GOVERNMENT SPENDING. TAXATION
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The Russian federal budget ran growing surpluses from 2001-2007, as the government taxed and saved much of the rapidly increasing oil revenues. The government overhauled its tax system for both corporations and individuals in 2000-2001, introducing a 13% flat tax for individuals and a unified tax for corporations, which improved overall collection. Responding to demands from the oil sector, the government reduced the tax burden on oil production and exports, but only marginally. Tax enforcement of disputes continues to be uneven and unpredictable. In 2007 the federal budget surplus was 5.5% of GDP, and in 2008 the government ended the year with a surplus of 4.1% of GDP. However, the 2009 budget was revised with an oil price assumption of $41 per barrel Urals, and the government expects a 7.5% deficit, which will be financed from the Reserve Fund, the larger of the government’s two stabilization funds. The government’s anti-crisis package in 2008 and 2009 are worth about 6.7% of GDP, according to World Bank estimates. Measures focus on supporting the financial sector and enterprises, through liquidity injections to banks and tax cuts/fiscal support to enterprises, entities that were hit first by the crisis, with modest support for households, small and medium enterprises (SMEs), and increased unemployment benefits. More expenditures will be likely if the crisis deepens or is prolonged.

 

COMERCIAL LAW

Russia has a body of conflicting, overlapping and rapidly changing laws, decrees and regulations, which has resulted in an ad hoc and unpredictable approach to doing business. In this environment, negotiations and contracts from commercial transactions are complex and protracted. Uneven implementation of laws creates further complications. Regional and local courts are often subject to political pressure, and corruption is widespread. However, more and more small and medium businesses in recent years have reported fewer difficulties in this regard, especially in the Moscow region. In addition, Russian businesses are increasingly turning to the courts to resolve disputes. Russia's World Trade Organization (WTO) accession process is also helping to bring the country's legal and regulatory regime in line with internationally accepted practices.

 

NATURAL RESOURCES

The mineral-packed Ural Mountains and the vast oil, gas, coal, and timber reserves of Siberia and the Russian Far East make Russia rich in natural resources. However, most such resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. Nevertheless, Russia is a leading producer and exporter of minerals, gold, and all major fuels. Natural resources, especially energy, dominate Russian exports. Ninety percent of Russian exports to the United States are minerals or other raw materials.

 

INDUSTRY

Russia is one of the most industrialized of the former Soviet republics. However, years of very low investment have left much of Russian industry antiquated and highly inefficient. Besides its resource-based industries, it has developed large manufacturing capacities, notably in metals, food products, and transport equipment. Russia is now the world's third-largest exporter of steel and primary aluminum. Russia inherited most of the defense industrial base of the Soviet Union, so armaments remain an important export category for Russia. Efforts have been made with varying success over the past few years to convert defense industries to civilian use, and the Russian Government is engaged in an ongoing process to privatize many of the state-owned enterprises.

 

AGRICULTURE

Russia has relatively little area for agriculture, but given its massive expanses, the country still accounts for about 9% of the world's arable land. Grain production for export is concentrated in the south of European Russia, with additional grain for domestic consumption grown throughout the rest of non-Arctic Russia west of the Urals as well as western Siberia. Livestock production was in decline from 1990 to 2006, when new government support policies were instituted to stimulate cattle and hog raising. Poultry production has rebounded and is rising at 17% per year. Small plots averaging one acre in size, urban and suburban gardens, and gardening cooperatives produce over half of Russia's food output. Former state and collective farms have been largely privatized, but management quality is uneven and profitability is highly dependent on proximity to major urban markets. Foreigners are not allowed to own farmland, although long-term leases are permitted.

INVESTMENT. BANKING

Russia attracted $58.7 billion in foreign direct investment (FDI) in 2008 (4.1% of GDP), up from $47.1 billion in FDI in 2007. Although much of the FDI in recent years was Russian capital “returning home,” from havens like Cyprus and Gibraltar, these flows have now reversed in the wake of the economic crisis. Moreover, although the annual flow of FDI into Russia was in line with those of China, India, and Brazil, Russia's per capita cumulative FDI lagged far behind such countries as Hungary, Poland, and the Czech Republic. Investment in manufacturing sectors accounted for 22% of the total. Real estate, extraction of raw materials, and trade were also high FDI growth sectors, accounting for 18%, 17%, and 15% of the new FDI, respectively. With the weakening global investment climate, Russian political risk (challenging business climate, lack of transparency, and weak rule of law/corruption) is now a significant consideration for investors’ allocation of scarce capital, even though the country’s markets remain largely untapped.

