abstract en rk-magazine web preview ridotta

7/26/2019 Abstract en RK-magazine Web Preview Ridotta

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TO THE PARTICIPANTS,

ORGANIZERS, AND GUESTSOF THE 20TH ST. PETERSBURGINTERNATIONAL ECONOMICFORUM

Dear colleagues,

It is my pleasure to welcome the participants and guests of the St. PetersburgInternational Economic Forum, which this year is marking its 20th anniversar y.

Year after year, the Forums reputation and influence continue to grow. The meetings,roundtables, and panel discussions held at the event focus on the most pressing and topi-cal issues of the day. For the politicians, business executives, and public figures from Russiaand around the world, the event offers a platform for sharing best practices and propos-ing groundbreaking solutions to a wide range of issues facing the economy, finance, trade,and investment.

The theme of this years Forum is Capitalizing on the New Global Economic Reality,the relevance of which is clearly evident. The global economy is increasingly impactedby political and social factors. The challenges facing the global community demand con-certed action aimed at achieving sustainable and balanced growth. It is vital that we worktogether in our search for the additional drivers of development. We must more fully makeuse of the industrial, scientific, technological, and innovative potential of our nations,and also the potential of international integration structures. We must react more swiftlyto the shifting demands of the market and to the looming transformation of the globaltechnological landscape.

Forum guests and participants can expect a far-reaching and comprehensive program,which includes the Business 20 Forum, BRICS Business Forum, and SCO Business Forum,as well as the meetings between the official delegations from Russia, Kazakhstan, Italy,and other countries. Among the other events scheduled are a special Valdai Club ses-sion, the Russian Small and Medium-Sized Enterprises Forum, and a conference focusedexclusively on the Arctic, thereby marking another f irst for the Forum. Conversely, the tra-ditional Global Energy Award and the Development Award ceremonies will also be heldduring the Forum, along with the business summit for heads of the worlds largest energyproducers.

I firmly believe that the recommendations and agreements drawn up during the Forumwill help drive economic recovery in Russia and around the world, promote internationalcooperation based on egalitarian principles across a wide range of spheres, and give riseto mutually beneficial long-term projects.

Allow me to wish you a productive and successful event,

Vladimir Putin


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VALENTINAMATVIENKOChairman of the Federation Councilof the Russian Federation

There are two kinds of cities: the ones you easily settledown in and the cities with their own secret codes andunique traits, known only to those let inside. Petersburgis a city of the second kind.

In this city you can enjoy a different kind of feeling,and it cannot but astonish you. I clearly understand this,

as I remember the emotions I felt when I came herefor the first time. The nights here are as light as the day-time almost three months out of the year. Dont for-get the mystery of Petersburgs famous bridges goingup at nights. How beautiful and fascinating it is! I havenever seen anything else like this anywhere in the world.Getting from one part of the city to the other becomesunreal and only citizens of Saint Petersburg knowthe meaning of the phrase to catch bridges.

Saint Petersburg is a city with a high concentra-tion of thoughts, it is full of literature. There is a term:a Petersburg text. In this city you come across some-thing mentioned in literary works almost everywhere.Over there is the Bronze Horseman just about to gallopaway. Over here are the places where you start to com-prehend Dostoyevsky better. As for the atmosphere,Petersburg is pretty much the same as Gogol depicted itin his Petersburg Tales.

This city is very conservative. Petersburg citizenshold onto their history and this is quite understandable.Enough to say that there is no Petersburg family thatdidnt suffer severe losses during the time of the Siegeof Leningrad. This memory unites them and sets themapart. It is hard to get closer to this city without havinglived through its history. You can feel like a moscovitehaving lived only a year in Moscow, but every Petersburgcitizen ought to have his or her own local genealogy.

SAINT PETERSBURG IS THE CITYOF POETS, AND IT IS BUILT LIKE A POEM

* Viktor Shklovsky

LIFELONG PETERSBURG


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I have known Saint Petersburg in the 60s, 70s, 90s,and 2000s. During my tenure as the governor of SaintPetersburg, we worked hard to bring our city intothe 21st century with dignity, to make our city developand change, yet not lose its historical look.

Having been built as a capital, literally on the bonesof people, but having absorbed all the superlativesof European architectural excellence, having becomeone of the most marvelous cities in the world, havingpassed through floods, revolutions, the siege, the lossof capital city status, and numerously having changedits names, Saint Petersburg today is the very Windowto Europe as conceived by Peter the Great. In other

words, it is a global integration project, the intellectualcenter, and the platform for exchanging experiencesbetween representatives of the major global powers.

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Chairman of the Federation Councilof the Russian Federation

VALENTINA MATVIENKO

PETERSBURG TODAY ISTHE VERY WINDOWTO EUROPE AS CONCEIVEDBY PETER THE GREAT


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KIRILLANDROSOVChairman, Aeroflot Russian Airlinesand Managing Partner at Altera Capital LLC

The St. Petersburg International Economic Forum willbe held for the 20th time. Today, looking back at the his-tory of the leading national platform of communicationwith business leaders, we can identify the three stagesof its development. Each of those stages saw the refine-ment of the Forums agenda, the selection of optimal for-mats, and the improvement of its infrastructure.

The first nine events were held in the Tauride Palacewhere the Interparliamentary Assembly of MemberNations of the Commonwealth of Independent States hasresided in the post-Soviet years. The Palace interiors haveremained almost intact since the sessions of the StateDuma of the Russian Empire: the same rich decorum,the same antique conference room with the presid-ium a setting traditional for high-profile events butill adapted for lively disputes, let alone for brainstorm-ing sessions. However, an important result of the firststage is the fact that the Forum has found its identityand, most importantly, became a regular event. It did notsuffer the fate of numerous international platforms thatburn out quickly and couldnt get over the roaring 90sto the new century.

The next stage in the history of the Forum startedin 2005, when it was first attended by the Presidentof Russia Vladimir Putin. Since then, the Forum has beenheld under the auspices of the President the headof the Russian state attends each event and hasin fact become the number one event in the countryseconomic life. The format has significantly changedas well: it has truly become an international platformfor discussing the key issues on Russian and globalagenda. The monologue has given way to heated dis-putes and fierce debate. The new rule has emerged:after each Forum a summary of the main ideas voicedat its panel sessions is sent to the presidential adminis-tration and the government to be carefully studied andapplied in the economic policy management. Signingimportant international agreements at the Forum is nowa standard practice, and the representatives of Russianand foreign companies have a unique opportunityof access to the key Russian decision makers. The rhythmof the event has changed as well, becoming more con-centrated and intense: instead of the former full weekthe Forums session has shrunk to two days, one of themdedicated to Russian economic issues and the other to emerging markets, primarily to the BRICS countries.Such division of subjects has been strictly maintained sofar: one day is Russian, the other day is international, andthe order may vary.

BOTH THE PROGRAMOF THE 20TH FORUM ANDTHE SPACE OF ITS NEW SITE AREEXCEPTIONALLY ERGONOMIC,BUT IN ORDER TO FEEL THATTHE PARTICIPANTS WILLHAVE TO SET THEIR MINDS ON

AN EXTREMELY TIGHT ANDMOBILIZING SCHEDULE

FROM THE PAST TO THE FUTURE


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The Forums transformation into a presidential-level event has not been limited to the compulsoryofficial appearance of the President himself at a ple-nary session but has brought the planning of the eventto a whole new level. Creating the Forums agenda isnow the responsibility of the presidential administrationand the economic bloc of the government. The levelof representation and the competency of the Forumsparticipants has noticeably increased and the publicattention to its program and practical results arrange-ments achieved and agreements concluded has risensignificantly. Finally, the major novelty of the second

stage of the Forums existence is its commercialization:participation is fee-based and its organization expensesare partially covered by sponsorships. Furthermore,in 2006 the Forum received a new site the LenexpoExhibition Complex, where a dedicated Congress Hallwas constructed in 2007, and the rental proceeds fromthis exhibition area are taken into account while plan-ning the Forums budget.

This year will see the new stage in the Forums life.Its moving to a new site the Expoforum Conventionand Exhibition Centre. Unlike the Lenexpo Complex,the Expoforum is at a considerable distance fromSt. Petersburg city centre, thus undeniably makingthe event more dynamic and intense as its participants

will be bound to arrive for the whole day and take fulladvantage of the panels operating hours. The Forumsprogram was prepared with regard to this detail asthe concentration of the events in both days will leaveno chance to take a relaxed approach and pursue privateinterests by attending a minimum number of panels andusing the remaining time at own discretion somewherein the city centre. Both the program of the 20th Forumand the space of its new site are exceptionally ergonomic,but in order to feel that the participants will have to settheir minds on an extremely tight and mobilizing sched-ule. In this regard, the remoteness of the Expoforum

from the historical centre of St. Petersburg is a positivefactor. The Expoforum is, however, literally just outsidethe Pulkovo Airport which is going to accept the mainflow of the Forums participants. And as is the case notonly in Russia but in other rapidly developing countries,locating a site of a significant event in a new area awayfrom the existing networks serves the purpose of devel-oping the local cluster. Heres another reason for holdingthe anniversary event in the Expoforum.

