Английский язык: Учебно-методическое пособие по специальностям 080105 (060400) - ''Финансы и кредит'', 080106 (060500) - ''Бухгалтерский учет, анализ и аудит''

Ф е де рал ь ное аге нт с т во В ороне ж с кий гос ударс т ве нны й униве рс ит е т

У че бно-ме т одиче с кое пос обие по англ ийс ком у язы ку

п о с п е циал ь нос т ям 080105 (060400) – финанс ы и кре дит 080106 (060500) – бухгал т е рс кий уче т , анал изи аудит

В ороне ж 2005

2 У т ве рж де но научно-ме т одиче с ким с ове т ом № 2005г.

факул ь т е т а РГ Ф

от

Сос т авит е л и: Любинс каяН.А., СпиридоноваН.Б.

П ос обие подгот овл е но на кафе дре англ ийс кого язы ка факул ь т е т а РГ Ф В ороне ж с кого гос ударс т ве нного униве рс ит е т а. Ре коме ндуе т с ядл яс т уде нт ов 1 курс азаочного от де л е нияэкономиче с кого факул ь т е т а.

Нас т ояще е ме т одиче с кое п ос обие пре дназначе но дл яс т уде нт ов 1 курс азаочного от де л е ния экономиче с кого факул ь т е т а, с пе циал ь нос т и – 080105 (060400) – финанс ы и кре дит , 080106 (060500) – бухгал т е рс кий уче т , анал из и аудит Це л ь пос обия– обуче ние разл ичны видам чт е нияи ос новам ре фе рирования, ат акж е вовл е че ние с т уде нт ов в п рофе с с ионал ь но-орие нт ированное обще ние наинос т ранном язы ке и информационны й поис к, знание кот орого не обходимо л юбому работ нику. Ст рукт ураданного п ос обияпре дус мат ривае т две час т и. П е рваячас т ь с ос т оит из п яти разде л ов, объе дине нны х по т е мат иче с ком у принцип у и по общнос т и вкл юче нного в них л е кс иче с кого мат е риал а. О ни с т роятс яп о одной, обще й с хе ме , хот яи от л ичают с яразнообразие м конкре т ного нап ол не ния. К аж ды й изпяти разде л ов вкл ючае т т е кс т и с е рию упраж не ний к не му, а заве рш ае т с ят е м ил и ины м упраж не ние м, направл е нны м на конт рол ь с т е пе ни с формированнос т и уме ний и навы ков в от де л ь ны х видах ре че вой де яте л ь нос т и. К аж ды й т е кс т п ре дваряет с п ис ок пробл е мны х вопрос ов, подгот авл ивающих с т уде нт ов к обс уж де нию т е мы разде л а. Акт ивнаял е кс икаразде л азакре пл яет с яв ходе вы пол не нияпос л е т е кс т овы х л е кс иче с ких упраж не ний. У праж не нияв конце каж дого разде л арас с чит аны наразвит ие навы ков ус т ной ре чи. Накаж ды й разде л пе рвой час т и ре коме ндуе т с яот водит ь 4 час а, хот яв завис имос т и от уровняподгот овл е ннос т и с т уде нт ов программамож е т ме нять с я. В т ораячас т ь данного п ос обияс ос т оит изконт рол ь ны х заданий, кот оры е с т уде нт ы вы п ол няют с амос т ояте л ь но. К онт рол ь ны е заданияс т роятс яп о анал огии с разде л ами пе рвой час т и.

3 CONTENT

Chapter 1 Unit 1 Unit 2 Unit 3 Unit 4 Unit 5

Russia ready to pay off Paris Club debt by 2008 Mayor bans hotel office rentals Japan to offer cheap mortgages in Far East Russian oil giant disclosed its plan Foreigners banned from developing Russia’s rich natural

4 6 9 12 15

Chapter 2 Test 1 Test 2

18 23

Literature

27

4 UNIT 1 RUSSIA READY TO PAY OFF PARIS CLUB DEBT BY 2008 Lead-in I. 1. What do you know about Russian’s foreign debts? 2. Do you believe that the pre-term debt repayment will be better for Russia? Reading II. Read the text and decide whether the following statements are true or false. 1. Russia and members of the Paris Club of creditors are going to sign an agreement on the early repayment of Russia’s debt. 2. Russia will be paying 11 billion annually. 3. In 2005 the Russian government may use money from the Stabilization fund to pay off the country’s all foreign debt. 4. A preschedule pay-off of the debt will save Russia money annually. 5. Putin said that the pre-term debt repayment will increase expenditure linked to servicing of debts. TEXT Russia and 18 members of the Paris Club of creditors are ready to sign an agreement on the early repayment of Russia’s debt worth 30 billion. According to the Vedomosti business daily, it may be signed before Dec. 20, 2004. The newspaper reported that this agreement presupposes that Russia will be paying 10 billion ($13,4 billion) annually, thus fully repaying its debt by 2008. Economists say that the pre-term debt repayment will considerably improve Russia’s macroeconomic figures. This was confirmed by two Russian government officials as well as by a source in the Paris Club organization. The source said that the latest consultations on the issue took place in Paris on Dec. 14. Earlier MosNews reported on an announcement made by Russia’s Finance Minister Alexei Kudrin who said that in 2005 the Russian government may use $7-10 billion from the Stabilization Fund to pay off part of the country’s foreign debt. A preschedule pay-off of the core part of the debt will save Russia $700-900 million annually on interest payments. As for the possible writing off a Russian debts, Ministry of Finance experts say that Russia should not expect more that a 100 percent discount.

