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Introduction The management in any organization is often charged with the responsibility of planning, organizing, controlling and leading all the resources of the organization in the most effective way to ensure its secure and sustained growth in all its future years of operation. Every approved investment decision should portray the projected effect on the firm’s future by use of the various established assessment procedures.Advertising We will write a custom essay sample on Short-term decisions lead to the emergence of the global financial crisis specifically for you for only $16.05 $11/page Learn More Moreover, any investment which risk assessment cannot be articulately determined as per the existent procedures should be stalled irrespective of how promising its returns may be. After the recent global financial crisis, it is evident that most firms, even the key financial organizations in a country, make investment judgment based on the short-t erm rather than the long-term. Over the years, since the great depression in the 1930’s, the role of management seems to have diverted significantly from expectations as illustrated by the global financial crisis. Managers, particularly in financial institutions and mortgage firms, have made decisions based on the current environmental changes and without much consideration of the long-term effects of each decision. Investment alternatives that seemed promising in the first few years, turned out to be the causes of the global financial crisis in later years. The form and level of risk management by these firms has been based on short-term assessment methods that have been nullified by the succeeding events. On the same note, there were financial institutions in certain countries such as Canada that did not suffer adverse effects of the crisis. Their management decisions were sound and based more on the long-term than on the short-term. In this easy, I intend to illustrate how certain management decisions by the top financials institutions fueled the emergence of the global financial crisis and how alternative management decisions by other firms cushioned them against the adverse effects of this crisis. Finally, I will elaborate on the managerial lessons from this occurrence that could be exploited to help reduce the recurrence of such an event in the future. Managerial decisions that fueled the global crisis According to Perelman (2012), the state of the economy in the 1920’s was so weak that any single occurrence could have triggered the Great Depression. This implied that short-term managerial decisions made by the financial institutions have certain minor but progressive long-term effects which accumulate to a certain level when a single occurrence can lead to fatal crisis. I think the global financial crisis of 2008 was due to the same reason. The US housing bubble is often regarded as the proximate cause of the crisis. The management of Mort gaging institutions allowed the prices of the house to increase alarming since more inflows were attractive. No efforts were made to alter the condition. According to Tymoigne (2011), these institutions did not consider how the changes in prices would affect consumer spending and savings rate in the long run. The high cash outlay on housing had the effect of increasing the household’s spending causing them to save little no money.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Some began defaulting on their very first mortgage payments, a new occurrence in the sector. Such events occurred in Spring 2007. Managers of the subprime mortgages should have recognized something wrong and acted upon it. However, their actions to avert the situation were based on the unexplained belief that the housing prices never decline and the noble decision to ensure that more people own their homes. Th e later was ineffectively executed. Moreover, the continued deterioration of the credit principles that were applied to complex mortgage instruments also amplified the bubble. Managerial decisions in the lending process are aimed at helping people purchase homes in the short run that they ignore the requirements of the lending process. Schenk (2011) argues that loans were granted without the relevant review procedure or without verifying their income sources or securities. All along, the house buyers depended on the house rentals to pay for the mortgage. Later, the mortgage would be used as security to secure loans form non-bank lenders. These lenders, on the other hand, did not hold the mortgages to maturity. Instead they sold them off to the investors. Such incentives had the effect of enticing the home buyers to increase their debt to the extent that they could not afford. The later managerial decision by the U.S. financial institutions to organize the pooling of the above subpri me loans with the aim of strengthening security issuance was not carefully researched. Crump ( 2011) recognizes that had the professionals in this reputable analysis surveyed the process meticulously with a bias on the long-term effects, they would have seen no need to pool the mortgage loans. These may have saved the situation or allowed more time for the implementation of measures to safeguard against the global crisis. The Federal Reserve management was aware of the possible eventual default on the subprimes but preferred to focus their attention on the positive news of the housing industry. According to Prager (2012), a member of the Fed board had shown an optimism in the transition of the US economy to a modest and sustainable speed. This would ensure sustained non-inflationary development. He had perceived that the burst in the bubble would not spill over since the subprimes