Far Eastern Center for Economic Development (FEEDCenter) Annual Report: 1996-1998

The goal of FEEDCenter activity is to promote an efficient economic policy in the Russian Far East, to encourage mutually profitable cooperation with Asia-Pacific nations, and develop domestic and foreign business in the region.

• Project "Analysis of the Russian Far East Economy"
• Project "Analysis of Food Policies in the RFE"
• Project "Development of Guidelines for Long-Term Development of Fishery in the RFE"

• Project "Analysis of State and Development Trends of the Malaysian Economy"
• Project "Analysis of the Financial Crisis in Asian-Pacific Region"
• Project "Analysis of World Timber Market and International Trade"
• Project "Overview of World Fish Product Market in 1995-96"

• Seminar "Budget and Cash Flow Analysis"
• Seminar "Internet in Russia"
• Program "Community Connection"
• Textbook юInternational Economy
• Course of Lectures and Practical Classes "International Systems of Electronic Commerce"

• Journal "Russian Far East: Economy, Investments, State of the Market"
• Project of web-site "Partner Regions: Russian Far East - U.S. West Coast"
• Home page in Internet on the Far Eastern Center for Economic Development and electronic version of the journal "Russian Far East: Economy, Investments, State of the Market"

Research studies, performed by FEEDCenter, are aimed at analysis of the economies of the Russian Far East and Asia-Pacific nations. Separate projects study the dynamics of basic macroeconomic indices, do comparative inter-nation analysis, assess prospects for changes in the state of commodity markets.

The project goal is to study the RFE economy in the period of market reform (1985-98), to determine factors influencing on the rate and proportions of economic growth, to conduct analysis of the development of traditional industries (fishing, forest, transport, etc.) as well as of companies of various ownership forms.

This research is aimed at generation of a strategy for structural change in the Russian Far East economy, at substantiation of prospects for separate investment projects, preparations of well-grounded recommendations on regional development to the federal and local governments.

A number of scientific papers, publications in scientific journals were prepared, roundtables with experts in economy, corporate representatives, Russian and foreign experts were held .

The project goal is to study the state of the food market in the Russian Far East, to analyze its structure and possibility of food import replacement by domestic production, to study price parameters and factors determining their change (including breakdown by separate RFE territories).

By the results of research, scientific reports and publications were prepared, a seminar was held. Positive opinions on performed work were received from consulting groups (e.g., "Progressor", Moscow).

The project goal is to promote development of the RFE fishery complex by encouraging investment, raising of seafood products quality and competitiveness on external and domestic markets.

The following has been done within the project:

• Analysis of the raw resources base, world trends in marine bioresources exploitation; preliminary study of fish stocks, algae and aquaculture.
• Study of preconditions and principles of economic research of the fishery resource base in the RFE. Discussion of characteristics of fishing areas found in RussiaХs 200-mile EEZ; fishery objects of countries working in other regions of the Pacific Ocean.
• Study of world fishery problems: overfishing, by-catch, environmental pollution and coastal zone destruction, higher costs, inefficient regulation, social consequences.
• By-country study of trends in the world trade of fish resource (Japan, USA, Chile and Peru, Republic of Korea, China).
• Study of elements of world price policies, markets of seafood, surimi, fishmeal, fish oil.

The project is sponsored by a grant from the Pacific Research Fishery Center.

Research was done in collaboration with Rafiz Abazov, professor of the University Malaya in Kuala Lumpur (Malaysia). Its result was a conclusion that the Malaysian economy is insufficiently diversified, which is one of the factors decreasing economic growth rate in Malaysia, as well as narrowly specialized exports. A report and a scientific publication were prepared by the results of this research.

Research was made on the causes and character of the financial crisis in Indonesia, Republic of Korea. A comparative inter-nation analysis of main macroeconomic indices of crisis development in area countries was performed (Gross Domestic Product dynamics, currency rates, inflation, "prime rate" and inter-bank 3-month rates was also done. Analysis was done as well on short-term debts, foreign debt and current-account balance deficit as main causes of the financial crisis. By the results of research, a report and a scientific publication were prepared; a roundtable for Far Eastern State University professors and post-graduates was held.

Analysis was done on main international problems of forest resource development, structure of its location by country, directions and rate of timber industry restructuring by country, dynamics of consumption and international trade, export of RFE timber into Asia-Pacific countries. By the results of research, a scientific report and a publication were prepared. The study was positively appraised by experts.

As part of this consulting subject, research was done on production volume of herring, flounder, Alaska pollock, greenling and salmon by area, sub-area and zone; quality requirements and wholesale prices depending on species and product type (fresh, frozen, salted, etc.), production area, country of origin, place of catch loading to processor, reloading and sales; FOB, CAF, CIF, DDU and other delivery terms.

