Leaders in Productivity: International Experience in Achieving National Goals
Russias successful integration into the global economy is possible only through its participation in global production chains, which in turn inevitably requires a systematic approach to improving the effectiveness and quality of labour. The growth of managerial and technological expertise, the improvement of project finance mechanisms, a reduction in administrative barriers, etc. could become the main areas of focus in terms of increasing labour productivity in countries with developing economies. In order to achieve national goals in the sphere of labour productivity, it is vital to attract the best international experience and create a strong network of partnerships in order to amass and replicate the best international practices. How can international experience be used to boost the productivity of Russian companies in a globalizing world economy?
The best Russian and international practices and projects for the development of social entrepreneurship, education, technology, modern urban environment, and the promotion of the UNs Sustainable Development Goals will be presented at a working session of the permanent international Friends for Leadership group of young leaders created under the auspices of the Roscongress Foundation, which is involved in promoting multilateral projects for economic and humanitarian cooperation. Following this thematic session, a roadmap for the implementation of new technological projects discussed at the session will be developed, and the Friends of Cities, created for sharing best practices for the purpose of fostering further cooperation, will be launched.
Energy demand will continue to grow over the coming decades, and with it, demand for gas. Recent studies indicate that around 50% more gas will be needed globally by 2040. At the same time, however, European gas production will fall by about 40%. This will mean that Europe will have to import around three quarters of its gas via pipelines and LNG. In order to meet the EUs climate goals, Germany already Europes largest gas consumer plans to phase out all coal-fired power plants by 2038. This decision will increase the need for gas still further as the EU seeks to ensure access to secure, sustainable, and affordable energy. Russia has the largest natural gas reserves in the world. These can help fill a major part of Europes growing import gap, and at a very competitive price. However, the issue of Europes energy supply has never been as geopolitically charged as it is today. Political interests and decisions seem to take precedence over economic necessity and climate protection. Indeed, instead of welcoming member states decisions to further reduce their carbon emissions, the EU and individual member states have attempted to block viable supply solutions, purely out of political interests. This complicates the picture in the European gas market. How will an economically and ecologically feasible energy mix for Europe look in the future? How will Europe navigate the dynamics of the market to achieve the best possible mix? Why does Europe need additional pipeline capacities to transport gas from Russias vast gas fields? How will Russian gas and LNG compete to provide energy security for Europe? What strategic advantage does Russian gas offer Europe? How does Nord Stream 2 fit into the EUs energy strategy?
Government of the Russian Federation faces the task of implementing 12 national projects of strategic development by 2024. This means new regulation and organizational technology as well as budgetary expense. Such transformations always carry risk as usual practices change and adaptation to the new rules takes time. Besides, achievement of quantitative indicators set by the national projects may result in lower quality of state services and eventually, in social tensions. What are the ways to mitigate such side effects and keep the stability while reaching the goal? Must the reforms have unpleasant collateral effect, or can they be beneficial for the whole society?
Social Communications of Business as a Driving Force for Positive Social Change
Sustainable development has taken over from digitalization as the latest global trend. Generation Z the most responsible generation in history is emerging from the wings. This group is exerting a positive kind of pressure on companies around the world, voting with their wallets for brands which reflect their own views and values. People in Russia are similarly worried about economic and social threats, and believe that positive change is essential. However, the number of those who are willing to donate something to help enact these changes is only around a third of what it is in Western countries. This has meant that there is a new and important impetus in Russia for companies and brands to lead the process of sustainable transformation. It is their role to spearhead structural change and inspire, and to bring the customer with them as they do so, thereby encouraging individuals to think and act in favour of positive change.
‒ How does a brand identify and determine their aims, and effectively incorporate them into their long-term business and marketing strategies?
‒ How can one overcome the scepticism of those who do not believe in the possibility of change?
‒ How can one learn to harness the power of brand communication and lead people?
‒ How can one change the world and earn more?
Presentation of the Results of the Russian Regional Investment Climate Index
Since 2014, the St. Petersburg International Economic Forum has been the traditional platform for presenting the results of the National Regional Investment Climate Ranking. Since its inception, the National Ranking has proved to be effective for evaluating the efforts of the authorities at all levels to improve the business environment, and its results stimulate competition for investment at the regional level. Which regions have managed to show dynamics in the rating? What is the secret of success of the regions that have maintained their prime position in the rating for five years? How can the business community participate in the work of the territorial project teams?
Innovative development of the pharmaceutical and biotech industry in Russia: keys to success
Russian scientists have already demonstrated their successful medical and biotechnological projects to the global scientific community and business. Achieving leadership in this regard means developing broad internal expertise in managing R&D, shaping a culture of development within startups, having sources for their funding, integrating into the global network of joint research projects, developing ones own expertise, and focusing on the international market. A successful triple helix innovation concept has emerged in global practice, which entails collaboration between the government, research centres, and business. Global pharmaceutical and medical companies are increasingly employing a model of open innovation when creating and commercializing new products. What are the most successful models of innovation at pharmaceutical and medical companies? Which of them could be most effectively implemented in Russia? What is the role of the state and development institutions in creating conditions to realize the potential of advanced innovative development? How can investments be raised for Russian developments? What problems do developers and investors face? What are possible solutions?
Collaboration Between Private and Public Sectors for Achieving SDGs
Sustainable Development Goals (SDGs) are at the core of the global agenda with the three major interrelated elements economic growth, social integration and environmental protection. Everyone has a role to play in achieving the 17 universal, comprehensive, and transformative goals, and the interaction of business and government has great potential to advance these goals and to achieve them worldwide.
In Russia, the number of companies that commit themselves to supporting growth and achieving specific SDGs has been increasing. At the same time, the leaders of the private sector publicly advocate for the government to take a more active role in promoting the SDGs and supporting related initiatives and projects.
‒ What is the place and role of business in the process of sustainable transformation? How can business interact with the state within the framework of the Sustainable Development Goals?
‒ What is the role of the state in supporting the achievement of the Sustainable Development Goals? What resources can the state attract to improve the efficiency of work in this direction?
‒ Are Russian companies ready to support the sustainable development Agenda and to make it a long-term business priority? How can businesses integrate SDGs into their business processes while increasing profits?
