Doing Business in Russia: Учебное пособие на английском языке

М и ни сте р ство о б р а зо ва ни я Ро сси йско й Ф е де р а ци и В о р о не ж ски й Го суда р стве нный уни ве р си те т Эко но ми че ски й фа культе т

Doing Business in Russia Уче б но е п о со б и е на а нгли йско м языке На п р а вле ни е 521500 «М е не дж ме нт» Г С Э .Ф.01

В о ро н е ж 2003

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Со ста ви те ли :

Ко то ва К.П. к.ф.н, до ц. М и ш и н А.Б.

Уче б но е п о со б и е “Doing Business in Russia” и ме е т це лью р а зви ти е на выко в р а б о ты с те кста ми п о сп е ци а льно сти на а нгли йско м языке , ко ммуни ка ти вных сп о со б но сте й, уме ни е ве сти ди скусси и и п р е зе нта ци и . Кр о ме это го , п о со б и е сна б ж е но ле кси че ски ми и гр а мма ти че ски ми уп р а ж не ни ями , уп р а ж не ни ями п о р а сш и р е ни ю сло ва р но го за п а са , б и зне с те р ми но ло ги и с це лью р а зви ти я п р о фе сси о на льно й р е чи у слуш а те ле й п р е зи де нтско й п р о гр а ммы.

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UNIT 1 Pre-reading tasks I.

Transcribe the following:

1) Uganda; 2) Haiti; 3) Chad; 4) Japan; 5) Japanese; 6) Tokyo. II.

What do you think hampers doing business in Russia? What obstacles do you see?

III. Read through the text CONDUCTING BUSINESS IN RUSSIA is Difficult but Possible Experts of the Euromoney journal compiled a list of risky-investment countries based on the economic and political situation, infrastructure, the legislation, and inflation. It was disappointing to find out that Euromoney placed Russia 129, next to Uganda, Haiti and Chad. True, Russia is living through hard times. According to the Association for Japanese-Russian trade, joint ventures in Russia suffer from extortion and uncoordinated actions of central and local power bodies, their hard currency accounts can be frozen. According to the World Bank, total fixed capital of Russian-Japanese ventures is 100 times less than that of Russian-US JVs. Japanese entrepreneurs are reluctant to invest in the Russian economy on account of turmoil in this country rather than because of the problem of the Northern territories. Joint enterprise appeared in the ex-USSR five years ago. Much has been done since then. According to the Association for joint ventures, international associations and organizations, last year JVs produced medicine-related products, clothing, and footwear worth R13 billion in the 1991 prices. These commodities are in short supply in the market of Russia and other CIS countries. Developing joint enterprise is mutually beneficial, believes the Association for Russian-Japanese trade. Russia’s transition to a market economy offers

4 an excellent opportunity to get established in the Russian market and make profits “in this colossal and rich country”just now. “If you supply Russian builders with the needed equipment and materials, pay them a good wage and organize well their work, they will get the better of any foreigner,”said Andrei Stroev, president of the Russian-US JV Perestroika. If the legislation favors joint enterprise and enterprise as such, if infrastructure develops, if taxes are reasonable… , I would add to Stroev’s remark. One can bemoan for long, though. In my opinion, it is high time to create all this and foreign investors can be helpful here. Despite Russia’s being 129 in the investment-opportunities list, foreign businessmen do not give up investing in the country’s economy. At a symposium recently held in Tokyo, Japanese and US entrepreneurs discussed the problem of investment in the Russian economy. The conclusion is far from being comforting. Above all, persistent changes in the legislation hampers foreign investment. The symposium participants highlighted that Russia is really interested in setting up beneficial conditions for foreign investors, which inspires hope that the present difficulties will be overcome. The Parliament called upon to adopt new laws, which would encourage investing and importing to Russia. Will parliamentarians pay heed to this appeal?

IV.

Find Russian equivalents for the following English words and collocations:

1) According to; 2) risky-investment countries; 3) extortion; 4) local power bodies; 5) commodities; 6) to be in short supply; 7) to favor joint enterprise; 8) reasonable taxes; 9) the conclusion is far from being comforting; 10) persistent changes in legislation; 11) to pay heed to the appeal. V.

Ask your groupmates questions about the difficulties of conducting business. The information from the text may be useful.

5 VI.

Put definite or indefinite articles in the following sentences where necessary:

1) … … .river Thames is … … .deepest in … … .Great Britain. 2) They have … … .collection of post stamps in … … .London. 3) … … .Neva is not … … .long river. 4) … … .Hague is … … .political center. 5) She has … … .son and … … .daughter, … … .children don’t go to … … .school. 6) … … .Europe is … … .most densely populated continent in … … .world. 7) There is much unemployment in … … .South Africa. 8) … … .Gulf Stream carries … … .large body of … … .warm water … … .northwards. 9) There is … … .book for you on … … .table, which has been brought by … … .student. VII. Complete the sentences with suitable prepositions where necessary. 1) There are some new towns in … … .Russia … … .a new type. 2) Asia is … … .the East. 3) Germany and France are … … .center … … .Europe. 4) Spain is … … .the South … … .France. 5) There is a very interesting lecture … … .our University today. 6) Can you play … … .chess? 7) Can he speak … … .French? 8) What can you see … … .this map? 9) May I come … … .? 10) Where is his house? It is … … .Kirov Street. VIII. Make a presentation for a group of business people from the USA focusing on the difficulties of doing business in Russia IX.

Explain why it is difficult to conduct business in Russia. Use such introductory phrases as:

to my mind; in my opinion; I suppose (think) that; I am sure of the fact that; no doubt; I consider etc. X.

Give at least one fact to show the Russian Government’s reaction to the situation in Russian business

XI.

Do you think it is easy for foreign companies to do business in Russia?

XII. Write two or three paragraphs to argument your ideas.

6 UNIT 2 Pre-reading tasks I.

1) What is the current inflation rate in Russia? 2) What is inflation? 3) What causes inflation?

II.

Try pronouncing, writing and translating the following words and collo-

cations correctly: 1) well-to-do people; 2) staples; 3) get robbed blind; 4) to feel the least impact of inflation; 5) to figure out the dynamics of highly differentiated inflation; 6) rouble costs for travelling abroad have gone up only a little; 7) prodigious consumers; 8) uniformly ragged and emaciated crowd; 9) current rate of increase in the price of staples. III.

Read through the text. Inflation Different to Different People The higher the individual’s living standards, the better he/she is cushioned against the impact of inflation. In present-day Russia, the actual inflation level is estimated within a stag-

geringly varying range. Some experts speak about 14 per cent, some others, about 1,000 per cent – and all have their reasons. In fact, different inflation rates apply to different consumer items here. The official statisticians tend to use a mean figure, implying that the current administration is not too bad, after all. Matches have had the greatest price rise – 300 times – followed by salt – 130 times. The prices of gold and diamonds rose the least. Leaping to conclusions, you can scream in protest: they are fleecing us on the staples! People with modest means get robbed blind when they pay for matches, salt and bread. More well-to-do get robbed all the same in paying for diamonds. However, the Russia public doesn’t represent uniformly ragged and emaciated crowd. In fact, it is a society more motley than even a year ago. In this

7 country the social classes can be identified by the force of inflationary impact: the higher classes feel the least impact; the lower classes, the most. In practical terms, this means that beggars, refugees, and bums are hit by an inflation rate of 10,000 per cent and more – since this is the current rate of increase in the price of staples. Sugar and tea prices have gone up 100 times over their original level. Paradoxically, this class consists of the most prodigious consumers: they lavishly use matches, salt, or bread. The lowest class has access only to a few consumer items, which they consume in astounding quantities. The intermediate class (which is the most numerous class, like the middle class in the USA) forms the nation’s core of stability. They experience an inflation rate counted in hundreds. They consume staple goods and food like salt, matches, bread, tea, and sugar, too, but they also buy footwear and clothes (the prices for which have gone up 10-50 times). They buy books (10-20 times as costly now), soap (10 times up) and pay their rent (1,000 per cent higher). As a result, the mean level of inflation for them is much lower than that experienced by the have-nots. However, the intermediate class suffers from inflation more than the latter and must sharply reduce its purchase of books, soap, and shoes. The class enjoying the maximal social privilege resembles the least privileged, in the sense that its members don’t reduce the level of their consumption. On the other hand, this class relishes living under the lowest possible level of inflation. Rouble costs for travelling abroad have soared to impossible heights, but the dollar costs have gone up only a little. The social elite continues to pay in dollars (provided by the CPSU central Committee in the past and, at present, received as a result of its privileged social position). Prices for cars and dachas went up much less than the prices for matches (proportionally speaking), which is crazy from the point of view of the common sense. It is up to economists and sociologists to figure out the dynamics of this highly differentiated inflation. But one thing is already clear: it is possible only in a “non-economy”like that which exists in Russia at present.

8 IV.

Complete the table with the information about one of your friends. Ask

and let your groupmates answer questions about what he does now, what he did when he was a child and what he will do in the future. Topics

Life now

Life as a child

His plans for the future

1. What / do in the morning 2. What / do in the evening 3. Where / go on holidays 4. What sports play 5. What TV programme like 6. What books read 7. What food like

V.

Fill in the blanks with “ hard” and “ hardly” . Consult a dictionary if necessary.

1) Though he held a lantern in front of him he … … … .saw his friend in the darkness. 2) The work was too … … … .for the child. 3) He looked … … … .at young man in front of him. 4) The girl was beside herself with excitement and could … … … .say a word. 5) The boy was … … … .eight years old when his parents died. VI.

Give short definitions of the following concepts: 1) staples; 2) social elite; 3) differentiated inflation; 4) refugees.

VII. Translate the following sentences into Russian paying attention to the verbs used in Passive: 1) The actual inflation level is estimated within a staggeringly varying range. 2) In Russia the social classes are identified by the force of inflationary impact.

9 3) Beggars, refugees and bums were hit by an inflation rate of 10.000 per cent and more. 4) The dynamics of highly differentiated inflation will be figured out by the economists. VIII. Speak on the real indicators and rate of inflation in Russia: a) Give examples to support your ideas about ways of decreasing inflation; b) What would you do to bring down the inflation rate in Russia?

UNIT 3 Pre-reading tasks I.

Find in a dictionary the meaning of the following words and collocations and their transcriptions:

1) general physics; 2) to leave temporally or for good; 3) to try one’s luck abroad; 4) to do moonlighting; 5) to have a fluent command of a foreign language; 6) to do jobs unrelated to science; 7) abiding sense of insecurity. II.

Do you think you’ll be able to find job at the Russian labour market or would you like to work abroad? Why?

