|
|
Nov 12, 2010
Pearl Jewelry - The Story of Pearl Hunters
As long as pearl jewelry have been known to people, they have been a highly sought commodity for their beauty. It's only in recent times however that the industry has taken the hunt for the perfect pearl to a whole different level. Today, the shiny orbs that we see on in display in jewelry stores have actually almost always been grown in farms.
That's a far cry from the dangerous extraction and collection methods used before the invention of modern technology. In the past, not more than 100 years ago, the only way to retrieve pearls was by diving in lakes, floods and the ocean to pick them up, one at the time. The unfortunate divers who'se job it was to do this, were often poor and lured by the relative large sums they could get. The diver would sometimes have to dive as deep as 100 feet on one single breath of air. In order to preserve air and to stay submerged the longest, the divers would hold on to heavy stones on the way down.
Naturally, this dangerous activity was reserved for the desperate or the powerless - in many cases slaves or extremely poor peasents. Today, this method is all but obsolete in most places of the world. The cheaper cultured pearls have become popular and are many times the only pearls available to the consumer.
There are however still a few isolated areas that practice this old art of pearl diving. Some of the finest natural pearl speciments come from the gulf of Bahrain. Here, divers still risk their health to retrieve what are considered the top of the crop in the world. In fact, Bahrain wants no part of the sale of cultured pearls, banned from trade. Bahrain is one of the few places on earth that does an active job in trying to preserve the natural habitat and waters from pollution.
It's an interesting story and one that continues to fascinate buyers around the world. Somehow, the beauty of the pearl grows when it's been retrieved from the depth of the ocean.
Posted at 05:55 pm by whoyg1614
Permalink
Buying Pearl Jewelry Without Being Ripped Off
Buying pearl jewelry can be fun, exciting and confusing. Whether you're considering a gift of pearl jewelry for someone special or as a treat for yourself, take some time to learn the terms used in the industry. Here's some information to help you get the best quality pearl jewelry for your money, whether you're shopping in a traditional brick and mortar store or online.
Pearls
Natural or real pearls are made by oysters and other mollusks. Cultured pearls also are grown by mollusks, but with human intervention; that is, an irritant introduced into the shells causes a pearl to grow. Imitation pearls are man-made with glass, plastic, or organic materials.
Because natural pearls are very rare, most pearls used in jewelry are either cultured or imitation pearls. Cultured pearls, because they are made by oysters or mollusks, usually are more expensive than imitation pears. A cultured pearl's value is largely based on its size, usually stated in millimeters, and the quality of its nacre coating, which give it luster. Jewelers should tell your if the pearls are cultured or imitation. Some black, bronze, gold, purple, blue and orange pearls, whether natural or cultured, occur that way in nature; some, however, are dyed through various processes. Jewelers should tell you whether the colored pearls are naturally colored, dyed or irradiated.
Clams, oysters, mussels and many other mollusks with limy shells are known to produce pearls. But very few kinds yield gem pearls of jeweler's quality. The pearl is an abnormal growth of mother-of-pearl, or nacre, imbedded in the soft bodies of these shellfish. It is built up, layer upon layer, in the same way as nacre is added to the lining of the growing shell and always has the same color and luster. For example, over the country, hundreds of good-sized pearls are found each year in the oysters we eat. Unfortunately these have no commercial value regardless of whether they have been cooked or not because they are dull opaque white or purple like the shell of the parent oyster. In recent times almost all pearls of gem quality come from the oriental pearl oyster which has a bright shimmering translucent nacre.
A pearl starts growing when some irritating foreign substance such as a sand grain, bit of mud, parasite or other object becomes lodged in the shell-producing gland called the mantle. Pearls formed in the soft flesh where nacre can be added on all sides are most likely to be spherical and the most highly prized. By far the great majority are flattened or variously distorted and have little value. Size, color, luster and freedom from flaws are other essential qualities. Unlike other gems, such as diamonds, pearls have an average life of only about 50 years. In time the small amount of water in a pearl's make-up is lost and its surface cracks. Because they are mostly lime, necklaces which are worn often are injured by the acid secretions of the human skin.
