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It has been a while since I have posted on the blog. It has been busy: we have had a delegation from Belarus in town, a kick off of our 20th Anniversary and several members of our city partnerships traveled to Russia.

I also had the opportunity to be on a live show called Public Exposure, a local Seattle-based news event program, and the video links (three part interview) are now on YouTube.

Part One:

Part Two:

Part Three:

I am off to Sakhalin tomorrow and expect to blog on the events that will unfold during our bilateral forum, The Russian American Pacific Partnership,  on September 29-30. More later.

Much has been written in the press about the Obama-Medvedev summit this week in Moscow. By now people are analyzing the results, whether or not much was accomplished and whether the Russian people really care about Obama’s visit to Russia.

It is noteworthy that this is the first summit in 7 years and that there was progress on the reduction of nuclear weapons and expanded economic ties. Monday, both Presidents announced the formation of a U.S.-Russia Bilateral Presidential Commission with working groups that are reminiscent of the former Gore-Chernomyrdin Commission. For those of us in Washington State, we have two locals leading two of the working groups: US Department of Commerce Gary Locke on Business Development and Economic Relations and Gil Kerlikowske, Director of the Office of National Drug Control Policy, on the Drug Trafficking Working Group.

DerekNorbergFRAEC’s Director of the Russian American Pacific Partnership, Derek Norberg, is in Moscow and attended the Business Summit on Tuesday, July 7th.  He gives a more “up close and personal” perspective of what has happened, especially during the business summit itself. He reports that “there does seem a desire to ensure that a positive tone is maintained, even at the expense of addressing the serious issues that are well known to both sides. It is probably an appropriate approach, with US-Russian relations having fallen to such a low level; the re-set deserves a soft start before the real work begins. ” To read his full report, please click here.

Russia surprised the U.S. and Europe with its decision to withdraw from WTO accession on Thursday to form a three county customs bloc with Belarus and Kazakhstan. Just last week at the St. Petersburg Economic Forum, E.U. and Russian leaders were commenting that WTO accession could be possible by the end of the year. Currently Russia is the only major economy outside the 153-member WTO.

This turnaround is being characterized by some as a “ploy” or negotiating tactic, as the Government of Russia has been “frustrated” by the slow process.  Sixteen years is a long time.  There are key stumbling blocks, namely multilateral issues such as Siberian over-flight fees and gas prices.  Also current members,  Ukraine and Georgia, have not given their support.  President Medvedev, quoted in an article in Forbes, said: ‘there are simply too many jacks in the box in the WTO negotiations’. This does suggest that the Russian government is looking for a quicker process.

Many in the business community, who have advocated for Russia’s inclusion in WTO, are surprised and concerned; they do not see any advantages for Russia to withdraw their application. Some speculate that this move is a result of the impact WTO might have on the Russian economy; that during a difficult economic period, jobs would be at stake. When asked at the St. Petersburg Economic Forum whether or not WTO would hurt Russian businesses, Anatoly Chubais, Rusnano Chairman, was quoted as saying that “80 percent of Russian companies would welcome the accession.” Not all at the forum agreed.

Regardless, most agree that this is complicated and will take time to sort through the implications. Russia, Belarus and Kazakhstan will hold talks next week in Geneva, so more is to unfold.

I look for the “not so obvious” stories of what is happening in Russia when I surf the news. Two articles caught my eye recently: “Economic crisis sabotages Russia’s efforts to halt falling population” and “Troubled Kids as Good Publicity”.  They may not seem related, but I saw connections.

The first story highlights a recent U.N. study, “National Human Development Report, Russian Federation, 2008: Russia Facing Demographic Challenges”. This report asserts that Russia’s “demographic challenges – including short life expectancy and a shrinking population – must be faced to maintain Russia’s economic and social security.” It lists a number of very important policies and actions that the government and the Russian people must address to stem this serious problem ranging from improved healthy lifestyles, adopting life long education, addressing the pension system, employing youth and aging populations and international migration.

The other story comes on the heels of the celebration of International Children’s Day in Russia on June 1st. People took to the streets across Russia to attract attention to the problems that children face in Russia. There are videos on You Tube of some of the celebrations, but the article focuses on two aspects: the efforts by the Government of Russia to draw attention to the importance of having more children (something the U.N. report addresses) and how one television channel used the opportunity to highlight a charity event sponsored by the channel and airing footage of the President giving awards to spouses raising families with up to 16 children. The author of the article was very critical of the station, basically saying that it was “airing propaganda” and questioned whether promoting a positive image of Russian children would help combat the children’s problems in the country.

