Text Mongolia presses on key mine project 21-24 Text Emerging markets try to steady currencies 25-28





НазваниеText Mongolia presses on key mine project 21-24 Text Emerging markets try to steady currencies 25-28
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Москва надеется, что Мехико поддержит ее заявку на проведения саммита G20-2013.


Россия рассчитывает, что Мексика поддержит заявку Москвы на проведение саммита "группы двадцати" в 2013 году, заявил глава МИД РФ Сергей Лавров.В Москве на совместной пресс-конференции со своей мексиканской коллегой Патрисией Эспиносой Лавров выразил удовлетворение тем, что Мексика будет хозяйкой саммита "большой двадцатки" в 2012 году.

Министр особо отметил: "Мы признательны мексиканской стороне за то, что сегодня она объявила и официально приняла решение о признании рыночного статуса российской экономики. Уверен, что это будет способствовать расширению и наращиванию торгово-экономического и инвестиционного сотрудничества".

Глава мексиканского МИДа также выразила надежду на укрепление торгово-экономических отношений между Россией и Мексикой, отметив происходящий в последние годы рост товарооборота. Согласно приведенным ею данным, в 2010 году товарооборот между Россией и Мексикой составил 1,1 миллиарда долларов, что на 115% выше показателей 2009 года.

Эспиноса добавила, что Мексика "с большим вниманием изучает" кандидатуру России на председательство "большой двадцатки" в 2013 году.

Россия рассчитывает, что Мексика поддержит заявку Москвы на проведение саммита "группы двадцати" в 2013 году, заявил глава МИД РФ Сергей Лавров.

В Москве на совместной пресс-конференции со своей мексиканской коллегой Патрисией Эспиносой Лавров выразил удовлетворение тем, что Мексика будет хозяйкой саммита "большой двадцатки" в 2012 году.

Министр особо отметил: "Мы признательны мексиканской стороне за то, что сегодня она объявила и официально приняла решение о признании рыночного статуса российской экономики. Уверен, что это будет способствовать расширению и наращиванию торгово-экономического и инвестиционного сотрудничества".

Глава мексиканского МИДа также выразила надежду на укрепление торгово-экономических отношений между Россией и Мексикой, отметив происходящий в последние годы рост товарооборота. Согласно приведенным ею данным, в 2010 году товарооборот между Россией и Мексикой составил 1,1 миллиарда долларов, что на 115% выше показателей 2009 года.
Text 5.

Britain's stuttering economy

1.Give your views of the idea before reading the Text :

a) Did Britain’s not having adopted the euro harm its national economy ?

b) The economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP and seventh-largest measured by purchasing power parity (PPP), and the third-largest in Europe measured by nominal GDP (after Germany and France) and second-largest measured by PPP (after Germany). Has it been suffering from similar economic problems as other European countries to the same extent ?

2. Read the Text and answer the questions below :

Crisis may be too strong a word for it, but Britain’s economic predicament is more than a little uncomfortable. Only a year after climbing out of recession, the economy shrank again in the final quarter of last year. The surprising weakness was caused in part by unusually cold weather but it is not fully explained by it. A frail economy ought at least to be free of price pressures but Britons have had no such luck. Inflation rose to 3.7% in December. Further increases in the cost of imported commodities and this month’s rise in value-added tax (VAT) are likely to push the rate above 4% by spring. The VAT hike was needed to help shrink a budget deficit that is on track to reach 10% of GDP this financial year. This toxic mix of falling GDP, high inflation and a big budget deficit is rare among rich countries but not unique; Greece suffers from it, too.

Such a run of bad news looks like an argument for a policy rethink. If the economy stays weak, it may not be robust enough to withstand further deficit-cutting measures, including a planned rise in national-insurance contributions this April. The persistence of high inflation (it has been well above the 2% target for most of the last three years) calls into question the idea that the Bank of England could counter the effects of fiscal tightening by easing monetary policy. Its benchmark interest rate is already as low as it can feasibly go, and a further round of “quantitative easing” would stretch too far the gap between the bank’s objective of low inflation and its actions. A concern that businesses and wage earners might think policymakers were going soft on inflation led two of the bank’s nine-strong monetary-policy committee to vote for an increase in interest rates this month .Yet nasty as these numbers are, they should not lead the government to change its policy. For all the understandable anxiety, the economy has proved stronger than seemed possible in June when George Osborne, the chancellor of the exchequer, first set out his budget plans. Much of the pressure on inflation will subside in a year’s time. The slump in output may not endure either. The cold kept customers away from hotels, restaurants, airports and leisure centres, and stopped building work. Britain’s statisticians reckon that, without the bad weather, GDP would have been flat, but that is far from certain. Business surveys suggest the economy had slowed but was still growing. It is not unusual for recoveries to stall. America’s economy slowed last year before reviving. Britain’s endured a dud quarter or two as it emerged from previous recessions.