were worth less than two billion dollars. What he did not perceive is that the subprime was large relat ive to the US Gross National Product and the number of defaults was increasing greatly. Therefore, the spill in the long run would have resulted in the insolvency of the financial institutions that held them.Advertising We will write a custom essay sample on Short-term decisions lead to the emergence of the global financial crisis specifically for you for only $16.05 $11/page Learn More Similarly, the United States’ yearly decision to finance its annual budget deficit through government borrowing from other nationals had led too a great liquidity in the financial system causing the housing bubble. As Schenk (2011) says, government borrowing was a short-term decision meant to supplement the annual budget. Though the purpose was achieved in the short-run, the long-term effect of too much liquidity and huge debt greatly fueled the emergence of the global crisis. The amount of subprimes was, thus, large relative to the country’s debt leading t o the mortgage anomaly. He further added that the loopholes in supervisory system of emerging nations could have been excused. However, he fails to understand why the US, a model regulator could have failed to foresee such an eventuality. Credit suppliers had opted to use the normal evaluation procedure in the determination of the complex credit facilities in the short-term. They may have instituted measures to come up with the right procedures to evaluate such credit facilities but this did not shield them from the adverse effects of their short-term decision. According to Wade (2011), the credit risk was under-priced, a feature that caused the credit suppliers to be undercompensated for the risk. In due process, the credit spread across the board reaching to extremely thin margins. This further aggravated the appetite for greater credit risk and thus forfeiting the opportunity for correction of the global economic imbalance through the credit markets. Economists such as Adam Smith had long recognized the importance of leverage check in organizations. However, over the years, financial institutions lost a reasonably simple task of defining and determining the leverage due to their short-term mindset. They anticipated that if checks had not resulted in any anomalies in the period they were not conducted, then they would not do so in the few years to come. As Wade (2011) says, the astronomical growth of activities to acquire more securities, were majorly conducted off the balance sheet. Many of the financial products offered by these institutions contained leverage that was too difficult to evaluate or the classes of leverage were layered upon each other to the point of spreading the loss to even the most refined market players. Another reason attributed to the financial crisis is the shortcomings connected to the risk management in the private sectors, and a misunderstanding in the public sector. Schenk (2011) says, few managers had noticed the looming crisis by the summer of the year 2007. Many management decisions were based on what other firms were doing rather than by what was the right thing to do. Unfortunately, these decisions were based on faulty technical issues on the risk assessment.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For instance, many supervisory authorities had failed in their duty in monitoring the risk situation in their firm’s activities, a circumstance that indicated the industry practitioners were overdue in reporting the matter to the top management. Moreover, the management failed to appreciate the forms of liquidity intermediation in time so as to act since they only thought in the short-term. So far I have managed to argue how the different managerial decisions either taken or not taken due to a short-term perspective of the financial institutions’ operations led to the emergence of one the financial crisis often termed as the worst in the history of the world. To further discuss the matter, I will illustrate how certain managerial decisions in Canada had significantly reduced the effect that had the global crisis to their economy. This will substantiate my earlier claim that managerial decisions in reaction to the consistently changing environment that lay emphasis on t he short-term were the real problem behind the economic crisis. Canada and the global crisis Unlike other countries, Canada which is a good example of a middle-sized, sophisticated capitalist economy has a banking system that survived the great financial crisis. Though it is also felt the heat of world recession, the country weathered relatively better than all other nations. Despite a mild hit on the financial institutions, there was no need to inject more funds into the system, the banks retained their level of profitability and shockingly managed to continue with their lending culture as usual. So what managerial decisions did they take into consideration? It is vital to note that their practices were often criticized by the U.S. and the U.K as conservative since they were not opened up to new financial advancements. Canada has instituted a regulatory management of banks, insurance agencies and large investment dealers under the Office of the Superintendent of Financial Instituti ons (OFSI) that meet regularly to ensure that there is a sound and stable management of the financial institutions. According to Schenk (2011), having the securities firms bank-owned and the OSFI to monitor the operations of the banks keeps the operations checked to avoid similar occurrences to those of U.S. the regular meetings ensure that all looming issues are deliberated upon based on their long-term effects on the economy. Pertaining to the issue of