5 Russia’s President Vladimir Putin spoke about the intention of repaying the debts to the International Monetary Fund and the Paris Club ahead of schedule on Nov. 18. Putin said that this decision is dictated “ by the government’s aspiration to decrease expenditures linked to servicing of debts, that is, to lower the interest payments”. Language development III. Fill in the correct word from the list below, then make sentences using the completed phrases. to sign take

debt pay

1._________officials 2._________repayment 3._________an agreement

macroeconomic core 4. _________off 5. _________figures 6. _________part

government to decrease 7. _______expenditures 8._________place

IV. Fill in the gaps with the correct prepositions. an agreement_____, according______, _____ 2008, consultations ____, _____ Paris, ____ December 14, report _____, pay ______, Ministry ____ Finance, speak ______, repay smth ______ smb, ahead _____ smth, linked _____ smth V. Make the new words with the base words, using the suffixes and prefixes. credit sign agree pay consider prove govern consult

announce possible count nation head decide expend

VI. Define Tense and Voice in the following sentences: 1. 2. 3. 4. 5. 6. 7.

Creditors signed an agreement on the repayment. Russia will pay 100 billion. Pre-term debt repayment will improve Russia’s macroeconomic figures. The agreement was confirmed by Russian government officials. The Russian government may use $7-10 billion from the Stabilization Fund. A preschedule pay-off will save Russia $700-900 million annually. Russia should not expect more than a 10 percent discount.

6 Follow-up VII. Answer the following questions. Then using your answers, give your summary of the text. 1. 2. 3. 4. 5. 6. 7.

What are Russia and creditors ready to sign? When may it be signed? How much will Russia be paying annually? What do economists say about the pre-term debt payment? What may Russian government use in 2005? How much will a preschedule pay-off of the core part save? What is this decision dictated by?

UNIT II MAYOR BANS HOTEL OFFICE RENTALS Lead-in I. 1. Do you know what purpose 30 percent of Moscow’s hotel space is used for? 2. Is using hotel space for its design purpose more profitable than renting it out to commercial tenants? Why? Reading II. Read the text, divide it into logical parts and choose the most suitable heading from the list A-E. A B C D E

Too many percent of Moscow’s hotel space is not used for its purpose. Hotel managers are worried about the future. It is not profitable to rent hotel space out to commercial tenants. There is an exception. You can’t lease out hotel’s rooms for office use any more. TEXT

In an effort to address the problem of Moscow’s dearth of hotel accommodation, Mayor Yury Luzhkov has signed a decree prohibiting the capital’s hotels from leasing out rooms for office or retail use.

7 The city has 36,000 hotel rooms, but a large number of hotel renovations means that 2,700 rooms have been subtracted from that total, according to the Hotel Consulting and Development Group. Accommodation is difficult to find even in four- and five-star hotels. About 30 percent of Moscow’s hotel space is not used for its “ core” purpose, said Marina Smirnova, deputy director of the Hotel Consulting and Development Group. Out of the capital’s 162 hotels, 56 were under municipal and six under federal government ownership at the end of 2003, according to Moskomstat figures. For municipal hotels, the decree comes into effect on Feb. 1. Those hotels that are only part-owned by the city have until the summer of 2005 to come into line with the decree, and all other hotels should do so in the first quarter of 2005. An exception will only be made for hotel rooms that have been granted an official permit to be redesigned as office space. Hotels that have a large number of lettings to businesses include the 3,000room Rossiya Hotel near the Kremlin, the Kosmos Hotel, the Izmailovsky complex and hotels with multiple buildings near the All-Russia Exhibition Center. Hotels on the city’s periphery also have significant lettings. However, hotel managers and tenants appear unconcerned about the future of their business Arrangements. Gennady Lamshin, managing director of Russia’s hotel association, said at the end of the 90s, the city government granted many hotels the status of Hotel-andoffice complexes. The manager of the Rossiya Hotel confirmed that the majority of its 350 rooms that are leased out as offices had been redesigned as office space with City Hall’s blessing. Kosmos’ first three floors were transformed into an office complex, said Marina Levchenko, general director of the Tari Tur travel agency, which rents space there. She therefore hopes that her company and other tenants will not be affected by the mayor’s decree. With demand for room space often outstripping supply – the average vacancy rate in Moscow hotels in 2004 was around 30 percent – using hotel space for its design purpose is more profitable than renting it out to commercial tenants. “ Tour agencies are forced to turn away tourists simply because there is no accommodation for them,” said Irina Tyurina, spokeswoman for the Russian Tourism Union. Renting hotel rooms is currently not very attractive for small businesses given the current lack of competition on the hospitality industry market, according to Vladislav Kochetkov, spokesperson for Magazin Gotovogo Biznesa, which brokers deals between buyers and sellers of existing businesses. According to the Hotel Consulting and Development Group, hotel rental rates are not very affordable, ranging from $400 to $700 per square meter per year.

