Ф. Р. Мирзоева

English for Students of Economics.
Английский язык для студентов экономических специальностей

Учебное пособие

ebooks@prospekt.org

Информация о книге

УДК 811.111(075.8)

ББК 81.2Англ-923

М63

Автор:
Мирзоева Ф. Р., кандидат педагогических наук, доцент кафедры английского языка вечернего отделения.

Рецензенты:
Васьбиева Д. Г., кандидат экономических наук, доцент Департамента английского языка и профессиональной коммуникации Финансового университета при Правительстве РФ;
Щербакова О. Ю., кандидат филологических наук, профессор кафедры гуманитарных дисциплин и иностранных языков Российского университета кооперации.

Учебное пособие предназначено для использования как в магистратуре и аспирантуре экономических специальностей, так и для широкого круга лиц, изучающих экономику и английский язык. Цель данного пособия – дальнейшее развитие навыков чтения и перевода литературы по специальности, а также развитие умений речевого профессионально-ориентированного общения в рамках тематики, предусмотренной программой по иностранному языку для магистров и аспирантов, обучающихся по направлениям подготовки «Международная экономика», «Международный бизнес».

В пособие вошли информативные тексты и аутентичные статьи профессиональной направленности из современных англоязычных изданий.

УДК 811.111(075.8)

ББК 81.2Англ-923

© Мирзоева Ф. Р., 2021

© Дипломатическая академия МИД России, 2021

ПРЕДИСЛОВИЕ

Бурное развитие современного информационного пространства в процессе глобализации, а также не менее динамичное развитие интеграционных процессов буквально во всех областях жизни общества, диктуют необходимость изучения иностранных языков для использования в профессиональной сфере.

Данное учебное пособие поможет ознакомиться с современными экономическими реалиями и освоить лексику и терминологию, обсуждая и изучая специальную литературу по экономической проблематике. Пособие «English for students of Economics» предназначено для магистров и аспирантов экономических специальностей, общая языковая компетенция которых соответствует уровням В2-С1.

Основные задачи пособия:

• совершенствование навыков чтения оригинальной литературы по специальности;

• расширение и закрепление лексической базы по специальности;

• формирование и развитие навыков реферирования, аннотирования и компрессии.

Пособие построено на оригинальных статьях по экономике из солидных англоязычных изданий и интернет-ресурсов, что позволяет ознакомить магистров и аспирантов со спецификой профессионального, социального и культурного контекста.

Учебное пособие содержит 5 разделов (Units) и построено по тематическому принципу, соответствующему разделам рабочей программы «Английский язык профессиональной деятельности» для направления подготовки Экономика – 38.03.01 Дипломатической академии МИД России.

Разделы имеют единую структуру: работе над текстами предшествует вводная часть – Pre-reading activity. Она содержит важные для понимания текстов сведения, а также задания, включающие новую лексику и предваряющие вопросы. В части Reading and Comprehension следуют тексты или статьи из газет и журналов по экономике и финансам. Наличие нескольких близких по тематике статей позволяет рассмотреть основную тему раздела с различных углов. Более того, в конце каждой главы имеются статьи для дополнительного чтения c заданиями (Supplementary Reading), что облегчает отбор учебного материала для магистров и аспирантов с различным уровнем подготовки. Языковой материал и терминологическая лексика из текстов активизируется с помощью системы разнообразных упражнений (задания на определение верных/неверных утверждений; поиск синонимов; восстановление словосочетаний, проблемные вопросы, упражнения с пропусками и т. п.), направленных на понимание и контроль содержания текстов, а также на стимулирование обсуждения проблем в пределах представленной тематики. Ко многим заданиям предлагаются речевые формулы, организованные по различным коммуникативным намерениям (согласие-несогласие; возражение; уточнение и т. п.). За ними следуют задания, направленные на выработку навыка комментирования с последующим письменным реферированием статьи. Подобные упражнения позволяют освоить методику поиска информации, совершенствовать приемы реферирования и аннотирования текстов профессиональной направленности, работы над научным исследованием и представлением его в виде презентации или доклада.

Блоки Essay Writing и Making Presentation, представленные в конце разделов, развивают критическое осмысление прочитанных статей, обогащают словарный запас и фоновые знания, подводя итог каждому разделу. Заключительные задания носят творческий, коммуникативный характер и обеспечивают базу лексически грамотного, профессионального взаимодействия, необходимого для экономиста-международника. В конце учебного пособия, в разделах Appendix (1 и 2), магистры и аспиранты найдут дополнительные материалы по структурным и языковым средствам оформления реферирования, аннотирования, презентаций, эссе.

В целом, в ходе работы с учебником преподавателю предоставляется возможность отработать все элементы, составляющие основу общепрофессиональных и профессиональных компетенций экономиста-международника.

