Afghanistan...Economy

Afghanistan is a member of the South Asian Association for Regional Cooperation (SAARC), Economic Cooperation Organization (ECO) and the Organization of the Islamic Conference (OIC). It is an impoverished country, one of the world's poorest and least developed. As of 2008, the nation's unemployment rate is 35%[135] and roughly 36% of its citizens live below the poverty line.[136] Two-thirds of the population live on fewer than 2 US  dollars a day. The nation's economy has suffered greatly from the 1978 to 2001 conflicts, while severe drought added to the nation's difficulties in 1998–2001.[137]  However, due to the infusion of multi-billion dollars in international assistance and investments, as well as remittances from expats[138], the economy of this war-torn country is slowly improving. It is also due to improvements in agricultural production, which is the backbone of the nation's economy since nearly 80% of its citizens are involved with this line of work.[139] Afghanistan is known for producing some of the finest pomegranates, grapes, apricots, melons, and several other fresh and dry fruits, including nuts.[140] According to the World Bank, "economic growth has been strong and has generated better livelihoods" since late 2001.[141]

 

The Badam Bagh fruit processing plant
As much as one-third of the nations's GDP comes from growing illicit drugs, including hashish and opium. Opium production in Afghanistan has soared to a record in 2007 with some 3.3 million Afghans reported to be involved in the business.[142] However, it began declining significantly in the next few years.[143] The Afghan government began programs to reduce the cultivation of poppy and by 2010 it was reported that 24 out of the 34 provinces are free from poppy cultivation. 

Afghan rug weavers
One of the main drivers for the current economic recovery is the return of over 5 million Afghan refugees from neighbouring countries, who brought with them fresh energy, entrepreneurship and wealth-creating skills as well as much needed funds to start up businesses. Afghan rugs have become a popular product again and this gives the large number of rug weavers in the country a chance to earn more income. While the country's current account deficit is largely financed with the donor money, only a small portion – about 15% – is provided directly to the government budget. The rest is provided to non-budgetary expenditure and donor-designated projects through the United Nations system and non-governmental organizations.

The country's foreign exchange reserves total about $3.781 billion as of March 2010.[144] The Afghan Ministry of Finance is focusing on improved revenue collection and public sector expenditure discipline. The rebuilding of the financial sector seems to have been so far successful. Since 2003, over sixteen new banks have opened in the country, including Afghanistan International Bank, Kabul Bank, Azizi Bank, Pashtany Bank, Standard Chartered Bank, First Micro Finance Bank, and others. Da Afghanistan Bank serves as the central bank of the nation and the "Afghani" (AFN) is the national currency, which has been performing steadily for the last eight years with an exchange rate of about 45 Afghanis to 1 US dollar.

Energy and mining


According to recent U.S. Geological Surveys that were funded by the Afghan Ministry of Mines and Industry, Afghanistan may be possessing up to 36 trillion cubic feet (1,000 km3) of natural gas, 3.6 billion barrels (570,000,000 m3) of petroleum and up to 1,325 million barrels (2.107E+8 m3) of natural gas liquids.[145] Other recent reports show that the country has huge amounts of gold, copper, coal, iron ore and other minerals.[37][146][147] In 2010, U.S. Pentagon officials along with American geologists revealed the discovery of nearly $1 trillion in untapped mineral deposits in Afghanistan.[40] Afghan officials assert that "this will become the backbone of the Afghan economy" and a memo from the Pentagon stated that Afghanistan could become the "Saudi Arabia of lithium".[148] Some believe, including Afghan President Hamid Karzai, that the untapped minerals could be as high as $3 trillion.[149][150][151] The government of Afghanistan is preparing deals to extract its copper and iron reserves, which will earn billions of dollars in royalties and taxes every year for the next 100 years.[152][153] These untapped resources could mark the turning point in Afghanistan's reconstruction efforts. Energy and mineral exports could generate the revenue that Afghan officials need to modernize the country's infrastructure, and expand economic opportunities for the beleaguered and fractious population.
 

