Unemployment During The Recession Economics Essay

Unemployment During The Recession Economics Essay The unemployment rate is one of the key variables that policy makers are interested in. There are different causes of unemployment and it is very difficult for governments to determine which causes are most important and how to deal with them. The two main types of causes of unemployment can be split as demand-sided and supply-sided. The unemployment has both economic and noneconomic costs (McConnell and Brue, 2005). The economic costs of unemployment are; (i) decrease in income and output which is measured in terms of the GNP gap and, (ii) burden of unemployment is not distributed equally among employees especially during recession periods (Petroff, 2002). On the other hand, loss of self-confidence, social and political conflicts can be counted as some of the noneconomic costs of unemployment (McConnell and Brue, 2005). Thus, it is important to analyse causes and outcomes of unemployment especially during recession period. Unemployment during Recession Since Industrial Revolution, the entire world economy has gained a momentum. This momentum has led to economic expansion an increase in quality of life. However, this momentum hasnt shown continuity. Countries have experienced many ups and downs in their economic activities since they industrialized. These up and down movements in economic activities or in production level are known as business or economic cycle (Parkin, 2012; Abel et al., 2008). There are two main periods of the business cycle (Parkin, 2012); expansion and recession. An expansion is a period which represents an increase in the economic activities and production level of an economy/country (Burda and Wyplosz, 2001). Contrary, recession is an extended time period when the economic activities and gross domestic product (GDP) of a nation are slowing or falling down (Abel et al, 2008; Harris, 2002). These activities are including level of employment, investments, household income, business profits and inflation rate. In a business or economic cycle, recession occurs between peak and trough points. It is also known as a business cycle contraction. This is represented in the Figure 1. -Causes of Recession: Negative Demand and Supply Shocks According to Abel et al. (2008), two main causes of economic recession are negative aggregate demand shock (ADS) and negative aggregate supply shock (ASS). A negative ADS is a sudden event that decreases the aggregate demand in an economy (Burda and Wyplosz, 2001). There are several reasons for this type of negative shock. It generally occurs because of tight fiscal and monetary policies (Abel et al., 2008). Government sets high taxes and reduces government expenditures to decrease the inflationary pressures. On the other hand, these policies can causes a fall in the aggregate demand and as a result economic recession takes place. The recession that United Kingdom (UK) experienced during 1980-81 was caused by tight fiscal and monetary policies (Pettinger, 2012). There were high tax rates, low government expenditure, and high interest rates for reducing spending, consumption and investment. The UK government was applied these tight policies for reducing the inflationary pressures whic h was formed in the late of 1980s. Inflation had fallen but the cost of these policies was the economic recession. Classical economists suggest that the negative ADS do not cause continued fluctuations in output level (Burda and Wyplosz, 2001). However, they view that a negative ASS is a major reason behind the critical changes in output and employment level (Burda and Wyplosz, 2001). A negative supply shock or a negative production shock is an unexpected event that decreases the aggregate supply in an economy/country (Abel et al., 2008). A negative ASS causes an inward shift in the long run aggregate supply (LRAS) curve of an economy (Abel et al., 2008). In figure 2, there is an inward shift in the LRAS curve because of a negative supply shock. It is reducing full-employment output from Q1 to Q2 and increase the price level from P1 to P2. This change in the price level represents that a negative supply shock causes prices to rise during the recession. Some of the real world examples of negative supply shocks are; changes in weather, such as an unexpected cold weather; changes in the structure of industries, such as merging of two or more dominant companies (Abel et al., 2008). Sometimes, the dominant suppliers join together for increasing their market power. By this way, they can restrict supply and set higher prices for making more profit. The real world reflection of this happened in 1970s by the Organization of Petroleum Exporting Countries (OPEC) where members were imposed an oil embargo and then increased oil prices. When the oil prices rise, firms began to produce less since the cost of production was increase independently fro m aggregate demand. During oil price shock, labour demand, employment and real wage rate had fallen (Carlstrom and Fuerst, 2006). A negative supply shock reduces the quantity of labour demanded at any given real wage rate and causes an inward shift in the labour demand curve (Abel et al., 2008). In figure 3, the negative supply shock causes a fall in the labour market equilibrium from point A to B. At the new equilibrium both real wage and employment level falls. This graph also reflects the effects of oil price