leverage, the managerial decisions by regulatory authorities on the leverage were stricter on asset-capital ratio. As Nanto (2010) says, they did not allow their companies to exceed 20 to 1 ratio. This decision was reached based on analysis of what effect the ratio greater than 20 to 1 would have on the economy at large. Therefore, at the time of the global crisis, the Canadian banks had asset-to-capital ratio of 18 to 1 which was less that of their U.S. and European counterparts. The U.S. multiple was over 25 while that of the Euro pean counterparts was above 30. Being less highly leveraged helped Canada survive the economic turbulence of 2008. Canadian mortgages were given by the banks to hold in the long-term unlike their US counterparts that were intended for resell to the investors. Ciro (2012) argues that this acted as an incentive to only lend in situations where there was high likelihood of repayment more than that of default. The banks were more articulate in assessing the income sources of the home buyers and their corresponding securities to ensure the probability of default was almost zero. Therefore, when the home buyers began to default in the U.S. and U.K, the Canadian financial institutions were collecting their mortgage repayments as usual. Their purpose to hold the mortgages for the long-term cushioned them from the adversities of the global crisis. Financial institutions in Canada have huge capital requirements as compared to those of other nations such as the UK and the US. Its banks depend more on the depository funds, which they maintain well above the required level, to safeguard them against emergence of volatility in the market. This is a decision that carries factors in the long-term effect of the ever-changing environment. Lev Ratnovski quotes this as the reason why its banks are classified among the most resilient in the world. Moreover, he adds that this form of framework is to be accredited for the solid statement of accounts, low foreign debt and a very sound national pension plan despite the current population situation. So far, I have illustrated that with the proper managerial decisions putting emphasis on the long-term rather than short-term, it was actually possible to survive the global financial crisis. Canada was faced by the very crisis that faced all other nations. However, it was left less scathed than the US and other European nations. This implies that a global financial crisis is not an event that cannot be avoided. Rather it is an eventuality which can be checked by using the right managerial decisions. Having identified that is not satisfactory. We need to know what to do when we are confronted by a similar crisis or what measures to institute to prevent the likelihood of such an occurrence. Therefore in the next section we look at the managerial lessons form the global financial crisis and in particular from survivors such as Canada. Managerial lessons There are several observations from the economic crisis that can provide a valuable lessons for the future practices. First, it is the interdependence of the macroeconomic behaviors and systems. Discreet long-term monetary policies have a desirable effect on the financial sectors while short-term macroeconomic policies that lead to global imbalances can bring to any financial markets irrespective of how effective the regulatory systems are. According to Schenk (2011), it would be wise to come up with exit strategies that ensure that the short-term policies do not create global imbalances. He adds that there is need for timely warning should there be such imbalances both nationally and internationally. This will ensure the high real interest rates are equally matched by the full pricing of risk. Second, globalization and the markets has shaped to be well comprehended in their complexity. These can be ensured by enhanced communication between regulators both at the national and international levels. This will foster the identification of problems that may result form short-term decisions by the institutions and deliberation on the most appropriate wais to safeguard the future against another global crisis. Third, prudence may be too righteous and boring but the pay off is worthwhile especially when the product is evaluated throughout the whole economic cycle. The worth and efficiency of the net systems have to be determined throughout the business cycle and not during the growth period only. Evaluation at a particular phase would only suite the short -term which we have seen is disastrous. The level of customer confidence in Canada and the U.S. brought the differences that occurred in the recession. One country was cushioned form the extreme shocks while the other was devastated by the crisis. The effectiveness of the regulatory authorities will depend on the line of defense of the firms. This calls for firms to have their practices imbedded in its corporate governance structures and policies. The policy makers need to be cautious in complicating any perceived reforms as the simplest policies are of ten the most effective. Canada’s 20 to 1 asset-to-capital ratio may have been simple but it was definitely effective. Another vital aspect is the depository requirements by the banks. The reforms should increase the amount and quality of reserves that the financial institutions should hold. The amount should reflect the all the long-term eventualities of the market. According to lynch, this principle is widely accepted by the principles but the issue of how much is enough has caused lost of disagreements. This may not be accurately determined though all efforts (Bustillo and Velloso, 2009). Conclusion I have argued in the easy that the organization’s operations while laying emphasis on the short-term