III. Read through the text. Brain Drain A poll was recently conducted among physicists doing fundamental research in the leading scientific centers of Russia, such as the Institute of General Physics for the Russian Academy of Sciences, the Ioffe Physical Engineering Institute (St. Petersburg), the Budker Institute of Nuclear Physics (Siberian Department of the RAS), the Kurchatov Institute, the Physics Department of Moscow University, and other such centers. A total of 774 respondents were polled. As is known, physicists have been emigrating en masse for quite some time now. Academician Andreyev believes that about 40 percent of all high-

10 class theoretical physicists and roughly 12 percent of all experimenters have left the former USSR either temporarily or for good. Still, as the poll shows, the potential of “ain migration”is far from being exhausted. A mere 15.4 percent of all scientists stated firmly that they do not contemplate emigration. Almost the same proportion, 13 percent, are ready to go abroad immediately, at the earliest opportunity. About 40 percent of all respondents do not rule out a possibility of leaving. Roughly one in every three said he or she never contemplated the idea or does not have a conclusive answer to this question. Scientists consider work under contract to be the main “channel” or going to a foreign country (90 percent). Fifteen percent of them say they could go to do upgrade or advanced training courses, 20 percent want to leave for good. Young scientists are keen on emigration. Two-thirds of potential emigrants are under forty, a quarter are under thirty and only 7 percent are older than fifty. Actually four in every five young scientists under thirty set their sights on emigration. But even among the scientists in the 50-59 age group, approximately a third ponder a possibility of emigrating. Russians have the highest migration potential: half the contingent would like to try their luck abroad. Quite a few persons of Jewish nationality are set to go (48 percent); among Ukrainians the share of such people is lower (33 percent). Most of the would-be emigrants fill relatively low positions. About 70 percent of respondents said it is difficult to get promotion at their institute. But, significantly, this group of scientists, occupying low rungs in the organizational ladder are active in creative quests and, more specifically, their scientific papers are published quite frequently here. Ninety-one percent of them have publications to their credit. Moreover, about 80 percent have had their papers published in foreign periodicals. Approximately one in every three

11 has his or her papers published in foreign periodicals more or less regularly. More than half the publications appear in scientific periodicals in the USA and advanced European countries. But only 4 percent have received royalties in hard currency. More than a third of the potential emigrants (36 percent) believe that the conditions for self-fulfillment are either insufficient or totally lacking in this country. All respondents contemplating emigration know foreign languages: more than a half have fluent command of one. Interestingly, those knowing three languages are ready to depart “in a body”right away. Among the factors pushing them out of the country, scientists point up falling living standards (77.7 percent), economic instability (59.9 percent), an abiding sense of insecurity (54.4 percent), political instability (50.5 percent), inadequate material, technical and information backup capabilities for science (4.9 percent). Significantly, having expresses their discontent with the state of affairs in the country, many respondents nevertheless regard with approval of the government’s policy. Half the contingent are convinced that the way of economic and political transformations mapped out by the government is the right one, noting at the same time that things in the country today are deteriorating (40–50 percent think so) rather than improving (35–40 percent). This assessment is quite justified considering the desperate financial plight of many scientists. The average remuneration of a researcher or research associate at the Russian Academy of Sciences is 10 to 30 times less than the average international standards of compensation. Our research has shown, however, that the gap is in order of magnitude greater, almost one hundredfold. But 6 percent of all respondents said their compensation was “odd”. Many have to do moonlighting. And half the potential emigrants do odd jobs unrelated to science. A significant proportion of young scientists don’t see any opportunities for resolving their financial problems here. Physicists are almost

12 unanimous that in this country it is difficult or very difficult to implement or put to work the results of their research efforts (96 percent of all responses). Among the factors which can induce physicists to stay in the country, they first of all point to proper labour remuneration (23.8 percent of all respondents), then comes elevation of the status of science and sufficient funds for its development (15.8 percent), and, further, economic and political stabilization (26 percent of all answers). Two in three respondents lay great store by the country which sends out an invitation. Precedence is accorded to the USA (80 percent of all respondents), Germany ranks second (40 percent), followed by the United Kingdom (31 percent), France (23 percent), Japan, Canada and Australia are mentioned less frequently (20, 18, 15 percent respectively). The answers permit conclusions to be drawn about a significant re-orientation in the existing flows of emigration. Thus Israel figured only in 2 percent of the answers. As is known, in the past few years the main flow of emigrants headed for Israel (up to 45 percent of the total) and Germany (42 percent) and, in a less significant measure, to the USA (6 percent). Emigration was originally distinctly “hnic”. Before long, however, we believe, there will occur a redistribution of the flows in favour of the USA, Canada, Australia and developed European countries. The proportion of Russian, Ukrainians and Byelorussians, whose migration potential is fairly high, will increase in the emigration structure. Some emigrants are not averse to working in the former socialist countries (15 percent) and even in the CIS republics (4 percent). The inquiry has thus shown that emigration proclivities are quite widespread among physicists. Active young scientists seek to leave the country, more often than not. Unlike many of those who prefer to stay on, they approve of the market and political reforms unfolding in Russia, so their departure will unquestionably narrow down and, what is worse, impoverish from the intellectual viewpoint, the social base on which the reformers rely.

13 IV.

Explain in English what the following means:

1) to depart in a body; 2) to do upgrade; 3) to do moonlighting; 4) to get a promotion; 5) to have publications to one’s credit. V.

Make up your own sentences with the following words and expressions:

1) shortage of jobs and unemployment; 2) to be reluctant to leave; 3) for a variety of reasons; 4) to leave for good. VI.

Find English equivalents for the following Russian collocations:

1) уе х а тьна все гда ; 2) уе х а тьвсе й се мье й; 3) п о ло ж е ни е ух удш а е тся; 4) п о лучи тьр а б о ту; 5) б е гло го во р и тьна и но стр а нно м языке . VII. Open the brackets using the proper degree of comparison and insert the definite article where necessary. 1) The team “Spartak”is (popular) in our country. 2) He receives only excellent marks, he is (good) student in the group. 3) The days become (short) in September. 4) We must dress (warmly) in winter. 5) In June the weather becomes (warm). 6) He speaks English (well) than I do. 7) Which story is (interesting) in this book? 8) The (popular) indoor game in our country is chess. 9) It takes him (little) time to get to the University than me. 10) You must come (early) before the lessons begin. VIII. Read the following numerals aloud: 100, 134, 230, 490, 559, 605, 1007, 1021, 2045, 2651, 4800, 6015, 69151, 7231148. IX.

Put “ Who” or “ Which” where necessary:

1). People … … … .go in for sports keep in good health. 2) The game … … … took place yesterday was very interesting and people … … … .came to the match enjoyed it. 3) I know some students of our Institute … … … .who play chess well. 4) Everybody … … … wants to play tennis must train regularly. 5) There is a good sports-ground in the park … … … .is not far from my house. 6) Some friends of mine … … … .are fond of swimming go to the swimming pool to

14 bathe. 7) The football match … … … you are speaking about took place on the 1st of June. X.

Here are the answers to some questions. Work out the questions.

1) Some people leave Russia because of shortage of jobs and unemployment. 2) Many young scientists in Russia set their sights on emigrating. 3) Some graduates and scientists have to do work unrelated to science. 4) One of the reasons to leave the country for good is abiding sense of insecurity. 5) The greater part of those who are ready to leave Russia for good have a good command of English. 6) Young graduates wish to do upgrade abroad. 7) Very often young specialists can’t get promotion in Russia. XI.

Find the reasons for “ brain drain” in Russia by asking your groupmates.

XII. Make up a plan of the text in writing. XIII. If you were the head of the country, how would you act to stop emigration among Russian specialists? XIV. To leave the country or to stay? Write three paragraphs to discuss the topic.

UNIT 4 Pre-reading tasks I.

What do you think of the refugees from the ex-Soviet republics living now in Russia?

II.

Form verbs and adjectives of the following nouns:

1) disintegration; 2) migration; 3) population; 4) comparison; 5) number; 6) loss; 7) difference; 8) definition; 9) correspondence; 10) compensation. III. Find out the meaning of the following words and collocations by asking your groupmates: 1) powerless vis-à-vis local officials; 2) departure outbalancing entry; 3) skilled workers; 4) place of residence; 5) state-to-state treaties; 6) consular services; 7) rural hinter lands of the regions.

15 IV.

Read through the text. Russians Outside Russia: Potential Refugees? The Soviet Union’s disintegration has resulted in 25.3 million Russians (by the 1989 census) finding themselves in the “near abroad”, as Russia calls the other 14 newlyindependent states. And in all these states Russians have turned into ethnic minorities with all the attendant consequences. Russians and Russian-speaking people now feel uncomfortable not only

in the Baltics, but in the other ex-Soviet republics as well. But I am sure that there will be no avalanche-like migration of millions into Russia. This is primarily because three-quarters of the Russian population outside Russia live in Ukraine, Belarus and Kazakhstan. It is safe to say that no forced migration into Russia will occur on a mass scale from Ukraine and Belarus, nor most likely, from Kazakhstan either. The situation in Moldova and the Transcaucasian republics is in comparably worse. But there are few Russians there. Besides, a considerable part of Moldavian Russians come from Ukraine, where many of them will also return. The Situation is the most complicated in Central Asia. To begin with, there is a relatively large number of Russians there – 3.3 million according to the 2002 census. That is, there are more of them than in the Baltics, Moldova and the Transcaucasus taken together. Additionally, there are many people of those nationalities whose ethnic territories are within the confines of the Russian Federation – Tatars, Bashkirs, Mordvinians, and many others. Secondly, the “European” population has been leaving Central Asia: not only Tajikistan, with its civil war, but even stable Uzbekistan, Turkmenia and Kirghizia. Incidentally, the net outflow of population from Central Asia commenced as early as the mid-1970s, and the ten years between the censuses of 1979 and 1989, Central Asia’s migrational losses (departure outbalancing entry) came to

16 850,000 persons. This Active outflow began long before the outbreak of ethnic conflicts and it is not the latter that triggered it. The main reason for the population’s outflow from Central Asia is the excess of manpower resources, the shortage of jobs, and unemployment. Most “Europeans”will of necessity leave Central Asia. But certainly not all at once. The most mobile part of the population has already left. Many are simply unable to leave for a variety of reasons. But many are reluctant to leave and will do so only if there is a danger to their lives. The total net influx of population into Russia of the past few decades will evidently come to two to three million people, – most likely, to two million. It will not greatly differ from the influx which was recorded during the decade between the two census (1979–1988) – 1.8 million. Regrettably, a considerable portion of the migrants into Russia in recent years has been made up of refugees. Their lot would have been largely facilitated had there been state-to-state treaties on population migration, clearly defining the rights and duties of corresponding states in relation to both the migrants themselves and to each other: provision of the means of conveyance, organization of the evacuation of movable property, compensation for real property, pension security, etc. The Russian and other Russian-speaking populations of the ex-Soviet republics justifiably bear a grudge against Russia for the latter having abandoned and failed to defend them. But there is the paradox: in many of the newly-independent states, American embassies appeared much earlier than Russian ones. And nothing has even been heard about Russian consular services in these places. Life isn’t sweet for refugees even in Russia itself. Russia has still failed to pass a Statute on Forced Migrations and Refugees which would define their status, rights and duties. This means that they are actually deprived of all rights and powerless vis-à-vis local officials, who are not always prepared to help them in real earnest. Migrants also suffer from the fact that in Russia there is no freedom to move around its territory nor to choose a place of residence – fundamental and indisputable freedom which have long been en-

