Monday, December 30, 2019

The Wages Of Whiteness Race And The Making Of The...

In The Wages of Whiteness: Race and the Making of the American Working Class, David Roediger examines the intensification of American racism in the white working classes in antebellum America. He maintains that, impelled by republican doctrine, the pressures and anxieties of industrialization and the longing for a preindustrial past, white workers constructed a notion of â€Å"whiteness† and of white supremacy in opposition to black slavery that characterized black slaves as their inferiors. Therefore, Roediger explains how whiteness was formed as a tragic response to industrialization and the subsequent anxieties of the white working class. Despite the influence of Marxist theory on his own historical development, Roediger informs the reader that material and class considerations are not sufficient to explain race and racism. While historians such as Barbara Fields or Oliver Cromwell Cox emphasized the naturalization of whiteness and top-down racism, they have ignored the age ncy of the white working class males themselves. Instead, Roediger draws upon modern labor history and upon the work of W.E. Du Bois’ theory of the â€Å"wages of whiteness,† to assert that whiteness formed as a tragic response to industrialization and the concomitant anxieties of the white working class. Roediger begins by examining the origins of racism in pre-Revolution America. Noting that, while white supremacism was not universal, racism did exist. The characterization of Native Americans as lazyShow MoreRelatedWhiteness and Citizenship971 Words   |  4 PagesCaptain Ahab’s eulogy of whiteness shows that the word â€Å"white† implies more than a chromatic description. â€Å"White† is an untenable perfection that has haunted the American psyche since colonial times. The idea of â€Å"white spiritual superiority† can only be enforce by a terrorist politico-legal system, based on brutalizing the non-whites and creating a national fantasy. A national fantasy defined by Lauren Berlant as the means â€Å"to designate how national culture becomes local through the images, narrativesRead MoreWhiteness as a Field of Study2712 Words   |  11 PagesCaptain Ahab’s eulogy of whiteness shows that the word â€Å"white† implies more than a chromati c description. â€Å"White† is an untenable perfection that has haunted the American psyche since colonial times. The idea of â€Å"white spiritual superiority† can only be enforced by a terrorist politico-legal system, based on brutalizing the non-whites and creating a national fantasy. A national fantasy defined by Lauren Berlant as the means â€Å"to designate how national culture becomes local through the images, narrativesRead MoreEssay on How White People Became White1043 Words   |  5 Pagesargue that the definition of what constitutes a race is something that is arbitrarily decided by society. Additionally, what it means to classify yourself or someone else as a particular race carries social meaning. Sociologist claims that race as a biological concept does not exist. However, the consequences of classifying someone as a certain race as certainly real enough. It needs to be said, though, that not every discipline agrees that race is merely a social cons truct. Forensic psychologyRead MoreAmerican Culture, English And American Literature, And English, By Dr. Neil Foley1308 Words   |  6 Pages Holding degrees in American Culture, English and American Literature, and English, Dr. Neil Foley specializes in the evolving components of race and social identity in what he calls the Borderlands: Mexico and the American West. The White Scourge: Mexicans, Blacks, and Poor Whites in Texas Cotton Culture bridges the gap between the narratives of two Borderlands histories, that of African-Americans and southern history, and that of Mexican-Americans and southwestern history. Looking at Texas, andRead MoreA More Perfect Union : The American Dream Essay1270 Words   |  6 PagesOn eighteen century America, the founding fathers classified the American Dream as an idea that everyone living in the United Stated had the chance to achieve the Jeffersonian idea of life, liberty, and the pursuit of happiness. At the time the American Dream was suppo sedly possible to anyone who had the willingness to work hard and honestly. To the founding father s anyone who would stand by this saying would either achieve success or be emulated for their efforts, even those who did not achieveRead MoreWhite Privilege And Black Privilege1389 Words   |  6 Pagesother races; it also discriminates against them. This is well illustrated by the history of white privilege in America and how it changed over time (Nkomo Ariss 2013) and how white privilege is used to benefit white people (Blum n.d). Without white privilege, people would be equal and perhaps live in a more peaceful society. Therefore, if white privilege has been around for years and continues to be an issue in America and all around the world, than without educating the population and making themRead MoreThe Immigrants And Their Struggles Faced By American Immigrants Essay2143 Words   |  9 Pagesreviews and intensive interviews, the struggles faced by American immigrants are disco vered. However, the goal is to explore the various acts of discriminations and look at how some immigrants have preserved. Introduction From evidence based practice, it has been proven that racism and discrimination is evident in our society. As defined by Webster’s Dictionary, â€Å"racism is the poor treatment or violence against people because of their race; and discrimination is the unfair treatment of a personRead MoreRacism and Identity1122 Words   |  5 PagesAnonymous Race and Identity 512 17 February 2013 Short Paper: 2 One of the main social and political tasks of 1830’s America was to define what it was to be a free American. Challenged by reformist ideals â€Å"purifying† the land and the Industrial Revolution cementing capitalism into the framework of the nation’s economy, Black people and Indians found themselves pushed out of the national identity. Much of this struggle can be witnessed through an analysis of American theater at the time. StereotypicalRead MoreRacism Is The Primary Determinant Of Human Traits And Capacities Essay1448 Words   |  6 PagesRacism is a belief that race is the primary determinant of human traits and capacities. That racial difference produce an inherent superiority of a particular race and exists when one ethnic group or historical collectivity excludes, dominates, or seeks to eliminate another based on differences (The Historical Origins1). Racism has been around and everywhere for a long period of time. It is perpetuated and reproduced tod ay in modern life and anthropologists can combat racism. Historically racismRead MoreBeauty And Its Effect On Society3337 Words   |  14 Pagesthe white beauty ideal – possessing pale skin, long, straight hair, and chiseled facial features – displays the prevailing influences on societal calculations of human value. According to Cheryl Harris, beauty operates with the conception that â€Å"whiteness is property† (ibid). Furthermore, in this economic context, women’s bodies are manipulable commodities objectified for consumption. The entire beauty industry is built on the foundational principle that women should alter their bodies through makeup

Sunday, December 22, 2019

College Dropouts Essay - 929 Words

Many high school students succeed with a little leniency through their four years. The transfer from high school to college becomes overwhelming and a struggle for some. For students do not comprehend the importance of changing more than their location during the transition. A student must be psychologically, physically, and emotionally mature to pursue college and not venture into a point of no return. Dropping out of college makes the outlook of the conversion difficult to acquire. Individuals should take their time on deciding which college and/or university is the best match for them. There are various reasons that cause persons not to prosper. Issues that individuals may come upon might leave a lifelong scar. Matters such as these†¦show more content†¦Often students take high school for granted; consequently it shows when they reach college. For example, in high school, teachers may accept late work, tardiness, and continuous inappropriate behavior. The college classe s that they will have to face will not tolerate such things as this. Preparing for the work load and lifestyle is the two most important objectives to grasp early. Furthermore, many people want to progress in their work, some simply want to gain in depth education on the particular field they want to achieve. However, individual’s bosses do not always understand. Having a job while in college is a huge demand. Depending on whether students have families or not will put them in a tight position. Ultimately the demand for both will result in them dropping out of college. Mark Kantrowitz says, â€Å"Many students who drop out of college has to work while enrolled in college (Why Do Students Drop out of College Kantrowitz). He follows up by saying that â€Å"they often find it very difficult to support themselves and their families and go to college at the same time (Why Do Students Drop out of College Kantrowitz). In most homes, ones family always comes first no matter what. For example, the desired accomplishments of the mother are not greater than the needs of her children. School work and the work one puts into he/shes job alone are ha rd to manage. Having toShow MoreRelatedThe Popularity Of The College Dropout1377 Words   |  6 Pagesâ€Å"The College Dropout† hit the airwaves. An album that would go on and mold so many artists of today’s rap scene. Since then we have seen Chicago’s beloved Kanye West, the â€Å"I miss the sweet Kanye, chop up the beats Kanye† slowly transform into the egocentric Yezus persona that we have amongst us today. Not to say that Kanye has stopped making his all-world beats and delivering Grammy worthy albums. He has just evolved. And with his evolution, a void was left in rap as we knew it. â€Å"The College Dropout†Read MoreCollege Dropout Rate And Evidence1332 Words   |  6 PagesCollege Dropout Rate Evidence To Support You re done, you have dropped out of college and there s nothing you can do. Congratulations, you are now in the 1.3 million that also contributed to this statistic. The college dropout rate varies based upon a wide variety of problems college students encounter. Now your reasons for dropping out? There could be many, some of which you couldn t control. However, there are some that directly contribute to the dropout rate; that you could have. We’ll beRead MoreEssay on The Dropout Rate In Americas Colleges590 Words   |  3 Pages The Dropout Rate in Americas Colleges In 1992, the dropout rate in Americas colleges was almost twenty-four percent! Therefore meaning that nearly one out of every five students that head off to college in the fall, drop out by the first semester. In addition, about one out of every three remaining students do not return for their second year. This statistic may seem outrageous, however, it is true. Furthermore, a study has shown that if the dropout rate continues at its current pace, it willRead MoreCauses And Effects Of College Dropouts954 Words   |  4 PagesCauses and Effects of College Dropouts Life is believed to be easier for people with higher degrees than for those without higher degrees. Hence, it is the joy of parents to see their children admitted into a higher institution. With the high cost attached to attending a four year university, most students prefer to attend community colleges. Community colleges provide the same quality of education offered by universities for the first two years at a lower cost which help students reduce debts towardRead MoreEssay The African American College Dropout Rate477 Words   |  2 PagesThroughout the years the dropout rate of African Americans has increased and decreased. Many people look at black students as if they sit there and do not learn anything at all but we do try. Some may think that the only reason the black students drop out is because their grades, but that’s not true. Some dropout because of financial pressure, health problems, mental, emotional, and social issues, and may not have family support. â€Å"Blacks have been historically been under represented for the pastRead MoreEssay on Factors to College Dropouts827 Words   |  4 Pagesmany high school graduates who are enroll in college find themselves dropping off school in the first year of their college education. Admittedly, President Barack Obama’s administration knows this issue and has decided to even put out a $380 million educational budget for 2010 to assist students at risk of dropping out and to encourage high school graduates to earn an associate or bachelors degree in college. Today, college dropouts in American colleges have been steadily increasing due to inadequateRead MoreCauses Of High Dropout Rate Among Low Income College Students1270 Words   |  6 PagesParas Rayamajhi English 111/ 1904 Mrs. Jones September 29, 2014 The Causes of the High Dropout rate among Low-Income College Students To dropout, in simple words, means leaving school or any institution before the completion of a course due to some specific reason or necessity. There is a significant dropout rate at colleges which include household cultural and financial problem, where expectations of college are not met, and where financial aid is insufficient A household s cultural and financialRead MoreCauses And Disadvantages Of College Students Dropout809 Words   |  4 Pagesthe work force, military, or go to college. Once someone decides their future goals and it’s to go to college they don’t realized how much harder it can be compared to high school. They don’t think about how there is a possibility for them to drop out, if they don’t give college their best shot. Some reasons of college students dropping out is trying to balance work and school, academic difficulties, and financial problems. One reason students drop out of college is not being able to balance workRead MoreI Didn t Have High Expectations For College Dropout950 Words   |  4 PagesIntro Essay â€Å"Essay by a soon to be College Dropout† I didn’t have high expectations for college. I looked at the reality of what my experience would be. I was now being forced to move out of a town where I knew every single crack in the road to a town where I didn’t even know where the grocery store was. On top of that, I went from a school of about five-hundred students to a university of roughly 20,000, so obviously new people were going to affect my week in a big way. All of this would have beenRead MoreCOLLEGE DROPOUT1013 Words   |  5 Pages Students Just Want to Have Funds People assume students are young people who attend college to become adults, not knowing that most students already carry on adult-like responsibilities. Nowadays, young people live on their own, without their parents’ help, and cannot afford to go to school and pay rent, as well. During my high school years, I expected to be balancing university activities with homework and dorming, not expenses and low-paying jobs. According to a New York Times news conference