Transport and communications

Ariana Afghan Airlines

Ariana Afghan Airlines is the national airlines carrier, with domestic flights between Kabul, Kandahar, Herat and Mazar-e Sharif. International flights include to Dubai, Frankfurt, Istanbul and a number of other Asian destinations.[154] There are also limited domestic and international flight services available from the locally owned Kam Air, Pamir Airways and Safi Airways.

Ariana Afghan Airlines
The country has limited rail service with Turkmenistan and Uzbekistan in the north. There are two other railway projects currently in progress with neighboring nations, one is between Herat and Iran while another is to connect with Pakistan Railways.

Most citizens who travel far distances use long traveling bus services. Newer automobiles have recently become more widely available after the rebuilding of roads and highways. Vehicles are imported from the United Arab Emirates through Pakistan and Iran. Postal and package delivery services such as FedEx, DHL and others exist in major cities and towns.

Telecommunication services in the country are provided by Afghan Wireless, Etisalat, Roshan, Areeba and Afghan Telecom. In 2006, the Afghan Ministry of Communications signed a 64.5 million agreement with ZTE Corporation for the establishment of a countrywide optical fiber cable network.[155] As of 2008, the country has 460,000 telephone lines[156], 8.45 million mobile phone users[157] and around 500,000 people (1.5% of the population) have internet access.[158]

Tokyo - Economy

Bank of Japan

Tokyo is one of the three world finance "command centers", along with New York and London. Tokyo has the largest metropolitan economy in the world. According to a study conducted by PricewaterhouseCoopers, the Tokyo urban area (35.2 million people) had a total GDP of US$1.479 trillion in 2008 (at purchasing power parity), ranking again as the largest urban agglomeration GDP in the world.^[3] As of 2008, 47 of the companies listed on the Global 500 are based in Tokyo, almost twice that of the second-placed city (Paris).^[35]

Tokyo Stock Exchange, the second largest in the world by market capitalization

Tokyo is a major international finance center,^[36] houses the headquarters of several of the world's largest investment banks and insurance companies, and serves as a hub for Japan's transportation, publishing, and broadcasting industries. During the centralized growth of Japan's economy following World War II, many large firms moved their headquarters from cities such as Osaka (the historical commercial capital) to Tokyo, in an attempt to take advantage of better access to the government. This trend has begun to slow due to ongoing population growth in Tokyo and the high cost of living there.

Shiodome City Center in Minato, headquarters of All Nippon Airways and Fujitsu

The Big Mac Index shows that workers in Tokyo earn the highest salary in the world.^{[citation needed]}

Tokyo was rated by the Economist Intelligence Unit as the most expensive (highest cost-of-living) city in the world for 14 years in a row ending in 2006.^[37] This analysis is for living a corporate executive lifestyle, with items like a detached house and several automobiles.^{[citation needed]}

The Tokyo Stock Exchange is Japan's largest stock exchange, and second largest in the world by market capitalization and fourth largest by share turnover. In 1990 at the end of the Japanese asset price bubble, it accounted for more than 60% of the world stock market value.^[38]

Japan Airlines headquarters in Shinagawa

Tokyo had 8,460 ha (20,900 acres) of agricultural land as of 2003,^[39] according to the Ministry of Agriculture, Forestry and Fisheries, placing it last among the nation's prefectures. The farmland is concentrated in Western Tokyo. Perishables such as vegetables, fruits, and flowers can be conveniently shipped to the markets in the eastern part of the prefecture. Japanese leaf spinach and spinach are the most important vegetables; as of 2000, Tokyo supplied 32.5% of the Japanese leaf spinach sold at its central produce market.

With 36% of its area covered by forest, Tokyo has extensive growths of cryptomeria and Japanese cypress, especially in the mountainous western communities of Akiruno, Ōme, Okutama, Hachiōji, Hinode, and Hinohara. Decreases in the price of lumber, increases in the cost of production, and advancing old age among the forestry population have resulted in a decline in Tokyo's output. In addition, pollen, especially from cryptomeria, is a major allergen for the nearby population centers.

Tokyo Bay was once a major source of fish. Presently, most of Tokyo's fish production comes from the outer islands, such as Izu Ōshima and Hachijōjima. Skipjack tuna, nori, and aji are among the ocean products.

Tourism in Tokyo is also a contributor to the economy.

