions revolved chiefly in countries of fiscal coverage, scrutinizing and overall corporate administration. It has being argued by Guy and Burke ( 2001 ) that all companies with audit commissions must develop a seamster made charter that describes the commissions composing and specifies entree to allow resources. The charter has to be approved by the board which so serves as a usher to the commission in transporting out the assorted duties delegated to them by the full board of managers.According to Bean ( 1999 ) , comprehensive charter enhances effectual public presentation of the audit commission, serves as a roadmap for members of the commissions by doing a clear definition of the duties and supply a systematic treatment construction among the commission and the direction every bit good as public comptroller ( Bean,1994 ) . A charter helps scrutinize commissions members to concentrate on their specified duties and besides the charter enable or assist stockholders in measuring the function and duties of audit commissions ( KPMG,1999 ) . In Cameroon, audit commissions authorization is got ten from capital market act which requires that some authorization has to be delegated to the audit commission by the board.2.7.2- The composingHarmonizing to Joshi and Wakil ( 2004 ) , one of import variable of composing of the audit commission is the inquiry of independency ( joshi and wakil, 2004 ) . Br aiotta ( 1999 ) pointed out that the effectivity of an audit commission depends on the background of the commission ‘s members which have to dwell of both fiscal and non fiscal skilled people ( Braiotta,1999 ) . The success or failure of the commission ‘s operation relies on the president, hence great attention has to be taken when taking the president ( Braiotta,1999 ) .According to Braiotta ( 1999 ) , the figure of audit commission member depends on the duties and authorization of the commission and besides on the size of the board and the company. The figure of the members vary from one state to another ( Braiotta,1999 ) There are turning statements on whether the commission members should be independent as advocated by Bean ( 1999 ) , the Blue Ribbon ( 1999 ) every bit good as it was adopted in Cameroon by the Capital Market Act in 2001 ( Hussein,2003 ) or should it depend on the environing fortunes of a peculiar company ( Attwood,1986 ) .According to Bean ( 1999 ) , an independent manager is one who is free from any relationship that can act upon his or her judgement as a member of the audit commissions ( Bean,1999 ) .However this is hard to find ( Pomeranz,1997 ) In Cameroon, the issue of independency of most managers is been affected by that fact they serves as managers in more than one listed company. This is as a consequence of deficit in skilled human resources capacity in Cameroon and besides due to the fact that most listed companies in Cameroon are little in size therefore doing it hard to pull people with qualified accomplishments.2.7.3-The Qualification and Experience.There are different point of views on the demand of fiscal literacy as a making for audit commission members. The Blue Ribbon commission ( 1999 ) recommended that all audit commission members has to be financially literate. Harmonizing to Rezaee et Al ( 2003 ) , fiscal literate is define as the ability to read and understand fiscal statement. However Herdman ( 2002 ) questioned the issue of whether the demand about fiscal literacy of audit commission members by the capital markets went far plenty. On the contrary, Jonathan and Carey ( 2001 ) argue on whether in a univer se of of all time more complicated accounting criterion, where even to the full trained comptroller can fight to understand, if this is a realistic and a necessary demand as a member of the audit commission ( Jonathan and Carey,2001 ) . In USA, surveies were carried out in countries of experience and expertness. The United states General Accounting Office ( GAO ) ( 1991 ) found out that over half of the 40surveyed audit commission chairs from big US Bankss reveals that their audit commissions were runing with no members with expertness in accounting, scrutinizing and jurisprudence inadvertence ( GAO,1991 ) .2.7.4- Meeting and ReportsHarmonizing to Guy and Burke ( 2001 ) , audit commissions have to schedule meetings two to four times per twelvemonth depending on their range of activities and the company size. Graziana ( 2004 ) argued on the point that audit commission has to run into more often, both officially and informally.Formal meeting has to be held a least 4 times and sometimes up to 12 times per twelvemonth, this 4 meetings are in individual and last for about 4 hours. ( Graziana,2004 ) .These meetings must include the senior direction, external hearer and the internal hearer ( Graziana,2004 ) .Furthermore, t he board has to depute the authorization ot the audit commission to keep particular meetings as needed ( Guy and Burke,2001 ) . Some surveies have being carried out on the frequences of audit commission meetings.Menon and Williams ( 1994 ) made a research on 200 companies and found out that the figure of audit commission meeting was increasing as the figure of outside managers increased ( menon and Williams,1994 ) .Studies have shown that meeting frequence is positively related to the company ‘s size, monitoring and the demand of audit commission meeetings. Price WaterHouse Cooper ( 1999 ) saw that audit commissions in European companies meet averagely 3 to 4 times per twelvemonth. The audit commission ‘s study has to be addressed to the BODs and must include their findings and recommendations sing the effectivity of the maps of internal and external hearers and other countries within the commission ‘s legal power as stated in the charter. Besides, the study has to establish on the engagement of the members in audit panning procedure and their monitoring activities ( Braiotta,1999 ) .2.8-The Relationship with Management, Internal hearer and External hearer.Harmonizing to Blue Ribbon commission ( 1999 ) , a company can merely accomplish quality fiscal coverage when there is an unfastened and blunt communicating every bit good as a co-working relationship between the board of managers, audit commissions, the direction, internal and external hearers. It has being argued Rezaee et Al ( 2003 ) that the most effectual attack is for the audit commission to work in coaction with the direction and the hearers to enable them place complex activities of the co mpany, identify and asses the comparative hazards, find the accounting intervention and besides to acquire a complete apprehension of their impact on free and just presentation of fiscal public presentation in order to cut down deceitful activities ( Rezaee et al,2003 ) .Members of the audit commissions have to be sufficiently knowing to inquire tough inquiries to the direction every bit good as the internal and external hearers sing the study quality, transparence and the dependability of the studies. However, in developing states like Cameroon, most of the listed companies are institutionally owned and these establishments are owned by the authorities, as a consequent, some members serves in the board due to their virtue place in the authorities and non because of their making or experiences. Braiotta ( 1999 ) stated that the audit commission has to be independent from CEO, nevertheless the CEO holds the best information beginning related to the concern and they guarantee speedy respond to the petition of the audit commission, therefore doing the relationship with the CEO the key. ( Braiotta,1999 ) . The BODs has the duty of reexamining the overall effectivity of internal controls system but in world, the board can depute this duty to the audit commission ( Zaman,2001 ) .The board so has to make up one's mind on the function of audit commission in the reviewing procedure, the function of audit commission in the reappraisal procedure besides depends on factors like the size, the board composing and the nature of the company ‘s chief hazards ( Zaman,2001 ) . Harmonizing to Braiotta ( 1999 ) , it is necessary and of import for the audit commission and the hearers to set up a good working relationship that is non counterproductive ( Braiotta,1999 ) .There is a co-relationship between the plants of the audit commissions and independent hearers because they both have common fiscal aims. Following the Sarbabes-Oxley Act in the United States, it is legal for the hearers to describe to the direction. The audit commission has to O.K. all services both audit and non-audit, they get all new accounting and scrutinizing information from the hearers and they besides serve as an o official communicating line between the company and the hearers ( Tackett,2004 ) .The fact that the audit commissions are given the authorization in doing determinations about hiring and firing the hearers, has removes from the direction the ability of endangering the hearer with dismissal if the hearers fails to execute to the direction best involvement, moreover, the audit commission are required to do blessing to all payments made to hearers for their services like scrutinizing therefore doing it hard for direction ot bargain unneeded services from hearers with the hope that the hearers will give them some favourable interventions, in conclusion, the fact audit commissions are required to cover with any dissension between the direction and the hearers, makes it hard for direction to look in questionable accounting patterns. Knapp ( 1987 ) made a surveyed on 179 audit commissions members and found out that, when there is audit difference, the audit commission tend to back up the hearers and non the direction.2.9- The Major Accomplishments and Challenges confronting audit commissionsSeveral sentiments has being raise sing the utility of audit commissions.According to Guy and Burke ( 2001 ) merely 22 % of the executive managers of FTSE 100companies have the construct that audit commission are helpful in accomplishing good corporate administration while 78 % remain unconvinced about the value of audit committees.However,89 % of the non-executive managers in FTSE 100companies have the believe that audit commissions are critical or helpful in accomplishing quality administration ( Guy and Burke,2001 ) .Menon and Williams ( 1994 ) carried out a survey on whether companies depends on the study of their audit commission, this survey reveals that companies do non trust on their audit study though they voluntarily formed the commissions, therefore these commissions were established for other intents. ( Menon and Williams,1994 ) .According to Joshi and Wakil ( 2004 ) , audit commissions are widely used in big companies and in companies with higher proportion of no executive managers ( Joshi and Wakil,2004 ) . Due to the demand of corporate administration in companies, a batch of force per unit area is being mounted on audit commissions in supervising the unity of the house ‘s fiscal coverage activities. There are higher outlooks from the non-executive managers functioning as audit commissions members ( Jonathan and Carey,2001 ) .It is recognize that the duties of audit commission are increasing which has to make with affairs refering hazard direction, internal control, other regulative demand, the independency of external hearers and besides the move to international accounting criterion ( Jonathan and Carey,2001 ) .Furthermore, many stakeholders are interested in the house ‘s activities but with different dockets therefore doing it more complex and hazardous helping in audit commission or on boards. The Sarbane-Oxley for case provinces that failure to execute will ensue to legal actions. Rezaee et Al ( 2002 ) pointed out that the inclusion of the study of audit commissions in proxy statements serves as challenges for the audit commissions. The commission members do non exert their full engagement in the readying of the fiscal statements therefore increasing their hazard ( Rezaee et al,2002 ) .2.10-ConclusionSurveies carried out in developed states shows that good corporate administration reduces deceitful gaining direction ( Rezaee et al,2003 ) . In fact, the corporate failures in some high net income companies are attributed to miss of argus-eyed inadvertence by the boards. It is instead unfortunate that there exist no empirical survey on the overall effectivity of corporate administration in Africa, Mangema and Chammisa ( 2008 ) observed that because of state differences in Africa, it will be much nicer and clear to analyze the assorted administration constructions individually in every state. This survey tries to bridge the spread in anterior survey by adding more in our apprehension of the operations and the major accomplishments of audit commissions in Cameroon. A batch of empirical surveies have being carried out refering the operation and the functions of audit commissions in different states. For case, in Canada, Maingunt and Zeghal ( 2000 ) investigated the aims, composing, choice, frequence of the commission meeting, the relationship of audit commission with direction and hearers. ( maingunt and zeghal,2000 ) . The old research in developing states did non turn to the point on how audit commissions relate with the direction, internal hearer and external hearers. In this survey, we want to make full in this spread by look intoing how audit commissions in Cameroon listed companies relate with the direction, internal hearers and external hearers.Chapter 3 The Theoretical models for Corporate Governance andAudit Committee3.1 IntroductionThe bureau theory have influenced recent believe about concern direction and policies. This tides that directors do non ever move to stockholders best involvement unless suited administration constructions are imposed to safeguard stockholders public assistance. ( Jensen and meckling, 1976 ) .The BODs have a great function to play here more particularly in the relationship among president and the CEO ( Tricker,1984 ) .the involvement of stockholders can merely be protected when the board chair is non detained by the CEO or when both the stockholders and the CEO have the same involvement ( Williamson, 1985 ) . Harmonizing to Berles and agencies ( 1932 ) a individual stockholder can non exert control over a house whose capital is expeditiously and sufficiently