Russia - Gazprom monopoly

I am going to tell you about the biggest company in Russia, it is a gas company called Gazprom. Tis company is a gas monopoly in Russia.

So, first of full, this term exists when a specific individual or an interprise has sufficient control over a particular product or service.

So, Gazprom company is the largest company of natural gas and largesr Russian company. Also Gazprom is only one gas company in Russia. The main office of Gazprom is situated in Moscow also Gazaprom has some areas in United states, East Europe, Japan, South Korea and in Germany.

The president of company is Alexey Miller. Gazprom company produce about 540.7 billion cubic meters of natural gas and it is 21% of the worldwide gas production. Also Gazprom produce about 32 million tons of oil. Gazprom activates and increase about 10% of Russia's gross domestic product(GDP). In 2008 Gazprom sold 316 cubic metres to domestic consumers in Russia, 162 cubic metres to Europe and 98 cubic metres to countries of Baltic sea. Gazprom has deal with big companies such as oil company Shell and Exonmobile. Gazprom it is a big assistance for maintaining Russian economic system,Gazprom reduced taxes from domestic concumers of Russia and that's great because in Russia there are no many rich people who can pay expensive taxes for gas and since 2007 Gazprom have increased costs on gas for European countries, what is good for Russia as a whole. It is a vertically integrated company. It own all gas-processing facilities in Russia. Gazprom also controls assets in banking, insurance, agriculture and media. Also in 1999 Gazprom took over another russian gas company Novatek and Gazprom made a horizontal integration and it was horizontal monopoly. Gazprom became only one gas company in Russia. Nowadays Gazprom is a second largest gas company in the world after Exonmobile company.Income of Gazprom company for 2008 is 87 billion american dollars.In 2007 Gazprom made a deal with Kazakhstan, Turkmenistan and Azerbaijan, the deal means that Russia will build pipes in these countries for oil and gas transiting. In 2006 Gazprom made a contract with German government. According to this deal, German government will buy gas from Gazprom for nearly 10 years for 285 euro for 184.4 cubic metres.In 2009 Gazprom dealed with Japanese car company Mitsubishi and German energy corporation E.On. Gazprom is a main sponsor of all sport facilities in Russia.

Etihad helps to drive economic growth in UAE.

I have found some interesting information about economic achievements of UAE Etihad airlines.

So, Etihad airlines of United arabic emirates, which based in Abu Dhabi (it is a capital of UAE). It operates in many countries in the world, include Australia, countries of South America, and some countries of Africa. Etihad were established as national airlines of UAE in 2003. Since this year, Etihad airlines achieved absolutely astonishing aims in economics concepts, they rise their economic growth for 35 %, and every year this number is increasing and it is first airlines which made this progress. Etihad airlines have economic stability, their economic growth never fallen below 40% a year. In the financial concepts during 2008 year Etihad carried 6 million passengers and 330.000 tonnes of cargo. Nowadays Etihad airlines ranked on 4 place in the world in terms of economic growth. During last 10 years Etihad is set to support the creation of more than 100.000 jobs in the UAE during the next 10 years. Financial Times reported that Etihad airlines is playing crucial role in driving economic growth and supporting and driving tourism, business and investment.It is very significant and growing contribution to the economic growth of UAE. Researching in economic contribution defined at four levels: direct (within Etihad), indirect (suppliers to Etihad),induced (spending of direct and indirect employees) and catalytic(impact on many other industries). According to the Financial Times Etihad is already making significant contribution to Abu Dhabi's gross domestic product (GDP). Etihad airlines have made a direct economic contribution of Abu Dhabi non-oil GDP in 2007, employing 4.107 people within UAE. This report shows that Etihad make a positive role for UAE and Etihad is improvig links between Abu Dhabi and the rest of the rest of the global economy. With Etihad assistance UAE will increase their GDP for 28 billion AED (AED-UAE currency) supportin 140.565 jobs.After 3 years Etihad will make an investment at the airport infrastructure in Abu Dhabi. Also Etihad airlines make a big contribution to many other big companies such as Ferrari, where both companies made a deal where Etihad airlines are making a profitable sponsorship for Ferrari. Also last year Etihad became the main sponsor of English football club Manchester city, where Etihad invest about 50 million pounds for a year.

Climate change a market failure.

I have read a really interesting article about climate changing in a market failure.

So, the term market failure means that when the free market mechanism fails to achieve efficiency.

