Biology By2 Revision

Parasitic Nutrition 21 May 2011 10:43 = organisms that live on or in another organism obtaining nourishment at the expense of the host and causing harm. Gut parasite (Taenia solium) = tapeworm Primary host = human (eat uncooked infected pork) Secondary host = pig (drainage channels contaminated by human faeces) Adaptations†¦ – Suckers & hookers (attachment) – Body covering (immune responses) – Thick cuticle (inhibitory substances = enzymes) – Simple body systems (reproduction) – Very thin & large surface area (food absorbed over whole body surface = diffusion) – Male & female sex organs (gut can only accommodate 1 tapeworm) – Number of eggs produced (increase chance of survival) – Eggs have resistant shells (survive until eaten) Dormant embryos can form cysts in organs – damage surrounding tissue BY2 revision Page 1 Adaptions to different diets 21 May 2011 10:53 Reptiles & Amphibians = swallow food whole Mammals = cut up and chew (palate separates nasal cavity & mouth – kept in mouth longer) Carnivore = short gut (easily digest protein) Herbivore = long gut (p lant digestion difficult) Dentition Mechanical digestion = easier to swallow & increases surface area for enzyme action Herbivore Incisors Canines Lower jaw, cuts against horny pad (upper jaw) Indistinguishable from incisors Carnivore Sharp (tear flesh from bone) Large, curved, pointed = seizing prey, killing & tearing flesh Carnassial (slide past each other = garden shears) molars = cutting/crushing) Vertical (open wide to capture & kill prey) Not horizontal (dislocation) Jaw muscles = well developed/powerful (grip firmly on prey/crush bones) Cheek teeth Interlock. (W into M) Worn down = sharp enamel ridges (efficiency). Open roots (grinding) Jaw movement Other Circular grinding. Horizontal plane Diastema = gap between front & side teeth. Tongue moves cut grass to grinding surfaces (cheek teeth) Ruminants Produce most protein eaten by humans eg. Cows/sheep Mutualism/Symbiosis = close association between members of 2 species, both derive some benefit from the relationship. – Can't digest cellulose (no cellulose enzymes) – Cellulose-digesting bacteria live in gut of cow – Separated = food left long enough for digestion, bacteria isolated (optimum pH & conditions) Cellulose digestion†¦ – Grass chopped (teeth), saliva, cud formed, swallowed – 1st stomach = cellulose digesting bacteria (glucose = fermented – organic acids into blood. Waste = co2 & methane – Cud into next region, regurgitated & chewed again – 3rd stomach = water absorption – 4th stomach (‘normal' stomach) = protein digestion – Small intestine = absorption Rumen = greater variety of mutualistic organisms than in caecum More efficient = more complete breakdown of cellulose Bacteria = source of protein when dead BY2 revision Page 2 Digestion 21 May 2011 11:35 = the break down of large insoluble molecules into smaller soluble molecules. Physical & chemical. Food passes through alimentary canal where it is digested & absorbed into the body. Digestive enzymes = hydrolases (catalyse hydrolysis of substrate – addition of water) – Carbohydrates (polysaccharides) > disaccharides > monosaccharides (Amylase = maltose >glucose) – Proteins >polypeptides >dipeptides >amino-acids (peptidase = endo/exo) – Fats > fatty acids & glycerol (lipase) Mouth (buccal cavity) – Mechanical digestion (teeth) – Saliva = salivary lands (mucus, salivary amylase & mineral ions = optimum pH – slightly alkaline) = lubrication & some protein digestion (amylase = starch > maltose) – Swallowed as bolus Oesophagus – Peristaltic contractions (longitudinal & circular muscles = not under conscious control) – Occurs all way through alimentary canal Stomach = muscular sac (2 sphincter muscles = cardiac & pyloric keep food in stomach) – Muscles in stomach wall contract rhythmically (mix food with gastric juice = secreted by stomach wall) – Gastric juice = optimum pH of enzymes (pH2. 0), kills most bacteria, peptidase enzymes = protein > polypeptides Pepsinogen (inactive) = activated by HCl to active peptidase enzyme – Mucus = form lining (protect wall from enzymes & acid/assist movement) – Food leaves as chyme – Purpose of HCl = optimum pH for enzymes, kill microbes, activate pepsinogen (pepsin) Gastric glands = peptic/chief cells (p epsinogen = inactive until HCl), oxyntic (secretes HCl) & goblet cells (mucus) Small Intestine = duodenum (first 20cm) & ileum Bile = produced in liver, stored in gall bladder, into duodenum via bile duct. = no enzymes. Bile salts = emulsifying lipids (lowers surface tension = globules – droplets [surface area]) = neutralise acidity = exocrine glands in Pancreas via Pancreatic duct. = Contains enzymes. Trypsinogen – Trypsin (Enterokinase) = Endopeptidases (protein > peptides) Pancreatic Amylase (starch > maltose) Pancreatic Lipase (lipids >fatty acids & glycerol) Pancreatic juice Walls of duodenum = Brunner's Glands (secrete alkaline juice & mucus) – correct pH & lubrication/protection Enzymes secreted by cells at tips of villi (Crypts of Lieberkuhn) Maltase = Maltose > 2 Glucose Sucrase = sucrose > glucose & galactose Endopeptidases/Exopeptidases = polypeptides > amino acids Endo = quaternary/tertiary – smaller polypeptides. Exo = peptides – amino acids Absorption Ileum adapted†¦ – Long BY2 revision Page 3 – Long Lining folded = large surface area Villi = finger like projections Epithelial cells = surface of villi (microscopic projections – microvilli) Large number of mitochondria = lots of energy required Glucose & Amino-acids = epithelium of villi (diffusion & active transport) into capillary network – hepatic portal vein to liver Fatty acids & Glycerol = lacteal (blindly ending lymph capillary) – lymphatic system into bloodstream (thoracic duct) Fatty acids, Glycerol & most vitamins = diffusion through epithelial cell membrane Glucose, Amino acids & dipeptides = need ATP (energy) – co-transport (Na+ ion) Dipeptides digested intracellularly-pump ions out and then draws more in – carries molecules in with it. Large intestine – Caecum, Appendix, Colon & Rectum – Water & mineral salts absorbed in colon – vitamins secreted by micro-organisms (vitamin K & folic acid (Vitamin B9) – Faeces = semi-solid condition (undigested cellulose, bacteria, sloughed cells) – defaecation Uses†¦ Soluble food products – bloodstream – tissues (assimilation/provide energy) – Glucose = energy release (respiration)/excess stored (fat cells) – Amino Acids = protein-synthesis. Cannot be stored (deaminated – urea {disposed} & carbs {stored}) – Lipids = membranes/hormones/excess stored as fat BY2 revision Page 4 Structure of the gut 24 May 2011 08:52 Peristalsis = aids movement of food through alimentary canal 1) 2) 3) 4) Ingestion Digestion (mechanical = increase surface area/chemical = enzymes, glands in wall/outside wall) Absorption Egestion Structure of Mammalian Gut – Outer serosa = layer of connective tissue (protection/reduces friction from other organs as it moves) – Muscle layer = inner circular/outer longitudinal muscles = peristalsis – Sub-mucosa = connective tissue, contains blood/lymph vessels – absorption & nerves (co-ordinate muscular contractions – peristalsis) – Mucosa = innermost layer (lines wall of gut), secretes mucus (lubrication & protection), secretes digestive juices in some regions (stomach)/absorbs food (ileum) – Lumen = cavity of gut BY2 revision Page 5 Glands 1) Large glands outside gut – secretions pass through tubes/ducts into lumen Eg. Salivary gland, liver, pancreas 2) Glands in form of cells in sub-mucosa Eg. Secrete mucus in duodenum (Brunner's glands – alkaline juices also) 3) Glands in form of cells in mucosa Eg. Gastric glands(stomach) = gastric juice Crypts of lieberkuhn(in base of villus of small intestine) = enzymes (complete digestion) – maltase = maltose – Sucrase = sucrose – Endopeptidase/exopeptidase = peptides/dipeptides BY2 revision Page 6 Adaptions for nutrition 24 May 2011 09:37 Nutrition = obtain energy to maintain life functions and matter to create/maintain structure (from nutrients) Autotrophic plants Use simple organic materials CO2 & H2O to manufacture energy & make complex compounds (make own food) – provide food for others = producers Green plants build up complex organic molecules eg sugars from CO2 & H2O. Source of energy = sunlight (absorbed in chlorophyll & related pigments) [6CO2 +6H2O > C6H12O6 + 6O2] Use energy from special methods of respiration to synthesize organic food Consume complex organic food material (cannot make own food) = consumers. Take food into bodies and break down by digestion. Usually internal in digestive system. Digested material – absorbed (body tissues – used by cells) Herbivores/Carnivores/Detritivores Dead/decaying matter – no specialized digestive system. Secrete enzymes outside body & absorb. (extracellular digestion). Microscopic = decomposers (important recycling valuable nutrients – nitrogen) – Photosynthesis Plants/algae/ certain bacteria Autotrophic bacteria Animals, fungi, some protoctists & bacteria Most animals – Chemosynthesis Heterotrophic – Holozoic feeders – Saprophytes (saprobionts) – Parasites – Mutualism (symbiosis) Fungi & some bacteria Tapeworm Organism that live in/on another organism and receive nutrition from it. Host suffers harm. Highly specialized. Cellulose Involves close association between members of2 different species. digesting bacteria Both derive some benefit from the relationship BY2 revision Page 7 Reproductive Strategies 24 May 2011 10:08 Life cycle = sequence of changes through which it passes during its life from origin in reproduction until death. Reproduction = ability to produce other individuals of the same species Asexual – Rapidly produces large numbers (identical genetic composition = clone) – Binary fission (eg. Unicellular organisms – bacteria/amoeba) – Budding (eg. Hydra/yeast) – Bulbs (eg. Onion/daffodil) – Runners (eg. Strawberry) – Tubers (eg. Potato) Sexual – Involves 2 parents – Less rapid than asexual – Offspring are genetically different – Fusion of haploid gametes Advantages/Disadvantages†¦ Asexual = lack of variety (adapting to environmental change) = if well suited to environment conditions, large numbers of successful type built up quickly Sexual = genetic variety (adapt to environmental change) = development of resistant stage in life cycle (can withstand adverse conditions) = formation of spores, seeds, larvae = dispersal of offspring. Reduces intraspecific competition – enables genetic variety to develop as required. = more chance of mutation (complexity of process) Production of Gametes Diploid = body cells (mitosis) Haploid = sex cells/gametes (meiosis) Haploid Sperm + Haploid Egg = Diploid Fertilized Egg Zygote formed – mitosis to grow Male gamete = small& extremely motile Female gamete = large/sedentary (presence of stored food) Mammalian eggs have only enough to survive until formation of placenta External Fertilization – Discharge gametes directly into sea/freshwater – Considerable wastage = eggs may not encounter sperm – Vast numbers of gametes produced – Frogs – joining of sperm/egg assisted by coupling. Male rubs hind legs on female for her to lay eggs, he immediately releases seminal fluid over them. – Amphibians usually terrestrial, must return to water to breed = external fertilization Internal Fertilization – Occurs inside body of female – Requires intermittent organ to introduce sperm to female's body – Less chance of gametes being wasted BY2 revision Page 8 – Less chance of gametes being wasted Allows male gamete to be independent of water for movement Fertilized egg can be enclosed with protective covering before leaving female. (Animals lay eggs) Embryos develop within parent and derive nourishment from her (placenta) = greatest adaption (mammals) Development of Zygote – Usually outside body – easy prey for predators – Many eggs produced to ensure some survive – Insects, internal fertilization (ensure sperm deposited in female's reproductive tract), external development (laid on food source) – Evolution of amniote egg (reptiles/birds) = fluid filled cavity, surrounded by membrane & protective shell, encloses embryo within yolk sac – Birds incubate eggs = embryo development (external) – Mammals = young retained in mother's womb/uterus (no shell). Embryo nourished from mother's blood supply (placenta). Born in relatively advanced state of development. Parental Care – Very little usually – Stickleback looks after eggs, defends territory, fans eggs to provide o2 until they hatch – Birds & mammals = provision of shelter, feeding, protection from predators, training for adult life. More parental care provided = fewer offspring produced Unisexual/Hermaphrodite â₠¬â€œ Plants = male and female gametes produced in one individual – Every individual capable of forming fertilized eggs – Possibility of self-fertilization = inbreeding (reduced genetic variability) – No intromittent organs – special techniques evolved for transferring gametes Success of Insects – Mainly terrestrial – Depend on these to pollinate crops – Competition for food also – Carry disease eg. Malaria Incomplete Metamorphosis (eg. Grasshopper) – Egg – Intermediate form = nymph (resembles adult – smaller) – Hard exoskeleton – doesn't grow, must shed skin/molt – Does this a series of times until it reaches full size Complete metamorphosis (eg. Butterfly/housefly) – Egg – Lava (specialized for feeding/growing) – Pupa/chrysalis – complete change – Emerges as adult specialized for dispersal and reproduction Plants Simple plants = algae (seaweeds = confined to sea) & mosses & ferns (confined to damp areas -male gamete can swim to egg) Successful plants = conifers & flowering plants (independent of water for reproduction – able to colonize land) Flowering plants = morphology (Efficient water carrying xylem vessels & reproduction) – Male pollen grains with hard coat = withstand desiccation (transfer to stigma of female – affect by environmental conditions) – Plants & grasses = small inconspicuous flowers – pollen carried by wind – Brightly coloured flowers & scent = attraction by insects (carry pollen to stigma) BY2 revision Page 9 – Brightly coloured flowers & scent = attraction by insects (carry pollen to stigma) Male gametes travel through pollen tube to female part and egg (no longer needs film of water to reach egg) Fertilised egg develops into seed containing food store (with resistant coat) Key to success = relationship with animals (attract insects which pollinate/seed dispersal) & enclosure of eggs in ovary and evolution of seed – Can survive adverse conditions Flowering plants are so successful because of†¦ – Short interval between flower production and setting of seed (few weeks) – Seed with food store = embryo develops until leaves are produced above ground (photosynthesis) – Seed protects embryo from desiccation & other hazards = resistant coat – Leaves deciduous & succulent = decay when fall to ground – humus produced. (rapid recycling of ions for reuse) BY2 revision Page 10 Translocation 24 May 2011 14:41 = transport of soluble organic materials, sucro se and amino acids (bi-directional movement) Products of photosynthesis = phloem. From source (area that makes the photosynthate – sucrose = leaves) to sink (where needed for growth/storage) Phloem structure – Sieve tubes (adapted for longitudinal flow of material = no nucleus ,have pores =sieve plates allows rapid flow of manufactured food substances) – Companion cells (linked to sieve tubes by plasmodesmata with fibres & parenchyma, dense cytoplasm = lots of mitochondria – lots of metabolic activity, large nucleus – controls activity) – Phloem fibres – Phloem parenchyma â€Å"Mass flow† hypothesis – There is a passive flow of sucrose from source to sink – Does not account for observations such as movement in opposite directions at same time & rate – Other hypotheses = diffusion, cytoplasmic streaming Evidence for translocation†¦ 1) Aphid (greenfly) – Feed (proboscis), leave embedded proboscis, liquid = sucrose & amino acids. Sectioning stem shows proboscis is in phloem sieve tube 2) Ringing Experiments – Cut off ring of bark (including phloem, leave xylem), immerse in water. Swelling above cut = accumulation of organic solutes, cannot continue. Will eventually die 3) Radioactive isotopes – Carbon-14 supplied to plant – fixed in glucose upon photosynthesis (14C6H12O6) – Stem cut, x-ray = phloem contains radioactivity BY2 revision Page 11

