The Former USSR
I’m writing this month’s article as I fly back after presenting a speech in Moscow, and then traveling on to St. Petersburg.
If you have not traveled to either of these cities, you might think that, because they were part of the communist “evil empire,” as former President Ronald Regan once called them, they would be far behind the United States in just about everything. Think again!
First, it is good to understand that the Russian education system is very good, the population has a very high literacy rate, and it is well known that they are exceptionally good in science and math education.
Second, they are getting very good at understanding and speaking English. Ninety percent of the audience I spoke to – CEOs from all over the country who ran both large, medium and small companies – spoke English. In addition, I was very impressed with the number of street vendors and lay people who also spoke English. I found the same to be true in both Moscow and St. Petersburg.
The English Advantage
This fact is important because English is the universal, global language of business. We are outsourcing jobs to India because they speak English, although some people are much better at it than others.
The Chinese government knows the importance of English and has taken major private initiatives to help train its people quickly. The fastest ticket out of the rice paddies is to speak English.
As English becomes more prevalent in Russian society, the combination of a solid K-12 educational system and a good comprehension of science and math will make Russia a very attractive place for American companies to outsource a much wider variety of technical work.
The Oil Bonanza
Since the price of oil has been high, Russia has been bringing in billions of additional dollars, and now the government has the opportunity of deciding where best to spend or invest this new wealth.
The Russian economy is very dependent on oil. The key to their prosperous future is to diversify its economy and not put “all of its eggs in one basket.”
In addition to planned diversification, it would be wise for Russia to spend some of its newfound wealth on infrastructure (roads and bridges) and infostructure (broadband Internet connections). This would lay the foundation for a new, diversified economy.
Infostructure
While I was in both Moscow and St. Petersburg, I had access to a broadband internet connection at both hotels. I was also told that cafes and restaurants are starting to offer WiFi Internet connections.
One of the ways Russia can spread broadband connectivity quickly will be to use wireless technology, bypassing the time and expense of laying cable and fiber. A new technology I have written about in the past, WiMax, will most likely help them accomplish this task. This wireless technology is similar to WiFi except that it has a much larger range (30 miles), which makes it ideal for quickly setting up broadband networks that cover large areas.
Popular Culture
In Moscow and St. Petersburg, both live and recorded music outlets played many classic U.S. rock, blues and jazz favorites. All the big brand names, such as Nike and Rolex, were everywhere, and in many cases they had models that we haven’t even seen yet. In general, I would say that fashion was a step ahead of the U.S.
Everyone I talked with was up on the latest “global” news, including the U.S. presidential race. Not just general information. They knew the issues and the details. Even when I would walk into a small store, the shopkeeper knew the latest news. When I asked how they kept up, they would either show me a television set in the back room that had “global” news broadcasts, or show me a computer hooked up to the Internet. It might have been a slow connection, but they were connected.
Is the former USSR behind? In many ways, yes; in terms of infrastructure, infostructure and needed reforms, such as the right for individuals to own their own land. However, in some important ways, such as science and technology education, they are ahead of us.
There is a global economic race taking place, but I’m not sure if we’ve heard the starting gun! India, China, South Korea, Singapore, Russia and many others are hoping we don’t notice that the race is on.
How can you profit from this global economic race? If you expand your reading to publications like The Asian Wall Street Journal, The London Financial Times, and The South China News, all available in English, you will discover amazing new opportunities.
Daniel Burrus, one of the world's leading technology forecasters, business strategists, and author of six books
Copyright 2005 Author retains copyright. All Rights Reserved.