17 joyed by the population of the entire civilized world. And this means in practice that migrants cannot settle down wherever they want, wherever they can find work, housing and appropriate living conditions: they are simply denied domicile registration. Russians in the ex-Soviet republics live mainly in large cities, for the most part in republican capitals. They are intellectuals engaged in the production, scientific and humanitarian spheres, or skilled workers. But those who have moved into Russia are being sent primarily into the rural hinterlands of the regions, which have lost their population. The idea is to make them work in agriculture. No greater mockery of people at common sense could have been devised. The constitutions and draft constitutions of all the newly-independent states, which were recently the Union republics, contain a point on the citizen freedom of movement around their territory and the freedom to choose a place of residence. This is fully consistent with Article 13 of the Universal Declaration of Human Rights. Such a point also exists in the official draft Constitution of the Russian Federation. This is good, of course. But this followed by a point saying that the procedure of going over from the present situation on the desired future must be drawn up during the two years following the adoption of the Constitution. Then there is a point saying that the practical transition from the present order to the future must be carried out in the course of 10 years. This means that everything will remain as it is for at least another 12 years.

V.

Fill in the blanks with suitable words and expressions given below: to choose

to make them work

consistent

state-to-state treaties

come to

outflow

1) … … … .of population commenced more than 15 years ago. 2) Influx of population into Russia … … … .three million people. 3) The lot of people coming to Russia would have been largely facilitated had there been … … … . .4) Migrants

18 have no right … … … .a place of residence. 5) This right is fully … … … .with the Article 13 of the Universal Declaration. 6) The idea is … … … .in agriculture. VI.

Fill in each blank with one of the following words:

some

any

no

somebody

something

anybody

anything

nothing

nobody

everybody

everything

many

much

little

few

1) I know … … … .students in our University who speak English very well. 2) Do you know … … … .people who go in for sports in the University? 3) He had … … … .interesting to tell me. 4) Did you say … … … .? No, I said … … … . . 5) I see you are busy today, I’ll call on you … … … .other day. 6) Did … … … .ring me up? No, … … … .did. 7) Why are there so many mistakes in … … … .of your exercises? You didn’t have … … … .last time. 8) I can tell you … … … .about it. Neither can my brother. 9) He knows … … … .about that article. So does his brother. 10) I don’t have … … … .money at this time. 11) He spent … … … .time training himself on the sports ground. 12) We had … … … .letters from him while he was abroad. 13) They had … … … .time to be well prepared for the competition. VII. Use the proper tense of the corresponding verbs in brackets: 1) Various kinds of sports (to be popular) in Russia. 2) Where you (to go)? I (to go) to the central library to exchange a book. 3) Do you know that a very interesting lecture (to take place) last week? 4) He (to go) abroad a week ago. 5) When he (to be) 15 years old he (to enjoy) speaking English very much. 6) Look! Our football team (to win) now. 7) Where (to be) Boris next week? He (to train) himself before the forthcoming competition. 8) I (to be) in a hurry. My friends (to wait) for me. 9) During my holidays I (to go) to the theatre as often as I can. VIII. Name all the obstacles, which prevent refugees from successful adaptation in Russia.

19 IX.

Explain which of the following statements refer to reality:

1) Influx of population into Russia is not very large. 2) The right of refugees to choose the place of living is fully consistent with Universal Declaration Article 13. 3) State-to-state treaties would help people coming to Russia. 4) The idea is to make people work in agriculture. X.

Make the list of key words necessary for summarizing the contents of the text.

XI.

Write a summary. What is your attitude to the influx of refugees to Russia? Prepare it as a speech to your groupmates and be ready to discuss your views.

UNIT 5 Pre-reading tasks I.

Do you think that inflation is being controlled in Russia? Give your reasons if you agree or disagree.

II.

Check up in a dictionary the meaning of the following words and collocations. Transcribe:

1) skyrocketing prices; 2) subsistence wage; 3) state charity; 4) socially fair distribution; 5) sharp jack up prices. III. Form the nouns having the same roots: 1) to calculate; 2) to manage; 3) to demand; 4) to reform; 5) to situate; 6) to intensify; 7) to satisfy. IV.

Read through the text. Skyrocketing Prices Is inflation being controlled?

The implemented price reform prepared by the USSR State Committee for Prices, headed by Valentin Pavlov, 1987 is not only bad because it sharply jacks up prices, but also because it preserves the causes of the crisis. This measure will naturally help prolong the agony of the command-and-administer sys-

20 tem. However, it is obvious that the action of the new Prime Minister will neither stabilize the economy, nor advance radical reforms. Still worse, it will sharply lower our standard of living and aggravate all social problems. What’s more, if the compensation policy suggested by the Cabinet of Ministers is carried out, the situation will worsen even more. It is noteworthy that in 73 years of the people’s state only recently did we get an official calculation as to what is a subsistence wage. Although logically it ought to be the basis of our social policy. We still don’t have the officially approved amount of subsistence wage in the USSR. The results achieved by the above institutions are contradictory. The minimum per capita budget (in reference to 1988), worked out by the committee for Labour, was 105 roubles per month and by the Committee for Statistics – 75 roubles. It took several months and an increment of 3 roubles to coordinate positions. The final subsistence wage, signed by both committees, amounted to 78 roubles a month. Of course, the main reason for disputes lay not in methodological approaches. Two facts produced a shocking impression. First, it appears that over 90 million people or nearly 32 per cent of the country’s population have a per capita income of about 105 roubles a month and, consequently, are living below the official poverty level. Second, these 90 million could have demanded (legitimately) a rise in their incomes that would bring their incomes up to the subsistence wage. The absence of concrete ways to measure people’s living standards and their dynamics veiled the most serious tendencies in the social sphere: the beginning of a relative and absolute impoverishment of the population, the disintegration of the consumer market, increasing redistribution relations based not on labour input, but on the distorted “market Soviet-style”principles, labour crisis and complete destruction of motivation mechanisms and inefficiency of the so-

21 cial consumption funds. Could all these peculiarities be disregarded when launching the economic reform? Precisely for that reason the 500-Days Programme renounced the administrative price rise. In keeping with this programme, the liberalization of prices had to be effected only AFTER the normalization of the financial situation with a wide range of measures aimed at the nationalization, privatization and demonopolization of our economy. But Pavlov’s Cabinet took another road: it introduced a sharp, administratively-controlled rise in prices and compensations, which should have shown the state’s concern for its citizens. Although everybody can see clearly today what is behind this state charity, it is important to assess the suggested system of compensations from a professional standpoint, freeing it from all ideological gloss. From these standpoints the main thing needed for the success of the reform is minimum compensation. Experts believe that if it is more than twothirds of the total sum of the price rise the whole operation will be meaningless. True, Pavlov pledged to compensate people for about 85 per cent of the retail price rise. But it won’t be possible to approve or disprove this figure, because – unlike the subsidized prices of specific goods – compensations do not concern particular products. Our losses will depend on the consumption patterns in each family, on the sources of food and other goods supplies, territorial, ethnic and other factors. In fact, nobody was going to consider these “nuances” in the social protection system. Even according to the preconceived plan, the government compensated out price rise only state trade. But most of us also buy products at the outdoor markets, at cooperatives and elsewhere. Besides, the amount of compensation is practically the same for all republics (the republican authorities have no right to pay less than the minimum amount, but have no funds to pay more). Hence, the extent of these losses differs depending on the level of cash incomes, the amount and pattern of consumption

22 according to territorial location. Thus, means are redistributed from republics with higher standards of living to republics with lower living standards, and this will enable us to ensure a “socially fair” distribution of poverty all over the country. If one considers the social benefits to the disabled and families with children, it looks as if not they, but the state budget and the government, are the things being protected. Truly invaluable is the idea of ex-Chairman of the USSR State Committee for Labour and Social Issues Vladimir Shcherbakov, to set all social payments not according to the subsistence wage (which can be counted and which usually changes), but by minimum wages. Fixed minimum wages reliably guarantee invariable payments from soc•al consumption funds. What’s more, all payment benefits to families with children, single mothers, disabled persons, students, etc. have been fixed on the basis of a minimum wage of 70 roubles a month, established in 1972 (but not the 70 plus 60 to which all basis rates of wages are now to be increased). The above shows that Pavlov’s apprehensions about “gravitating from the price-formation reform as an essential factor in the transition to the market economy towards a confiscation reform of retail prices”are, to put it mildly, insincere. The reform was planned exactly like this and its success depends directly on the degree of confiscation. Here follow some of the likely results of the reform and of the so-called social protection measures. In conditions of an unstable economy, prices will keep growing: this includes free prices, contractual and state prices. If compensation to working people is included in basis wage rates, this will spark an uncontrolled rise in nominal wages. In addition, due to pressure by strike committees, the government will be compelled to raise by a decree the basic wage rates. This will give rise to greater inflation, which, in turn, will cause hyperinflation. The question of freezing incomes will come up, but will the present Cabinet manage to do it, or will the new Cabinet have to cope with these tasks? Time will tell.

23 The problem of consumer goods may even become more acute because prices, even the high ones, will hardly be able to reduce the demand for basic essentials. Most of the country has a low and very erratic diet pattern. The shift in the consumption pattern of even the high-income bracket towards cheaper food may give rise to an increased disbalance. A stabilization of the financial situation is also unlikely. It is quite possible that the difference between the amount of price rise will go to finance additional expenses connected with this measure. The printing of new money will keep growing. The current expectation of inflation will continue the tendency of “shunning money”. The introduced system of compensations will finalize the disintegration of the functioning distribution system. Wage leveling will intensify and defects in wages of people engaged in various branches may become aggravated. Compensation payments to workers from funds of enterprises will increase the tendency towards freeing more manpower. With the existing sharp recession of production, this is a step to a higher unemployment level. The living standards of practically all social groups will drop. All the above consequences, supplementing and aggravating one another, are creating a situation, which is going practically uncontrolled. The road of ambiguous reforms and compromises in the economy is too dangerous for the government and burdensome for the people. There isn’t and can’t be any effective forms of social protection under the disintegrating command-and-administer system. In any critical situation the most precious things always get saved first, and so the System will try to save itself. People must know about this if only to correctly oriented themselves and work out the needed model of conduct, relying on its own strength and having no illusions regarding the state’s social protection. One can speak seriously about social protection only in the context of radical economic reforms. Lying ahead is a transition to a system built not on

24 the social sponging of the bureaucratic hierarchy and the slavery of the bulk of the population, but on the principles of equal partnership between the state and the citizen, a businessman and a worker, producer and consumer. From these standpoints the very concept of “social protection” becomes senseless, because there is no need to protect anyone from someone else. The state needs to guarantee, by law or other ways, a normal life for every member of society.

