GREATER MOSCOW – THE KEYS TO SUCCESS

MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION

PLEKHANOV RUSSIAN UNIVERSITY OF ECONOMICS

SCHOOL OF BUSINESS

GREATER MOSCOW – THE KEYS TO SUCCESS

Moscow 2012 GREATER MOSCOW – THE KEYS TO SUCCESS

EDITOR: ROBIN JOYCE COMPILED BY: NATALYA SERGEEVA

Copyright Notice The copyright of the material contained in this publication belongs to Plekhanov University, Moscow, Russia and material may be used free of charge for any noncommercial purpose, if attributed to Plekhanov University. Where sources have been noted in the text, the copyright of those parts of the text belong to those sources.

2 GREATER MOSCOW – THE KEYS TO SUCCESS

CONTENTS

CONTENTS ...... 3 INTRODUCTION ...... 4 SECTION 1. MOSCOW BORN STUDIENTS ...... 26

ALEXANDER SMOGORZHEVSKIY ...... 26 ANAIT KESHISHEVA ...... 31 DMITRY NEMYTYSHEV ...... 36 ELENA SHVETSOVA...... 40 ELIZAVETA NEMYTYSHEVA ...... 47 MIKHAIL MALEV ...... 54 NATALYA SERGEEVA ...... 63 NIKITA KHROMOV ...... 70 ROMAN MOROZOV ...... 75 STANISLAV IVNITSKIY ...... 81 SECTION 2. RUSSIA BORN STUDUENTS ...... 88

ALEXEY MATVEEV ...... 88 ANTON SAVELEV ...... 94 ELENA MINCHENKO ...... 101 ELZA USMANOVA ...... 109 EVGENIA MANTSUROVA ...... 125 ILNAR GUBAYDULLIN ...... 129 NAILYA GILMANOVA ...... 135 VALERIA BONDAREVA ...... 139 SECTION 3. FOREIGN BORN STUDIENTS ...... 146

ANASTASIA CHAUZEIX ...... 146 BERTRAND GARRANDAUX ...... 154 CHRISTINA YAO ...... 161 EDOUARD LESIEUR ...... 166 FEDOR AGADZHANYAN ...... 171 GERY MOULAS ...... 178 MARINA ZHDANOVA ...... 184 MARIA GLUKHOVA ...... 193 ANONYMOUS STUDENT ...... 198 ABOUT THE AUTHORS ...... 208

3 GREATER MOSCOW – THE KEYS TO SUCCESS

INTRODUCTION

Introduction from the Dean of School of Business, Plekhanov University,

Dear Colleague,

Thank you for choosing to read Greater Moscow – the Keys to Success.

I recommend this publication for the variety of incisive views expressed on a current topic of great interest and importance to Muscovites, guests from other parts of Russia and abroad, and others that will be affected by the great city in which we work.

The primary use of this material is to provide base for discussion on city planning. Our Graduate School prides itself on our bi-annual guest weeks, held for our Master’s degree students. All of us contribute to them and this publication gathers our participants’ texts on the priorities related to the imminent tripling of the size of our capital city.

The assignment was expressed as: Part 1 = 4 pages on the 4 most important keys to success in order (most important being first)

Part 2 = 4 paragraphs on keys 5-8. 4 GREATER MOSCOW – THE KEYS TO SUCCESS

Our authors predominantly come from Moscow and other regions of Russia. They are joined by an increasing number of guests from abroad on our courses. We have included their birth places (although some of those born outside Moscow have lived longer in the city than those born here).

The expression of their views shows deep personal interest in, and concern about life in the capital today and the enlargement of Moscow, regardless of their origins. Many will live in the enlarged Moscow, with their children and yet-to-be- born dependents, and enjoy the benefits and negotiate the shortcomings of the project. Others will be influenced by Moscow’s international economic impact.

Participants wrote the essays in English, despite English being their second or third language. We have limited editing to the minimum.

Biographies of authors are included, as is information about the School of Business.

I hope that you will find the essays interesting and of value to your students. Your comments will be very welcome.

Sincerely,

Dmitry Shtykhno, PhD Dean of School of Business, Plekhanov University, Moscow, Russia

5 GREATER MOSCOW – THE KEYS TO SUCCESS

Introduction by Zhanna Musatova, PhD, Course Leader, Deputy Dean

Borodino’s 1812 combatants would recognize the Kremlin and Red Square but little else of great city over which they fought. The Battle of Moscow’s veterans fought over a city in 1941 that they barely comprehend today. As recently as twenty years ago, Moscow’s wide roads accommodated the inexorably- rising number of vehicles.

Growth of Moscow City

Mikhail Malev’s graph shows how Moscow’s population has dramatically soared during the last decade and continued a trend of the last century. (Names in bold indicate our authors.) Moscow City now has the highest population of any European city. The exact number is disputed, but is at least 12 million. Complementing this are millions who live outside Moscow City, but work in the city, further stretching its resources.

Activity is centered around the Kremlin, although new business districts have recently appeared as development land has become scarcer. (Gery Moulas): Just over 2 million jobs, or 38%, are concentrated on 6.5% of the city territory, in a five kilometer radius from the Kremlin.

Most Muscovites live in flats, many in high-rise. Recently, this has promoted an exodus of the wealthier, who have chosen to live outside the city and commute to it for work.

6 GREATER MOSCOW – THE KEYS TO SUCCESS

The magnificent metro underground system has 180 stations, but carries more people than any other in the world. Overground train systems, buses, microbuses, and a few light railways and trams complement the metro, but Moscovites have increasingly used cars for their travel. This has led to congestion, as roads cannot be built fast enough to accommodate them. Traffic management systems, including parking, have not enjoyed investment at appropriate levels.

Moscow attracts people to the widest variety of highest-paid jobs in Russia and offers much to CIS country citizens who come legally and otherwise. The city is a cultural and heritage centre, especially around the Kremlin: a magnet for tourists and residents.

Companies, both Russian and foreign, are attracted by the presence of their clients and suppliers and the prestige of an office in the capital. Attempts to decentralize companies (VTB bank, Gazprom) and state functions (Supreme Court) to St.Petersburg have not lead to a noticeable reduction in Moscow’s businesses.

Moscow supports a network of quality educational establishments, which attracts students from other parts of Russia and abroad, all of whom require lodging.

Government of Moscow City and Moscow Region

Moscow City and Moscow Region have two separate governments. The basic border is the MKAD motorway which stretches 114 kms. around Moscow: inside is Moscow City, outside is Moscow Region.

The City has negotiated the acquisition of some pockets of land in the Region, but these have been insufficient to absorb the City’s population and business growth. In the largest country in the world, Russia’s capital has grown upwards (including lofty office blocks and high-rise flats) rather than outwards. Also, the City provides

7 GREATER MOSCOW – THE KEYS TO SUCCESS substantial employment to many living in the Region. This increases the amount of commuting journeys shouldered by the City’s overstretched transport system.

Living in Moscow City requires a (highly-valued) resident’s permit, which would theoretically limit population growth. The enlargement requires the issue of more permits (or the demise of the permit).

Elena Minchenko covers such legal conditions and challenges in detail.

Merging the two governments would probably allow more systematic growth of the current City.

The Region’s population exceeds 7 million (in an area of 45,000 sq.kms.) creating a total population of more than 20 million in the event of such a complete merger of City and Region.

Quality of Life in Moscow City

2011 saw the first serious smog settle for days in the City, caused by forest fires outside the capital.

Air quality had already been decreasing due to the surge in vehicle numbers in the City. Water quality is also declining, both for drinking and bathing. The growth of the population has not been matched by a similar growth in parks and recreation areas. This has prompted people to have dachas, which range from a shack to a palace, outside of Moscow, increasing traffic.

Schools, hospitals and clinics are under increasing pressure as the population grows.

Moscow’s Road System

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Moscow City has seen a valiant attempt to provide more roads in response to traffic growth. This has not been adequate and has reduced the life quality of those whose flats near the new roads.

Moscow Region’s roads tend to follow a radial system, fanning out from the city. This means that if you wish to go to a provincial town, such as Yaroslav, there is one road. If that road is blocked with traffic, there is no alternative.

Russian roads are some of the most expensive in the world to build.

(Gery Moulas): Construction of Moscow's new, fourth ring road is expected to cost 7.4 billion rubles per kilometer, whereas road construction in China, the United States and Europe hovers between $3 million and $6 million per kilometer. There has been some widening of roads in Moscow Region, but few new roads, despite the Region’s own population growth.

Moscow City’s Enlargement

Moscow developed under a plan of 1921-5, (see Roman Morozov). Moscow Region was created in 1929. Further development was designed in 2007 (see Mikhail Malev) for growth to 2025. (Fedor Agadzhanyan): Plans for expansion were in the air for many years, but grounds for the implementation of so ambitious and resourceful project were not as stable as they must have been. For example, we can think of an endeavor to make a district in the region for the families of professional military servicemen in some parts of Moscow region. This attempt fell short, as the parliament of Moscow did not back the decision. Another example is that of the end of 2010. Then, analysts and politicians were fiercely debating on the topic of integration of Moscow and Moscow region into one separate agglomeration.

The current plan for Moscow to triple in size was agreed by President Medvedev, Moscow City and Moscow Region in mid 2011.

9 GREATER MOSCOW – THE KEYS TO SUCCESS

Priorities for the Enlargement

We present our colleagues’ priorities for the Enlargement. We split them into those from the Moscow-born, those born in other parts of Russia and our guests from abroad. The views of all three subgroups, though varied, are more similar than distinct. Their interest and concerns are expressed with the same strength. A theme found mainly in the essays of the Moscow-born is concerns about the limit and control of immigration into the enlarged city. Predictably, this theme receives little mention by members of the other two subgroups.

Planning and Control and Involvement of Stakeholders

(Anait Keshisheva): a concrete and accurate plan for development of territory is required, which also has to be supported by sound economic justification of necessity of the project. (Anastasia Chauzeix): a work specifications book is an unavoidable tool in such a project. It enables to gather all useful information and to clarify as much as possible the needs for resources and the links between all parties.

(Elena Shvetsova): Analysis comes first. In order to be able to turn it efficiently into reality, one should conduct a profound analysis of the whole situation and of each of the proposed issues in particular to be able to forecast its implementation and future operation. Highly-skilled specialists’ involvement -to make this project a success leading experts in construction, engineering, design and infrastructure developments should take part in it. Legal specialists should also be invited to carefully work out legal issues. One should always remember that the plan is designed for people - in order to create better living environment for them. That means that their points of view should be considered and their rights should be respected. (Anonymous Student): work with the population; wise public relations and public awareness programs; accountable governance; public consultations. Authorities 10 GREATER MOSCOW – THE KEYS TO SUCCESS of Moscow and the Moscow region should organize regular meetings (“round tables”) with the population and discuss the prospects of Moscow boundaries expansion – step by step.

(ChristinaYao): Authorities should work with the population and should explain why the changes are being implemented. That is why qualified social work must be undertaken.

Citizens and the population as a whole should believe their government should know for what purposes money is taken from the budget and things like these.

