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MOSCOW LIVES .... DEFYING EXPECTATIONS

ST. BASILS CATHEDRAL BUILT BY IVAN THE TERRIBLE - 16TH CENTURY celebrating Russian Unity and defeat of the Kazakhs

What I expected: A dull, gray, city; Soviet bloc architecture, anti-americanism, and alcoholism

What I Got: A bright, vibrant city, with beautifully renovated 18th century architecture, colorful onion domed cathedrals, new uniquelydesigned office buildings, newfound zen for capitalism and out-of -the- way friendliness. A real sense of coming of age. True, alcohodivorce, single-mother, and rural unemployment statistics are staggering ....moreso than U.S. you ask? But Moscow is a country withi

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a country and this city of 20MM (unofficial population) rocks from morning til night. Theres plenty of soviet block architecture but thesoviet attitude has skipped a generation, and the view from the Moscow River to the Kremlin exudes a unique and powerful countrythat is rich in culture, art, religion... and commodities ... oil and Ag most definitely feed the countrys coffers. Politics are prevalent inmost discussions in this new managed capitalism (or vertical power as Putin calls it) and Putin very tellingly rid the country of anyYeltsin reformists who ventured too far from Kremlin control. Some would call it overmanaged , others call it corrupt...either waythere is a soviet overhang with a finger in many business activities. Most say it beats the wild west chaos of the Yeltsin 90s and onlythose over sixty yen for a return to the soviet times. Those under 25 do not know, nor believe there ever was, a soviet time withempty shop shelves and lifes decisions made entirely by the Kremlin. Looking at Moscow today with its New York style designer

boutiques, high end restaurants, and services on every corner, I can see why. Yet, there is a sense that life in the city is one ofexpensive, crowded, multi-family apartments, metro - trolley commutes, and hassles with officials requiring documents (often in theform of rubles), while obstructing permits for lots of lifes necessities. A 40-mile ride outside the city reveals a different world, with returto babushkas, babies, church dominated villages, and old men playing chess. Both are a long way from the RICH-OPULENT-BEYOND-BELIEF heritage of the 16th-19th centuries when Tsars (borrowed word from Caesars) ruled this vast land of 11 time zones(Fact: one can fly Moscow to Fargo in less time than Moscow to Vladivostock).

The Kremlin from Moscow Rive

The Arts: From ballet to faberge, when it comes to the Arts, Russia rules. Many are viewed in chandelier champagne-filled palaceswith die-hard fans aged 8 to 80. Ballets & symphonies command at least four curtain calls with dozens of roses, prompting me to thinkevery Russian diva could develop a profitable flower shop as a sideline.

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The Business Climate: BetterThere are many untold success stories about Americans doing business in Russia - no doubt overshadowed by politics andtransformational legal system. The American Chamber tells us many of their members count Russia as their #1 to #3 overseas markeMoscow has clearly escaped the gray 80s where the Kremlin made every decision with no choice, and the wild west of the 90s whereGorbachev/Yeltsin threw the baby out with the bathwater and corruption ran ahead of legal protocol. According to some, a MarshallPlan would have been helpful in this transition, yet, in 1990 the Kremlin decided Russia would transfer from communism to capitalism SIX months. Wow. Can you imagine the reverse ... we wake up one day to Barack Obama telling us we will convert to communism fro

capitalism over SIX months. That means ... confiscate your land, transfer to forced labor camps, rid ourselves of the stock market, landbecomes collectively owned by the people, no movement of labor (you are tied to your community), no profit and loss, no marketing,Washington tells us how much to produce and when, and all of us (except elite government officials) get paid equally , and that is thenew law. - obey or be shot. As in Russias conversion: First comes disbelief, then, consultants arrive who make money telling us howto interpret these changes, then the connected arrive, who can help us get what we need despite chaos. A perfectly corruptablecause. Now we know why Putin rose to power with vertical power and managed capitalism. And yes, I know many of you are thinkinthe U.S. now has the same.... :).

Wannabe Entrepreneurs. No doubt there is an entrepreneurial lust in Russia, but entrepreneurial infrastructure is lagging far behindBe patient, the Kremlin has traveled to Bostons MIT to study the research/innovation relationship and is pouring BILLIONS into newentrepreneur centers like Skulkova named the new Silicon Valley ... with names like Boeing and Intel attached to it. A good idea, butmany are skeptical that Russia can unleash itself from its oil/raw commodities habits that yield ready cash, and an entrepreneurial effomanaged by big government seems an oxymoron. Yet, big government is where the money is.

