Financial Levers Research Articles

Запрет заниматься иной оплачиваемой деятельностью как условие осуществления депутатских полномочий

The article considers the prohibition to engage in other paid activities as a condition for exercising deputy powers for deputies of the State Duma of the Federal Assembly of the Russian Federation in comparison with deputies of lower levels of government and foreign experience. The ban is compared with the institutions of the free parliamentary mandate and professionalism of parliamentary activities. This draws attention to the different national perceptions of these structures in individual countries. Attention is paid to the analysis of the law enforcement practice of legislative notifications on incompatibility of posts for deputies. It is proposed to abolish the ban on engaging in business activities for deputies of various levels, since under current legal regulation it does not ensure the absence of financial levers to influence the lawmaking process, however, it can be used for political purposes as a lever of oppression of opposition deputies, and also can reduce the attractiveness of a deputy mandate for successful entrepreneurs. The author criticizes the legal position of the Constitutional Court of the Russian Federation on the preservation of the immunity of a deputy deprived of his powers due to non-observance of restrictions on engaging in other types of paid activities.

The impact of transforming bank advisory services to borrowers on non-interest revenue generation

The challenges of revenue generation by banks are evident if one considers the accusations labelled against the banks of aggressive lending (Archaya & Naqvi, 2012), which basically centers on the pursuit of profits with minimum regard to risk management. If not read or if read in passing, loan terms can be used to destroy the reputation of banks when accusations of predatory loans surface. It is argued here that even if understood at the time of signing the acceptance of the loan, there is no guarantee that the terms are still top of mind of borrowers, especially those who borrow for a long term. Banks can use their advisory skills to periodically take borrowers through loan terms, confirm understanding, detect any wanton behaviors (WB) from borrowers’ financial activities that go against financial astuteness and may jeopardize repayment capabilities and offer advice on practices that are not counter to repayment capabilities. Banks can mitigate the challenges in interest income generation, particularly from a default point of view by periodically engaging borrowers to specifically advice on behavioral issues that manifest themselves in financial levers. Since borrowers stand to gain immeasurable value out of these engagements, banks can justifiably levy borrower advisory service fees (BASF) and wanton hazard fee (WHF). The authors show, through the application of the BASF and WHF, the potential income banks can generate. Using the BASF and WHF as sources of non-interest income, the potential benefit taking into account the credit loss as a function of BASF accruing to the bank is established.

Ensuring Financial Stability of Companies on the Basis of International Experience in Construction of Risks Maps, Internal Control and Audit

JEL Classification Codes: G10, G32, M1, M4. 1. Introduction Currently in terms of economic recession short-term priorities in financial activity of companies prevail over long-term. The research of Southern Federal District companies showed that in discussing strategy about 70% of managers focus on period from one to three years. Only 9% of companies have enough confidence in perspectives for business development to predict a strategy for 5-10 years or more. In course of survey 35% of managers of Southern Federal District companies noted that in 2015-2016 their companies faced serious risks and financial difficulties (Aksyonov, Sichev and Holina, 2016). In 2016 35% of responded executives out of 50 companies analyzed in course of research expect deterioration of financial and economic indicators. 16% expect their improvement. Majority of directors (64%) believe that continuation of Russian economy growth can be expected not earlier than 2017 (Aksyonov, Sichev and Holina, 2016). The list of main risks for Russian companies includes following: geopolitical instability, change in consumers' behavior, expensive loans as well as lack of qualified managerial human resources. Currently financial management implements tactical measures to prejudice of strategic interests of companies' development. In conditions of crisis most companies revised their strategies under influence of such factors as ruble devaluation, difficult access to capital (first of all credit resources due to lack of liquid pledge), reduction in oil prices and consequences of sectoral sanctions introduction from US and European Union with regard to Russian companies. Management of a company is connected with delegation of goals and tasks with which a manager faces (Thalassinos et al., 2013; Carstina et al., 2015). Concentration of financial levers (rewards and limitations) in manager's hands strengthens importance of these communications for company's sustainable development. Control action from top is understood at bottom as a signal related with surrounding circumstances and processes. In western culture of production high chances for a victory of strongest are provided thanks to functioning of uniform competitive field (level playing field), action of general for all rules (Shpengler, 1995; Hamid and Won Kie, 2016). According to A. V. Kuznetsov, the operating influence from above is perceived below as signal coordinated to surrounding circumstances and (Kuznetsov, 2015). To ensure financial stability companies must critically assess business processes and revise business models of development (Allegret et al., 2016; Grima et al., 2016). Main direction of activities in modern management system is cost optimization, restructuring of core business processes of financial management on basis of risk management programs, diversification of products and services. Management of company financial stability is connected with more flexibility of financial strategy of development and adaptability when it is important to provide business development with financial resources in related industries, e.g. construction and processing companies (Averina et al., 2016; Havlicek et al., 2013). Currently some Russian companies have stopped large investment projects. In order to ensure financial stability in conditions of increasing limiting factors Russian companies have started reformatting business processes, because they have not formed anti-crisis strategies of development as well as efficient business processes. Digital business transformation can be assigned to modern problems of modern system of company financial management. To ensure financial stability modern companies need to introduce new information technologies not only in production but also in risk assessment system. …