I do believe that the hosts of the Forum have donetheir utmost to ensure the promotion of the Forum andto allow for the 20th session to set a new, far-reachingtarget for the event. The rest is up to the participants.

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SERGEYVYAZALOVDirector General, Ministry of Foreign Affairsof the Russian Federation

A new organization which is calledRoscongress has sprung. What should it be focus-ing on?

We are the heirs of the Saint Petersburg EconomicForum. But Roscongress has much wider agenda whichhavent been fully shaped yet. The organization that

ran the Saint Petersburg Economic Forum has beengreat at solving logistical issues. However, the contentis a more complicated thing. So far Roscongress workswith the content mainly as a consultant. We assembleour experts, all the ministries and departments, whichhave something to do with this topic, individual experts.

This is a huge work that still requires improvement but,nevertheless, what we have done for the first time lastyear was a success. Now we should create such a finemachine that would work as a clock in all areas. Sucha system that would enable people, who have some-thing to offer, to be interested in working with us. Weneed to create a laboratory that would be able to studyin depth the problems of the world, Russian economicproblems, as well as humanitarian problems. Only thenwe can become one of the leading platforms for dis-cussions. This is the most complicated thing that needsto be done.

The world is entering another era. What isexpected from Russia? Its interesting to understandhow this laboratory could drive the global agenda.

I understand the global nature of these changesand I also understand that we should lead the conver-sation and offer topics which would be interestingfor everyone. Today the number of people who cometo the Forum is quite large and they are not just poli-ticians. Im glad that, for the recent years, a lot of busi-ness people have been coming. Last year Elon Muskattended the Saint Petersburg Forum because therewas a huge number of potential partners for his projectsfrom China, Singapore, the USA there. He came to meetthem. Because many people, who really make financial,economic and political decisions attend this event. Itsimportant to make sure that the next date of the SaintPetersburg Forums is added on their schedule, as it isthe case of the Davos Forum. It s probably right that notonly Russian issues should be discussed. Continually,weve been raising such serious matters as the economiccrisis. Our agenda has expanded. The problem is thatthere are so many topics, round tables and people thatthere is not enough time. It is this problem that I dontunderstand how to solve yet.

WE SHOULD LEADTHE CONVERSATION ANDOFFER TOPICS WHICHWOULD BE INTERESTING

FOR EVERYONE

The Davos Forum, for example, holds paral-lel events, has special groups dealing with variousissues.

They regard themselves as a commercial structurethat earns money, and do it quite successfully. But wedont have such a goal. We try to be a place where peo-

ple come to listen to us. Especially now, during the timeof the sanctions. I ve read telegrams, in which businesseswere advised not to come. But people do come, whichmeans that this communication is important for themtoo. Because the Forum is open. Let commercial thingsstay commercial, but people are attracted by our open-ness. Weve never concealed anything. Weve never beenscared of being overheard by others.

Before you joined the Ministry of ForeignAffairs what stage of your life do you considerthe most important from the point of view of con-centration of experience?

For me, the most difficult time was in the mid-dle of the 1990s when I left the Mayors office andbecame the General Director of Lenenergo. The firstthing that complicated my work was corruption. I evenhad to deal with personal protection as it was quite dan-gerous. Secondly, I had to break the system that existedat the time. And I clearly understood that I wouldnt beable to do it with the people who were there at the time. Igathered young guys like Oleg Belozyorov, and, togetherwith this team, we sorted out the situation. Within twoyears we turned this lossmaking company around. Andthis was a good result for all, including the foreignerswho were among our shareholders. Within such a shortperiod of time, under such complicated conditions, wecreated a good company. Im thankful to the peoplewhom I had to work with. Now all of them are prosper-ous businessmen and successful government officials,but the most important is that they are human beingsin the best sense of the word.

The importance of the human fac-tor in the world is increasing. What is the manof the future?

My elder son is 34. Do you know why I love thisgeneration? Because for him what is bad is always bad.And what is good is good. As far as my generation, we canbe wishy-washy. I believe the young generation has clearattitudes towards all issues. These people are not inclinedto let bad things stand. This relates to the politics too.


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The authorities will have to convince people, politi-cians will have to be very attentive to peoples opinions.

The peoples engagement is growing. Even now youngpeople arent indifferent to whether there will be a roadgate in their courtyard or if somebody drives on theirlawn. They are different. We could put up with all thisbut they are looking for fairness. And if they are heard bythe authorities the benefit will be mutual. Well all gain

from this.

And what should your generation pass overto the next generation?

I didnt want to move to Moscow. And the firstpeople who offered me a job were Germans. I wentto Germany and understood that people should lovetheir Motherland. Maybe it sounds a bit lofty, but withage a person understands how much he is connectedwith the place where he was born, where he lives. Youngpeople should love and value more what theyve beengiven. Unfortunately, one often understands this laterin life. Now people from provinces have started com-ing to Moscow and Saint Petersburg. They are striving

to get a good education. They try to enter the best uni-versities. Its a very positive sign for all of us. It meansthat in the future well be stronger. We just need moreof the people like these. And unfortunately, its very dif-ficult to select the best people. We need some system

to get the best people to come. Looking at these youngpeople I am getting convinced that all these prepara-tions will pay off greatly! But we should feel as one team.

Thats what we are missing playing as a team.

How, in your view, a strategic dialoguebetween the authorities and the people could takeplace?

This is the most important thing. We have trieda few times to use the Forums site to listen to youngpeople. We wanted to create a place where young peo-ple will talk about their problems. About what disturbsthem, what they are concerned with most of all. Not onlywith what they see every day but also with what they seein general. And I believe that our organization can beused successfully for this purpose.

There is a club of young leaders withinthe Davos forum structure. Maybe, we should thinkabout something like this too?

Its quite a good idea. It should be developed fur-

ther. Because there are many active people around. Withthem you cant do something only once and then say:You know, guys, well see each other again in half a year.

They should be heard. Somebody should be dealingwith them closely and offering them something serious.

Director General, Ministry of Foreign Affairsof the Russian Federation

SERGEY VYAZALOV

THE MOST PROPER THING TO DO ISTO COMBINE A LIFE EXPERIENCEOF THE OLD AGE WITH THE ENERGYOF THE YOUNG* George Bernard Shaw


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MATVIENKOTERRITORY OF PARALLEL

COEXISTENCE OF THE PAST AN

THE FUTURE

MEGAPOPULATION

CONSTRUCTION AS THE

MAIN SOCIAL TECHNOLOGY

OF THE XXI CENTURY

ENTRANCE INTO A RELEVANT

FUTURE

RUSSIAN MANDALA

RESOURCES AND HEADS

TIME CHECK AS A SHOW

OF COMPETENCIES

FROM PASSIONARIES

TO INNOVATORS: THE EUROPEAN

TRANSIT

ECONOMY OF TOUGH

DECISIONS

EURASIAN FIRMWARE

AS THE WAY

OF INTEGRATION

PISSARIDES

RAIMONDI

KUDRIN

4 28

32

36

BEZRUKOVFRIEDMAN

FACHE

102

108

SULTAN AHMED BINSULAYEM

42

SHEIKHA DEYABINT IBRAHIMALKHALIFA

46

GENERATION OF THE

RESPONSIBLE AND THE CARING:

WHO COMES NEXT

VYAZALOV

12

BAEDEKER GUIDE FOR

ONE PALACE AND TWO

EVENT SPACES

ANDROSOV

8

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IR

CONOMIC

SCYLLAS AND

CHARYBDISES

OF EUROPEAN IDENTITY

EXPERTISE OF STRATEGIC

RISKS AND WAYS

TO NEUTRALIZE THEM

RUSSIA OUT OF THE TRANS

SIBERIAN EXPRESS

WINDOW

RECREATION SPACE

NEW DESIGN CONCEPT

CASES

DEVELOPMENT

ENVIRONMENTIN DISADVANTAGED

CONDITIONS

EVIDENCE, CONTENT

AND POSSIBLE RESULTS

OF THE GLOBAL

FINANCIAL SYSTEM

TRANSFORMATION

FORMAT OF NEW EXPERTISE:

FROM STATEMENTTO DEVELOPMENT

SPACE AS THE CONDITION

FOR DEVELOPMENT:

