The Global Economy and Business

Modern day business requires new techniques and tactics in all spheres and especially in the sphere of software development. Since requirements can be changed and very often they are changed during the process of software development, new methods should take into account possible variation and improvements.

For this reason, Agile methodology is probably the best at the moment as it helps in creating flexible software that can be adjusted in any time.

They say that the real estate market is improving slightly: the house sales are increasing, the prices are attractive and the foreclosures are rising. But everyone is expecting the beginning of the month when the tax buyer program finishes. They predict that the market will collapse. The experts say that this is a threat to the economy.

At the same time the authorities offer some measures to avoid any decline. The banks promised to help some really troubled customers who are likely to lose their property. They also said that they are going to forgive some percents of debts to some clients. The authorities also expect that the quantity of those who want to qualify for the loan and who want to purchase a house will increase. This is a huge step from the authorities to give hand to the people whose house prices below what they own to banks. Due to the measures taken earlier the market has recovered considerably, but the state support can’t be forever. And they foresee the next crisis.

The crisis has a serious impact on the building branch which had to slow down the pace and it find hard to compete with the flow of foreclosure houses. Thus the branch can’t contribute a lot to the national economy. So the main aim of the government is to reduce foreclosures and stop people from selling a property. But forgiving some borrowers can’t work as it will make some people to give foreclosures on purpose.

Still many experts say that the prices are likely to fall as the administration measures have some risks and there will be many foreclosures on the market.

As for new houses some figures say the sales of new houses have gone up in some states like Maine, Massachusetts, while in some southern states the sales have fallen down.

Here is the remarkable news for all who are going to buy or sell their California property in 2010!  Widely famous 90 day flip rule has been provisionally suspended for all sellers effective February 1, 2010 and the waiver shall come to the end one year from February 1, 2010.  The regulations at the Urban Development Act ensure that a mortgage for a property will not be eligible for FHA insurance if the contract of sale for the purchase of the property is executed within 90 days of the prior acquisition by the seller, and the seller does not come under any of the specific exemptions that apply to the 90-day rule.

This document takes effect on February 1, 2010.  This waver regulates all the transactions which are arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales bargain.

Today analysts of the various countries recognize China as the candidate on capture of world leadership in the post crisis world. China - unique from large powers with rather stable economic growth. It is expected, that gross national product of China will increase by 8 % in 2009.

The country successfully realizes an anti-recessionary package (16 % from gross national product within two years), stimulating internal demand. And this package is already recognized as one of the best and effective in the world. Industrial production grows in China the fourth month. Value of an index of managers of purchases has grown to 53,2 points in June with 53,1 in May (above 50 - growth). Volume of export orders has grown In June in comparison with May.

China is the largest investor of the USA market of state papers. China continues interventions to the market of the American state papers, despite doubts concerning stability of the USA economy. It does not have other choice, except to continue massed injections to the American economy through purchase of state papers because in the conditions of world crisis it is the unique large market with sufficient liquidity which corresponds to scope of the Chinese investments. About a quarter of an external state debt of the USA belongs to China, according to the American Ministry of Finance.

The exact structure of state investments of China is the state secret, however, by estimations of different sources, the share of dollar actives in them makes an order of 70 % at total amount $1,953 bln.

China has got stuck in “a dollar trap”, mark both western and Chinese analysts. The current policy of the American authorities can lead to a collapse of dollar and world inflation. One of the basic fears of the Chinese authorities is called by attempts of the USA to overcome a present economic crisis by means of flooding economy with money that can lead to inflation and reduction of cost of the American actives that will extremely negatively be reflected at economy of China. On the one hand, China is not interested in dollar crisis, therefore continues injections in economy of the USA, on the other - the authorities of China are interested in stability of the USA economy more and more. In this connection China has once again brought up a question about creation of new international reserve currency. Many analysts consider, that recent falling of dollar is connected with this.

“It is necessary to create new reserve currency, which will not be adhered to economy of its emitter to prevent lacks of such currency”, - is spoken in the economy review for 2008, let out by National bank of the Peoples Republic of China. The head of the Central Bank of China Chjou Siaochuan has suggested the world states to create new reserve currency and to expand powers of the International currency fund (IMF) in this sphere. “The special rights of loan” of IMF or gold can play the role of international currency.

However, a number of experts underlines, that in immediate prospects dollar has nothing to be afraid. There are more sceptically adjusted experts concerning dollar, but also they recognize, that the importance of dollar cannot be changed for one day. “We can see additional reserve currencies” though this event “is not going to occur this night” the professor of economy of New York university Nuriel Rubini has noted.

Belarus Computer Industry  

The Research and Development of the component base and architecture of the Belarusian computers was done in a Minsk based Research Institute of Computational Techniques. Nowadays the scientific research association “Cybernetics” of the Academy of Sciences of Belarus is probably dealing with these problems. The computers are assembled also in Minsk in BelABM, the main Belarusian PC and main frame computer manufacturer.  

