The Influence of Financial Sphere on Democracy

Nowadays the question of finance has become the epicenter of public interest, the main topic of discussion, which sounds in offices, on the street, in the family, in all works of art. Money solves all social and personal problems. This is a symbol of social justice and freedom. To tell the truth finances build institution of democracy, they reject all differences between people, reject the evaluation of a person through his individual, personal qualities.

Almost all countries of the modern world came under the influence of any democratic structure. Liberal democracy was established in countries such as the United States, Britain, France and Canada, while in the Soviet Union, China, Vietnam and Eastern Europe there was a socialist democracy that was the dominant system. The distressful situation in a liberal-democratic (or simply, so-called, democratic) system shows that this system, based on “Western values”, is not entirely blameless, as it is presented by its ideologists.

But what is the reason? Why can’t democracy please everyone? And why those “everyone” are generally the most wealthy ?

Actually in these countries democracy arose because of conflicts between the government and taxpayers. Taxpayers wanted to keep under control the expenses of monarchs, not to allow excessive extravagance. Democracy is a more or less acceptable mode of government where voters delegate parliamentarians the right to share their money. In a financial sense, a democratic state is not even a limited liability company, which is responsible for its obligations in terms of the authorized capital. Nevertheless, from an economic point of view, the state is a corporation for the production of special goods – public goods.

With money, democracy destroys itself after money has destroyed democratic spirit. But the spirit is traditional, as it was formed, a new spirituality arose, the infrastructure of which became and the money became established.


Online trading : this Nightmare dissembled in Fairytale

Before we begin this article, the entire building above is high-tech office in Herzliya Pituach, Israel, used at 80+% by online trading call centers.

Yeah, many miracles born there… But no one was realized, just dust in the wind

What’s that ?

Binary options allow a trader to bet on a particular event or scenario, knowing in advance the risk and profit parameters. Actually this industry owns millions of dollars. It uses thousands of people and usually deceives naive potential investors all over the world with a variety of corruption methods.



Different companies try to present binary options as the easiest and the most profitable way to earn. They promise that if somebody works in this market, he can have a stable income, which depends only on him. A lot of young people dream about job that provides high salary, good working conditions and career growth. And this is much more promising than being a low-paid specialist.

If you choose to trade binary options, you can become a free and independent person who receives a decent reward for his work, that’s why the youth consider binary options companies to be the best option.

At least it’s the dream which affiliate sites and brokers as IQ Option or ExpertOption try to sell you


But who rule this amoral scam ?

As soon as a person starts looking for a job and posts his/her resume on the Internet, he/she gets dozens of calls from binary options companies every day.

An ad for binary options firm Prime Sales featuring a still from ‘The Wolves of Wall Street” (Screenshot)

“The managers of the companies try to describe this job in the best light, as if it was a real fairytale. Their main aim is to involve you in this business. Very often they offer eye-watering salary, some tips, free food and coffee at work.”

The managers assure that all you need to do is just to call different people from different countries and incline them to invest the necessary amount of money (at least 100-250 dollars) into new financial scheme, which is called binary options.

And then ? It’s too late : for employees as for “investors”.

The clients of this financial scheme have to predict whether the currency would rise or fall in international markets during a certain period of time. If they predict correctly, they can earn up to 80% of the amount of the money they have put down. If they are wrong – they lose the entire sum. It’s important to admit that it’s not so simple. Moreover, it shouldn’t be assumed that it’s enough to start working, relying only on luck, and two days later it’s possible to become a millionaire. No intelligent person will ever believe this.

The managers and workers of binary options companies have to create the fake biography and present themselves as highly trained professionals with great experience in the trading field. Usually new employees have their own supervisors that teaches them how to communicate with clients, how to answer objections, how to keep them on the phone, etc.

But usually such activity is illegal, as the workers try to deceive their clients and to do everything possible with an eye on customers make unsuccessful predictions and lose their money.


Constitutional Rights: Students against Parliament

Throngs of students protested outside the South African Parliament in Cape Town on a sunny afternoon in February 2011. Wearing green T-shirts and carrying handscrawled signs, they set up an outdoor classroom complete with desks and chairs.

The students, members of Atlantic grantee Equal Education, were protesting against the deplorable conditions of nearly 400 schools in the Eastern Cape constructed from mud and many more that lack running water and toilets. The students demanded government action to ensure every child’s right to education by guaranteeing a safe, clean learning environment.

All of them referred to the Constitution, as rights and democracy are at the core of Atlantic’s health and human rights objectives. The foundation has supported grantees working to uphold the constitution and defend democracy since its work began in the country in the early 1990s.

It exist a lot of cases when grantees working won a suit against the parliament. The most prominent situations is when the South African National Editors Forum and the Right2Know Campaign pressured the government to abandon plans for a Media Appeals Tribunal, which would have compromised the independence of the press.

And, the students’ protest brought results. The Constitutional Court ordered the Eastern Cape government to replace mud schools with proper structures, in response to the Legal Resources Centre’s litigation, with support from Equal Education. The government subsequently made ZAR8.2 billion ($1 billion) available for school improvements. Building on this victory, Equal Education continues to seek to ensure that all South Africans have access to a quality education.

Finance and social science : a nice mix ?

What is the role of finance in socio economics? And what relationships can be observed between such notions as “finance” and “democracy”? According to this article, there are four basic principles of finance:

​ The Orthodox Classical Liberal Interpretation of Smith;

​ Marx’s ‘Capital’, Philosophy and Political Economy;

​ Heterodox, drawing on Keynes and Minsky;

​ “Active society” (societal) by Polanyi.

These principles are characterized in accordance with 5 aspects:

1.​ conceptualization of finance;

2.​ correlation between finance and the economy;

3.​ correlation between finance and state;

4.​ correlation between finance and society;

5.​ the nature of the social system.

From these aspects a new structure for the analysis of finances in society is build. It’s used to analyze the correlation between finance and democracy and the prospects for financial regulation.