Can't Build an Economy on Champions Only

The Moscow Times publishes an opinion editorial by Ian Ivory, a corporate finance and private equity partner at Goltsblat BLP, in which he argues that Russia cannot build an economy on champions only. For months, the international and Russian media have hung on every twist and turn of the saga involving Rosneft, TNK and BP. The high-profile deal is undoubtedly important, but the fixation with the story is telling. Compare this to Germany, whose famed Mittelstand - medium-sized, export-oriented businesses - provide 70% of Germany's jobs and contribute about $1.8 trillion, half the country's GDP. In contrast, Russia's small-business and medium-sized-business sector represents only one-fifth of the country's GDP.

Tuesday, December 11, 2012