Практичний курс англійської мови навчальний посібник з практики усного та письмового мовлення для студентів 4 курсу
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СодержаниеProject 2 The Economic Systems What are the differences in the Ukrainian and British experience in this field? Do some research to get necessary facts and data |
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Project 2 The Economic Systems
1.5 Read the following selections. The issue discussed is the mixed economy as it is presented in the UK. Consider each of the presented facts and discuss the status of Ukraine in view of the current tendencies in the Ukrainian economy.
- Like many modern developed countries, the United Kingdom has a mixed economy. This means that some sectors of the economy are operated by the government and some are operated by private businesses. Since World War II (1939-1945), Britain has worked to balance the mix of private and public enterprises in order to maximize the country’s economy and ensure the economic well-being of its citizens. Historically, Britain’s Conservative Party has sought a stronger private component in the mix while the Labour Party has sought to strengthen the public component. Both parties are committed to a healthy mix of both elements, however.
- The public component consists of the welfare system, which includes socialized medicine, known as the National Health Service, plus government controls over business, banking, and the money supply. The welfare system provides support from before birth to the grave. The government is a major employer: Public officials, the judiciary, the military, police departments, fire departments, educators, and health professionals are, for the most part, employed by the state. The government is also a major purchaser of goods, particularly military equipment.
- After World War II the government nationalized, or took over, a number of large and troubled industries. These included coal, electricity, transport, gas, oil, steel, certain car and truck manufacturing, shipbuilding, and aircraft building. Since the 1950s, the government has privatized a number of these industries, selling them to private firms. The first sales were the steel and road transportation industries. The Conservative governments between 1979 and 1996 denationalized oil companies, telecommunications, car and truck production, gas, airlines and aircraft building, electricity, water, railways, and nuclear power. By privatizing these industries, the government hoped they would become more efficient, due to pressure by stockholders demanding profits. Nevertheless, the government continues to regulate these newly privatized industries by controlling prices and monitoring performance. The government also seeks to encourage competition in the economy and increase productivity by sponsoring and subsidizing training and educational programs.
- As in many modern states, the British government seeks to fine-tune the economy in order to keep economic booms from becoming too inflationary and recessions from becoming too deep. In carrying out fine-tuning, the government uses a combination of monetary policies and fiscal policies. Monetary policies involve the attempt to control the supply and demand for money through the Treasury and the central bank, the Bank of England. Fiscal policy is concerned with the level and distribution of government spending and taxation. The government often opts to manage demand, intervening when demand for goods and services is high enough to threaten inflation. In such cases the government tries to reduce demand by raising interest rates and taxes. In economic emergencies the government can control prices and incomes to a considerable extent, but this is only done in extreme circumstances, such as in times of war or runaway inflation.
- Government revenue in 1997 and 1998 came from many sources. The primary sources were income tax, which provided 23 percent, social security contributions, and value-added tax (VAT, a national sales tax), which each contributed 16 percent. Excise duties contributed 11 percent of government revenue, corporation tax 9 percent, business and council rates (property taxes) 8 percent, other taxes 8 percent, borrowing 6 percent, and other financing 4 percent.
- Government expenditures for 1997 and 1998 included social security (the welfare system), which made up 32 percent of expenditures, and health and personal social services, which made up 17 percent. Other government monies went to education, 12 percent; interest on the debt, 8 percent; defense, 7 percent; law, order, and protective services, 5 percent; housing, heritage, and environment, 5 percent; industry, agriculture, and employment, 4 percent; transport, 3 percent; and other expenditures, 7 percent.
1.6 The information below deals with the mixed economic system.
What are the differences in the Ukrainian and British experience in this field? Do some research to get necessary facts and data.
All modern economic systems combine private ownership with government control. Sometimes called mixed economies, these systems attempt to eliminate inefficiencies inherent in capitalism or socialism alone. Governments, imbued with centralized control and the power to make legislation, set standards and taxes and may direct certain industries such as telecommunications or transportation, while private businesses control the remaining industries and generally thrive or fail according to the dictates of the market. In some cases, a public-private partnership may operate some industries.
1.7 The chart below illustrates in general the shares of private ownership with government control within the mixed economic system. Try to add your commentaries and data about your country. Use the following group of words :
defence
education
health and personal social services
housing, heritage, and environment
industry, agriculture, and employment
interest on the debt
law, order, and protective services
social security
the welfare system
transport