Population health and medicine: Policy and financial drivers.

The financial and policy levers of population health and potential opportunities for pharmacists are described. Three long-standing problems drive the focus on population health: (1) the United States suffers far worse population health outcomes compared with those of other developed nations that spend significantly less on healthcare, (2) the U.S. healthcare system's focus on "sick care" fails to address upstream prevention and population health improvement, and (3) financial incentives for healthcare delivery are poorly aligned with improvements in population health outcomes. The Patient Protection and Affordable Care Act of 2010 (ACA) was arguably the first major healthcare legislation since 1965 and had 3 main strategies for improving population health: expand health insurance coverage, control healthcare costs, and improve the healthcare delivery system. Federal and state legislation as well as Medicare and Medicaid financing strategies have designated mechanisms to reward advances in population outcomes since the passage of the ACA. States are responsible for many of the factors that affect population health, and a bipartisan effort that builds upon state and federal collaboration will likely be needed to implement the necessary health policy initiative. Population health issues affect productivity in the United States; conversely, improvements in population health may increase productivity, helping to offset the rising federal debt. Employers are in a position to improve population health and consequently help reduce the federal debt by addressing lifestyle, chronic disease, poverty, and inequality. National pharmacy organizations, regulatory bodies, and journal editors need to collectively agree to a threshold of quality and rigor for publication and endorsement. Knowledge of the policy and financial drivers of population health may both support pharmacists' efforts to improve population outcomes and identify opportunities for professional advancement.

Management Levers for Product Platforms

Platforming has become an important means of cost-sharing among industrial products. However, many firms face systemic downward pressure on commonality, with the result that many platforms realize less commonality than intended. Past research has hypothesized that divergence is the result of conflicting tensions between product customization/optimization and cost control. This article investigates the control and incentive levers available to platform managers to shape the behavior of the organization when divergence opportunities arise. Management levers are drawn from a series of 12 industrial case studies, stemming from investigations of the causes of divergences. These management levers are categorized as technical levers, financial levers, and organizational levers. This article illustrates each of the management levers with examples from the case studies.

FINANCIAL SUPPLY OF INNOVATION-ENVIRONMENTAL DEVELOPMENT OF AGRARIAN SECTOR

Urgency of the research. Ensuring stable economic development of Ukraine is possible only with the construction of a high-tech agrarian sector. Target setting. To ensure economic and environmental human needs, sources of financial resources should be identified and a redistribution system based on innovation should be formed. Actual scientific researches and issues analysis. Much attention to the issue of innovations is paid in the works of M. D. Babenko, O. Yu. Yermakov, O. D. Hudzynskyi, O. V. Oliinyk, H. Ye. Pavlova, P. T. Sabluk, N. M. Sirenko, O. H. Shpykuliak and others. Uninvestigated parts of general matters defining. The need for economic feasibility of innovation-environmental development cause the necessity to study the financial constituents. The research objective is to substantiate elements of the mechanism of financial support of innovation-environmental development of the agrarian sector. The statement of basic materials. The research has confirmed the expediency of identifying the financial resources' needs at the micro level, in order to implement the savings measures and the expanded reproduction of the agrarian natural resource potential, to determine the criteria for choosing alternative sources of funding of environmental programs and projects. Conclusions. Implementation of strategic directions of innovation-environmental development of the agrarian sector involves the formation of a financial security mechanism, which elements are defined to be forms and methods of provision; sources of security; financial instruments; financial levers; financial sanctions and incentives. The system of financial provision of the agrarian sector through the use of regulators, which stimulate the ecologization of production and transition to innovative technologies, is substantiated.

