Can Sharia Banking Deal with Todays Global FINANCIAL MELTDOWN Finance Essay
Today's global financial crisis has left many wondering where in fact the faults actually lie. In fact, there are several contributing factors which can be highlighted. However, in a more positive approach, it is argued that Sharia banking covers principle areas that are in practically complete opposition to typical banking. For instance, institutions do not pay interest, and they require transactions to end up being reinforced by actual tangible assets.
The conventional banking system set up has offered a suitable moderate for trade over many years. Countries contain prospered with the establishments provided while few experienced issues or criticism of the system. Because of this apparently fluent and reliable system, trade had continuing uninhibited until recent times.
Prior to the unfolding of the existing financial crisis, there is a certain limited sum of speculations regarding whether or not the system would deal with any hiccups. This is a reasonable conjecture taking into consideration the financial crisis that occurred in the 1930s. This is of course limited to the U.S. overall economy, and was at the same time when globalization and intercontinental trade hadn't exist the way it does today.
It is interesting to notice that there have been alternatives offered to the traditional bank operating system, which largely consisted of an exclusive banking method, which will be explained afterwards in this paper. Instead of the private banking method, many scholars started out to explore the alternatives, and Islamic or Sharia Banking is usually one type that was considered to be interesting plenty of.
Islamic Banking methods seemed to give you a fair amount of basic safety to users, and it were a fair and just method for borrowers. Primarily, it is the borrower's rights that require to become safeguarded in this technique of banking, as this might be considered a moral action and it would bring stability to the machine. Borrowers would be able to trust the system, and this would only instill self-confidence in every users of the bank operating system. Moreover, this system does not agree with intangible assets. There happen to be Quranic quotations and illustrations that justify this process, which is actually a significant matter of good sense; probability, probability, etc. are factors which may have to become mitigated if stability is desired. Indeed, this is why every possible measure features been sought in Islamic banking to make sure stability and reliability, that may result in economical prosperity.
Aims:
To determine:
How Sharia banking concepts can help relieve the current financial crisis, and convert the financial system for more stability.
How different Sharia Banking is definitely from Conventional Banking.
Advantages Sharia Banking possesses over Conventional Banking
Objectives:
To determine:
What the fundamental concepts of Sharia Banking are.
Why Sharia Banking guidelines are thought to make global financial functions more reputable and concrete in comparison to conventional western banking devices.
Whether or Not really Sharia Banking concepts could be applied pervasively in the west.
How ripe consumers thoughts are in terms of being ready to get Sharia Banking as a fresh banking concept.
Possible obstacles to Sharia Banking
What the fundamental rules of Sharia Banking are.
Possible obstacles to sharia banking
Problem of systems - Sharia - conservative Western - tends to be reckless - but which system best.
Sharia looks an excellent model right now - but a collapse of the development sector in the gulf will show weaknesses.
Why do will have doubts about commercial banking?
Sub- prime - US casing market
UK banks
FACTIVA
Look in the Financial Moments about Islamic banking
Literature Review
Why Does the Globe Need a BANK OPERATING SYSTEM?
For anything to be related, networked and connected, there has to be some sort of medium through which operations can be executed. For example, online to function effectively with all people operating from different spots, cyberspace has to exist. Similarly, for trade to occur effectively there has to be some sort of facilitation. This facilitation is normally provided by banks and other financial institutions. However, there must be a set of norms and governing guidelines that allow these establishments to operate easily and in a just simply manner.
Indeed, a banking system facilitates business activities. Whether it's limited to a specific region or stretched around the world, those who are facilitated because of it enjoy the bank operating system.
Indeed, a technologically very well supported bank operating system is vital in this day and age. For the reason that speed and reliability are both top requirements. Businesses need to act rapidly, particularly when transactions should be made over long distances. As opposed to demand for acceleration today, yesteryears observed a slower tempo of business and there was far less business activity. Subsequently, it might be said that while swiftness and reliability are both necessary today, the banking system was still a demand yesterday.
A bank operating system from the very starting promised a streamlined method of business activity. Governing laws and regulations brought safety and balance to all those involved in banking facilities. It really is unthinkable what gentleman would carry out for trade in the absence of a banking system. A good example that could possibly be cited can be Mozambique in East Africa. It was known that people who traveled presently there on organization or for tours had to maintain their forex on them. This is because there no banking institutions to facilitate them. This exposed them to very much risk, as thugs are the generally desperate would loot or assail them. Nevertheless, most parts of the developed and developing world happen to be encompassed by the bank operating system, which gives them a safe means to conduct transactions.
