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SWOT ANALYSIS RUSSIAN ECONOMY – CURRENT STATE

 

Violation of the rules for flights or preparation for them, as well as violation of the rules for operating military aircraft or flying machines, which entailed grave consequences, -

 

shall be punished by imprisonment for a period from three to ten years with deprivation of the right to hold certain positions or to engage in certain types of activity for a period up to three years, or without it.

 

Article 393. Violation of the Rules for Navigation

 

Violation of the rules for navigation or operating military ships, which entailed by negligence a person's death or other grave consequences, -

 

shall be punished by imprisonment for a period from three to ten years with deprivation of the right to hold certain positions or to engage in certain types of activity for a period up to three years, or without it.

 

President of the Republic of Kazakhstan

 

N. NAZARBAEV

 

 

* Errata from the Kazakhstan Pravda

 

In the text of the published Criminal Code of the Republic of Kazakhstan, a number of technical mistakes were made.

 

1. In part 3 of Article 10 the text «negligent acts for which» should be read «negligent act for the commission of which».

 

2. In Article 18 after the word «a person» a comma is missing.

 

3. In part 2 of Article 33 instead of the word «obviously» the word «obvious» should be used.

 

(the newspaper «Kazakhstanskaya Pravda», No. 170 of 24 July 1997).

 

4. In part 3 of Article 64 after the words «public order» a comma is used unnecessarily.

 

5. In paragraph a) of part 7 of Article 70 the word «conditional conviction ahead of time» should be read «conditional release ahead of time».

 

6. In part 1 of Article 78 the word «of crimes» should be read «of a given crime».

 

(the newspaper «Kazakhstanskaya Pravda», No. 171 of 25 July 1997).

 

7. In paragraph a) of part 2 of Article 113, after the word «a convict» a comma is used unnecessarily.

 

8. In disposition of part 1 of Article 132 after the words «narcotic substances or» a preposition «in» is missing. And in the end after the word «begging» a comma is used unnecessarily.

 

(the newspaper «Kazakhstanskaya Pravda», No. 172 of 26 July of 1997).

 

9. In disposition of part 2 of Article 145, after the words «eviction from housing» a comma is used unnecessarily.

 

10. In sanctions of Article 154 after the words «five months» a comma is used unnecessarily.

 

11. In sanctions of part 1 of Article 157 after the words «up to nine months» a comma is used unnecessarily.

 

12. In disposition of part 1 of Article 162 after the words «military actions» a comma is used unnecessarily. In sanctions of part 1 of this Article instead of the words «is punished» one should read «are punished». In sanctions of part 4 of this Article instead of the words «are punished» one should read «is punished».



 

13. In sanctions of part 1 of Article 170 after the words «up to ten months» a comma is used unnecessarily.

 

14. In sanctions of part 1 of Article 183 instead of the words «is punished» one should read «are punished».

 

15. In paragraph d) of part 2 of Article 187, after the word «enmity» a comma is used unnecessarily.

 

16. In sanctions of part 1 of Article 190 after the words «up to six months» a conjunction «or» is missing.

 

17. In disposition of part 1 of Article 193, after the word «activity» a comma is used unnecessarily.

 

18. In sanctions of part 2 of Article 196 after the words «seven months» a comma is used unnecessarily.

 

19. In disposition of part 1 of Article 200 after the words «such information» a comma is used unnecessarily. In sanctions of part 2 of the said Article, after the words «five months» a comma is missing.

 

(the newspaper «Kazakhstanskaya Pravda», No. 173 of 29 July 1997).

 

20. In disposition of part 1 of Article 229 after the words «for himself» and «or other persons» commas are missing. In sanctions of part 1 of the said Article the words «correctional labour» should be read as «by correctional labour».

 

21. In disposition of part 1 of Article 238 after the word «damaging» a comma is missing.

 

22. In disposition of part 4 of Article 252 after the word «projectile weapons» a comma is used unnecessarily.

 

23. In disposition of part 1 of Article 283 after the word «structures» a comma is used unnecessarily.

 

24. In sanctions of part 2 of Article 284 after the words «up to seven months» a comma is used unnecessarily.

 

25. In sanctions of part 2 of Article 287 after the words «seven months» a comma is used unnecessarily.

 

26. In sanctions of part 2 of Article 288 after the words «up to seven months» a comma is used unnecessarily.

 

27. In sanctions of part 1 of Article 291 after the words «up to two months» a comma is used unnecessarily. In sanctions of part 2 of the said Article after the words «up to five months» a comma is missing.

 

28. In disposition of part 1 of Article 294 after the words «a person's death» a comma is missing.

 

29. In disposition of part 2 of Article 307 after the word «responsible» a comma is used unnecessarily.

 

(the newspaper «Kazakhstanskaya Pravda», No. 174 of 30 July 1997).

 

30. In the name of Article 342 instead of the word «disrespect» one should read the word «contempt».

 

31. In disposition of part 2 of Article 351 after the words «for venal purposes» a comma is used unnecessarily.

 

32. In sanctions of part 3 of Article 369 after the words «up to twenty years» and «capital punishment» commas are used unnecessarily.

 

(the newspaper «Kazakhstanskaya Pravda», No. 175 of 31 July 1997).

