Team Russia TI: Lauren Kiek CEO: Joe Meyer Part A In looking at several different graphs from the IF system, those that most caught my notice were those dealing with economic growth and on the quality of life. In looking at the economic side of Russia’s future it is important not only to look at overall forecasts but where the economic growth is originating and where the money to drive that growth is coming from; in hope of deriving this information I look at the Knowledge society, investments, and saving indexes, as well as the physical quality of life index. In looking forward a 20 year projection is used, closing the horizon at year 2025. In first looking at the Knowledge society Index to try to discern the educational and research trends it is clear that all the projections anticipate a relatively steady increase on the Knowledge base index—the question is at which speed it is to increase. The graph shows that Russia is currently in the lower half of the index slowly moving toward the top quarter. According to the graphical projection the best general courses of action to maximize the potential improvement along the Knowledge based index would be “Policy” or “Sustain,” which have roughly the same effect. The worst course to take in attempting to maximize the index would be “Security.” In looking at the Investment trend projection we are looking for funds made available for the development of industries. All the generic policies with the exception of “Markets” project a slump of investments beginning roughly in 2009. The least beneficial course would be “Security.” When looking at the projected slump in the Investment Trend and the projected growth Savings rates it is clear that much of the long term growth in the country will ultimately be driven by internal savings rather than FDI. Following the investment trend it is important to look at where the money for investing is coming from; if there is not sufficient savings within the country for investment firms must obtain monetary support elsewhere or go without. The Savings trend is somewhat alarming with the step decline currently being experienced. This trend projects not only a decrease in savings but to the point that the trend runs into a deficient position. The only general policy approach that minimizes the short term (3-5 years) decline is in the “Market” policy but over the medium (5-10 years) to long term (10-20 years) it does not lead to the best savings rate. After the projected bottoming out of the savings rate, the “Sustain” Approach projects the best long term benefit. While looking for economic growth is very important it is useless if the masses do not reap a level of benefit beyond the costs. Following Russia’s Drift according to general policy in regards Physical Quality of Life Index the best outcome would be to follow a “Sustain” policy, the worst would be along the “Security” trend. However, it is important to note that the margin within which Russia is working is relatively small, within the high 80’s to the low 90’s of the index. Following the aforementioned projections the overall best course in maximizing these areas of interest would be to follow a “Market” and “Sustain” approach while moving away from the “Security” policies. While the “Market” and “Sustain” scenarios have differing focuses they can work together with overlapping, or compromising strategies. The largest incongruity between these two scenarios is in dealing with energy. As far as the goal to minimize the “Security” scenario’s impacts, this is largely fulfilled in moving toward the scenario parameters of “Market” and “Sustain,” as they run counter to each other. Essentially the main goals include overall economic liberalization, increased spending on healthcare, education, and research and Development, while decreasing military expenditures—easier said than done. Part B Overall the goals mentioned above should be readily accepted by members within the group and encouraged by external nations. The two vocations which would naturally be resistant to these changes is the military and intelligence branches as a decrease in military spending could be viewed as a decrease in the ability to maintain current military commitments and a decrease in the country’s ability to protect against internal and external threats to national security. Another problem associated with the proposed agenda is that there is the necessity to pay for the social programs. The fact that only 30% of the current military personnel are serving under contract as opposed to conscripted service makes downsizing a slightly more simplistic matter. However, the country’s disputed territories and border areas increased dramatically with the dissolution of the Soviet Union; until these conflicts are resolved the threat of military action against the country remains unabated. Despite the perceived military threats to the country the downsizing to a military comprised of a greater percentage of contract soldiers could actually improve to overall effectiveness of the military, creating a more streamlined and less expensive military force (World Factbook, http://www.cia.gov/cia/publications/factbook/geos/rs.html). In the years since the fall of the Soviet Union, Russia has liberalized a great deal. However, there is plenty of room remaining for further economic liberalization. Additionally, further social liberalizations and improvements in the observance of human rights are necessary (Dept. of State, http://www.state.gov/r/pa/ei/bgn/3183.htm). Small movements toward the freeing of various institutions would have a dramatic impact on the aforementioned goals. These changes would be strongly supported by other nations; not only does this liberalization appeal to the mentalities of the several largest economic countries but it also helps to foster trade creating a more accessible market to foreign producers. One of the best investments a country can make for future economic sustainability and advancement is in education. It is noted that education is quickly on the rise in Russia , however, the fastest growing segment of education is in the Social arena (business, law, ect) not in the Natural arena (sciences, engineering, ect) (HDR, http://hdr.undp.org/docs/reports/national/RUS_Russian_Federation/Russia_Federation_2 004_en.pdf). While this form of education does help to create a more fulfilling existence and streamline business it does not help to put/keep the country in the technological forefront, nor does it develop new industries. In order to move away from a majority of the country’s exports being derived from natural resources the country must develop new industries and R&D. Notes on IF scenarios: Market approach: Increased liberalization of trade; liberalization of domestic economies; accelerating democratization; Increases in global migration; Increases in foreign direct investment; Increases in the production rate of natural gas; Accelerations in discovery rates of oil and natural gas; Increases in annual productivity gains of .45% Sustain: Attention to energy demand that reduces it by 50%; Increase in educational spending in OECD countries of 10%; Increase in health spending 10%; Increase in R&D spending 10% Security: opposite policies of above except include decreases in military spending by 20% Part C As Russia’s CEO, I feel it is imperative for the well being of my country and of the people to increase health care standards, educational spending and reform, the country’s infrastructure, and to see military reforms aimed at improving readiness through efficiency and moral improvement. To achieve these ends we, as a nation, must increase economic inflows