FINANCIAL MECHANISM OF PEOPLE’S SOCIAL PROTECTION SYSTEM IN UKRAINE

Introduction. Implementation of effective and acting policy of people’s social protection demands the creation of an appropriate financial mechanism of its realization that could be able to provide a significant welfare increasing of every citizen of Ukraine. Purpose. The purpose of the article is to research theoretical, methodological, organizational and practical aspects of functioning the financial mechanism of people’s social protection system in Ukraine and to develop recommendations for its improvement in terms of transformation of the national economy, considering the current socio-economic and military-political situation in the country. Results. The views of some authors to determine the nature and structure of the financial mechanism of people’s social protection system in Ukraine are analyzed and summarized. The author suggests his own definition of the concepts of “social protection”, “financial mechanism of people’s social protection system” and “financial support of people’s social protection”. The structure of the domestic financial mechanism of people’s social protection system that includes groups of four main elements (financial and organizational forms, financial methods, financial instruments and financial levers) are presented by the author. Conclusion. Improving the financial mechanism of PSPS in Ukraine there should be achieving an effective and mutual cooperation and interaction of financial mechanisms of structural components of the social protection system: social insurance, social support, social standards and guarantees of the state to its population.

The System Of The Treasury In Ukraine: Actuality And Prospects Of Development

An analysis of the current state of managing financial resources in the system of the Treasury showed that a number of methodological issues are not resolved. Not surprisingly the system requires an adequate solution. The introduction of the Treasury Single Account provided an opportunity to have information on the budget, which has financial levers of macroeconomic regulation, including putting into effect the alignment of potentially financial areas. The State Treasury has introduced changes in the institutional structure and legal relations between all participants of the budget process. Research has shown that free funds have increased to a great extent.

Theoretical and methodological principles of budget framework

Based on the scientific analysis of the theories and concepts developed by schools of financial thoughts, it is found that there is a high concern about a range of tools for government regulation, such as taxes, transfers, government expenditures, which are currently seen as elements of budget framework. The purpose of the study is to provide a scientific basis for the formation and functioning of budget framework as a system, its structure and properties; the subject of the research paper is to highlight theoretical and methodological principles for the formation and functioning of budget framework in relation to its impact on socio-economic development. The approaches to defining ‘budget framework’ introduced by domestic and foreign scholars are critically analyzed. Considering budget framework as part of state regulation of economy and taking into account its role in GDP distribution, budget framework is suggested to be viewed as a practical implementation of functions of the budget and a means of direct influence of state authorities and local self-government on socio-economic processes in order to ensure macroeconomic stability and improve social welfare. Through a systemic approach to the study of budget framework its components are identified. It is recommended to view them as a set of financial methods, forms, tools, and levers grouped in subsystems. As a result of their influence on distribution processes related to mobilization and utilization of budgetary funds, quantitative and qualitative changes take place in socio-economic processes and enhance socio-economic development and implementation of budget policy aimed at solving problems that arise. It is found that budget framework as a system is to be understood as a set of its components (subsystems – mechanisms for mobilization and utilization of budgetary funds; elements – financial methods, forms, tools, levers) and necessary links between them for achieving goals. The main features of budget framework seen as a system are distinguished and characterized: hierarchy, emergence, targeting, integrity, alternative ways of functioning and development, synergy, and functionality. It is substantiated that the formation and functioning of budget framework is impossible without legal, informational and organizational support.

Lessons for major system change: centralization of stroke services in two metropolitan areas of England.

ObjectivesOur aim was to identify the factors influencing the selection of a model of acute stroke service centralization to create fewer high-volume specialist units in two metropolitan areas of England (London and Greater Manchester). It considers the reasons why services were more fully centralized in London than in Greater Manchester.MethodsIn both areas, we analysed 316 documents and conducted 45 interviews with people leading transformation, service user organizations, providers and commissioners. Inductive and deductive analyses were used to compare the processes underpinning change in each area, with reference to propositions for achieving major system change taken from a realist review of the existing literature (the Best framework), which we critique and develop further.ResultsIn London, system leadership was used to overcome resistance to centralization and align stakeholders to implement a centralized service model. In Greater Manchester, programme leaders relied on achieving change by consensus and, lacking decision-making authority over providers, accommodated rather than challenged resistance by implementing a less radical transformation of services.ConclusionsA combination of system (top-down) and distributed (bottom-up) leadership is important in enabling change. System leadership provides the political authority required to coordinate stakeholders and to capitalize on clinical leadership by aligning it with transformation goals. Policy makers should examine how the structures of system authority, with performance management and financial levers, can be employed to coordinate transformation by aligning the disparate interests of providers and commissioners.