What is Non-public Banking?
The term 'private banking' appears to directly suggest that it's a bank operating system that deals with the private economical affairs of individuals. It also suggests having less social responsibility that comes along with it. Exclusive banking signifies that what an individual does in terms of banking or fiscal transactions is a private affair as long as it generally does not violate any laws. Though the idea is fundamentally one in which a lot of people can invest their cash and receive gains upon it as a whole, the concept of gain at the expense of another still remains. For example, when many individuals invest their profit a private bank, this money can often be loaned to individuals or other financial institutions or companies that afterwards need to return it with an additional payment [interest]. Therefore, it can be said that the individuals collectively gain interest by simply accumulating their funds in a private bank at the expense of the borrowers who have to pay interest.
Private banking may incorporate trust services, banking providers, investment services, and taxes services. Private banking is definitely a term applied for encompassing banking, investment and other economical services that will be furnished by banking institutions to private people who spend money on sizable assets.
The term "private" has also been used to make reference to the customer service that is given on an individual basis instead of mass-market retail banking. This technique should not be confusing with an exclusive bank, as a private bank can be itself a non-incorporated banking institution. While non-public banking was always seen as a very exclusive sort of banking that explicitly catered to huge net worth those who had liquidity exceeding $2 million, it is now possible for an individual to open an expenditure account with some personal banks with less than $250,000. A private banking division includes a variety of services: inheritance, wealth control, savings, and tax preparation. For the affluent a high-level kind of private banking is wealth management (Mullineux & Murinde, 2003, 23-25).
Basic Tennets of Islamic Banking
There are certain ideas of Islamic banking that differentiate it from classic banking. This particularly identifies its functions. Islamic values that are mirrored in Islamic monetary principles govern Islamic Financing. They are briefly described below:
There is a distinct prohibition on Predetermined Repayment that Exceeds an Actual Amount Of Principal Is Prohibited: Islam permits only one type of loan, to create 'qard-el-hassan'. This actually means 'good mortgage loan', and is described as one when a lender does not levy any extra charge or interest on the main amount.
According to Islamic Financial Guidelines, a Bank must share THE GAINS Or Losses that Result From Investment: The interest-based industrial banking system that has immense pressure is on the borrower. In contrast to this, Islamic financing is founded on the theory that the depositor, the lender as well as the debtor must shoulder the hazards and the benefits that derive from financing business ventures.
Generating Money Immediately From Money isn't Acceptable: Relating to Islamic teachings, money stands for purchasing power. It should not be produced use for reinforcing purchasing power (funds). If it is used for this purpose, there should be an intermediate step in which it should be used for purchasing merchandise and services (Maurer, 2005, 41-73).
Uncertainty, Risk Or Speculation, Which is Also Known as 'Gharar' is Strictly Prohibited: Parties that happen to be included in a contract should have got all required understanding of the counter values that will be exchanged along the way of transactions. They should also be shielded from uncertainty, risk and speculation. No party in a deal is allowed to predetermine a guaranteed income, which can be founded on the tenet of 'uncertain gains'. 'Uncertain gains' does not permit an agreement where the customer might pay back the borrowed principal with yet another amount for inflation protection (Maurer, 2005, 41-73)
Investments are Designed to Support Practices Or Goods Only That Are Not Prohibited or Discouraged By Islam: An Islamic Lender would not finance trade in alcoholic beverages. Also, real-estate finance can't be furnished for erecting a internet casino. Additionally, banking institutions cannot lend cash to other banks with an interest levied.
The above principles will be the complete opposite of what has been practiced in regular banking. For instance, the borrowing against assets that aren't tangible, which has became a flawed concept which has led to a lot of the global monetary crisis.
Basic Information of Sharia Banking [Islamic Banking]
The fundamental difference between Islamic and traditional banking systems is the program of deposits followed. Within an Islamic Banking system, deposits are deemed as shares. These deposits
or shares usually do not promise nominal value (Mullineux & Murinde, 2003, 23-25).
While it can be said that 'In Islamic financing, fascination is forbidden, there are incredibly good reasons why that is so. Fascination is prohibited because of its effect. One needs to understand this effect to be able to value the Islamic financing & conventional finance.
