Analysis of Russias Financial and Labour Crisis

Analysis of Russias Financial and Labour Crisis INTRODUCTION In 2003, major economic organisations and key economists predicted that within a decade, the Russian Economy will face a human capital and labour crisis that will be unable to meet the growing demands of the country. This prediction came true and Russia slowly witnessed diminishing labour market performance following the Global Financial Crisis starting in 2009. The Russian Federation has a very flexible labour market. Cutting wages, reducing working hours and minimising non-wage labour costs are some of the policies adopted by most of the companies to adjust to the economic scenario. The workers respond to this by changing jobs. Hence, there exists a high and stable overall employment rate, but also high wage inequality, informality and labour turnover, due to which firms do not have the incentive to invest in human capital and productivity improvements. Hence, the growth figures of the Russian Economy rarely indicate how the economic performance is impacting the average man. Problems in the labour market of Russia slowly became noticeable following the Global Financial Crisis that started in 2008. The global financial crisis had a significant impact on the Russian economy and its labour market. According to OECD Database, in 2009, the decline in the GDP was −7.9% (World Bank Economic Outlook, 2009). However, since the latter half of 2009, Russia showed economic recovery. There was 4.5% growth rate in 2010 (World Bank Economic Outlook, 2010), and 4.3% in 2011 (World Bank Economic Outlook, 2011). The graph above indicates the changes in the unemployment rate and GDP of Russia during 2008-09. Russia was the third country along with Slovenia in the list with highest downfall in the GDP after Estonia and Finland. The unemployment rate increased, although it was stable as compared to other countries This period saw a fall in the output generation of goods. Working hours and wages were reduced to adjust to the scenario. The Youth of the country were the most affected by the sudden increase in unemployment. As shown in the diagram, from 2009 to 2012, unemployment rate was the highest for people aged 15-24. The labour market strengthened a little in early 2013. Unemployment in the months of January, February, and March lowered by 0.4% than the rate prevalent in 2012. But the second quarter of 2013 again saw a reversal of this trend, with unemployment again growing up by 0.1% compared to 2012 (OECD Economic Survey- Russian Federation, 2013) This marked the advent of an Economic Slump in the Russian Economy that is discussed in the succeeding chapter. Russian Economic Slump: How and Why? Russia suffered from major economic slump in 2012 and tried to make efforts to recover from it using the oil and gas revenues. However the living standards and productivity was below those of advanced BRIICS countries. Growth in 2012 slowed not only because of cyclical factors but also due to slow down of potential output growth. The Ministry of Economic Development, in November 2013, projected long-term average growth to 2.5% (OECD Survey 2013) down from 4.3% (ibid) projected in April, warning that Russian growth until 2030 would lag behind the global average. The reason that led to the emergence of slump is the heavy dependence on natural resources and the challenge lies in reduction of dependence on exhaustible natural resources, strengthen sustainable, productivity-driven, regionally balanced and broad-based growth. The abovementioned Economic slump emerged in late 2012 and into 2013, resulting in the recent Russian Economic crisis triggered by stagnant terms of trade due to inefficient labour market reforms. The temporary factors that earlier boosted growth slowed down, reducing investment mostly driven by natural resource related sectors and public expenditures. The employment and capacity utilization rates are near their pre-crisis records. The unemployment rate has fallen because of employment gains, a fall in labour force, high wage flexibility and extremely low unemployment benefits. Inflation rose above the central bank target range of 5-6% (Ibid). Although this rapid rise was driven mostly by high food prices due to the poor 2012 harvest and headline inflation, the second half of 2013 was on a downward trend and inflation expectations are sticky. These factors structurally limited growth , slowing potential growth below 3% (ibid) This Russian economic slowdown led to several changes in the society and some significant trends were seen: Partial employment increase No demand for radical life changes or political changes Dormant discontent against crisis situation unique adjustment function of the Russian labor market suppressed the impact of the economic crisis on the workers and they did not express their discontent in the form of strikes The policies and reforms for this slump are given in further chapters as discussed by the OECD report on Russian Economic Crisis. OECD ECONOMIC REPORT: REFORMS AND POLICIES Previously we studied the background of Russia and the possible reasons that triggered the current Russian economic slump. OECD is a world organisation that has come up with a report about the changes required for the current economic slump. The Organization of economic cooperation and development (OECD) is a forum founded in 1961 that discusses economic growth and world trade of its 34 member countries. It provides answers to common problems, identify practices in favour of these countries and also provide coordination between the domestic and international policies. It gives assistance in economic, environmental and social issues. Objectives of the OECD- To promote sustainable development in economic growth and employment, giving a rise in standard of living along with the maintenance of financial sector. To provide economic expansion to member countries in order to promote