That young man and many others I have had the privilege of meeting and working with over the last two decades have inspired the work that we do here at FRAEC – bringing Russians and Americans together to work on common issues and projects to build a safer world.

Although much has changed since my first trip to the Soviet Union, it is amazing that today, twenty years after the fall of the Berlin Wall,  intelligent people will ask me if Russia is going to revert to the old times.  For most people who haven’t traveled to Russia or the U.S., all they know about each country is what they see or read about in today’s media.  And, there are young people in both countries, many of whom were born after the end of the Cold War, that increasingly view each other’s country with distrust or at the minimum, indifference.

The reality is that the people in Russia and America are creating very different stories than what is being portrayed in the media.  For example : the Medical Relief Foundation working with the Vladivostok Ambulance Service saved 22 lives in one year due to their work to get faster response to calls. Or one Sakhalin woman who decided to organize her apartment building owners into an association, a model that was replicated in all parts on the island, and propelled her into the role of an advocate for citizens on a regional and national level. Or the creation of the Lake Baikal Trail, the first national trail system in Russia, built by a partnership between a Russian organization and two US NGO’s involving thousands of volunteers and sparking an eco-tourism industry.  Health Fairs, youth entrepreneurship centers, youth leadership, internet access, and clean water are among the many stories that need to be told and by doing so they will help to eliminate myths and stereotypes in each country.

So FRAEC is launching “The Story Stream Project” to provide a platform for ordinary citizens to tell their stories of how they have made an extraordinary difference in their own communities; helping redefine the U.S.-Russia relationship to meet the challenges of the 21st Century.  These videos will be on an interactive bilingual web site to engage others, increase understanding as well as encourage more collaboration and action in our respective communities. This will also be a resource for high school teachers in the U.S. for use in their classroom, something that is very important at this time.

Working with our partners, the Masters of Communication Digital Media Program and the Ellison Center for East European, Russian and Central Asian Studies at the University of Washington, we have produced our first video to illustrate one such story of collaboration and contribution. I invite you to watch the video and let us know what you think and if you would like to support this project, we would welcome your contribution.

There is much more at stake in the approval of the START Treaty. There will be major costs if it isn’t approved as well as it will be a blow to the US-Russia Reset and the world cannot afford that.

Many can and have argued that trying to replicate a “Silicon Valley” anywhere else will not work. One voice in the mix is Vivek Wadhwe, a tech entrepreneur, academic, researcher and writer, who recently wrote an excellent piece, Can Russia Build a Silicon Valley? He has publicly shared his belief that Skolkovo is destined for failure, and was therefore surprised when asked to present at the recent Global Policy Forum in Yaroslavl, Russia, billed as the “Russian Davos” and hosted by President Medvedev.  In his presentation he highlighted the reasons why  Russia would not be able to build a Silicon Valley, but he admits that Russia is not alone. According to Wadhwe, “no other region in the world has been able to replicate Silicon Valley’s success.”

Wadhwe lays out some interesting steps to address the challenges Russia faces in building an innovation hub.  First  “Russia will need to start leveraging its own strengths to build a unique capability – It is home to some of the best engineers and scientists in the world.” And in Russia engineers and scientists are “often considered national heroes” unlike in the U.S. where they are considered “geeks and nerds.”

At that same forum, other presenters made their recommendations and in one entitled “Birth of a National Innovation System, ” featured in  “Modernization of the Russian economy: from theory to practice”,  the authors make the case that the “Skolkovo Centre becomes not only a point of entry for transnationals into Russia…but also a key hub for the formation of a national innovation network.”

This innovation network, the realization that the growth of innovation can occur not just in special zones, or cities, but at “regional techno-parks, research universities and business incubators at academic institutes,” has been recognized  by the Russian Duma.  An amendment to the Skolkovo legislation would extend the benefits of Skolkovo to all regions in Russia. This point was raised in the Technology Breakout section of FRAEC’s meeting of the Russian American Pacific Partnership (RAPP) in mid-September.  In their report they stated that “the benefits of the Skolkovo initiative be extended to innovative companies in the Russian Far East” as a way to promote innovation.

It is clear that the US and Russia can work together on many levels to expand and grow innovation in Russia. What I found compelling was Wadhwe’s advice to connect Russia’s engineers with their counterparts in the U.S. He ends with “Imagine the good that can come from stronger ties between the engineers and scientists of all nations: new innovations, solutions to world problems, and more jobs and economic growth.”

Now that is something to think about.

