...Cyprus Since the financial crisis of 2007/2008 in the United States, there has been a worldwide domino effect resulting in negative consequences for the economies of a number of countries. The Dominion of Cyprus remained relatively unscathed immediately preceding this economic downturn with a contraction of the economy as result of decreased tourism. In 2011, however, as a result of haircuts upwards of 50% on the Greek bonds that Cypriot banks had heavily invested in, Cyprus was no longer able to support its financial sector and was forced to seek a bailout from the European Union. The proposed bailout plan for Cyprus was not only unexpected, but an action that had never before been done in the history of banking crises. This controversial “bail-in” plan has many serious implications for state of financial markets worldwide. The European Union agreed upon a bail-in plan in which bank deposits would be used to support the struggling Cypriot banks. Specifically, a levy of 9.9% on the savings of depositors with balances over 100,000, and 6.75% on depositors under 100,000 will be paid in return for equity in the banks. Nearly 6 billion euros would be saved from the European taxpayers while Cypriot government figured they could just “spread the pain” resulting in nearly 7% payments from the insured depositors. With this plan to pass, depositors not only in the European union, but around world would now fear the risk of a breach in the explicit promise that they can be...
Words: 490 - Pages: 2
...Cyprus is an island located in the eastern Mediterranean Sea. Although most of its residents are of Greek origin, Cyprus has always had conflict between the Greek and Turkish residents. A financial crisis started occurring when Cyprus joined the European Union in 2004 and joined the Eurozone in 2008. Two months after joining, they had a presidential election that elected a communist president. “This government took a country with excellent fiscal finances, a surplus in fiscal accounts, and a banking system that was in excellent health. They started overspending, not only for unproductive government expenditures but also they raised implicit liabilities by raising pension promises, and so forth.” ("What happened in Cyprus") Around that time, the Euro was suffering a decline in value especially in Greece. This had a huge effect on Cyprus’ economy because they are a large holder of Greek government and corporate bonds. “In fact, the fact that the value of Greek debt was written down as part of the bailout deal for Greece actually meant that Cyprus was essentially pushed towards needing a bailout itself.” (“The Cyprus Financial Crisis”) During this difficult time, the two main banks, Cyprus Popular Bank and the Bank of Cyprus, couldn’t keep up with the losses and requested help from the government. The Cypriot government attempted to help by nationalizing the Cyprus Popular Bank but this in turn increased the national debt so much that the government needed a bailout. The government...
Words: 588 - Pages: 3
...CYPRUS • ECONOMIC DEVELOPMENT • CHANCES • RISKS Internationale Volkswirtschaftslehre IB - MA Contents: I. Economic Development II. Chances (Opportunities) III. Risks IV. Theses I. ECONOMIC DEVELOPMENT Source: provided by the CIA, 2006. As a product of the U.S. Government, this map in the public domain. Background: Geography: • 3rd largest island in the Mediterranean • 81st largest by area (9,251 km2) • 49th largest by population (1,088,503 people) Government: • Presidential Republic • Capital: Nicosia • Official Languages: Greek, Turkish Background: History • 1960 - Independence from the United Kingdom • 1983 - Turkish Cypriot-occupied area declared itself the "Turkish Republic of Northern Cyprus" • post-1974 period Transformation: o from an underdeveloped country into open, free market economy o from agriculture to light manufacturing and serviceoriented economy International Relations & Memberships • • • • • • • European Union (2004) and Eurozone (2008) The World Trade Organization (1995) The International Monetary Fund (IMF) (1962) The World Bank (1962) The Commonwealth (1961) The Council of Europe (1961) The United Nations (1960) Joining EU • 1990s - Fiscal and Monetary reforms • from 2000 - Economic growth at a rate above the EU average • 1st May 2004, Cyprus a full member of the European Union • 1st January 2008, euro adopted the as national currency at the irrevocable fixed...
Words: 1139 - Pages: 5
...Foreign Investment Opportunities in Cyprus Author: <Student> Report Date: 10/4/2013 Executive Overview: Foreword: New business investment recommendations in this report are based on medium - longer term opportunities (2 – 10 years) on the assumption that the current economic and political crisis affecting the general business and banking environment with restrictions on the free flow of capital funds into and out of Cyprus, make it impractical to execute any short term investments in this country. The short term economic outlook looks uncertain and highly volatile. Cyprus faces an extremely challenging period requiring a major restructuring of its financial services industry. Whilst in theory, the Cypriot Banking industry’s exposure to Greek government debt has been factored into the existing EU bailout calculations, any further crisis in the Greek economy and potential for foreign deposits with drawls once the current capital transfer controls (blocks) are lifted, could lead to a new crisis in the Cypriot Banking sector which could require additional EU intervention and a further period of uncertainty and economic instability. The overall effect on its economy of the current Troika ((EU, ECB, IMF) bailout conditions is yet to be felt. Future GDP short term projections vary; the IMF and EU is talking optimistically of a fall of between 5 -10% , other analysts predicts falls as great as 15% this year and another 5% in 2014 with unemployment ranging from 13.7% this...
