Monthly Archives: November 2012

The HBCU Endowment Feature – Alabama State University


School Name: Alabama State University

Median Cost of Attendance: $16 604

Undergraduate Population: 4 743

Endowment Needed: $1 575 055 360

Analysis: Alabama State University needs approximately $1.5 billion for all of its undergraduate students to attend school debt free annually. The school is in direct competition with the University of Alabama at Tuscaloosa. A major advantage point that Alabama State University has is its geographic location in the state’s capital of Montgomery. Being near the political center of a state allows for the engaging of the lawmakers who determine state allocation of funds to the public institutions of higher education. The city’s African American population is approximately 76 000 but with the state’s overall high graduation rate at 69 percent, below the national average of 75 percent, it is not hard to imagine that the African American high school graduation rate is even more abysmal. According to the recent Schott Report the African American male high school graduation rate in Alabama is 42 percent so finding the raw numbers to increase enrollment is going to be a challenge for a state school which tend to be more heavily dependent on in-state students. However, once again being in the state capital which tend to have a strong economic presence presents an opportunity for the school to create a web of opportunities. HBCUs in the deep south face a myriad of social hurdles but especially in a state like Alabama where the University of Alabama is as beloved by the African American community despite an almost negligible presence at the university itself beyond athletics and janitors. It is a social hurdle Alabama State University must shift in order to create the demographic increase needed to be competitive in the long-term that would generate the kinds of donations needed to build a sound endowment.

As always it should be noted that endowments provide a myriad of subsidies to the university for everything from scholarship, faculty & administration salaries, research, and much more.

HBCU Money™ Business Book Feature – Ethiopia: A Post-Cold War African State


When the oppressive Marxist-Leninst dictatorship of the Derg collapsed in 1991, there was hope that a new era might begin for a democratic Ethiopia. However, backed by the United States, the Ethiopian Peoples Revolutionary Front established a government that would not share power. Instead of a transition to democracy, the EPRF denied opposition parties meaningful participation in elections, violated human rights, and intensified ethnic distrust among the people. According to critics, repressions of the government are on a scale equivalent to those of the world’s worst dictatorships. Vestal examines the plight of the Ethiopian people and counters questionable government pronouncements. He concludes with suggestions for a revised U.S. policy toward Ethiopia and for peaceful negotiations between the government and its political opposition to develop a more democratic approach.

Ethiopia, an African nation with close ties to the United States dating from World War II, is a troubled land. When the oppressive Marxist-Leninist dictatorship of the Derg collapsed in 1991, there was hope that a new era might begin for a democratic Ethiopia. However, backed by the U.S., the Ethiopian People’s Revolutionary Democratic Front established a government that would not share power. Instead of a transition to democracy, the EPRDF denied opposition parties meaningful participation in elections, violated human rights, and intensified ethnic distrust among the people.

According to critics, repressions of the government are on a scale equivalent to those of the world’s worst dictatorships. Vestal examines the plight of the Ethiopian people and counters questionable government pronouncements. He concludes with suggestions for a revised U.S. policy toward Ethiopia and for peaceful negotiations between the government and its political opposition to develop a more democratic approach.

The HBCU Money™ Weekly Market Watch


Our Money Matters /\ November 16, 2012

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $4.85 (UNCH)

Carver Bank New York (CARV) $2.80 (UNCH)

Radio One (ROIA) $0.82 (1.23% UP)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  163.60 (0.21% DN)

Botswana Stock Exchange (BSE)  7 565.63 (0.05% UP)

Ghana Stock Exchange (GSE)  1 152.76 (18.96% UP)*

Nairobi Stock Exchange (NSE)  92.59 (N/A)

Johannesburg Stock Exchange (JSE) 36 818.76 (0.56% DN)

International Stock Exchanges

New York Stock Exchange (NYSE) 7 901.59 (0.06% UP)

London Stock Exchange (LSE)  2 932.72 (1.21% DN)

Tokyo Stock Exchange (TOPIX)  751.34 (1.88% UP)

Commodities

Gold 1 712.90 (0.05% DN)

Oil 86.67 (1.43% UP)

*Ghana Stock Exchange shows current year to date movement. All others daily.