Washington: Economy

Microsoft Corporation, Redmond

The 2007 total gross state product for Washington was $311.5 billion, placing it 14th in the nation.^[27] The per capita personal income in 2007 was $41,203, 10th in the nation. Significant business within the state include the design and manufacture of jet aircraft (Boeing), computer software development (Microsoft, Amazon.com, Nintendo of America, Valve Corporation), electronics, biotechnology, aluminum production, lumber and wood products (Weyerhaeuser), mining, and tourism. The state has significant amounts of hydroelectric power generation.

Significant amounts of trade with Asia pass through the ports of the Puget Sound. See list of United States companies by state. Fortune magazine survey of the top 20 Most Admired Companies in the US has 4 Washington based companies in it, Starbucks, Microsoft, Costco and Nordstrom.^[28]

The state of Washington has the least progressive tax structure in the U.S.^{[clarification needed]} It is one of only seven states that does not levy a personal income tax. The state also does not collect a corporate income tax or franchise tax. However, Washington businesses are responsible for various other state levies. One tax Washington charges on most businesses is the business and occupation tax (B & O), a gross receipts tax which charges varying rates for different types of businesses.

Starbucks Headquarters, Seattle.

Washington's state sales tax is 6.5 percent, and it applies to services as well as products.^[29] Most foods are exempt from sales tax; however, prepared foods, dietary supplements and soft drinks remain taxable. The combined state and local retail sales tax rates increase the taxes paid by consumers, depending on the variable local sales tax rates, generally between 8 and 9 percent.^[30] An excise tax applies to certain select products such as gasoline, cigarettes, and alcoholic beverages. Property tax was the first tax levied in the state of Washington and its collection accounts for about 30 percent of Washington's total state and local revenue. It continues to be the most important revenue source for public schools, fire protection, libraries, parks and recreation, and other special purpose districts.

All real property and personal property is subject to tax unless specifically exempted by law. Personal property also is taxed, although most personal property owned by individuals is exempt. Personal property tax applies to personal property used when conducting business or to other personal property not exempt by law. All property taxes are paid to the county treasurer's office where the property is located. Washington does not impose a tax on intangible assets such as bank accounts, stocks or bonds. Neither does the state assess any tax on retirement income earned and received from another state. Washington does not collect inheritance taxes; however, the estate tax is decoupled from the federal estate tax laws, and therefore the state imposes its own estate tax.

Washington is one of eighteen states which has a government monopoly on sales of alcoholic beverages, although beer and wine with less than 20 percent alcohol by volume can be purchased in convenience stores and supermarkets. Liqueurs (even if under 20 percent alcohol by volume) and spirits can only be purchased in state-run or privately-owned-state-contracted liquor stores.^[31]

Among its resident billionaires, Washington boasts Bill Gates, chairman of Microsoft, who, with a net worth of $40 billion, was ranked the wealthiest man in the world as of February 2009, according to Forbes magazine.^[32] Other Washington state billionaires include Paul Allen (Microsoft), Steve Ballmer (Microsoft), Jeff Bezos (Amazon), Craig McCaw (McCaw Cellular Communications), James Jannard (Oakley), Howard Schultz (Starbucks), and Charles Simonyi (Microsoft).^[33]

Agriculture

Azwell, Washington, a small community of pickers' cabins and apple orchards.

Washington is a leading agricultural state. (The following figures are from the Washington State Office of Financial Management and the USDA, National Agricultural Statistics Service, Washington Field Office.) For 2003, the total value of Washington's agricultural products was $5.79 billion, the 11th highest in the country. The total value of its crops was $3.8 billion, the 7th highest. The total value of its livestock and specialty products was $1.5 billion, the 26th highest.

In 2004, Washington ranked first in the nation in production of red raspberries (90.0% of total U.S. production), wrinkled seed peas (80.6%), hops (75.0%), spearmint oil (73.6%), apples (58.1%), sweet cherries (47.3%), pears (42.6%), peppermint oil (40.3%), Concord grapes (39.3%), carrots for processing (36.8%), and Niagara grapes (31.6%). Washington also ranked second in the nation in production of lentils, fall potatoes, dry edible peas, apricots, grapes (all varieties taken together), asparagus (over a third of the nation's production), sweet corn for processing, and green peas for processing; third in tart cherries, prunes and plums, and dry summer onions; fourth in barley and trout; and fifth in wheat, cranberries, and strawberries.