BelABM is now the partner with Compaq and Fujitsu. It manufactures LANs and PCs. BelABM also is the partner with GlobalOne in telecommunications.  

Laser and Optical Industry of Belarus Let’s just list below the major Belarusian optical enterprises: Lida Optical Plant “Optik” is the second largest optical plant in Europe after Carl Zeiss. In the former Soviet Union it was specifically designed as a mass manufacturer of optical elements. Optical elements such as lenses, prisms, flats, etc., are manufactured here. The idea was that the plant would concentrate on optics while further optic-mechanical enterprises would use its product to assemble objectives and other optic-mechanical devices. The plant is capable of mass production of millions and millions of optical elements. Lately they also started to pool optical fibber, do optical coatings, including photo chromic coats. All major optical plants of the former Soviet Union were the customers of this giant.  

Basically, if you are looking for a cheap supplier of big quantities (millions) of high quality glass and quartz optical elements - Lida “Optik” could be the way to go.  

BelOMO is a major optic-mechanical assembly plant of the former USSR and Belarus now. It is the designer and manufacturer of laser, optoelectronic and optic mechanical instruments. Products include topographic and multispectral photographic equipment, photogrammetric devices, laser devices, optoelectronic sighting devices, and medical equipment based on laser systems. It was set up as a manufacturer of high resolution satellite cameras and is still listed in various space war lists. So there are rather high standards of quality here. As far as peaceful applications, it manufactures objectives, photo cameras, etc. Some of the satellite photos of Russian Sovinformsputnik were done on BelOMOs TK-350 satellite topographic camera with 10 meter ground resolution. The enterprise cooperates with Swedish Latronix. German CARL ZEISS has a joint venture with Smarhon Optical Machine Tool Plant. This plant was the SINGLE supplier of ALL optical plants of the former USSR with optical polishing equipment. They also manufacture industrial vacuum measurement sensors/ electronics.  

Minsk Laser Plant. This is an experimental plant that is manufacturing YAG lasers, laser power supplies, and solid state pumped dye lasers with harmonics generators. Established in 1991, manufacturer of laser rods and laser crystals including alexandrite, Ti-sapphire, forsterite and lanthanum beryllate. Their products could be pretty cool. Other Belarusian institutions related to optics/ lasers are the Institute of Applied Physical Problems, the National Academy of Sciences, the Institute of Applied Optics of National Academy of Sciences, “October” Glass Factory, “Optron” Instrument Manufacturing Plant. Generally, Belarusian Laser and Spectroscopy school is pretty strong.  

Horizont. The TV-production Corporation HORIZONT (Minsk) has more than 40 years of experience in the market. Currently they manufacture color TV-sets; modern equipment for cable and satellite television; office furniture. The company has its own considerable production facilities and qualified personnel for the assembling of modern consumer electronics. HORIZONT Corporation is a state enterprise, including 5 plants and the Design-Centre. They cooperate with such known companies as Philips Semiconductor; Samsung Electronics Co., Ltd.; Siemens AG; Thomson, and many others. The main reasons why it’s good to deal with HORIZONT are the following: - no customs borders with Russia - the location in the centre of Europe - the permission to found a free economic zone on the base of HORIZONT (release from taxes applies to the partners as well) - the availability of the vacant production capacities and qualified personnel - the availability of the Design-Centre – the prospective designer of the future projects. 

Chemical Industry of Belarus: Belarus has perhaps the most modernized and powerful chemical industry among the CIS states besides Russia. The chemical industry specializes first of all in the processing of Russian oil products going through the pipelines to the west (primarily Germany); synthetic polymers, mineral fertilizers, pharmaceutics, household chemical products.  

Polymer Synthesis in Belarus: Several major Belarusian enterprises are manufacturing polymers, synthetic fibers, polymer film etc. Among such enterprises are “Khimvalakno” (synthetic polyester fibre plant in Grodno); Rudensk plastic manufacturing plant near Miensk; ZIV - Mahilyow Viscose Fibre Plant and “Khimplast” (plastics and polymer manufacturer/ recycler plant) and Mogilev Regenerate Plant (recycling plastic materials).  

Production of Mineral Fertilizers in Belarus: Belarus is the world biggest supplier of potassium mineral fertilizers - the only mineral resource met in abundance in our land. “BelarusKali” is the world’s largest potassium fertilizer manufacturer; “Azot” is a giant enterprise manufacturing nitro-mineral fertilizers and other nitro compounds. It is now a part of the Belarusian Consortium which includes also Khimvolokno, Polymir etc.  

