Text II

■Skimming

Ex. 1. The article below describes the major misunderstandings about the World Trade Organization. Skim the article and match the headings with the appropriate paragraphs:

1. The WTO does NOT destroy jobs or widen the gap between rich and poor.

2. Weaker countries are NOT forced to join the WTO.

3. The WTO is NOT for free trade at any cost.

4. The WTO is member-driven.

5. Commercial interests do NOT take priority over development.

6. The WTO is NOT undemocratic.

7. Small countries are NOT powerless in the WTO.

8. In the WTO, commercial interests do NOT take priority over environmental protection.

9. The WTO is NOT the tool of powerful lobbies.

The World Trade Organization

(a) That means:

• the rules of the WTO system are agreements resulting from negotiations among member governments,

• the rules are ratified by members’ parliaments, and

• decisions taken in the WTO are virtually all made by consensus among all members.

(b) One of the principles of the WTO system is for countries to lower their trade barriers and to allow trade to flow more freely. But just how low those barriers should go is something member countries bargain with each other. Their negotiating positions depend on what they want to obtain from other members in return.

(c) Underlying the WTO’s trading system is the fact that freer trade supports development. In that sense, commerce and development are good for each other.

(d) The WTO includes among its objectives optimal use of the world’s resources, sustainable development and environmental protection.

(e) Freer-flowing and more stable trade boosts economic growth. It has the potential to create jobs and it can help to reduce poverty.

(f) In recent years, developing countries have become considerably more active in WTO negotiations, submitting an unprecedented number of proposals.

(g) The private sector, non-governmental organizations and other lobbying groups do not participate in WTO activities except in special events such as seminars and symposiums.

(h) Countries willingly want to join the WTO. By joining the WTO, even a small country automatically enjoys the benefits that all WTO members grant to each other.

(i) Decisions in the WTO are generally by consensus. In principle, that’s even more democratic than majority rule because no decision is taken until everyone agrees. Quite often reluctant countries are persuaded by being offered something in return.

■Scanning

Ex. 2. Now read the article carefully. Are the following statements true or false? Write T for true and F for false. Correct the mistakes in the false sentences:

1. Decisions taken in the WTO are made by majority rule.

2. The member countries have to lower trade barriers without getting anything in return.

3. Sustainable development is one of the objectives of the WTO.

4. Free trade boosts economic growth.

5. Developing countries can’t submit proposals in the WTO.

6. Small countries enjoy fewer benefits than other WTO members.

7. The consensus rule means every country has a voice, and every country has to be convinced before it joins a consensus.

Ex. 3. Answer these questions about the article:

1. What do the WTO agreements result from?

2. Who are the WTO rules ratified by?

3. What do member countries bargain with each other over?

4. According to the article, what is the relation between free trade and development?

5. Do lobbying groups participate in WTO activities?

6. Are small countries forced into joining the WTO?

7. Why is the consensus rule considered to be more democratic than majority rule?

8. What is the way to persuade reluctant countries?

Ex. 4. Complete the sentences from memory:

1. The rules are _______ by members’ parliaments.

2. Decisions taken in the WTO are virtually all made __ _______ among all members.

3. One of the principles of the WTO system is for countries to _____ their trade _____ and to allow trade to _____ more freely.

4. Their negotiating positions depend on what they want to ______ from other members in ______ .

5. The WTO includes among its ______ optimal use of the world’s resources, ______ development and _______ protection.

6. Freer-flowing and more stable trade ______ economic ______.

7. In recent years, developing countries have become considerably more active in WTO _______ .

8. By ______ the WTO, even a small country automatically enjoys the ______ that all WTO members ______ to each other.

Ex. 5. Russia’s bid to join the WTO, filed in 1993, is known to have been the longest accession saga in the history of the world trade body. Get ready to discuss in class the risks and rewards of Russia in the WTO.

■Vocabulary Study

Ex. 6. Match words from each column to make common word combinations:

1) to boost	a) a proposal
2) majority	b) trade barriers
3) to lower	c) sector
4) private	d) rule
5) to submit	e) economic growth

Ex. 7. Find words / word combinations in the article with the meanings below:

1. to give someone something or allow them to have something that they have asked for

2. to get something that you want, especially through your own effort, skill, or work

3. to present for the approval, consideration, or decision of others

4. to try to influence the actions of public officials, especially legislators

5. something that is advantageous or good; an advantage

6. any regulation or policy that restricts international trade, especially tariffs, quotas, etc

7. to be at the basis of; form the foundation of

8. mutual discussions and arrangements of the terms of a transaction or agreement

Ex. 8. Complete each sentence with an appropriate word from the article. The first letter is given to help you:

1. The draft decision was adopted by (c_______).

2. They are (b_______) over the level of wages.

3. How are we going to (b_______) sales performance next year?

4. Many factors (u_______) my decision.

5. One of your first business (o_______) should be to get your own office.

6. All applications must be (s_______) by Monday.

7. A licence to sell alcohol was (g_______) to the club.

8. The group is (l_______) for a reduction in defence spending.

Ex. 9. Match the verbs below to the correct prepositions:

1) to result a) from b) of c) to

2) to depend a) from b) of c) on

3) to deal a) at b) on c) with

4) to contribute a) in b) to c) about

U NIT IV

ECONOMIC REFORMS IN RUSSIA

“Whenever you find that you are on the side of the majority, it is time to reform”

Mark Twain (American humorist, writer and lecturer, 1835-1910)

Active Vocabulary

assets

активы, имущество

bribe

взятка

capital flight

утечка капитала

to carry (smth.) out

осуществлять

cash

наличные деньги

corrupt bureaucracy

коррумпированные чиновники

crumbling infrastructure

разрушающаяся инфраструктура

declining population

сокращающееся население

dependent upon

зависимый от

deteriorating schools

разваливающиеся школы

discontent (n)

недовольство

to dominate

преобладать

economic collapse

экономический крах

elite

элита

financial manipulations

финансовые махинации

fully fledged

полноценный

geopolitical race

геополитическая гонка

high rate of

высокий уровень

independent reporting

независимое обозрение

to labor

трудиться

large scale privatization

широкомасштабная приватизация

to live according to one’s means

жить по средствам

to modernise

модернизировать

nominal value

номинальная величина

to plunge into poverty

впадать в бедность, в нищету

political tool

политический инструмент

to proceed (with)

продолжать

property rights

права собственности

purchasing power

parity

паритет покупательной способности

release of price controls

отпуск цен

to replicate

воспроизводить

to (be) run (by)

руководить

to rush (smth.)