Posted at 05:52 pm by whoyg1614
Permalink
Nov 7, 2010
Pearl Jewelry - The Story of Pearl Hunters
As long as pearl jewelry have been known to people, they have been a
highly sought commodity for their beauty. It's only in recent times
however that the industry has taken the hunt for the perfect pearl to
a whole different level. Today, the shiny orbs that we see on in
display in jewelry stores have actually almost always been grown in
farms.
That's a far cry from the dangerous extraction and collection methods
used before the invention of modern technology. In the past, not more
than 100 years ago, the only way to retrieve pearls was by diving in
lakes, floods and the ocean to pick them up, one at the time. The
unfortunate divers who'se job it was to do this, were often poor and
lured by the relative large sums they could get. The diver would
sometimes have to dive as deep as 100 feet on one single breath of
air. In order to preserve air and to stay submerged the longest, the
divers would hold on to heavy stones on the way down.
Naturally, this dangerous activity was reserved for the desperate or
the powerless - in many cases slaves or extremely poor peasents.
Today, this method is all but obsolete in most places of the world.
The cheaper cultured pearls have become popular and are many times
the only pearls available to the consumer.
There are however still a few isolated areas that practice this old
art of pearl diving. Some of the finest natural pearl speciments come
from the gulf of Bahrain. Here, divers still risk their health to
retrieve what are considered the top of the crop in the world. In
fact, Bahrain wants no part of the sale of cultured pearls, banned
from trade. Bahrain is one of the few places on earth that does an
active job in trying to preserve the natural habitat and waters from
pollution.
It's an interesting story and one that continues to fascinate buyers
around the world. Somehow, the beauty of the pearl grows when it's
been retrieved from the depth of the ocean.
Posted at 06:28 pm by whoyg1614
Permalink
Buying Pearl Jewelry Without Being Ripped Off
Buying pearl jewelry can be fun, exciting and confusing. Whether you're considering a gift of pearl jewelry for someone special or as a treat for yourself, take some time to learn the terms used in the industry. Here's some information to help you get the best quality pearl jewelry for your money, whether you're shopping in a traditional brick and mortar store or online.
Pearls
Natural or real pearls are made by oysters and other mollusks. Cultured pearls also are grown by mollusks, but with human intervention; that is, an irritant introduced into the shells causes a pearl to grow. Imitation pearls are man-made with glass, plastic, or organic materials.
Because natural pearls are very rare, most pearls used in jewelry are either cultured or imitation pearls. Cultured pearls, because they are made by oysters or mollusks, usually are more expensive than imitation pears. A cultured pearl's value is largely based on its size, usually stated in millimeters, and the quality of its nacre coating, which give it luster. Jewelers should tell your if the pearls are cultured or imitation. Some black, bronze, gold, purple, blue and orange pearls, whether natural or cultured, occur that way in nature; some, however, are dyed through various processes. Jewelers should tell you whether the colored pearls are naturally colored, dyed or irradiated.
Clams, oysters, mussels and many other mollusks with limy shells are known to produce pearls. But very few kinds yield gem pearls of jeweler's quality. The pearl is an abnormal growth of mother-of-pearl, or nacre, imbedded in the soft bodies of these shellfish. It is built up, layer upon layer, in the same way as nacre is added to the lining of the growing shell and always has the same color and luster. For example, over the country, hundreds of good-sized pearls are found each year in the oysters we eat. Unfortunately these have no commercial value regardless of whether they have been cooked or not because they are dull opaque white or purple like the shell of the parent oyster. In recent times almost all pearls of gem quality come from the oriental pearl oyster which has a bright shimmering translucent nacre.
