The relationship between Greece and emerging BRICs

Shunya Asano

              What is the specific relationship between the Greek economy and the emerging BRICs’ economy? Why do people need to focus on their powers of BRICs in order to evaluate the corruption of Greece?

              In the global economy, it is crucial to consider about the influence of BRICs. Specifically, India which is represented by BRICs has been developing rapidly and overwhelmingly with their high rate of gross domestic products (GDP). The current Indian economy increased their GDP about 1.3 trillion dollars, and their GDP per capita is 1,031.7 dollars. Furthermore, the most crucial point of India is their GDP real rate which is approximately 10.4 % per year, and this numbered 5th in the world. Comparing this statistic and the improvement of the Greek economy, it can be observed that the fundamental elements which threaten the empowerment of developed countries are the domestic economy that BRICs have.

The Indian economy is supported by Bangalore, which is one of the most robust and industrialized districts. Bangalore comprises over 9.5 million people lives in the district, and the place is called the “Silicon Valley of India,” (Ahmed) which indicates how that place is globally well known. Infrastructure and transportation technology are constructed within Bangalore, and this environment supports prosperity efficiently. 20% of Indian software industries are gathered because each one of them seeks the integration and cooperation of IT development (Keizai report). This efficiency dramatically improves the country’s mass productions and consumptions accelerated by the exploitation of IT development. In addition, since the country is largely depending on tertiary industry, that economic formation will create and be able to increase the trading within the nation which also supports the Indian GDP.

On the other hand, the Greek economy is in affliction by debt approximately 120% of their GDP growth rate and stagnation. The country will confront deflation spiral since the domestic economy is stagnated.

Although it seems hopeless to compete against BRICs’ nations by consumption, the growth of GDP, and market shares, the global society is always changing its forms. For instance, the Greek economy does not have to depend on their national consumption. They also can rely on international market. Growing the number of people in BRICs can indicate that developed nations can make profits from their consumption by international trading. It is also crucial to realize that this international movement is not so miserable that people are thinking.

 

 

 

 

 

 

 

Works Cited

 

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

 

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

 

Aftab, Ahmed and Mukhopadhyay Bhaswati. “Domtar buys diaper company to escape paper volatility.” Yahoo News. 15 Aug. 2011. Web. 20 Aug.

 

“Keizai report.” Asian energy. 2011. Web. 30 Oct. 2011.

Loss of Power and Absorption

Shunya Asano

Through 1990 to 2010, “Economy” has been playing important role in the world. The transition of economic power is a crucial deal between nations or even citizens who live in this global society. This international shift affects the dominant powers which developed countries possess in international market and political significances. In addition, this movement undermines the particular nation since developing nations are enhancing their technology and morphing its economic style.

 Countries located in various continents such as Latin America, East Asia, and Africa have been sophisticated and becoming skillful how to obtain market shares, increment of Gross Domestic Products, and they advance to the next state in the global society. The emergence of BRICs, Next 11, and VISTA represents this international innovation. Moreover, this attributes the loss and less influential powers for developed countries. Consequently, it is stated that the “next” economic nations are absorbing its influences and innovative technology from developed countries.

According to the statistic from FOIN (2012), BRICs (Brazil, Russia, India, and China) increased its car market shares from 22.6% to 35.4% through 2007 to 2010 while developed countries declined its shares from 60.6% to 48.9%. This overwhelming growth of national competence is deteriorating European Union, the United States, and Japan’s capital flows and trading profits since emerging countries are taking advantage to exploit their labors, abundant natural resources, and incentives of foreign companies by its large amount of consumers. Deindustrialization worsens the nations’ trading profits since building companies in developing nations attributes to decrease employment in developed nations. Under this circumstance, it can be mentioned that they are absorbing prosperities from other countries.

Trading profits, deindustrialization, and the increment of market shares are all influences from external factors. Focusing on the term Economy“ requires both perspectives; internal factors and external factors are equally necessary to be concentrated.

