Contents. Russian Foreign Policy and International Relations: Cooperation as a Science. The Russian Economy: New Challenges, New Opportunities

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3 Contents 4 Russian Foreign Policy and International Relations: Cooperation as a Science 10 The Russian Economy: New Challenges, New Opportunities 16 Social Policy: A Focus on Standards of Living 20 Regional Development: Identifying Competitive Advantages 24 Information Society in Russia: A Search for Solutions 30 State Power and Society: A Review of Existing Institutions 34 Science and Education: Fundamental Institutions for Development 37 The Modernization Project and Russia s National Identity 38 Appendix Schedule of Activities 41 Appendix 2. Commissioning Parties and Partners 42 Appendix 3. The Library of the Institute of Contemporary Development 1

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5 The Institute of Contemporary Development (INSOR) has organized and hosted more than 200 events in the nearly two years since its inception in March These roundtables, conferences and analytical sessions were developed and realized by several hundred leading Russian economists, sociologists, foreign relations and domestic policy experts and information technology specialists. Fulfilling its mandate to provide expert policy analysis and recommendations, INSOR has authored numerous reports, commentaries, briefings and expert conclusions for the President of the Russian Federation and relevant Russian Government bodies, as well as several dozen books and monographs, which form the Library of the Institute of Contemporary Development. 3

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7 Russian Foreign Policy and International Relations: Cooperation as a Science 5

8 The Institute of Contemporary Development substantially expanded its cooperation with leading analytical centers and public organizations in Russia and abroad during its second year of operation. INSOR experts have worked on issues to improve Russian-US relations, form a new legal framework for international cooperation on energy, and develop a new architecture of Euro-Atlantic security. The Institute closely analyzed the evolution of Russia- European Union and Russia-NATO relations, and researched critical issues and potential future trends of Russian policy in the Commonwealth of Independent States. The Center for Baltic Studies also continued its analytical work under the auspices of INSOR. The Modern State and Global Security, an international conference organized jointly by INSOR, the Public Planning Institute and Yaroslavl Demidov State University, was a landmark international event in The conference, held on September 14 in Yaroslavl, brought together leading Russian and foreign politicians, diplomats, researchers and experts to engage in compelling discussions on common approaches to problems of the modern state. The keynote speech was delivered by Russian President Dmitry Medvedev, who also serves as Chairman of the INSOR Board of Trustees. Its themes were echoed by Spanish Prime Minister José Luis Rodríguez Zapatero, French Prime Minister François Fillon, and other state officials and public figures. Discussions centered on the idea of the modern state and how it should evolve and function to make the world more secure and stable. In addition to the Yaroslavl conference, INSOR organized three other prominent international events in In January-February, INSOR established the groundwork for the first session of the Russian- Spanish Dialog of Civil Societies Forum, which It is crucial that governments adopt responsible attitudes towards their citizens and towards each other and be effective in ensuring public and global security. Their commitment to democracy and progress, their ability to create mechanisms of productive cooperation and peaceful dispute settlement are our current priorities. Russian President Dmitry Medvedev Yaroslavl, Russia September 14,

9 was launched in Madrid on March 2 in conjunction with the official visit to Spain by Russian President Dmitry Medvedev. The forum s objective is to establish ongoing cooperation between civil society representatives of the two countries and to become a platform for the active development of bilateral economic and cultural relations. Addressing the forum, Russian President Medvedev and Spanish Prime Minister José Luis Rodríguez Zapatero emphasized the necessity of advancing bilateral relations and expressed their intention to provide fullhearted support for the forum's continued work. The 14th International Conference of the Baltic Forum held May in Latvia focused on the theme Global Crisis National Response. Participants discussed issues pertaining to European and global security and regional cooperation, including the role of the Shanghai Cooperation Organization in promoting security in Eurasia. The conference was attended by representatives of Russia, Latvia, Lithuania, Estonia, the United States, Great Britain, Germany and China. Special attention was paid to proposals and recommendations on the evolution of US-Russian relations. Speakers noted in particular that the resetting of US-Russian relations at the highest level of government has initiated a review of the countries' bilateral engagements on international 7

10 security, financial and economic cooperation, as well as relations between private financial institutions, and innovative frameworks for state regulation of financial infrastructure in Russia and abroad. INSOR presented its reports, The Architecture of Euro-Atlantic Security and Russian-US Relations: Towards a New Agenda, to conference participants. A session of the US-Russian high-level Working Group held under the auspices of INSOR and the US Council on Foreign Relations (CFR) on June in Washington, DC also helped advance US-Russian relations. Chairman of the Management Board of INSOR Igor Yurgens and CFR President Richard Haass served as co-chairs of the group. In preparation for the visit to Russia by US President Barack Obama, representatives of both countries discussed the future agenda of bilateral relations, with special attention to specific recommendations and proposals, including on widening dialog between government, the business community and the public. High-level meetings with US officials also took place in conjunction with this event. The Russia-Japan Symposium, led by representatives of Russia s expert community and the Center for International Public Policy Studies (CIPP), a leading Japanese think tank, took place at INSOR on February 16. The search for a mutually acceptable approach to current geopolitical issues and augmentation of economic ties served were core components of the agenda. Participants focused on identifying a common vision of the tasks facing the two countries, Russia s modernization initiatives, and the outlook for international relations in the modern world. Junichiro Koizumi, former Prime Minister of Japan, participated in the discussion. The Institute of Contemporary Development and Japan s International Exchange Foundation were coordinators of the 6th Russian-Japanese Forum on Prospects for Russian-Japanese Cooperation in Globalizing the Asia-Pacific Region. The bilateral summit was held on October 3 in Irkutsk under the 8

