Posted on 10/25/2007 11:45:30 AM PDT by bs9021
Contrary to popular perception, Russia is said to be seeking public-private partnerships with western experts to invest vast sums of Russian savings, Charles Ryan, Chief Executive Officer, Deutsche Bank (Russia) said at the Heritage Foundation last week.
He said today Russia has over half of its Gross Domestic Product (GDP) in cash yet 25 million people in Russia live in poverty. The reason, according to Ryan, is that that institutions in Russia are still weak and the Russian bureaucracy is not trusted to invest that money wisely.
“Therefore there is a desire to engage western business, to get them involved in public-private business partnerships, to use western expertise to find some cost discipline to how this money is disbursed,” Ryan said. He noted that due to lower taxes there, 80 % of Russian wages are disposable which has fueled massive consumption in Russia.
On the same panel at Heritage, Patricia Cloherty Chairman and CEO, Delta Private Equity Partners LLC (and also Manager of the US-Russia Fund), said that “in 1995 there were two shopping malls in Moscow, today there are 2,444 and growing.”
She added that people doing business in Russia today tend to be “cheery and chipper and policy analysts tend to be gloomy.”
(Excerpt) Read more at campusreportonline.net ...
Putin appears to be trying to use the ChiCom model in russia.
This looks nice until you consider that the percentage of their budget spent for food is MUCH MUCH higher than the percentages that are spent here.
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