A pearl starts growing when some irritating foreign substance such as a sand grain, bit of mud, parasite or other object becomes lodged in the shell-producing gland called the mantle. Pearls formed in the soft flesh where nacre can be added on all sides are most likely to be spherical and the most highly prized. By far the great majority are flattened or variously distorted and have little value. Size, color, luster and freedom from flaws are other essential qualities. Unlike other gems, such as diamonds, pearls have an average life of only about 50 years. In time the small amount of water in a pearl's make-up is lost and its surface cracks. Because they are mostly lime, necklaces which are worn often are injured by the acid secretions of the human skin.
Posted at 06:24 pm by whoyg1614
Permalink
Oct 27, 2009
A Russian detective story
If one collects all the rumors surrounding the new Russian government's program, it becomes a real detective story. Even now, with work on the program nearly finished and only the government's approval of the draft to go, there are stunning assumptions in the press. For example, that President Vladimir Putin may base his strategy not on the program of the Center for Strategic Research, but on that of Yury Masliukov. It is well known that Putin himself founded the center and gave it the task of creating an economic strategy for Russia. He appointed German Gref and Aleksei Kudrin as the heads and met with them regularly to cultured akoya pearl discuss progress. He made former Deputy Minister Kudrin the minister of finance and vice premier responsible for economic departments of the government, and he named Gref, also a former deputy minister, head of the newly formed economic superministry that replaced the three former ministries. All this to then take the proposed Communist opposition program, without even having discussed the center's program, and appoint Kudrin and Gref to carry out someone else's ideas? This would be a very strange step, and it is worth explaining the logic behind it. It is true that, when Mikhail Kasyanov was asked his opinion on Gref's program at his confirmation by parliament as head of government, he said he had not read it. But this may have been only the formal truth: Insofar as the program had not been presented to the government as an official document, anything Kasyanov may have read could only be considered a draft text. But it is hard to believe that the acting premier would be entirely unfamiliar with the document intended to determine the direction of the government for the next 10 years. This was probably an intelligent tactical move by a known diplomat and financier: The Communist Party spoke out strongly against Gref's program when the premier's candidacy was under discussion, and Kasyanov did not want to akoya pearl jewelry force leader Gennady Zyuganov's supporters into a conciliatory position over his candidacy. Now that the work is finished, Kasyanov cannot say he is unfamiliar with the final text. On May 22, he introduced the team in Gref's Ministry of Economic Development and Trade. That very evening, Gref, along with colleagues Yevgeny Gavrilenkov and Mikhail Dmitriev, presented the program prepared by his team in a round table discussion with the Moscow Carnegie Center. Judging by statements, the program reflects a completely liberal approach to economics. The strategic aim is to reinforce the growth tendency that has appeared in the last year and a half. A key resource is the huge amount of currency leaving Russia: about $18 billion a year. If even a half of this amount can be reinvested in Russia, the GDP would rise by 10 percent a year. The current program promises a yearly growth rate of just above 5 percent with a 70 percent total GDP increase by 2010. To create a favorable investment climate, the first step is to protect private property, mainly by strengthening the weak court system. The second step is to lower the tax burden on producers. The reduced budget income would be compensated for by reduced spending, primarily in social areas. A key part of this is a reform of the pension system and of utilities and housing, which in 1997 received more in subsidies than defense and law and order enforcement combined. The program's authors recognize the political and social risk involved in the proposed reforms. In their defense, they offer two main arguments. Firstly, the government will not have the money to fulfil its social obligations anyway. If the current pension system is not reformed, for example, it will collapse in a matter of years because of the aging population and increase in the number of pensioners. In 2010, it will be impossible to cultured freshwater pearl cover pension payments with tax collection. The second point is that there is no conflict between economic and social goals. There is a conflict between unreasonable social goals and more rational ones. The current discounts, mainly those affecting residential maintenance and utilities, essentially redistribute money from the poor to the rich. The proposed reform would reverse this flow. The political difficulty is that the population of Russia grew up in a world where market relations were forbidden fruit. It does not yet fully understand the dynamics of the market, nor does it always properly assess its own interests. This becomes a breeding ground for leftist populism. The problem is that Russian reformers usually explain their policy poorly and organize essential reforms badly. The recent sharp drop in Russian share values, unexpected and hard to explain in the light of economic successes, shows how weak the improvement in the Russian economy is.