The Far Eastern Center for Economic Development and the American-Russian Business Collaboration Center hosted a joint seminar, funded by the United States Agency for International Development, on Budget and Cash Flow Analysis. The seminar was attended by commercial bank officials, representatives of private enterprises in the Russian Far East, and university professors.

The Center hosted a two-day educational seminar on the Use of the Internet in the Russian Far East. Co-sponsored by the Institute of Higher Education at Far Eastern State University and the Internet Training Center, the program targeted university professors, entrepreneurs, and corporate representatives.

Through out January and February 1997, the Center conducted the first round of recruitment for the USIA-sponsored Community Connections Program in conjunction with the University of Alaska, Anchorage and the Russian-American Foundation for Economic Cooperation. A group of fourteen finalists, made up of administrative directors from various universities and institutes in Primorskii krai, traveled to Seattle, WA to study the American higher education system.

In March-April 1997 the Center began recruitment for the USIA-sponsored Community Connections Taxation Program. A group of directors from various tax agencies in Primorskii Krai will study the American tax system and commercial tax laws in Seattle, WA.

In 1997-98, FEEDCenter worked out, in conjunction with the Economy Dept. Of the Far Eastern State University, a textbook titled "International Economy", which reflects modern studies of U.S. researchers such as Crugman,Lindert, Porter and others. This textbook is based on foreign instructive methodics and takes into account the requirement of restructuring RussiaOs foreign economic relationships and strengthening its stand on the world market.

The contents of this textbook is adapted to the Russian surrounding and enables to analyze inner trends of the Russian economy as well as opportunities for RussiaOs integration into the world economy.

In 1997-98, in conjunction with the Mathematics and Computer Sciences Dept. of the Far Eastern State University, FEEDCenter worked out a course of lecture and practical classes OInternational Systems of Electronic CommerceO. Such systems are needed by the Russian Far East with its vast territory, low population density and high level of education.

The course is intended for business people, managers, university professors and students of RFE regions, interested in modern approaches to trade in goods and services, and was tested at the Mathematics and Computer Sciences Dept. of the Far Eastern State University, at the International Pacific Institute and other institutions.

Since January 1997, FEEDCenter has been publishing RFE's only information/ analytical journal "Russian Far East: Economics, Investment, the State of the Market" in Russian and English (abstracts of articles) languages. 5 issues containing more than 70 articles and materials were published during 1997-1998.

The journal is based on the findings of research work done by FEEDCenter. Analysis of economic situation in Russia and its projection on the RFE economy, study of the state of domestic and foreign markets, professional assessment of investment projects, preparation of scenarios and forecasts on RFE development - these are some of the guidelines covered by the journal.

Despite the yet short life of the journal, many publications aroused public response, which shows that the ideas, on which the contents and representation of published materials are based, are correct. Among authors are specialists from EBRD, Moscow Institute of International Relations, All-Russian Research Marketing Institute (Moscow), University Malaya (Malaysia), University of Osaka Prefecture (Japan), Far Eastern State University and other organizations.

The 1997 session of the section "Telecommunications and Information Infrastructrue" of the Working Group of the Chernomyrdin-Gore Commission authorized FEEDCenter to work on the web-site project "Partner Regions: Russian Far East - U.S. West Coast". Present at the session were section co-chair Steve Crown (USA), IREX president Dan Matuszewski (USA), senior specialist of the Information Service "BISNIS" of the U.S. Department of Commerce Tanya Shuster, IREX leading specialist Bernardine Joselyn and FEEDCenter director general Irina Boiko.

The project is aimed at promoting bilateral economic and investment linkages of the regions of RFE and U.S. West Coast and intended for placement of general economic information, data about enterprises, investment projects and cooperation proposals. Information will be placed on the web-site in Russian and English. Its users will be officials of regional administrations in the Russian Far East and of state on the U.S. West Coast, businessmen of both countries, researchers, students, postgraduates, university professors.

The project goal is to set up a source of information on trade and investment issues for dissemination of true, complete and accessible information about the Russian Far East and U.S. Western states.

The web-site "Partner Regions" consists of three main sections.

• The first section contains information about RFE, which might be useful to Russian and American businessmen and politicians.
• The second section on U.S. Western states contains information useful to Russian businessmen.
• The third section includes information about registration of American companies doing business in the Russian Far East. Registry will enable interested American companies to provide information about their activity by entering into a database.

This project is an example of fruitful international cooperation.