The apple industry is of particular importance to Washington. Because of the favorable climate of dry, warm summers and cold winters of central Washington, the state has led the U.S. in apple production since the 1920s.^[34] Two areas account for the vast majority of the state's apple crop: the Wenatchee–Okanogan region (comprising Chelan, Okanogan, Douglas, and Grant counties), and the Yakima region (Yakima, Benton and Kittitas counties)

Economy

Overview

Building of Sberbank Rossii in Moscow

GUM department store exterior facing Red Square

Moscow is one of largest city economies in Europe and it comprises approximately 20% of Russian GDP. As of 2007 Moscow economy reached 6.73 trl roubles ^[75] ($263 bln or $426bln PPP adjusted ^[76]).

In 2006, Mercer Human Resources Consulting named Moscow the world's most expensive city for expatriate employees, ahead of perennial winner Tokyo, due to the stable Russian ruble as well as increasing housing prices within the city.^[77] Moscow also ranked first in the 2007 edition and 2008 edition of the survey. However, Tokyo has overtaken Moscow as the most expensive city in the world, placing Moscow at third and behind Osaka at second.^[8]

A significant portion of Russia's profits and development is concentrated in Moscow as many multi-national corporations have branches and offices in the city. The plush offices and the lifestyles of the typical corporate employee in Moscow are often indistinguishable from any Western European city, although the average salary for the Muscovite is a bit lower.^[78] Since the 1998 Russian financial crisis, various business sectors in Moscow have shown exponential rates of growth. Many new business centres and office buildings have been built in recent years, but Moscow still experiences shortages in office space. As a result, many former industrial and research facilities are being reconstructed to become suitable for office use.

The upper trading rows at GUM near Red Square

However, while the overall stability has improved in the recent years, crime and corruption continue to remain a problem hindering business development.

Paveletskaya Tower business center

The Cherkizovskiy marketplace is the largest marketplace in Europe with daily turnover of about thirty million dollars and about ten thousand sellers^[79] from different countries (including China, Turkey, Azerbaijan and India). It is administratively divided into twelve parts and covers a wide sector of the city.It is closed from 1st of July 2009.

In 2008, Moscow had 74 billionaires with average wealth of $5.9 billion, which placed it above New York's 71 billionaires. However, in 2009, there are only 27 billionaires in Moscow compared with New York's 55 billionaires. Overall, Russia lost 52 billionaires during the recession List of Russian billionaires by net worth ^[80]. Topping the list of Russia's billionaires in 2009 is Mikhail Prokhorov with $9,5 billion, ahead of the more famous Roman Abramovich with $8.5 billion, in 2nd place. Prokhorov's holding company, "ОНЭКСИМ" group, owns huge assets in hidrogenium energy, nanotechnology, traditional energy, precious metals sector, while Abramovich, since selling his oil company Sibneft to Russian state-controlled gas giant Gazprom in 2005, has bought up steel and mining assets. He also owns Chelsea F.C.. Russia's richest woman remains Yelena Baturina, the 45-year-old second wife of Moscow Mayor Yuri Luzhkov. Oleg Deripaska, the 1st of this list in 2008 with $28 billion, in 2009 is only 10th with $3.5 billion.

The nouveau riche, also called the "New Russians", often pejoratively, have a reputation for flaunting their wealth; the avenues for doing so, and subtly, have also increased in recent times — a sense of fashion and self-consciousness has instilled itself through the many haute couture and haute cuisine spots in Moscow.

Industry

Primary industries in Moscow include the chemical, metallurgy, food, textile, furniture, energy production, software development and machinery industries.

