Major world crises of the 20th century. Economic crises in the 20th century

One of the earliest modern financial bubble crises is the 1720 South Sea and Mississippi stock bubble.

Weigel's map of 1719 is intended to promote the sales of the Mississippi company in Germany

Famous overview of financial crises in the book “This time it will be different. Eight centuries of financial recklessness "(This Time Is Different: Eight Centuries of Financial Folly; Reinhart & Rogoff, 2009) by economists Carmen Reinhart and Kenneth Rogoff are considered the leading historians of financial crises. In their book, they trace the history from financial crises to sovereign defaults on public debt, which was a frequent form of crisis until the 18th century, just as then and now crises first cause private debt default, then bank failures and, as a result, public debt default. Reinhart and Rogoff also classify currency depreciation and hyperinflation as forms of financial crisis because they lead to a unilateral reduction or abandonment of debt.

Carmen M. Reinhart is an American economist. One of the most cited economists and the most cited female economist in the world, is one of the leading experts on economic crises	Kenneth Saul Rogoff is a prominent American economist and chess grandmaster. Professor of Economics at Harvard. One of the leading scholars in the field of comparative economics, he is often ranked among the most influential economists in the world. Chief Economist at the IMF (2001-2003).

Period until 19th century

Gradual decrease in the quality of denarius

Denarius has been the standard Roman silver coin since its introduction in the Second Punic War in 211 BC. until the reign of Gordian III (238–244 AD), when he was gradually replaced by Antoninian.

Renowned economists Kenneth Rogoff and Carmen Reinhart described how they used inflation to reduce debt by Dionysius of Syracuse in the 4th century BC; states such as the Roman and Byzantine empires devalued their currency.

One of the earliest crises that Reinhart and Rogoff studied was the default of England in 1340 following failures in a century-long war with France, which lasted from about 1337 to 1453. Then there were the early sovereign defaults of imperial Spain almost in a row seven defaults: four of which occurred under Philip II and three under his successors.

Philip II king of Spain on account of four defaults on public debt

Other global and national financial disasters from the 17th century:

• 1637 Tyupanomania in the Netherlands - although widely known as an example of the financial crisis and was a speculative bubble, modern scholars believe that its widespread economic impact was negligible and did not affect the financial crisis;
• 1720 the bubble of the South Seas Company in Great Britain and the bubble of the Mississippi in France are the earliest of modern financial crises: in both cases the companies took on the national debt of the country: 80–85% in Great Britain and 100% in France, after which the bubble burst;
• The 1772 Crisis, also known as the 1772 Credit Crisis or the 1772 Panic, was a peacetime financial crisis that first originated in London and then spread to other parts of Europe, Scotland and the Netherlands. Alexander Fordies, partner of Neil, James, Fordys & Downs in London, lost £ 300,000 on shares in an East India Company. On June 8, 1772, Fordys fled to France to avoid paying a debt, with the result that the collapse of his firm caused panic in London. Economic growth during this period was largely dependent on the use of credit, which was largely based on people's trust in banks. As confidence began to fall, the credit system was paralyzed: crowds of people gathered in banks and demanded to pay off debts in cash or tried to withdraw their deposits. As a result, by the end of June, twenty important banking houses had gone bankrupt or stopped paying, and many firms were struggling. At the time, Gentleman magazine commented, "No event in the past 50 years has remembered such a fatal blow to both commerce and public credit;"
• The Panic of 1792 was a financial and credit crisis that occurred in March and April 1792, triggered by the expansion of credit from the newly formed Bank of the United States, as well as rampant speculation by William Duer, Alexander Macomb, and other prominent bankers. Duer, Macomb and their colleagues tried to raise the prices of US debt securities and bank stocks, but when they defaulted on loans, prices fell, leading to bankruptcy. A simultaneous tightening of lending by the Bank of the United States served to exacerbate the initial panic. Treasury Secretary Alexander Hamilton was able to deftly deal with the crisis by providing banks throughout the Northeast with hundreds of thousands of dollars to buy securities on the open market, which stabilized the situation in May 1792;
• Panic of 1796-1797 - A series of economic downturns in Atlantic credit markets led to large commercial downturns in Britain and the United States. In the United States, problems first arose when the land speculation bubble burst in 1796. The crisis was exacerbated when the Bank of England suspended the issuance of payments on February 25, 1797 in accordance with the Banking Restrictions Act 1797. The directors of the Banks feared bankruptcy because the holders of the English accounts were worried about the possible invasion of France and began to seize their savings en masse. Combined with a crumbling US real estate market, the Bank of England's actions have had deflationary implications for the financial and commercial markets of the US coastal States and the Caribbean.

19th century

• Danish state bankruptcy of 1813... Denmark waged a military campaign since 1807, which ultimately led to a financial crisis that resulted on January 5, 1813, when the state failed to meet its international financial obligations.
• Panic of 1819 was the first major global financial crisis in the United States, followed by a general collapse of the American economy until 1821. The panic is associated with the transition of the nation from the colonial commercial status of Europe towards an independent economy, with its own financial and industrial imperatives and the monetary policy of the central bank.
• Panic of 1825 was a stock market crash that began with the Bank of England, arising in part from speculative investments in Latin America, including the imaginary country of Poyes. The crisis was acutely felt in England, where it accelerated the closure of six London banks and sixty banks across the country, and also manifested itself in the markets of Europe, Latin America and the United States. The injection of foreign exchange reserves from the Bank de France saved the Bank of England from complete collapse.

General Gregor McGregor (December 24, 1786 - December 4, 1845) was a Scottish soldier and adventurer. From 1821 to 1837, he attracted British and French investment to settlers in Poyisu, a fictional area of ​​Central America in which he claimed he ruled. Hundreds poured their savings into alleged Poyaisu government bonds and land certificates, and about 250 emigrated to McGregor's fictional country in 1822-23, only to find the pristine jungle; more than half of them died. Scheme Poyais MacGregor has been called one of the most insolent confidence tricks in history.

Gregor McGregor was an officer in the British Army from 1803 to 1810; he served in the Peninsular War. Joined the Republicans in the Venezuelan War of Independence in 1812, quickly became a general, and for the next four years acted against the Spaniards on behalf of Venezuela and its neighbors New Granada. His successes included a difficult month-long combat retreat through northern Venezuela in 1816. He seized Amelia Island in 1817 under a mandate from revolutionary agents to conquer Florida from the Spaniards, and there he proclaimed the short-lived "Republic of Florida." He then directed two disastrous operations in New Granada in 1819.

Upon his return to Britain in 1821, McGregor claimed that King George Frederick Augustus on the mosquito coast in the Gulf of Honduras had given him the right to rule in Poyisu, which he described as a developed colony with an existing community of British settlers. When the British press reported McGregor's deception after the return of fewer than 50 survivors in late 1823, some of his victims came to his defense, insisting that the general had been let down by those he led in the émigré party. In 1838 he moved to Venezuela, where he was greeted as a hero. He died in Caracas in 1845, at the age of 58, and was buried with full military honors in the Caracas Cathedral.

• Panic of 1837- widespread economic recession in the United States and bankruptcy of companies; followed by a 5-year depression. It is characterized, on the one hand, by a decrease in prices, profits and wages, on the other, by an increase in unemployment. Pessimism has been rife for a long time. The panic had both internal and external origins. The culprit is speculative lending in the Western states, a sharp drop in cotton prices, a bursting land bubble (in the modern interpretation, a real estate bubble burst), a reorientation of international flows and restrictive lending policies in the UK. On May 10, 1837, banks in New York suspended payments, which meant that they would no longer repurchase commercial paper at full face value. Despite a slight recovery in 1838, the recession lasted for about seven years. Banks collapsed, factories closed, prices fell, and thousands of workers lost their jobs. In some regions, unemployment has reached 25%.
• Panic of 1847- the collapse of the British financial markets, associated with the end of the 1840s.
• Panic of 1857- widespread economic recession and bankruptcy in the United States. It became the first world economic crisis, and was caused by a decline in the international economy by activity and the excessive expansion of the domestic economy in the United States.
• Panic of 1866- Overend Gurney crisis (mostly British). Overend, Gurney & Company was a London wholesale discount bank known as Bankers' bank which collapsed in 1866 due to the inability to pay liabilities of 11 million pounds sterling, equivalent to 935 million dollars in 2016.
• Panic of 1873- widespread economic recession and bankruptcy in the United States, then received the name as 5-year Great Depression, in the modern world is known as the long depression (eng. the long depression). It also caused the depression in Europe and North America, which lasted until 1879 and somewhat longer in some countries (for example: France and Great Britain). Britain began a decade of stagnation known as "Long depression", which weakened the country's economic leadership. It was also known for some time as "The Great Depression" until the events of the early 1930s set a new standard.
  Causes: American inflation after the Civil War, rampant speculative investment (mainly in railroad stocks), the demonization of silver in Germany and the United States, large trade deficits, economic instability in Europe as a result of the Franco-Prussian War (1870-71), huge fires in Chicago (1871) and Boston (1872), as well as other factors, caused enormous damage to bank reserves, which fell in New York in September and October 1873 from 50 to 17 million US dollars.
  First symptoms financial crisis began in the Austro-Hungarian capital - Vienna, and then began to spread to most of Europe and North America.
• Panic of 1884 arose during the depression of 1882-85. Gold reserves in Europe were depleted and New York's national banks, with the tacit approval of the US Treasury Department, suspended investments in the rest of the United States, creating chains of outstanding loans. A larger crisis was averted only when the New York Clearing House took over from the failed banks. However, an investment firm Grant & Ward, Marine Bank of New York and Penn Bank of Pittsburgh and more than 10,000 small firms went bankrupt, suffered huge losses, or were on the verge of shutting down.
• Panic of 1890... The crisis was triggered by insolvency Barings bank in London. In November 1890, the barons, led by Edward Baring, 1st Baron Revelstock, faced bankruptcy due to the exorbitant risks of poor investment in Argentina. Argentina itself was hit hard by the 1890 recession, with real GDP falling 11% between 1890 and 1891. An international consortium assembled by William Lidderdale, ruler Bank of England, including the Rothschilds and most of the other big London banks, created a fund to guarantee debts Barings thereby preventing major depression. Nathan Rothschild noted that if this had not happened, perhaps the entire London private banking system would have collapsed, leading to economic disaster.

Nathan Mayer Rothschild(1777-1836) - founder of the English branch of the Rothschilds.

• Panic of 1893 was a severe economic depression in the United States that began in 1893 and ended in 1897. The cause was the collapse of the railroad restructuring and the unsustainable financing of the railroad, which caused a series of bankruptcies - it deeply affected every sector of the US economy and caused the political upheaval that led to the regrouping of elections in 1896 and the presidency. William McKinley.
• Banking crisis of 1893 in Australia- Some of the commercial banks of the colony collapsed after the speculative real estate boom in the 1880s. In Australia, all banks operated in a free banking system, there was no central bank and, in addition, the government did not guarantee the operation of the banking system in any way. As a result, in 1888, after the fall in asset prices, the companies that borrowed the money began to file for bankruptcy.
• Panic of 1896- A severe economic depression in the United States, which was less severe than other panics of the 19th century, primarily caused by falling silver stocks and market fears associated with the impact of this fact on the gold standard.

20th century

• Panic of 1901- the first market crash on the New York Stock Exchange, in part caused by the struggle of wealthy houses for control of the Northern Railroad (eng. Northern Pacific Railway);
  
  
• Bank Panic of 1907- the financial crisis that occurred in the United States, during which the index of the New York Stock Exchange collapsed to the level of 50% from the peak value of the previous year. This crisis occurred during an economic recession and a massive exodus of depositors from banks and trust companies. Ultimately, the crisis spread throughout the country, with many banks and businesses declaring bankruptcy. The main reasons for the panic were a decrease in liquidity at New York banks and a loss of depositors' confidence, exacerbated by unregulated exchange speculation.
  The crisis was triggered by an unsuccessful attempt to corner in October 1907 stocks United Copper Company.
  
  A crowd of people on Wall Street during the banking panic in October 1907.
• Panic 1910-1911... characterized by a slight economic downturn following the enforcement of the Sherman Antitrust Act (Eng. Sherman Anti-Trust Act). This was mainly related to the stock market and business traders who were associated with the collapse Standard Oil Company.
• 1910 Shanghai Rubber Stock Market Crisis- approx.translation: Shanghai rubber stock market crash, caused by shareholders of rubber companies. In 1909, the price of rubber and the stock prices of companies associated with their production increased. Banks actively lent to the purchase of rubber companies' securities. In mid-1910, the United States adopted a policy of limiting the consumption of rubber and as a result, in June on the international market prices for rubber collapsed, and with them the shares of companies.
• Stock market crash of 1929 and the Great Depression that followed - the biggest and most important economic downturn of the 20th century.
  