Unit 1.
INTERNATIONAL ECONOMIC ORGANIZATIONS AND INSTITUTIONS

International Economic Organizations play a vital role in the global economy. The most famous include the World Bank, International Monetary Fund and World Trade Organization which were either established or conceived at the Bretton Woods Conference in 1944. Since then numerous other regional organizations have been formed including several led by China and Russia in recent years. The three major international economic organizations are the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO). The WTO emerged out of the General Agreement on Tariffs and Trade (GATT) in 1995; it is an arrangement across countries that serves as a forum for negotiations on trading rules as well as a mechanism for dispute settlements in trade issues. By contrast, the World Bank and IMF deal with their member countries one at a time. They have little influence with industrial countries but can affect developing countries during times of economic crisis and when those countries seek additional foreign exchange resources. The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IRBD or World Bank hereafter) are among the most well-known and criticized international organizations primarily because of the influence they exert over member countries’ economic choices. Both organizations were created at the end of World War II and have played a critical role in the evolution of the global economic and financial system.

PRE-READING ACTIVITY

Task 1.1. Before you read.

Work in pairs or groups and discuss the questions. Use the following expressions to present your opinion: In my experience… As far as I’m concerned… Speaking for myself… In my opinion…

1. What are the aims of international economic organizations?

2. Сan you think of any group(s) of countries associated with WTO, IMF, which enjoy membership?

3. Do you think IMF has traditionally been a generous institution in spreading economic development?

4. How open is the IMF to outside scrutiny and participation?

5. What is the IMF’s mission and how has that changed over time?

Task 1.2. Consult a dictionary and practice the pronunciation of the following words and word combinations, translate them into Russian and quote the sentences in which they are used in the texts 1 and 2. Submit the examples of your own:

financial institutions, restrictive trade policies, economic debacle, monetary policy, to monitor, short-term loans, balance of payments, emerging market economies, to refinance or defer loans, government subsidies, supervise trade, the Doha Development Round, the GATT agreements, lending capacity, the domestic economy, bilateral free trade, flexible credit line, a quota subscription, democratic accountability.

READING

Text 1

INTERNATIONAL MONETARY FUND (IMF)

The decisions made by the International Monetary Fund (IMF) affect people around the world. But what is the IMF, why is it important, and what criticism does it face?

International Monetary Fund (IMF), created at the Bretton Woods Conference in 1944, began operations on 1 March 1947. It had its inception on 1 July 1944, when delegates of forty-four nations met at Bretton Woods, New Hampshire, and proposed two associated financial institutions – the IMF, with $8 billion capital, and the International Bank for Reconstruction and Development. A recurrence of the restrictive trade policies, exchange instability, and international lending abuses that had characterized the interwar era was feared. After World War I, nations had sought monetary stability by returning to the gold standard, but in many instances the gold standard took the form of a weak version of the gold exchange standard. Its breakdown contributed to the 1929–1936 economic debacle.

The IMF’s original purpose was to support world trade by reestablishing a stable international system. To this end, it was given the mandate to monitor the exchange rate policies of member countries and provide short-term loans in case of balance of payments problems.

Since the IMF and member nations accepted the dollar as equal to gold, the growing number of dollars in their central bank reserves, especially after 1958 and in turn the consequence of chronic U.S. government deficits, stimulated worldwide inflation. The gold exchange standard broke down in 1968–1971, notably after the United States ceased redeeming dollars in gold on 15 August 1971, thereby severely damaging the prestige of the IMF.

With the collapse of fixed exchange rates in 1973, the dominant role of the IMF was to provide financial support for member countries. As of 1993, it had 178 members and had become a major financial intermediary. Its involvement is virtually required before international bankers will agree to refinance or defer loans for Third World countries. The IMF was also instrumental in providing funds for the emerging market economies in eastern Europe following the breakup of the Soviet Union in 1991. The fund also provides information to the public, and technical assistance to governments of developing countries.

The latest global crisis uncovered a fragility in the advanced financial markets that soon led to the worst global downturn since the Great Depression. Suddenly, the IMF was inundated with requests for stand-by arrangements and other forms of financial and policy support.

The international community recognized that the IMF’s financial resources were as important as ever and were likely to be stretched thin before the crisis was over. With broad support from creditor countries, the Fund’s lending capacity was tripled to around $750 billion. To use those funds effectively, the IMF overhauled its lending policies, including by creating a flexible credit line for countries with strong economic fundamentals and a track record of successful policy implementation. Other reforms, including ones tailored to help low-income countries, enabled the IMF to disburse very large sums quickly, based on the needs of borrowing countries and not tightly constrained by quotas, as in the past.

The IMF can make loans to member countries through standby arrangements. Depending on the size of the loan, the fund imposes certain conditions. Known as IMF conditionality, these measures often interfere with the sovereignty of member countries with regard to economic policy. IMF conditions can require devaluation of currencies, removal of government subsidies, cuts in social services, control over wages, trade liberalization, and pressure to pursue free-market policies. IMF conditionality has been criticized as being too severe, imposing hardship on debtor countries. Because IMF policies are imposed by an international agency consisting of industrialized countries, they give the appearance of maintaining the dependency of the Third World.

