Economy of Russia Essay

Russia as a country has transformed significantly since the collapse of the Soviet Union. The economy has changed from a globally-isolated, centrally-planned economy to a more globally-integrated market based economy. The economy of Russia has gone through fluctuations since then to emerge as the eight largest by its purchasing power parity (PPP) in 2009 estimates (CIA, 2010). The Russian economy is largely dependent on the export of raw materials and natural resources, specifically oil and gas. Other resources include precious minerals, fishing, and agriculture. Since the collapse of the Soviet Union, Russia has undergone two major economic crises. They are the 1998 Russian Financial Crisis and the 2008 Russian Financial Crisis which was a part of the 2008 Global Economic Crisis. This article will examine the performance of the Russian economy after the two crises. In addition, the article will evaluate the current performance of the economy of Russia. The 1998 Russian Economic Crisis After the collapse of the Soviet Union, Russia undertook major economic reforms to transform its economy closed centrally planned socialist economy into a capitalistic market economy. According to the CIA Factbook, the most notable economic reforms in the 1990s were the privatization of enterprises that belonged to the state and the removal of Soviet price controls. The CIA notes further that the rapid privatization of the state enterprises (except in defense and energy related sectors) essentially handed over the enterprises to a few politically connected individuals popularly referred to as ‘the Russian oligarchs’ making equity ownership concentrated to a few. It was during this time that Pinto, Gurvich, and Ulatov noted that the country was plagued with corruption, financial manipulations, and capital looting (capital flight). In 1997, the Asian Financial Crisis began and this led to the fall in commodity prices. As the crisis spread economies heavily dependent on exports were highly affected. Russia’s economy being heavily dependent on world prices was hit hard. Pinto et al point out that the exchange rate of the ruble against the foreign currency was artificially fixed and the subsequent fiscal deficit accelerated the crisis. During the Asian Financial Crisis, the demand for oil and minerals declined and this affected the foreign currency reserves for the country. Poor management of the situation such as Russia’s Central Bank maintenance of the Ruble within a narrow range in the middle of the crisis by using the available foreign reserves made the situation worse. The poor measures resulted in the investors pulling off and inflation rising to over 80 per cent. The bail out offered by the International Monetary Fund and the World Bank did not help the situation. Several banks closed and the government debt increased considerably. The 2008 Russian Economic Crisis The Russian economic crisis of 2008 was an extension of the global economic crisis 2008-2009. A report prepared by the World Bank pointed out that although the Russian economy was better prepared to withstand the financial crisis, its dependence on export of limited commodities made it succumb to the crisis. According to the report, the crisis caused a decrease in capital flows as investors withdrew across the world markets, the credit crunch affected the banking system in Russia, the decrease in demand for oil eroded the fiscal and foreign reserves of the country, and the stock market suffered from the uncertainty of demand for oil (4). The International Monetary Fund noted that anti-crisis measures such as the states guarantee on loans to support the banking sector, the cutting of the interest rate by the Russian Central Bank, and the states support for the housing and car manufacturing helped in managing the crisis. Recession of the Russian economy slowed down and the economy has shown positive signs for recovery although slower than before the crisis. After going through the 1998 economic crisis, Russia undertook some policy and structural reforms with aim of cushioning the Russian economy against such a crisis as well as promoting economic growth and development. The structural reforms were necessary to create regulatory and institutional conditions for business and reduce the administrative risks. Some of the measures that were taken to counter the crisis, according to the World Bank (18- ) include devaluation of the ruble, cash infusion in to the market, tax reforms, privatization, and review of international trade policy. When the ruble was devalued, there was a sudden increase in the price of imported commodities but the move benefited the local industries and they were able to pay off their debts. The local enterprises also benefited from the cash infusion by the state, which in turn led to an increase in the demand for Russian commodities and services. The tax reforms were aimed at creating an enabling environment to stimulate the resumption of economic growth by reducing the tax burden. The reforms were aimed at corporate profit tax, VAT, and the removal of tax privileges that were not justified. The privatization process identified corporations that were to be privatized in 1999 and others in 2000. The international trade policy required reviewing to take into account the devalued ruble and the fluctuating price and demand for oil and raw materials. The Russian government also introduced the stabilization fund to hedge against the fluctuating international oil prices. The recovery from the crisis was however accelerated by the rise in international demand and price of oil. The Russian economy had fallen due to decrease in demand for oil and when the demand rose, the economy started to recover. 2008 Economic Crisis The government of Russia undertook intervention measures to manage the recent economic crisis and ensure that the country was on the way back to economic growth that had been achieved prior to the crisis. Some of the measures taken by the government were injecting funds and supporting the market. The government also offered bail outs for local corporations that relied heavily on foreign investment and hence highly susceptible to the changes in the global market. In addition, the government undertook further tax measures that saw the profit tax reduced to enable the corporations to remain operational. The government lifted import tariffs on industrial equipments to enable the rejuvenation of the affected companies. In a similar scenario to the 1998 crisis, the comeback of the Russian economy occurred after the increase in the international demand for oil. Current Russian Economic Status and Future Prospects According to the IMF, the economy of Russia has recovered from decline but is yet to recover to the levels that it had achieved prior to the crisis. The IMF projects that the Russian economy will 3. 6 per cent in 2010 up from a low of negative 7. 5 per cent. Russian economy is highly susceptible to economic crises due to its overdependence on the commodity markets. This has been evident from the two economic crises that have hit the country since the fall of the Soviet Union. Therefore, for the Russian economy to grow and cushion itself against the fluctuating international prices for commodities there is an urgent need to diversify the composition of the economy. The government of Russia has already taken measures such as investing in the information sector and has risen to become the world third largest software exporter as well as outsourcing. In addition, the government has encouraged the development of agriculture and manufacturing industry through technological and organizational modernization. The agriculture has improved with Russia becoming a net grain exporter rather than a net grain importer as was the case a few years ago. The economic reforms that have been undertaken by the Russian government have the ability to promote the development of a stable economy in the future. Russia is set to gain from the structural reforms that have been instituted and with the vast richness in natural resources and economic diversification, the Russian economy is set to grow and stabilize. References Pinto, B, Gurvich, E and Ulatov, S. â€Å"Lessons from the Russian Crisis of 1998 and Recovery† The World Bank. 2004 â€Å"Russia† CIA World Factbook. 28 April, 2010. 11 May, 2010. â€Å"Russian Federation† The International Monetary Fund. N. d 11 May 2010. < http://www. imf. org/external/country/rus/rr/> â€Å"Russian Federation† The World Bank. 2010. 11 May 2010. < http://web. worldbank. org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/RUSSIANFEDERATIONEXTN/0, menuPK: 305605~pagePK: 141159~piPK: 141110~theSitePK: 305600, 00. html>

