Monday, March 15, 2010

Sanctions against Iran

The given article has been written on basis of BBC Daily News.  http://www.bbc.co.uk/iplayer/console/p006j7q9 
 The treated questions are:
"Modern condition of Iran Economy"
"Sanctions against Iran"
"How do the sanctions influence on the Iran Economic System?" 

   First let's look through the common condition of Iran Economy. So, it's clear that Global Economic Crisis is making most countries' economic systems weaken. This concerns Iran, too. The main economic problem is as ever "Inflation". So, President A. Nejat had proposed to cut the subsidies, but the Parliament had disagreed with that and reinstated the subsidies. Despite this decision, prices are still going on rising and the Iran Parliament worries that this can increase the inflation annually to 50%.  But inflation is not only fur, but also too relative to Iran, as this country had been suffered because of up to 20% inflation  for years.

 II  The second basic question is "Sanctions against Iran". In 2007 Iran satisfied The Nuclear Program with The International Organizations and some countries. According to this agreement, Iran was obliged to use The Nuclear Program for peaceful purposes. But now, some countries such as The USA, Israel, oppose this program, adducing that the Iran Government rules a close nuclear program and it's not completely for peaceful, but for military purposes. That's why this countries, concerning most European countries apply lot's of sanctions in Iran. Main kinds are: economical and military sanctions. In other words, Iran must be abstracted from the external economical and political relations. The basic target of these sanctions is "to achieve the peace among the countries and preserve it".  

  III  And the last question is "How do the sanctions influence on the Iran Economic System?"  While treating this question we must take into consideration two main positions: Anti-Iranian and Iranian. The only distinction between these positions is in treating the consequence of sanctions. 
First let's look through the influence. So, economical sanctions have still influenced more. The target of this policy is "freezing" the Iran's Financial system.  Because of this this sanction most Iran banks aren't able to deal with global financial market. But dominant banks of Iran, including the Central Bank, are still be able to deal with abroad and other finance markets. 
"Anti-Iranians" are sure that sanctions will make Iran change its close governing system and relate to the Global System.
Defenders of the Iranian position make sure that Iran Economy is powerful as ever and population supports the government. They declare that: "Sanctions won't work, as they hadn't worked for many years".

                          
             Thank you for attention!

Wednesday, March 3, 2010

China and Crisis

I had listened one podcast: BBC Radio - "How well is Chinese Economy doing?"      http://www.bbc.co.uk/iplayer/console/p005x3w1
   
I had listened the daily news of BBC Radio about Chinese economical politics for last two years. Exactly saying, "How could China keep the national economy invariable, even it could ensure economic development, unlike  other industrial countries?"  The Reporter and invited guests tried to clarify the main points of  Chinese Growth. I would like you to look through my synopsis about the given discussion....
  Of course, the global economic crisis made everyone complain, besides Chinese population. And this situation is going on today. The main question is, "How well the Chinese economy really do?"  According to the economical statistics of 2009, GDP (Gross Domestic Product) of all industrial countries had decreased because of the global economic crisis in 2008-2009-2010(?). Only China had been able to achieve a 10% increase of GDP. From this, it's clear that, China has had the fastest GDP Growth during the last period. Indexes show that, this country is the II biggest stock market in the World. It may be seem unbelievable, but China owns the biggest economy in the World.

This is not a secret that, China is not an industrial country, but how has it been able to achieve this level of development? The first reason is the Chinese Government economic policy. So, in this country the property prices are too high, and of course, isn't attractive for population to buy houses in urban places. And in the result population prefer countryside to industrial cities. Relatively this makes the countrysides develop. In the result GDP grows. The second reason is the population's movement abroad. This helps China to keep it currency's course invariable and allocate it products all over the World. And the third cause is the Chinese population or "Human capital". In one hand, Chinese is very big and this makes very big problems while allocating resources. But in other hand, this enables China to to control the particular part of the World Market. 
 
The main target of Chinese economy is to achieve a 9% Growth in 2010. But it also must be considered that, Chinese population grows by 1% each year and this is about 13.000.000 people.  This index must be treated, because GDP growth isn't the real index of Economic Growth. 

"How to preserve the Economic Growth high if GDP decreases?"  - this is the main question, that China must solve.

But nowadays, main target of Chinese Economic Policy is to rank the second place in the World after USA. Even China competes with the USA. I had read in a recently published article, "The USA is going on losing to China!" But it's still unknown if it will be second, because the economic system is rich in unexpected surprises. 

That's all. Thank you for attention!