shock on the labour market. -Supply Side Factors During recession both businesses and individuals tend to retrench their economic belts and this causes negative effects on the level of production and consequently demands for labour decrease. Thus, during recession unemployment turns out to be one of the major problems on both government and society. Some of the unemployment during recession base on supply-side factors like personal transferable skills, job-seeker research channel, occupational mobility (job skills), and geographical mobility (Adams et al., 2000). For example; in UK, economic structure is turning to service based from manufacturing based economy (Parkin, 2012). The main reason of this structural change is globalisation and international trade agreements. According to Parkin (2012), UK has completely lost its cost advantages in manufacturing goods since the cost of production is much cheaper in Eastern Europe countries. Structural changes lead primary and secondary sector workers lose their jobs and many of them cann ot find new jobs since they dont have necessary skills for working in service sectors such as financial service institutions and information technology. However, even when economy is operating at full capacity, there is some unemployment that causes by the supply side factors. This is generally known as the natural rate of unemployment or equilibrium unemployment (Blink and Dorton, 2007). The natural rate of unemployment exists when the labour market is in equilibrium (Abel et al., 2008). In figure 4, the total labour force (TLF) in an economy and aggregate supply of labour (ASL), which stands for the number of people who are willing to work at every given wage rate, are presented. The difference between points a and b is natural rate of unemployment. The natural rate of unemployment is the combination of frictional and structural unemployment (Abel et al., 2008). Frictional unemployment occurs when employees leave their jobs for finding more suitable job opportunities in order to satisfy their career and income expectations (Parkin, 2012). While employees are searching for new jobs, there is always some frictional unemployment in th e economy. The poor job information may lead this searching process to take longer than what the employees expected and consequently employees may lose their motivations for finding new jobs. Unemployment benefits are also a factor that affect the incentive to not to work. Also, structural unemployment occurs when the structure or production methods of an industry are changed in order to keep pace with changes in consumers tastes and new production techniques (Sloman, 2004). Structural unemployment is generally known as the long-term unemployment since workers must retrain or they may have to relocate for staying at their current jobs or finding new jobs (Parkin, 2012). On the other hand, the financial and mental costs of retraining and relocation lead structural unemployment that contains geographical and occupational immobility. Housing prices are one of the most important financial problems that cause geographical immobility. For example; in London, the active capital city life creates more job opportunities than in the North of England, but housing prices and rents are much more expensive than in the North of England. So, some workers may prefer to take unemployment benefits and staying at their neighbourhoods rather than paying high rents or buyin g expensive houses in London. This causes geographical immobility. An increase in unemployment rate also increases the burden of the government. High unemployment means an increase in the total amount of unemployment benefits that governments have to pay. As a result of an increase in unemployment rate, governments revenues fall. So, it causes budget deficits. In order to decrease the rate of unemployment, government may use both supply-side and demand-side policies. The main aim of the supply-side polices is to make labour force more responsive and flexible against the changes in job opportunities (Sloman, 2004). However, if there is lack of aggregate demand, supply-side policies can be ineffective. Thus, for achieving more effective results government can support supply-side policies by using demand-side policies as well as fiscal and monetary policies. Conclusion In recent years, recession become one of the major problems that the entire world economies encountered. It is inevitable for governments to take certain measures to determine the causes of economic downturn. It can be caused by demand side or supply side shocks. During the recession, unemployment becomes one of the serious problems because of low levels of consumption, demand and investment (Pettinger, 2011). However, unemployment exists even when economy is operating at full capacity. Unemployment never becomes zero because of supply-side factors, like; personal transferable skills, job-seeker research channel, occupational mobility (job skills), and geographical mobility (Adams et al., 2000). Structural and frictional unemployment are unemployment types that cause by supply side factors. There are massive research efforts to find out causes of unemployment and how to deal with it. The long lasting effects of unemployment make it an important problem for all economies and governmen ts that encourage governments to try to find solutions for it since it has economic, social and political consequences.