11 chairmanship of Irkutsk Region Governor and INSOR Board of Trustees Member Dmitry Mezentsev and Japanese Government Special Envoy Tatsuo Arima. The forum s three thematic sessions covered the future of Russian-Japanese relations in the Asia-Pacific region and the world, the role of Russia and Japan in the post-crisis global economy, and reassessing mutual influence and contributions to culture and technology. Representatives of government bodies, expert and business groups, and cultural personalities from both countries discussed new aspects of the subjects that traditionally form the agenda of this forum, which began in An international conference on Sudan, held under the chairmanship of the Special Presidential Envoy for Sudan and Chairman of the Federation Council Committee for Foreign Affairs Mikhail Margelov, was an important step toward consolidating efforts of leading countries and international organizations to reach a peaceful settlement of the conflict in Sudan. INSOR and the Institute of the Middle East organized the conference, which took place in Moscow on October

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13 The Russian Economy: New Challenges, New Opportunities 11

14 In 2009, INSOR continued to monitor, analyze and comment on the impact of the world economic crisis on the Russian economy. The results of the first series of discussions were compiled in the report Economic Crisis in Russia: Expert View, presented on February 8. In late February and early March, the Institute of Contemporary Development hosted a series of expert discussions on effective currency, monetary and credit regulation. The results of the discussions were presented in INSOR s Anti-Crisis Measures bulletin. In March, the Institute of Contemporary Development hosted discussions on the Russian Government's anti-crisis measures. Experts noted that public discussion of the draft program demonstrated the government s openness and readiness for public dialog as the crisis reached Russia. Drawing on the results of eight months of monitoring by INSOR experts, the Institute issued The Russian Economy: From Crisis to Modernization (An Expert View), an analytical report that analyzed four key areas: the finance sector, budgetary policy, the social sphere and regional development. Special attention was paid to the effectiveness of the measures undertaken by the Russian Government to respond to the crisis and the development of the post-crisis modernization agenda. The report was presented to the public on September 18. In April, INSOR presented a two-volume research report entitled Strategies for Russia s Socio- Economic Development: Impact of the Crisis, which provided an early assessment of the impact of the global crisis on Russia s development. The work examined the new environment for Russia s modernization and suggested ways to resolve a number of pressing problems in the economy, society, regions and key industry sectors, including banking. On June 23, INSOR hosted an experts meeting to discuss a draft report by the World Bank on the Russian economy. Participants emphasized that, despite negative trends in economy's development, including a deficit of credit resources, higher unemployment and a sharp 12

15 drop in industrial production and investment, the first green shoots had taken root, including improvements in the balance of payments, the end of massive capital flight, and a stock market recovery on the back of higher oil prices. Despite certain signs of economic stabilization, expectations of a further worsening of the social impact of the crisis and a slowing of economic growth persist. INSOR economists highlighted the following measures as 2 steps to mitigate the situation: Increasing budget revenues; Enhancing the efficiency of state programs; Resolving problems facing the banking sector, in particular speeding up consolidation and capital accumulation. The evolution of financial markets and the national financial system became a key focus of the Institute. On June 24, INSOR hosted the international conference The Russian Derivatives Market, organized jointly with the National Currency Association (NCA), the National Association of Stock Market Participants (NAUFOR) and the Association of Russian Banks (ARB). Another key event was the June 25 roundtable on The Financial Architecture of the Post- Crisis World: Effectiveness and/or Fairness?, during which representatives of ministries and agencies, as well as business and academic leaders discussed the research conducted by the Post- Crisis World Institute. Following the event, INSOR developed a number of recommendations to help further define solutions to overcome the global crisis based on a new financial architecture of intergovernmental dialog, such as the G20 summit. These recommendations served as a basis for the creation of the Council for Financial Stability, the first international institution to serve as a source of regulatory innovation. The crisis revealed a large number of weak links in the Russian financial system that aggravated the economic downturn. One serious obstacle to Russia s economy is the low level of non-cash payments in the Russian financial sector. The November 10 roundtable The Non-Cash Retail Payment Market in Russia: Advantages and Development Prospects dedicated its agenda to At the conference, NAUFOR, NCA and ARB announced a final agreement on forward contracts for trading outside exchanges. Participants said that broad acceptance of the agreement would lead to the emergence of sustained business practices in the Russian market and lower the base risk stemming from the use of different types of contracts. Participants also discussed the current state of the Russian forward market, the structure of Russian derivatives on the Moscow and London financial markets and the prospects for further development of the derivatives market in Russia. A general discussion of legislative and regulatory initiatives, government oversight, and accounting and taxation policies was also held. 13