What about Corruption? All agree its a problem. Some say mainly for Russians vs. foreigners, whether it be bribing officers forreduced traffic tickets or professors for higher grades. Others believe it is pervasive but may solve itself over time as a number of

measures are being automated with decision making taken out of the hands of officials. For example, one can now obtain driverslicense renewals on-line whereas before it would take 3 days and official approval. To avoid the 3 days you paid the official $100 andreceived your license within an hour. There is also an on-line bidding system for government tenders with the highest bidder shown online. Further, there are avenues to avoid corruption payments - like paying your taxes. And, avenues for aid, such as the AmericanChamber in Russia, that has negotiated a number of real estate deals involving inspectors who find mysterious things wrong with yourbuilding to disallow permit. It helps to have the army of building inspectors to a vodka-sandwich luncheon on the day of your inspectio- youll have plenty of leftover sandwiches. Interestingly, Audi and Mercedes recently held a major press conference announcing theywould no longer tolerate or take bribes in Russia ...clearly they received the Kremlin contract for the official entourages accompanyingPutin, Medvedev and others in this town. Hmmm... why hold the press conference now? Putin waved to us one day from his mercedstretch while touring the Kremlin, our missed Kodak moment. D---.

Education: During Soviet Times Russia rid itself of liberal arts schools but kept technical institutes that benefited the states security ..such as nuclear physics, engineering, and marxist/leninist philosophy. Businesspeople and professors tell stories of learning capitalismon the fly in the early 90s. There were no textbooks as curriculum was about marxism and math. There were several Professors thalanded from the west and a special university that was opened by George Bush Sr. and Gorbachev. If you were lucky enough to land aseat there you learned capitalism and have a great alumni group and were taught by famous profs. Other students learned it on theirown, often by attending western management seminars. Many learned english from missionaries. English was taught in Russia prior t

1990 but one described it as a propaganda program filled with misinformation to protect the state against foreign influence. So, thosethat had learned english prior to this period had to re-learn it. Lots of western education opportunities now, and they are popular.

Interview at Pushkin Cafe: Self taught Econ Prof

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POLITICS:Putin and Medvedev are popular figures, largely because they have brought some stability to the country after the wild 90s. From awestern point of view the Medvedev-Putin-Oligarch treatise appears much like the Tsarist - Wealthy Merchant days of old; or, perhapsour Robber Baron days. Yet there are moves to improve the business climate - like the move to a flat tax rate of 6% of revenue or 13%of profit. There are also moves to reduce the bureaucracy by half, and raise salaries, to prevent corruption and create an elite corps la Singapore. Obama is equally popular here and is viewed as a pragmatist.

The KREMLIN In RED SQUARE

RELIGION: Moscow is to the Orthodox Christian Church as Rome is to Catholicism. There are onion-domed orthodox churches onevery corner and the church is enjoying a revival with some 60% of Russians now identifying themselves as Orthodox Christians - upfrom 10% 20 years ago. Not high enough say Orthodox priests who frown on declining birth rates,materialism, alcoholism, divorce rate

If You Go:Take a copy of Cyrillic vs. English Alphabet -- or get yourself lost innumerable times. The Metro is a great way to learn the languag

Step into the crosswalk at your own risk -Russians drive like it is the last day of their life, and it may well be. Moscovites say if youwant to rid yourself of a spouse or undesirable partner, simply have them run over- the fine is a mere $5000 or 2 years in jail. ClearlyMoscow is NOT a pedestrian right-of-way type town.

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Enjoy theBest Views: Ryan Offuts Apartment (below - a former KGB Guesthouse where friends of Stalin were invited forspecial occasions and mysteriously disappear in the night - how wonderfully capitalist now with Mercedes sign above),

View: Top of the Radisson Tower (renovated Ukraina hotel);

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View real russian life:Gorky Park - Very Camp. Like Red River Valley Fair except with an entrance of MEGOLITHIC Greek Columns - seen below

The Metro: Art deco stations with reportedly the highest metro traffic in the world -- but trains are fast and efficient. Shop, drink, danceand dine in and around the metros. Our Metro station had some great bands - we loved the Beatles on Friday and violin concertos atnoon. Pay enormous taxi fees ORLearn the Metro System and Take the Skulkedingies (e.g.Taxis without meters) have car,will be taxi. Both are cheaper than metered taxis -- use your best negotiation skills or use sign language with skulkedingies. Riding

metros are a great way to learn the language - metro maps have english and cryillic signs together.

Metro Station

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Sergay Pasad Cathedral on Sunday: Thousands of Orthodox Christian families turn up for masses within the various Cathedrals ofthis monastery that still houses hundreds of monks with flowing black robes, high top hats, and long white beards; but formal OrthodoChristian Ministry has now passed to Moscow.

We had to photograph ourselves, priest pictures are off limits, no cameras inside

Recommended Reading:From Nyet to Da, 4th Edition: Understanding the New Russia Walking on Ice: An AmericanBusinessman in Russia [Frederick R. Andresen and Crime and Punishment Fyodor Dostoyevsky (Author) a perspective on Russiansocial psyche

Next Stop Sochi & Krasnodar in the Crimea. No more Cathedrals - We promise. Weve had enough.

Christ the Savior Cathedral. Rebuilt in 1996 with private donations after Stalin had it destroyed.

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