The Universal Periodic Review Hearing - Free Essay Example

Sample details Pages: 5 Words: 1351 Downloads: 6 Date added: 2017/06/26 Category Law Essay Type Essay any type Did you like this example? The Bangladesh Report, under the Universal Periodic Review mechanism of the United Nations Human Rights Council, must reflect the true prevailing status of the human rights situation, without distortion or half-truths. On 3 February 2009, the Bangladesh report was discussed by the Human Rights Council in Geneva. Odhikar believes that the imposition and continuation of the State of Emergency for a long time was the single most important incident of human rights violation. The Emergency deprived the people of their fundamental rights. Don’t waste time! Our writers will create an original "The Universal Periodic Review Hearing" essay for you Create order UPR recommendations from the Odhikar and FIDH8 joint submission are given below: Rein in the security forces and stop all extrajudicial killings and refrain from using murder as a policing tool. Set up an independent body to deal with complaints against members of security forces for violation of rights, with adequate powers to investigate and where necessary, recommend prosecution. Stop the use of torture in all its forms by law officers once an individual is in custody or under effective control of a member of the law enforcement agencies. Ratify the Rome Statute of 1998 establishing the International Criminal Court that Bangladesh is a signatory to and adopt implementing legislations. Legislate the outlawing of torture in line with the Governments obligation as a Party to the UNCAT, on a priority basis and put in place lawful interrogation procedures including the interrogation of people remanded in custody in glass-partitioned rooms and in the presence of relatives or lawyers, as ordered by the High Court in April 2003 and amend the Code of Criminal Procedure accordingly. Provide compensation to victims of torture. Incorporate and ensure fundamental rights and freedoms in counter terrorism legislation including guaranteeing internationally recognised fair trial rights. 8 FIDH: International Federation for Human Rights, based in Paris, France ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reorganize the justice system to make it women friendly, including legislation on victims and witness protection. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Amendments should include making recommendations of the UN Human Rights Commission binding, and awarding the Commission its right to be consulted by the Government in legislations with human rights implications. Suggestions and Recommendations 2009 has been an eventful year for those who perpetrate abuse on human rights. In order to uphold the rights of the people as guaranteed by the Constitution and the laws of the land, Odhikar has placed here some suggestions for a safer, more democratic Bangladesh. As per the election manifesto of the present Government and the UPR declaration of the United Nations, extra-judicial killings must come to an end. The Government must bring before trial those involved in these killings. The Government must refrain from narrowing down the path to democratic rights and cease the practice of coming down on political groups holding a different political opinion. Torture during interrogation or remand must be stopped immediately and the recommendations placed by the High Court Division in 2003 must be implemented. Freedom of the media must be ensured. A proper investigation is needed into the incidents of repression and torture towards journalists. Independent and fair investigations must be carried out in relation to the deaths of the BDR members who were in custody. Transparency and accountability must be upheld in the treason cases involving the BDR Jawans. For the sake of justice and upholding the rights of the accused, the accused in the BDR mutiny should be allowed to be represented by a legal counsel of their choice. The Government must take effective steps to stop violence against women. Those involved in such violence must be brought under the purview of the law and the victims must also be provided with necessary assistance including adequate compensation. The victims and witnesses must be provided protection so that the perpetrator cannot exert fear upon them or inflict violence on them again. Odhikar also urges the Government to create a special fund for treating the physical and mental consequences of such violence. The wages of the workers of the readymade garments factories must be paid in time. The Government must watch over the garments factories to ensure that the workers are being paid regularly and that the issues concerning wage raises The Government must pay more attention to its citizens working as overseas labourers. The policy on overseas migration and overseas labour must be strictly implemented. Bangladesh Embassies abroad must be more diligent in safeguarding the rights of its workforce in foreign countries. The Government must also be active in obtaining adequate compensation for the families of the deceased and the tortured labourers. The government should take immediate steps to stop political violence. Those who are engaged in such violence must be brought to justice. Law enforcement agencies should be strengthened to stop the violence. The Government must take effective steps so that the killings of Bangladeshi citizens by the BSF come