Saturday, December 14, 2019

Death Penalty for the Mentally Insane Free Essays

Mental illness is defined as â€Å"any various conditions characterized by impairment of an individual’s normal cognitive, emotional or behavioral functioning, and caused by social, psychological, biochemical, genetic or other factors, such as infection or head trauma† (Fiack). The mentally insane have a brain condition which directly effects wellbeing and actions. Mental insanity can be described as an incomplete development of the brain which can have an impact on conduct and social effectiveness. We will write a custom essay sample on Death Penalty for the Mentally Insane or any similar topic only for you Order Now Congressman should not allow the death penalty on the mentally insane because giving the death penalty to the mentally insane is an abomination. Congressmen might consider issuing the death penalty to the mentally insane because all punishments should be equal no matter the individual, but the mentally insane are not always in control of their actions and they are not always in a stable condition in which they know what they are doing. A troubled history or childhood can provide a diminishing value (â€Å"Court†). Not all mentally insane are brought up in stable environments which could lead to rage and violence. The rage and violence cannot be controlled by the mentally insane patient because do to over exposure to abuse they rely on the rage and violence for self-defense. Over thirty percent of male and eighty percent of female mentally insane inmates have reported sexual or physical abuse (Fiack). A vast majority of the mentally insane have experienced some sort of abuse which may cause mixed emotions and instability. This instability causes the mentally to go crazy and take everything out on the nearest guardian they see and the mentally insane should not be penalized for being put into a state of craziness. The mentally insane receiving the death penalty is an abomination. All abominations have similar characteristics. Like crime in the United States, inflicting the death penalty on the mentally insane is a negative characteristic of the judicial system. Every abomination has a consequence. Jail might be a consequence considering the severity of the offense, such as murder. America sells all types of guns and like enforcing the death penalty on the mentally insane, guns are fatal. Guns are the causes of many deaths and just like the death penalty, many lives are taken away from innocent and mentally insane civilians. Like gangs, the death penalty of the mentally insane affects everyone and is not community oriented. Gangs are a threat to everyone in a community and the death penalty is a threat to every citizen of the United States. Using the death penalty to kill the mentally insane is not for the community and ruins the closeness and bond a community shares among the children and adults. Smuggling in weapons, illegal narcotics and the use of drugs is a disgrace to the youths of America just like the use of the death penalty on the mentally insane. The death penalty is an abomination because in the last thirty years, more than sixty people with a mental illness have been executed (Fiack). Putting these mentally insane to rest because of an action they probably did not have control over is completely unnecessary and un-just. If Congressmen wish to punish a mentally insane person they could place them in an insane asylum to learn to control their anger and violence towards others. A consequence now exists because of all the insanity pleas within the last thirty years. The â€Å"M’Naughten Test† is now given to show if the defendant was unable to understand what he or she was doing and if there is a substantial lack of capacity to understand ones conduct (Fisanck). If the mentally insane patient can pass this test and the test clearly shows they had no control of their action and did not recognize the crime they were committing, giving them the death penalty would be unlawful. The court gave Darrell W. Ferguson the death penalty, an inmate with an apparent unclear thought process. The courts rejected the claim, not thoroughly considering mental health issues (â€Å"Court†). Although abominations are not community oriented, a group called â€Å"Murder Victims’ Families for Reconciliation† travels around North Carolina helping raise awareness and trying to gain support to get a bill passed against the death penalty of the mentally insane (â€Å"Murder†). The issue with bringing a mental illness case into court is the jury members do not always understand how the brain is affected by this disease. Jury members with a misunderstanding of mental illness cause the mentally insane to die on death row because they do not realize the challenges of raising a mentally insane child or grown adult nor what they are capable of without the patient even being aware of his actions. As a result, the jury tends to lean more towards a guilty verdict convicting the mentally insane before truly understanding how a diseased brain works. This process can be unfair to the victim and if the jury is not clear of the mental illness the defendant has. To solve such a problem, each individual should be informed of the exact mental illness present before the court is in session or should not be a part of the jury. Congressmen should not promote the death penalty of the mentally insane because the death penalty of the mentally insane will lead to public outcry and angered families, disassembly of moral value, and will aid in the first steps to the disintegration of human life and self-worth. Over thirty years ago John Hinckley shot Ronald Regan in the chest but was not given the death penalty because he plead insane (Vatz). Instead of giving him the ultimate punishment there is to offer he was sentenced to a mental hospital, which is what happens in most cases of the mentally insane. â€Å"In 2006, The American Bar Association passed a resolution calling for the exemption of those with serious mental illness from imposition and execution of the death penalty† (Fisanck). Congressmen should present a law to protect the mentally insane in death penalty situations. Works Cited â€Å"Court Reject Mental Health Claims Of Inmate Who Sought Death Penalty. † Mental Health Law Report. 66, June 2006. Gale Power Search. Web. 6 October 2011. Fiack, Shannon. Mental Illness and Criminal Behavior. Greenhaven Press, 2009. Gale Opposing Viewpoints. Web. 6 October 2011. Fisanck, Christina. Crime and Criminals. Greenhaven Press, 2010. Opposing Viewpoints. Web. 6 October 2011. â€Å"Murder and Mental Illness: Group Supports Removing Death Penalty. † Wilson Daily Times. 11 May 2011. Gale Opposing Viewpoints. Web. 6 October 2011. Vatz, Richard E. â€Å"The Insanity Excuse and Retrograde Thinking. † USA Today. March 2011; 66-67. SIRS Issues Researcher. Web. 6 October 2011. How to cite Death Penalty for the Mentally Insane, Essay examples

Friday, December 6, 2019

School Is Cool free essay sample

Usually, when we talk of schools, the first thing that comes to our minds is loads of homework, boring lectures and the pressure of exams. The very thought of going to school makes us yawn. It seems that life would have been so very good if there were no schools. We would be free to spend our time as we wish without our mothers shouting You are still watching T. V.? Go to your room and study’. Until a few months ago, I was also among the group of people who think so. But now that I have stepped into my last year of school i. e. class 10, my lookout towards school seems to have changed completely. If we sneak into the flashback, most of us have spent or most happy and enjoyable moments at school. Hanging out with friends, pulling each other’s legs, laughing and making fun. Where else, but at school can we do this? This is my thirteenth and last year in my school. We will write a custom essay sample on School Is Cool or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Down all these years, I have developed a feeling of attachment towards my school, the teachers, the staff, the school building, the classroom, and most importantly my fellow students. It will be very saddening to leave all these behind. But we have no other option and have to move on. Maybe, students of the younger classes who read this will think that I am stupid. But I am sure that when they come to this stage, they too, will experience the same thing. Really, there is no place like school. School is really cool.