The Money of the Future: New Challenges and Opportunities
Financial markets are at the peak of the transformation process and exert increasing influence on the development of the digital economy. Key changes include the creation of new ecosystems, strategic alliances, and innovative start-ups. New services are created on the basis of platforms for remote identification, fast payment systems, Open API, financial products and service marketplaces, and new platforms based on distributed registries and cloud technologies. What will the financial markets and services of the future look like? How can one ensure equal conditions for all market participants and promote competition in the financial sector? What trends in the financial technology market will become catalysts for the most significant changes?What fintech projects will be the most successful?
One of the strategic objectives of the Russian government is to raise well-balanced and socially responsible individuals using high-quality and affordable education. Education infrastructure requires investments as well as modern teaching methods and technologies to achieve a new quality of human capital. What are the main development trends in this sphere in Russia? How can digital technologies help to provide equal access to education? What is the role of business and non-profit organizations in this process? How can funding for education be increased?
Protection of Investor Rights as a Catalyst for Economic Development
Amid the growing protectionism and dynamics of global markets, Russia has a unique opportunity to attract foreign capital. New projects such as the Northern Sea Route and emerging offshore zones have the potential to alter the structure of the global economy. Russia can and should use these factors to accelerate the development and implementation of national projects. To fully take advantage of these trends, Russia must address such issues as ease of doing business, the maturity of the regulatory framework, the protection of the rights of citizens and investors as well as the development of a legal basis for new areas of economic activity, in particular the regulation of artificial intelligence. Creating conditions that are favourable to economic development, especially against the backdrop of sanctions, is a national priority in which Russian President Vladimir Putin has assigned a special role to law enforcement agencies. How can the flaws in the national legal system be overcome? What are the latest law enforcement trends as it relates to economic crime? How could the new platform currently under development by business associations and organizations help with reporting cases of pressure on businesses and monitoring the review of such cases on their merits? How could the latest legislative initiatives protect investments? What changes does international business expect to take place? How can we take into account the worlds best practices to attract foreign investment and protect intellectual property? What legal incentives can be used to encourage the return of capital that has left the country and the return of entrepreneurs who have changed their tax residence?
Global Energy Sector: Challenges and Opportunities
Global energy markets are constantly transforming and the structure of energy demand is changing as well. According to experts, a slowdown in current and projected rates of global economic growth, increased energy efficiency and phasing petroleum products out of other types of energy resources may lead to a peak in oil consumption in the next 1520 years. In addition, the role of natural gas as the cleanest fossil fuel and renewable energy sources will continue to grow in the future. All of this is already exacerbating competition on the markets and forcing industry players to enhance the appeal of their oil production projects by drumming up capital inflows and the development of new technologies as well as diversify their project portfolio. What should Russias strategy be on oil and gas markets in this regard? Where is the sweet spot between the option of maximizing investment in oil production and striving to increase the market share and the option of continuing intense cooperation with oil producing countries to limit production? Should we expect another long period of low oil price given the lack of cooperation using the model of the OPEC+ deal, on the one hand, and the increased investment in oil production in anticipation of the peak oil, on the other hand? What are the ambitions of gas market players? What opportunities do global energy markets offer for cooperation and joint promotion in the international arena?
Major sporting events require both large-scale investments in construction and the modernization of sports and tourism infrastructure as well as a considered approach in preparing cities for an influx of tens or hundreds of thousands of out-of-town and international supporters. In 2020, twelve cities of the Old World will host the European Football Championship timed to coincide with the 60th anniversary of the continents first football championship. One of the tournaments host cities is St. Petersburg. How can a city make the most of hosting an international sporting event? How can safety be ensured without inconveniencing residents and guests? How can the excitement of the fans be controlled and a festive atmosphere created? How can the life of sporting facilities be extended beyond that of the competition and their operation be made efficient and profitable?
A significant technological shift is taking place in global retail markets where international giants such as Amazon and Alibaba are transforming the industry and becoming leading players in fields that are unrelated to retail trade. Traditional retailers around the world are being forced to carve out their own paths and solutions to remain competitive and rival these global giants. Russian retail is also changing rapidly, following global trends, and the country has become a global leader in terms of the growth of online shopping, while consumers are taking up the expanded use of digital technologies in shops. As a regulator, the state plays a crucial role in stimulating the development of new technologies creating favourable infrastructure as well as tax and regulatory frameworks to ensure effectiveness. What is the future of retail given the current global trends? What steps are retailers in developed and developing markets taking to counter the growing dominance of major online players and adapt their own business models to the rapidly changing behaviour of consumers? How could the Russian digital retail industry create an ecosystem that can compete with global players? What measures is the government taking to improve the effectiveness of the retail market?
The Impact of the Natural Gas Engine on the Economy and Climate
Over the past 50 years, natural gas has revolutionized the worlds fuel market for electricity and heat generation. Gas will continue to maintain its long-term competitiveness in this market amid growing environmental requirements. A new area for the large-scale application of natural gas over the next 50 years will be the transport sector. The high octane number and the environmental properties of natural gas make it possible to create highly efficient vehicles with low overall emissions. What might the global market be for natural gas fuel powering motors by 2050? What investments can be expected in the development of LNG infrastructure, engines, and related innovative technologies? Which technologies and fuel types will be the main competitors to natural gas-powered motors?
Latin America–EAEU: non-protectionist and restrictions-free interregional cooperation
One of the key priorities for the international economic relations of the EAEU with the economies of Latin America and the Caribbean is the development of trade and economic relations free of barriers and the establishment of effective mechanisms for open dialogue to address the business climate in both markets. What could help boost the expansion and diversification of trade and investment flows? Given the constantly changing nature of the global business environment, what strategies should the Russian and Latin American business communities adopt? Is free trade between the two regions a realistic prospect at a time of increasing protectionism trends?
The stable and steadily developing Russian-Chinese strategic partnership is a model for intergovernmental relations today. Providing clear, convenient, and predictable conditions for investors and exchanging best practices will help accelerate the implementation of joint large-scale projects in infrastructure, energy, high technology, and other sectors. What further steps should be taken to double trade turnover? Will the ambitious plans to step up direct Chinese investment in the Russian economy come to fruition? How do we see RussianChinese economic relations by 2035?