So how do I see these as related? It is clear from the U.N. report with its “Address to Readers” by E. Nabiullina, Minister for Economic Development of the Russian Federation, that the Government of Russia considers the falling population as “one of the most acute problems facing Russia”. Encouraging births is one part of the strategy – hence the recognition of families having more babies, but there is much more that needs to be done. It requires that the government and the Russian people recognize the importance of designing and implementing a strategy, as the U.N. report suggests, that harnesses three components: political will, economic resources and appropriate knowledge. And I would add that it means utilizing the many resources available in local communities to assist in improving healthy lifestyles, educating youth and the elder population as well as increasing the awareness and support of people and companies to the importance of charitable giving. Perhaps the television station erred in the direction of being overly positive, however, raising awareness of how everyone can help by supporting charities is important.

Recently President Medvedev presented the country’s budget to the Duma. Normally the Finance Minister presents budget, so some believe that the President,  by being the messenger, wanted to highlight the priority he places on this budget.  Russia, as the rest of the world, has been negatively affected by this financial crisis. Higher oil prices and healthy reserves helped Russia grow its economy and its middle class over the last decade, but unfortunately as he acknowledges in his opening remarks, the country and the economy face a difficult situation.

In his remarks he outlines ten principle budget tasks ranging from fulfilling the country’s social spending commitments and making them more targeted (an item he believes the regional authorities should have greater influence) to finding optimum means to support the country’s manufacturing and industrial sectors and finance system, as well as encouraging entrepreneurial activity,  promote research and development through tax incentives and an economically justified tax burden. Throughout his list there were calls for modernization and the use of technology to streamline government.

His final priority was of interst – the need to “start working on putting in place a barrier-free environment for people with disabilities and to ratify the International Convention on the Rights of Persons with Disabilities“. This has been long overdue so I applaud the President for calling this to the attention of the country.

Two years ago during our bilateral Russian American Pacific Partnership (RAPP) meeting, I met a woman who was an advocate for people with disabilities. She herself was disabled and specifically came to our meeting to present her case at RAPP’s transportation sector. She called for prioritizing the needs of people with disabilities and was so convincing that the transportation sector included a recommendation to the Russian government in its sector report. “Access for the physically impaired: Access for people with disabilities living in Russia is extremely difficult. There are few, if any accommodations to allow them to travel with or without assistance. Providing access to travel through airports, on aircraft, on motor coaches, and on trains is critical. All people need to travel in order to get education, medical treatment and develop their personal potential outside their homes. It is imperative that transportation and infrastructure upgrades and developments address accessibility for all people, both able bodied and those with physical limitations.”

Clearly she must be celebrating this budget priority, along with the many other Russian citizens with disabilities that deserve a barrier-free environment.

Often the press reports on what is perceived as the “erosion of democracy” in Russia. What is not often reported is how Russia, through its reforms, is shaping citizen engagement in its country.  A few years ago the Russian government passed Law 131 – not something that you might have read about – but it essentially instructs Russian municipalities, local cities, to take more responsibility for their city’s social and economic development. It also states that areas with 1,000 or more people must form a municipality, which has dramatically increased the number of municipalities throughout the country, and that cities must engage their citizens, hold public hearings, and a whole variety of other tasks. This is dramatic change!

So you may wonder why I am raising this now. In my last post I mentioned the US-RFE Municipal Partnership Program, a program funded by USAID, one of many initiatives that was created to assist with these reforms. Many city and municipal leaders were unprepared and looking for models and practical tools to assist them. Our program works to improve local governance in the Russian Far East through city-to-city exchanges, consultations and training. Our two Russian partners, the Institute for Urban Economics (Moscow)  and the Far East Center for Social Innovation (Khabarovsk), are doing the majority of the consultations and training, but an integral part of the program is the partnership between Washington and Russian Far East (RFE) cities.

In 2008 delegations from four Russian Far East cities traveled to Washington State to meet with their partners to learn about local governance, how to engage citizens and to develop a joint project that would assist the RFE municipality in complying with the reforms. This was a first for most of the cities and I am pleased to say that they embraced each other immediately. This short video highlights their experience while in Washington State.