Thursday, November 28, 2019

Russian Financial Crisis in 1998 free essay sample

These events led Russia’s international reserves to fall by $13. 5 billion and to the dissolution of the Kiriyenko government. One month later, Standard and Poor’s downgraded its rating of the Russian ruble to â€Å"CCC,† the lowest possible Standard and Poor’s rating, for its long-term outlook and â€Å"C† for short-term outlook. These events signaled the onset of the Russian financial crisis, which had its roots in the fundamental problems in the Russian economy but was triggered in part by the continuing financial crises in emerging markets in Asia and around the world. What were the causes of this crisis and near financial collapse? What are the so-called â€Å"experts† saying about the crisis and its spillover effects on other ENI countries? What are the possible courses of action that could minimize the adverse effects of the crisis and reduce the likelihood of future occurrences? The purpose of this paper is to summarize the divergent viewpoints expressed by leading scholars and practitioners in the field of international development and finance. We will write a custom essay sample on Russian Financial Crisis in 1998 or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page By surveying the literature, it is apparent that the Russian crisis, and to some extent the Asian crisis that preceded it, was caused by a combination of internal structural problems in the domestic economy (especially in the banking and fiscal systems) and growing problems with the international financial system that permits excessively rapid outflows of capital. However, there is significant divergence of opinion among scholars and practitioners as to which set of factors, those related to the Russian economy or those related to the international financial system, are the cause of the crisis. In addition to the differences of opinion as to the causes of the crisis, disagreement exists as to the remedies to the crisis. As a result, each group has recommended its own set of policy prescriptions. The first section of this paper discusses the divergent opinions on the causes of the crisis. The second section highlights the economic, social, and political effects of the crisis. The third section provides a list of the proposed remedies offered by the divergent camps. The final section summarizes the main findings and includes a timeline of the Asian and Russian crises. Divergent Opinions: Causes of the Russian and Global Financial Crises The divergent views regarding the causes and cures of the Russian and Asian financial crises can be broken down into two camps: (1) those that believe that the crises derived primarily from problems in the international financial system and (2) those that place blame primarily on the structural problems within the countries themselves which left them vulnerable to capital flight and other problems arising from external financial instabilities. Members of the first group tend to be critical of the IMF and other international financial institutions, saying that these institutions played a role in creating and exacerbating the financial crises rather than helping to reduce the negative impact, although the â€Å"fix the system† critics do agree that each of the crisis countries did suffer from internal structural problems as well. The second group of analysts—the â€Å"fix the countries† group—believes that the international financial system and the approach of the IMF in assisting these countries are more or less working, and that the current crises derived from a lack of sufficient regulatory and fiscal reforms in Russia and Asia. â€Å"Fix the Global Financial System† Critics Jeffrey Sachs. According to Sachs, â€Å"the Treasury and the IMF have driven a large part of the developing world into recession†¦And the Brazil case makes absolutely clear that the first step is not to defend overvalued currencies. The punishing cost of this is overwhelmingly high. This is a lesson that the IMF and the Treasury have continued to ignore† (Uchitelle 1999). In his view, the IMF exacerbated the crisis by demanding tight fiscal and monetary policies. He claims that perceiving the crisis to be one of balance of payments, rather than a financial panic, the IMF chose an approach similar to the mistaken policies implemented by the United States in the early stages of the Great Depression of the 1930s (Radelet and Sachs 1999). Furthermore, Sachs insists that since high interest rates and austerity measures are bringing disaster to many emerging markets, interest rates should be kept down to encourage economic activity and allow exchange rates to find their own equilibrium level. He does not attribute the devaluation of exchange rates as a cause of the crisis in Russia, nor does he believe that a currency board arrangement would have saved the country. He states that â€Å"when pegged rates become overvalued, [this] forces countries to deplete their foreign exchange reserves, in a vain defense of the currency peg. † In his view, it was the combination of broken promises (i. e. , the ruble will not be devalued) and depleted reserves that left the country vulnerable to panic (Radelet and Sachs 1999). He believes that a growing economy is more likely to restore investor confidence than a recessionary one burdened by high interest rates (Uchitelle 1999). An additional contributing factor to the crisis, according to Sachs, was â€Å"moral hazard. Investors clearly had doubts about Russia’s medium-term stability, and talked openly about the risk of collapse and about the safety net that they expected the IMF and G-7 to provide to Russia. Knowing that these international lenders would rescue Russia and guarantee investments in the event of a financial meltdown in Russia, international investors tended to underestimate the r isks—and hence tended to over-invest in Russia. Russia was viewed as â€Å"too big to fail,† and this led to an inflow of capital that was larger than appropriate for the actual level of risk (Radelet and Sachs 1999). George Soros. As one of the world’s most successful international investors, an important philanthropist with millions of dollars invested in democracy projects throughout the ENI region, and a public intellectual who has proposed that sweeping changes be made to the international financial system, George Soros is a key figure in the Russian and Asian financial crises. His disparate roles often create a conflict, as Soros-the-intellectual appears to many an advocate of the regulation of international capital flows to prevent potential damages from speculations by people like himself (Frankel 1999). Soros was Russia’s biggest individual investor prior to the crisis in August 1998. He held a $1 billion stake in Svyazinvest, a telecommunications concern, and millions in stocks, bonds, and rubles. In mid-August 1998 Soros sprang into action to try to stop the crisis. He contacted the U. S. Treasury department, influential former members of Yeltsin’s administration, a nd published a letter in The Financial Times saying that the meltdown in Russian financial markets â€Å"had reached the terminal phase† (O’Brien 1998). In his letter, Soros called for immediate action—a devaluation of the ruble and institution of a currency board—that would have eliminated the Russian central bank’s discretion over monetary policy. Not realizing that a letter from Soros would be perceived as coming from Soros-the-investor instead of Soros-the-intellectual, his letter helped to prompt a panic in Russian markets, where investors believed Soros was shorting the ruble. Soros’ funds ultimately lost $2 billion in Russia as a result of the financial crisis there. According to his testimony to the Congressional Committee on Banking and Financial Services on 15 September 1998, Soros pointed out that â€Å"the Russia meltdown has revealed certain flaws in the international banking system which had previously been disregarded† (Soros 1998a). These flaws can be summarized as follows: (1) Banks engage in swaps, forward transactions, and derivative trades among each other— in addition to their exposure on their own balance sheets—but these additional transactions do not show up in the banks’ balance sheets. So when Russian banks defaulted on their obligations to western banks, the western banks continued to owe their own clients. As these transactions form a daisy chain with many intermediaries, and each intermediary has an obligation to his/her counterparty, no simple way could be found to offset the obligations of one bank against another. As a result, many hedge and speculative funds sustained large losses, and had to be liquidated. This systemic failure led most market participants to reduce their exposure to emerging markets all around, and this caused bank stocks to plummet and global credit market to enter a crunch phase. 2) As individual countries attempt to prevent the exodus of capital from their economy by raising interest rates and placing limits on foreign withdrawal of capital (as in Malaysia), this â€Å"beggar-thy-neighbor† policy tends to hurt the other countries that are trying to keep their capital markets open. (3) Another â€Å"major factor working for the d isintegration of the global capitalist system is the evident inability of the international monetary authorities to hold it together†¦ The response of the G7 governments to the Russian crisis was woefully inadequate, and the loss of control was kind of scary. Financial markets are rather peculiar in this respect: they resent any kind of government interference but they hold a belief deep down that if conditions get really rough the authorities will step in. This belief has now been shaken† (Soros 1998a). He also adds that â€Å"†¦financial markets are inherently unstable. The global capitalist system is based on the belief that financial markets, left to their own devices, tend toward equilibrium†¦This belief is false† (Soros 1998a). 