dispersed. Therefore capital scattering allows directors to exert illicit power on behalf of stockholder. Directors determinations and actions are been monitored and evaluated by the audit commission formed by the board.The audit commission so serves as a nexus between the direction and the board and besides to protect stakeholders welfare.. The bureau theory and the stewardship theory are two finance theories that covers the construct of corporate administration and the function of audit commission to heighten good administration.3.2 The Agency theoryAgency theory can be define as a contract in which one individual ( the principal ) engages another individual ( the agent ) to execute some services on his or her behalf ( Jensen and meckling,1976 ) . Harmonizing to Kiel and Nicholson ( 2003 ) , due to the separation of control and owne rship maps, directors has to pull off the house on behalf of the house ‘s proprietors. However conflicts ever arises when the directors are non pull offing the house to the proprietors best involvement ( Eisenhardt,1989 ) .The bureau theory therefore is more concern in analysing and work outing jobs or struggles that occurs between houses proprietors and directors. By so making, the bureau theory assumes that the function of a company is to maximise stockholders wealth ( Blair,1995 ) The bureau theory relay on the fact that, most concerns are runing with uncomplete information and with a batch of uncertainness. These conditions so exposes the concern to two major bureau jobs ; inauspicious choice and moral jeopardy. The job of inauspicious choice occurs when the stockholder ( chief ) can non determine whether or non he director ( agent ) accurately stand for his or her ability to make the occupation for which he or she is being paid for ( Eisenhardt,19989 ) .Moral jeopardy on the other manus is when the stockholder ( chief ) is non certain that the director ( agent ) has put forth his or her maximal attempts ( Eisenhardt,1989 ) .According to this theory, directors have superior information that which let them to hold advantage over the house ‘s proprietors, directors may so be more motivated to fulfill their single public assistance instead than the public assistance of the stockholder ( Berles and means,1967 ) It has being argued by Donaldson and Davis ( 1991 ) that unless quality corporate administration constructions are implemented to safeguard stockholders involvement, directors will non ever move to maximise stockholders returns. In this respect, the bureau theory supported that the intent of corporate administration is to cut down the potency of directors moving reverse to stockholders involvement. The bureau theory further argued on the point that, top direction of the house must hold important portion of the house so every bit to keep a positive relationship between corporate administration and the figure of stock owned by the top direction ( Mallin,2004 ) .According to Wheelen and Hunger ( 2002 ) , conflicts or jobs ever occurs in a company when the top direction is non willing to be held responsible for their determinations unless they have a sensible sum of stock on the company ( Wheelen and Hunger,2002 ) .The bureau theory besides advocated for the regulations and inducements that align directors behaviours with the involvement of stockholders ( Hawley and Williams,1996 ) , nevertheless it is practically impossible to compose down the regulations that governs all the scenarios that the employees brushs3.3 Evidence on struggle of involvement between stockholders and directors.following theoretical sentiments on the motivations for struggles of involvement among stockholder s and directors, a good figure of research have reveals plenty proof proposing the happening and significance of bureau struggles between companies stockholders and directors related with hazard disagreement, privilege and fiddling problem.these research centres their findings on the struggle of involvement sing affairs of compensation, variegation, and investing3. 3.1 Conflicts of involvement over compensationA batch of surveies observe the association between directors, compensation and company public presentation and consequences shows regularity with conflicting involvements between stockholders and directors. A typical research is that conducted by Jensen and Murphy ( 1990 ) .this survey found a weak relation between directors compensation and public presentation. To intensify this, there is the cogent evidence that directors wealth are more sensitive to the size of plus than to the market value ( Jensen and potato, 1990 ) , this so opposes Rosen ‘s ( 1982 ) premiss that the size and wage relationship is because large companies employ more able executives. Agrawal and Knoeber ( 1998 ) perceive that coup d'etat menace have two beliing effects on managerial compensation. The first premiss is that of the consequence of market competition for directors, this leads to less ability for troughs to demand higher wages.the 2nd premiss is that of hazard consequence which in contrasts leads to higher compensation due to the fact that higher coup d'etat menace can increase the likelinesss of a house losing its specific human capital or compensation deferral. This so oblige manages to bespeak for higher rewards to counterpoise the high hazards. ( Agrawal and Knoeber ( 1998 ) .Following the study that was carried out by Agrawal and Knoebe ( 1998 ) on 450 companies which were divided in to two, ( one set where directors see both effects of hazard and competition and the other set where troughs faced merely the consequence of competition in the market ) .According Agrawal and knoeber ( 1998 ) , the both effects are of import. everything being equal, through the consequence of competition, lower coup d'etat menace consequence to higher rewards which is in harmoniousness with the point of view of misalignment of stockholders involvement and troughs involvement.3.3.2 Conflict on variegation and wealth reduction investingAnother chief of struggle between stockholders and troughs is on the variegation schemes. There are theoretical claims that variegation have both costs and benefits to houses proprietors, nevertheless, bing cogent evidence suggest that the costs are more than the benefits. there is the averment that holds that, on an averages footing, variegation costs are far higher than the benefits, Morck, Shleifer and Vishny ( 1990a ; Bhagat, shleifer and Vishny ( 1990 ) servaes ( 1996 ) all found out that corporate variegation is associated with significant value loss. Some cogent evidence of bureau jobs can be found in acquisitions and investings. Several surveies have reveals that purchaser return from the announcement of acquisition are negative ( Roll, 1986 ) .According to Jensen ( 1986 ) the nastiest bureau jobs arise in companies with hapless investing gaps and excess cash.it was argued by lang, stulz and walking ( 1991 ) that buyer returns are likely to be lower when companies have small Tobin Qs and greater hard currency flows. On the other manus, McConnell and Muscarella found cogent evidence of wealth cut downing investing in oil geographic expedition, this is particularly when troughs holds small ownership bets ( Lewellen, Loderer and Rosenfeld ( 1985 ) .3.4 The stewardship theoryThe stewardship theory holds a different attack from that of the bureau theory, it foremost premiss is that, the company serves a big scope of societal intents instead than merely seeking to maximise the wealth of stockholders. The stewardship theory besides cal led the stakeholders theory assumes that corporations are societal entities that affect stakeholders welfare and stakeholders are persons interacting with the houses straight, hence, they can impact or affected by the accomplishment of the house ‘s aims ( Donaldson and preston,1995, freeman,1984 ) Harmonizing to Starik and Rands ( 1995 ) , a company ‘s success can be judge by its ability to add stakeholders value ( starik and rands,1995, Dunphy et al,2003 ) .stakeholders will merely return to a house for more when they ever get what they wantFreeman,1984, freeman and Mc Vea,2001 ) .Hence stakeholders are regarded as instrumental to corporate success and they tend to possess some moral and legal rights ( Donaldson and Preston,1995, Ulrich,2008 ) .Companies direction have to take in to consideration the claims or concern of stakeholders in their determination devising procedure ( Blair, 1995 ) , stakeholders participation in the company ‘s determination devising procedure heighten better efficiency ( Turnbull,1994 ) and besides reduces struggles ( Rothman and Friedman, 2001 ) . A company can utilize two attacks when sing or integrating stakeholders in their determination devising ( kaptein and van Tulder,2003 ) . These two attacks are reactive and proactive attack. Reactive attack on one manus is when the concern of stakeholders are non considered or integrated in doing corporate determination. This normally leads to misalignment of the company ‘s aims and the demands of stakeholders ( Mackenzie,2007 ) .The dirts of universe com was attributed to the fact that they ne'er integrated the stakeholder concern in their determination devising procedures ( Curral and Epstem,2003, Turnbull,2002, walkins,2003 and Zandstra,2002 ) .In respond to these dirts, some ordinances were set up by authoritiess with the purpose of alining stakeholders involvement with corporate aims. For case, the Sarbanes-Oxley Act. On the other manus, the proactive attack is when companies integrate the concern of stakeholders in their corporate determination doing procedure, therefore establishes a good corporate administration construction ( de humor et Al, 2006 ) .3.5 Summary of the theories.The cognition of bureau theory can be credited to Coase ( 1937 ) nevertheless the thoughts of this theory was practical merely to managers and boards since the 1980's.Following. bureau theory, persons are self-interested and non selfless, therefore persons can ne'er be trusted to ever move in others best involvement. On the other manus, , persons will ever desire to maximise their public-service corporations maps, the bureau theory considered directors and stockholders relationship as a contract ( Adams, 2002 ) . This means that directors actions must be decently monitored to vouch that they ever act in stockholders ‘ best involvement. The stewardship theory on its portion opted that company ‘s board of managers and their Chief executive officer, moving as stewards, are encouraged to move in the company ‘s best involvements and non seeking to fulfill their selfish involvements. This is partially because, antecedently senior executives regarded companies as an extension of themselves ( Clarke, 2004 ; Wheelen & A ; Hunger, 2002 ) .The stewardship theory hence suggested that, like stockholders, top direction of a company should care more on the future success of the company ( Mallin, 2004 ) .Chapter 44.1 Corporate Governance issues in Developing Countries ( Cameroon )Harmonizing to Wallace ( 1990 ) , developing states are defined as those states found in mid-stream of development and are referred to anamorphous and heterogenous group of states found largely in Africa, Asia, Latin America, Middle East and Oceanea. There exist difference between developed and developing states in footings of civilization, po litical relations and market economic sciences ( Waweru and Uliana,2005 ) .Due to miss in skilled human resources, developing states hence find it hard to pull forces ‘s poetry with accounting and fiscal accomplishments in their commissions. The cultural fluctuation between extremely individualistic states ( like North America ) and extremely collectivized states ( like Africa ) necessitate different corporate administration agreements. Rabelo and Vasconcelos ( 2002 ) pointed out factors like economic tendencies towards globalisation, under developed capital market every bit good as authorities intercession has made the theoretical account of corporate administration to differ from those in European states and North America. Mensah ( 2002 ) argued that states in Africa are non good equipped in implementing the sort of corporate administration found in the western universe because of the economic and political governments qualifying these states ( illustration weak deceitful le gal and judicial governments, province ownership of companies as good limited capacity in skilled human resources. ) . Corporate administration constructions in less develop states are determined by the ardor to keep control by the bulk stockholders over houses, the dependant on debt finance, weak fiscal markets and uneffective legal system ( Rabelo and Vasconcelos,2002 ) .Developing states are ever confronted with jobs like less developed and illiquid capital markets, economic uncertainnesss, investors protection every bit good as weak legal and judicial control system ( Tsamenyi et al,2007 ) . Harmonizing to Goddard and Masters ( 2000 ) , audit commissions has become more relevant and prevailing recently but nevertheless there is dearth in the empirical research about their value. Kalbers and fogarty ( 1993 ) further indicated that the issue of whether audit commissions are truly dispatching their relevancy duty remain insufficiently understood, proposing therefore the demand to analyze the ways audit commissions are runing in developing states like Cameroon In Cameroon, most companies are owned by establishments and such establishments are owned by the province ( authorities ) , hence most board members are functioning the place as direction of stockholders non because of their making neither their experiences ( Mensah,2002 ) .Audit commissions operations in developing states are different compared with the patterns in developed states.In 2001, the Cameroon capital market authorization gave guidelines sing corporate administration activities for listed companies.one of this guideline was that which called all boards to organize audit commissions consisting at least three independent non-executive managers. Figure 2, corporate administration ( CG ) fram work in Cameroon4.2 The legal and Regulatory Framework of corporate administration for listed companies in CameroonCameroon operates under two systems of Torahs viz. ; the common jurisprudence and the civil jurisprudence. The bilingu

