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Russia's Path to an Information Society: Challenges and Opportunities

Explore the journey of Russia towards becoming an information society, analyzing the economy, ICT development, and future prospects. Discover the impact on competitiveness, administrative reform, quality of life, and democratic development in Russia's regions and citizens.

jillian-erickson
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Russia's Path to an Information Society: Challenges and Opportunities

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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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