3 His proposed cure is to reconsider the mission and methods of the IMF as well as replenish its capital base. Additionally, he’d like to see the establishment of an International Credit Insurance Corporation to help create sound banking systems, which would be subject to close supervision by the international credit agency, in developing countries (Soros 1998b). His last recommendation is to reconsider the functioning of debt-swap and derivative markets (Soros 1998b). Academia and Other Nongovernmental Organizations. Initially, Paul Krugman, an economist at MIT, argued that problems with the Asian economies, combined with corruption and moral hazard, led to wild over-investment and a boom-bust cycle. More recently, however, Krugman explains that such weaknesses cannot explain the depth and severity of the crisis, nor the fact that it occurred in so many countries simultaneously, and instead he places the blame on financial panic and overly liberalized international and domestic financial systems (Radelet and Sachs 1999). According to Krugman, â€Å"all short-term debt constitutes potential capital flight. † The need to fix structural problems in individual countries should not stand in the way of broader macroeconomic measures, in particular those designed to stimulate growth in hard times. He states that â€Å"it is hard to avoid concluding that sooner or later we will have to turn the clock at least part of the way back. To limit capital flows for countries that are unsuitable for either currency unions or free floating; to regulate financial markets to some extent; and to seek low, but not too low, inflation rather than price stability. We must heed the lessons of Depression economics, lest we be forced to relearn them the hard way† (Uchitelle 1999). In other words, the global financial system is largely to blame for the recent crises. Fix the Countries† Analysts IMF. According to the IMF, Russia’s financial crisis was brought on by a combination of (1) weak economic fundamentals, especially in the fiscal area; (2) unfavorable developments in the external environment, including contagion effects from the Asian financial crisis and falling prices for key export commodities such as oil; and (3) its â€Å"vulnerability to changes in market sentiment arising from the financing of balance of payments through short-term treasury bills and bonds placed on international markets† (IMF December 1998). The IMF had pointed out in May 1998 that Russia had made insufficient progress in improving budget procedures and tax systems, establishing competent agencies to collect taxes and control expenditures, clarifying intergovernmental fiscal relations, and ensuring transparency at all levels of government operations. By August 1998, investor confidence in the ability of Russian authorities to bring the fiscal system under control began to decline, immediately leading to the financial crisis, after the Duma failed to approve fiscal measures planned under the augmented Extended Fund Facility (EFF). These measures were aimed at reducing the fiscal deficit, implementing new structural reforms addressing the problem of arrears, promoting private sector development, and reducing the vulnerability of the government’s debt position, including a voluntary restructuring of treasury bills. 4 The extent to which the Russian crisis is attributable to contagion effects from the Asian crisis instead of to internal problems stemming from insufficient reforms in fiscal management is difficult to determine. According to the IMF’s May 1998 assessment of spillover effects from the Asian crisis, Russia’s stock market was seriously hit by the crisis and by early spring 1998, stock prices in Russia had indeed not yet fully recovered from the lows reached in fall 1997. The Russian ruble had also been hit hard and the central bank had to intervene heavily in the foreign exchange market just to keep the currency within the new exchange rate band. As international capital fled from the risky Asian economies in the fall and winter of 1997, investors who were similarly wary of risky investments in the transition economies began to reduce their exposure to Russian and other ENI markets. Nevertheless, emerging market investors quickly began to differentiate between high- and low-risk countries. By first quarter 1998 the Czech Republic and Poland had become relatively attractive to investors, receiving considerable short-term capital inflows and by January 1998 Standard and Poor’s credit rating for Hungary had greatly improved. Russia and Ukraine, on the other hand, continued to suffer from structurally weak financial sectors and an over-dependence on short-term borrowing. To attract investment back into Russia, the Russian government had to raise interest rates in order to offer yields well above pre-crisis levels to cover for the increased perception of risk. As a result, foreign investment had started to flow back into Russia by early 1998. According to the IMF, differences in the severity of interest rate and equity price movements among the transition countries illustrate the importance of appropriate domestic macroeconomic and structural policies to limit vulnerability to international financial crises. In Russia and Ukraine, financial sector weaknesses and a high dependence on government borrowing, in addition to chronic revenue problems, especially in Russia’s case, explain why these two countries were more affected by the Asian crisis than the Central and East European countries. In other words, the Asian crisis exposed Russia’s underlying structural problems and made the need to address them more apparent. The IMF continues to assert that the financial crisis in Russia was a crisis of the state. Nearly a year and a half ago, Michel Camdessus, Managing Director of the IMF, claimed that the Russian state â€Å"interferes in the economy where it shouldn’t; while where it should, it does nothing. Camdessus pointed out that the Russian state needs to make progress in promoting an efficient market economy through transparent and effective regulatory, legal, and tax systems. At present, the IMF still supports these recommendations (IMF November 1998). Existence of a Virtual Economy. Clifford Gaddy of the Brookings Institution and Barry Ickes of Penn State University argue that although the immediate causes of Russia’s financial crisis are the large budget deficit, resulting from nsufficient revenue collection, and an inability to service the debt, especially short-term dollar liabilities, there are more fundamental problems with Russia’s economy. These problems stem from â€Å"illusions† regarding prices, wages, taxes, and budgets that permeate the Russian economy to such a great extent that the economy has become â€Å"virtual† rather than actual. This virtual economy 5 is derived from a public pretense that the economy is bigger and output more valuable than they really are. According to Gaddy and Ickes, the virtual economy primarily originated from the unreformed industrial sector inherited from the Soviet era, in which enterprises produced output that was sold via barter at prices that were higher than they would be if sold for cash. In general, these enterprises operate without paying their bills, as wages that should be paid to employees (but are not paid) become wage arrears, and required payments for inputs (which are also not paid) emerge as interenterprise arrears and payments through barter. In fact, Gaddy and Ickes assert, people make an effort to avoid cash transactions because they would expose the pretense of the virtual economy. They go on to state that although the virtual economy acts as a safety net for Russian society, it has serious economic repercussions since it negatively affects enterprise restructuring, economic performance measuring, and public sector reform (Gaddy and Ickes 1998). At this point, they argue that the West has two choices on how to help Russia. First, the West can concentrate on keeping Russia stable in the short term by bailing out the virtual economy, which will lead to further consolidation of a backward, noncompetitive economy and will guarantee the need for future emergency bailouts. The second option would be to refuse the bailout. The consequences of this option would be drastic—the ruble will lose its value, foreign capital will flee—but on the positive side, the Russian economic policy that is so addicted to borrowing would have to kick the habit as it found its supply of international credit cut off. They state that â€Å"denying Russia a bailout is not without risks. But bailing out the virtual economy is sure to increase those risks for the future† (Gaddy and Ickes 1998). U. S. Government. The U. S. Treasury Department points out that despite the many important reforms that have been carried out in Russia—including extensive privatization, price liberalization, and reduction of government spending—reforms in a few critical sectors have lagged behind, leading to the financial crisis. According to David Lipton, the principal problems include the failure to control the budget deficit and extensive government borrowing. The budget problems are a manifestation of the political struggle over the country’s economic direction and as long as these disputes over the proper role of government remain unresolved, he believes that budget difficulties and unnecessary government borrowing will continue unabated. He also argues that Russia’s high fiscal deficits have led to the country’s high interest rates since â€Å"Russias macroeconomic problem is fundamentally fiscal; interest rates are more properly viewed as a symptom of that problem, not a cause† (Lipton 1998). Lastly, he argues that the failure to build a favorable investment climate and adhere to the rule of law also helped to sow the seeds of the financial crisis (Lipton 1998). The Treasury Department also points to external factors that led to the crisis. According to Deputy Secretary Lawrence Summers, the Russian crisis was not inevitable. He avers that if the Asian crisis had not reduced confidence among emerging markets investors, and had the prices of export commodities (e. g. , oil) not fallen so dramatically—the August 1998 crisis might not have taken place (Summers 1999). Nevertheless, the crisis did occur because the Russian government attempted to pursue an enormously risky course of simultaneously 6 devaluing the ruble, imposing a debt moratorium, and restructuring government bonds in response to the external pressures (Lipton 1998). To avoid future crises, Summers points out that Russia needs a tax system that supports the government and legitimizes enterprises, which probably involves a new allocation of spending and revenues between central and regional governments. Summers, however, is also quick to point out that it is much easier to talk about what tax reforms need to be implemented than to discuss how the reforms can be accepted politically. He adds that bank restructuring is another area where reform is needed and that it should be done in a fair nd transparent way within a legal framework that makes current owners take responsibility for their losses before scarce public funds are used (Summers 1999). Russian Government and Nongovernmental Analysts. Yegor Gaidar, former prime minister of Russia, attributes the crisis to the combined continuation of soft budget constraints from the socialist period along with the weakening of previous administrative controls and government corruption, which led to the ban kruptcy of state enterprises. The early years of transition in Russia were marred by inefficient macroeconomic policy, weak budgetary and monetary constraints, and inflation that eroded budget revenues. Although later macroeconomic policy was more efficient and succeeded in controlling inflation, efforts to improve revenue collection or cut expenditure obligations have failed, leading to unsustainable deficits. The lessons learned here are that budget deficits should be reduced as quickly as possible, as inflation is also controlled, and the vulnerability of exchange rate regimes to potential crises should be addressed immediately (IMF 1999; Gaidar 1999). In terms of the current regime, Gaidar describes Primakov and his government as a â€Å"communist government in post-communist Russia,† because Primakov and his cabinet come from the â€Å"traditional Soviet economics establishment† and his post-crisis approach relies on strengthening and centralizing government control. According to Gaidar, the Russian government faced two possible paths to solve the crisis: (1) return to the approach employed in 1992–94, with soft monetary and budget policies, or (2) maintain a tight monetary policy, stabilize the ruble, and carry out fundamental budget reforms to allow the government to balance revenues and expenditures. The first path would lead to the return of high inflation rates, as the government relaxed its control over the money supply in an attempt to pay its debts, but the banks would benefit from the return of â€Å"cheap money† issued by the Central Bank. The second path would involve speeding up structural reforms, which would be good news for profitable enterprises but would mean painful consequences