Relative Importance of Economic, Social, Cultural and Moral Considerations

Discuss the relative importance of economic, social, cultural and moral considerations underlying Canada’s migration policy. Canada is the world’s second largest surface area, with a population of 33 million. It is a rich resource base for industry with fertile soil, plentiful power supplies, well developed modern industries and a highly urbanised population. About 70% of Canada’s workforce growth comes from immigration and currently one in five Canadian workers are foreign born.Canada’s establishment and economic growth are directly attributable to immigration, but the country has always operated a highly selective system with policies changing due to the economic, social, cultural and moral needs of the country at that time. Between 1870 and 1918 was known as the ‘Open Door’ policy. The main need at this moment in time was economic and for infrastructure development, especially a rail network. In the west of Canada the main industry was agri culture and the East was mainly manufacturing. A rail network was then essential to link the two and create an integrated economy.This stage was called Open Door because there was no restriction on numbers into the country, but there was some cultural considerations underlying this policy as well. The migrants sought were almost exclusively from the USA, UK, NW Europe to reflect Canada’s customs and ideals. Therefore, the government could control racial composition of migrants. From 1919-1929 immigration became more selective and the main focus underlying the migration policy was social. Prospective migrants had to pass a literacy test. Migrants were separated into those from ‘preferred’, such as from the U.K and were given financial assistance, and ‘non preferred’ countries. ‘Non-preferred’ countries included Russia. Immigrants from here were only admitted in times of need for the lowest-paid jobs, and there were still restrictions. Thi s shows further cultural considerations in the policy. The non-preferred list also had a ‘non-acceptable’ category which included ‘visible minorities’ (e. g Chinese, who worked for the rail companies). The Exclusion Act in 1923 prevented Chinese immigrants bringing family members with them. This is a big example of the cultural considerations being used to change the policies.Unemployment rose significantly between 1930 and 1945 (The Great Depression). All migration was suspended, except under the family reunion category. The next stage between 1946 and 1960 had the aims of increasing in-migration and both cultural and moral considerations were major parts of the policies created. The immigration Act of 1952 reflected the ethnically selective nature of the Canadian Immigration. Groups could be refused entry on grounds of nationality, citizenship, ethnic group, occupation, class, ‘peculiar’ customs etc. After many years of racist undertones in p olicies there was a turning point between 1960 and 1986.An immigration act in 1967 sought to enrich and strengthen the cultural and social fabric of Canada. Attention switched to the skills of the migrant rather than the country of origin. This showed a switch from cultural and moral considerations in the policy to social. Preferred and non-preferred countries were abandoned for a points system which was much fairer. From 1986 to 1993, economic was the main consideration underlying the economic policies. Migration was now seen as a long term demographic solution due to a changing population. In more recent years the points system has been modified with moral considerations for everyone.

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Alex and his three â€Å"droogs† are a gang of youngsters who goes around in the dangerous streets of London, fighting, raping, pillaging, and all the basic doings generally associated wit h anarchy. In a small town, this would be less likely to happen. Overalls, dirty jeans and hats are not uncommon apparel for citizens out running errands and are almost a necessity for the distinguished elderly man. Aside from the readily differences, citizens of small towns seem to have contrasting personality traits as well. Take the scene of a crowded store during the holidays, for instance. In a busy, crowded big city, a shopper with a cart overflowing with items in the checkout lane would simply be focused on checking out and planning on where they need to go next. However in a small sleepy town, that same shopper may check to see if the person just behind them, with only a couple of items, might want to go ahead. Then, possibly even strike up a conversation with a total stranger. 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Grocery Store - Assignment Example The methods involved in attracting customers, choosing the right location, Inventory and supply chain management, security are major factors which affect the sale of goods. The interaction levels at such places are very high. Spot decisions needs to be taken in times of crisis, customer satisfaction and their feedback is also very important in such businesses. When one observes the functioning of such an organization, is when he realizes the complexity of management. Thus management provided professional training to the employees of the store to deal with customers and their needs. It's not the service alone; they also need to act as consultants to some confused customers. This is when you know that management is a mix of both art and science. Rash behavior of an employee can affect the reputation of the store hence they also are trained on formal behavioral skills. The manager has a major role to play, he is the guiding force and the decision maker in most of the situations, though he is not involved in every activity a report is given to him in the end of the day to analyze on the financial budget statement. Security teams were always alert; there ti mes when they were proactive. There are miscreants who always look out for an opportunity to show their skills at such places. Security cameras are also installed at various corners to record any such activity. The billing machines were also very smart, as the details of the goods are entered; a screen was projected towards the customer for correctness. Hence the observation at one such store gives an idea on Inventory management, financial management, marketing and promotional structures and last but not the least people the management skills. Participation observation at a Grocery store A Review of the Literature April 21, 2009, 10:30 am, New York City Number of men employed: 9 Number of women employed: 2 In total: 11, Time of entry: 9 am, Time of exit: 8 pm. Lunch time: 1 to 1.30 pm. ActivitiesThe total area of the grocery store is 2200 sq. ft, there are four rows of stocks each having 6 shelves. A store room is located at the right corner. The managers' cabin is situated diagonally opposite to the store room. There are two ladies at the billing counters. A man is appointed, who shifts grocery from the store room to the shelves. There is another man who is responsible for fixing price tags to goods. A person was appointed to clean the floors. There are two guards who are stationed at the entrance and exit of the store. The day starts, when the manager briefs them about the routine for the day and the important tasks which are to be done by individuals and in a group. The store is then ready to do business. As customers pour in employees get busy. ConversationsThere are mainly two types of conversations which take place namely Internal & external. Internal conversations mean employees converse with each other on the various activities. If the shelves have enough inventory, if there are enough paper rolls in the billing section etc. External conversations means engaging in talks with customers to help them and provide them service to make

Government Contract Law Assignment Example | Topics and Well Written Essays - 1000 words - 1

Government Contract Law - Assignment Example With this regard, the assignment elaborates on the Federal Acquisition Regulation (FAR), on the change of orders as well as disputes and appeals. The present change of order has been duly analyzed regarding their compliance with the FAR policies. The judicial processes have been detailed to ensure dispute resolution and provide recommendations on the judicial management of the contract. In a government contract, there is a clause that allows the contracting officer to make independent changes in the selected areas within the scope of the legitimate contract. The clauses of the contract if altered must be following the change that is mechanized. However, there is a provision that the contractor is not obliged to continue the performance if the changes cost beyond limitations laid under the law of Limitation of Cost or Limitation of Funds Clause 32.706-2. This clause always attaches unforeseen circumstances with the contract that usually arises after the execution of the contract. The PrintMark Publication has signed a contract for creating an architectural design as well as constructing the same with the US government. However, after the contract was duly legitimized, the government implemented their change order and altered the site, where the construction was duly scheduled. This change implemented by the government has actually increased the cost involved with a c ontract of construction (Department Of Defense, 2005). With the implementation of the change order, the organizational cost for construction has gone up and the contractor i.e. PrintMark Publication has to incur a severe amount of losses if they continue with the contract. However, the organization can duly negotiate with the government about the equitable adjustment of the contract. This would ensure that the contract can be reconstructed in such a manner that the contractor is entitled to have same benefits that he would have enjoyed if the change was not encountered. The contractors must be informing the government contracting officers about the negotiation so that it can be duly implemented.

Wheelchair. Design, Materials and Manufacture Essay

Wheelchair. Design, Materials and Manufacture - Essay Example This equipment is so economical and its operational features are so simple. They are commonly used in nursing homes for evacuating patients from one location to the other. The facilities provided in a wheel chair is in view to care patient and the seats are with large fleets. The design of a wheel chair is in such a way to make it move either by the patient himself or by any supporter by pushing. This provides independence and self sufficiency among disabled persons. Moreover the wheelchair has a remarkable role in the transportation process of disabled persons. Today there are different varieties of wheel chairs and the consumer can choose the apt one according to his convenience and requirements. In order to meet the various requirements of the disabled persons the wheelchairs can be classified as follows. They are manual wheelchairs, light weight wheelchairs, ultra light weight wheelchairs, standard wheelchairs, recliner wheelchairs, sport wheelchairs, heavy duty wheelchairs, tilt wheelchairs and wheelchairs run by artificial power. With respect to their function and facilities the current varieties are far forward than the past ones. Introduction of superfine materials and high class seat cushion technologies in the current varieties of wheelchairs have created remarkable variations from the older ones. Product designing process Comparing to past years experience the process of designing different variety of convenient wheel chairs has taken remarkable improvement. Among these varieties there are wheelchairs which can be operated to climb on stairs and barriers with out any difficulty. A wheelchair having adjustable seat dimension are highly welcomed by the users allover the world. Hence it is high time to think about manufacturing wheelchairs having skilled caring facilities with respect to various environmental conditions. But nowadays people prefer light weight wheelchairs which have advanced adjustments and facilities. Moreover they have started choosing pleasing varieties to have beautiful look. Lighter chairs are highly reliable and provide maximum mobility to the concerned disabled person. Since these wheelchairs are the life long equipments to be used by them it will be better to design varieties which can meet their maximum requirements under highly functional and reliable conditions. To cope up the se requirements the wheelchairs can be designed with respect to environmental friendly techniques so that maximum advantages regarding convenience can be attained. The suitable and easy way to implement this technique is to choose environmental friendly material for manufacturing the wheelchairs. The traditional wheel chairs are often with fixed and large wheel bases. If the seats are to be adjusted according to requirements they can be fixed on proper rail rods with the help of small wheels or any adjustable mechanisms. Another adjustable part of the wheel chair is its seat's frame. One of the side frames can be fixed on to the driving side wheel and the other part of the frame can be fixed to the guide wheel. This mechanical device enables the wheelchair frame to adjust

Education Assessment in Practice Research Paper

Education Assessment in Practice - Research Paper Example In my application of the ongoing assessments in my role as an educator I have decided to ensure that I meet all the five dimensions of a good and quality classroom assessment. In my role as an educator, I plan to explore different technologies available for assessment in assessing my students. This technology and instruments will be helping me to design an assessment that can attempt to reveal what my students are thinking. Various technologies that I am planning to adapt to help me with the assessments are in place. Some of these technologies are use of a response device designed to work with multiple-choice and true-false questions, use of group scribbles, and the use of a network-graphing calculator. I am also planning to be evaluating my applications of this assessment tools to ensure a continued improvement in the way I will be assessing my students. I will be using the simple response device designed to work in multiple-choice and true-false questions with information about my students. If this kind of device is carefully designed and used in a meaningful way, it is believed that answers obtained to these types of questions can give information that can be used to assess students and suggest on the measure that need to be taken to improve their learning (USDE, 2012). I will be posing multiple-choice questions to my class, ask my students to use response devices to answer the questions and then have them discuss those questions with their peers who have different answers. My main objective to using this kind of assessment will be trying to raise the levels of engagement of my students in the learning process. Another type of technology that I am planning to be applying in my assessment as an educator is the use of Group Scribbles. According to USED (2012), this is a more sophisticated system that supports peer instruction by capturing complex responses from students. This could allow my student to contribute in classroom discussions using the enhanced chan ces that the technology offers. If I plan to explain how an idea can be applied, I will be asking groups of my students to explain different ways in which this idea can be applied and share their explanations by placing them on a white board. This will ensure that my students learn by explaining their work to other students and through the feedbacks they receive or provide. I also plan to be using rubrics to express what is expected of them in any kind of assessment I decide to give them. This rubrics will be helping my student to understand how quality is judged in the different undertakings they are assigned to undertake in different fields they are working in. I could also use the rubrics to give assessment scores and ratings that will always be demonstrating the measure they are intended to measure and which will always ensure consistency no matter who is selected to mark the assessments. This will ensure that my students obtain the fairest assessment available thus motivating t hem to enhance their learning. Discuss which element of formative assessment is the most difficult to get right away According to Iron (2007), the four elements of a formative assessment are goals which are clear to students; the feedback which measures the student’s current learning state; formative feedback which can be used as a means for closing the gap between the student’