to an end. The Anti-Terrorism Act 2008, a tool for committing human rights violations, must be scrapped. Rights of the ethnic and religious minority communities must be guaranteed and security to their property and belongings must also be provided, as per legal and constitutional provisions. The Government must follow the Paris Principles regarding human rights defenders and their protection. The National Human Rights Commission The Government of Bangladesh passed the National Human Rights Commission Bill on July 9, 2009. The Bill provides for a selection procedure of members to the National Human Rights Commission by a seven-member Selection Committee. This will allow direct intervention by the Government, since four members of the Selection Committee have come from the ruling party. The three remaining members are a Government nominated retired Justice, who is also the Chair of the Law Commission and another is a Secretary of the Cabinet. Keeping room for only one member from the Opposition party has reduced the proposed National Human Rights Commission (NHRC) into an entity subservient to and controlled by the Government. The National Human Rights Commission will be a toothless tiger, as it has not been given the power to take measures against an accused person or against law enforcement agencies. While the Commission itself should be given the power to file cases against human rights violators, the provision in the Bill only allows the NHRC to make suggestions to the Government to take steps against persons against whom accusations have been proven. The Commission has no visible functional capacity. It is a caricature of what the human right defenders have been demanding for a long time and therefore totally inadequate and unacceptable. Parliament: The prevailing formal institutional structure of the political system in Bangladesh appears handicapped in checking the unbridled power and authority of government and ill-equipped in calling the government to account. All the major characteristics of a strong legislature are virtually absent in Bangladesh. State power is highly centralized rather than dispersed. The president is a titular head of state and he performs according to the advices of the prime minister and plays into the hand of the ruling regime. All the major political institutions including the Speaker of the parliament have been politicized and used against the major opposition parties in the country. Major local government institutions have been dysfunctional for over a decade. The parliament and parliamentary committees have been dominated and monopolized by the ruling government. No space has been left for the opposition political parties to participate and con ­tribute to the governance system. The opposit ion is thus left out to the street. Thus the external environment of the parliament and parliamentary committees has largely determined the way parliament and committees have performed in Bangladesh. Executive: The domination of the ruling party is evident in the structural and functional arrangement of the committee system in Bangladesh. Structurally the committee is arranged in such a way that without the assent of the party in power no action can be taken to make the executive accountable. The stalwarts (including the party chief) of the ruling party have enormous influence from the formation of committees to the implementation of committee recommendations. The institu ­tional domination of the ruling party has also been reflected in the real-world functioning of the committee in securing executive accountability in Bangladesh. Prime ministers in the 1990s have been seen interfering in the operations of committees.

Analysis Of The Poem Porphyria s Lover By Robert...

With so much poetry coming out of Britain it can be hard for any of it to stand out from the rest, but â€Å"Porphyria’s Lover† by Robert Browning and â€Å"A Poison Tree† by William Blake manage to stand out from other poems. These two poems differ in structure, writing style, and voice but both have something that sticks them out from the rest; murderers without a moral compass. While murder isn’t new to poetry it is rare to find it as nonchalant as it is in these two poems. These killers were not killing just because they hated their victims; they were killing because they could and the fact that a life was ended meant nothing to them. This is why these poems stick out from the rest. The poem â€Å"Porphyria’s Lover† by Robert Browning tells the story of two lovers who were not supposed to be and ends in the death of one of the lovers. The poem starts with a stormy night and Porphyria, one of the two lovers, visits her lover in a small cot tage. We are given the image of her lover being angry with her by the way he ignores her. She tries to seduce him by making â€Å"her smooth white shoulder bare† (Browning 17) and pulling her lovers head against her. Porphyria admitted that although she loved him she was too weak to give herself completely to him. She claims she thought about him at her dinner feast which could mean that the reason they couldn’t be together was because of class differences. While she told him what went through her mind he looked at her eyes and claimed that he realizedShow MoreRelated Comparing the Male Characters of Porphyria’s Lover and My Last Duchess1720 Words   |  7 PagesComparing the Male Characters of Porphyria’s Lover and My Last Duchess The creation of a plausible character within