The IMF is an international organisation with 189 member countries. They work together to try to stabilise the global economy. Any country can apply to join, as long as it meets a few requirements. These include providing information about its economy and paying in a sum of money called a quota subscription. The richer the country, the higher its quota.

IMF has two bodies of management: The Board of Governors and The Board of Directors.

Every member country appoints one Governor to participate in the meeting of the Board of Governors. The Board of Governors make the general policy to carry on day-to-day working of IMF. The Board of Directors of the IMF holds the meeting atthe office in Washington. One of the Directors is designated on the Managing Director of IMF. He is the chief executive. Kristalina Georgieva was selected to serve as the IMF managing director in 2019. The economist was previously chief executive of the World Bank, and has succeeded Christine Lagarde.

(Source: International Monetary Fund; James M. Boughton. The IMF and the force of History: Ten Events and Ten Ideas that Have Shaped the Institution. 2004)

Text 2

WORLD TRADE ORGANIZATION (WTO)

The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The WTO is responsible for monitoring national trading policies, handling trade disputes, and enforcing the GATT agreements, which are designed to reduce tariffs and other barriers to international trade and to eliminate discriminatory treatment in international commerce. The WTO has over 160 members representing 98 per cent of world trade. Over 20 countries are seeking to join the WTO. All major decisions are made by the WTO’s member governments: either by ministers (who usually meet at least every two years) or by their ambassadors or delegates (who meet regularly in Geneva). The WTO’s top decision-making body is the Ministerial Conference. Below this is the General Council and various other councils and committees. In an effort to promote international agreements, WTO negotiations are conducted in closed sessions; many outsiders have strongly criticized such meetings as antidemocratic. Unlike GATT, the WTO is a permanent body but not a specialized agency of the United Nations; it has far greater power to mediate trade disputes between member countries and assess penalties.

The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948.The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants’ adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments. Most of the issues that the WTO focuses on derive from previous trade negotiations, especially from the Uruguay Round (1986–1994).

The organization is attempting to complete negotiations on the Doha Development Round, which was launched in 2001 with an explicit focus on addressing the needs of developing countries. As of June 2012, the future of the Doha Round remains uncertain: the work programme lists 21 subjects in which the original deadline of 1 January 2005 was missed, and the round is still incomplete. The conflict between free trade on industrial goods and services but retention of protectionism on farm subsidies to domestic agricultural sector (requested by developed countries) and the substantiation of the international liberalization of fair trade on agricultural products (requested by developing countries) remain the major obstacles. These points of contention have hindered any progress to launch new WTO negotiations beyond the Doha Development Round. As a result of this impasse, there has been an increasing number of bilateral free trade agreements signed.

As it was mentioned above, the WTO has been the focal point of criticism from people who are worried about the effects of free trade and economic globalisation. Nowadays opposition to the WTO centres on four main points:

• WTO is too powerful, in that it can in effect compel sovereign states to change laws and regulations by declaring these to be in violation of free trade rules.

• WTO is run by the rich for the rich and does not give significant weight to the problems of developing countries. For example, rich countries have not fully opened their markets to products from poor countries.

• WTO is indifferent to the impact of free trade on workers’ rights, child labour, the environment and health.

• WTO lacks democratic accountability, in that its hearings on trade disputes are closed to the public and the media.

Supporters of the WTO argue that it is democratic, in that its rules were written by its member states, many of whom are democracies, who also select its leadership. They also argue that, by expanding world trade, the WTO in fact helps to raise living standards around the world.

Roberto Azevêdo is the sixth Director-General of the WTO. His appointment took effect on 1 September 2013 for a four-year term. In February 2017, WTO members agreed to appoint Mr Azevêdo for a second four-year term, starting on 1 September 2017. (https://www.wto.org)

COMPREHENSION

Task 1.3. Read the texts about IMF and WTO and give extensive answers to the questions. Use the following expressions to present your answers: It is clear from…that…; I presume…It is argued that…In fact…Speaking about…We can say that…Having thoroughly studied…

1. What was the role of the IMF originally?

2. How do these two financial organizations main goals differ?

3. What is the IMF’s approach to helping countries that are deeply in debt?

4. What does IMF make countries implement in return of its bail-outs?

5. When and why was the image of IMF ruined?

6. What was the main reason of IMF establishment?

7. How open is the IMF to outside scrutiny and participation?

8. What is the IMF’s mission and how has that changed over time?

9. Why was WTO replaced by GATT?

10. What hinders the WTO programmers` implementation?

11. Why was the meeting at Bretton Woods so important for international community?

12. How many members are there in the WTO?

13. What are the objectives of the WTO?

14. What are the WTO opponents` arguments?

15. What is, in practical terms, the role of IMF in the global downturn situation?

16. Should the country pay any entrance fee to join to the WTO or the IMF?

Task 1.4. Read the statements below and decide if it is true (T) or false (F) according to the information in the texts 1 an 2. Find the part of the text that gives the correct information. Begin with: Yes, it`s true I guess…, I don`t think it is true; I am afraid it is wrong …In my opinion it is true that…

1. WTO agreements must be signed by member countries and go through the parliaments

2. The IMF loans don`t demand any conditions from debtor countries.

3. The International Bank for Reconstruction and Development was established after 1958 and in turn the consequence of chronic U.S. government deficits.

