This article discusses how Crimea is using many of the topics we have discussed in class. They have implemented a 50% tax on business profits, taken he largest bread producer and moved them from the private to the public sector and imposed regulations on exports. I think that taking the company out of the private sector is a good idea, considering the business was not being efficiently run, there is a food shortage and a series of scandals were taking place. While I doubt that a government run business will be fully efficient, I hope that it will at least work to improve production until the food shortage is over. I am curious if the government plans to move the business back to the private sector once the problem is solved and then impose stricter regulations, or if the government plans on making the company a permanent element of the public sector
This move is definitely an act of politics. Since keeping good relations with Russia is of vital importance to Crimea and its budget, it was in the government's best interest to nationalize a company that could compromise this relationship. Also, with a concern over the shortages of the food supply, the fact that Krymkhleb held much of the region's grain production and was sending some of this food outside the country's borders, even with restrictions on food exports, gave the Crimean government even more incentive to nationalize Krymkhleb. Overall, it will be interesting to see how the Crimean government utilizes the new amendment on the seizure of private properties and for how long.
This article discusses how Crimea is using many of the topics we have discussed in class. They have implemented a 50% tax on business profits, taken he largest bread producer and moved them from the private to the public sector and imposed regulations on exports. I think that taking the company out of the private sector is a good idea, considering the business was not being efficiently run, there is a food shortage and a series of scandals were taking place. While I doubt that a government run business will be fully efficient, I hope that it will at least work to improve production until the food shortage is over. I am curious if the government plans to move the business back to the private sector once the problem is solved and then impose stricter regulations, or if the government plans on making the company a permanent element of the public sector
ReplyDeleteThis move is definitely an act of politics. Since keeping good relations with Russia is of vital importance to Crimea and its budget, it was in the government's best interest to nationalize a company that could compromise this relationship. Also, with a concern over the shortages of the food supply, the fact that Krymkhleb held much of the region's grain production and was sending some of this food outside the country's borders, even with restrictions on food exports, gave the Crimean government even more incentive to nationalize Krymkhleb. Overall, it will be interesting to see how the Crimean government utilizes the new amendment on the seizure of private properties and for how long.
ReplyDelete