The Nation's Economy

The economy of the country is like a machine which provides us with things we need, i.e. goods and services. The economy creates the wealth of the country. The better it works (he better off are the people.

The government through its economic policy plays an important role in the control of the economy machine. The major branches ofeconornic policy are fiscal and monetary policies. Fiscal policy is concerned with taxes and government spending activities. Monetary policy is concerned with control­ling the supply of money and credit.

A nation's economy can be divided into three sectors of activity The pri­mary sector deals with extraction of minerals, agriculture, fishing, and forest­ry. Processing of the primary sector materials and production of manufac­tured goods is the field of the manufacturing sector. The service sector provides services of various kinds such as transportation, distribution, catering as well as financial services and tourism. The role of the manufacturing sector in the advanced industrialised countries is decreasing while the service sector is be­coming more important.

Words and word combinations you may need

extraction ц — добыча (минерального сырья)

processing n — переработки

manufacturing sector — обрабатываю­щий сектор

distribution n — распределение, дист­рибуции

catering n — общественное питание

advanced industrialised countries — npo-мышленн О -развитые страны

branch n — отрасль экономики fiscal policy - бюджетно-налоговая

политика monetary policy — кредитно-денежная

политика

Supply n - предложение supply of money and credit — денежная

масса в обращении и предложение

кредитных средств primary sector — первичный сектор deal with - иметь дело с

Ex. 29. Think of adjectives which are frequently used with the following words:

enterprise, sector of economy, programme, finances, business, policy

Ex. 30. Form verbs from Hie following words and translate them into Russian.

employment; govemment; privatisalion; decision; growth; manufacturing; investment; tax; extraction; production; transportation; distribution; supply

Ex. 31. Match the infinitives in A with the nouns in B.

A

to produce to privatise to play to take to create to provide to raise to process

В

an enterprise a climate raw materials assistance productivity goods a decision a role

Ex. 32. a) Read the interview wilh a Russian economist published in one of the specialist journals, b) Sum up his assessment of the economic situation in Russia.

Interview with the Economist

Foreigner: How did your economy fare last year? '

Russian: Last year was one of the best for Russia. GUP grew at a reasonable

pace, then we harvested a record crop.

F.: I think it was due to very favourable weather conditions. What factors re­sulted in it in your opinion? R.: Undoubtedly, the weather conditions affected the crop. But I think that

investment and reforms in agriculture started to pay back. F.: And how do you assess the manufacturing sector, your industry? R.: Industrial production went up in some branches, though the real sector

still needs more investment if we want it to develop faster. F.: If you want foreigners to invest you must give them guarantees of law and

order in the country, create a more favourable business climate. R.: I can't agree more. Last year a lot of laws were passed to this effect. Suffice

it to mention our tax system, it was simplified. F.: 1 see. Considerable progress was made in your country last year. Besides,

as far as I know the living standards improved. R.: Yes, pensions were increased, salaries of state employees were raised too.

Demand for consumer goods increased.