BRICS Business Magazine English Edition No.5(16)
Looking at the broader issues discussed at the Davos Forum provides an easy way to understand the current agenda of the West. This is a world, first and foremost, of the most prominent businessmen and politicians, who think about medium- and even long-term problems like daily ones, which is perfectly correct. Maybe there is some frustration on the part of the public that the themes are repeated, and that their leaders are not reacting to all of the current problems, but I would like to draw attention to something else. The questions are so serious that any attempt to provide an answer is fraught with difficulties.
And so, on to the challenges facing the world. The first is preparation for the fourth industrial revolution. Everyone is already used to the flow of conversation about how technology is transforming society, and that how some countries are going to be left far behind. But the biggest changes are taking place on the human level. What happens to the very concept of work in rich and poor societies? Will the dream of full employment just cease to exist? The next challenge is about strengthening and improving international cooperation, making globalization more manageable. The existing structures were put in place far too long ago, they are cumbersome, noninclusive and don’t fit the reality of a multipolar world.
And it doesn’t stop there. The economy can’t keep up with demographics. We have to accept the idea that our standard of living will fall or – I have to mention it again – create billions of new jobs. At the same time, the goals of society and those of business, as many educated people see it, often diverge. Short-term thinking, egotistical behaviour and corruption get in the way, which is why market capitalism has to be reformed. And finally, across the globe there is falling trust in institutions and a loss of belief in the future. How this optimism can be returned is an epic job for a superhero to take on. Of course, all these challenges are interrelated, and it’s likely that the last one might seem a little alien, but I am convinced it is fundamental. Only countries that can create an atmosphere of trust and instil their population with confidence will be able to deal with the remaining challenges.
The seven decades since the end of World War II were an era of trade agreements. The world’s major economies were in a perpetual state of trade negotiations, concluding two major global multilateral deals: the General Agreement on Tariffs and Trade (GATT) and the treaty establishing the World Trade Organization. In addition, more than 500 bilateral and regional trade agreements were signed – the vast majority of them since the WTO replaced the GATT in 1995.Opinion
All of the world’s biggest aircraft-manufacturing nations plan to build their own advanced combat aircraft. The scientific and technological inroads made by the Russian aircraft industry will make it possible to reduce the cost of such innovations without any detriment to the quality of new models. Shortly before MiG-35 fighter premiers, Ilya Tarasenko, general director of RAC MiG, told BRICS Business Magazine what determines customers’ choice and what place in the global market RAC MiG will hold in the future.Main issue
A close look at the current geopolitical map of the world shows that almost all of the major aircraft building powers have long borders. This is why military aviation remains the most expeditious and effective means for protecting state borders in the skies, on land, and over the sea. Today, roughly a dozen countries are independently developing military aviation as each of them searches for an optimal combination of features that are in high demand both in the national air force and the armies of foreign states. Historically, those who possess more sophisticated weapons have generally had the advantage in armed conflicts, and it is unlikely this trend will change. However, the cost of such equipment is also increasing along with the time required to develop it and the duration of its service life. The emphasis is shifting to the use of high-precision weapons, operating costs, quality, and simplicity.
Since 2013, when Thomas Piketty published his much-discussed study of the distribution of income and wealth, inequality has been at the forefront of public debate in most advanced economies, blamed for everything from slow growth and stagnating productivity to the rise of populism and the Brexit vote. But inequality remains poorly defined, its effects highly variable, and its causes hotly debated.Opinion
Soon after Barack Obama was elected President of the United States, he told a young girl: “We don’t have enough empathy in our world today, and it is up to your generation to change that.” Obama expressed a widespread view, so the title of a new book, Against Empathy, by Yale University psychologist Paul Bloom, comes as a shock. How can anyone be against something that enables us to put ourselves in others’ shoes and feel what they feel?Opinion
Thanks to unprecedented international cooperation, the world is making impressive progress in the fight against malaria. According to the World Health Organization’s just-released 2016 World Malaria Report, malaria mortality rates among children under age five have fallen by 69% since 2000.Opinion
Arab countries will continue to play catch-up for the foreseeable future. This is an ongoing, imperative factor that defines the nature of the economic and social policy in the countries of the region. This equally concerns states with both a capital surplus and a capital deficit.Opinion
The aftershocks of the recent economic turmoil can still be felt, but emerging markets remain a strong launchpad for successful companies. The strongest and most globalized of them – the world Challengers and world champions – are doing just fine overtaking members of the developed countries club on the world stage, both in terms of efficiency and revenue growth. This is precisely the picture painted by the June BCG report analyzing the situation in emerging markets. BRICS Business Magazine presents an opportunity to get acquainted with the most interesting of its propositions and conclusions.Trend
The public likes to speculate what sources of food the Earth’s population will turn to a few decades from now. A number of different ideas about how food products will develop have been put forward. High levels of poverty in some countries and an even higher percentage of people suffering from obesity in others, as well as global warming, leave us no chance: the style and composition of food products which we are accustomed to today will undergo major changes.