Interest by much benefits one party in a contract more than another. It is recognized to put one get together at a clear advantages over another or others. In a contract where curiosity is implemented, a party is guaranteed its principal sum came back plus a significant profit over others.
Umar Chapra, the writer of 'Towards a Only Monetary Program' asserts that from the Qur'an and the Hadith of Prophet Muhammad, tutorials Muslims and assists them to understand what is fair and unfair, particularly if it involves their earnings income. Chapra says, "One of many important sources of unjustified earnings is getting any monetary edge in a business purchase without giving a merely countervalue."
To put it basically, Islamic finance is a fair system as opposed to conventional finance. It really is Islamic finance aims at removing unfair or exploitative financial situations, products or services. This does not only apply to loan transaction, but also to other conditions that could possibly be unfair or exploitative in the monetary world.
The consequence of this straightforward goal is asset-based financial loans that suffice as a 'just countervalue' for all get-togethers involved. In An Introduction to Islamic Financing, Taqi Usmani describes asset-backed financing; it really is financing that creates actual assets. These may then be sold in exchange for money. Consequently, it therefore earns a justified revenue. That is indeed different from the concept in the conventional systems that generate money out of money ('interest').
In Islamic finance, there must be a secured asset that creates the income, and not money alone. The method that is prohibited in Islamic Finance is as follows: 'Money + Interest = Additional Money'. Instead of this, the formula that needs to be applied is really as follows: 'Money + Asset/True factor of production = More money'.
Islamic banking has additional to it than traditional banking as its items must adhere to secular laws and also the holy Qur'an. This signifies that it must be suited to all countries as a way to make-up a complete system that could be operated globally.
One of the key laws of Shari'ah is riba, the prohibition of curiosity. Also, Islamic laws prohibits the utilization of funds for investment or purchase which may be related to pratices that it deems impermissible (haram). Alcohol usage and gambling stand as good examples. In most cases, anything that isn't defined as haram can be considered permissible (halal) under Shari'ah law. It, even so, should be asserted that Shari'ah interpretations can vary according to areas where it really is implemented fundamentally because of local Islamic scholars defining what is fit for particular regions. Banks that wish to offer Islamic Banking must enlist local scholars who will provide on the bank's Shari'ah board or committee. These scholars aid the bank in designing and applying Shari'ah-compliant bank items and processes. Large regular banks are recognized to now also develop specialized functions that aim to educate employees about adherence to Islamic finance principles.
The Idea of 'Musharakah':
The bans against fascination happen to be founded on the Islamic idea of property that is caused by a person's creative labor or from trade or house. Interest on cash loaned is usually encompassed within neither of the two principles and is thus not really justified (Mullineux & Murinde, 2003, 23-25).
To resolve this issue from a legal and spiritual viewpoint, Islamic banking implements prevalent terms: musharakah or co-procedure for development; mudharabah or as you might set it, a silent partnership, when one get together supplies the capital, the different the labor; and murabbahah or deferred/post repayment on purchases, similar in practice to an expenses of exchange and the most preferable Islamic banking arrangement in Sudan. To decide the ban on curiosity, an interest-bearing overdraft would be changed to a murabbahah contract.
Similar Operations But Numerous Methods in Islamic and Traditional Banking:
A lot of Islamic banking literature says that although Islamic banks perform mostly similar functions to that of traditional banking institutions, their method is plainly unique (Ahmad, 2000; Chapra, 2000; Iqbal and Molyneux, 2005; Iqbal and Mirakhor, 2007). To demonstrate some of the most crucial features of Islamic banking and financing which makes it different and one of a kind from its traditional counterparts encompass: first, Islamic banking aims at a just and reasonable society as dreamed of Islamic economics (Mirakhor, 2000; Warde, 2000). Relative to this, the countless restrictions (e.g. curiosity, gambling, undue risks, etc.) are to serve a flat playing grand to defend the interests and advantages of all participants included in market exchanges and elevate sociable harmony (Ahmad, 2000; Chapra, 2000). For example, the existing tradition of fascination in the traditional bank operating system includes inequality to the debtors since the interest on the loans must be paid whatever the results of their organization. Just as, interest-bearing agreements can be unfair to the lenders particularly when their returns on deposits, which were fed again by the banking institutions to the investors, usually do not commence with some of the performance of the expense (Lewis and Algaud, 2001; Iqbal and Molyneux, 2005).