and encourage the growth of internal investments/ reinvestment. As a leadership style I believe in the inverse pyramid. The CEO is not at the top but rather the base; he (I) am not served by all others but is (am) rather a servant of all others. In light of this philosophy I am obligated to encourage and assist my constituents in the promotion of policies where they serve the aforementioned ends. Our CIO (Sylvia Jurado) says we need to promote Healthcare and Education, in this I am in wholehearted agreement. Our CTO (Kaprice Rita) speaks of the need to encourage Exports, again this is one of my main aims. The CBO (Ryan Kelly) says that we must increase trade to improve our citizens’ standard of living; and that we have a large problem of Corruption and a weak Banking System and to counter this the government is dealing with organized crime (CSO-Sean Sumida) to decrease the negative internal influence. The country’s CFO (Courtney Canter) claims we need to improve our Infrastructure and promote a clear Foreign Policy. This Foreign Policy, supported by our CMO (Andrew Hodge), is: we do NOT seek or desire military conflict, our only aim is to defend and improve the lives of our citizens; this we hope to accomplish through mutually beneficial trade and understanding. We believe in our own country’s sovereignty and the right of other nations to have theirs, to this end we shall support our CSO (John Donahue) in his firms trade of Russian produced goods and labor. Russia is a proud country with proud people, and rightfully so, but we are experiencing hard times; as such, I beseech the richer nations of the world to increase foreign aid in the form of medical, technological, and financial aid. This Aid will be returned to the world through a decrease in the trans-global HIV threat and promote health, productivity, and happiness of an entire nation of people and, indeed, the entirety of the world. Although the danger of our dependency on foreign aid has been pointed out by our CFO the benefit to our people outweighs the threat. Ours is a resource rich country and we hope to engage in fruitful international trade of our resources. However, we will not merely expend our resources without reciprocation. We hope that our current and future trading partners will invest in us with their technology and innovations as we invest the goods of our lands in their growth. We have a growing internal demand for (foreign) produced goods as such we offer a growing market to foreign firms. Peaceful solutions are always the most attractive of options and we hope to encourage peaceful cooperation between nations with the aim of a safer world. =============================================================== ==================== CFO: Courtney Canter Section A The above graph shows the Power Index of Russia from the year 2000 to the year 2020. From the graph we can see that the power index of Russia peaked in about 2004, and it’s pretty much a slow decline to 2020. Through trade, alliances, and strong advocacy of technology education, Russia can take steps to avoid this outcome. As a land that is rich in natural resources such as timber, minerals, natural gas, and oil, we can be a valuable trade partner. According to the IFs model, Russia’s GDP has increased since the year 2000, and will continue to do so in the future. Russia can use this money to pay off its debts and invest in the education of its people and the infrastructure of its people. According to the CIA’s world factbook, while Russia possesses a “wide natural resource base including major deposits of oil, natural gas, coal, and many strategic minerals, (and) timber…formidable obstacles of climate, terrain, and distance hinder exploitation of natural resources (World Factbook).” If Russia can develop technologies to combat these factors, it would undoubtedly be one of the most valuable trade partners, especially for countries who are dependent on imported sources of energy. If Russia were to supply these natural resources to countries, such as the United States, it’s power would certainly increase as those countries would be dependent on Russia. The above graph shows the dependency of Russia on foreign aid. As the graph clearly shows, Russia becomes increasingly dependent, borrowing an upwards of four billion dollars by the year 2020. These figures should be a cause of concern for Russia, as we struggle to regain our place in the international community, not as a developing country, but as a self sufficient country and a powerful ally. Russia needs to lessen its dependence on foreign aid to be respected within the international community. Russia has more natural resources than any other country and it also is the largest country in the world (in terms of land, not population). Once Russia is able to utilize its own resources, it can take its natural place as a world power and as a strong partner in trade. This forecast is important, as we realize that in order to be an international power, we cannot be dependent on foreign aid. As I mentioned earlier, Russia’s GDP has increased over the past six years, and continues to increase every year. Russia can use some of the money from its growing economy to pay off foreign debts. Our group is also seriously considering selling many of our nuclear weapons to help us pay off our debts and to also invest in our infrastructure. Section B Since the fall of the Soviet Union, Russia has struggled to establish itself as a democratic capitalist society. In order for Russia to once again become an international power, it must work from the inside out. Revamping the infrastructure of Russia will allow for increased productivity, hence increased trade and power. Making alliances will be key to the development of Russia’s economy, and the security of the nation. Even though Russia is by far the largest area country in the world, it ranks 12th in the number of roads it has. According to the CIA’s World Factbook, roughly 33% of Russia’s roads are unpaved, which is definitely limits transportation accessibility. This is just one example of an area of infrastructure that needs to be changed. Building and fixing roads will allow development to areas where that may not have been previously possible due to inaccessibility. And according to the CIA’s World Factbook, “Russia's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, and widespread lack of trust in institutions. (World Factbook)” Increased trade will allow for Russia to increase it’s GDP while forming alliances and friendships with other countries. Russia’s largest exports are oil and natural gas. According to the World Factbook, Russia is the second largest producer of oil, and the largest producer of natural gas in the world. While these resources are extremely beneficial, it would be advantageous to the Russian economy to invest in technology and other forms of energy. Russia can remain a leader in exporting energy if we develop new, more fuel efficient and environmentally friendly sources of energy. While, for now, oil and natural gas remain the main sources of energy, eventually as these resources run out, the world will need energy alternatives. As of right now, Russia has no real allies or a definitive foreign policy. This is something that will have to change in order for Russia to establish itself as an important member of the international community. Because of the instability and tumult in the recent history of Russia, it would not be very wise to make enemies. Russia must gain stability by encouraging peaceful relations while maintaining its own national security. Russia is looking to make alliances with countries that will agree to trade