The contribution of the construction industry to economic development Essay

The contribution of the construction industry to economic development in Libya - Essay Example Such estimates signifying the role of construction industry in the national economies, especially in the context of developing economies, could rise further as these figures do not include the informal sectors. In developing economies informal sectors generates significant casual employment in both rural and urban areas (Ganesan 2000). The construction outputs are considered as a major constituent of investment and part of fixed capital which are essential for continuous and sustainable economic growth. In the normal course the outcomes of construction activities produce results that benefits on the whole for a larger period of time. Construction industry is also very important since infrastructure development is very crucial and a pre condition for potential economic growth (Ive and Gruneberg, 2000; Hillebrandt 2000). The importance of the construction industry is due to the role it has in the economy, but that role varies between nations. In developing countries, the construction industry has a pivotal role in providing a significant infrastructure in the form of roads, railways, hospitals, schools, airports, housing and other buildings. In developed countries the emphasis is on professional services, maintenance and repair constructions (Ruddock, 2009; Bon, 1999).The main purpose of this study is to draw attention to the importance of the construction industry in Libya through investigating its relationship with other sectors via linkages which are defined as â€Å"backward and forward linkages† (Raza, 2008- p no?). The construction industry stimulates the growth of other sectors through a complex system of linkages which are defined as backward and forward – directions from an input and output model of the economy. Changes in construction industry usually affect other sectors through its linkages. Therefore, its highest linkages with other sectors provide a more rapid growth in the economy (Song, Liu, 2006). As a matter of fact the backward

The issue of management discretion Essay Example | Topics and Well Written Essays - 500 words

The issue of management discretion - Essay Example The challenge compromises the quality of the financial reports delivered by the company analysts. This aspect is favorable to one party becomes a barrier for another party to the achievement of a certain goal. For instance, the case of Adelphia Company reveals management discretion challenge for the company stakeholders. In this case, the communications company created a high amount of debt amounting to $2.6B in its off-balance sheet records (Siddiqui 37). The company provides cable entertainment and other communication services. The debt was created when the top management of the company shifted the loans of the company amounting to $2.6B to the unconsolidated books of account, which were controlled by the family of the founders of the company, Adelphia Company. Accordingly, the money borrowed by the company to fund the company’s projects, balanced personal loans of the Adelphia founder family members. The rest of the amount was used in the covering of other expense relating to the Adelphia founder family members. Additionally, the money was spent in the purchase of a golf course and purchase of Adelphia stock, which was unwarranted, by the company rules and regulations. According to Martin, the money was misused in the purchase of luxurious condominiums in the city of Colorado and New York City (67). No expenditures were related to the initial objectives of seeking the company loan. The whole syndicate wax in the benefit of the executive team while it was in complete violation of the company regulation and the shareholders’ interests in the Adelphia Company. The move evoked the stakeholders’ stern reaction. The afflicted parties sued the executive management of mismanaging an embezzling of the Adelphia Company’s financial resources. The retaliation measure of filing of a bankruptcy claim was appropriate given that the claim represented the true state of affairs of the Adelphia