State of Business Magazine, Spring 2008
  vol. XX no. 1
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Spring 2008 Contents
Dean's Letter
Russian Revival
Going Virtual
Beijing Image
From East To West
On Top, Down Under
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Departments
The Pulse
In the News
Faces
First Person
Rajeev Reports
As I See It
State of Business Information

Russian Revival

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Another challenge for Russia is the issue that life expectancy is only 58.7 years for men and 62.4 for women based on the World Health Organization’s table of statistics for 2007. According to a report published by the Russian Federation, for every 1,000 Russians there are 15 deaths and just 10.7 births, leading to a population decline of about 750,000 to 800,000 per year. Steps are being taken to change this situation. The government recently banned all cigarette advertising, and many believe that the next step will be to ban smoking in all public places. There are also monetary incentives for families to have more than one child.

Stabilizing Factor

According to Burns, another issue is continued government stability, something that outgoing President Vladimir Putin has been able to establish.

“Putin is a classic Russian ruler,” said Burns. “Russians want strong leaders. Democracy, or at least the American version, is counter to their culture.” Putin understands power, according to Burns, and that is why the government is stable, which contributes to a thriving economy. With Dmitry Medvedev, Putin’s hand-picked successor, elected as president and Putin assuming the prime minister’s role, governmental stability is likely to continue.

Russia has moved forward more quickly than most of the world expected since the leaders of the former USSR voted their Communist government out of existence in 1991. While China and India are receiving the lion’s share of the attention, Russia continues to make progress as an economic power. With an economy reliant on oil, the country has put in place what are called “Stabilization” and “Prosperity” funds to hedge against a possible decline in oil prices. The Stabilization fund invests more conservatively, while the Prosperity fund makes more risky investments. Both show that Russia is looking ahead.

The same is true in the arena of business education. In Soviet times the educational system was focused on producing scientists and engineers. With the move to a market economy, that focus has changed. Now there is an acute awareness of the need to educate not just business professionals but business leaders – leaders of the type that will receive degrees as a result of the new Robinson/Moscow State Executive Leaders partnership.

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