with us, and protect Russian interests in their own countries. While Russia promotes a policy of peace, we understand that some other countries may view us as a threat due to our possession of nuclear weapons or our abundance of natural resources that could possibly help us once again become a world power. This is why we would like to ally with countries that will help neutralize any threats towards Russia while being beneficial to both economies. Works Cited 1.) The World Factbook. Last updated January 10, 2006. <http://www.odci.gov/cia/publications/factbook/index.html> 2.) International Futures. Barry Hughes © 1989-2005. <http://www.ifs.du.edu/> Russia Seeks to Make Alliances The Chief Foreign Officer of Russia has announced today that it would like to begin making alliances with other countries, to benefit trade and security for Russia and its allied partners. Russia’s first priority is internal stability and the flourishing of Russia’s people. It is believed that by importing technology and other manufactured goods, Russia can better its economy and its people. Countries such as Japan and South Korea possess technology that will help Russia, and Russia, in turn, is a large exporter of oil and natural gas, which may be of interest to many other countries. Russia also seeks to make alliances which will ensure its national security. Though Russia sees many of the countries in the international community as nonthreatening, it is in the best interest of the Russian people for the government to make alliances that will ensure their safety. Russia could also provide protection to countries in exchange for trade. As previously stated, Russia’s first priority is the well-being of its people, and the infrastructure. Russia believes that with a focus on education and healthcare, as well as the development of technology and improved internal conditions, the country will once again be able to prosper. Russia is willing to work hard to gain the trust of other countries and make trade alliances to bring money into the country and to its people. For countries with little strength and few natural resources, it would be advantageous to ally with Russia. It is the second largest producer of oil and the largest producer of natural gas in the world. Russia is also rich in timber and raw materials. Russia’s leaders are expected to meet with the leaders of other countries in the international community to further discuss matters of alliances, trade, and security. =============================================================== ==================== CIO: Sylvia Jurado Essay 1 Part A. Two important things to any country, in my opinion, are Education and Healthcare. The two graphs that can relate to both Healthcare and Education are the “Literacy Rate” and “Infant Mortality Rate” graphs. Both graphs show trends heading in a positive direction over the next twenty years for Russia. With literacy at about 98% the trend continues to show that in the next twenty years the rate will be at 100% of the population will be literate. Which shows that Education plays an important role in the “Quality of Life” in Russia. Aiming to better one’s self through Education should be an essential message the government should be working on to send. With the infant mortality rate on a downward slope shows how the government is working on a better healthcare plan. “Working on more preventative methods as opposed to on the spot treatment” (CNN.com Healthcare in Russia) Health and Education are two factors that can be incorporated into Maslow’s Hierarchy of needs. Taking care of the needs of one’s health as a “physiological need” and education that can tap into not only the “feeling of belongingness” but also the “selfesteem” aspects of the hierarchy. When it comes to the GDA model the goals would be to make sure the people of Russia get the best care possible. The pressure to get money to fund these programs will be a challenge but it is a possibility with the opportunities with other countries and with funding going in the right direction. Focusing on Health and Education as important policies for the people of Russia can be successful even if it is a slow process. Part B. “It was inherited by the Soviet Union without any significant changes and back then education of all levels were free to anyone who passed the entrance exams, when they passed the students were provided with small scholarships and free housing giving students that couldn’t afford it the opportunity to learn.” (http://en.wikipedia.org/wiki/Education_in_Russia) Even though the education system went through a rough time during the collapse of the Soviet Union it still remained intact while struggling financially with the goal of continuing higher education. “With over three million students attending over 519 institutions of higher education, 48 Universities, with an emphasis on Science and Technology, a major focus on Russian Medical, Mathematical, Space and Aviation. With the literacy rate at 99 percent and having the education equivalences of Ph.D’s and Doctor Degrees,” (http://en.wikipedia.org/wiki/Education_in_Russia) it is easy to say that Russia is on the right track of higher education. Continuing the tradition of Keeping Education at the level that it is at is a must and should continue to stay at the top of the list when it comes to government funding. Healthcare in Russia on the other hand is in the opposite side of the spectrum. With the infant mortality rivaling that of Third World Countries in some regions of the country, the lack of education in the pre-natal and post-natal care for mothers play a big role. Infant deaths and illnesses are possible to prevent with proper education. “The long-term economic impact of unhealthy children born in the past decade is already a serious limiting factor to Russia’s emergence as a strong economic partner and international actor…. with expanded investments in infrastructure and education, improved access to quality care, and reform of Russia’s healthcare sector…Russia on it’s own cannot finance this…untapped opportunities also exist for collaboration between Russian, European, and American civic groups, healthcare experts, scientists, and policy leaders that would have a positive impact on maternal and child health in Russia and beyond.” (exert taken from http://orpahndoctor.com/adoption/offline/russia healthcrisis.html original article http://psp.jews.org/highlights.cfm ) Going back to the Maslow’s Hierarchy of Needs, to be able to satisfy the physiological needs alone with the improvement on Healthcare can help fulfill the base of the hierarchy. Giving the people of Russia the opportunity to go to the next level. Education on it’s own can also hit the different levels of the hierarchy, for example the feeling of belongingness to be apart of the society and knowing what is going on and to respond with an educated answer just gives you that self-esteem (another level) to know you are respected for your knowledge. It just helps you reach your Ideal. Education and Healthcare will be on the top of my list to continue to push into policy. Along with working on a better plan for health and education I will also work on finding needed information for my group members be it, who will be our ally, who will be willing to trade and working closely with the CSO’s. Working with the CMO to find out who our enemies are. Learning as much as I possibly can about what is going on in the other eight countries that will affect my country is what my group members can rely on me for. Part C With previous conversations with my group members bettering the country of Russia, in all important