Although still small by international standards, the Russian banking sector before the crisis was growing fast and becoming a larger source of investment funds. To meet a growing demand for loans, which they were unable to cover with domestic deposits, Russian banks borrowed heavily abroad in 2007-2008, accounting for 57% of the private-sector capital inflows in 2007. Ruble lending has increased since the October 1998 financial crisis, and in 2007 loans were 66% of total bank assets, with consumer loans posting the fastest growth at 57% that same year. In 2004, Russia enacted a deposit insurance law to protect deposits up to 100,000 rubles (about $3,700) per depositor. Amendments to the law in the fall of 2008 increased the Deposit Insurance Agency's 100%-coverage for deposits up to 700,000 rubles. The vast majority of Russians keep their money in the banking sector. The combination of liberalized capital controls and ruble appreciation against the dollar in 2005-2008 persuaded many Russians to keep their money in ruble- or other currency-denominated bank deposits. In 2007, total retail deposits grew by 35%, with foreign currency deposits accounting for 13% of the total. In 2008, despite the onset of the crisis, deposits rose more than 14%, with foreign currency deposits exceeding 26% of the total.

Despite the banking sector’s recent growth, financial intermediation in the overall economy remains underdeveloped. Contradictory regulations across the banking and securities markets have hindered efforts to transfer resources from capital-rich sectors, such as energy, to capital-poor sectors, such as agriculture and manufacturing. The sector is dominated by large state banks, and concentrated geographically in Moscow and the Moscow region. Thus financial service providers face little competition for resources and charge relatively high interest rates for favored, large corporate borrowers.

This state of affairs makes it difficult for entrepreneurs to raise capital, and banks generally perceive small and medium commercial lending as risky. Most of the country’s financial institutions are inexperienced with assessing credit risk, though the situation is improving. The low level of trust, both between the general public and banks as well as among banks, makes the system highly susceptible to crises. As of early 2009, the sector had not emerged from its current crisis and the outcome was uncertain. Although the banking sector was not exposed to excessive leverage and structured products like in the West, a potentially serious problem of non-performing loans could cause future bank failures, especially those banks with concentrated lending to one adversely affected sector/client. Banks had repaid much of their short-term foreign debt obligations as of end-March 2009.

 

TRADE

The U.S. exported $9.3 billion in goods to Russia in 2008, a 25% increase from the previous year. Corresponding U.S. imports from Russia were $26.7 billion, up a significant 38% (in 2007 imports were down by 2%). Russia is currently the 28th-largest export market for U.S. goods. Russian exports to the U.S. were fuel oil, inorganic chemicals, aluminum, and precious stones. U.S. exports to Russia were machinery, vehicles, meat (mostly poultry), aircraft, electrical equipment, and high-tech products.

Russia's overall trade surplus in 2008 was approximately $180 billion, a significant rise from a $129 billion surplus in 2007. However, the overvalued exchange rate and collapse in global demand in the last quarter of 2008 quickly turned the trade surplus into deficit. Given a readjustment of the exchange rate, the outlook for 2009 is better with a projected surplus of $80 billion, given slower growth in exports and severe contraction of imports. World prices continue to have a major effect on export performance, since commodities--particularly oil, natural gas, metals, and timber--comprise nearly 90% of Russian exports. Russian GDP growth and the surplus/deficit in the Russian Federation state budget are closely linked to world oil prices.

Russia is in the process of negotiating terms of accession to the World Trade Organization (WTO). The U.S. and Russia concluded a bilateral WTO accession agreement in late 2006, and negotiations continue on meeting WTO requirements for accession. Russia reports that it has yet to conclude a bilateral agreement with Georgia.

According to the 2008 U.S. Trade Representative's National Trade Estimate, Russia continues to maintain a number of barriers with respect to imports, including tariffs and tariff-rate quotas; discriminatory and prohibitive charges and fees; and discriminatory licensing, registration, and certification regimes. Discussions continue within the context of Russia's WTO accession to eliminate these measures or modify them to be consistent with internationally accepted trade policy practices. Non-tariff barriers are frequently used to restrict foreign access to the market and are also a significant topic in Russia's WTO negotiations. In addition, large losses to U.S. audiovisual and other companies in Russia owing to poor enforcement of intellectual property rights in Russia are an ongoing irritant in U.S.-Russia trade relations. Russia continues to work to bring its technical regulations, including those related to product and food safety, into conformity with international standards.