Describe somene who taught you to read or write and explain this Essay

Describe somene who taught you to read or write and explain this person's significance in your life - Essay Example He exposed me to many narratives, which he liked, and often tasked me to compose narratives and recite to him. My narratives were brief and incoherent but he appreciated them, may be because of his professional background, and motivated me to compose a narrative each time he recited one to me. This became the basis of my writing class as he then tasked me to start writing my compositions and guided me through my mistakes in spelling and word structure. The literature routine perfected my writing potential at the early stage. The approach that my uncle used in teaching me to write identifies his significance in my life. He instilled a culture of creativity in me and demonstrated to me that I can utilize my environment for creativity. While this potential was earlier restricted to narrative composition, I have learnt of its application in real life and utilize it in creativity and innovation for solution of real life problems besides development of artistic work. My uncle therefore empowered me into a social and economic resource in the

Developed in Rome Essay Example for Free

Developed in Rome Essay In the time of the Renaissance, the arts became the primary preoccupation of the people. This is because of the pervading atmosphere of humanism, which promotes the accomplishments of the individual in a gamut of areas. The Renaissance as an era is divided into two parts: the early Renaissance which occurred in Florence and the high Renaissance that developed in Rome. How are these two phases different in terms of artistic styles? How are they alike? In the spirit of humanism that it advances, the art pieces reminiscent of the early Renaissance tried to put into canvass a very realistic depiction of the human form. Everything from proportion to color was considered to achieve the desired effect of realism. According to Noble, â€Å"artists developed new techniques to give paintings a more three-dimensional, life-like quality, and commonly studied human and animal anatomy in efforts to better understand their subjects (6). † These artists enjoyed the patronage of the wealthy, but they were not granted complete artistic freedom. Even though humanism was at its peak, the theme of the arts still leaned towards religion (Noble 6). The artists could only manifest freedom in terms of style and technique. The artistic pioneers of that time included Giotto di Bondone, Massacio, Lorenzo Ghiberti and Donatello. Giotto was the first important artist; it was his study of nature that rendered realistic facial expressions in his paintings (Noble 6), which served as the benchmark for the periods realistic techniques. Massacio is known for his Bible-inspired work, The Tribute Money. Ghiberti was the leading name in architecture; he designed and sculpted bronze doors, which was embellished with scenes from the Bible, for the Baptistry (Noble 6). In terms of sculpture, Donatello was the most important artist. He was responsible for David, â€Å"the first freestanding nude figure sculpted since the Roman era (Noble 6). † â€Å"If the early Renaissance artists paved the way for new techniques and styles in creating arts, it was the High Renaissance artists who mastered these said techniques (Noble 7),† bringing the creation of art to new heights. There might have been an improvement in method, but the subject matter remains the same. The arts of the High Renaissance was still controlled by the Church. However, the works of Leonardo began to manifest a strong leaning toward extreme humanism, which marked the beginning of change (Noble 7). In the High Renaissance, there were three dominant artists: Leonardo da Vinci, Michaelangelo Buonarroti and Raphael. Da Vincis works include the Mona Lisa, The Last Supper and Lady with an Ermine (â€Å"Artcyclopedia† 1). Michaelangelo, on the other hand, is famous for the artwork in the Sistine Chapel (â€Å"Artcyclopedia† 2). Raphael were responsible for such paintings as Saint George and the Dragon, and The Small Cowper Madonna (â€Å"Artcyclopedia† 3). In conclusion, the early Renaissance and High Renaissance only differed in two points: first, they occurred in different locations; second, while the early Renaissance artists created the techniques, the High Renaissance artists perfected them. Moreover, the two phases shared a similarity: the theme of religion despite the humanistic atmosphere. Works Cited Artcyclopedia. 2007. 17 Dec. 2007 http://www. artcyclopedia. com/history/high-renaissance. html. Noble, Matt. Sparknote on Italian Renaissance (1330-1550). 2006. SparkNotes LLC. 17 Dec. 2007 http://www. sparknotes. com/history/european/renaissance1/.