INVESTMENTS INTO

COMMUNICATION SYSTEMS

COMPLEXITY AS

ENVIRONMENT,

CHALLENGE AND AGENDA

GAFUROV

NEKLESSA

BIRKAVS BEZRUKOV ORATMANGUN

NOVICHKOV

112 116 120

126

BAY

60

88

ANTHROPOLOGIC

DEUNIFICATION AS THE BASE

FOR DEVELOPMENT

KUZNETSOV

94ANTHROPOLOGIC STRATEGIESIN INNOVATIVE ACTIVITIESKIM

66

SARKAR

50

AGRICULTURE AS THE REFLECTION

OF MANAGEMENT DECISIONS

CULTURE

ZLOCHEVSKY

76

PEOPLE, RESOURSE S, SPACES:

MORPHOLOGY OF PRIORITIES

AKPAROVA

70LIU

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USSIAN

KONYUKHOV

KUSTURICA

PESKOV

KAZARNOVSKAYA

PLETNEV

136

196

146

KHAZIN

ZUO

210

218

RAKHMANOV

GORDON

150

160

200

206

GEOGRAPHICAL SPACE

EXPLORATION IN 3D

CINEMA AS A TOOL

OF MANAGEMENT

ATTUNEMENT OF IDENTITIES VIA

THE BRIDGES OF UNDERSTANDING

PARITY FOUNDATION OF THE

WORLD OF HUMAN VALUES

ENERGY DEPOSITARY:

EXPOSITIONAL POST

FACTUM

TRANSLATING FROM

CHINESE CULTURE

TO RUSSIAN AND FROM

RUSSIAN TO CHINESE

PRINCIPLES AND RULES

OF LARGE ARCTICLOGISTICS

KARELIN

140 THE HONOR CODEIN THE SOCIAL PLANE ANDIN EVERYDAY LIFE

THE UNIVERCE OF LIVING

CITIES

FUTURE AS BOTH

A LANGUAGE AND A TASK

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YMPHON

GOODGIVIN

PETROV, SUDAKOV, LUKSHA

ART THERAPY

228

CHARITY

239

CREATIVE INDUSTRY PROGRAM

236

184

PANYUKOV

178

PIROZHKOV

170DEVELOPMENT

PRACTICESTHROUGH THE PRISM

OF ENTOMOLOGY

DIGITAL ECONOMY AS

AN ASYMMETRICAL ANSWER

TO GLOBAL COMPETITION

PRIORITIES RECONSIDERATION:

FROM KNOWLEDGE TO SKILLS


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FROM

THE EDITORSThe Saint Petersburg Forum is, above all, a con-versation about the future of Russia: about its chal-lenges, plans, and accomplishments.

The twentieth anniversary of the SaintPetersburg International Economic Forum is takingplace at a crucial time for the country a testingtime, but also a time of hope.

In its new format, the RoscongressFoundation the organizer of the Forum invitesyou to experience how the future of our countrylooks and feels in all its facets.

We would like you to see this future throughthe eyes of different people both Russian andforeign scientists, entrepreneurs, politicians,artists.

These are extraordinary, caring people. Theyhave travelled different paths in life, but they allshare the desire to serve Russia.

They raise pressing issues, point out to prob-lems, offer solutions; they have different opin-ions, but their words, echoing the great founderof the city on the Neva, reflect their faith in Russia,in its power and in its future.

Listen to them allow yourself to immerseinto the symphony of the country on its historicalrise, the symphony of our spring, the symphonyof creation

The editors


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ONOMIC

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HIGH

ECONOMICSThe past century has made the global economyquite developed and quite complicated. The uni-versal parameters for assessing economic processesare now using complex multilevel criteria that eval-uate complex functions rather than linear indexes.What is more, the real state of affairs can no longerbe seen through the existing macroeconomiclens, and this blurred focus increases the prob-ability of systemic management errors. The newfacts of life such as a more sophisticated systemof the division of labor, the universal digitization,the global debt, unregulated emissions, and otherthings, create additional complications in the man-agement of the economy as well as in the forecast-ing of its development trends. Enormous problemsarise due to the lack of a regulatory frameworkthat would allow to diversify approaches to tan-gible and intangible assets. Therefore the roleof the High Economics is to introduce qualitativechanges into the balance of the world power cent-ers with a view to strengthen the managementgravity of the existing communities of practice. It isthe parity of the interests of the elites and the com-munities of practice that will allow to smoothenover differences accumulated in the global econ-omy and to carry out an evolutionary transitionfrom an artificial growth to a natural development.


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PISSARIDES(UN) COMPETITIVENESS

RAIMONDINEOINDUSTRIALIZATION

SULTAN AHMED BIN SULAYEM

ADJUSTMENTS

SHEIKHA DEYA BINTIBRAHIM AL-KHALIFAPARTNERSHIP

LIUINERTIA

NEKLESSAWORLD ORDER

ZLOCHEVSKIYLAND USE

BAIPOTENTIAL

GAFUROV

ASSESSMENT

AKPAROVAGEOFUTUROLOGY

KUDRINREFORMS

KIMINTUITIONAL

KUZNETSOVUNIQUENESS

SARKARHIGH TECH


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ONE CAN ACHIEVE A LOTWITHOUT HAVING TO WORK

?

* Stanisaw Jerzy Lec

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MIGRATION COULDHAVE MANY BENEFITS

IF PROPERLYREGULATED

Economies that are innovation-driven andknowledge-driven are being developed based onthe use of human capital. However, at the sametime, the emergence of new innovative technolo-gies eliminates the need for manual labor, thus lead-ing to the loss of jobs. Is unemployment thus part

of the new economic reality?

I am of the opinion that such a developmentis likely to be positive, since at the same time, thereis an increase in operational efficiency. In addition,the demand for new products and services is signifi-cantly expanding. And if people lose their jobs in the tra-ditional sectors of the industry, they will be able to findthem in the new industries, especially in the service sec-tor, which will be able to integrate 80 %, if not more,of the total workers released.

Labor migration has become a global phe-nomenon, and the main directions and channelsfor the movement of migrants have more or less

stabilized. In some countries and regions, migra-tion pressure on the labor market has become verynoticeable. What is your forecast on the develop-ment of these processes?

When we speak of migration, we should makea distinction between economic and political terminol-ogy. The biggest problem that we face today in Europeis the problem of refugees and political migrants,rather than economic migration itself. These newcom-ers require a purely political solution. Our economiesare quite capable of absorbing the current numberof migrants. Migration could have many benefits if prop-erly regulated.

Your public statement that, to achieve fullrecovery from the current economic crisis, our gov-ernment needs to take some rather painful meas-ures, is well known. What are these measures?

There is an urgent need to open up the businessenvironment, and make it more friendly for investments.Of course, this can be a painful process, as it wouldrequire dismantling the monopoly system. Russianmonopolies control many sectors and activities, andif you intend to create a real competition, you will facea lot of resistance. Another painful factor is that Russiahas many inefficient industries still operating. The prod-ucts they manufacture are not competitive at the inter-national level. That is why the nations economy is oil-

based. If you want to increase productivity, then youhave to cut a lot of jobs.

CHRISTOPHERPISSARIDES2010 Nobel laureate in economics,the Head of the Department of Economicsat the London School of Economicsand Political Science


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Countries that increased their productivity levels also incurredincreased unemployment levels. This was the case with the United

States in the 1980s. This was the same case with Germany afterthe unification: the industries of the former GDR were almostdestroyed. This painful process can be smoothened out only bythe overall growth of the economy and hopefully, this will bethe case with Russia.

THERE IS AN URGENTNEED TO OPENUP THE BUSINESSENVIRONMENT,AND MAKE ITMORE FRIENDLYFOR INVESTMENTS

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2010 Nobel laureate in economics,the Head of the Department of Economics

at the London School of Economicsand Political Science

CHRISTOPHER PISSARIDES


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EUROPE DOESNT HAVEAN OPPORTUNITYTO ACT

INDEPENDENTLY ASFAR AS THE SANCTIONSAGAINST RUSSIA ARECONCERNED

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PAOLORAIMONDIDirector, Department of International Economicsand Finance, Institute of the Asian andMediterranean Issues (ISIAMED), Coordinator,Italian Development Project Committee

How do you assess the economic situationin the world and the global financial crisis?

I believe we are approaching a new andvery dangerous stage of the global financial crisis.

The monetary authorities have flooded the world withnew assets for the purposes of saving the banking andfinancial sectors. But the industrial sectors are stagnat-ing. No significant reforms in the financial sector havebeen made. The economy is still run for a short termfinancial gain instead of a long term development. Imconfident that the so called recovery in the USA isnothing more than a typical public relations campaign.One of the most indicative evidences of the weakeningof the US economy is the trade balance deficits whichsince 2000 total $ 8,600 billion. The total trade balancedeficit is signif icantly bigger reaching $ 10,500 billion.