Saudi Arabian Economy

Saudi Arabia is the largest Arab nation in Middle East Asia; Saudi Arabia has a population of more than 28 million and has an area of approximately 830,000 square miles. And has an oil-based economy with strong government control over major economic activities. Saudi Arabia possesses townie five percent of the world's proven petroleum reserves. When Saudi government signed agreement with standard oil of California (socal), allowing the company to explore Saudi Arabia for oil after a long search for oil that lasted around four years without success, the first success came with the seventh drill site in Dammam city in 1938. The economy of Saudi Arabia, mainly for oil, and hard it has the largest oil reserves in the world, an estimated 264. 2 billion barrels. And occupies the first place as the largest producer and exporter of oil in the world, where it plays a leading role in the organization of petroleum exporting countries (OPEC) to produce twenty nine percent of the total production of OPEC. In addition, the biggest turning point of the Saudi economy is Ghawar, it is by far the largest conventional oil field in the world and approximately sixty percent of all Saudi oil produced between 1948 and 2000 came from Ghawar and fourth largest reserves of natural gas, 240 trillion cubic feet, one third of this reserve is found in the Ghawar field. After explored the oil in Saudi Arabia, it become big change in the economic and government, focused on creation infrastructure, human resources development and non-oil economy, with the development of uplifting other economic activities such as handicrafts, mining and farming. For example, create and operation the cities of Jubal and Yanbu industrial create diversified economy and minimize rely on crude oil revenue Saudi Arabia economy is its response to the rapid economic variables on a global, regional and local levels Proof of this the successive jumps of the Kingdom in the standards world rankings year after year. And the kingdom occupies fourth rank in the â€Å"financial freedom† in the world rankings and has a tax system workbook ranked seventh in the world, one of the best tax systems to spur investment. It is one of the tony five largest economies in the world, which achieved a rank 24, and the largest economy in the Middle East and North Africa.

How My country save water Essay

I live in Saudi Arabia, people here consume water more than a person needs triple times on world level. Though that my country geographically considered one of driest regions in the world we have two main sources of water: Aquifers. Sea water (desalination). People waste water sometimes without even notice that: while they making ablution, washing a car, cooking, shower†¦etc. When Government noticed how people consumes water they took Preventive methods to save water, such as: Awareness campaigns through the media and educational pamphlets. Free water appliances (taps, shower heads, toilet boxes) were distributed, reportedly resulting in a decrease of residential water use of between 25-35%. Water reuse were way that Saudi handled this issue. Saudi recycler’s 40 percent of the water used for domestic purposes in urban areas. To this end, recycling plants have been built in Riyadh, Jeddah and other major urban industrial centers. For example, recycled water is used for irrigation of farm fields and urban parks, ablution water in mosques is being reused for the flushing of toilets. Dams are used to capture surface water after frequent flash floods. This water is used primarily for agriculture and is distributed through thousands of miles of irrigation canals and ditches to vast tracts of fertile land that were previously fallow. For me as member of my community I can contribute to preserve water: Use the water appliances that government distribute. Educate my community around me stringing with myself and family. Recycle the water that I use if I were able to. For example, while cleaning vegetables or fruit I can use the rest of that water in irrigate plants. Beware of water amount that I use. On the other hand my second example that I noticed here is public roads and how the traffic can be crowded usually in Riyadh. Since Riyadh start urban development, we have noticed how crowded the traffic can be.The road that you used to take to go from your home to your job takes 20 minutes now it  could take hour or more. I think Saudi still in the process of getting a solution. Government and people starts to find out what are the causes and solutions of this bad traffic which are: Most of the student and employees’ go as the same time 6:00 AM. So, as solution we may let them go on different timing. The huge transport trucks move freely at any time. So, as a solution determining time for these trucks at certain time a day Absence of strict rules to those who disobey the system while driving. Also, as solution traffic police should apply the rules with more strict on those who break the law. And more solutions that government or people can do; Have different transport way than cars. That’s why Saudi now is heading to build Riyadh metro expected to start running on 2018. Some youth like Muhammad Al-Farris, who create an app called (Zahma O La) on play and apple store. Google maps can show traffic line. My Resources: Wikipedia,Riyadh Newspaper, Dr.AbdulRahman M. Saleh article Crowded at Riyadh City.