for unproductive enterprises—mostly firms in the industrial and financial sectors—as they would be allowed to go bankrupt if they could not compete in world markets. Both paths would be painful, Gaidar explains, but the first path of high inflation would also be inequitable, as the poorest layer of society tends to suffer most from increasing prices. Not surprisingly, Primakov chose to pursue a modified version of the inflationary approach, a sort of populist economics policy that had been implemented in many Latin American countries. The reason Primakov opted for this path, as Gaidar states, is because â€Å"in part, the lack of internal and external sources for financing after the 7 dismissal of the Kiriyenko government pushed [the Primakov government] toward choosing the inflationary variant† (Institute for Economics in Transition 1999). Andrei Illarionov, Director of the Institute for Economic Analysis in Moscow, while noting the IMF’s successes with respect to Russia, criticized the IMF for being too willing to compromise on Russian conditionality. Not one of the IMF programs developed in Russia, Illarionov claims, has been executed in full, as a result of the softening and revision of conditions in original agreements. He states that â€Å"decisions to provide financing for Russia, motivated by political rather than economic considerations, have given rise to the problem of moral hazard. As a result, the Russian government became spoiled after being granted unearned financial assistance, and policy became even more irresponsible than before (Illarionov 1998). Finally, Illarionov also criticizes the IMF for offering inappropriate policy recommendations to Russian authorities in two other areas: exchange rate and fiscal policies. The IMF program (mid-1998, pre-crisis) stipulated that the exchange rate policy should remain unchanged for the remainder of 1998, in order to preserve the low inflation rates, and prescribed that the Russian government should concentrate mainly on raising revenue rather than reducing expenditures. Although many poor 9 O c t 9 8 J u l 9 8 A p r 9 8 egaw muminim laiciffo J a n 9 8 O c t 9 7 .9991/20 ,PECER :ecruoS J u l 9 7 A p r 9 7 J a n 9 7 Dissatisfaction over the continuing problem of wage arrears led to an increase in strikes throughout the country toward the latter part of 1998; 1873 strikes were registered in December 1998, nearly 3. 4 times the number during the previous December. aissuR ni ecnetsisbuS dna ,snoisneP ,segaW ecnetsisbus woleb era % 92 level ecnetsisbus laiciffo ecnetsisbus woleb era % 12 0 001 002 003 004 005 006 007 008 R u bl e s p e r m o n t h . eople have become poorer, the impoverishing effects of the crisis have also hit other groups within Russian society. Workers involved in the business of selling imported goods have found that demand for their products has nearly evaporated as not only consumer incomes have fallen, but also ruble depreciation means higher prices on imports. As a result, many of these trade businesses have shed labor or closed. One of the longer-term consequences of the economic crisis in Russia may be the strain on society, which is likely to weaken the Russian government’s ability to continue to push for reforms. In some ENI countries, the crisis has given reform skeptics an excuse to abandon or reverse some reforms already implemented. The social pressure against further economic reforms, now seen by many as the cause rather than the cure for the economic crises, may become strong enough to counter-balance the pro-reform force. It may lead some ENI countries to get stuck in what Adrian Karatnycky describes as a â€Å"state of stasis† rather than of transition. Stability Versus Democracy Politically, the financial collapse has weakened Russia vis-a-vis the west, but its relative power in the region has in many ways increased. Not only has the crisis given Moscow an excuse to consolidate power over the regions throughout Russia, but it has also allowed many hard-liners within Russia to gain some ground in their push to reassert Russia’s traditional sphere of influence. In addition, many neighboring regions have found themselves with large arrears on their payments to Russia for natural gas deliveries, and have had to strike deals with Russia to find ways to settle these debts through deliveries of food and other barter arrangements. Following the onset of the crisis in August, the Russian government proposed many changes intended to promote economic stability at the cost of democracy. In February 1999, Prime Minister Primakov argued that Russia’s governors should be appointed by the President, rather than elected by their constituents, so that Moscow can take back control over the regions and avoid a collapse of the country. President of Belarus Alyaksandr Lukashenko rejoiced in the crumbling of IMF-backed reforms in Russia, considering the crisis to be a indication of his position in favor of state planning and price controls. The old proposal regarding a possible political union of Belarus, Ukraine, and Russia has also resurfaced, as Russia and some neighboring countries have concluded that further integration will help solve their problems. In the words of Ivan Rybkin, President Yeltsin’s envoy to the CIS, â€Å"the recent crisis taught us all that we must stand together in order to surviveâ₠¬  (Rutland 1999). Effects on Neighboring Countries The drop in real wages in Russia—coupled with the devaluation of the ruble—has translated into dramatically reduced Russian imports. For the neighboring countries that depend on Russia as a market for their exports, the shrinking market in Russia has been disastrous for their local economies. As Russians are shifting consumption away from the relatively more expensive imported goods, the producers of these goods in neighboring countries are faced 10 with a dramatic fall in demand for their products. This has translated into falling output and increased unemployment for the countries that are most closely tied to Russia through trade, especially Moldova (more than 50 percent of Moldovan exports go to Russia); Belarus, Ukraine, and Kazakhstan, (gt;33 percent of exports to Russia, as of early 1998); and Georgia (gt;30 percent of exports to Russia) (EC 1999). The drop in remittances from nationals living in Russia has led to decreased incomes in neighboring countries with large numbers of gastarbeiter working in Russia. Armenia, Georgia, and Azerbaijan have been most severely hit by this decline in remittances. In some cases the pattern seems to have been reversed, with families in neighboring countries now supporting relatives living in Russia (EC 1999). Finally, food prices have also increased in the neighboring countries of the NIS, as the cost of imports from outside Russia has risen as a consequence of the significant devaluation of local currencies. Some of the specific effects and impacts on other NIS and neighboring countries are summarized briefly below. Armenia—Accumulation of public sector arrears is likely, as government is facing difficulties in financing of education, health care, and other expenditures. Remittances from Armenians in Russia have decreased, placing additional pressure on family support systems, and this could result in increased poverty. Azerbaijan—Trade-related consequences in the short term are less than for other NIS countries, as the political instability in the North Caucasus region has already limited trade ties with Russia prior to the crisis. Government spending was cut in 1998, and further cuts in 1999 will affect key social sectors. As in other Caucasus countries, decreased remittances from Azerbaijani nationals residing in Russia has reduced family incomes in Azerbaijan. Baltic Region—Estonia, Latvia, and Lithuania—The Russian crisis forced some Baltic banks to fail, and several others to reveal their under-reporting of exposure to Russia in their September 1998 quarterly reports. Better developed financial systems, a reorientation toward western markets, and general political stability have helped to limit the damage and contagion effects from the Russian crisis. Belarus—One of the most affected countries in the NIS, Belarus was highly dependent on trade with Russia prior to the crisis. Exports to Russia plunged from $400 million/month in the first half of 1998 to just $170 million/month by September 1998. Shortages of basic foods forced the government to introduce rationing. Georgia—The Russian market accounted for 30 percent of Georgia’s exports prior to the crisis, and Georgian nationals living in Russia provided a significant amount of income to Georgian families through remittances. The trade deficit with Russia widened to 50 percent in October 1998, forcing the Georgian authorities to float the lari (which led to a sharp depreciation). 11 Kazakhstan—In the first half of 1998, half of Kazakhstan’s exports went to Russia, and the impact of the crisis has been felt in Kazakhstan primarily through the reduction of exports to Russia. Kazakhstan introduced a temporary ban on the import of some Russian foodstuffs, in order to control the inflow of cheapened Russian goods following the depreciation of the ruble. Kyrgyzstan—Nearly 60 percent of Kyrgyzstan’s exports went to Russia, prior to the crisis, so this country was also one of the more vulnerable to negative shocks through the trade mechanism. In this most pro-reform of the Central Asian Republics, price liberalization of utilities and privatization may be threatened, as consumers are less able to pay the higher tariffs as a esult of fallen incomes. Moldova—Trade with Russia is important to Moldova, as 50 percent of Moldovan exports went to Russia prior to the crisis. Many farms and other agro-exporters have been unable to pay wages, as their export market has dried up in Russia. Here, too, the crisis has threatened the reform and liberalization process implemented by the government, as investors’ interest in the Moldovan economy has diminished and a heavy withdrawal from commercial banks have signaled a lack of confidence in this country. Tajikistan—Low commodity prices for cotton and gold had already damaged the Tajikistan economy before the Russian crisis, and the fragile peace held together in part with the support of the Russian military (serving as border guards) has certainly not gained strength from the crisis. Apparently, Tajikistan is not as dependent on trade with Russia as other NIS countries, and this has helped to insulate Tajikistan from the direct effects of the crisis. Turkmenistan—Exposure of Turkmen banks to Russian markets has been limited, as the Turkmenistan economy is tightly controlled by the state. The Russian crisis therefore is not expected to have a strong direct impact on Turkmenistan. Ukraine—Closely linked to Russia through trade and financial ties, Ukraine has suffered greatly as a result of the Russian crisis. The hryvnia lost half its value against the dollar following the crisis, and reserves have fallen (as of early 1999) to only one month of imports. Inflation surged to 12. 8 percent in October 1998 alone, following a long period of relatively stable inflation before the onset of the crisis (2 percent inflation in first half of 1998). Uzbekistan—As Uzbekistan has been gradually reorienting its international trade profile away from Russia over recent years, the country has apparently been less affected by the crisis than other NIS countries. Further, the underdeveloped banking system and financial markets in Uzbekistan may have helped to insulate that country from the shocks emanating from Russia in August 1998, as Uzbekistan had relatively little exposure to Russia’s financial markets. 