• 1973 - 1973 oil crisis- the cost of oil rose sharply, the result was the collapse of the stock market in 1973-1974. Began on October 17, 1973 - on this day, all Arab OPEC countries, as well as Egypt and Syria, announced that they were imposing restrictions on the supply of oil to countries that supported Israel during the Yom Kippur War in its conflict with Syria and Egypt. Over the next year, the price of oil rose from three to twelve dollars a barrel. In March 1974, the embargo was lifted.
• Secondary banking crisis 1973-1975 in the UK- due to the end of the post-war recovery boom and the end of the rise in property prices.
• 1980s - Latin American debt crisis- started in Mexico in 1982 with Mexican weekend... In the 1960s and 1970s, many Latin American countries - Brazil, Argentina and Mexico - borrowed huge sums from international lenders for industrialization and infrastructure programs. On a weekend in August 1982, Mexican Treasury Secretary Jesús Silva Herzog Flores flew to Washington, D.C. to declare Mexico's foreign debt unmanageable and report that his country was on the verge of default.
• Israel Banking Stock Crisis 1983 During the 70s, Israeli banks began to try to control the price of shares on the Tel Aviv Stock Exchange. To this end, they recommended their clients to invest in the shares of their banks. The money received from investments was used to find new clients and buy back their own shares, thereby creating the appearance of constant demand for them. In addition, banks generously issued loans to clients to continue investing in their own shares. October 6, 1983, under the onslaught of sales, came "Black Thursday"... From October 9 to October 24, the exchange was closed, at the same time the currency was devalued by 23%, and the Bank of Israel bought back the shares. The average investment loss for investors ranged from 17% to 35% of the value.
• 1987 - Black Monday- the largest one-day decline in the history of the stock market. On October 19, 1987, stock markets around the world were rocked by a catastrophe, which began with the crash in Hong Kong and spread westward to Europe and the United States. The Dow Jones Industrial Average (DJIA) shed 22.61%. Due to the time zone difference in Australia and New Zealand, this day is referred to as Black Tuesday.
  
  
• 1989-91 - The US Credit and Savings Crisis. Commonly referred to as the S&L Crisis, over a thousand savings and credit associations in the United States failed in 1986-95: the Federal Savings and Credit Corporation (FSLIC) closed or otherwise destroyed 296 institutions between 1986-89, and the Trust Corporation Resolution Corporation (RTC) closed another 747 institutions in 1989-95.
• 1990 year. asset prices collapsed.
  
• early 1990s - Scandinavian banking crisis: Swedish and Finnish banking crises of the 90s:
  - Finnish banking crisis of the 1990s was a deep systemic crisis of the entire financial sector in Finland, which occurred mainly in 1991-1993 after several years of economic boom in the late 1980s. Its total value was ~ 8% of the Finnish Gross National Product (GNP), making it the most serious of modern Scandinavian banking crises.
  - Swedish economic model, characterized by close collaboration between government, trade unions and corporations. The economy had extensive and universal social benefits funded by high taxes, about 50% of GDP. In the 1980s, a financial bubble formed in the real estate market, fueled by the rapid growth of lending. The restructuring of the tax system to highlight low inflation coincided with the onset of the international economic downturn in the early 1990s, which triggered the bubble. Between 1990 and 1993, GDP contracted by 5% and unemployment rose sharply, making it Sweden's worst economic crisis since the 1930s. During this period, overall employment fell by almost 10%.
• early 1990s recession described as a period of economic downturn that affected much of the Western world in the early 1990s. Most affected: Canada and the United States, Australia, New Zealand, Finland, United Kingdom.
• 1992-93 - Black Wednesday- speculative attacks on European currencies. On September 16, 1992, the Conservative government of John Major was forced to withdraw the pound sterling from European exchange rate mechanism(ERM) after it failed to keep the pound above its agreed lower limit in the ERM. In 1997, the UK Treasury estimated the value of the black environment at £ 3.4 billion.
• 1994-95 - 1994 economic crisis in Mexico- speculation and default on Mexican debt. During the 1994 presidential election, the current administration embarked on expansionary fiscal and monetary policies. To attract foreign investors, the Mexican Treasury began issuing short-term debt instruments denominated in local currency with guaranteed repayment in US dollars. Mexico enjoyed the confidence of investors, and after signing North American Free Trade Agreement(NAFTA) and access to new international capital. However, the uprising in Chiapas, as well as the assassination of presidential candidate Luis Donaldo Colosio, caused political instability, followed by a nationwide capital flight by investors.
• 1997-98 - 1997 - devaluation and banking crises in Asia.
• 1998 Russian financial crisis... On August 17, the Russian Government and the Central Bank announced a technical default on the main types of government securities. For the first time in world history, the state has declared a default on its domestic debt denominated in the national currency.
  
  US dollar against the ruble in the second half of 1998

21 century

History knows a lot of world crises: all-embracing or affecting a narrow circle of countries, protracted and shorter - their causes, as a rule, are always different, and the consequences are extremely similar. Crisis phenomena leave an imprint not only on the economies of countries, but also on human destinies, turning many people (sometimes even the most affluent) into beggars in just a day.

The twentieth century was rich in world economic crises... A significant role in this was played by the First and Second World Wars, during which the financial markets of countries turned into "ruins", like cities after the bombing ...

Financial Crisis of 1907

The series of crises of the twentieth century was opened by the crisis of 1907, which affected 9 countries. Its reasons are purely economic, expressed in the increase by the Bank of England of the discount rate to 6% from the initial 3.5%. The purpose of such actions by Great Britain was the desire to replenish its gold reserves. The capital inflow into the country turned out to be simply incredible; the USA became its main source. Accordingly, in the United States itself, this led to negative consequences: a collapse of the stock market, a decrease in business activity, a liquidity crisis and a protracted economic recession. These events were not slow to affect Italy, France and some other countries.

World Crisis of 1914

The global financial crisis of 1914 arose on the eve of the First World War. It was caused by the complete sale of securities issued by foreign issuers. Monetary resources were required by the states to finance the ongoing hostilities, and the USA, Great Britain, Germany, France and some other countries without hesitation sold the securities they had. This global crisis is perhaps the only one of all that did not develop according to the "domino principle", but arose in most countries at almost the same time. World and national markets for goods and money crashed. In a number of countries, the situation was saved thanks to the intervention of central banks.

The First World War also ended with the crisis of 1920-1922, caused by post-war deflation against the background, as well as currency and banking crises in a number of countries.

1929-1933 - Great Depression

There are many "black" days in the history of crises, and most of them are associated with the United States. It was from “Black Thursday” on October 24, 1929 that the next world crisis began, which turned into a great depression that affected the whole world. It all started with a sharp drop in the Dow Jones and stock prices in the New York stock market. After the end of the First World War, the US economy experienced an unprecedented recovery, and the stock market became an attractive platform for investment from other countries, which caused capital outflow from Latin America and Europe. The collapse in the stock exchange amid tightening monetary policy by the US Federal Reserve led to multiple stock crises around the world. This was immediately followed by a decline in production in all countries affected by the crisis, on average by half, and as a result - a huge scale of unemployment. In the conditions of the dominance of the "gold standard" system, the authorities of many states could not make the necessary cash injections into the economy, which only exacerbated the situation. The crisis dominated the world until 1933, and its echoes were felt until the 40s of the last century.

1957 crisis

After the end of the Second World War, the 1957 crisis was the first crisis that affected several countries at once. He struck the United States, Canada, Great Britain, the Netherlands, Belgium and a number of other countries of the capitalist system. The crisis lasted until mid-1958.

The 1973-1974 oil crisis

The 1973-1974 crisis was called the oil crisis because it was caused by a sharp and unprecedented rise in oil prices, which increased by almost 400% (from $ 3 to $ 12 per barrel). Partly the reason for this phenomenon was the decrease in oil production in the Arab countries, partly - the war of Israel against Syria and Egypt. All Israel's allies (including the United States) stopped receiving oil supplies from Arab countries. During the crisis, the dependence of the economies of developed countries on energy prices was clearly exposed.

1987 year

And again the United States has a rainy day - "Black Monday" October 19, 1987, when there is another collapse of the country's stock market due to a sharp drop in the Dow Jones Industrial index by 22.6%. Following the USA, the stock markets of Canada, Australia, South Korea, and Hong Kong also collapsed.

This was followed by a series of more localized crises: in 1994-1995 - Mexican crisis , in 1997 - Asian crisis and in 1998 - Russian crisis .

The 1998 crisis turned out to be one of the most difficult for Russia in its history. Devaluation, default ... lay in the huge amount of government debt, the low level of prices for raw materials in the world, as well as in the state's large debt on the repayment of T-bills, the deadlines for which have already passed.

This is the history of the global crises of the twentieth century. His successor, the 21st century, has already begun its record of "dark days" ...

Introduction

Conclusion

Applications

Introduction

Modern society strives for continuous improvement of the standard and living conditions, which can only be provided by sustainable economic growth. However, observations show that long-term economic growth is not uniform, but is constantly interrupted by periods of economic instability and even crises. The latest major global crisis was the recent financial crisis of 2008, which once again forces a rethinking of traditional ideas about the causes of such crises and stimulates the development of a concept aimed at preventing their occurrence in the future.

Today, it is necessary not only to deal with the consequences of the crisis, but also to identify the main reasons that led to the global financial crisis.

World financial crisis<#"justify">global financial crisis anti-crisis

Chapter 1. Content and essence of the global financial crisis

1.1 The concept of the global financial crisis

The crisis is a turning point, the outcome is a sharp, abrupt change, a difficult transitional state. In the 19th century, the concept of "crisis" passed into the economy. The economic concept of crisis, which was formed at that time, means an unwanted and dramatic phase in the capitalist economic system, characterized by fluctuations and negative phenomena, obstacles. But this definition does not take into account many different schemes and stages of development and functioning of the economy. Therefore, the classical definition of the crisis was replaced by the more ambiguous concepts of "financial crisis" and "economic crisis".

Economist John M. Keynes characterized the phenomenon of the crisis as a sudden and abrupt change from an upward trend to a downward trend, whereas in the opposite process, such a sharp turn often does not happen. For a long time, the concept of a crisis has occupied a firm place in the scheme of theories of conjuncture in the development of the economy. For example, Spiethoff's cyclical scheme contains stages: recession - first rise - second rise - peak - lack of capital - crisis. Developed at the beginning of the century, Harvard's scheme distinguishes between depression - recovery - prosperity - financial stress - industrial crisis (from the English Depression - Recovery - Prosperity - Financial Strain - Industrial Crisis).

Karl Marx argued that the source of crises in social development is an economy based on private property and thus influencing the structure and clash of interests. From this, politicians and ideologists in our country deduced the position that a socio-economic formation that has eliminated private property excludes the very possibility of a crisis. Therefore, instead of a crisis, terms such as "growth difficulties", "development problems", "stagnation" were used, and essentially reflected the same processes.

A financial crisis is a deep disorder of the state financial system, accompanied by inflation, volatility of securities prices, manifested in a sharp discrepancy between budget revenues and expenditures, instability and fall in the exchange rate of the national currency, mutual non-payments of economic entities, inconsistency of the money supply in circulation with the requirements of the law of monetary circulation ...

The main forms of manifestation of the global financial crisis in 2008 are, first of all, losses and bankruptcy of mortgage companies, banks and hedge funds, a decrease in the standard of living of the population, mostly of the middle class and people with low incomes, as well as mass layoffs of workers and an increase in prices. for goods.

A financial crisis is a crisis that systematically encompasses financial markets and institutions of the financial sector, money circulation and credit, international finance (country segment), state, municipal and corporate finance and has a medium and long-term negative impact on economic activity in the country and on the dynamics of welfare population, as well as manifested as follows:

in the financial sector and financial markets - a sharp increase in interest, an ever-increasing share of problem banks and non-bank financial institutions, problem debts, a significant reduction in loans to the economy and households, chain bankruptcies, a transition to a loss-making model of banking and other financial activities, the prevalence of speculative over investment financial activities, a large-scale drop in securities prices, delays in settlements with the growing collapse of the payment system, the emergence of massive losses in the derivatives market, the termination of liquidity in financial markets and financial institutions with a domino effect, banking panic;

in international finance - uncontrolled depreciation of the national currency, massive capital outflow from the country, uncontrollable increase in external debt and overdue payments by the state and commercial organizations, transfer of systemic risk to the international market and financial markets of other countries;

in the field of monetary circulation - a sharp uncontrollable rise in prices with the transition to chronic inflation, flight from the national currency, the rapid introduction of hard foreign currency into the domestic market, the massive appearance of money surrogates;

in the field of public finances - a sharp drop in the value of gold and foreign exchange reserves and government stabilization funds, the emergence of a deficit or an aggravation of the budget deficit brought about by the crisis, a rapid reduction in tax collection, a fall in budget financing of government spending, and an uncontrollable increase in domestic public debt.