THE FINANCIAL MANAGEMENT AND REGIONAL DEVELOPMENT

The main objective of the study is to examine the role that financial management plays in ensuring regional development. This is because the crisis, economic globalisation, the increasing external growth of companies and the institutionalisation of the autonomy of local communities have fuelled the interest in identifying alternatives to local and thereby regional development. The targeted operational objectives were: to define the preliminary coordinates of regional development; to identify the role of private and public financial management in supporting regional development; and to present the financing framework of the Siret-Prut-Nistru Euroregion. The main financial levers with a direct impact on regional economic development there are: tax incentives; using EU financing programmes; leverage based on ownership of buildings and land; business incubators, etc. The study suggests that financial management (both public and private) plays an important role in the development of the Euroregion, with wide-ranging present (in the post-crisis) as well as future implications.

The medication research partnership

s / Drug and Alcohol Dependence 140 (2014) e86–e168 e139 Financial support: Supported by NIDA research grants R01DA024678 and R01DA031160. http://dx.doi.org/10.1016/j.drugalcdep.2014.02.393 The medication research partnership Dennis McCarty1, R. Croff1, M. Chalk2, K. Alanis-Hirsch2, J. Kemp2, J. Ford3, K. Johnson3, L. Schmidt4 1 Oregon Health & Science University, Portland, OR, United States 2 Treatment Research Institute, Philadelphia, PA, United States 3 NIATx, Uuniversity of Wisconsin, Madison, WI, United States 4 UC San Francisco, San Francisco, CA, United States Aims: The Medication Research Partnership seeks to (a) accelerate medication-assisted treatment (MAT) for alcohol and opioid disorders, (b)monitorhealth careutilizationandcost, and (c) assess barriers and facilitators to enhance the use of medication to treat alcohol and drug use disorders. The partnership includes a commercial health plan and 9 addiction treatment centers contracting with the health plan. Methods: Thepartnershipuses a systemschangemodel emphasizinguseof financial, regulatory, operational, inter-organizational, and customer impact levers, to implement organizational and system change projects that increase access to and use of medication-assisted treatment. Results: Two treatment centers that streamlined intake processes reported a 52% increase in patients receiving medication and a 13% improvement in referrals from detox to outpatient. Two sites established criteria to assess patient appropriateness for MAT. Four sites developed medication treatment protocols. One site sought approval as an opioid treatment program. A second site increased patient adoption of extended-release naltrexone and are up to 2.5 injections per month. A third site increased the number and percent of patients prescribed extended-release naltrexone. The fourth site saw increased patient resistance to buprenorphine and increased interest in extended-release naltrexone. One site implemented physician training onMAT and increased the number of patients prescribed and receiving alcohol medications by 23%. The health plan provided case management assistance for patients using medication and encouraged treatment centers to prescribe medications. Conclusions:Organizational changeandsystemschange strategies can enhance the adoption of medication for treatment of alcohol and opioid dependence. Financial support: An award (R01 DA029716) from the National Institute on Drug Abuse supported the study. http://dx.doi.org/10.1016/j.drugalcdep.2014.02.394 Cost-effectiveness analysis of a randomized trial of recovery management checkups for adults with chronic substance use disorders K.E. McCollister1, M.T. French1,2, D.M. Freitas3, Michael L. Dennis4, C.K. Scott4, R.R. Funk4 1 University of Miami, Miami, FL, United States 2 University of Miami, Coral Gables, FL, United States 3 New York University, New York, NY, United States 4 Chestnut Health System, Normal & Chicago, IL,

