Established in 1991, “it exists to foster the transition towards open market oriented economies and to promote private and entrepreneurial initiative in the countries of central and eastern Europe and the Commonwealth of Independent States (CIS) committed to and applying the principles of multiparty democracy, pluralism and market economics. The EBRD seeks to help its 26 countries of operations to implement structural and sectoral economic reforms, promoting competition, privatization and entrepreneurship, taking into account the particular needs of countries at different stages of transition. Through its investments it promotes private sector activity, the strengthening of financial institutions and legal systems, and the development of the infrastructure needed to support the private sector. The Bank applies sound banking and investment principles in all of its operations. In fulfilling its role as a catalyst of change, the Bank encourages co-financing and foreign direct investment from the private and public sectors, helps to mobilize domestic capital, and provides technical co-operation in relevant areas. It works in close co-operation with international financial institutions and other international and national organizations. In all of its activities, the Bank promotes environmentally sound and sustainable development.”

Grandiloquence aside, the EBRD was supposed to foster the formation of the private sector in the revenant wreckage of Central and Eastern Europe, the Balkan, Russia and the New Independent States. This it was mandated to do by providing finance where there was none (“bridging the gaps in the post communist financial system” to quote “The Economist”). Put more intelligibly, it was NOT supposed to transform itself into a long-term investment portfolio with equity holdings in most blue-chips in the region. Yet, this is precisely what it ended up becoming. It avoided project financing like the plague and met the burgeoning capital needs of small and medium size enterprises (SMEs) grudgingly. And it refuses to divest itself of stakes in the best run and most efficiently managed firms from Russia to the Czech Republic. In a way, it competes head on with other investors and commercial banks – often crowding them out with its subsidized financing.

One of its main mistakes, in a depressingly impressive salmagundi, is that it channelled precious resources to this budding sector (SMEs), the dynamo of every economy, through the domestic, decrepit, venal and politically manhandled banking system. The inevitable result was a colossal waste of resources. The money was allocated to sycophantic cronies and sinecured relatives (often one and the same) and to gigantic, state-owned or state-favoured loss makers. Most of it lay idle and yielded to its hosts a hefty income in arbitrage and speculation. As banks went bankrupt, they wiped whole portfolios of EBRD SME funds, theoretically guaranteed by even more bankrupt states.

Thus, the only segments of the private sector to benefit handsomely from the EBRD were lawyers and accountants involved in the umpteen lawsuits the EBRD is mired in. It is a growth industry in “countries” such as Russia. This is the melancholy outcome of indiscriminate, politically-motivated lending and of a lackadaisical performance as both lenders and shareholders. In the spirit of its first chairman, the suave and titivated Attali, the bank is in a constant road show, mortified by the possibility of its dissolution by reason of irrelevance. It aims to impress the West with its grandiose projects, mega investments, fast returns and acquiescence. In thus behaving, it is engaged in a perditionable perfidy of its fiduciary obligations. It lends to criminal managers, winking at their off-shore shenanigans and turning a blind eye to the scapegrace slaughter of minority shareholders. It throws good money after bad, cosies up to oligarchs near and far and engages in creative accounting. Instead of Westernizing the Easterners – it has been Easternized by them. Its sedentary though peregrinating employees are more adept at wining and at dining the high and mighty and at haughtily maundering in the odd, tangential, seminar – than at managing a banking institution or looking after the interests of their nominal shareholders with the tutelary solicitude expected of a bank.

Consider two examples:

Macedonia

The nascent private sector is nowhere to be found in the list of projects the EBRD so sagely chose to falter into here. The Electricity and Telecoms monopolies are prime beneficiaries as is the airport. The EBRD is also a passive shareholder in both big universal banks – until recently, conduits of state mismanagement. The SME and Trade Facilitation credit lines were conveniently divvied up among five domestic banks (one went belly up, the managers of two are under criminal investigation and one was sold to a Greek state bank). Despite vigorous protestations to the contrary, none of this money reached its proclaimed entrepreneurial targets. Two loans were made to giant local firms – the natural preserve of commercial lenders and equity investors the world over. The EBRD contributed nothing to the emergence of a management culture, to the development of proper corporate governance, to the safeguarding of property rights and the protection of minority shareholders here. Instead, it colluded in the perpetuation of monopolies, shoddy and shady banking practices, the pertinacious robbery titled “privatization” and the pretence of funding languishing private sector enterprises.

Russia

Its 2 billion US dollars portfolio all but wiped out in the August 1998 financial crisis, the EBRD has now returned with 700 million new Euros to be – conservatively but not more safely – lent in major energy and telecom behemoths.

The historic, pre-1998, portfolio appears impressive. Almost 11 billion US dollars were generated by the EBRD’s less than 4. The bottom line reads 94 projects. Yet, when one neutralizes the infrastructural ones (including the gas and energy sector) – one is left with less than 50% of the amount. Add “infrastructure-like” projects (water transportation and the like) – and less than 30% of the portfolio went to what can be called proper “private sector”. Moreover, even these investments and credits were geared towards traditional and smokestack industries: mining, food processing, pipelines, rubber and such. Not an entrepreneur in sight. And the EBRD’s meagre loan-loss provisions and reserves cast serious doubts regarding the mental state of both its directors and its auditors.