Words: 2579 - Pages: 11
...The European Union (EU) was established in 1957 by six western European countries. Then known as the European Economic Community (EEC), its aim was to create a Common Market. During its lifetime, the EU has evolved from this Common Market towards monetary union with the establishment of a single currency, the Euro. There has also been a great deal of political integration, with an example of this being the Common Foreign and Security Policy (CFSP). Currently, membership of the European Union consists of twenty five states. The last wave of admissions included many former Communist bloc countries such as Poland, Czech Republic and Slovakia. The next scheduled enlargement is in 2007, when Romania and Bulgaria are scheduled to join. After this, the next state scheduled to join is Turkey, which will open negotiations with the EU in October 2005. Potential Turkish membership of the EU is in many ways a paradox. Turkey has for many years had pro-western leanings. Its strategic requirements during the Cold War led Ankara to strongly embrace NATO and rely on the west for its security guarantees. Also, the founder of modern Turkey, Kemal Ataturk founded the state on six profoundly western pillars. These were: firstly, Secularism, which effectively meant removing the direct influence of religious leaders on political decisions and education; secondly, Republicanism, organising the polity as a modern state, as opposed to the Ottoman Empire; thirdly, Populism, not accepting...
Words: 4260 - Pages: 18
...religion? Turks (70-75%), Kurds (18%), Others (7-12%). Predominantly Islam. c. Are there any racial or ethnic issues? If so, what are they? None. d. How are women treated in your country? Women are treated as the same as men. 4. Government and Politics a. Leader? How long have they been in power for? Are they popular? Recep Tayyip Erdogan, Prime Minister since 2003, not popular. b. Current government system? Are there free elections? Parliamentary representative democracy, there are free elections. c. Stability or situation of the country’s political system today? Unstable political system, there have been violent protests in May and June. d. Any geo-political considerations? Syrian Civil War, Cyprus dispute. 5. Education a. What is the education system like? (i.e. literacy rates, girls education, common length of time in school) Literacy rate: 94.1% Girls education same as males. Common length of time in school: 14 years. 6. Health a. What is the health system like? (i.e. infant mortality rates, HIV/AIDS infection rates, disease) Infant mortality rate: 22.23 deaths/1000 live births HIV/AIDS infection rates: less than 0.1% 7. Economy a. Dependent on any...
Words: 1352 - Pages: 6
...For the past 10 years, Turkey has grown its real GDP at about 6% annually. This came after a huge debt crisis in 2001-02, wherein Turkey had to borrow $16 billion more from the IMF and comport with its difficult conditionality. Today, Turkey is a middle-income country in search of an effective development strategy. It tends to run high inflation with a devalued currency, despite massive capital inflows and a huge current account deficit. At home, the government has carefully managed between Islamicization, democracy and secularism. And abroad, it deals with a difficult neighborhood – Syria, Iran, Iraq, Israel (not to mention Russia, Europe and the USA). Prime Minister Erdogan is trying to rewrite the Constitution before 2014, when the next election occurs. 1. What have been the strengths and weaknesses of Turkey’s growth model? 2. What is causing the current account deficit? What can Turkey do about it? 3. What do you make of Islamicization in Turkey? Has it gone too far? Will it? 4. What do you make of the government’s foreign policy – “zero problems with its neighbors”? Country Background: • Land Mass; 97% in Asia 3% in Europe • 8400 Km Coast Line. (Mediterranean & Black Sea) Rivers: Tigris & Euphrates • Population 75 mm growing at 1.2% annually. 99% Moslem of which 30% Kurdish roots • 26% of population under 15 Years. • Economic activity dominated by Services 64%, then Industry 27 % then Agriculture 9% • Informal economy (unregistered) is a substantial...