Alice Munro “The Shinning Houses” Essay

The Shinning Houses Alice Munro presents a protagonist whose personality and values conflict with her neighbours. The protagonist Mary is an open-minded, fair, but somewhat powerless character. Mary is an open-minded individual who understands values from both Mrs. Fullerton and the new community. She is the only character in the â€Å"Shinning Houses† willing to â€Å"[explore Mrs. Fullerton’s] life as she had once explored the lives of grandmothers and aunts,† and the only one who buys her fresh eggs. Mary â€Å"[smiles]† openly to everyone while her new neighbours, whose â€Å"faces [are] applied,† â€Å"smile in rather a special way† that they only perceive Mary â€Å"as a conversational delight.† Even at the birthday party did Mary keep a smile and listen to the new neighbours talk among themselves, going about in â€Å"circles of complaint.† Mary’s own personality and values conflict with her neighbours’, but she remains open to any situation she faces. Mary is a fair lady, who does what she believes is right. Her name suggests religious allegory with Mary, the Mother of God, and human creation. Mary exhibits her Mother-like qualities at the birthday party, defending Mrs. Fullerton, the neighbour who â€Å"never [changes],† against the mothers who wear â€Å"nylons and skirts,†Ã‚ ¦[their] hair fixed and faces applied.† She knows that Mrs. Fullerton deserves a chance to stay in her home, as Mary, the Mother of God knows that all creation deserves a chance to live. Mary’s fair personality conflicts with her neighbours’ values and beliefs: while she is fair to human rights, the neighbours are fair to their community of â€Å"shinning houses.† Although Mary is courageous in being the only person to defend Mrs. Fullerton, she is somewhat powerless with her arguments against her neighbours. Mary stands alone only listening to her neighbours speak with â€Å"self-assertion.† She remains power less with â€Å"no argument† to defend Mrs. Fullerton and her â€Å"barn.† Outnumbered by â€Å"property-owners† who admire each other â€Å"as people admire each other for being drunk,† Mary is scared to tell her neighbours that â€Å"[Mrs. Fullerton has] been here for a long time.† She tells them anyway because she is compassionate toward Mrs. Fullerton†Mary is the only one who understands that â€Å"her place had become fixed, impregnable, all its accumulations necessary† down to the last  Ã¢â‚¬Å"stacks of old police magazines.† These neighbours however, do not care for compassion. They care for their children and community. Mary’s compassion, her only argument, fails to win support from the neighbours, creating more conflict in values with these neighbours â€Å"who win.† Mary faces a difficult situation in which both sides (neighbours and herself) are correct. Her open-mindedness, fairness, and powerlessness are traits whish create conflict in the â€Å"Shinn ing Houses.† Mary remains unheard, and there is nothing she can do but keep a â€Å"disaffected heart.†

