This would mean the government increasing national debt just like it was in Greece.The slowing economic growth in Russia to 1.6 percent in the first quarter of 2013 has been connected to various factors including falling investment, private consumption and weak exterior demand, Vedomosti daily reports.However according to Ivan Chakarov, an analyst with Renaissance Capital quoted by the newspaper, the slowing pace of economic growth in Russia is mainly due to the so-called middle-income trap. It is common for developing economies, when a country, which attains a certain income, gets stuck at that level as it begins losing its main advantage – low costs.The analyst claims the middle-income trap strikes a country when annual per capita GDP reaches $16,000. In Russia this figure is slightly above that at $16,016. The analysts added that Russia is the first BRICS state to enter the middle-income trap. Similar economic situations were seen in the Western Europe’s economy in the 1970s, in South Korea in 1995 and in Singapore and Hong Kong at the beginning of the 1980s.In his comments Chakarov refers to the study by the US National Bureau of Economic Research, which has come to a conclusion that countries falling into the trap lose two thirds of their growth speed. This means that Russian economic growth will slow to 1.6 percent of GDP against 4.3 percent in 2010-2011. The analyst says that in the upcoming decade the Russian economy won’t be able to expand faster than 2 percent per year. In his opinion this may force the Russian government to increase the national debt and make Russia “the next Greece”.Greece has reached the annual per capita GDP mark of $16,000 in the 1980s. Over the next decade unemployment jumped two and a half times, while inflation increased one and a half times. While in the beginning of 1980s the national debt of Greece totaled 20 percent of GDP, by 2012 it has made 170 percent of GDP.Renaissance Capital forecast the middle-income trap for Russia in November last year. Back then the company estimated the state’s chances to avoid this scenario at 60 percent, noting however that the government would have to take a series of economic reforms. Russia has entered the phase of economic slowdown since the beginning of last year. By the end of 2012 GDP added 3.4 percent against 4.3 percent in 2011. In the first quarter of 2013 Russian economy grew by just 1.6 percent. The slowing pace of economic growth forced the Russian Ministry of Economic Development and international organizations including the World Bank to revise their forecasts for Russia economic development in the coming years. In April the Russian Ministry of Economic Development said that if no urgent measures are taken by the government Russia might fall into recession by the fall. Russian national debt currently accounts for 10 percent of GDP. … Read More
Looming Health Crisis: Wireless Technology and the Toxification of America
A major health crisis looms that is only hastened through the extensive deployment of “smart grid” technology. … Read More
Sweden won’t ban drinking after accidents
The government won’t forbid Swedes from drinking after a traffic incident, even though the after-the-fact alcohol consumption means they may shirk charges of drunk driving. … Read More
"Dead in five years": The reports of the tablet’s demise are greatly exaggerated
There are wildly differing viewpoints on whether or not the tablet is on its way out, as you might guess. One perspective is that of the smartphone taking over what the tablet does; which is basically content consumption and creation, albeit the latter on a more limited scale than, say,… … Read More
Here’s how to change the world
“How to Change the World” takes as its modest premise the idea that everyone is capable of creating massive, global change — if only we start small and set manageable goals. It’s just like quitting smoking!The book’s author, British journalist and life coach John-Paul Flintoff, has some experience in this area: for his last book, “Sew Your Own,” he learned to make all his own clothes. This allowed him to opt out of the unethical labor practices of the big clothing companies, and also gave him something to do with an old sewing machine. He reports that shirts are his favorite things to make.“How to Change the World” is different from “Sew Your Own” in that it doesn’t offer a roadmap for a particular kind of change — instead, Flintoff invites us to imagine what kinds of change we’d like to make, and suggests some ways to go about it.For example, Flintoff tells a story about how he got very worried about global warming and decided the only solution was for everyone to grow their own produce. It wasn’t enough to just change his own habits — everyone would need to pitch in to make a dent in carbon consumption. He wanted to start with the people living in his section of London, but rather than harangue his neighbors, Flintoff devised a plan.Continue Reading… … Read More
Don’t be fooled by today’s economic growth report
As expected, the economy grew more quickly at the beginning of this year than at the end of 2012, according to this morning’s GDP release. Real GDP was up at a yearly rate of 2.5% over the first quarter, compared to a mere 0.4% in the prior three months.But only slightly beneath the surface, the report showed continuing weaknesses in the US economy and, consistent with the unexpectedly weak March jobs report, hints at another softening of demand in recent months. Expectations were for growth above 3% but disposable income, a critical driver of growth in our 70% consumption economy, fell sharply, down 5% in real terms, partly due the loss of the payroll tax break.The two main factors propelling the economy forward last quarter were firms restocking their shelves (inventory build-up adds to GDP growth) and strong spending by the stalwart American consumer, drawing not on their income but on their savings. Since the inventory component is both highly volatile and less indicative of current demand, it’s useful to look at final demand, essentially GDP without the inventory build-up. This measure grew 1.5% in real terms in the first quarter, down from 1.9% in the last quarter. Again, this less volatile measure tracks demand more closely than the headline number.Continue Reading… … Read More
US sailor in UAE subdues knife-wielding attempted rapist
The victim, 28, was on a 24-hour leave in January when her ship was berthed in a port in Sharjah, a city that is part of the Dubai metropolitan area. She spent most of her free time shopping at the Mall of the Emirates, and was on her way back to the ship.“I was in a rush as my permit was about to finish so I took the defendant’s bus as it had a sign ‘for passenger transport,’” the woman told the court, according to the Gulf Times. “Ten minutes later he changed his route and stopped.”The driver, 21, parked the bus in a dark and quiet area, approached her as she was sitting in the back seat, and propositioned her for sex, prosecutors said. When she turned down his advances, he took out a knife and sexually assaulted the sailor, threatening to kill her and trying to rip her clothes off.A fight ensued in which the American woman wrestled the weapon from the attacker even as he was biting her hand, and broke the knife in two, the National reported. She got a stranglehold on the man’s neck with her legs, forcing him into submission, and fled shortly after.The sailor reported the incident to her superiors. Dubai police arrested the driver the next day as he was sleeping at his home. Prosecutors charged the man with attempted rape, assault, threatening to kill and consumption of alcohol.At the court hearing, the defendant confessed to being drunk on the day of the alleged attack, but denied remembering anything about the event. “It is true that I consumed liquor. I was very drunk so I couldn’t remember what I did on the bus,” he told the judge.It is unclear whether the man will face punishment for DUI.The court ordered that the defendant be examined to confirm his age after he failed to provide a birth certificate; the suspect is reportedly a Pakistani national. The trial will adjourn on May 1. … Read More