Words: 1946 - Pages: 8
...in resources of skilled manpower.So Other countries are interested to invest in India.We don’t have that much funds/money to make very huge industries or developments.There is no shame to invite other countries for investing.lot of advantages are there..employment,infrastructure development,tourism , foreign exchange and etc..Even America would be nowhere if globalisation was an imaginary concept never put forward. Half the world’s countries would be reeling in depression right now if not for globalisation. For example, petroleum, most countries are on the verge of depleting their entire reserves and some countries don’t have it at all. Seeing this if not for globalisation the entire world would be left crippled due to the massive energy crisis facing them. while globalisation is necessary it is not sufficient to ensure communities gain from globalisation. To keep and spread the gains,government must not only reduce barriers to trade and investment, they must also get domestic policies right. Many people may think that globalisation is making poor countries poorer. However the evidence is very convincing that developing countries that globalise grow and reduce poverty level faster than those that do not. For example, recent study of 72 developing countries shows in the 1990′s globalisng developing economies real incomes and output grew faster,...
Words: 2260 - Pages: 10
...Name: Institution: Course: Tutor: Date of submission: Trade Policy and Developing countries A number of developing countries have enabled the facilitation of their economies to develop recent centres of development internationally. International trade has enabled them to make an effective way to generate funds as a result of making trade. However, there has been uneven development and especially the poorest countries have managed a lesser share in the world economy. Many of these poor countries have been unable to make appropriate use of the markets that are opening around them or even try to balance losing tax revenue by developing ways of taxation, since the financial stability and internal structures of these countries are lacking in some ways. The upholding of barriers to trade and other protective measures continues by the need to keep the existing home control structures (Krueger, 45). The large numbers of developing countries highly dependent on agriculture have slow productivity rate and the trade barriers remaining are more than those for industrial goods. Industrial production has witnessed more investment by the emerging economies; this has facilitated the development and it has seen exports grow twice as much as agricultural exports, which comprise 80 percent of the total volume of exports of developing countries. It is necessary for developing countries to take free trade services and labour mobility (Colin, 42). Developing countries should develop their...
Words: 808 - Pages: 4
...Position: Internet has no globalisation effect Argument 1 • The difference between well developed and less developed countries • Developed countries offer the most information and develop the internet, where is a gap to developing countries gets wider • Developed countries need to invest to be on a competitive basis to attend the internet revolution and therefore an cultural and economic change • Internet use is restricted to urban elites https://www.imf.org/external/pubs/ft/fandd/2008/06/images/picture3.gif https://www.imf.org/external/pubs/ft/fandd/2008/06/images/picture3.gif Argument 2 • The internet is just virtual and not corresponding to real world counterparts (cf. Hafez 2007) • The internet has failed to “…fundamentally open and democratized media systems across the world”. (Hafez 2007) https://c479107.ssl.cf2.rackcdn.com/files/13117/area14mp/9jmd4bq8-1342613644.jpg Argument 3 • No authenticy for knowledge on the internet http://25.media.tumblr.com/tumblr_mbibrtTCvz1qlpjkuo1_500.jpg http://andreasjungherr.net/wpcontent/uploads/2010/12/Abbildung-1-Anteile-derBundestagsparteien-und-der-Piratenpartei-an-denStimmen-und-Twitternennungen.png http://stats.wikimedia.org/GeoTaggedArticles.jpg Argument 4 • English as universal language is decreasing, web content gets increasingly multilingual http://1.bp.blogspot.com/-Er5gCBHESRE/UZPwCVuCvEI/AAAAAAAAI4k/0pCuA60RDYE/s1600/tumblr_mmqvy6CVA91s6bw99o1_1280.png http://i.livescience.c...
Words: 339 - Pages: 2
...What I Think of Globalization Have you ever imagine the time when the world was divided into parts and every part was closed? I believe the answer is no. Nowadays our life is more convenient as we can communicate with people outside our countries, go abroad easily and even buy things from most places around the world at home through Internet. If you think you are one of those people who have benefit from all these changes, then you should thank for the globalization. It brings us a lot of changes from different area and through this process people may learn and benefit from other countries. As more and more nations catch the step of globalization, this has become the main topic in the era and all kind of voices come upon it. Some people believe that globalization will not benefit the world because of different reasons. They think it hurts both the developed countries and the developing nations, especially on the economic field. I understand that everything has two sides and globalization may have it harmful points. However, I believe what globalization has bring to the whole community on economic area is mostly positive things as it helps the developing countries with their economy, makes people live under better situation and provide more working opportunities to developing nations. At the same time, it lowers the cost of developed countries and makes strong countries get more economic benefit from this process. Maybe some people insist their point that developed nations benefit...