Integration vs. Protectionism: The Role of Development Institutions in the Creation of a Common Economic Space in Greater Eurasia
The world is currently facing a turning point, the likes of which it hasnt seen in decades. A unipolar global mindset is being replaced by a multipolar world led by Asian and Eurasian economies, demonstrating both diversity and justice of the new world order. Russia maintains the possibility of a fruitful partnership with the European Union. Moreover, by deciding to involve the EAEU in Chinas One Belt, One Road initiative, Russia is proposing a large-scale Eurasian partnership, thus proving its mindset of a modern superpower. Eurasian and Asia-Pacific countries are becoming increasingly interdependent in their socioeconomic development. As a result, integration processes are gaining momentum in various formats, despite hurdles such as trade conflicts, relapses into unilateralism and protectionism, political differences, attempts to fragment the economic space, and sanctions rhetoric. The globalization projects that have gained ground over the past few decades are now faltering under increasing protectionism, which is often masked as solidarity between Euro-Atlantic partners, each of whom are pursuing their own separate economic goals. Can the national and multilateral development institutions of Greater Eurasia break down the walls of economic isolation and help form a common space for harmonious growth on a continental scale? What is their role in harmonizing and implementing various integration projects? What infrastructure, industrial, and trade projects require the expertise and resources of Eurasian and Asia-Pacific development institutions? What foreign and multilateral development institutional experience can be used in implementing Russian national projects?
Human + Machine: Business in the Era of Artificial Intelligence
New combinations of digital technologies led by artificial intelligence are expected to replace 75 million jobs while creating 128 million new ones by 2022. AI digitalizes many processes, thereby increasing their efficiency and improving general labour productivity by augmenting human capabilities, but it also changes the very nature of work, requiring new production processes and different skill sets. Manufacturing without people, autonomous vehicles, chatbots instead of call centres this is the new reality for business. But what about people? AI provides the ability to rethink business processes and the optimal distribution of tasks between human and machine by changing the nature of this collaboration. In this situation business needs to transform and prepare people for fundamental changes. Where to begin? What steps should be taken to rethink existing business models and processes? How can enterprises take maximum advantage of AI and people? How can people be prepared for changes without losing productivity and corporate culture? What new roles and skills do businesses need in order to remain competitive?
Despite the precarious situation in the geopolitical arena, businesses in Switzerland and other European countries have a positive trade balance with Russia. Swiss exports to the Russian Federation have reached 80% of their pre-crisis level and many European companies are showing increased activity in the Russian market. The upgrade in Russias sovereign credit rating by international rating agencies testifies to the stability of the Russian economy. How can the development of bilateral trade and mutual investments be accelerated? What business models are most suited to expand mutually beneficial cooperation? What are the most effective strategies for ensuring successful business relationships in the current environment? What are the expectations of leading businesses in both countries regarding future economic cooperation? What are the prospects for cooperation in new areas such as digital technology?
Self-Regulation vs. State Control. How to Stimulate the Consumption of Legal Content?
By various estimates, Internet penetration in Russia currently stands at about 75% of the countrys adult population (16+) (totalling some 90 million people), while the main trend in recent years has been growth in mobile traffic. When any user can comfortably use Internet content, the problem of piracy is particularly acute. Many countries are either introducing or improving their national anti-piracy legislation. At the same time, the percentage of pirated content in the global network remains high, causing enormous losses to rights holders that are estimated in trillions of dollars. Over the past few years, Russia has developed one of the most effective anti-piracy laws in the world. For instance, legal online video services in Russia reported a 20% year-on-year increase in revenue in 2018, and annual revenue this year might reach RUB 14 billion. A key aspect of effective copyright protection on the Internet is seen as achieving a balance between state regulation and industry self-regulation. In Russia, the first yet extremely important steps in this direction have already been taken by the biggest Russian rights holders and IT companies towards developing and signing a Memorandum of Cooperation in the Field of Protection of Exclusive Rights in the Era of Digital Technology Development, which provides for links to pirated sites to be taken down from search results on a self-regulatory basis. As part of this campaign, along with government agencies, the biggest Russian rights holders and IT companies are actively fighting Internet piracy.
The Architecture of Public Health: International Experience and National Priorities
The decline in infant mortality and increase in life expectancy observed in recent decades are associated above all with the implementation of public health programmes. Experts estimate that at least two-thirds of the increased average life expectancy are a direct result of the successful implementation of these programmes, including increasing road and industrial safety, fighting communicable and non-communicable diseases, reducing alcohol and tobacco consumption, and lowering the level of salt and sugar consumption. This consistent record of success makes it worthwhile to look for new methods and practices that have proven to be effective, with a view to expanding their application on a national and international level. How can we bridge the gap in healthcare access in developed and developing countries? Is the creation of a universal model of the public healthcare system a viable possibility? What innovative international practices would be the most effective if implemented in Russia? How can we cultivate this culture of health that we have heard so much about in recent years in Russia?
The interest shown by Russian and German businesses in implementing joint projects remains strong, as the position paper adopted in January 2019 by the German Eastern Business Association demonstrates. This document focuses on the future development of close economic cooperation in 15 areas of the economy, ranging from digitalization to cooperation in space. Representatives of Russian and German business communities will share their experience and exchange views on how modern, innovative enterprises in Russia and Germany can work together to enhance their competitiveness at the international level, thus giving a new impetus to the idea of a common European economic space.
Investing in Russia’s Future: How Can National Projects Become Attractive to Investors?
The accelerated development of Russia through the implementation of national projects requires the active involvement of business, while offering unique investment opportunities. National projects are taking public-private partnerships to a new level, creating infrastructure for effective collaboration and the availability of major projects. A number of portfolio companies that occupy leading positions in various sectors of the Russian economy as well as a wide range of foreign co-investors and partners are involved in this work. What effects can already be seen? What opportunities have been created and which mechanisms have been the most effective?
Creative Economy: Strategies for Promoting High-Tech Exports
Russia has always been a centre of creative ideas. Tolstoy, Dostoevsky, Fabergé, and Diaghilev changed the perception of the Russian cultural product forever and paved the way to the global markets for new generations of creators. Today, the products released by creative industries are among the most promising areas of export development. Russian companies are already competing successfully in IT, cinema, animation, engineering, design, and virtual reality. Next come major infrastructural solutions to support the growth of creative economy in Russia: improving the legislature, designing industrial development programmes, introducting creative hubs, technoparks, and virtual special economic zones, launching education platforms to name a few. What successful development tools and measures to support creative product manufacturers have been applied internationally? How can corporate development strategies and government support measures be combined effectively? How can we create an environment for the successful development and export of creative industries and make Russia an attractive destination for producers?