V.

Fill in the blanks with words and collocations given below: consequences

incomes

guarantee

social protection

unstable economy

1) Fixed minimum wages … … … … … payments from social consumption funds. 2) In condition of … … … … … prices will keep growing. 3) The question of freezing … … … … … will come up. 4) There can’t be any effective forms of … … … … … under the command-administrative system. 5) All the above … … … … … ..supplementing and aggravating one another create practically uncontrolled situation. VI.

Translate into English using “ too” , “ also” , “ either” :

1) М о й др уг та кж е со б и р а е тся и зуча ть а нгли йски й язык. 2) Эти но во сти та кж е ва ж ны для на с. 3) О на та кж е учи ла сь с на ми в уни ве р си те те . 4) О н ска за л, что то ж е ни ко гда не б ыва л за р уб е ж о м. 5) О ка за ло сь, что Л а вр о вы то ж е ж и вутзде сь. 6) О н ска за л, что о н то ж е б уде твыступ а тьна ко нфе р е нци и . 7) О на ска за ла , что о на та кж е скуча е тп о до му, ка к и я. 8) М ы не мо гли та кж е не за ме ти тье е и п р о йти ми мо . 9) О н ска за л, что о н то ж е не зна е т а др е с Пе тр а . VII. Answer the following questions on the text using constructions: it seems to me; to my mind; in my opinion; no doubt. 1) Do you have the officially approved amount of subsistence wage in Russia? 2) What was the minimum per capita budget (in reference to 1988)? 3) How

25 many people are living below the official poverty level? 4) What was needed for the success of the reform? 5) Where do most of us buy products? 6) What did Vladimir Sherbakov propose? 7) What was the minimum wage a month? 8) On what was the success of the reform planned? 9) Will the printing of new money keep growing? 10) Will the living standards of practically all social groups drop or rise? 11) What made the author think that inflation is not being controlled? VIII. Give your examples of inflation in Russia. IX.

Speak on why the author came to the conclusion that inflation in Russia is not being controlled. What is the present-day policy?

UNIT 6 Pre-reading tasks I.

Check up the meaning of the following words and collocations with the help of a dictionary if necessary:

1) dead capital; 2)to have surpluses; 3) to have shortages; 4) to be switched to the production of a new model; 5) to make a deal; 6) to earn a ten per cent commission; 7) undertakings; 8) spare parts; 9) to refuse to pay the commission; 10) to pay one’s debts; 11) profitable transactions; 12) to get loans; 13) bureaucratic barriers. II.

Can you give some facts to show that business enterprises are squeezed with so many rules that it’s impossible to make money?

III. Form verbs and adjectives of the following nouns:

Noun

Verb

Adjective

cooperative

… … … … …

… … … … …

object

… … … … …

… … … … …

benefit

… … … … …

… … … … …

profit

… … … … …

… … … … …

26

IV.

decision

… … … … …

… … … … …

manager

… … … … …

… … … … …

production

… … … … …

… … … … …

Read through the following text. Business People from an Executive Committee or on how some Deputies are beginning to make their own money and the problems this is creating

Several employees of large enterprises – economists, technical experts – have quit their jobs and gone to work for the Executive Committee of Moscow’s Lyublino District Soviet. Local people have started calling them managers. This sounds unusual for apparatchiks but is consistent with their new occupations. Although the territorial intersectoral production-technical administration produces nothing on its own, it organizes things so as to ensure earnings for Deputies. The EC managers studied the district’s enterprises carefully. Despite constant complaints of scarcities, the enterprises had more than ten million roubles ’ worth of raw materials, supplies and equipment between them – dead capital. The managers became brokers, brining together those who had surpluses with those who had shortages. The workers of the mew administration are supposed to remit a specific percentage of their profit to the account of Deputies. Thanks to mismanagement

The new administration anticipates converting business executives’ hoarding, mismanagement and lack of enterprise into a source of financial support for district authorities. “When the Lenin Komsomol Motor Works switched to the production of a new model of the Moskvich car”, says Motor Works department head Khamit Zinurov at this administration, “they intended to scrap the equipment that had been used to make the old model. It cost 32,000 roubles.

27 “We started looking for a buyer – and finally found one in Perm. We helped the Motor Works and the Perm enterprise make a deal and earned a ten per cent commission.” How to get right

One of the managers’ first commercial undertakings flopped. They helped a motor transport enterprise in Krivoi Rog purchase 6,000 roubles’ worth of spare parts for its Moskvich cars. Then the enterprise refused to pay the commission. “It was very hard to get started,” says Iosif Rotgolts, head of the collective. “We didn’t have a single kopek of original capital. At one point it looked like we wouldn’t earn anything either. The Executive Committee received the first 3,000 or 4,000 roubles for the work we did for cooperatives.” “We wanted to manufacture children’s footwear,” says Vladimir Gribanov of the “Vzlyot”cooperative. “But we didn’t have the foggiest idea of how to approach this business. The EC managers helped us.” Today “Vzlyot” has its own footwear repair shop, has built a production line of children’s shoes and is equipping its own store. For a fee of 150 roubles a quarter, the EC managers do consulting work for “Vzlyot” on legal, economic and other matters. The EC has also made the “Lida” cooperative a profitable business. “Lida” specializes in knitted sweaters, blouses and jackets which it manufactures using West German equipment. “Thanks to the help of the EC managers,” says Valery Sukhin, “Lida’s” chairman, “we have signed an agreement on a joint venture with the German firm – “Mashintorg-Lida.”Now we’ll reach the world market.” True the cooperatives affairs now are going from bad to worse. It owes the EC. Having pledged to pay 1,000 roubles a month for consultations, it has yet to pay one kopek.

28 “But I believe them”, says Iosif Rotgolts, “They will rev us and pay their debts to us and bring a profit, in hard currency.” A bureaucrat, the foe of bureaucrats

The EC managers are confident of their business abilities and no longer fear going down the drain. They have already concluded 54 agreements on cooperation with enterprises, while 12 cooperatives use their consulting services regularly. The only thing these 15 EC managers (district-level bureaucrats) fear is bureaucrats. As Iosif Rotgolts has admitted, during their four months of business last year the EC managers could have given much more than 25,000 roubles. But they always take the potential auditor into consideration and so they have had to give up many profitable transactions. “I have no doubts that even in our own EC there are some who call us “profiteers”, says the EC managers’ chief. “One day they may close us down saying that we are too independent or having decided that our activities “don’t do credit” to the district authorities. They may squeeze us with so many rules that it’s impossible to make money.” Having invested 60,000 roubles in rebuilding a shop originally intended to turn out goods in short supply in the West, the EC managers could ensure themselves a stable income. When it set up these organizations as an experiment, the Moscow City envisaged getting loans. But the banks have their own ideas about such institutions. They refused to loan money to the EC managers. The collective’s dream is to have the country’s lowest wage – 70 roubles. The main income must be in commissions from deals. But even this is forbidden by existing instructions. This year the Lyublino District will have a four-million-rouble “gap” in its budget. Due to bureaucratic barriers, the EC managers won’t be able to close the gap out of its own revenues. But its people hope that as time passes those

29 who are reluctant or unable to work with a profit will retire. Then the business people will be able to help make their people rich and strong.

V.

Complete the sentences using “ in” , “ at” , “ on” prepositions:

1) There was nothing to do … … … .weekends and he was just wondering about the city. 2) They went swimming … … … .Sunday morning and … … … .evening they played tennis. 3) I was born … … … .25 March, 1987. 4) People in Russia exchange presents … … … .New Year and not … … … .Christmas Day as in some other countries. 5) He is fond of going for walks … … … .summer because it’s still light … … … .nine o’clock. 6) The train came … … … .time. 7) He came to help me just … … … time. 8) This cathedral was built … … … .seventeenth century. VI.

Open the brackets using the correct form of the verb. Don’t forget that after “ as if” the verb is used either in Past Simple or in Past Perfect or Past Perfect Continuous:

1) They treat her as if she (to be) a little girl. 2) He looked as if he (to do) something important. 3) She spoke in such a way as if she (to know) the matter best of all. 4) The house looked as if nobody (to live) in it for a long time. 5) Why are you telling me about all this as if it (to be) a good news. 6) They met him as if they (to wait) for him. VII. Complete the sentences with suitable prepositions indicating work relationship. For example:

I work for Hugs (they are my employers) I work at Hugs (the place) I work with Hugs (a sense of collaboration)

or

I am in computers (general type of work) I am in the Sales Department (specific place of work)

30 1) I work … … .Manders. 2) She has been … … … Manders … … … years. 3) He’s … … … .the Production Department. 4) I’m … … … .fashion design. 5) I’m … … … .the recruitment side. VIII. Pick out passages from the text showing in what ways some deputies make their money. IX.

One famous business person said “ There is not a single honest businessman in Russia that has never stolen.” What do you think about it? Do you think a business can be one hundred percent honest?

UNIT 7 Pre-reading tasks I.

Check up and transcribe the following words and collocations in a dictionary:

1) implementation of the law of bankruptcy; 2) state debtor enterprises; 3) commercial competition; 4) to take responsibility for unpaid debts; 5) the sale of entire properties; 6) to pin one’s hopes; 7) the enterprise is declared insolvent; 8) to appoint a manager; 9) to run the enterprise; 10) to stem the tide of bankruptcies; 11) criterion for insolvency is very vague; 12) to be on the verge; 13) to prevent bankruptcy; 14) diversification; 15) to seek hidden possibilities; 16) to stash away for a rainy day. II.

What is bankruptcy? What can make a company go bankrupt?

III. Read through the text. There will be no Large-scale Bankruptcy in Russia MN correspondent Andrei Denisov interviewed Sergei Belyayev, Director-General of the Federal Department of Insolvency (bankruptcy). Recently the government came to a decision on the implementation of the law on bankruptcy, and a presidential decree is expected soon on the sale of state debtor enterprises. What can you say about these decisions?