16 improving legislation and regulation of electronic payments in order to modernize the country s economy and develop its financial sector. A policy analysis sent to relevant Government authorities summarized the results of the discussion and included an assessment of proposed legislation for a National Payment System. With support and participation from the Bank of Moscow, INSOR began finalizing research on the structural modernization of Russia s financial system in December This effort is aimed at forming the basis of a series of reports covering: Ensuring balance of capital flows over the long term; Forming reliable sources of long-term capital; Overcoming the structural weakness of the banking sector and forming a new banking architecture; Establishing a financial super-regulator and turning Russia into an international financial center. The global crisis increased the Russian economy's dependence on energy prices. The future of the oil and energy sector was the focus of a meeting of experts organized by INSOR and the Institute of Energy and Finance on November 17, where participants discussed the International Energy Agency s 2009 report. Direct engagement between leading European experts resulted in a number of recommendations on ways to harmonize the EU and Russian positions on energy security. 14

17 The global financial and economic crisis created fundamentally new challenges for corporate governance around the world, including in Russia, where serious flaws include ill-defined corporate procedures, weakness of risk management systems, lack of real power and expertise at the board level, and violations of minority shareholders rights. The Crisis Corporate Governance roundtable, launched on September 17, focused on the most topical issues of corporate relations and efforts to formulate new anti-crisis and postcrisis corporate governance models. Together with the Ministry of Industry and Trade, INSOR organized an expert group charged with refining proposals and amendments to the proposed federal Law on the Fundamentals of State Regulation of Trade in the Russian Federation. Experts focused attention on some contradictory and unbalanced positions in the legislation and sent a unified expert opinion to the relevant authorities. Innovation remains a key priority of INSOR. Expert discussions of the action plan to stimulate corporate innovation developed by the Ministry of Economic Development were organized by INSOR on March 3. The discussions and exchange of opinions resulted in invaluable input, suggestions, and critiques regarding the document s contents, which were taken into account as work on the plan continued. Experts later praised the plan as a document standing out from its numerous predecessors with its distinct systemic and goal-oriented nature, and a concrete approach to singling out the priorities of innovative activity at companies deserving state support. small innovative businesses an especially crucial task. Participants adopted a resolution calling on the Government and the Ministry of Economic Development to continue facilitating venture investment and to set up a network of privatepublic seed investment funds. In 2009 INSOR paid particular attention to energy saving and efficiency. In April and June, expert seminars brought together representatives of the World Bank and leading Russian ecologists to address this issue. In October INSOR submitted proposals on the corresponding draft law, which were partially incorporated in the Law on Energy Saving and Energy Efficiency in the Russian Federation. On November 20, INSOR held a joint conference with the Association of European Businesses focused on legislative regulation and tax incentives for innovative enterprises. A number of innovation projects in Russian regions involving foreign investors were presented at the conference. The path of innovative development is the only adequate response to the challenges of the modern global economy, concluded participants of the March 12 roundtable discussion Topical Issues of Promoting Venture and Seed Investment in Modern Russia. The onset of the economic crisis made establishing venture and 15

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19 Social Policy: A Focus on Standards of Living 17

20 A series of research and expert discussions were dedicated to the social impact of Russia's transforming economy. At the roundtable Social and Political Consequences of the Crisis: Authorities, Business, Society on February 10, experts discussed research on Russians attitudes towards the crisis, the level of trust in political institutions, various social crisis development scenarios, the likelihood and the pattern of protests, and the possibility of a new mode of interaction between society, employers and the authorities. The labor market and measures to curb shortterm and long-term unemployment were the center of attention at an April 14 meeting at INSOR between President Medvedev and members of INSOR s Management Board, the Board of Trustees and leading experts. Drawing on international experience and research, participants drew President Medvedev s attention to the importance of adopting tactical and structural measures to ensure that Russia has a skilled and modern workforce after the crisis. They also presented their vision of how this could be achieved. INSOR hosted special discussions on employment in Russia's single-industry towns in the new economic environment on January 22 and December 14. On January 20, INSOR examined the oil and gas sector as an example of ways to optimize personnel-related costs with minimal redundancies and preservation of employees basic competencies. In September 2008, Russia signed on to the UN Convention on the Rights of Persons with Disabilities. The international community has long recognized that disabled people have equal rights as all other people and should be afforded the same opportunities. Over the past few years, Russia has been implementing a number of federal programs to support disabled people and integrate them into society. At the same time, both in the public consciousness and within the Government, this assistance remains largely focused on material aid. The report Russia: Towards Equal Opportunities, prepared by INSOR together with the Russian mission at the United Nations and the Russian Disability Society, examined the rights of the disabled, particularly their access to education and employment. The report was presented at workshops in Moscow, St. Petersburg and Sochi, attended by Kiyo Akasaka, UN Under-Secretary- 18