8 III. Match the words in (A) with the words in (B) (A) 1. hotel 2. office 3. five-star 4. federal 5. “ core” 6. official 7. large 8. multiple 9. Significant 10. business 11. managing 12. hotel and office 13. travel 14. mayor’s 15. average

(B) a. hotels b. government c. accommodation d. number e. use f. lettings g. purpose h. permit i. buildings j. agency k. arrangements l. vacancy rate m. decree n. director o. complexes

IV. Fill in the gaps with the correct prepositions. prohibit smth ________ smth, _________the end, come ________ effect, be unconcerned ________ smth, transform smth ________ smth, be affected _______ smth, accommodation_______ smth, spokesman _______ smth, lack _________ smth, range _______ smth_______smth. V. Passive. Expand the following passive constructions into complete sentences: To have been subtracted, to be used, to be made, to have been granted, to be redesigned, to be leased out, to have been redesigned, to be transformed, to be affected, to be forced. Follow-up VI. Retell the text using the plan below. 1. What has mayor Jury Luzhkov signed to address the problem of Moscow’s dearth of hotel accommodation? 2. How many hotel rooms does the city have? 3. How many percent of Moscow’s hotel space is not used for its “ core” purpose? 4. How many hotels were under municipal and federal government ownership at the end of 2003? 5. Who will an exception be made for? 6. Why do hotel managers and tenants appear unconcerned about the future of their business arrangements?

9 7. Why is not renting hotel rooms very attractive for small businesses?

UNIT 3 JAPAN TO OFFER CHEAP MORTGAGES IN FAR EAST Lead-in I. Read the sentences and guess whether they are true or false. 1. The bank’s current variable interest rate for mortgages is 7 percent in currency terms in Russia’s Far East. 2. It is planned to raise interest rate in Russia’s Far East. Reading II. Read the text, divide it into logical parts and give suitable headings to them. TEXT Japan’s Michinoku Bank signed a cooperation agreement with the Khabarovsk region in Russia’s Far East to offer the local population cheaper mortgages. While credit institutions, like Dalkombank, already offer housing mortgages in the region, few consumers can afford them because interest rates do not fall below 15 percent, said a representative of the regional government who did not wish to be named. “ In this pilot program, the government will act as the guarantor for the mortgages, lowering the risk for the bank and freeing people from providing other property as collateral,” he said. Michinoku already offers low-rate mortgages in Khabarovsk, the region’s capital, Yuzhny Sakhalinsk and Moscow, where the bank’s local offices are located. The bank’s current variable interest rate for mortgages is 7 percent in currency terms, but Michinoku plans to lower the rate further through its partnership with the Khabarovsk administration. As a result, the administration projects that more of the region’s 1,4 million population will be able to have a shot at purchasing newly constructed housing. Akexander Levintal, deputy head of Khabarovsk region’s administration and the signatory of the cooperation agreement with Michinoku Bank’s president Kazuo Harada, said the agreement merely provides a framework. The exact mortgage eligibility terms and other project specifies are still being ironed out and will be detailed in future agreement. Currently, the program aims to

10 provide mortgages for housing priced at approximately 20,000 rubles (about $715) per square meter. Another document will be issued in the near future containing more specific provisions and “ detailing the direction of cooperation between the region’s government and Michinoku bank,” Levintal told reporters. Because of the region’s industry and geography, even in the mid-90s the real estate markets of Khabarovsk and Vladivostok – the largest cities in the Far East – have seen faster growth and higher-than-average prices compared with other regions of the country, said Gennady Sternik, head of analysis at Moscow-based Miel Realty. The average rate for apartments currently being bought with mortgages in the Far East is 17,548 rubles (about $627) per square meter, according to the Mortgage Housing Credit Agency’s December 2004 figures. The average countrywide rate is 16,341 rubles (about $584) per square meter. “ The Far East, of course, is very far from Moscow, which is a minus,” Sternik said. “ However, it is close to economically powerful neighbors like China, which is definitely a plus.” China, the region’s fifth-largest investor. contributed 9.5 percent of all foreign investment in the Khabarovsk region from 1989 to 2003. Japan contributed 14 percent, coming in third behind Austria (15.8 percent) and the United States (25.3 percent). Russia has invited Japan and China to participate in further oil-field exploration and development in Eastern Siberia and is seeking low-cost loans from Japan to build a $15.5 billion oil pipeline to Nakhodka on Khabarovsk’s Pacific coast. Language development III. Fill in the correct word from the list below, then make sentences using the completed phrases. credit lower economically 1. _____________ government 2. _____________ investment 3. _____________ mortgages 4. _____________ markets 5. _____________ institutions

low-rate a shot foreign

interest estate

redional average

6. _____________ rates 7. _____________ the risks 8. _____________ at purchasing 9. _____________ rate 10. ____________ powerful

IV. Fill in the gaps with the correct prepositions. a guarantor ___________ smth, risk __________ smth, free smb __________ smth, to be ironed _________, an average rate _________ smth, _______ square meter, contribute smth __________ smth, __________ coast.

11 V. Scan the text to find the context for the given words and define their class. agreement offer local housing representative guarantor providing

variable signatory merely project powerful neighbors definitely

VI. Rewrite the following sentences in Past Simple and Future Simple: 1. While credit institutions already offer housing mortgages in the region, few consumers can afford them because interest rates do not fall below 15 percent. 2. Michinoku already offers low-rate mortgages in Khabarovsk. 3. Michinoku plans to lower the rate further through its partnership with the Khabarovsk administration. 4. The program aims to provide mortgages for housing prices at about $715 per square meter. 5. The Far East is close to economically powerful neighbors. Follow-up VII. Answer the following questions. Then using your answers, give your summary of the text. 1. 2. 3. 4. 5.