Experience cautions against a panic reaction to one bad number. But what if it transpires that the weather was not the main culprit and the economy has lost momentum? Mr Osborne has often seemed too confident that private-sector spending will fill the gap in demand left by fiscal austerity. That he has a medium-term plan for fixing the deficit is welcome (it would be nice if America had one). Indeed, his very enthusiasm for budget cuts gives him room with bond markets to postpone some of the pain. Spending cuts tend to reduce budget deficits more effectively than tax increases, so these should not be delayed. But if more bad figures emerge a reprieve on new taxes may prove to be wise.

Deficit-financed public spending is not a growth strategy. At best, it can provide a bridge between the consumer-led growth that Britain leant on before recession to the export- and investment-driven recovery it needs now. Strong global growth, high corporate profits and a weaker currency should allow Britain to grow. If the economy cannot thrive in these circumstances, it is in real trouble.

  1. What caused a new economic predicament in Great Britain ?

  2. What negative outcomes are expected to overwhelm Britain’s economy ?

  3. Are there rays of hope that such an economic situation is temporary ?

  4. According to the text , does the deteriorating economic environment effect Britons’ life detrimentally ?

  5. Why has the author given some comparative run-down concerning Britain and the USA ?

  6. What do you understand by ‘ strong global growth ‘ in the penultimate sentence?

  7. Why , in your opinion , is it real trouble if Britain’s economy does not thrive in the course of time ? The author has not answered this question .

3. Find the English matches for the following Russian words :

проявлять нерешительность , слабость ; подвергнуть сомнению ; неустойчивая экономика; ; затруднительное положение , опасная ситуация ; противостоять , сопротивляться ; быть на правильном пути ; главный виновник .

4. Match the following English words and combinations with their Russian equivalents:

shrink – hike – stall – robust – endure – transpire – austerity – thrive – dud

- негодный , никчемный

- становиться известным , обнаружиться

- режим строгой экономии

- резкий подъем , увеличение ( цен , налога )

- ясный . обоснованный . разумный

- выдержать испытание временем

- сокращаться , ухудшаться

- буксовать , терять скорость

- преуспевать , расцветать

5. Explain in your own words the meaning of the collocations given below and translate them into Russian :

- emerge from recession

- fill the gap in demand

- benchmark interest rate

- chancellor of the exchequer

6. Find the words corresponding to the definitions given below :

1. a general rise in the prices of services and goods in a particular country, resulting in a fall in the value of money; the rate at which this happens ;

2. be strong enough not to be hurt or damaged by extreme conditions, the use of force, etc. ;

3. a difference that separates people, or their opinions, situation, etc ;

4. an investigation of the opinions, behaviour, etc. of a particular group of people, which is usually done by asking them questions ;

5. a period of time when somebody/something has to wait because of a problem that makes something slow or late ;

6. a difficult time for the economy of a country, when there is less trade and industrial activity than usual and more people are unemployed .

7. Make a report on David Cameron and his Deputy Nick Clegg , Britain’s most influential personalities.

8. Render the following text . Sum all the main points of an article, providing sufficient detail to support the main ideas. The summary has to cover the main points clearly in a limited space and must also follow an organized structure.



Кэмерон: бюджетный дефицит Великобритании такой же, как у Греции




Несмотря на высокие размеры бюджетного дефицита Великобритания не испытывает таких проблем, с которыми сталкиваются другие страны ЕС, поскольку знает, как выходить из этой кризисной ситуации. Об этом в воскресенье заявил премьер-министр страны Дэвид Кэмерон в интервью американскому телеканалу ABC News.

«К сожалению, мы имеем дефицит такого же размера как Греция, Италия и Испания, — то есть те страны, которые попали в беду. Но нас эта беда не коснулась, так как мы продемонстрировали миру, что у нас есть план, дающий ответ, как противостоять этой проблеме», — отметил глава британского кабинета.