21 General for Public Information. The goal of these workshops was to spur discussion on social integration of the disabled while taking into account Russian realities and state and public organizational expertise. Promoting humanitarian values and paying proper attention to the interests of people with disabilities are among the key obligations of signatories of the Convention on the Rights of Persons with Disabilities. In the first half of 2009, INSOR summarized the results of its research study on Russia s middle class in two books published as part of the Library of the Institute of Contemporary Development series: Russian Middle Class on the Eve and at the Peak of Economic Growth and The Russian Middle Class: Analysis of its Structure and Financial Behavior. The year-long research study was undertaken by INSOR prior to and during the economic crisis, when Russia's social and economic outlook declined considerably. Crisis conditions created problems for those who potentially could become part of the middle class, underscoring the timely nature of the research. INSOR experts made an effort to define the perspective of the middle class in modern Russia and to provide answers to the question of whether the middle class is a victim of the crisis, or the hope for the future. This research also explored the competitiveness of the middle class, and its role in the reform and modernization of the country s economy. While the first forum hosted by INSOR in autumn 2008 focused on labor and social policy issues, the second forum held in Bremen on October examined social security in Russia and Germany. Subjects discussed included: The role of social partners in the current system of social security; Financing of social security systems in Germany and Russia, and their long-term prospects; The role of social security systems in maintaining required standards of living. The study Social Labor Relations: Problems and Perspectives was also presented in conjunction with the forum. A meeting between INSOR experts and heads of regional trade union organizations (Sotsprof ) on July 27 was dedicated to discussing the role of trade unions in overcoming the fallout from the crisis. The exchange of opinions helped identify a number of acute social problems in Russia s regions. Forming Social Policy, a Russian-German expert forum, continued its work in 2009 as part of a longterm research project involving INSOR, the Institute of Economy of the Russian Academy of Sciences, the Friedrich Ebert Foundation, and the Center for Social Policy Research of Bremen University. 19

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23 Regional Development: Identifying Competitive Advantages 21

24 In 2009, the Institute of Contemporary Development focused considerable attention on regional strategies of socio-economic development and interregional relations. On January 26, INSOR organized an expert review of the Government's draft Policy Strategy for Socio-Economic Development of the Far East, Republic of Buryatia, Transbaikal Territory and Irkutsk Region through Representatives from regional administrations, federal and regional legislative bodies, the executive branch, and experts participated in the discussion, which identified several problems of the strategy, including the need to specify which industrial zones were most important for the region and clarify the role of the Far East and its future outlook in Experts also noted that it was important to take into account both social and economic factors and called on the Government to think through the region s infrastructure challenges and separate the interests of the state and business. An expert analysis of the policy was sent to the Government. Participants of the March 19 roundtable Investment in the Regions: the Crisis and New Horizons focused on developing proposals for anti-crisis investment policies in the regions. Government representatives and experts agreed that structural changes were underway regarding sources of finance and investment mechanisms. As many projects wind down or are put on hold as industrial production declines and the immediate future of commodities and financial markets remains uncertain, the roundtable sought to formulate new investment policies reviewing market prognoses, setting revitalized economic development priorities, defining an updated configuration of economic risk, and building a new system of strategic planning and regional policy. Together with the territorial administration of the Stavropol Region, INSOR is working on the Strategy for the Development of the Stavropol Region to determine key priorities and long-term strategies for the region s development, as well as possible forms of cooperation between the state, society and business. A discussion hosted by INSOR on June 22 revealed a diverse array of opinions among experts. On one hand, they viewed the region s agricultural and tourist-recreational complex as an important element of the region's future, while on the other they identified social and economic bottlenecks, such as the inefficient use of natural resources and a relatively low level of capital investment and labor productivity, as critical issues. A Cooperation Agreement between INSOR and the administration of the Stavropol Region was signed to promote relations with the region to achieve the best possible results from the implementation of its social and economic development initiatives. Another Cooperation Agreement was signed between INSOR and the administration of the Pskov Region in September after a draft Strategy for the Development of the Pskov Region was presented at INSOR in the summer. Two scenarios of social and economic development of the Pskov Region were analyzed as part of the research. The first aims to maintain the status quo, while the second scenario recommended for implementation outlines active policy steps for regional and federal authorities. The goal of this scenario is to modernize the economy and the social and cultural sphere, taking into account the border factor and putting emphasis on the development of key population centers. The roundtable on Ecological and Energy Efficiency Ratings as an Evaluation Instrument of Regional Competitiveness and Attractiveness, held by INSOR jointly with the Independent Ecological Rating Agency NERA on November 26, discussed ecological and energy security, the state of the environment and environmental management, energy efficiency, and the ecological costs of Gross Regional Product, which can and should be taken into account when developing strategies for regional socio-economic 22

25 development. Participants presented the latest ratings of all Russian regions, comparing the volume of waste (sewage water, pollution, etc.) with the volume of useful product, consumption of primary energy, loss and preservation of natural ecosystems and rare species, as well as the reliability of ecological and energy statistics. On December 4, the Institute of Contemporary Development hosted expert discussions on the Socio-Economic Development Strategy of the Chechen Republic to 2020, which is part of a general vertically-integrated system of documents for the long-term strategic planning and forecasting of comprehensive territorial and industrial development. Participants examined the issue of federal and regional relations in the implementation of regional strategy. 23

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27 Information Society in Russia: A Search for Solutions 25

28 The 6th Tver Social-Economic Forum Information Society, organized by the Institute of Contemporary Development and the Managers Association of Russia with the support of the Administration of the President of the Russian Federation and the Administration of the Tver Region on July 2-3, examined the current state of and prospects for the creation of an information society in Russia. Participants of the forum included the Chief of Staff of the Presidential Executive Office Sergei Naryshkin, Presidential Adviser Leonid Reiman, who also serves on the INSOR Board of Trustees, and Governor of the Tver Region and President of the Managers Association of Russia Dmitry Zelenin, as well as heads of federal agencies, State Duma deputies, representatives of the IT community, journalists and experts. The forum brought together more than 1,200 people from 56 regions of Russia. Participants discussed key topics relevant to the development of an information society in Russia, including: Development and use of information and communication technologies in healthcare, and the social security of the population; Formation of e-government; Development and use of information and communication technologies to increase the quality and accessibility of education, promote science and train skilled professionals in the field of information and communication technologies; 26