literature is one of the most difficult challenges to a writer, and development to a level at which the reader identifies with them can take a long time. However, through the masterful use of poetic devices and language Browning is able to create two living and breathing characters in sixty or less lines. When one examines these works one has to that they are quite the achievementsRead More Analysis of Two In The Campagna by Robert Browning Essay1423 Words   |  6 PagesAnalysis of Two In The Campagna by Robert Browning Two In The Campagna is essentially a love poem, written by Browning to capture the tragic and dark aspects of a relationship. The poem commences with romantic images of the couple sitting in the fields of Rome in spring. The first line, starting with I wonder sets the contemplative tone of the piece, and the poet follows one particular trail of thought for several stanzas. Clearly, the poet is trying to capture what cannot be easilyRead MorePorphyrias Lover And My Last Duchess By Robert Browning1510 Words   |  7 PagesRobert Browning is a romantic and victorian poet who writes from a speaker’s perspective while a listener is listening to what the speaker reveals about him or herself. Oscar Wilde, author of The Complete Letters of Oscar Wilde, once exclaimed, â€Å"In art, Browning can make action and psychology one!† A healthy and fully expressed relationship is the bond between two people, consisting of trust, honesty, and respect (Denham et al. 397). Within â€Å"Porphyria’s Lover† and â€Å"My Last Duchess,† Robert BrowningRead MoreSimilarities Between My Last Duchess And Porphyrias Lover1113 Words   |  5 PagesTrue Love (A Discussion on Robert Brownings My Last Duchess and Porphyria’s Lover.) Robert Browning wrote many amazing dramatic monologues during his time in the 1800’s. â€Å"The English poet Robert Browning (1812-1889) is best known for his dramatic monologues. By vividly portraying a central character against a social background, these poems probed complex human motives in a variety of historical periods†(Gale). Browning was super influential with his monologues during the Victorian period and evenRead More Porphyria’s Lover Essay4333 Words   |  18 PagesPorphyria’s Lover The finest woks of Browning endeavor to explain the mechanics of human psychology. The motions of love, hate, passion, instinct, violence, desire, poverty, violence, and sex and sensuousness are raised from the dead in his poetry with a striking virility and some are even introduced with a remarkable brilliance. Thanks to the changes wrought by the Industrial Revolution, so many people living in such close quarters, poverty, violence, and sex became part of everyday life

Medically Unexplained Symptoms

Question: Discuss about theMedically Unexplained Symptoms. Answer: Background of the Study a) Briefly describe the issue on which the study is focused. In the research article, Lidn, Bjrk-Brmberg Svensson, (2015) highlighted the issue of the patients suffering and living with medically unexplained symptoms (MUS) in a primary healthcare setting. The article also shows the perceptions of the MUS patients in coping with the condition and living with it. The issue related with the condition of MUS is that it is viewed as the fault of the medical diagnosis and not the potential of the patients living with the condition in their daily life. The issues addressed in the research also encompass the frustrations of the physicians and nurses in providing the patient centred care in MUS. b) What is the significance of the study? The significance of the study is that it illustrates the perceptions and consequences that the patients face suffering from MUS. As MUS is a very serious condition that affects the quality of life of the people, this research holds significance as there is lack of extensive research made in this field. This research is also significant as it focuses on the capabilities and possibilities for the mental and physical well-being of the MUS patients. This study also demonstrates the perceptions of the MUS patients in coping with the condition and in leading a normal life. Overview of research design a) What was the aim of the research? The aim of the study was to interpret and describe the experiences of the patients suffering from MUS in primary healthcare setting. The research is focused on understanding the ways in which the MUS patients learn to live with their condition. It also encompasses the coping attitude in the patients in leading a normal life. Despite of having a frustrated life, they try to live with the condition and move on with their life while taking care of themselves. b) What research design was used? Phenomenological-hermeneutic method is the research design used for the study. This method revolves around themes like interpretation, textual, dialogue, tradition, pre-understanding and meaning. This method is employed in qualitative research where the authors described the perceptions of the patients living with MUS as the phenomena. These phenomena are described and interpreted even after the method is unending and tentative. Another research conducted by Kornelsen et al., (2016) also illustrated the use of phenomenological-hermeneutic method in explaining the consequences and perceptions of the patients living with MUS. c) Was it appropriate? Why/why not? This method is appropriate as it helps to understand the perceptions of the patients living with MUS from a phenomenological perspective