The Moscow Skyline as seen from Sparrow Hills

The Mil Moscow Helicopter Plant is one of the leading producers of military and civil helicopters in the world. Khrunichev State Research and Production Space Center produces various space equipment, including modules for space stations Mir, Salyut and the ISS as well as Proton launch vehicles and military ICBMs. Sukhoi, Ilyushin, Mikoyan, Tupolev and Yakovlev aircraft design bureaus also situated in Moscow. Automobile plants ZiL and AZLK, as well as the Voitovich Rail Vehicle plant, are situated in Moscow and Metrovagonmash metro wagon plant is located just outside the city limits. The Poljot Moscow watch factory produces reliable military, professional and sport watches well known in Russia and abroad. Yuri Gagarin in his trip into space used "Shturmanskie", produced by this factory. The Electrozavod factory was the first transformer factory in Russia. The Kristall distillery^[81] is the oldest distillery in Russia producing various vodka types, including "Stolichnaya" while a wide assortment of wines are produced at several Moscow wine plants, including Moscow Interrepublican Vinery.^[82] The Moscow Jewelry Factory^[83] and the Jewellerprom^[84] are important producers of jewellery in Russia; Jewellerprom used to produce the famous and exclusive Order of Victory, awarded to those aiding the Soviet Union's Red Army during World War II. There are also many other industries located just outside the city of Moscow, as well as many microelectronic industries in Zelenograd.

Gazprom, the largest extractor of natural gas in the world and the largest Russian company, has head office also in Moscow, as well as many other oil, gas and electricity companies.

OKB Sukhoi

ZiL water cart in Moscow

Moscow also hosts headquarters of various software development companies, including such as:

• 1C Company – business software and games producer
• ABBYY software house – developer of text recognition and translation software,
• Akella – game developer company
• Kaspersky Lab – worldwide-known producer of anti-virus software,

Despite the economic growth experienced in Moscow since the dawn of the twenty-first century, many industries have undergone various crises in recent years. Some of them have been sold to foreign investors, such as OTIS and British American Tobacco, and others have been closed down to make room for new buildings constructed as business centres.

Additionally, some industry is now being transferred out of Moscow to improve the ecological state of the city. Nevertheless, the city of Moscow remains one of Russia's major industrial centres.

Living costs

Triumph Palace—Europe's tallest residential building

Patriarshy ponds, one of the most prestigious places in Moscow

Residential buildings under construction

During Soviet times, apartments were lent to people by the government according to the square meters-per-person norm (some groups, including people's artists, heroes and prominent scientists had bonuses according to their honors). Private ownership of apartments was limited until the 1990s, when people were permitted to secure property rights to the places they inhabited. Since the Soviet era, estate owners have had to pay the service charge for their residences, a fixed amount based on persons per living area.

Due to the current economic situation, the price of real estate in Moscow continues to rise. Today, one could expect to pay US$4000 in average per square meter (11 sq ft) in the outskirts of the city^[85] or US$6,500–$8,000 per square meter in a prestigious district. The price sometimes may exceed US$40,000 per square meter in a flat.^[86][87][88] It costs about US$2500 per month to rent a 1-bedroom apartment and about US$1500 per month for a studio in the center of Moscow.

A typical one-bedroom apartment is about thirty square meters (323 sq ft), a typical two-bedroom apartment is forty-five square meters (485 sq ft), and a typical three-bedroom apartment is seventy square meters (753 sq ft). Many cannot move out of their apartments, especially if a family lives in a two-room apartment originally granted by the state during the Soviet era. Some city residents have attempted to cope with the cost of living by renting their apartments while staying in dachas (country houses) outside the city.

In 2008, Moscow ranked top on the list of most expensive cities for the third year in a row.^[89]

As of 2006, there are 8.47 million Muscovites able to work. 1.73 million are employed by the state, 4.42 million are employed by private companies, and 1.99 million are employed by small businesses. There are 74,400 officially registered unemployed working age, of which 34,400 are eligible for unemployment benefits.^[45]

Future development

Moscow International Business Center Skyline

The "Moscow International Business Center" (Moscow-City) is a projected new part of central Moscow. Geographically situated in Presnensky District, located at the Third Ring, the Moscow-City area is under intense development.

Bagration Bridge and Tower 2000

Third Ring near MIBC

The goal of MIBC "Moscow-City" is to create a zone, the first in Russia, and in all of Eastern Europe,^[90] that will combine business activity, living space and entertainment. It will be a city within a city. The project was conceived by the Moscow government in 1992.