(Elizaveta Nemytysheva): Work with population: in Moscow schools, in history classes, problems of our city should be discussed. Pupils should love Moscow and this is the responsibility of teachers. All this work should be done with the consultation with Moscow citizens, studying the experience of New York, Shanghai, and Paris. Moscow does need this expansion and I believe that we will succeed. The effectiveness of these changes should be obvious and people for whom these changes are being made should know what for their money (budget money) is paid.

(GeryMoulas): The team in charge will have to have multiple competences and contacts. They must have enough power in the government to raise funds and implement public new strategies. I suggest that they call upon the skill of expert advisory companies.

(Ilnar Gubaydullin): Foreign specialists could be employed for developing the new region. Specialists from London, New York and Tokyo would bring in new ideas on city efficiency, since all three named cities face same problems as Moscow.

(Stanislav Ivnitskiy): Sustainable and accountable long-term planning procedures with a time horizon up to 20 years. Municipal decision makers need to embrace a whole new paradigm of planning, bearing in mind that changes in

11 GREATER MOSCOW – THE KEYS TO SUCCESS economic sphere causes implications on such generally difficult-to-quantify factors as quality of life and health of Muscovites.

Plans need to be executed efficiently, which is still a question of efficiency of the planning system. Moreover, given the scale of the project, it is absolutely necessary to keep planning in innovative ways and put maximum effort on efficient execution.

(Nikita Khromov): The key to success is a third party’s control. We need to oversee the project and expose strictly and loudly any failures and oversights.

(Marina Zhdanova): Developing companies’ benefits in this case are obvious, so they will do anything to win contracts on construction in this area. Experts expect corruption levels to soar, which is connected with competition among developers. It is extremely important to monitor not only the direction of budget money spending, but also the quality of services provided.

Creation of infrastructure

(Anton Savelev): it is essential to create the infrastructure for the people. Infrastructure comprises basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. The term typically refers to the technical structures that support a society, such as roads, water supply, sewers, electrical grids, telecommunications, and so forth, and can be defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions."

As this territory was under-populated, there is almost no infrastructure there.

(Gery Moulas): This expansion is expected to tackle the problem of public transport in the current Moscow suburbs. However, this is not going to be enough to 12 GREATER MOSCOW – THE KEYS TO SUCCESS support the Bolchaya Moskva project. Subway lines have to be created to link the different regions of Moscow, as the RER in Paris.

In spite of the poor quality of the traffic, Muscovites have no choice but to take surface transports to move from the suburbs to the center.

It is required at least to create more schools and hospitals. Then, invest in parks, in sport infrastructure and leisure activities.

Traffic The current traffic system has been mercilessly dissected by our authors, both natives and guests. It is the common measure of Moscow City’s overcrowding. Hopes are high that the enlargement will reduce current problems. (Marina Zhdanova)+(Elena Shvetsova): One of the major targets for the project of Moscow borders south-west extension is deliverance from the historically- established, radial-circular (homocentric) transport network organization. Transition to a polycentric layout of the region and its transport system has to lead to an even distribution of the population and thus will solve the traffic problem in Moscow.

Moreover, in case if those who live in a new-adjoined area will be continuing to travel to the historical center of the city during the rush hours, existing situation with traffic jams will become even worse.

(Natalya Sergeeva): A new city requires principally a new traffic system, a decentralized system. Realization of this project requires huge investments, plenty of time and work of the best engineers, but it is the only way to avoid a traffic collapse.

The most suitable form for the highway building is a matrix system. When the city’s highway map looks like a patchwork, there will be fewer difficulties in getting from one point to another. 13 GREATER MOSCOW – THE KEYS TO SUCCESS

(Roman Morozov): Work hours in different businesses should start and end at different times.

(Anastasia Chauzeix): Urban productivity is highly dependent on the efficiency of its transport system to move labor, consumers and freight between multiple origins and destinations. Increasing productivity is a very important challenge for Russia.

Other views and ideas on improving transport:

(Ilnar Gubaydullin): Though light railway could be implemented, connection stations between Metro and light railway or monorail way are needed, where people can travel from underground train to monorail train without stepping outside.

Helicopter transportation could be an advantage for the city in general and for the new region particularly. Our top government officials can use helicopters to get from one part of Moscow to another. Also, helicopters can be used for emergency health care need, instead of putting additional pressure on roads.

(Alexey Matveev): In the field of high-speed off-street transportation -

 construction of a new metro line to Skolkovo;

 priority development of rail transport in the western, southwestern and southern areas, in accordance with the general scheme of the Moscow railway junction;

 construction of light rail lines, mainly in the east-west direction to ensure convenient transport links. (Natalya Sergeeva): A number of night coaches are strongly required.

(Elizaveta Nemytysheva): The profit from cleaning up rivers is water transport that also has a big potential. Still, there are no traffic jams and the speed of water transport is quite good and it is even greater than the average speed on Moscow highways during the rush hours. 14 GREATER MOSCOW – THE KEYS TO SUCCESS

The development of air transport is also the way how to improve whole transport situation in our city.

(Bertrand Garrandaux): The modernization of the transport system in Moscow is not only developing this system in the new area, in fact it is also improving the current system in the current Moscow. The authorities also want to do like in London: introduce paid access for cars to the city center.

(Nailya Gilmanova): New underground? Too expensive and long. And while making it, we are not able to use this area. Only surface transport is acceptable.

(Elena Minchenko): The fresh idea to decrease traffic jams is introduction of corporate buses-upgraded version of school buses. They are big and roomy, equipped with air conditioners, Wi-Fi, coffee machines, comfortable chairs. In the early morning, such buses circulate in the area, picking up ministers, officials etc.

Business and the International Financial Centre

(Roman Morozov): one of the most important factors for city success is to continue to develop Moscow’s reputation as leading financial centre.

(Edouard Lesieur): There is big lack of office facilities in Moscow, even if the construction of the business district Moscow city will partly alleviate this lack.

(Fedor Agadzhanyan): One of the main beneficiaries of the project would be major landlords in the area in question e.g. some Russian banks, corporations, and wealthy individuals. It is said that the parties listed above were in fact the lobbyists of expansion. Construction firms will gain as well. Billions of rubles from budget are “waiting” for contractors to use.

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(Alexander Smogorzhevskiy): The fourth key to success in extension of Moscow territory is creating good business environment. Steps should be taken in order to move part of businesses to the new area.

It is obvious that no business would prefer to move to the new territory from the existing one, if similar business conditions will not be created there. It involves building of business centers, plants, restaurants, and hotels.

What our government should do in order to develop business at the new territory of Moscow is to offer to legal entities some economic advantages if they build their facility there. It can be, for example, lower tax rate, or lower land rent. Such conditions can be very favorable for small and middle size enterprises.

(Anton Savelev): Creation of the working places on the new territories is one of the key factors. It will help people not to spend hours in the traffic jams and will reduce the loading of roads. However, it costs enormous money in Russia nowadays to create one working place in the modern production facility. It is not difficult to count that, to create 2 million working places on the new territory, a huge amount of money is necessary. Financing the expansion

The views of our authors highlight the need for private and foreign finance to complement Russian taxpayers’ contributions (see Anonymous Student “The problem of searching for the sources of financing social projects must be well elaborated, because the population pays finally for all.”, Anton Savelev, Bertrand Garrandaux, Elena Shvetsova, Alexey Matveev).

Environmental and ecological issues

Success of the project will not be recognized by many of our authors unless the environment and ecology are improved. 16 GREATER MOSCOW – THE KEYS TO SUCCESS

(Anonymous Student) + (Anton Savelev): The projected increase in the population density across the new Moscow districts has environmental dangers – pollution concentration, greenhouse gas emissions, water quality deterioration, possible extinction of some rare species etc. The task of the authorities is to ensure that the ecological situation in the areas to be included in the Moscow Federal District is not under threat of increased pollution, and energy efficiency is a key to success.

(Bertrand Garrandaux): The city of the future needs to meet environmental efficient. Environment has not been a priority in Russia. Thus, this factor is not likely to be met. However, tackling congestion is eco-friendly even if it is not the first purpose of Russian authorities, and many parks already exist in Moscow. However, that will not be enough. The big issue is about the buildings: they have to be well insulated to reduce the energy consuming.

(Christina Yao): The authorities should manage the environmental changes. When they will start building new buildings and new roads, there will be less green spaces. Nature will be damaged. So a study should be made before the big construction. As some spaces need to be protected and constructions cannot be undertaken in some areas.

(Dmitry Nemytyshev): Russia still has not adopted the Euro-5 level of fuel cleanness, and more than half of our gas stations have only Euro-3 and Euro-4 standards of oil. Fuel power stations still function nearby suburban districts and people who live there cannot even open windows to air their flats. All the heat stations must be built at least 12-15 kilometers from the living districts. Also, the blocks of flats should not be situated near big roads and avenues because of air pollution and great noise.

No plants and no factories should have a chance to pollute our rivers. The laws should restrict them and fines must be increased in 5 times or more times. At the same 17 GREATER MOSCOW – THE KEYS TO SUCCESS time, all the dirty rivers should be cleaned for us to have a possibility to swim there in summer.

(Edouard Lesieur): Moscow is one of the most polluted cities in Europe, causing some breathing problems. Citizens and companies do not have energy-saving habits and consume a lot more than Western citizen and companies. Of course, it is mostly explained by the abundance and cheap cost of energy. However, Greater Moscow will have to promote sustainable houses that consume less energy.

(Elena Shvetsova): Moscow is Russia’s center of universe. It is technological, cultural, historical, political, financial center. If the activity in Greater Moscow stops, at least temporarily (for instance, due to forests burning - as happened), the consequences for economy and security will be devastating as the rest of Russia will remain helpless without its capital.

Forest-question. The plan of new roads and railway construction remains unknown, but many people assume that forests as being state property will be destroyed first of all, which is highly undesirable.

(Ilnar Gubaydullin): Parks with different types of trees should be planted, especially with one that consumes more CO2 and produce more oxygen.

Water reservoirs, small lakes in the region must not be destroyed, but to be centers of parks and recreation centers within the region. Underground waters have to be identified, first of all in respect of construction and second not to be polluted.

Tap water itself requires a better filtering system; people need to be sure that water in their homes is safe. So, some additional water reservoirs for tape water with filtering stations can be built within the new region development plan.

(Nailya Gilmanova): We must exclude panel house building. It is not efficient for many reasons: its useful life is about 50 years only, thermal balance depends on 18 GREATER MOSCOW – THE KEYS TO SUCCESS the outside temperature too much, they are noisy etc. The optimal decision is to choose monolithic building. It is not so cheap as panel building, but it is more comfortable for living.

(Roman Morozov): Legislation lacks solid laws providing ecological security in the city. It is vital to stop the ecological destruction of the city as soon as possible.

Space organization

There are a range of views on this topic. The area to be annexed is mostly countryside enabling different options to be considered.

(Anait Keshisheva): It is necessary to separate the centers of business and the centre of administration. This will promote the fight against corruption which is fixed by the existing attachment of officials to business.