Currently, there is hardly a company or industry in the world that has not experienced the impact of the crisis. The mechanisms of the spread of the global financial crisis of 2008 are a series of bankruptcies of banks, insurance companies, mortgage companies, bank losses, loan defaults, a liquidity crisis, which is associated with the rapid withdrawal of funds from risky assets and transferring them to less risky market segments, an increase in interest rates for the market for interbank loans, refinancing problems, slowing growth in almost all economies in the world, etc. The global financial crisis, which manifested itself in 2008 in the form of deterioration of the main economic indicators in most countries, and the global recession that followed at the end of the same year.

As already mentioned, the crisis also has a positive side. Crisis in Chinese is denoted by two hieroglyphs, the first of which means "collapse and dangerous time" and the second means "new opportunities." “Seizing a rare opportunity requires careful but quick identification of weaknesses, and then decisive action to speed up its rear. And then, once you are in a strong position, you can take steps that will provide a long-term competitive advantage in the future: invest in new product development. etc. ".

The modern global financial crisis can be roughly divided into 3 stages:

Stage 1.From August 10, 2007 to September 15, 2008. Time from the beginning of the global crisis, the first joint intervention of the central banks of the world's leading countries, to the bankruptcy of the largest bank Lehman Brothers.

Stage 2.From September 15, 2008 to early April 2009. Time of the spread of the crisis and the world economic recession.

Stage 3.After April 1-2, 2009. This stage can be called the time of self-determination of the leading global players in the world economy.

Analysts and experts believe that September 15, 2008 is a landmark historical event, linking this date not only with the bankruptcy of the world's largest bank Lehman Brothers, but also with the regrouping of forces on Wall Street. Bear Stearns was acquired by JP Morgan Chase, Lehman Brothers filed for bankruptcy, and Bank of America announced the purchase of Merrill Lynch.

Today we can say with confidence that thanks to the energetic emergency actions of the governments of the leading industrial countries of the world, which within the framework of stabilization programs provided banks and financial institutions with assistance totaling about $ 4,000 billion, it was possible to prevent the collapse of the global financial system. We will consider in more detail the ways of overcoming and anti-crisis programs in Chapter 3.

1.2 The largest financial crises of the 20th century

In order to understand the main reasons for the current global financial crisis in 2008 and analyze the anti-crisis measures that have been taken by various countries, let us consider the largest financial crises in world history of the last century.

During the 20th century, most financial crises were associated with banking crises and the resulting panic. The largest and most famous is the Great Depression.

Great Depression 1929-1933 The crisis period from 1929 to 1933 in the USA it is called the Great Depression. The 2008 global financial crisis has a lot to do with the Great Depression, so learning the lessons of the Great Depression is essential for predicting events in the global economy.

The Great Depression is a prolonged recession in the global economy that occurred in 1929 and finally ended in 1940. At the same time, the recession spread to most of the Western countries and other countries around the world. In fact, the Great Depression is a global economic crisis, and the term itself is usually used in relation to the United States of America.

In the early twentieth century, the US economy experienced a real boom. High economic conditions were noted. However, growth was more based on speculation than on real economic growth. The national income of the United States increased from $ 32 billion in 1913 to $ 89.7 billion in 1927. The US economy dominated the global economy. However, after the end of the First World War, spending on the purchase of weapons fell sharply, which led to a recession among the military-industrial enterprises. Gradually, the crisis spread to other sectors of the economy, including the banking sector, coal mining, energy, textiles, etc. The situation in agriculture is not the best either. Unemployment was on the rise, and technological progress was one of its causes. Graph 1 shows more clearly the dynamics of unemployment in the United States in the 1920s and 1930s. More than 200,000 people lost their jobs annually during the Great Depression.

Graph 1. Unemployment in the United States in 1910-60.

Thus, a number of events preceded the crisis. In 1927-28. the construction boom ended and land and property prices began to rise. The US economy entered a downturn in August, two months before Black Monday. Despite the fact that the US currency was pegged to gold, there was hidden inflation. The money supply was increased by 62%, and, of course, the United States did not have such a volume of gold to cover the cash in circulation. The events of the US Stock Exchange Crash of 1929 also preceded the Great Depression: a landslide in stock prices that began on Black Thursday, October 24, 1929, and became catastrophic on Black Monday (October 28) and Black Tuesday (October 29). ... October 29, 1929 is the day of the Wall Street stock market crash. During the month, losses amounted to $ 16 billion - a fantastic amount at that time.

At the same time, the US Federal Reserve for the first time in its history of existence sharply reduced the discount rate from 6.5% to 3.5%. The total money supply as of December 31, 1928 was $ 73 billion, and on June 29, 2009, it was $ 73.26 billion. futures. As of October 1, 1929, the total value of the issued securities was $ 87 billion.

The amount of money grew faster than the growth in industrial productivity. Since the amount of money was tied to gold, derivatives were used. The Fed began to restrict the growth of the money supply. All this led to the economically unjustified accumulation of financial derivatives in the financial system. This imbalance in the financial system led to the collapse of Wall Street in October 1929.

October saw a landslide fall in share prices, primarily on the NYSE. This day is called "Black Tuesday". In one day, shares fell by a total of $ 10 billion, which meant a sharp decrease in the amount of credit money. The fall continued for a whole week. On November 5, 1929, the fall spread to the commodity market, and on November 13, the market reached an all-time low.

Banks stopped giving loans due to the fall in confidence in all credit money. Consequently, due to the impossibility of obtaining loans anywhere, a wave of bankruptcies swept across the country. The crisis has engulfed all industries. According to official statistics, during the crisis, more than 110 thousand industrial enterprises, 19 large railway companies went bankrupt, more than 5760 banks went bankrupt.

The US Congress adopted a number of anti-crisis measures to combat the crisis, and several laws were developed, and specialized organizations were created to deal with the crisis. In particular, taxes were raised. However, these measures were not enough, and incumbent President Gerber Hoover lost the election to Democrat Franklin Roosevelt. The new president announced the start of a new course, and the first measures were to stabilize the banking system and fight unemployment. A number of laws were issued that were aimed at improving the economic situation. Eight new structures were created, the main task of which was to fight the crisis: they provided loans to farmers, were engaged in organizing public works, insuring bank deposits to stop panic, etc. The United States refused to peg the exchange rate to the value of gold. As a result, the rate of decline in the United States has noticeably decreased: in 1933 they amounted to 2.1%, unemployment rose and reached the level of 24.9%. Roosevelt believed that the main problem of capitalism was the overproduction of marketable products, so he drew attention to the area of ​​credit and trade. The main event of Roosevelt's New Deal was the support of the financial system, large enterprises, with the help of subsidies and loans.

As a result of Roosevelt's policy, the positions of the big bourgeoisie were strengthened in the United States. Already in 1935, the US GDP grew by 8.1%, and the unemployment rate dropped slightly to 20.1%. Sweden and Germany were among the first states to emerge from the crisis. These countries acted in a similar way to the United States. In 1937, the United States and England experienced another recession due to high government spending. However, thanks to military orders, industrial production increased, and the Great Depression ended around the world, but World War II began.

There is still no consensus among economists about the reasons for the onset of the Great Depression in the United States. However, it is unambiguous that in 1929, negative trends appeared in the economies of the United States and European countries. The first to emerge from the crisis were the United States, Great Britain, Germany, Sweden, which, to one degree or another, used the Caseian model, which provides for a sharp increase in government spending and strengthening of government regulation.

The experience of the Great Depression is very important and useful, as in some indicators the Great Depression and the global financial crisis of 2008 are similar. Both the 1930s and 2008 saw a strong decline in production. Both crises were preceded by speculation in derivatives.

The financial crisis in Japan in the 90s. The prolonged stagnation and recession experienced by the Japanese economy in 1990-2003 is often called the "Great Recession", which also has much in common with the 2008 global financial crisis. In both cases, the crisis began with a bubble. By the late 1960s, Japan had become the largest exporter, and since 1981 the country has entered a continuous strip of trade surplus. From 1968 to 1989, the trade surplus was $ 75 trillion. yen. This led to an increase in the purchasing power of the Japanese. The foreign capital that has poured into Japanese banks and the favorable interest rate have boosted lending. All of this created the Japanese financial bubble.

The collapse of the Japanese economy began in 1989. Japanese stocks during 1985-1990 rose in price fourfold, and land and buildings - several dozen times. The Bank of Japan has indeed brought down interest rates. Now long-term loans were issued not at 7%, but at 5%, and short-term loans in general at 4%. Of course, the number of those wishing to borrow only increased. The bubble has inflated to a size unheard of in human history. But then came 1990, and it burst. In 1990, Japanese real estate fell in price as a widow. Securities prices fell sharply. Many banks are faced with the problem of loan defaults, and they have to rely on real estate that can be sold for a maximum of two-thirds of the original amount. In 1995, bank failures began for the first time after World War II.

The Japanese government has begun to pass anti-crisis legislation and has done everything to save the banks, which have accumulated trillions of bad loans. A program was adopted to stimulate the economy totaling $ 888 billion. First of all, government subsidies were given to large construction companies and banks that were on the verge of bankruptcy. In order to stop the fall in share prices, the Bank of Japan began buying securities as the Nikkei index fell below 12000. As banks spent all the funds they received from the government to cover their losses on bad debts, and there were practically no new loans gave, the Bank of Japan redeemed securities directly from commercial and industrial enterprises, and not from banks. The discount rate was gradually reduced from 6% in 1991 to 0% in 2000.

In 1996, thanks to the competent actions of companies, the depreciation of the yen, investments in the construction industry and the government's anti-crisis policy, there was some recovery. As a result of the anti-crisis policy, Japan managed to overcome the crisis, but the national debt continued to grow and rose to enormous levels. Graph 2 shows the dynamics of the growth of Japan's public debt.

In Japan, the indicator of public debt changed, thus, in 1993 - 60%, in 1999 - 100%, in 2004 - 160%.

Chart 2. Dynamics of Japan's public debt in 1964-2009.

The ways in which Japan was able to overcome the crisis in the 1990s are useful to study and can be used in dealing with the financial crisis.

Financial crisis in Mexico (1994-1995). Next, consider an equally interesting example - the Mexican financial crisis. In the late 1980s, the Mexican economy developed at a good pace. It was possible to reduce inflation to 10% per year, and the annual GDP growth averaged 3%. Mexico joined the Organization for Economic Cooperation and Development. Back in September 1994, the annual report of the World Economic Forum spoke of favorable prospects for the Mexican economy, based on the fact that "investors are attracted by a policy of bold reform." In terms of the number of billionaires, Mexico in 1994 ranked 4th in the world after the United States<#"center">Chapter 2. Causes and Features of the 2008 World Financial Crisis

2.1 Features of the global financial crisis

The main feature of the 2008 global financial crisis is its uncommonness, as well as the speed of its deployment. The global financial crisis of 2008 is both deep and widespread. Since the Great Depression, the 2008 crisis has swept the world for the first time and is global in nature. In just a few months, it quickly spread to most countries and became a myrrh crisis. Started in the context of globalization, this crisis is unprecedented in scale, covering almost all developed and dynamically developing countries and regions.

Another feature of the latest financial crisis is its comprehensiveness. It covered all spheres of the economy, in particular the financial one. This crisis, which began as a mortgage crisis in the United States, soon took on a general financial character, then grew into a general economic one, causing:

recession, primarily in America, Western Europe, Japan;

reduction of certain sectors and spheres of the economy in many other countries;

a significant reduction in the growth of social production in the developing world, etc.

For many decades, the developed capitalist world as a whole has not experienced an annual recession. The crisis turned out to be painful for the banking system and investment companies. It caused an unprecedented collapse in stock markets, a sharp decline in oil prices (see Chart 3), a huge decline in prices for metals and many other types of raw materials. And, oddly enough, at the same time, in its first phase in 2008, it caused inflation to double and triple in developed countries and a significant acceleration in inflation in developing countries.

The depth of the crisis is such that for anti-crisis measures in order to mitigate the consequences of the crisis, a total of about a trillion dollars was required. In the USA, in European countries, in Russia, huge funds were allocated to fight the crisis, amounting to 10-15% of the GDP. History has never known such large-scale anti-crisis programs around the world. Thus, the collapse of the world financial system was avoided.