To varying degrees, these two countries are typical. Development banks, like industrial policy, import substitution and poverty reduction, have gone in and out of multilateral fashion several times in the last few decades. But there is a consensus regarding some minimum aims of such bureaucracy-laden establishments – and the EBRD achieves none. It does not encourage entrepreneurship. It does not improve corporate governance. It does not enhance property rights. It does not allocate economic resources efficiently. It competes directly with other – more desirable – financing alternatives. It is not equipped to monitor its vast and inert portfolio. By implication it collaborates in graft, tax evasion and worse. It is a waste of scarce resources badly needed elsewhere. It should be administered a coup de grace. And its marbled abode – so out of touch with the realities of its clients and its balance sheet – should be sold to someone more up to the task. A bank, for instance.

POST SCRIPTUM – Comments Made to “The Banker” – February 2002

This article was written afew years ago. I would not have written the same article today. The EBRD used to be pretty monolithic in its four orientations: pro-state companies, pro-big business (or mega projects), pro-governmental projects, and pro-commodities (mostly energy products).

It is now more open to SME financing – and not only as lip service.

Instead of colluding with venal, inefficient, crony-ridden, and decrepit local banking systems – it has taken over them in partnership with foreign investors. It has a more tangible in-field operating presence.

Its assets are more balanced (in maturity structures, single lender exposures, collateral portfolios, etc.). It is more innovative and creative in its collaboration with the private sector, offering a varied range of vehicles. In short: it is becoming more community orientated and less “commercially” conservative. It begins to fulfill its original charter of filling the gap between IFI’s and micro-lending. It is still hobbled by overweening political interventionism – but that is to be expected in a regional development bank (see the ADB, IADB, and so on).

Sam Vaknin ( samvak.tripod.com ) is the author of Malignant Self Love – Narcissism Revisited and After the Rain – How the West Lost the East. He served as a columnist for Global Politician, Central Europe Review, PopMatters, Bellaonline, and eBookWeb, a United Press International (UPI) Senior Business Correspondent, and the editor of mental health and Central East Europe categories in The Open Directory and Suite101.

Until recently, he served as the Economic Advisor to the Government of Macedonia.

Visit Sam’s Web site at samvak.tripod.com

Algebra and its Relationship with Geometry

Geometry brings into play the complete use of algebra to graph a circle, a hyperbola, a parabola or even finding the focus of a hyperbola. From the very primary operations of computing the midpoint of a line or the radius of a circle to the more complex operations of determining if a parabola opens up or to compute its directrix, algebra makes its presence visible to a high level of purpose in the field of geometry.

Algebra – Solving Equations & Exponents

Equipped with knowledge on how to play around with algebra, solving equations involving linear, quadratic or radicals will be no issue. With algebra one can solve inequalities and even graph systems of fractional equations and linear inequalities . Playing with exponents is no longer an problem when you start using algebra. Algebra works with the Laws of exponents by facilitating one to add, subtract, divide and multiply expressions with ease and confidence.

Evaluate Fractions and Polynomials – Try Algebra Calculators

No matter in which area you find trouble when it comes to math, algebra solvers can assist you. The algebra software solves problems posted and is able to produce results immediately. Complex matrix problems like inverse matrix and other matrix operations can be handled with the algebra calculator software. Thanks to the algebraic solvers, simplifying algebraic expressions, which may involve factoring polynomials or involves determination of the LCD, has now been made a very easy task.

Professional Help All the Way

Students can get professional help from private instructors who will provide you with a step-by-step solution for your problems. Math private instructors are at your disposal for those hard problems which can get you easily bugged. The math solver applications that is widely available in today’s market provide infinite options to suit a student’s every need. From calculators that cater to a specific type of algebra to ones that scan the entire scope of the subject, you will find a complete answer.

Algebra is a wide category of mathematics that uses generalization by substituting letters for numbers. This abstraction is the very reason why most people find algebra scary and too difficult to handle and it is the same reasons why some students find it fun to play around with. Algebra topics range by working through simple tasks such as factoring trinomials and eventually progressing on to finding the inverse of a matrix. Most people start to try Algebra by adding, subtracting, reducing and simplifying algebraic expressions . They then move on to understanding equivalent fractions, finding Least Common Multiples (LCM) and converting fractions to decimals.