Following this exchange visit, the cities have been hard at work in developing their joint projects.  Bremerton and Sovetskaya Gavan (Khabarovsk Krai) are working to increase citizen participation in the RFE city. The Khabarovsk Municipal District (Khabarovsk Krai) and the City of Seattle have launched a project to increase the quality and accessibility of information on recreational opportunities as a key economic development tool for the municipality. University Place and Slavyanka Urban Settlement (Primorsky Krai) are working together to increase citizen participation in Slavyanka’s strategic planning process adapting the U.S. partner’s experience. They have been holding periodic video conferences via Skype since the beginning of this year.

Finally, Leavenworth and Yelizovsky Municipal District (Kamchatka) are working together to promote tourism opportunities in the Kamchatka region. The Russian partner is interested in establishing a public-private partnership based upon what the City of Leavenworth and the Leavenworth Chamber of Commerce have created to promote tourism.

Soon representatives from the Washington State partner cities will start traveling to the Russian Far East to further these projects, so look for more stories from the field.

Russia in the Global Storm was the topic of a presentation at the Carnegie Endowment for International Peace last month. One of the presenters, Zeljko Bogetic from the World Bank, cautioned that Russia’s “lack of attention towards greater social safety net programs was worrisome.” He went on to say that it is estimated that 4.7 million Russians would fall into poverty this year, compared to the 1.1 million that did so last year.  According to Bogetic, regions that rely on only a single source of employment, those that had pre-crisis high unemployment and those with large stakes in sectors that have been most affected, including manufacturing, construction and retail trade, will be hit the hardest.

We have alumni of FRAEC in many of Russia’s regions, so this article prompted me to review the results of a recent informal survey we conducted. We had asked our alumni about how things were going, what were the most important issues facing their communities and how we could work together to address them. The responses came from Moscow, the Urals, Siberia, and the Russian Far East. They included business owners, politicians, NGO leaders, educators and representatives from tribal arts groups. Their comments were as diverse as their professions and locations, and yet there were common themes.

What they said certainly echoed the concerns expressed by the article. Many mentioned the problems of the economy and the impact on their region. They worried about unemployment, not just for those already employed, but for the university graduates facing a challenging job environment. This was particularly challenging for our alum living in the Urals, a region dependent upon heavy industry manufacturing. Many asked that we share our experience from the US regarding professional development and job placement.

Another issue raised by one of our regional government alums was society’s “misunderstanding of civil servants in government and the idea of how to construct a civil society.” His work, and the work of his agency, is to help better inform the citizens of their rights and how to interact with government departments and agencies. This was underscored by another official from a different region who said: “It is even more poignant now to learn how to draw civil society and non-commercial organizations to the administration at the municipal level.” He went on to say, “It is very important to ensure that the population believes that the question of how the territory where they live develops, depends on them.” I was pleased that our USAID-funded US-RFE Municipal Partnership Program is targeted to assist with both of these concerns.

Finally, many shared concerns about youth and the growing challenges of xenophobia, crime, aggressive youth and bullying. This is not to say that all youth in Russia are aggressive, but as the economic situation worsens and unless there is an effort to help find jobs for the youth, they worry that there will be more problems. Again they are looking to the U.S. for ideas, models and training. Fortunately there are a number of good programs in Russia; some funded by the US government, but it is clear that they are looking for more ideas and assistance.

Young leaders in ArtyomOne bright spot related to youth was a response from our alum in the City of Artyom. In 2006, our governance exchange program brought 16 leaders in two groups from two regions in the Russian Far East to Seattle. Each group developed a project to be implemented. One group, which included the Mayor of Artyom, decided to conduct a Day of Youth Governance in his city. Some months later, after a week-long intensive training program, including job shadowing of their adult mentors and presentations by the Model UN-Russian Far East members, thirty young people assumed the positions of mayor, city council deputies and department heads. Afterwards, one young participant commented that “it is tough making these decisions.”

Because of its success, it is now an annual event in the City of Artyom. The city has added a competition for youth projects, such as an internet cafe, a youth initiative for “harmful habits” prevention and a youth television project. In 2009 they added two new ideas: “Leader”, a competition for project research and management and another, “Young Politician”,  to increase youth participation in the socio-political activities of the city. The winners of both of these projects will be considered for job openings at the city, and most importantly, this model is now being replicated to other cities in Primorsky Krai and hopefully elsewhere in Russia. What a success!

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