aspects, (i.e. Healthcare, Education, Military, Agriculture, etc.) is the mutual goal. Being able to work together and knowing that my team has similar goals, even if in different aspects of the country, in the end we all have the same conclusion, to make Russia a better country for the people living in it. Having the resources that we have at out fingertips should motivate us to put education and healthcare as top contenders for policy attention, improving our education can give us the advantage in agriculture, trade, military, etc. and can help us better ourselves as a country. Russia has always had a negative association with the world, and working on giving us a positive name or reputation is a must if we are to develop relations with other countries and continue to trade. The goal is not to just trade and do business but to also have a positive relationship with them. Being able to give help and receive it. I know that with Health and Education alone we could use outside help to go with our funding, using methods that are already into effect in other countries that could also help us better ourselves. Russia has been a democracy for years now and I think the target of our country’s policy isn’t to find the next war to fight and attempt to dominate other countries. The objective here is to advance and progress. Focusing on the people of Russia and working towards giving them what they need. Work’s Cited “Education in Russia.” Wikipedia the free encyclopedia. February 17, 2006. http://en.wikipedia.org/wiki/education_in_Russia Massey, Stephen. “Russia’s Maternal & Child Health Crisis.” Orphan Doctor. February 7,2003. http://www.orphandoctor.com/adoption/offline/russiahealthcrisis.html =============================================================== ==================== CMO: Andrew Hodge RUSSIA: From Communism to Capitalism OIL EXPORT Currently Russia is producing 3 billion barrels of oil annually. In 2010 we will be producing 8 billion barrels. That will more than double income from a product that will only become more expensive as the world supply dwindles. These gains can only help fund more military spending. Oil and nuclear energy will help bring Russia back to it's booming past. Also it will allow the world to be less dependant on Arab oil. IMPORTS In order to build trust and proper relations with foreign countries we must do business with them. Russia will be importing 75 billion more products 4 years from today. This is no cause to worry, because exports will still be higher. Importing more may and should build stronger bonds with smaller countries needing our military aid for hire. Trade is necissary to clear our stockpiles of weapons from the cold war era. EXPORTS 15 years out of the Soviet Union and Russia is growing very well in exports. From 170 billion dollars this year to a projected 400+ billion in 14 years. This trend shows an increase in GNP and can allow for military spending again. By 2010 exports can start funding new armament and help defend our borders and cities from terrorism and communism. SECTION B: WHAT CAN I DO FOR MOTHER RUSSIA? As Chief Military Officer I am in charge of Russias dwindling delapitated military. My team will depend on me to protect and secure our borders as well as deal with our foreign interests aswell. The CIA world factbook states that annually 1.3 million men reach military service age, and currently 35 million are eligible. Also the world fact book states, “.. at the end of 2005, the Army had 40 all-volunteer permanent-readiness units to be formed in 2006; 88 MOD units have been designated as permanent-readiness units and are expected to become all-volunteer by the end of 2007; these include most air force, naval, and nuclear arms units, as well as all airborne and naval infantry units, most motorized rifle brigades, and all special forces detachments.” This is a great step forward from the days of forced conscription in Russia's dark past. I will be depended on to maintain our current foreign policy, being the fist of justice. Influencing alliances and possibly liberating small nations from much larger empires. We will stay neutral in other countries squabbles. We will not be drawn into wars without Russian interest. I am calling for at least a 25% increase in military spending and increased benefits for our permanent military. Also, the launching of advertising campaigns to help recruit more qualified and educated soldiers. This will not be like the arms race that brought Russia to it's knees in the early 90s. Our new military will be focused on non-nuclear capibilites and more environmentally friendly options. It is in the world's interest for us to avoid using nuclear weapons until there is no other option for Russia's safety as it was in the past. I am looking forward to creating military bonds with other European and Asian nations. Military weapons and technology sale is currently being debated. It is not set in stone if or will Russia will risk arming any potential enemies again. We learned our lesson with Afganistan and will not have Russian troops killed with current Russian techonology. Hopefully military intervention will not be needed in this simulation. I am relying on other members of my team to maintain proper relations and not need my intervention or retaliation. In a final note I would like to express that the sovereignty of Russia is strong and the nation of Russia will not respond nicely to terrorism or other military threats. C. RUSSIA: A NEW FOREIGN POLICY Russia's past has been marked by strong nationalistic pride and strong military rule. War and suffering are not new concepts to Russian citizens. As Russia's current military leader I will not pursue war, in vain, like many other leaders have in the past. With our youth moving more towards personal freedoms and free trade our government will need to rely on new bonds and friendships with other countries. My policy is to maintain and help build a new military. A military without forced conscription and a less black and white foreign policy. I want a new Russia lead with economic growth and a new supportive military. Using post WWII American and British militaries almost as a model of how to involve our friendly military in world issues. Our military is no longer an oppressive power. Russians are strong willed kind people, and as Russia's Chief Military Officer I will not disgrace our citizens. I will empower them. The US militaries involvement in Iraq may be debatable, but it is a step in the right direction to secure the world from the new threat of global islamic extremism. It is my current proposal to send military support to the fight against these extremists. Iraq is not the focus of our concern. Russia will focus it's terrorism campaigns in its bordering nations. Eastern Europe and South East Asia need help in their struggle against these extremists. “Al Qaeda, or ‘The Base’, was formed in 1988 by Osama Bin Ladin and his associate Mohammed Atef to bring together Arabs who fought in Afghanistan against the Soviet Union invasion...Al Qaeda is reported to have a global reach, and the countries where it maintains a presence include Algeria, Egypt, Morocco, Turkey, Jordan, Tajikistan, Uzbekistan, Syria, Xinjiang in China, Pakistan, Bangladesh, Malaysia, Myanmar, Indonesia, Mindanao in the Philippines, Lebanon, Iraq, Saudi Arabia, Kuwait, Bahrain, Yemen, Libya, Tunisia, Bosnia, Kosovo, Chechnya, Dagestan, Kashmir, Sudan, Somalia, Kenya, Tanzania, Azerbaijan, Eritrea, Uganda, Ethiopia, as also in parts of the West Bank and Gaza. (www.satp.org /satporgtp/usa/Al_Queda.htm)” Al Queda is a large effort against not just Americans, but all non-muslims around the