Education at Risk, a Nation at Risk

Education of the young has been part of society’s needs of the modern times. Colleges and universities that offer quality education most often implies high financing.And though our world pushed to modernization, it seems that education has been deteriorating. Despite the fact that education in our country has long proven to be superb, it is not a justification in its dwindling quality. It is affirmed that education of the youth help them in future careers and endeavours but slowly, the education system has become less significant to us.That we have compromised this commitment is, upon reflection, hardly surprising, given the multitude of often conflicting demands we have placed on our Nation’s schools and colleges. They are routinely called on to provide solutions to personal, social, and political problems that the home and other institutions either will not or cannot resolve. We must understand that these demands on our schools and colleges often exact an educational cost as well as a financial one (A Nation at Risk, 1983).The above quoted article from the National Commission on Excellence in Education dates back decades ago and yet, it states a present reality in our society.Though our educational institutions call to educate the youth in academic matters, our society today imparts too many varying demands from these institutions. Education should not begin in our schools and colleges. One’s learning should be initiated from the family and the environment a child lives in. And yet, it is not unexpected that some of us demand these responsibilities from our educational institutions.Personal, social and political concerns that seek to develop each man are solely handed over to school professors and teachers that actually do not have time for each student in class. Truly, these concerns are part of classroom discussions and curriculums; nevertheless, they should first be encountered by the youth at home.Schools and universities only act as guides in a person’s quest for his principles. These schools and universities are not sole educators but are team members in shaping our future citizens. It does not mean that if we pay for the education we get, we will leave all the responsibilities to them. No. they are just our collaborators in teaching the youth the values we wish them to have to face the challenges of career life, nationalism and personal identity.Our increasing dependence on the learning of our youth to colleges and universities must be one of the many causes of the decline in quality of our country’s education. And so, though we have much to be proud of from the history of achievements our country had, we are faced with a predicament which should have been eradicated in advance.Horace MannHorace Mann, an advocate of equality in terms of education, would probably uphold that the various extra demands of our people on these institutions are just fitting. Since he believes in the extended education al curriculum in public schools, he would rather include personal, social and political concerns in the education of the youth. It might be an extra baggage for the educators but it is his way of shaping a person’s identity. Even so, he upholds the educators in high esteem. And though he purges them with great responsibilities, he regards them justly.Mann believes that â€Å"education prevents both the revenge and madness† of society (Mann, 1848). He believes that to prevent tyranny as well as poverty, education should be granted with higher significance. Total civilization comes with education and so, educators should have that sense of significance with the work they do to help uplift man’s development.Educators are makers of civilized men. Thus, it is only fitting that all areas of a man’s identity be taken up by the lessons one encounters inside the classroom. The thought of degradation in the quality ofeducation we have today might somehow depress Ho race Mann in his quest for equality and justice.

Irish Culture Essay

My first encounter with Ireland and its culture was rather trivial. I saw some Irish dancing and was fascinated by its rigor, energy, and emotional charge. I am not a dancer myself but Irish dances that I saw on TV made me want to get on my feet and start tap-dancing. Unfortunately, at our English classes at school we mostly study the history and traditions of Great Britain. We have not had any special lessons devoted to Ireland yet. I was surprised to learn that the Emerald Isle is a unique country with its own special culture, traditions and even its own peculiar and mysteriously sounding Gaelic language. The first things I learnt about Irish culture made me want to explore more about this enchanting land of poets, musicians, dancers, saints, and scholars. Not only did I learn about Irish jigs and reels, but I also found out about great Irish poets, writers and playwrights, traditional music and songs, world famous musicians of Irish origin, St Patrick’s parades and parties. I have discovered to my own surprise that here in Russia I have been surrounded by Irish culture without even realizing that it is Irish. I have learnt a new word â€Å"craic† which has no equivalent in the English language. Craic† is a mixture of fun, entertainment, and enjoyable conversation. I suppose that this word alone can explain the nature of the Irish national character and be the answer to the question why Irish culture is so popular around the world. I suppose that the international popularity of Irish culture is closely connected with the history of the country and the national identity of its people. Firstly, the Irish have traditionally been â€Å"one of the biggest wandering peoples of the world. † Due to mass emigration many countries got familiar with Irish cultural traditions a long time ago. Thus, Irish culture is not confined to one piece of land. Secondly, Irish culture is adaptable, pliant, and flexible because of the openness and friendliness which run in the blood of the Irish. For example, anyone can participate in St Patrick’s parades or try Irish dancing. Other reasons of the world-wide obsession with the Irish culture are its beauty, freshness and originality. ‘Original’, ‘fresh’ and ‘beautiful’ are the words which come to my mind when I read a poem by W. B. Yeats, watch an Irish dance, see a colorful St Patrick’s procession or listen to Irish traditional music. Despite its international popularity Irish culture on the whole retains its uniqueness and authentic spirit. That is why people around the world still see Ireland as a spiritual reservoir and turn to Irish culture when they need to feed their souls. In the era of globalization when boundaries between countries and nations are becoming more and more blurred, it is really important to preserve and promote your own culture. The Irish are very good at it. They have managed to make their culture a visiting card. Although some people say that Irish culture is losing its authenticity and is becoming commercialized, I don’t see it that way. By weaving traditional elements into popular culture the Irish make more people familiar with their country. For instance, some popular songs by U2 contain traditional Irish melodies. Songs like ‘In the Name of the Father’, ‘Tomorrow’, or ‘The Ballad of Ronnie Drew’ are really Irish despite their rock and pop style. The Riverdance and shows of Michael Flatley revolutionized Irish dance culture by introducing new elements, colorful costumes and even adding features of other dance cultures into the shows. Some people might argue that it was a change for the worse, but this was the change that made Irish dances so extremely popular around the world. Being a commercial event, St Patrick’s parades popularize Irish traditions among people of all nationalities worldwide. Our first encounter with Ireland may start with a popular thing like a Riverdance show, a traditional song â€Å"Whisky in the Jar†, or a green shamrock leaf on St Patrick’s Day. But these are the things which make us want to explore more. That is why I would like to finish with the Irish slogan, ‘Eire go Brach! ’ Ireland Forever!

Special Populations Health Care Essay Example | Topics and Well Written Essays - 2000 words

Special Populations Health Care - Essay Example utilizing the resources of Department of Health and Department of Education, involving primary and secondary school administrations, engaging the misinformed parents, and signing up well known and relatable role models. According to the latest statistics from US Census Bureau, the amount of population between 10 to 24 years old is approximately 1,726,672, which shows that there are more than a million individuals above the age of 10, and below the legal drinking age of 21 years old (US Census Bureau, 2010). Furthermore, according to the research conducted by the Department of Human Services of New Jersey, an alarming fact discovered is that the local youth have professed â€Å"experimenting with alcohol at a rate above that reported nationally.† Also, it is found that the average age, among the youth, of consuming alcohol for the very first time is 11 years, whereas, around 407,000 individuals are committing underage drinking every year (Division of Addiction Services, 2008). Additionally, other surveys of New Jersey high school students have indicated that around 72.1 percent have consumed a kind of alcoholic beverage at some instance in their lives, and also, female students reported to an increased underage drinking as compared to male students. At the same time, the white and Latino students professed to a greater alcohol use as compared to African American and other ethnic students (Division of Addiction Services 2009, p. 15). In an another study conducted within the high schools, by the New Jersey Department of Education, it was found that the alcohol related incidents, such as violence and vandalism, have increased 14 percent between the years 2007 and 2009 (Hendricks 2010, p. 8). In addition to the large number of the youth involved in alcohol abuse, the massive cost associated with this societal dilemma is definitely an eye opener. According to the latest research conducted by the Pacific Institute for Research and Evaluation, in collaboration with

Blue Ocean Strategy Research Paper Example | Topics and Well Written Essays - 500 words

Blue Ocean Strategy - Research Paper Example To break out of red oceans, the blue ocean strategy postulates that companies must break out of the accepted boundaries that define how they compete. These systematic boundaries are identified by the six paths framework as: industry, strategic groups, buyer groups, scope of product or service offerings, functional-emotional orientation of an industry, and time (â€Å"Blue Ocean Strategy,† 2011). The first path that we see Wii utilized to create a blue ocean was the buyer groups. Microsoft’s Xbox 360 and Sony PS3 rely on users as their primary focus. For this reason their strategies are geared towards increasing their users-experience through constant innovation and deployment of new technologies such as HD, graphics and so on. On the contrary, Wii opted to target purchasers and influencers e.g. parents and physicians through development of products that everyone in the family can appreciate. This has increased the likelihood of say, parents, purchasing Wii games instead of PS3 or Xbox 360 for their children. The second path that the Wii utilized to create a blue ocean for itself is the product scope. While the two major gaming competitors stuck to the belief that gaming was a preserve for a certain age group, the Wii expanded its market by developing products that could cut across all age groups from pre-teens to senior citizens. The Wii Healthy category of games comprises of products that grandparents and grandchildren could easily play with together.