in a primary healthcare setting. This method is very advantageous as it is highly flexible to the emerging issues that might arise due to MUS in the patients. This method is highly relevant and natural in fulfilling the aims of the research study. This method is appropriate as it provides a better understanding of the perceptions of the people who are living with the MUS condition. It gives a philosophical movement that fulfills the objectives of the research. Sampling a) Who were the study participants? The study participants comprise of the MUS patients of the age group of 24-61 years. The patients were chosen from the two suburban primary healthcare centres situated in Sweden. In the final sample size, majority were from the immigrant background. b) What are the inclusion and exclusion criteria of the sample? The inclusion and exclusion data collection was adopted by the researchers for the sampling method. During the inclusion method, the patients of the age 18-65 years who had eight visits in a primary healthcare setting with a physician or a nurse during the previous twelve methods in Sweden. The patients were also included based on the criteria where they have no psychiatric or organic reason for frequent visits to the primary healthcare centres. Moreover, it also comprises of the 50% of the patients who reported MUS. The potential subjects were screened through the incoming telephone calls from the patients to the primary healthcare centres. After the screening procedure, the patients were contacted through telephone asking for their participation in the research method. Around 20 patients were selected after they agreed to participate in the research process. However, through the exclusion criteria, many recruited participants were excluded through extensive data collection method. Out of 1379 participants, 1328 were excluded and 51 were included. On the other hand, through the inclusion method, out of 1010 participants, 87 were included and 923 excluded through the minimal data collection method. At last, 10 participants were chosen as the sample size of the age 24 to 61 years. Among the sample size, seven were women and three were men The majority of the participants were from immigrant backgrounds. c) Why is it important to have these criteria identified before recruitment? This criterion is important as it determines the scope for the research and validity of the findings. This also aids the researchers in the proper designing of the research and in the execution of the study in a correct manner. The inclusion criteria helped the researchers to include the subjects that are suitable for the study and in excluding the participants who were disqualified from the inclusion in the study. d) What sampling technique was employed in this study? Purposeful sampling method was employed by the researchers where the subjects were chosen after the pre-selection fulfilling the criteria for the aim of the research. e) Was it appropriate for the research design? Why/why not? The employed technique was appropriate as the subjects were pre-determined. They were selected based on the fulfilling criteria for the research objective. The data was collected from the patients of the age 24-61 years living with MUS. f) How was the sample size determined? The sample size was determined by the criteria of exclusion and inclusion. The minimal and extensive data collection was applied according to which the sample size was selected. The sample size is of the age 24-61 years old suffering from MUS in the primary healthcare setting. g) Was it appropriate? Why/why not? This method was appropriate as the sample size that was selected fulfilled the criteria of the research study. The data collected was relevant and ensured validity. Data collection a) How was the data collected? In the given article, the data was collected via primary data collection method. The data was collected directly from the participants that were the patients suffering from MUS in a primary healthcare setting. This ensured reliability as the data was collected directly from the subjects. b) Was the data collection method appropriate for the study question and the research design? Why/why not? This primary data collection method was appropriate as it was taken directly from the patients who were selected from the age group of 24-61 years. Through this method, 10 patients suffering from MUS were selected through narrations and interviews. c) Define the concept of rigor. In qualitative research, rigor was used to show the research tools that fulfilled the criteria of objectives and aims of the research. The trust worthiness is also determined through rigor that helps to identify the questions that are important and needs to be addressed. The rigor also consists of the research philosophy that was also used in the data collection. d) Discuss two measures taken/not taken to ensure rigor. In the given article, measures were taken for ensuring rigor in the data collection method. The collection of data was done in an authentic way and the participants who were selected were pre-determined in terms of age that is 24-6 years old and criteria of MUS in a primary healthacre setting. Data analysis/results a) Identify and describe the method of data analysis. The analysis of data was done in three steps that comprises of naive reading, structural analysis and comprehensive understanding. The narrations that the patients provided were read many a