(Anastasia Chauzeix): From a social point of view, it would be devastating to construct only company premises. Let us take the example of La Defense in Paris. In La Defense, there are some shopping malls and shops, restaurants. But still most of the space is dedicated to corporation premises. This led to security problems, as well as a depressing feeling for employees which work in a dehumanized place.

The project should include some cultural places, so that people working in this new part can have an easy access to culture (library, theatre, book shops, cafés).

(Anton Savelev): Special attention should be paid to sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations and cultural infrastructure, such as concert halls, museums, libraries, theatres, studios, and specialized training facilities.

(Ilnar Gubaydullin): In Moscow and in all Russia, there is a lack of kindergartens. It would be wise to take into account in general building plan local

19 GREATER MOSCOW – THE KEYS TO SUCCESS kindergartens, so young families could both take part in increasing GDP by working. Plus, that would create additional work places in the new region. Hospitals and local healthcare centers: new health care centers also need to be created for local population.

(Evgenia Mantsurova): There will be a complex of innovative research and education centers in the joined area, so probably there will be no need for hundreds of students to travel (traffic problem). Besides, new centers could provide new campuses for students.

(Alexey Matveev): Movement of large number of government agencies from the center of Moscow to its suburbs will be a positive factor for city development. It can help in developing an international financial center in Moscow.

(Elena Minchenko): Government should not allow building of factories in the new territory.

(Natalya Sergeeva): As Moscow is going to be a financial and investment center, it is absolutely impossible to leave factories and plants within the city. For the moment, on the territory of Moscow operates at least 1200 medium and large industrial factories.

(Nikita Khromov): Student campuses in new territory: there is point in project which contains developing student campuses. Such system has been working for a long time in many western schools and universities. In the current situation with education in Russia, this system can greatly raise the level of education of all. The conception of studying, working, scientific activity and housing in one place, with correct implementation, may cause great synergistic effect.

(Maria Glykho): New infrastructure demands schools, hospitals, kindergartens or other institutions. It is well known that many schools are full of pupils and they

20 GREATER MOSCOW – THE KEYS TO SUCCESS cannot take any more. Also, there are state hospitals where are always long queues that seem never ending.

Legal Issues

(Elena Minchenko): A lot of people should change their citizenship (from Moscow Region to Moscow City) and therefore all documents should be renewed. Responsible for this process should be assigned “in situ”. For example, local hospitals in the new Moscow territory should change all medical cards of linked people. Local passport offices/rooms should ensure changing of the documents. In order to make this faster, temporary work places could be created. For example, students could participate.

The next point connected is the property land rights transition. The most important point: the land in Moscow is not in private ownership as it is in region. Therefore, all owners should sign long-term rental contracts with Government.

(Anonymous Student): Consistent, clear, unambiguous, transparent legislation, preferably based upon international experience and well-communicated to the population. Territorial integrity should be based upon absolute legal integrity. Legal amendments take time, effort and cost to implement and bring about a sense of legal instability and unpredictability. The essential role of the local public administration should be considered that of meeting and protecting the public interests of the community in the territories.

(Anton Savelev): While changing the administrative status of the territories there will be a moment of transmission of working process, reissue of documents. Despite of inconvenience to people, there could be a period of “anarchy”.

(Dmitry Nemytyshev): Our legislation is full of disadvantages. In order to attract new foreign investments, legislation should be transparent and obvious. So,

21 GREATER MOSCOW – THE KEYS TO SUCCESS serious changes should be introduced to make all people see that our legislation is equal for everyone not depending on any social positions, money and so on.

(Alexander Smogorzhevskiy): It becomes evident that without serious changes in Russian legislation, it will be not possible to attract serious foreign investments. The legislation should become clear and equal for everyone, not depending on the social status of a person.

(Valeria Bondareva): There will be an inconvenience that everyone will face with such problems like: need to restructure of a lot of documents, starting from passports, tickets to military/ registration certificates, etc.,

(Elizaveta Nemytysheva): To attract foreign investment, our legislation system must be changed based on the principle of transparency and on the world experience. Keeping in mind the internationally-reported, controversial cases, only short-sighted businessman can invest his money into our economy.

(Marina Zhdanova): There are no territories of significant sizes, which belong to the state. Taking into account forthcoming volumes of road and accommodation construction, we should be aware of mass nationalization of these lands from private owners. It is quite possible that fierce resistance focuses will arise as a result of such policy. Officials will have to negotiate with lots of landlords. It will be required to save some of existing settlements as they are now.

Inequality

(Alexander Smogorzhevskiy): There is a big fear that Moscow will develop unequally. This means that some districts will be occupied by rich people, another – by poor, some districts will be devoted only to production, etc. This possibility does not lead to successful development of Moscow. So the Mayor of Moscow should pay

22 GREATER MOSCOW – THE KEYS TO SUCCESS special attention on that issue, insuring that such inequality would not arise during the process of territory extension.

(Elena Shvetsova): Already, most of country’s resources are concentrated in Moscow, leaving the remote areas extremely vulnerable to severe poverty. With expansion, the lack of balance between Moscow and the rest of Russia will only aggravate, causing: hatred and discrimination based on the place of origin constantly increasing number of people living in Moscow low development rates of the whole country.

(Christina Yao): Great Moscow can help to decrease the social inequality and to bring down the violence and insecurity in the city.

Displaced citizens

(Fedor Agadzhanyan): The recent examples of how authorities treat people who “should and must” free space for constructions sights may also raise concerns.

On the other hand, in an interview Mrs. Sergunina - the head of the property department of Moscow - stressed that the owners’ rights will not be violated.

(Valeria Bondareva): The expected massive development of the area, as a consequence will have the destruction of old housing, private homes, summer cottages, garages, etc. Experience shows that the event is almost always accompanied by dissatisfaction by the local population. It is caused by different factors, often the authorities' unwillingness to adequately compensate for any inconvenience.

Provision security for the increased demand of greater city

(Stanislav Ivnitskiy): Moscow has no farmlands, which is why the city purchases agricultural products from the Russian regions and foreign companies. At the same time, Moscow has everything necessary for processing and warehousing

23 GREATER MOSCOW – THE KEYS TO SUCCESS these products, i.e. food and food processing enterprises, along with warehouses. At the moment, Moscow possesses a quality control system that monitors food products at various stages.

….making sure that regulations and their successive execution in the field of food safety control are efficient enough to cover the need of city almost two times bigger is of cornerstone importance for the realization of the project.

Protection of cultural heritage

The exodus from the city centre provoked concerns that Moscow’s cultural heritage will be protected for ourselves and for future generations (see Christina Yao, Elena Minchenko, Anonymous Student, Elizaveta Nemytysheva, Roman Morozov)

Immigration control and minimizing corruption

Moscovite authors were concerned about the limits and control of immigration in Moscow today and in Greater Moscow tomorrow. President Medvedev’s views on the elimination of corruption were widely and strongly echoed by many of our authors.

Moscow Expansion: the end, the beginning of the end or the end of the beginning?

The planned expansion is an opportunity for Moscow to provide more space for all. To halve its population density would mean moving some 6-7 million people, assuming no more arrivals.

This is beyond the current scope of the expansion. Unless the capital is moved to another city, this is the first step in a series of expansions of a great city. We hope that our essays help in its growth.

24 GREATER MOSCOW – THE KEYS TO SUCCESS

25 GREATER MOSCOW – THE KEYS TO SUCCESS

SECTION 1. MOSCOW BORN STUDENTS

Alexander Smogorzhevskiy Introduction

Recently Russian government has taken a decision to extend the territory of Moscow by approximately 2.5 times. The territory which lies between Kievskoye highway, Varshavskoe highway and a big railway ring of Moscow will be added to existing borders of Russian capital. Our government is planning to create a new international financial centre.

This decision was actually argued by many citizens, but, nevertheless, the territory of Moscow will be expanded in the nearest years. This essay is going to highlight eight factors that will make that extension of Moscow successful.

Roads

Today, Moscow citizens and foreigners that travel, or work, in Russia both agree that the major problem of our capital is awful traffic jams. Mornings and evenings, it may take several hours to get to your job, or home. Even during the working day, it is always much faster to go by the underground than by car.

The extension of Moscow can partially solve this problem, because it is supposed that there will be created several so called ‘centers’, where the majority of offices and business centers will be located. Also, the extension of the territory by 2.5 times gives a hope that intensity of vehicular traffic will be decreased.

What the Russian government should also do is to build wide roads and convenient traffic interchanges. Some steps are being taken in this direction even now. One year ago, a decision on the increase of the road budget by almost 10 times was taken. As a result, we saw a massive change of old asphalt on Moscow main 26 GREATER MOSCOW – THE KEYS TO SUCCESS roads (Sadovoye ring, third transport ring and, of course, MKAD) and reconstruction of main traffic interchanges (Leningradskoye highway and Novorizhskoye highway, where they cross MKAD).

The Mayor of Moscow, Sergei Sobyaninhas, also took a decision to make our roads very similar to European. For example, a new separate line for public transport is being created on main highways even now. Moreover, it is planned to replace many crossroads by roundabouts.

Legislation

The next important step that Russian government should do, in order to make the extension of Moscow territory successful, is to adapt changes in legislation.

It is not a secret that nowadays Russians, as well as foreigners, see a lot of pitfalls in our legislation. The West believes that many decisions taken by government violate human rights and that these decisions are preconceived.

It becomes evident that without serious changes in Russian legislation, it will be not possible to attract serious foreign investments. The legislation should become clear and equal for everyone, not depending on the social status of a person.

The next issue concerning the legislation is corruption. For the majority of world population, such thing as bribery is unacceptable. And as long as acts of corruption take place in Moscow, it will not make possible to develop Moscow as international financial center, as not so many people would like to conduct a business in such unstable environment. Bribery seriously harms competition. Really-severe laws should be adopted to eliminate that problem.

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Environment

The third factor on which government should pay serious attention is the environment. It is clear that extension of Moscow will not be successful without creating good environment for people on territories that will be added to Moscow.

This means the creation of good living conditions, building of hospitals, kindergartens, parks and affordable parking. Some steps are being taken in that direction now. For example, huge companies, like Gazprom, are building sport grounds in all Russian regions, as part of their social program.

It should be noticed that the infrastructure of the territory that will be added to area of Moscow is very different from existing one. There are no big cities on that area. Therefore, it means that the infrastructure there will be created from scratch. It will need a lot of investments to develop this area to the same level as in Moscow and, therefore, making people to move there.

Also, government should create a convenient infrastructure of public transport. Today, the only way to get to the new territory of Moscow is to go by train, or by car. Sometimes, you also may have to take several buses to go where you need. So, government should create the possibility for people to go to different places of Big Moscow area within short period of time.

Business environment

The fourth key to success in extension of Moscow territory is creating good business environment. Steps should be taken in order to move part of businesses to the new area.

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It is obvious that no business would prefer to move to the new territory from the existing one, if similar business conditions will not be created there. It involves building of business centers, plants, restaurants, and hotels.

