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... unemployment.
The main problem nowadays is not lack of knowledge, management, or new
capital - it is an unsustainable mountain of debts. Even with a lenient
"Law on the business & finance Financial Recovery of Agricultural Enterprises" currently
being passed through the Duma - only 30% of farms are expected to
survive. The law calls for rescheduling current debt payments over ten
years.
The sad irony is that Russian agriculture is now much more viable than
it ever was. Well over half the active enterprises are profitable
(compared to 12% in 1998). The grain harvest exceeded 90 million tons,
far more than the 75 million tons predicted by the government (though
Russia new_kwds still imports $8 billion worth business & finance of grains a year). The average
crop for 1993-7 was 80 million tones (with 88 million in 1997). But
grain output was decimated in 1998 (48 million tons) and 1999 (55
million tons).
Luckily, grain is used mostly for livestock feed - Russians consume
only c. 20 business & finance million tons annually. But by mid 1999, Russian grain
reserves declined to a paltry 2 million tons, according to USDA
figures. The problem is that the regions of Russia's grain belt
restrict imports of this "agricultural gold" and hoard it. Corrupt
officials turn a quick profit on the resulting shortage-induced price
hikes.
The geographical location of an agricultural enterprise often
determines its fate. In a study ("The Russian Food System's
Transformation at Close Range") of two Russian regions (oblasts)
conducted by Grigori Ioffe (of Radford University) and Tatyana Nefedova
(Institute of Geography of the Russian Academy of Sciences) in August
2001, the authors found that:
"... farms in Moscow Province are more productive than farms in
equivalent locations in Ryazan Provinces, while farms closer to the
central city of either province do better than farms near the borders
of that province."
It seems that selling a business business to business marketing internet well-located farms enjoy advantages in attracting both
investments business to business marketing internet and skilled labour. They are also closer to their markets.
But the vicissitudes of Russia's agriculture are of geopolitical
consequence. A hungry Russia is often an angry Russia. Hence the food
aid provided by the USA in 1998-9 (worth more than $500 million and
coupled with soft PL-480 trade credits). The EU also donated a
comparable value in food. Russia asked for additional aid in the form
of animal feed in the years 2000-2001 - and the USA complied.
Russia's imports are an important prop to the economies of its
immediate and far neighbors.
Russia is also business to business marketing internet a major importer of
American agricultural products, such as poultry (it consumes up to 40%
of all US exports of this commodity). It is a world class importer of
meat products (especially from the EU), its livestock inventory having
been halved business to business marketing internet by the transition. If it accedes to the WTO (negotiations
have been dragging on since 1995), it may become even more appealing
commercially.
It will have to reduce its import tariffs (the tariff on poultry is 30%
and the average tariff on agricultural products is 20%). It is also
likely to be forced to scale back - albeit gradually - the subsidies it
doles out to its own producers (10% of GDP in the USSR, less than 3% of
GDP now). Privileged business to business marketing internet trading by state entities will also be abolished
as will be non-tariff obstructions to imports. Whether the re-emergent
center will be able to impose its will on the recalcitrant business & finance agricultural
regions, still remains to be business to business marketing internet seen.
A series of apocalyptic economic crises forced Russian agriculture to
rationalize. Russia has no comparative advantage in livestock and meat
processing. Small wonder its imports of meat products skyrocketed. It
is questionable whether Russia possesses a comparative advantage in
agriculture as a whole - given its natural endowments, or, rather, the
lack thereof. Its insistence to produce its own food (especially the
High Value Products) has failed with disastrous consequences. Perhaps
it is time for Russia to concentrate on the things it does best.
Agriculture, alas, is not one of them.
Russia as a Creditor
By: Dr. Sam Vaknin
Also published by United Press International (UPI)
Russia is notorious for its casual attitude new_kwds to the re-payment of its
debts. It has defaulted and re-scheduled its obligations more times in
the last decade than it has in the preceding century. Yet, Russia is
also one of the world's largest creditor nations. It is owed more than
$25 billion by Cuba alone and many dozens of additional billions by
other failed states. Indeed, the dismal quality of its forlorn
portfolio wouldn't shame a Japanese bank. In the 18 months to May 2001,
it has received only $40 million business to business marketing internet in repayments.