29 to the Chief of Staff of the Presidential Executive Office, specific proposals were developed for the draft plan for the implementation of the Strategy for the Development of an Information Society in the Russian Federation in Experts agreed that in the implementation of the regional socio-economic development strategies, it is crucial not only to have federal and industry-specific strategies but also to create an environment of cooperation between the authorities and society and emphasize the development of the human potential of the regions. Legislative and regulatory provisions for the development of an information society; Use of information and communication technologies to ensure personal security; Development and use of information and communication technologies in the regions and narrowing the gap in information development between regions in Russia; Use of information and communication technologies in culture and cultural and humanitarian education. Information technologies are crucial for the effective development of the Russian economy and have the potential to become a competitive advantage for the country. In 2009, INSOR provided substantial expert support for the activities of the Presidential Council for the Development of an Information Society, as well as organizational support for the Council's advisory expert group. In a series of meetings held between the advisory group and Maskut Shadaev, Aide On March 26, the Institute of Contemporary Development hosted the third national forum for corporate leaders in the electronics industry, New Russian Electronics. Participants discussed the current trends in the industry and drew up an agenda for 2009: Develop a strategy for the electronics industry through 2015; Lower import duties on electronic components; Modify prohibitive import duties on foreign electronics; Change the mechanisms used in applying VAT. In early 2009, a special working group organized by the participants of the roundtable National Security of Information Technologies began drafting for consideration by President Medvedev a strategy for the development of information technologies and measures for state support. The working group met several times and expressed its concern about the current state of the information industry in Russia. Participants also voiced their support for creating and implementing a unified conceptual strategy for guaranteeing the technological security of the Russian Federation. 27

30 electronic education, e-government and digital divide and explains how advanced technology can make life more comfortable and work more efficient. The roundtable Internet in Russia Realities and Opportunities on February 18 was dedicated to the results of a socio-internet-monitoring survey conducted by the Public Opinion Foundation at the request of INSOR. The research provides insight into the level of Internet penetration in Russia as a whole and for various social groups, manifestations of the digital divide, and the potential of the Internet as an instrument of forming and enlightening public opinion. It analyzed user perceptions of various Internet services, market growth potential and promising areas for Internetbased businesses, as well as obstacles to broader Internet use. The results of this survey, when compared to similar research conducted previously, indicate that the Internet and the information society have made significant advances in Russia, providing the basis for optimism regarding future progress. The role of information technologies in the development of a modern Russian society became one of the main themes of the Institute s research and promotional work. As part of its publishing program, the Institute issued a book by Adviser to the President of the Russian Federation and INSOR Board of Trustees Member Leonid Reiman, On the Way to a Digital Home. The book uses straightforward language to describe technological innovation and programs aimed at creating an information society in Russia. The book targets a wide audience and defines terms such as smart house, telemedicine, On April 28, the Institute of Contemporary Development hosted a roundtable on New Social Information Technologies against the Crisis, which was organized jointly with the Subcommittee on Technological Development of the State Duma Committee on Information Policy, Information Technologies and Communications. Participants supported a declaration emphasizing that, social networks are turning into an important tool for fashioning public opinion, organizing a dialog between users and authorities, and providing a feedback mechanism between politicians and the electorate. They also agreed that Internet-based structures of self-organization by citizens could be a prototype of an economic, political and social governance system of the future. Participants of the roundtable The Culture of Information Society: The Possible and the Real 28

31 on July 1 discussed various aspects of cultural Internet projects, mechanisms for transmitting information about cultural identity in the former Soviet Union, the problems of communication in cultural communities, and the functions of clubs and libraries in the information era. Throughout 2009, INSOR sought solutions to specific challenges of establishing an information society. The Union of IT Directors of Russia (SoDIT) with support from the Institute of Contemporary Development held a seminar on Freeware in Russia: Reality and Future, Working Out a Common Position in the IT Directors Community. The seminar was attended by State Duma deputies, and IT directors from the Association of Computer and Information Technology Companies, RUSSOFT, Microsoft, IT, Alfa Group, Aeroflot, and the Economic Academy of the Government of the Russian Federation. Participants decided to set up a high-level working group on free software, which, among other things, will help to determine ways and methods for overcoming the crisis through high technologies. The information security seminar Requirements and Practice of Enforcing the Law on Personal Data on February 6 was attended by representatives of the State Duma, the administration of the Security Council of the Russian Federation, the Federal Security Service (FSB) and other related federal services, the Union of IT Directors of Russia (SoDIT), the Association of Information Protection (AZI), IT specialists and academics. For the first time, the seminar was broadcast live on the websites of SoDIT and INSOR, allowing professionals from other regions to watch the discussions online. on Information Technologies, Research and Technology Center IRM, the Academy of Information Systems, the non-profit partnership Moszhilregistratsiya, the Association of Computer and Information Technologies Companies, and many others. At the seminar Modern Education and Science: The Dialog of Theory and Practice on March 25 organized by INSOR and the Union of IT Directors, experts discussed to what degree education programs correspond to the demands of the market, determined the general direction of improving computer technology training outside IT faculties and departments, and developed recommendations to optimize education programs and courses within the framework of education system reform and integration into the Bologna Process. Russia has, in recent years, displayed a steadily growing interest in international ratings in areas such as economics, investment climate, state governance and civil society development. On May 14, the Institute of Contemporary Development hosted expert discussions on the Problems and Opportunities of Using International Ratings. Participants suggested creating a special Internet portal a ratings wikipedia which would allow instant access to any ratings-related information. Seminars hosted by INSOR on August 28 and September 4 were dedicated to the Current Practices and Future of the Electronic Signature. Participants of the seminars included representatives of the Federal Agency 29