world. Just as the nazi's fought to eliminate a race of people these extremists want to cleanse the world of Jews and Christians alike. Currently I am busy fighting rebels in Chechnya. I am calling for a heightening of military presence in the area and am open to foreign involvement. Russia welcomes other countries to help fight these extremists and produce security for Russia's majority group (Eastern Orthodox Christians). I am currently demanding that other countries will not grant asylum or protect these terrorists. These are all the current military policies I am willing to make public at this time. I hope the world will grow to incorporate Russia's growth and military potential to the greater good of the world. =============================================================== ==================== CBO: Ryan Kelly Simulation Essay #1: Russia Section A. After discussing the economic future of Russia with all of our group members, our attention was drawn to the simple need of more money in the country to better the standard of living for the people of Russia. With this being known, we looked at what we as a country possess, that could be used to our advantage in conducting world trade in order to generate more income for our country. What we learned is that we have raw materials such as oil, timber, metals and natural gases, which are good things to have in a world where dependence on energy sources and more importantly alternative energy sources, is going to be crucial in the coming decades. If we look to Maslow’s model to see where Russia stands as far as its needs, Russia as a whole seems to be in good shape. It looks like Russia has the resources it needs for survival, it doesn’t seem to be in any immediate risk in regards to their national security, and they seem to have a place in the system with a pretty steady power index over the next 100 years (Hughes). The only problem is they don’t have enough money to improve their infrastructure in order to make living in Russia healthier and of higher quality. If we look at Russia in terms of the GDA model, it makes our needs a little clearer in order to map out our economic future. Right now, our actual, or our vision of the present is not great, but we have a good place to start and improve. Drift is where we see our self as a country improving substantially. We feel that we have things to offer the growing world. We have the raw materials that other countries need to keep building and producing products, and more importantly we have natural gasses that can hopefully be used in the future for an alternative to oil. This brings us to our goal because we hope that if we can offer these products to the world, then hopefully we can get some money flowing into our economy and make Russia a stronger world power. From looking at our GDA model, we see that we want to really focus our energy on exporting more and importing less. If we look at the International Futures graph for exports in Russia, we see that the amount of exports are forecasted to gradually rise over the next 100 years. This graph is a good sign for the Russian economy because it shows how overall, each of these export categories are expected to increase revenue, while the security basically stays even over the next hundred years. If we want to look closer at what we believe is going to be our most essential export, we have to look at a graph of consisting only of energy exports. This graph shows that in a time where energy is in high demand, we are going to be able to profit a great deal. Because of this, not only we will improve the state of our country financially, we will also be able to get an upper hand in trade negotiations, helping our world status even further. Looking at Easton’s model, we see our anticipated trends as far as what we can offer the world. Because of what we can offer, we would expect that other countries would be willing to trade more technology with us, as well as be encouraged to build factories in our country to create more jobs and improve our economy even more. Given that these demands are met, we would expect to be more respected as a world power, and hopefully get support from other countries that have tended to not support us in the past. If we are able to accomplish all of this, Russia will improve in Laswell’s model as well. With more money in our country, we will be able to improve health care and education, making our society safer and healthier, more educated, as well as a more skill-based work force. Section B. After looking at information on Russia and its economy, it looks we are headed in the right direction. Now the question is how we are going to keep the steady improvement that has been going on for the last six years or so going in the right direction. The answer is foreign relations as well as developing credibility for our economy. This being said, we are going to have to put more government control on business in Russia. Things like corruption and a weak banking system are going to scare investors away from putting money into our economy (U.S. Dept. of State). Our biggest asset is going to be energy. Not only do we have oil, we also have natural gasses that may prove to be critical in the future of energy sources. With that being said, we need to use these commodities to our advantage and use them as bargaining chips to get more things that we need like electronics, from places like the U.S., China and Japan. We are in a good position to be in, but we need more technology to take care of our people at home and make Russia more technologically advanced. In return for the valuable raw materials that we have to offer the world, we are going to demand some things in return. We are going to want military support and cooperation from the U.S., which at this point seems to be going in the right direction due to shared beliefs about world peace. With the improvements in our economy, we want more investors to step in and be confident in our improving financial system. We expect the response to our actions to be positive and beneficial to us and the world in general. We do not want to do anything to upset anyone, because we are in favor of world peace. We hope that since we have valuable resources to offer the world, then in return we can get things that we need in order to improve the quality of living in Russia, as well as confidence in our country as a respected world power. We feel that if we hold up our end of the bargain and make Russia a safe place to invest and promote business, then we will be able to continue to move the economy in our country in the right direction. Table of Sources 1 2 3 www.ifs.du.edu http://state.gov/r/pa/ei/bgn/ http://www.odci.gov/cia/publications/factbook/ - http://en.wikipedia.org/wiki/Russia Section C. The Economy of Russia is in a critical state. Right now it is more important then ever that we make sure we keep the Russian economy moving in the right direction. That being said, we in Russia would like to promote trade with various countries of the world, with most of our energy being focused on the U.S., China, and Japan. In Russia, we are suffering from a lack of technology. That is one of our biggest problems, and we feel that if we can gain more technology and more knowledge and training regarding technology, then we can improve many aspects of Russian life and more importantly just raise the level of the quality of life for the Russian people. With new technology, we will be able to make our hospitals safer and better equipped to take care of the sick. We also feel that not only will students of our nation benefit from more technology available to them in school, but also we feel