Whats the situation with the economyin the European Union?

The European Union also suffers from seriouseconomic troubles. It has copied the US monetary pol-icy, having increased the banks assets. It hasnt givennew loans to invest as it was planned. But the main prob-lem of Europe is the lack of political unity that wouldhelp it to play a more independent role in the world. Asa result, Europe doesnt have an opportunity to act inde-pendently even as far as the sanctions against Russia areconcerned. Having said that, I would like to warn every-body, including Russia, against any sentiments regard-ing the possible breakup of the EU, hoping that reach-ing a direct agreement with Berlin, Paris or Rome wouldbe easier than with Brussels. Disintegration of Europewould lead to additional destabilization of the interna-tional situation which is already fragile.

What does the Trans-Eurasian DevelopmentBelt mean for you?

Its a project of the new industrialization programthat can lead the economy out of depression. To imple-ment this project, new long-term financial instrumentsare required. The Russian government could officiallyrecognize the Trans-Eurasian Development Project asstrategically important and could make it a priority goalfor this country.

What would be the main advice that you could

give to Russian President Vladimir Putin?

He should carry on surprising the world with hisunexpected projects and decisions in the area of newtechnologies, space research, cooperation and security.


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Out of generosity, he should carry out important pro-jects for the benef it of the mankind, even if his partnersare not ready for immediate cooperation. And he should

give priorities to developing the BRICS alliance which isthe core of the future international system.

THE MAIN PROBLEMOF EUROPE IS THE LACKOF POLITICAL UNITY THATWOULD HELP IT TO PLAYA MORE INDEPENDENTROLE IN THE WORLD

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Director, Department of International Economicsand Finance, Institute of the Asian and

Mediterranean Issues (ISIAMED), Coordinator,Italian Development Project Committee

PAOLO RAIMONDI

PRIORITY DEVELOPMENTPROJECT

MAIN PROBLEM

STRATAGEM

WHAT MAKES YOUR HEART SING

BEST DECISION OF YOUR LIFE

QUESTION TO A CONTEMPORARYTO WHOM OF YOUR CONTEMPORARIESAND WHAT QUESTION DO YOU WANT

TO ASK?


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RUSSIA SHOULD MOVE

FROM STAGNATIONTO DEVELOPMENT AS ARESULT OF STRUCTURALREFORMS. THISMEANS THE RESETOF INSTITUTIONSAND THE TRANSITIONTO A NEW QUALITY

OF WORK

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ALEXEYKUDRINDeputy Chairman of the Economic Council underthe President of Russia, Chairmanof the Committee of Civil Initiatives

Would you personally resort to the money-printing machine?

I personally have been, am and will be against sim-plistic solutions such as this one. In general, turning onthe printing machine is a routine function of the Central

Bank, which constantly adjusts the amount of moneyin circulation to match the inflation rate and moneydemand. The Central Banks independence is crucialto maintaining a balance, both within the economy andwithin society, so better not try to impose other emissiongoals on it. In the Russian economic environment, suchattempts will result in higher inflation, therefore deterio-rating the state of, first of all, the poorer groups of popu-lation, due to their consumption patterns. A convertiblerouble, as it is now, may once again become a soft cur-rency, which would undermine the development of ourbusiness: try to recall the early 90s, when even basicconsumer goods were not supplied to the country with-out a deposit or down payment in a foreign currency.

Is the statement about the introductionof a national cryptocurrency myth or reality?

Private cryptocurrencies do exist. The existenceof a state cryptocurrency is possible in the future, but ithas not been secured so far.

What should we do with the global debt?

We do not have to do anything with the globaldebt, whereas the debts of certain borrowers requiresome specific market regulation.

How should Russia switch from an economyof growth to an economy of development? Andshould it?

Russia should move from stagnation to develop-ment as a result of structural reforms. This means thereset of institutions and the transition to a new qualityof work. Generally, no development takes place withoutserious work.

What is elite in your understanding? Who arethe elite today? What is happening to our elite?

The elite are the people who are influencingthe choice of development vectors of the country,including spiritual development. These may be politi-

cians, businessmen, civil servants, doctors, teachers,workers or creative professionals.


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The elite needs to find answers to the challengesthat the country faces. Sometimes this happens witha lag, sometimes as a revolution, without preservingtraditions, as it was the case in 1917 and during the fallof the USSR. Then the elite changes dramatically. Today,our elite, as well as the elites of many other countries,by the way, generally recognize that the challenges areevolving, they are becoming more complex, more seri-ous. These challenges require new responses. I think thisrecognition will be followed by the necessary changes.

What is stronger technology or finance?

Finance and technology cannot be separated;in the modern world, they complement each other.

Financial resources are usually more importantin the context of solving short-term problems, but,in the long run, it is technology that matters the most.

This may be the other way around within a particularcompany. Generally, finances are a kind of technologytoo. Technological development will be much slowerwithout investments.

What are the people interested in?

The people are interested in everything. Butthe key, basic interests are their security, prosperity anddignity.

Where will the new economic theory comefrom? And what are the next points of growth?

A new economic theory will always have similari-ties with the old ones, such as the preservation of moneycirculation principles, but it will focus more on the globalcompetition, socio-cultural environment, and demo-cratic institutions.

What is the Motherland?

The Motherland is a home. It is everything thatconnects a person with his or her family, language, placeof living and communication. This is the environmentthat has shaped the person.

What foreign book should be necessarilytranslated into Russian and what Russian book into a foreign language?

The Gaidar Institute, The Russian PresidentialAcademy of National Economy and PublicAdministration and the Higher School of Economicstranslate dozens of the best books on economics andother fields of knowledge annually. The Faculty of LiberalArts and Sciences of St. Petersburg University, of whichI am the Dean, is also actively involved in this process.I wanted to translate The Oxford History of WesternMusic by Richard Taruskin and Christopher Gibbs. Nowthe Faculty is engaged in this work. I would also like

to translate the work of the historian Alexander YanovRussia and Europe. 14621921 into foreign languages.

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GIVE ME A GOOD POLICY, AND I WILLGIVE YOU GOOD FINANCES* Anne Robert Jacques Turgot

QUESTION TO A CONTEMPORARY

TO WHOM OF YOUR CONTEMPORARIESAND WHAT QUESTION DO YOU WANTTO ASK?

Deputy Chairman of the Economic Council

under the President of Russia, Chairmanof the Committee of Civil Initiatives

ALEXEY KUDRIN

Government reform.

Structural imbalances in the economy.

To create an advanced educational system in Russia.

This is the question that I, unfortunately, didnt manageto ask Aleksey German when it was possible: Whichmovie would you like to make after Hard to be a God(Trudno byt bogom)?

When I see my children and grandchildren.

To enter the Faculty of Economics of St. Petersburg StateUniversity


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ALL FOUR OF THE FACADES OF THE MIKHAILOVSKYENGINEERS CASTLE ARE DIFFERENT. BY DOINGSO, THE ARCHITECT, VINCENZO BRENNA EXPECTEDTO ACHIEVE A HARMONIOUS COMBINATION

OF THE CASTLE VIEWS AND THE SURROUNDINGSTRUCTURES.

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SURPRISING

SAINT PETERSBURG


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THE FUTUREOF AN INDIVIDUAL

DEPENDS ONHIS ADAPTATION

TO TECHNOLOGIESAND INNOVATIONS

What kind of innovations, in your opinion,does the world need first and foremost?

I always say that an innovation arises from anecessity. Today the world is full of novelties, becausewe need them. In our business, the modern automatedsupply chain is affected by the globalization process.We are already facing a new wave of automatization for instance, the automatization of ports and trains.Robots are replacing people.

Do you cooperate with Russia?

We cooperate with Russia because we believein opportunities for doing business in Russia. We work

with Russia because of its strong economy, favorablegeographic position and its connection to Europe andAsia.

Have the sanctions affected the investmentappeal of Russia for foreign investors? If so, in whatway?

We started working with Russia 7 years ago. Someof our partners have left Russia due to the sanctions, butthey are coming back now.

Which areas of the Russian economy arethe most attractive to foreign investors and why?

I do not know about others, but for me,for instance, these are the ports. There is a joint venturein Russia with direct investments from a Russian fund.We invest in the ports of the Baltic Sea, the Black Sea,Vladivostok and into other ports in the Far East.

What country, do you think, has the best pros-pects for economic development in the next 510years?

I think it is China. The Chinese economy will besustainably strong. The BRICS economy as well, andfor the moment, certainly, Brazil. However, I think that itwill not be long before the leader in the economic devel-opment will eventually change.

SULTANAHMED BINSULAYEMChairman of the Board of Directors, DP World


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Everyone talks about the coming endof the carbon era. What can replace hydrocarbonsand when do you think it will happen?