were to be blamed for the global financial crisis. First, I illustrated how financial institutions had either ignored the market tends that gave hints on the possibility of a crisis or made short-term decisions that worsened the situation. Then, to illustrate that it was possible to emerge unscathed from the global financial crisis, I have used an example of Canada, an advanced capitalist economy, that was almost unaffected by the crisis. I have evaluated its strategies in comparison to those of other nations so as to underscore the difference. Lastly, I have made some recommendations on possible long-term managerial lessons, which if followed would ensure such events do not reoccur in future. Referen ces BUSTILLO, I VELLOSO, H 2009, ‘The Global Financial Crisis: What Happened and What’s Next’, Studies and Perspectives, Washington. No. 4, 52 p. CIRO, T 2012, The Global Financial Crisis: Triggers, Responses and Aftermath, Ashgate Publishing Company, Farnham. CRUMP, M 2011, ‘The Irish Research eLibrary (IReL): its survival through economic crisis’, Serials, no. 24, pp. 220-224. NANTO, D K 2010, Global Financial Crisis: Analysis and Policy Implications, DIANE Publishing Company, Darby. PERELMAN, M 2012, ‘Business as usual: the roots of the global financial meltdown’. Choice: Current Reviews for Academic Libraries, no. 49, pp. 937-938. PRAGER, J 2012, ‘Reluctant regulators: how the West created and how China survived the global financial crisis’, Choice: Current Reviews for Academic Libraries, no. 49, pp. 938-939. SCHENK, R E 2011, ‘From financial crisis to global recovery’, Choice: Current Reviews for Academic Libraries, no. 49, pp. 561-561. TYMOIGNE, E 2011, ‘Global financial crisis: global impact and solutions’, Choice: Current Reviews for Academic Libraries, no. 49, pp. 735-735. WADE, M 2011, ‘The National Library of Scotland’, Alexandria, no. 21, pp. 67-68. This essay on Short-term decisions lead to the emergence of the global financial crisis was written and submitted by user Johnathan I. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Short The preservation of the human rights is one of the main tasks of any government. However, where is the solution to the question which involves the preservation of the population’s interests, but breaks the human rights? This controversial issue is closely connected with the problem of Aboriginals in Australia.Advertising We will write a custom essay sample on Short-Term and Long-Term Consequences of Removals for the Indigenous Children specifically for you for only $16.05 $11/page Learn More Moreover, the issue of the Stolen Generations is still current for the Australian society because the consequences of the forcible removal of indigenous children can be observed even today. That is why it is important to focus on determining short-term and long-term consequences of removal for those children who became the victims of the governmental discriminative policy in Australia during the period of 1890-1970. The fact of the forcible removal of indigeno us children from their aboriginal families is discussed by many researchers today. In their work â€Å"Women and Human Rights in Australia†, R. Desai, S. Fascione, J. Fox, and D. Kogan present the overview of the development of women’s rights in Australia in relation to the phenomenon of the Stolen Generations (Desai, Fascione, Fox, Kogan, 2008). The authors make accents on the formal aspects of women’s socio-political organizations in Australia and connect their development with the progress of social movements associated with the problem of human rights in Australia from the perspective of the issue of the Stolen Generations and results of this process. However, presenting the definite background for the development of the social organizations and movements in Australia, the authors give only general and brief information about the phenomenon of the Stolen Generations without concentrating on its consequences. Thus, the reasons for developing the violent acti ons against aboriginals were hidden in the governmental inclinations to realize the principles of assimilation in the Australian population with the help of providing discriminative measures (Desai, Fascione, Fox, Kogan, 2008). If the reasons of the process are historically explained, the consequences of removals for the representatives of the Stolen Generations require their further analysis. These consequences can be discussed as short-term and long-term ones. Many researchers determine such aspects of the process as the inclinations of the authority to create definite conditions for civilizing the indigenous children.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, the real situations became tragedies for those children who were removed from their families. The short-term results of such actions could be observed in the children’s inability to adapt to new circumstances, in their diseases as the results of stresses and changing the life conditions (Cassidy, 2006). The most dangerous effects were connected with the violent actions of white people who took children in their families. Aboriginals were considered as servants and often suffered from different kinds of abuses including sexual abuse (Kennedy, 2001). Various discriminative actions which were directed against the indigenous persons became the causes for children’s different psychological traumas which were complicated with the fact of their isolation from their relatives and cultural background (Krieken, 2004). Thus, when such children became adults they suffered from their impossibility to be culturally identified (Rayner, 2003). Moreover, the society rejected to accept the indigenous persons as equal to the other Australians in rights, and it was the reason for the