All quotes reported as of 3:00 PM Eastern Time Zone

HBCU Money™ B-School: Head Start Assets


Thomas Shapiro uses the term head-start assets to refer to the assets that children can inherit from their parents that give them a “head-start” in life when compared to individuals who do not have these head-start assets. A good example of a head-start asset would be an inheritance that a child receives from his or her parents which gives them the amount of money required to put a down payment on a home. “This is a quick way of identifying families that might potentially receive large enough financial assistance to transform biographies, improve their class standing, and attain advantages for at least one child” says Shapiro. In order to examine the trends in head-start assets and inheritances between whites and African-Americans Shapiro used data from the Panel Study on Income Dynamics from the year 1984 to 1999. When examining head-start assets along racial lines, whites are 2.4 times more likely than blacks to have parents with substantial wealth resources that can be used to give them an advantage in life. Data also reveal that among white families who received an inheritance the amount received averages at $76,000, while the average inheritance received by African-Americans was $31,000. Even when African-Americans are lucky enough to receive some sort of a head-start endowment they are receiving, on average, less than half of what the average white person gets. A lower-income individual fortunate enough to receive a substantial inheritance from their parents at some point in their life will also have the opportunity to escape the debt trap that many low-income families experience in the United States today. Because people who live on low yearly income must resort to credit to finance a great deal of their purchases they often fall short on payments and fall into a perpetual cycle of constant debt that may last their entire lives. A substantial inheritance would enable such an individual to clear their debt and allow them to chance to possibly focus the investment of their earnings on cultivating the growth of human capital in their children.

One such advantage that an individual who receives these head-start assets can enjoy is in the form of enhanced cultural capital. “Cultural capital refers to an understanding of what gives a person advantages or disadvantages in school, business, and social situations” (Shapiro 66). Those individuals fortunate enough to inherit a substantial amount of money and propel themselves into a class above the one in which they are currently a member gain the associated higher levels of cultural capital that go along with belonging to a higher social class. For instance, an inheritance that allows a family to move from a neighborhood with a poorer public school to one with a more well-endowed school and reap the benefits in cultural capital from the greater range of extracurricular activities that are offered. The structured extracurricular activities that are absent in schools with low funding and present in schools with high funding provide students with structure in their lives and also the opportunity to interact with other adults and learn important social skills that may benefit them later in life. Those children without access to such programs lack the opportunity to develop certain forms of social and cultural capital that would have otherwise helped them to advance their status in their future. Low-income families who do not receive these head-start assets do not have the opportunity to develop the cultural capital that is necessary to advance oneself to a higher status later in life.

Relating back to intergenerational mobility, it is easy to discern that this type of pattern that is becoming more and more evident in recent decades has the overall effect of further solidifying one’s class and status position throughout life. Individuals who come from wealthy families will continue to get head-start assets while those from poorer families will continue not to. The effect of this is an overall decrease in intergenerational mobility, especially for low-income African-Americans who, on average, have much worse prospects concerning head-start assets and inheritance.

Source: Hidden Cost of Being African American with explanation provided via Wiki contributor.

HBCU Money™ Business Book Feature – Medical Apartheid


From the era of slavery to the present day, the first full history of black America’s shocking mistreatment as unwilling and unwitting experimental subjects at the hands of the medical establishment.

Medical Apartheid is the first and only comprehensive history of medical experimentation on African Americans. Starting with the earliest encounters between black Americans and Western medical researchers and the racist pseudoscience that resulted, it details the ways both slaves and freedmen were used in hospitals for experiments conducted without their knowledge—a tradition that continues today within some black populations. It reveals how blacks have historically been prey to grave-robbing as well as unauthorized autopsies and dissections. Moving into the twentieth century, it shows how the pseudoscience of eugenics and social Darwinism was used to justify experimental exploitation and shoddy medical treatment of blacks, and the view that they were biologically inferior, oversexed, and unfit for adult responsibilities. Shocking new details about the government’s notorious Tuskegee experiment are revealed, as are similar, less-well-known medical atrocities conducted by the government, the armed forces, prisons, and private institutions.
The product of years of prodigious research into medical journals and experimental reports long undisturbed, Medical Apartheid reveals the hidden underbelly of scientific research and makes possible, for the first time, an understanding of the roots of the African American health deficit. At last, it provides the fullest possible context for comprehending the behavioral fallout that has caused black Americans to view researchers—and indeed the whole medical establishment—with such deep distrust. No one concerned with issues of public health and racial justice can afford not to read Medical Apartheid, a masterful book that will stir up both controversy and long-needed debate.