Posted at 01:28 am by whoyg1614
Permalink
So it's happened. The government of Prime Minister Mikhail Kasyanov
has adopted the program drawn up by German Gref's Center for Strategic
Development. A government meeting on June 28 officially approved the
"main directions for long-term social and economic policy" and the
"priority tasks for the government in 2000-2001." Gref and his
team had been fuelling the political rumor mill for several months.
First, there was talk of the new authorities not being as liberally
minded as they said they were and quite capable of choosing instead the
program of Communist Yury Maslyukov 每 or a similar one drawn up by a
group of academics headed by Dmitry Lvov. Then came rumors of
conflict between Gref and Kasyanov 每 Kasyanov wasn't sufficiently
liberal, Gref was too academic, Kasyanov was simply jealous. But all
this has been overturned. Maslyukov and the academics were indeed
consulted when the program was still in its early stages, so that pearl pendant all
the different ideas had been heard. And there never was any real
conflict between Gref and Kasyanov. On June 28, Kasyanov
declared the government team to be unified and committed to liberal
reforms. A good thing, because Russia will never have a deficit-free
budget if it doesn't follow liberal principles. But Gref's
program did undergo some noticeable changes during the last intensive
days of government discussion. It became shorter by half and also more
restrained in its forecasts for economic growth through to 2010. The
predicted annual increase in GDP is now 5 percent, rather than the
previous 8-10 percent. Politically, this prudence is logical,
but it doesn't have any practical importance. It is difficult in any
case to predict the future growth rate. The Soviet planned economy
method measured government aims in quantity terms, whereas now, they
are measured in terms of visible institutional transformation. Now that
Gref's program has been approved, the main question is whether it will
be possible to carry out the changes it calls for. The government
held discussions on this point, accounts of which say the issue was
raised as to cultured pearl how realistic the central political idea of the program is
每 the development and implementation of a new social contract. Though
Russia has gone through a decade of reforms, the old paternalistic
socialist contract between the state and its citizens is still largely
in place. The state spends vast sums of money keeping afloat
unprofitable and unnecessary enterprises, not for economic
considerations, but for purely social reasons such as maintaining jobs
and social infrastructure. The state doesn't target the
assistance it provides, but rather, gives benefits to whole categories
of people. There are hundreds of these groups 每 70 percent of the
population is entitled to some benefit or other. But only a quarter of
those receiving benefits are people who earn less than the living
minimum. In trying to maintain this unnecessary burden of social
expenses, the state is unable to keep up genuinely necessary social
values like accessible and free education and health care. The pension
system is also on the verge of collapse. The idea behind Gref's
program is that the state will now concentrate on these basic things.
Budget spending on education is to increase next year. The government
will gradually shift from a budget-funded pension system to a system
based on pension funds. Some groups will also see their benefits get
the ax, especially transport and housing benefits, and there will be a
shift to freshwater pearl targeted state assistance. The state will stop supporting
unprofitable enterprises and do more to help create new jobs rather
than maintain old jobs. In his presentation to the government,
Gref stressed this idea of a new social contract and it met with
approval. The state doesn't really have any choice 每 the only question
is whether to announce it all out loud, or just to get quietly on with
it and do what's necessary. But the problem is not one of
announcements, the problem is whether Russia can accept and implement a
new social contract. Are people ready to accept it? Are officials ready
to carry it out? The public would accept reasonable ideas if the
officials prove capable of explaining them reasonably, and more
importantly, show themselves able to fulfill them. For the moment, the
public suspects that when it comes to housing reform, for example, the
only part of the reforms supposed to bring about greater social justice
that will actually be carried out is the part involving rent increases.