Help!!! Exponents, Radicals and Graphing on the Way…

There are many advanced topics. Firstly there are powers. A power is the tiny number placed as superscript to a number or algebraic expression. An example is (x + y)³ where the 3 is the power and denotes the power to which that number is raised. The above algebraic expression is read, x plus y to the third power. In working with exponents you can add, subtract, multiple or divide them. If you pick up the fundamentals, you will soon start working with rational and negative exponents and if you think those are not challenging enough, hopefully radicals will spin your head. A radical, in simple terms, is the reversing of an power. The V beside 4 denote a radical expression which means, the square root of 4, which equals 2. The inverse of “V” symbol is “^” which denotes that the number it refers to is a multiple of the principle number. Therefore, 2^2 which is read as 2 to the 2nd power, equals 4. Equally with exponents, radical expressions can be added, subtracted, multiplied and divided. Radicals can be changed into powers and exponents back into radicals. If powers and radicals aren’t enough, there is always graphing. The best way to start with graphing is to draw lines and try to work out if they are horizontal, vertical or neither. Another question to ask is whether the line has an x-intercept or a y-intercept Can you find the slope of the line? you master the mathematical art of graphing, you will identify a whole new world full of parabolas and hyperbolas.

Help is Out There

While you are learning algebra if the terms and concepts seem too much to handle, relax and take a break. Did you know that there are many resources out there that can help you master fractional systems of equations, quadratic formulas and polynomials . Look for math tutors or software applications that will walk you through stepwise process on how to solve any problem. You can also use algebra calculators or algebra solvers. any of these instruments can help you become an algebra expert in no time.

Mathematics has been one of the less favorite subjects in American classrooms. Although students in other countries graduate with excellence in mathematics, most of the standard high school age pupils in the United States scratch their heads when given questions about converting fractions to decimals, converting measures and units, solving radical inequalities, or solving radical equations. It makes sense that this predicament is as widespread as it is. Algebra consists of various complex mathematical equations that it is easy for a student to get lost when expected to explain synthetic division or adding fractions . For that matter, algebra is mostly based on using letters to substitute for numbers. While this isn’t highly complex in and of itself, it brings itself poorly to the ‘jump in and play’ view of some mathematics. Put simply, the ability to execute a certain algebraic task is based on the person already knowing a task that led to it. This is to say that Algebra is a procedure that demands mastery of each step in order to advance. A student can’t hope for finding square root radicals and roots when he or she has not learned proportions and ratios, or converting measures and units.

Technological Breakthroughs:

Although this is nothing new, it looks that math grades have slipped even further in recent years. This may be caused by many causes, but no answer comes out of finger pointing. Recently, there have been extracurricular helps on the market to aid children develop mathematical skills when out of the classroom. What little software system or program there was, more geared towards assisting younger children grasp the constructs of arithmetic. Luckily, the market for such a product has coincided with the technology essential, providing an influx of ‘algebra computer software‘ or ‘algebra solver‘ programs that permit the mastery of algebra to anyone who is equipped with standard computer knowledge.

Algebra Computer Software:

There are various algebra calculators available and they vary depending on for what they have been produced for. Some may offer some features as graphing a circle, or solving simultaneous equations, but may not have the computer programming necessary for resolving exponential equations or adding exponents . It is up to the consumer to inquire upon what is available in the specific computer program, but many algebra solver computer software systems will advertise their features. The best bet for anybody who is interested in computer assistance for subtracting rational expressions or converting decimals to fractions; basically, whatever specific requirement you would have, is to consult the web and research the product in question.

The History

Invented in the first millennium BC, algebra has its sources in the middle-east. The ancient geniuses used algebra for solving daily problems while the Asian or rather Chinese counterpart practiced geometry for the same intention.

What is the Nature of Algebra?

Although you may see algebra as solving formulas, simplifying rational expressions, and converting fractions to decimals, algebra is one of the sciences that has the to the highest degree of applicability when it comes to practice. Since this view has been understood, the education system forces us to learn algebra from the inception of our pupil life.

Algebra I

The students are given an introduction in this study course to numbers, solving linear equations, graphing systems of linear equations, graphing linear inequalities, laws of exponents, solving linear equations, and factoring polynomials. This course of study positions the groundwork for the rest of the advanced algebra waiting to be searched in the next two levels.
If a pupil is keen on learning algebra down to its roots, then this is a subject area course of study that should be undertaken well.

Algebra II

Once the students are sound with Algebra I constructs, Algebra II can be taken up for expanding the spectrum of this fabulous segment of mathematics. There are two aspects of Algebra II; stressing more on the topics learned in Algebra I and foundation to new constructs. When it comes to the new introductions, adding and subtracting matrices, quadratic functions, solving exponential equations, probability and statistics are noteworthy.
At this level, the subjects are more focused on the depth of mathematical concepts rather than the coverage of many topics.

College Algebra

This is one of the most important degrees of learning Algebra with nearly no new topic presented. I assume it is rather humorous, but this is what mathematics is. Do you know why mathematics is called the queen of all scientific disciplines ? That’s because of the unpredictable nature of mathematics!

Help!!!

Algebra has the most varied methods and tools available for getting help. The first and the foremost important source is an Algebra tutor from whom you can get help and aid.
In addition to books, pupils should never undervalue the use of Algebra software package that is particularly designed to solve algebraic problems with illustrative steps. This software program really contributes insight in to Algebraic procedures of solving equations , by allowing students to simply watch and learn through exercises.