Also, the current crisis is of a structural nature and presupposes a serious renewal of the structure of the world economy and its technological base.

The first months of 2008 demonstrated stable rates of economic growth, which took place against the backdrop of a boom in prices for major Russian export goods, including oil prices, and continued low interest rates on the international financial market. Russia began to talk about the country's prospects for 2020, as it seemed that sustained high energy prices and low interest rates on the international market would ensure long-term growth.

Graph 3. Dynamics of oil prices from 1998 to 2008.

The crisis began to spread from the United States to Europe while maintaining high growth rates, such developing countries as Brazil, China, India, etc. However, in August 2008, it became obvious that the financial crisis had grown into a global one and affected both developed and developing countries.

Another important feature of the crisis is that it is innovative in nature. Much has been said about the importance of innovative development of the economy. However, the crisis is based on the emergence of financial innovations, i.e. new financial instruments. The price of oil has always been controlled to some extent by oil producers, as it depended on supply and demand. However, at present, with the development of markets for secondary financial instruments, the situation has changed. Now the oil price practically does not react to the efforts of the OPEC countries and the actions of oil producers. Now the value is formed in the financial markets, trading secondary financial instruments related to the supply of oil, and instruments that have practically no relation to the real movement of this commodity.

As for Russia, the peculiarity of this crisis for the country was that for the first time in the last hundred years, it is facing a global crisis as part of the global financial system. The 1998 crisis was different and was generated by internal reasons (weak government, which is not able to carry out macroeconomic and budgetary policies). In general, all the main forecasts made by economists and analysts have come true: the prices of oil and other major Russian exports have fallen, a deficit in the balance of payments has arisen, the country's dependence on foreign investment has increased, etc.

The peculiarities of the Russian crisis can be attributed to the fact that in the United States and Europe the recession took place under the threat of deflation, for industrialized countries the inflation forecast was 0.5%, and in Russia the inflation forecast was 13%, and according to some experts, 15-17 %. Another specific feature of the Russian crisis is associated with the choice, which is associated with the presence of such reserves as the National Welfare Fund, the Reserve Fund and the Central Bank's gold and foreign exchange reserves.

The global crisis did not have a negative impact on the country's economy for some time, and the reason for this, according to the World Bank, can be called good macroeconomic conditions, in particular high energy prices, a balanced budget policy and the lack of impact on Russia of the mortgage lending crisis in the United States. However, already in August - September, the Russian economy faced a triple problem:

oil prices fell sharply from $ 144 per barrel (a $ 1 price cut reduces annual export income by $ 1.6 billion and budget revenues by $ 1.1 billion, respectively);

in mid-2008, a sharp outflow of capital from Russia began, which was not compensated for by a return inflow;

borrowing conditions for Russian businessmen were sharply tightened. Consequently, the increase in the cost of loans led to a decrease in consumer demand.

World Bank economists note that if by the beginning of the current global financial crisis Russia did not have a significant budget surplus and a huge amount of resources accumulated in the stabilization fund and foreign exchange reserves, the consequences of the crisis would have affected much earlier and would have been much more serious. Equally important, the Russian government would have had much less time, resources, possible options for economic policy and freedom of maneuver in order to limit the impact of the crisis on the real sector.

Summing up, it should be noted that the nature and mechanisms of such shocks, which the world has faced, are always mysterious and incomprehensible to the end. For decades, global crises have been the subject of debate among economists and politicians, hundreds of dissertations and thousands of scientific articles are devoted to them. It is very difficult and practically impossible to give an unambiguous answer. The phenomenon of the Great Depression of the 1930s. still has not found a final resolution, and to this day discussions continue about the reasons, as well as about how effective the measures of F.D. Roosevelt on overcoming the crisis.

2.2 The main causes of the global financial crisis

Many economists attribute the crisis to problems in the US mortgage market. However, the crisis is based on deeper fundamental reasons, including macro - and microeconomic ones.

Considering the causes of the crisis, it is customary to criticize the activities of the US administration for inadequate budgetary and monetary policy. First of all, this means increasing the budget deficit instead of returning to Clinton's policy of budget surplus. Also, another factor in the crisis was the unprecedented rate of economic growth, which made it possible to increase world GDP by a quarter in 5 years. Such a sharp rise inevitably accumulates systemic contradictions.

The fundamental premise of the financial crisis is the target function of business development, which has undergone a major transformation over the past two decades. In particular, to date, the main growth indicator was the growth in capitalization, which interested shareholders. However, capitalization does not fully show performance. For good reports to investors, the owners of the company try to absorb and open new enterprises, and do not close old ones so that the capitalization does not decrease. As a result, inefficient production facilities and enterprises will remain.

The main macroeconomic reason was the excess liquidity in the US economy, which, in turn, was determined by many factors, including:

general decline in confidence in emerging market countries after the 1997-1998 crisis;

investments in American securities by countries accumulating foreign exchange reserves (China) and oil funds (countries of the Persian Gulf);

the policy of low interest rates, which the Fed pursued in 2001-2003, trying to prevent a cyclical recession in the US economy.

According to the director of the Institute of New Economy of the State University of Management, Academician of the Russian Academy of Sciences Sergei Glazyev, the main causes of the global crisis are:

self-destruction of the US debt pyramid;

virtualization of financial transactions (financial derivatives, derivatives), which led to an underestimation of financial risks and the separation of the financial market from the real sector of the economy;

devaluation of a significant part of capital amid exhaustion of opportunities for economic growth based on the dominant technological order and the related structural crisis of the economies of leading countries.

Excess liquidity, which was mentioned above, has activated the emergence of market bubbles. Bubbles appeared in real estate markets, commodity markets, etc.

Among the microeconomic reasons are the development of new financial instruments. Derivatives were believed to mitigate risks by distributing them among investors and providing a correct valuation. However, the use of derivatives has effectively masked the risks associated with the poor quality of subprime mortgages and led to their opaque distribution among a wide range of investors. We are talking about a special type of securities - derivatives. These are the so-called derivative financial instruments. They are associated with ordinary securities and, in fact, are virtual money. Today, a huge number of them have been released. Roughly, experts estimate the global derivatives market at $ 600 trillion. It was the derivatives linked to US mortgage bonds that detonated the current global financial crisis, the causes of which are certainly more fundamental.

Among the institutional reasons, there is an insufficient level of risk assessment by regulators and rating agencies.

As the US economy entered a recession, a different trend emerged. In the third quarter of 2008, the volume of mortgage loans issued to the population amounted to only $ 415 billion (see Chart 4). The growth rates of consumer loans have significantly decreased - in November 2008 compared to October, their volume decreased by 3.7%.

Chart 4. Mortgage loans in the USA (billions of dollars)

According to a number of experts, the main reason for the collapse of the world economy is the overproduction of the main world currency - the US dollar, as well as the elevation of the monetary unit of one state to the status of "international currency reserves" (moreover, a unit issued not by the state, but by the community of private banks - Fed shareholders USA). In addition, it is a refusal of the United States to provide in any way the commodity base of this currency. As a result, many countries, owners of dollar foreign exchange reserves, were forced to circulate and use non-monetary debt obligations of a certain group of persons to pay off their debts. In addition to this, these countries kept their dollar reserves in American banks, as they tried to somehow minimize their losses from the declining commodity filling of the dollar. American banks, faced with the problem of placing extra dollars, began to carry out risky operations: financing "bubbles" in the stock market, the distribution of cheap mortgage loans, with virtually no control over borrowers, and so on.

This crisis also has quite obvious and well-known reasons - a conflict of interests among the leading operators of financial markets and the absence of an effective mechanism for their personal responsibility for their actions. Any financial crisis is based on the actions of banks and large speculators. They make incredible profits during the period of inflating "bubbles", and during periods of recession they leave their clients to bear all the losses.

Since 1971, after the dollar was removed from the gold standard, dollars were printed in unlimited quantities. The purchasing power of the dollar was provided not only by the GDP of the United States, but also by the GDP of countries around the world. At the same time, those states whose economies began to provide the strength of the dollar have never had and will not be able to have control over the volume of dollar emission. However, the US government does not really have control either, since only the US Federal Reserve, owned by 20 private US banks, has the right. From 1971 to 2008, the volume of the dollar supply increased tenfold.

Gradually, the US financial crisis began to spread throughout the world. American corporations began an urgent sale of assets and the withdrawal of money from other countries. According to the Bank of England estimates, the total losses from the crisis in the economies of the USA, Great Britain and the EU amounted to more than 3 trillion. Doll.

In Russia, due to the underdevelopment of market lending, many banks borrowed funds from abroad, and due to the financial crisis abroad, new portions of finance ceased to flow. There was a shortage of resources in banks. Consequently, they ceased to be a source of lending to the real sector of the economy.

Events in the US economy negatively affected the stock markets in developed and developing countries.

Graph 5 shows the dynamics in 2007-2008. one of the main American stock indices S&P 500 and the stock index for emerging markets MSCI ЕМ, developed by Morgan Stanley.

Chart 5. Stock indices of the USA and emerging markets (the data on the chart does not reflect the intra-monthly dynamics of the indices)

Thus, although the state is forced to actively intervene in the activities of the financial sector when the threat of a systemic crisis arises, but already at this stage it should not only think about repelling immediate threats, but also have a long-term plan to return the leading role to the private sector.

The global financial crisis has highlighted the need for joint coordinated actions on the part of the governments of developed and developing countries to overcome it and reform international financial institutions. This, in particular, is stated in the Declaration of the G20 summit on financial markets and the world economy, held on November 15, 2008 in Washington. The Declaration instructs the governments of the G20 countries and the expert community to prepare proposals for joint actions aimed at overcoming the global crisis.

2.3 Consequences of the global financial crisis

The global financial crisis has affected almost all countries of the world, including developed and developing countries. During the global crisis, the five leading US investment banks ceased to exist in their former capacity: Bear Stearns was resold, Lehman Brothers went bankrupt, Merrill Lynch was resold, Goldman Sachs and Morgan Stanley changed their name, ceased to be investment banks due to special risks and the need to obtain additional support from the US Federal Reserve. Table 1 below shows the number of bank failures in the United States during the financial crisis.

Table 1

Year 200720082009 Until 25 May 25 July August 1 August 29 October 3 October 23 Number 3253664698498106

On the eve of the crisis, the Russian economy demonstrated very good macroeconomic indicators: a significant budget and current account surplus, a rapid growth of gold and foreign exchange reserves and funds in budget funds. At the same time, in recent years, there has been some relaxation of monetary and budgetary policies. Thus, in 2007, federal budget expenditures increased in real terms by 24.9%, that is, their growth was more than three times higher than GDP growth. The economy developed persistently low interest rates, which were actually negative in real terms, which led to a rapid growth in lending. The natural result was the "overheating" of the economy. On the one hand, this contributed to an increase in inflationary pressure, and on the other, a rapid increase in external borrowing.

The first sign of the incipient crisis in Russia was the downward trend in the Russian stock markets at the end of May 2008 (see Chart 6), which turned into a collapse in quotations at the end of July, due to the military-political actions of the country's leadership in early August (the Russian-Georgian conflict) ...

Chart 6. The Russian stock index MICEX<#"267" src="doc_zip7.jpg" />

Chart 7. Dynamics of the US dollar against the Russian ruble

Such an increase in the dollar exchange rate, as you know, is associated with a high demand for dollars due to the withdrawal by investors, primarily TNCs and banks, of their assets from many countries and their transfer to dollar assets, as well as with the increasing accumulation of the reserve currency, which is the dollar. ...

Such a strengthening of the dollar for Russia rather has a positive meaning, stimulating Russian exports and increasing the profitability of import substitution, due to the rise in prices for imported goods from far abroad. But, on the other hand, it depreciated by tens of billions of dollars a part of the country's international (gold and foreign exchange) reserves, which the Central Bank transferred to some extent to euros and pounds sterling. The purchase of foreign technological equipment has risen by 20% in ruble terms - and this is half of the imports of the Russian Federation. In this regard, additional difficulties arose in updating the hopelessly outdated fleet of machines and equipment, which prevails in many sectors of the economy. Debt repayment to foreign investors has also risen in price by 20% in ruble terms and has become more problematic. The appreciation of the dollar caused a certain panic among the population, which began to buy up dollars, replace ruble deposits with dollar deposits, withdraw ruble deposits from banks, converting these funds into dollars and keeping them at home. Trying to prevent a sharp, abrupt rise in the dollar against the ruble, the Central Bank was forced to spend a significant part of its international (gold and foreign exchange) reserves.