What did Japan’s Michinoku Bank sign? What are interest rates in Russia’s Far East? What does Michinoku plan? What does administration project? What is happening with the exact mortgage eligibility terms and other project specifics? 6. Why have the largest cities in the Far East seen faster growth and higher-thanaverage prices compared with other regions of the country? 7. What is the average rate for apartments in the Far East? 8. What is Russia planning to do with its economically powerful neighbors China and Japan?

12 UNIT 4 RUSSIAN OIL GIANT DISCLOSES ITS PLAN Lead-in I. 1. What do you know about Russian oil company TNK-BP? 2. What do you think about the future of this company? Reading II. Read the text, for questions 1-4, choose the best answer A, B, C or D. TEXT TNK-BP plans to combine units in two stages MOSCOW-Russian oil company TNK-BP showed stockholders its longawaited plan to begin melding its more than 15 subsidiaries and 600 legal entities into one company. The plan set TNK-BP’s value at no less than $18.5 billion. Shareholders in TNK-BP, the Russian joint venture with British energy giant BP, have been anxiously awaiting details of the restructuring. They will have a choice of swapping their shares for new stock in the umbrella company, or being bought out. “ We’re offering shareholders a fair deal, something they don’t get very often in Russia,” said TNK-BP Chief Financial Officer Kent Potter. Plenty to combine TNK-BP’s structure – a collection of 17 subsidiaries and about 600 legal entities like trading companies – was a legacy of Russia’s 1900s privatizations. The company’s founders were Russian billionaires Mikhail Fridman and Viktor Vekselberg, and the Russian émigré Len Blavatnik. They bought up oil operations to create the country’s third-largest producer after Lukoil and Yukos. In 2003, BP bought half of TNK in a deal blessed by British Prime Minister Tony Blair and Russian President Vladimir Putin. And amid increasing Kremlin scrutiny of the energy sector and massive tax claims against Russia’s troubled oil company Yukos, TNK-BP has also legally incorporated in Russia, in the region of Tyumen, near the Kazakh border. A previous sore point TNK-BP was registered in Cyprus and the British Virgin Islands, a sore point for Russia’s government, which wants more transparency in collecting taxes from oil and gas companies. TNK-BP expects production to grow 7 percent this year, Robert Dudley, its chief executive, said at the news conference.

13 TNK-BP’s output grew 15.6 percent in 2004 to 1,4 million barrels a day, making it one of the fastest-growing energy companies in Russia last year. TNK-BP has also helped BP’s fortunes, pumping roughly a third of the British firm’s oil. One of Moscow’s two major stock exchanges, the RTS, delisted Yokos, and the Prosecutor-General’s Office said a new criminal investigation had been opened against the oil company’s jailed former CEO, Mikhail Khodorkovsky. The reorganization will be carried out in two stages. In the first, minority shareholders in the company’s top three subsidiaries, TNK, Sidanco and Onaco, can swap for stock in the new TNK-BP Holding or be bought out. TNK-BP controls 90 percent of the shares in the three units. 1. Russian oil company TNK-BP is going to meld its subsidiaries and a lot of legal entities into A two subsidiaries. B two companies. C one company. D five entities. 2. TNK-BP Chief Financial Officer said that they were offering shareholders a fair deal, something A they want to get in Russia. B they never get in Russia. C they always get in Russia. D they rare get in Russia. 3. The company’s founders bought up oil operations A to create USA’s third-largest producer after Lukoil and Yukos. B to create the first-largest producer. C to destroy Lukoil and Yukos. D to start another business. 4. Russia’s government wants A to collect taxes from oil and gas companies. B to collect taxes from everybody. C to make clear collecting taxes from oil and gas companies. D to give up collecting taxes from oil and gas companies.

Language development III. Look at the words in bold in exercise 2 and try to explain them, then choose any three and make sentences.

14 IV. Fill in the correct word from the list below, then make sentences using the completed phrases. oil a fair chief

long-awaited legally stock

1. ______________ plan 2. ______________ point 3. ______________ taxes 4. ______________ deal 5. ______________ incorporate

joint a sore

swap collect

6. ______________ executive 7. ______________ company 8. ______________ venture 9. ______________ exchanges 10.______________ shares

V. Fill in the gaps with the correct prepositions a choice ______ smth, swap smth ______ smth, buy ______, register ______ smth, collect smth ______ smth, ______ the conference, open investigation ______ smth, carry ______. VI. Make the new words with the base words, using the suffixes and prefixes. hold value structure collect legal operate

produce region transparant change investigate

VII. Put the verbs in brackets in Present Simple and Past Simple. 1. Russian oil company ____________ (show) stockholders its plan. 2. They ____________ (have) a choice of swapping their shares for new stock, or being bought out. 3. TNK-BP’s structure ____________ (be) a legacy of Russia’s privatizations. 4. They ____________ (buy) up oil operations to create the country’s third-largest producer. 5. Russia’s government ____________ (want) more transparency in collecting taxes from oil and gas companies. 6. TNK-BP ____________ (expect) production to grow 7 percent this year. 7. TNK-BP’s output ____________ (grow) 15.6 percent in 2004. 8. A new criminal investigation ____________ (open) against the oil company’s former. 9. TNK-BP ____________ (control) 90 percent of the shares.