FOREIGN RELATIONS

In the years after the dissolution of the Soviet Union, Russia took important steps to become a full partner in the world's principal political groupings. On December 27, 1991, Russia assumed the permanent UN Security Council seat formerly held by the Soviet Union. Russia also is a member of the Organization for Security and Cooperation in Europe (OSCE) and the Euro-Atlantic Partnership Council (EAPC). Russia and the European Union (EU) signed a Partnership and Cooperation Agreement. It signed the North Atlantic Treaty Organization (NATO) Partnership for Peace initiative in 1994. The NATO-Russia Founding Act established the Permanent Joint Council (PJC) in 1997, with the NATO-Russia Council superseding the PJC in 2002. Russia, despite misgivings, did not actively oppose enlargement of NATO by members of the former Warsaw Pact and the Baltic states, which had been forcibly integrated into the Soviet Union. However, Russia has recently stressed its strong opposition to the membership aspirations of Ukraine and Georgia.

Over the past several years Russia has increased its international profile, played an increasing role in regional issues, and been more assertive in dealing with its neighbors. In recent years, Russia has not shied from using its significant oil and gas exports as leverage over countries dependent on Russian sources. Russia continues to support separatist regimes in Georgia and Moldova. The August 2008 conflict between Russia and Georgia marked a new low point in relations between the two countries, with Russia unilaterally recognizing the Georgian breakaway regions of Abkhazia and South Ossetia as independent countries.

 

 

DEFENSE

Russia's efforts to transform its Soviet-legacy military into a smaller, lighter, and more mobile force continue to be hampered by an ossified military leadership, discipline problems and human rights violations, limited funding, and demographics. Recent steps by the Government of Russia suggest a desire to reform, and the August 2008 conflict with Georgia further highlighted the need for Russia to modernize its armed forces. There has been an increased emphasis on practical training, and the government is introducing bills to improve the organization of the military.

Despite recent increases in the budget, however, defense spending is still unable to sustain Russia's oversized military. Current troop strength, estimated at 1.1 million, is large in comparison to Russia's GDP and military budget, which continues to make the process of transformation to a professional army difficult. This is the result of the Soviet legacy and military thinking that has changed little since the Cold War. Senior Russian leaders continue to emphasize a reliance on a large strategic nuclear force capable of deterring a massive nuclear attack.

Russian military salaries are low. Theoretically, the army provides all necessities, but housing and food shortages continue to plague the armed forces. Problems with both discipline and brutal hazing are common as well. Such conditions continue to encourage draft evasion and efforts to delay military service. Moreover, military officials complain that new recruit cohorts are plagued by increasing incidences of poor education, communicable diseases, and criminality. HIV infection rates in the Russian army are estimated to be between two and five times higher than in the general population, and tuberculosis is a persistent problem.

The Russian Government has stated a desire to convert to a professional army, but implementation has been progressing slowly. In an effort to make military service more attractive, the tour of duty for conscripts was reduced to one year (from 18 months) beginning in 2008, and the military is offering increased pay and benefits to raise the number of professional servicemen. Current plans envision a transition to a mixed force, in which professional soldiers fill approximately 70%, including in select units, and conscription fills 30%. There is also an effort to develop a non-commissioned officer (NCO) corps, but the military faces difficulties recruiting NCOs, and has done little to develop the mechanisms and capability to sustain such a force.

 