2 Proposed Remedies As discussed throughout this paper, two camps have emerged in academic and policy circles that seek to explain the causes of and remedies for the Russian financial crisis. This section highlights some of the remedies proposed by each camp. According to the â€Å"fix the countries† critics, such as the IMF and the U. S. Treasury Department, the Russian government must continue pushing for reforms in the public finance and banking sectors. According to Gaddy and Ickes, only two options exist for western creditors and international financial institutions: keep Russia stable in the short-term by bailing out the virtual economy or refusing a bailout. Denying Russia a bailout would have negative effects in the short-term by leading to the demise of large commercial banks and oligarchs, foreign capital flight, and currency devaluation. In the long run, however, Gaddy and Ickes prefer this option because they believe it will force Russia to adjust to economic life without a steady supply of credit available and adapt sound economic policies. They dislike the first option simply because they believe it will lead to the further development of a nonmarket-oriented economy that would require bailouts in the future. The Treasury Department adds that bank restructuring and reforms in tax administration and collection are necessary as well. The â€Å"fix the global financial system† critics, such as Jeff Sachs and George Soros, urge that the international financial system be reformed so that short-term borrowing by banks and governments be limited so as to avoid potential investor panics. In addition, Sachs recommends that domestic banking regulations, in the form of enhanced capital adequacy standards and policies that encourage partial bank-sector ownership by foreign capital, be implemented in order to limit vulnerability of the domestic economy to foreign creditor panics, and that exchange rates be kept flexible instead of pegged. In addition to these proposed remedies, others have gone further to propose mechanisms for recovering losses (Sexton 1998). According to Sexton, foreign creditors have at their disposal four mechanisms to recover losses to Russian firms: 1. Convertible debt securities: debtors could issue convertible bonds to creditors although Sexton argues that this probably won’t work too well in Russia 2. Treasury or redeemed shares: company may exchange its own shares, that were bought back, or interests to extinguish outstanding indebtedness; there should be no tax consequences to debtor on repurchase of shares; on resale to foreign creditor, debtor should be taxed on any gain on shares or should be able to deduct any loss sustained 3. Alternative debt refinancing structure: swapping debt for convertible debt which creditor converts into equity; issue by debtor to creditor of convertible bonds as a means of refinancing outstanding debt; creditor should make sure conversion ratio covers value of outstanding debt over term of loan; disadvantage to this 13 strategy is that creditor is refinancing and likely to have twice the outstanding debt for some time 4. Securitizing the debt: convert debt into security which creditor then contributes to debtor’s charter capital to pay for the shares (key issue facing creditors thinking of taking equity in a Russian debtor company in exchange for indebtedness is how to value that equity) Summary This paper has addressed the opposing views as to the causes of and remedies for the Russian financial crisis. †¢ Two central camps have emerged. One camp argues that the Russian economy has severe structural problems that were the primary cause of the crisis: fiscal deficit, banking sector problems. The other group points to the IMF and the problems with the international financial system, claiming that moral hazard problems led investors to underestimate the risk of investing in emerging markets such as Russia, and that unregulated short-term investment flows out of emerging markets can result from the panic. Each of these groups proposes different remedies for the crisis, based on their assessment of the roots of the crisis. The IMF and Treasury Department insist that the Russian government continue to push for reforms in public finance and the banking sector, claiming that weaknesses in these areas ultimately led to the onset of the Russian crisis. Jeffrey Sachs, George Soros, and others who are critical of the international financial systems and the role of the IMF in the recent financial crises, recommend that the short-term borrowing by governments and banks in emerging markets be limited and regulated, and that exchange rates are flexible rather than pegged. †¢ Although the worst of the Russian crisis may have already passed, as the Russian and other ENI stock markets appear to have recovered and the dramatic fall in production has been reversed, the original causes of the crisis still need to be addressed. Continued progress in banking and fiscal reforms in Russia will be necessary to ensure that the country is less vulnerable to future external shocks and foreign creditor panics. Improvements in these sectors would help restore investor confidence in the Russian economy and reverse the current outflow of capital. 14 ANNEX: What Happened in Russia? A Brief Chronology of Events Asian Crisis: Precursor to the Russian Crisis †¢ †¢ July 1997, Thailand—devaluation of Thai baht December 1997, Korea—devaluation of Korean won †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ ate October 1997— Pressure on ruble intensifies, as result of Asian crisis December 1997—Foreign exchange pressure temporarily recedes in Russia 19 December 1997—Standard and Poor’s Sovereign Ratings of Russian ruble: longterm—â€Å"BB-â€Å"; outlook—negative; short-term—â€Å"B† January 1998—Reemerging p ressure on ruble forces Central Bank to raise interest rates, increase reserve requirements on foreign exchange deposits, and intervene on ruble and treasury bill market March 1998—Stock market prices in Russia have not yet recovered from lows reached in late fall 1997 May 1998—Russia places major commercial bank under Central Bank administration; miners strike over wage arrears; Russia continues to intervene on foreign exchange markets to support ruble, but investors increasingly see this strategy as unsustainable Late May 1998—Interest rates in Russia increased to 150 percent; Russian government announces revisions to 1998 budget, including 20 percent cut in expenditures and new initiatives to boost revenues Early June 1998—Recent policy announcements temporarily ease tensions, allow partial reversal of earlier interest rate hikes 9 June 1998—Standard and Poor’s Sovereign Ratings of Russian ruble: long-term— â€Å"B+â€Å"; outloo k—stable; short-term—â€Å"B† Late June 1998—Russian authorities unveil anti-crisis program, aimed at boosting tax revenues, cutting expenditures, and speeding up structural reforms . 9991 lirp A , eci vre S et aR egn ahc xE CIFI C AP : ecruo S 15 4 / 2 / 9 9 3 / 2 / 9 9 2 / 2 / 9 9 1 / 2 / 9 9 1 2 / 2 / 9 8 1 1 / 2 / 9 8 1 0 / 2 / 9 8 9 / 2 / 9 8 8 / 2 / 9 8 7 / 2 / 9 8 6 / 2 / 9 8 5 / 2 / 9 8 4 / 2 / 9 8 3 / 2 / 9 8 2 / 2 / 9 8 1 / 2 / 9 8 03 Russian Crisis Timeline 0 5 01 51 02 52 After the devaluation of the Thai baht in July 1997, one Asian country after another had to raise interest rates sharply to avoid currency devaluation. But the combination of high interest rates and currency depreciation, which inflated the burden of foreign debt, provoked a financial crisis (Krugman 1999). SU$/selbuR :etaR egnahcxE elbuR †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ 16 1 2 / 2 0 / 9 8 9 / 2 0 / 9 8 6 / 2 0 / 9 8 3 / 2 0 / 9 8 1 2 / 2 0 / 9 7 9 / 2 0 / 9 7 6 / 2 0 / 9 7 3 / 2 0 / 9 7 1 2 / 2 0 / 9 6 .9991 lirpA ,semiT wocsoM :ecruoS 9 / 2 0 / 9 6 6 / 2 0 / 9 6 3 / 2 0 / 9 6 1 2 / 2 0 / 9 5 9 / 2 0 / 9 5 6 / 2 0 / 9 5 3 / 2 0 / 9 5 1 2 / 2 0 / 9 4 9 / 2 0 / 9 4 6 / 2 0 / 9 4 0 †¢ 003 †¢ xednI semiT wocsoM :egnahcxE kcotS naissuR †¢ Mid-July 1998—Russian authorities introduce additional policy package, in the context of an IMF agreement on an augmented Extended Fund Facility (EFF) arrangement 20 July 1998—IMF releases first $4. 8 billion tranche of $22. billion extra credit pledge, as policy package is approved by IMF Late July 1998—Initial effects of this package are positive, with equity prices rebounding 30 percent, treasury bill rates falling from 100 to 50 percent, and a low ering of the Central Bank refinancing rate from 80 to 60 percent Early August 1998—The Duma fails to approve new reform program; President forced to veto several Duma measures and introduce others by decree 13 August 1998—Standard and Poor’s Sovereign Ratings of Russian ruble: longterm—â€Å"B-â€Å"; outlook—negative; short-term—â€Å"C† 14 August 1998—Average treasury bill rates are about 300 percent, international reserves down to only $15 billion, and Russian banks are unable to meet payment obligations Russia on the verge of full-scale banking and currency crisis 15 August 1998—Boris Yeltsin announces that there will be no devaluation of the ruble 17 August 1998—Russian government defaults on GKO Treasury Bonds, imposes 90day moratorium on foreign debt payments, abandons ruble exchange rate corridor 17 August 1998—Standard and Poor’s Sovereign Ratings of Russian ruble downgraded: long-term—â€Å"CCC†; outlook—negative; short-term—â€Å"C† 21 August 1998—Russia’s international reserves fall to $13. 5 billion, after renewed heavy intervention in an effort to support the weakened ruble 26 August 1998—Following heavy intervention, the Russian Central Bank announces that it will stop selling U. S. ollars, and suspends trading of ruble on main exchanges Late August 1998—Kiriyenko government is dissolved, financial crisis intensifies 1 September 1998—Russia is the IMF’s largest borrowe r, with a combined total of credits at this date equal to nearly $18. 8 billion 2 September 1998—Russian Central Bank abandons exchange rate band, lets the ruble float 16 September 1998—Standard and Poor’s Sovereign Ratings of Russian ruble: longterm—â€Å"CCC-† [lowest possible S and P rating]; outlook—negative; short-term—â€Å"C† January 1999—Moody’s assesses financial strength (â€Å"E†) and credit ratings (â€Å"Ca†) of the Russian banks at the lowest possible levels; most banks are insolvent (or nearly so) 005 054 004 053 052 002 051 001 05 †¢ †¢ †¢ 15 January 1999—The Central Bank of Russia re-launches trading on the domestic debt market. The new securities are to be used in the restructuring of frozen GKO and other debt instruments 27 January 1999—Standard and Poor’s Sovereign Ratings of Russian ruble: Longterm—â€Å"Selective Default†; outlook—â€Å"Not Meaningful†; short-term—â€Å"Selective Default† 5 February 1999—The 1999 budget was passed by the Duma in its fourth and final reading. The budget estimates a 2. 5 percent budget deficit, and assumes that the government will receive $7 billion in external loans to help finance foreign debt service 17 BIBLIOGRAPHY European Bank for Reconstruction and Development (EBRD). March 1999. â€Å"Overview on Developments in the Operating Environment,† mimeo. European Commission (EC). 20 January 1998. â€Å"The Russian Crisis and Its Impact on the New Independent States and Mongolia. † Communication of the European Commission to the Council and the European Parliament. [http://europa. eu. int/comm/dg1 a/nis/russian_crisis_impact/1. htm] Frankel, Jeffrey A. 1999. 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Monday, November 25, 2019