Events outside the government seem to confirm these fears. The
presidential apparatus was so keen to wholesale pearl jewelrypush through new laws restricting
the powers of regional governors that it resorted to clumsy tactics in
its zeal. Everything that could be done to rouse governors' suspicion
and unite them against the reforms was done. The law that seemed sure
to get through not so long before fell through. This 每 President
Vladimir Putin's first real failure 每 can be rectified, but only if
Putin's apparatus shows itself capable of learning from its mistakes.
Posted at 01:12 am by whoyg1614
Permalink
The idea of creating a Slavic union embracing Russia, Belarus, and
Yugoslavia is nothing new. In the past, sensible politicians perceived
it as matter of fancy. So too today. The matter lies not so
much in the international situation as in political tensions inside
Russia. Impeachment hearings in the Duma are scheduled for April 15.
Although the chances of the president's removal from office are
insignificant, Yeltsin understands that if his opponents succeed in
collecting the required 300 votes for at least one accusation to go to
the next stage in the proceedings, it might become his Waterloo. Seleznev
tried to persuade his colleagues to pearl jewelry postpone impeachment, saying that
Russia needs to demonstrate unity and consent. But his move only
aggravated his Communist Party comrades who are hungry for the
president's blood. Now a new pretext appears to have been found
to derail impeachment: the idea of a Slavic union. Last week, Seleznev
visited Yugoslavia, met with Yugoslav President Slobodan Milosevic,
obtained a verbal consent from him, and, on Friday, having just
returned to Moscow, rushed to brief the president on the results. Everything
was arranged spectacularly. Right after Seleznev spoke to the
president, the Duma convened a meeting to discuss how the impeachment
vote should be arranged. The Communists insisted on an open vote, so
that deputies would fear to step out of party lines. By the time the
Duma adopted its agenda, Seleznev stepped in. He reproached reporters
on his way in for ignoring his press conference the day before and
entered the meeting hall swiftly. It was there that Seleznev announced
the "Slavic re-union" concept. He spoke of it as a closed matter:
"The president has supported this proposal," he said."The president
called Belarus President Aleksandr Lukashenko in my presence... "State institutions have been ordered to pearl jewelry Chian prepare all necessary documents," he added. Seeking
to eliminate any doubt, Seleznev also said the Kremlin would release a
videotape of his meeting with the president, proving the historical
decision had been taken in earnest. He then delivered the
president's moving request to Russia's deputies asking for the
impeachment vote to be postponed. "This isn't the right time," he said.
But the responses to Seleznev's motion were disturbed by a lone
query: Does a union mean that if NATO proceeds with its military action
against Yugoslavia, Russia will find itself in a state of war? Seleznev's reaction was odd. "This is not a press conference," he retorted. Then
Seleznev was let down. Though the Communists were unequivocally
supportive of the proposed union, they believed it would be even better
without Yeltsin. Even worse for Seleznev was that the promised video of
the "historical" meeting in the Kremlin turned out to show nothing
sensational. The president did not promise anything specific. Yeltsin
even went on the offensive, prompting his press secretary, Dmitri
Yakushkin, to declare: "The postponed impeachment is a constantly
smoldering threat to the country's political stability." As
details emerged, the case became clearer. The Kremlin used Seleznev,
someone the Communist Party would trust, to pearl earrings introduce the idea of a
Slavic union. And the president finally got what he wanted: the Duma
decided to take a secret rather than an open vote on the impeachment
issue. The Kremlin now has an opportunity to "steal" votes from
the Communists. The president may be interested to organize a vote as
soon as possible. If all five items of the accusation fail to receive
the required 300 votes, Yeltsin will be relieved of the headache of
impeachment proceedings forever. As far as Seleznev is concerned,
it is probably his journalist's past that played a trick on him. After
all, how can a former newspaperman resist the temptation of breaking a
sensational story?
