RUSSIAN BUSINESS INTERESTS IN AMERICA

Russian business interests in America



Russian business interests in America

Introduction

With U.S.-Russian bilateral relations at their lowest issue since the end of the Cold War, "the major wish for the relationship is more business ties" that can create a more solid base for political dialogue and help the convergence of interests. The business communities in both the United States and Russia have a specific interest in this. Expanded bilateral trade and investment would assist to construct the required constituencies and foster positive change in Russia. Thus, the United States should seek to foster a stronger and more unaligned Russian business sector to put the tattered relationship back on track.(Desai,2008)

The Russian personal sector has evolved significantly since the collapse of the Soviet Union in 1991 and has conceived a large number of coordinated interest groups. Business associations have a crucial function to play in a up to date finances, especially in Russia as it develops its own emblem of capitalism. Russian business associations assist companies become more comparable through constituent learning and assist political decision makers in formulating productive public policy. A stronger trade association sector would finally signify a stronger and more independent personal sector in Russia and more adept partners for American businesses. The associations and the industries that they represent can serve as a base for the country's sustainable financial development and prosperity and can encourage the general development of the Russian economy.(Blum,2008)

Trade associations operate in a rapidly changing environment that is the result of globalization, new information technologies, pressure from member companies, and government regulation. In Russia, the majority of business associations are influential only on a local or industry level. Their nationwide reach remains limited. Most associations act as special-interest lobbyists for their industries and pay less attention to their potential civic, educational, and standardization roles. This is due in part to insufficient legal and tax regimes in Russia for charitable organizations and in part to their meager resources and the lack of understanding and professionalism in the trade association sector. (Desai,2008)

The Russian and American governments should recognize that trade associations are potential drivers for improving U.S.-Russian business relations and could become advocates for a more favorable investment climate in Russia. To support these associations, the two governments should:

Encourage the development of Russian trade associations through existing civil society and market reform assistance programs, as well as through educational and professional exchanges, and

Involve Russian trade associations in fighting corruption and violations of intellectual property rights.

In addition, the U.S. government should:

Encourage the Russian government to create a more favorable environment for trade associations by establishing a tax-exempt regime for nongovernmental organizations and

Work with the Russian government to enhance dialogue between state agencies and trade associations on issues concerning bilateral economic ties.

Boosting Trade and Investment Opportunities

The growing Russian economy presents an enormous market for American consumer and industrial goods, as well as opportunities for profitable investment in the manufacturing and service sectors. Business associations can play a leading role in strengthening ...