Cross Border Terrorism Sponsored by Pak Army

Cross Border Terrorism Sponsored by Pak Army Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER I INTRODUCTION â€Å"Terrorism is the price of empire. If you do not wish to pay the price, you must give up the empire.† PAT BUCHANAN, Where the Right Went Wrong 1. Six decades after its independence Pakistan continues to search for a durable and credible identity. Pakistans rulers constantly strive to show how Pakistan is equal to, if not better than India in all respects. The complex psychology of the Pakistani ruling elite is dominated by the military. Even after more than three and a half decades, the role in the creation of Bangladesh continues to rankle, with the Pak Army in search of ‘revenge for its humiliating defeat in 1971. The mindset of the Pak Army is a cocktail of arrogance and brashness, at times bordering on cockiness, which becomes even more potent with the addition of a measure of a fundamentalism. 2. The Pak Army sees itself as the dominant power in Pakistan has always enjoyed a larger than life status in socio-political fabric of the country. Democratic regimes have not survived and people represented institutions remain weak in Pakistan. It is difficult to comment authoritatively on whether it is the weak political leadership which is responsible for the democratic failures or the overpowering army which has led to military coups in Pakistan. However, what is certain is this, whenever the position of Pak Army has got threatened they have managed to come back into focus as ‘saviours of the nation by destabilising the Indo-Pak relations. 3. The Pak Armys single minded pursuit of its proxy war for over a decade clearly indicates its long-term game planned to destabilize India by keeping the pot boiling in Kashmir, keeping the Indian Army and other security forces embroiled in counter insurgency operations and, more recently, to extend the area of engagement to other parts of India through wanton acts of terrorism in or around high value targets. In short the Pak Armys strategy is to bleed India through a thousand cuts. For Pak Army it is a win-win situation as there is an element of deniability about its involvement. The Pakistani Generals, are convinced that their bleed-India strategy is a low-cost, high pay off option for Pakistan and, therefore, they are loathe to give it up.[1] What Gives Pak Army Confidence to Wage Covert War? 4. A brutal confidence underlies Pakistans continuing commitment to a strategy of waging war by proxy. This confidence is founded on two pillars. The first is the belief in the Pakistan Armys ability to crush any insurgency if it really decides to do so. This conviction was expressed most clearly in General Pervez Musharrafs statement in 2005 to the insurgents in Balochistan that he would sort them out and that they wont know what hit them. 5. The second source of confidence is Pakistans nuclear weapons. Many in Pakistans army and political leadership believe that these weapons protect Pakistan from the outside world. Indian restraint during both the 1999 Kargil War and during the 2001-2002 OP PARAKRAM after the militant attack on Indias Parliament, is an evidence of the power of Pakistans nuclear card. This was evident again after the Mumbai attacks on 26 Nov 2008.[2] 6. Many—if not all—of the militant groups active in JK have enjoyed the specific patronage of the Pakistani state intelligence and military agencies to prosecute Islamabads interests in India.[3] 7. This dissertation seeks to carry out a study of the conduct of cross border terrorism by Pak Army, estimate its future contours suggest suitable responses. Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER II METHODOLOGY â€Å"Terrorism is the tactic of demanding the impossible, and demanding it at gunpoint.† CHRISTOPHER HITCHENS, Terrorism: Notes Toward a Definition Statement of the Problem 1. To identify analyse role of Pak Army in creating dissonance in Indo- Pak relations by sponsoring cross border terrorism against India. To suggest Indias response to counter this threat. Hypothesis 2. With power now in hands of civilian establishment the Pak Army is finding itself in a vulnerable position and is gradually losing its commanding status. To regain their image as ‘guardian angels of the country they are resorting to destabilising Indo-Pak relations by triggering violent terror incidents. 3. The Pak Army attributes all such incidents as being carried out by ‘non-state actors and ‘freedom fighters, while the truth is that Pak Army along with ISI is directly involved in promoting cross border terrorism. Justification of the Study 4. Pak Army continues unabated in its quest to destabilise India through covert means. The investigations into the recent attacks in Mumbai have also revealed a clear link between the Pak Army and the non- state actors and yet the true propagators (read ISI) of the violence are yet to be brought to book. The more India talks in front of the whole world about it, the more denials come from Pakistan, in the light of these facts, it is essential that India must take concrete steps to counter Pak Army support to terrorists who wage covert war against India also unveil its true colours to the world community. Scope 5. The focus of this study is on Pak Armys use of radical Islamic Fundamentalism terrorism as a military strategy to create dissonance in Indo-Pak relations. The emphasis is on role of Pak Army in the recent Mumbai attacks. The study further analyses the likely contours of future covert war methods and concludes by suggesting various options with India to counter the new emerging threat. The dissertation does not cover Pak Army role in raising the ‘Taliban and its so called ongoing war against terrorism and only concentrate on the events and actions that destabilise Indo- Pak relations. Method of Data Collection 6. The source of this dissertation has been the books, periodicals and articles available in the library of Defence Services Staff College. The web sites of IDSA, USI, and several other Indian dailies on the Internet also have been a great help. The bibliography is appended at the end of the text. Organisation of study 7. It is proposed to study the subject by analysing and evaluating the following aspects:- (a) Understanding terrorism. (b) Cross Border Terrorism: An Alternative Military Strategy. (c) Pak Army Sponsored Cross Border Terrorism. (d) Future Contours Suggested Responses. (e) Conclusion. Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER III UNDERSTANDING TERRORISM â€Å"In an interconnected world, the defeat of international terrorism and most importantly, the prevention of these terrorist organizations from obtaining weapons of mass destruction will require the cooperation of many nations. We must always reserve the right to strike unilaterally at terrorists wherever they may exist. But we should know that our success in doing so is enhanced by engaging our allies so that we receive the crucial diplomatic, military, intelligence, and financial support that can lighten our load and add legitimacy to our actions. This means talking to our friends and, at times, even our enemies.† BARACK OBAMA Defining Terrorism 1. Virtually any especially abhorrent act of violence perceived as directed against society—whether it involves the activities of antigovernment dissidents or governments themselves, organized-crime syndicates, common criminals, rioting mobs, people engaged in militant protest, individual psychotics, or lone extortionists—is often labeled â€Å"terrorism.† 2. Terrorism, in the most widely accepted contemporary usage of the term, is fundamentally and inherently political. It is also ineluctably about power: the pursuit of power, the acquisition of power, and the use of power to achieve political change. Terrorism is thus violence—or, equally important, the threat of violence—used and directed in pursuit of, or in service of, apolitical aim.[4] State Sponsored Terrorism 3. One of the most authoritative studies by Daniel Byman, a leading scholar on terrorism defines state sponsorship as â€Å"a governments intentional assistance to a terrorist group to help it use violence, bolster its political activities, or sustain [its] organization.† [5]His research identifies six areas in which states provide support to terrorists—training and operations; money, arms, and logistics; diplomatic backing; organizational assistance; ideological direction; and (perhaps most importantly) sanctuary.[6] Byman argues that terrorist groups which receive significant amounts of state support are far more difficult to counter and destroy than those which do not.[7] 4. However, it is also important to note that there are several types of state sponsorship of terrorism: â€Å"strong supporters† are states with both the desire and the capacity to support terrorist groups; â€Å"weak supporters† are those with the desire but not the capacity to offer significant support; â€Å"lukewarm supporters† are those that offer rhetorical but little actual tangible support; and â€Å"antagonistic supporters† are those that actually seek to control or even weaken the terrorist groups they appear to be supporting. Another category Byman examines is passive support, whereby states â€Å"deliberately turn a blind eye to the activities of terrorists in their countries but do not provide direct assistance.† [8] A states tolerance of or passivity toward a terrorist groups activities, he argues, is often as important to their success as any deliberate assistance they receive. Open and active state sponsorship of terrorism is rare, and it has decreased since the end of the Cold War. Yet this lack of open support does not necessarily diminish the important role that states play in fostering or hindering terrorism. 5. At times, the greatest contribution a state can make to a terrorists cause is by not policing a border, turning a blind eye to fundraising, or even Combating the Sources and Facilitators of Terrorism tolerating terrorist efforts to build their organizations, conduct operations, and survive. Passive support for terrorism can contribute to a terrorist groups success in several ways. It often allows a group to raise money, acquire arms, plan operations, and enjoy a respite from the counterattacks of the government it opposes. Passive support may also involve spreading an ideology that assists a terrorist group in its efforts to recruit new members.[9] Benefits to State Sponsored Terrorists 6. For the terrorist, the benefits of state sponsorship were even greater. Such a relationship appreciably enhanced the capabilities and operational capacity of otherwise limited terrorist groups, placing at their disposal the resources of an established nation-states entire diplomatic, military, and intelligence apparatus and thus greatly facilitating planning and intelligence. The logistical support provided by states assured the terrorists of otherwise unobtainable luxuries, such as the use of diplomatic pouches for the transport of weapons and explosives, false identification in the form of genuine passports, and the use of embassies and other diplomatic facilities as safe houses or staging bases. State sponsorship also afforded terrorists greater training opportunities; thus some groups were transformed into entities more akin to elite commando units than to the stereotypical conspiratorial cell of anarchists wielding Molotov cocktails or radicals manufacturing crude pipe bombs. Finally, terrorists were often paid handsomely for their services, turning hitherto financially destitute entities into well-endowed organizations with investment profiles and healthy balance sheets.[10] The Four Stages of Terrorism 7. The terrorist tactics though essentially focuses on creating terror through violence has evolved over a period of time. 1980s-1990s: Era of backyard Islamicist Struggles 8. During this time the focus was on overthrowing specific regions, like the non democratic governments of Algeria and Egypt, or fighting countries seen to be occupying Muslim lands like Israel and India. (a) Spectacular Example. Assassination of Anwar Sadat of Egypt in 1981 was probably the most famous terrorist act of this period. (b) Preferred Tactics. Mimicking the methods of secular left wing and nationalist terrorist groups like the Palestinian Fatah or the Irish Republican Army. This generally involved hijacking of aircraft, assassination of political s and kidnapping of foreigners. Few of these attacks had much of a ripple outside the region that they took place. These acts were largely seen as a local law and order issue rather than an international menace. 1990s- 2001: Rise of Spectacular Jihad 9. This period saw the arrival of Osama Bin Laden and the Egyptian Ayman al Zawahri on the scene. These men argued that local islamicist struggles need to combine force so they can replicate soviet defeat in Afghanistan. (a) Successful Attack. 9/11, the worlds most lethal and media-friendly terrorist attack. It was preceded by attacks on US warships and embassies in Africa and Persian gulf. (b) Preferred Tactics. 9/11 stamps suicide bombing as the preferred jihadi tactic but also raised the bar on how spectacular the attack must be From roughly 2002 onwards there was a huge surge in suicide bombings across the world, spreading into places like Kashmir, Chechnya and so on where they had previously been rare. 2001-2007: Maturing of Local Guerrilla Terrorism 10. Losing its Afghan base al Qaeda turned to local jihad affiliates to keep up the momentum of attack. Transit attacks in Madrid and London took place. But US invasion of Iraq and Afghanistan provided a new outlet for jihadi wrath. Abu Musab al Zarqawi replaced Bin Laden as the terrorist of the moment. (a) Successful Attack. The entire campaign against US military in Iraq which soured the US public to the war and lead to a consensus on the need for the US to withdraw from Iraq as soon as possible. (b) Preferred Tactics. In Europe it was bomb in the bus or terror on the train. In Iraq it is a more straight forward guerilla style war with roadside explosives devices, suicide bombers. Zarqawi introduced shocking media footage such as the execution video of Daniel Pearl. 2008: Possible start of Global Terrorism 11. Suicide Bombing hurts al Qaeda Sentiment among mainstream Islam. Surveys have shown declining support for such tactics since 2005 onwards. Further it is getting increasingly ineffective against new security methods and in terms of winning media attention. (a) Tactical Experiment. The use of small bands of suicide fighters, trained like professional soldiers, who simultaneously strike local and global targets. Mumbai is now being seen as the most intricately coordinated and most successful islamicist terrorist attack since 9/11. This could well be the dawn of new era of such terrorism. [11] Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER IV CROSS BORDER TERRORISM : AN ALTERNATIVE MILITARY STRATEGY â€Å"In the South Asian context, talks on conventional military confidence building cannot be divorced from terrorism. The route of the escalatory process is militancy.† BHARAT KARNAD 1. The Pakistani military leadership believes the terrorist threat is an incentive to India to come to the negotiating table; without it India will simply ignore Pakistans calls for a resolution of the issue. Terrorism also poisons Hindu-Muslim relations and weakens the foundations of Indias secularism. It affects the image of India as an investment destination, which would explain the terror attacks in cities like Bangalore and Mumbai. It panders to extremist lobbies within Pakistan whose declared ambition is to break up India from within. The repeated attacks on Hindu religious places is intended to provoke a communal backlash against the Muslims, in the expectation that this will engender greater Muslim alienation, leading eventually to the tearing up of the social fabric of India.