Free Essays on Techniques Of Crime Scene Investigation

Chapter Three of â€Å"Techniques of Crime Scene Investigation,† provides some very detailed information of the importance of crime scene investigators and their duties. Although there are many officers that police departments use today including patrol officers and detectives, when a serious crime occurs police agencies usually use specialist, such as crime scene investigators, fingerprint specialist, or forensic scientist. This does not eliminate the patrol or uniformed officers though because they are use for less serious/important crimes. This process of calling in specialist is not to make any other officer feel that they can’t do the job, but when dealing with homicides, rapes, assaults, and robberies, specialists with more training and experience are needed for pertinent reasons and finding evidence. Because defense attorneys, today, can argue whether or not the evidence was collected correctly or tampered with, it is important to have someone experienced there to get the job done correctly. Although specialist can also make mistakes, it is believed there will be less mistakes made if officers who are extensively trained are called in to process the crime scene. Crime scene investigators are reliable for reconstructing the crime, sequencing the events, determining how the crime was committed/operated, provide motive, notice what, if anything was stolen, find everything the criminal has done, and recovering all physical evidence. The crime scene investigator has similar responsibilities as the first officer to arrive on the scene. When approaching the scene, investigators should be alert for discarded evidence, expect the worst, and upon entering be prepared to take notes as to possible approach/escape routes. Once the investigator has done the important things upon arrival they are to secure and protect that scene while they are there. This may include taking control, ensuring security of the scene, obtaining i... Free Essays on Techniques Of Crime Scene Investigation Free Essays on Techniques Of Crime Scene Investigation Chapter Three of â€Å"Techniques of Crime Scene Investigation,† provides some very detailed information of the importance of crime scene investigators and their duties. Although there are many officers that police departments use today including patrol officers and detectives, when a serious crime occurs police agencies usually use specialist, such as crime scene investigators, fingerprint specialist, or forensic scientist. This does not eliminate the patrol or uniformed officers though because they are use for less serious/important crimes. This process of calling in specialist is not to make any other officer feel that they can’t do the job, but when dealing with homicides, rapes, assaults, and robberies, specialists with more training and experience are needed for pertinent reasons and finding evidence. Because defense attorneys, today, can argue whether or not the evidence was collected correctly or tampered with, it is important to have someone experienced there to get the job done correctly. Although specialist can also make mistakes, it is believed there will be less mistakes made if officers who are extensively trained are called in to process the crime scene. Crime scene investigators are reliable for reconstructing the crime, sequencing the events, determining how the crime was committed/operated, provide motive, notice what, if anything was stolen, find everything the criminal has done, and recovering all physical evidence. The crime scene investigator has similar responsibilities as the first officer to arrive on the scene. When approaching the scene, investigators should be alert for discarded evidence, expect the worst, and upon entering be prepared to take notes as to possible approach/escape routes. Once the investigator has done the important things upon arrival they are to secure and protect that scene while they are there. This may include taking control, ensuring security of the scene, obtaining i...

Thursday, November 21, 2019

Introduction Assignment Example | Topics and Well Written Essays - 250 words - 1

Introduction - Assignment Example I wish you all the best your current and future goals at Ashford University. Among the topics we are going to study in this course is cognitive psychology. Such is a fundamental course that looks into the scientific approaches that influence mental processes and decisions that people make on daily basis (Anastasi, 1979). Applied psychology helps in overcoming real life problems. The topic therefore provides ways of understanding such basic concepts as human memory, perception, attention and language. I believe such topics are important in the various areas of fields that I would work in later as a career woman. The topics will help an effective communicator capable of developing and packaging information strategically for specific audiences (Cina, 1981). This way, the course will enhance success in clinical psychology, advertising, educational psychology or forensic psychology among other fields in which I would choose to

Wednesday, November 20, 2019

Why Abortion Should Not be Allowed Assignment Example | Topics and Well Written Essays - 500 words - 1

Why Abortion Should Not be Allowed - Assignment Example There are several reasons why one believes that abortion should not be allowed. Abortion does not give the baby in the womb a chance to live; thus, it is unacceptable in most religions. All preborn children should be treated equally regardless of the health of the baby or the circumstances surrounding the conception because they are all precious in the eyes of God. Another reason why abortion should not be permitted is that it is used by some women as a birth control measure. Abortion somehow promotes infidelity because it makes it easy for other women to engage in illicit sexual relationships and then, later on, turn to abortion to avoid the responsibility of parenthood. Abortion may lead to some medical complications and has some psychological effects on the women who undergo it. The medical risks of abortion include sepsis, recurrent miscarriages, cervical tears, retained pregnancy tissue, severe heavy bleeding, uterine perforation, bladder and bowel damage, and severe infection. After an abortion, a woman may feel depressed and guilty. One agrees with the view of the Human Life International that only when â€Å"the mothers life truly is threatened by pregnancy (such as with cancer of the uterus or ectopic pregnancy), she may undergo an operation whose purpose is to save her life, even though the preborn child dies as an indirect result of the procedure†. It is important to note that the procedure here is not abortion rather an operation to save the mother’s life. If one looks at the reasons why women have abortions, it can be concluded that these reasons are not exactly justified.

Monday, November 18, 2019

Opening of Rohan Stores in Iran Assignment Example | Topics and Well Written Essays - 4000 words

Opening of Rohan Stores in Iran - Assignment Example Hence, by investing in Iran, the business will be entering a market with a completely different culture. Adizadeh (2010) states that despite the significant role that franchising has played in all economies; researchers have paid little attention to it in the Iranian market. The author further adds that there are very many barriers facing Iranian firms with considerations of adopting franchising. The barriers include legal, cultural, political, tariff, and economic. However, managers of already existing franchises in Iran affirm cultural barriers as one of the most important hindrances facing franchisors and franchisees in the country (Adizadeh, 2010). Leung et al. (2005) noted that the source of cultural barriers is the variations in cultural variables such as religion, material culture, language, social organization, popular culture, and aesthetics between the resident and foreign nations. The authors continue to point out that an increase in such dissimilarities translates to larg er cultural distances between the foreign and home countries. Consequently, an increase in the cultural distances creates challenges in the process of transferring the investment from the resident country. However, Ewah and Ekeng (2009) identify an increase in the levels of saturation and competition in the markets of developed countries. For this reason, Rohan’s most viable solution would be developing strategies to deal with the cultural differences and, subsequently, invest in Iran as an emerging market economy.