торопиться с

severe recession

глубокий спад

shock therapy

шоковая терапия

state interference

вмешательство государства

subsequently

впоследствии

taxpayer

налогоплательщик

vast array of

огромная масса

vital

важный, существенный

withdrawal of subsidies

прекращение выплаты субсидий

Text I

■Skimming

Ex. 1. The article below gives an overview of the Russian economy. Skim the article and put the following points in the order they are mentioned:

1. the global financial crisis

2. the results of the economic reforms in the 90s

3. state control over television

4. shock therapy

5. dependence on natural resources

Economy of Russia

The economy of Russia is the twelfth largest economy in the world by nominal value and the sixth largest by purchasing power parity (PPP). Russia’s economic power lies in its key natural resources − oil and gas. Oil and gas dominate Russian exports, so Russia remains highly dependent upon the price of energy. The energy giant Gazprom is close to the Russian state and critics say it is little more than an economic and political tool of the Kremlin.

Since the collapse of the Soviet Union in 1991, Russia has tried to develop a market economy and achieve consistent economic growth. In October 1991, Yeltsin announced that Russia would proceed with radical, market-oriented reform along the lines of "shock therapy", as recommended by the United States and IMF. In economics, shock therapy refers to the sudden release of price and currency controls, withdrawal of state subsidies, and immediate trade liberalization within a country. It usually also includes large scale privatization of previously public owned assets.

However, this policy resulted in economic collapse, with millions being plunged into poverty and corruption and crime spreading rapidly. Under the government’s cover, outrageous financial manipulations were performed that enriched the narrow group of individuals at key positions of the business and government mafia. Many took billions in cash and assets outside of the country in an enormous capital flight.

Russian TV is dominated by channels that are either run directly by the state or owned by companies with close links to the Kremlin. The government controls Channel One and Russia One − two of the three main federal channels − while state-controlled Gazprom owns NTV. Critics say independent reporting has suffered as a result.

The protection of property rights is still weak and the private sector remains subject to heavy state interference. During the global financial crisis, Russia experienced a severe recession, until the growth was later on stabilized.

■Scanning

Ex. 2. Now read the article more carefully and answer the following questions:

1. According to the article, what does Russia’s economic power lie in? Why?

2. What is the energy giant Gazprom called by critics?

3. Since what time has Russia tried to develop a market economy?

4. What does the term "shock therapy" refer to in economics?

5. What is usually privatized during such reforms?

6. What were the results of the reforms in the country?

7. What happened due to outrageous financial manipulations in Russia?

8. Who are many TV channels in Russia run by? What risk does it pose to the country?

9. What is said in the article about the protection of property rights and the private sector in Russia?

Ex. 3. Now try to complete the following sentences from memory:

1. The economy of Russia is the twelfth largest economy in the world by _______ _______ and the sixth largest by _______ ________ ________.

2. Oil and gas dominate ________ ________ .

3. Critics say Gazprom is little more than an _______ and _______ _______ of the Kremlin.

4. Russia has tried to develop a market economy and achieve ________ economic _______ .

5. Yeltsin announced that Russia would _______ ______ radical, market-oriented reform along ____ _______ of "shock therapy".

6. However, this policy resulted in _______ _______, with millions being _______ _______ poverty and corruption and crime spreading _______ .

7) Many took billions in ______ and ______ outside of the country in an enormous _______ _______ .

8) During the global financial crisis, Russia experienced a ____ ___.

Ex. 4. Get ready to give a summary of the text in class.

■Vocabulary Study

Ex. 5. Match the words to their definitions:

subsidy recession withdrawal collapse large-scale to dominate cash to proceed outrageous

to continue to do something that has already been planned or started a sudden, complete failure; breakdown the removal or stopping of something such as support, an offer, or a service money in the form of coins or banknotes, esp. that issued by a government money that is paid by a government or organization to make prices lower, reduce the cost of producing goods etc a period of an economic contraction, sometimes limited in scope or duration very shocking and extremely unfair or offensive very extensive or encompassing; of great scope to control someone or something or to have more importance than other people or things

Ex. 6. Give nouns derived from the verbs below:

1. to withdraw − ________________

2. to collapse − ________________

3. to fly − ________________

4. to interfere − ________________

5. to subsidise − ________________

6. to dominate − ________________

7. to grow − ________________

8. to release − ________________

9. to achieve − ________________

10. to export − ________________

Ex. 7. Complete these sentences with a verb / adjective and a preposition from each box:

result dependent proceed refer

with to in on

1. The government was determined to _______ ____ the election in spite of the problems.

2. Norway’s economy is heavily ________ ____ natural resources.

3. The author didn’t _______ ____ his teachers in his article.

4. Fortunately that accident didn’t ______ ____ the death of passengers.

Ex. 8. Match the words to form collocations found in the text:

severe capital purchasing power withdrawal of property independent

subsidies reporting rights flight parity recession