development in world economies. To carry out this expansion on a non-discriminatory basis. OECD: Russian Labour Market The Russian Labour market is in segments even though the global financial crisis ended the long period economic growth .The labour market faces a number of problems like unequal earnings, lack of enforcement of effective labour laws and underdeveloped collective bargaining. To improve this imbalance between labour market flexibility and the protection of workers the Russian federation needs to impose favourable labour market institutions. This imbalance can be improved by shifting to a more sustainable based growth from dependence on revenues from natural resources such as oil (main relying natural resource) by making it attractive place to invest, study and work. Russia should ensure growth beyond natural endowment. BOOSTING PRODUCTIVITY Stronger and more sustainable growth is not possible without better use of skills and stronger innovation. Considerable resources are employed in lowà ¢Ã¢â€š ¬Ã¢â‚¬Ëœproductivity activities. Lifelong learning, activation programmes and temporary income support remain underdeveloped. Key Recommendations: Better market oriented training. Strengthening the quality of the education system Improve the governance of higher education. IMPROVING THE BUSINESS CLIMATE The business climate in Russia is turning out to be risky as rule of law is weak and widespread corruption along with widespread state involvement. The implications are widespread such as low level of entrepreneurship and investment. Thus a stronger policy initiative along with stronger financial sector is required to match the skills of labour. Key Recommendations- Identify risks to integrity for particular jobs, work and project. Strengthening the rule of law by enhancing the quality of law instead of increasing the number of laws and regulations thus giving rise to judicial independence. Incorporating accountability and transparency of public institutions through promotion of media freedom. COMPETITION FRAMEWORK IN RUSSIA Russia has the highest barriers to competition when compared with any OECD country or emerging country. This halts the diffusion of technology and hampers the speed with which the labour productivity catch up with best performers. As suggested by OECD product market regulation (PMR) indicator, it suggests that Russia’s PMR is very restrictive as compared to any other OECD country. A PMR indicator tells the state involvement extent and administrative barrier to developing new enterprises. This high rate is reflected in Small and Medium sized enterprises sector in Russia. Key Recommendations- Lowering administrative burden on firms by cutting ‘red tape’, introducing deemed clearance regime and carrying out systematic Regulatory Impact Analysis and Stake Holder consultations. Strengthen the competition by eliminating subsidies to large firms, prioritize resources only to important cases and liberalization of foreign trade and investment policy. Widening scope of competition by taking WTO accession as an opportunity and supporting the concerned firms with framework measures rather than imposing entry barriers. POLICY IMPLICATIONS The basic problem in the Russian Economy is that it is still heavily dependent on the communist age infrastructure and economic mechanisms. No innovations or new methods of economic development have significantly evolved after the communist era collapsed. The economy still uses capitalist management styles that were used in the erstwhile USSR. The economy is heavily dependent on gas reservoirs and their rising prices. This leaves the domestic market open to major jolts due to the fluctuating world market prices of gas and other natural resources. Growth in 2013 slowed to 1.3 percent, the lowest in a decade other than during the global recession in 2009 (OECD Economic Indicators Report 2013). As mentioned in the previous chapter, the economic resilience of the economy can be raised through structural reforms. Making the economy more balanced, and less dependent on the volatile revenue from the energy market is one of the main challenges. This challenge can only be met by higher productivity of labour and energy efficiency which further, can by increasing competition in the market and investment in the structural economy. The improvement of the political economy and implementation of structural reforms is crucial to revive the Russian Economy. The society and not natural resources needs to partake in Russia’s transformation. And so there is need for investments in infrastructure, innovation and human resources. Russia needs to step up its governance and address the increasing inter-regional disparity. The OECD survey indicates that the Federation is doing well in numerous areas but future growth and development is being retarded by poor governance and laws. Russia faces major transport bottlenecks that hinder the infrastructural growth in many potential regions. The irony is that a majority of the Russian population- about a million, are engaged in the railways with most of them being disguisedly unemployed in the process. The Russian Federation has one of the highest shares of tertiary educated population in the world, but the education system has had difficulties in providing the education according to the needs of the market and the firms. The education system of the country is outdated. It needs to be revamped to suit the modern sensibilities and economic conditions. Education will have to target higher paying and more intellectual jobs (white collar jobs). Public spending on education is low and the high inequality of educational opportunities adds to the problem. Major public and private sector investments in the education sector, especially in backward areas should be a national priority. Better quality of market oriented vocational training and an improved technical curriculum is also the need of the hour. Another good way