I do not think that the end of the carbon era isso near. However, the alternative energy, sustainableenergy with a minimal pollution is indeed on todaysagenda.

The world faces a new economic reality. Whatis it about?

Technologies and innovations are getting muchcloser to the client. If previously a client had to deal withmultiple intermediaries to receive a service, today, moreand more people can receive services directly. An exam-ple is the Uber concept, which is now being adoptedin many industries. The future of an individual dependson his adaptation to technologies and innovations.

What is the biggest risk to investors in Russia?

All the risk is in the lack of information.

TECHNOLOGIES ANDINNOVATIONS AREGETTING MUCH CLOSERTO THE CLIENT

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Chairman of the Board of Directors, DP World

SULTAN AHMED BIN SULAYEM

ALL OF LIFE IS THE MANAGEMENT OF RISK,NOT ITS ELIMINATION* Walter Wriston


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RUSSIAS MOST

IMPORTANT RESOURCEIS ITS BRAIN POWER, ITSWELL EDUCATED PEOPLECAPABLE OF GREATINNOVATIONS, AND I THINKTHIS WILL ENSURE THATRUSSIA WILL GAIN MOREPOWER IN THE GLOBALARENA

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HER HIGHNESSSHEIKHA DEYA BINTIBRAHIM ALKHALIFAMember of the Royal Family, Kingdom of Bahrein,President of Riyada Group holding company

Your Highness, currently many oil produc-ing countries are suffering losses. In Bahrein thisproblem has been an issue for a long time. Whatcan be done to support and develop the economyof Bahrein?

In Bahrain, we had to face this problemin the 1970s, when we first began to witness a declinein our onshore oil production. Our government choseto diversify the economy away from reliance on oil andnow financial and offshore banking sectors make uparound 20 % of our GDP. In recent years, we also triedto develop other sectors, such as tourism and lightindustries, to complement the existing manufactur-ing and services sector. And one of the most importantsteps was reforming the labor market and focusing ondeveloping the skills of Bahrainis to meet the changingbusiness environment, as well as promoting small andmedium enterprises (SME) which play a significant rolein the economy.

Are you going to invest in Russia? What canRussia attract investments with? And what is Russialacking to attract more investments?

Russia has made a big step forward by setting upthe Russian Direct Investment Fund, which has helpedeasing the concerns of the foreign sovereign fundsand succeeded in attracting some of the largest sover-eign funds from the Gulf Cooperation Council regionand around the world. Meanwhile, in the private sectorsmall and medium size enterprises carry special impor-tance. That is where investment in innovations has morepotential for rewards. I have personally seen techno-logical innovations which exist here. These businesses

require only international marketing skills, patents andtrade secrets protection and knowledge of the globalbusiness to enter international markets. Russia can easilycapture a larger share of the innovative products in dif-ferent fields: oil & gas, medical, IT among others, where ithas an advantage in some technologies that are lackingin other countries.

What is Russias position in your ratingof investment destinations?

Russia definitely enters the top 20. But if we aretalking about working with private businesses, Russia isseriously behind. For the historical reasons Russian busi-ness hasnt caught up with the international business

community and more efforts are required to remedyit. But I believe we have to work with all types of busi-nesses, not only private ones. Its necessary to build rela-tionships patiently, looking for the best solutions.


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What can you say about the role of Russiain the future world economy?

Russia is an active participant in many financial

and economic institutions. In addition, Russia has a lotof natural resources. But its most important resource isits brain power, its well educated people capable of greatinnovations, and I think this will ensure that Russia willgain more power in the global arena.

You are quite rightly considered oneof the most influential women in the Middle East. Isit really difficult for a woman to be a success in thisregion?

Frankly speaking, my business travels take meto different parts of the world. Ive run across difficultiesnot only in the Middle East. And I have seen that womenin many parts of the world still need to overcome more

obstacles than their male counterparts. That is not to saythat the business world is less difficult for men, its justdifferent.

But I believe that every person always has an oppor-tunity to move forward irrespective of any obstacles anddifficulties. I dont think we should live within the bound-aries of where we were born. Every person should leave

his own mark in this world and create something new.

SUCCESS DEPENDS ONINTUITION, ON SEEING

WHAT AFTERWARDS

PROVES TRUEBUT CANNOT BE

ESTABLISHEDAT THE MOMENT

* Joseph A. Schumpeter

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Member of the Royal Family, Kingdom of Bahrein,

President of Riyada Group holding company

HER HIGHNESS SHEIKHA DEYABINT IBRAHIM ALKHALIFA

PRIORITY DEVELOPMENTPROJECTEducation and cognitive development.

We all need to get rid of preconceived opinions andkeep an open mind for the sake of better world withdiverse cultures.

Sacrifice a plum tree to save a peach tree.

Paulo Coelho. What is you look at the role of philosophyin the world of politics and problem solving?

A genuine smile faith in humanity. And ability to shareblend into perfect melody.

Let the days do what they want. Live in peace, if all issolved.

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SAEEDSARKARSecretary-General of the Iran NanotechnologyInitiative Council

How has Iran turned into the most technologi-cally advanced country of the Islamic world, and oneof the global technological leaders?

During the period that Iran was placed undersanctions, we were deprived of any other choice. Ifyou have no one selling you the equipment you need,

for example modern medical equipment, this becomesa strategic objective in itself. You have to start producingit, even if its production costs two or three times morethan buying it directly from abroad. And life itself hasforced us to learn how to make a lot of things at the high-est technological level. Of course, until the sanctionswere imposed on us, we did not know whether we couldorganize production at such capacity, and did not havefaith in our ability to engage in sustainable production.However, there was no other way around it. Finally, wecame to learn that indeed, we could stand on our ownfeet. Within a decade, we reached the seventh placein the world rankings for nanotechnology development,with Germany being the only country in Europe rankinghigher than us.

Can we say that the sanctions imposed againstthe Islamic Republic contributed to its technologicaldevelopment?

Having visited Iran and gotten acquainted withour achievements, a minister of one highly technologi-cally advanced East Asian country asked the question: Ifyou managed to produce all this high-tech equipmentunder sanctions, there is no telling what you could do ifyou were not under sanctions. I replied, Nothing! Wewould simply pay money and buy everything we need.We would not even think of the possibility of in-sourcingthe production of this equipment .

In that case, would the lifting of the sanctionsnot hurt the Iranian miracle?

On the one hand, it is clear that our market isnow open to Western companies and the whole worldfor our technologies. We can now sell our technologiesto the West. This is profitable. But on the other hand,we must be very careful. We just do not have the rightto relax, hoping that everything goes well. Someof the foreign high-tech companies are dumping theirproducts in Iran to destroy the capacity of the domes-tic producers who sprung up during the period of sanc-tions. Sometimes, the price of high-tech products fromWestern companies in Iran is two times lower than that

in neighboring countries. Moreover, after the liftingof the sanctions, some of our high-tech companies werepresented with very good opportunities for cooperationwith international corporations that are at the same timehunting for modern technologies.


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QUESTION TO A CONTEMPORARY

TO WHOM OF YOUR CONTEMPORARIESAND WHAT QUESTION DO YOU WANTTO ASK?

ALWAYS CHOOSE THE HARDESTWAY ON IT YOU WILL NOT

FIND OPPONENTS* Charles de Gaulle

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Secretary-General of the Iran NanotechnologyInitiative Council

SAEED SARKAR

But our most important advantage in global compe-

tition is human resources. Our main wealth is not the oiland gas that is hidden underground, but our very ownpeople. Irans experience clearly demonstrates that evenunder conditions of Western sanctions, sustainable tech-nological development is indeed achievable.

Activities aimed at the progressand development of science and technologywith the aim of serving the people.

Those who develop technology in the worldsee well-to-do people as their target

audience.

Giving a successful example of technologydevelopment that can be applied indeveloping or underdeveloped countries.

To ask the leaders of industrialized countries

on what measures they have taken for thedevelopment and improvement of livingstandards around the world.

To be useful and to serve the public.

The joy of the people.

OUR MOSTIMPORTANTADVANTAGEIN GLOBAL

COMPETITIONIS HUMANRESOURCES


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THE COLLECTION OF THE STATE HERMITAGE HASABOUT THREE MILLION EXHIBITS. THEY ARELOCATED IN A COMPLEX OF FIVE BUILDINGS. IFWE LOOK AT EACH EXHIBIT AT LEAST FOR ONEMINUTE, THE PROCESS OF OUR ACQUAINTANCE WITH

THE WHOLE COLLECTION WILL TAKE 8 YEARS, ANDTHE DISTANCE THAT WE WOULD NEED TO WALK WILLBE MORE THAN 20 KILOMETERS.