[12] 2. Terrorism has become an institution in Pakistan and has widespread support. Its army and intelligence services consider it a strategic weapon. After each terrorist strike, the Pakistani government cleverly dodges international pressure by temporarily clamping down on terrorism until the focus shifts away. It never completely eliminates this menace.[13] 3. Post Mumbai, Ironic as it may seem the Pakistan Army has gained in an important way. The crisis has gone some way in building bridges between the militant groups and the Pakistan military. Their historical relationship, which had broken down in several ways, is on the mend. Taliban groups in the tribal areas battling Pakistani security forces offered ceasefires so that troops could devote all their energies on what was built up as a coming war on the eastern front. They even offered to fight alongside the troops against India. [14] Cost to Pakistan to Support Cross Border Terrorism 4. Pakistan officially accepts that it is providing diplomatic, political and moral support to Kashmiri militants. However, it is now internationally accepted that the Pakistan army and the ISI Directorate are providing military training, weapons, military equipment, ammunition and explosives to the militants, besides financial support. The ISI spends approximately Rs 5 Crore per month for its proxy war campaign. The Pakistan Army also actively assists the militants to infiltrate into jK by engaging Indian posts on the LC along the routes of infiltration with artillery and small arms fireand provides a large number of officers to lead the militants.[15] The Pak ‘Terror Machine 5. How did the present day terror infrastructure originate? The answer this question can be found in the Soviet invasion of Afghanistan in 1979. The invasion provided Pakistan Army an opportunity to reconstruct its professional image which had considerably tarnished as a consequence of 1971 war and dismemberment of Pakistan. In 1981, when the Reagan administration agreed to support the Afghan Mujahideen and US military assistance to Pakistan began to filter in. It helped the military to build its professional image. The planning and coordination of Afghan resistance movement was done in close collaboration with US intelligence agencies and the Inter Service Intelligence(ISI) of Pakistan. While supporting, training and organizing the various Afghan Guerrilla Bands the ISI built its reputation and skills as a professional organisation. In the process, the ISI enhanced its intelligence and surveillance capabilities. The Zia regime at that time also availed this opportunity to embark on a program to modernize the armed forces of Pakistan. The regime was able to strike a deal with Reagan administration for the procurement of sophisticated F-16 fighter planes. It was also able to procure some artillery and armoured equipment for the army. Consequently the Afghan war and US military aid did facilitate the moderenisation of the Pakistan military. This helped the Military to bolster its professional image.[16] 6. Neither the Americans, stung and exhausted after the wars of the CIA and the armed forces in Vietnam, Laos and Cambodia, nor the Saudis, who hate to get involved in fighting anywhere, wanted to commit their own forces. So they let Pakistans ISI do the donkey work. The ISI, controlled directly by President Zia al-Haq and influenced on the ground by affluent Arab organizations close to the Muslim Brothers and Pakistans Islamist groups, ran the war against the Russians. Many billions of dollars to fund it came from the United States, the Saudi treasury, and finally as the conflict was winding down, from the resources of financiers like the Saudi construction tycoon Osama bin Laden, who effectively privatized global terrorism in the 1990s.[17] 7. The fundamentalist groups which were trained initially for Afghan war were indoctrinated to believe that it is their religious duty to kill unbelievers and their supporters wherever they are found. Funded by the ISI and religion- based political parties of Pakistan, they are armed with sophisticated weaponery.[18] It is well known that the ISI had surreptitiously siphoned off up to 40-50 % of the weapons supplied by the CIA for use by the Afghan Mujahideen against Russia. These weapons have eventually found their way into JK.[19] It is not as well known that towards the end of Afghan resistance against Russian occupation, ‘mullah warlords had taken over the cultivation and processing of poppy along the Pakistan-Afghanistan border. Since then, the illicit trade in narcotics has been generating hefty profits. These are being ploughed into fuelling terrorism in JK and in supporting the Taliban in Afghanistan. This vicious politician-mulla-ISI-army racket suited the ruling elite in Pakistan and is a major cause of continuing war in Afghanistan and terrorism in Kashmir.[20] 8. The sketch below shows the movement of CIA/ISI trained guerrillas out of Afghanistan after driving out Soviet Union from Afghanistan. Islamic Fundamentalism Pak Army 9. From the early days, the secular apolitical army that the British left behind deviated in Pakistan from the basic tenets of professionalism and began to intervene in politics and governance aided by the bureaucratic class( later to be simply used by the army) and the incompetence of the political elites. The army defined the parameters of national policy and the means by which it was to be pursued even when it was not in direct control of state. It also began from the very beginning to rely on clandestine covert war, executed through multiple means and tactics, while following up with traditional professional military forces for a coup de grace when it wanted.[21] 10. When General Zia ul Haq came to power he did not take too long to reveal his religious political outlook. He was brisk in replacing the Jinnahs motto of Pakistan Army- Unity, Faith Discipline with Faith, Piety Holy War (Jihad).[22] In his opening speech, after the take over he, extended two reasons for military intervention. Firstly the country was on threshold of a civil war. Secondly Islam had not been effectively put into practice in Pakistani society.[23] Zia ul Haq after assuming power lent his support and affinity with the Pakistan National Alliance (PNA) protest movement. PNA was an alliance of nine parties to throw out Zulfikar Ali Bhutto and they promised to bring back Islamic laws. â€Å"I must say that the spirit of Islam, demonstrated during the recent movement was commendable. It proves that Pakistan, which was created in the name of Islam, will continue to survive only if it sticks to Islam. That is why I consider the introduction of Islamic system as an essentia l pre-requisite for the country.†[24] 11. The army has seen itself for the last three decades or more as the defender of not only of the physical frontiers but also of ideological frontiers of the state, conceptualized on the foundations of exclusivity of religion. It has inevitably been increasingly ‘islamised which at one level enhanced internal cohesion and motivation to fight and at another created a spectre of potential discord within the army.[25] 12. In 1976, the Pakistan army had amended its secular motto to include the term ‘jihad in it. All the eight groups of irregular resistance fighters that it equipped and trained for the war in Afghanistan during the 1980s were called ‘Mujahideen- those who carry out jihad.[26] The military-dominated state has used jihad, which is intrinsic to faith and ethics in Islam, to advance its strategic, economic, and political ends. Such a shrewd strategic vision, backed by political denial and policies of economic exclusion, violates elementary Islamic principles of equity and justice. The army has capitalised on the jehadi industry to further ensconce itself in the power structure.[27] Role of ISI 13. The Inter Services Intelligence(ISI) of Pakistan and the inter services public relations are officially under the ministry of defence. In reality, the ISI functions under direct control of Pak Army and its Chief is answerable to the military leaders. The ISI does not report to the civilian authority, even when there is a democratically elected government. The ISI enjoys a unique status in the infrastructure of the Pakistani establishment. It is not an ordinary intelligence apparatus of the state. It has emerged as a fulcrum of Islamic jihadist operations of the state of Pakistan and jihadist tanzeems created by the state. 14. The ISI devoted two full wings of its establishment for carrying out operations inside India. The joint intelligence miscellaneous (JIM) and the joint intelligence north (JIN) are reported to be responsible for directing the Indian operations of the ISI. Whole other wings of the ISI are known to play supportive roles. The JIX often came to the notice of the Indian agencies for coordinating special operations inside India. The Pakistan IB, unlike Indian IB, is not totally barred from conducting operations in selected foreign countries. For Indian targets they are allowed to conduct certain shallow penetration trans-border operations as well as assigned high commission based operations.[28] The Lashkar-e-Taiba (LeT) and ISI 15. The Lashkars nexus with the ISI is well established. â€Å"LeT had worked in close coordination with the ISI, which also provided support to launch the militants across the border† Dr. Khalid Mehmood Soomroo of the Jamiat-e-Islam asks: â€Å"Is there a single militant training centre in Pakistan which can operate without the consent of the Pakistan army?† The are numerous training camps in Pakistan-occupied Kashmir (POK). Zahab and Roy mention three, the principal one being Um al-Qura at Muzaffarabad. Five hundred mujahids are trained here every month.[29] Moreover, India has been victimized by a host of militant groups based in and supported by Pakistan for decades. With the possible exception of the militant groups associated with Jamaat-Islami, the so-called Kashmir tanzeems have been raised, nurtured, assisted, and trained by the ISI.[30] As such, these groups are not strictly non state actors but rather extensions of the state intelligence apparatus, albeit wit h some degree of plausible deniability. 16. Groups that were previously limited to the Kashmir expanded into the Indian hinterland following the 1998 nuclear tests. Notable attacks included the 2000 LeT attack on the Red Fort, the 2001 Jaish-e-Muhamad (JeM) attack on the Indian parliament, the 2006 LeT Mumbai rail system attack, and numerous other attacks by LeT or JeM throughout India. In addition, in 2000, LeT introduced the fidayeen (high-risk suicide commando) operation in Kashmir and has since used it throughout India.[31] 17. LeT is still considered to be an important asset in Pakistans quest to secure its regional objectives and because it, unlike the proliferating morass of Deobandi groups, has never targeted the state.[32] Civil-Military Power Relationship in Pakistan 18. As a ruler Zia left Pakistan turbulent and rife with sectarian and ethnic tensions. Political parties were weak and divided. In such a divided polity the military was not merely the hegemonic, but also the only institution that had grown, expanded and emerged as the arbitrator in defining power relations among various contending power groups. Having established its hegemony in political system the military was poised to search for redefining its role in the post Zia era.[33] Military Hegemony has emerged as the most dominant and durable character of Pakistans political system. Hegemony was achieved through four process (a) Promotion of the â€Å"corporate interests† of military. (b) Political exclusion i.e. exclusion of political leaders, political parties and urban middle class. (c) Political control, i.e. control of the press and labour. (d) Political inclusion, i.e. co-optation and consolidation of bureaucratic elites, financial industrial groups and feudal classes.[34] Govt and Pak Army Today 19.Fast forward to the present and today as a result of the tumultuous political developments in Pakistan during 2007-08 leading to the historic 2008 elections, the Pak Army is under pressure but has not lost its power. It may go back to its old ways when the situation calms down. Pakistan is still far from having a genuinely democratic government that wields effective power. A tug-of-war is underway. It is not ruled out that spate of terrorist acts and destructive activities against india are intended to show up the ineffectiveness of the Pakistans civilian government and create suspicions in India about its bonafides, and the way for the Pak Army to reassert itself openly in Pakistans political arena[35] 20. While Musharrafs departure has reduced the visible level of involvement of the Pakistan Army in affairs of state, it has by no means reduced its stature as a major domestic force and one of the key pillars of governance in the country. It can safely be expected that the weakness and instability of the political coalition will bestow greater significance on the domestic role of the Pakistan Army and could even see the coalition in Islamabad acceding to all â€Å"requests† of the Pakistan Army. The chance that any reluctance on the part of the elected politicians to digress from the path desired by the Pakistan Army may lead to yet another military coup in Pakistan is likely to prominently in the thinking of the elected leaders and could well force them to acquiesce to the desires of the Pakistan Army. In some ways, this would highlight a paradox that has continued to in Pakistani politics the departure of a strong albeit despised military ruler from the corridors of power has once again presented the all-powerful Pakistan Army with yet another opportunity for calling the shots in Islamabad. The power and influence that the Pakistan Army continues to enjoy became fairly evident when Prime Minister Gillanis government had to revoke an order placing the powerful ISI under the Ministry of Interior within six hours of its issuance, primarily due to pressure from the Army.[36] Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER V PAK ARMY SPONSORED CROSS BORDER TERRORISM â€Å"The terrible thing about terrorism is that ultimately it destroys those who practise it. Slowly but surely, as they try to extinguish life in others, the light within them dies.† TERRY WAITE, London Guardian, Feb. 20, 1992 1. The Pak Army is now inextricably involved in exporting terrorism to India. A cosy relationship has developed at the functional level between the local army commanders, the drug mafia, the politicians, the bureaucrats, the police, and the mullahs who supply young recruits as cannon fodder for the so called jihad in Kashmir. It suits everyones vested interests to keep the pot boiling. The vigorous advocacy of jihad provides a share in spoils of the narcotics booty. Power and pelf make a potent cocktail; this heady mixture is an extremely motivating incentive for institutionalizing the perpetuation of a proxy war against India. Hence, no matter what incentives India offers, there is likely to be no let up in the ongoing hostilities. [37] Pak Sponsored Terrorism in JK 2. The ISI had initiated the Proxy war in JK in 1989-90. This campaign can be categorized in three main phases (a) The Azadi Phase (1990-1995). The ISI had raised, tr Cross Border Terrorism Sponsored by Pak Army Cross Border Terrorism Sponsored by Pak Army Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER I INTRODUCTION â€Å"Terrorism is the price of empire. If you do not wish to pay the price, you must give up the empire.