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33 State Power and Society: A Review of Existing Institutions 31

34 In 2009, INSOR experts continued their efforts to modernize the Russian political system and institutions of state power. The INDEM Foundation s research Court Reform in Russia: An Institutional and Societal Analysis of the Transformation, A Review of the Results, A Look into the Future served as a reference for a series of discussions held by the Institute of Contemporary Development: Practice of Interaction between Citizens, Entrepreneurs and the Russian Courts (Based on Sociological Research) (June 18); Legal Consciousness of Citizens and Entrepreneurs and Their Perception of Courts and Judges (Based on Sociological Research) (June 23); The Particularities of Court System Transformation in Russia and Transition Countries: What Shall We Do Next? (June 30); Expert Assessment of the Quality of the Judicial System in Russia and Five Transition Countries (July 2). This latter discussion identified changes that have occurred in the court systems of some transition countries (Chile, Latvia, Ukraine, Poland, Bulgaria and the Russian Federation) and emphasized that court reform was often seen as secondary to other reforms and did not always enjoy widespread public support. On October 30, the Institute of Contemporary Development hosted a panel discussion on a report by the Center of Political Technologies: The Russian Court System: Current State and Problems.The findings of the report, based on a series of interviews with representatives of the judiciary, lawyers, academics and the business community, shed light on the attitude of legal professionals and civil society towards both the current state of the Russian judiciary and plans for its modernization. Member of the INSOR Board of Trustees and Chairman of the Supreme Arbitration Court of the Russian Federation Anton Ivanov took part in the discussion. In the latter half of 2009, the problem of improving Russian election legislation came to the forefront. On November 19, INSOR hosted a roundtable on the issue, which assessed the pros and cons of introducing proportional representation at regional and local elections. Large-scale research on Russian modernization processes can only be productive if it takes into account both national and regional/local aspects. The findings of regional field research and the analytical report Russian Local Self- Government: The Current State and Avenues for Development were presented at INSOR on February 5. The research conducted by INSOR in municipalities in 16 regions of Russia made it possible not only to identify points of concern in current Russian municipal practices but also to define the framework for improvements and specify directions for action. 32

35 INSOR experts believe that efforts to develop local self-government in Russia should focus on: Adaptation of the municipal system not just the adaptation of municipalities to the legally defined model (this has already happened to the fullest extent possible), but rather adaptation of the model itself to Russian economic and political realities, as well as Russian mentality and character; Strengthening municipal autonomy increasing the independence of municipalities without endangering the harmonious functioning of state governance and ensuring the effectiveness of public management. Municipalities must become a counterbalancing force that can withstand pressure from regional authorities and guarantee the quality and swift implementation of managerial decisions at the local level; Stimulating territorial development an issue related but not limited to stronger municipal independence. The research findings are presented in the report Local Self-Government in Russia: State of Affairs, Problems, Room for Improvement published as part of the Library of the Institute of Contemporary Development. The results of the first year after the enactment of the Law on the General Principles of the Organization of Self-Government in the Russian Federation were examined at a roundtable held at the Institute of Contemporary Development on December

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37 Наука и образование Science and Education: базовые институты развития The Fundamental Institutions for Development 35

38 Science and education are the key institutions in today s knowledge-based society and economy. They are of paramount importance for defining Russia s strategic goals and specific modernization plans. Academician Valery Makarov, member of the INSOR Board of Trustees, initiated the expert discussion Domestic Science and Global Challenges on November 12. The panel of experts examined the current state of Russian science, with a specific emphasis on limited funding for fundamental research, the poor quality of higher education, and inadequate training and employment of research professionals. On December 11, the Institute of Contemporary Development together with the Federal Service for the Oversight of Education and Science held a roundtable discussion on the Unified State Examination: Perspectives, Room for Improvement. The expert panel discussed the unified state examination, its impact on the education process and the contents of highschool textbooks, and the new system of university applicant selection. The discussion was attended by Lyubov Glebova, Head of the Federal Service for Oversight of Education and Science, and Nikolai Bulaev, Head of the Federal Agency for Education. 36

