Russian Modernization: Economic Policy, Advertising Slogan, or a Political Way Forward?

Russian Modernization: Economic Policy, Advertising Slogan, or a Political Way Forward? This issue became the central topic of discussion at a seminar at the School of Advanced International Studies (SAIS) at The Johns Hopkins University.

RIA NovostiPresident Dmitry Medvedev visited the hi-tech hub of Skolkovo to take part in the “Go Russia!” forumProblems of Modernization in Russia

10:30 20/12/2010 The course proposed by Dmitry Medvedev is designed to strengthen the weak parts of the country’s economic policy. Modernization means changes, and often these are changes for which ordinary Russians are not ready. The Kremlin believes that there is a way to demonstrate modernization in action -- that is the Skolkovo project.>>



The course proposed by Dmitry Medvedev is designed to strengthen the weak parts of the country’s economic policy. Modernization means changes, and often these are changes for which ordinary Russians are not ready. The Kremlin believes that there is a way to demonstrate modernization in action -- that is the Skolkovo project.

Russian Modernization: Economic Policy, Advertising Slogan, or a Political Way Forward? This issue became the central topic of discussion at a seminar at the School of Advanced International Studies (SAIS) at The Johns Hopkins University.

Toby Gati, Senior Advisor on International Affairs at Akin Gump Strauss Hauer & Feld LLP, who worked at the National Security Council during the Clinton Administration, cited a survey conducted in Russia by the company SuperJob. According to the survey, only 13 percent of Russians believe that since President Medvedev issued the programmatic article "Russia, Forward!" proclaiming a new modernization course, the country has undergone a real change, while 61 percent of respondents have not noticed changes or see the modernization policy as empty words, and 26 percent were undecided.

"Russian modernization is perhaps the most effective way to transition from a resource economy to a 21st century model based on technological progress,” said Toby Gati. “The course proposed by Medvedev is designed to strengthen the weak parts of the country’s economic policy. What is being discussed is attracting foreign investment, profit-making and the promotion of new discoveries, as well as an increase in the number of professional managers. "

Many obstacles lie in the way of modernization, however. The most significant of these, according to Toby Gati, are corruption, outdated infrastructure, and aversion to change. She cited the following statistics: according to the NGO Transparency International, in terms of corruption, Russia is number 154 out of 180 countries -- that is to say, on a par with Kenya and Tajikistan. One reason for this is that the names of the companies whose representatives give or receive bribes are not publicly disclosed.

“As Russians understand it, corruption interferes with the process of modernization,” notes Toby Gati. "According to some reports, the Russian people associate the process of modernization with reduced levels of corruption, a reduction in the number of bureaucrats, and the creation of healthy competition. But it is interesting to note that, if in the 1990’s young people wanted to work in business, and in the early 2000’s they wanted to join the FSB, then among today's youth it is most fashionable to be a government official," she says.

“Modernization means changes,” says Ms. Gati. “And often these are changes for which ordinary Russians are not ready. The Kremlin believes that there is a way to demonstrate modernization in action -- that is the Skolkovo project.”

In this context, Toby Gati drew attention to the contrast that exists in Russia today: "On the one hand, there is Skolkovo - the Innovation Center of the 21st century -- and on the other hand, according to recent data, almost 300,000 people in the capital city are still living in 70,000 communal apartments and new apartments are promised to them only by 2020."

In the long term, according to her, modernization of Russia is relevant to what is happening in US-Russian relations and, to some extent, is part of the Reset. "The reset,” says Toby Gati, “succeeded because both sides got what they wanted: the United States won support for its policies on Iran and Afghanistan, and Russia got cooperation on WTO accession and a calmer situation in the CIS countries.”

"America understands that Medvedev is serious about wanting change. The U.S. is convinced that change in Russia is necessary, and not just economic change. Russia needs not only financial investments but it also needs an influx of new personnel, and it needs new technology. In these areas, the U.S. could provide significant assistance as well," said Toby Gati.

By Toby Gati

This article was originally published in Russian on VOANews.com . Daria Kutkovaya, Voice of America

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