times to analyze the text called the naive understanding. After that, through structural analysis, the texts were validated and interpretation was done where the text was divided into themes and subthemes that illustrated the criteria of the research study. Another study conducted by Stone, (2013) where the author had also used the thematic analysis for the interpretation of the data. In the article, the researcher had interviewed the general practitioners of Australia in explaining the management of the physical and emotional symptoms MUS patients. Was it appropriate? Why/why not? It was not appropriate for the research study that helped in analysing the texts of the narratives of the patients and in decoding to understand the perceptions of the MUS patients. The systematic text condensation method is appropriate as works under a phenomenological framework that comprises of identification, condensation, total impression and meaning units to draw conclusion. What were the findings? The findings showed that the results were divided into subthemes and themes concluded from the narratives of the patients. The naive understanding illustrated that the patients were shattered as they were unable to lead a normal life. They struggled as they try to interpret their symptoms and also try to manage their life. The themes comprises of the patients feelings in leading a normal life where they feel overwhelmed because of the symptoms and accept the condition and try to live with it. The sense of self is lost due to MUS condition. They keep searching for the reasons of their unexplained symptoms and in the meanwhile, learn self-care. They also become mindful and try to accept and move on with their life. Can the study findings be used in other settings? Why/why not? These findings can be used in other settings for the psychological interventions that would help the healthcare professionals in delivering the patient centred care to the MUS patients. Evidence utilization Would you recommend the findings of this study be implemented in clinical practice? Why/why not? These findings can be implemented in the designing of the psychological interventions that would help them to cope up with the unexplained symptoms and lead their lives (Stone, 2013). The understanding and interpretation of the perceptions of the MUS patients is important as it helps the healthcare professionals in the primary healthcare setting in providing patient centred care and in addressing the psychological needs of the MUS patients. References Kornelsen, J., Atkins, C., Brownell, K., Woollard, R. (2016). The meaning of patient experiences of medically unexplained physical symptoms. Qualitative health research, 26(3), 367-376. Lidn, E., Bjrk-Brmberg, E., Svensson, S. (2015). The meaning of learning to live with medically unexplained symptoms as narrated by patients in primary care: A phenomenological-hermeneutic study. International journal of qualitative studies on health and well-being, 10. Stone, L. (2013). Making sense of medically unexplained symptoms in general practice: a grounded theory study. Mental health in family medicine, 10(2), 101. Stone, L. (2013). Reframing chaos. AustrAliAn FAmily PhysiciAn, 42(7), 1.

Principal-Agent theory1 Essay Example

Principal-Agent theory1 Paper At its simplest, principal-agent theory examines situtations in which there are two main actors, a principal who is usually the owner of an asset, and the agent who makes decisions which affect the value of that asset, on behalf of the principal. As applied to the firm, the theory often identifies the owner of the firm as principal, and the manager as agent, but the principal could also be a manager, and an employee nominated by the manager to represent him in some aspect of the business could be the agent. In this case the asset, which the agents decisions could enhance or diminish, is the managers reputation. To explain the relationship between principal-agent (or agency) theory, and other theories of the firm, we turn to Williamsons (1985, pp. 23-29) categorisation of approaches in IO in terms of their views on contracts. There are two main such approaches or branches: monopoly, which views contracts as a means of obtaining or increasing monopoly power, and efficiency, which views contracts as a means of economising. The early work on SCP and particularly on barriers to entry, for example, belong on the monopoly branch of contracts. Both transaction cost and principal-agent theories belong on the efficiency branch (together with most of what Williamson calls the New Institutional Economics). Thus, in Williamsons perspective, agency theory is the theory that focuses on the design and improvement of contracts between principals and agents. Among the major concerns of principal-agent theory is the relationship between ownership and control2, and in this respect it can be seen to have emerged from the managerial theory tradition. We will write a custom essay sample on Principal-Agent theory1 specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Principal-Agent theory1 specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Principal-Agent theory1 specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Indeed, in that it focuses on the contractual aspects of that relationship, and often adopts game-theoretic methods, principal-agent theory can be seen as a new IO version of a sub-set of managerial theory. Recent work in this area tends to be highly