The working group on project promotion includes U.S. chair of the section "Telecommunications and Information Infrastructure" Stephen Crown, Russian co-chair of this section Vladimir Bocharov, specialist of the information service BISNIS of the U.S. Department of Commerce Tanya Shuster USA), FEEDCenter general director Irina Boiko (Russia), IREX specialist Eugene Shehtman (USA). The working group maintains permanent contacts with CEOs of the Russian-American Fund of Economic Collaboration (Seattle, USA), of the Inter-Regional Association of Economic Cooperation "Far East and Trans-Baikal", top executives of RFE regional administrations.

The result of this project was a demonstration of the virtual web-site at a plenary session of the working group in Portland, USA. Attending the presentation were more than 400 representatives of American and Russian corporative and administrative CEOs, officials from the U.S. Department of Commerce and the RF Ministry of Foreign Economic Linkages and Trade. Also present were Portland Mayor Mr. Katz, Counselor to the U.S. Department of Commerce Jan Kalicki, Department Chief of the RF Ministry of Foreign Economic Relations Viktor Spassky, special counselor on economic programs of coordination and support to CIS of the U.S. Department of State Daniel Rosenblum and others. At a closing session, the project received positive appraisal and was backed by all of the Working Group sections (transport, tourism, mining industry, etc.).

In January 1998, a session of the Coordinating Committee on Foreign Economic Activity of the Association "Far East and Trans-Baikal" was held in Khabarovsk, Russia, and made a decision to "propose to ministries, committees, foreign economic relations departments and boards of regional administrations to invigorate activity on the web-site project". As a result, project coordinators are appointed in all RFE regions, whose function is to provide information support to work on the web-site.

This project has been awarded grants by the Eurasia Foundation and the Institute "Open Society".

FEEDCenter gives much importance to new information technologies. FEEDCenter office integrates the Internet, which is a basic tool of its activites.

In 1997, a home-page of FEEDCenter (www.irex.org/corp/3cd-vladup.htm) was opened at the web-site of IREX (www.irex.org). It contains information in Russian and English about FEEDCenter, its goals and purposes, main fields of activity, examples of implemented projects, as well as an electronic version of the journal "Russian Far East: Economics, Investment, the State of the Market".

In the core of FEEDCenter activity lies collaboration with specialists from Russia, USA, Canada, United Kingdom, Germany, Switzerland, Japan, Republic of Korea, China, Malaysia and other countries.

Among organizations with which FEEDCenter maintains close relationships are the RF Foreign Ministry, IREX (Washington, USA), Moscow State University (Russia), Far Eastern State University (Vladivostok, Russia), UNCTAD (Geneva, Switzerland), Russian-American Fund of Business Collaboration (Seattle, USA), American-Russian Business Center of the Alaska University (Anchorage, USA), administrations of RFE territories, Inter-Regional Association "Far East and Trans-Baikal" (Khabarovsk, Russia), RF Mission in UN (Geneva, Switzerland), RF Embassy in Switzerland (Bern, Switzerland), Institute of USA and Canada (Moscow, Russia), Institute of World Economy and International Relations (Moscow, Russia), Institute of East European and International Studies (Cologne, Germany), All-Russian Research Marketing Institute (Moscow, Russia), Far Eastern Representation of Eurasia Foundation (Vladivostok, Russia), Khabarovsk Center for Scientific and Technical Information (Khabarovsk, Russia), U.S. Department of Commerce, Hawaiian Pacific University (USA), Microsoft (Seattle, USA), and others.

For instance, the journal "Russian Far East: Economics, Investment, the State of the Market" is circulated by the RF Foreign Ministry to Russian embassies and consular offices.

In collaboration with UNCTAD, consultations were held on the project "Commercialization of Sciences and Technologies" (New York, August 1997) and on the issues of electronic commerce and FEEDCenter participance in the program "Trade Point" (Moscow, March 1998).

FEEDCenter received an invitation from the Institute of East European and International Studies (Germany) to deliver a report on prospects and problems of RFE economic development (Cologne, November 1996).

The U.S. Department of Commerce assists FEEDCenter in search for U.S. coordinators of the web-site project "Partner Regions".

Participation in the Ad Hoc Working Group of U.S. West Coast - Russian

FEEDCenter takes active part in sessions of the Ad Hoc Working Group of the Chernomyrdin - Gore Commission. During 1996-98, 6 official and working meetings in support of Russian-American relationships were held within this project.

In September 1996, at the session of the Commission in Khabarovsk, FEEDCenter came up with a project on information and analytical support to investment processes and expert-consulting activity, later backed by the section "Telecommunications and Information Infrastructure".