to increase the labour force of the nation is to decrease the gender gap in the labour market. Education and training focused solely on women would be beneficial. The Government should also increase the retirement age of women to equal to that of men. A boost in education and skill in turn will increase opportunities and investments in Research and Development that will bring the much needed innovation and further enhance the business climate. Flexibility in the Russian labour market has helped the economy achieve very low levels of unemployment. However, firms lose the incentive to invest in human resource due to the high labour turnover. This causes high wage inequality. The OECD encourages better communication between employers and labour, encouragement to engage in long term training programmes and temporary income support from the Government. One industry that has a lot of potential in the Russian economy and will benefit out of the recommended labour changes by OECD is the automobile industry. This will not only give a much required push to the economy but also solve the transportation bottleneck that the nation is facing. The Russian Federation will also benefit by strengthening its Immigration policies. There is a large influx of unskilled labour from countries that were part of the former Soviet Union, who come in the search for better employment opportunities and standards of living. They are seen to be putting additional burden on the Government’s diminished welfare schemes such as free education and healthcare systems. This is happening due to the easy immigration policy of the state. Hence the welfare labour policies that are already functional in the State cannot give quality output due to this additional burden put on them. CONCLUSION It can be asserted that the economic slump in Russia is a temporary bottleneck in its path of growth and development and can the removed by focusing on the improvement of the labour market performance by implementing the measures given in the OECD Economic Report on the Russian Federation 2013. As suggested by the OECD, encouraging lifelong learning among skilled workers, training and targeting the youth for inculcating better skills, developing advanced Information Technology in this arena, reducing the gender gap in the work force, reforms in the education system and promoting innovation and technology can take the nation a long way. However other measures such as State support in welfare schemes that boost labour performance and privatisation of firms can be beneficial. Encouraging better Human Resource policies in Russian Firms and stronger collective bargaining power of the workers can also help promote the right balance between wages and productivity. Russia also needs to look into its immigration policy to stop the rapid rise in immigrants who are unskilled and ultimately become a burden on the state.

The Host Book Review

The Host Book Review Melanie Stryder is one of few â€Å"wild† human rebels who have evaded the alien souls currently taking over the Earth. With her younger brother, Jamie, and the man she loves, Jared Howe, Mel is on the run from souls who hunt down host bodies for use. Souls are creatures that rely on host bodies to survive. After insertion, they erase any mental presence of the being originally there and establish a claim over the body and mind. Earth is Wanderer's ninth planet, and Mel is her ninth host body.Upon waking inside her new body, she is shocked not only by the vividness of human emotions, memories, and senses, but quickly learns that Melanie Stryder is not willing to give up the entirety of her mind. Stephenie Meyer’s Twilight Saga has often been described as vampire fiction for people who don’t like vampires. It is fair to say that with The Host, her latest novel, she has once again managed to break the usual genre stereotypes. This time, writing a science fiction novel for people who don’t like science fiction.Unlike the most popular alien invasion movies and science fiction television shows, The Host doesn’t have Will Smith or Richard Dean Anderson to save the planet against a background of gun fire, secret weapons, and loud explosions. In The Host humanity is lost, vastly outnumbered and overwhelmed by superior technology. There are tiny pockets of resistance left; just a handful of humans who have yet been captured, but they don’t spend their days plotting to retake the planet from the aliens.Just trying to survive consumes all their time. The Host isn’t really about saving the planet from alien invaders; it’s a story about what it is to be human, about identity and about individuality. Most of all The Host is a story about the nature of love. Romantic  love, love of family, love of friends – all of these emotions are explored by Wanderer as she first surrenders to Melanieâ₠¬â„¢s emotional memories then surrenders to the emotions for herself.There is more than just memories left of Melanie though; she is trapped inside her own head unable to take control of her own body, forced to be an unwilling host to the alien Wanderer. Which makes things very interesting when Wanderer and Melanie eventually meet up with Melanie’s loved ones. Possibly the largest similarity between The Host and Stephenie Meyers Twilight Saga is the character of Wanderer. She has something of a Bella vibe going on. It is the way that they are both self sacrificing.Wanderer’s alien nature actually makes her even more self sacrificing than Bella which means that she needs others to look out for her and take care of her since she has little instinct for self preservation. Unlike the Twilight Saga, I would recommend The Host for both teens and adults. Stephenie Meyer wrote this book to attract a wide audience. All in all The Host makes a very compelling read. Avoiding the obvious science fiction cliches, it concentrates on humanity and the human emotions experienced by an alien invader who really wants to be a human.