Posted at 01:07 am by whoyg1614
Permalink
A return to Soviet imitations
The Soviet Union was famous for its art of political imitation. It had an imitation parliament, the Supreme Soviet, which always voted unanimously in accordance with the Communist Party's instructions. It had imitation elections without alternative candidates and any party other than the ruling party. There was imitation justice with courts obeying party-district-committee instructions, and even imitation freedom of speech in the form of "national discussions" on issues set by the party, with the outcome already known. Since reforms began, a whole generation has grown up with no firsthand experience of this imitation world. But the events of recent days show that there are still many people around who would like to return to the political mores of yesteryear. Above all, this concerns attempts to bring back imitation rather than authentic freedom of speech. The NTV television channel that has just begun broadcasting has nothing in common with the independent NTV company, except its name. The magazine Itogi that is about to wholesale pearl jewelry publish its first issue is not the old Itogi, published with the support of American weekly Newsweek. This new Itogi is being put out by a new team, while the old team under Sergei Parkhomenko has been fired en masse. But what is really worrying for the future of freedom of speech in Russia is the government newspaper Rossiiskaya Gazeta's publication of an article calling for a return to censorship. The existence of censorship was considered a state secret in the Soviet Union 每 even the Communist Party didn't think it possible to openly admit to its use. In the case of NTV, it's obvious that Soviet imitation justice has also been revived. This wasn't hard to do considering that the last decade of reform has all but bypassed the judicial system. The courts have hardly changed since Soviet days, and that two different judges in different cities could reverse their decisions overnight doesn't surprise anyone in Russia. Now, work is under way on creating an imitation parliament. Four political groupings in the State Duma have set up a coordination committee, which will make for a united bloc of 234 votes. Duma procedure requires 226 votes for a simple majority. No one in the Kremlin seems bothered by the fact that this group includes not just pro-government Unity (Yedinstvo) but also former Prime Minister Yevgeny Primakov's OVR (Fatherland-All Russia), which opposed Unity in the last Duma elections. The Kremlin faces quite a different problem in the Duma. The new pocket party can ensure enough votes to get laws passed but not to Keishi pearl make amendments to the Constitution, which would require the votes of 300 obedient deputies. This is not an idle question, because the Kremlin looks like it would definitely like to make some amendments. Getting the necessary 300 votes would require support from the Communists, but there's always the possibility of coming to an agreement with them based on their shared love of demonstrative patriotism and Soviet values as exemplified in the restored Stalinist national anthem. Returning to the NTV case, we're now seeing a new type of imitation 每 the use of imitation market relations. Events surrounding the company imitated an apparently commercial dispute, although no one has bothered to explain what commercial motives drove Gazprom to acquire shares in an indebted company with no relation to its core business in the first place. But attempts to imitate market processes will run up against substantial difficulties. It's possible to imitate economic growth at a propaganda level, but there's no way to make the public believe in imitation improvement of their living standards. Only real economic growth can create real prosperity. But economic growth stopped at the end of last year, and so far, there are no signs of a return to pearl strand the boom that began in mid-1999. Sustainable growth would require new steps toward reform, and here no imitations will help. President Vladimir Putin seems to understand this. His appearance at a recent Finance Ministry meeting 每 unprecedented for a president 每 showed just how high a priority he considers economic issues, as do the critical comments he made at the meeting. But active tax authorities and a careful budget policy alone won't be enough to bring about economic growth. Also needed are serious cutbacks in state spending, above all defense and social spending. Imitations won't work here: Real and difficult political measures are required, which must be based on public consensus arrived at through democratic means. It's hard to see how this will be possible with all the imitation going on. Meanwhile, an event has taken place that was barely noticed but could herald important changes in the situation in Russia. In March, the Consumer Sentiment Index (CSI), a U.S.-devised index that has been measured in Russia since 1993, underwent a significant drop. Beginning in July 1999, the CSI had shown rapid and sustainable growth, which reflected growth in people's incomes over this period. Income growth was due in large part to freshwater pearl jewelry payments of wage arrears and a rise in job creation. But now, the trend is reversing, with wage debts once again on the increase and employment figures dropping. Whether this signals a trend toward stagnation is something only time will tell.