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HENRYLIUExpert in the area of international finance,consultant to private and state-owned companiesof the Peoples Republic of China in the areaof innovation policy and international contracts

Some time ago you have introduced a notionof the dollar hegemony. You claim that this hegem-ony is disappearing. In what, in your view, is the vul-nerability of the dollar system?

Within the last two decades the US FederalReserve System has been unable to control inflation.Despite the slowing down of the US economy that fol-lowed, the world prices that are pushed by the demandof developing economies continue to grow. The rea-son for this lies in the fact that the ever growing globalpopulation consumes food, energy and goods of dailynecessity faster than our market economy is capableof producing. The irony of the moment is that the pro-duction capacity cannot be fully employed due to insuf-ficient incomes of the working people to supportthe unsatisfied demand. The inflation stimulates growthof the amount of cash, which flows not to those whospends it for consumption of goods and services butinstead, contributes to financial assets.

Is a reform of the dollar system possible?

The market has lost its trust in the governmentspolitical courage for taking a required strategy to radi-cally change the obsolete ways of managing the contin-uous cash flow to provide a constant economic growthwithout any crises and inflation. The existing marketforces react to fixed inflation expectations. These expec-tations, in their turn, only increase the inflation pressure,becoming a self-fulfilling prophecy which turns fearsinto reality.

Are there any hopes for changing the worldsfinancial system? Whats the role of Russia and Chinain these changes?

We should stop paying attention to that damag-ing type of f inancial institutions that today are the centralbanks, carrying out urgent financial assistance for payingoff debt, thereby increasing this debt. Todays debt cri-sis gives us an opportunity for a catharsis. This inspiringself-transformation will be the reforming of the worldeconomy infected with greed and the departure froma senseless and expensive competition to an initiativeof cooperation for constructing the world communitybased on human values, necessary for reaching equalitywithout submission, sympathy with not so lucky people,and respect for diversity.


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The winds of change blow over the whole world.Both Russia and China can potentially become theleaders of this initiative.

What is the danger of militarizingthe economy?

War is the mother of all inflations. Democraticgovernments always with a greater ease agreeto increase debt rather than to increase taxes for pay-ing for war. The temptation of printing money for pay-ing off the increasing national debt is insurmounta-ble. Like the inflation wave of the 1960s to the 1970sstarted in 1965, when the Vietnam War turned outto be a trigger mechanism, the current inflationwave is related to the wars in Afghanistan and Iraq,and expenses for the national security have some-thing to do with the global war against terrorism. As

the Vietnam War failed to stop the spread of com-munism in the South-East Asia and to strengthenthe American economy, the current global waragainst terrorism will only weaken the US economywithout improving the US national security.

WAR IS THE MOTHER OF ALLINFLATIONS

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Expert in the area of international finance,consultant to private and state-owned companies

of the Peoples Republic of China in the areaof innovation policy and international contracts

HENRY LIU

THE FIRST PANACEAFOR A POORLY MANAGED

COUNTRY IS CURRENCYINFLATION, THE SECOND ONEIS WAR; BOTH BRING ABOUT

TEMPORARY PROSPERITYAND BOTH BRING ABOUTTHE FINAL DESTRUCTION

* Ernest Hemingway


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DEVELOPMENTOF RUSSIASTRANSPORTATIONINFRASTRUCTURE ISAN URGENT OBJECTIVE

AND FOR ITS SOLUTION,A BIG AMOUNTOF INVESTMENTS ISREQUIRED

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BAIYUNFAN

General Director, Moscow Branch, ChinaCommunications Construction Company Limited

Have the anti-Russian sanctions changedthe map of Russias investment attractivenessfor external investors? If yes, where exactly?

Due to the introduction of the sanctionsin respect of Russia by the European Union and the USAand due to the fall of oil prices, the macro-economic

situation in the country has deteriorated: the budgetdeficit has worsened, the capital outflow has increased,and the inflation has grown up. Accordingly, the invest-ment risks have also increased. However, if we are talk-ing about Russias investment attractiveness for non-European, especially Chinese investors, the sanctions,on the contrary, present us a good chance. Our companythat specializes in engineering, construction and oper-ating of the hauling infrastructure implements projectsin more than 130 countries of the world. Developmentof Russias transportation infrastructure is an urgentobjective and for its solution, a big amount of invest-ments is required. That is where the investment attrac-tiveness lies.

Which areas of Russias economy are the mostattractive for foreign investors and why? What thesedynamics could be within 5 to 10 years?

Whatever sanctions are introduced, theresa good economic base preserved in Russia. Its strongin many areas, such as space and petrochemical indus-tries, heavy engineering, road and bridge construction.At present, a big potential for development, in our view,is in such industries as tourism and related industries,such as e-trading, agriculture and infrastructure. Weare looking optimistically at the development poten-tial of these branches. However, having said this, weshould properly structure our cooperation with foreigninvestors who anticipate a long term mutually beneficialcooperation.

You deal with ports among other things. Couldyour business achievements be used in the develop-ment of the Northern Sea Route? If yes, in what way?

Yes, ports are one of the main directions of ourcompanys activities. We are the biggest companyin the world in engineering and construction of seaports, the biggest supplier of container cranes. We havethe largest fleet of dredging vessels. Nearly 80 % of portsin China have been built with our companys participa-tion. Moreover, we have built five out of ten biggest con-tainer terminals of the world. The Northern Sea Route

is a large scale project which has strategic importancefor Russia.


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Transport infrastructure construction,including roads, bridges, tunnels, ports,airports, railway lines, etc.

High volatility of the ruble.Different mentalities.

Work and make friends.

To Russian President:How did your daughter learn the Chinese

language?

The feeling of freedom.Spending time with family.

To have two children, which was rare in my countrythose days.

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QUESTION TO A CONTEMPORARYTO WHOM OF YOUR CONTEMPORARIESAND WHAT QUESTION DO YOU WANTTO ASK?

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General Director, Moscow Branch, ChinaCommunications Construction Company Limited

BAI YUNFAN

The issues of cooperation in this project are activelydiscussed between the Peoples Republic of China andthe Russian Federation. We hope that the capabili-ties of both parties can be used to their full extent andin mutual interest.

THE NORTHERN SEAROUTE IS A LARGE SCALEPROJECT WHICH HASSTRATEGIC IMPORTANCEFOR RUSSIA

SHOULD THERE BE ANY FLEET,HARBOURS WILL BE FOUND

* Peter the Great


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ALEXANDER VOTSMUSH


Sevastopol

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ARTISTIC DEVELOPMENT OF EASINESS

Displayed painting: The house is like a cat, it watches, waits for fish

His paintings evoke, first of all, a profound surprise. Its a surprise from getting into somebodys wonderful dream.Then, comes admiration! The admiration of the painters unusual courage and the airiness of his paintings. It seems thatthey are woven of our infant dreams! The admiration of a child is replaced by the sadness of a grown-up who realizes thatthere is no chance to stay in these paintings for a longer time. You want to run away into his paintings, to walk along pavedroads there, to breathe clean air of his fairy-tale seas, to talk with mysterious inhabitants of his world.


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WE ARE NOT AFRAIDOF MOVING FORWARD ANDCHANGING OUR BUSINESSMODEL, IF NECESSARY

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BORISKIMChairman of the Board, QIWI Company,Chairman, National Associationof the Electronic Trading Participants(NAETP)

What is the secret that makes your brand sounsinkable? Competitors come and go and youstay in the market.

The secret is simple and, in general, well-

known to everybody: we are trying to find a free nichein the market. There is a demand but it hasnt beenmet for whatever reason and we are trying to meetthis demand. Apart from this, up to date weve man-aged to build the infrastructure which will be very dif-ficult for new players to replicate. The price of enteringthe market now, in comparison with what used to be 10years ago, has grown up by a few orders of magnitude.

The market has changed too. We were not afraid of can-nibalizing our own products. At first, they were scratchcards, then cash desks in supermarkets and cash termi-nals, and now its the qiwi-purse, around which there arelots of other services. We are not scared of moving for-ward and changing our business model, if necessary.

If we put on one side of the scales the Fintech,startups, and on the other one classical banks,which will outweigh within the next 10 to 15 years?Or will they get along and coexist?

The threat for the banks doesnt come fromthe Fintech or startups but from the association of suchtraditional payment systems as Visa and Mastercard withtechnology companies and retailers. In this chain, tradi-tional banks at some point may become unnecessaryand the unnecessary intermediaries disappear.

Who needs blockchains and cryptocurren-cies people, businesses, the state or the worldin general?

This is a false opposition. Many properties of cryp-tocurrencies are useful for the public, but in orderto make them useful for the state one needs to resolvethe issues related to their anonimous nature and the lackof a single emission centre. Finally, the whole society willbenefit. In this sense the Internet could be an appropri-ate analogy. The blockchain technology is a kind of a pro-tocol that can be used in various areas.