development of the further hostility and violence against the Stolen Generations (Zogbaum, 2003). Thus, these people could not bear the facts of racial discrimination and being depressed could not find their place in the Australian society. That is why the rate of suicides among the representatives of the Stolen Generations is rather high (Read, 2003). The problem of the Stolen Generations is an example of providing the forcible assimilation and discriminative policy which is tried to be explained by the needs of the oppressed people. References Cassidy, J. (2006). The Stolen Generations – Canada and Australia: the legacy of assimilation. Deakin Law Review, 11(1), 131-177.Advertising We will write a custom essay sample on Short-Term and Long-Term Consequences of Removals for the Indigenous Children specifically for you for only $16.05 $11/page Learn More Desai, R., Fascione, S., Fox, J., Kogan, D. (2008). Women and human rights in Australia. Social Policy, 7, 52-54. Kennedy, R. (2001). Stolen Generations testimony: trauma, historiography, and the question of Ã¢â‚¬Ë œtruth’. Aboriginal History, 25, 116-131. Krieken, R. (2004). Rethinking cultural genocide: Aboriginal child removal and settler-colonial state formation. Oceania, 75(2). 125-151. Rayner, M. (2003). Who cares about the facts?: more evidence emerges for the Stolen Generation. Eureka Street, 13(8). 20-22. Read, P. (2003). How many separated Aboriginal children? Australian Journal of Politics and History, 49(2), 155-163. Zogbaum, H. (2003). Herbert Basedow and the removal of Aboriginal children of mixed descent from their families. Australian Historical Studies, 34(121), 122-138. This essay on Short-Term and Long-Term Consequences of Removals for the Indigenous Children was written and submitted by user Barbara Abbott to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Critically Examine The relationship Between Ethnicity and Health The WritePass Journal

Critically Examine The relationship Between Ethnicity and Health Introduction Critically Examine The relationship Between Ethnicity and Health IntroductionReferencesRelated Introduction The policy makers are concerned with addressing or correcting imbalances that impact directly on ethnic minorities’ well-being, such as socioeconomic, health, housing, education, lifestyle and discriminatory factors. Aggleton (1990, p.5 as cited in Baggott, 2004) posited that health can be defined in two ways; ‘‘the positive approach, where health is viewed as a capacity or an asset, and the negative approach, which emphasises the absence of specific illnesses, diseases and disorders’’. Similarly the World Health Organisation (1946 as cited in Baggott, 2004) defined health as ‘‘a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity’’. This definition is significant in that it highlights physical as well as mental aspects of health while emphasising the ‘positive sense’ as in Aggleton’s definition of health. According to Giddens (2009, p.633) ‘â⠂¬Ëœethnicity refers to the cultural practices and outlooks of a given community of people which sets them apart from others’’. Ethnic groups have different traits that set them apart from other groups, such as religion, dress style, language, and history. However, ethnic differences are learned to an extent there have been associations made with health for most of these minority groups. While there is nothing innate about ethnicity, it is central to group and individual identity and similarly important to the health professions who suggest there is a relationship between health and ethnicity. Giddens (2009) argues that this relationship is partial at best but concedes that there is a rather high incidence of illnesses among individuals or groups of ethnic origins. This essay will critically examine and explain the relationship between ethnicity and health. In Britain as the 21st century progresses, its population composition of ethnic minorities is rapidly changing, despite Queen Elizabeth the 1st’s proclamation in 1601 that ‘negroes and blackamoors’ should be deported. She believed they were responsible in part for the social and economic dilemmas, such as famine and poverty (Haralambos Holborn, 2000, p.199). In contemporary Britain this contentious issue has continued amongst a mass population about what they believe to be ‘Britishness’ when it comes to ethnic minorities. According to Stillwell Van Ham, (2010) some see it as a disaster, which will lead to spatial segregation, communities breaking down and a burden to the health delivery system. Perhaps this could be explain why extreme right-wing parties such as the British National Party, which contests immigration and blames all social predicaments on ethnic minorities continues to attract support.   While others will argue that this will be goo d in terms of diversity and see it as an opportunity for an integrated society (Stillwell Van Ham, 2010). There are various ways in which health and ethnicity are related. For example there are differences in population structures, education, genetics, generational and socioeconomic factors between different ethnic groups that impact differently on their health (Bardsley, Hamm, Lowdell, Morgan Storkey, 2000). Prevalence of health related behaviours such as diabetes or cardiovascular disease to mention a few can be distinctively different for different ethnic groups, which indicates an association between ethnicity and health. However, Karlsen, (2004) posits that indicators or factors employed to investigate the relationship between ethnicity and health are likely to fail accounting for the central facets of ethnic minorities’ experiences which could influence health, especially the impact of socio-economic disadvantage, housing, poor health