Swedish business sees Russia as having huge potential in various spheres and recognizes its strengths. Declaring a technological breakthrough as a top priority for Russias development is of utmost importance. Russia can rely on its outstanding human capital and quality technological education, and it has all the prerequisites to be a leading global economy. In this context, joint projects between Swedish investors and Russian partners are coming to the fore, allowing participants to boost ties and share experience in the field of innovation. The further intensification of the intergovernmental dialogue and removal of the existing obstacles to regular contacts in this sphere will be of strategic importance for developing economic ties between Russia and Sweden and ensuring a technological breakthrough. What measures are needed to support and accelerate the development of cooperation between Russia and Sweden? How can the federal government and regions further motivate Swedish companies to continue investing in Russia? How will Russia and Sweden find common growth points to enhance their cooperation?
Russian-Indian relations are characterized by intensive economic and political collaboration, with businesses exhibiting growing interest in entering both Russian and Indian markets. Priority areas for RussiaIndia trade and economic cooperation include energy, metallurgy, car manufacturing, and aircraft construction. In 2018, Russian-Indian trade reached nearly USD 11 billion, an increase of 17.3% over 2017. Bilateral regional cooperation is also gaining momentum and demonstrating great potential for becoming a key factor in strengthening trade and economic ties. «We have every opportunity to move forward consistently, consolidating the economic foundations of our relations. For this purpose, contacts in all areas must be boosted», Russian President Vladimir Putin stated. The leaders of the two countries have set the goal of expanding bilateral trade from USD 10 billion to USD 30 billion by 2025. Yet there are still a number of restrictions and barriers that have to be overcome in order to achieve these goals. What immediate steps should be taken to take Russian-Indian relations to a new stage and what are the trends for deepening and developing cooperation at all levels?
Export Potential of Russian Pharmaceuticals: In Search of Growth Points
The main tasks of the Strategy for development of the pharmaceutical industry of the Russian Federation for the period up to 2030 (Pharma 2030) include increasing exports of pharmaceutical products. According to forecasts by the Russian Ministry of Industry and Trade, by 2030, exports of Russia-made pharma products could demonstrate a five-fold growth if state support measures are implemented. Which support measures are needed to reach the set goal? What is hampering exports of Russian medicines? How can the state support the domestic producer? What else do Russian manufacturers need to grow their export potential?
Barriers to export of Russian pharmaceuticals
Differences in other countries regulatory requirements for registering medicines and launching their sale on the consumer market
Range of medicines and priority sales markets for Russian medicines
Administrative and/or financial support measures by the state
Prospects for alliances of domestic producers with international pharma companies for joint promotion on overseas markets
East Bound Innovation Contest Part Two. The Asia-Pacific countries
Roscongress, VEB Innovations and the Skolkovo Foundation are teaming up to provide Russian start-ups with an opportunity to tell foreign investors about their projects. This time the contest will look to support development in the field of artificial intelligence. Ten teams of finalists will present their projects to a jury consisting of major investors from the Asia-Pacific region. Pitch sessions will be organized on a geographical basis: major investors and businessmen from China will take part on the first day with the Asia-Pacific contries on the second. At least five investors from the Asia-Pacific region with capital from USD 100 million to 1 billion are expected to sit on the jury.
How Volunteers Can Help Save Lives: Expanding Bone Marrow Donations in Russia and Throughout the World
Making 2019 the year of the volunteer in Russia has improved the image of the volunteer movement and contributed to growth in the number of volunteers working in the country. However, the end goal is to make volunteering an integral part of the life of every person. A traditional part of volunteering that needs to be popularized is donation, including bone marrow donation, which, according to expert estimates, requires at least 500,000 responsible volunteers. The help of strangers ready to become donors brings the hope of recovery the sick and suffering. That is why it is important that the donor movement unite efforts with the authorities, the professional community, public organizations, the media, and business.
‒ What is the current situation in the country in regards to bone marrow donation? What are the objectives of the Ministry of Health?
‒ What organizational and ethical aspects exist in the development of donor volunteering?
‒ What are the prospects for creating a bone marrow donor movement in Russia and the role of community organizations, businesses, and the media in the development of bone marrow donation?
‒ How can we put international experience to use in attracting bone marrow donors and working with volunteers?
‒ How are transplant centres developing in Russia?
The modern industrial policy of a metropolis consists of a broad concept that goes beyond the strategy of improving the competitiveness of individual companies and sectors.
The government views creation and support of specialized industrial infrastructure in a metropolis as the main catalyst of a city, which enables enterprises and people to acquire new opportunities to accelerate growth and socioeconomic development. In addition to expanding the capabilities of the innovative technological ecosystem through a number of targeted strategic initiatives and a standard set of benefits, special economic zones and technology parks need to take into account the importance of such factors as the availability of the required engineering infrastructure, a potential sales market, raw materials, labour resources and logistics. How do you create the largest research base in a city and transform the results of innovative research into advanced market products and solutions? How do you ensure success in commercializing the innovations of partner companies and developing their markets locally and internationally? What measures should be taken to attract high-level specialists and provide a comfortable environment to work and live in?
Industrial growth strategy. Enhancing competitiveness and promoting innovation through industrial policy
Sustainable urban development and economic performance. Are benefits a form of lost profit or tax revenue from investments attracted in the future?
Industry specialization and manufacturing formats in metropolises
The role of industrial infrastructure in solving social problems
Infrastructure solutions and the legal framework. What can help ensure the inflow of investors and capital?
Business expectations and demand. What requirements do residents have?
Development of urban industrial sites and special economic zones. Global trends
“Pitch Session for a Billion”. Business Priority Competition for Innovative Start-ups
The Roscongress Foundation together with the International Fund for Technology and Investments, the Digital Economy Development Fund, and the RK-Investment Fund have teamed up to create the Business Priority Competition. The competition expert council will select 10 leading start-ups for a chance to attract up to a billion roubles in funding from the largest venture capital funds during the Pitch Session for a Billion.