Data wharehousing Essay Example | Topics and Well Written Essays - 2500 words

Data wharehousing - Essay Example This is a concept of OLAP mainly used when it’s being related to data mining. This is possible through pre-aggregation, an aspect of relational databases in that they not only facilitate the creation of tables, but also can manipulate them together with the data they contain. Pre-aggregation in connection with OLAP basically explains how factual information, in this sense data that has been collected can be used to come up with probability estimations used for distribution (Kozielski & Wrembel, 2009). Data mining is a concept that has been confused with OLAP for a while. These two terms, though different have been used synonymously to refer to the other. However, these are two similar but different terms when viewed critically. Data mining is a data knowledge discovery mechanism that aims at identifying, from a pool of data, sets of useful and important data that may have been ignored, classifies the data in relation to the whole set and associates it to its class. This data a nalysis concept focuses mainly on dividing the existing data into small manageable sets, as regards their relationship. On the other hand, OLAP focuses on addition of more data to a pool that is already in existence. This is made possible since OLAP gives data a multi-dimensional approach, creating summaries in different dimensions that are then added up to the original data, making it more comprehensive A general definition associated with OLAP is that which describes it as software put in place to create a platform in which the user interacts easily with a complex database accessed online and is able to prompt the database for a service which n return provides a report in a form understandable to him/her. However, there are many other definitions attached to this concept. It’s amazing that some people even used the full name of the acronym as a definition, but this is entirely questionable since it does not give gist of what the concept is or what it refers to. The most com monly used definitions are listed below (Becker, 2002). First, there is what we can call the popular definition. It’s a precise and interesting definition of OLAP as set of many spreadsheets in a package. This is just but a typical meaning, mainly used to people who have little or no knowledge in information technology. Its true OLAP is used in spreadsheets to enhance the view of data, but it’s certainly not a set or group of spreadsheets. Secondly, OLAP has been popularly defined as a report given or presented with some extra information attached to it. This is adopted from the way OLAP works, by presenting data from different dimensions with diverse interpretations. In this case, OLAP allows the database users to scan through different perspectives of an issue. Lastly, there is the technical definition attached to OLAP. It describes on-line analytical processing as enhanced, friendly browsing of similar, multidimensional data. When a user prompts a query to the softw are, it may take up to less than a minute to give an output, hence its attribution as a fast software. It also does this in levels with a set of new data for each level. MegaSave uses data marts, tools used in presenting data and facts in multi-dimensions. The best definition, therefore, for such a scenario is the last one. This is so because so far,

Creative non-fiction project Essay Example | Topics and Well Written Essays - 1000 words - 1

Creative non-fiction project - Essay Example g and hopping in their shiny school shoes, not minding how their backpacks bounced behind them, and their shrill laughter and non-stop chatter were carried by the warm breeze towards my barely open window. Even the neighbor’s golden cocker spaniel barked vigorously, like it wanted to join in the school kids’ happy disposition. They were smiling, noisy, and happy. I somehow felt a tinge of pricking pain piercing through my chest. I missed that feeling of being able to laugh carelessly again. The more I let my eyes wander, the more I absorbed things I used to merely look at, yet never see, before. Inside our backyard, a tall, sturdy tree used to hold my rope swing set. It is still there, reminding me of those times when I scraped my elbows and knees because I jumped off the swing set before it stopped swinging. Something beautiful yet mournful began to tug at my memory. I then again remembered the very reason why I was sadly looking out my window. My grandmother passed away, and it had only been hours ago at that time when I last glimpsed at her shiny casket. Somehow, I remembered how that shine was not able to look beautiful in my eyes. From that time to now, my life was totally altered. It had been several years since it all started. I was just 14 that year, turning 15 in a few months, and winter was fast approaching. Grandma lived in her house alone, and it was far from where we were staying. We all knew that she would have a hard time by her own especially when winter pounces in. However, we were all too busy moving on with our individual lives†¦my mom and dad with their jobs..and me with school. I could almost hear the weariness in her voice when she called to invite me over to stay during winter break. How could I have said â€Å"No.† when she had been my favorite person when I was a lot younger? Wasn’t she the one who picked me up from that ground every time I fell of the swing set? Wasn’t she the one who made sure the wounds would not leave

Health Care Organization and Random Drug Testing Essay

Health Care Organization and Random Drug Testing - Essay Example Consequently, the use of drugs such as alcohol and others like opioids that may impair the capacity of performance and accuracy of service delivery is something that is not tolerated with the ethics and professionalism code. Another important arguments made is that there is no difference between the health care professional that sells the drugs meant for patient and the one that uses the drugs. The latter is dangerous to keep because he or she deplete the stock and also impair the capacity unlike the former who only deplete the stock (Follin, 2004) On resolving whether the random drug testing should be imposed, the strategy, to bring a stop, is very essential. The act is first unethical and unprofessional. The use of drugs such as alcohol and others meant for patients is an issue that is against the core value of any rational hospital. The health professionals that use the drugs can easily be identified by their colleagues because the use of addictive drug is a habit that can be easily identified without carrying out lab tests. It is believed that carrying out random tests will step on the privacy of the medics and the respect that can demoralize them. According to Fevre & Robinson (2012) a demoralized medic is worse than an addict who is intoxicated with the addictive drug while in service. In summation, the use of drugs such as alcohol while in service for the patient is unethical and unprofessional. The safety of the patient should be a priority. The addictive drugs usage is a habitual act that can be identified by colleagues and warning done before an action is taken. Use of the random testing will demoralize the medics making their performance low just as the addictive

Argument essay Example | Topics and Well Written Essays - 250 words - 2

Argument - Essay Example This is therefore quite unfair more so for the â€Å"less genius† children who desire to further their education in a bid attain diplomas and degrees. It is, however, worth noting that due to the hardness and difficulty of the exam, people studying in China have become more smart and innovative since it increases the children’s thinking capacity. In U.S, however, education system is based on student’s abilities and talents. Equally important, studying in the US to gives me the chance expand my horizon since it gives me a wide pool of opportunities more so when it comes to the job market. By learning in the US, I have been able to learn numerous things in life that I could not have imagined or done if I had decided to learn in China. The US is among the most developed countries, and it possess a highly innovative and technologized systems across its various industries. Studying in America therefore enables me to gather the knowledge needed to operate these systems and thus subsequently expanding my horizon. However, I think one can also expand their horizon while learning in China too since China is equally highly industrialized and technologized. Conclusively, I am for the opinion that studying in the US is a good idea since it has numerous advantages and opportunities. In fact, I think that studying in the US enables me to interact with people of various diversities thus enabling me to have a diverse mind. Therefore, I recommend that other educational systems, the Chinese education system to be precise, to follow the American example. I also think that studying in the US increases my chances of attaining high level education from well-established universities, since I can learn numerous new concepts due to diversity. Therefore, I think every person who has the will and ability to study in the US should take that opportunity without a moment of

Gender Differences in Leadership Essay Example for Free

Gender Differences in Leadership Essay 1. What are the strongest points of the paper? What do you consider are its main contributions to the field of global people management? The paper itself has a very interesting purpose with the research question of whether women leaders are â€Å"really† different from men leaders. The paper gives a very good introduction in particular giving the literature review in order to get familiar with some basic knowledge on the topic of gender differences in leadership. The review focus combination of stereotypes and cultural differences stresses out well a new viewpoint of the problem, which has not been discussed that widely in prior research. Also the introduction of the new notion â€Å"stereotype threat†, which actually might be viewed as a partly solution for women sometimes performing not as well as they possibly could is an interesting point for management issues in reality. However the strongest points of the paper are evident. The introduction of the new concept of three paradigms: gender-blind view, gender-conscious view and that perception creates reality are not only the strongest points of the paper, but in my opinion can also be considered as contributions to the field of global people management. This new paradigms could possibly change the perception of companies, maybe companies will use the tool of the three paradigms to analyse their own structures and be able to improve situations for women, giving them more possibilities. 2. What are the weakest points of the paper? (E.g. What arguments are not strong enough? What is not clear? What is missing?) Potential drawbacks are that paradigms are introduced, but not sufficiently discussed within. Also the paper gives good examples where they can be found, it could show more proof for their existence apart from summarising and drawing them together from old findings. Also the paper does not find a good way how to manage diversity and to capture it. It does not manage the combination of cost-effective coordination and senility to local cultures. Likewise the paper focuses on only two firms, â€Å"Fuel† and â€Å"Excel†, which are very different in how they â€Å"fill† out the paradigms. In my opinion two firms are not enough, more firms should be reviewed for example in a questionnaire in order to give more support for the findings. Correspondingly the paper does not include a focus on multinational firms, which is very important not to leave out in times of globalization. The last criticism is that the paper is unable to answer it’s paper purpose question à ¢â‚¬Å"what is the real difference between men and women in leadership†. 3. How could the author make the paper better? When writing the literature review the could build up the research papers and the gained knowledge chronologically and not going back and forth in the research dates. As the paper is missing some numbers, the technique of hypothesis could have been used, a bigger number of companies questioned in survey style as then a quantitative analysis would exist as evidence for whether the problem exists in real life and whether paradigms can be implied in the general management world. Also the point of view of women on this topic would be very interesting and more expedient. How do women perceive the gender different initiatives, what would they like as support? Also the paper as already mentioned should include a focus on multinational firms and include those in a study.