services, harassment and discrimination. As already mentioned above factors such as discrimination, socioeconomic, housing, education and the accessibility of health services have a direct impact and possible relationship between health and ethnicity. In the UK alone, research indicates that at least one in eight from the ethnic minority group experiences some form of racial harassment each year. While two fifths believe that half of the British employers would decline to offer someone a job on the basis of their ethnicity. Ethnic minorities have been shown to experience repeated health and socioeconomic disadvantages than the majority ethnic group. This has a direct impact on the mental health of ethnic minority individuals who experiences such. In a study using data from the Health survey for England, (1999) plus a follow up study, the Ethnic Minority Psychiatric Illness Rates in the Community (EMPIRIC) to explore relationships between interpersonal racism experienced, discrimination as perceived in wider society, occupational class and various indicators of physical and mental health for the diverse ethnic groups in England including minority and majority white groups. The results indicated that there were significant independe nt relationships found between each of the factors explored and health. Hence, from these results current assessments were urged to take into account the different forms of structural disadvantages experienced by ethnic minorities and the diverse ways in which racial expressions can impact on health (Kalsen, 2004). However, there are a number of important but varied factors bearing on the health of ethnic groups and the overall population, which Stubbs (1993) argued that to understand these health patterns of ethnic groups there has to be a comparison with the host   group (majority ethnic group).   For instance, demographic, housing, lifestyle, socioeconomic and health service factors have a direct impact on the health of individuals (Baggott, 2004). Bannister (1901 as cited in Haralambos Holborn, 2000) argued that an individual’s ethnic background contributes to whether or not they are at a decreased or increased risk of developing a certain disease (s). For instance, he was very critical of Jews and their lifestyle describing them as ‘‘Yiddish money pigs’’ who did not like taking baths hence, were prone to blood and skin diseases. Conversely, it is opined that Bannister in this instance was expressing his hostile feelings towards this particular ethnic m inority group instead of advancing an evidence based argument for the association(s) of certain diseases and ethnicity. African-Caribbean and South Asians are more prone to developing diabetes than white Europeans. However, African-Caribbeans are far less likely to suffer from coronary heart disease than white Europeans which is more prevalent within the South Asians (Harding Maxwell, 1997; Nazroo, 1998). Suffice to say access to high quality health services is vital in sustaining a state of total physical, mental and social well being. According to Bunker, Frazier, and Mosteller (1994 as cited in Baggott, 2004), preventative measures such as screening, immunisation and medicine add at least 18-19 months to an individual’s life expectancy. A similar effect is also found when curative medicines are taken increasing the life expectancy by between 44-45 months. Generally this has not really happened with the ethnic groups as there are factors like discrimination and language barriers that impinge on the accessibility of health care. The social context in which ethnic minorities live and experience presents various challenges and disadvantages that will directly impact on their health negatively (Giddens, 2009). Pickett and Wilkinson (2008), argued that one’s health could be determined by the neighbourhood in which one lives, for example if a minority low status individual l ives in a higher quotient vicinity of their own racial or ethnic group then their health is likely to be better than those that live in lower quotient vicinities, this is referred to as the ‘group density effect’. Conversely, Smaje (1995) posits that concentration of ethnic minorities into poor vicinities has an independent and direct bearing on their health. Social structures for ethnic patterning in health show that African-Caribbean and Asians are more disadvantaged (Baggott, 2004). Harding and Maxwell’s (1997) study of the health of ethnics suggested that Indian, Pakistani and Bangladesh have a particularly high rate of diabetes and ischemic heart disease in comparison to other ethnic groups. This could be attributed to poor or overcrowded housing facilities amongst other factors already mentioned briefly above. Nazroo, (1998) from the findings of his study on the health of ethnic minorities agrees that Pakistani and Bangladeshi ethnic minorities experience high morbidity in comparison to other ethnic minority groups. He also found out that African Caribbean men had a lower mortality rate due to coronary heart disease, but were more prone to dying of a stroke compared to their counterparts including the majority ethnic group population. African-Caribbean and Asians ethnic groups do tend to record higher rates of hypertension, d iabetes and are three times more liable to having renal replacement therapy compared to the ethnic majority population (Raleigh, 1997). The health of ethnic minorities as mentioned above can be negatively affected by socioeconomic factors such as, employment and employment conditions. The majority of ethnic minority groups work in hazardous occupations, receive poor remuneration with diminished prospects for career progression. Their employment relationships are akin to the bourgeoisie and proletariat