Posted at 01:07 am by whoyg1614
Permalink
President Vladimir Putin, close in age to Boris Yeltsin's daughters,
has proposed as prime minister a man from the same generation 每
42-year-old Mikhail Kasyanov. There is, it seems, nothing new in
this. His generation has been leading reforms for eight years now. But
Yegor Gaidar, Anatoly Chubais, Sergei Kiriyenko and Boris Nemtsov, the
big names among the reformist politicians, were called to power only in
the most critical moments. Like political kamikazes, they were sent to
pull off the near-impossible and were removed at the first sign of
failure. The real bosses remained those who, like Yeltsin
himself, had entered the upper circles of power back in Soviet times.
Many of them, former Yeltsin sidekicks from the Urals like Oleg Lobov,
or security men like Alexander Korzhakov, weren't able to pearl jewelry wholesale adjust to the
new era. But they were still closer to Yeltsin than the young
reformers, and before having to leave the stage, they had time to pull
him into their schemes, with all the consequences that entailed. Only
the most pragmatic and teachable of the old school of politicians, like
Viktor Chernomyrdin, managed to adjust and pursue market and democratic
reform. But only after costly experiments and mistakes. Despite
Yeltsin's hostility to the Communists and their inheritance, it is only
now, with his departure, that Russia has finally parted ways with its
Soviet leaders. Now, the 40-somethings can really rule the country. And
it's no coincidence that Putin's closest economic advisors, Alexei
Kudrin and Andrei Illarionov, are from Gaidar's and Chubais' first team. This
means that, on the political level at least, the country no longer has
to deal with elementary failure to even grasp what a market economy is
all about. Over the last decade, this caused more problems in Russia
than is commonly thought. Even more progressive politicians like
Yevgeny Primakov and Yury Luzhkov ran up against it; not to speak of
the opposition camp. Today, the problem is not one of understanding
reform, but of determination to bring it about. Everyone sees
that taxes need to come down and that social costs are too high. But
the temptation is huge to freshwater pearl necklace put off all these tough decisions, reasoning
that things are going well now and hopefully won't get worse in the
future. The day Kasyanov was proposed as prime minister, the
Fitch IBCA credit rating agency raised Russia's rating by two points at
once. The same day, the Financial Times, which had published some
damning reports on the state of affairs in Russia, put out an
eight-page supplement on the economic wonders going on here. There
are reasons enough for this 每 the 7-point GDP growth in the first
quarter compared to last year, is a record result not just for the
reform years, but for the last 30 years. Even more impressive are
foreign debt payments, which should reach $5 billion for the first
semester 每 with no money coming in from the International Monetary
Fund, and without the government borrowing from the Central Bank,
though the budget allows it. Gold reserves increased by $5
billion over four months. Inflation is forecast to akoya pearl necklace drop to 5 percent
over five months (last year it was 8 percent for January alone). Wage
debts decreased by $2 billion over six months. And last autumn, real
incomes began to rise for the first time in three years. This
list of good economic news could go on. And it can't all be explained
by high oil prices 每 the economy is obviously benefiting from some
other resource as well. This resource, it seems, is the long-awaited
recovery in the real sector of the economy. This is the result of the
reforms of the last eight years, half-baked reforms as they might have
been. But if this is so, then maybe the government doesn't need to give
anything a shakeup now? Wouldn't it be safer to just go with the flow? Economists
know that you can't just go with the flow. A worn-out capital base,
obsolete technology and poverty are all problems too serious to solve
without taking reforms to their conclusion. Russia's new rulers
surpass the Yeltsin of 1991 in their understanding of how a market
economy works, and this will certainly help them. It remains to be seen
whether they can compare with Yeltsin in terms of political will.
Posted at 01:03 am by whoyg1614
Permalink
|
|
|