Second, Islamic banking is definitely setup upon the rule of brotherhood and co-procedure, which symbolizes for a system of justice sharing, risk distribution and stake positioning. It encourages such sharing and co-operation between the giver of funds (trader) and an individual of funds (entrepreneur) (Iqbal and Molyneux, 2005).
Third, as a system founded on ethics and morals of the Islamic law of Shariah, Islamic banking can be embodied by ethical norms and mores and cultural obligations (Ahmad, 2000; Mirakhor, 2000; Warde, 2000). You will find a moral monitoring mechanism based on the descriptions of Halal (permissible) and Haram (prohibited and undesirable) functioning at various amounts, positioning the conscience of entrepreneur and firm, favouring a positive interpersonal climate for world, and giving a convenient and practical legal framework (Chapra, 1992). In accordance with this, Islamic banks can barely financially support any task which contradicts the moral value system of Islam. For example, financing a brewery factory, a night golf club, a casino or different similar kinds of actions are banned by Islam or regarded as harmful to society (Ahmad, 2000).
How Competitive is usually Islamic Banking Specifically in present Era?
Within the Middle East regional individuals in the Islamic banking industry have rendered inspiring fiscal outcomes. These banking institutions have acted well by securing attractive monetary returns irrespective of their capital size. To be able to make certain Islamic banks remain a hook for an essay competitive in the face of their conventional counterparts, they need to elevate their functional capabilities as a way to fulfill prospective demand for Islamic banking services and products. This requires them to redraw their current business models, turn their attention to consolidation and strategic alliances. In addition they have to systemize their features by outsourcing non-core functions so that you can affirm sustainable growth.
The Islamic finance market is rapidly attaining acceptance in continuously evolving environment. On one hand IFSI has performed exuberantly and however it also encounters various challenges, almost all of which are one of a kind to the sector (Saeed, 1999, 24-45).
High Liquidity
Without a well-proven Sharia compliant taking the place of conventional interbank funds markets has posed a significant impediment to the expansion of the IFSI [Organizations offering Islamic Financial Providers]. It is one of the key reasons for IFSIs foregoing superfluous funds that are alternatively being channeled into typical banking systems. Islamic expenditure leads has been short-term and low risk prospects with the lack of variety, tradable financial instruments has restricted investment opportunities.
Human Resources
In the initial phases of its expansion, the Islamic finance industry has had shortage of experienced pros which has impeded its initiatives intended for offering its valuable consumers developed, innovative and excellent items (Saeed, 1999, 24-45).
Global Shari'a Compliance
At many events IFSIs has been soaked in concerns like differing responses with respect to the Fatwas given by numerous Shari'a Supervisory boards. These responses emerge from distinctions in Shari'a thoughts emerging from varied interpretation of Fiqh (Islamic jurisprudence). This emphasizes the need of developing harmony of Shari'a opinions so paving method for advancement in product creation and resultantly development of a constant industry.
Risk Management
IFSIs face risks such as for example Shari'a compliance, even more legal and asset risk, fiduciary risk and displaced commercial threat. These hazards elevate the need of development and establishment of extra comprehensive and effective risk supervision framework to timely screen and reduce them. This will not only encompass the chance control dilemmas prevailing in the IFSIs but likewise allowing for IFSIs to affirm better ranking in the global market to cause them to participate with typical counterparts.
Islamic banking and finance accocunts for the Islamic economic system and its own very basis revolves around fairness and morality. Moral element, thus, is normally raison d'etre of Islamic banking and finance. Sincere efforts are desired in this circumstance on the model of Sudan and Bahrain. This is with regard to Musharaka, Ijarah and Salam Sukuk, and Malaysia in view of Mudarabah established Islamic money market).
Documentation of the overall economy, substitute tax of the organization sector with spending tax and reform in different pertinent laws are essential requirements. A well thought out system with steadfast and sustained attempts could bring about achievement and finally to overhauling of the economy (Lewis & Algaoud, 2001, 77-109).
Advantages of Islamic banking and finance
Along with the development of Islamic banking and finance institutions main changes that came into being in the monetary surrounding during the past few decades of the twentieth century. These include lessening in the intermediation activities and getting involved in a powerful and forceful supervision of expense and an incorporation of personal markets in the face of globalization.