What our government should do in order to develop business at the new territory of Moscow is to offer to legal entities some economic advantages if they build their facility there. It can be, for example, lower tax rate, or lower land rent. Such conditions can be very favorable for small and middle size enterprises.

Also there should be created some favorable conditions for foreign businesses, which want to operate at the new territory of Moscow. It involves providing some economic advantages, creating infrastructure of European level and avoiding any language barrier (this can be achieved, for example, by translation of road signs into English, by creating a multicultural environment).

Immigration

The next key factor to success is control of immigration. Nowadays is almost impossible to count the exact number of illegal immigrants and their amount increases every year. Today, our government does not pay enough attention on that issue.

However, some steps are being taken today to improve the situation. For example, recently the new law was adopted making immigrants who want to work in Russia to obtain not only registration, but also work permit. Anyway, more severe measures to control illegal immigration must be imposed. Moreover, the Russian government should make jobs performed by immigrants more attractive and higher paid, so that Russian citizens would work there instead of immigrants.

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Economic stimuli

In order to make the development of new territory successful government should offer some economic stimuli for the population that will move there. Even if the infrastructure at the new territory will be developed to the same level, as the existing one, people would not move there so willingly. The Russian mentality is very specific, and if there were no serious advantages in that move, people would not do it. The example of such stimuli can be lower mortgage rates, or lower municipal payments (water, gas supply, electricity).

Political environment

The territory that will be added to Moscow is now controlled by the Moscow oblast. It is evident that for successful extension of the territory, centralized governance should control it. It means that the existing governance structure should be applied to new area. There should be created several districts with different local authorities, which will be reporting to the Mayor of Moscow.

Equality

There is a big fear that Moscow will develop unequally. This means that some districts will be occupied by rich people, another – by poor, some districts will be devoted only to production, etc. This possibility does not lead to successful development of Moscow. So the Mayor of Moscow should pay special attention on that issue, insuring that such inequality would not arise during the process of territory extension.

Conclusion

To sum up, the extension of Moscow is very complicated and long process. It involves many economical, political and social issues. The above described factors

30 GREATER MOSCOW – THE KEYS TO SUCCESS are very crucial for the extension to be successful. Moscow government should start to implement these keys to success simultaneously, paying equal attention on all issues. Only in this case the extension of Moscow will be smooth and successful.

Anait Keshisheva Not long ago, a plan on the expansion of the territory of Moscow was approved. Long disputes on whether the project should be executed have taken place ever since. Putting aside the possible advantages and disadvantages of the project, it is possible to identify several key points that will make the project feasible.

Firstly of all, a concrete and accurate plan for development of territory is required, which also has to be supported by sound economic justification of necessity of the project. It is of utmost important for the government to determine the aim and the final expected results of the project because, in my opinion, those are not yet determined.

Thus, if the expansion purpose is to cope with the problem of the traffic jams, then this is not a way out, because there are more simple and economical decisions. One of such decisions is, for example, to construct direct roads connecting Moscow suburbs and the center. Besides, nobody prevents us from making use of foreign experience and build multi-level road constructions. It is also necessary not to forget about programs on regulation of traffic intersections. So, capital expansion for this

31 GREATER MOSCOW – THE KEYS TO SUCCESS purpose is not required. Likewise, if the aim is to remove industrial production outside Moscow for the sake of the ecology-if that is the aim —we actually do not have that much production.

Therefore, the whole project will start to make sense only after the real reasons for its implementation are agreed upon. Only after that will be possible to determine and develop a concrete set of actions to carry out in order to accomplish the project. These actions should touch upon all the spheres of peoples’ lives, social economic, political and cultural, meaning that the government should develop a separate plan of actions for separate sphere of life.

Secondly, it is important to carry out constant communication with the people on explaining the purpose of the project. The fact is that the first step to success of a new project is the approval of people the project in question is going to touch. Therefore, it is necessary to somehow convince people of the necessity to realize this project. To do so, the government should explain all the benefits that the people could obtain on the completion of the project.

People should be updated on the progress of the workflows, on their state of completion, perspectives and possible obstacles. It can be done through the introduction of a new website. Such a website should contain information on works that are being carried out, on their duration, terms. This information should be updated regularly. It might also be beneficial to establish some kind of a forum on this website where the Moscow citizens will be able to express their opinions and give recommendations.

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Besides, a strong advertising campaign would help people believe in the good that this project might bring upon completion. Pointing out the benefits will make people interested.

Therefore, the main idea is that people should take active part in the upcoming changes. That should have their impact on the plans and decisions made. This way, the Muscovites will feel their significance in the process of decision-making, thus, improving their attitude towards governmental projects.

Thirdly, it is important to create a sound infrastructure as well as improve existing one. This mainly concerns the territory that is going to be attached to the Moscow territory.

Moscow is the most complicated mechanism with an uneasy infrastructure, with a difficult system of communications with its benefits and disadvantages. Any decision on introducing new changes, including construction of a new building, should be approached with an utmost responsibility. In such a case, a systematic approach is highly recommended. Before accepting a decision to build something, it is necessary to preview the whole picture, to carry out the analysis, to take into account all possible benefits and costs. It would be better if more professionals worked in creating new infrastructure. The main goal is to make the capital beautiful and convenient for its inhabitants. This includes building new educational institution, hospitals, shops and other important for loving facilities.

Actually, creating infrastructure also includes development of transporting system. Moscow needs the development of a uniform system, where public and 33 GREATER MOSCOW – THE KEYS TO SUCCESS private transport will coexist end complement each other. Such a system would give a chance to the citizens of an alternative choice of kinds of transport service.

One of the basic problems of development of a transport infrastructure of Moscow is intensive automobile density of the city. Therefore, it is important to decrease this density by building new city highways, effective pedestrian crossings, and also - bridges creating unity of the city territories and strong links between its parts which will ease the access from one river bank to the other. It is also important to create modern systems of regulation and movement control. Significant increase in underground lines is also required.

Fourthly, it is necessary to separate the centers of business and the centre of administration .Symbiosis of business and the power which is embodied by modern Moscow is the main obstacle for economic and social development. One of the most essential problems in these conditions is that business is interrelated and mixed with politics. Therefore, the division of the two can be an essential step to real transformations to the economy. This will promote the fight against corruption which is fixed by the existing attachment of officials to business. This interception of businesses and officials always has been there and still remains the most favorable environment for corruption development, and creates conditions of its continuous reproduction.

Of course, it would be naive to expect that simple segregation will eliminate this problem, but it will at least give chances to positive changes.

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Besides the above mentioned factors, the following four are also of a significant importance.

It is important to make the newly attached territory of Moscow investment attractive. Only this way the government may seek for a rapid response, thus, rapid development of the new territory.

Besides, it is essential to provide with new housing opportunities. However, the new construction should not be massive; it should be carried out gradually. Moreover, the prices real estate in the region that is going to be attached should be affordable.

New work places have to be created. Only together with the perspective of new affordable housing facilities and developed infrastructure people will consider moving and relocating to the new to the new region.

Finally, it is important to prevent illegal immigrants from moving to Moscow and to the new Moscow region. This will ensure that the qualified workforce uses the benefit of the new employment opportunities, but not other people.

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Dmitry Nemytyshev Introduction.

We are living in a big megapolis- Moscow- the capital of Russia. This city is full of hustle and bustle. The pace of life in Moscow is very quick, I would say crazy. The population of the city is approximately 14 million with area of 1091 square kilometers. So it is obvious that our city needs some changes, reconstruction and future development.

Recently, Dmitry Medvedev has started the next megaproject which should ensure his government’s place in history, — radical expansion of Moscow and moving the federal officials to the MKAD. Unfortunately, there are many problems connected with this expansion. First of all we have to name them in order to cope with such a difficult task.

Very high density of population

One of the biggest problems of Moscow is that it is very densely populated city. The main aim of this expansion is to disperse people who are here. So the first key is not to make the previous mistake and build too many skyscrapers near each other. We should build 3-5-floor buildings and there has to be great free area for parking, roads, parks and other social needs. Some of the districts are overpopulated, some are less. A well-planned scheme should be created in order to make people’s life more comfortable. Today, we are faced with such problems as queues for kindergarten places.

The other side of this problem is a great transportation collapse. In Russian language we have a very characteristic proverb - there are two disasters in Russia: fools and roads. So that is why the main key is connected with automobile roads. 36 GREATER MOSCOW – THE KEYS TO SUCCESS

Imagine, we live in the biggest country in the world and we have area shortage! New blocks of flats are built without enough parking places near them. In every courtyard in Moscow you can see cars parked on the grass, borders, and footpaths and so on. People have to walk on the roads, women with buggies do not have enough space. Also, in our country, many people drive terribly, at a great speed even in yards. That is why we need a lot of new parking places; we need a wise resolution of this problem. In the center it would be better to create paid parking, but there is one enormous problem- we have lack of free area there, moreover the underground space is also occupied by the metro. So in order to make some new decisions, a careful plan should be generated by the authorities.

Traffic jams are one of the greatest problems in Moscow. We have more than 2 million cars passing thought our city every day. Every day, there are extremely big traffic jams and we spend about 15 hours every week on the road from home to work and back; from outskirts of the city to its center. The roads are overflowing and the circle-model of the transport system has proved its inconsistency. Moscow would be better if it had a radial-model. I hope the changes will be seen soon, because nowadays the situation is really terrible on our roads.

Cars are very different – there are a lot of trucks that are coming from nearest towns. That is why there is usually enormous traffic jams on federal roads, such as Leningrad highway, Moscow-Don and so on. There is no fixed routine of hours when such transport vehicles can use these highways. Nevertheless, somewhere you can see such restrictions, but people in most of the cases do not pay attention to them. So in order to make these restriction and marks work, authorities have to increase fines and to install automatic systems of road control. The fines have to be generated by computers, which will receive information from cameras, not by the police officers (because in our country, we have such a thing as bribe).

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Ecological environment To say about the ecological situation on our environment, we should mention that Russia still does not adopted the Euro-5 level of fuel cleanness, and more than half of our gas station have only Euro-3 and Euro-4 standards of oil. Fuel power stations still function nearby suburban districts and people who live there cannot even open windows to air their flats. All the heat stations must be built at least 12-15 kilometers from the living districts. Also, the blocks of flats should not be situated near big roads and avenues because of air pollution and great noise. Cars there emit harmful substances. Ideally, the blocks should be separated from roads by forests or small forests.

No plants and no factories should have a chance to pollute our rivers. The laws should restrict them and fines must be increased in 5 times or more times. At the same time, all the dirty rivers should be cleaned for us to have a possibility to swim there in summer. Even 20 years ago, we had plenty of places where we could spend our time near water in Moscow. But nowadays there are only two of such places.

Legislation

The next important step that Russian authorities should do in order to make the extension of Moscow territory successful is to adapt law changes.

Our legislation is full of disadvantages. In order to attract new foreign investments, legislation should be transparent and obvious. So, serious changes should be introduced to make all people see that our legislation is equal for everyone not depending on any social positions, money and so on.

