Russia, the U.S. and Business

by Gary Litman

A few weeks ago I posted on the one year anniversary of the hostilities between Russia and Georgia, which generated some good comments. A common theme was the suggestion that the Russian economy, and the companies doing business there would benefit from regional economic integration around specific projects: regional water management, electric grids and transportation routes. This week's tragic accident at a major Russian hydropower plant illustrates that we should add to this list cooperation on safety and risk management. American firms have a lot to offer in this field.

More generally, infrastructure modernization in the post-Soviet economies is a significant development opportunity. While the Russian government is reeling in some of its more ambitious show-case national programs and the IMF is again advising Russia to tighten her belt (see the IMF staff recommendations), regional infrastructure funding and development seems to be one of the more promising areas for U.S.-Russian business and policy dialogues. Let's start with programs where safety of people is directly at stake.