Regardless of the challenges, it appears that the government of Russia is listening and acting. Just recently, at the 2010 Yaroslavl Global Forum, the government’s results on energy efficiency were highlighted showing progress.  Under the US-Russia Bilateral Presidential Commission, energy, energy efficiency and clean tech have increased in priority.  Prior to the June 24th meeting of our two Presidents, the Department of Energy and the Ministry of Energy signed an agreement to cooperate on energy efficiency, including focusing on smart grids, clean tech and partnerships between U.S. and Russian businesses.

As I have stated before, there are  opportunities for  Northwest and Russian Far East companies, governments and utilities to collaborate on energy efficiency.  In fact I ended my spring post by saying that it is “worth exploring” and we have. This week we have two very relevant and important events that are bringing our two regions closer together to work on energy efficiency. On September 14-16  in Portland, OR, our 15th annual meeting of the Russian American Pacific Partnership (RAPP) will explore energy efficiency opportunities.  Friday,  five Russian Far East delegates from construction, design firms and utilities  will travel to Seattle for a five-day study/business mission to meet with key organizations that are leaders in clean tech.  We see this as the start of what could be a very strong partnership between our region’s businesses and utilities, so stay tuned.

True this is the largest swap of spies in decades and therefore deserves to be observed and reported; however, the media coverage has been fascinating, to say the least. It has ranged from the amusing, such as the Daily’s show coverage (worth watching by the way),  to more serious coverage, including a map of the timing of the swap on NPR, and much more. And without a doubt  there will be continued analysis of who did what, why the arrests were timed when they were, how the spies are adjusting and what this means for our US-Russian relationship. For me the readiness of both sides to make this swap happen quickly is a clear indication that our increased cooperation and newly “reset” relationship is a priority, which is good news.

Although the Russian spy story has made for interesting and tantalizing media coverage, it has unfortunately stirred up old, cold war feelings of mistrust and suspicion. It is well understood by most Americans that all countries have intelligence services active around the world; however, it seems that Russia holds a very special place in people’s minds. For Russians who live here, this incident has set off a number of reactions so well captured by one blogger, Yuri Mamchur, in his piece: Thanks a lot, Kremlin! For those of us who work to strengthen our economic and community ties, it has been a bit frustrating. There are far more interesting and compelling stories of how Russians and Americans are working together to improve our communities  that do not see the light of day in the media.

The bottom line is that the resolve to improve the relationship between our countries is firm and that we have more work to do to help dispel those lingering suspicions.

Kindering Center, Bellevue, WA

Today I had an opportunity to meet with a former grantee of ours, Mimi Siegel from the Kindering Center. She and I were talking about the impact made on the lives of children and families in the Russian Far East as a result of their partnership with the Vladivostok Center for Early Intervention six years ago. Together they created the first early intervention center of its kind in the Russian Far East to help infants and children from birth to three years with developmental disabilities, as well as to help autistic children between the ages of 2-4.

Vladivostok Center for Early Intervention

As Mimi said, the idea of intervention is very simple – treatment is most effective when administered as early as possible. Scientific research shows that the first two to three years of a child’s life is most critical in the development of a child’s brain and personality.

During their time working together over 178 children and parents came to the center in Vladivostok for evaluation and assistance. Using the concept of express-diagnosis for developmental levels, a method that was replicated from Kindering’s experience, the children’s hospitals were better equiped to refer children to the center.

When I asked Mimi what she considered the results to be from this partnership, she first stated that children and families were being better served in Russia. She also mentioned that they formed long-lasting friendships and  finally that the Kindering team that traveled to Russia, upon their return, were better able to serve the large Russian speaking population in her own community.

Since the launch of this first center two others have been created in Khabarovsk and on Sakhalin Island where they continue to serve families and children today. This is clearly an example of partnerships that make a difference and FRAEC is very pleased to have played a part in their success.

The risk of  ‘Dutch Disease’ will worsen by 2020 and predicts that “Russian oil and gas will run out in 21.9 years and 9.4 years, respectively”. The report states that Russia should turn its focus on innovation in the energy sector.

There are many obstacles to face, including legislative, as outlined in  Forbes,  as well as,  “lack of motivation, lack of information, lack of funding and long-term investments as well as lack of organization and coordination” according to the report.

In spite of these obstacles, Russia’s regions have been pioneers, the UNDP reports.  Laws have been enacted in 43 regions, many have energy-saving programs, and 75 regions have established funds and agencies to work on energy efficiency. In the top ten regions that are considered most energy-efficient, two regions, the Amur Region and Chukotka, are number 5 and 8 respectively,  with the Sakhalin Region coming in at number 17.