Nowadays, we face a very difficult situation with immigration in our country, especially in Moscow. A lot of ‘guest workers’ come from their native countries in search of money. Their wages in Tadzhikistan, Kirgizia, Uzbekistan are extremely small, and they could not even buy food for their children. It is very difficult to count 38 GREATER MOSCOW – THE KEYS TO SUCCESS how many of them are in our country, even impossible. The authorities ignore this big problem.

In my opinion, Russian authorities should first of all provide native citizens and population with working places and only when there are some vacant should they invite immigrants, in order not to make our unemployment greater. Unfortunately, Russian people do not want to work for such low wages. That is why the Russian government should increase wages for such kinds of work.

Work with the population

In order to create some changes in the life of a city, many people should be involved in this process to achieve good and effective results. Authorities should work with the population and should explain why the changes are being implemented. That is why qualified social work must be undertaken.

Citizens and the population as a whole should believe their government, should know for what purposes money is taken from the budget and things like these. Good relations have to be created between people and authorities and also a positive attitude towards changes proposed by the citizens should be established.

5.Political environment

6 .Control over historical heritage

7.Migration control

8.Business environment

The most important thing connected with Moscow expansion is its transparency and effectiveness that would be obvious for all. I think it is the main point in every change.

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Elena Shvetsova

The expansion of a rapidly-developing city is inevitable. Now Moscow has reached the limit of territorial growth. It is suffocating in its current boundaries. Overcrowding and traffic jams are bringing parts of Moscow to a standstill. The city’s radial-circular system is hopelessly outdated and can no longer meet the requirements of contemporary urban development. According to the recent rating compiled in Britain, Moscow was ranked among the top ten world’s capitals with the most horrible traffic jams. So the Moscow Government came to a decision that the city is not left with many options other than expanding its borders, which will definitely provide with new opportunities for a faster rate of development. In order to meet the growing demand for space and solve other Moscow’s vital problems a project «Greater Moscow» was worked out. According to this project, Moscow’s size will increase from the current 264000 acres to 620000 acres, expanding to the south and south-west, taking in forestland, small communities and dachas (summerhouses). The project also includes relocating key state institutions beyond the MKAD and establishing a new administrative unit. Moreover, this project proposes construction of an International Financial Center in Moscow, which will be located at the outskirts of the city. Thus, «Greater Moscow» is an ambitious project to expand the capital’s boundaries and build a modern city which can accommodate several million of citizens, federal agencies and financial institutions.

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Moscow Government assumes that these measures will: - relieve traffic congestion in the city, as relocation of parts of city’s functions to different zones will decrease the pressure on the center - attract huge investments to the city and, as a result, create lots of new jobs - create more housing possibilities at moderate prices Although all this sounds quite reasonable, the plan caused a lot of debate. Here are my priorities - points which should be given particular attention - while bringing the project into reality. 1 - Focus on real life While developing a greater Moscow project, one should set realistic targets which are possible to be achieved and which take into account both general situation in the country and minor specific (which may be temporary) details and aspects. What is more, the measures taken should actually solve the existing problems and not add new ones. For example, «Greater Moscow» project claims to ease traffic situation in the city by means of: 1 - increasing the city territory 2 - moving state and financial institutions to the outskirts of the city 3 - constructing new metro lines, railway lines and highways. From my point of view, these measures will definitely influence the traffic situation, but not solve it. To solve the problem one should change the whole current unicentric urban development model, where roads lead to the city center, for a polycentric model, where roads go in all directions. The proposed «solution» is about prolonging the existing and developing new roads and not about changing the system. The transport system in the center of Moscow won’t become bigger, or more efficient. Only the roads will become longer, 41 GREATER MOSCOW – THE KEYS TO SUCCESS which will cause more pressure. Moscow metro will face the same situation - its capacities are not designed for that. According to the «Greater Moscow» project, relocation of state and financial centers from the Moscow center to the suburbs will contribute to transport system relief. Nevertheless, the experts state that these new centers will include only 10-15% of the city’s workforce, so the impact on the transport networks is unlikely to be very big. Moreover new territories mean new residents who will also need to get to their job-places, or to city-center which will mean even more pressure on transport system. Moscow’s mayor claims that building an International Financial Center in Moscow will provide a great number of opportunities, including investments’ attraction and creation of new working places. In reality, there are numerous other factors deterring foreign investment which are not taken into account by the Moscow Government, such as: weak institutions, corruption, too much governmental involvement in the economy, lack of strong legislative base. New Moscow territories are supposed to provide accommodation for many people at moderate prices, says the mayor. However, now, when nothing actually has been created, the prices have increased dramatically and can no longer be regarded as affordable; not to mention what will happen when new metro lines and highways will be constructed in those areas. 2 - Analysis comes first In order to work out a good plan, and in order to be able to turn it efficiently into reality, one should conduct a profound analysis of the whole situation and of each of the proposed issues in particular to be able to forecast its implementation and future operation. One of the problems to be dealt with in Greater Moscow project is population density. The solution proposed by the government is the territory increase. In reality, it cannot be the solution as Moscow has always been a place of attraction for many

42 GREATER MOSCOW – THE KEYS TO SUCCESS people both from Russia and from neighborhood countries. Moscow can provide its citizens better career, educational, and other opportunities. People came, come and will come to Moscow in search of work and better conditions for life. Especially when most resources are concentrated in Moscow, people just have no other choice than to come here. The territory of Moscow will grow so will the number of its residents. 3 - We do have a plan After the profound analysis, Moscow Government should propose a detailed plan with all the minor issues taken into account. This plan should be available to public. At the moment many fundamental questions are left without answers: 1 - Source of finance. It is not defined who will pay for this project, so it is likely to turn into an additional tax burden on Moscow residents. According to the official estimates, the whole project is expected to cost several billion dollars (Moscow regional Government expects to be paid about 4 billion rubles as compensation for the territories) with the main sources of financing being the federal government and regional budgets. However, no financial provisions for such services are provided in the above mentioned budgets. The country’s current economic situation is far from rosy, so it is unlikely that the government will be able to fund such a big project. A chief economist at Renaissance Capital expects a high level of participation from the private sector. 2 - Creation of administrative and financial hubs. These issues remain vague as only ideas are proposed and a detailed plan is missing. That means that the project may turn out to be a fiasco, if the building will start without a plan. 3 - Highly-skilled specialists’ involvement.

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To make this project a success leading experts in construction, engineering, design and infrastructure developments should take part in it. Legal specialists should also be invited to carefully work out legal issues. 4 - «Dacha-question». Nobody mentioned how the situation with dacha-owners will be solved, although it is one of the most important questions in the project. Currently the areas occupied by dachas are estimated at between 2000 hectares and 3000 hectares, with market price over 2 billion dollars. 5 - «Forest-question». The plan of new roads and railway construction remains unknown, but many people assume that forests as being state property will be destroyed first of all, which is highly undesirable.

4 - «People-friendly» One should always remember that the plan is designed for people - in order to create better living environment for them. That means that their points of view should be considered and their rights should be respected. Usually in Russia, the officials decide and then start to build and what people think makes no difference to them. This concern is based on former precedents related to similar situations in Sochi, Butovo, Khimki. Moreover, the practice of public hearing, which is at the moment the only way for people to express their opinion, proved to be ineffective. So a mechanism should be worked out to take public opinion into account. On the one hand, the population of Moscow is so huge that it is impossible to expect the same point of view from all people - there will always be those who disagree with the others. On the other hand, they all have the right to express their opinions, which should not be left without attention.

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The project has several controversial, burning issues: what will happen to dachas, forestland, will those who live not far from the city-center have to move to the outskirts. The answers to all these questions should be people oriented, that is advantageous for people, first of all, not to the government or investors. 5 - Environmental issue The ecological situation in Moscow is becoming even worse every year. Needless to say that «Greater Moscow» plan, which includes urbanization process and forests destruction, will bring only more problems, causing irreparable harm to natural environment. It is high time people thought about it. 6 - Never put all the fruits in one basket Moscow - is Russia’s center of universe. It is technological, cultural, historical, political, financial center. If the activity in Greater Moscow stops, at least temporarily (for instance, due to forests burning - as it happened), the consequences for economy and security will be devastating as the rest of Russia will remain helpless without its capital. Not to mention that the terrorists will be even more motivated to attack Moscow. 7 - Anticorruption policy «Greater Moscow» - is a project which involves great financial resources. Its implementation will approximately take 20 years and several thousands of people will take part in it. Without a detailed planning, strict accountability, regular public reporting, thoroughly worked out controlling system this project will turn out to be a failure due to corruption. 8 - Harmonious development Already, most of country’s resources are concentrated in Moscow, leaving the remote areas extremely vulnerable to severe poverty. With expansion, the lack of balance between Moscow and the rest of Russia will only aggravate, causing: - hatred and discrimination based on the place of origin

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- constantly increasing number of people living in Moscow - low development rates of the whole country To solve this problem other Russia’s large cities should be elevated to a level comparable to Moscow, in order to ensure secure and harmonious development of the country.

Sources of information: 1. http://www.metrolic.com/moscow-grows-into-a-megalopolis-175870/ 2. http://indrus.in/articles/2011/09/12/a_new_address_for_russian_babus_1298 8.html 3. http://russiaprofile.org/culture_living/47717.html 4. http://themoscownews.com/local/20110819/188940900.html 5. http://www.itar-tass.com/c154/187205.html 6. http://english.ruvr.ru/radio_broadcast/2249159/55159736.html 7. http://english.aljazeera.net/video/europe/2011/09/2011928165014792432.ht ml 8. http://www.guardian.co.uk/world/2011/jul/14/moscow-double-size- overcrowding 9. http://themoscownews.com/moscow/20110714/188843313.html 10. http://www.moscow-russia-insiders-guide.com/moscow-expansion.html 11. http://www.trcw.ru/en/articles/detail.php?ID=2933 12. http://english.ruvr.ru/2011/10/28/59540847.html 13. https://andrewlainton.wordpress.com/tag/moscow-expansion/

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Elizaveta Nemytysheva Introduction

Our life today is very difficult, especially if you live in a big megapolis like Moscow. The pace of living is very active, you cannot lose a minute. There are a lot of citizens in our city- more than 14 million, but the area of Moscow is not so big for such population. The city is overpopulated, is full of illegal migrants, mass building, insubordination of the law. That is why the aim of the Moscow authorities is to make life in our city more comfortable, peaceful and beautiful.

Recently, Dmitry Medvedev has started the next megaproject which should record his government in history, — radical expansion of Moscow by moving the federal officials to MKAD. Unfortunately, there are many problems connected with this expansion. First of all we have to name them in order to cope with such a difficult task.