The construction of MIBC "Moscow-City" takes place on the Krasnopresnenskaya embankment. The whole project takes up 1 square kilometer (247 acres). This area is the only spot in downtown Moscow that can accommodate a project of this magnitude. Today, most of the buildings there are old factories and industrial complexes.

The Federation Tower, now being built is to be completed in 2009, will become the tallest building in Europe when completed.

At overall completion the plan is to have one of the tallest buildings in the world; the Russia Tower is planned to be completed by 2012 at a height of 612,2 meters (2009 ft), second only to the Burj Khalifa.^[91] Also to be included in the project are a waterpark and other recreational facilities; trade and entertainment complexes, numerous prestigious office and residential buildings, the transport node and the new site of the Moscow government. The construction of four new metro stations in the territory has already been completed, of which two have already opened and two others are reserved for future metro lines crossing MIBC, some additional stations were planned. A rail shuttle service, directly connecting MIBC with the Sheremetyevo International Airport is also planned.

A Fourth Ring freeway (in addition to Moscow Automobile Ring Road, Garden Ring and the Third Ring) has been designed and is being built around Moscow. It is to be completed by 2012 and will have total length of 61 kilometers (38 mi).^[92][93][94]

In March 2009 the Russian business newspaper "Kommersant"^{[95][96][97][98]} reported that because of the Worldwide Economic Crisis, which started in 2008 and spread globally, many of the construction projects in Moscow (especially in the "Moscow International Business Center") are frozen and may be cancelled altogether—like the ambitious "Russia Tower" in "Moscow-city". Many of yesterday's monstrous development groups is now in near-bankrupt state like—Mirax-group or AFI Development.

Mumbai - Economy

The Bombay Stock Exchange is the oldest in Asia

Mumbai is India's largest city and is considered the financial capital of the country as it generates 5% of the total GDP.^[6][91] It serves as an economic hub of India, contributing 10% of factory employment, 25% of industrial output, 33% of income tax collections, 60% of customs duty collections, 20% of central excise tax collections, 40% of India's foreign trade and Rs. 40 billion (US$ 820 million) in corporate taxes.^[128] Mumbai's GDP is Rs 200,483 crore (US$ 41.3 billion),^[129] and its per-capita income is Rs. 65,361 (US$ 1,350), which is almost three times the national average.^[66] Many of India's numerous conglomerates (including Larsen and Toubro, Reserve Bank of India, State Bank of India, LIC, Tata Group, Godrej and Reliance),^[91] and five of the Fortune Global 500 companies are based in Mumbai.^[130] Many foreign banks and financial institutions also have branches in this area,^[91] with the World Trade Centre being the most prominent one.^[131] Until the 1970s, Mumbai owed its prosperity largely to textile mills and the seaport, but the local economy has since been diversified to include engineering, diamond-polishing, healthcare and information technology.^[132] As of 2008, the Globalization and World Cities Study Group (GaWC) has ranked Mumbai as an "Alpha world city", third in its categories of Global cities.^[133]

India's 300 million strong middle-class population is growing at an annual rate of 5%. here is a residential area in the Mumbai metropolitan region


State and central government employees make up a large percentage of the city's workforce. Mumbai also has a large unskilled and semi-skilled self employed population, who primarily earn their livelihood as hawkers, taxi drivers, mechanics and other such blue collar professions. The port and shipping industry is well established, with Mumbai Port being one of the oldest and most significant ports in India.^[135] In Dharavi, in central Mumbai, there is an increasingly large recycling industry, processing recyclable waste from other parts of the city; the district has an estimated 15,000 single-room factories.^[136]

Most of India's major television and satellite networks, as well as its major publishing houses, are headquartered in Mumbai. The centre of the Hindi movie industry, Bollywood, is the largest film producer in India and one of the largest in the world.^[137][138] Along with the rest of India, Mumbai, its commercial capital, has witnessed an economic boom since the liberalisation of 1991, the finance boom in the mid-nineties and the IT, export, services and outsourcing boom in 2000s.^[139] Mumbai has been ranked 48th on the Worldwide Centres of Commerce Index 2008.^[140] In April 2008, Mumbai was ranked seventh in the list of "Top Ten Cities for Billionaires" by Forbes magazine,^[141] and first in terms of those billionaires' average wealth.