2001.04.12: April 12, 2001: Headlines: COS - Russia: COS - Turkmenistan: Computers: Internet: Software Industry: Internet News: Turkmenistan RPCV Ryan Haley writes: Esther Dyson, one of the digital industry's sharpest minds, knows that Russian society is filled with corrupt, well-connected oligarchs. But she still thinks it's a good place for U.S. investors to back software and technology companies.
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2001.04.12: April 12, 2001: Headlines: COS - Russia: COS - Turkmenistan: Computers: Internet: Software Industry: Internet News: Turkmenistan RPCV Ryan Haley writes: Esther Dyson, one of the digital industry's sharpest minds, knows that Russian society is filled with corrupt, well-connected oligarchs. But she still thinks it's a good place for U.S. investors to back software and technology companies.
Turkmenistan RPCV Ryan Haley writes: Esther Dyson, one of the digital industry's sharpest minds, knows that Russian society is filled with corrupt, well-connected oligarchs. But she still thinks it's a good place for U.S. investors to back software and technology companies.
Dyson contrasted the bright self-starters who lead the Russian software industry with the power players in other corrupt sectors of the Russian economy, such as energy or construction. She said the country's software industry was unique in allowing for a higher degree of communication and information sharing -- significant in a traditionally tight-lipped business culture that equates knowledge with power. In addition, the software industry is set apart by being covered by an active press.
Turkmenistan RPCV Ryan Haley writes: Esther Dyson, one of the digital industry's sharpest minds, knows that Russian society is filled with corrupt, well-connected oligarchs. But she still thinks it's a good place for U.S. investors to back software and technology companies.
Russia: Different Worlds, One Country
By Ryan Haley
Esther Dyson, one of the digital industry's sharpest minds, knows that Russian society is filled with corrupt, well-connected oligarchs. But she still thinks it's a good place for U.S. investors to back software and technology companies.
"The software industry is a separate world operating in a Russia that is still far behind," Dyson, chairman of EDventure Holdings, told attendees of a Newton, Mass., software development conference Wednesday sponsored by the U.S.-Russia Chamber of Commerce.
Dyson contrasted the bright self-starters who lead the Russian software industry with the power players in other corrupt sectors of the Russian economy, such as energy or construction.
She said the country's software industry was unique in allowing for a higher degree of communication and information sharing -- significant in a traditionally tight-lipped business culture that equates knowledge with power. In addition, the software industry is set apart by being covered by an active press.
Dyson encouraged Americans seeking to invest or find partners in Russia to come with more than money. "Don't just give venture capital, support the company," she insisted, saying that guidance and training were of equal or more value to Russian startups.
She also urged Americans to research Russian companies carefully and invest selectively.
"I personally do not invest in Russia," Dyson said. "I invest in companies."
Dyson challenged Americans to do business honestly in Russia, in spite of the country's reputation for corruption and bribery. Paying bribes legitimizes the practice, she said, by teaching Russians "that Americans do it too, and brings out the worst in both cultures."
According to the keynote speaker, the Russian government's commitment to the rule of law and the country's current educational crisis are key issues that will affect the future of the software industry and the economy as a whole.
To reduce corruption, Dyson argued that the government must back up its rhetoric about the rule of law. She hopes that the software industry's fresh voices will become more involved in politics to influence this process.
The decline of Russia's underfunded educational system is another serious problem, she said -- a trend that threatens the future of the country's burgeoning information industry, which to this point has relied on young talent. Dyson encouraged investment as a response to this danger, saying, "If I had $1 billion to invest, I would invest half of it in the Russian educational system. I would expect a great return on that."
Brian Phelps, CEO of Vested Development, said Dyson's background made him prepared to accept her arguments, especially about the difference between the software industry and other sectors in Russia: "Esther has a long history as an IT professional in Russia. She's one of the only American IT luminaries (to have spent time) there."
Giacomo Roma, international sales director for Reksoft of St. Petersburg, said that any messages of cooperation between American and Russian partners are welcome. "It's very important to find the right person to do business with," he said. "Both companies must be willing to listen to each other. That is the most important thing."
Freelance writer Ryan Haley is a former Peace Corps volunteer in Turkmenistan, a former Soviet republic.
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This story has been posted in the following forums: : Headlines; COS - Russia; COS - Turkmenistan; Computers; Internet; Software Industry
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