31 The decree stipulates the sale of enterprises with their entire “property holdings.” Sales will be effected at commercial competitions on the condition that buyers not only acquire the enterprises themselves, but also take responsibility for unpaid debts. This obligation on the new owner will make it possible, we hope, to change the entire situation regarding nonpayment of debts. Although it can hardly be expected that such buyers will be found soon, they are bound to appear once the sale of entire properties is proposed. The formalization of ownership rights is important not only for the foreign investor on whom we traditionally pin our hopes but also for the Russian one. At the same time the decree resolves the issue of who is the master of an enterprise, the state, as owner, or the manager. From the moment that an enterprise is declared insolvent, labor relations with its manager will be severed. The Federal Department for Bankruptcy will appoint a new manager who will run the enterprise until the moment of its sale. Thus, as a result of this decree, these enterprises will be provided with an opportunity to save themselves by means of sale. It is also proposed to sell blocks of shares in state property also on the condition that investments will be made. The adoption of this decree will evidently stem the tide of bankruptcies, since the criterion for insolvency is very vague. Although an enterprise may not have money today, in a week’s time its manager might have forgotten about its possible collapse. What, in your view, will be the scale of involvement in the bankruptcy process? There will not be large number of bankruptcy. In enterprises are on the verge, we will take the necessary measures. The sale of an enterprise under special conditions is one possible measure to prevent bankruptcy. The adoption of the recent decision by the government enables us to take another step forward, for we have established a criteria, an algorithm of decision-making for measures of state support or for the liquidation of bankrupt enterprises. For instance, we know that at present over a thousand major enterprises fall under the criterion of

32 insolvency. Dozens of cases of bankruptcy have been examined, but the federal department has not yet made statements about the bankruptcy of these enterprises. Are there differences in the dynamics of potential bankruptcies in various sectors or regions? Whatever differences in regions there may be depend on the geography of the sectors. But here again we can only speak about certain specific features of the restoration of solvency. The situation of enterprises in the defense industry is especially difficult. In the first place, diversification was not carried out in time. Secondly, conversion to non-military production, on which everybody relied so heavily, is proceeding much too slowly. Still another problem is the expectation of new state defense contracts, but on the whole they are either nonexistent or they pay very slowly. Machine-building enterprises are also in a difficult situation. From a financial point of view the bankruptcy process has two aspects: first, the cost of improvements and second, the potential income from sale at a commercial competition. Do you expect any economic effect from this process? I certainly do. First of all, under the threat of potential bankruptcy we will at last begin to resolve the nonpayment situation. Enterprising managers who want to keep their jobs will seek hidden possibilities and will produce what has been stashed away for a rainy day. I am referring to the many bank accounts which do not always appear on the accountants’ books, to hard currency accounts intended for profiting on exchange rate margins to branch firms, etc. Secondly, there is the effect of the sale of debtor enterprises. Here debts are eliminated by the new owner. This is very important because this effect will be practically equal to the credits which the heads of many enterprises demand today. Lastly, there is the part of the proceeds from sales at a commercial competition which exceeds the necessary minimum of investments and which we channel to the budget.

33 The present budget, which is being so painfully adopted, does not provide for expenditure for the radical improvement of enterprises. How will your department resolve this problem? Sometimes reorganization measures do not require direct financial support by the state. But at the same time there are enterprises which we are obliged to help. When the threat of bankruptcy for an enterprise arises, the state will seek the necessary funds. This is not provided for in the current budget, but we have raised the question of adding two clauses: for the formation of a fund to radical improvements and a fund for social support in the event of bankruptcy.

IV.

Give synonyms to the following:

1) bankruptcy; 2) to pin one’s hopes; 3) to run the enterprise; 4) insolvent; 5) large-scale. V.

Answer the following questions:

1) Why does the government come to a decision to implement the law of bankruptcy? 2) What are the differences in potential bankruptcies in various sectors or regions? 3) What are the aspects in bankruptcy process from a financial point of view? 4) Will there be large numbers of bankruptcy in Russia? 5) Why doesn’t the present budget provide for the expenditure for radical improvements of enterprises? 6) The ownership rights are important for foreign investor and Russian one, aren’t they? VI.

Translate the following sentences into Russian paying attention to the meaning of the verb “ make” :

1) The government made a decision to implement the law on bankruptcy. What made them do it? 2) What makes the buyers take responsibility for unpaid debts? 3) The formalization of ownership rights makes our country pin hopes both for Russian and foreign investors. 4) The situation in defense industry makes it produce non-military products. 5) The sale of an enterprise under special conditions makes the state take possible measures to prevent bankruptcy.

34 6) The threat of potential bankruptcy makes the owners resolve non-payment situation. 7) Enterprising managers will be made seek hidden possibilities for producing necessary products. VII. Correct mistakes in the following sentences: 1) There will be not large numbers of bankruptcy. 2) The situation in defense industry especially difficult. 3) If the enterprise will be declared insolvent labor relations will be severed. 4) The government makes us to take another step. 5) Enterprising managers forced to seek hidden possibilities. VIII. Replace the infinitives in brackets with a proper past tense. 1) When I (to leave) home it (to rain) fast. 2) I (to meet) him when he (to walk) to the station. 3) What you (to write) when I (to come in)? 4) The telegram (to come) just as I (to leave) the house for the office. 5) It already (to begin) to grow dark; the cold autumn wind (to whistle); the clouds (to creep) over the sky. 6) On checking up his answers he found that he (to do) five examples wrong. 7) Before he (to read) half of the book he (to insist) he didn’t like it. 8) I (to leave) home at 9 o’clock but I (not to go) far when I remembered that I (to forget) to lock the door. 9) It was nearly nine when the audience (to assemble) and the conference (to begin). 10) I not yet (to fall) asleep when I (to hear) the sound of the bell. 11) Although darkness (to fall) we still (to continue) our way. IX.

Find key words in the text for rendering it in English.

X.

Make a short summary of the text in writing.

UNIT 8 Pre-reading tasks I.

Check up and transcribe the following words and collocations using a dictionary if necessary:

1) assessed resources; 2) exhausted deposits; 3) profitable oil resources; 4) to be exploited; 5) participation of foreign capital; 6) state-owned enterprises; 7) to lag behind other advanced countries by 2–5 times in per capita consumption of

35 raw materials; 8) USA smelts 3 times more steel in per capita terms; 9) geological exploration; 10) prospected deposits on the floor of the world ocean; 11) both for now and in the long run; 12) to mine coal; 13) mortgaging mined gold and diamonds; 14) to secure loans; 15) to reduce profits for nothing after inflation; 16) foreign investments in the mining are negligible; 17) despite lengthy negotiations; 18) it stands to reason; 19) to share power with anyone; 20) to restrict the rights of foreign banks; 21) favorable conditions. II.

Why do economists speak about the importance of outside investment in Russian economy?

III. Form adjectives from the following nouns: 1) production; 2) mineral; 3) profit; 4) development; 5) tradition; 6) advanced; 7) quality; 8) addition; 9) geology; 10) success; 11) world; 12) wealth. IV.

Read through the text. Where to Find Investors for Mining Mineral Resources? Russia will never again reach the level of oil production which it had in

its best years, says Viktor Orlov, Chairman of Russia’s Committee for Mineral Resources. This is because the biggest deposits have been largely exhausted while the development of new ones is unprofitable. Ninety per cent of the country’s profitable oil resources are already being exploited. According to Viktor Orlov, not more than 5% of licenses for the development of mineral deposits have been issued to businessmen. Of the 6,500 licenses issued during the last two years only about a hundred went to enterprises with participation from foreign capital. Ninty0five percent of the deposits are being developed by 350 traditional state-owned enterprises. The speech by the chairman of Russia’s Committee for Mineral Resources at an elite VIP-club formed by a group of major Russian entrepreneurs and politicians in August 1991, contained several theses which differ from commonly accepted views. Orlov claimed, for instance, that Russia lags behind other advanced countries by 2-5 tines in per capita consumption of raw materi-

36 als. He said, in particular, that the USA smelts three times more steel in per capita terms, the quality of which is much higher than that of our steel. He also noted that only one mining combine “Streltsovsky”produced uranium in Russia. Another non-standard statement concerned the expansion of Russian territory: successful geological exploration on the North shelf has raised the question of pushing the 200-mile zone further to the North. In addition, Russia has in recent years prospected deposits on the floor of the world ocean; according to international law such deposits are allotted to the country that discovers and develops them. The chairman of the Mineral Resources Committee added parenthetically that the unique sea vessels required for this work have been maintained during the last year by the committee’s internal reserves. The chairman of the Mineral Resources Committee named coal, rather than oil or gold, as the country’s main source of wealth both for now and in the long run. He noted that the USA, for instance, mines three times more coal than Russia, while Germany has made coal its main interest, which, incidentally, means that mining coal can be profitable. A separate question discussed at the meeting concerned the possibility of mortgaging mined gold and diamonds at banks in order to secure loans. Orlov said that he had recently had a detailed c•nversation with president during with this problem was discussed. Orlov believes that it will be resolved positively, but not in the near future. He added, however, that precious metals and stones can for the time being be mortgaged only at Russian banks and on Russia’s territory. The gold producers who took part in the club’s meeting complained to one another, among other things, about the theft at state refining plants of precious metals handed over for processing, and about the fact that the state, which monopolized the purchase of gold from the miners, does not pay them for half a year, which reduced their profits to nothing after inflation. It is interesting to note that the chairman of the Mineral Resources Committee supported their

37 view and added that our state appropriates gold from everybody, does not sell it and does not allow it to be used for mortgage and still has no gold. The gold reserves of the USA are counted in hundreds of thousands of tons, while those of Russia equal 340 tons. The head of the Mineral Resources Committee stressed several times in course of the discussion that foreign investments in the mining and prospecting of mineral resources are negligible, and that no one wished to actually invest money, despite lengthy negotiations. As one of the participants in the discussion aptly pointed out we have in general formed an erroneous opinion of foreign investors as idiots who come with money, give it to us and go away, not counting on getting it back. It stands to reason that a gigantic monopolist like Gazprom cannot attract investments since serious investors demand not only dividends but also the right to take part in managing the concern, while Gazprom’s leadership does not, and this is also natural, want to share its power with anyone. Incidentally the chairman of the Mineral Resourced Committee made it clear that he does not mind if the development of our deposits is handed over to foreign firms, while the Russian businessmen asserted, on the contrary, that we have swapped foreign investments for economic independence and have done the right thing. Their motivation is essentially the same as that of Russian bankers who come out in favor of restricting the rights of foreign banks operating in this country. The Russian businessmen proposed waiting for a couple of years until our own investors appear, but the fact is that, in order to build the capacity to mine one ton of gold it is necessary, according to Orlov, to spend about a million dollars on equipment and infrastructure. The scale of the expenditure certainly cannot be compared to buying a Volvo or building a cottage. To conclude on an optimistic note I can add that the representatives of major Russian banks who were

38 present at the meeting repeated every now and then: don’t think that we have no money; we have money, but the condition are not yet favourable.

