Russia – St. Petersburg, International Economic Forum 2012

June 24, 2012

By Padmini Arhant

International economic forum 2012 held in St. Petersburg, Russia focus on Russian economy and energy sector relevant for the BRICS member.

Russian market liberalization with incentives for investors might have led to high end deals at the meeting.

However, moderation prudent on all measures prior to overarching relaxation of rules based on expectations for lucrative returns.

Russia’s policy in unrestricted capital flight to domestic and foreign investors with a request to new venture capitalists to expand upon being successful in initial embarkation is anticipation not necessarily incumbent upon beneficiaries deriving gains from unlimited access to national resource.

The economies luring capitalism to stimulate growth would enhance opportunity in defining engagement process through legislation not only for local competition survival but also safeguard sovereignty.

Besides monopoly of market share undermining labor and taxation laws including environment standards are common experience among nations inviting foreign investment.

Another major factor being reciprocation in offshore trade often does not conform to terms and conditions with arrangement favoring one and not another.

Mutual trust violation in currency adjustments or trade imbalances also leads to unnecessary tension between interdependent partners in the otherwise resolvable disputes that are once again used for geopolitical agenda.

Capitalism providing fair income distribution contrary to status quo and abandoning practices to establish control on sovereign national assets such as oil, natural gas, minerals and various commodities among the products with human capital regularly exploited especially in developing nations would facilitate viable economic climate.

The contemporary invasions under false pretext evidently counterproductive and multinational corporations with energy sector, defense and finance industry in particular among others instrumental in cataclysmic warfare causing death and destruction alongside political instability urgently required to change course from adversarial role to honoring territorial integrity,

Capitalism in the new millennium reining control over political systems in national and international domain through campaign financing and legislative authority set dangerous precedence and predominantly responsible for democracy decline.

Russia receiving funds for discretionary spending from Middle East viz. Kuwait generous contribution $500 million to RDIF (Russian Direct Investment Fund) and U.S. initiated membership to international organization ITO with no strings attached would perhaps allow recipient to participate on equal footing without compromising UNSC veto right.

Furthermore entering into business contracts with profit sharing in both nations – overseas as well as partner domicile quintessentially end lingering uncertainty winning consumer support and investor confidence.

State capitalism on key programs such as health care for all with an option to seek private medical treatments,

Compulsory free education to poor and lower income category to boost literacy rates across the nation,

Adequate funding for quality higher education to prepare nation with skillful work force,

Subsidized housing with essential conveniences in exchange for involvement in community projects would eliminate crimes and social problems that are costing taxpayers more in penitentiary upkeep and running prison camps like in the United States.

Protecting retirement funds to guarantee financial security to retirees and baby boomers,

Veterans’ benefits extended to them and their families during and after national duty.

Periodic improvement with technology oriented civil services and infrastructure maintenance are core and integral part of public sector undertaking to ensure healthy, educated and socially integrative society.

Accordingly crackdown on bureaucracy and corruption posing impediments to genuine progress is an immediate priority.

Nationalization, privatization and quasi privatization would complement functionality wherever applicable.

The diversity would address deficiencies in areas vulnerable to fluctuations and unexpected events demanding intervention.

Regardless appropriate regulations are necessary for checks and balances to create long term growth.

The setup deserves due attention and action on individual basis beginning with banking and finance extended over to other areas of commerce.

Nations assuming direct power over money supply imperative exemplifying national ownership at present referenced in sovereign debt with constant monitoring aided by effective fiscal and monetary policy.

Simultaneously surplus allocation towards national reserves would alleviate austerity or tax increase in dealing with market volatility and economic or financial crisis in the global environment.

Liberating economies from private management under prevalent Federal Reserve or Central Bank with nationalization of monetary unit and core banking activities plus oversight on national and private financial institutions to avert serious meltdown would guarantee fiduciary reliability.

Sustainability premised on solid foundation accompanied by robust stimulants would provide steady and progressive trend.

Energy metamorphosis to contain carbon emissions and economic impact on natural gas and oil producing nations merits exclusive presentation.

Similarly euro zone analysis with pros and cons on recent developments will be a separate topic of discussion.

Russia – the host nation having achieved many business prospects at the consortium acknowledged for the International Economic Forum 2012 that brought more than 50 countries to showcase respective accomplishments and vision.

Peace to all!

Thank you.

Padmini Arhant


Got something to say?

You must be logged in to post a comment.