Retract of the Glass-Steagall Act in america Islamic finance facts gained on the foundations that monetary intermediation have been established on fascination. The deeper participation of banks and other financial companies in investment
administration put greater emphasis and pressure on comprehending the greater selection of Islamic financial methods such as sharing profits and mark-up financing and the associated advantages in long term for the institution along with the customer.
However, the necessity of time has transformed from what was there in twentieth hundred years of developing ways of financial intermediation interest-free to the expansion of Islamic Tactics of risk operations and ensure that they are free from troubles associated with traditional ways of financing (Lewis & Algaoud, 2001, 77-109).
Risk management in an Islamic Setup
Even though risk reaches the center of all the activity in every viewpoint of the actions, particularly in business but industrialization brought dangers previously unprecedented in trade and agriculture. With better intervals and more developed period of production, the uncertainty raises. The range of the marketplace has widened and is certainly heading for forming a worldwide village by which introducing brand-new types of risk. When Islamic laws and regulations were penned many years ago years ago, the type and selection of risk and unpredictability had been different. However, gaining knowledge with a mixture of modern experiences allows someone to remember the Shari`a objectives of justice, fairness and performance.
The Prophet (P.B.U.H.) banned sale of calves that were not born. This is because there is no guarantee about the future, and there was no way of deciding the results. He likewise banned sale of seafood that was in a pond. The reason behind this was exactly like the one ahead of; one cannot predict the future; one can't be certain of the quality and quantity of the produce being sold.
The Prophet disallowed the sale of a product that has not been fully cultivated but however permitted undertaking Salam - including advance money paid against agricultural crops at that time when the contract was made, months prior to the real harvest. It should be said that is advantageous to the farmer aswell as to the grain-trader. It also includes a permissible level of indecision contained in the defined transaction.
Therefore, comprehensive information should be collected during any agreement so as to obviate any mix-up between get-togethers with time to come and loss of any on these grounds. But to protect benefits, in a few of the cases, provided joint consent some question is appropriate (Lewis & Algaoud, 2001, 77-109).
Globalized Financial Markets
The world's financial market segments with increased incorporation have initiated motions of money through national boundaries with less price and instantaneously. This switch would work to Islam where there are no thoughts of belief of national boundaries. In practical implementation, however, this partially took place and developed obstacles for Islamic financial movement for two main reasons. The first factor is progress made in Middle East, South Asia and South East Asia who've stunted economies and where fiscal systems are less complicated in contrast with the made countries. Secondly, Islamic finance institutions have problems with their small size and incredibly few of them function in more than one country as the main players do. The situation has modified with few major conventional financial institutions dealing with and introducing there Islamic Divisions/subsidiaries. But it has also made things considerably more tedious for the older Islamic financial institutions as the same need to go through mergers and acquisitions so that you can withstand in this era of competition and rate (Lewis & Algaoud, 2001, 77-109).
Globalization features elevated the instability of almost every financial variable especially the exchange rates. It has also reduced the effectiveness of economic macro-supervision of the countries that venture their organizations in direction of transformation of their existing structures into one based on mainly Islamic principles. The only path of correcting that is undertaking international agreements targeted at curbing speculation and managing financial markets. The procedure of Islamic financial action, henceforth, offers and underscores profit-loss sharing modes of funds, commodity-linked financing such as for example murabaha and mitigating the function of debt as a way to reduce the associated risks in today's world (Lewis & Algaoud, 2001, 77-109).
Hindrances Towards Development/Management Of Islamic Banking
Efforts are underway to develop standards in Islamic financial loans. There is pervasive acceptance for standardizing fundamental elements of Islamic finance including Mudaraba [limited partnerships]. Additionally, Murabaha and Ijara will be also accepted. It must be known that Murabaha can be a well-known markup price which is made known to the customer, and Ijara is certainly a sharia-compliant type of mortgage which has no deposit, which is similar to rent to own. There are steps taken in order to co-ordinate the actions carried out by many Shari`a advisory boards of Islamic finance institutions. These actions are mainly being taken in order to mitigate misunderstandings and rein in un-coordinated activities.
Major obstruction towards expansion of IFSI is insufficient facts that creates a negative outcome on the activities adopted towards its development on solid footings.