По его словам, умение справляться с государственным долгом путем сокращения бюджетных расходов, выполнять все имеющиеся долговые обязательства и сочетать это с принятием мер, способствующих росту национальной экономики, — это краеугольный камень работы любого правительства в кризисный или посткризисный период, передает ИТАР-ТАСС.

Эти слова Кэмерона перекликаются с недавним заявлением министра финансов Джорджа Осборна, который заметил, что нынешний кабинет останется верен проводимой им линии сокращения бюджетных расходов как единственно возможному рецепту борьбы с дефицитом, и назвал эту практику «скалой стабильности, на которой стоит наша экономика».

В свою очередь, лидер британских лейбористов Эд Милибэнд заявил в воскресенье в день открытия ежегодного съезда своей партии в Ливерпуле, что коалиционное правительство во главе с Кэмероном из трех направленных на сокращение дефицита мер в виде повышения налогов, сокращения расходов и обеспечения экономического роста, выполнило только первые два.
Text 6.

Mongolia presses on key mine project


1. Give your views of the ideas before reading the Text :

a) Mongolia used to contribute much to cooperation and integration as a member of Council for Mutual Economic Assistance (CMEA) .

b) They state that Mongolia is set to become the new Asian Tiger, or "Mongolian Wolf". What is this statement based on ? Make use of newspaper articles to underpin your arguments.


2. Read the Text and answer the questions below :

The government of Mongolia is seeking a bigger stake in Oyu Tolgoi, the biggest undeveloped copper mine in the world, in a surprise move that underlines the challenges ahead for Rio Tinto and Ivanhoe Mines as they develop the country’s flagship mining project.

The government of Mongolia has asked to reopen discussions over the 2009 investment agreement for Oyu Tolgoi, a project widely considered to be a litmus test for future mining developments, following mounting pressure from parliamentarians and environmentalists.

Mongolia is considered one of the hottest mining plays in the world, but questions have lingered over how the young democracy will craft mining policy, and how the $7bn economy will deal with a huge influx of mining investment.

Mining minister Zorigt Dashdorj said on Sunday that the government was seeking to change the terms of the Oyu Tolgoi investment agreement to allow Mongolia to increase more quickly its stake in the mine. The news comes as Mongolia is seeking to develop the mammoth coal deposit Tavan Tolgoi through listing in London and Hong Kong next year.

Mr Zorigt said the government had sent Ivanhoe Mines a letter asking to discuss the investment agreement. “We are proposing to start the negotiations on changing the time frame within which the Mongolian side will increase its equity to 50 per cent from 34 per cent,” he said.

Members of parliament this month submitted a letter to the prime minister calling for the Oyu Tolgoi investment agreement to be re-examined, after several similar demands from parliament earlier this year. Meanwhile environmentalists have raised concerns about the mine’s water use and plans to tap into deep underground aquifers to draw the liquid needed for concentrating the copper.

Rio Tinto, the operator of the mine, said that it had not yet received formal notification for the talks, while Ivanhoe said it had not received a letter from the Mongolian government.

“We respect the government of Mongolia and when they give us the notification to come talk, we’ll have those talks,” said Cameron McRae, chief executive of Oyu Tolgoi. “But I think what we are demonstrating is that the investment agreement is like a contract, and we’re going to honour our end and at least we can expect the government to honour its commitments.”

Miners and investors point to the signing of the Oyu Tolgoi investment agreement in October 2009 as the beginning of the current mining boom. The negotiation of the agreement took years and as part of the process, parliament repealed a mining “super tax” on copper and gold.

“It would be very disappointing if they were to revisit the investment agreement,” said Andrew Driscoll, analyst at CLSA. “The signing of the OT agreement in 2009 was a linchpin that prompted a lot of the investment we see now ... to change the rules at this stage of the game is ludicrous.”

  1. What is Mongolia famous for in terms of mining ?

  2. What facts from the text are evidence of a dual and inconsistent character of the Mongolian economy?

  3. Why is the Oyu Tolgoi investment agreement going to be revisited on Mongolia’s instigation?

  4. What are Mongolian environmentalists anxious about ?

  5. Why did members of Mongolian parliament write a letter to the prime minister?

  6. How did the signing of the OT agreement in 2009 infect Mongolia’s economy?

  7. Can you say the economy of the country remains heavily dependent on foreign investment ?

3. Find the English matches for the following Russian words :

безошибочный показатель ; приток денежных средств ; передать письмо ; получить доступ и использовать ; пересмотреть соглашение ; громадное месторождение ; разрабатывать политику .