4. The needs of developing countries remain the major obstacles for WTO development.

5. The WTO provides regulation of trade only for member countries.

Task 1.5. Collocations. Match the nouns as they occur together in the texts 1 and 2. Use them in sentences of your own.

1. economic a. institutions

2. financial b. liberalization

3. international c. penalty

4. gold d. subsidies

5. exchange e. sector

6. raise f. standard

7. trade g. rate

8. government h. capital

9. assess i. trade

10. agricultural j. policy

Task 1.6. Read the Text 3. Go over the text to match the sub-headings (a–g) with the extract (1–7)

a) Reducing debt burdens;

b) Assessing financial stability;

c) Management consultation;

d) High-level coordination;

e) Reducing poverty;

f) Staff collaboration;

g) Monitoring progress on the MDGs.

Text 3

THE IMF AND THE WORLD BANK

The International Monetary Fund (IMF) and the World Bank are institutions in the United Nations system. They share the same goal of raising living standards in their member countries. Their approaches to this goal are complementary, with the IMF focusing on macroeconomic issues and the World Bank concentrating on long-term economic development and poverty reduction. The International Monetary Fund and the World Bank were both created at an international conference convened in Bretton Woods, New Hampshire, United States in July 1944. The goal of the conference was to establish a framework for economic cooperation and development that would lead to a more stable and prosperous global economy. While this goal remains central to both institutions, their work is constantly evolving in response to new economic developments and challenges.

The IMF’s mandate. The IMF promotes international monetary cooperation and provides policy advice and technical assistance to help countries build and maintain strong economies. The IMF also makes loans and helps countries design policy programs to solve balance of payments problems when sufficient financing on affordable terms cannot be obtained to meet net international payments. IMF loans are short and medium term and funded mainly by the pool of quota contributions that its members provide. IMF staff are primarily economists with wide experience in macroeconomic and financial policies.

The World Bank’s mandate. The World Bank promotes long-term economic development and poverty reduction by providing technical and financial support to help countries reform particular sectors or implement specific projects – such as, building schools and health centers, providing water and electricity, fighting disease, and protecting the environment. World Bank assistance is generally long term and is funded both by member country contributions and through bond issuance. World Bank staff are often specialists in particular issues, sectors, or techniques. The IMF and World Bank collaborate regularly and at many levels to assist member countries and work together on several initiatives. In 1989, the terms for their cooperation were set out in a concordat to ensure effective collaboration in areas of shared responsibility.

1. ………………………………. During the Annual Meetings of the Boards of Governors of the IMF and the World Bank, Governors consult and present their countries’ views on current issues in international economics and finance. The Boards of Governors decide how to address international economic and financial issues and set priorities for the organizations.

A group of IMF and World Bank Governors also meet as part of the Development Committee, whose meetings coincide with the Spring and Annual Meetings of the IMF and the World Bank. This committee was established in 1974 to advise the two institutions on critical development issues and on the financial resources required to promote economic development in low-income countries.

2. ………………………………. The Managing Director of the IMF and the President of the World Bank meet regularly to consult on major issues. They also issue joint statements and occasionally write joint articles, and have visited several regions and countries together.

3. ………………………………. IMF and Bank staffs collaborate closely on country assistance and policy issues that are relevant for both institutions. The two institutions often conduct country missions in parallel and staff participate in each other’s missions. IMF assessments of a country’s general economic situation and policies provide input to the Bank’s assessments of potential development projects or reforms. Similarly, Bank advice on structural and sectoral reforms is taken into account by the IMF in its policy advice. The staffs of the two institutions also cooperate on the conditionality involved in their respective lending programs.

The 2007 external review of Bank-Fund collaboration led to a Joint Management Action Plan on World Bank-IMF Collaboration (JMAP) to further enhance the way the two institutions work together. Under the plan, Fund and Bank country teams discuss their country-level work programs, which identify macro-critical sectoral issues, the division of labor, and the work needed in the coming year. A review of Bank-Fund Collaboration underscored the importance of these joint country team consultations in enhancing collaboration.

4. ………………………… …… The IMF and World Bank also work together to reduce the external debt burdens of the most heavily indebted poor countries under the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI). The objective is to help low-income countries achieve their development goals without creating future debt problems. IMF and Bank staff jointly prepare country debt sustainability analyses under the Debt Sustainability Framework (DSF) developed by the two institutions.

5. ………………………………… In 1999, the IMF and the World Bank launched the Poverty Reduction Strategy Paper (PRSP) approach as a key component in the process leading to debt relief under the HIPC Initiative and an important anchor in concessional lending by the Fund and the Bank. While PRSPs continue to underpin the HIPC Initiative, the World Bank adopted in July 2014 a new approach to country engagement that no longer requires PRSPs while focusing on the elimination of extreme poverty and promotion of shared prosperity. The Fund continues to rely on the PRSP to provide the link between a Fund-supported program and the poverty reduction and growth objectives of a member country.