theoretical3. Principal-agent theory sees the firm as does neoclassical theory as a legal entity with a production function, contracting with outsiders (including suppliers and customers) and insiders (including owners and managers). There is information asymmetry between principals and agents, but, unlike in transaction cost theory (which usually assumes bounded rationality) there is often assumed to be unbounded rationality. We will discuss this in more detail below; in the context of the design of contracts between principals and agents, unbounded rationality refers to the ability of those designing the contract to take all possible, relevant, future events into consideration. The principal may know various things not known to the agent (in relation, for example, to the prospects of the firm), and vice versa (the agent may have a lower commitment to the firm than he leads the principal to believe), but if the obligations of both under the contract can be specified, taking into consideration the possibilites arising from private information, then there is unbounded rationality despite the information asymmetry. The agency theorists concerns and in this they are different from neoclassical theorists are with owners and managers problems of coping with asymmetric information, measurement of performance, and incentives (Chandler, 1992b). The major difference between principal-agent and transaction cost theories is that the former focuses on the contract, the latter on the transaction. The problem for principal-agent theory is how to formulate a contract such that the shareholders (the principal) will have their interests advanced by the manager (the agent), despite the fact that the managers interests may diverge from those of the shareholders4. Where objectives of the agent are different from those of the principal, and the principal cannot easily tell to what extent the agent is acting self-interestedly in ways diverging from the principals interests, then the problem of moral hazard arises. The problem originated in the insurance industry, referring to the possiblity that people with insurance will change their behaviour, resulting in larger claims on the insurance company than would have been made if they had continued to behave as they did before they had insurance. This change in behaviour may, moreover, be known to the insurer, but may not be fraudulent or, at least, may not be provably fraudulent. In the context of relations between principals and agents, moral hazard refers to the possibility that, once there is a contract, the agent may behave differently from how he would have behaved had he not had the contract. It must, in addition, be difficult to determine whether his behaviour has conformed to the terms of the contract5. This arises particularly where the agent is a member of a team. Principal-agent theorists have attempted, by specifying conditions such as that the managers salary be equal to the expected value of his marginal product, to design contracts on the basis of which there will be an incentive for the manager to act in the shareholders interests. However, the importance of the team element in managerial jobs discredits the notion of a managers marginal product (Aoki, 1984, Ch. 2 and p. 50). This team element6 is also present at the production level. Doeringer and Piore (1971, p. 277) emphasised the importance of social cohesion and group pressure in the establishment of work customs. The process whereby such routines are created, and their importance in the success or otherwise of firms, are central concerns of the evolutionary theory of the firm (Section 2. 4). Principal-agent theory is more concerned with implications for shirking, that is, a reduction in effort by an agent who is part of a team. There may be a slight decline in total output as a result, but the cause will usually be unidentifiable. The shirking manager knows that his diminished effort is unobservable. Shirking is the moral hazard arising from the employment contract. What the principal can do, in the formulation of contracts, to offset shirking (and other types of management misbehaviour), is a key problem of principal-agent theory. There are a number of ways of controlling moral hazard. Rather than attempting to calculate the value of each managers marginal product, managers could each be paid a salary plus a bonus based on the performance of the company. The problem here is that if the utility of leisure is different for different managers, then again some may work more and others less at maximising the long-run value of the firm. (On the other hand, where there is a great deal of cultural homogeneity, as can be argued to be the case in Japan, this salary plus bonus system seems to be effective. ) Other examples of suggestions by principal-agent theorists for solving employment contract problems include the development of efficient ways of monitoring the performance of individual managers (or management teams), providing incentive contracts which reward agents only on the basis of results, bonding (where the agent makes a promise to pay the principal a sum of money if inappropriate behaviour by the agent is detected) and mandatory retirement payments. This last acts like a bond, in that there is a disincentive for the employee to misbehave because if he does misbehave he may be fired, and lose his retirement payment. It should be emphasised that, to the extent that managers want to keep their jobs, the