The Difficulties Single Fathers Face

The Difficulties Single Fathers Face Once a famous German caricaturist and poet Wilhelm Busch (1832 1908) said that becoming a father isnt difficult, but its very difficult to become a father. This phrase can be interpreted in different ways, but at the moment it is as topical as never before, since essential social changes and shifts state the question of parenthood for men in absolutely new light. The matter is, more and more men these days find themselves single fathers, and have to face new reality, while the society is not actually ready to accept them appropriately. This problem is attracting more and more attention of public and specialists, but still there is not enough research of the matter and fathers still essentially take pains to prove their rights: single dads remain a poorly represented group in official statistics, government programmes and communities, as Sandra Gruescu (2010, p. 19) states. The topicality of the subject and its narrow presentation in scholar studies has motivated us to focus attentio n on this problem in order to find out whether single fathers really face many problems in child fostering and their personal life and what ways out there are for them to make things better. In this way the object of out research is lone parenthood and single fatherhood of London is the main subject. To move from the first to the latter we are going to use deductive method. Apart from that, as for methodology to be applied, we shall use surveying and case study in order to get information at first hand, content-analyses in order to understand what has already been found out and what the probable holes of studies are. To provide that, we shall study local, national and partly international press, official reports and local overviews. Then we shall be able to sum up theoretical and empirical data and make conclusions on what are the modern conditions for men growing children on their own. In this way, tasks we are going to undertake are the following: to study general materials on single parenthood; single out the issue of lone fathers, especially those living in London; synthesize fragments gathered and give critical summary; involve the comments of interviewees; and finally to tally up the situation. SINGLE PARENTHOOD IN TERMS AND FIGURES In this paragraph we are to find out what is single parenthood, where it takes its roots and where results in. On the whole, as for the terms, a lone parent is one who takes care of a child (or children) all on his or her own, without participation of another parent within home. Divorce or death of the spouse are among the main reasons of growing a child alone; adoption, abuse or abandonment, and artificial insemination. A parent who takes a conscious decision to grow up a child on his own from the very beginning is also called a choice parent. All in all, as calculated in 2009, there are 1.9 million sole parents in the UK. In total they bring up about three million children. By Labour Market Review (2006), cited by Charlotte Philby (2010), each forth family is a family of one parent (among them about 8-11 % are male). Among those, 13% are under 25 years of age. Those parents who stay with the child most of the time are called primary carers, and those who just visit children are called secondary carers. By statistics, more than 90 percent of primary carers in the United Kingdom are women, and it goes without saying that all the assistance from the government, tax credits and benefits are given to them. Still, as the General National Survey has shown, more than a half of single-parented households live below the poverty line. On average, it takes about 600 pounds per year to raise a child, and about 10,500 pounds to grow a child from birth till full age. CALAMITIES TO OVERCOME Except financial, there is a great number of long-term social and psychological, physical and mental health influences on both ex-spouses and children after divorce. It may be destructive or loyal, and the strength of loss depends on the extent of intimacy between children and each of the parents, on parents characteristics like age, education level, occupation and income, on relations left between parents, on visitation rights prescribed for the secondary carer, and the circumstances children grow in on the whole (Coombs, 1991). Half-abandoned children are more like to experience behavioural problems, and Augustine Kposawa (2003) adds a schedule of main consequences: higher risks of clinical depression, greater need for formal psychiatric assistance, and higher rates of suicide among men. As any other vulnerable group, sole parents receive a kind of support from the government, from non-profit organizations and on-line resources as well. These days there are more and more forums, web-sites, social networks, blogs and professional advice services where sole parents can share their problems and look for decisions together. A good example is the Gingerbread National Charity for Single Parents. The development of such programs seems to be obvious for the first sight, but in reality the issue is not so well-defined. The matter is, there is much debate over single parenthood: on the one hand, government assistance is a normal social practice. But on the other hand, it turns out that the government itself is supporting the phenomenon which is against the society itself while sole parenthood doesnt correspond to the traditional moral values and family standards; and it seems, there can be no sound society with unsound families. Thus present British Prime Minister Mr. Cameron is rather to encourage marriages by  £150 tax breaks than take care of objectionable sole parents living under the breadline (Rowling, 2010). The police of the Tories has naturally risen a good deal of criticism: Do you not think that is discrimination against someone who pays their tax bill every month, and someone who is going to find that my friend down the road who has managed to find Mr Right gets aw ay with paying less tax than I do, just because I am raising my children by myself? (Tapsfield, 2009 p. 15). Single parents are pushed to feel second-class. But why are we now there? Through the 20th century the amount of households with single parent was rather low, but during last three decades figures began to grow rapidly. Basically, these changes have their historical, social and demographic reasons. Firstly, women began to feel more confident in their rights and freedoms, and more and more of them came to the conclusion that living on their own has more advantages than living in an unhappy wedlock. They began to receive more support from the official structures and the attitude of the society became not as reprehensible as it used to be. Fresh figures show that 57 per cent choose the single life as they say it is more rewarding, Steve Doughty (2010, p. 30) writes. Meanwhile the civilized world has been experiencing crucial shifts in gender social roles. More and more women prefer career to family and under the tension of business life more and more women are loosing their maternal instinct while paternal one on the contrary has been gaining force. FATHERS IN THE MIDDLE Now we are to sharpen our attention at a narrower group presented by sole fathers. It was investigated that more than 3 million men are classed as economically inactive, living on benefits or the black economy (Arendell, 1995 p. 112). It is also an example of social changes, but still many of men either successful or not very face obligation and will to be primary carers for their children: Active involvement in the day-to-day lives of children is no longer the exclusive domain of mothers. Fathers are being encouraged to build closer interpersonal relationships with their children. As a result, many fathers have found that being a parent is richly rewarding and they are not willing to assume the role of weekend father just because a marriage relationship has soured (Bartz and Witcher, 1978 p. 2). According to the statistics, family heads are divorced or separated fathers (8.4 per cent), never-married fathers (1.5 per cent), and widowers (0.9 per cent). In the United Kingdom there are 210,000 male sole parents (8-11 %) rising up 280,000 dependent children. In London specifically, by National Statistics (2006), there are 16,473 households headed by single males. In other words, each ninth single parent is father. Meanwhile there are 180,366 male secondary cares also identified as absent fathers. In the borough alone there are 5,710 households headed by single parents with 934 children living with their fathers (Ehrlich, 2008). SPECIFIC DIFFICULTIES FACED BY SINGLE FATHERS It goes without saying that lone fathers face generally the same problems as lone mothers, but there are some particular troubles too. First and foremost, it is already difficult to prove their right on the child, as courts traditionally favour mothers. And even if men win, their exes often dont leave them in peace, as they are more natural to be with a kid. The society has much less trust and approval for men. Nevertheless, men can be essential for developing language skills, developing awareness of rules and boundaries and being a positive male role model in the childs life (Risman, 1986 p. 96). Further on, it is considered that financial problems are less spread among men, but in fact they receive much less flexibility at their workplace and face negative attitude of supervisory. They are taken as awkward while it is not commonly for fathers to be so involved and faithful. Meanwhile is the most important thing for a child, his or her love cant be bought with money, therefore a lone father has to balance between financial obligations and emotional relations. If they go straight back to work, theyre treated like bad parents; if they dont, theyre called benefit scroungers, Jane Ahrends explains (Philby, 2010 p. 15). Moreover, it is not a secret for a father that a child needs a woman to see a female behavioural model and to provide care, but it is rather hard for a lone father to get married again: a woman is likely to avoid a man with children, as their mother is often there too; maybe, the girl doesnt like children at all or wants to have her own first and better to share all those first experiences with her husband; she doesnt want to be initially judged as a mother and she doesnt want to share her husbands attention with someone else (Miller, 2007). Yet, for sole fathers on the first place are the problems with their exes with whom, for the sake of their children, they should co-work effectively despite all misunderstanding. Then, what is even more striking, sole fathers should be ready to cope with emotional distress of children who can have low self-esteem, feel different from others and consequently have problems with socialization. Especially it is hard when a man fosters a girl. He should keep his healthy guides status and escape equality in order to keep balance. Its easy to become angry and depressed when loving and committed fathers have to prove they are just that, Peter Ehrlich (2008, p. 18) admits. THE MEANS TO WITHSTAND In fact, there are special support groups for those who bring their children alone no matter female or male. But certainly there are more women who into the bargain feel more natural and free to express their feelings and emotions. For most of men that method is not available. Versus the indifference of the officials, single fathers are now actively uniting their forces. And one of especially active representatives of this social group, William McGranaghan has recently organized a special service Dads House within the project Homes for Families and Fathers (Hoff) specially for their companions-in-arms where they can get in touch, spend time with their offspring and acquire some useful skills like cooking. By summer 2010 it has had already 1,400 active members. There are other support groups as well, e.g. the one of Pete Wrighton, where men learn to talk and to be honest. CONCLUSION So, the things are not as bad as they may seem on the face of it. However, we have found out that the topic strongly needs further consideration. The attention of employers and officials should be attracted to the issue, and social stereotypes should be discarded gradually. On the one hand, it is hard to disagree with the governmental policy intended to encourage healthy family structures which seem to be more reliable and stable. But the matter is, that is a deceptive impression to date, and, if accepted and assisted, lone fathers are able to bring up much healthier, much happier and much more perspective citizens of future, than two-parented, but unhappy and destructive families where a child receives no care but copies wrong behavioural models. These issues should be deeply learnt by family psychologists and scholars as well. All in all, single fathers problems in todays London are many, and they should be thoroughly examined by sociologists, demographers, psychologists and pedago gues. In that way they are possible to be solved and unloaded.