Kyle Carpenter Hero Of The Ages - 841 Words

Sam Overman Mrs. Drayton English 1 2A 9 February 2016 Kyle Carpenter â€Å"Hero of the Ages† â€Å"Blessed be the LORD my rock, who trains my hands for war, and my fingers for battle†~ Psalm 144. On October 17, 1989 in Jackson, Mississippi, an American Hero was born, his name is William â€Å"Kyle† Carpenter. Mr. Carpenter enlisted in the U.S. Marine Corps at age 19 in February 2009 and completed boot camp in July 2009. Kyle Carpenter should be the Hero of the Ages because he jumped on a grenade, he also encourages people, and is an ambassador of sorts for the United States Marine Corps and its wounded warriors. A U.S Marine Corporal shielded a team of â€Å"Devil dogs† from a hand grenade. According to the New York Times U.S. Marine, Carpenter threw his body on a grenade to shield his fellow â€Å"Devil dogs† in 2010 in Afghanistan. Hand grenades are one of the most awful weapons of war. (www.thewhitehouse.gov). When you jump on a grenade you are not a regular person anymore you are brave, a hero, and very loyal to your men that you would give your life to save other people from a explosive. According to the New York Times, on Thursday June 19, 2014, Carpenter was recognized for being brave and being selfless. His bravery allowed him to be awarded the Medal Of Honor. The Medal Of Honor is the highest military honor. Awarded for personal acts of valor and going above and beyond the call of duty. The evidence given above proves that Carpenter is humble,brave,very loyal to his men,and a hero.Show MoreRelatedHeroism : A Brave Soldier1054 Words   |  5 Pagesbeing a hero and help ing others. For example, Dale Beatty, a National Guardsman, was driving in a Humvee in Northern Iraq when he drove over an anti-tank land mine. His legs were pinned down underneath the wreckage. He had to get them amputated. Even though lost his legs fighting for our country, he had a positive outlook and attitude from the very beginning. He started Purple Heart Homes, a nonprofit organization that helps provide homes for disabled veterans. Another example of a hero is HelenRead MoreHonor Of Honor By Marcus Brutus1263 Words   |  6 Pagesspecified as someone who is respected, has a good reputation, and who is genuinely a good person. With this denotation in mind, some people might suggest that honor has not changed over time because some people were looked upon as honorable in the middle ages. For example, Julius Caesar and Marcus Brutus were both perceived as honorable men throughout the play. However, this depends on someone’s interpretation of honor because the Merriam-W ebster definition stated that honor is described as someone whoRead MoreThe Changing Nature of Family Life in Contemporary Society Essay3339 Words   |  14 Pagesorder to kill a young woman, Sarah Conner. In response, a lone freedom fighter from the future, Kyle Reese, is sent back also, to protect her. In The Terminator though, the fear evoked by the Cyborg killer, is a fear of mindless, systematic, rationalized behavior. This is similar to other such Horror/Slasher/Killer movies of the time, such as Halloween, (Director John Carpenter, US, 1978) or Friday the 13th (Director Sean S. Cunningham, US, 1980) Similarly, the themeRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesDisposable Worker? 35 vii viii CONTENTS 2 2 The Individual Diversity in Organizations 39 Diversity 40 Demographic Characteristics of the U.S. Workforce 41 †¢ Levels of Diversity 42 †¢ Discrimination 42 Biographical Characteristics 44 Age 44 †¢ Sex 46 †¢ Race and Ethnicity 48 †¢ Disability 48 †¢ Other Biographical Characteristics: Tenure, Religion, Sexual Orientation, and Gender Identity 50 Ability 52 Intellectual Abilities 52 †¢ Physical Abilities 55 †¢ The Role of Disabilities 56 ImplementingRead MoreDeveloping Management Skills404131 Words   |  1617 Pagesother words, and despite the technological resources we have available to us, the same basic human skills still lie at the heart of effective human interaction. In fact, human relationships are becoming more important, not less, as the information age unfolds and technologies encroach even more upon our daily lives. Most of us are exposed to more information each day than we can possibly pay attention to. More than 6,000 business books are published each month. Moreover, no m echanism exists to organize