Victim of Servre Depessive Disorder Essay Example | Topics and Well Written Essays - 500 words

Victim of Servre Depessive Disorder - Essay Example Here, too, Betsy is ripe for succumbing to the availability heuristic on the easily remembered situation of her brother, and the recent data coming from her parents. Framing contributes to Betsy's anxiety because of the natural tendency of children to believe parents. "Framing is a process of selective control over media content or public communication"(Wikipedia.org, 2006). Probably without realizing it, Betsy's parents have exerted "selective control over media content" by not researching the facts further, thereby leaving Betsy with only two assumed facts; one, her brother suffers from severe depression; and two, there is a 40 percent chance she will also suffer from depression. The parents comment constitutes a "frame" that easily calls to mind the common mis-perception that depressive diseases are hereditary. When in fact, the list of causes determining depressive disorders is lengthy and complicated. Confirmation bias will add to Betsy's depressing conclusions because it is "a phenomenon wherein decision makers have been shown to actively seek out and assign more weight to evidence that confirms their hypothesis, and ignore or under-weigh evidence that could disconfirm their hypoth

Mandatory Recycling in the USA Essay Example | Topics and Well Written Essays - 1000 words

Mandatory Recycling in the USA - Essay Example Air pollution that coming from the process of burning fossil fuels is one of the common factors that causes acid rain. (U.S. Geological Survey and U.S. Environmental Protection Agency, 1999) In other words, electric utility plants are among the major sources of emitted sulfur dioxide and nitrogen oxide that are present in the atmostphere. As explained by Science, global warming and the nitrogen oxide present in the acid rain could cause negative impact on the environment aside from declining the annual crop yields due to the presence of flood caused by typhoon and/or prolonged hot season that often leads to the growth of new pesticides and fungicides. (Hampton, 2008; Union of Concerned Scientists, 2006) For this reason, income from agricultural activities becomes lesser. On the other hand, the thinning of the ozone layer could cause human beings to suffer from skin cancer and other related health detriments. (The Daily Galaxy, 2007) Aside from causing serious damage on agricultural products, acid rain could also severely damage our natural sources of water such as lakes and streams. (U.S. Geological Survey and U.S. Environmental Protection Agency, 1999) Given the fact that trees absorb water from the ground, there is a higher chance that trees and other plants would die caused by high amount of acid found in the ocean, lakes, streams, rivers, and water reservoir. For this reason, forest degradation is most likely to occur.

Religion and Politics Research Paper Example | Topics and Well Written Essays - 1250 words

Religion and Politics - Research Paper Example Challenge to separate church from State arise due to immediate and long term causes which includes social, political and religious changes respectively. Americans are trying to divide the neighboring countries in terms of religion and politics. The division or separation of religion and politics rests on the cornerstone that, religious affairs cannot be compared and equated to politics. In this chapter, I will discuss how the recitation of the Pledge of Allegiance has brought forth conflicts between religion and politics among American citizens. I will base my argument on the Supreme Court case of Elk Grove Unified School District v. Newdow. The Pew Research Center’s Religion and Public Life Project has done studies on how religious issues cross over to political debates in the United States. The studies also include the examination of how politics spills over to religion. The above named project has also identified different ways in which religion has molded the American citizens’ behaviors and attitudes. These issues and attitudes are targets issues pertaining politics and whether religious institutions should be involved in the same. Ideally, the commitment of the public to religion in the United States has prompted the progression of the debate on whether religion and politics should be separated (Noll & Harlow, 2007). ... Elk Grove Unified School District in California, U.S.A, has a pledge case to defend against in the Supreme Court. Michael Newdow’s daughter attended classes in this school. Newdow argued that the mentioning of the phrase by students during recitation of the pledge violated the establishment clause of America. The case endured different levels before reaching the Supreme Court. First, Newdow sued the school to a federal district court in the city California. However, Newdow was not the first man to raise concerns over the recitation of the pledge by students in public school. The seventh circuit of 1992 supported a law in Illinois that allowed public school students to recite the Pledge. However, in 2003, Ninth Circuit of Appeal ruled that the addition of the phrase â€Å"Under God† in the pledge and the demand by the School District Policy for the recitation of the pledge by students was unconstitutional, and it also violated the establishment clause of the first amendm ent (Andonian, 2003). The Supreme Court dismissed the case in 2004, for lack of provident standing. On the contrary, the court concentrated on the interests of both Newdow and his daughter. Justice Stevens argued that probably, Newdow’s daughter was not willing to affirm the constitutional challenge. On the concurring opinions, the majority ware accused by Justice Rehnquist for avoiding to consider the advantages of the constitutional challenge addressed by Newdow (Goelzhauser, 2011). Justice O’ Connor also argued that, Newdow had grounds to challenge the Elk Grove school policy. He later found out that the school policy opposed difficulties in the establishment clause. However, the dismissal of the case by