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When engineering something new, what isthe best driver inspiration, internal ego or a coolcalculation, a motivation for business success?

It depends on the nature of the person and onthe type of innovation. But speaking very roughly, there aretwo approaches. The first one is the following: you devisea better more efficient, more convenient, cheaper way of satisfying the existing demand. In this case you can

rely on users inquiries and design a rather precise model.The second one is when you invent a completely new prod-uct or service. Then, what users tell you will only confuseyou. You cant do without intuition or vision here. However, Iwould like to emphasize that the execution plays an impor-

PRIORITY DEVELOPMENTPROJECTSelf-development.

Time flows in one direction only.

In the end, everything will be well. And if everything isnot well, it is not the end.

Stephen Hawking: Does God exist?

Many things. And sometimes no special reason at all.

To become a student of MSU (Moscow State University).

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tant role in both cases. Poor execution has killed manygood ideas and, nevertheless, the role of this factor isoften underestimated.

As a well-to-do person you can choose anyplace in the world to live, however you stay in Russia.Why?

I think the reason is the cultural identity. For me

its important to be surrounded by the Russian language,to go to Russian theatres or Russian museums. This cul-tural identity that has nothing to do with nationalism,with all its subtlety and finesse, keeps me here verystrongly. And I dont mind.

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Chairman of the Board, QIWI Company, Chairman,

National Association of the Electronic TradingParticipants (NAETP)

BORIS KIM

CULTURAL IDENTITY THAT HASNOTHING TO DO WITHNATIONALISM, WITH ALL ITSSUBTLETY AND FINESSE, KEEPS

ME HERE VERY STRONGLY

ONE SHOULD CHOOSE BETWEENWHAT HES USED TO AND WHAT

HES ATTRACTED TO* Paulo Coelho


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THE DEVELOPMENTOF THE RUSSIAN FAREAST IS DECLAREDNATIONAL PRIORITY

FOR THE XXI CENTURYBY THE PRESIDENTOF THE RUSSIANFEDERATION

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ANNAAKPAROVAPh. D. (Physics and Mathematics), Assistantto the Deputy Prime Minister of the RussianFederation Presidential Envoy to the FarEastern Federal District

THE FUTUREOF RUSSIA STARTS

IN THE FAR EASTThe development of the Russian Far East is declared

national priority for the XXI century by the Presidentof the Russian Federation. The team of the Deputy PrimeMinister and Presidential Envoy to the Far Eastern FederalDistrict Y. Trutnev already has several achievementsin accelerating the economic activity in the region.

We have prepared the law on the territories of accel-erated social and economic development inspired

by the experience of the free economic zones in Asia-Pacific Region. This law offers tax preferences, simpli-fied administrative procedures and the states supportin building new infrastructure. This law came into effectin 2015, with 12 such territories created in 8 regionsof the Russian Far East.

We have launched a program that provides state sub-sidies for creating the infrastructure for large investmentprojects. We have already supported 10 of such projects.

We have also passed the law on the free portof Vladivostok. It creates a special regime of a free cus-toms zone with the customs off ices operating 24 / 7 asa single window. The residents of the free port zonehave the advantage of fast VAT refunds and consider-ably lower tariffs for insurance fees (from 30 % to 7,6 %).

They are also fully free from income, property and landuse tax for 5 years. What is more, there is a simple proce-dure for foreign citizens to enter the Russian Federationwith the help of the electronic visa that can be acquiredright at the border. The first residents of the port alreadystarted implementing their projects. This regime will bereplicated in other key ports of the Russian Far East.

The Far East Development Fund is already offeringentrepreneurs long money with lower interest rates.

The Russian-Chinese Agro-Industrial Fund with the over-all capital of 10 billion US dollars is being created.

The fact that the Russian Far East has become a highlycompetitive place for investments has been proven bythe investors themselves. At that very moment the neweconomic tools have already brought to the Russian FarEast the additional investments in the amount of 1 tril-lion roubles. The industrial production growth reached104 % in January-April 2016.

The Russian Far East has enormously rich naturalresources and a great potential in the logistics sphere.Natural resources extraction is the most developedbranch of economy in the region. It contributes morethan 25 % to the regional GDP. Transport and commu-nications give more than 13 %. Based on the demand

of the export-oriented industries of the Far Eastern econ-omy we can also develop technologies and education,thus triggering deep changes in the economic structure.


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There is also a clear interest of our Eastern neighborsin investing into the production assets of the export-ori-ented industries of the Russian Far East to ensure theiraccess to natural resources. In our turn, Russian busi-nesses can achieve vertical integration in the valuechains by getting shares in companies to which theysupply resources. Eventually, this will lead to the increaseof the degree of processing that is done on our territory.

The fact that the Russian Far East has low populationdensity can actually become a positive factor. It will force

businesses to introduce cutting-edge technologies,taking into account the trend for the automation androbotization of production. At the same time, the shareof creative and skilled jobs in economy will be growingdramatically and the high-quality human capital willbecome the main competitive advantage in the region.We understand that the demographic problemsof the region will require a comprehensive solution.

The dynamic changes happening in the Russian FarEast are likely to become a trigger for the deep insti-

* Yury Trutnev

THE FAR EAST REGION HAS THE FASTEST DEVELOPINGECONOMY IN RUSSIA

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Ph. D. (Physics and Mathematics),Assistant to the Deputy Prime Minister

of the Russian Federation PresidentialEnvoy to the Far Eastern Federal District

ANNA AKPAROVA

WHEN I REACHED THE RUSSIAN FAR EAST, MY

HEART WAS SINGING WITH JOY* Vladimir Arseniev

tutional transformations that will help creating a self-sustaining law-based system. This system will ensurethe development of the advanced economy, the growthof human capital, the maintenance of the national iden-tity and a solid place for Russia in the global community.

The future of Russia starts now in the Russian FarEast.


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A STATE PROGRAM THAT WOULD

COMPENSATE PRODUCERS NOTAT THE SET RATES BUT AT THE LEVELOF EXPENSES IN INVESTMENTPROJECTS SHOULD BE ADOPTEDAND IT SHOULD BE AIMEDAT MAINTAINING THE DEMAND ANDINFRASTRUCTURE DEVELOPMENT

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ARKADYZLOCHEVSKYPresident, Russian Grain Council

THERE ARESPROUTS OF HIGH

AGRITECHNOLOGIESBUT THEY ARE JUST

SPROUTS

A quarter of a century has passed after the col-lapse of the USSR but the land ownership issue hasntbeen resolved up to date. Many people believe it

is the main problem that hinders the developmentof agriculture. Do you agree with this statement?

No, it isnt the main obstacle, although it exists.Indeed, the issue hasnt been resolved, but the problemis that our state agricultural policy is aimed not at stimu-lating the producer but at meeting the peoples demandfor cheap and accessible food. The agricultural policyshould be changed to enable the producer to be eco-nomically interested in producing.

And what specifically should be doneto achieve this?

A state program that would compensate pro-

ducers not at the set rates but at the level of expensesin investment projects should be adopted and it shouldbe aimed at maintaining the demand and infrastructuredevelopment.

During the Soviet times one of the main prob-lems of agriculture was the undeveloped infra-structure which resulted in the loss of a significantamount of crops that didnt reach the processingstage. Does the problem still exist now?

The problem does still exist, only the levelof losses has come down by ten times as not only produc-ers but sellers and buyers are interested in minimizingthe losses. Of course, infrastructure should still be devel-

oped. Generally, agricultural policy everywhere shouldbe aimed at stimulating production in the first place andthis inspires the development of the infrastructure andmaintains the demand. As far as we are concerned, wedo exactly the opposite we suppress prices in the agri-business sector and this destroys incentives.

Whats the situation with agricultural equip-ment now?

We have some pieces of good equipment, espe-cially in terms of price versus quality. Another issue isthat the farmers purchasing power under the currenteconomic conditions is not very high and, as a result, wehave a very high load on each unit of equipment.


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For example, a load for one combine is about 360to 400 hectares. And the equipment can stand it. Itsreliable. The problem is in something else: our equip-ment cant manage to cope with its task for an allo-cated unit of time. In Europe the same factor is 130 hec-tares per machine and in USA 150 hectares. We havealmost 400. Naturally we dont f it in the optimum timingdetermined by the weather. Hence, the crop losses. Andthe same is for all types of equipment. We are lacking itto a catastrophic level. We have competitive pieces butthere is only a small quantity of the equipment available.We have half a year queue for one Kirovets tractor.

Whats the situation with training personnel

for agriculture? What are the problems here?