BPR Microfinance Institution in Indonesia

BPR Microfinance Institution in Indonesia Chapter 1   Introduction 1.1  Background It is believed that microfinance helps low-income people alleviate their life from poverty circumstances in many developing countries. As an economic instrument which has been raised in the middle of seventies, the thought of microfinance came up from the fact that low-income people difficult to access financial services from commercial or formal banking institution which may disadvantage them or even not including them as potential clients. The reason is that, which often we may hear for several times, low-income people lack of collateral for guarantee some amount of money they want, and in the commercial financial institutions point of view it is costly to serve them due to unequal cost-benefit and high transaction cost: low-income people tend to borrow in small amount but the commercial financial institution maintain high cost for processing and assuring their repayment. These costs are not proportional with the amount of loan given to them. A formal microfinance institution existing in Indonesia is the Bank Perkreditan Rakyat/BPR (People’s Credit Bank or Rural Bank)[1] which is established by the Banking Act. The main objective of the BPR is to serve small businesses[2]. It means that BPRs can enhance their role and contribution in the development of micro and small business[3]. In Indonesia, like other developing countries, micro, small and medium enterprises (MSMEs)[4] play significant role in economy. The role of MSMEs can be viewed as an important factor for Indonesia to recover from economic crisis and to lead economic growth and employment. Statistics Indonesia (Badan Pusat Statistik/BPS) and Ministry of Cooperatives and Small-Medium Enterprises reported[5] that, the average contribution of SMEs’ share to total GDP Indonesia from the period of 2001 2007 was 60.77%, while at the same period large enterprises (LEs) contributed 39.23% which can be seen in Table 1. Source:  Statistics Indonesia (BPS) and Ministry of Cooperatives and Small-Medium Enterprises (various editions) In terms of employment creation, MSM enterprises have passed over large enterprises. Table 3 provides worker absorption by types of enterprises. It shows that small enterprises have absorbed approximately 91% of employment during 1999-2006, while medium and large enterprises have provided by 5% and by 4% of employment in Indonesia. Source  : Cooperative Statistics cited in Nazara and Gitaharie (2008), edited by author Based on the data which are discussed in the previous paragraphs, it can be concluded that micro, small and medium enterprises (MSMEs) have a big role and a potential as a driver of the domestic economy. Nevertheless, they still have several constraints, for instance, product market accessibility, lack of management skills, and limited access to financial sources, especially from commercial banks, to meet their demand for finance. A survey conducted by Statistics Indonesia (BPS) concluded that the biggest problem for micro and small enterprises is lack of capital for financing their business.  The survey recognized that  problem in finance for micro enterprises was accounted for 40.48%, while for small enterprises was 36.63% (Wardoyo and Prabowo 2003: 31). In Indonesia, small and medium enterprises can acquire their finance from several sources. According to Nazara and Gitaharie (2008) which refer to statistical data from BPS 2000; 82,960 SMEs got their finance from non banking financial institution; 385,383 SMEs got their finance from banks; and 661,630 SMEs got their finance from other sources. It is clearly from the data that most of SMEs rely on sources other than formal institutions. These figures were not taking into account for SMEs which have no legal entities (Nazara and Gitaharie 2008: 8). From SMEs point of view, they face kinky administrative procedure and also they have to provide collateral as guarantee to get loans from commercial banks. This condition leads SMEs favoring in Bank Perkreditan Rakyat/BPR (People’s Credit Bank or Rural Bank) and other financial institutions which provide simpler in administrative procedures, but higher in interest rates compared to commercial banks (Nazara and Gitaharie 2008: 8). Even though entrepreneurs are burdened with high interest rates, they do not much complain about it as long as they have access to formal credit (Berry et al. 2001 as cited in (Sunarto 2007: 2)). In line with the condition in which SMEs favoring in BPRs, Sunarto (Sunarto 2007: 4) stated that BPRs have several advantages in serving to SMEs, those are: (1) its location which is close to SMEs, (2) simpler in credit procedures, (3) accentuate a personal approach in its services and (4) more flexible.   This paper is focused on the role and contribution of BPR, one of the formal types of microfinance institutions in Indonesia, as the suppliers of funds to different types of enterprises especially to micro and small. The discussion emphasizes on credit allocation delivered by BPRs to the micro, small and medium enterprises. Comparative analysis will be made between commercial banks[6] and BPRs for analytical purposes in two things. Firstly, the comparison in terms of allocation of credit which does not consider other variables playing a role in borrowing, for instance interest rates and so on. The comparative result is not in the amount of the credit disbursed but in the percentage of allocation for each type of enterprise. Secondly, the comparison in terms of performance will be discussed through some indicators. Furthermore, the performance indicators of BPRs will be compared with their criteria which set by Bank Indonesia to see whether those indicators improving or deteriorating. 1.2  Research Objective and Research Questions Research Objective The objective of this paper is to study the role and performance of Bank Perkreditan Rakyat (BPR), as one of microfinance institutions in Indonesia, in financing micro, small and medium enterprises. Research Questions In order to achieve the research objective, this paper proposes research questions as follows: 1.  What is the role of BPRs as supplier of funds to different types of small and medium enterprises, in particular micro enterprises? 2.  What is the performance of BPRs in relation to credit provision to micro and small enterprises? 1.3  Research Hypothesis Bank Perkreditan Rakyat (BPR) was established with the main objective is to serve small-scale business and people in rural areas. Therefore, the first hypothesis is that BPRs are reaching their main objective as supplier of funds to micro, small and medium enterprises as mandated by regulation (i.e., banking act). In order to meet the objectives, it is needed good performances which are reflected from their performance indicators. Therefore, the second hypothesis is that performance indicators of the BPRs have met with the standards which set by the Indonesia banking authority. 1.4  Organization of the Paper This paper is divided into five chapters. Chapter 1 is introduction which contains background of the research, research objective and research questions, research hypothesis, and organization of the paper. Chapter 2 is review of the literatures and analytical framework for the research. Literature reviews discuss about definitions of microfinance and microfinance institution, the approaches can be taken by a microfinance institution in order to serve the clients, the models of microfinance institutions, the types of microfinance institutions in Indonesia and the pyramid of them in relation to potential customers and performance indicators. Analytical framework discusses about the way in which the research will be achieved. Chapter 3 is the microfinance institutions in Indonesia which contains their brief history and recent condition. Chapter 4 is analysis of the role of BPRs in financing micro, small and medium enterprises which contains overview of the chapter, data source for the analysis, methodology of the analysis, some information about commercial banks and BPRs, and analyzing to answer the research questions. Chapter 5 is conclusion.   Chapter 2   Literature Review and Analytical Framework 2.1  Literature Review There are many definitions about microfinance proposed by several researchers and institutions. This paper uses some definitions given by Robinson, Ledgerwood, Consultative Group to Assist the Poor (CGAP), and Asia-Pacific Economic Cooperation (APEC) to describe microfinance. Robinson (Robinson 2001: 9) defined microfinance as small size financial services (mainly saving and credit) given to people who having farm or fish or herd; people who running micro or small enterprises which producing, recycling, repairing or selling goods; people who offering services; people who working for commissions or wages; people who having earnings from renting the land, vehicles, draft animals, or machinery and equipment; and people or other individuals and groups from both rural and urban areas at the local level from the developing countries. Consultative Group to Assist the Poor (CGAP)[7] which uses terminology â€Å"poor people† and Ledgerwood which uses terminology â€Å"low-income clients† pointed out to person who receives basic financial services from microfinance including self-employed people. Furthermore, Ledgerwood (Ledgerwood 1999: 1) stated that definition of microfinance comprises not only in financial intermediation but also in social intermediation. Many of microfinance institutions (MFIs)[8] provide this social intermediation function (i.e., group arrangement, self-confidence development, training to enhance capabilities and to increase capacities in terms of financial literacy and managements) go along with financial intermediation. Moreover, she argued that microfinance is a development instrument and it is not just banking.   Asia-Pacific Economic Cooperation (Santoso et al. 2005: 7) defined microfinance into two understandings. Firstly, it refers to an institution when it designates to an organization which offer financial services or banking products, especially loans to the poor people. Secondly, it uses for different methods or activities which assigned to the poor people in order to access financial services. The poor people usually ask for loans, meanwhile commercial banks do not qualify them for loans. These understandings are close to each other. An institution which provides products for poor people called as microfinance institution. The usage of products (i.e., credits) which is provided by MFIs will be beneficial for poor people in generating more earnings.   Ledgerwood (Ledgerwood 1999: 65-66) stated that the approaches that can be done by microfinance institutions can be divided into two main categories: the minimalist approach or integrated approach. When MFIs do minimalist approach, they only perform functions of financial intermediation, although sometimes they offer social intermediation in limited services. Premise that underlie this approach is a-single missing piece that can be offered by MFIs to the clients in the form of access to credit for them due to the clients are getting less coverage of services from financial institutions, for instance to grow enterprises. On the other hand, integrated approach is a combination of four aspects those are social and financial intermediation, enterprise development and social services. Thus, it is needed a holistic view of the client when a MFI taking this approach. If MFIs are not able to meet all four services, MFIs only offer services that are really needed by the client as long as this service in line with goal and objective of MFIs. Since the large-scale demand for services microfinance activities is in existence, the activities are shown in many countries. The poor people are usually un-bankable, because of such conditions: low skills, poor capacity and severe inabilities. They might not be served in the commercial banking system. It is because the system needs for formal requirements, along with the proper economic scale and certain guarantee. In official terms, this kind of market is un-named and un-served. There are niche markets for the supply of services for MFIs (Santoso et al. 2005: 8). Clients of microfinance institution can not be classified as the poorest of the poor. Generally, they are self-employed and low-income entrepreneur, including; traders, food vendors at the street side, small farmers, small producers and artisan who produce souvenirs in at tourism area and so on. The nature of their business usually provides a stable source of income (Ledgerwood 1999: 2). In various forms, income is provided by micro enterprises owned by the poor. This is done by providing employment. The recycling and repairing better than littering a good, making cheap food, clothing, and transportation to be available are some examples. It is also made to them who are from the low level of formal sector that are usually very difficult to live with their salaries. The people of this kind of life are often can cope with such a problem with the typical cases mentioned above, but can not handle the more serious problem. The other types of problem that are often found are deficiency of capital, skill, official status, and business security. In the meantime, naturally they already have the ability to face sharp business sense, strong life skills, long hard work practice, market knowledge, extensive communication and informal support networks. They also used to have the ability to live supported by their flexibility basic consideration (Robinson 2001: 12). A recent study in Bosnia and Herzegovina carried out by Hartarska and Nadolnyak (Hartarska and Nadolnyak 2008) used the financing constraint approach. The approach states that microenterprises that have good access to credit will be less rely on internal funding in their investment. Using the Living Standards Measurement Survey and the existence of the MFIs in their area, they compare sensitivity of investment to internal funds in the microenterprises which there are MFIs in municipalities they located to microenterprises which there is no MFIs in municipalities they located. They concluded that the MFIs reduce the constraint of microenterprises funding when they are exist close to business. There are some models of microfinance institutions. The first model is Grameen Bank. This model is founded in many countries, especially in Bangladesh, from which it established for the first time by Muhammad Junus. In determining target poor clients, Grameen Bank will do it carefully which is usually done through a series of tests. Loans are given to the group in which each group typically consists of five people and each member of the group guarantee the loan of the other members. This model intensively requires supervision and motivation from the staff to the group borrowers. The second model is Village Bank. An implementing agency establish individual village bank together with 30-50 people and sets capital for on-lending to other members. Repayments of the loan are usually in a week until 16 weeks whereas the village bank pays the principal plus interest to implementing agency. The third model is Credit Unions (CUs). Credit Unions are non-profit financial cooperatives which owned and controlled by its members. Besides saving, CU also provides loans for both productive and non-productive purposes to the members. The membership of CUs compared to Grameen Bank is more heterogeneous and usually based on similar bond. The fourth model is ‘self-help’ groups (SHGs). This model is close to the second model, village bank, although their structure is less well compared to the village bank.  