Brazil. In December 2008, the President of Brazil signed a decree on the formation of a "sovereign wealth fund" in the amount of up to $ 6 billion, financed from the state budget surplus (up to 3.8% of GDP). The purpose of the fund is to provide investment for Brazilian companies in the face of collapse of external sources of credit.

India. The government has announced the allocation of up to $ 5 billion to assist exporters. A number of analysts expect a partial reorientation of the Indian economy towards trade with other Asian countries, especially with China, also for domestic demand, and for large infrastructure projects. In a September 2008 statement by Prime Minister Manmohan Singh, the Indian government "gives top priority to measures to isolate the country from the global financial crisis." Measures have been taken to devalue the Indian rupee and to inject funds into the economy by the state. India's central bank cut its benchmark interest rate. In December 2008, for the first time in 15 years, a decline in industrial production was noted, taking place against the backdrop of a negative reaction from investors to the terrorist attack in Mumbai. There is a sharp drop in stock prices and an outflow of foreign capital from India.

China. According to the results of the first three quarters of 2008, the volume of China's gold and foreign exchange reserves amounted to about 2 trillion. dollars, however, in the fourth quarter, these reserves began to decline, falling to 1.9 trillion. The PRC authorities announced a plan to invest up to 586 billion dollars in the renovation of infrastructure and in agriculture. This amount is up to 18% of China's GDP, while the Paulson Plan in the United States is up to 6% of GDP.

November 2008, Minister of Human Resources and Social Security, member of the State Council of the PRC Yin Weimin officially recognized the increase in the number of unemployed in the country, calling the situation "critical": export-oriented factories are forced to close. In connection with the reduction in external demand, the intentions of the Chinese government to reorient the economy towards domestic demand are announced. Also, representatives of the PRC announced the proposed transfer of their reserves to gold. The deterioration in the global market situation led to the fact that the Chinese industry reduced the demand for raw materials, which, in turn, led to a decrease in world prices, including for metallurgy products. On January 7, 2009, the Xinhua news agency, commenting on the statements of Henry Paulson and Ben Bernanke, blamed the US authorities for the global crisis, accusing them of "excessive emission of dollars with the connivance of control agencies."

Japan... On October 10, the Nikkei 225 fell to its lowest level since May 2003, dropping 881.06 points (-9.62%) to 8276.43 points. The Central Bank of Japan has directed more than $ 80 billion to support the financial market. At the beginning of the crisis, Yamato Life Insurance Co. went bankrupt. Ltd., which owed approximately $ 2.7 billion.

Canada... Canada's GDP contracted 0.1% in May 2008, driven by a 1.2% contraction in the mining, oil and gas industries and a 3.6% contraction in the automotive industry. In early December 2008, the Bank of Canada lowered its refinancing rate to its lowest level since 1958, and acknowledged that the country's economy had entered a recession.

Ukraine... During the crisis, Ukraine took a large loan from the IMF in the amount of $ 16.5 billion, with the country's total gold and foreign exchange reserves at that moment about $ 32 billion. At the same time, the Fund set and Ukraine adopted the conditions for managing the country's economy. As of December 1, 2008, the first tranche was received - $ 4 billion. The loan is intended to repay the debts of commercial enterprises and banks of Ukraine to Western creditors. Despite the loan, Ukraine is one of the countries most affected by the crisis.

Eurozone... In France, in early January 2008, a scandal arose around the Societe Generale bank, whose trader during 2007, using the margin trading mechanism, opened positions on the indices of European stock exchanges for a total of about 50 billion euros, which is about 1.5 times more than the bank's capitalization ... As a result of the sharp fall in the stock markets, losses of about 5 billion euros arose on open positions. On January 18, 2008, the transactions were declared fraudulent and all positions were closed, which triggered a wave of sell-offs in the stock markets. In Denmark, GDP contracted 0.6% in the first quarter of 2008. Estonia dropped 0.9% in the second quarter after 0.5% in the first, as a result of which the country was engulfed in recession. In Latvia, a drop of 0.2% in the second quarter after 0.3% in the first quarter, which also resulted in a recession. Sweden posted zero growth in the second quarter. The European Union economy contracted 0.1% in the second quarter.

In the euro area as a whole, industrial production fell 1.9 percent in May, the largest drop since the 1992 crisis. European car sales fell 7.8 percent in May compared with 2007. Retail sales fell 0.6% in June from May and 3.1% from the previous year. Germany was the only country of the four largest economies in the eurozone to register an increase in production in July, although the size of the increase has declined sharply. In the second quarter, the size of the eurozone economy decreased by 0.2 percent.

Ireland during the first quarter of 2008 reported a 1.5% decline in GDP, a record decline since 1983. Ireland's GDP contracted 0.5% in the second quarter as a result of Ireland being the first eurozone member to enter a recession.

Spanish construction company Martinsa-Fadesa has filed for bankruptcy after failing to refinance a € 5.1 billion debt. In the second quarter, property prices in Spain fell by 20%. Deutsche Bank expects a 35% fall in property prices in Spain by 2011. Spanish Prime Minister Jose Luis Zapatero has accused the European Central Bank of exacerbating the situation due to raising interest rates. Car sales in Spain fell 31% in May. The decline in production reached 5.5% in May. The decline in retail sales in Spain reached 7.9% in June compared to the previous year. In June, food sales were down 6.8%. In Germany, retail sales fell 1.4% in June 2008; in the second quarter, the German economy showed a decline of 0.5 percent. In Italy, Fiat announced plant closings and layoffs at factories in Turin, Melfi, Imola and Sicily. The Italian economy contracted 0.3% in the second quarter of 2008. In the Netherlands, industrial production fell 6% in May.

Chapter 3. Measures and programs to overcome the financial crisis

3.1 Anti-crisis measures and programs of the government of different countries and their comparison

The previous two chapters examined in detail the main causes of the global financial crisis, as well as a comparative analysis with previous crises. This chapter will be devoted to specific anti-crisis programs that have been adopted by various countries, primarily the United States, to combat the crisis.

The global financial crisis affected almost all countries to one degree or another, several convocations of the G20 countries were held, as a result of which various decisions were made. One of the main decisions was the allocation of 5 trillion. dollars to solve the problems of the economy. During one of their meetings, the heads of financial departments and central banks of the G20 leading economies of the world stressed that the problem of huge budget deficits requires immediate attention. The US and EU have proposed the idea of ​​introducing a global tax on banks, but some developing countries, as well as Canada and Australia, oppose it. In any case, several provisions have been adopted indicating the need for stricter regulation of the amount of amounts that banks should have as reserve.

Finance ministers also noted in their statement that the financial sector should make a "fair and visible contribution" to aid arrangements that may be needed in the future. In addition, the ministers stated the need for tighter control and regulation of the functions of hedge funds, credit agencies, as well as greater transparency of their activities.

Among the most important measures, one can single out the provision of liquidity, the expansion of guarantees for bank deposits of individuals, the redemption of some banks by the state, an aggressive reduction in refinancing rates, etc. At the same time, the governments of the countries decided to reduce the exchange rate of national currencies against the US dollar, which was supposed to preserve international reserves, as well as become an additional factor in stimulating domestic production.

Since the global financial crisis began in the United States and affected most of the countries of the world, consider the anti-crisis measures that were taken by the country's government.

The Treasury Department's program of anti-crisis measures to reform the financial regulation system in the United States emphasizes:

the need for coordination of actions to regulate different segments of the financial market, since “the current system of financial regulation includes separate regulatory agencies that are responsible for different segments of the financial market”, which does not allow regulation with the required level of coordination;

the importance of further expanding the functions of the FRS (central bank) in terms of ensuring the stability of the entire financial market, and the entire financial system in addition to its traditional functions, which include, among other things, maintaining the level of employment and economic growth.

In early October 2008, the proposals of the US Treasury Secretary Henry Paulson were approved. Emergency Economic Stabilization Act 2008<#"center">3.2 Anti-crisis measures of the Russian Federation

The global financial crisis came as an unexpected shock to the global economy. No one expected such a rapid development of the crisis. As it was clearly discussed in the previous paragraph, the developed countries, fearing the collapse of the banking system and deflation, took aggressive measures to support the banking system and stimulate production activity.

After ten years of continuous economic growth and improving the well-being of the people, Russia is facing enormous economic challenges. The global economic crisis leads in all countries of the world to a drop in production, an increase in unemployment, and a decrease in the income of the population.

The impact of the global economic crisis on Russia has its own characteristics associated with the accumulated deformations of the structure of the economy, the underdevelopment of a number of market institutions, including the financial system. The main problem of the Russian economy is still very high dependence on the export of natural resources. In recent years, the state has done a lot in terms of developing the processing industries, services, transport, but oil and gas exports, the export of other raw materials and metals still play a key role in the economy. As a result of the crisis, not only prices, but also demand for all Russian commodity exports fell.

Immediately after the start of the 2008 recession, the government of the Russian Federation regularly took various anti-crisis measures. In particular, the following measures to strengthen the financial sector were implemented in 2008:

recapitalization and other measures of direct support of the financial sector - 355 billion rubles;

recapitalization of banks - 75 billion rubles;

recapitalization of the Deposit Insurance Agency and the Agency for Housing Mortgage Lending - $ 200 billion and $ 60 billion, respectively;

subordinated loans - $ 450 billion, etc.

Separately, we will highlight the measures that were taken to support the real sector of the economy. So, in 2008, the following measures were taken to support the real sector:

reduction of the tax burden in the total amount of 220 billion rubles;

support for various industries for a total amount of 52 billion rubles;

tax and budget incentives aimed at supporting producers and addressed to the population - 272 billion rubles. and 32 billion rubles. respectively;

Unlike most other countries, Russia had huge financial reserves on the eve of the financial crisis. The gold and foreign exchange reserves of the Central Bank reached a maximum of $ 597 billion in September 2008, while the budget surplus reached another $ 70 billion. In terms of reserves, Russia was second only to Japan (about $ 1 trillion) and China (about $ 2 trillion). .). The rapid economic growth of recent years and huge financial reserves are largely due to the availability of cheap money resources in the world market, which Russian companies were willing to borrow, and high prices for raw materials, including oil.

The presence of such reserves made it possible for Russia to provide financial support in necessary, of course, cases to banks, enterprises, organizations and, of course, people in trouble, minimally affecting the state budget, which again in its main part in Russia is aimed at solving social tasks. However, when the fight against the crisis began, the reserves literally began to melt before our eyes. Already at the end of 2008, more than $ 200 billion was spent, and the crisis had not yet reached its bottom. As for cheap money, it does not contribute to effective investment, especially when it comes to companies associated with the state. Such companies are more willing to receive money, because if something happens, the state will not let them die.

Now the market situation has changed. Oil prices have fallen sharply and there are no cheap loans available, and the securities pledged as collateral are rapidly falling in price. This is another mistake in the activities of Russian borrowers, since they easily agreed to collateral schemes, although the successes of the Russian economy in recent years made it possible to do without collateral in many cases.

As an anti-crisis measure, the volume of insurance of household deposits was increased from 400 thousand rubles. up to 700 thousand rubles, the Central Bank of Russia was empowered to insure interbank loans at its own expense. The Russian government has reduced the rate of increase in tariffs for gas and railway transport services. Also, the country's leadership went for a smooth devaluation of the ruble. However, this led to some negative consequences. First, the support of the national currency, and then the gradual devaluation, led to a decrease in gold and foreign exchange funds. Secondly, in anticipation of a depreciation of the exchange rate, banks were reluctant to give loans in rubles, and borrowers did not want to take loans in foreign currency for the same reason. As for the positive aspects of the smooth depreciation of the ruble, we can name, for example, support for domestic production, protection of the domestic market from imports, support for exports, etc.

Table 2 below presents the fiscal policy measures that were aimed at overcoming the consequences of the global financial crisis. The government proposed a wide package of incentives, primarily tax incentives to support the development of real production, including tax cuts, measures to support small businesses, etc.

In recent years, the national economy has developed largely due to external sources - high prices for raw materials, "cheap" loans from foreign banks, now Russia needs to find internal sources of growth to overcome the crisis and ensure long-term sustainable development. For 2010, budgetary anti-crisis measures were announced in the amount of 1,834.77 billion rubles, of which 625 billion rubles were allocated to strengthen the financial sector, 798.3 billion rubles were allocated to support the real sector, and 300 billion rubles were allocated to help the regions. rubles, for the protection of the population - 111.5 billion rubles.

Financial and economic problems do not change the strategic course of the Government, the core of which is modernization. The corresponding priorities are determined by the Government in the Concept of long-term socio-economic development of the Russian Federation for the period up to 2020 and the Main directions of activity of the Government of the Russian Federation for the period up to 2012. improvement, increasing the level of social protection. The anti-crisis policy will be consistently combined with measures for the comprehensive modernization of Russian society.