INTRODUCTION TO MANAGEMENT Essay Example | Topics and Well Written Essays - 2000 words

INTRODUCTION TO MANAGEMENT - Essay Example For providing a flexible work approach and induce engagement among employees, result oriented employee programme was implemented. Also, an innovative employee incentive programme was initiated by the company where employees were asked to make choices with respect to rewards and incentives. Contents Introduction 4 Answer 1- Best Buy Employee’s Programmes 4 Answer 2: Assessment of Best Buy’s Job Listings 5 Answer 3: Employee Recognition Program 7 Answer 4: Motivation of Store employees 8 Conclusion 9 Reference List 10 Introduction In order to succeed in a business, effective management of employees is essential. Employee management programs are one of the few important HR strategies included in every stage of the overall human resource management process. The objective of the present report is to evaluate the various employment as well as customer retention strategies used by Best Buy. The case study has been evaluated as various strategies have been identified. The advan tages and disadvantages of the various employee programs implemented by Best Buy have been discussed. The study also analysed various theories relative to employee management and their applications in real business environment. With an understanding of the various theories and successful management of employee programme, a new employee recognition programme was also developed. Answer 1- Best Buy Employee’s Programmes Best Buys initiated three different employee programmes with the objectives of increasing overall growth and performance of the organisation. These are: 1. Customer- Centricity Customer centricity approach was implemented by the CEO of best buy in order to find out the most profitable customers of the organisation and giving maximum attention to them so that they become regular and loyal customers. This approach is based on Maslow’s need hierarchy theory. Thus, the company is aimed at satisfying the highest order needs of their customers. Advantages- thoug h it is difficult to identify the needs of different customers, through regular feedback, conversations and observations, it is possible to identify the exact requirements of important customers. This will help the employees as well as the store managers to prepare specific strategies for customer retention as well as increasing loyalty towards the products and services. Disadvantages- the major disadvantage is that it cannot be tested empirically and the theory does not apply to all form of jobs or work. In case of organisations set of needs which govern different customers might be different. 2. Results Oriented Work Environment Results oriented work environment or ROWE was implemented in the organisation so that employees are able to perform job in their most creative as well as efficient manner. The application of the programme is based on Vroom’s expectancy theory. According to the expectancy theory, individuals act in a particular way because they expect that choosing a particular behaviour over other will give them the desired or expected result. Advantages- the major advantage of expectancy theory is that it helps in achieving maximum satisfaction and minimum dissatisfaction within the interest of an individual. Since the psychological focus is ultimate satisfaction, individuals will always be willing to rectify their mistakes and take correct steps in order to achieve results. Disadvantages-

Sustainable development Essay Example | Topics and Well Written Essays - 2000 words

Sustainable development - Essay Example he concept of sustainable development is created to represent the goal of making sure that future generations will have an intact environment that will ensure their subsistence. However, even though the real meaning of the concept of sustainable development is unambiguous and certain, the literal definition and explanation of sustainable development have roused intense debates. Problems associated with the definition of sustainable development reveal that the concept is complicated, which merges intergenerational justice, equality, and efficiency derived from environmental, social, and economic factors. This essay presents a critical evaluation of the concept of sustainable development. It is worth mentioning that various disciplines have different definitions of sustainable development. Ecologists define the concept as a process that protects biodiversity; sociologists view it as a process that strengthens and sustains communities; and economists define it as a process that ensures that the quality of subsistence of future generations is better than or the same as that of the current generation (Ciegis, Ramanauskiene, & Martinkus, 2009). The concept of sustainability was introduced by the International Union for Conservation of Nature and Natural Resources (IUCN) in 1980. Several years later, the Brundtland Report released its official definition of sustainable development: â€Å"development that meets the needs of the present without compromising the ability of future generations to meet their own needs† (Lee, McNeill, & Holland, 2000, p. 42). In exploring the most serious environmental issues today and the ideal solutions to these problems, the Brundtland Report created the foundation within which the clashing principles of economic development and environmental protection could be reconciled. Much of the global community, by the end of 1992, had espoused the UNFCCC to â€Å"stabiliz[e]†¦ greenhouse gas concentrations in the atmosphere at a level that would