6. ………………………………… Since 2004, the Fund and the Bank have worked together on the Global Monitoring Report (GMR), which assesses progress towards the 2015 UN Millennium Development Goals (MDGs). New Sustainable Development Goals (SDGs) will replace the MDGs in 2015 as the basis for the post-2015 development agenda. The Fund and the Bank will support the implementation of the new SDGs and contribute to monitoring progress toward their achievement.

7. …………………………………. The Assessing financial stability IMF and the World Bank are also working together to make financial sectors in member countries resilient and well regulated. The Financial Sector Assessment Program (FSAP) was introduced in 1999 to identify the strengths and vulnerabilities of a country’s financial system and recommend appropriate policy responses. (www.imf.org and www.worldbank.org.)

Task 1.7. Give extensive answers to the questions. Use the following expressions to present your answers: It is clear from…that…; I presume…; It is argued that…; In fact…; Speaking about…; We can say that…; Having thoroughly studied…

1. What are the purposes of the Bretton Woods Institutions?

2. What is the current relationship between the IMF and World Bank? Do their functions overlap?

3. Where does the IMF get its money?

4. What are the World Bank’s current role and major challenges and opportunities?

5. How does the IMF help the poor countries?

Task 1.8. Translate orally paragraphs 2 and 3 of the text 4.

Text 4

BRICS

1. The acronym “BRICs” was initially formulated in 2001 by economist Jim O’Neill, of Goldman Sachs, in a report on growth prospects for the economies of Brazil, Russia, India and China – which together represented a significant share of the world’s production and population.

On 20 September 2006, the first BRICS Ministerial Meeting was held at the proposal of Russian President Vladimir Putin on the margins of a UN General Assembly Session in New York. Foreign ministers of Russia, Brazil and China and the Indian Defence Minister took part in the meeting. They expressed their interest in expanding multilateral cooperation. This successful interaction led to the decision that the dialogue was to be carried out at the level of Heads of State and Government in annual Summits. As of the First Summit, held in Yekaterinburg in 2009, the depth and scope of the dialogue among the Members of BRICs – which became BRICS in 2011 with the inclusion of South Africa – was further enhanced. More than an acronym that identified countries emerging in the international economic order, BRICS became a new and promising political-diplomatic entity, far beyond the original concept tailored for the financial markets. After the Yekaterinburg Summit, seven annual Summits were held (2010 – Brazil; 2011 – China; 2012 – India; 2013 – South Africa; 2014 – Brazil; 2015 – Russia; 2016 – India). Brazil hosted the most recent 11th BRICS summit on 13–14 November 2019.

2. In this period, BRICS has evolved in an incremental manner, in areas of consensus amongst its members, strengthening its two main pillars:

• coordination in multilateral fora, with a focus on economic and political governance;

• cooperation between members.

Regarding the first pillar, the efforts towards reforming the structures of global governance, especially in the economic and financial fields – Financial G-20, International Monetary Fund, World Bank – receive a special emphasis, as well the reform of political institutions, such as the United Nations. Intra-BRICS cooperation has also been gaining density: a broad agenda has been developed, comprising areas such as finance, agriculture, economy and trade, combating transnational crime, science and technology, health, education, corporate and academic dialogue and security, among others.

3. In that context, the financial sector receives a special focus as a new front of cooperation. At its 6th Summit, the BRICS established the New Development Bank, aimed at financing infrastructure and sustainable development projects in the BRICS and other developing countries. The new institution will count initially with a subscribed capital of US$ 50 billion.

Likewise, the BRICS also concluded the agreement that creates the Contingent Reserves Arrangement (CRA), a fund with an initial sum of US$ 100 billion, which the BRICS countries will be able to use to forestall short-term liquidity pressures. One of the objectives of the CRA is to contribute to international financial stability, by providing an additional line of defense to the BRICS. The establishment of the Bank and the CRA conveyed a strong message on the willingness of BRICS members to deepen and consolidate their partnership in the economic-financial area.

The Fortaleza Summit launched a new cycle for the BRICS. Brazil will follow up on the initiative, aiming at incrementally increasing existing cooperation. The meeting’s particular focus on social inclusion and sustainable development gave visibility to policies implemented by member countries, and to the contribution of the BRICS’ economic growth to poverty reduction. The theme “inclusive growth, sustainable solutions” is not only in line with the member countries’ social policies, but also highlights the need to tackle challenges in the social, economic and environmental fields, and creates new opportunities for the BRICS in different areas, including the negotiations on the post-2015 development agenda.

4. For Brazil, BRICS has a special significance: it comprises four of the country’s strategic partners, all of which have a strong regional leadership and growing participation in the global economy. Brazil is now in charge of the group’s presidency, and will lead the implementation of the Plan of Action to be approved on the occasion. In view of BRICS’ informal nature, the role of Secretariat is played by its pro tempore presidency. BRICS is cautiously and incrementally being consolidated, gradually moving forward the institution-building process.