 

SWOT ANALYSIS RUSSIAN ECONOMY – CURRENT STATE

RUSSIA – a promising, dynamic and never dull business environment

Strengths   Large market Availability of high-quality labour Stable political situation (government does not do any radical reforms, it continues the on-going projects, policies and reforms) Support of start-ups and young entrepreneurs In the middle of global rankings Service sector becomes more important Support of innovations Geographical proximity and historical links to emerging markets An increasing number of companies using project oriented management and best practices in running a business Federal government commitment to support innovations The introduction of public private partnership practice in executing big infrastructure projects Introduction of cluster policies   Rich resource base Growing wealth Large domestic market Sound economic policy Low sovereign debt levels Sound external liquidity situation   Weaknesses   High level of corruption Complexity of tax system Lack of regulatory transparency Government bureaucracy Weak contract legislation Insufficient business ethics Deals are often made on the basis of trust Lots of Russian business registered in foreign countries (offshoring) To get to the Russian market it is important to establish good relations with local authorities Low competitiveness of the local businesses Weak development of regions, all activities concentrated in the country capital Dependence on the global energy landscape   State interventionism Weak institutions and corruption Demographics, infrastructure, education and health Low degree of diversification    
Opportunities   Large consumer market with rising middle class EU is the main trading partner – opportunities to develop strong relations with EU and execute mutual cross-border programmes aimed at social and economic development (LT-PL-RU, Tempus, Interreg) – The European neighborhood policy (ENP), Euroregions – have made little headway   Diversification of the economic base Development of sme sector Improvement of transparency and corporate governance   Threats   Positive economic developments are mostly attributable to high energy prices Political tensions and differing values in developing the relations with EU Energy is the most pressing topic between EU and Russia The development of alternative energy sources The uncertain direction of social cohesion   Losing competitiveness Lower oil prices Shrinking population Emigration of population

 

There is no intellectual understanding of RussiaJ)

 

Foreign investment:

- Russian government is putting a lot of effort into attracting more investment into the country and improving the investment climate in general

- Investment fund

- Government undertakes various measures to stimulate investments outside the resource-based industries (special economic zones, tax incentives, export promotion)

- Development bank

- Russia enjoys the highest percentage of satisfied foreign investors. Over 80% of foreign businesses indicate that they are generating very attractive returns on their businesses (ABN-AMRO report)

 

Factors of positive economic development:

- High prices for energy resources

- Stable macroeconomic policy (fiscal surpluses, reduction of debt levels

- Inflow of foreign capital

- Control of inflation

- Domestic demand

 

Russian rankings

- Ease of doing business index (112 out of 185)

- Index of economic freedom (51.1), 139th freest in the world

- UNDP Human development index – 55, ranking with high human development

- Global competitiveness index – 64 out of 148

 

Long term social and economic development plan until 2020 of the Russian Federation (Russia 2020)

Russia may not become of the strongest economies overnight but it is the matter of long-term perspective.

 

 

The diagrams for the presentation:

- Share of Russian GDP

Oil and gas represent around 25 % of GDP

- Growh in the number of smes figure

 

Strategic industries for Russian development

40 industries

- Production of military equipment

- Aircraft

- Spacecraft

- Ciphering tools

- Treatment and trade of radioactive and nuclear materials

- Fields highly endowed with natural resources

 

EU strategies in developing relations with Russia:

- Enlargement process

- ENP

- Four common spaces with Russia (economics, education and research and internal and external security)

 

Important notes:

A well –developed SME sector increases competition increases competition and is an important source of jobs and a generator of innovations.

Today we face the challenge of diversifying Russia’s economic structure and reducing its reliance on natural resource sectors has loomed large on policy agenda for well over a decade. Attention has therefore increasingly focused on modernization and in particular, on innovation, as the keys to Russia’s successful development over the long term.

The Russian economy is at crossroads.

Shifts in the global economy are affecting the country due to its strong reliance on oil and gas exports.

Russia is at a critical turning point in its economic, social and political development.

The economy was hit hard by the global financial crisis of 2008.

 

Russia’s competitiveness in 2012

The Russian Federation ranks 67th in The Global Competitiveness Report 2011–2012. A strong macroeconomic environment (22nd) owing to low government debt and a government budget that has moved into surplus is not enough to compensate for the country’s weak and deteriorating public institutions (133rd) and its struggling innovation capacity (85th). The country also suffers from inefficiencies in the goods (134th), labour (84th) and financial (130th) markets, where the situation has deteriorated in recent years.

Weak market competition (136th), caused by inefficient antimonopoly policies (124th), restrictions on trade and foreign ownership and a lack of trust in the financial system (134th), contribute to Russia’s vast resources being inefficiently allocated, hampering economic productivity. As the country’s economic development advances, its lack of business sophistication (119th) and low rates of technological adoption (137th) will present challenges for its sustained progress, although the high level of education enrolment, especially at the tertiary level, and a large domestic market (7th) can be exploited to improve Russia’s competitiveness.

Russia’s sustainable competitiveness will likely be affected by environmental and social factors, in addition to productivity, which is captured by the global competitiveness index. The country ranks particularly poorly in environmental sustainability, with some of the poorest ratings globally for three indicators: the strength of environmental regulations; the number of international environmental treaties ratified by the country; and the quality of the natural environment. Russia’s social sustainability performance lags behind Organisation for Economic Co-operation and Development (OECD) economies and is lower than in China and Brazil, although Russia outperforms India. In this regard and contrary to most other competitiveness measures, Russia’s profile differs from its BICS peers (Brazil, India, China and South Africa) (see Figure 1).

Evolutions in the global energy landscape guide the dynamics of oil and gas prices, which currently determine to a large degree Russia’s gross domestic product (GDP) and fiscal revenue. High oil prices currently support a strong macroeconomic position. This, however, also creates deep uncertainties about the country’s future should energy prices drop.

 


Date: 2014-12-21; view: 3127


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