SCIENCE AND TECHNOLOGY

At the start of the 18th century the reforms of Peter the Great (the founder of Russian Academy of Sciences and Saint Petersburg State University) and the work of such champions as polymath Mikhail Lomonosov (the founder of Moscow State University) gave a great boost for development of science and innovation in Russia. In the 19th and 20th centuries the country produced a large number of great scientists and inventors. Nikolai Lobachevsky, a Copernicus of Geometry, developed the non-Euclidean geometry. Dmitry Mendeleev invented the Periodic table, the main framework of the modern chemistry. Gleb Kotelnikov invented the knapsack parachute, while Evgeniy Chertovsky invented the pressure suit. Pavel Yablochkov and Alexander Lodygin were great pioneers of electrical engineering and inventors of early electric lamps. Alexander Popov was among the inventors of radio, while Nikolai Basov and Alexander Prokhorov were co-inventors of lasers and masers. Igor Tamm, Andrei Sakharov and Lev Artsimovich developed the idea of tokamak for controlled nuclear fusion and created its first prototype, which finally led to ITER project. Many famous Russian scientists and inventors were émigrés, like Igor Sikorsky and Vladimir Zworykin, and many foreign ones worked in Russia for a long time, like Leonard Euler and Alfred Nobel. The greatest Russian successes are in the field of space technology and space exploration. Konstantin Tsiolkovsky was the father of theoretical austronautics. His works had inspired leading Soviet rocket engineers such as Sergey Korolyov, Valentin Glushko and many others that contributed to the success of the Soviet space program at early stages of the Space Race. In 1957 the first Earth-orbiting artificial satellite, Sputnik 1, was launched; in 1961 on April 12 the first human trip into space was successfully made by Yury Gagarin; and many other Soviet and Russian space exploration records ensued. Nowadays Russia is the largest satellite launcher and the only provider of space tourism services. Other technologies, where Russia historically leads, include nuclear technology, aircraft production and arms industry. The creation of the first nuclear power plant along with the first nuclear reactors for submarines and surface ships was directed by Igor Kurchatov. A number of prominent Soviet aerospace engineers, inspired by the theoretical works of Nikolai Zhukovsky, supervised the creation of many dozens of models of military and civilian aircraft and founded a number of KBs (Construction Bureaus) that now constitute the bulk of Russian United Aircraft Corporation. The famous Russian airplanes include the first supersonic passenger jet Tupolev Tu-144 by Alexei Tupolev, MiG fighter aircraft series by Artem Mikoyan and Mikhail Gurevich, and Su series by Pavel Sukhoi and his followers. Famous Russian battle tanks include T-34, the best tank design of World War II, and further tanks of T-series. AK-47 and AK-74 by Mikhail Kalashnikov constitute the most widely used type of assault rifle throughout the world — so much so that more AK-type rifles have been produced than all other assault rifles combined. With these and other weapons Russia for a long time has been among the world's top suppliers of arms, accounting for around 30% of worldwide weapons sales and exporting weapons to about 80 countries. With such technological achievements, however, since the time of Brezhnev stagnation Russia was lagging significantly behind the West in a number of technologies, especially those concerning energy conservation and consumer goods production. The crisis of 1990-s led to the drastic reduction of the state support for science. Many Russian scientists and university graduates left Russia for Europe or United States; this migration is known as a brain drain. In 2000-s, on the wave of a new economic boom, the situation in the Russian science and technology has improved, and the government launched a campaign aimed into modernisation and innovation. Russia's President Dmitry Medvedev formulated top 5 priorities for the country's technological development: energy efficiency, IT (inluding both common products and the products combined with space technology), nuclear energy and pharmaceuticals. Some progress already has been achieved, with Russia's having nearly completed GLONASS, the only global satellite navigation system apart from American GPS, and Russia's being the only country constructing mobile nuclear plants.

 

Литература

 

 

1. Зайцева С.Е. Шибанова Е.С, Английский язык для экономистов. М., 2008.-184c.

2. Мюллер В.К. Дашевская В.Л. Каплан В.А. Романова С.П. Черкасская Е.Б. Дворкина А.Я. Есипова В.Я. Новый англо-русский словарь М., 1997.-880c.

3. Collin P.H. Weland Carol Dohn S. Derek Dictionary of American Business P.H. Collin Publisher, 1991.-313c.

4. Electronic dictionary АВВУ Lingvo 12 version, ABBY Software 2008.-электронно-оптический диск (CD-ROM)

5. Wikipedia the free encyclopedia http://wiki.org/

6. US department of state diplomacy in action

 

 

Содержание

 

I Часть I Тексты для аудиторной работы …………………….…………….3

 

 

I.1. Geographical position………………………….………………..…………3

I.2. Climate and population of Russia…………………….………….….……..8

I.3. Administrative and territorial divisions………………….……………….12

I.4. Government and political conditions……………………….…………….19

I.5. Economy……………………………………………………….…………25

 

II Тексты для самостоятельного чтения……………………………..…….30

 

 

II.1. History……………………………………………………………….…..30

II.2. Global position and boundaries……………………………………….…34

II.3. Art in Russia………………………………………………………….….35

II.4. Human rights………………………………………………………….…38

II.5. Gross domestic product……………………………………………….…39

II.6. Monetary policy………………………………………………….………40

II.7. Government spending. Taxation………………………………………....40

II.8. Commercial law…………………………………….……………............41

II.9. Natural resources………………………….…………………….…….…41

II.10. Industry……………………………………………………………….…41

II.11. Agriculture………………………………………………………………42

II.12. Investment. Banking…………………………………………………….42

II.13. Trade…………………………………………………………………….43

II.14. Foreign relations………………………………………………………...44

II.15. Defense………………………………………………………………….45

II.16. Science and technology…………………………………………………45

 

 

Литература ………………………………………………….………….…….48

 

Кафедра иностранных языков

Методические указания

 

THE RUSSIAN FEDERATION

 (английский язык)

 

 

Татьяна Леонидовна Лобановская

 

 

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Отпечатано с оригинал-макета. Формат 60Í90. 1/16

Печ.л. 3,06 Тираж 100 экз.

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Санкт-Петербургский государственный технологический институт

(Технический университет)

 

190013, Санкт-Петербург, Московский пр., 26

 

 

Дата: 2019-12-10, просмотров: 202.