Human Resources for the Transition to the Economy of the Future
Globalization, the pace of technological development, and demographic trends have had a major impact on the labour market and the demand for skills and the speed of learning, where the linear process of education can no longer meet these demands. New technologies appear so often that the competencies and knowledge acquired are obsolete by the time a diploma is awarded. This is leading to a change in the paradigm of the labour market moving from training staff for the current economy to developing human capital for the economy of the future. Different economic models have different training requirements. Which tasks and tools are relevant for different economies and macro-regions? What best practices and solutions can form the basis of the global labour market and human capital development ecosystem? What tasks can only be fulfilled jointly and what are the opportunities and trends in international cooperation as it relates to human capital?
‘Regulatory Guillotine’: A New Look at Old Requirements
In his Address to the Federal Assembly in February 2019, Russian President Vladimir Putin set the goal of radically revising the mandatory requirements that entrepreneurs and state-owned companies must observe in their operations. Many of these existing mandatory requirements are outdated and have not been reviewed for over 20 years. The regulatory guillotine mechanism allows for excessive and ineffective regulation to be eliminated. A wide range of individuals, including representatives of the business, scientific, and expert communities, will be involved in revising Russian legislation. An analysis of the international experience of using the regulatory guillotine method indicates that the methods for carrying out such a reform are universal. Where should revision of the law begin? What obstacles arise in implementing the regulatory guillotine mechanism and how have they been dealt with abroad? How will business respond to the impact of the upcoming review on the administrative burden?
National Development Goals: Key Issues in the First Year of Work
Work to deliver the national development goals defined in the May Presidential Decree has been going on for over a year. National projects have been developed and their practical implementation has begun. A unified government plan was approved to achieve the targets set by the Russian President by 2024. Has enough been done? What problems and risks have become apparent following the first year of work? Are the regions ready to adapt to work in the new environment? Is business ready to take an active involvement in this work to deliver the national goals?
Geopolitical turbulence, trade restrictions and economic sanctions continue to undermine trade and economic relations between the United States and Russia and hinder mutually beneficial investment cooperation. During this volatile period business has continued to evolve and has remained one of the few healthy areas of relations between the two countries. How are American investors evaluating the business climate and prospects for their business in Russia? What challenges have they faced and overcome when implementing projects in Russia? What is Russias role in the global value chain for the multinational today? What are the optimal models of relations in different sectors of the economy as seen by the companies today? Which are the most important sectors for the Russian companies to develop their business in the United States, which could contribute to the growth and stability of both economies?
Business in National Development Projects: Ways to Succeed
In the face of growing geopolitical tensions and the erosion of established rules-based trade and investment mechanisms, national development strategies that focus on domestic growth are becoming increasingly important. Whatever the scale and objectives, such strategies must respond to major universal challenges, such as rapid urbanization, digital transformation and sustainable development. The success of strategies in removing infrastructure constraints, creating conditions for green growth and improving peoples lives is largely determined by the ability to attract private capital and expertise. What tools can business use to participate in national projects? What are the best practices for implementing state development projects? Will the implementation of development strategies in individual countries become a driving force of national economies and a factor that supports global growth?
The Venture and Stock Market in 2019–2020: Can Unicorns Survive IPOs and Continue to Growth?
The coming year promises to be an eventful one, with IPOs being undertaken by major American and Chinese start-ups. More than 20 unicorns are planning to take this step in the near future, including Airbnb, WeWork, DiDi, and Uber. Lyft, Pinterest, Zoom have already launched their IPOs. However, expectations and often be misguided: as some companies grow in value, share prices in others fall. What factors are behind fluctuating share prices, and how is the situation likely to unfold in the future? How justified are market evaluations of companies? In which segments can we expect to see most activity from investors?
We can create visible accomplishments in terms of creating a truly comfortable urban environment only through uniting the resources of the State and the private sector. Notably, the focus lies in equal parts both in financing the projects as well as in the competence provided. The federal government pointed out the high priority of the urban environments development and devoted resources to the goal as part of the national project Housing and the Urban Environment. Active and thorough co-investment from the private sector is required for the maximum usage efficiency of such resources. This would allow both producing more of the comfortable urban environment and managing its development in the most flexible way. Is there a political will among the government towards a structured partnership with private sector for achieving the results in this direction? What are the tools for deposit of the private investments into the urban environment? How do we stimulate the private sector to invest into the city infrastructure? What are the outcomes of the comfortable urban environment for the private sector, the State and the community?
2019 should be a historic year in the development of Russian-African relations. The summit of heads of state in October should take place amidst record growth in Russian exports to Africa. Russia is interested in new markets and international alliances more than ever before, while Africa has solidified its position as one of the centres of global economic growth in recent years. In this context, the countries need to rethink the approaches, mechanisms, and tools they use for cooperation in order to take their relations to the next level as their significance grows in the new conditions of world politics and economics. What steps are needed to give a new impetus to bilateral economic relations? What are the key initiatives and competencies that can create a deeper strategic partnership between Russia and African states?
In 2017, Russia declared the next ten years the Decade of Childhood. In his Address to the Federal Assembly in early 2019, the Russian President set the course of providing targeted, needs-based assistance to families with children. What projects providing assistance to children have already been implemented by private Russian charitable foundations? What are the available support mechanisms for charitable projects in the social sector? What are some of the challenges faced by charities? How are new approaches to publicprivate partnerships in charity being implemented as part of the Decade of Childhood initiative?
Science does not stand still. Constant discoveries, new developments and technological innovations continue to raise the bar for even greater achievements in the future. Every year, scientists around the world make new breakthroughs that can improve life on Earth and change our perception of reality. Such events remind us of the incredible things that the human mind is capable of. New information technologies and artificial intelligence and the achievements in genetic engineering and biotechnology promise to radically change our entire way of life once again. The lofty belief that science is capable of solving if not all then a great number of problems facing humankind and significantly improving the quality of our lives works on the assumption that science plays an equally lofty role in the creation of a model of sustainable development a model for meeting the needs of the current generation that does not cause damage to the future. Are there any limits to growth when we talk about development? Where are the boundaries of the possible that we must discover in the near future? To what extent do the concepts of growth and development go together with ideas about the sustainability of the environment, the economy and society? And to what extent do external factors influence this? And is it true that science can provide the answers to all our questions?