There is too little institutions that can carry out a rating treatment. This especially identifies the ones that should be established to carryout rating of products and establishments on the foundations of Shari`a compliance.
Regardless of the odds, few that have been mentioned previously, the industry keeps on to grow but at a snail-paced mainly in the Gulf countries. It has also reached the Balkans and lately independent Central Asian Islamic Republics. Shaky economical circumstances in these countries, are certainly causing problems in the Islamic finance institutions, and this creates hindrances for them (Lewis & Algaoud, 2001, 77-109).
Islamic Banking Drives Competition
Islamic banks had large degree of 'monopoly' over the financial resources of Islamically motivated clientele. The conditions have already been transformed with Islamic banks now facing ever increasing competition. A vital creation in Islamic banking within the last few years has been the start of some traditional banks in that market. An accurate figure of conventional banking institutions around the world which have implemented Islamic banking methods is hard to decide. However, some of the main players in worldwide banking business include brands like Citibank, ANZ Grindlays, Klienwort Benson, Chase Manhattan, etc. Also, there are numerous commercial banks in a variety of Muslim countries that offer Islamic banking services. Lender Misr in Egypt and National Business Lender in Saudi Arabia own both inaugurated Islamic Branches. Malaysia also allows its conventional banking institutions to initiate Islamic Banking techniques so that they can progress into Islamic Financial Industry (Venardos, 2006, Pp 32-55).
In basic, rivalry is always taken to become an affirmative phenomena stimulating growth of any industry. It compels inefficient organizations to either transform themselves in accordance with respective market norms or move out of just how. It mitigates the expenses and ameliorates services to consumers while boosting innovation and attracting enhancements in product top quality. However, IFSI that's in its first stages ought to be protected from severe, stiff and extreme competition from regular till the time they are capable of standing on their feet and also confront competition from their business counterparts.
Conventional banks have tremendous benefits as opposed to Islamic banks in conditions of their experience and extended survival on the market. Their systems, methods, approaches of product improvements, strategic advertising and their diversification in repertoire are far more advanced than the corresponding functions of Islamic banks. Consequently, opens up Islamic banking institutions to an unequal rivalry and competition. Looking at the different end, such competition could be suitable for Islamic banking as typical banks can rein within their efficiency, research data and main capabilities, complex banking and result-oriented strategies to Islamic banking. This may all lead to the development of services and facilitations of better solutions to customers (Venardos, 2006, Pp 32-55).
Methodology
Data Sources:
For this research, there are a wide selection of sources considered. Each one of these together will aid someone to complete the task accessible. In this research, there is a mixed approach consisting of primary and secondary options. The researcher has to carefully consider the varieties of resources obtainable to him in order to make a precise selection.
In order to cope with the precise problem [How Can Sharia Banking BE UTILIZED to Deal with Today's Global Financial Crisis?] one has to investigate the methods at Islamic monetary organizatiuons. From these institutions, the researcher will figure out extra about the dynamics of Islamic Banking, and then be able to think of a strategy that could package today's financial meltdown.
The research will start by searching for secondary sources. This is normally what is done so that you can get a concept of what forms of data can be obtained on a particular subject.
Secondary data because of this researcher paper should come from a variety of records held by a variety of organizations. Since there's been an array of data made accessible in the form of journals, studies and books, they will be carefully considered.
Following the compilation of secondary info, primary data should be obtained too.
Primary data to be collected will come to be attained through questionnaires. Through this method, the researcher can obtain a variety of data. It is worth mentioning that info will be obtained randomly from personnel and supervisors of departments [respondents] irrespective of their gender, age, etc.
An appropriate methodology which includes the purpose quantitative and qualitative methods is seen as the most suitable way to analyze this project.
By implementing a questionnaire, the researcher is aimed at retaining significant primary data that'll be analyzed alongside the secondary info accumulated. While secondary data will be gathered from sources like literature and journals Islamic Banking, primary data will be received from corporations staff at a range of Islamic Banks.
Qualitative Research
When implementing a qualitative exploration technique, one is able to can set up a highly organized and no cost flowing method of info from a participant's head. To employ this research web form, a researcher must take full benefit of a questionnaire. Applying questionnaires permits a specific degree of flexibility for a research technique. In this research paper, an interpretive procedure will be implemented, that may comprise what is an example of a longitudinal wave analyzing data; content material analysis and statistical examination.