V.

Translate into English using the vocabulary of the text. Mind your grammar.

1) Д о во дыр о сси йски х п р о мыш ле нни ко в та ки е ж е , ка к и у р о сси йски х б а нки р о в, ко то р ые выступ а ли р а ньш е за о гр а ни че ни е п р а в и но стр а нных б а нко в. 2) З о ло то п р о мыш ле нни ки , п р и б ывш и е на встр е чу в сво й клуб , со о б щ и ли , что др а гме та ллыи ка мни во р ую тна го суда р стве нных п р е дп р и яти ях . 3) Пр е дсе да те ль со б р а ни я со о б щ и л все м, что о н не да вно го во р и л с п р е зи де нто м о п о ло ж е ни и де лю 4) Усп е ш ные ге о ло ги че ски е и ссле до ва ни я се ве р но го ш е льфа о ткр ыли во змо ж но стьп р о х о да 200 ки ло ме тр о во й зо ны на се ве р Ро сси и . 5) В не да ле ко м п р о ш ло м р о сси йски е ге о ло ги о ткр ыли п е р сп е кти вные за ле ж и не фти на дне о ке а на . VI.

Open the brackets using either” , “ besides” , or “ except” . Don’t forget that the Russian “ кром е ” is rendered in English with the help of different words: за и склю че ни е м – “except” кр о ме

п о ми мо , в до п о лне ни е к “besides”

1) It was all in order in the house (except, besides) the hall. 2) Have you read any other books by M.A. Bulgakov (except, besides) “Master and Margarita”? 3) He is busy the whole week (except, besides) Sunday. 4) During our trip to Kiev (except, besides) museums and picture galleries we visited cathedrals. 5) There was nobody in the room (except, besides) the girl. 6) What other languages (except, besides) English do you know? 7) I don’t know any other languages (except, besides) English.

39 VII. Complete the sentences with “ go+ing” forms of the verbs which are concerned with any activities or sport: 1) He declared: “We’ll go … … … … … tomorrow. 2) They went … … … … … but didn’t buy anything. 3) Do you play any sports? No, I just go … … … .in the morning. 4) If there is enough snow tomorrow we’ll go … … … … .. . 5) We had wonderful holiday in Sochi. We went … … … … .every day. The water was lovely. VIII. Use corresponding passive constructions: 1) We met the delegation at the station. 2) They are building gigantic factories and powerful machines. 3) At sunset they made camp on the bank of the river, lit a fire and prepared supper. 4) They are building many new schools in this district. 5) You must repeat these rules once more. 6) We shall not touch upon this subject today; we shall discuss it in detail at our next meeting. 7) They outloaded the ship in the course of 2 hours. 8) Who has given this book? 9) They haven’t yet dusted the room properly. 10) He will have touched only a few points in their work. 11) As there was no room at the hotel they would have given them lodgings in a private house. IX.

Use the proper tense (active or passive) of the corresponding verbs given in brackets:

1) Nobody (to see, to be seen) him yesterday. 2) Budapest (to divide, to be divided) by the Danube into two parts Buda and Pest. 3) We (to show, to be shown) the historical monuments of the capital to the delegation. 4) Who (to call, to be called) the father of Russian aviation? 5) You (to find, to be found) interesting historical facts how Yuri Dolgoruki (to found, to be founded) Moscow. 6) He (to meet, to be met) his parents and friends. X.

Ask your group-mates why it is difficult to find investors for mining mineral resources in Russia. Ask them to give their reasons. What known and assessed resources can they show on the map?

40 XI.

The chairman of the Mineral Resources committee named coal rather than oil or gold – the main source of wealth both for now and in the long run. Why? What do you think about it?

UNIT 9 Pre-reading tasks I.

Find out the meaning of the following words and collocations, transcribe them with the help of a dictionary:

1) illegal use of investment; 2) state oriented credits; 3) currency circulation; 4) corruption in the government bodies; 5) unlawful seizure of property; 6) bribe-taking; 7) controlling package of shares; 8) check up of suspicious deals; 9) false payment papers; 10) today counterfeit banking guarantees have become popular; 11) unlawful receipt of easy credits and their improper use; 12) laundering of money; 13) graft; 14) the issue of ready money; 15) clearance accounts; 16) collapse of financial payments. II.

Find a fact (or facts) to prove that urgent measures should be taken on the part of the state to stop economic crimes in the country.

III. Do you think Russian economy is crime ridden? IV.

Read through the text. Economic Crimes Flourish The illegal use of investments and state oriented credits, illegal operations in the field of currency circulation, corruption in government bodies, abuses in foreign economic activities – such are the main crimes that have been committed in the past six months. Below Viktor Ageyev and Alexander Goloviznin, senior inspectors for

specially important affairs at the Main Directorate on Economic Crimes of the Ministry of internal Affairs, explain what new crimes have appeared, and how the old ones have been perfected.

41 A.G.: The new elements the law-enforcing bodies have encountered of late are crimes in the sphere of privatization. Reform has proceeded without real mechanisms of control over the course and procedure of privatization. During the past half year the number of crimes committed in this sphere totaled 566. One hundred twenty-six of them were committed on a large scale. The most widespread is the unlawful seizure of property and bridetaking. Currently under investigation in Kursk is a case which is, incidentally, typical of Russia: the director-general of a motor enterprise unlawfully laid his hand on the controlling package of shares. He simply did not notify other shareholders about decisions being taken and used bribes to “persuade”the officials of the Committee on the Management of Property when registering documents on privatization. MN: Is it possible to predict a further rise in the number of crimes in this sphere? A.G.: Indeed, it is expected that with the transition to the cash stage of privatization there will be an increase in both corruption and theft: to be put on sale will be the enterprises of the most profitable sectors in which organized criminal groups have an interest. The mechanisms of control on the part of the state, however, have still not been worked out. MN: How will this control be exerted? V.A.: In the mandatory presentation of declarations on incomes in deals above definite sums, taking stock of financial operations and their participants, and a check up of suspicious deals. MN: Probably, the credit-financial sphere gives the subdivisions of the Directorate on Economic Crimes no fewer worries than the denationalization processes. A.G.: It still remains one of the most crime-intensive spheres. Whereas previously money was stolen with the help of false payment papers, today counterfeit banking guarantees have become popular. There is also the unlawful re-

42 ceipt of easy credits and their improper use, and the “laundering” of money. Even more widespread is graft linked to the provision of credits, the issue of ready money, the operating of clearance accounts, and the acceleration of the passage of financial documentation. MN: Don’t forget about financial pyramids and their collapse. V.A.: As of March 1 in Moscow alone there were 213 bankrupt financial companies. As a rule, their bankruptcy was linked to the deceit of depositors and the fraudulent appropriation of the collected money by the leadership of these firms. But to this day about 450 unlicensed non-banking commercial enterprises deal in finances. It cannot be said that law-enforcements bodies look through their fingers at such fraudulent financial dealers. Thus, in February the Main Directorate on Economic Crimes of the Internal Affairs Ministry jointly with the Penza Region’s Department of Internal Affairs exposed a group which had appropriated more than 9 billion rubles which belonged to 8,000 depositors. In May criminal proceedings were instituted against 11 persons who had stolen from the Grozny subsidiary of Credo-Bank currency bonds to the sum of over 7 million dollars. The greater part of the bonds has been found and confiscated. Incidentally, called to account among others are a senior inspector of a special department of the Federal Security Service, the chief of the financial department of a regiment, and the head of the currency department at one of Moscow’s commercial banks. A.G.: Quite frequent also are “plain” swindles, without the promise of out-of-this-world interest on deposits. Exposed in the Saratov Region was a group headed by a Muscovite who, incidentally, was being sought for murder. The swindlers, introducing themselves as staff members of a Russian-Irish joint venture, attracted citizens’ money for the construction of comfortable and inexpensive housing. In three months the inhabitants of the city deposited nearly 650 million rubles in the firm’s account. Having sensed the law-enforcers’ interest in the firm’s activities, the swindlers fled with all the money and were de-

43 tained only after a long search by the personnel of the department on economic crimes. MN: The sphere of export-import operation has continued being one of the most crime-intensive. Apparently, the liberalization of foreign economic activities has also led to a “ liberalization” of economic crimes. V.A.: This has happened because of the abolition of quotation and licensing, the absence of due control in conditions where there is a disbalance of domestic and world prices and, of course, the inadequate protection of borders – both state and custom borders. The main kinds of crimes in this sphere are contraband, graft and thefts. The lion’s share of crimes falls on the custom clearance of foreign cars. In six months for 12 regions of Russia 45 criminal cases were instituted in connection with bride-taking in custom bodies. MN: The forgery of banknotes has always been one of the most widespread types of crimes. Has anything changed in this sphere? A.G.: Over 5,000 crimes were registered during the first half-year – 70 percent of last year’s figure. But the volume of counterfeit dollars and other currencies deleted from turnover has already exceeded the indicators for the whole of last year. Particularly worrying is the increase in circulation of the quantity of the so-called superdollars. To see through a false banknote, there is a need to carry out a special costly analysis. The usual equipment available at each bank is not good for this purpose. Therefore every tenth 100-dollar banknote in circulation on Russia’s territory today is a counterfeit. MN: Are the counterfeits mostly “ domestically made” or imported from abroad? A.G.: False money comes from Chechnya, from Ukraine, from Poland and countries in the Middle East. Recently the agents of the Moscow Directorate on Economic Crimes detained a citizen of India for the sale of 40 counterfeit 100-dollar banknotes. Subsequent undertakings are carried out in conjunction with the Indian police and the US secret service. In early summer the workers

44 of the economic crimes section of the Rostov Region’s Department of Internal Affairs exposed a group which dealt with the manufacture and sale of 50,000ruble banknotes. MN: The forgery of credit cards and operations with them are considered in the West no less a problem than false cash. Is it already possible to speak about the domestic criminal world’s mounting interest in the legal tender? V.A.: Yes, it is already possible. Of late crimes have been ever more often registered in Russia in connection with the forgery of credit cards. Thus, according to the American Express company, in the past half-year there have been identified four cases of the appearance of counterfeit Master Card cards and five Visa cards. The damage from the illegal use of American Express cards in Russia monthly comes to $50,000-70,000, and it may be predicted that this sum will considerably increase next year. MN: The overall picture seems to be very sad and the prospects are far from encouraging: “ continuing growth, further intensification.” What are the reasons for such a lamentable situation? V.A.: First, the inadequacy of the existing legislation with many contemporary processes: a crime already exists, but it has not yet been defined in law and there are no norms of responsibility for it. There is one more reason: having given up control over citizens, the state has never been able to organize control over the movement of citizens’ money, the origin of capital and nascent fortunes.