Belarusian Pharmaceutical Industry: it turns out that Belarusian pharmaceutical industry is not so bad. Some foreigners buy antibiotics in packs when in Belarus. Keep in mind that extremely strict former USSR governmental standards on medicine are still operating. Of course, with the disintegration of the industrial network of the CIS the production has fallen and there is a deficit of medicine now in Belarus. Major enterprises are Mogilev plant of medicine and Mogilev plant of veterinary medicine.  

Household Chemical Products from Belarus: there are several plants involved in production of stuff like shampoo, detergents, etc. for example, Brest Chemical Plant of Household Products.  

The Belarusian Semiconductor Industry - one of the main branches of Belarusian economy. During the USSR times Belarus semiconductor industry was taking care of the mass manufacturing of main-stream semiconductor elements, ICs and computer chips. Belarusian enterprises were mostly oriented on consumer electronics and mid-level ICs. The main Belarusian semiconductor consortium - Research and Production Corporation “Integral” - is in fact the largest in Eastern Europe semiconductor Production Company. In fact it consists of 6 plants and 3 design centers providing complete cycle of production of electronic components. The headquarters of “Integral” are located in Dzerzhinsky Plant. “INTEGRAL” Research and Production Corporation was established in 1971 in Minsk, it was the biggest semiconductor manufacturer in the former USSR, both for national economy and for defense needs.  

At present time the Corporation includes five plants and four R&D centers in different regions of the Republic of Belarus. Under new political and economical conditions, “Integral ” make active efforts for conversion and diversification of the range of their products. By extending and updating the new high technology goods of its own design, “Integral” wants to be useful for its customers and tries to solve the difficult problems of keeping its competitiveness, to gain the access to new markets and receive international recognition.  

Production Association RADIOVOLNA concentrates main attention on production of complicated radio electronic devices and electro technical goods for automobile industry. At present time the association enlarges sale markets of car stereo systems, TV sets, radio receivers generators and accessories for diesel engines, electro technical goods for agriculture and cable TV equipment, aspires to be useful to customers constantly producing now qualitative goods.  

Production association RADIOVOLNA has wide opportunities in: 

- Forming production; 

- Mechanical treatment 

- Plastic processing 

- Electroplating and paint coating 

- Production of complicated technological and non-standard equipment on CHARMILLES TECHNOLOGIES machines.  

Belarus Auto Moto Industry. The BELAZ Trade Corporation (BTC) groups of companies have complete range of products and original services; they are the worldwide supplier of haul trucks, road construction machinery, service vehicles & other haulage equipment with the BELAZ trademark. When Belarusians think of something they have accomplished in industry most likely they think about their auto industry, and primarily Minsk Automobile Plant - MAZ.

        

Indeed we could be proud of the machines that are working in all corners of the former USSR - deserts of Middle Asia, polar tundra, Siberian taiga, quarries of the Urals and many countries of the world. German businesses are cooperating with MAZ. Ford has already built a plant in Belarus acknowledging our successes in automobile manufacturing. Czech “Skoda” followed them. Great Britain is considering Belarus as a partner for future cooperation, too.
The Production Association “Minsk Tractor Works”, MTZ, is one of the largest manufacturers of tractors in the world. MTZ Belarus is an association of 6 cooperating Belarusian plants. MTZ Belarus has received 32 international quality certificates. More than 3 Millions of MTZ Belarus tractors successfully operate in over 100 countries around the world all year round in various climate and soil conditions.
           

Currently MTZ manufactures:
-24 different models of ploughing tractors ranging from 50 to 130 h.p.;
- 6 models of small tractors with engine power from 20 to 35 h.p.;
- 8 models of mini-tractors and moto-blocks with engine power ranging from 6 to 12 h.p.;
- 16 models of loaders, forestry, mine and maintenance machines;
- spare parts for the tractors;
- metal processing equipment and other stuff.
  
Gomselmash is one of the largest producers of agricultural machinery in the CIS and Eastern Europe. Gomselmash manufactures fodder -picking combines and multi-functional agricultural machines: mowing machines, machinery complexes for sugar-beet cultivation, tractor trailers, mini-tractors with optional attachments and automobile components.
With metallurgical and preparatory technology, mechanical assembly and instrument production capacity, the largest network of warehouses, their own means of transportation, and the well-qualified staff, Gomselmash is able to undertake a wide range of technical production orders. It is currently seeking new partners interested in investing in joint ventures. Gomselmash is prepared to consider proposals within their field of expertise.
Oil Processing Industry of Belarus: Belarus oil-refining industry changes its structure and proprietorship. From the Belarusian press talks, speeding up privatization in this industry has begun to assume a specific shape. Some governmental structures are working out share-distribution projects for about six major players in the Belarusian oil-refining industry. First, there are companies such as Polimir, Naftan and the 2nd Heat and Power Plant, all of which are situated in northern Belarus. Then there is a Belshina tyre-factory in Bobruisk; Azot in Grodno, they are the biggest producers of caprolactam and mineral fertilizers; and similar plants in Mogilev and Svetlogorsk, which go by the name of Khimvolokno. The two major oil processing plants are in Navapolacak and in Rechitsa. These are relatively modern giants that are currently operating below their full capability because of the drop of oil supplies. Other few names related to this industry are Slavneft (Oil & Gas); Rechitsa Oil Processing plant and Babrujsk Hydrolisys Factory. Navapolacak oil processing plant “Naftan” is the biggest oil processing plant in Europe. Lukoil plans to be a biggest shareholder in Naftan.
 

