Английский язык в сфере экономической безопасности. Учебное пособие

lead to changes outside the budget execution, such as budget classification and accounting

standards.

2.18.1 Words you may need:

1)despite (prep) – несмотря на;

2)lack (n) – недостаток;

3)obsolete (adj) – устаревший;

4)public account – счет государственного учреждения;

5)debt and cash management – управление долгом и наличными средствами;

6)to exercise control – осуществлять контроль;

7)receipt (n) – получение, поступление;

8)internal and external debt – внутренний и внешний долг;

9)jointly (with) – совместно (с);

10)spending unit – бюджетная единица;

11)commitment (n) – поручение;

12)verification (n) – проверка, контроль;

13)authorization (n) – разрешение;

14)to issue payment orders – выдавать платежные поручения;

15)updated (adj) – обновленный, скорректированный;

16)to remedy deficiencies – исправлять недостатки;

17)accounting standards – стандарты бухучета.

2.19 Read the article and do the following tasks.

2.19.1Read the article below quickly to find out the main facts about the reform of the financial system in Indonesia.

2.19.2Compare the reform of the financial system in Indonesia with any other country in the world.

Reform of the Financial System: Indonesia

A key element of Indonesia's comprehensive adjustment effort in 1983, following a

sharp decline in oil revenues and a weakening of the economy's finances, was a reform of the financial system. Before the reform, the major instruments for conducting monetary

51

policy available to the central bank, Bank Indonesia (BI), were credit ceilings for individual banks, and interest rate controls for state banks.

Before the financial reform, the expansion of liquidity credits and net foreign assets had led to a rapid growth of reserve money, which left the banking system with a large volume of surplus funds. This excess liquidity together with interest rate controls produced distortions in the pattern of domestic financial intermediation. Moreover, since an increasing proportion of deposits was being placed in nonbank financial intermediaries which were not subject to either interest rate controls or credit ceilings, during this period, the effectiveness of monetary controls was weakened.

The financial reform included replacing the system of restrictions on financial institutions with a more indirect system of monetary control. Interest rate controls were eliminated, a wide range of loan categories were made ineligible for liquidity credits, credit ceilings on individual banks were eliminated, and a new mechanism of monetary control that relied principally on open market operations was introduced.

Since there were no domestic public debt instruments available for open market operations, BI began issuing its own debt instruments which could be readily marketed under the prevailing circumstances of excess liquidity. The sale and repurchase of these instruments allowed the central bank to absorb or inject bank reserves at its own initiative and to influence domestic money market conditions.

The most important success of the reform was the rapid growth of domestic currency deposits after June 1983 and the marked slowdown in the accumulation of foreign currency deposits, reflecting the increased confidence in the domestic banking system and its greater competitiveness. Moreover, the move to open-market operations as the principal instrument of monetary control greatly improved the authorities' technical ability to manage monetary and reserve aggregates. Indonesia was able to successfully put in place an indirect system of monetary and interest rate management despite the lack of a sophisticated money market at the outset of the liberalization process.

2.19.3 Words you may need:

1) credit ceiling – кредитный потолок;

52

2)interest rate – процентная ставка;

3)liquidity credit – ликвидный кредит;

4)net foreign assets – чистые иностранные активы;

5)monetary control – кредитно-денежный контроль;

6)eliminate (v) – уничтожать; упразднять;

7)ineligible (adj) – не имеющий права;

8)open-market operations – операции на открытом рынке;

9)debt instrument – долговое обязательство;

10)excess liquidity – избыточная ликвидность;

11)currency deposits – валютные вклады;

12)marked slowdown – заметное снижение;

13)monetary and reserve aggregates – денежные и резервные агрегаты;

14)at the outset – в начале.

2.19.4 Reread the article more carefully and complete the sentences given below

using information from the article.

1 A key element of Indonesia's adjustment effort in 1983 was______.

2Credit ceilings and interest rate controls were_______.

3Before the financial reform rapid growth of reserve money was caused by______.

4The effectiveness of monetary controls was weakened because of______.

5In the course of the financial reform_______ were eliminated.

6BI began issuing its own debt instruments as_______.

7The Central Bank influenced the domestic money market conditions by_______.

8Domestic currency deposits______ after June 1983.

9Despite the lack of a sophisticated money market _______.