Gross Domestic Products are also accelerating the significance of developing countries. For example, although the developed countries’ real economic growth rate only progress 3%, the developing countries and emerging countries are raising 7.1% on average. This massive expansion of their economy can be seen in Next 11 which can be represented by Iran, Indonesia, Egypt, Korea, Turkey, Nigeria, Bangladesh, Pakistan, Philippines, Vietnam, and Mexico. The growth of GDP also represents that their money circulation is efficient which stimulates the citizens’ living standards.

Some emerging countries are morphing its national formation from middle state to developed countries. VISTA which is conducted by Vietnam, Indonesia, Singapore, Turkey, and Argentina is especially remarkable. This can clearly establish visions that these types of nations are taking an important part of international society and progression. On the other hand, this perspective can be identified as negative aspects since that can create more international and severe competition.

 

 

 

 

 

Works Cited

 

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

 

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

The inverse relationship between the corruption of Greece and emerging BRICs

Shunya Asano

              What is the specific relationship between the Greek economy and the emerging BRICs’ economy? I precisely explained one of the most remarkable factors between the Greek financial debt and the BRICs’ improvement of its competition within the international society. However, this is just the introduction and subtle indication how these countries are taking their advantages in the global economy which significantly attributes to undermine the European Unions including the Greek government.

              Specifically, India which is represented by BRICs has been developing rapidly and overwhelmingly with their high rate of growth domestic products (GDP). The current Indian economy increased their GDP about 1.3 trillion dollars, and their GDP per capita is 1,031.7 dollars. Furthermore, the most crucial point of India is their GDP real rate which is approximately 10.4 % per year, and this numbered 5th in the world. Nevertheless, what are the fundamental elements that bolstered their influence with threatening the empowerment of developed countries?

The Indian economy is supported by Bangalore, which is one of the most robust and industrialized districts. Bangalore comprises over 9.5 million people lives in the district, and the place is called the “Silicon Valley of India,” (Ahmed) which indicates how that place is globally well known.

Infrastructure and transportation technology are constructed within Bangalore, and this developed environment makes prosperity efficiently. 20% of Indian software industries are gathered because each one of them seeks the integration and cooperation of IT development (Keizai report). For instance, head office of Infosys, which is one of the most prominent Indian IT industries, is located at there. In addition, many United States computer industries such as IBM, Intel, Texas Instruments, Motorola, Oracle and Cisco Systems promote to be building in Bangalore. In order to compete with these high technology industries, the Indian government must foster and educate engineering skills to their citizens. Preventing Indian IT industries to become inferior to international companies, the Indian government already set up to operate more concentrated education system, and Indian engineers are able to compete against workers who are from foreign countries. On the other hand, the Greek economy is in affliction by debt approximately 120% of their GDP growth rate and stagnation.

While this immediate and rapid establishment of the country’s and district’s internet technology in India, the Greek government and the developed nations are excluded by its dominant growth of international influence. Although it seems hopeless to compete against BRICs’ nations by consumption, the growth of GDP, and market shares, the global society is always changing its forms. If developed nations are threatened and economically undermined by developing countries, BRICs may also be degraded by other emerging nations. The international economy is morphing, and it can be stated that this process is causing the flaw of the Greek economy and developed nations.

 

 

 

 

 

Works Cited

 

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

 

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

 

Aftab, Ahmed and Mukhopadhyay Bhaswati. “Domtar buys diaper company to escape paper volatility.” Yahoo News. 15 Aug. 2011. Web. 20 Aug.

“Keizai report.” Asian energy. 2011. Web. 30 Oct. 2011.

Loss of Power and Absorption

Shunya Asano

Through 1990 to 2010, developing countries are acquiring skills how to obtain market shares, increment of Growth Domestic Products, and advance to next state in the global society. These situations can be represented and observed by the emergence of BRICs, Next 11, and VISTA. In addition, countries which are involved in these categories are morphing to step up next achievement. These international movements cause the loss and less influential power for developed countries, and it seems that these innovative international actions are absorbing economic profits from dominant powers. Their drastically advancement plays important role to the global economy which could consequence the Greek debt and further economic conflicts.