4. Match the following English words and combinations with their Russian equivalents :

linchpin - commitment - notification – equity – timeframe – stake – influx – concern – litmus

- приверженность, выбор, ориентация, линия, политика

- оповещение , уведомление

- приток средств

- временные рамки

- лакмус

- то . на чем все держится , опора

- чистая доля в средствах

- участие , процент

- беспокойство . участие

5. Explain in your own words the meaning of the collocations given below and translate them into Russian :

- prompt investment

- repeal a tax

- at this stage of the game

- reopen discussions

6. Find the words corresponding to the definitions given below :

1.a planned piece of work that is designed to find information about something, to produce something new, or to improve something ;
2 . an arrangement, a promise or a contract made with somebody ;

3. the group of people who are elected to make and change the laws of a country ;

4. the group of people who are responsible for controlling a country or a state ;

5. a sudden increase in trade and economic activity; a period of wealth and success ;

6. money that you have to pay to the government so that it can pay for public services. People pay it according to their income and businesses pay it according to their profits. It is also often paid on goods and services .

7. In a project of your own repulse the widely-held view that Mongolia’s economic activity is still traditionally based on agriculture and the breeding of livestock .

8. Render the following text . Sum all the main points of an article, providing sufficient detail to support the main ideas. The summary has to cover the main points clearly in a limited space and must also follow an organized structure.



Россия и Монголия достигли компромисса по долгам, урану и дорогам


Премьер-министры России и Монголии во вторник договорились об условиях создания СП по добыче монгольского урана и выделении дополнительных средств на развитие совместной Улан-Баторской железной дороги — по 125 миллионов долларов в равных долях. Также РФ практически полностью списала Монголии очередной долг размером в 172 миллиона долларов и пообещала предоставить новый кредит.

В дальнейшем стороны могут объединить два совместных металлургических предприятия — «Эрдэнэт» и «Монголросцветмет» с последующим их выводом на IPO.

Кредит списали, дадим новый

Премьер-министр РФ Владимир Путин и его монгольский коллега Сухбаатарын Батболд в ходе встречи во вторник подписали соглашение об урегулировании монгольского долга перед РФ, о чем нынешней осенью была достигнута предварительная договоренность.

Речь идет о 172 миллионах долларов, которые Москва предоставляла Улан-Батору в качестве кредита на оплату участия монгольской стороны в СП «Монголросцветмет» (в размере 51%). Во вторник договорились, что 97,8% от суммы долга Россия списывает, оставшиеся 3,8 миллиона долларов будут погашены одномоментно, сообщил вице-премьер, глава Минфина Алексей Кудрин.

В 2003 году РФ списала все советские долги Монголии (98% от общей задолженности перед Россией), однако эта задолженность российского периода списана не была. Переговоры по ее урегулированию начались лишь в 2009 году.

По словам Кудрина, достижение договоренности по данному долгу позволит открыть новую страницу в кредитных и финансовых отношениях двух стран. Россия может предоставить Монголии новый кредит в размере 125 миллионов долларов, и в ближайшее время возможно заключение нового соглашения, сообщил глава Минфина РФ.

Также Россия выделит Монголии 375 миллионов рублей на вакцинацию скота, чтобы увеличить импорт мяса и молока на рынок РФ, отметил Путин.

Стороны договорились о возможности содействовать вступлению друг друга в международные организации. Россия подтвердила поддержку вступления Монголии в АТЭС после снятия моратория на прием новых членов, та, в свою очередь, заявила о том, что поддерживает вступление РФ в ВТО.

Уран и металлургия

Одно из важнейших направлений российско-монгольского сотрудничества — добыча полезных ископаемых, в частности, урана. Стороны подписали соглашение об условиях создания в следующем году СП по его добыче «Дорнод уран». Межправсоглашение о создании «Дорнод урана» было подписано в прошлом году, и российская сторона, выполнив необходимые формальности, уже выражала озабоченность затягиванием с заключением договоренности.

Теперь ожидается, что СП будет создано примерно через пять месяцев, сообщил во вторник первый замгендиректора ОАО «Атомредметзолото» Тигран Хачатуров. По его словам, запасы урана в Монголии для разработки «Дорнод уран» оцениваются в 30 тысяч тонн. Работы будут вестись в Дорнодском уранорудном районе, предположительно добыча составит около 2 тысяч тонн руды в год.