15 Follow-up VIII. Summarize the text.

UNIT 5 FOREIGNERS BANNED FROM DEVELOPING RUSSIA’S RICH NATURAL Lead-in !. Read the sentences and guess whether they are true or false. 1. East Siberia and Yakutia make up the most-developed oil and gas basin in Russia. 2. Russia is not the only country that prefers to develop its natural resources on its own. Reading II. Read the text, divide it into logical parts and give suitable headings to them. TEXT It was announced that Russian Ministry of Natural Resources will auction off thirty-eight oil and gas deposits in Eastern Siberia. The deposits mentioned in the list are located in the Irkutsk and Krasnoyarsk regions and in the republics of Yakutia and Evenkia. Among the deposits that will be auctioned off is the Chayandinskoye oil and gas field in Yakutia with recoverable reserves of 1.24 billion cubic meters of natural gas and 50 million tons of oil. Such reserves makes this field one of Russia’s and the world largest. The starting price for the Chayandinskoye field alone, analysts say, will be at least $100 million, with another several billion dollars in required investment. However, investors are expected to seek discounts given the remote location of the site. East Siberia and Yakutia make up the least-developed oil and gas basin in Russia. The Natural Resources Ministry says recoverable reserves in this area amount to 1.7 trillion cubic meters of natural gas and 230 million tons of oil, with the estimated resources of 45.9 billion tons of fuel equivalent. Most of the deposits are largely underdeveloped and would need serious investment efforts from the winners of the license auctions. Though officials have promised a fair competition, experts say that Surgutneftegaz, TNK-BP, and natural gas monopoly Gazprom are the frontrunners in the race for East Siberian fields. All three majors want to bid in the auction. Gazprom press secretary Sergei Kupriyanov says the joint development of the Chayandinskoye field has been negotiated with Rosneft and Surgutneftegaz. When the auctions was

16 announced, the director of the institute of Energy Policy Vladimir Milov said that he does not believe a foreign company can win a license in East Siberia. However, some experts did not rule out that the wealthy China National Petroleum Corporation (CNPC) could join Gazprom in the auction. Last year, CNPN announced it was ready to bid for the Chayandinskoye field and a source close to CNPC has confirmed the Chinese major is still interested in Siberian oil and gas assets and is ready to talk with the Russian Government about possible cooperation. It seems, however, that Vladimir Milov was correct in his guess. Several days later, the Russian Ministry of Natural Resources and the Federal Agency for Subsurface Use announced their decision to ban foreign controlled companies from taking part in tenders to develop major oil and metals resources in 2005. Russia’s Natural Resources Minister Yuri Trutnev, who made the statement, said that the tender list included the Sakhalin-3 oil and gas field, which U.S. Exxonmobil had planned to develop; the Sukhoi Log gold field, Eurasia’s biggest; and the giant Udokan copper deposit as well as many others. The companies that will be allowed to take part in the tenders must have no less than 51 percent of Russian ownership. A source in the Federal Agency for Subsurface Use told the agency that “ the state is interested in the development of strategically important deposits by Russian companies”. The move, which created quite a stir in the Western media, is, in reality, not surprising. The ban underscores the process which has been discussed for quite a long time: namely, President Putin and his associates are trying to recapture state influence in the oil and gas sector. It has been also said that the government is writing new legislation to restrict foreign ownership of mineral deposits, except in special cases. Still, the Kremlin’s move is not the end of the world. After all, it permits participation of companies with 49% foreign ownership. This should present no problems for newly created joint ventures, such as the potential ones between China’s CNPC with Gazprom and Rosneft, as well as India’s ONGC with Rosneft. For others, like the Russian-British TNK-BP 50-50 joint venture, the new ban may require some consideration. The desire to partake in the development of Russia’s natural resource riches, however, is a strong enough argument to somewhat change the ownership structure. Like Valery Nesterov, an analyst with the Troika Dialog investment bank told Dow Jones Newswires, “ Russia isn’t shutting out foreign investors. It will just regulate the influx of investment depending on the country’s needs.” After all, Russia is not the only country that prefers to develop its natural resources on its own. The United States, for example, develops its oil deposits in Texas and the Mexican Gulf without much help from foreign companies, while it conserves its oil deposits in Alaska for future use. No one seems to have a problem with that notion, no one criticizes the US authorities for banning foreign investors. What is so different about Russia, besides from the fact that many countries would like to consider Russia as a natural resource backyard that can be used at leisure? Logically speaking, the Russian government is doing right in giving preference for development to domestic companies. The only problem is that many actions of the Russian government are logical and sound to start with, but somehow good intentions get lost along the way. Selling development licenses to Russian companies is a wonderful idea, but will these Russian companies really invest in the development of