39 The Modernization Project and Russia s National Identity Public discussion of Russia s modernization is gaining in scope and intensity. INSOR has initiated a series of multifaceted discussions on the advantages and limitations of modernization processes in Russia. The first of these was a roundtable on Socio-Cultural Features of Russian Modernization: Has George F. Kennan s Forecast Come True? held on May 26. During the discussion experts examined the following questions: What attributes characterize Russian modernization? To what degree are Russia's unique attributes determined by cultural traditions of the Russian people and other peoples living in Russia? Can these attributes be turned into social and cultural capital for modernization, securing a special niche and competitive advantage for Russia in the global division of labor? Notes from the discussion were published as part of the Library of the Institute of Contemporary Development. In 2009, INSOR published the book Russian Identity and the Modernization Challenge by Alexander Rubtsov as part of the Library of the Institute of Contemporary Development. The work seeks to define the main characteristics of modern Russian mentality, determine a societal and economic model that would best suit it, and identify the most effective approaches to reforming the political and socio-economic system. The presentation of the book and a discussion of its main theses took place at INSOR on October 27. The Institute will continue to research the subject, coalescing opinions and recommendations of the expert community. Since August 2009, at the request of the President of the Russian Federation Dmitry Medvedev, the Institute has been working on the report Russia of the 21st Century: A Vision for a Better Tomorrow, which will explain the goals of Russian modernization in the economy, society, and foreign policy as well as the organization of the country's military and political structure. Publication and a broad discussion of the report are scheduled for early

40 Appendix Events 12 January Expert Discussion: The Impact of the Crisis on the Russian Economy and Anti-Crisis Response Proposals 20 January Roundtable: Crisis-Related Cost-Cutting in the Oil&Gas Sector: Risks and Impact for Staff 22 January Roundtable: Employment in Russia s Single-Industry Towns: The Challenge of the New Economic Situation. Practical Response 26 January Roundtable: The Far East and Transbaikal: Development Strategy 28 January Preparatory meeting for the Russian-Spanish Forum 3 February Expert Seminar: New Cultural Space in the Modern City 5 February Report Presentation: Russian Local Self-Government: the Current State and Avenues for Development 6 February SoDIT Seminar: Requirements and Practice of Enforcing the Law on Personal Data 3-6 February The Fifth Baltic Research and Engineering Competition, St Petersburg 9 February Report Presentation: Economic Crisis in Russia: Expert View 10 February Roundtable: The Social and Political Impact of the Crisis: Authorities, Business, Society 11 February Roundtable: National Security of Information Technologies 16 February Russian-Japanese Symposium: Modernizing Russia. International Relations and Geopolitical Issues in conjunction with the Center for International Public Policy Studies (CIPPS) with participation of former Japanese Prime Minister Junichiro Koizumi 17 February Meeting of the Expert Council of the Inter- Parliamentary Assembly of Member Nations of the Commonwealth of Independent States Regional Telecommunications Union 18 February Presentation of Socio-Internet-Monitoring opinion poll carried out by the Public Opinion Foundation 19 February Roundtable on the Creation of a Compensation Fund for Unqualified Investors and the Application of a Risk-Oriented Model of Securities Market Oversight 20 February Expert Meeting: Methods for Evaluating Efficiency of Anti-Crisis Measures 25 February Meeting of the Supreme Assessment Commission of the Ministry of Education and Science of the Russian Federation 25 February Presentation of book by Adviser to the President of the Russian Federation and INSOR Board of Trustees Member Leonid Reiman: On the Way to a Digital Home 26 February Meeting of the Center for Innovative Solutions: Employment of Young People in the Time of Crisis 26 February Roundtable: National Security of Information Technologies 2 March Russian-Spanish Dialog of Civil Societies Forum, attended by the President of the Russian Federation and Chairman of the INSOR Board of Trustees Dmitry Medvedev, Madrid 3 March Roundtable: Stimulating Corporate Innovation 3 March Presentation of the books Russian Middle Classes on the Eve of and at the Peak of Economic Growth and The Russian Middle Class: Analysis of Its Structure And Financial Behavior 3 March Seminar: The Difficulties of Introducing and Using Information and Communication Technologies in Schools 4 March Roundtable: Efficiency of Anti-Crisis Measures in the Financial Sector 5 March Presentation of The PBN Company s Review: IPO Pioneers 4 (overview and analysis of all Russian and CIS IPOs) 12 March Roundtable: Topical Issues of Promoting Venture and Seed Investment in Modern Russia 19 March Roundtable: Investment in the Regions: the Crisis and New Horizons 19 March Lecture by Daniel Ling: Microsoft Research and New Computation Areas 25 March Discussion of the 2009 Program of Anti-Crisis Measures by the Government of the Russian Federation 25 March SoDIT Seminar: Personnel Training and Re-Training: Cooperation between the State, Public Organizations and Higher School 26 March Conference: New Russian Electronics 27 March Conference of the National Public Movement For a Healthy Russia 27 March Discussion of draft World Bank Report: The State of the Russian Economy 31 March Roundtable: Ecology and Economy: Development Priorities 6 April Research Report Presentation: Strategies for Russia s Socio-Economic Development: Impact of the Crisis (two volumes) 7 April Roundtable: The Federal Center and the North Caucasus: New Political Decisions and New Challenges 9 April Book Presentation: Economic and Industrial Policy of Bavaria: Lessons for Russian Regions 14 April Meeting between the President of the Russian Federation, Chairman of the Board of Trustees of the INSOR Dmitry Medvedev and experts of the Institute of Contemporary Development 17 April Roundtable: The Economics of Cost-Cutting 21 April Meeting of the Public Chamber Open Budget Portal 28 April Roundtable: New Social Information Technologies against the Crisis 29 April Seminar: Freeware in Russia: Reality and Future, Working Out a Common Position in the IT Directors Community 14 May Expert Discussion: Problems and Opportunities of Using of International Ratings 18 May Meeting of SIGMA Group economists 18 May Meeting between experts of the Institute of Contemporary Development and UNESCO representatives 19 May Meeting of the Roundtable of Russian Industrialists and the EU and alumni of the HEC School of Business (France) 25 May Meeting of the SIGMA group economists 26 May Roundtable: Socio-Cultural Features of Russian Modernization: Has George F. Kennan s Forecast Come True? 38