The BRICS presidency in 2017 were transferred to China, in 2018 – to South Africa, in 2019 – to Brazil and in 2020 – to Russia. (www.brics5.co.za/about-brics)

Task 1.9. Read the text again. How are the ideas within the text linked? Underline the words which help the author do it. Comment on every link.

Task 1.10. Get ready to give a presentation based on the text 4. (Appendix 2) Find extra information about BRICS organization to expand on the major points, summarizing the economic outlook for BRICS as a new and promising political-diplomatic entity.

LANGUAGE REVIEW

Task 1.11. Read the following article and decide with answer A, B, C, D best fit each gap.

BRICS TO OPEN ALTERNATIVES TO WORLD BANK, IMF

Brazil, Russia, India, China, and South Africa (the so-called Brics) are ………… (1). alternatives to the World Bank and the International Monetary Fund, which they find too biased towards Europe and the US. The “New Development Bank” to rival the World Bank will be launched at a Brics summit in the Brazilian city of Fortaleza next week, with all agreed except where to put the main headquarters, Russian finance minister Anton Siluanov said Wednesday (9 July). The project will see each of the Brics ………… (2) €1.4 billion to the bank’s funds over the next seven years, with the bank’s maximum capital set at €73 billion. The bank will fund mainly ………… (3) projects. It will be a small rival to the €163 billion-strong World Bank, but it marks the departure of a US and Europe-dominated international financial system. Siluanov also ……… (4) plans for a separate Brics project: an alternative to the International Monetary Fund (IMF). This would be set up as a joint contingency… … (5) between the five Brics countries to the tune of €73 billion. “We have ………. (6) an agreement that, in the current conditions of capital volatility, it is important for our countries to have this buffer a so-called “mini-IMF” – a financial organisation which could quickly react to capital ……… (7), providing liquidity in ……… (8) currency, in particular in US dollars,” Siluanov said. The pool will become available in 2015 and will see each of the Brics countries ………(9) as much of a proportion of the total capital as it would be allowed to withdraw, except for China (the largest donor) and South Africa (the smallest), which will be allowed to withdraw half and double their contributions, respectively. Brics nations have grown increasingly frustrated at the priorities of the IMF, particularly during the euro-crisis, where a disproportionate amount of the fund’s money went to ………. (10) in southern Europe. (EU Observer, By Valentina Pop, BRUSSELS, 10. Jul 2014)

A. to establish         B. to found               C. to open           D. to build

A. put                        B. send                     C. contribute      D. invest

A. entertainment    B. infrastructure     C. local                D. new

A. asked                    B. said                      C. rejected          D. confirmed

A. pool                      B. sum                      C. purse               D. company

A. done                     B. reached                C. enjoyed          D. taken

A. suffer                   B. ceiling                  C. limit                D. outflow

A. hard                     B. large                      C. light               D. big

A. go to                    B. put in                     C. take in           D. came out

A. cash shops          B. interests               C. projects          D. bailouts

Text 5

RUSSIA’S ACCESSION TO THE WORLD TRADE ORGANIZATION (WTO)

The document, which makes Russia the global trade body’s 156th member, was signed in Geneva on December 16, 2011 after 18 years of negotiations. Russian President Vladimir Putin signed a federal law that authorizes the protocol on July 21.

The Economic Development Ministry said the WTO membership will lower prices for both imported and domestic goods. According to the World Bank, the admission will give Russia an additional 3.3 percent of GDP annually for the first three years, with the figure likely to increase later. Critics have claimed that Russia’s accession to the WTO is detrimental to the country’s national sovereignty and security and could ruin entire sectors of the domestic economy.

The improved competitive environment in Russia after its accession to the World Trade Organization will help modernize the domestic economy, Prime Minister Vladimir Putin said on Wednesday. “I expect that tighter competition will spur modernization of our economy,” Putin said in his final report as prime minister to the State Duma, the lower house of Russia’s parliament. Russia needs to join the world trade club to upgrade its production capacities, said Putin who is to return to the Kremlin in May after four years as premier. “We won’t be able to modernize our economy without accession to the WTO. Until they (Russian producers) feel real competition, they will not invest in modernization,” Putin said.

Russia’s Economic Development Ministry plans to grant preferences to domestic producers under state procurement programs to compensate for their losses from lower import duties after Russia joins the WTO, the Kommersant business paper reported on Monday, citing the ministry’s draft resolution. The list of products that will get special treatment include pork, sugar, agricultural machinery and paper. After Russia joins the WTO this summer, it will have to lower the import duties on these products, opening the door wide open for cheaper imports. The ministry intends to compensate these losses with its newly proposed changes to the state procurement system.

Russia’s state orders currently account for 13 percent of the country’s gross domestic product. Belarus and Kazakhstan may also enjoy the same preferences as Russia’s partners in the Customs Union between the three ex-Soviet states. Russian hog farmers have turned to the Russian government with requests to protect the sector against foreign rivals, claiming Russia’s accession to the WTO and the subsequent lowering of import duties will cause mass bankruptcies amongst Russian agricultural producers. In mid-February, the Russian Union of Industrialists and Entrepreneurs asked the Russian government to allocate some 400 billion rubles ($13 billion) to protect the domestic agriculture.