A Strategic Pathway for Energy Companies in the Platform Economy
The transactional sector of developed countries economies is estimated at 70% and has demonstrated steady growth in recent decades. The focus is shifting from the basic sector of the economy to the development of digital platforms. Over the next five years, 5% of all S&P 500 companies are expected to be digital platforms, with these 2530 platforms accounting for about 50% of the total net profit of the companies on the list. Energy companies are the infrastructural pillars of economies, which has historically been an advantage. But with the growing importance of the platform economy, the significance of the energy pillar could be limited. What is the new direction of development for the energy sector in the era of uberization, and how can energy giants adapt to and capitalize from this new market framework?
A Recipe for Global Competitiveness for Russian Industry
The success of a high-tech economy is determined by the global market enabling creation of large, competitive companies and allowing the return on investment in next-generation technologies. Russian policy makers have particularly emphasized the need to accelerate high-tech exports. In the digital age, Russias competitiveness depends on its ability to stake its claim across a number of key global technological platforms. How is Russias high-tech export potential seen by the customers and where are the key markets? What are the main challenges to conquering the high-tech markets and what forms of partnerships are possible in this sector? What support mechanisms are most effective for high-tech exports?
Creating innovative medicines and new horizons in healthcare
A couple of hundred years ago, pneumonia and appendicitis were a fatal diagnosis and surgeons had no idea about the need to wash their hands before surgery. Medicine is moving forward alongside technological progress. Infectious disease epidemics are becoming a thing of the past, giving way to new, previously unknown diseases, for which neither treatment nor their consequences are yet fully understood. Today, advanced technologies not only allow for unique surgeries and diseases prevention, but also new treatments. One of the goals of the National Medicines Policy 2030 is to develop domestic innovative medicines. The development of a new medicine from the idea to implementation takes more than ten years and requires huge investments with high risks. Biomedical cell products (BMCP) have become a new driver for the global medicine market. Russia has already undertaken vast research and development in this field that might allow it to overtake the U.S. and the EU in terms of BMCP output over the next few decades. What are Russias priorities for developing new medicines? Which agency should manage the programme for the development of innovative medicines? What measures of state support and stimulus of commercialization are needed for the BMCP industry and the creation of innovative medicines? How attractive are investments in biomedical cell technologies? Will cell products become the magic pill to combat 21st century diseases?
The private sector has always been a source of new ideas and the driving force behind economic growth. As technologies develop, they reach wider audiences, which in turn stimulates further development. Users of all ages are increasingly getting used to the fact that digital ecosystems are changing their way of life and presenting day-to-day services in just one click. Major industrial companies have embraced artificial intelligence as they strive to boost production efficiency and roll out smart solutions. Meeting expectations is no longer sufficient. Competition between digital ecosystems has led to a situation where anticipating customer needs and offering solutions to tomorrows problems today is of utmost importance. While building upon the essential services we use every day, companies also invest in technologies of global significance, all the while transforming the current consumption model. As B2B companies adopt B2C technologies and vice versa, they simultaneously make B2B technologies available to a wider B2C audience. How can the digital leaders of today remain relevant with the rapid technological change? How do companies attract the best talent and set market trends? How to spot a new trend and implement it? How to support a corporate culture relevant to our times and develop personnel? Which skills should be cultivated in employees? What are the main challenges digital ecosystems and industrial players face? How should businesses work effectively with start-ups?
The entertainment industry is developing rapidly throughout the world, including such creative spheres as film production. Today, the film industry is a profitable area for investment where income can be generated over the years. More recently, the development of the film industry has been increasingly influenced by new production technologies as well as innovative ways in which video content is sold, including the emergence of new, unconventional solutions for the monetization of films. How does cinematic progress contribute to regional development? What government support measures are needed to stimulate the production of regional films?
Immunization saves 2 to 3 million lives annually. In developing nations, vaccinations reduce the burden of a number of infectious diseases, making it one of the most effective types of investment in healthcare. The WHO says the use of vaccines can limit the spread of antibiotic resistance. However, according to recent studies, bacterial viruses could be a serious alternative to the use of antibiotics. Healthcare strategies are transforming and there have been changes in the amount invested in different areas of biomedicine. In recent years, many innovative vaccines have appeared that aim to prevent disease and maintain the health of the adult population since a weakened immune system is an inevitable part of ageing. A logical consequence of this has been the emergence of the concept of life course immunization, which is actively used in developed countries and aims to create a unified integrated approach to human vaccination throughout life. In addition, more and more charitable funds are being created to provide children and adolescents with vaccines. How can we ensure multilateral communication and trust in implementing immunization programmes? How can the prevalence of antibiotic resistance be controlled with vaccines? How can we improve the quality of vaccines in developing nations? Can bacterial viruses become an alternative in the fight against infectious diseases? Could lifelong vaccination become the new norm along with a healthy diet and not smoking?
Generational Change and New Technologies: What Will Philanthropy Look Like in the Future
Charitable organizations and their projects are attracting new resources and the attention of the authorities, media, businesses, and ordinary citizens and turning into a driver of social change. The demands made of funds, the professionalism of specialists employed in this field, and the level of self-regulation within the sector are increasing. In addition, the emergence of PhilTech a separate branch of information technology used in philanthropy and to solve social problems indicates that charity has firmly entered the era of digitalization.
‒ Are all participants of the sector ready for these changes?
‒ What opportunities and risks do information technologies create for the charity community?
‒ How do philanthropists themselves see the future of Russian philanthropy?
‒ How can one promote the development of charity in a positive way?
Address by the President of the Russian Federation Vladimir Putin
Address by the President of the Peoples Republic of China Xi Jinping
Address by the President of the Republic of Bulgaria Rumen Radev
Address by the Prime Minister of the Republic of Armenia Nikol Pashinyan
Address by the Prime Minister of the Slovak Republic Peter Pellegrini
Address by the Secretary-General of the United Nations Antonio Guterres
Improving the Financial Culture: How to Ensure Public Confidence and Improve the Availability and Quality of Services
The financial literacy index of the population of the Russian Federation, calculated in accordance with the OECD long-term method, comes to 12.1. According to this indicator, Russia continues to occupy the 9th position among G20 countries. Improving the financial culture of the population is a complex process that includes improving financial literacy, the availability of financial services, their quality, and confidence in the entire industry.