Econ2103 Tutorial Questions - 1354 Words

Australian School of Business School of Economics ECON 2103 BUSINESS AND GOVERNMENT SEMESTER 2, 2013 LECTURE SCHEDULE (WEEKS 7-12) AND TUTORIAL PROGRAM (WEEKS 8-13) 1 Econ 2103 Weeks 7 to 12 Lectures The second half of the course will look at some of the challenges, complex questions and conflicting forces faced by government in designing and implementing policy. The lectures will examine the issues faced by government in the areas of (1) redistribution of income (2) taxation (3) affordable housing (4) aging of the population (5) privatisation ( 6) wage regulation Lecture Schedule Lectures start in Week 1and finish in Week 12. Location: Monday 5 – 7pm CLB5 The lecturer for Weeks 7-12 is: Peter Nichols ASB465 Ph: 9385†¦show more content†¦4 Week 9 23 -27 September Government and Tax Review Questions 1. Define vertical and horizontal taxation inequality. 2. Give examples of how vertical and horizontal tax inequity may occur 3. Distinguish between tax evasion and tax avoidance? 4. Why is the GST (in Australia) an example of a regressive tax? 5. How might goals of redistribution through the tax system conflict with the goal of economic growth Discussion Question 7 Explain some of the challenges faced by the Australian Government in maintaining an equitable and sustainable tax system. In your answer you may refer globalisation, political lobby groups, an aging population, tax avoidance or any other relevant issue. 5 Week 10 7-11 October Government and Affordable Housing Review Questions 1. Define the term â€Å"housing stress† 2. Name three factors impacting on the affordability of home ownership 3. Explain some factors impacting on the relationship between age and household tenure in Australia 4. Explain some of the factors behind the shortage of rental accommodation available to low income households. Is this shortage higher or lower in Sydney than in other capital cities? 5. Outline three ways in which government may attempt to make housing more affordable to low income families. Discussion Question 8 (a) What is meant by the term â€Å"affordable housing† ? (b) Is housing in Sydney more or less affordable now than

The Wild By Jon Krakauer - 1530 Words

Psychology serves a Role Kids who have been a victim of maltreatment are often times hindered in development as the rest of their life plays out. No matter the starting age, a family neglect can create in kids an odd and unpleasant feeling. The constant exposure to depressors and â€Å"bring-me-downs† that effected kids see really puts them into a terrible cycle. Some cases of maltreatment lead to extraordinary stories and even more impressive characters. In Into the Wild, by Jon Krakauer, we can observe that Chris McCandless fell into this vicious cycle, and was effected by it throughout his adventurous life. Some of McCandless’ experiences later in life can be directly correlated with his childhood difficulties. But, in order of make sense†¦show more content†¦The way kids are raised by their parents effects their decision making and their values, beliefs and self-image until the day they die. If a kid grows up figuring things out herself or is neglected etc. , that kid is forced to do what is necessary to develop as fully as possible. Hamama and Arazi describe family relationships as being crucial in the development of the child. The article specifies that two direct ways that kids are hurt is through family cohesion and subjective well being. Family cohesion, in this article, is defined as the connections between family members that each family has, while subjective well being talks about people’s understanding of the life they live and how they react to everyday situations and how all that effects their emotional and cognitive mind. These two factors have shown to be directly correlated to children acting aggressively or unpleasant, according to Hamama and Arazi. Children’s aggression behavior includes three parts, according to Hamama and Arazi. â€Å"1. A cognitive dimension-hostility;2.an emotional dimension-anger; and 3. A behavioral dimension- physical and verbal violence† is how they defined aggressive behav ior. Those two factors are largely what influences children and their development, in Hamama and Arazi’s eyes(Hamama and Arazi). This article lays a great foundation for the explanation of Into the Wild. Into the Wild is the non-fiction story of how Chris McCandless, a normal guy in his later