Cost-effectiveness analysis of a randomized trial of recovery management checkups for adults with chronic substance use disorders

s / Drug and Alcohol Dependence 140 (2014) e86–e168 e139 Financial support: Supported by NIDA research grants R01DA024678 and R01DA031160. http://dx.doi.org/10.1016/j.drugalcdep.2014.02.393 The medication research partnership Dennis McCarty1, R. Croff1, M. Chalk2, K. Alanis-Hirsch2, J. Kemp2, J. Ford3, K. Johnson3, L. Schmidt4 1 Oregon Health & Science University, Portland, OR, United States 2 Treatment Research Institute, Philadelphia, PA, United States 3 NIATx, Uuniversity of Wisconsin, Madison, WI, United States 4 UC San Francisco, San Francisco, CA, United States Aims: The Medication Research Partnership seeks to (a) accelerate medication-assisted treatment (MAT) for alcohol and opioid disorders, (b)monitorhealth careutilizationandcost, and (c) assess barriers and facilitators to enhance the use of medication to treat alcohol and drug use disorders. The partnership includes a commercial health plan and 9 addiction treatment centers contracting with the health plan. Methods: Thepartnershipuses a systemschangemodel emphasizinguseof financial, regulatory, operational, inter-organizational, and customer impact levers, to implement organizational and system change projects that increase access to and use of medication-assisted treatment. Results: Two treatment centers that streamlined intake processes reported a 52% increase in patients receiving medication and a 13% improvement in referrals from detox to outpatient. Two sites established criteria to assess patient appropriateness for MAT. Four sites developed medication treatment protocols. One site sought approval as an opioid treatment program. A second site increased patient adoption of extended-release naltrexone and are up to 2.5 injections per month. A third site increased the number and percent of patients prescribed extended-release naltrexone. The fourth site saw increased patient resistance to buprenorphine and increased interest in extended-release naltrexone. One site implemented physician training onMAT and increased the number of patients prescribed and receiving alcohol medications by 23%. The health plan provided case management assistance for patients using medication and encouraged treatment centers to prescribe medications. Conclusions:Organizational changeandsystemschange strategies can enhance the adoption of medication for treatment of alcohol and opioid dependence. Financial support: An award (R01 DA029716) from the National Institute on Drug Abuse supported the study. http://dx.doi.org/10.1016/j.drugalcdep.2014.02.394 Cost-effectiveness analysis of a randomized trial of recovery management checkups for adults with chronic substance use disorders K.E. McCollister1, M.T. French1,2, D.M. Freitas3, Michael L. Dennis4, C.K. Scott4, R.R. Funk4 1 University of Miami, Miami, FL, United States 2 University of Miami, Coral Gables, FL, United States 3 New York University, New York, NY, United States 4 Chestnut Health System, Normal & Chicago, IL,

Financial Levers in Relations Between the Agrarian Enterprises of the Ukrainian Economics

The article highlights the problems of the financial levers influence on the formation of effective organizational and economic interrelations between the agrarian enterprises of the Ukrainian economics. The approaches to the problem solving are substantiated.

Understanding Health Care as a Complex System

As the United States Embarks on health care reform, policy makers speak of using a variety of levers to control the health care system and its accelerating costs. These levers include a variety of regulations that are enforced through surveys, certifications, payments, and penalties. However, these mechanical approaches often lead to unintended consequences. This is due to the enormous complexity of the health care system—both in lay terms by its complicated design and in scientific terms by its nonlinear, dynamic, and unpredictable nature. To help guide future policies and avoid the unanticipated consequences of regulation, policy makers and physicians need to understand health care as a complex system and apply the principles of complexity science to achieve its goals. In contrast to mechanical systems in which component parts interact linearly to produce a predictable output, the components of complex systems interact nonlinearly over multiple scales and produce unexpected results. The output of a mechanical system can be controlled by manipulating each of its parts, while the output of a complex system is dynamic, behaving differently according to its initial conditions and feedback. For example, the health care system comprises networks of components (hospitals, clinics, nursing homes, rehabilitation units, patient homes, families, and patients) that interact nonlinearly on different scales (the patient, family, medical center, and government), and often produce unintended consequences (adverse drug reactions, nosocomial infections, rehospitalizations, and functional decline). As more regulations are created to control the behavior of a complex system, the more the system may deviate from a desired outcome.1 Commenting on the complexity of the Australian health care system, Sturmberg et al2 wrote that the prevailing trends to use disease protocols, financial levers, and siloed programs to manage the health care system are fatally flawed and will lead to unintended consequences. For example, pay-for-performance and value-based payment models that aim to improve hospital care at lower cost may encourage overly aggressive treatment without concern for life expectancy or adverse effects. Contrary to expectation, these models have had no effect on mortality3 or Medicare spending.4 Similarly, clinical practice guidelines intended to improve quality of care and reduce health care variations have not reduced socioeconomic disparities in the treatment of diabetes5 and could increase the medication costs of patients with multiple chronic conditions.6 If health care is viewed as a complex rather than a mechanical system, several of its intrinsic properties can be exploited to influence its dynamic behavior and guide it in a more favorable direction. These properties include nonlinear interactions of component parts, emergent, self-organized behavior, and the dependence on simple rules.

