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Summary of EBRD 15th anniversary conference

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Ukrainian novelist Andrei Kurkov (left) and EBRD President Jean Lemierre.

Lord Skidelsky warns that Russian property rights need boosting.

Alena Ledeneva delves into Russian business practices.

Transition: 15 years of building the future

A distinguished array of speakers and over 200 other guests engaged in lively debate about the many faces of transition at a conference to mark the EBRD’s 15th anniversary on 28 November. Entitled 'Transition: 15 years of building the future' and organised jointly with Chatham House, the event examined how the Bank’s countries of operations have changed since 1991 and questioned where they are heading.

In his welcoming address, EBRD President Jean Lemierre set the tone for the day’s activities: “We will think beyond investment and banking and try to think more about the people,” he said. “We work in the EBRD for them.”

In keeping with that sentiment, Alan Rousso, the Lead Political Counsellor in the EBRD’s Office of the Chief Economist, began the first session by disclosing the initial findings of a groundbreaking EBRD survey of 29,000 households in the Bank’s countries of operations, plus Turkey. The results challenged many assumptions about the benefits of transition, although they also revealed an underlying optimism among those who have lived through the upheaval of the last 15 years.

Alan Rousso's presentation slides  (0.5Mb)

Turning to a region-by-region analysis, Lord Skidelsky, the chairman of the Centre for Global Studies thinktank, warned that flawed politics in Russia risk undermining the strong economic progress of recent years. He expressed particular concern about the state’s failure to enforce property rights, especially in the energy sector, and the deterrent effect that might have on investors seeking to buy Russian assets.

The focus then shifted to central and eastern Europe and the so-called “transition stars”: Hungary, Poland and the Czech Republic. Professor Peter Akos Bod from the Karoli Gaspar Calvinist University in Budapest said the benefits of early transition were mitigated by social divisions, growing budget deficits and reluctance among political leaders to take decisions that do not deliver immediate dividends. Meanwhile, Professor Laszlo Csaba from the Central European University emphasised the need for universities to teach skills that are relevant to the economy and cooperate more closely with the business sector in research and development.

Djoomart Otorbaev, a former Deputy Prime Minister of the Kyrgyz Republic and now a Senior Advisor in the EBRD, looked at transition in a Central Asian context. He predicted that the region would soon see many “success stories” and suggested that helping to build strong middle classes is the key to transition in these countries.

Concerns about social trends in the Bank’s countries of operations dominated the first of two panel discussions held in the afternoon. Speakers drew attention to the growing gap between elites and the wider public (Dr Othon Anastasakis, Oxford University); declining birth rates across the region and, in some countries, reduced life expectancy (Dr Nicholas Eberstadt, American Enterprise Institute for Public Policy); the lack of transparency and the prevalence of “informal” practices in the Russian business world (Dr Alena Ledeneva, University College London); and rising social tensions coupled with increasingly authoritarian governments in countries in the South Caucasus and Central Asia (Dr Anna Matveeva, London School of Economics).

The final panel discussion took the conference back to grass roots as guests heard from people who have “lived” transition. Nana Janashia of the Caucasus Environmental NGO Network described the challenge of promoting green issues in a region where they are often seen as an obstacle to economic development. Dr Virginijus Kundrotas, the Rector of the ISM University of Management and Economics in Lithuania, spoke of his experiences as a pioneer in management education in the Baltic nation while Liubov Shaks, who runs a Moscow-based gallery, talked about Russia’s booming market in contemporary art. Polish entrepreneur Piotr Zielinski concluded with the story of how he settled in London 10 years ago and established a successful construction company.

The closing keynote address came from Ukrainian novelist Andrei Kurkov, author of Death and the Penguin and a keen observer of the triumphs and failures associated with the last 15 years of transformation. “House refurbishment cannot be finished, it can only be stopped,” Mr Kurkov suggested. “The same goes for transition.”

By Michael McDonough and Claire Vogt, EBRD Communications Consultant
Photos: EBRD Design Unit
Contact: Communications Department

28 November 2006