17 deposits, or will they simply hold on to their new assets doing nothing? And won’t the authorities themselves actively use the licensing agreement conditions as a pretext for initiating notorious tax checks several years down the road? With unlucky leap year finally over, there is a hope that both sides will “ get it right” this time. Language development III. Look at the words in bold in exercise 2 and try to explain them, then choose any three and make sentences. IV. Fill in the correct word from the list below, then make sentences using the completed phrases. natural investment strategically domestic

oil and gas a fair joint good

1. ____________ field 2. ____________ cooperation 3. ____________ ventures 4. ____________ efforts 5. ____________ needs 6. ____________ price 7. ____________ resources

starting possible ownership

required take country’s

8. ____________ part 9. ____________ investment 10.____________ structure 11.____________ intentions 12.____________ competition 13.____________ important 14.____________ companies

V. Fill in the gaps with the correct prepositions. auction ____, be located ____, bid ____, be interested ____, ban smth ____ smth, take part _____, development _____ smth, shut ______ smth, ______ one’s own, _____ future use, different ______ smb, besides ______ smth, be right ______ smth, hold ______, pretext ______ smth. VI. Give English equivalents of the following words: зап ас ы не фт и бол ь ш ие капит ал овл ож е ния аукцион ут ве рж де ние зап ре т

с овме с т ное п ре дприятие рас с мат риват ь инос т ранны е инве с т оры правит е л ь с т во т ре боват ь

VII. Make the new words with the base words, using the suffixes and prefixes. develop invest

strategy associable

18 win foreign major

negotiate announce discuss

VIII. Put the verbs in brackets into the correct form. 1. Investors are expected __________ (seek) discounts. 2. Most of the deposits would __________ (need) serious investment efforts. 3. The director of the Institute said that he does not believe a foreign company can __________ (win) a license. 4. He is ready __________ (talk) with the Russian government. 5. The Federal Agency announced their decision __________ (ban) companies from __________ (take) part in tenders. 6. It was planned __________ (develop). 7. I will __________ (regulate) the influx of investment. 8. No one criticizes the US authorities for __________ (ban) foreign investors. Follow-up IX. Read the text again and make notes under these headings. Then use your notes to talk about: • • • • •

38 oil and gas deposits will be auctioned off in Eastern Siberia serious investment efforts are needed the state is interested in the development of deposits by Russian companies foreign ownership of mineral deposits is restricted Russia is not the only country that develops its natural resources

X. Summarize the text.

TESTS TESTS I REDUCING POVERTY. SUSTAINING GROWTH A global learning Conference in Shanghai, May 25– 27, 2004 Lead-in I. We all know that certain countries achieved significant success in their struggle against poverty. How could they overcome their backwardness and turn into equal members of the international community?

19 II. Read the text and choose the most suitable heading from the list (A-D) for each part (I-IV). TEXT I. All over the world, in many different ways, countries have rolled back poverty and built the conditions for sustained, equitable growth. How can we find out about the implementation factors that triggered success and foster those approaches on a global scale to shrink poverty in the many parts of the world where it remains widespread? The purpose of this conference is to find out. Aid alone is not the answer. In spite of improvements in aid allocation and its effective use, many developing countries have failed to reduce poverty, often because of gaps in knowledge and capacity that keep them from adapting to their own circumstances the successful practices discovered and applied elsewhere. In a series of United Nations conferences during the 1990s the international community established a set of common goals, the Millennium Development Goals, to be achieved between 1900 and 2015. II. Hope and some lessons come from the experiences of Asian developing countries, with half the world’s population, that already have met the millennium goal for poverty reduction in the 25 years ending in 2003. The developing countries of Asia collectively reduced extreme poverty by more than 50 percent from 1978 to 2003. Prime examples are China, Korea, Malaysia, and India. However, income disparities still remain at the national and regional levels, and threaten to jeopardize progress in the long run. Pockets of progress exist in other regions as well: Chile in South America, for example, and Uganda in the 1990s in Africa. In addition, many policy lessons can be extracted from programs, projects, and initiatives all over the world, which have helped improve the living standards of the poor, either by providing a better investment climate conducive to economic growth or by promoting social inclusion and empowerment. What is important about all these experiences is that some shift in institutions, policies, and approaches to development took place that enabled poverty reduction on a scale. Meanwhile, other main regions with large concentrations of poor people – SubSaharan Africa and Central Asia – have made less progress in reducing poverty over the past one or two decades. Despite isolated projects that have improved people’s lives in these regions, prospects for them to meet the MDGs are not very encouraging. Gaps in knowledge, capacity, and policies have limited the number of these successes and kept them isolated, meaning that the good work and experience, which could be making a positive difference in the lives of millions of people, are not being widely shared and implemented. How can countries and communities learn from mistakes and scale up successful approaches? III. The eight Millennium Development Goals, embraced by 189 countries in 2000, are now widely accepted as a framework for measuring development progress.