‒ What are the most effective ways of promoting financial literacy?
‒ What are the main aspects and issues related to the protection of the rights of financial services?
Coordinating Efforts: State, Business, Private Foundations, and NGOs for Children in Need of Help
Modern collaboration requires changes in the usual patterns employed for organizing childcare in various difficult life situations. There has been a significant shift in institutional activities in terms of protecting the interests of children. National projects today move towards more effective help for children. Best practices accumulated by both private and public structures possess great potential for broadcasting. A transformation in the role of the state in social support for children, subsidizing of programmes and projects, resource cooperation, and pooling of efforts will all bring overall improvement in everyones best interests.
‒ What factors will determine the success of collaborative efforts between the state and private sector?
‒ What will serve as the basis for a partnership in childrens best interests?
‒ What measures will advance the joint agenda in the near future?
‒ What could be the most effective models and formats for cooperation between sectors?
‒ Digital models of joint activities: pros and cons
‒ What future awaits us a portrait of success
The Diseases of the Century. Can Cancer be Beaten?
Medicine is rapidly advancing, and technical progress isnt standing still either. The days of the epidemics of infectious diseases that destroyed entire cities in the Middle Ages are gone. Surgery has achieved great results in organ transplantation. Technology has made it possible to carry out comprehensive health diagnostics and perform operations using a laser. Pharmaceuticals will continue to improve and new medicines to be invented. Unheard of diseases have appeared, the consequences of which have not yet been fully investigated. The deterioration of the environment and many psycho-emotional influences have altered the old forms of disease and exacerbated them. Cancer has turned into the disease of the century.
In Russia, work is underway on the federal Fighting Cancer project, the purpose of which is to increase life expectancy. Nuclear medicine today is one of the most rapidly developing and promising areas in modern oncology that offers a wide range of possibilities for personalizing both diagnosis and treatment. The process of import substitution, both in the production of domestic technology and in the development and marketing of domestic radiopharmaceuticals, is subsequently key. What is more profitable to develop domestic production or import foreign drugs and technologies? Will new domestic pharmaceuticals and medical products appear? What is the role of public corporations in financing basic and applied research in nuclear medicine? How can we ensure the transfer of new technologies within Russia?
Lessons Learned: Reflections by Top Managers on Business Failures
How many failures can one businessman endure? Exactly as many needed to learn how to react to them correctly, draw the necessary conclusions and realise valuable lessons. It is difficult to completely avoid failures in business as well as in life. And we most often perceive them as signs from above that we must give up everything. But mistakes are the surest path to success. They can give more than any hopes for the best. Failures help you become better, revise your personal and professional values and to look at yourself and your business from the outside. It is easier to talk about success stories than about failures. Because it is necessary to recognize failures and learn from them. And then not to be afraid to share them with others.
Reforming the Russian Fashion Industry and Its Economic Potential in Domestic and International Markets
The Fashion industry is one of the fastest growing sectors of the global economy, with annual turnover exceeding USD 3 trillion. The industry is undergoing a profound transformation stemming from radical changes in consumption patterns and the explosive pace at which technology and design are evolving. This has led to a constantly growing interest in the industry by investors worldwide. Moscow has been increasingly attracting leading names in fashion and design, which strengthens Russias potential of becoming a global fashion centre built on new names and young talent. The transformation of this industry has enabled the growth of a whole army of new brands and designers, who are applying new principles to their relationships with customers. Niche and sustainable fashion, personalization, responsible consumption are some of global trends that have made their way to Russia. Young designers, fresh out of fashion school, have become pioneers of the fashion industry 4.0. In 2019 the Moscow Fashion Fund was founded with an aim to reduce barriers and restrictions covering aspects ranging from local production to entering foreign markets. The Fashion Fund has brought together resources of market leaders, enabling a more effective communication on the regional and federal levels, as well as providing support for Russian talent abroad. What is the business potential of Russian designers in domestic and foreign markets? What are the key objectives of the Fashion Fund in reducing barriers and supporting growth of the fashion industry in Russia and abroad?
The Search for Middle Class Stability in a Changing World
Over the past decades, middle income populations in developed economies have seen their income stagnate while the costs of many traditional services such as education, housing, child care, and healthcare have been and are continuing to grow well beyond inflation rates. This has been coupled with job insecurity triggered by the advent of Industry 4.0, AI and robotics, and its potential to eliminate jobs traditionally held by middle class workers (accounting, banking, insurance, general managers, logistics etc. where up to 75 million jobs are estimated to be lost by 2022 alone). Can this lead to the potential spread of the middle class squeeze to major emerging economies, which are currently driving global middle-class growth? While the resulting economic insecurity has already destabilized the body politic of many major developed economies, what are the risks of this trend extending to the emerging markets? What are some of the fundamental steps that can be taken to alleviate middle class angst, and why have traditional political leaders struggled to adequately respond to these long-term trends?
The Potential for Public–Private Partnership in Commercializing Space
Investment in space initiatives and related fields has grown exponentially in recent years, posing a range of questions regarding the rules of governing the activity. How are various roles distributed between the private and public sectors in the worlds leading space nations? What adjustments to the national and international regulation should be made as near-Earth space becomes increasingly crowded? What are the key incentives and key hurdles to attracting private sector to the space industry and what are the prospects for growth of private investment in Russia and elsewhere, given the specifics of development of space technologies? What should be done to fully benefit from investments and when is publicprivate partnership the most effective form of collaboration?
Future industrial leaders are companies which while operating in traditional industries have begun transforming their business to create additional sources of value. These companies can be found in different sectors and have different strategies, yet they share a number of common characteristics. What are the approaches by future industrial leaders to human capital development? What methods do they use to set new industry standards for operational and financial performance? What is their approach to cooperation in innovation? Is the modernization of equipment a key requirement for an industry leader and how will industry leaders of the future interact with customers?