† PAT BUCHANAN, Where the Right Went Wrong 1. Six decades after its independence Pakistan continues to search for a durable and credible identity. Pakistans rulers constantly strive to show how Pakistan is equal to, if not better than India in all respects. The complex psychology of the Pakistani ruling elite is dominated by the military. Even after more than three and a half decades, the role in the creation of Bangladesh continues to rankle, with the Pak Army in search of ‘revenge for its humiliating defeat in 1971. The mindset of the Pak Army is a cocktail of arrogance and brashness, at times bordering on cockiness, which becomes even more potent with the addition of a measure of a fundamentalism. 2. The Pak Army sees itself as the dominant power in Pakistan has always enjoyed a larger than life status in socio-political fabric of the country. Democratic regimes have not survived and people represented institutions remain weak in Pakistan. It is difficult to comment authoritatively on whether it is the weak political leadership which is responsible for the democratic failures or the overpowering army which has led to military coups in Pakistan. However, what is certain is this, whenever the position of Pak Army has got threatened they have managed to come back into focus as ‘saviours of the nation by destabilising the Indo-Pak relations. 3. The Pak Armys single minded pursuit of its proxy war for over a decade clearly indicates its long-term game planned to destabilize India by keeping the pot boiling in Kashmir, keeping the Indian Army and other security forces embroiled in counter insurgency operations and, more recently, to extend the area of engagement to other parts of India through wanton acts of terrorism in or around high value targets. In short the Pak Armys strategy is to bleed India through a thousand cuts. For Pak Army it is a win-win situation as there is an element of deniability about its involvement. The Pakistani Generals, are convinced that their bleed-India strategy is a low-cost, high pay off option for Pakistan and, therefore, they are loathe to give it up.[1] What Gives Pak Army Confidence to Wage Covert War? 4. A brutal confidence underlies Pakistans continuing commitment to a strategy of waging war by proxy. This confidence is founded on two pillars. The first is the belief in the Pakistan Armys ability to crush any insurgency if it really decides to do so. This conviction was expressed most clearly in General Pervez Musharrafs statement in 2005 to the insurgents in Balochistan that he would sort them out and that they wont know what hit them. 5. The second source of confidence is Pakistans nuclear weapons. Many in Pakistans army and political leadership believe that these weapons protect Pakistan from the outside world. Indian restraint during both the 1999 Kargil War and during the 2001-2002 OP PARAKRAM after the militant attack on Indias Parliament, is an evidence of the power of Pakistans nuclear card. This was evident again after the Mumbai attacks on 26 Nov 2008.[2] 6. Many—if not all—of the militant groups active in JK have enjoyed the specific patronage of the Pakistani state intelligence and military agencies to prosecute Islamabads interests in India.[3] 7. This dissertation seeks to carry out a study of the conduct of cross border terrorism by Pak Army, estimate its future contours suggest suitable responses. Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER II METHODOLOGY â€Å"Terrorism is the tactic of demanding the impossible, and demanding it at gunpoint.† CHRISTOPHER HITCHENS, Terrorism: Notes Toward a Definition Statement of the Problem 1. To identify analyse role of Pak Army in creating dissonance in Indo- Pak relations by sponsoring cross border terrorism against India. To suggest Indias response to counter this threat. Hypothesis 2. With power now in hands of civilian establishment the Pak Army is finding itself in a vulnerable position and is gradually losing its commanding status. To regain their image as ‘guardian angels of the country they are resorting to destabilising Indo-Pak relations by triggering violent terror incidents. 3. The Pak Army attributes all such incidents as being carried out by ‘non-state actors and ‘freedom fighters, while the truth is that Pak Army along with ISI is directly involved in promoting cross border terrorism. Justification of the Study 4. Pak Army continues unabated in its quest to destabilise India through covert means. The investigations into the recent attacks in Mumbai have also revealed a clear link between the Pak Army and the non- state actors and yet the true propagators (read ISI) of the violence are yet to be brought to book. The more India talks in front of the whole world about it, the more denials come from Pakistan, in the light of these facts, it is essential that India must take concrete steps to counter Pak Army support to terrorists who wage covert war against India also unveil its true colours to the world community. Scope 5. The focus of this study is on Pak Armys use of radical Islamic Fundamentalism terrorism as a military strategy to create dissonance in Indo-Pak relations. The emphasis is on role of Pak Army in the recent Mumbai attacks. The study further analyses the likely contours of future covert war methods and concludes by suggesting various options with India to counter the new emerging threat. The dissertation does not cover Pak Army role in raising the ‘Taliban and its so called ongoing war against terrorism and only concentrate on the events and actions that destabilise Indo- Pak relations. Method of Data Collection 6. The source of this dissertation has been the books, periodicals and articles available in the library of Defence Services Staff College. The web sites of IDSA, USI, and several other Indian dailies on the Internet also have been a great help. The bibliography is appended at the end of the text. Organisation of study 7. It is proposed to study the subject by analysing and evaluating the following aspects:- (a) Understanding terrorism. (b) Cross Border Terrorism: An Alternative Military Strategy. (c) Pak Army Sponsored Cross Border Terrorism. (d) Future Contours Suggested Responses. (e) Conclusion. Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER III UNDERSTANDING TERRORISM â€Å"In an interconnected world, the defeat of international terrorism and most importantly, the prevention of these terrorist organizations from obtaining weapons of mass destruction will require the cooperation of many nations. We must always reserve the right to strike unilaterally at terrorists wherever they may exist. But we should know that our success in doing so is enhanced by engaging our allies so that we receive the crucial diplomatic, military, intelligence, and financial support that can lighten our load and add legitimacy to our actions. This means talking to our friends and, at times, even our enemies.† BARACK OBAMA Defining Terrorism 1. Virtually any especially abhorrent act of violence perceived as directed against society—whether it involves the activities of antigovernment dissidents or governments themselves, organized-crime syndicates, common criminals, rioting mobs, people engaged in militant protest, individual psychotics, or lone extortionists—is often labeled â€Å"terrorism.† 2. Terrorism, in the most widely accepted contemporary usage of the term, is fundamentally and inherently political. It is also ineluctably about power: the pursuit of power, the acquisition of power, and the use of power to achieve political change. Terrorism is thus violence—or, equally important, the threat of violence—used and directed in pursuit of, or in service of, apolitical aim.[4] State Sponsored Terrorism 3. One of the most authoritative studies by Daniel Byman, a leading scholar on terrorism defines state sponsorship as â€Å"a governments intentional assistance to a terrorist group to help it use violence, bolster its political activities, or sustain [its] organization.† [5]His research identifies six areas in which states provide support to terrorists—training and operations; money, arms, and logistics; diplomatic backing; organizational assistance; ideological direction; and (perhaps most importantly) sanctuary.[6] Byman argues that terrorist groups which receive significant amounts of state support are far more difficult to counter and destroy than those which do not.[7] 4. However, it is also important to note that there are several types of state sponsorship of terrorism: â€Å"strong supporters† are states with both the desire and the capacity to support terrorist groups; â€Å"weak supporters† are those with the desire but not the capacity to offer significant support; â€Å"lukewarm supporters† are those that offer rhetorical but little actual tangible support; and â€Å"antagonistic supporters† are those that actually seek to control or even weaken the terrorist groups they appear to be supporting. Another category Byman examines is passive support, whereby states â€Å"deliberately turn a blind eye to the activities of terrorists in their countries but do not provide direct assistance.† [8] A states tolerance of or passivity toward a terrorist groups activities, he argues, is often as important to their success as any deliberate assistance they receive. Open and active state sponsorship of terrorism is rare, and it has decreased since the end of the Cold War. Yet this lack of open support does not necessarily diminish the important role that states play in fostering or hindering terrorism. 5. At times, the greatest contribution a state can make to a terrorists cause is by not policing a border, turning a blind eye to fundraising, or even Combating the Sources and Facilitators of Terrorism tolerating terrorist efforts to build their organizations, conduct operations, and survive. Passive support for terrorism can contribute to a terrorist groups success in several ways. It often allows a group to raise money, acquire arms, plan operations, and enjoy a respite from the counterattacks of the government it opposes. Passive support may also involve spreading an ideology that assists a terrorist group in its efforts to recruit new members.[9] Benefits to State Sponsored Terrorists 6. For the terrorist, the benefits of state sponsorship were even greater. Such a relationship appreciably enhanced the capabilities and operational capacity of otherwise limited terrorist groups, placing at their disposal the resources of an established nation-states entire diplomatic, military, and intelligence apparatus and thus greatly facilitating planning and intelligence. The logistical support provided by states assured the terrorists of otherwise unobtainable luxuries, such as the use of diplomatic pouches for the transport of weapons and explosives, false identification in the form of genuine passports, and the use of embassies and other diplomatic facilities as safe houses or staging bases. State sponsorship also afforded terrorists greater training opportunities; thus some groups were transformed into entities more akin to elite commando units than to the stereotypical conspiratorial cell of anarchists wielding Molotov cocktails or radicals manufacturing crude pipe bombs. Finally, terrorists were often paid handsomely for their services, turning hitherto financially destitute entities into well-endowed organizations with investment profiles and healthy balance sheets.[10] The Four Stages of Terrorism 7. The terrorist tactics though essentially focuses on creating terror through violence has evolved over a period of time. 1980s-1990s: Era of backyard Islamicist Struggles 8. During this time the focus was on overthrowing specific regions, like the non democratic governments of Algeria and Egypt, or fighting countries seen to be occupying Muslim lands like Israel and India. (a) Spectacular Example. Assassination of Anwar Sadat of Egypt in 1981 was probably the most famous terrorist act of this period. (b) Preferred Tactics. Mimicking the methods of secular left wing and nationalist terrorist groups like the Palestinian Fatah or the Irish Republican Army. This generally involved hijacking of aircraft, assassination of political s and kidnapping of foreigners. Few of these attacks had much of a ripple outside the region that they took place. These acts were largely seen as a local law and order issue rather than an international menace. 1990s- 2001: Rise of Spectacular Jihad 9. This period saw the arrival of Osama Bin Laden and the Egyptian Ayman al Zawahri on the scene. These men argued that local islamicist struggles need to combine force so they can replicate soviet defeat in Afghanistan. (a) Successful Attack. 9/11, the worlds most lethal and media-friendly terrorist attack. It was preceded by attacks on US warships and embassies in Africa and Persian gulf. (b) Preferred Tactics. 9/11 stamps suicide bombing as the preferred jihadi tactic but also raised the bar on how spectacular the attack must be From roughly 2002 onwards there was a huge surge in suicide bombings across the world, spreading into places like Kashmir, Chechnya and so on where they had previously been rare. 2001-2007: Maturing of Local Guerrilla Terrorism 10. Losing its Afghan base al Qaeda turned to local jihad affiliates to keep up the momentum of attack. Transit attacks in Madrid and London took place. But US invasion of Iraq and Afghanistan provided a new outlet for jihadi wrath. Abu Musab al Zarqawi replaced Bin Laden as the terrorist of the moment. (a) Successful Attack. The entire campaign against US military in Iraq which soured the US public to the war and lead to a consensus on the need for the US to withdraw from Iraq as soon as possible. (b) Preferred Tactics. In Europe it was bomb in the bus or terror on the train. In Iraq it is a more straight forward guerilla style war with roadside explosives devices, suicide bombers. Zarqawi introduced shocking media footage such as the execution video of Daniel Pearl. 2008: Possible start of Global Terrorism 11. Suicide Bombing hurts al Qaeda Sentiment among mainstream Islam. Surveys have shown declining support for such tactics since 2005 onwards. Further it is getting increasingly ineffective against new security methods and in terms of winning media attention. (a) Tactical Experiment. The use of small bands of suicide fighters, trained like professional soldiers, who simultaneously strike local and global targets. Mumbai is now being seen as the most intricately coordinated and most successful islamicist terrorist attack since 9/11. This could well be the dawn of new era of such terrorism. [11] Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER IV CROSS BORDER TERRORISM : AN ALTERNATIVE MILITARY STRATEGY â€Å"In the South Asian context, talks on conventional military confidence building cannot be divorced from terrorism. The route of the escalatory process is militancy.† BHARAT KARNAD 1. The Pakistani military leadership believes the terrorist threat is an incentive to India to come to the negotiating table; without it India will simply ignore Pakistans calls for a resolution of the issue. Terrorism also poisons Hindu-Muslim relations and weakens the foundations of Indias secularism. It affects the image of India as an investment destination, which would explain the terror attacks in cities like Bangalore and Mumbai. It panders to extremist lobbies within Pakistan whose declared ambition is to break up India from within. The repeated attacks on Hindu religious places is intended to provoke a communal backlash against the Muslims, in the expectation that this will engender greater Muslim alienation, leading eventually to the tearing up of the social fabric of India.