V.

Work in pairs. Ask your partner:

1) if there will be an increase in corruption and theft in the most profitable sectors of national economy; 2) fraudulent appropriation of the collected money; 3) the most crime-intensive export-import operations; 4) the forgery of banknotes

45 is one of the most widespread types of crimes; 5) the forgery of credit cards is considered no less than false cash. VI.

Use Active Tense forms Instead of Passive in the following sentences:

1) The money was stolen with the help of false payment papers by the management of bank. 2) The reform has been proceeded without real mechanism of control on the part of the state. 3) The citizens in the Saratov region were attracted to the construction of comfortable and inexpensive housing by the swindlers. 4) Several changes in the factory management were brought about by important economic factors. 5) New taxation laws are widely commented on in press by the readers. 6) Part time work is now mostly being taken on by the women. 7) When he tried to put forward his proposal he was only laughed at by the audience. 8) The chances of wide employment for children during summer holidays are dealt with in this article. VII. Use participial constructions instead of subordinate clauses: 1) The group which was headed by “Moscovite” attracted citizen’s attention. 2) When nine million roubles had been appropriated in the Penza region the Department of Internal Affairs exposed a group of fraudulent financial dealers. 3) Criminal proceedings were instituted against 11 persons who had stolen from Grozny Bank currency bonds. 4) When money had been stolen the swindlers were detained only after a long search by the personnel of the department on economic crimes. 5) When swindlers introduced themselves as staff members of the Russian-Irish joint venture they stole money with the help of false payment papers. VIII. Translate the following using a suitable “ put combinations” from the brackets. Don’t forget that “ put” with different prepositions has different meanings. Remember that “ put down” means both “ кл а с т ь” and “ за пис ы в а т ь” . 1) О н п о ло ж и л (put down) кни гу на ма ле ньки й сто л. 2) М ы о тло ж и ли (put off) это тне п р и ятный р а зго во р . 3) Я не б уду ми р и ться (put up with) с та ки м

46 п о ло ж е ни е м. 4) По че му о на за п и са ла (put down) то лько тво ю фа ми ли ю ? 5) О тло ж и кни гу (put aside) и за йми сь (get down to) эти м за няти е м. 6) По че му выо ста но ви ли сь(put up at) в го сти ни це , а не у на с? 7) О н вно вьп е р е чи та л п и сьмо и уб р а л (put away) е го . IX.

Write 100–150 words on:

1) Why has bribery taking become a problem in almost every business field? 2) If you were a head of a company (firm) would you learn the art of giving a bribe or stand by your principles?

UNIT 10 Pre-reading tasks I.

Find out the meaning and transcribe the following words and collocations with the help of a dictionary:

1) expediency; 2) to draw foreign investment; 3) all Russia opinion polls; 4) involvement; 5) to establish cooperation; 6) to favor the investment; 7) full foreign ownership; 8) to change substantially; 9) growing awareness of the integration expediency of the world market; 10) to be acceptable; 11) to lose sight of; 12) to be undecided due to the lack of experience and information; 13) to overcome the crisis; 14) negative attitude; 15) Russia has become dependent on the West; 16) to object to something. II.

What will help Russian economy to flourish?

III. Read through the text. Attitude Toward Foreign Capital in Economy The answer to this question is supplied by researchers of the Sociological and Socio-Psychological Center of the Russian Academy of Management on the basis of a number of opinion polls conducted in all economic and geographic zones in Russia

The main conclusion is that public opinion regarding foreign investment in the Russian economy changed substantially, moving away from stereotypes

47 of isolationism to Russia’s greater openness to the world and the growing awareness of the integration expediency in the world market. These changes in opinion regarding foreign capital are patently shown by answers to the question: “Do you think it is acceptable to draw foreign investment into Russian economy?” This question was put during all-Russia opinion polls in mid-1992 and 1993. In 1992 there was a relative majority of those who were against partnership with foreign capital while in 1993 there was a relative majority of those who were in favor of it. However, one should not lose sight of the fact that almost one third of the Russian population was undecided due to a lack of experience and information. The change of attitudes results from the development of a pragmatic attitude that regards the role of foreign capital as the success of some joint ventures activities. Also, there is less hope that Russia will be able to overcome its crisis in the foreseeable future by only relying on its resources. However, a certain role is being played by nationalism. According to the results of the opinion poll held by the All-Russia Center of the Study of Public Opinion in August 1992 in twelve Russian cities, 44 percent had a negative attitude to large-scale aid to Russia from the International Monetary Fund, and only 36 percent approved of the idea. A similar manifestation of citizens’ attitudes was registered in 1993. For instance, 59 percent of 1,320 respondents representing twelve regions of Russia (among them urban and rural residents) said that Russia has become dependent on the West and they object to this. Attitudes to foreign ownership of enterprise

As was already noted, 47 percent of the population favor the involvement of foreign capital in Russian economy. But the support for this idea dwindles when people are asked if they would welcome the participation of foreign capital in the enterprises where they work. Only 36 percent are in favor.

48 Negative attitudes towards the participation of foreign capital in the enterprise where one works are quite consistent. A considerable portion, 42 percent, are against any participation of foreign capital in the ownership of the enterprises where they work. Only 6.4 percent are in favor of full foreign ownership of the enterprise. 29.7 percent of respondents favor partial ownership of the enterprise by foreign capital. The positive attitude to this form of foreign participation clearly depends on the educational level of the respondents. Only 16.2 percent of people with incomplete secondary education are in favor of this. The ratio for those with secondary education is 26.9 percent, and for those with higher education level, the figure grows to 38 percent. He age of respondents proved to be insignificant factor regarding the answer to this question. One of the reasons for this cautious attitude towards the possibility of a foreign owner is that more than a third of the respondents could not foresee the consequences of the changes of their enterprise. Only 28 percent believe that the emergence of a foreign owner of their enterprise will have a positive effect on work relations. Forty-six percent believe that foreign ownership of the enterprise would have a positive influence on labor. The attitudes of entrepreneurs and managers

Directors prefer involvement of foreign capital in organizing production and the use of capital. They believe that the borrowing of contemporary foreign technologies and the training of specialists in management is of prime importance. Also of much importance to them, is investment of foreign capital into Russian enterprises and long-term credits from international banks for reconstruction and development. This corresponds to the data of a poll of managers of the economy. The respondents were 422 officials of state management bodies and directors of large enterprises of twelve territories and regions of Siberia. According to the

49 poll conducted in 1993, 54 percent of them believe that the development of production and economic reform will be difficult without the financial, technical, and technologic aid from abroad. Thirty percent of respondents believe that foreign credits are needed in order to overcome the crisis. Managers and entrepreneurs count on the assistance of local government bodies rather than federal structures of state management in establishing cooperation with foreign firms. It should be noted that 62 percent of the respondents in the poll aimed at the expansion and deepening of versatile cooperation with foreign capital, and only 22 percent were against foreign capital in Russia’s economy. It is not enough to note that managers of the economy favor the presence of foreign capital. There is a circumstance that creates difficulties in establishing economic partnerships. The poll conducted by the sociological service, “Cassandra”, showed that half the number of Russian business people object to the fact that the lobby of foreign interests in top echelons of power in Russia is more effective than the lobby of interests of Russian entrepreneurs. In addition, many business people are anxious about competition from experienced and wealthy Western business people. Thus, the poll of chairmen of regional banks held by the institute of comprehensive Social Studies in December 1992 and December 1993 showed that half of the respondents were seriously concerned about the competition from foreign banks, operating in Russia, if they have the same rights as domestic banks.

IV.

Fill in the blanks with suitable English words and collocations given below: foreign capital

positive influence

to foresee

participation

involvement

dependent

negative attitude

to play

50 1) A certain negative role is being … … … … … … ..by nationalism. 2) Forty-four percent had … … … … … … ..to large-scale aid to Russia from International Monetary Fund. 3) They said that Russia had become … … … … … … . 4) A considerable portion of working people are against any … … … … … … ..of foreign capital. 5) Negative attitudes towards the … … … … … … ..of the foreign capital in the enterprise are quite consistent. 6) Working people could not … … … … … … ..of the changes of their enterprise. 7) There are some people who believe that foreign ownership would have … … … … … … ..on labour. 8) But almost all directors prefer involvement of … … … … … … ..in organizing production. V.

Translate the following sentences into English. Pay attention to rendering the meaning of the Russian modal words “ м ож но” , “ нуж но” , ‘не л ьзя” :

1) Эту п р о б ле му нуж но р е ш и ть не ме дле нно . 2) Это т во п р о с мо ж но р а ссмо тр е ть п о зж е . 3) Не о б х о ди мо х о р о ш о за б о ти ться о п о ж и лых и б о льных лю дях . 4) На это го сп е ци а ли ста мо ж но п о ло ж и ться. 5) Это стр а нно е явле ни е не льзя се йча с о б ъясни ть. 6) В о змо ж но на д е го п р е дло ж е ни е м б удут сме яться. 7) Это ва ж но е со б ыти е нуж но п р о ко мме нти р о ва ть. 8) Это тп ла н не во змо ж но о сущ е стви ть. VI.

Choose the proper modal verb:

1) (Can, may) I be excused? 2) (Could, might) we speak with you? 3) He said I (could, might) go home. 4) I (shall, will) keep my promise. 5) We (shall, will) probably be late. 6) You (shall, will) have a holiday next Tuesday. 7) (Will, shall) you read a passage aloud? 8) (Shall, will) I close the door? 9) There are many mistakes in your work. You (should, would) have checked it more attentively. 10) The boat (was, must) to carry people up the river. 11) We (had, must) to rewrite our letter. 12) They (can, be able) to help us in the future. 13) We (were, must) to begin our work exactly at 5 o’clock.

51 VII. Match the words on the left to their equivalents on the right: attitude

venture

perfectly

relation

relative

concerning

enterprise

to mention

to note

to cancel

to abolish

excellently

VIII. Give background information about: a) the attitudes to foreign ownership of enterprise; b) the attitudes of entrepreneurs and managers; c) give examples of changes in opinion regarding foreign capital. IX.

Do you personally think it is acceptable to attract foreign investments to Russian Economy? Give your reasons in writing.

UNIT 11 Pre-reading tasks I.

Check up the meaning and transcribe the words and collocations in the dictionary:

1) trap; 2) snare; 3) conquest; 4) to lay claim; 5) social desperation; 6) local ethnic elites; 7) to compel “mother country”; 8) indigenous people; 9) to add to tension; 10) population density is very high; 11) urban dwellers; 12) traditional rural civilization; 13) economic reckoning; 14) sluggish civil war in the Caucasus; 15) to sever. II.