Mega Science Infrastructure to Create the Industry of the Future
Today, the competitiveness of science in Russia is vital to ensuring the independence and global competitiveness of the country. Unique research and innovation centres and mega science facilities are needed to respond to the significant challenges laid out in the Scientific and Technological Development Strategy of the Russian Federation. These research centres will ensure the transition to a fundamentally new domestic economy. A synchrotron and neutron research programme for 20192027 is currently being developed, with the aim of making a scientific breakthrough in this area. This unique research infrastructure is set to become a focal point for developing the intellectual potential of the nation. It will help create the right conditions for the influx of knowledge and technologies from global markets. International scientific and educational mega-clusters can be established at these research and innovation centres, which would attract talented young people from Russia and abroad, as well as Russian and foreign scientists and engineers. What should be the priority area of focus of synchrotron and neutron research to achieve breakthrough results? Which industries are in particular need of advanced infrastructure development programmes? What is the current status and prospects for international cooperation in the realm of synchrotron and neutron research?
The advance of digitalisation is driving fundamental changes in all areas of human life. The rapidly growing amount of information is leading to increasing demand for AI technologies and the high-speed processing of big data. These technologies are not only driving growth in new markets but are also playing an increasingly important role in our society, helping us to find solutions to global problems such as the ageing population, disease control, social stratification and environmental degradation. We are gradually creating a smart society based on the values of empowerment, flexibility and creativity. How will digitalisation help us to overcome global challenges and threats? What are the risks of digital inequality for business and society? What is the impact of digitalisation on business processes and which pressure points does it help to overcome? How can we ensure the digital competitiveness of the Russian regions? How can the state support the development of a digital economy?
The Global Mining Industry: Challenges and Prospects
The history of extracting and enriching mineral deposits is as old as that of humanity itself. A growing population, urbanization, social and economic development, and even the demand for a green and low-carbon economy are contributing to the growing use of minerals and metals. Thus, at the beginning of the 20th century, global production of copper amounted to around 500,000 tonnes. Almost 100 years later, it had exceeded 11 million tonnes and in 2018, production almost reached 24 million tonnes. However, satisfying todays growing demand for these essential materials comes with a range of challenges. Reserves at mines and mineral deposits are dwindling, there is a need to explore and develop new deposits in remote areas, and there are limited resources to extract and enrich commodities, leading to increased costs. All this means that innovations are essential to maintain profitability and ensure the continued production of these resources. What steps are being taken by industry players to effectively explore and develop current and new deposits? How are these solutions impacting companies finances, and to what extent are they helping to satisfy growing demand for raw materials and securing sustainable development? What factors will the industry depend on as it continues to evolve?
Nothing Personal: How to Protect Personal Data From Cyberattacks
According to experts, cyber security ranks third in terms of its importance to humanity, just behind climate threats. Incursions into personal business space and the theft of personal data are some of the most frequent examples of mass cyberattacks. For instance, Indias Aadhar government database was compromised in 2018, which resulted in the theft of 1.1 billion personal accounts. On this occasion, the victims were not only commercial and government structures but also citizens, who often remain defenceless in the face of cyber risks. The increased frequency of such incidents as well as their growing scale is a new source of anxiety for Internet users worldwide and demand greater attention from both corporate and government structures. What makes massive identity theft possible? How do cybercriminals use peoples personal data? How do massive data thefts affect customer loyalty and consumer behaviour? What methods can be used to protect against such attacks? What measures are companies and the Internet portals of government agencies taking to protect their customers from such attacks in Russia and around the world?
Many governments are seeking the most effective measures to address social and economic challenges and minimize the negative impact of human activity has on the environment and health. The effectiveness of the measures often depends on their combination and balance. These include product regulation, licensing, prevention, taxation, preferences as well as non-restrictive and non-prohibitive measures. Solutions should be effective at reducing consumer risks and environmental impact and, at the same time, they should stimulate the development of manufacturing and production without killing off certain traditional industries but, rather, creating competitive economic and regulatory conditions and incentives for the radical improvement and enhancement of production technologies and product quality. Can a systemic approach to regulation become a source of economic growth? How should the differentiated risk-based approach model be applied as a basis for smart regulation? What are the methods for assessing non-economic risks and benefits from switching to risk-based regulation? Which approach is more effective in the context of achieving national development goals: restrictive or risk-oriented? Will smart regulation stimulate the creation of new markets?
Reform of the Construction Industry. Transition to a New Mechanism of Housing Construction
In 2019 the construction industry will speed up its transit to a new housing financing mechanism through bank lending and escrow accounts. This will inevitably transform the construction industry and new banking instruments will emerge. Ultimately, the market will become more transparent, developers will become more reliable, and the problem of defrauded homebuyers will be resolved. What are the challenges that the industry will face over the next three years? What could be done to overcome them? Will the new financing mechanism impact construction volumes and its quality? How will bank lending and escrow accounts change developers business model? What will competition be like for developers? Will lower risk in the industry drive demand for housing under construction?
Identifying Effective Strategies for the Chinese Consumer Market
While consumption continues to grow into an important driver of Chinas overall economic story, in the long term, consumption with Chinese characteristics will be shaped by a booming middle class, an aging population, and a new generation of consumers with unique tastes. Technology and digital innovation, residential and health care expenditures, and changes in disposable income also have an impact. From an international perspective, the cooperation between the Eurasian Economic Union (EAEU) and Belt and Road Initiative (BRI), coupled with the rise of China-Europe Railways, will facilitate cross-border trade and make Eurasian economies an important part of Chinas consumption story. As the economy slows, is China going through a consumption downgrade? How might technology reshape business models to reach Chinese consumers and what should businesses do to address the next wave of consumer-spending growth in China? How can synergies between the EAEU and the BRI generate benefit to consumers across the Eurasian economies?
The Potential and Prospects for Developing the Digital Economy in the Russian Regions
Over the coming years, the Russian economy can be expected to grow through the further digitalization of industries and the emergence and acceptance of new networks and platforms for interaction between business, society and the state. This digital transformation will be tested by the scale of Russias territory, its diversity and differences in socioeconomic development in order to eventually benefit every resident of the country. The systematic and balanced development of the digital economy in the constituent entities of the Russian Federation must be ensured. Can a digital economy be built in a cost-effective manger in non-commodity sectors and regions that require subsidies? What types of federal support for regional digital development projects are envisioned by the Government of the Russian Federation? How can uniform digital transformation be ensured in regions with different potential? How can the successful international experience of regional digitalization be applied in Russia?