In 2007 at economic public lecture in Manchester, economist Sir Nicholas was talking about that climate change is a result of the greatest market failure that the modern world has seen and he clamed that climate change because of market failure in the world. Sir Nicholas believes that the problem of climated change involves a fundamental failure of markets and they damage others by emitting greenhouse gases and they generally do not pay. The evidence of the seriousness of the risks from inactivity or delayed action is now overwhelming. This problem is global and it must be a cooperation on a global scale. Also he discussed about that rich countries must lead the way in taking action. It means that: adopting ambitious emissions by reduction targets, encouraging effective market mechanisms, supporting programmes to combat deforestation, promoting rapid technological progress to appease the effects of climate change. The first involves rich countries by reducing their greenhouse emissions by at least 80%. Also Sir Nicholas claimed that countries must make a substantial trade between countries, including rich andpoor countries, in green gas emissions. He also said that for an international programme to combat deforestation, which contributes 15-20% of greenhouse gas emissions.And rich countries have to respect their commitments to 0.7% of GDP in aid by 2015. This will yield increases of 150-200 billion per year. The extra costs developing countries will face as a result of climate change more likely to be rising of 80 billion per year and it is massive that extra resources re avaible for new initiatives. Sir Nicholas claimed that this global deal includes effectiveness, efficiency and equity. In many countries there will be different choices of instruments such as taxes, trading, conditions and different technological mixes. In many countries there is a range for energy efficiency, which both reduces emissions and reduces money. So, rich countries have to reduce their gas emmisions otherwise market failure in the world will continue.

Government policy.

Government policy to reduce market failure, includes fiscal policy, where government takes taxes from producers to reduce negative externality as pollution.

Economy in Kazakhstan.

I am going to tell you about economics in my home country Kazakhstan.

So, Kazakhstan it is a former country of Soviet union republic. It is situated in the Central Asia. Kazakhstan became independent in 1991. Kazakhstan has borders with Russia, China, Uzbekistan and Kyrgystan. Kazakhstan it is a ninth country in the wrold of territory.

Nowadays Kazakhstan has 9.3 % of GDP, it is no so much, but it increasing every year. Kazakhstan is a very rich country in oil, gas, uranium etc. It has a special deal ''oil deal with close neighbours with Russia, China and with Turkmenistan. These deal means that these four countries exchange their land resources and to help to each other in economic concepts. Except oil and gas, Kazakhstan also provides many countries with wheat, livestock and textiles. Also Kazakhstan has a big aim, is to be a country number one in the world which provides uranium to countries such as USA, Russia, China, India and Iran. Also government of Kazakhstan wants to increase an amount of energy in country for selling it to other countries.

Also Kazakhstan has some debts, about 2 billion dollars, how we know, banking system in Kazakhstan is not so good, because government haven't solve a problem about banking system and in 2007 the one of the most popular banks in Kazakhstan is ATF bank became bankrupt and the main problem of it was that the guidance of these bank lend too much credits to people, but many people haven't give back these money properly and bank had big debts and scarcity of their own money. Also Kazakhstan has the largest operational space launch facility calls Baykonur. But there is a problem with that, because government hasn't got enough money to keep space launch facility in good conditions and Kazakhstan's government decided to lend it to Russia government for 25 years and for cost of 130 million dollars and it was quite a good deal because on these money Kazakhstan government can improve their economic system and to increase their GDP. Nowadays Kazakhstan's president Nursultan Nazarbayev has a big target to be in first 40 countries in the world in GDP and GNP. That's a really good aim and it is not just words because nowadays the two main cities in Kazakhstan Almaty and Astana are really big financial centers and business centers in the Central Asia. Nowadays Kazakhstan has already achieve some aims of it, first of full Kazakhstan's banking system is developing rapidly. And the profit of banking system is 1 billion dollars. The National bank of Kazakhstan is Halyk bank has big communications with world banks such as RBS, HSBC bank, Unicredit and Swiss bank.

About mixed economy in Norway.

I have read a really interesting article about mixed economy in Norway.

So, let's know more about term Mixed economy. Mixed economy it is an economic system which includes a variety of public and government control. Mixed economy is a very good possibility for private firms and their entrepreneurs for making finance desicions independently, but there is a big minus: is that state or government have a superior priority for making finance decisions.

So, in Norway there is a developed mixed economy with many private sectors (firms) which can produce their own product, independently of Norwegian government. Norway is the one of the richest countries in the world, their GDP is 246 billion $ and their inflation is only 0.6% and it is absolutely astonishing achievement. Norway also has a really good statistic of GDP because they have a lot of resources such as oil and gas and they provide many countries of EU. Also Norway has the public sector which among the largest in the world as a percentage of the overall of gross domestic product. And that's why Norway has a very high or maybe highest standard of living if you compare with other rich countries in Europe such as Switzerland, Germany, Great Britain or Sweden.But in recent years, Norwegian government raised taxes and that's why many private sectors and firms reduced their production because they can't pay these huge taxes to the government.

Also there is a raisng of wages of labour and other structural features of the Norwegian environment which caused concern about Norway's ability to maintain their cost of living in post-petroleum era. Since 1970, many things have changed, such as government helps to develop and to encourage many new industries in the private sector. They have made a high-tech industry,because of an interest of growing in encouraging in small private firms and it is a source of emploment in country for the future.

Since 2007, Norway made a huge growth of their economy, they look much better that other western nation.