The measures of the anti-crisis package will not only mitigate the adverse impact of the crisis, but also stimulate progressive structural and institutional changes, and contribute to the renewal of the Russian economy and society.

table 2

Fiscal policy measures aimed at overcoming the consequences of the global financial crisis

Improvement of monetary and credit relations, the task of which is to increase the role of money in the Russian economy. Many monetary transactions today pass by banks. It is necessary to reform the banking system in order to improve credit and monetary relations. First of all, it is necessary to strengthen the emphasis on assistance to banks, to increase the scale of refinancing of banks, while at the same time tight control over the targeted use of credit for the production needs of the national economy and the modernization of production. Also, the state needs to develop and apply a system of indicators for assessing the role and effectiveness of banks with the help of economic indicators.

Carrying out the modernization of the economy and creating conditions for the beginning of a change in the model of economic development. First of all, it is necessary to move away from a resource-based economy and move to an innovative and diversified economy based on high technologies, new knowledge, etc., as well as invest in human capital. It is also necessary to form and stimulate effective demand, including government demand (various government orders, for example, for the development of infrastructure).

For the successful development of the Russian economy, it is necessary to intensify the investment process. For example, you can reduce the tax burden on a business that is created from scratch. It should be emphasized that it is important not to reduce the overall tax burden on business, but to create mechanisms that would stimulate the development of new industries and facilitate their entry into the market.

For the full functioning of the economy, it is also necessary to develop small and medium-sized businesses, thereby creating competition that motivates businesses to be effective.

3.3 The threat of a second wave of the global financial crisis

To date, the storm of the financial crisis has been calmed, but economists do not exclude a second wave of the global financial crisis. Economists name different reasons for the second wave, let us consider in more detail the main ones.

State debt... The second wave of the global financial crisis will be provoked by overblown state debts of the leading powers. This is the conclusion reached by scientists from the Institute of Applied Mathematics of the Russian Academy of Sciences. In accordance with the mathematical calculations of the Institute and the accumulated statistical material, it is confirmed that a new financial collapse will cover the planet in 2014. The reason for this, first of all, is the exorbitant growth of state debts of the leading world powers. According to Maxim Kalashnikov, a scientist at the institute, after the bubbles of government debt burst, we will have a new world. The good old West, to which everyone is accustomed, will cease to exist.

The Institute of Applied Mathematics of the Russian Academy of Sciences is the only organization that predicted the 2008 crisis two years before its onset. But this time, according to the senior researcher of the institute Vadim Shishov, their data agree with the forecasts of many other scientists and research centers. The inevitability of a second wave of the global crisis is confirmed by various studies using various methods.

Tragedy in Japan... Recent events in Japan have seriously affected both the economy of the country itself and the development of the world economy as a whole. Despite the fact that the earthquake occurred in the northeastern region of the country, which is not the main industrial district, nevertheless, there are numerous automobile and semiconductor factories, as well as nuclear power plants. The economic scale of the region accounts for approximately eight percent of Japan's GDP.

Consequently, the auto industry suffered the most serious damage after the tragedy. At the end of March, Toyota Motors suspended the operation of all 12 factories in the country (38% of Toyota Motors vehicles are manufactured in Japan). Also, the factories of such auto giants as Nissan Motor and Honda Motor did not work for some time. They have 22% of car production in Japan. Suzuki Motor and Mitsubishi Motors also shut down their factories. Mazda Motor's four factories in the western part of the country have suspended operations due to a shortage of parts supplied from the affected regions.

As a result of damage or power outages, hundreds of factories and factories across Japan have been closed. For example, Sony has shut down six factories producing electronic components. Panasonic has ceased operations at several factories, including digital cameras, audio products and electronic components. Toshiba has suspended its microprocessor plant in Iwate Prefecture.

In addition, after the earthquake, five Japanese refineries with a total capacity of 1.2 million barrels per day were automatically closed. This is a quarter of the country's oil refining capacity. Cosmo Oil and JX Holdings are damaged. Recall that in 2010, Japan imported 3.7 million barrels of oil per day.

The earthquake, in addition to the suspension of production, will cause a crisis in the supply chain. The communication disruption had a negative impact on the supply of raw materials and supplies, and also caused problems with the delivery of finished products to airports or seaports. With Japan as an important link in the global industrial chain, a supply crisis in a matter of months will wreak havoc on manufacturing firms around the planet. Against the background of the growing radiation threat, foreign specialists are also leaving Japan, which will undoubtedly affect the development of business. But the main problem is Japan's huge debt. The obligations of the Japanese government have now reached 200% of GDP. After the devastating earthquake, the Japanese government will certainly adopt an additional budget, which will undoubtedly worsen the financial situation in the country.

All of the above main problems in connection with the tragedy foreshadow the arrival of the second wave of the global crisis. Given the important role of Japan in the global economy, the temporary suspension of exports from this country caused by the earthquake will inevitably have a negative impact on enterprises in other countries, in particular, it will affect the Asia-Pacific region.

In general, they expect a moderate impact of what is happening on the Russian economy, in particular, the rapid replacement of Japanese cars, the imports of which will clearly decrease, with products of auto concerns from the USA and Europe. However, experts are confident that the Japanese economy will recover from the shock rather quickly. And in 2012-2015, the Japanese economy will already grow at a fairly high rate compared to previous years.

Currency wars... Recently, one can hear more and more often that the so-called "currency war" has broken out in the world. Former head of the IMF<#"center">Conclusion

The global financial crisis of 2008 was the result of the failure of the existing financial system, primarily due to the poor quality of regulation of the world economy. In this paper, an analysis of the global financial crisis was carried out, and also the reasons for the emergence and development of the crisis, which began in 2008 in the US mortgage market, and subsequently swept almost the entire world, were examined in detail.

In accordance with the objectives of this work, there were:

studied the lessons of the Great Depression in the USA in 1929-1933, the financial crisis in Japan in the 1990s and the financial crisis in Mexico in 1994-95. These crises were specially selected for study, as they are most similar to the current financial crisis of 2008;

identifies the distinctive features and characteristics of the modern financial crisis. The current global financial crisis has gripped all developed and developing countries. It is global, innovative and structural. The global economy is in need of major structural upgrades;

the main causes of the global financial crisis are considered. The main reasons include excess liquidity in the US economy, overproduction of the dollar, new financial instruments (futures, swaps, etc.), insufficient level of risk assessment by various institutions, etc. These reasons have contributed to the formation of market bubbles, in particular in the markets of real estate, stocks, commodities, etc .;

the analysis of the impact of the global financial crisis on the economy of Russia and the world as a whole is carried out, and anti-crisis measures that have been taken by various countries, in particular the United States, are considered.

the potential causes that could trigger the second wave of the global financial crisis were studied, and measures were proposed to eliminate them.

The global financial regulatory institutions did not respond to the events taking place in recent years with adequate actions, which confirmed the inconsistency of their activities with the needs of the modern multipolar world. It is due to the lack of tools to prevent and minimize crisis consequences that the world has faced serious economic shocks.

Against the background of the financial crisis, world banks lost up to $ 100 billion in 3-4 months, but everyone noticed that Islamic banks and financial institutions remained on the sidelines of the crisis. Therefore, it will be logical to study their experience and benefit from it for effective bank management in the future.

The instability of financial systems, the aggravation of social problems and the slowdown in economic growth are forcing the governments of the countries to take various measures to stabilize the situation and stimulate the economy, including measures of fiscal policy. Also, the countries intend to support the real sector of the economy. For this, measures are being taken to increase benefits to the population, inject money into various types of production, reduce income tax, etc.

Of course, to revive the economy and overcome the crisis, a set of measures is required, which are listed above. However, one should not forget that crises have a peculiarity to pass, and the country remains, which needs to develop and become more and more resistant to various kinds of economic shocks.

The problems that are touched upon in this graduate work are very extensive. In addition, every day something new happens in the global economy, thus bringing more and more information for analysis. Accordingly, each topic that is touched upon in the work is worthy of a separate study. I would also like to note that crises have a peculiarity to pass, and there remains a country that needs to develop and become more and more resistant to various kinds of economic shocks.

The current financial crisis has shown that there are various unresolved tasks in the economy, both for the state and for companies. First of all, it is necessary to modernize the economy and create conditions for the start of a change in the model of economic development, i.e. move away from a resource-based economy and move to an innovative economy based on high technologies and knowledge.

Bibliography

Regulations

Federal Law of the Russian Federation "On Insurance of Deposits of Individuals in Banks of the Russian Federation" dated December 23, 2003. N 177-FZ (with the latest amendments and additions) // Rossiyskaya Gazeta. - 2003 .-- December 27.

Federal Law of the Russian Federation "On Additional Measures to Support the Financial System of the Russian Federation" dated October 13, 2008 N 173-FZ (with the latest amendments and additions) // Rossiyskaya Gazeta. - 2008 .-- October 14.

Federal Law "On Banks and Banking Activities" of February 3, 1996 N 17-FZ (with the latest amendments and additions) // Rossiyskaya Gazeta. - 1996 .-- February 10.

Federal Law of the Russian Federation "On the Central Bank of the Russian Federation (Bank of Russia)" dated 26.04.1995 N 65-FZ (with the latest amendments and additions) // Rossiyskaya Gazeta. - 1995 .-- May 4.

Budget Address of the President of the Russian Federation for 2010-2012

Textbooks and monographs

Anikin A.V. A history of financial turmoil. Russian crisis in the light of world experience. - M .: CJSC "Olymp-Business", 2009. - 448 p.

7. Aliber<#"center">Applications

Annex 1

The main measures of the Government of the Russian Federation and the Bank of Russia to improve the Russian economy in 2009