that giving them knowledge about how to build this technology will benefit the good of our country as an independent nation for many years to come. What we are willing to offer in trade for the knowledge and skill of technology are the valuable resources that we possess including oil, natural gasses, metal and timber. By helping Russia in its desire for a brighter future, we are willing to help countries like the countries mentioned above, with the energy crisis that they are bound to be haunted by in the near future. We feel that our natural gasses could be an enormous asset for countries that are desperate for an alternate to the limited supply of costly oil. In the mean time we are willing to sell our oil, but that is only a short term solution to a long term problem, and the development of an alternative source of energy from our resources will be a much more valuable investment for these countries. We are also aware that Japan is looking to acquire timber for our country. We see this as an excellent opportunity to help each other with things that we both need. From Japan we would expect more technology to be brought into our country, and we also hope that in the future Japan would be willing to look into setting up factories in our country for their growing technological needs. This would be a great asset for us in order to get more Russian people full time jobs and get more money moving in our economy. We expect that the U.S., China and Japan in particular would support our ideas for the future, and we would be willing to cooperate with various other countries as well. We see the consequences of our trade relationship as minimal, and don’t see ourselves as stepping on any other country’s toes with our ideas or planned actions. We know that these countries will demand a lot from us for their technological products and knowledge, but we feel that our supply of oil and natural gasses should be enough to keep all parties involved satisfied. Here in Russia, these trade relations and economy boosts would do nothing but improve life for the Russian people. We are looking forward to creating jobs, a healthier place to live, and eventually be able to invest in a better infrastructure for the country. Cooperation and good relationships with all countries are what we are looking forward to creating, and hopefully we have what you are looking for to succeed in your plans for a better future. =============================================================== ==================== CTO: Kaprice Rita Section A The future of the Russian economy was an interesting topic in our group. The biggest thing that we talked about was the development of a stronger internal structure and trying to help the alcoholism in our nation. We also noted that Russia had many natural resources that it could access to make it a stronger country. Natural resources, such as oil, natural gases, and metal, could be used to make the economy stronger in a time when natural resources are becoming scarce in a dependent world. Using Maslow’s model, Russia seems to be doing pretty well. In general, the basic survival needs of the country are being met. The security of the country seems to be stable at the moment, as there are no big threats on Russia at the moment. The one problem that Russia may encounter is its alcoholism. This could keep Russia from becoming as strong as it has been or could be. Russia is also doing well in accordance to Lasswell’s Value theory. The country has a tremendous amount of skill and resources, and it is certainly capable of becoming the world power that it once was. Russia also has the money to fund different programs that it might want to try, whether in the economy or otherwise. The only thing that Russia may lack in Lasswell’s theory is the heath aspect. Because of the alcoholism in the nation, many of its people are not in good health. Russia needs to find someway to change that fact. It would be a huge factor in their future. The GDA model can also be used in Russia’s case. The Actual of Russia, of what we hope the future to be, may not be all that great. Russia needs to make some changes in its internal structure before it can become a huge world power again, but it definitely has the potential. The drift of the country shows that Russia is capable of becoming a base of the world’s economy. It could use its natural resources to export and also use internally to help the nation’s growth, especially since oil is abundant at the moment, but could easily be depleted through over use. Russia’s goal can be determined from these factors. In a best case scenario, Russia would be able to build up internally and defeat the alcoholism in the country. It could also research alternative economies or sources of energy, as the natural resources in Russia are bound to run out. This graph shows the Gross National Product of Russia. The Gross Domestic Product of Russia seems to be growing at a steady pace currently, but in the near future the economy will not be as successful as it is now. As the CTO of Russia in our simulation, this graph had many meanings to me. First of all, this graph shows that right now what Russia’s economy is working and will continue to be successful for the next ten to fifteen years. On the other hand, the graph shows that the economy will not always remain as stable as it is right now and plans for a better economy in the future need to be put in place. In my simulation group I could look for ways to expand the economy, since now it is heavily dependent on other countries. The investments of Russia are another positive aspect of Russia’s economy. It seems that Russia is rising back to the power that it was before the fall of the Union. The trends in the graph show that the changes made in Russia over the past few years have made a difference in the stability of the country. The one thing that seems to be a little disturbing is the sharp rising and falling of the graph for the last ten years. It is something that should be considered so that we can find ways to avoid it. Easton’s model allows us to look at Russia’s facts and use them to anticipate trends. Since Russia has many things to offer other countries. Because of this, it can be expected that Russia will be able to become allies with many other powerful countries and work with them to become a world power again. Section B The Russian economy is heavily based on exporting goods to other countries. Right now the economy is flourishing because of the high world demand for oil and other natural gases. But the supply will run out eventually and Russia needs to prepare for that. In order make sure that Russia is stable in the future, it needs to form good relations with other countries that will help it return to power as well as developing a better internal structure so that the needs of the people are fulfilled as best possible. The best way that Russia can gain right now is through the use of its natural resources. It could use the metal and timber that is available to them and make build or export them. They could also use their other natural resources to build relations with countries like the United States or Japan and try to gain technological knowledge from them. This would enable Russians to use the new technology to build other industries and diversify their economy. That could also lead to an even more stable future for the Russians. Russia could also build up more social programs in the country. As stated earlier in the paper, Russia has a severe alcohol problem and could start some programs for the rehabilitation of alcoholics. Russians should develop more skill based jobs in the country. While creating