three markets (for corporate control, managerial labour and the firms products) can control moral hazard. In relation to the market for corporate control, for example, Many observers have interpreted the hostile takeovers [of the 1980s] as a corrective response to managerial moral hazard: The takeovers, it is claimed, were intended to displace entrenched managers who were pursuing their own interests at the expense of the stockholders (Milgrom and Roberts, 1992, p. 182). The fact that the acquisition share prices were higher than they had been in the market prior to takeover, may be evidence of management misbehaviour or moral hazard. This would be so if the original market value of the shares had been the equivalent of the companys value (net present value of the future stream of profit that could reasonably be expected) under the original management, and the acquisition price was the companys value under the new management. It may, on the other hand, indicate an overestimation by the acquiring firm or individual of its/his capacity to improve the performance of the company. Milgrom and Roberts (1992, pp. 182-3) seem to conclude that the takeover premium was indicative of moral hazard when arguing that there is other evidence of management misbehaviour in the adoption during the 1980s by management of the poison pill defence against takeovers. The poison pill is a special security, which gives the holder the right to acquire shares at very low prices in the event of a hostile takeover. Poison pills were created by management, in some cases without shareholder approval. If, as Stiglitz (1991) suggests, the acquiring firm in takeovers generally experiences no increase in its own share values, then it is more likely that there has in fact been an overestimation by the acquiring firm of its ability to improve the performance of the target company. This is indicative, in other words, of an overestimation of the moral hazard of the managerial employment contract. The most obvious solution to the problem of conflict of interest between principal and agent is for the principal to become his own agent. Where there is team production, and the existence of a monitor can reduce shirking by enough to pay his own salary, then it may be appropriate for that monitor also to be the owner of the firm. If he is not the owner, then there could be a need to monitor the monitor, to ensure that he does not shirk. This leads to the conclusion that the existence of firms in which there is an owner and a group of people working as a team for that owner, is a consequence of the need to monitor team production, and the need for the monitor himself to be the owner with, for example, the power to fire shirkers, to pay each of the members of the team in accordance with his view of their productivity, to keep the residual and to sell the firm8. We return to the question of the basis for the existence of firms in the next section, where transaction cost theory, among other things, takes exception to principal-agent theorys conclusion about the significance of the need for monitoring. 1 This section draws in part on Milgrom and Roberts, 1992, Ch. 6. The reader is encouraged to read that chapter for more details, particularly on the relationship between moral hazard and performance incentives. For game theoretic perspectives on the relationship between principals and agents, see Gardner, 1995, Ch. 10. 2 See, for example, the article on the separation of ownership and control by Fama and Jensen, 1983. Other important articles on principal-agent theory include Mirrlees, 1976 and Fama, 1980. 3 See, for example, Maskin and Tirole, 1992, who analyse as a three-stage game the relationship between the principal and agent in which the principal has private information that directly affects the agents payoff. 4 or, to express it in terms closer to those of the theorists in this area, the problem is whether there exists any class of reward schedule for the agent (the manager) such as to yield a Pareto-efficient solution for any pair of utility functions both for the agent and the principal (Aoki, 1984, p. 49). 5 An example of moral hazard in employment contracts arises in universities, where there are two different groups of employees, those on short-term contracts, and those with tenure. Tenure is supported by many, and not only those who have tenure(!), as a feature of the independence of the academic, and the need to protect the academic against political pressure. Tenure may perform this function to some extent but it also enables those who have it, to change their behaviour and shirk various duties. The academic on short term contract, it can be argued, works hard, prepares excellent lectures, volunteers for administrative duties, does above average research and publishing. Then he obtains tenure, relaxes more, gives last years lectures, avoids administration, and does less research and publishing. In practice there is, no doubt, moral hazard in tenure, but given that the best teachers, administrators and researchers in academia have tenure, academics certainly do not always, or even usually, change their behaviour in the way predicted by moral hazard. 6 raised, as we saw in Chapter 2, by Alchian and Demsetz, 1972. 7 quoted in Aoki, 1984, p. 26. 8 For a more detailed discussion on the issue of team production and the monitor as owner, see Holmstrom and Tirole, 1989, or at a more introductory level, Douma and Schreuder, 1992, Chapter 6.