Some Russian producers may suffer in the short-term from Russia’s entry in the WTO but the Russian government is looking for tools to protect key sectors of the economy, such as agriculture, carmaking and agricultural machinery production. (Ria-novosty)

COMPREHENSION

Task 1.12. Read the article and give extensive answers to the questions. Use the following expressions to present your answers: it is clear from… that…; I presume… It is argued that… In fact… Speaking about… We can say that… Having thoroughly studied…

1. What does the article deals with?

2. Where was it published and when?

3. Does the abstract contain any introduction or conclusion?

4. What was the purpose of the writer (to inform, to describe, to criticise)?

5. Is the language the writer uses argumentative?

6. Who do you think will find the information of this abstract interesting?

Task 1.13. Find the Russian equivalents of the following:

domestic goods; get special treatment; the global trade body; foreign rivals; the import duties draft resolution; the state procurement system; spur modernization of our economy; suffer in the short-term; to allocate.

Task 1.14. Match the synonyms a – h to 1–8.

a) to receive                  1) to be worth

b) to suppose                2) to demonstrate

c) to value                      3) to guess

d) to show                     4) to rise

e) to cost                       5) to measure

f) to increase                6) to get

g) to accumulate          7) to get back

h) to return                   8) to save up

Task 1.15. Go over the article below. Critically evaluate it. Give your own pros and cons on Russia’s accession to the World Trade Organization.

Text 6

THERE’S NO ALTERNATIVE TO THE WTO, BUT IT NEEDS REFORM – PUTIN

21 Nov, 2020

Russian President Vladimir Putin has told G20 leaders that there is nothing to replace the World Trade Organization (WTO), but it should be able to cope with current challenges and needs modernization. “The G20 group needs to continue efforts to find common approaches to reforming the World Trade Organization in accordance with modern challenges,” the Russian leader said as he took part in the G20 summit on Saturday. “It is impossible to achieve this goal without a stable, effective and multilateral trading system based on universal rules and principles, and there is no alternative to the World Trade Organization at the moment,” he added. Many global leaders have previously said that the Geneva-based body, which acts as an international arbiter for trading disputes, needs urgent changes and the issue has been on the agenda of multiple international meetings. After their virtual meeting earlier this week, the leaders of BRICS group nations, that apart from Russian includes Brazil, India, China and South Africa, also voiced support for WTO reform. In their final declaration, the five nations said the changes are to make the body “more resilient and effective in confronting global economic challenges and to improve its key functions” in the interest of its members. (RT)

RENDERING

Task 1.16. Translate the extract into English.

Председательство в группе БРИКС с первого января переходит от Бразилии к России. Главной целью названо содействие повышению качества жизни народов стран объединения, а девизом председательства станет «Партнерство БРИКС в интересах глобальной стабильности, общей безопасности и инновационного роста». Во время председательства Россия намерена предложить обновить стратегию развития стран БРИКС, которая была принята пять лет назад на период до 2025 года. Большое внимание уделяет Россия и развитию экономического сотрудничества внутри объединения. Во время председательства в БРИКС в 2020 году Москва обещала вести активную работу по укреплению потенциала Нового банка развития БРИКС. К следующему, 2021 году, страны объединения намерены довести размеры инвестиционного портфеля банка до 23 миллиардов долларов. В прошлом году на неформальном саммите в японской Осаке лидеры стран БРИКС затронули вопрос и о расширении состава акционеров банка. По мнению России, этот вопрос нужно решать поэтапно – сначала утвердить формулу расчета квот для претендентов и необходимые регламентирующие документы, а затем обеспечить сбалансированное региональное представительство. Гораздо важнее в нынешних условиях была бы интеграция платежных систем государств БРИКС и создание независимого канала обмена информацией между нацбанками, что могло бы помочь устойчивости банковских систем стран пятерки, говорил ранее Президент России В.В. Путин. Ожидается, что в начале 2020 года в Москве откроется российское отделение Нового банка развития БРИКС. (РИА новости, 01.01.2020)

SUPPLEMENTARY READING

Text 7

History of the EBRD

The European Bank for Reconstruction and Development (EBRD) was established to help build a new, post-Cold War era in Central and Eastern Europe. It has since played a historic role and gained unique expertise in fostering change in the region – and beyond.

Commitment to entrepreneurship

The EBRD is committed to furthering progress towards ‘market-oriented economies and the promotion of private and entrepreneurial initiative’. This has been its guiding principle since its creation at the beginning of the 1990s and, new challenges and the welcoming of new countries to the EBRD world notwithstanding, will continue to be its mission in years to come.