По словам главы «Росатома» Сергея Кириенко, СП может начать работать уже в следующем году. Финансирование проекта пройдет в несколько этапов — базовый этап предусматривает инвестиции в размере 300 миллионов долларов, сообщил он.

Также Путин рассказал, что Россия и Монголия обсуждают возможность объединения металлургических компаний «Эрдэнэт» и «Монголросцветмет» с последующим их выходом на IPO. Вырученные средства будут направлены на модернизацию и дальнейшее развитие предприятий.

Text 7.

Emerging markets try to steady currencies


1. Give your views of the idea before reading the Text :

a) Comment on Kofi Annan’s definition which is as follows. "A developed country is one that allows all its citizens to enjoy a free and healthy life in a safe environment."

b) Do you suppose Russia belongs to the category of developing nations ? Give your reasons.


2. Read the Text and answer the questions below :

The South Korean central bank surprised the markets on Friday with a $4bn lightning intervention in support of the won, carried out in the last two minutes of trading,

The day before, Brazil spent $2.75bn selling dollars in the currency swaps market to stop the rapid decline of the real.

Does this mean central banks in emerging markets are finally trying to reverse the sharp plunge in their currencies over the past month?

Probably not, currency strategists believe. Officials are primarily aiming to curb what they see as excessively wild swings in their currencies. They want stability, not appreciation.

The best evidence is that the amounts of money involved are not great. While emerging market central banks last week spent more than $7bn in support operations, few outside Korea and Brazil deployed very much. Taiwan, for example, spent $300m, Indonesia disbursed Rp1,740bn ($196m) buying government bonds and Peru spent $181m supporting the sol. Turkey put $300m into the lira.

They were nudging investors, not trying to frighten them into reversing the recent currency declines. For comparison, the Bank of England, admittedly operating in a much larger market, spent £27bn in its futile 1992 defence of sterling.

By the end of Friday, the won was still down 4.7 per cent on the week, the Brazilian real 8.6 per cent and the Turkish lira by 3.6 per cent.

Emerging market officials are not unhappy with the results, however much they might condemn the danger of currency wars, as Brazil’s president Dilma Rousseff did in the Financial Times this week.

Emerging nations fear the global economy is slowing fast, with a risk of further shocks if the eurozone fails to resolve its crisis. Guido Mantega, Brazil’s finance minister, said in an FT interview that he was satisfied with the real’s current level (16 per cent down in a month). “The real is today at R$1.85 [to the dollar] … There’s nothing to be done.”

Other countries are more cautious but the sentiment is widespread, not least in export-dependent Asian and eastern European economies. Officials recall that those countries that suffered most in 2008-9 were those with fixed exchange rates; those that allowed their currencies to fall, such as Poland, rode the recession by promoting exports and reducing imports.

Zaheer Imran Ahmad, a strategist at RBS, said: “Central banks are more tolerant of currency weakness now because of what happened after Lehman.”

But is there an exception ? Countries with heavy external borrowings cannot afford too much currency depreciation because it will increase the repayment burden. The dangers are especially serious for small export-oriented economies open to capital inflows. Korea is a case in point, with a ratio of external debt to gross domestic product of 43 per cent. In eastern Europe, Hungary on 174 per cent is very exposed.

Big tests lie ahead. With world markets still in turmoil, commodity prices are very volatile. The impact on many emerging economies, both exporters and importers of natural resources, will be more dramatic than on the developed world. Currencies are certain to respond.

  1. What is characteristic of central banks in emerging markets throughout the world ?

  2. What do currency strategists think about emerging markets’ successful attempts to curb currency swings ?

  3. Why has the author mentioned the Bank of England as an instance in the context ?

  4. Why are developing nations fearful of further economic shocks in the eurozone ?

  5. To what extent did different countries suffer from the 2008-2009 crisis ? What specifies this scope ?

  6. What is implied by the idea that the world markets are still in turmoil?

  7. Why are emerging economies more vulnerable while riding recessions ?

3. Find the English matches for the following Russian words :

обмен валют; резкое падение ; сильное колебание ; резко менять направление ; выплачивать ; приток капитала ; дело , относящееся к данному вопросу .

