How to Protect Russia from Western Capital - 22 October, 2002
It’s time for Russian companies to consider marketing strategies
Although the whole of the economically developed world is sure that Russia can’t be incorporated into the World Trade Organization, Russian officials continue to search for means to protect Russia from competition of the Western capital.
Russian Deputy Minister for Property Alexander Braverman spoke at a recent session of the Russian Union of Industrialists and Businessmen and told Russian oligarchs that if Russia joined the WTO, this would inevitably intensify competition on the Russian market. He thinks that this is inevitable in the aircraft, light, and food industries, and the banking sector. And the Russian economy is as usual not ready for an invasion of Western businessmen. He also adds that the government and Russian businesses should act together to get prepare for the inevitable invasion of Western capital.
Alexander Braverman knows the game, but is obviously sure that Russian oligarchs are already well informed about it as well. He says that Russian businessmen should immediately start the development of marketing strategies for their companies. Alexander Braverman is sure that the realization of these strategies will increase the capital of Russian companies by 15-20%; moreover, it may become “an important instrument of competitive activity on the eve of Russia’s entry into WTO.”
In other words, switching to new technologies, increasing labor productivity, and the introduction of new methods of quality standards in manufacturing domestic goods are just like toys. It’s currently more important to pump up capital. Does this mean that when thecapital of Russian companies considerably increases, Western businessmen will enter the Russian market and will be instantly shocked at the level of their capital?
It is very much like this, as the Russian Ministry for Property seems to be extremely anxious about this problem. Alexander Braverman told Russian oligarchs that only one-third of Russian companies are developing marketing strategies. Do the rest of them make money without any strategies at all?
Photo: Alexander Braverman, Russian Deputy Minister for Property