A turning point in the history of Europe

The EBRD was set up in haste to meet the challenge of an extraordinary moment in Europe’s history, the collapse of communism in its East. In fact, a mere 18 months elapsed between the first mooting of the idea of a European bank, by President François Mitterrand of France, in October 1989 and its opening for business with headquarters in London in April 1991.Urgency and the ability to respond to momentous events swiftly and decisively, whether it be the end of the Soviet Union, financial crises or the ‘Arab Spring,’ have been among the EBRD’s hallmarks from the start. During the frenetic years of the early 1990s the EBRD’s emphasis on the private sector as the main driver for change in Central and Eastern Europe was vindicated many times over. This was the period that established the EBRD’s reputation as an expert on transition to the open market. It was heavily involved in areas such as banking systems reform, the liberalisation of prices, privatisation (legalisation and policy dialogue) and the creation of proper legal frameworks for property rights, all vital ingredients for change.

Expanding the EBRD’s region of operations

Such reforms were supported by sound advice, training and technical expertise, and supplemented by major investments in the private and public sectors. With domestic capital on its own insufficient to finance transition, the EBRD helped to bring in external capital from both private and public sources. Such experience has stood the EBRD in good stead when it has expanded its original region of operations into new countries such as Mongolia (in 2006), Turkey (2009), Jordan, Tunisia, Morocco, Egypt and Kosovo (in 2012), Cyprus (2014) and Greece (2015). It is currently active in more than 30 countries from central Europe to central Asia and the southern and eastern Mediterranean. The Czech Republic is the only member to have ‘graduated’ from the EBRD and no longer receives investment from the Bank. The EBRD’s understanding of how a market economy works and engagement with other international financial institutions also allowed us to play a crucial role in stabilising the region and planning for recovery after the shock of the global financial crisis in 2008.

The EBRD’s unique mandate

Uniquely for a development bank, the EBRD has a political mandate in that it assists only those countries ‘committed to and applying the principles of multi-party democracy [and] pluralism’. Safeguarding the environment and a commitment to sustainable energy are also central to the EBRD’s activity. The EBRD serves the interests of all its shareholders – 65 countries plus the European Union and the European Investment Bank – not just those countries which receive its investments (€9.4 billion in 2015). We all stand to gain from the EBRD region’s closer and deeper integration into the global economy. (r1)

ESSAY WRITING

Write an essay on one of the topics below. Refer to Appendix 2 to revise essay writing skills. Read your essay to the group. Discuss it.

1. Russia`s participation in international organizations in the field of economic and financial cooperation.

2. What are the reasons of the Asian Infrastructure Investment Bank (AIIB) creating?

3. Outline the main factors which lead to globalization.

4. Advantages and disadvantages of Russia`s membership in the WTO.

5. The New Development Bank

6. European economic integration: Main ideas, institutions and European Union policies.

7. Asian Development Bank

8. Classification of International Economic Organizations

Unit 2.
COMPANIES

A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a “legal person”. Choosing a type of company which suits the financial condition and expansion vision of the initiator becomes very crucial before starting a company. A sole proprietorship is one of the most simplest and uncomplicated of all companies. This kind of business organization has a single person who owns and controls it. He is the one who makes sure the entire business functions smoothly and is also accountable for any profit or loss the business makes. Partnership firms involve a business organization formed between two or more people. All these members are known as partners and are joint owners of the entire business organization. The partners are accountable for any profit, loss, or liability of the business organization. An important feature of this company is that all partners enter into a pre-defined agreement regarding profit sharing and loss bearing, before starting their venture. Irrespective of the capital brought in or the profit-loss sharing percentage of a partner, he can be asked to pay off total debts of the company, as the partners have a joint as well as several liability in the organization. Limited Liability Company (LLC) This is one of the more recent types of companies which has come into being. A limited liability company is a mix of business corporation and partnership and provides greater flexibility by blending the benefits of both. Similar to partnership firms, an LLC can be as simple or complicated as the partner wants it to be. According to rules of the state, partners in an LLC get limited liability or unlimited liability. Of all the types, the business corporation is the most complex. Whenever a business corporation is incorporated or registered with the government, a new separate entity is created. This is distinct from the owners and therefore irrespective of the personal financial condition of all shareholders, the organization continues to function until dissolved. The shareholders, or owners, decide and elect directors who form necessary policies and rules for the proper functioning of the organization.

PRE-READING ACTIVITY

Task 2.1. Before you read.

Work in pairs or groups and discuss the questions. Use the following expressions to present your opinion: In my experience… As far as I’m concerned… Speaking for myself… In my opinion…

1. What definition would you give to “a company”?

2. Which company would you love to work for and why?

3. Do you prefer bricks-and-mortar companies or Internet companies?

4. Which comes first, the product or the customer?

5. Andrew Grove said: “In the future, all companies will be Internet companies.” Do you agree? Would this be good?

Task 2.2. Consult a dictionary and practice the pronunciation of the following words and word combinations, translate them into Russian and quote the sentences in which they are used in the text. Submit the examples of your own: soft drink; to ban; to capture; truckloads; abstinence; adverts; sparkling beverages; commitment to smth.; bricks-and-mortar companies; associates; bottling partners; enhance; inclusive; footprint; sustainable communities; still brands; spirits; beverage distribution system.

REA