4. Match the following English words and combinations with their Russian equivalents :

curb – deploy – nudge – condemn – lie ahead – resolve – respond – involve – carry out

- реагировать , отзываться

- предстоять

- подталкивать , заставлять

- использовать ( ресурсы )

- сдерживать , обуздать

- повлечь , вызвать ( денежные расходы )

- осуждать , порицать

- воплощать в жизнь

- принимать решение

5. Explain in your own words the meaning of the collocations given below and translate them into Russian :

- futile defence

- emerging nation

- be in turmoil

- a case in point

6. Find the words corresponding to the definitions given below :

1. the system of money that a country uses ;

2. decrease suddenly and quickly ;

3. a legal agreement by which a bank lends you money to buy a house, etc. which you pay back over many years; the sum of money that is lent ;

4. the money system of Britain, based on the pound ;

5. money used to run a business, an activity or a project ;

6. a product or a raw material that can be bought and sold .

7. In your report speak about the signs of a developed country,

8. Render the following text . Sum all the main points of an article, providing sufficient detail to support the main ideas. The summary has to cover the main points clearly in a limited space and must also follow an organized structure.



Развивающиеся страны из-за финкризиса менее готовы к потрясениям


Экономический кризис подорвал способность развивающихся стран противостоять новым потрясениям, говорится в коммюнике комитета по развитию Всемирного банка.

«В то время, как развивающиеся страны внесли основной вклад в экономический рост в последнее время, кризис подорвал их способность противостоять новым потрясениям. Мы готовы предпринимать все меры для поддержания значительного, стабильного, сбалансированного и всеобъемлющего роста во всех странах-членах», — отметили участники состоявшегося в субботу заседания комитета.

Одним из главных своих приоритетов комитет назвал создание новых рабочих мест по всему миру. Члены комитета обязались вести совместную работу в этом направлении как с правительствами стран, так и с различными объединениями и организациями, в первую очередь, с «двадцаткой», Всемирной организацией труда и Международным валютным фондом.

Комитет приветствовал меры, предпринимаемые Всемирным банком по помощи переживающим политические потрясения странам Ближнего Востока и Северной Африки, а также страдающему от голода региону Африканского Рога.

«Мы должны поставить вопросы сельского хозяйства и продовольственной безопасности в качестве приоритетных направлений развития», — указывается в коммюнике.

Еще одним важным направлением деятельности комитет как обычно назвал борьбу за равенство полов.

«Мы приветствуем успехи, достигнутые в вопросе проведения институциональной реформы Всемирного банка, необходимой для решения современных проблем», — отмечается в документе.

Следующая встреча комитета состоится в Вашингтоне 21 апреля 2012 года.

Text 8.

Tokyo tackles taxation for tsunami reconstruction


1. Give your views of the ideas before reading the Text :

a) Early estimates placed insured losses from the earthquake alone at US$14.5 to $34.6 billion. The Bank of Japan offered ¥15 trillion (US$183 billion) to the banking system on 14 March in an effort to normalize market conditions. The overall cost could exceed US$300 billion, making it the most expensive natural disaster on record. The earthquake moved Honshu 2.4 m (8 ft) east and shifted the Earth on its axis by estimates of between 10 cm (4 in) and 25 cm (10 in).What has changed in Japan since?

b) For three decades from 1960, Japan experienced rapid economic growth, which was referred to as the Japanese post-war economic miracle. What was it based on ?


2. Read the Text and answer the questions below :

As debate rages in the US and Britain over top-end tax rates, Japanese authorities appear to be adopting a different approach: soak the rich, quietly.

Big earners in Japan already face a top marginal income tax rate of 50 per cent – the level found so objectionable by many British Conservative MPs. However, Tokyo officials plan to dun the wealthy with a temporary tax surcharge to fund reconstruction of areas devastated by the tsunami on March 11.

Although their plan still faces political obstacles, Japanese policymakers have at least managed to avoid the accusations of “class warfare” that have been levelled at US president Barack Obama over his effort to increase taxes on the wealthiest citizens.

The redistributive element of Japan’s reconstruction tax proposal is buried safely in the small print. While the government has proposed a flat 5.5 per cent surcharge on income tax, the deductions that slash the standard bill for lower-income payers mean it is the better-heeled who will really pay.

For a family with two children on a single annual salary of Y5m ($65,500) a year – a level close to the median – the government’s tax panel estimates the extra cost of the 5.5 per cent rise at a mere Y4,300 a year. However, a similar family earning Y10m annually would pay an extra Y36,700, and one on Y100m would have to stump up Y1.84m.