jobs is easier said than done, Russia is suffering from a great deal of unemployment and underemployment. If Russians were able to create more skilled jobs, then the quality of living in the nation would rise and it would be off to a better start. While Russia is stable at the moment, it will not last forever. Russia needs to prepare for the future, not only worry about the present. If Russia is able to form better relations with powerful countries, get rid of some alcoholism, and develop more skill based jobs, the future of Russia will be very bright. Section C Russia to Trade Raw Materials for Technology Over the past few weeks a major discussion in our group was how to help Russia grow into an even better country. Our country needed to develop a better infrastructure as well as find a way to get better technology. Through our research of the country, we learned that Russia is rich in raw materials and we could use that in our favor. Russia is rich in oil. In order to gain better technology from other countries, Russia would be willing to set up trade with different nations in exchange for new technology. For example, the United States is known for consuming the most oil in the world. It also has some of the best technology in the world. If the United States wanted to, Russia could set up some sort of trade system to send them our oil and they could share some of their technology with us. Russia would benefit from setting up trade with another country. The goal of our group in the simulation is to strength the infrastructure of Russia and in order to do that we need to fund our different programs. From selling the raw materials, Russia could fund the rebuilding of important cities as well as start more social programs that would benefit its people. Russia would also benefit from the technology that it will gain from other countries. The new technology would allow Russia to create new machinery or buildings that would greatly benefit the Russians. It would allow the Russians to gain a higher standard of living. The demand for trade of raw materials should be high. Right now, the demand for oil is great throughout the world, and the prices are quite high. If Russia was to charge a slightly lower price for the oil and then also ask for some technology, then the entire world would benefit. The world would get cheaper oil and Russia would gain much needed technology. Russians using its raw materials as a means of trade would benefit the entire world. It would allow Russians to gain a higher standard of living and learn to help themselves and it would allow the other nations to maintain their standards of living as well. Works Cited www.wikipedia.org/wiki/Russia www.russianembassy.org www.cia.gov/cia/publications/factbook www.state.gov =============================================================== ==================== CSO: John Donahue Section A Analyzing the most recent trends in the given past for the economy of Russian military surplus gear, Russians need not to worry. Many given countries throughout the world still rely on many given articles to supplement their individual given needs (in accordance to the GDA model, as in goal). As a country that displays overall might in the realm of foreign arm’s exports, Russia is the key player in dealing military arms, and is the most cheapest, yet reliable source to deal with in the world. As you will note in the graph (1.1) Russia still remains the most influential source of desired exports. As stated in the GDA model, Russia will still remain a power and “attain goals against resistance.” If we are to analyze Russia’s situation in the terms of Maslow, we see that for the most part (at least in a purely future based model), that Russia is fulfilling its basic needs of survival. Yet, there seems to be a looming threat possibly in the two realms. Those realms being “survival” and “community.” Although there is health care provided to the general Russian populace, there a growing sense of doubt, burdening the current health care infrastructure (something Russia needs to comply with). 1.1 Military Arms Russian exports will and for sometime in the short term keep other suppliers out of the competition. Other countries are offering far fewer quantities of surplus and mean to gain no profit of it because of over inflated prices. As the largest private company that sells surplus gear, Rosoboronexport (or ROE), will continue to dominate the global market due to in part the sheer number of post—Soviet arms built around the Cold War. Analyzing Lasswell’s theory we realize that although Russia is a large country, it is a large country with a small population of people. It may have the “inner” skill, but Russia needs to strive to maintain better “outer” skill as well. We note that Russia has and will continue to be enlightened and certainly skilled to the near future, but Russia needs to focus on “inner” sources. Russia needs to open up a more dynamic group of businesses (in this case “arms”) to make the market more competitive and more profitable for companies. 1.2 Military Arms Section B In a recent ROE report, the government of Russia cites, “that ROE accounts for more than 90% of the Russia's annual arms sales.” This is mainly due to the fact that ROE is the official export/import company of the Russian government. ROE has now been dealing with over 60 countries world wide, since its inception over 5 decades ago (graph 1.2). It would be useful to other countries to recognize that ROE does not just sell guns, missiles and tanks. ROE also takes in further trade capabilities to the next level. The next level in being that the company provides assistance in the construction of roads, runways, buildings, repair of weapons and refitting of materials. While keeping in mind the sole source of military gear, from ROE, I will as one of two CSO’s of the group, provide assistance to other countries that may desire to have Russian goods/services. It is imperative to recognize that the rest of my fellow colleagues and I see to it that we provide the best in quality, yet affordable, prices for Russian services. Keep in mind that our service is not just limited to the exploitation of weapons, our field is very diverse (this in essence is fulfilling Maslow’s need of “security”). In part of fulfilling the need of security Russia is dominant in this area of export. It is the foundation of economic survivability. With the specific goal of supplying countries that want our goods and services, I will be working closely with all members of the group to insure relative cohesion of the government. Yet, my role will deal more dynamically with the CEO, as well as the CMO of our organization to better understand the dealings of other countries. Lastly, it is important to note that as one of two CSO’s, I have no military capacity. ROE is strictly a private organization, set outside the government with only the intention to aid in economic growth. Section C Under Russia’s current policy will continue to allow countries that desire certain goods to be attainable. Russia is certainly able and willing to work around situations that may prove to be difficult between feuding countries. Russia will continue to center itself as a neutral country, not permitting to take sides on the exportation of goods to countries. However, Russia will not tolerate being bullied by other countries that may choose to blackmail, or coerce by hostile intentions to gain goods. We will never empower those that we may believe that wish us harm. It is our intention to only provide to countries that maintain “friendly intentions” with Russia. If a country abruptly ends or ceases to