41 29 30 May 14th International Conference of the Baltic Forum: Global Crisis National Response, Riga, Latvia 1 June Meeting of SIGMA Group economists 1 June Roundtable: The Current State and Development Trends of the Global Economy and the Emerging Markets, attended by HSBC Chief Economist for Emerging Markets Philip Poole 2 June Meeting of the Russian side of the Russia-US High- Level Working Group 3 June Meeting between INSOR experts and Chairman of the Central Bank of Azerbaijan Elman Rustamov 4-6 June Session: Social Policy at the Time of Crisis on the sidelines of St Petersburg International Economic Forum June Meeting of SIGMA Group economists 16 June Book Presentation: Interaction between the State, Business and Society: Positive Reintegration June Meeting of the Russia-US High-Level Working Group, Washington, USA 18 June Expert Discussion: The Practice of Interaction between Citizens, Entrepreneurs and the Russian Courts (Based on Sociological Research) 19 June Meeting of the Expert and Advisory Group of the Presidential Council on the Development of an Information Society in the Russian Federation 22 June Roundtable: Strategy for the Socio-Economic Development of the Stavropol Region 23 June Roundtable on the draft World Bank report on the state of Russian economy 23 June Roundtable: The Legal Consciousness of Citizens and Entrepreneurs and Their Perception of Courts and Judges (Based on Sociological Research) 24 June International Conference: The Russian Derivatives Market 25 June Roundtable: The Financial Architecture of the Post- Crisis World: Efficiency and/or Fairness? 26 June Presentation of the volume: Presidium of the Central Committee of the Communist Party of the Soviet Union (under the editorial leadership of А. А. Fursenko) 30 June Roundtable: The Particularities of Court System Transformation in Russia and Transition Countries. What Shall We Do Next? 30 June 1 July 5th Annual Business Forum of Real-Sector Companies: Crisis: From Survival to Renewal 1 July Discussion: The Culture of Information Society: The Possible and the Real 2 July Roundtable: Expert Assessment of the Quality of the Judiciary in Russia and Five Transition Countries 2-3 July 6th Tver Social-Economic Forum: Information Society, Tver 16 July Meeting of the Public Chamber Open Budget Portal 27 July Meeting with representatives of regional outlets of the Sotsprof trade union 29 July Roundtable to discuss the development strategy for the Pskov Region 31 July Meeting between experts of the Institute of Contemporary Development and Chairman of Bundestag Budget Committee Otto Fricke (Free Democratic Party of Germany) 27 August Report Discussion: The Economic Crisis in Russia: Expert View 28 August Seminar: Russian Policies in the CIS: Assessment and Perspectives 28 August Expert Discussion: Current Practices and the Future of the Electronic Signature 2 September Discussion: Russia of the 21st Century: A Vision for a Better Tomorrow 4 September Meeting of the working groups of the Expert and Advisory Group of the Presidential Council on the Development of an Information Society in the Russian Federation on the use of electronic signatures 9 September Meeting of the Management Board of the Institute of Contemporary Development 14 September Discussion: Intergovernmental Cooperation and the Efficiency of Global Institutions in conjunction with the International Conference: The Modern State and Global Security, Yaroslavl 17 September Roundtable: Crisis Corporate Governance 18 September Meeting between experts of the Institute and representatives of Finnish mass media 18 September Report Presentation: The Russian Economy: From Crisis to Modernization (An Expert View) 21 September Expert Discussion: What Kind of Modernization Does Russia Need: Values, Goals, Means? 22 September Roundtable to discuss transparency of investment projects in the oil&gas sector 2 October Conference: The Dynamics of the Crisis and Vectors of Post-Crisis Development 3 October 6th Russian-Japanese Forum: Prospects for Russian- Japanese Cooperation in Globalizing the Asia-Pacific Region, Irkutsk 6-7 October International Conference on Sudan 7 October Roundtable: Bridging the Digital Divide in the Regions and Forming Equal Competitive Conditions for IT Providers 12 October German-Russian deliberations in Baden-Baden 13 October Roundtable: The Draft Law on the Fundamentals of State Regulation of the Trade in the Russian Federation Positions, Risks, Perspectives 13 October Roundtable on financial communications and investor relations in modern Russia October Russian-German Expert Forum: Forming Social Policy, Bremen, Federal Republic of Germany 15 October Roundtable: Russia of the 21st Century: A Vision for a Better Tomorrow Promoting Information Society 19 October Expert Discussion: What System of Defense and Security Organization Does Russia Need? within the framework of the project Russia of the 21st Century: A Vision for a Better Tomorrow 19 October Roundtable: Lessons from the Crisis and Scenarios for the Post-Crisis World within the framework of the 8th national forum: Strategic Planning in Russian Regions and Municipalities, St Petersburg 39