The membership of SHGs is based on the similarity in income and the number of membership approximately 20 people. In principle, they use internal funding, that is saving, to lend it to the members, even though they can also seek external funding as additional source of funds. Several NGOs are facilitating and promoting SHGs, but basically, SHGs are directed as an independent institution. The task of seeking additional financing from outside is usually helped by NGOs which link between SHGs and other external parties or other funding agencies. This NGO’s job close related to social intermediary function they have, while other NGOs are functioned as financial intermediaries which funding SHGs  (Conroy 2003: 4-5). In terms of forms, microfinance institutions can be classified as bank (government and commercial), nonbank financial institution, saving and loan cooperative, credit union and nongovernmental organization. Pawnbrokers, rotating saving and credit association, and moneylender also part of MFIs and hold significant roles in functioning financial intermediation although they are more informal in legal status (Ledgerwood 1999: 1). In Indonesia, several institutions have already served microfinance services for such a long period. Those institutions can be divided into four types. The first type is formal microfinance institutions (MFIs). This type of MFI is regulated and supervised as banking institution and therefore their activities as financial intermediaries subject to banking regulation and supervision. Such institutions included in this type are BRI Unit (state-owned microbank), commercial banks with microfinance services and Rural Bank (Bank Perkreditan Rakyat/BPR). The second type is semi formal MFIs which registered and or licensed by state authorities or local governments, therefore they are not regulated by banking authority (Bank Indonesia). Including in this type are cooperatives, Islamic-based cooperatives (Baitul Maal wat Tamwil/BMT), rural credit institution (Badan Kredit Desa/BKD) and microfinance owned and managed by NGOs. The third type is informal MFIs that operate outside the framework of government regulation, among others, are credit union, rotating credit and saving association (ROSCA), moneylenders, landlords and so on. The fourth type is microcredit programs established by the government in channeling credit to subsidize the poor through a variety of institutions (Nugroho 2008: 181-182). Further explanation about these four microfinance services especially the first three types of MFIs will be presented in chapter 3.   In Figure 1 we can see the pyramid of microfinance institutions with their potential customers in Indonesia. The top layer shows formal MFIs (BRI Unit, Rural Banks/ BPRs and LDKPs). They provide financial services for the top level of microfinance market. This type of MFIs is intended to serve small business which has characterized with stable income flows; therefore these MFIs’ potential clients are non-poor and not so poor people. In the middle layer, semi- formal MFIs serve microfinance services for the poor households. This layer includes rural credit institutions (Bank Kredit Desa/BKD), cooperatives, BMT and NGOs. Clients in this layer are characterized by unstable flow of income. At the bottom layer of the pyramid the huge number of potential clients which need microfinance services. They are very poor people which are characterized by unpredictable income. They need the microfinance services in order to ensure their uncertain income, so they need a small loan to overcom e the difficulties of life (Nugroho 2008: 184-185). Figure 1: The Pyramid of Microfinance Services in Indonesia Source: BI and GTZ (2000) cited in Nugroho (2008) As mentioned above, Rural Bank (Bank Perkreditan Rakyat/BPR) is one of the formal types of microfinance in Indonesia. Its existence is established by Banking Act number 7 of 1992 as amended by Banking Act number 10 of 1998. The main goal of the rural bank is to serve small business and rural communities. In order to deliver their services to the customers, a microfinance institution requires a good performance. This performance can be seen from some indicators. Looking at these indicators, we can decide how well they not only can do financially but also it can also build the future performance goals. There are a large number of performance indicators that can be used by MFIs in measuring the financial performance. One of the principles that can be used is the CAMEL system, ACCION. This system examines five traditional aspects which are regarded as the most important thing in the practices of the financial intermediaries. The five aspects (capital adequacy, asset quality, management, earnings, and liquidity) be the sign of the financial condition and operational strength of the MFI in common (Ledgerwood 1999: 205,227,229). 2.2  Analytical Framework Based on the theoretical framework that has been presented in the previous section, the author uses Figure 2 below describing the analytical framework used in the research which answering the research questions asked. There are two parties involved in the financial market.  On one hand, there is a supply side which is financial institutions that act as financial intermediation agents or it might be function as other than financial intermediation like social intermediation or something else. These financial institutions include commercial banks, non-banks financial institutions (insurances company, ventura capital, etc), and microfinance institutions (in different types and forms). On the other hand, on the demand side, there are some parties that require financing for different purposes, among others for working capital and investment usage which is belongs to micro, small and medium enterprises (MSMEs). The problem is that not all of these financial institutions allow MSMEs as their client due to several requirements which can not be fulfilled by MSMEs (collateral and bureaucratic procedures, for instances) or it might be comes from the MSMEs itself that no need too much funds (small financing). Here, microfinance institutions fit with the need of MSMEs. The mechanism then runs as common supply and demand in the market: MFIs, as financial intermediaries, offer credit or loan to MSMEs. Furthermore, MSMEs use the loan for running their operational activities (working capital usage) or for accumulating their physical capital (investment usage). At the end of the story, output of MSMEs will contribute to national income (GDP) and at the same time generates income for the owners and employees. Figure 2: Analytical Framework of the Research: Supply and Demand in Financial Market Source: author’s graph This paper focuses on the supply side of particular financial intermediaries in the financial market those are microfinance institutions. In other words, using Ledgerwood’s terminology mentioned in literature review, the paper mainly looks at the role of MFIs in terms of â€Å"minimalist approach†; how they perform as financial intermediations in delivering credit or loan. Special attention given to Rural Banks, one of formal MFIs in Indonesia in allocating their credit to different types of enterprises such as micro, small, medium and large enterprises. There are several reasons why this paper discusses on Rural Banks as unit of analysis. Firstly, it is states in the regulation (Banking Act) that the main objective of Rural Banks is to serve small scale business and looking into the pyramid of MFIs appeared in Figure 1. It means that Rural Banks have a specialization as small scale business’ banking, especially micro enterprises. This paper wants to see to which extent this mission is successfully executed. Secondly, Rural Banks are the second largest microfinance institutions in terms of asset, third party funds collected and number of debtors. According to Bank Indonesia (2008)[9], they posses 35% of total MFIs’ assets; 30.43% of third party funds collected on total MFIs and 29.15% of total number debtors on total MFIs.   This study proposes two research questions. The first research question relates to the role of rural banks as financial intermediaries in delivering credit to different types of business especially micro and small enterprises. In addressing the first research question, the paper uses comparative analysis and simple calculations in terms of credit disbursement for both commercial banks and rural banks so that the share (percentage) of credit allocation to different types of enterprises to be known. In order to obtain the result, some criteria and assumption are applied in the study. This is done due to there is no data available about the definite amount of credit disbursed by either Rural Banks or commercial banks to different type of enterprises. The discussion focuses only on the amount of credit allocation, so that other variables that determine the credit such as interest rate, collateral, and so forth are not discussed in this study.   The second research question indicates the performance indicators of rural banks in relation to credit provision to micro enterprises. These indicators include; Loan to Deposit Ratio (LDR), Returns on Assets Ratio (ROA) and Non-Performing Loan Ratio (NPL) which refer to Director of Bank Indonesia Decree number 30/12/Kep/Dir and Bank Indonesia’s Letter No. 30/3/UPPB about Rural Banks Soundness Evaluation. Furthermore, comparison will be made between these indicators and criteria. Chapter 3 Microfinance Institutions in Indonesia 3.1  Microfinance Institutions in Indonesia As developing country, Indonesia has long experience and history in developing microfinance institution which has made it possible for poor or low-income people to overcome financial constraints and to access financial institutions. For this condition, some researchers like Berenbach and Churchill called that Indonesia is â€Å"the most developed market for microfinance services in the world† (Barenbach and Churchill 1997 as cited in (Santoso et al. 2005: 43)). The development of microfinance institution began for the first time in Dutch colonial era when several well-educated local people saw deteriorating economy happened in their community and they looked for the need of this services and started organize it. The two famous institutions best known as pioneer in microfinance institutions and exist since colonial era are cooperative and Bank Rakyat Indonesia (BRI). As mentioned in chapter 2, microfinance institutions in Indonesia can be classified into four types (Nugroho 2008), those are; formal microfinance institutions, semiformal MFIs, informal MFIs and microcredit program which is established by the government for delivering credit to poor people through several institutions. In this chapter the latter type of MFI will not be discussed. The discussion is emphasizes on three other institutions. Formal MFIs are financial intermediary institutions which refer and subject to banking regulation and therefore supervised by Bank Indonesia. Semiformal MFIs are not regulated by Bank Indonesia as a banking authority, but they are licensed and or registered by other state authorities or local government. Informal MFIs operate outside government regulations. Nugroho (Nugroho 2008) described institutions which include in each type of MFI as follows: formal MFIs including BRI Unit, Rural Bank (BPR) and The Rural Credit Fund Institutions (Lembaga Dana Kredit Pedesaan/LDKP); semiformal MFIs covering rural credit institution (Badan Kredit Desa/ BKD), microfinance NGO, credit cooperatives including Islamic-based cooperatives (Baitul Maal wat Tamwil/BMT); informal MFIs including credit unions, rotating credit and saving association (ROSCA), moneylenders, traders and landlords. Table 3.1 provides map of microfinance institutions by types in Indonesia in terms of units and their financial services. Bank Rakyat Indonesia Unit Lembaga Dana Kredit Perdesaan (LDKP) – The Rural Credit Fund Institutions The Rural Credit Fund Institutions (LDKP) is the term of credit fund institution that operates in rural area, including a variety of non bank microfinance institutions with different names, ownership, organization, services and outreach, that was established on initiatives of provincial government. LDKP belongs to provincial, district or village government which, in their operation, have to obtain license from and was regulated by provincial government within the national regulatory framework. they get technical support and supervision from regional development bank (BPD) which are owned by provincial government.. since it was established in 1970s, the number of LDKP getting less from 1978 to 630 in 2000, this decrease due to the conversion of LDKP to peoples cerdit banks(BPR) and recently only about one quarter of LDKP  have become banks. The Badan  Kredit Desa (BKD) BKD is a profitable and sustainable village level financial institution that provide financial services with a outreach to low income people. it was operated by a committee that controlled by head of village and have sustained the operation since colonial era. On behalf of Bank Indonesia, BRI branch offices supervise and provide technical assistance  for BKD. in 1970s indonesian government did not pay much attention to this system. instead, the government  give more attention to the cooperative system. this make hard for BKD system to developed. in 1990s BRI tried to revive BKD by providing basic capital, improving administrative system and introducing new saving instruments, however, 1992 banking act burden the expanding BKD system. BKD is recognized as peoples credit bank (BPR) and has been operating as a licensed and regulated bank  since 1992 banking act but the frame work setting, supervision and technical assistance has not changed since 2000. Cooperatives Here, the brief history of cooperative in Indonesia refers to Santoso et al (2005) and Ministry of Cooperative, Small and Medium Enterprises’ website (www.depkop.go.id, 2009) as references. The thought of cooperative was delivered for the first time by Patih R. Aria Wiriatmaja at Purwokerto, a small town in Central Java, in 1896. Then, De Wolffvan Westerrode continued his efforts. In 1908, the year of national movement, Dr. Sutomo founded Budi Utomo which played a significant role for cooperatives improving the life of society. Then, Verordening op de Cooperatieve Vereeniging was established. Twelve years after that, in 1927, another type of cooperative called Regelling Inlandsche Cooperatieve was launched. In the same year, to develop bargaining power among local entrepreneurs, Islamic Trader Union (Serikat Dagang Islam) was established. Indonesian National Party (Partai Nasional Indonesia) which had activities in promoting cooperative spirit was established in 1929. 