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Russia - On the way to an information society?

Russia - On the way to an information society?. Prof. Kari Liuhto Director Pan-European Institute (PEI) Turku School of Economics and B. A. www.tukkk.fi/pei/e The Annual Conference of the Club of Rome Teliasonera / Futurium Helsinki 11.10.2004.

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Russia - On the way to an information society?

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  1. Russia - On the way to an information society? Prof. Kari Liuhto Director Pan-European Institute (PEI) Turku School of Economics and B. A. www.tukkk.fi/pei/e The Annual Conference of the Club of Rome Teliasonera / Futurium Helsinki 11.10.2004 www.tukkk.fi/pei/e

  2. Russia – geographically giant but economically medium-sized • Some 17 mn square km – some 4 times of the EU25 and twice the US territory • The Russian GDP (measured at PPP) less than 15% of the EU or the USA – comparable to the Italian economy www.tukkk.fi/pei/e

  3. Central Territory 4% Population 25% GDP 33% Ind. prod. 23% Oil prod. 0% Exports 32% Imports 53% FDI 56% North West Territory 10% Population 10% GDP 10% Ind. prod. 12% Oil prod. 4% Exports 9% Imports 20% FDI 8% Siberian Territory 30% Population 14% GDP 11% Ind. prod. 12% Oil prod. 3% Exports 11% Imports 6% FDI 1% Southern Territory 3% Population 15% GDP 8% Ind. prod. 6% Oil prod. 3% Exports 4% Imports 6% FDI 5% Volga Territory 6% Population 22% GDP 18% Ind. prod. 23% Oil prod. 22% Exports 17% Imports 7% FDI 5% Far Eastern Territory 36% Population 5% GDP 5% Ind. prod. 5% Oil prod. 1% Exports 4% Imports 3% FDI 18% Ural Territory 11% Population 9% GDP 15% Ind. prod. 19% Oil prod. 67% Exports 24% Imports 5% FDI 7% Russia’s 7 federal districts Source: Goskomstat www.tukkk.fi/pei/e

  4. Economic living standard(2003 at PPP) Source: CIA World Factbook www.tukkk.fi/pei/e

  5. 7 bad years and 7 good years - how fast the economy grows in the future?(annual real GDP change - %) Sources: EBRD, EIU www.tukkk.fi/pei/e

  6. Glorious past of tele-activity in Russia • 1850 construction of first telegraph • 1879 first telephone call • 1895 invention of radio by A. Popov • 1911 first demonstration of a TV picture in the world www.tukkk.fi/pei/e

  7. ICT development after the Czar period • Absolute decline: Russia has lost her forerunner position in the ICT sector (due to the stagnant Soviet era and less speedy transformation after 1991) • Relative decline: Other economies have developed faster than Russia www.tukkk.fi/pei/e

  8. Russia’s telecommunication sector today (2002) Sources: Goskomstat, Solid Invest, ETLA www.tukkk.fi/pei/e

  9. Russia’s telecommunication market ($ bn) Sources: Goskomstat, Solid Invest, ETLA www.tukkk.fi/pei/e

  10. Distribution of sales in telecommunication (2003) Sources: Goskomstat, Solid Invest, ETLA www.tukkk.fi/pei/e

  11. Usage of cellular phones Sources: CNews, Solid Invest, ETLA www.tukkk.fi/pei/e

  12. Russia’s main data transmission lines Sources: Solid Invest, ETLA www.tukkk.fi/pei/e

  13. Internet access Sources: CNews, Solid Invest, ETLA www.tukkk.fi/pei/e

  14. Digital access index (2002) This index measures the overall ability of individuals in a country to access and use new ICTs. It is built around four factors that impact a country’s ability to access ICTs: 1) infrastructure, 2) affordability, 3) knowledge, and 4) quality. Source: International Telecommunication Union www.tukkk.fi/pei/e

  15. Number of ICT-related graduates in Russia (2002) Sources: Goskomstat, Solid Invest, ETLA www.tukkk.fi/pei/e

  16. Production of ICT equipment Sources: Goskomstat, Solid Invest, ETLA www.tukkk.fi/pei/e

  17. Sales on ICT market ($ bn) Sources: CNews, Solid Invest, ETLA www.tukkk.fi/pei/e

  18. Main offshore programming centers Sources: Solid Invest, ETLA www.tukkk.fi/pei/e

  19. Russia’s foreign trade of ICT products ($ mn) Sources: UN Commodity Trade Statistics, Solid Invest, ETLA www.tukkk.fi/pei/e

  20. Russia’s exports of software ($ mn) Sources: CNews, Solid Invest, ETLA www.tukkk.fi/pei/e

  21. Future view • Giant need for information society in a territorially-giant country(e.g. news service, e-government, e-commerce, e-education & training, e-medical services, etc.) • eRussia 2002-2010 –programme: a necessary but not a sufficient step forward(total budget $ 2.6 bn) • Large investments required (e.g. educational system, R&D, innovation funds, etc.) • Co-operation with leading foreign corporations, universities, and research institutes needed (e.g. EU-Russian common space of research and education) www.tukkk.fi/pei/e

  22. Some advantages of information society • Improving competitiveness of the Russian economy (e.g. time savings, free information access, increasing quality of decision-making) • Efficient tool for administrative reform (e.g. efficient communication and control system, information transparency, distribution of best practices) • Increasing quality of life, particularly in peripheral regions • Increasing equality between regions and citizens • Increasing unity and stability of the country • Enhancing free information flows (i.e. good for democratic development of the country) www.tukkk.fi/pei/e

  23. Conclusion: Russia – on the way to an information society? Hopefully, Russia is on her way to an information society … not on her way to a formation society with less emphasis on democratic development www.tukkk.fi/pei/e

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