Procedural Fairness and Natural Justice-Free-Samples for Students

Questions: 1.Whether there should be a procedural fairness obligation for decisions made by Cabinet. 2.What the position is for procedural fairness in the making of delegated legislation. Answers: Introduction: The decision making power for the interest of justice are the main objective of Administrative law. Procedural fairness and natural justice are the two main mechanisms of Administrative law. The term procedural fairness denotes the fair making of administrative decision[1]. This law has concentrated on the decision of the judges and the lawmakers. The future of a country is very much depended on the decisions. Therefore, it is required that the decision should fair in nature. According to Curt Griffiths, the procedural fairness makes the process of the decision fair and not act as a substantive fairness. If there is any laxity regarding the procedural fairness in a decision, the affected person may seek for judicial review[2]. The Supreme Court of Canada has ruled out certain process regarding the procedural fairness by stating the flexible character of the administrative process. Jodie Ferguson has made an attempt to find out the role of the procedural fairness in the development of the legislative content and analyse the principle in the light of present state of law in Canada. Certain dilemma are present regarding the process such as the power of the cabinet regarding the procedural fairness and how the concept affected their decisions[3]. The position of the procedural fairness in the delegated legislation has also been discussed. Discussion: The central pivot of this discussion is whether the legislative decisions have to maintain a duty regarding the procedural fairness or not. It has been observed that the law regarding the administrative process prescribed certain rules regarding the applicability of the procedural fairness to ensure the justice to all. The main objective of the doctrine is to establish a fairness provision in the decision so that the justice could not be denied[4]. It has been decided in the case of Saeed v Minister for Immigration and Citizenship that procedural fairness is protected by the legal principle and in the words of Mark Aronson, the courts should have to construe the legislation to establish the existence of procedural fairness. However, in the states of Canada, the rule or policy makers are hesitating to adopt the doctrine of procedural fairness in case of judicial review. It has been pointed out in Nicholsons case that the application of natural justice is depending on certain things and it is hard to establish the rules of quasi-judicial process in the society. Professor R. A. Macdonald is also of the view that a dilemma has been cropped up regarding the applicability of the procedural fairness on the cases of judicial review[5]. Development of procedural fairness: The approach regarding the fairness is widely approached by Professor David Mullan. According to him, the court should have to assess the review power with flexibility. He did not categorise the power as judicial or quasi-judicial. He has applied the process of procedural fairness on every types of power. He has observed that the judiciary confirmed the power of procedural fairness upon every official regarding his or her performance in case of administrative process. He believed the fact that the procedural law can better establish the theoretical approach of law[6]. The attitude of the court towards the procedural fairness has generated from the case of Nicholson. In this case, the chief justice of Supreme Court has stated that the concept of fairness needs procedural protection. The observation made by the Chief justice in the case has brought a theoretical revolution in the case of administrative law. The doctrine of procedural fairness has been divided into two parts. The first one deals with the intellectual underpinning of the procedural supervision and the second part deals with the potential application of fairness doctrine. It has been observed that the rule of natural justice is attached with the doctrine of procedural fairness reciprocally and it supports the inherent power of the court regarding the review power[7]. Prescriptive analysis is necessary for the upcoming development of the procedural review. In the case of Nicholson, it has been observed that the Police authority suspended him without giving an opportunity to make any submission regarding the same. Therefore, the process of fairness has been necessitated in this case. It has been observed by the Supreme Court that it is the right of the person to get justice and the doctrine of procedural fairness should be applicable so that serious consequence should not occurred by the statutory decisions[8]. According to the Chief Justice, the person should be treated fairly and not arbitrarily. Present state of law in Canada: The modern approach for procedural fairness has been generated by the ideology of Justice McLachlin. He has encoded his notions in a paper named The Roles of Administrative Tribunals and Courts in maintaining the Rule of Law. It has been observed by him that the public power should base on the rationality and fairness. The Supreme Court to the organizational tribunals has also delivered certain guidelines. The thinking capabilities of the decision makers should base on the fairness to ensure the justice for all. However, it has been observed that for past few decades the Canadian court or the policymakers do not maintain the applicability of the procedural fairness[9]. The modern applicability of the procedural fairness is based on the case called Baker v Canada (Minister of Citizenship and Immigration). The present state of law in Canada is depending on the five factors observed in this case. The factors can be categorised as follows: Procedural fairness should be based on the nature of decision and the process of it; It should maintain the nature of a statutory scheme; The importance of the decision should be analysed and the outcome of it on the individuals is needed to be verified; There should be certain legitimate expectations to challenge the decisions that are not based on the procedural fairness; Maintain an integrity regarding the doctrine of procedural fairness. The fifth factor of the case is much appreciated by the Canadian policy makers and it has been observed that the increasing problem regarding the fairness can be challenged in this ground. In the case of Dunsmuir, the doctrine of procedural fairness has been reaffirmed by the court and considered the doctrine as an essential part