3.2  Bank Perkreditan Rakyat (BPR) Brief History Steinwand (Steinwand 2001) provided detail periodical history about Rural Bank. He divided the history into four parts of periods; the evolution of the colonial BPR (1895-1945), the period from independence to financial sector reform (1945-1983), the period from financial sector reform to financial crisis (1983-1999) and at the present condition. Rural Bank Position in Financial System in Indonesia Chapter 4   Analysis of the Role of Bank Perkreditan Rakyat (BPR) in Financing Micro, Small and Medium Enterprises 4.1  Overview Chapter 4 consists of 6 sections which each section aimed to answer the research questions. Section 1 is a general information about what will be discussed in this chapter; section 2 discusses about the source of the data used in the analysis; section 3 is the methodology; section 4 is about overview the condition of Bank Perkreditan Rakyat (BPRs) and commercial banks (CBs) in Indonesia using selected indicators, third party funds and credits; section 5 tries to reply the first research question by using comparative analysis between commercial banks and BPRs; and section 6 is the last section which answering the second research question about the performance indicators of BPR Microfinance Institution in Indonesia BPR Microfinance Institution in Indonesia Chapter 1   Introduction 1.1  Background It is believed that microfinance helps low-income people alleviate their life from poverty circumstances in many developing countries. As an economic instrument which has been raised in the middle of seventies, the thought of microfinance came up from the fact that low-income people difficult to access financial services from commercial or formal banking institution which may disadvantage them or even not including them as potential clients. The reason is that, which often we may hear for several times, low-income people lack of collateral for guarantee some amount of money they want, and in the commercial financial institutions point of view it is costly to serve them due to unequal cost-benefit and high transaction cost: low-income people tend to borrow in small amount but the commercial financial institution maintain high cost for processing and assuring their repayment. These costs are not proportional with the amount of loan given to them. A formal microfinance institution existing in Indonesia is the Bank Perkreditan Rakyat/BPR (People’s Credit Bank or Rural Bank)[1] which is established by the Banking Act. The main objective of the BPR is to serve small businesses[2]. It means that BPRs can enhance their role and contribution in the development of micro and small business[3]. In Indonesia, like other developing countries, micro, small and medium enterprises (MSMEs)[4] play significant role in economy. The role of MSMEs can be viewed as an important factor for Indonesia to recover from economic crisis and to lead economic growth and employment. Statistics Indonesia (Badan Pusat Statistik/BPS) and Ministry of Cooperatives and Small-Medium Enterprises reported[5] that, the average contribution of SMEs’ share to total GDP Indonesia from the period of 2001 2007 was 60.77%, while at the same period large enterprises (LEs) contributed 39.23% which can be seen in Table 1. Source:  Statistics Indonesia (BPS) and Ministry of Cooperatives and Small-Medium Enterprises (various editions) In terms of employment creation, MSM enterprises have passed over large enterprises. Table 3 provides worker absorption by types of enterprises. It shows that small enterprises have absorbed approximately 91% of employment during 1999-2006, while medium and large enterprises have provided by 5% and by 4% of employment in Indonesia. Source  : Cooperative Statistics cited in Nazara and Gitaharie (2008), edited by author Based on the data which are discussed in the previous paragraphs, it can be concluded that micro, small and medium enterprises (MSMEs) have a big role and a potential as a driver of the domestic economy. Nevertheless, they still have several constraints, for instance, product market accessibility, lack of management skills, and limited access to financial sources, especially from commercial banks, to meet their demand for finance. A survey conducted by Statistics Indonesia (BPS) concluded that the biggest problem for micro and small enterprises is lack of capital for financing their business.  The survey recognized that  problem in finance for micro enterprises was accounted for 40.48%, while for small enterprises was 36.63% (Wardoyo and Prabowo 2003: 31). In Indonesia, small and medium enterprises can acquire their finance from several sources. According to Nazara and Gitaharie (2008) which refer to statistical data from BPS 2000; 82,960 SMEs got their finance from non banking financial institution; 385,383 SMEs got their finance from banks; and 661,630 SMEs got their finance from other sources. It is clearly from the data that most of SMEs rely on sources other than formal institutions. These figures were not taking into account for SMEs which have no legal entities (Nazara and Gitaharie 2008: 8). From SMEs point of view, they face kinky administrative procedure and also they have to provide collateral as guarantee to get loans from commercial banks. This condition leads SMEs favoring in Bank Perkreditan Rakyat/BPR (People’s Credit Bank or Rural Bank) and other financial institutions which provide simpler in administrative procedures, but higher in interest rates compared to commercial banks (Nazara and Gitaharie 2008: 8). Even though entrepreneurs are burdened with high interest rates, they do not much complain about it as long as they have access to formal credit (Berry et al. 2001 as cited in (Sunarto 2007: 2)). In line with the condition in which SMEs favoring in BPRs, Sunarto (Sunarto 2007: 4) stated that BPRs have several advantages in serving to SMEs, those are: (1) its location which is close to SMEs, (2) simpler in credit procedures, (3) accentuate a personal approach in its services and (4) more flexible.   This paper is focused on the role and contribution of BPR, one of the formal types of microfinance institutions in Indonesia, as the suppliers of funds to different types of enterprises especially to micro and small. The discussion emphasizes on credit allocation delivered by BPRs to the micro, small and medium enterprises. Comparative analysis will be made between commercial banks[6] and BPRs for analytical purposes in two things. Firstly, the comparison in terms of allocation of credit which does not consider other variables playing a role in borrowing, for instance interest rates and so on. The comparative result is not in the amount of the credit disbursed but in the percentage of allocation for each type of enterprise. Secondly, the comparison in terms of performance will be discussed through some indicators. Furthermore, the performance indicators of BPRs will be compared with their criteria which set by Bank Indonesia to see whether those indicators improving or deteriorating. 1.2  Research Objective and Research Questions Research Objective The objective of this paper is to study the role and performance of Bank Perkreditan Rakyat (BPR), as one of microfinance institutions in Indonesia, in financing micro, small and medium enterprises. Research Questions In order to achieve the research objective, this paper proposes research questions as follows: 1.  What is the role of BPRs as supplier of funds to different types of small and medium enterprises, in particular micro enterprises? 2.  What is the performance of BPRs in relation to credit provision to micro and small enterprises? 1.3  Research Hypothesis Bank Perkreditan Rakyat (BPR) was established with the main objective is to serve small-scale business and people in rural areas. Therefore, the first hypothesis is that BPRs are reaching their main objective as supplier of funds to micro, small and medium enterprises as mandated by regulation (i.e., banking act). In order to meet the objectives, it is needed good performances which are reflected from their performance indicators. Therefore, the second hypothesis is that performance indicators of the BPRs have met with the standards which set by the Indonesia banking authority. 1.4  Organization of the Paper This paper is divided into five chapters. Chapter 1 is introduction which contains background of the research, research objective and research questions, research hypothesis, and organization of the paper. Chapter 2 is review of the literatures and analytical framework for the research. Literature reviews discuss about definitions of microfinance and microfinance institution, the approaches can be taken by a microfinance institution in order to serve the clients, the models of microfinance institutions, the types of microfinance institutions in Indonesia and the pyramid of them in relation to potential customers and performance indicators. Analytical framework discusses about the way in which the research will be achieved. Chapter 3 is the microfinance institutions in Indonesia which contains their brief history and recent condition. Chapter 4 is analysis of the role of BPRs in financing micro, small and medium enterprises which contains overview of the chapter, data source for the analysis, methodology of the analysis, some information about commercial banks and BPRs, and analyzing to answer the research questions. Chapter 5 is conclusion.   Chapter 2   Literature Review and Analytical Framework 2.1  Literature Review There are many definitions about microfinance proposed by several researchers and institutions. This paper uses some definitions given by Robinson, Ledgerwood, Consultative Group to Assist the Poor (CGAP), and Asia-Pacific Economic Cooperation (APEC) to describe microfinance. Robinson (Robinson 2001: 9) defined microfinance as small size financial services (mainly saving and credit) given to people who having farm or fish or herd; people who running micro or small enterprises which producing, recycling, repairing or selling goods; people who offering services; people who working for commissions or wages; people who having earnings from renting the land, vehicles, draft animals, or machinery and equipment; and people or other individuals and groups from both rural and urban areas at the local level from the developing countries. Consultative Group to Assist the Poor (CGAP)[7] which uses terminology â€Å"poor people† and Ledgerwood which uses terminology â€Å"low-income clients† pointed out to person who receives basic financial services from microfinance including self-employed people. Furthermore, Ledgerwood (Ledgerwood 1999: 1) stated that definition of microfinance comprises not only in financial intermediation but also in social intermediation. Many of microfinance institutions (MFIs)[8] provide this social intermediation function (i.e., group arrangement, self-confidence development, training to enhance capabilities and to increase capacities in terms of financial literacy and managements) go along with financial intermediation. Moreover, she argued that microfinance is a development instrument and it is not just banking.   Asia-Pacific Economic Cooperation (Santoso et al. 2005: 7) defined microfinance into two understandings. Firstly, it refers to an institution when it designates to an organization which offer financial services or banking products, especially loans to the poor people. Secondly, it uses for different methods or activities which assigned to the poor people in order to access financial services. The poor people usually ask for loans, meanwhile commercial banks do not qualify them for loans. These understandings are close to each other. An institution which provides products for poor people called as microfinance institution. The usage of products (i.e., credits) which is provided by MFIs will be beneficial for poor people in generating more earnings.   Ledgerwood (Ledgerwood 1999: 65-66) stated that the approaches that can be done by microfinance institutions can be divided into two main categories: the minimalist approach or integrated approach. When MFIs do minimalist approach, they only perform functions of financial intermediation, although sometimes they offer social intermediation in limited services. Premise that underlie this approach is a-single missing piece that can be offered by MFIs to the clients in the form of access to credit for them due to the clients are getting less coverage of services from financial institutions, for instance to grow enterprises. On the other hand, integrated approach is a combination of four aspects those are social and financial intermediation, enterprise development and social services. Thus, it is needed a holistic view of the client when a MFI taking this approach. If MFIs are not able to meet all four services, MFIs only offer services that are really needed by the client as long as this service in line with goal and objective of MFIs. Since the large-scale demand for services microfinance activities is in existence, the activities are shown in many countries. The poor people are usually un-bankable, because of such conditions: low skills, poor capacity and severe inabilities. They might not be served in the commercial banking system. It is because the system needs for formal requirements, along with the proper economic scale and certain guarantee. In official terms, this kind of market is un-named and un-served. There are niche markets for the supply of services for MFIs (Santoso et al. 2005: 8). Clients of microfinance institution can not be classified as the poorest of the poor. Generally, they are self-employed and low-income entrepreneur, including; traders, food vendors at the street side, small farmers, small producers and artisan who produce souvenirs in at tourism area and so on. The nature of their business usually provides a stable source of income (Ledgerwood 1999: 2). In various forms, income is provided by micro enterprises owned by the poor. This is done by providing employment. The recycling and repairing better than littering a good, making cheap food, clothing, and transportation to be available are some examples. It is also made to them who are from the low level of formal sector that are usually very difficult to live with their salaries. The people of this kind of life are often can cope with such a problem with the typical cases mentioned above, but can not handle the more serious problem. The other types of problem that are often found are deficiency of capital, skill, official status, and business security. In the meantime, naturally they already have the ability to face sharp business sense, strong life skills, long hard work practice, market knowledge, extensive communication and informal support networks. They also used to have the ability to live supported by their flexibility basic consideration (Robinson 2001: 12). A recent study in Bosnia and Herzegovina carried out by Hartarska and Nadolnyak (Hartarska and Nadolnyak 2008) used the financing constraint approach. The approach states that microenterprises that have good access to credit will be less rely on internal funding in their investment. Using the Living Standards Measurement Survey and the existence of the MFIs in their area, they compare sensitivity of investment to internal funds in the microenterprises which there are MFIs in municipalities they located to microenterprises which there is no MFIs in municipalities they located. They concluded that the MFIs reduce the constraint of microenterprises funding when they are exist close to business. There are some models of microfinance institutions. The first model is Grameen Bank. This model is founded in many countries, especially in Bangladesh, from which it established for the first time by Muhammad Junus. In determining target poor clients, Grameen Bank will do it carefully which is usually done through a series of tests. Loans are given to the group in which each group typically consists of five people and each member of the group guarantee the loan of the other members. This model intensively requires supervision and motivation from the staff to the group borrowers. The second model is Village Bank. An implementing agency establish individual village bank together with 30-50 people and sets capital for on-lending to other members. Repayments of the loan are usually in a week until 16 weeks whereas the village bank pays the principal plus interest to implementing agency. The third model is Credit Unions (CUs). Credit Unions are non-profit financial cooperatives which owned and controlled by its members. Besides saving, CU also provides loans for both productive and non-productive purposes to the members. The membership of CUs compared to Grameen Bank is more heterogeneous and usually based on similar bond. The fourth model is ‘self-help’ groups (SHGs). This model is close to the second model, village bank, although their structure is less well compared to the village bank.  