According to the statistic from FOIN, BRICs {Brazil, Russia, India, and China} increased its car market shares from 22.6% to 35.4% through 2007 to 2010 while developed countries declined its shares from 60.6% to 48.9%. This research journal also indicates that emerging countries will improve its international influence on the economic market. This overwhelming growth of national competence is deteriorating European Union, the United States and Japan’s capital flows and trading profits since emerging countries are taking advantage to exploit their labors, abundant natural resources, and incentives of foreign companies by its large amount of consumers. Under this circumstance, they are absorbing prosperities from other countries.

Growth Domestic Products are also accelerating the significance of developing countries. For example, although the developed countries’ real economic growth rate only progress 3%, the developing countries and emerging countries are raising 7.1% on average. This massive expansion of their economy can be seen in Next 11 which can be represented by Iran, Indonesia, Egypt, Korea, Turkey, Nigeria, Bangladesh, Pakistan, Philippines, Vietnam, and Mexico. Their common distinctions can be observed by its amount of trading profits and advancement of their international status. This achievement which was derived by these countries made change the international order as well as the Greek government.

Some emerging countries are morphing its national formation from middle state to developed countries. VISTA which is conducted by Vietnam, Indonesia, Singapore, Turkey, and Argentina is especially remarkable. They are gradually breaking down the global formation which is organized by dominant powers such as European countries and the United States. This can clearly provide us visions that these types of nations which increasingly promote more global advancement are taking an important part of international society and progression. On the other hand, this perspective can be identified as negative aspects since that can create more international and severe competition.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

 

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

 

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

The World became too much intertwined

Shunya Asano

Since countries in this generation are able to connect and trade without any hindrances, the world and global economy became too much dependent contemporary. It is almost impossible to avoid and eliminate globalization from the world economy since David Ricardo or other prominent economists discovered that the international trading system brings significant profit which was indicated in comparative advantage theory. Nevertheless, people often have variety perspectives to economic conflicts and theories. It is crucial to compare different point of views in order to find out core problems and confrontations.

“When Wall Street sneezes, the rest of the world catches pneumonia” (Popik). This sentence is no longer valid statement or metaphor phrase. We, citizens in the world, observed that the Greek economic corruption attributed the world economic recession. The core problem of this global economic disaster was not come from Wall Street in the United States.

According to Robert J. Carbaugh, “Globalization is the process of greater interdependence among countries and their citizens.” Unlike the Popik’s phrase above, this sentence which was brought from Carbaugh mentions significant interdependence through countries. This makes sense since the global economic environment which comprises all countries trading system and economic circumstance was devastated by the Greek financial debt.

When we compare these phrases from two different economic advocators, it can be explained that both of them support the theory of interdependence. When one country confronts economic crisis, the whole global economic system will be in chaos. This statement can be fitted the situation of Greece and the world economy contemporary.

However, it is still questionable to discuss whether the global market recession was attributed from interdependence. Both phrases advocate greater intertwines of the world. Nevertheless, it can be questioned why these economic advocators have different perspectives of connected world. Why one is focusing on one country which is the United States as a core country of world economy, and other advocator concentrates on the all countries as a globalization? This seems odd when we consider carefully. I personally declare that global citizens should deem these economic perspectives deeply and make efforts to analyze what was the real problem of the world recession rather than only concentrating on the Greek financial debt.

When we look wider scope of this economic recession, there might be another crucial or more disastrous economic conflict in the world. Nations such as European Unions and the United States are attempting to recover the financial crisis for the Greek government, but from my perspective, the more necessary economic remedy should be required not only in Greece but also in the world.

 

 

 

 

 

Works Cited

 

Carbaugh, J. Robert. Global Economics. Washington: Central Washington University, 2010.