Major Organizational institutions Essay

The major international organizations were all formed under one consensus developed by various countries. Each organization was created to fit a specific purpose, but they all follow a unique passion towards socio-economic stability on a global front, better governance, financial transparency, and respect for human rights (Karns, 2004). The organizations discussed in this paper are as follows: 1. International Monetary Fund 2. World Trade Organization 3. United Nations 4. Interpol 5. European Union The International Monetary Fund was created in 1944 with the sole objective of stabilizing exchange rates and the international monetary system. It consists of approximately 185 member countries. The structural hierarchy is topped by a managing director who is selected by executive directors representing various countries. The World Trade Organization was created in 1995 with the objective of liberalization international trade with checks and balances. Consisting of 153 members that constitute 95% of the total world trade, it is governed by a Ministerial Conference, which meets every two years and also appoints the head, the Director General. The WTO is further divided into the General council which deals with day to day affairs and policy decisions. The United Nations was first accepted by the world community through ratification in 1945. Comprising of 6 units ; The General Assembly, the Security Council, the Economic and Social Council, the Secretariat and the International Court of Justice, the UN’s main aim is to facilitate co-operation in the fields of international justice, international law, international security, global economic development, the reduction of poverty and in the end, sustaining world peace. Interpol was created to develop international police co-operation between various countries. The organization is headed by a Secretary General and is governed by the Interpol General Assembly. Its underlying principle relies on the fact that Interpol facilitates information between member countries regarding drug trafficking, organized crime, weapon smuggling and so forth. Interpol cannot get political and thus remains a neutral organization. Its constitution forbids it to act between issues overlapping two member states regarding military, political or religious issues. The European Union constitutes 3 organizations. These include; European Economic Community, European Coal and Steel Community, and the European Atomic Energy Community. The European Union is composed of various states from Europe, thus making it a regional yet international organization. The European Union acts as one country with one currency (with the exception of United Kingdom) and a single trade policy (McCormick, 2005). In terms of economic development, the united nations development program deals entirely with facilitating resources to poorer countries and helping them develop on the agenda that the current first world nations used. The UNDP provides economic assistance, a variety of policy adjustments and macroeconomic stability programs to impoverished nations requiring aid. The International monetary fund further helps poor countries recover from fiscal debt that Governments accumulate. This helps Governments mitigate their financial and economic needs on a short term immediate basis. Countries suffering from bankruptcy often avail the IMF last fund sponsor program which allows them to borrow from the IMF. The IMF then acts as the lender to the country in need, state bank. The World Trade Organization was one of the first international organizations to spread the globalization bubble. Its view was to see the whole world as one single market and thus eliminate all barriers to trade. The reason being value of competition, low production costs and specialization in country specific production processes to increase quality of goods produced for everyone. The World Trade Organization promotes free and unrestricted trade by doing away with protectionist policies. This means that the WTO and its member countries trade freely with each other without quotas and restrictions. However, unfortunately that has not always been the case in the world market, as many developing countries seek to protect their infant industries. However, with time, the WTO has introduced a set of new policies which force member countries to be receptive to foreign competition in the hope of creating a more effective and efficient way of production that benefits all of mankind. The WTO functions under the ideology of capitalism hoping that with increased open trade, wealth will be created which will trickle down to the masses (Bossche, 2008). Terrorism, war crimes and international order has become a major issue in the rapidly changing world scenario. With continuous major war being fought in various parts of the world during the past 9 years, various new global organizations have come about to ensure the stability of peace. The United Nations, since 1945 has played an active role in these scenarios through one of its organs; the United Nations Security Council. Representing 5 major powers, Russia, United States, China, France and United Kingdom, the UN Security Council tackles global terrorism through sanctions and banning groups forcing member nations to act upon the rebel groups creating problems. Sanctions are slapped against nations abusing their force or subduing other nations in their thirst for power. To ensure neutrality and consensus, all 5 members on the council have the right to veto any resolution passed in the Security Council. This task is further augmented by Interpol which provides co-ordination between the different police forces of the member states. Interpol often issues international warrants for terrorist wanted by different states residing in other states. This allows for a more coordinated effort towards sustaining international order and keeping track of problems facing different nations such as arms smuggling, drug smuggling and human trafficking (Dana, 2000). The United Nations also has an International Court of Justice where various ousted political leaders are tried fairly for the crimes they committed against humanity, their people and other