53

3 Unit 3 Economic Security

3.1 Before reading learn the following words and phrases which are essential to the

topic:

1) security (n) – безопасность, обеспечение безопасности; меры безопасности;

защита, охрана;

2)access (n) – доступ;

3)dwelling (n) – местожительство; проживание, жилье;

4)dimension (n) – измерение, величина, объем;

5)essential (adj) – важнейший; необходимый, основной;

6)income (n) – доход, приход, прибыль, заработок;

7)impact (n) – удар, толчок, сотрясение, импульс;

8)opportunity (n) – возможность, удобный случай, стечение обстоятельств,

благоприятная возможность;

9)to pursue (v) – преследовать (кого-л.), гнаться, бежать (за кем-л.);

10)benefit (n) – выгода, польза, прибыль, преимущество;

11)comprehensive (adj) – всесторонний, полный, всеобъемлющий;

12)ample (adj) – достаточный ,богатый, изобильный, обильный;

13)dismissal (n) – увольнение; отставка, сокращение;

14)protection (n) – защита, охрана;

15)hiring – наем;

16)firing – увольнение (по решению работодателя);

17)to adhere (v) – твёрдо держаться, придерживаться чего-л.; оставаться верным (чему-л.);

18)career (n) – карьера, успех;

19)dilution – ослабление, спад;

20)craft (n) – 1) профессиональные способности; сноровка в работе 2)

персонал (предприятия);

21)scourge (n) – беда, бедствие;

22)harassment – беспокойство, агрессия, оскорбление, притеснение;

54

23)insurance (n) – защита, гарантия, страхование;

24)apprenticeships (n) – обучение, срок учения, период обучения.

3.2 Read the text.

Text A. What is Economic Security?

Economic security is composed of basic social security, defined by access to basic needs infrastructure pertaining to health, education, dwelling, information, and social protection, as well as work-related security.

Economic security is a state entity, characterized by the presence of a stable income and other resources that can support the standard of living for today and for the foreseeable future. It includes:

1)Maintaining solvency;

2)planning for the future cash flows of the entity;

3)security of employement.

There are seven components of work-related security. While all seven dimensions are important, two are essential for basic security: income security and voice representation security.

Basic security means limiting the impact of uncertainties and risks people face daily while providing a social environment in which people can belong to a range of communities, have a fair opportunity to pursue a chosen occupation and develop their capacities via what the ILO calls decent work.

Income security denotes adequate actual, perceived and expected income, either earned or in the form of social security and other benefits. It encompasses the level of income (absolute and relative to needs), assurance of receipt, expectation of:

1)current and future income, both during working life and in old age or disability retirement. Classic income security protection mechanisms include a minimum;

2)wage machinery, wage indexation, comprehensive social security, and progressive taxation.

Representation security refers to both individual representation and collective

55

representation. Individual representation is about individual rights enshrined in laws as well as the individuals’ access to institutions. Collective representation means the right of any individual or group to be represented by a body that can bargain on their behalf and which is sufficiently large, sufficiently independent and sufficiently competent to do so. Independent trade unions with the right to collectively bargain over wages, benefits, and working conditions as well as to monitor working practices and strike have been typical forms of granting representation security.

Labour market security arises when there are ample opportunities for adequate income-earning activities. It has a structural component, in that it represents the types and quantity of opportunities. Furthermore, it has a cognitive side, as it also features

expectations that opportunities are or will become adequate. Policies aimed at enhancing this form of security have included full-employment oriented macro-economic policies, the creation of employment agencies, and other placing services.

Employment security is protection against loss of income-earning work. For wage and salary workers, employment security exists in organizations and countries, in which there is strong protection against unfair or arbitrary dismissal and where workers can redress unfair dismissal. For the selfemployed, it means protection against sudden loss of independent work, and/or business failure. Typical forms of enhancing employment security have been protection against arbitrary dismissal, regulations on hiring and firing, and imposition of costs on employers for failing to adhere to rules.

Job security signifies the presence of niches in organizations and across labour markets allowing the workers some control over the content of a job and the opportunity to build a career. Whereas employment security refers to the opportunity of a worker to continue working in an enterprise, job security refers to the worker’s ability to pursue a line of work in conjunction with his or her interests, training and skills. Protection mechanisms have consisted of barriers to skill dilution such as craft boundaries, job qualifications, restrictive practices, craft unions, etc.

Work security denotes working conditions in organizations that are safe and promote workers’ well being. Classic “occupational health and safety” provisions shielding workers from occupational hazards, diseases, and injuries are an integral part.

56

Work security goes beyond this, though, in addressing the modern scourges of stress, overwork, absenteeism, and harassment. Protection devices for work security include provisions and insurance against accidents and illness at work, and limits on working time.

Skill reproduction security denotes workers’ access to basic education as well as vocational training to develop capacities and acquire the qualifications needed for socially and economically valuable occupations. Ways to further skill reproduction security include policies to generate widespread opportunities to gain and retain skills

through education, apprenticeships, and employment training.

П р и м е ч а н и я

1 ILO – International Labour Organization – МОТ, Международная организация труда

(специализированный орган ООН).

2 Absenteeism – абсентеизм (намеренное игнорирование каких-л. мероприятий; уклонение от использования каких-л. прав, в том числе права собственности, права участвовать в выборах органов власти и пр.).