Roads Roads in Russia are one of the greatest problems. Even in Russian language we have such a proverb, that there are 2 disasters in Russia- fools and roads. Living in the biggest country in the world it sounds crazy, but we have terrible situation on our roads. Every day, we spend about 3 hours on the travel from home to work and back. Each year, this time is equal to 30 days! One month out of twelve! It starts from the useless road police and finishes with rudeness of drivers. Also, the cause of this problem is the outdated transport system. Practically all the huge interchanges must be changed, the car flow has risen twice in the last 10 years, but the

47 GREATER MOSCOW – THE KEYS TO SUCCESS improvement of roads does not have the same pace. For example, one interchange near the Belorussky railway station has been being rebuilt for more than 8 years, and it has not been finished yet. Another example is the interchange in Leningradskoe Avenue. It consists of 3 roads and is less than 2 kilometers lengthwise, but it costs more than 5 billion dollars! Of course, if the price of such sub-quality roads is so great, it is impossible to renew all the transport system. The only way to succeed in this sphere is to invite specialists from Germany, for example, and to use their experience. The big avenues should be built far away from houses to have a chance to be enlarged. All the pedestrian crossings must be either over ground, or underground. The reasons for this step are not only the traffic jams, but also because of the death rate. Nobody observes the traffic rules and it causes extremely great number of accidents on our roads. Also, we need toll highways round Moscow. All the roads round our capital are full of trucks, slow buses and so on. This greatly influences the average speed on those roads. If we have some fast roads, it would simplify our ways. Special lanes for public transport are necessary, but this transport should be modern and there has to be enough buses and trolley buses. However, today we have them either overflowing, or moving with the speed about 30 km per hour. Legislation To attract foreign investment, our legislation system must be changed based on the principle of transparency and on the world experience. Keeping in mind the internationally-reported, controversial cases, only short-sighted businessman can invest his money into our economy. The human rights are not observed, to deal here you should pay bribes to everybody, from policy and firemen to criminal elements. The level of corruption is horrible and the government does not seem to know how to solve this situation.

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The level of tax on some manufactory branches should be decreased, especially in agriculture and manufacturing of child products, products for retirees and for disabled persons. There should be advantageous credit systems for such branches of business, as practiced all over the world. People should be interested in producing something in Russia, not only in buying something in China and selling it here. The complexity in our legislation makes many Russian companies register in Cyprus and Luxemburg. Due to that we lose billions of dollars every year, and we have no laws that can prevent entrepreneur doing it. The Chinese sends more than $50 billion from Russia to China. Also, we have much more guest workers from Caucasus and Middle Asia. You can imagine the losses that we have because of them.

Control of migration The amount of immigrants in Moscow is rising from year to year and the number of them amounts to 3 million. Half of them stay here illegally. As we can see in the criminal statistics, it really becomes troublesome. So, the number must be decreased, the quality must be raised and the condition of their lives must be improved. They should live not a little bit far away from indigenous population, like it is in Dubai for example. So there will be much fewer interethnic conflicts. But today most of them live in cellars, barracks or in very small flats with tens of neighbors. There must be a work visa and only qualified specialists would have a chance to earn it. We do not need cheap labor. 20 years ago, all the yard keepers were Russian and they had normal wages and nowadays we can make good conditions for all occupations. Affordable houses for young families and for state employees, especially for military officers. It sounds like a joke, but we have more then 300 000 families of military men who do not have their own flats. They live in temporary apartments and communal flats. That is why in «new» Moscow the government must build a great

49 GREATER MOSCOW – THE KEYS TO SUCCESS number of budget flats for such strata of people and they must have an accessible mortgage.

Ecological environment

The profit from cleaning up rivers is water transport that also has a big potential. Still, there are no traffic jams and the speed of water transport is quite good and it is even greater than the average speed on Moscow highways during the rush hours. The development of air transport is also the way how to improve whole transport situation in our city. Especially, it is a business of police, ambulance and bureaucrats. Usually, we have the roads closed by the policy when some bureaucrats (starting with our president and ending with ambassadors of Zimbabwe) go from airport to the center. During that time, all the traffic is stopped absolutely. It can last from 1 hour to 3. You just stay on one place. I adore spending my free time in such a way! After the expansion of Moscow, there will be 2 big airports, Domodedovo and Vnukovo right near the city, so I do hope our government will gain conscience and they will go from home to work by helicopters. Also, big businessmen can do the same because usually they have equal advantages (like driving on a counter strip) like bureaucrats. Even 25 years ago, Moscow used to have twice more forests than it has now. Sadly, our government enjoys cutting down trees and replacing them with houses, shopping malls and churches! The expansion territory consists of 50% forests. This balance should not be changed. We do have too many areas where houses can be built without cutting down trees.

Cultural heritage It concerns mostly the center of Moscow, but in the affiliable territories also there are many historical buildings that should be rebuilt, restored. In practice, we see 50 GREATER MOSCOW – THE KEYS TO SUCCESS that huge amount of cultural heritage is being destroyed and, in their place, new offices and shopping centers are built. In this case, the legislation also must be changed.

Recently, there has been a big conflict between private developer and people who defend cultural heritage. In Bolotnaya Square, a building that was built in 18 century has been demolished without permission of the government. This situation shows that the law does not work in our country at all. People even forgot about its existence. The style of adjacent buildings should be the same. In Moscow center, you will see many skyscrapers near churches for example, the palaces of imperial epoch near Stalin’s buildings. It looks awful. The only thing that influences the look of new built houses is the economy of money. It is much cheaper to give a bribe to a bureaucrat than to build modern- looking house. It would be ideal that there will be made independent commission that would consist of respected architects, artists and so on. To build anything in the city you would have to get permission from them. Every district must have a strict plan of development where there were written the vector of growth, approximate look, form, and colors of the future buildings.

Business environment

In our city it is very important to have comfortable access to your working place. Unfortunately, people have to spend a lot of time in traffic jams going from working places to their houses and work. So, Moscow authorities have to move many business centers from the center of the city to its outskirts in order to prevent such awful traffic jams.

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Work with population

In Moscow schools, in history classes, problems of our city should be discussed. Pupils should love Moscow and this is the responsibility of teachers. If you look around on the street, you can see many people litter everywhere. Cigarettes, bottles, packages are thrown on the roads and ground. Of course, we have a huge number of yard keepers who keep our streets clean, but nevertheless the situation must be changed. At the same time, the fines for littering must be increased in times.

Also, the immigrants must be punished strictly, if they come to our city and do not respect it and us. If they throw away rubbish just on the streets, there must be a great fine and immediate deportation.

The territories in suburban districts near houses should be used by local residents: they must have a chance to grow there flowers, grass and trees. Local government must help them in this.

Political environment

First of all, the bureaucrats should be under strict control by the local citizens. All budget expenditures must be easily seen by anybody. Then, the politicians must fill in the income declaration and all the members of their families must do the same. It can influence on the level of corruption. If there are any doubts about any bureaucrat’s 'clear conscience’ people must have a chance to fire him.

Long-term planning of changes

All this work should be done with the consultation with Moscow citizens, studying the experience of New York, Shanghai, and Paris. Moscow does need this expansion and I believe that we will succeed. The effectiveness of these changes should be obvious and people for whom these changes are being made should know

52 GREATER MOSCOW – THE KEYS TO SUCCESS what for their money (budget money) is paid. Also, good and confidential relationships should be established between authorities and citizens. Changes should be implemented in order to make peoples’ life more comfortable and easier, not in order to make money for authorities. Unfortunately, this will be very difficult to achieve because of the Russian mentality, but let us hope for a bright future!

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Mikhail Malev

Two months ago, citizens living in Moscow were shocked by a public announcement that borders of Moscow should be expanded. Some thought that it was a step in accordance with the environment, while others were sure that it would cause only damage to them and asked one another why the new head of the city is going to do it. There are a lot of rumors about it. Nevertheless, it came to pass. Moscow became bigger and this expansion was significant. As a result, we have a lot of questions about the future of Moscow. How will it be used? What should we expect from such events? How can it help citizens? So, I will try to comprehend the priorities of Moscow development. In addition, I will try to make a detailed analysis of all priorities and come to a final conclusion about the future of Moscow. The public announcement on the expansion of Moscow should not be deemed as an unexpected event given numerous attempts to make Moscow larger in the past 5 years. So, before starting to analyze the current plan of development, I would like to review one of those attempts to enlarge Moscow’ borders undertaken in the past. In 2007, the Moscow City Administration approved the decree “On Strategy for Development of the City of Moscow up to 2025”. According to this document “The aim of the Strategy was to gradually increase the welfare and improve the living standards and security of Muscovites, on the basis of sustainable social and economic development of the city”. The Administration promised that the city’s transport infrastructure would be constantly developed and the territories adjacent to Moscow would be transformed in line with this development. They supposed that “in the

54 GREATER MOSCOW – THE KEYS TO SUCCESS future, new thoroughfares, a highway connecting Moscow and St. Petersburg, a northern bypass route around Odintsovo, the Don highway, and a highway to Noginsk would be constructed”1. Thereon, we can conclude that the expansion of Moscow was the foremost priority for the region development in order to resolve all Moscow problems which, from my point of view, are more significant. Below, I will list some burning problems which Moscow faces: – Overcrowding. – Traffic jam – Low level of infrastructure growth – The cost of public utility services

In accordance with the list of problems represented above we will concentrate on the priorities which should solve Moscow problems.

The first priority. Avoiding Moscow overcrowding or discharging. It is really true that Moscow is overcrowded by citizens. Below, on the graph we can see how Moscow’s population has dramatically soared during the last decade. The growth of population is caused by immigrants who arrived from the neighbouring countries, as well as Russian citizens from all regions, in order to find well-paid job and better living conditions than those all over Russia, except big cities like Moscow, St Petersburg, Yekaterinburg and others. It is necessary to provide Muscovites with not only good living conditions but also with good functioning of Moscow. That is why it is necessary to establish a uniform population distribution. If it is not done, social and ecological living

1 http://moscow.ru/en/- Moscow International Portal 55 GREATER MOSCOW – THE KEYS TO SUCCESS conditions would be worse off. When location reserves are exhausted, there is just one right way of development which is initiated by the Moscow City Administration. The key point is that now it is a far more significant expansion in comparison with previous attempts to improve a uniform population distribution. Discharging of Moscow should be provided in line with other actions aimed to improve current situation in Moscow. For instance, it is impossible to relax the rigid population situation without solving such problems as relocating business centers outside of the centre of Moscow, traffic jams and all other issues.

Graph 1. A number of inhabitants in Moscow.

Measures which the Administration should undertake in view of Moscow’s area doubling, to solve the problem of overcrowding are: 1. To build new residential houses, 2. Relocate citizens from the center of Moscow

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The marked-out area could provide some 60 million square meters of housing and 45 million square meters of office space. This could provide housing for 2 million Muscovites and potentially create 1 million jobs. To sum up, we can arrive at a decision that due to the fact that Moscow will more than double in geographical size, one of the important problems faced by every big city in the world like New-York, Singapore, Paris, London, etc should be solved. A square meter per capita could be more and can give a lot of opportunities for citizens, Moscow and others.