sovereign states. This court of justice ensures that war crimes do not go unpunished and are globally recognized by all member states (Roberts, 1994). One of the main organizations that undertake in capital investment is the Organization for Economic Co-operation and Development. The OECD brings together various governments in order to provide sustainable development plans that various countries can use to break free from their economic turmoil. It also ensures the steady and sustainable flow of Human Capital Investment throughout the world. Raising living standards, maintaining financial stability and assisting other world economies through contributing in terms of intellect and physical economic strength is also part of the OECD mission. The future prospects for International Organizations are quite diverse when we observe the trends various organizations have seen over the past few years. With the dramatically changed global environment and thought process, a lot of organizations built on previous assumptions require change if they are to have any future prospects at all. The sudden shift to environmental change and the necessity to preserve our planet has put the focus of many governments, NGO’s and the majority of the population on Earth to shift their attention towards organizations that currently cater to this mind set. Environment change is being view increasingly as a step towards destruction man takes every day. When we talk about governance by such organizations, the prospects look constructive. Most people are turning towards such organizations because it caters to their â€Å"living green† ideology. This ideology is now engulfing our everyday life in the form of new foreign policies, industrial growth and development, and everyday management affairs ranging from the construction of roads to the syllabi of educational institutes. Day by day, companies adopt eco-friendly governance policies because that is what the people want and respect (Karns, 2004). Secondly, we have seen the failure of the United Nations once again. The International Court of Justice at max provides advice, the Security Council is tainted with bias behavior from certain states towards their allies and the resolutions tabled are often rejected on the basis of the veto vote. It is, without a doubt, an emerging thought, that governance by such organizations that police some and free others do not work. Thus, to think that such organizations can bring about global governance is mistaken. People have lost faith in such organizations and more people are doing so day by day. Finally, international monetary institutions and development support agencies are being shunned by developing countries to an alarming success. The false paradigm theory has broken away the countries that were once colonized. They now feel that imperial colonialism has now over-ridden their way of life and these international bodies promote it. Also, the fact that the policies and governance techniques these organizations offer are barely equip to deal with the problems threatening the developing nations of today. They might be well intended but fail to address the ailments of development countries. IMF policies and World Bank regulations are seen more as restrictions rather than good governance techniques to bring economies out of debt. Thus, their policies are often ignored. To presume that good governance can be bought through such international organizations only highlights the weak prospects that such organizations have in global governance when it comes to economic stability. References: Bossche, P. V. D. (2008). The Law and Policy of the World Trade Organization. Cambridge University Press. Dana, D. (2000). Conflict Resolution. McGraw-Hill. Diehl, P. (2005). The Politics of Global Governance: International Organizations in an Interdependent World. Lynne Rienner Publishers Karns, M. P. (2004). International Organizations: The Politics and Processes of Global Governance. Lynne Rienner Publishers McCormick, J. (2005). Understanding the European Union: A Concise Introduction. Palgrave Macmillan. Roberts, A. (1994). United Nations Divided World: the UN’s Roles in International Relations. Oxford University Press.

How Computer Affects a Students Reading Habit - 773 Words

Chapter 1 The Problem Background of the Study People are very thankful for this digital age. It has contributed a lot in everyday activities. Specifically it gave a big leap to businesses, the government, and education. According to Albert Einstein, â€Å"It has become appallingly obvious that our technology exceeded our humanity.† Humans nowadays have learned to become dependent on the technology available today. A research by the Asian Institute stated that Filipino schoolchildren are computer literate as almost three-fourths (74%) have access to the Internet. In the same research it is stated; since the emergence of internet in our computers, media dominate activities of students and youth—from play to leisure, family relations to†¦show more content†¦But because students feel more comfortable using the computer, they have learned different styles in doing their academic work, which gave way to Plagiarism. Many students simply do not know what plagiarism is. Their awareness, if any, often derives from urban legends and myths. Everything on the Internet is public domain and can be copied without citation. Laura Hennessey DeSena (2010). The popularity of using the Internet to gathering information, coupled with the aforementioned problems associated with student approaches to notetaking. Led Igo, Riccomini, and Bruning (2006). An example of plagiarism is the method of copying and pasting without acknowledging sources. Many students do not seem to realize that whenever they cite a source, they are strengthening their writing. Citing a source, whether paraphrased or quoted, reveals that they have performed research work and synthesized the findings into their own argument. Linda Stern (2010). In the experimental phase of this mixed-methods study, 49 middle school students receiving special education services took notes from the Internet under either a written notes or a copy-and-paste notes condition. 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