When the Russian Chamber of Commerce and Industry wants to set up a computer network that connects RCCI to more than 80 regional chambers of commerce across Russia and to 16 representative offices overseas, who do they tap to do the job?
When the Russian National Congress on Information Science and Telecommunications tries to identify a Vice President to help lead its diverse operations and build stronger ties to organizations outside Russia, to whom do they turn?
When CIPE looks for a "no-nonsense" partner who can provide insights into the future of E-commerce in Russia, who gets the call?
Enter Alexander Chesnokov, the well respected and ubiquitous Vice President of the Russian Chamber of Commerce and Industry. A consummate networker in every sense, Dr. Chesnokov coordinates the activities of RCCI in business formation, investment and business cooperation, macroeconomic and social research, and information services. This broad portfolio enables him to monitor closely the latest upswings and downturns in Russia, where RCCI is playing a key role in helping to implement economic reforms.
During his April visit to Washington, Chesnokov briefed Members of Congress and Congressional staff on recent developments in Russia. He said that the "meltdown" in Russia's economy in 1998 had been building for years as a result of a stagnant economy, little investment in manufacturing, and large amounts of capital flight. It came to a head last August, Chesnokov suggested, when Russia was whipsawed by the Asian economic crisis on one hand and Russia's inability to pay its staggering debts on the other.
Five years ago, Chesnokov noted, there were approximately 4,000 banks in Russia, a number that has dropped significantly since then. Credit card companies have ended their relationships with 80 percent of the Russian banks because of default problems. Reform of the banking system has begun to take hold in Russia, he said, but not before an estimated 250 billion rubles were exchanged and invested overseas. "Russian money is working around the world," he chided, "just not for Russia."
Particularly hard hit, notes Chesnokov, have been small and medium-sized enterprises (SMEs), which the RCCI has been working to encourage. Investment capital has been very difficult to come by, and the positive impacts of bailouts by international lenders take a very long time to "trickle down" to SMEs. Of the more than one million businesses that have been created in Russia in recent years, he said, some 30 percent of those have been in Moscow.
Chesnokov sees a vital role for SMEs in Russia's economic recovery. As he noted on Capitol Hill, "The long-term solution to restore confidence is to develop the manufacturing sector, which will generate money, create jobs, and become an engine for growth." Chesnokov ought to know: As Chairman of the Board of the Russian Information Network for Business Cooperation, he has a "hands-on" appreciation for the role that SMEs can play in stimulating local economies.
Chesnokov attended the London Business School and has a Doctorate in Economics from Ordzhonikidze Moscow Management Institute. He is one of the founders of the Russian National Congress on Information Science and Telecommunications, where he currently serves as Vice President, and he is Vice President of the Russo-British and French-Russian Chambers of Commerce. Chesnokov has a doctorate in economics and has published more than 50 scientific works, including recommendations on creating the business information system in Russia, guides to Russian exporters and importers, and Taxes and Entrepreneurship in Russia.
In the long-run, Chesnokov remains bullish on Russia. He cited a recent RCCI survey suggesting that many companies there are diversifying their portfolios to adapt to the new market conditions in Russia, and some 90 percent of respondents said that they have no intention of going out of business. Chesnokov counseled, "Reform takes time. The U.S. and the world must be patient with Russia and not be hasty in judging our financial sector."