Words: 1156 - Pages: 5
...The Way I see it Globalization allows us to walk down the street to purchase food we have never tried, learn different languages, meet people who share ideas we have never heard of, and do much more than what we are used to. Globalization is the connecting of countries, cultures, trade, communication, transportation, technology, and money. This process of becoming globalized concerns many worldwide, with many wondering how their life will change. It is the process in which different societies and cultures integrate to gain better understandings, and live a better quality of life. This progress affects the world economically, politically, culturally, and socially. It affects each country differently, some better than others. This term once meant that more people are moving across the globe, spreading ideas and goods across borders. In today’s world, some of the matters it deals with are free trade, world banks, sweatshops, and outsourcing. Many people see the positive effects of globalization. Societies that become richer with knowledge may be accepting of all types of people, making our world more peaceful. However, I see globalization as damaging to developing and developed countries in today’s world. Workers in developing countries are prone to harsh conditions and exploitation. Developed countries suffer from greedy CEO’s and unemployment due to outsourcing. Globalization damages developing countries because many young people work in sweatshops, which damages their health...
Words: 1447 - Pages: 6
...The New Population Bomb The Four Megatrends That Will Change the World Facts The UN Population Division projects that global population will nearly halt by 2050. By that time, the world’s population will have stabilized at 9.15B people. Global income will increase far more than population over the next four decades. Four historic shifts will fundamentally alter the world’s population over the next four decades: the relative demographic weight of the worlds developed countries will drop by nearly 25 percent, shifting economic power to the developing nations; the developed countries labor forces will substantially age and decline, constraining economic growth in the developed world and raising the demand for immigrant workers; most of the worlds expected population growth will increasingly be concentrated in today’s poorest and youngest countries; and for the first time in history, most of the worlds population will become urbanized. The West is experiencing a drastic decline in population growth, and its relative decline is even more dramatic if one also considers changes in income. The proportion of global GDP produced by Europe, the US and Canada fell from 68% in 1950 to 47% in 2003. This will decline even more steeply in the future, and in 2050, the global GDP produced by these countries will be <30%. This means that, the world’s GDP growth between 2003 and 2050 will occur outside Europe, the US and Canada. From now on, therefore, the main driver of global economic expansion...
Words: 1180 - Pages: 5
...Developing countries and developed countries differ greatly when it comes to the role that women play in the society, politics and economics. In fact, what seems to distinguish developing countries most from developed ones is the education level, responsibilities, quality of life, legal rights, economic status and occupation,(if any) of the women in that country. For example, in the developing country of India, women are very low on the totem pole of society, while in a more developed country such as Japan, women have a much more active role in society and are virtually equal to men. In the developing country of India, women are left to do the work of maintain the household by performing menial tasks of subsistence farming and raising children. They are often the most exploited and least privileged person in the house (Park). Being a woman in India is a dangerous thing for several reasons. Economically it is more taxing to have a girl than it is to have a boy because if you have a girl then you have to pay a dowry to the man’s family who she is to be married to. In India all ways of telling the sex of a baby have been banned from use because many families will perform an abortion on the baby if it turns out that it is a girl. Also, if the mother can’t produce a boy, she is in great jeopardy of being killed. This is called a Dowry Death, and a 1997 report claimed that there are at least five thousand “Dowry Deaths” a year. This type of thinking is embedded in...
Words: 346 - Pages: 2
...The Tragedy of Globalization Globalization has been around for over a thousand years and is not a new development of western nations. Globalization is simply the transferring of ideas from one society to another. Amartya Sen the author of “How to Judge Globalism”, and Sen believes that the whole world benefits from global cooperation, and there is uneven distribution of benefits. He believes another downside of globalization is the belief that globalization is a modern westernized concept. Globalization is not the sole cause of the inequality of wealth between developed and non-developed nations, but it is obvious that this new global marketplace has produced unequal benefits between developed and non-developed nations. Globalization needs regulations and reforms to be put into place in order to level the playing field of benefits. Globalization benefits all nations that are involved in the global trade of goods, foreign investment, and ideas. Although, with the current global market there is room for firms to take advantage of developing nations by outsourcing jobs from developed to developing countries in order to pay workers lower wages. Many of these less developed countries benefit from foreign investment by developed nations, but According to Sen (2002) the distribution of these benefits are not equal between rich and poor. Since there are no laws pertaining to globalization or a governing body, it is a free for all in the global market. There are...
Words: 834 - Pages: 4