D-CAPM and RD-CAPM in Return Anticipation at Tehran Stock Exchange

From longtime ago, capital market has been engaged in decision-making about providing an optimumhigh-quality portfolio. Investors were always seeking a logical data base for correct dicision-making about shares.In recent years, Capital Assets Pricing Models (CAPM) have been broadly used to estimate securities returnlogically. In this research, anticipation power of Downside CAPM (D-CAPM) and Revised Downside CAPM(RD-CAPM) models to estimate destination year return (DYR) was examined. D-CAPM is a developed type ofCAPM that anticipates DYR according to past data and systematic risks of company. In contrast, RD-CAPMadditionally applies non-systematic risk in frame of financial and operational levers in its mathematical structureto anticipate DYR more precisely. Finally, we compare these two models in Tehran Stock Exchange for a periodof eight years (2001-2009) to anticipate return of companies in destination year.

Coercive Diplomacy and the New Financial Levers: Evaluating the Intended and Unintended Consequences of Financial Sanctions

One of the most promising emerging levers of coercive statecraft is the ‘reputational’ financial sanction. These sanctions, recently employed by the United States against Iranian and North Korean banks, aim to chill investment into these countries by threatening the financial reputations of legitimate institutions in an interconnected world. Yet much about these sanctions remain unknown. What are the causal mechanisms by which they operate? How effective are they? Do they have blowback effects? Using interviews with senior U.S. and European officials, this research systematically addresses these issues with a view to both ground these new sanctions in the traditional debates over the efficacy of such economic statecraft and provide policymakers a better understanding of how the United States and other leading states can use these new levers of coercive statecraft. We find that these sanctions, under a more limited set of circumstances, can be more effective than either comprehensive or targeted sanctions. Yet even under these ideal circumstances this form of coercive pressure can become problematically disaggregated from diplomatic strategies.

The Impact of Financial Aid on College GPA at Three Flagship Public Institutions

Academic achievement in higher education is an important current policy issue because institutions are under public pressure to justify state subsidies and rising tuitions with demonstrable gains in student learning. This article uses data from three flagship public universities to examine the effects of financial aid on first- through fourth-year college grade point average. The findings indicate that need-based aid and merit-based aid both have positive effects throughout college, and thus colleges may be able to use financial policy levers to increase academic achievement. However, since the effect of merit aid is larger than that of need-based aid, institutions may have incentives to reallocate aid and admissions spots from needy to merit students unless appropriate safeguards are adopted.

Bridging the gap: Delivering infrastructure investment in Britain's cities

High-quality infrastructure is a critical component of strong economic performance. Yet the UK has underinvested in its infrastructure for decades — especially transport. The Government has started to turn this around, but big problems persist. Britain's cities still face a major infrastructure funding gap and a delivery system that is both over-centralised and overly complex. This policy note suggests three principal actions to central and local government: *lpar;1) find innovative and effective new ways of drawing private sector finance into infrastructure investment; (2) give local leaders the financial levers required to address their infrastructure needs; and (3) simplify the UK's infrastructure delivery system.

The Impact of the USSR on Lithuania's Domestic Policy and Its International Orientation in the Third Decade of the Twentieth Century

This article investigates links between domestic and foreign policy, topics which are usually discussed rather than analyzed in any detail. The case of the USSR and Lithuania is taken as an historical example of the impact of the external factor on domestic policy, and an attempt is made to elucidate how the Soviets tried to influence and correct Lithuania's policy in the inter-war period by providing financial assistance to parties and their press. In this way they sought to set Lithuania against Poland and fuel the conflict between them, so that they would not become reconciled, would not create the so-called Baltic Union with Latvia, Estonia and Finland and would not orient themselves to the West. Using financial and other levers of secret policy, the Soviets contributed significantly to pushing the pro-Western Christian Democratic Party away from power in Lithuania so that the Nationalists, who sought to establish closer relations with the USSR, came to be established. The overseas financing of parties which remained unknown to the public distorted the political process of Lithuania and hindered the maturing of social awareness.