№ p / p Event Amount of additional financing, billion rubles1. STRENGTHENING SOCIAL PROTECTION, PRESERVATION AND CREATION OF JOBS 1.1 Social protection 1.1.1 Conducting weekly monitoring in the constituent entities of the Russian Federation of dismissal of employees in connection with the liquidation of organizations or reduction in the number or staff of employees, as well as underemployment of employees of the organization. _________ 1.1.2 Organization of work of counseling centers, "hot lines" and pre-employment counseling for employees of organizations, publication of information booklets and brochures. Order of the Ministry of Health and Social Development of Russia No. 683 "On the organization of the work of counseling centers, telephone hot lines and pre-dismissal counseling for employees." (On January 16, 2009, the official information portal about federal labor and employment services - "Work in Russia" (www.trudvsem.ru) was opened. The information combines official information from 85 regional employment services and 2450 municipal employment centers.) _________1 .1.3 Establishment of a 50 percent reserve of the volume of quotas for the Russian Federation approved by the Government of the Russian Federation in order to regulate the need to attract foreign workers in the Russian Federation, including for priority vocational and qualification groups. Determination of the procedure for reducing the size of the need for attracting foreign workers determined for the current year and the amount of quotas approved for the current year, and related to these changes, adjusting the distribution of the needs determined for the current year by priority professional qualification groups. _________ 1.1.4 Establishing for 2009 the permissible share of foreign workers in the retail trade and in the field of sports, percent of the total number of employees employed by the specified economic entities: 0% - retail trade in alcoholic beverages, including beer; retail trade in pharmaceutical products; retail trade in stalls and markets; other retail trade outside stores; 25% - other activities in the field of sports. (In the event of massive job cuts by economic entities in various types of economic activities and in order to implement the principle of priority employment of citizens of the Russian Federation released as a result of the crisis, the Government of the Russian Federation may establish a share for other types of economic activity, both for a number of constituent entities of the Russian Federation and for the entire territory of the Russian Federation) _________1. 1.5 Co-financing of regional programs aimed at reducing tension on the labor market of the constituent entities of the Russian Federation: advanced vocational training of employees in the event of a threat of mass layoffs; creation of temporary jobs by employers (public works, temporary employment, internships); providing targeted support to citizens, including organizing their relocation to another locality to fill jobs; assistance to the development of small business and self-employment of unemployed citizens. 43,71.1.6. Increase in the amount of unemployment benefits. In 2009, the minimum amount of unemployment benefit is 850 rubles, the maximum is 4,900 rubles33.91.1.7 Increase in allocations for transfer to the Pension Fund: to cover the deficit (The insurance part of the labor pension from April 1, 2009 is additionally indexed by 17.5% against 15.6%, from August 1 - by 8.5%); for the payment of the basic part of the labor pension; to increase the EDV 315.6 12.5 11.51.1.8 Inclusion of expenses on wages for employees of budgetary institutions in the list of expenses protected from reduction. _________ 1.1.9 Indexation of state benefits, social benefits and the cost of a set of social services, taking into account the new inflation forecast. 12,71.1.10 Additional increase in financing of activities of active policies of employment of the population (implementation of delegated powers in the field of promoting employment of the population) 33.91.2 Support for education (total expenditures for the section - 394.8) 1.2.1 Subsidies to support educational loans. 0.0271.3 Health care, physical culture and sports (total for section 334.6) 2. PRESERVATION AND INCREASING OF INDUSTRIAL AND TECHNOLOGICAL CAPACITY 2.1 GENERAL SUPPORT OF THE REAL SECTOR AND WORK WITH SYSTEM-FORMING ENTERPRISES 2.1.1 Support of system-forming enterprises 2.1.1 Support of system-forming enterprises 2.1.1 Support of system-forming enterprises in the list of strategic organizations. Formation of a list of backbone organizations and monitoring of their financial and economic condition. The list of 295 backbone organizations was approved by the minutes of the meeting of the Government Commission on increasing the sustainability of the development of the Russian economy dated December 23, 2008 No. 2, section IV. _________ 2.1.1.2 Providing assistance to enterprises that are of significant importance for the economy of constituent entities and municipalities. Consideration of the list of enterprises of regional importance (1148) at a meeting of the Government Commission on increasing the sustainability of the development of the Russian economy on February 24, 2009. No. 8. _________ 2.1.1.3 Providing support to individual strategic enterprises and organizations of the military-industrial complex. Creation of an Interdepartmental Commission to support strategic enterprises and organizations of the military-industrial complex, fulfilling the state defense order and experiencing financial difficulties in the current situation on the financial markets. _________ 2.1.2 Tax incentives 2.1.2.1 Implementation, from January 1, 2010, of the transfer of a number of fixed assets to depreciation groups with a shorter useful life in order to stimulate the renewal of the corresponding equipment. Within the limits of 3-7 depreciation groups, a number of fixed assets are transferred to groups with a shorter useful life. The changes are designed to ensure investment stability and attractiveness in the oil industry and affect the fixed assets of oil and gas enterprises. 34 billion. Shortfall in income (The use of a non-linear depreciation method allows organizations to accelerate the write-off of fixed assets and accelerate the renewal of fixed assets.) _________ 2.1.2.3 Granting a deferral or installment plan for the payment of federal taxes if the amount of an organization's debt exceeds 10 billion rubles, for a period not exceeding five years by decision Minister of Finance of the Russian Federation. _________ 2.1.2.4 Reduction of the income tax rate (The income tax rate has been reduced from 24 to 20%, while the federal part of the tax has been reduced from 6.5 to 2.5%. Regions, in addition to 17.5%, receive 0.5% at the expense of the federal part. 330.9 billion rubles of reduction of tax revenues of the federal budget) 294.0 Shortfall in income of V. of h. to the federal budget - 330.92.1.2.5 Transfer to tax payment on the basis of actually received profit for the 4th quarter of 2008 ... (In the fourth quarter of 2008, taxpayers have the right to switch to the payment of tax on the actually received profit and thus refuse to make payments calculated on the basis of the achieved level of profit for the previous reporting period) _________ 2.1.2.6 Optimization of the period for payment of value added tax on transactions recognized as objects of taxation by this tax. (ФЗ dated October 13, 2008 N 172-ФЗ) (Starting with tax reporting for the third quarter of 2008, value added tax is paid in equal shares and within three months following the expired tax period, and not at the same time after the expiration of the tax period. ) _________ 2.1.2.7 Exemption from taxation by value added tax of operations on the import of technological equipment, analogues of which are not produced in the Russian Federation, according to the list approved by the Government of the Russian Federation. (Federal Law of November 26, 2008 N 224-FZ) _________ 2.1.2.8 Cancellation of the obligation of taxpayers to transfer value added tax by separate payment orders for non-cash forms of payments. (Return of the previous procedure, according to which non-cash forms of payments can be taken into account when calculating taxes. Simplifies tax administration of taxpayers.) _________ 2.1.2.9 Granting the right to deduct value added tax on advance payments. (Ensuring the "neutrality" of the tax in relation to manufacturers, given that, in general, VAT is an indirect tax. It releases the working capital of organizations.) _________ 2.1.2.10 Introduction of a 30% depreciation bonus For fixed assets within 3-7 depreciation groups, the depreciation bonus is increased from 10 to 30% 50.4 Shortfall in income of V. of which to the federal budget - 5.62.1.2.11 Reduction of the profit tax rate under a simplified taxation scheme (Subjects of the Russian Federation are given the right to reduce the rate from 15% to 5% of the the application of a simplified taxation system. Releases working capital of taxpayers) _________ 2.1.2.12 Increase in the maximum interest rate on debt obligations recognized as an expense (The threshold is defined as 1.5 of the Bank of Russia refinancing rate for ruble obligations and 22% for foreign currency) 8.8 Acceleration of terms return of export VAT 2.1.3 Supporting demand 2.1.3.1 Regulation of procurement procedures for natural monopoly entities and state corporations, including the establishment of preferences for suppliers of Russian goods. _________ 2.1.3.2 Increase in advance payments for the implementation of measures provided for by federal target programs and the state defense order. _________ 2.1.3.3 Improving the budgetary process in order to create opportunities for leasing operations in public procurement. _________ 2.1.3.4 Development of targeted lending to enterprises against payments for delivered products (factoring). _________ 2.1.3.5 State support for the export of industrial products (Decree of the Government of the Russian Federation dated January 14, 2009 No. 24) 6.02.1.3.6 Identification and support of priority investment projects capable of ensuring the competitiveness of the Russian economy in the phase of post-crisis growth. At the same time, it is necessary to keep in mind not only projects in the field of transport or energy infrastructure (and the like) that create demand for domestic products, but also investment projects aimed at the technical modernization of manufacturing industries. _________ 2.1.3.7 Continuation of technological modernization of domestic industry _________ 2.1.4 Promotion of increased availability of financial resources 2.2 SUPPORT OF SEPARATE SECTORS OF THE ECONOMY 2.2.1 Agriculture 2.2.1.1 Subsidizing the interest rate on certain types of investment and short-term loans attracted in 2008-2009 by organizations and enterprises agro-industrial complex, in the amount of 100% of the refinancing rate of the Bank of Russia No. 90, dated February 24, 2009 No. 140) 10.02.2.1.3 Subsidizing interest rates on certain types of investment and short-term loans attracted by organizations of the fishery complex for the modernization and technical re-equipment of the fishing fleet, as well as for material o-technical supplies and equipment. (Order of the Government of the Russian Federation No. 124-r dated February 4, 2009) 1,12.2.1.4 Expansion of the Bank of Russia Lombard List by including bonds of agro-industrial complex organizations. Following a meeting with the First Deputy Prime Minister of the Russian Federation V.A. Zubkov on January 26, 2009, the Bank of Russia will, within a month, add to the Bank of Russia Instructions dated July 28, 2004. No. 1482-U "On the List of Securities Included in the Lombard List of the Bank of Russia" amendments for backbone enterprises. _______ 2.2.1.5 Ensuring the entry of enterprises of the agro-industrial complex into the list of recommended industries for refinancing by commercial banks against the security of loan agreements, as well as reducing the requirements for the level of risk on loans issued against the security of products. (At present, possible mechanisms for implementing the adopted decisions are being developed. The Ministry of Finance of Russia is considering the issue of allocating financial resources to banks through the National Welfare Fund.) _______ 2.2.1.6. Clarification of the instruction of the Bank of Russia "On the procedure for the provision of loans secured by assets by the Bank of Russia to credit institutions" in terms of refinancing loans issued to limited liability companies, as well as for loans classified as category II; funding from the resources of the Bank of Russia and Vnesheconombank of credit institutions for the purpose of lending to investment projects in the amount of 200 billion. rubles, as well as seasonal work and current activities in the amount of 200 billion rubles. (for a period from 9 to 12 months). _______ 2.2.1.7 Development and practical application of mechanisms aimed at financial support for the implementation of measures of the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets for 2008-2012, including by providing banks with targeted state financial resources, with provided, in particular, the establishment of the maximum lending rates for organizations of the agro-industrial complex, the provision of financing for investment projects under previously concluded loan agreements and, if necessary, the extension of loan agreements for a period of up to 3-5 years. _______ 2.2.2 Support for projects in the automotive industry and agricultural engineering 2.2.2.1 Subsidizing part of the interest rates to Russian organizations in the automotive and transport engineering industries on loans received from Russian credit institutions for technological re-equipment. 2.52.2.2.2 Subsidizing 2/3 of the refinancing rate for 3-year consumer loans for the purchase of domestic passenger cars nat. by persons. 2,02.2.2.3Subsidizing the expenses of JSC Russian Railways for the transportation of domestic cars to the regions of the Far East. 2.02.2.2.4 Allowing OJSC Rosagroleasing to implement projects on leasing domestic machinery, technological equipment and vehicles for Russian consumers (Additional capitalization of OJSC Rosselkhozbank (45 billion rubles), OJSC Rosagroleasing (25 billion rubles). rub.)). Direction of federal budget funds in the 1st quarter of 2009 to increase the authorized capital of Rosselkhozbank in the amount of 45.0 billion rubles for lending to agricultural enterprises and conducting procurement interventions and OJSC Rosagroleasing in the amount of 25.0 billion rubles in order to acquire and subsequent transfer under leasing agreements of domestic agricultural machinery, including automobile machinery, agricultural equipment, pedigree livestock, machinery and technological equipment for the food and processing industry, industrial fish farming, forestry, timber processing and machinery for road construction in rural areas 70.02.2.2.5 Procurement automotive equipment for federal executive bodies, their territorial bodies and subordinate institutions in a centralized manner. 12.52.2.2.6 Implementation of the program for the renewal of the fleet of motor vehicles used by the constituent entities of the Federation and municipalities for the transportation of passengers, medical purposes, police, municipal, road and special equipment, subject to its co-financing by the constituent entities of the Russian Federation in the amount of up to 10 billion rubles. 20.02.2.2.7 Provision of a credit line to leasing companies for leasing operations with Russian-made vehicles for a period of at least 3 years at a rate not exceeding the refinancing rate of the Bank of Russia. 1,02.2.2.8 Allocation of credit limits for financing the current activities of automotive enterprises in the amount of up to 70 billion rubles, including using the mechanism of state guarantees. 2.2.2.9 Assistance in the placement in 2009 of bonds of Russian automobile manufacturers for the purpose of financing investment projects in the amount of up to 60 billion rubles and maturity up to 5 years, subject to the provision of government guarantees, as well as the possibility of refinancing such securities by the Bank of Russia. 2.2.2.10 Adjustment of the current repayment schedules of the restructured debts of the automotive industry enterprises for taxes and fees to the federal budget, as well as insurance contributions to extra-budgetary funds, in terms of postponing the payment of the principal debt in 2009-2015 to 2011-2017, respectively. 2.2.2.11. Change in import customs duties for used and new special purpose vehicles for a period of 9 months. Introduction of duties on used cars. 2.2.2.12. An increase in the amount of advance payments by recipients of federal budget funds to 50% of the amount of the agreement (state contract) when it is concluded for the purchase of automotive and road-building equipment manufactured in the Russian Federation, as well as in terms of the conclusion of these agreements (state contracts) without providing security for them execution, subject to the purchase of equipment directly from manufacturers. 2.2.2.13. Adjustment of the current repayment schedules of the restructured debts of the automotive industry for taxes and fees to the federal budget, as well as insurance contributions to extra-budgetary funds, in terms of postponing the payment of the principal debt in 2009-2015 to 2011-2017, respectively. 2.2.2.14. The introduction on a temporary basis for a period of 9 months of the rate of import customs duties on new and used grain and forage harvesters in the amount of 15 percent, but not less than 120 euros per 1 kW of capacity. ________ 2.2.3 Providing financial support to enterprises of the military-industrial complex 2.2.3.1 Providing subsidies to enterprises of the military-industrial complex from the federal budget to repay part of the cost of paying interest on loans received in 2008-2009, including those received to replenish working capital. (The project has been worked out in accordance with the established procedure in the Office of the Government of the Russian Federation and is being approved by the First Deputy Prime Minister of the Russian Federation I.I. Shuvalov.) 15.02.2.3.2 Additional issue of shares and bonds of certain strategic enterprises with their subsequent redemption by authorized organizations. (Order of the Government of the Russian Federation dated January 27, 2009 No. 79-r, dated March 10, 2009 No. 309-r. JSC RSK MIG, JSC KAPO named after SP Gorbunov, It is planned to buy out additional shares of OJSC "MMP named after V. V. Chernyshev" , performance of works, provision of services for state needs under the assignments of the state defense order. access of fuel and aviation companies to infrastructure facilities of refueling complexes at airports. ________ 2.2.4.3 Ensuring that airlines are provided with deferred payment of customs duties hedgehogs for a period of up to 6 months in relation to imported foreign aircraft and components for them (including engines) with exemption from the need to make security for their payment. (Work is underway to agree on the necessary regulatory legal acts (draft Federal Laws and Government resolutions) by federal executive authorities) ________ 2.2.4.4 Increase the amount of compensation from the federal budget for part of the cost of paying lease payments for Russian-made aircraft received by Russian leasing companies under lease agreements , up to three quarters of the reimbursable amounts. ________ 2.2.4.5 State support of airlines (contribution to the Russian Technologies State Corporation). 2.02.2.4.6 Granting subsidies from the federal budget: subsidies to commercial banks for reimbursement of costs and lost income from airline transactions in the part that is not compensated by income from the sale of property provided under a pledge agreement to secure a loan; air carriers to compensate for the lost income in connection with ensuring the carriage of passengers who have entered into an air carriage agreement with an air carrier, in respect of which a decision was made to suspend the operator's certificate. 5.0 5.02.2.4.7 Development of experimental aviation aerodromes, including the Ulyanovsk-Vostochny airfield. ________ 2.2.4.8 Securing the placement of bonds of JSC "Russian Railways" to finance the investment program for 2009-2011. (Currently, 7 issues of infrastructure bonds have been registered for the amount of 100 billion rubles.