Here we also have problems that go throughthe roof, so to say. Some ministry clerks have somehowcome up with an idea to stop training lawyers and econ-omists in agricultural universities. And what is an agri-culturalist who understands nothing in economics? Ifa person understands something in biology but doesntunderstand anything in economics, it means that he orshe cant manage a resource in an efficient manner. Itmeans that, despite having an excess of labor in agricul-ture, I mean unqualified labor, we have a real shortageof personnel.

Do we have innovative technologies

at the world level in todays agriculture?

There are sprouts of high agritechnologies butthey are just sprouts and they are far from mass produc-tion. Having said that, the examples themselves are veryadvanced. First of all, these are information technolo-gies. They are generally a driver of development in agri-culture. The systems of precision farming, satellites, GPSsystems, etc. This is a frontline but its just a silly lackof cash that doesnt allow bringing all these technolo-gies into production.

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President, Russian Grain Council

ARKADY ZLOCHEVSKY

BY HITTING THE GROUND YOU CAN GETONLY DUST BUT NOT A CROP

* Rabindranath Tagore


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SLAVA FOKKKrasnodar

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Displayed painting: White poppy

THE SUGGESTIVE SIDES OF LIFE

Sardanapalian, affected girls. Bizarre coiffures and attires. The past epoch is looking at us through their huge eyesfrom Slava Fokks paintings. Even dilute palette and color blocks remind of the beginning and the middle of the 20th cen-tury, art-deco. The painter is attentive to details and pays his attention to the elements of design. Both avant-garde andsurrealism are present in his style.


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INTEGRATED SYSTEMSEXPLOIT TRANSITDENYING A BALANCEAND REPRODUCINGCRITICALITY

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NERVESOF THE WORLD.

SPACESOF INTEGRATEDOPERATIONS

The world is constantly changing. The future-his-tory casts multiple shadows and the choice of the sce-nario depends on the position and interpretations. From

the epoch of industrialism, people migrate to the newworld where the notion of quality loses its previousmeaning and unique features become a required quan-tity influencing different aspects of reality. Integratedsystems exploit transit denying a balance and reproduc-ing criticality.

The social pitchfork of the past century was the revo-lution of masses, associated with the industrial cultureand etatization. Industrialism realized the conveyorproduction of copies having created the excess of cheapthings, which, in its turn, devalued semantics of the classdifferences: objects and services from a mans suitto education started being bought at noticeablyreduced prices. The growing discretion income wasbreaking class partitions, turning the earlier inflexiblestratification into multicoloured social mosaics.

The demand for narrowly trained professionals,needed for functioning of political and economic facto-ries, has strengthened the positions of the middle class.

The community of the people of knowledge has under-gone its own transformation: the accent has shifted fromperception to utilization and the relay baton has beenpassed over from thinkers to engineers, both technicaland social. In a mass society the ersatz-elite used to bea mass leader, the state used to turn itself into a politi-cal machine governed by bureaucracy or apparatchiks,the subject of power used to be transformed into a cartelregulated by a competition of parts parties or clans.

The global and universal reconstruction of socialspace has been initiated, the decolonization of the Southand making of the third world have involved new actorsof change into the active universe. The developmentof the civilization leads to an industrial coup and the sta-tus of non-material assets sharply increases. The revo-lution of the masses is replaced with the revolt of theelite, the digital culture and complicated systems, capa-ble of acting efficiently in situations of uncertainty, arein demand.

A national state loses its earlier exclusivity. Its abilityof powerful management of human trajectories narrows

down preserving qualities and benefits of sovereignrule-of-law communities.

ALEXANDERNEKLESSAChairman, Commission for Socio-CulturalProblems of Globalization, RussianAcademy of Sciences, Head of North-South Laboratory at the Russian Academy

of Sciences


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CREATIVITY

INFORMATION

INDUSTRY

COMMODITY

PHYSICAL STRENGTH

NATURE

CULTURE

INTERACTIONS

TRANSPORT

TECHNIQUES

TROPHIES

CATTLEBREEDING

ECOLOGY

TIME

ENERGY SOURCES

MONEY

NATURAL RESOURCES

AGRICULTURE

6

5

4

3

2

1

HUMAN

Innovation forms of an external political organizationprevail: global regulatory bodies, quasi-sovereign states,separatist formations, geo-economic integrities, corpo-ration states, poorly formalized influential anthropo-social communities mobile archipelagos, flying islandsconstituting a de facto new type of political organisms.

The trans-border mobility is increasing, the world mar-ket is acquiring shapes of a specific world order, andthe elite umbrella as a regulatory authority is gettingmore complicated.

Passing through the post-modernization barrier dem-onstrates a growing importance of effective personali-ties, the speed and the scale of operations, the varietyof global communications. The trans-border expansionchanges the look of political and economic geography:geo-economic areas related to a dominating languageof local practice (geo-culture) are being shaped. The topicof socio-cultural competition has been constantlyincluded in the global agenda. The basis for socio-cul-tural gravity is the collective identity awakening the will-

ingness to be a part of the world causing sympathies.In the disperse environment, the critical role of the per-sonality factor, a strategic resource of the epoch is gettingmore noticeable. An intense re-distribution of humanresources over the planet (geo-anthropology) is ongoing.

The global transformation isnt linear by natureand radical by its content. Reconstruction of socialspace is accompanied with active ideas of the future,axiological and epistemological crisis, destructionof the framework of the previous discourse (Overtonswindows) stimulating re-organization of the researchprocess. Renewal of the problems of intellectual cor-porations, forms of translation of knowledge, meth-ods of perception / action / management are relatedto the genesis of a complicated personality, the devel-opment of its multi-dimensional spaces and codesof highly adaptive self-organization.

Its most unlikely that we should expect a transi-tion to the balanced world order. The oecumene willbe wrapped in a techno-area cover and penetratedby the energy of the permanent transit constitutingan unbalanced, uneven, dynamic status of the anthro-pological universe inhabited by numerous and multi-faced individuals.

GENOME OF HISTORY84


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THE BASIS FOR THE SOCIOCULTURAL GRAVITY ISTHE COLLECTIVE IDENTITY

AWAKENING THE WILLINGNESSTO BE A PART OF THE WORLDCAUSING SYMPATHIES

Chairman, Commission for Socio-Cultural Problems of Globalization,

Russian Academy of Sciences, Head

of North-South Laboratory at the RussianAcademy of Sciences

ALEXANDER NEKLESSA


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SAINT PETERSBURG IS THE RECOGNIZEDCAPITAL OF TRAMWAYS BECAUSE THE LENGTHOF ITS URBAN TRAM RAILS IS MORE THAN

600 KILOMETERS. THIS FACT IS INCLUDEDIN THE GUINNESS WORLD RECORDS BOOK.

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SURPRISING

SAINT PETERSBURG


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A CONSENSUS AMONGTHE STATES THAT ARE BEINGBLACKMAILED BY RATINGAGENCIES IS APPEARING

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THE FUTUREADVANCES,

THE PAST RESISTSKeynes thought that economics is not as much

the science of thinking in terms of models but the artof choosing relevant models in accordance with con-stant and immitigable changes of the world. Economicmodels or methods (for example, ratings of countriesor companies) are aimed not at resolving problemsof econometric methodology but at searching a wayout of the acutest economic and social problems facingthe society.

And thats why ratings should be aimed notat the past, not for the purpose of assessing the resultsachieved, but at the future for the purpose of fore-casting, foretelling something unknown, and, in essence,at making decisions. But aims of forecasting cannot bereached by way of applying established methods, evenquite creative ones. Indeed, in order to make statisticallyreliable forecasts, we should receive a selection of futuredata. Thats the reason for catastrophic failures of mod-ern rating agencies, which caused multi-billion lossesfor investors.

Now the trust of both large funds and small inves-tors in rating agencies has been undermined. Its notby chance that Mario Draghi, the Head of the EuropeanCentral Bank, so persistently complains about the insuf-ficient demand thats not capable of absorbing all sav-ings and requires resolute and, most importantly, urgentactions. The makers of ratings and its not just them have undermined the investors trust.

Moreover, the West has openly turned its rating agen-cies into instruments of economic war. The financial sta-bility of China or Russia by far surpasses the stabilityof many western economies, and we know this not onlyfrom the economic calculations but also from the expe-rience of Iceland that used to have the highest ratings,Greece, and the South Europe in general. However, theirratings continued to be overstated up to the time whentheir liabilities were refused to be serviced.

To defend themselves, rating agencies were sayingthat it is impossible to receive the data from the future.

The monopoly of the West in this area was vir tually lostwhen Dagong, a Chinese rating agency, was set up, butmethodological problems remain unresolved.

Its against this background that a consensus amongthe states that are being blackmailed by rating agen-cies is appearing. In the West it is supported by respon-sible financiers, who need effective working instrumentsfor risk management, and by masses of small investors.

SAEEDGAFUROVEconomist, orientalist

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