 

The National Bank has the exclusive right to issue paper money, regulate settlements procedures and manage national reserves.
The National Bank bears full responsibility for the development and implementation of exchange rate policies. These include the setting of procedures for hard currency transactions and monitoring the activities of dealers on this market, including banks.
The National Bank has the right to provide guarantees for loans, including government guarantees for international loans.
The National Bank does not provide crediting to economic entities but to the only institution authorities who give loans to the central and local governments. Under the present law, the total amount of such loans may not exceed two percent of the GNP in that fiscal year.
Under the current legislation, crediting, cash collection and other financial services are provided to economic entities by commercial banks.
Banks receive the status of legal entity after their registration with the National Bank and operate on conditions specified by their licenses.
Banks operate independently, and any state interference in their activities is illegal. The procedures for attracting and use of funds, conducting banking transactions, as well as interest rates and commissions are set by the banks independently.
Banks must comply with the decrees issued by the National Bank and provide the statistics required by the National Bank regulations. In order to promote the stability of banks, the National Bank sets the minimum requirements to the size of the banks’ foundation capital, obligatory guidelines of their economic performance and procedures for ensuring current and deposit accounts.
The National Bank may conduct the refunding of banks as a means of regulating the amount of money in circulation. It may also provide credit aid to solvent banks directed at maintaining their liquidity.
In the event of a systematic violation of the National Bank regulations, loss-making or a situation that may threaten the interests of the bank’s creditors, the Bank is entitled to take every step necessary to amend the situation, which may ultimately include a bankruptcy action in court against the bank in question.
The Bank co-operates with the International Monetary Fund, the World Bank and the European Bank for Reconstruction and Development and has correspondence accounts in foreign banks.
The National Bank participates in the work of international organizations. With the government’s authorization, the Bank makes commitments and conducts operations required by Belarus’ membership status in these organizations.
The National Bank co-operates with foreign banking and financial control institutions. The law enables it to be a member of international banking funds, unions and association. 

Do you have a plastic bank card? Have you ever used any bank serves?
I am sure that your answer will be «yes».
But do you know how the bank system works? Not exactly?
I will try to tell you about it by the example of the National Bank of Belarus.
 

The National Bank of Belarus occupies the central position in the country’s banking system and is accountable to the Parliament. It has the right of legal initiative. The Head of the National Bank is appointed by the President. His deputies and members of the board are appointed by the Presidium of the Parliament.
The National Bank is an independent institution acting within the limits of the legislation and its Charter. The Charter is the subject to approval by the Parliament. The Bank forwards annual reports of its activities to the Parliament.
Institutions of the state my not intervene with the work of the National Bank. The National Bank has no responsibility for the government debt, nor is the government responsible for any liabilities of the National Bank, if otherwise not specified by the legislation.
The National Bank maintains the foundation capital, reserve, and other aspects which serve as collateral for its liabilities.
In cooperation with the government, the National Bank drafts and forwards to the Parliament the guidelines for financial and credit policies for the coming year and reports the implementation of such policies in the previous year.
The National Bank’s efforts are directed at the stability maintaining of the local currency and prices. Its main responsibilities are to develop monetary and credit politics, encourage the liquidity, solvency and stability of the financial system and provide support for government economic policies.
The National Bank regulates inflation chiefly by internationally accepted economic means, such as interest rates, minimal requirements for banking services and activity on the open financial market.
The National Bank acts as a creditor, economic advisor and representative of the government on the financial market. The Bank represents the Republic of Belarus in all international and other organizations in issues of monetary and credit policies and licensing of banking activities.
The National Bank offers banking services to foreign governments, banks and financial institutions. Acting as the representative of Belarus in international organizations, it makes commitments and conducts operations required by the country’s membership status in such organizations. 
Functions of the National Bank:
- monetary, credit and hard currency regulations; monitoring of foreign trade and loan market;
- consulting, crediting and financial representation of the government and local institutions of power, execution of the central and local budgets;
- acting as a central depository;
- registration of banks, their branches and representative offices, monitoring their stability and liquidity operation of the inter-bank settlements system;
- issuing of licenses to financial companies to operate on the financial and hard currency markets;
- maintaining uniform accounting and reporting standards, setting rules and procedures for clearance settlements in the national economy.