International Economic Forum: prospects and results

Even though the state has tightened its grip on the economy in recently years, Russia is not building state capitalism, Dmitry Medvedev said. A greater involvement of the state was needed to stabilize the situation after the chaotic 1990s. Now that this stage is over, the country should pass on to an economic model which encourages private businesses. An economy based on state-run businesses may lose its competitiveness and become dangerous in the future, The Voice of Russia reports.

These announcements by the Russian president received a hearty welcome from participants in the forum. According to experts, a greater role of private enterprises and a boost in investment activities meets Russia’s current needs and concerns.

The day before the forum saw the opening of the Youth Economic Forum which brought together entrepreneurs aged under 30 and representatives of companies concerned. Esther Dyson, CEO of EDventure Holdings, described the Russian market as the world’s most favorable for the young.

Speakers at the St.Petersburg Economic Forum discussed prospects for western investors on the Russian market and Russia’s accession to the WTO. US Ambassador John Beyrle was buoyantly optimistic about Russia joining the World Trade Organization. He said that Russia’s membership in the WTO would have a favorable impact on the domestic economy and the economies of other WTO members, including the US.

Europe welcomed Russia’s membership in the WTO. Herbert Stepic, Chairman of Raiffeisen Bank Board, told a Voice of Russia correspondent that the business community was tired of the political games around the membership issue.

Russia’s relations with China stood separately on the agenda of the St.Pete forum. President Hu Jintao and Dmitry Medvedev signed nine cooperation agreements, including in the energy sector. A gas supply contract is already in its final stage. Chinese Ambassador to Russia Li Hui pointed out that despite  impressive achievements in bilateral cooperation, the two countries’ cooperation potential was far from exhausted.

A number of agreements has been clinched between Russian and foreign companies. JSC Russian Railways struck a deal with Siemens on the purchase of 8 Sapsan high-speed trains. Rosoboronexport signed a contract with France’s DCNS on the purchase of two Mistral helicopter carriers. And this is only the beginning, experts say. A total of 47 agreements worth about 12 billion dollars were signed at the St.Pete forum last year.

Russia’s economic performance in 15 years of the forum’s history has won international respect, says Professor Shlomo Veber of Southern Methodist University.

"Russia has changed a lot over the past 15 years, and so has the forum. Things are not the same as compared to the first summit in 1997. Nearly 5,000 guests from 80 countries are attending. Among them is the prime minister of China, the president of Indonesia and the prime minister of Finland. Apparently, Russia has grown to become a top global economy since the first economic forum fifteen years ago."

The cultural program of the forum was spectacular enough, offering a wide range of tours, including excursions to the city’s best museums and theatres and a business regatta. As he sang for a 30,000 audience in St.Petersburg’s central square, British rock star Sting addressed the public several times, speaking of his love of St.Petersburg in Russian.