The world’s political landscape in 2030 will look considerably different to the present one. Nation states will remain the central players. There will be no single hegemonic force but instead a handful of countries – the US, Russia, China, Germany, India, and Japan chief among them – exhibiting semi-imperial tendencies. Power will be more widely distributed across non-state networks, including regressive ones. And vast conurbations of mega-cities and their peripheries will exert ever greater influence. The post-war order that held since the middle of the 20th century is coming unstuck. Expect uncertainty and instability ahead.
Conflicts will not vanish, but their origins will become more closely connected to climate change. By 2030, we should expect an increasing number of refugees from Africa, who will journey to Europe, while the attitude of the world community and politicians towards the issue of refugees will hopefully follow the path of compassion rather than hindrance.
The legacy Russian passenger car maker AVTOVAZ is undergoing a major facelift. Not only will it help the LADA brand stand on par with other quality international mass car brands, regaining domestic market share and expanding internationally, but it will also prepare the company for the longer-term Industry 4.o challenges. Nicolas Maure, who took office as president of AVTOVAZ just in April, explains how the company is going to meet these goals in an exclusive interview with BRICS Business Magazine.Technology
To preserve sovereignty in a world that is entering the era of the Fourth Industrial Revolution, Russia needs its own independent technology policy, says Rostec’s Director for Special Commissions Vasily Brovko. He spoke to BRICS Business Magazine on how the state corporation is getting ready for the move into ‘Industry 4.0’, global technological leadership, and how to achieve it.Technology
If you want to know why the startup industry succeeds in such countries as Israel, don’t look only at the money, education, or regulatory regime. The real difference is made by the spirit and drive of the young, to wake up in the morning and conquer the world. This is where the Jewish mother should come into play.Technology
The young Post Bank is one of Russia’s most rapidly developing financial organizations and it intends to operate throughout Russia by opening outlets in post offices. Dmitry Rudenko, chairman of the Board of Directors, told BRICS Business Magazine about the progress in the network’s development, the way the bank works with pensioners, and its understanding with the Postal Bank of China.Practice
Despite the People’s Republic’s sluggish economic growth, the number of Chinese tourists traveling the world continues to grow exponentially. So far, Russia has been losing at the global competition for the hearts and wallets of the growing class of Chinese tourists, so to be able to stake a claim in this exceedingly attractive market, we would have to build modern infrastructure and bring the industry’s regulation system in line with Chinese and global standards.Practice
Having faced a massive decline in Western investments, Russia is trying to discover a financial goldmine in the East. However, Russia’s Direct Investments Fund remains the only significant channel for attracting Arab investments into the country. This is clearly not enough to successfully compete for the gigantic investment resources in the hands of the Gulf monarchies.Practice
Compared to the 2010 figure, the number of exporting small and medium-sized enterprises has almost doubled in Russia. However, the overall picture remains the same: About one percent of entrepreneurs work in foreign markets to this day. Experts hope that the Eurasian economic space could improve the situation. Whether the companies manage to take advantage of the opportunities that it provides depends, among other things, on the Forum for Small Businesses from Regions of SCO and BRICS member-states.Forum
If you have a great idea, you need 50 million rubles or more to implement it, but if you have only one-fifth of that amount, you could try putting your idea into practice in Bashkortostan. To celebrate the Republic’s centennial, its Chamber of Commerce and Industry (CCI) has proposed implementing 100 business projects by that momentous date. Ideas may be suggested by both Russian and foreign legal entities, and the winners will receive financing, government support on a large number of issues, plus media coverage.Forum
A concert celebrating Nelson Mandela’s 70th birthday took place at the London Wembley Stadium in 1988. A day before the event, President Botha declared a state of emergency in South Africa: The authorities understood perfectly well that every revolution needs an anthem. Songs by American Sixto Rodriguez had already shown the National Party that both popular music and its influence on people’s minds must not be underestimated.Society
Several times over the last several months, Steven Hawking, an astrophysicist and a renowned authority on black holes, frightened the general public with his doomsday prophecies for both mankind and planet Earth. The famous scientist is interested in truly long-term processes that exceed the span of human life by far. Moreover, he is usually not as outspoken as his colleagues, which is why his words tend to be taken seriously.