Which of the following statements do you agree with (or disagree with).

1) Russia acquired potentially threatening imperial character in the 19 th century; 2) Russian policy in the Caucasus leads to disintegration of the whole country; 3) Russia balances on the verge of ethno-political stability;

52 III. Read through the text. The Imperial Trap Russia acquired a potentially threatening imperial character in the 19th century. After the conquest of the Caucasus (1864) and Central Asia (late 1880s) Russia contained many non-Russians. This eventually led to the disintegration of the USSR. Does not the same destiny await a multinational Russia? The USSR’s history sounds a warning

The first snare war the annexation of new territories and new populations with different traditions. At the end of the 19th century (1897 census), Russia (without Poland and Finland) was composed of 72% ethnic Russians. The country balanced on the verge of ethno-political stability. Russia gradually ceased to be a state as a result of its colonial policy. It has been observed that, when the main ethnic group numbers 70 to 95 per cent of the total population, minorities are gradually integrated into a single nation (preserving its ethno-cultural distinction). By the end of the 20th century (1989 census), the numerical strength of the Slav peoples had doubled. During that same time, the numerical strength of the peoples of the Northern Caucasus, Transcaucasia, Central Asia and Kazakhstan grew fourfold and amounted to 20% of the total population of the USSR (as opposed to 10% at the end of the 19 th century). During the Soviet period these peoples also ostensibly acquired their own institutions of national statehood. The second snare. The modernization of a backward multinational country requires “national personnel at the nation’s outskirts”. Stalin’s nationalities policy was formulated at the 4 th Conference of the Communist Party held in June 1923. Stalin needed not only specialists in national provinces but also “national personnel”who would be politically devoted to him. This personnel laid its claim to sovereignty in the post-totalitarian epoch.

53 The third snare was a classic demographic trap of the “third world” in imperial conditions. The high colonial population growth compels the “mother country” to spend increasingly more funds on social needs, public health and public education (and on consumption in general). These funds swallow the results of economic successes and impede economic development. However, the alternative is impoverishment, hunger, mass refugees and civil war. Of course, the Soviet empire strove to prevent negative social reactions at the “national outskirts”, that is why overpopulated regions received free economic assistance from the Center. But this is where the fourth snare lies. Social assistance from the imperial Center does not, as a rule, reach those for whom it is intended. Subsidies and benefits enrich the local ethnic elites (the “national personnel at the nation’s outskirts”). They send their lobbyists to the Center. The next stage is the fusion of the corrupted Center and the local ethnic elites, who promote their emissaries as officials to the central administrative apparat. Meanwhile, social desperation grows at the other social pole. Finally, the fifth snare consists in the fact that everybody is dissatisfied – the titular nation (“we are being ruled, and national minorities are enriched at our expense”) – and the regional nations (“we eke out a beggarly existence under the power of the majority who bribe our leaders”). This is not even a snare, but a whole trap that has been sprung. The only way of getting out of it is by breaking the trap, i.e., through the dismantling of the empire. Will Russia learn from others’ experience?

It is absolutely clear today that, following the disintegration of the USSR, the multi-ethnic Russian Federation faces similar problems, first of all, in the Northern Caucasus, understood as an economic region within the Stavropol Territory, the Rostov Region and national republics.

54 In 1897, 1.3 million people lived in the Russian empire who belonged to nations of the Northern Caucasus. Today they number 4.1 million. According to the 1989 census, the increase in the Russian ethnic group amounted to 5.6% compared to 1979, while the increase of the North Caucasian ethnic group ranged from 13% (Circassians) to 30% and more (Aguls and Rutuls). According to the data of the Russian Federation’s State Committee for Statistics, a natural increase was maintained at the beginning of this year in all North Caucasian republics except Adyghe. There are several other such territories in Russia (Tuva and the Tyumen Region, for example). Twenty-five percent of citizens in the region are non-Russians, which in higher than the average figure for Russia and figures of the other major regions. The area of national republics in the North Caucasian region is 33%. Population density is high here (47 people/km2); the average Russian figure is 8.6 people/km2. The population density of the region as a whole is second only to the Central region, while population density in Chechnya and North Ossetia (66 and 79 people/km2 respectively) is second only to the Moscow and Leningrad regions. The share of the rural population in the region as a whole is a decreasing, though it remains the highest in Russia (42.7%, the average figure for Russia being 26.4%). Rural population did grow, however, in Chechnya to 58.5% in 1989. This poses a special threat since world experience indicates that rural overpopulation often serves as a prelude to civil war. Moreover, the Stavropol and Krasnodar territories have been taking in refugees from the republics of the Northern Caucasus and Transcaucasia, which only adds to the tension. Experts forecast that the largest masses of unemployed will be concentrated precisely in the Caucasus in the near future. Though the indigenous peoples of these regions have a comparatively low migration rate, this cannot last forever.

55 “ There is reason to believe that the conflicts in the Northern Caucasus consist essentially in the struggle of ethnic groups for land, which has been aggravated by the consequences of Stalin’s deportations” . There is also a tendency toward reclaiming neighboring territories through migration, which naturally meets with the resistance of both Russians and of immediate neighbors. Herein lies the cardinal difference between the problem of Tatarstan and that of the North Caucasian republics, although both have come out in recent years as leaders of the sovereignty movement. In the former case, the problem is political and economic, while in the latter it is ethno-demographic (with corresponding political trimmings). Tatarstan is a relatively quiet region in ethno-demographic terms. The growth of the republic’s population is decreasing (110% in 1979-1970, 106% in 1989-1979). The share of the rural population has been decreasing drastically, by more than 50% since 1959. The numerical growth of the Tatar ethnic group amount to 10.3% in 1989 compared to 1979, which is only slightly above the average Russian figure (7%), but considerably lower than the figures of the North Caucasian peoples. Moreover, most Tatars (more than 70%) live outside Tatarstan, while in the republic itself the titular ethnic group does not exceed 50% of the population. All this removes the problem of ethnic mobilization. Population density is very high in Tatarstan (53.5 peole/km2). The number of urban dwellers is also very high (73%, which practically coincides with the average Russian figure, 73.6%). Putting it plainly, we have in Tatarstan industrial (“Urban”) civilization and in the Northern Caucasus mostly traditional (“rural”) civilization or, at the very least, a civilization which is moving painfully from the village to the town. Thus, all demands of Tatarstan, even the most harsh ones, are supported by political will and economic reckoning. This makes it possible to negotiate issues as long as may be necessary in the hope of solving all problems (which in fact

56 does take place in Russian-Tatarstan relations). Conversely, the ethnodemographic pressure in the Northern Caucasus does not always allow the formulation of rational basis for setting conflicts. This does not mean, of course, that such conflicts are unsolvable in principle and that all Russia can do is observe the sluggish civil war in the Caucasus. Nor does it forecast immediate disintegration, or mean that Russia should sharply sever itself from the Caucasus in the some manner that Central Asia was severed in 1991. But new approaches are required, ones based not only on political and economic considerations but also on ethno-demographic reality. In this sense, the recognition of special state status and maximum economic independence of the North Caucasian republics is preferable to attempts to hold them under Russia’s direct control. Otherwise Russia will once again get caught up in the imperial trap in which it was already been ensnared as the Russian empire and the USSR.

IV.

Answer the following questions:

1) When did Russia acquire a threatening imperial character? 2) What led eventually to the disintegration of the USSR? 3) The first snare was connected with annexation of new territories, wasn’t it? 4) When did the numerical strength of Slav people double? 5) Did the population of the Northern Caucasus, Transcaucasia, Central Asia and Kazakhstan grow fourfold by the end of the 20th century? 6) Stalin needed politically devoted to him “national personnel”, didn’t he? 7) What did colonial population compel the “mother country”? 8) Does the multinational Russia Federation face similar problems of Disintegration? 9) How large is the increase of population in the Northern Caucasus? 10) Who was enriched by the subsidies and benefits from the Center? 11) Is the growth of population in Tatarstan lower or higher than in Chechnya? V.

Do you think Russia learned from her last experience?

VI.

Write down the key words from the text.

57 VII. Reproduce the situation from the text using the following words and collocations: threatening imperial character; the conquest of the Caucasus (1864) and Central Asia (1880); population with different traditions; colonial policy to integrate into a single nation; to acquire institutions of national statehood; national personnel at the nation’s outskirts; the population numbers more than four million people in the Caucasus of Russia; there is an overpopulation in the rural regions; Krasnodar and Stavropol regions have been taken in refugees; It does not mean unsolvable conflicts in principle; all that Russia can do is to observe the sluggish civil war in the Caucasus; maximum economic independence. VIII. Translate into English using conditionals: 1) Е сли до х о дыр а стут, сп р о с на мно ги е то ва р ыи услуги б уде тто ж е р а сти . 2) Е сли б ы це на на ма сло уп а ла , сп р о с на ма р га р и н то ж е б ы уп а л. 3) Е сли б ы я б ыла в М о скве , я б ы п о слуш а ла е го ле кци ю . 4) Е сли б ы о н ука за л на о ш и б ки , мы б ы на ш ли п ути р е ш е ни я п р о б ле мы. 5) Е сли б ы ме не дж е р сде ла л б о ле е тщ а те льно е и ссле до ва ни е , о н б ы о б на р уж и л на р уш е ни е в р ыно чных о тно ш е ни ях . 6) Е сли б ыя зна л, что о н б уде тчи та тьле кци ю в уни ве р си те те , я б ыо б яза те льно п р и ш е л. IX.

Rewrite in direct speech:

1) He says that the next year will be a difficult year. 2) He promised that the machine would be installed the following Wednesday. 3) He said that they had reached the agreement. 4) He told them to be prepared for redundancies. 5) He said that our prices were too high. 6) He said that he had signed the contract. 7) He said that business would be improved. 8) She asked when the new performance would start. 9) She asked if anyone wanted to take retirement. X.

Work in pairs. Ask your partner what is wrong in the Northern Caucasus. Discuss five snares, which sharpen the situation in the Caucasus.

XI.

Give short definition of:

58 1) annexation of new territories; 2) sovereignty movement; 3) sluggish civil war; 4) economic reckoning; 5) to settle conflicts. XII. Speak about the situation in the ethnic provinces in Russia. What should the Russian policy be there?

Со ста ви те ли :

Ко то ва Ка р и на Пе тр о вна к.ф.н., до ц. М и ш и н Але кса ндр Бо р и со ви ч

Ре це нзе нт

д.ф.н., п р о ф. Ба б уш ки н Ана то ли й Па вло ви ч

Ре да кто р

Буни на Т а ма р а Д ми тр и е вна