20 The goals focus the efforts of the world community on achieving significant, measurable improvements in people’s lives. They establish yardsticks for measuring actions, not just of developing countries but of the rich countries whose aid programs and trade policies affect the developing world. The MDGs also guide the World Bank and other multilateral institutions that help countries shape and implement development policies. Goal 1. Eradicate extreme poverty and hunger Goal 2. Achieve universal primary education. Goal 3. Promote gender equality and empower women. Goal 4. Reduce child mortality. Goal 5. Improve maternal health. Goal 6. Combat HIV / AIDS, malaria, and other diseases. Goal 7. Ensure environmental sustainability. Goal 8. Develop a Global Partnership for Development. To meet the MDGs, a new consensus between developing and developed countries must be forged. Developing countries must improve their investment climate, quality of governance, and institutional capacity to provide public services and empower the poor. They also must undertake a sequenced opening up to foreign investment and trade. Countries willing to make necessary reforms should have the resources they need to tackle illiteracy, poverty, and disease. Working with the international financial institutions, developed countries must also lower trade barriers and improve the quantity and effectiveness of development aid. IV. Today the possibilities for creating global networks abound. Never before has the developing world had such ample access to cutting-edge information and knowledge as it now has through the Internet and other communication technologies. Dialogues among experts, formerly so costly, are coming well within the reach of most countries. Sharing experience can yield robust solutions for development. This conference represents an unprecedented opportunity to promote knowledge exchange on how developing countries can implement reforms that will accelerate progress towards the MDGs, and how foreign aid can be energized by a renewed international consensus to facilitate and harmonize the progress. A B C D

These goals are quite realistic. The Millennium Development Goals. The purpose of the Conference. How can countries learn from mistakes and seal up successful approaches?

Vocabulary Practice III. Match the key terms (1-14) with their explanations (A-N) 1. abound 2. facilitate 3. disparity

A increase, promote B turn smth back or further away C a process of putting smth into effect or action

21 D put in danger E a standard used for evaluating qualities of people or things F destroy completely, put an end to smth G help the development, encourage or promote H make smth easy or easier I difference, inequality J start a sudden, often violent action or reaction K disability to read or write L giving smb power or authority to act M exist in great numbers or quantities N keep smth stable, constant, unchanging

4. trigger 5. empowerment 6. foster 7. scale up 8. roll back 9. implementation 10. jeopardize 11. yardstick 12. illiteracy 13. sustain 14. eradicate

IV. Fill in the correct word from the list into: a) adjective – noun collocations sustainability community success policy solution

approach growth standards projects

1. global________________ 2. economic_____________ 3. extreme______________ 4. universal_____________ 5. significant____________ 6. their own_____________ 7. international___________ 8. living________________

poverty trade circumstances practices

education inclusion prospects opportunity

9. encouraging________________ 10. isolated___________________ 11. successful_________________ 12. an unprecedented___________ 13. social_____________________ 14. robust____________________ 15. environmental______________ 16. primary___________________

b) noun– noun collocations implementation communication development

aid knowledge investment

1. ______________mortality 2. ______________factors 3. ______________equality 4. ______________climate 5. ______________barriers 6. ______________policies

poverty trade child

income gender

7. _____________exchange 8. _____________technologies 9. _____________allocation 10. _____________aid 11. _____________reduction 12. _____________disparities

V. Fill in the following table. Put dashes if there are no corresponding words.

22 Verb 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11. 12. 13. 14. 15.

Noun implementation

Adjective

Adverb

sustain establish costly growth successful reduce extreme access formerly develop allocation conducive promote inclusion

VI. Find in the text and give opposites for the following words: 1. failure 2. stagnation 3. health 4. cheap 5. accelerate 6. start, set up, create

7. project 8. discourage 9. deteriorate, make worse 10. increase 11. wealth 12. make smth difficult

Follow-up VII. Answer the following questions. 1. When and where did Global Learning Conference take place? 2. What was its purpose? 3. Which countries have been successful in poverty reduction? Give their brief characteristics? 4. What are the Millennium Development Goals? 5. Which factors are indispensable for reaching these goals? 6. Why did other countries lag behind? 7. Talk about the role of communication technologies on the way of progress.

VIII. Using your answers and the following expressions write a summary of the text.

23 trigger success, foster new approaches, roll back poverty, adapt to one’s circumstances, meet the goals, lessons can be extracted from, encouraging prospects, learn from mistakes, possibilities abound, within the reach, to promote knowledge exchange, to tackle illiteracy TEST II CHILE: SUCCESSES AND FAILURES IN POVERTY ERADICATION Lead-in I. We all know that certain countries achieved significant success in their struggle against poverty. Here is an example. By combination of economic and social policies Chile reduced by nearly one half the extreme income disparities. What were strong and weak aspects of Chilean program? II. Read the text and say whether the following statements are true or false: 1. The social policies of all three Chilean governments during the 90s were aimed at economic growth. 2. Pinochet decision to reduce taxes positively affected social policies. 3. During the last decade of the century poverty in Chile was reduced by 20%. 4. Extreme income disparities were eradicated. 5. Chile’s success in overcoming poverty can be mainly explained by economic growth. TEXT Poverty eradication was at the core of development strategies in Chile during the Aylwin, Frei, and Lagos administrations of the 1990s. The social policies of all three government were formed by a particularly difficult beginning. The Chilean economy went through a deep financial crisis in 1982, similar in severity to Argentina’s crisis of 2001. In 1982 and 1983, Chile’s GDP fell by 16 percent. The collapse of the financial sector cost Chilean taxpayers between 30 and 40 percent of GDP. Unemployment shot up to 30 percent. Around 50 percent of the population fell below the poverty line. Extreme poverty affected 30 percent of the population. Starting in 1985, the focus of economic policies shifted toward financial solvency and economic growth. Exports grew rapidly and unemployment went down. On the poverty front, however, results were less successful. People living below the poverty line still represented 45 percent of the population in 1987. Additionally, a key decision by the Pinochet government to reduce taxes and government expenditures in 1988 had a further negative impact in social policies. The decrease in social expenditures was equivalent to 3 percent of GDP, resulting in severe deterioration in the coverage and quality of public health services, lower wages for teachers, and low pensions for the elderly.