Economic crises began almost 200 years ago, during the formation of industrial societies. Their constant companions - a decline in production, high inflation, the collapse of banking systems, unemployment - threaten us to this day.

1857-58 years

The financial and economic crisis of 1857-1858 can be safely called the first world crisis. Starting in the United States, it quickly spread to Europe, affecting the economies of all major European countries, but Britain, as the main industrial and commercial power, suffered the most.
Undoubtedly, the European crisis was aggravated by the Crimean War, which ended in 1856, but nevertheless, economists call the unprecedented growth of speculation the main factor that caused the crisis.

The objects of speculation were mostly shares of railway companies and heavy industry enterprises, land plots, grain. The researchers note that even the money of widows, orphans and priests went into speculation.
The speculative boom was accompanied by an unprecedented accumulation of money supply, an increase in lending and an increase in stock prices: but one day it all burst like a soap bubble.
In the 19th century, they did not yet have clear plans for overcoming economic crises. However, the inflow of liquid funds from England to the United States helped at the beginning to weaken the consequences of the crisis, and then to completely overcome it.

1914 year

The outbreak of the First World War gave impetus to a new financial and economic crisis. Formally, the cause of the crisis was the total sale of securities of foreign issuers by the governments of Great Britain, France, Germany and the United States in order to finance military actions.
Unlike the crisis of 1857, it did not spread from the center to the periphery, but arose simultaneously in many countries. The collapse occurred in all markets at once, both commodity and money. It was only thanks to the intervention of the Central Banks that the economies of several countries were saved.
The crisis was especially deep in Germany. Having captured a significant part of the European market, England and France closed access to German goods there, which was one of the reasons for the outbreak of war by Germany. By blocking all German ports, the British fleet contributed to the 1916 famine offensive in Germany.
In Germany, as in Russia, the crisis was aggravated by revolutions that abolished the monarchist power and completely changed the political system. These countries have been recovering the longest and most painful of all the consequences of social and economic decline.

The Great Depression (1929-1933)

October 24, 1929 became Black Thursday on the New York Stock Exchange. A sharp decline in share prices (by 60-70%) led to the deepest and longest economic crisis in world history.
The "Great Depression" lasted for about four years, although its echoes made themselves felt until the outbreak of World War II. The crisis affected the United States and Canada the most, but France, Germany and the United Kingdom were also severely affected by the crisis.
It would seem that nothing foreshadowed the crisis. After the First World War, the United States embarked on a path of stable economic growth, millions of stockholders increased their capital, and consumer demand grew rapidly. Everything collapsed overnight. For some week, the largest shareholders, according to the most conservative estimates, have lost $ 15 billion.
In the United States, factories were closed everywhere, banks collapsed, and about 14 million unemployed were on the streets, and the crime rate rose sharply. Amid the unpopularity of bankers, bank robbers in the United States were almost national heroes.
Industrial production during this period in the United States decreased by 46%, in Germany by 41%, in France by 32%, in the UK by 24%. The level of industrial production during the years of the crisis in these countries was actually pushed back to the beginning of the 20th century.
According to American economists Ohanian and Cole, researchers of the "Great Depression", if the US economy had abandoned the Roosevelt administration's measures to curb competition in the market, the country could have overcome the consequences of the crisis 5 years earlier.

"Oil Crisis" 1973-75

The 1973 crisis has every reason to be called an energy crisis. Its detonator was the Arab-Israeli war and the decision of the Arab OPEC member states to impose an oil embargo on the states supporting Israel. Oil production fell sharply, and during 1974 prices for "black gold" rose from $ 3 to $ 12 per barrel.
The oil crisis hit the United States the hardest. For the first time, the country faced the problem of a shortage of raw materials. This was also facilitated by the Western European partners of the United States, which, in favor of OPEC, stopped the supply of oil products overseas.
In a special message to Congress, US President Richard Nixon called on fellow citizens to save as much as possible, in particular, not to use cars if possible. Government agencies were advised to save energy and reduce car fleets, and airlines were instructed to cut back on flights.
The energy crisis severely affected the Japanese economy, which seemed to be immune to global economic problems. In response to the crisis, the Japanese government is developing a number of countermeasures: increasing imports of coal and liquefied natural gas, and embarking on an accelerated development of nuclear power.
The 1973-75 crisis had a positive effect on the economy of the Soviet Union, as it contributed to an increase in oil exports to the West.

1998 "Russian crisis"

On August 17, 1998, Russians first heard the terrible word default. This was the first case in world history when the state declared a default not on external, but on internal debt denominated in the national currency. According to some reports, the country's internal debt amounted to $ 200 billion.
This was the beginning of the most difficult financial and economic crisis in Russia, which launched the process of devaluation of the ruble. In just six months, the value of the dollar has grown from 6 to 21 rubles. Real incomes and purchasing power of the population decreased several times. The total number of unemployed in the country reached 8.39 million, which was about 11.5% of the economically active population of the Russian Federation.
Experts cite many factors as the cause of the crisis: the collapse of Asian financial markets, low purchase prices for raw materials (oil, gas, metals), the failed economic policy of the state, the emergence of financial pyramids.
According to the calculations of the Moscow Banking Union, the total losses of the Russian economy from the August crisis amounted to $ 96 billion: of which the corporate sector lost $ 33 billion, and the population lost $ 19 billion. However, some experts consider these figures to be clearly underestimated. In a short time, Russia has become one of the largest debtors in the world.
Only by the end of 2002 did the Russian government manage to overcome inflationary processes, and from the beginning of 2003 the ruble began to gradually strengthen, which was largely facilitated by the rise in oil prices and the inflow of foreign capital.

Over the entire history of modern mankind, the planet has experienced global economic crises more than 2 dozen times - negative phenomena in the political, financial, banking, social spheres, leading to:

• imbalance between consumer demand and the available balances at the enterprise;
• reduction in production volumes;
• changes in pricing policy, settlement system;
• unemployment and poverty;
• collapse of the largest enterprises, banks and bankruptcy of individuals.

Crises, according to experts, are spontaneous in nature, they cannot be predicted and prevented.

World economic crisis of 1929

In particular, this turned out to be the world economic crisis of 1929, when the value of shares fell overnight, business activity decreased, which entailed consequences in the form of unemployment, bankruptcy of financial and industrial companies, inflation, and the collapse of the agricultural system. The exact reasons for the "Great Depression" are not named, but they basically boil down to the following - the creation of a "stock market bubble", monetarism, lack of money supply, and growth in margins. The United States and a number of other countries in North and South America were able to get out of this state only by 1932, when measures were introduced to change the social, political and banking spheres.

World Economic Crisis 2008

The global economic crisis of 2008 is called comparable in scale to the "Great Depression", when for the first time in the history of modern mankind, such an indicator as GDP showed negative dynamics. World trade has collapsed, the dollar's dominance has been revised, and there has been a significant rise in the price of oil and gold. During this period, talk began about income inequality, widespread unemployment and poverty. The international declaration, which contained advice on revising the activities of financial institutions, reorganizing market relations, and adjusting social policy, served as a guide for overcoming the crisis.

Consequences of the global economic crisis

Of course, the phenomena under consideration could not pass in vain. Anti-crisis measures aimed at economic recovery made it possible to gradually solve the accumulated problems and stabilize the market situation. As a rule, the consequences of the global economic crisis are:

• lower prices, inflation, stabilization of demand and revision of wages in relation to existing expenses and the consumer basket;
• revision of rates for attracting foreign capital to create a "cash cushion";
• saturation of banks with currency;
• solving issues of education, medicine, attracting the unemployed to the development of new territories and regions.

Causes of the global economic crisis

As mentioned above, the causes of crisis phenomena can be:

• difficult socio-political situation;
• inept financial and economic management;
• oversaturation of markets with assumptions (competition);
• natural phenomena (cataclysms, wars, catastrophes);
• risky decisions regarding the development of banks and financial institutions.

Internal and external causes of the global economic crisis do not develop immediately, but accumulate, leading the state into a state of depression, recession, and destabilization. Therefore, when the first signs of these phenomena appear, it is important to rethink policy decisions and respond quickly to a volatile economy.

The problem of the global economic crisis

The above reasons for the crisis phenomena are recognized as a consequence of economic development. Experts are sure that where there is stability, imbalance is bound to appear. In capitalist times, it was caused by underproduction, in modern times - by overproduction. An imbalance arises against the background of inept management of available resources, a desire to get more without improving or adjusting the process. States strive for domination and do not pay attention to the accumulated tasks. This is the main problem of the global economic crisis or imbalance.

Conditions of the global economic crisis

What should organizations and states as a whole do if a crisis cannot be avoided? It is important to understand and rethink its terms. As a rule, people perceive the situation negatively, do not want to accept it and benefit from it. But the conditions of the world economic crisis can be reduced not only to the collapse of production, the banking system, social imbalance, but also to benefits:

• revision of prices for oil, assets, gold and currency, as a result of a slowdown in inflation;
• decrease in the supply of imported goods, the ability to increase the competitiveness of their products;
• increasing the productivity and willingness of employees to work in order not to lose their jobs.

History of world economic crises

The listed conditions, parameters and causes of the imbalance can be traced throughout all stages of human development. Thus, the history of world economic crises began in 1857, when the US stock market crashed and many railway companies were ruined. In Europe, stock market crashes due to Latin American "hard lending" and depreciation of real estate in Austria and Germany occurred in 1873. The world war in 1914 also served as a pretext for the development of crisis phenomena. The "Great Depression" and the current crisis of 2008 have already been discussed earlier.

Types of economic crises

So, there are several reasons for the imbalance to occur. Their variety and focus makes it possible to distinguish the following types of economic crises:

• cyclical, which arises against the background of overproduction, rising costs, outdated structure of the production cycle;
• intermediate, which is considered local and affects only certain areas. It appears due to contradictions in banking and economics;
• sectoral, which affects certain industries, for example, oil or gold-currency;
• structural, based only on technological imbalance, lack of development of an industry or production.

Business cycle phases

Any of these types of economic crisis occurs after an imbalance, that is, a balance between consumer demand and production. In this case, a predictable cyclical pattern is observed, when the period of growth is replaced by a decline or lack of development. These are the so-called phases of the economic cycle, which include:

• recession, which is characterized by overproduction, accumulation of warehouse balances, falling demand for capital and investment, rising unemployment;
• depression, in which there is an increase in unemployment, there is an opportunity to accumulate capital for further development, there is a process of reformatting or restructuring of the economy;
• the recovery that brings with it a reduction in the number of unemployed, an increase in demand for consumer goods and investment;
• boom, when production capacity is again oversaturated, the so-called inflation gap.

Ways to Overcome World Financial Crises

In order to stabilize the situation in the country, it is necessary to choose short-term or long-term ways to overcome the global financial crises, which include the following measures:

• agricultural development;
• increasing humanitarian aid and adjusting social policy;
• solving the problem of food supplies;
• creation and increase of gold and foreign exchange reserves;
• expanding cultivated areas and attracting people to public works;
• revision of the pricing policy.

All of this will ultimately improve the well-being of the population and bring the country into a recovery phase for further development.