This report urges the Russian government to put a real emphasis on energy efficiency on all levels of government. President Medvedev has listed energy efficiency as a key area for modernization in a recent speech to the DUMA. However,  at the moment,  it is the responsibility of the Ministry of Economic Development and it is not  surprising that energy efficiency has appeared on the list of top priorities for the Business Development and Economic Relations Working Group under the Presidential Bilateral Commission.

Although some see the obvious need for European expertise and technologies, as well as direct investment in energy efficiency projects, the United States, and, in particular, the Pacific Northwest could play an important role.  The Pacific Northwest is increasingly seen as a leader in energy efficiency in both  expertise and technologies. Perhaps a partnership between the Russian Far East regions and the Northwest will give a boost  to Russia’s  move to energy efficiency while, at the same time, creating jobs and other joint opportunities for both country’s businesses. It is worth exploring.

I know Zheleznogorsk well. FRAEC  worked with the Department of Energy for seven years through its Nuclear Cities Initiative to help find civilian jobs for the citizens of Zheleznogorsk who worked with the plutonium reactor. We helped create the International Development Center, a Russian nonprofit organization, to be the vehicle for this goal. The IDC still operates today in Zheleznogorsk providing real assistance to the many businesses and individuals who work there.

The issue of closing the reactor has been  a very sensitive one for the people of Zheleznogorsk. The reactor provided heat and electricity to the city and the  winters there get very cold – -40 degrees C.  I know. I was there on many cold winter days.  During one trip, I felt the frustration and anger of some of its leaders  when  asked if we could guarantee that they would have a new fossil fuel plant replacement, built with U.S. funds and contractors,  in time. Those of us who were there did not have anything to do with this project, but they vented anyway.

The closure is good for Russia, the U.S. and the world. Hopefully the new plant will be open and heating the city soon.

Every April 12th the world celebrates Yuri’s Night to commemorate this first flight in space but also the launch of the first Space Shuttle, STS-1, on April 12, 1981. There is a large following that celebrates Yuri’s Night around the world, including Antarctica. In Seattle, Yuri’s Night is celebrated at the Museum of Flight and I had the opportunity of attending last night.

In addition to a short piece from a documentary of Yuri Gagarin’s flight and the Space Shuttle, Dr. Bonnie J. Dunbar, CEO of the Museum of Flight and an Astronaut,  gave an excellent presentation of her own preparation and eventual flight to the MIR Station.

The celebration of these two milestones is one way for those who care about space can inform and inspire interest in our space programs  for the future.  It is particularly important now as the U.S. is retiring its space shuttle and will be dependent upon Russia to transport our Astronauts to the International Space Station. By the way, if you are interested in tracking the International Space Station, which is as large as a football field and is visible from the earth we were told, you can do so by going to this site.

This celebration had a very personal quality for me as I had the privilege to tour Russia’s Star City in 1997, where the Cosmonauts and Astronauts train for their missions. It was a very impressive tour, including a view of Yuri Gagarin’s desk and the mock-up of the MIR; an experience I will not forget.

So where are our space programs going from here in Russia and the US? As Dr. Dunbar shared, probably Mars and maybe the Moon will become a staging center for that trip to Mars, which  takes 6 months each way.

A lot to think about and something we should all celebrate. Join the many fans of space who celebrate this new frontier by attending the next Yuri’s Night either in your local community or online. I know I will.

Although this was both a very interesting and personal account of that dramatic time in the Soviet Union, Russian people are now hearing (again) from their leaders that modernization” and “innovation” is essential to Russia’s future. Of course innovation is critical to all economies and finding ways to achieve innovation is the trick. Today, Prime Minister Putin spearheaded a new commission on innovation to “enforce its modernization agenda” and is prepared to “assign 1.1 trillion rubles [$36.8 billion], or more than 10 percent of the federal budget, for fundamental and applied sciences, higher education, high-tech medicine and specialized federal programs.” This investment is needed and signals, perhaps, a real commitment to innovation.

But not all agree. In an opinion piece in The Moscow Times, Modernization by Gosplan, Vladislav Inozemtsev cites the flaws in the approach to innovation. He highlights that the “fundamental problem in Russia’s approach to modernization is that it doesn’t seem to understand – or at least it blatantly ignores – the fact that you can’t have a centrally planned innovative economy.” He states that there is only one path – “that is the path of industrial revival based on Western technologies, the rapid liberalization of the economy in combination with gradual political reforms and a fundamental rapprochement with Europe and the U.S.”

Whether or not you agree with his assessment it is very clear that modernization is essential for Russia’s economic future and involving Western technologies and partners would be good for everyone. It would provide more business opportunities and scientific collaborations hopefully creating more jobs. Twenty-five years from now, when we look back at this important time for modernization, we hope that we won’t think as Tamara Eidelman did, that “we just needed more computers.”