The second priority. Solve traffic problems. Each big city recognized as an international financial center face such a problem as traffic jam. And all countries solve them in their own unique way. It might seem that there are more cars than people in Moscow. This problem in the capital of Russia has been growing almost exponentially for many years. The key point is that a traffic jam has a lot of negative consequences, some of which are that the efficiency of Moscow is becoming less and it costs a huge amount of money for both the city and citizens. The transport system is in a position where companies cannot run their business in Moscow. In addition, Moscow’s population lives under stress. The move is Moscow's boldest attempt yet to deal with the notorious bottlenecks that often bring movement in the city to a standstill. Here we can emphasize several points how we can resolve the problem of traffic jams in Moscow2: – Building new roads; – Priority to public transport (special bus lanes); – Limiting construction of office buildings in the centre of Moscow;

2 http://en.rian.ru/infographics/20101028/161118178.html- Article about “Ways of solving Moscow traffic problems” 57 GREATER MOSCOW – THE KEYS TO SUCCESS

– Limiting trucks in the city; – Introducing modern system of regulating traffic; – Constructing garages; – Introducing limited traffic zones and organizing parking lots; – Promoting “intelligent traffic”. So, the expansion of Moscow can complement (however, not substitute) most of the above listed measures. It can provide new roads, create parks and garages, ease the big-truck burden of the Moscow historical center, if the majority of companies were to be relocated out of the centre of Moscow. The expansion of Moscow stipulates a number of measures for improvement of the capacity of the Moscow Ring Road and the main street road network as a whole. It gives large opportunities, in conjunction with the infrastructure development, across the newly created territory. Recent research3, carried out by Penny Lane, calculated the attractiveness of each commuter town with respect to how long it takes to travel to the city center, taking into account the quality of highways, the likelihood of traffic jams and the quality of public transport links. The research found that the commuter towns with the fastest links to the center were Krasnogorsk and Volokolamsk, located on the Novorizhskoye Shosse, which has no traffic lights and limited congestion. The agency concluded that the average commuting time to Moscow is around 1.5 hours and some 1,500 kilometers of new roads would have to be constructed to reduce this time. Solving the transport problems could facilitate the development of Moscow and the Moscow Region in a way similar to that of European cities, where most citizens live outside of the city.

3 http://www.themoscownews.com/realestate/20110915/189046346.html- article about the expansion of Moscow which called “Moving out of town” 58 GREATER MOSCOW – THE KEYS TO SUCCESS

The third priority. Developing infrastructure. Apart from providing space for Moscow’s rapidly expanding population and solving transport problems, the main aim of the project is to improve the capital’s poor infrastructure by creating a second center to share the burden of traffic, in a city with a population of well over 10 million. Moscow’s infrastructure, defined by its bottlenecks and lengthy traffic jams, has been rated by the World Bank as below the global average and worse than big cities in other BRIC countries. There are a lot of small towns across the newly-created territory which can aspire to become local financial centres. It is a logical move, since many of the people who would be working there already live in the area. Although the financial center could only encompass around 10 percent of the city’s workforce, the impact on transport networks was unlikely to be very big. The establishment of central hubs means that cities authorities will, in effect, triple the volume of transport infrastructure to be constructed and maintained. It foresees much of the heart of Moscow – its government offices and big businesses – moving to the new neighbourhood, forever changing the spirit of the city's historic centre. It means that due to the fact that it can create working places, it discharges people and cars or trucks from the centre of Moscow. Measures which should be undertaken in order to realize those keys to success: 1. Motivate entrepreneurs to organize new business across the newly- created territory; 2. Create attractive social and economical conditions for the infrastructure development; 3. Relocate government offices and big businesses; 4. Create a good transport system, highly-developed city infrastructure and a well-developed system of education.

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The Administration has determined long-term priorities for the evolution of Moscow into one of the world`s leading global financial centers, thanks to a high concentration of big finance-oriented businesses in Moscow, a well-developed system of education and training for professionals, highly-developed city infrastructure and a favorable social environment.

The fourth priority. The cost of community Price is another major concern. Although, on average, living in a commuter town is significantly cheaper than living within the MKAD (there are some major exceptions to the rule.) Due to the current economic situation, the price of real estate in Moscow continues to rise. Today, one could expect to pay US$4000 in average per square meter (11 sq ft) in the outskirts of the city according to information of Wikipedia website4 . As a result, in 2008 Moscow ranked top on the list of most expensive cities for the third year in a row. There are also a lot of expensive towns located near Moscow. For instance, real estate prices in some commuter towns located to the west of the city along the Rublevskoye Shosse far outstrip those in downtown Moscow, largely due to the prestige factor of owning land in the area. A high price tag, however, does not mean that you can avoid the traffic. Several intersections on the Rublevskoye Shosse are subject to traffic jams and the highway has a high number of traffic lights. On the other hand, the infrastructure development in the area is very high, with an abundance of grocery stores, restaurants, private schools and fitness clubs. We can arrive at a decision that such disproportional cost of living in Moscow creates a lot of consequences. Such problems as corruption, rigging and low living conditions only increase the gap between haves and have-nots. This fact just

4 http://en.wikipedia.org/wiki/Moscow- information about Moscow. 60 GREATER MOSCOW – THE KEYS TO SUCCESS diminishes the attractiveness of Moscow, which leads to a disappearance of the interest of foreign investors. Measures which should be undertaken in order to realize new opportunities related to the expansion of Moscow: – Provide citizens with available accommodations (low prices); – Provide available transport network with low tariffs; – Create competitive infrastructure to growing up children and living as a whole. Doing this we create all conditions for comprehensive development of new Moscow. Now, I will briefly enumerate other keys to success.

Other keys to success.

The attractiveness of investments. The expansion of Moscow should attract a lot of investors from both government and business sectors. Foreign companies also can take part in developing the infrastructure of Moscow (building roads and different constructions). The interest of global companies. It means that international companies which could not run business in Moscow before because of high prices, high cost of labour or other government restriction can do it now. The increase of production. The development of region can create good business environment what can increase productivity and efficiency. A lot of money concentrates in Moscow; that is, we can direct money to new business projects which was not available before.

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First step to continue expansion of Moscow. There are a lot of opinions that it is only first endeavor to expand the boarders of Moscow. As a result it is necessary to prepare for the next steps and try to identify what priorities would be the next. Successful activities aimed at attaining these priorities provide for the close cooperation of federal authorities, the Moscow City Government and private businesses.

References: 1. http://en.wikipedia.org/wiki/Moscow- information about Moscow 2. http://en.rian.ru/infographics/20101028/161118178.html- Article about “Ways of solving Moscow traffic problems” 3. http://www.moscow.ru/en/government/lifein_moscow/economic_experience /stopper/- Moscow International Portal 4. http://www.themoscownews.com/realestate/20110915/189046346.html- article about the expansion of Moscow which called “Moving out of town”.

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Natalya Sergeeva

Nowadays, county houses’ keepers in the south- west district of Moscow region felt themselves like an old Carl Fridricksen from the computer-animated film “Up”. Small houses in Aprelevka, Klimovsk, Sherbinka are surrounded by urban development, and after an admission of the “Big Moscow” project there will be nothing left to them except to fly away, using thousands of helium balloons to lift houses off their foundations. Suffering all the traffic jams, noise, pollution of the air and water, Moscow does not seem any more a city to live in, but only work. Moreover, expansion of the city will definitely lead to huge investments in building, which will double existing problems.

Many people argue about the possibility of the successful accomplishment of the project, and almost everybody tends to be negative in their predictions of its outcome. Nevertheless, the decision has been made, and in order to make it work we have to determine a number of priorities that can make the project successful.

Traffic

The major problem of today’s (and actually tomorrow’s) Moscow is traffic. Under a new project, Moscow turns into a city that is going to be overbuilt and overpopulated, as an expansion of the city will cause an immigration wave. According to statistics, an average speed in the center is approximately 18 km per hour. It is supposed that within such circumstances car owners can arrive at work by 9 a.m., enjoy some social activities in evening (cinema, theater, meeting with friends) and then return home before the middle of the night. Building of a huge business center 63 GREATER MOSCOW – THE KEYS TO SUCCESS nearby today’s Moscow borders will leave the majority of citizens no chance to spend a day as described, with a road system we have now. The city is going to die in traffic jams not only in peak hours, but 24 hours a day. Building of multi-level junctions in this situation seems useless because of a previous experience. So, a new city requires principally a new traffic system, a decentralized system. Realization of this project requires huge investments, plenty of time and work of the best engineers, but it is the only way to avoid a traffic collapse. As Moscow is still going to remain a city, the road system can comprise streets and highways. Streets are going to be built in the real estate development zones, and highways, consequently, apart. The most suitable form for the highway building is a matrix system. When the city’s highway map looks like a patchwork, there will be fewer difficulties in getting from one point to another. That will discharge MRHWs. On new highways, as well as on the existing, a number of traffic lights and crosswalks should be minimized, in order not paralyze traffic.

Street railways should be taken away, especially those above the main roads of the city.

It is necessary to reorganize public transport too. An expansion of metro will lead to jams on terminal stations. Let us imagine what is going to be like if all the south-west region enter one metro station in the morning? There will be no chance to take a train on the 4th station from the terminal. The new area of Moscow needs another kind of transport means, for example, buses. With a “patchwork system” of bus lines it would be easer to get from new Moscow to the old. Besides, what is more important, terminal bus stations should be situated within the circle of Moscow metropolitan in order to minimize a charge on it. As it closes at 1 p.m., there will be some difficulties for citizens of Moscow area in getting home late at night. To resolve this problem a number of night coaches are strongly required.

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Administrative division

As Moscow grows, a new administrative division is required. Nowadays, Moscow is divided in 10 districts (125 zones) with one pronounced center. An annexation of south-west district will slowly lead to decentralization. Theoretically, a new city center will be situated in the center of new transportation corridors, somewhere in Butovo zone. It will be used by government bodies and a new business center. Nevertheless, an old center will hardly lose its reputation as a city center and a prestigious place to live in. Thus, new Moscow will have two centers: geographical and historical one. In order to improve a level of government, a number of Moscow districts in an old Moscow should be at least duplicated. Moreover, a city can be represented by approximately 6-7 areas, divided based on a number of criteria, such as business activity, tourism and so on.

Movement of government bodies from a historical center to a new-built may, to some extent, help to revive an “Old Moscow” appearance. Offices, situated in old city, should move in a new business center, in order to vacate houses for exhibitions, museums, hotels and shops. Such an area should be of a special status, where it is not permitted to build tower buildings and expand roads. As a new center is designed as a place for Government and business offices, it should be granted by a special status too. For example, a residential development (except hotels) should be prohibited there. For the comfort of travelling around, it might be needed to build a new metro line leading to a center and a couple of highways from east and west accordingly. Others areas of Moscow can be treated as living areas and divided according to their remoteness from center and prestige.

The 1st area, with the most expensive accommodation and high level infrastructure, encircles the “Old Moscow”. 65 GREATER MOSCOW – THE KEYS TO SUCCESS

The 2nd, with lower prices on accommodation, in it turn, encircles the 1st.

The 3rd area encircles a new city center from north-east and touch the 2nd area on south-west.

The 4th area encircles the rest of an old Moscow.