24 It was against this background that the newly elected government of Patricio Aylwin came into office in 1990. The new government immediately put the fight against poverty at the top of the agenda. Chile’s new “ growth with equity” development strategy was based on growth strategy balanced by aggressive social policies; the strategy continued through the decade. Between 1990 and 2000, poverty was reduced from 40 percent of the population to 20 percent. The pro-growth strategy included: • Opening the economy to world trade • Conservative fiscal policy pursuing simultaneously a budget surplus and reduction of public debt • Expanding of the domestic capital market • Reform of labor and tax policies, including a tax increase that allowed the government to expand social expenditures by more than 200 percent through the 1990s The strategy enabled the Chilean economy to grow by 6 percent per year during the decade. The combination of high growth and active redistributive policies reduced by nearly one-half the extreme income disparity between the top 20 percent and the lowest 20 percent of the population. An empirical study comparing social policies in the 1980s and 1990s shows that about 60 percent of Chile’s poverty eradication in the 1990s can be attributed to economic growth and 40 percent to social policies. The “ easy” first phase represents a combination of high growth, increased wages and expansion in income-support schemes for low-income families, and improved minimum pensions with an immediate impact on poverty reduction. The shift from income-support schemes towards social investment aimed at upgrading education, skills, and access to health services produced a much more gradual effect on the incidence of poverty. The initial expansion in funding for public health and education had an impact, as schools and new hospitals were built. Teachers, doctors, and health care workers received better pay, and coverage slowly expanded. The slowdown in the second half of the 1990s had to do with decreasing returns to large expenditures in public health and education. After basic coverage problems were solved. Rigid, highly centralized, bureaucratic institutional arrangements in public hospitals, combined with active resistance from doctors and public health workers, resulted in great inefficiency. Though government expenditures in public health increased by 250 percent, output of healthcare services grew only by 22 percent. A similar outcome was observed in education. Following a tripling of public resources, learning scores initially surged, but did not continue to improve. A significant part of this disappointing result has to do with the poor quality of teaching in the classroom. The National Teachers Unions succeeded in preventing performance evaluations of teachers or school administrators for 12 years. The lessons are that money does not guarantee effectiveness and that more attention should be paid to the political economy of institutional changes required to ensure cost-effective provision of basic health and education services.

25 Vocabulary Practice III. Match the key terms (1– 13) with their explanations (A– M) 1. 2. 3. 4. 5. 6. expenditure 7. severe 8. disparity

A B C D E F G H

a payment, or a subsidy inequality, difference list of problems to be discussed improving, developing smth to a high degree becoming worse acting, functioning an amount of money spent on smth 1) total capital of a firm or a country 2) justice I strong effect or influence on smb or smth J bad, intense, strict, difficult K complete destruction, putting an end to smth L the process of giving smb a guaranteed subsidy or benefit M a payment or a subsidy usually given by the state or social bodies

9. upgrading 10. 11. 12. 13. agenda

IV. Fill in the correct word from the list into a) noun-noun collocations development program

poverty income-support

1. __________strategies 2.___________line 3.___________eradication 4.___________policies 5. ___________policy

government key

budget public

tax

6.___________subsidies 7.___________surplus 8.___________ratio 9.___________savings

b) noun-adjective collocations. economic strong and weak extreme

municipal social negative

1._______________poverty 2._______________aspects 3._______________districts 4._______________evaluations 5._______________approach (2)

local holistic

preliminary traditional

6. _____________expenditure 7.______________growth 8.______________impact 9.______________population

26 V. Fill in the following table. Put dashes if there are no corresponding words. Verb 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Noun

Adjective

Adverb

effect extremely evaluation access conservative unemployment represent financial reduce complain conclusion expand

VI. Give the opposites for the following words: conservative poverty surplus upgrading continue

lack reduce development similar recession

Follow-up VII. Answer the following questions. 1. 2. 3. 4.

Describe the economic situation in Chile in the decade 1990–2000. What were the priorities of the Patricio Aylwin government? What measures helped to reduce poverty by nearly one half? What has been done in education and health services to reduce the incidence of poverty? 5. Why did health services fail to improve in the second half of the 1990s? 6. What has been done to improve health and education services? VIII. Using your answers and the following expressions, write a summary of the text. to go through a crises, collapse of financial sector, unemployment shot up to, at the top of the agenda, to pursue a budget, surplus, to enable economy to grow, to reduce poverty nearly by one half, to have an impact on smth, to result in great inefficiency.

27 И СПО ЛЬ ЗО В АННАЯ ЛИ Т Е РАТ У РА 1. Cotton D. World of Business / Cotton D. – England: Tomson, 2000. - 185p. 2. Virginia Evans. Enterprise: Elementary / Virginia Evans - Jenny Dooley. – England: Express Publishing, 2000. - 136p. 3. Virginia Evans. Enterprise: Pre-Intermediate / Virginia Evans - Jenny Dooley. – England: Express Publishing, 2000. - 137p. 4. Moscow News // № 35, 37 2004; № 2, 5 2005.

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