3.3 Study the following words:

1)complain (v) – жаловаться;

2)forms of business organization – формы организации бизнеса;

3)alter (v) – изменять, переделывать;

4)command economy – командная экономика;

5)partnership (n) – товарищество;

6)cooperative society – кооператив;

7)joint-stock company – акционерная компания;

8)general partnership – полное товарищество;

9)liability (n) – ответственность, обязательство;

10)to bear joint and several liability – нести солидарную ответственность;

11)wrongdoing (n) – незаконные действия;

12)limited partnership – коммандитное товарищество (товарищество с ограниченной ответственностью);

13)general partner – главный партнер (с неограниченной ответственностью);

14)limited partner – коммандитный (пассивный) партнер (с ограниченной

57

ответственностью);

15)shareholder (n) – акционер;

16)share (n) – акция;

17)legal entity – экономический субъект;

18)coincide (v) – совпадать;

19)to bring a lawsuit against smb – возбудить судебный процесс против кого-л.;

20)to make a claim – предъявить претензию;

21)assets (n) – активы;

22)to float a company – образовывать акционерную компанию;

23)memorandum of association – учредительский договор;

24)registrar (n) – регистратор;

25)certificate of incorporation – разрешение на создание корпорации;

26)to sue and be sued in the courts – искать и отвечать в суде;

27)confer (v) – присуждать, передавать;

28)complain (v) – жаловаться;

29)forms of business organization – формы организации бизнеса;

30)alter (v) – изменять, переделывать;

31)command economy – командная экономика;

32)partnership (n) – товарищество;

33)cooperative society – кооператив;

34)joint-stock company – акционерная компания;

35)general partnership – полное товарищество;

36)liability (n) – ответственность, обязательство;

37)to bear joint and several liability – нести солидарную ответственность;

38)wrongdoing (n) – незаконные действия;

39)limited partnership – коммандитное товарищество (товарищество с ограниченной ответственностью);

40)general partner – главный партнер (с неограниченной ответственностью);

41)limited partner – коммандитный (пассивный) партнер (с ограниченной ответственностью);

58

42)shareholder (n) – акционер;

43)share (n) – акция;

44)legal entity – экономический субъект;

45)coincide (v) – совпадать;

46)to bring a lawsuit against smb – возбудить судебный процесс против кого-л.;

47)to make a claim – предъявить претензию;

48)assets (n) – активы;

49)to float a company – образовывать акционерную компанию;

50)memorandum of association – учредительский договор;

51)registrar (n) – регистратор;

52)certificate of incorporation – разрешение на создание корпорации;

53)to sue and be sued in the courts – искать и отвечать в суде;

54)confer (v) – присуждать, передавать.

3.4 Read the dialogue below, sum up its content and act it out. Text B.

Foreigner: Western businessmen used to complain that they couldn't work widely in the Russian market first of all because the forms of business organization were not developed. How do things stand these days?

Russian: The situation is different now. The ongoing reforms have drastically altered the environment in which Russia's enterprises are operating now.

Foreigner: True. The massive shift you are making now from a command to a market economy is really unprecedented.

Russian: You are right. Liberalization of economy, restructuring of production sectors, an extensive privatization programme have brought about real changes and led to the creation of types of business unit accepted throughout the world.

Foreigner: You mean that now your businesses operate as partnerships, cooperative societies, and joint-stock companies.

Russian: Yes, let me give you just one example. Like in the West, we have now two types of partnership. General partnerships with partners bearing joint and several liability for debts and wrongdoing and limited partnerships that include one or more general

59

partners who bear full liability and run the business, plus one or more limited partners, who bear limited liability. They do not have a voice in the firm's day-to-day management, they are in much the same position as shareholders in a corporation.

Foreigner: Now that you've mentioned corporations, do they play an important role in your economy?

Russian: Yes. Like in the West, they exist as independent legal entities with the capital divided into shares. The liability of shareholders is limited.

Foreigner: Your practice here fully coincides with Western principles. Creditors or people bringing lawsuits against corporations can make claims against the assets of the corporation only.

Russian: Yes, limited liability is the biggest advantage of this form of business

organisation.

Foreigner: Our businessmen when floating a company, sign a memorandum of association, then they draw up articles of association and submit them to the registrar of companies issuing a certificate of incorporation. Is the procedure of registration complicated here?

Russian: No, the procedure is similar to what you've said, and after the registration our companies can also do all the legal things like own property, employ people, sue and be sued in the courts and so on.

Foreigner: All businesses seek profits. But in any market economy there is a certain number of business units which are non-profitmaking and are formed to confer certain benefits upon their members.

Russian: You mean cooperative societies, don't you? Yes, we have such voluntary associations based on membership.

Foreigner: Well, another point ... In market economies such activities as supplying gas, electricity, and water are conducted by state-owned enterprises. How about Russia?

Russian: Natural monopolies including transport are controlled by the state in Russia, too. Besides, many other activities are conducted by socially-owned enterprises. For example, we have introduced a new form of unitary state enterprises.

Foreigner: What's the idea?

60