It is still hoping to triple this trifle amount by joining the Paris
Club - as a creditor nation. The 27 countries with Paris Club
agreements owe roughly half of what Russia claims. Some of business to business marketing internet them -
Algeria in cash, Vietnam new_kwds in kind - have been paying back
intermittently. Others have business & finance abstained.
Russia has spent the last two years negotiating generous package deals
- rescheduling, write-offs, grace periods measured in years - with its
most obtuse debtors. Even the likes of Yemen, Mozambique, and
Madagascar - started coughing up - though not Syria which owes $12
billion for weapons purchases two decades ago. But the result of these
Herculean efforts is meager. Russia expects to get back an extra $100
million a year. business to business marketing internet By comparison, in 1999 alone business to business marketing internet Russia received $800
million from India.
The sticking point is a communist-era fiction. When business to business marketing internet the USSR expired it
was owed well over $100 billion in terms of a fictitious accounting
currency, the "transferable ruble". At an arbitrary rate of 0.6 to the
US dollar, protest many debtors, the debt is usuriously inflated. This
is disingenuous. The debtors received inanely subsidized Russian goods
and commodities for the transferable rubles they so joyously borrowed.
Russia could easily collect on some of its debts simply by turning off
the natural gas tap or by emitting ominous sounds of discontent backed
by the appropriate military exercises. That it chooses not to do so -
is telling.
Russia has discovered that it could profitably leverage its
portfolio of defunct financial assets to geopolitical and commercial
gain.
On March 25, Russia's prime minister and erstwhile lead debt
negotiator, Kasyanov, has "agreed" with his Mongolian counterpart,
Enkhbayar, to convert Mongolia's monstrous $11.5 billion debt to Russia
- into stakes in privatized Mongolian enterprises.
Mongolia's GDP is minuscule (c. $1 billion).
Should the Russian
behemoth, Norilsk Nickel, purchase 49% of Erdenet, Mongolia's copper
producer, it will have bagged 20% of Mongolia's GDP in a single debt
conversion. A similar scheme has been concluded between Armenia and
Russia. Five enterprises will change hands and thus eliminate Armenia's
$94 million outstanding debt to Russia.
Identical deals have been struck with other countries such as business to business marketing internet Algeria
which owes Russia c. $4 billion. The Algerians gave Gazprom access to
Algeria's natural gas exports.
Russia's mountainous credit often influences its foreign policies to
its detriment. It has noisily resisted every American move to fortify
sanctions against Iraq and make them "smarter". Russia is owed $8
billion by that shredded country and would like to recoup at least a
part of it by trading with the outcast or by gaining lucrative
oil-related contracts. The sanctions regime is in its way - hence its
apparent obstructionism. Its recent weapons deals with Syria are meant
to compensate for its unpaid past debts to Russia - at the cost of
destabilizing the Middle East and provoking American ire.
Russia uses the profusion of loans gone bad on its tatt
INDIAN GAMES
AN HISTORICAL RESEARCH
BY ANDREW McFARLAND DAVIS
"There are," says Father Brebeuf in his account of what was worthy business loan new of
note among the Hurons in 1636, [Footnote: Relations des Jesuites,
Quebec, 1858, p. 113.] "three kinds of games particularly in vogue with
this people; cross, new_kwds platter, and straw. The first two are, they say,
supreme for the health. Does not that excite our pity? Lo, a poor sick
person, whose body is hot with fever, whose soul foresees the end of
his days, and a miserable sorcerer orders for him as the only cooling
remedy, a game of cross.
Sometimes it is the invalid himself who may
perhaps have dreamed that he will die unless the country engages in a
game of cross for his health. Then, if he has ever so little credit,
you will see those who can best play at cross arra ... |
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