[12] 2. Terrorism has become an institution in Pakistan and has widespread support. Its army and intelligence services consider it a strategic weapon. After each terrorist strike, the Pakistani government cleverly dodges international pressure by temporarily clamping down on terrorism until the focus shifts away. It never completely eliminates this menace.[13] 3. Post Mumbai, Ironic as it may seem the Pakistan Army has gained in an important way. The crisis has gone some way in building bridges between the militant groups and the Pakistan military. Their historical relationship, which had broken down in several ways, is on the mend. Taliban groups in the tribal areas battling Pakistani security forces offered ceasefires so that troops could devote all their energies on what was built up as a coming war on the eastern front. They even offered to fight alongside the troops against India. [14] Cost to Pakistan to Support Cross Border Terrorism 4. Pakistan officially accepts that it is providing diplomatic, political and moral support to Kashmiri militants. However, it is now internationally accepted that the Pakistan army and the ISI Directorate are providing military training, weapons, military equipment, ammunition and explosives to the militants, besides financial support. The ISI spends approximately Rs 5 Crore per month for its proxy war campaign. The Pakistan Army also actively assists the militants to infiltrate into jK by engaging Indian posts on the LC along the routes of infiltration with artillery and small arms fireand provides a large number of officers to lead the militants.[15] The Pak ‘Terror Machine 5. How did the present day terror infrastructure originate? The answer this question can be found in the Soviet invasion of Afghanistan in 1979. The invasion provided Pakistan Army an opportunity to reconstruct its professional image which had considerably tarnished as a consequence of 1971 war and dismemberment of Pakistan. In 1981, when the Reagan administration agreed to support the Afghan Mujahideen and US military assistance to Pakistan began to filter in. It helped the military to build its professional image. The planning and coordination of Afghan resistance movement was done in close collaboration with US intelligence agencies and the Inter Service Intelligence(ISI) of Pakistan. While supporting, training and organizing the various Afghan Guerrilla Bands the ISI built its reputation and skills as a professional organisation. In the process, the ISI enhanced its intelligence and surveillance capabilities. The Zia regime at that time also availed this opportunity to embark on a program to modernize the armed forces of Pakistan. The regime was able to strike a deal with Reagan administration for the procurement of sophisticated F-16 fighter planes. It was also able to procure some artillery and armoured equipment for the army. Consequently the Afghan war and US military aid did facilitate the moderenisation of the Pakistan military. This helped the Military to bolster its professional image.[16] 6. Neither the Americans, stung and exhausted after the wars of the CIA and the armed forces in Vietnam, Laos and Cambodia, nor the Saudis, who hate to get involved in fighting anywhere, wanted to commit their own forces. So they let Pakistans ISI do the donkey work. The ISI, controlled directly by President Zia al-Haq and influenced on the ground by affluent Arab organizations close to the Muslim Brothers and Pakistans Islamist groups, ran the war against the Russians. Many billions of dollars to fund it came from the United States, the Saudi treasury, and finally as the conflict was winding down, from the resources of financiers like the Saudi construction tycoon Osama bin Laden, who effectively privatized global terrorism in the 1990s.[17] 7. The fundamentalist groups which were trained initially for Afghan war were indoctrinated to believe that it is their religious duty to kill unbelievers and their supporters wherever they are found. Funded by the ISI and religion- based political parties of Pakistan, they are armed with sophisticated weaponery.[18] It is well known that the ISI had surreptitiously siphoned off up to 40-50 % of the weapons supplied by the CIA for use by the Afghan Mujahideen against Russia. These weapons have eventually found their way into JK.[19] It is not as well known that towards the end of Afghan resistance against Russian occupation, ‘mullah warlords had taken over the cultivation and processing of poppy along the Pakistan-Afghanistan border. Since then, the illicit trade in narcotics has been generating hefty profits. These are being ploughed into fuelling terrorism in JK and in supporting the Taliban in Afghanistan. This vicious politician-mulla-ISI-army racket suited the ruling elite in Pakistan and is a major cause of continuing war in Afghanistan and terrorism in Kashmir.[20] 8. The sketch below shows the movement of CIA/ISI trained guerrillas out of Afghanistan after driving out Soviet Union from Afghanistan. Islamic Fundamentalism Pak Army 9. From the early days, the secular apolitical army that the British left behind deviated in Pakistan from the basic tenets of professionalism and began to intervene in politics and governance aided by the bureaucratic class( later to be simply used by the army) and the incompetence of the political elites. The army defined the parameters of national policy and the means by which it was to be pursued even when it was not in direct control of state. It also began from the very beginning to rely on clandestine covert war, executed through multiple means and tactics, while following up with traditional professional military forces for a coup de grace when it wanted.[21] 10. When General Zia ul Haq came to power he did not take too long to reveal his religious political outlook. He was brisk in replacing the Jinnahs motto of Pakistan Army- Unity, Faith Discipline with Faith, Piety Holy War (Jihad).[22] In his opening speech, after the take over he, extended two reasons for military intervention. Firstly the country was on threshold of a civil war. Secondly Islam had not been effectively put into practice in Pakistani society.[23] Zia ul Haq after assuming power lent his support and affinity with the Pakistan National Alliance (PNA) protest movement. PNA was an alliance of nine parties to throw out Zulfikar Ali Bhutto and they promised to bring back Islamic laws. â€Å"I must say that the spirit of Islam, demonstrated during the recent movement was commendable. It proves that Pakistan, which was created in the name of Islam, will continue to survive only if it sticks to Islam. That is why I consider the introduction of Islamic system as an essentia l pre-requisite for the country.†[24] 11. The army has seen itself for the last three decades or more as the defender of not only of the physical frontiers but also of ideological frontiers of the state, conceptualized on the foundations of exclusivity of religion. It has inevitably been increasingly ‘islamised which at one level enhanced internal cohesion and motivation to fight and at another created a spectre of potential discord within the army.[25] 12. In 1976, the Pakistan army had amended its secular motto to include the term ‘jihad in it. All the eight groups of irregular resistance fighters that it equipped and trained for the war in Afghanistan during the 1980s were called ‘Mujahideen- those who carry out jihad.[26] The military-dominated state has used jihad, which is intrinsic to faith and ethics in Islam, to advance its strategic, economic, and political ends. Such a shrewd strategic vision, backed by political denial and policies of economic exclusion, violates elementary Islamic principles of equity and justice. The army has capitalised on the jehadi industry to further ensconce itself in the power structure.[27] Role of ISI 13. The Inter Services Intelligence(ISI) of Pakistan and the inter services public relations are officially under the ministry of defence. In reality, the ISI functions under direct control of Pak Army and its Chief is answerable to the military leaders. The ISI does not report to the civilian authority, even when there is a democratically elected government. The ISI enjoys a unique status in the infrastructure of the Pakistani establishment. It is not an ordinary intelligence apparatus of the state. It has emerged as a fulcrum of Islamic jihadist operations of the state of Pakistan and jihadist tanzeems created by the state. 14. The ISI devoted two full wings of its establishment for carrying out operations inside India. The joint intelligence miscellaneous (JIM) and the joint intelligence north (JIN) are reported to be responsible for directing the Indian operations of the ISI. Whole other wings of the ISI are known to play supportive roles. The JIX often came to the notice of the Indian agencies for coordinating special operations inside India. The Pakistan IB, unlike Indian IB, is not totally barred from conducting operations in selected foreign countries. For Indian targets they are allowed to conduct certain shallow penetration trans-border operations as well as assigned high commission based operations.[28] The Lashkar-e-Taiba (LeT) and ISI 15. The Lashkars nexus with the ISI is well established. â€Å"LeT had worked in close coordination with the ISI, which also provided support to launch the militants across the border† Dr. Khalid Mehmood Soomroo of the Jamiat-e-Islam asks: â€Å"Is there a single militant training centre in Pakistan which can operate without the consent of the Pakistan army?† The are numerous training camps in Pakistan-occupied Kashmir (POK). Zahab and Roy mention three, the principal one being Um al-Qura at Muzaffarabad. Five hundred mujahids are trained here every month.[29] Moreover, India has been victimized by a host of militant groups based in and supported by Pakistan for decades. With the possible exception of the militant groups associated with Jamaat-Islami, the so-called Kashmir tanzeems have been raised, nurtured, assisted, and trained by the ISI.[30] As such, these groups are not strictly non state actors but rather extensions of the state intelligence apparatus, albeit wit h some degree of plausible deniability. 16. Groups that were previously limited to the Kashmir expanded into the Indian hinterland following the 1998 nuclear tests. Notable attacks included the 2000 LeT attack on the Red Fort, the 2001 Jaish-e-Muhamad (JeM) attack on the Indian parliament, the 2006 LeT Mumbai rail system attack, and numerous other attacks by LeT or JeM throughout India. In addition, in 2000, LeT introduced the fidayeen (high-risk suicide commando) operation in Kashmir and has since used it throughout India.[31] 17. LeT is still considered to be an important asset in Pakistans quest to secure its regional objectives and because it, unlike the proliferating morass of Deobandi groups, has never targeted the state.[32] Civil-Military Power Relationship in Pakistan 18. As a ruler Zia left Pakistan turbulent and rife with sectarian and ethnic tensions. Political parties were weak and divided. In such a divided polity the military was not merely the hegemonic, but also the only institution that had grown, expanded and emerged as the arbitrator in defining power relations among various contending power groups. Having established its hegemony in political system the military was poised to search for redefining its role in the post Zia era.[33] Military Hegemony has emerged as the most dominant and durable character of Pakistans political system. Hegemony was achieved through four process (a) Promotion of the â€Å"corporate interests† of military. (b) Political exclusion i.e. exclusion of political leaders, political parties and urban middle class. (c) Political control, i.e. control of the press and labour. (d) Political inclusion, i.e. co-optation and consolidation of bureaucratic elites, financial industrial groups and feudal classes.[34] Govt and Pak Army Today 19.Fast forward to the present and today as a result of the tumultuous political developments in Pakistan during 2007-08 leading to the historic 2008 elections, the Pak Army is under pressure but has not lost its power. It may go back to its old ways when the situation calms down. Pakistan is still far from having a genuinely democratic government that wields effective power. A tug-of-war is underway. It is not ruled out that spate of terrorist acts and destructive activities against india are intended to show up the ineffectiveness of the Pakistans civilian government and create suspicions in India about its bonafides, and the way for the Pak Army to reassert itself openly in Pakistans political arena[35] 20. While Musharrafs departure has reduced the visible level of involvement of the Pakistan Army in affairs of state, it has by no means reduced its stature as a major domestic force and one of the key pillars of governance in the country. It can safely be expected that the weakness and instability of the political coalition will bestow greater significance on the domestic role of the Pakistan Army and could even see the coalition in Islamabad acceding to all â€Å"requests† of the Pakistan Army. The chance that any reluctance on the part of the elected politicians to digress from the path desired by the Pakistan Army may lead to yet another military coup in Pakistan is likely to prominently in the thinking of the elected leaders and could well force them to acquiesce to the desires of the Pakistan Army. In some ways, this would highlight a paradox that has continued to in Pakistani politics the departure of a strong albeit despised military ruler from the corridors of power has once again presented the all-powerful Pakistan Army with yet another opportunity for calling the shots in Islamabad. The power and influence that the Pakistan Army continues to enjoy became fairly evident when Prime Minister Gillanis government had to revoke an order placing the powerful ISI under the Ministry of Interior within six hours of its issuance, primarily due to pressure from the Army.[36] Cross Border Terrorism Sponsored by Pak Army and Suggested Indian response CHAPTER V PAK ARMY SPONSORED CROSS BORDER TERRORISM â€Å"The terrible thing about terrorism is that ultimately it destroys those who practise it. Slowly but surely, as they try to extinguish life in others, the light within them dies.† TERRY WAITE, London Guardian, Feb. 20, 1992 1. The Pak Army is now inextricably involved in exporting terrorism to India. A cosy relationship has developed at the functional level between the local army commanders, the drug mafia, the politicians, the bureaucrats, the police, and the mullahs who supply young recruits as cannon fodder for the so called jihad in Kashmir. It suits everyones vested interests to keep the pot boiling. The vigorous advocacy of jihad provides a share in spoils of the narcotics booty. Power and pelf make a potent cocktail; this heady mixture is an extremely motivating incentive for institutionalizing the perpetuation of a proxy war against India. Hence, no matter what incentives India offers, there is likely to be no let up in the ongoing hostilities. [37] Pak Sponsored Terrorism in JK 2. The ISI had initiated the Proxy war in JK in 1989-90. This campaign can be categorized in three main phases (a) The Azadi Phase (1990-1995). The ISI had raised, tr