Friday, November 15, 2019

Issues Caused by Prison Overcrowding

Issues Caused by Prison Overcrowding Overcrowding: One of the important goals in prison system is that it should guarantee the public safety, prison inmates and staff. (Criminal justice and behavior) holding more prisoners than it is intended to accommodate, then the level of overcrowding in different continents andregions can be shown in terms of the occupancy rate*/the number of prisoners as apercentage of the official capacity of the system  (prison health care and the extent of prison overcrowding) In North and Central America, this is true of nine of the 12 countries on which information is available, as it is of 13 out of 14 Caribbean countries and 12 of the 13 countries in South America.(prison health care and the extent of prison overcrowding) Overall, the prison systems of 109 of the 158 countries on which information is available*/69%*/hold more prisoners than they are intended to accommodate. Over the 6 years since the first edition of the World Prison Population List appeared, the latest information available shows that prison populations have risen in 71% of these countries*/in 62% of countries in Africa, 74% in the Americas, 87% in Asia, 67% inEurope and 69% in Oceania Crowding Can be measure in the floor space per prisoner, prisoner per living unit and institutional population relative to state capacity According to BOP, the population increasing in prison are contribute to the longer sentencing over times for inmates From the GAO, it claimsthatthe population of BOP will increase more than the system Capacity such as they predict thatit will be increasing the additional 15 percent of inmates’ population in the BOP. The number of females inmates housed in bop institution increased 7 percent and the number of the males inmates housed in bop institution increased 10 percent. 48 percent for sentencing drug The problem of overcrowding: Overcrowding can be toxic for the both of the prisoners and staff Lack of privacy, lost to use of gyms and recreation, noise, unsanitary ,there are long lines for the toilet ,poor condition in the prison situation The United Nations ‘‘Standard Minimum Rules for the Treatment of Prisoners’’ state that: ‘‘Allaccommodation for the use of prisoners and in particular all sleeping accommodation shallmeet all requirements of health, due regard being paid to climatic conditions andparticularly to cubic content of air, minimum floor space, lighting, heating and ventilation’’(prison health care and the extent of prison overcrowding) It is equally well recognized that, by contributing to health problems in prison, overcrowding is also contributing to health problems in the community, since the vastmajority of prisoners will return to the community in due course, accompanied by anydisease that is then afflicting them Prisoners: Mental health When overcrowding exceeds this figure, the risk to the health of prisoners is obviously greater still. In 67 of the 158 countries on which information is available, the occupancy rate exceeds 120%, including more than 70% of the prison systems in Africa, the Caribbean and South America, and at least 60% of those in Asia and Central America. Indeed, in almost a quarter of the prison systems (22%) The occupancy rate exceeds 150%, and in 15 countries (almost 10%) it exceeds 200%,meaning that more than two prisoners are occupying space intended for one. From the representation of World Health Organization: ‘‘Overcrowding is an obvious cause or contributory factor to many of the health problems inprison, most notably communicable diseases and mental health, including the use ofpsychoactive substances’’( prison health care and the extent of prison overcrowding) Suicide (for the long-term)( which level of security) Self-harm Infraction and stressful. (Prison Crowing A psychological perspective) Human rights and the prison system should have reasonability to keep inmates mental and physical health( Overcrowding in Prisons A Health Risk in Need of (Re)consideration) Poor prison life associate with the mental health such as self-harm, suicide and violent behavior and all of have major implication can affect the inmates and staff. (Criminal justice and behavior) In the long term, this is cause of the high reoffending rates as the mental health, misconduct behavior are associated with the increasing the risk of recidivism (Criminal justice and behavior) (Criminal justice and behavior) Also, the research finds that the linked the overcrowding in prison with increasing the psychological problem such as suicide, rates of violence hypertension and other medical conditioning. The rehabilitation program have been dismantled as the program have never work because the program are underfund and the high unemployment rates make the inmate post-release adjustment are more difficulty (trauma)à ¯Ã†â€™Ã‚   CAN ARGUE Gaes (1992) found that the stress of crowding and the straggle for resource, space and create the nervous atmosphere can increase the chance of suicide and other formed violence. People always argue that rehabilitation and the mental care programmer can addressthe problem of suicide. However, there are limited setting and space to provide the rehabilitation program for inmates in the overcrowding prison. (HUYEN) Stress->the data provide strong for the conclusion that dormitory crowding is the stressor and is detrimental to health. The relationship of housing of the relationship of autonomic nervous system responses to crowding and by examination of urine chemistry correlates of adrenal catecholamine.P45 There is another importance source of information about health-related problem that can illuminate the extent to which crowded prison conditions are associated with physical and mental pathology-the data on serious health-related incidents such as natural deaths and suicide from the prison archives. P46 The data show that there are the illness of headaches, sleeplessness and blood pressure in the short-term.P46 Crowding could produce stress and that prolonged stress could lead to serious physical and psychological consequence. P46 Evaluating the relationship pf crowding – assessing impact of changes in population over times, assessing difference between large and small institutions within particular prison system. Even when the institutions are equally crowded , thebook find that regarding crowding assume that because of greater socialidentity , the large institutions would yield relatively greater stress and consequently a greater incidence of health-related problems as the increase population within a prison would be reinteraction within the living quarters and or in common use areas.P46 Although the stress can have a direct effect on physical health, it may also have dramatic effects on mental health. ] The disciplinary infraction-> the stress related population pressure in the high density institutions may result in a variety of pathological consequence. If population level is important, the large institutions would be associated with more population-related stress than the small one. In the large institution, housing may not be more crowded, but external activity areas may be more densely populated In the criminal justice behavior, it found that there are strong relationship between the institution infraction and the misconduct behavior such as aggression, impulsiveness and the risk of institution. Also. The large of population in the high security housing, it will be high rates of infraction with the gang activities. Physical health Blood pressure Finding the single cell in us now D, Atri (1975) found that the dormitorities were associated with the elevated blood pressure compare with the single cell housing(P45) In the high population years compared with the low population years, the death rates, it should include those from thediseases of the circulatory system were significantly higher for those over 45years of the age. (ARG) The book analyses indicated that deaths from the natural cause for inmates older than 50years of age increased much more rapidly than the population changes. THE population increased slightly be over 90percent, while the death rates increased by over 200percent P49 Misconduct behavior—public safety From the GAO report, it can find that overcrowding may cause to increase the misconduct behavior with prisoner and it should be more competition of education and training. (The problem of overcrowding) Recidivists, but no reconviction rates The overcrowding will continue increase as the reform policy such as street safety Post release (Overcrowding in Prisons A Health Risk in Need of (Re) consideration) Costs The budget of the mental service Meaningful programmes Increasing the population of prison may cause the overcrowding and affect the relationship between the staff and inmates, prison safety, the condition of confinement and themeaningful programmer for prison. (Criminal justice and behavior) On the other hand, overcrowding can reduce the meaningful work chance to inmates. There are providing some programmer to relate in job operating and maintaining for inmate to participate in such as federal prison industries. Within the overcrowding, it is difficult to arrange for inmates to working in the federal prison industries factory. At the end, the inmates release the jail and they are difficult to find the job and committing crime (like a cycle) (R42937) The GAO reported that there are some problem of overcrowding to be highlight and how this problem to might contribute to inmate misconduct and caused in this facilities. In the report, it showed that the growing of population in prison, the inmates should convert common areas (share to common area) such as television room, temporary house space and they inmates with higher propensity for violence spending more times with other inmates and due to the overcrowding in prison, the inmates may experience crowded bathroom facilities, reduce the shower times and waste of time for services, shorten in meal times and limited recreational activities. On the other hand, the increasing number of inmates in bop facilities will decrease the availability of the programmer as there are longer waiting lists for rehabilitative programmer such as education, vocation training, and substance drug treatment. In fact, the reduction in rehabilitative programmer can manage the prison population. In the BOP, if the inmates complete successfully substance drug treatment, they have up to one year taken off their sentence. However, the longer waiting lists for the substance drug treatment programmer, the limited ability of BOP to allow the inmates earning the maximum reduction in inmate’s sentencing. (R42937) Human rights (linked with the mental Health and crowding conditioning) The public and commercial services union à ¯Ã†â€™Ã‚   increase the deaths in custody and to basic standard of human dignity ( UNION PROTEST AGAIN PRSION OVERCROWDING) Prison safety The increasing of population in the prison may lead to overcrowding and cause of the prison safety and the relationship between the staff and inmates. One of importance of goal in the prison system is that it should protect the safety of public, inmates and staff in the prison. However the poor environment conditions and adjustment in the prison will link with the mental health such as suicide and self harm for the inmates and the misconduct behavior. all of the behavior will affect the safety of inmates and staff. (Criminal justice behavior) the early identification of inmates in the overcrowding conditions is the risk for the violence behavior and the health (Criminal justice behavior) Staff: For the staff, it can increase the staff pressure and affect their ability to full access theprisoner’s need and provide the quality care and treatment.( UNION PROTEST AGAIN PRSION OVERCROWDING) Arg: Although the private prisons operate (it can reduce the cost of overcrowding in public prison), there is the questionable of privatization deliver lower costs and whether services provided by private prison comparable to services provided by public prison. Whateverthe public prison or private prison operate, the age of prisoner, the economic scale and the prisoner’s security level are the most important factor of daily per diem cost to determine (R42937) Others: Model Early identification of prison -> security level (Criminal justice and behavior) (Lack of the now) In the mid -1980s, the inmate population under the Bureau of Prison has increase from25000 to over 219000 inmates in the 2013. The growth of inmate’s population in the prison system is contributed to policy change in the previous decades such as the mandatory minimum sentences. In the mandatory minimum sentencing, there are many people convicted of states crimes to sentence in the prison for the long-term imprisonment. At that time, theprison populations climbed almost continuously and hold more inmates to the federal prison system in the United States. From the World Prison Population, it showed that there are 74 percent in American has risen over the six years. (Prison health).However, the prison system capacity cannot afford the large inmate’s population and lead to overcrowding. Overcrowding refers the number of inmates actually holding in the federal prison system is higher than the prison system’s capacity and accommodation prison; overcrowding is not only just measure in the primary living environment (external density) such as the floor space prisoner, prisoner, per living unit and institutional population relative to state capacity, but also it can also measure the subjective experience of density-related discomfort of inmates in the prison.When people talk about the pressure problem in the prison system, it should be focus on how the problem can affect the prison system first. In the prison system, the importance goals are that it should guarantee the public safety, prison inmates and staff; rehabilitation for prisoner to come back the society after they released; punishment for the criminal to reduce the future crimes. In fact, there are many importance problems in the prison system, but overcrowding has bought the serious problem to prison system such as health-related problems for staff and inmates, reconviction rates, costing in the prison system.etc; therefore, the most pressing problem in prison system is the overcrowding. ARG According to  BOP officials, without space for disciplinary segregation, they are limited  in how they can address inmate misconduct. Officials further stated that  when a facility has no Special Housing Unit space available, the regional  office may move the inmate to a Special Housing Unit in another facility of  a different security level—a practice referred to as trans-segregation. Alternatively, headquarters officials said that disciplinary hearing officers  may dispense shorter time in segregation or use other sanctions or a  combination of nonsegregation sanctions. As a result, the officials said  that the imposed sanctions may not be as much of a deterrent with the  inmates, which affects the security and safety of inmates and staff. COUET BOP officials did not discount an incident happening at a  low security facility because of the high gang presence in these facilities. They said that although the criminal histories of low security inmates  suggest that they are not a â€Å"high risk† for violence, these inmates may still  be a high risk for problems because of frustrations resulting from crowded  conditions. Second, BOP officials were also concerned that the federal 25 percent double bunking and 75 percent single bunking of cells  within high security facilities, 50 percent double bunking and 50 percent single bunking of cells  within medium security facilities, and 100 percent From fiscal years 2006 through 2011, the percentage crowding in male  medium security facilities increased from 37 percent to 51 percent and  from 53 percent to 55 percent in high security level facilities  BOP’s high security population was about 21,000 in December 2011—or  about 7,000 more than its rated capacity—resulting in 97 percent double  bunking and a 55 percentage crowding. According to BOP, BOP’s ability to increase rated capacity is directly  affected by funding appropriated for new prison construction and to  support contracts with private prison providers for additional inmate bed  space. In fiscal year 2005, the Office of Management and Budget (OMB)  placed a moratorium on all new BOP prison construction. To address  BOP’s bed space needs, OMB focused on contracting with private  Page 16 GAO-12-743 Federal Prison Crowding  prisons. P38 BOP’s 2020 long-range capacity plan assumes continued growth in the  federal prison population from fiscal years 2011 through 2020, with about  15 percent growth in the number of inmates BOP will house.38 To address  some of this growth, BOP expects to activate five newly constructed  prisons by 2014, adding about 6,720 beds.39 In addition, BOP is  budgeting for additional contracted bed space—1,000 beds in 2013 and  1,500 the next year, but the addition of these contracted beds is subject  to future appropriations. Despite its plans to add capacity through 2014,  given the expected inmate population growth, BOP projects crowding will  increase from the current rate of 39 percent to 44 percent by 2015.  Figure 3 P53