 

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

 

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

 

Popik, Barry. “When Wall Street sneezes, the rest of the world catches pneumonia” ("When America sneezes…"). New York City 25 Sep. 2008. Web. 14 Oct. 2012.

Why is that so devastating?

Shunya Asano

              Although this economic crisis happened in European countries, we observe that some parts of Japanese economy are also affected severely from this circumstance. Recently, Japan is one of the countries which has huge financial crisis. Moreover, Japan has 6 trillion and 6800 hundred million dollars debt in 2011, this debt number is approximately 184% of entire Japanese GDP per year, and this is the worst number in developed countries (Odawara, 2011). The Japanese government is now attempting to get out this severe economic situation, but the financial crisis in Europe exacerbated the Japanese economy.

              One of the most crucial reasons is the strong Japanese currency. When we hear the word “Strong,” it sounds like profitable to the Japanese economy. Nevertheless, it creates totally negative influence. Historically, since Plaza accord was negotiated with Japan, America, England, West Germany, and France in New York 1985 (“The Plaza Accord,” 2009), Japanese companies started to shrink and stagnate its development of profits and gains. According to Investopedia, after the negotiation of Plaza accord, the Japanese currency plummeted from around 242 yen to around 153 yen per one dollar in 1986. In July 12, 2012, the Japanese currency was 79.491 yen per 1 dollar recently. This economic circumstance harms and undermines the stimulation of the Japanese economy because decline of the Japanese currency induces the increment of import rate. For example, when the Japanese companies can access to purchase import materials much lower cost, they will import to reduce their cost rather than buying of the Japanese products. This means that the demand from the Japanese products will be decreased, and that will damage the profits of the Japanese producers. In addition, when the manufactures in Japan lose their gains, they have to reduce the employment to stabilize their financial management. After this circumstance, the increment of unemployment will create the lack of customs since they can not afford to purchase materials and products by the loss of salary. Finally, this economic circulation will also make recession to the Japanese manufactures which is called deflation spiral.

This currency rate significantly decreased when the Greek government confronted the financial crisis. This indicates that international investors purchased the Japanese currency as a safe bond, and investors rely on the Japanese economic stability. This also explains that Japan is still regarded as an economic stable country. However, this investing movement actually damages Japan since 95% of the Japanese government bonds are hold by domestic investors (Odawara, 2011). Holding bonds by foreign investors can not be reliable and functioned when the government actually encountered financial crisis because if foreign investors hold the government bonds, the government will not be able to collect money from their citizens by taxation which the Japanese government recently attempts to increase the taxation from 5% to 7%. These recent statistics and news show how the Japanese government and economy are in recession which was initially influenced by the Greek financial crisis.

Therefore, when international investors sold European Union’s bonds such as Greece and purchased the Japanese bonds, it affected severely to the Japanese economy.

Works Cited

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

What exacerbated the Greek government into the huge debt?

Shunya Asano

              Strong economic European Nations such as Germany first hesitated to rescue Greece. However, when they realized this problem will be one of the hardest and obliterate the currency and credibility of the European Union, developed countries in European Nations started to provide financial aid to Greece. Furthermore, European Central Bank and IMF which is one of the most famous specialized agencies also supported finance to Greece in 2010, and the amount of financial aid was approximately 1100 hundred million euro. They also provided 7500 hundred million euro and established the Euro Defense Fund which is aimed to alleviate the next financial crisis (Odawara 52). This movement indicates implicitly that ECB and IMF deem there will be next financial crisis in Europe. Nevertheless, the main point is that why the Greek government was hiding the debt until they confronted huge economic crisis.