The membership of SHGs is based on the similarity in income and the number of membership approximately 20 people. In principle, they use internal funding, that is saving, to lend it to the members, even though they can also seek external funding as additional source of funds. Several NGOs are facilitating and promoting SHGs, but basically, SHGs are directed as an independent institution. The task of seeking additional financing from outside is usually helped by NGOs which link between SHGs and other external parties or other funding agencies. This NGO’s job close related to social intermediary function they have, while other NGOs are functioned as financial intermediaries which funding SHGs  (Conroy 2003: 4-5). In terms of forms, microfinance institutions can be classified as bank (government and commercial), nonbank financial institution, saving and loan cooperative, credit union and nongovernmental organization. Pawnbrokers, rotating saving and credit association, and moneylender also part of MFIs and hold significant roles in functioning financial intermediation although they are more informal in legal status (Ledgerwood 1999: 1). In Indonesia, several institutions have already served microfinance services for such a long period. Those institutions can be divided into four types. The first type is formal microfinance institutions (MFIs). This type of MFI is regulated and supervised as banking institution and therefore their activities as financial intermediaries subject to banking regulation and supervision. Such institutions included in this type are BRI Unit (state-owned microbank), commercial banks with microfinance services and Rural Bank (Bank Perkreditan Rakyat/BPR). The second type is semi formal MFIs which registered and or licensed by state authorities or local governments, therefore they are not regulated by banking authority (Bank Indonesia). Including in this type are cooperatives, Islamic-based cooperatives (Baitul Maal wat Tamwil/BMT), rural credit institution (Badan Kredit Desa/BKD) and microfinance owned and managed by NGOs. The third type is informal MFIs that operate outside the framework of government regulation, among others, are credit union, rotating credit and saving association (ROSCA), moneylenders, landlords and so on. The fourth type is microcredit programs established by the government in channeling credit to subsidize the poor through a variety of institutions (Nugroho 2008: 181-182). Further explanation about these four microfinance services especially the first three types of MFIs will be presented in chapter 3.   In Figure 1 we can see the pyramid of microfinance institutions with their potential customers in Indonesia. The top layer shows formal MFIs (BRI Unit, Rural Banks/ BPRs and LDKPs). They provide financial services for the top level of microfinance market. This type of MFIs is intended to serve small business which has characterized with stable income flows; therefore these MFIs’ potential clients are non-poor and not so poor people. In the middle layer, semi- formal MFIs serve microfinance services for the poor households. This layer includes rural credit institutions (Bank Kredit Desa/BKD), cooperatives, BMT and NGOs. Clients in this layer are characterized by unstable flow of income. At the bottom layer of the pyramid the huge number of potential clients which need microfinance services. They are very poor people which are characterized by unpredictable income. They need the microfinance services in order to ensure their uncertain income, so they need a small loan to overcom e the difficulties of life (Nugroho 2008: 184-185). Figure 1: The Pyramid of Microfinance Services in Indonesia Source: BI and GTZ (2000) cited in Nugroho (2008) As mentioned above, Rural Bank (Bank Perkreditan Rakyat/BPR) is one of the formal types of microfinance in Indonesia. Its existence is established by Banking Act number 7 of 1992 as amended by Banking Act number 10 of 1998. The main goal of the rural bank is to serve small business and rural communities. In order to deliver their services to the customers, a microfinance institution requires a good performance. This performance can be seen from some indicators. Looking at these indicators, we can decide how well they not only can do financially but also it can also build the future performance goals. There are a large number of performance indicators that can be used by MFIs in measuring the financial performance. One of the principles that can be used is the CAMEL system, ACCION. This system examines five traditional aspects which are regarded as the most important thing in the practices of the financial intermediaries. The five aspects (capital adequacy, asset quality, management, earnings, and liquidity) be the sign of the financial condition and operational strength of the MFI in common (Ledgerwood 1999: 205,227,229). 2.2  Analytical Framework Based on the theoretical framework that has been presented in the previous section, the author uses Figure 2 below describing the analytical framework used in the research which answering the research questions asked. There are two parties involved in the financial market.  On one hand, there is a supply side which is financial institutions that act as financial intermediation agents or it might be function as other than financial intermediation like social intermediation or something else. These financial institutions include commercial banks, non-banks financial institutions (insurances company, ventura capital, etc), and microfinance institutions (in different types and forms). On the other hand, on the demand side, there are some parties that require financing for different purposes, among others for working capital and investment usage which is belongs to micro, small and medium enterprises (MSMEs). The problem is that not all of these financial institutions allow MSMEs as their client due to several requirements which can not be fulfilled by MSMEs (collateral and bureaucratic procedures, for instances) or it might be comes from the MSMEs itself that no need too much funds (small financing). Here, microfinance institutions fit with the need of MSMEs. The mechanism then runs as common supply and demand in the market: MFIs, as financial intermediaries, offer credit or loan to MSMEs. Furthermore, MSMEs use the loan for running their operational activities (working capital usage) or for accumulating their physical capital (investment usage). At the end of the story, output of MSMEs will contribute to national income (GDP) and at the same time generates income for the owners and employees. Figure 2: Analytical Framework of the Research: Supply and Demand in Financial Market Source: author’s graph This paper focuses on the supply side of particular financial intermediaries in the financial market those are microfinance institutions. In other words, using Ledgerwood’s terminology mentioned in literature review, the paper mainly looks at the role of MFIs in terms of â€Å"minimalist approach†; how they perform as financial intermediations in delivering credit or loan. Special attention given to Rural Banks, one of formal MFIs in Indonesia in allocating their credit to different types of enterprises such as micro, small, medium and large enterprises. There are several reasons why this paper discusses on Rural Banks as unit of analysis. Firstly, it is states in the regulation (Banking Act) that the main objective of Rural Banks is to serve small scale business and looking into the pyramid of MFIs appeared in Figure 1. It means that Rural Banks have a specialization as small scale business’ banking, especially micro enterprises. This paper wants to see to which extent this mission is successfully executed. Secondly, Rural Banks are the second largest microfinance institutions in terms of asset, third party funds collected and number of debtors. According to Bank Indonesia (2008)[9], they posses 35% of total MFIs’ assets; 30.43% of third party funds collected on total MFIs and 29.15% of total number debtors on total MFIs.   This study proposes two research questions. The first research question relates to the role of rural banks as financial intermediaries in delivering credit to different types of business especially micro and small enterprises. In addressing the first research question, the paper uses comparative analysis and simple calculations in terms of credit disbursement for both commercial banks and rural banks so that the share (percentage) of credit allocation to different types of enterprises to be known. In order to obtain the result, some criteria and assumption are applied in the study. This is done due to there is no data available about the definite amount of credit disbursed by either Rural Banks or commercial banks to different type of enterprises. The discussion focuses only on the amount of credit allocation, so that other variables that determine the credit such as interest rate, collateral, and so forth are not discussed in this study.   The second research question indicates the performance indicators of rural banks in relation to credit provision to micro enterprises. These indicators include; Loan to Deposit Ratio (LDR), Returns on Assets Ratio (ROA) and Non-Performing Loan Ratio (NPL) which refer to Director of Bank Indonesia Decree number 30/12/Kep/Dir and Bank Indonesia’s Letter No. 30/3/UPPB about Rural Banks Soundness Evaluation. Furthermore, comparison will be made between these indicators and criteria. Chapter 3 Microfinance Institutions in Indonesia 3.1  Microfinance Institutions in Indonesia As developing country, Indonesia has long experience and history in developing microfinance institution which has made it possible for poor or low-income people to overcome financial constraints and to access financial institutions. For this condition, some researchers like Berenbach and Churchill called that Indonesia is â€Å"the most developed market for microfinance services in the world† (Barenbach and Churchill 1997 as cited in (Santoso et al. 2005: 43)). The development of microfinance institution began for the first time in Dutch colonial era when several well-educated local people saw deteriorating economy happened in their community and they looked for the need of this services and started organize it. The two famous institutions best known as pioneer in microfinance institutions and exist since colonial era are cooperative and Bank Rakyat Indonesia (BRI). As mentioned in chapter 2, microfinance institutions in Indonesia can be classified into four types (Nugroho 2008), those are; formal microfinance institutions, semiformal MFIs, informal MFIs and microcredit program which is established by the government for delivering credit to poor people through several institutions. In this chapter the latter type of MFI will not be discussed. The discussion is emphasizes on three other institutions. Formal MFIs are financial intermediary institutions which refer and subject to banking regulation and therefore supervised by Bank Indonesia. Semiformal MFIs are not regulated by Bank Indonesia as a banking authority, but they are licensed and or registered by other state authorities or local government. Informal MFIs operate outside government regulations. Nugroho (Nugroho 2008) described institutions which include in each type of MFI as follows: formal MFIs including BRI Unit, Rural Bank (BPR) and The Rural Credit Fund Institutions (Lembaga Dana Kredit Pedesaan/LDKP); semiformal MFIs covering rural credit institution (Badan Kredit Desa/ BKD), microfinance NGO, credit cooperatives including Islamic-based cooperatives (Baitul Maal wat Tamwil/BMT); informal MFIs including credit unions, rotating credit and saving association (ROSCA), moneylenders, traders and landlords. Table 3.1 provides map of microfinance institutions by types in Indonesia in terms of units and their financial services. Bank Rakyat Indonesia Unit Lembaga Dana Kredit Perdesaan (LDKP) – The Rural Credit Fund Institutions The Rural Credit Fund Institutions (LDKP) is the term of credit fund institution that operates in rural area, including a variety of non bank microfinance institutions with different names, ownership, organization, services and outreach, that was established on initiatives of provincial government. LDKP belongs to provincial, district or village government which, in their operation, have to obtain license from and was regulated by provincial government within the national regulatory framework. they get technical support and supervision from regional development bank (BPD) which are owned by provincial government.. since it was established in 1970s, the number of LDKP getting less from 1978 to 630 in 2000, this decrease due to the conversion of LDKP to peoples cerdit banks(BPR) and recently only about one quarter of LDKP  have become banks. The Badan  Kredit Desa (BKD) BKD is a profitable and sustainable village level financial institution that provide financial services with a outreach to low income people. it was operated by a committee that controlled by head of village and have sustained the operation since colonial era. On behalf of Bank Indonesia, BRI branch offices supervise and provide technical assistance  for BKD. in 1970s indonesian government did not pay much attention to this system. instead, the government  give more attention to the cooperative system. this make hard for BKD system to developed. in 1990s BRI tried to revive BKD by providing basic capital, improving administrative system and introducing new saving instruments, however, 1992 banking act burden the expanding BKD system. BKD is recognized as peoples credit bank (BPR) and has been operating as a licensed and regulated bank  since 1992 banking act but the frame work setting, supervision and technical assistance has not changed since 2000. Cooperatives Here, the brief history of cooperative in Indonesia refers to Santoso et al (2005) and Ministry of Cooperative, Small and Medium Enterprises’ website (www.depkop.go.id, 2009) as references. The thought of cooperative was delivered for the first time by Patih R. Aria Wiriatmaja at Purwokerto, a small town in Central Java, in 1896. Then, De Wolffvan Westerrode continued his efforts. In 1908, the year of national movement, Dr. Sutomo founded Budi Utomo which played a significant role for cooperatives improving the life of society. Then, Verordening op de Cooperatieve Vereeniging was established. Twelve years after that, in 1927, another type of cooperative called Regelling Inlandsche Cooperatieve was launched. In the same year, to develop bargaining power among local entrepreneurs, Islamic Trader Union (Serikat Dagang Islam) was established. Indonesian National Party (Partai Nasional Indonesia) which had activities in promoting cooperative spirit was established in 1929. 3.2  Bank Perkreditan Rakyat (BPR) Brief History Steinwand (Steinwand 2001) provided detail periodical history about Rural Bank. He divided the history into four parts of periods; the evolution of the colonial BPR (1895-1945), the period from independence to financial sector reform (1945-1983), the period from financial sector reform to financial crisis (1983-1999) and at the present condition. Rural Bank Position in Financial System in Indonesia Chapter 4   Analysis of the Role of Bank Perkreditan Rakyat (BPR) in Financing Micro, Small and Medium Enterprises 4.1  Overview Chapter 4 consists of 6 sections which each section aimed to answer the research questions. Section 1 is a general information about what will be discussed in this chapter; section 2 discusses about the source of the data used in the analysis; section 3 is the methodology; section 4 is about overview the condition of Bank Perkreditan Rakyat (BPRs) and commercial banks (CBs) in Indonesia using selected indicators, third party funds and credits; section 5 tries to reply the first research question by using comparative analysis between commercial banks and BPRs; and section 6 is the last section which answering the second research question about the performance indicators of