Maksim Litvinov And Soviet Foreign Policy During The 1930s Essay

Maksim Litvinov And Soviet Foreign Policy During The 1930s - Essay Example When the party separated into two factions, he joined the Bolsheviks faction and formed a strong bond with several party members; one of these was Joseph Stalin (Roberts, 1953). Subsequently, Litvinov spent the next fifteen years journeyed west Europe on varying tasks to instill and strengthen the Bolshevik ideology. He adopted many guises and aliases to help him steer clear of the police. Among his errands were smuggling guns to aid revolutionaries in Russia. He was arrested in Paris in 1907 after a bank heist masterminded by Stalin. Though many of his attempts to help the cause were unsuccessful, hid unwavering and constant labors made him a hero in the eyes of his comrades (Roberts, 1953). After the 1917 Bolshevik Revolution concluded, Litvinov campaigned the cause in Britain but was expulsed because of the British discontent over the treatment of compatriot Bruce Lockhart in Moscow. In addition, he was also evicted from Britain because of his pacifist beliefs. After returning to Moscow, he was given the position of Commissariat of Foreign Affairs. He handled many significant and high-profile assignments for his government, notably bringing the Soviet-Estonian clashes to a standstill and initiating talks with the President of the United States, Woodrow Wilson (Roberts, 1953). Four years after his assignation, he was promoted to deputy commissar of foreign affairs in 1921, under the eye of Georgi ChicherinLitvinov's relationship with Chicherin were turbulent, as they both held opposing views on policies, as well as having contrasting and strong personalities. In spite of this, Litvinov's career as a diplomat flourished under Chicherin, whom he served for almost a decade. In 1928, he initiated proposals focusing on total disarmament, instead of following standard formulas or ratios favored by the USSR. He later became the commissar when his superior, Chicherin, was forced to retire due to ill health (Roberts, 1953). CAREER HIGHLIGHTS AND ACHIEVEMENTS In many standards and principles, Litvinov deserved his place in Soviet history because of the degree of successes he garnered in the name of his country which also played and have a huge impact on other nations. When Hitler ascended to power through the powerhouse generated by his Nazi Party, Litvinov immediately recognized the significance of this event (Dunn, 1988). In 1933, he spoke of a need to change the direction of Soviet foreign policy to counteract the influence of Nazi Germany under Hitler. He managed these changes through the establishment of diplomatic contact with the United States and other Western powers. He was also instrumental in the institutionalization of the League of Nations, the predecessor of the United Nations. His conviction in resisting and containing fascism was well-known. In addition, his name was etched in the global spheres when he became the proponent of collective security (Dunn, 1988). TRADE AGREEMENTS FOR SOVIET FOREIGN POLICY AND GOVERNMENT RECOGNITION When Stalin came into power, he restructured USSR's policies towards foreign trade in order to abolish and curtail free and private trade practices. In anticipation of the irregular and what he deemed disruptive market forces that come with foreign trade, Stalin placed all activity and policies on foreign trade under state control. In addition, Stalin created monopolies on particular goods, with

Key Components of Interest Rate Risk and Approaches of Risk Management Essay

Key Components of Interest Rate Risk and Approaches of Risk Management for Chinese Banks - Essay Example This paper illustrates that the type of risk tends to affect the stock and bond market in different ways. However, as the interest rate risk impacts the bond market negatively, the investors shift their investment pattern from the bond market to the equity market, influencing the performance of this segment of the financial market. In this paper, the key components of interest rate risk will be analyzed thoroughly. The financial system of China is considered to be one of the highly regulated, involving highly integrated economic and monetary policies. Such regulations and integrations are reflected in the functioning of the banking sector of the country as well. Therefore, for the purpose of analysis, the risk management approaches of the banking sector of China will be critically evaluated. Non- alignments arises in the balance sheet and off-balance sheet items of the banking sectors. In case of fixed interest rate, such mismatches originate at the time of maturity of the financial instrument and in case of variable interest rates; the non-alignments arise at the time of revaluation of an asset, liabilities as well as off-balance sheet instruments. Scope and size of such temporal mismatches make it critical to forecasting changes in interest rate which in turn creates huge interest rate risk. Basis value risk arises out of the asset-liability mismatches. Many times, the correlation between the value of maturities and revaluation of asset- liabilities and their calculative values becomes highly negative because of the adaptation of interest rates. This kind of risk also changes the index rates used for pricing the liabilities and asset that does not really change in a concurrent way and originates huge amount of interest rate risk