              It is estimated that Greece’s desire of participation to the European Union is the crucial reason why the Greek government hided their financial debt. European Union is organized by 27 different countries. In addition, 16 out of 27 countries actually implemented euro currency, and it is predicted to expand the euro currency nations more. European Union allows countries and people to intertwine and exchange products, natural resource, security, economy, diplomacy, and nuclear power plant freely and without any obstacles such as tariffs, passport, and customs house. All these processes will produce more profits and transportation efficiency. The remarkable point is 70% of the Greece’s Gross Domestic Products relies on tourism benefits. Moreover, Greece also depended on investing money and finance from foreigners approximately 70% of their entire budget (Odawara, 67). Therefore, participation of the European Union is absolutely crucial for political and economic movement.

              On the other hand, this participation of European Nations actually undermines and hampers the Greek government decision since European Nations are connected strongly. For example, when the Greek government attempted to reduce the interest of their government bonds for stimulating their own domestic economy, they were unable to operate controlling their government bonds because European Central Bank is the organization to make a decision whether they can raise the interest of their government bonds or reduce the interest. In addition, the government was often paralyzed by this disability, and it is possible to regard that the Greek government was suffering by participation of European Unions.

              It is also important to mention about whether Greece will stay in the European Nations or leave the European Nations. According to Institute for International Monetary Affairs, 54.5% of Greek citizens supported that Greece will eventually leave the European Nations, and 45.5% of Greek citizens supported that Greece will stay in the European Nations in the future. This statistic explicitly indicates that Greek citizens know that they are actually suffered from the European Nations. Moreover, according to this affair, one of the most crucial reason why Greek citizens thought they should leave from the European Nations is about the inferiority of international competence. This means that even Greece stays in the European Nations, citizens are sure that Greece will damage them since they have infirm international competence.

              It is obviously important to notice that the situation in Greece is connected with the world economy. Therefore, we, Japanese students, should also focus and pay attention what is going on in Europe.

Works Cited

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

Odawara, Ken. Jijiryoku hattenhen. Tokyo: Riburu teku, 2011. Print.

“Kokusai Kinyu topikkusu.” Institute for International Monetary Affairs. 5 June. 2012. Web. 1 July. 2012.

Roumeliotis, Greg. “Blackstone president: Oust Greece from euro.” Yahoo News. 29 June. 2012. Web. 1 July. 2012.

Our Perspectives

Shunya Asano

Although the weather was raining and everyone seemed nervous, the lecture which my professor provided us was valuable and significantly important. I could not actually think carefully about what the education is, but I realized our perspectives and perceptions toward academic writing are crucial entities for our real education. I deem that when we achieve resolutions by our logical thinking and different ideas, these will create more confidence and motivation of academic. Therefore, it is not always necessary to follow typical orders and methods on academic writing, and I sense these entities will help to innovate our education system including academic writing. These were things that I learned from his lecture.

Why did the financial crisis happen in Greece? By Shun

Why did the financial crisis happen in Greece?

Shunya Asano

            Since Greece, other European nations, and all countries around the world are confronting a controversy about the financial crisis in Greece, I strongly feel that this contemporary topic should be discussed in my essay. This topic will be divided with three essays, and at this time I would like to explain why the financial crisis happened in Greece.

            Firstly, since Greece is one of the members of the European Union, I would like to briefly mention about what the European Union is. The origin of European Union was established from France, Belgium, Netherland, West Germany, Luxemburg, and Italy. These countries constituted initial European Union which was called European Coal & Steel Community. Since there were two big world wars in Europe, the union of European countries was crucial element for preventing to create another world war. In addition, natural resources were main conflict materials and controversies in war. When Jean Monnet who was French businessperson advocated the importance of union of European countries, France and West Germany finally negotiated the international management of steel and coal which were mostly located in Alsace and Lorraine provinces. As a result, the pursuing of peace by European countries was established with strong united communities in 1952 (Ikegami, 173). If these countries strongly pursued the peace of Europe, why financial crisis in Greece happened then?