respect Russia’s agreements (pact/treaty), we will discontinue the sale of our goods (if recognized as receiving goods presently). Russia firmly believes that most of the countries will honor the establishment of all present sales of goods. Yet, Russia knows for a fact that some countries may wish to withdraw from the current purchasing of goods, and as a result, Russia will certainly respect their wishes. Russia will continue to aggressively market their goods though to remain the number one exporter of military arms into the future. In the process of doing so it is also for the long term benefit or hope of Russia to keep the trade deal, and to keep it in a decreasing demand (as shown in our graph Work Cited “Russian Arms Trade.” Online Edition, Special Operations Edition. March 18, 2005. February 14, 2006, 20:25 <http://www.special-operations-technology.com/article.cfm?DocID=891> =============================================================== =================== CSO: Sean Sumida Section A Examining the International Futures (I.F.s) simulation graphs there seems to be a general upward outlook for Russia’s political economic future. With a positive growth forecasted for overall GDP as well as foreign investment (graph 1.1) which is a direction I hope will Graph 1.1 Foreign Investment (Russia) eventually bring it the recognition that it deserves as a world power. There are, however, a few trends that I find fairly disconcerting. Most notably the sharp and unrelenting fall in population expected to continue throughout the upcoming century (graph 1.2), the large anticipated dip in power index (graph 1.3), and the large jump in foreign aid expected over the next 20 years (graph 1.4). In my eyes, the principal goal in Russia’s future should be to achieve a higher level of independence from outside foreign aid and to boost their own economy through foreign investors and technological advances in their own industries. However according to the I.F.s model, while they are expected to increase their own agricultural production and foreign investment is expected to rise, within the next twenty years or so, foreign aid is expected to almost triple before peaking and starting on a very gradual downward slope (“Sustainability” model). Graph 1.4 Foreign Aid (Russia) While this on its own is fairly insignificant, it is in opposition to all the policies we are pushing so that one day we will be able to sever reliance on foreign aid to boost our overall image in the world market. The unrelenting fall in population that, according to the I.F.s model, will inevitably plague us in the future is concerning because not only do we lose valuable laborers that could be used to build industry, but also we lose numbers that we could pull from in the event of war or conflict. This is hand-in-hand with the declining power index. Not only will Russia be viewed as less of a threat, but also as less of a beneficial ally. Graph 1.3 Power Index (Russia) Section B One of the largest problems currently faced by the reformed Russian government is the high level of organized crime that has manifested mainly in the form of the mafia and has slowly been spreading corruption throughout all levels of their society. Arising mainly after the economic disaster following the fall of the Soviet Union in the 1990s, it is believed that the majority of the bosses and main members of the Russian mafia are former government officials including ex-Soviet Army and ex-KGB officers who lost their posts in the reduction of forces following the end of the Cold War in 1993 (Wikipedia, 2006). Because of the large hindrance to the progress of new foreign policy the mafia has played in recent years, I have chosen to play the role of a Russian mafia crime lord as a C.S.O. in my group. However, instead of working against the government we, as a group, have deemed it more beneficial to attempt to bring our organizations together in an attempt to make the Russian market more appealing to foreign investors which will in turn hopefully boost the overall economic wealth of the country. Working with the mafia instead of against it, we hope to diversify our individual specialized trade routes to bring money into the country and push vice out. Working in this unconventional role there is a certain degree of under the table dealing that has to be done considering that if our cooperation became public it would not only drag the government’s public image down, but also bring the reputation and respect of the mafia down in the global market. That being said, with our specific goals in mind, I would most likely be working mainly with the C.M.O. for military aid to discreetly protect and enforce strict trade-routes through the country and also to bring legitimacy to some of the mafia’s foreign and internal affairs. I would also expect to be able to call upon the intelligence officer and our other C.S.O. for information about dealings outside the country that may be detrimental to our operations or that may present themselves to be profitable to us. "Russian Mafia." Wikipedia, The Free Encyclopedia. 17 Feb 2006, 15:12 UTC. 20 Feb 2006, 23:25 <http://en.wikipedia.org/w/index.php?title=Russian_Mafia&oldid=40019054>. Part C Controlling roughly 55% of Russia’s capital, over 40,960 commercial enterprises, among them 449 banks, 37 stock exchanges, 678 markets and 566 joint ventures with Western participation, the Russian mafia is indeed a global force to be reckoned with (The New American, 1996). However as mafia liaison I bring word that instead of severing ties and further instigating internal conflict within our boarders, we the mafia, would like to build our relationship with the government in what we hope will become a fruitful venture that will bring free investing and technology into our great country which will build our national economy furthering all of our wealth. Utilizing our exceptionally vast global network, we would like to re-establish our KGB roots which were never truly deserted. We intend to not only use information gathered for political purposes but also as a form of economic and industrial anticipation. Harnessing upcoming industry trends to allow Russia the opportunity to fully seize any and every endeavor that may present itself. Another one of our central goals in this alliance is to bring an end to the large amount of drugs that are being trafficked through some of our larger and most influential cities. If drug trade is inevitable due to Russia’s highly strategic geographic location, then we must make it top priority to make sure that they are kept out of areas where they will become stagnant and cause a widespread problem and leech money out of the economy and overall prosperity of our major cities. To do this, we plan to implement a strictly controlled and regulated drug route around major cities in Russia and to destinations outside of the country. The eventual goal of which is to strictly hinder the amount of drugs being consumed by nationals and to bring money in by creating trade relationships with neighboring countries. Of course these are by no means conventional practices and we do anticipate a level of opposition. However, with some the best amenities and talent for falsifying documents, a near infinite supply of arms, and a widespread network of highly trained professional militia we think we will both be able to contain and control our trade and counter any opposition if not only through political means but also with an iron fist. “Russian Mafia: Organized Crime Is Big Business for the KGB.” The New American. 19 Feb 1996. 28 Feb 2006, 18:46 <http://thenewamerican.com/tna/1996/vo12no04/vo12no04_russian_mafia.htm>