This means the temporary increase marks a small but potentially important turning point in the trend of recent decades towards lower income tax rates on Japan’s rich.

Such a turnround should not be a surprise. The Japanese once boasted of their creation of a “nation of middle class”, but falling average wages and a shift towards temporary and contract employment have largely destroyed the post-war dream of “job-for-life” salaryman security.

Worries about income inequality were one factor in the rise to power in 2009 of the left-of-centre Democratic Party of Japan. Mainstream political discussion is dominated by talk of how to ease the travails of a “squeezed middle” rather than of ways to cultivate “wealth creators” by coddling the better-off.

Some say that many of Japan’s richest pay less than their fair share of tax. This was a perception fuelled by revelations in 2009 that the prime minister at that time, Yukio Hatoyama, had failed to pay the required tax on more than Y1bn in funds given to him by his heiress mother over six years.

Mr Hatoyama eventually handed over hundreds of millions of yen in overdue tax. But forgiving officials gave some of the money back because the statute of limitations for payment had expired.

Wealthy taxpayers would be wise not to make too much of a fuss about the temporary increases. After all, the tsunami reconstruction surcharge is still only a tweak to a tax system that captures the equivalent of just 17 per cent of gross domestic product – one of the lowest levels among advanced economies.

It would be seen as poor taste to oppose a tax increase intended to ease the suffering of the residents of the stricken north-east, whose stoicism in the face of the March 11 disaster drew worldwide admiration.

One of the best arguments for higher taxes on the rich is their potential to reinforce public confidence that all income groups are sailing in the same national boat.

Japan, after all, is still a nation mercifully free of the kind of crime-ridden no-go zones that mar some US cities or the riots that raged across English communities this summer.

Yoshihiko Noda, the prime minister, has suggested that social calm is not guaranteed, saying this month that the dismay of people who fall out of the middle class could “eventually turn to despair and then to anger, and then the collapse of the stability of the Japanese society from its core”.

Many top-rate taxpayers are no doubt still hoping that worries about a faltering economic recovery will at least force the postponement of the temporary tax rises. However, Japan’s dire fiscal trends mean generally higher taxes are all but inevitable.

This will not be the last attempt to ensure that the rich pay more.

  1. What way out did Japanese officials find to cope with devastation caused by the tsunami of 11 March , 2011 ?

  2. Why are there many stumbling blocks and obstacles in carrying out their plans ?

  1. 3. How does income inequality influence Japan’s political life ?

  1. Why has the journalist given the example of Yukio Hatoyama in the article ?

  2. How do wealthy taxpayers respond to temporary tax increases ?

  3. What makes the Japanese nation socially calm and self- confident in spite of all hardships?

  4. Has the tsunami inflicted or changed the Japanese national character ?

3. Find the English matches for the following Russian words :

рвать и метать ; напоминать письмом об уплате долга ; классовая борьба ; тяжелый труд ; разоблачение ; обеспеченный ; переполох , смятение .

4. Match the following English words and combinations with their Russian equivalents :

devastate – slash – coddle – expire – reinforce – falter – boast – stump up – oppose

- противостоять

- хвастаться

- истекать ( о сроке )

- укреплять

- переплачивать

- двигаться неуверенно

- сокращать

- изнежить , баловать

- разрушать

5. Explain in your own words the meaning of the collocations given below and translate them into Russian:

- soak the rich

- sail in the same boat

- better- heeled people

- be free of crime-ridden no-go zones

6. Find the words corresponding to the definitions given below :

1. the people or an organization who have the power to make decisions or who have a particular area of responsibility in a country or region ;

2. the process of changing or improving the condition of something or the way it works; the process of putting something back into the state it was in before ;

3. the physical or mental energy that you need to do something; something that takes a lot of energy;

4. having a value in the middle of a series of values; located in or passing through the middle ;

5. lasting or intended to last or be used only for a short time; not permanent ;

6. work, especially when it is done to earn money; the state of being employed .

7. Make a 3 - minute talk about Japanese people’s stoicism in spring 2011 that ‘ drew the world’s admiration’ having newspaper articles at hand to prove your ideas.

8. . Render the following text . Sum all the main points of an article, providing sufficient detail to support the main ideas. The summary has to cover the main points clearly in a limited space and must also follow an organized structure.



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