to secure justice for others[10]. Procedural fairness obligation: The Canadian administrative law addresses the action of the government in the provinces of Canada. In this case, the administrative decision of the government can be challenged and the court can decide the matter by way of review the decision of the policymakers[11]. It has been observed and literally mentioned under the law that the decision should be based on procedural fairness. In Canadian Union of Public Employees v Ontario 2003 SCC 29, it has been proved that the legitimate expectation is to represent a clear idea through the decision and it should maintain the process of fairness. In Canada, the judicial system is based on two principles such as the natural justice and impartial judgment. There are certain legitimate expectations regarding the establishment of procedural expectation. The expectations should be maintained so that the decisions of the administration ensure the justice. The procedural fairness regarding the decisions of the cabinet was for the first time established by the case of Baker v Canada (Minister of Citizenship and Immigration). It attempts to define both the substantive and the procedural matters of the administrative law. It has been observed by the Supreme Court that the decision of the court should be based on flexibility and certain appreciations regarding specific issues are to be mentioned. It should be taken into consideration that the decision of the cabinet or the administrative authorities should not be affected the personal justice of the human being. In the continents of Canada, the administrative tribunals are enjoying broad discretionary power regarding the acceptance of evidence and it has been observed by the Administrative Act that the powers can be governed in accordance to the stipulated principles. In Michael Di Biase v City of Vaughan, it has been observed that the natural justice should not be denied and the decision of the commissioner should be based on the procedural fairness. There is certain importance present regarding the maintenance of procedural fairness in the cabinet decision as the cabinet has to take decision on the important matters related to the internal as well as the external administration and therefore, the future of the state is very mush depended on the decisions[12]. It should be kept in mind that if the decisions are taken arbitrarily, the notion of justice could be getting affected and the idea of fairness will be deprived. Therefore, it is important to take these decisions for the interest of justice and for the well-being of the humankind. Five theories of the Bakers case have been taken for the facilitation of the process of fairness. It has been pointed out by the Supreme Court that the procedural fairness is based on the nature of the decision, role of the decision in the statutory schemes, impact of the decision on individuals, legitimate expectation for challenging the decision and choice of the procedure[13]. Procedural fairness in delegated legislation: The parliamentary system of law can be divided into two parts. The first one is the primary legislation and the second one is the secondary or delegated legislation. The rules and orders of the council and the other administrative parts of government can be regarded as the delegated legislation. Apart from this, certain bylaws and parliament sovereignty can be treated as the part of the delegated legislation. For the commencement of the process of the government, these decisions are playing an important part and therefore, it is required to maintain certain fairness regarding the applicability of the decisions[14]. The common principle of the law is to establish justice and equality among the citizen and in the words of the Martin Luther, justice delayed means justice denied. Therefore, the cabinet or the council should have to take certain decisions with fair provision. The accountability of the executive branches of the government are depended on the fair decision making process an d effective performance regarding the same should be maintained. Therefore, it can be said that the procedural fairness hold an important position in case of the delegated legislation[15]. Conclusion: Therefore, it can conclude that the mechanism regarding the procedural fairness plays an important part regarding the policymaking system of the administrative bodies and it can be stated that the rule of justice should be established through this process. It has been observed that for few decades, the mentality of the Canadian government was negative regarding the fairness and the outcome of it was grievous in nature. It is the common principle of law that if the decision of the court or any administrative tribunals do not reflect the clarity and fairness, it is impossible to secure justice[16]. However, through certain decisions, the Supreme Court observed the potentiality of the procedural fairness and bring back the process for the interest of justice. References: Asimow, Michael. "Five models of administrative adjudication."The American Journal of Comparative Law63.1 (2015): 3-32. Aylward, Stephen, and Luisa Ritacca. "In Defence of Administrative Law: Procedural Fairness for Administrative Monetary Penalties."Canadian Journal of Administrative Law Practice28.1 (2015): 35. Carr, Cecil T.Delegated legislation. Cambridge University Press, 2016. Evans, John M. "Fair's Fair: Judging Administrative Procedures."Canadian Journal of Administrative Law Practice28.2 (2015): 111. Ferguson, Jodie L., Pam Scholder Ellen, and William O. Bearden. 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"Perceived procedural fairness in deliberation: Predictors and effects."Communication Research42.3 (2015): 345-364 Ferguson, Jodie L., Pam Scholder Ellen, and William O. Bearden. "Procedural and distributive fairness: Determinants of overall price fairness."Journal of business ethics121.2 (2014): 217-231. Pierro, Antonio, et al. "Follower need for cognitive closure as moderator of the effectiveness of leader procedural fairness."European Journal of Work and Oganizational Psychology23.4 (2014): 582-595 Zhang, Weiyu. "Perceived procedural fairness in deliberation: Predictors and effects."Communication Research42.3 (2015): 345-364 Evans, John M. "Fair's Fair: Judging Administrative Procedures."Canadian Journal of Administrative Law Practice28.2 (2015): 111 Aylward, Stephen, and Luisa Ritacca. "In Defence of Administrative Law: Procedural Fairness for Administrative Monetary Penalties."Canadian Journal of Administrative Law Practice28.1 (2015): 35. 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