relationship. Bartley, Lynch, Sacker and Dodgeon (1998) suggest that the above findings of poor employment conditions and remuneration highlight the relationship between work conditions and high morbidity and mortality in ethnic minorities. Conversely, unemployment has an association poor health in that it cultivates financial hardship, stress, poor diet and living conditions. Factors such as socioeconomic disadvantages, poor housing, discrimination and poor health services create a knock on effect in one’s life cycle, ultimately exposing individuals to a host of disease and illnesses through a lack of equal opportunities. This leads to, anxiety, hypertension, depression and social isolation loss of one’s self esteem and purpose in life, which may result in the development of physical and mental health problems (Bartley, 1994 as cited in Naidoo Willis, 2000). However, Hull (1979) suggested that there is a correlation between migration and health. He attributed this to factors such as nature of symptoms and language barrier hindering ethnic minorities from accessing the right treatments because of the existing contextual cultural differences. Furnham and Bochner (1986) argue that if the host group does not offer any social support, and discrimination is displayed within vital institutions such as work environment, health, judiciary, and welfare. It creates more social stress resulting in mental illnesses for the migrating ethnic minorities. In addition Smaje (1995) links discrimination stressors to the psychological well-being as he suggests that racism has a bearing on differences in health between minority ethnic groups and the majority ethnic population. According to Pilgrim and Rogers (1999) black ethnic minority groups have a relatively short life expectancy and often have the worst health amongst ethnic minorities. In addition to that they posit that black ethnic minorities who experience mental health issues are likely to be discriminated against, often being depicted as an added threat or risk compared to the majority ethnic group. The Ethnicity and Health Report (2007) suggested that ethnic minorities have a higher probability rate of being confined in psychiatry through the criminal justice system unlike through diagnosis from the health system compared to the host group, especially Afro-Caribbean and Black Africans. Giddens (2009) supports the above statement by positing that indeed ethnic minorities mostly afro-Caribbean and black Africans are more likely to be stopped by law enforcers than their white counterparts. This form of institutionalised racism by law enforcement agents and the whole criminal justice system has sign ificant negative effects on minority groups’ psychological well being. Smith, Kelly and Nazroo, (2008) posited that racial discrimination, socioeconomic factors and policies that do not allow for equal opportunities and generally improve their existence within a host group could lead to a lasting effect on their mental and emotional health. In addition, injustice within the vital systems that provide help, health, work, and education further corrode ethnic minorities’ dilemma in terms of their physical and mental health (Smaje 1995). Evidence provided from the Ethnicity and Health Report, (2007) indicating the disparities in mental health between ethnic minorities and the host group is to some extent contentious, given that a cosmic amount of data employed is based on treatment rates. Consequently, this research indicated that ethnic minorities, particularly Afro-Caribbean people have higher rates of psychosis which is seven times more compared to the host group. Kalsen, Nazroo, Mckenzie, Bhui Weich (2005) from their research in the UK, on racism and mental health in ethnic minorities found that there was a significant relationship between racial discrimination and psychological well being. Indication from the results suggested there was a recurrence rate of psychosis annually of six per thousand for Bangladeshi people, ten per thousand for Indians, thirteen per thousand for Pakistani people, while they was sixteen per thousand for Afro-Caribbean people (Nazroo King, 2002 as cited in Kalsen et al., 2005). Nazro o (1998) from his studies posits that ethnic minorities’ mental health is worse than that of the host group. His findings were based on comparisons of the rates of reported suicide and para-suicide cases. Furthermore, Afro-Caribbeans are much more likely to be diagnosed as schizophrenics than their white counterparts (Smarje, 1995). Evidence reviewed in this essay has shown that there is a relationship between ethnicity and health (Kalsen, 2004). However, some of the evidence is contentious in that treatment rates were used to make a general assumption on ethnic minorities’ health (Ethnicity and Health Report, 2007). Evidence also suggests that indicators such as low-economic statuses, migration, and discrimination, poor access to health services, local area deprivation and high unemployment have a direct bearing on ethnic minorities and their health. It could be argued that the determinants of health vary between ethnic groups as a result of differences in genetic and socioeconomic factors which cannot be generalised across all ethnic groups. The evidence reviewed demonstrates differences in health across ethnic groups. These findings are important indicators of the need for investment programmes that are specifically targeted at improving the quality and quantity of health and other related services for ethnic minority groups. Future policies need to move away from a capitalist approach were ethnic minorities are exploited for their services with little reward and improvement of their social being. 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