When the Greek administration changed its regime in October 2009, huge amount of debt was revealed by Georgios Andreas Papandreou regime. At this year, although the Greek government reported that the debt of Greek finance was 300 hundred million dollars, a real financial debt which was revealed by Papandreou regime was 600 hundred million dollars (Ikegami, 165). This matter is especially crucial for European nations because countries such as Germany, France, and Netherland borrowed large amount of money, and this indicates that countries which are mentioned above were waiting money back from Greece with some profits. This indicates how the Greek financial crisis devastated other European nation’s financial stabilities.

Mainly, there were two crucial reasons why this happened in Greece. First reason is the number of government workers and its treatment. For example, European Union and International Ministry of Finance already demanded to the Greek government that Greece should reduce 15,000 government workers in 2012 (Nihonkeizai shinbun, 2012). According to statistic, Japanese government workers will be able to get annuity when they reach 65 years old, and the amount of money will be almost 40~50% of income at the active service. However, Greek government workers will be able to get annuity when they reach 61 years old, and the amount of money will be 80% of income at the active service (Ikegami, 167). In addition, government workers should not be large number of people because it typically lacks competitive motivation rather than companies.

Another important reason is about tax evasion. The Greek government was generally reluctant to check actual profits and gains from companies or stores. Therefore, it was not difficult to gain extra profits from tax evasion for companies and stores since the government did not actually interfere that problem. The loss of profit by tax evasion finally increased to 250 hundred million dollars at annual rate, and this is estimated one fifth of tax yields of the government (Ikegami, 169).

Works Cited

Ikegami, Akira. Ikegami akira no manaberu news. Tokyo: Kairyusha, 2010. Print.

“Patients in pain over Greek debt crisis.” Yahoo News. June. 2012. Web. 12. June. 2012.

“Girisha koumuin ichi man go sennin sakugen.” Nihon Keizai shinbun. Feb. 2012. Web.

     12. June. 2012.

What can a world map tell us? by Shun

I think there were three important reasons why we studied and drew a map of the world in the first class of Academic English. I assume that geographical knowledge, observing different ways to express our ideas by drawing a map, and finding out the common ground were crucial for the process of learning about Academic English towards to International Relationships. Especially we, the Global Studies students, are supposed to have global knowledge since our class is organized by many students who are from different countries.

            As I mentioned, geographical knowledge is important to communicate and convey our ideas with people. For example, if a person does not know much about the geographical information, then that person should not be in major of International Relationships because that person can not diplomatically discuss, share, or exchange its opinions and statements with other students who are from different countries. In International place, this knowledge is also useful and helpful to observe and see what is going on around the world. People will recognize the International topic clearly and lucidly. The faculty of International Relationships focuses on how the culture, economy, and politic are intertwined. In addition, we are motivated to pursue International peace and security. To obtain and gain this achievement, geographical knowledge is obviously required and essential to this faculty.

            In this class, I realized that everyone drew a map differently and distinctively. I deem this is because we have different backgrounds, cultures, and education system. For example, I found the map which Japan was centralized, and in my opinion this explains how we observe the world. In addition, it also shows our perspectives towards the world and provides how we are educated. Only few of my class mates drew a map which North Pole or Africa was centralized. However, most of my class mates portrayed a map which their native countries are centralized. From this experience, I gained new knowledge that students are tended to draw a map which centralizes their native countries because of the different education system, culture, and historical background. There is one more common ground that I found by observing many different maps.

            Students are tended to have lots of information and knowledge about their neighboring countries. When I saw maps, a lot of students jotted down maps of their neighboring countries and continents clearly. On the other hand, only few students could draw maps with perfect boundaries of particular countries and continents such as Africa and Europe. This explicitly tells us my class mates are well- informed about neighboring countries’ circumstances, but they are prone to have ignorance of different continent countries. This indicates that our common ground is also that students are tended to have knowledge and information of neighboring countries.

            In general, when we draw a map, we are prone to centralize our native countries because we have knowledge about our own country and countries which are close to our native country. I do not advocate that students who have same culture and education system write a map completely same, but I guess they will write similarly. These reasons are why I think we studied and drew a map.

Shunya Asano