The 5th and 6th areas lie westward of a new center.

Nowadays, real estate market prices of accommodation grow dramatically, but the cheapest prices can be established in 4th and 6th areas, where immigrants can afford themselves to rent an apartment. The biggest part of real estate development investments should be made in these territories. On the other hand, investments in building within 2nd and 3rd area should be abated. Otherwise, the quality of lodging and surrounding environment would not justify the high price per square metre.

Accommodation

It is not a secret that Moscow is a congested city. After an adding of a new territory, its population will rise to minimum of 30 millions within a short period of time. It will be no surprise if Moscow 2020 will look like Mexico City, with heavily- populated suburbs. Thus, the next discussion item is a resettlement. Thousands people are registered in a waiting list for an improvement of housing facilities, and, theoretically, building of a new lodging in an adjacent area might reduce a waiting period for securing free accommodation. Another problem concerns those who live in houses that do not satisfy technical conditions and which should be pulled down then renovated. The project prescribes families living in such conditions will be granted by a new lodging in a new part of the city. Nevertheless, it is argued whether it is justified to resettle families living in a center of Moscow, for example, in Butovo, or not. Of course, changing of a living area greatly influences the style of people’s lives. Life in another part of a city may require additional expenses on lodging, purchases,

66 GREATER MOSCOW – THE KEYS TO SUCCESS passage to work. In addition, it is also socially difficult to adapt to a new neighborhood, especially for children. The main reason for which government resettles such families in remote Moscow areas is a lack of available accommodation in center of Moscow. However, the development of real estate in a central district expands, and many apartments in new-built houses stay vacant, waiting for those who offer the highest price. Taking that into consideration, it is supposed that families living in houses with poor living conditions should be resettled within the borders of a district they live in, and, if it is not impossible for some reason, within the borders of a zone. As this problem is particularly acute, there is a need to create local authorities responsible for a resettlement question. As such houses are mostly concentrated in a central area of Moscow, their demolition should not bring new house building into the area. It is better to invest in infrastructure building and site landscaping.

Factories and plant

As Moscow is going to be a financial and investment center, it is absolutely impossible to leave factories and plants within the city. For the moment, on the territory of Moscow operates at least 1200 medium and large industrial factories. Some of them use up-to-day technologies’, but others were built in the days of the Soviet Union. Equipment is too worn-out to continue effective manufacturing and need to be repaired. Such factories consume a place in a useless way and equipment pollutes an environment. Transfer outside Moscow borders and renovation of these factories might provide Moscow region with additional work places and help to improve the appearance of the city.

Tourism

Though Moscow is a capital of Russian Federation and a cultural center of the country, it absolutely does not respond touristic needs. I believe that development of tourism in Moscow is another one point of concern. Big cities all over the world have 67 GREATER MOSCOW – THE KEYS TO SUCCESS high-level tourist infrastructure. As all sights in Moscow are situated in different parts of the city, and sometimes are difficult to travel to by public transport, it is needed to organize a system that can make these places reachable for foreign citizens. Many big cities in Europe and USA solve this problem by providing “City Bus Tour” services. Red-colored buses with a logo “citysightseeing” operate on an agreed continuous route along which there are key points of interest and attractions. Taking such a bus makes it possible to visit the most interesting places, hop off at any stop and then return to the same stop to continue a tour. As this guided system is quite recognized in the World, it will be no difficult for tourists to use it. Since the right traffic lane is going to be free of private transport, Moscow traffic is not going to be a real problem. Moreover, near to bus stops touristic information offices could be opened, so everyone could ask for a free map or information.

For the most convenience, the route can be represented by several lines: historical sights (museums, well-known buildings, government bodies), Orthodox Moscow, Villas of Moscow (Kuskovo, Kolomenskoe, Tsaritsino).

Another one important thing that could simplify a tourist’s life in travelling around Moscow is a translation of metro station names’ not only on a metropolitan map, but in every transfer station. Also, the metro would be better if equipped with ticket-issue automats.

As I mentioned before, old-built houses in center, which are occupied by government authorities, could be set free for hotels.

There are other priorities in building up a new Moscow. If we look at a map of the city and Moscow district, we will see concentration of vitally-important services, such as fire departments and hospitals, near highways. This is especially of concern in Moscow district that soon is going to be a part of Moscow. The number of services there are significantly less there than in Moscow. Moreover, almost all hospitals in 68 GREATER MOSCOW – THE KEYS TO SUCCESS south-west district are situated in Troitsk and Moskovskiy. Taking in account planned residential development in this area, it is strongly required to develop social infrastructure there. The same thing concerns fire departments as well.

In addition, it should be mentioned that Troitsk is considered to be the criminal capital of all Moscow district. So, the security in this area should be enhanced.

Finally, I want to put attention on ecological situation in Moscow. The level of air pollution is extremely high and tends to rise. Factories’ removal outside the city may ease the problem, but does not solve it. In order to improve the situation, the number of cars on Moscow roads should be reduced. Theoretically, it may be obtained by adopting Italy’s practice on reducing traffic in weekends. One day a week, only cars with even numbers are allowed to move around the city, another day – with odd numbers. Practically, it may be achieved by education of social and civil responsibility of Moscow citizens.

Thinking about “Big Moscow” seems that building of a new capital somewhere in Siberia will cost government less and give Moscow a chance to remain a city suitable for living. Such perspective becomes more up-to-date, taking in account the President’s speech about a necessity of regional development. A good few say it would be more efficient for a capital to be situated, like Fridricksen’s house, on the edge of a rock. One way or another, having a detailed strategic plan and identified priorities, it can be possible to succeed, even if such a thing is “Big Moscow” project.

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Nikita Khromov The Project “Great Moscow” has a chance of succeeding, in spite of many skeptical thoughts. Given the right implementation, the project can really solve issues of overcrowding, transport, environment, business, аnd a whole life of the city. Here are the key principles of project success:

1. An important objective is the decentralization of city. Success of such a separation can be seen in the example of many major cities with a polycentric conception such as London, Paris, Tokyo. Firstly, the Federal Government Departments transfer into the new territory, then should be relocation of the major big companies, and finally – a part of the townspeople should move to more environmentally friendly district. Thus, we obtain the city with two centers of business activity. So the first thing that comes to mind is that it could be no more transport paralysis, and traffic jams, and also strong decrease of underground overload. Several parts of the key roads should be expanded and renovated. Then, the traffic flow will be distributed in two ways. As a consequence, half the traffic jams.

On the Subway, the situation is similar. There is a plan for the construction of a new subway line in the "SKOLKOVO," and the extension line from the station, "SOUTH-WEST" and southern Butovo. Conclusion of the government of the current city center should have a strong impact on reducing congestion. In appearance, innocent overlapping roads for ministers, officials and foreign VIP guests, may cause many kilometers of traffic jams. If location of the Federal Government Departments will be near the Vnukovo airport, which is an airport of almost all the governmental flights, their links of activity will not cause such an impact on the traffic situation.

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One more affordable airport - Domodedovo will be available to citizens in the new territories. Also, there will be two railway stations and links of light rail built.

2. 500 hectares for residential construction is available. Although, according to Sergei Sobyanin, in new areas is planned to build accommodation for two million Muscovites, and one million of job places, actual numbers may be much higher. The reason is also, that they are not going to force the housing on the territory of the plan. They are supposed to build low-rise buildings, spacious developments, but makes intuitive sense that the actual constructed in the common multi-storey houses and cottage-towns. Far more luxurious cottages should have a great popularity: a good environmental situation. In addition, the building of minilevel middle-class houses is simply unprofitable for developers and investors. The area, which will expand for building is truly big, so there is all the chance to build a really functional modern city. Success is available through attracting more investment. The Budget is overloaded, and administrative resources are also needed a lot. The project needs really good management. You should acquire land, before you can build on it. A lot of land is owned and rented - and many owners will be tough, such as a State Duma deputy. Everything else is fine. They planned to build approximately up to 100 million square meters of real estate including 60 million square meters of living space and 40 million square meters of business buildings. So, this territory is also a new tax base for Moscow. It is obviously an advantage.

3. Manufacture clusters and ecology. Interpenetration of Moscow and Moscow region’s economics is enormous. The formation of clusters will be attractive both to investors and customers. This is a new experience for Moscow. Organization of the International Financial Centre is planned in the new territory by 2020. Also promised is that the new plants and other industrial facilities, their activity and location, will not be dangerous to the current environmental situation of the new Moscow. Industrial development can be successful while developing them with the 71 GREATER MOSCOW – THE KEYS TO SUCCESS training, innovation and living center. So in the concept of clusters will flourish. Once again, the optimism rests on the relevant plans and their implementation. In the words, everything looks good, but knowing the Russian reality, it is necessary to make a reservation. The success of such cluster conception depends on the timing and quality of execution.

The new territory is much more ecologically comfortable for, living, studying, working. If government did not allow factories or non-ecological friendly objects all over new territory, as they said, the new part of Moscow could become very popular. Also, factory sites are available near the borders with Kalugskaya Oblast. The key factor here is a starting of ecological-friendly manufactures, using new high technologies, and decrease the quantity of poisonous manufactures.

The problem of ecology and environmental protection is growing constantly each year in Moscow region. When the summer is hot, people just cannot breathe, literally. Harmful substances in some parts of the city are in the air at a level that is much higher than most acceptable standards. The new territory can obviously become an object of desire of many citizens. The new territory has much better environmental situation. Naturally, over time, it may be spoilt. But differences will be surely felt for about the next 30 years. Reducing the population can also contribute and normalize the environmental situation in “old Moscow”.

4. Student campuses in new territory. There is point in project which contains developing student campuses. Such system has been working for a long time in many western schools and universities. In the current situation with education in Russia, this system can greatly raise the level of education of all. The conception of studying, working, scientific activity and housing in one place, with correct implementation, may cause great synergistic effect. When the approach to education will improve, it will also change its quality. School leavers and their parents

72 GREATER MOSCOW – THE KEYS TO SUCCESS will perceive such a system with optimism, but at the moment, it is not available, unfortunately. The only reason for its unavailability is the needed areas and associated infrastructure. High-level education is gradually realized in another territory, also a territory of new Moscow, according to the project. Innovation center, Skolkovo is not yet a very successful project. It started a long time ago and it has a lot of opponents. A lot of budget money went there. Given the right implementation of the project, it is going to be successful. SKOLKOVO has good infrastructure and has huge potential. It is important here to give control to entities, which are really interested in the organization of the entire complex’s success, but not just in earning profits. Otherwise, the project cannot be a success.

5. In the historical center, the government is going to vacate the buildings of cultural significance. There is no need to have the administration located in the center, and it is obviously not necessary to use historical buildings of cultural values. An unexpected decision is to hand the White House to a private entity, and leave other interesting places. So, it is certainly good for tourists and citizens.

6. Deadlines and a quality of performance. Everyone knows how the Government likes to give promises, but does not execute them. Here, the key to success is a third party’s control. We need to oversee the project and expose strictly and loudly any failures and oversights.

Here is one more point. It is to attract Investors. There is practically no place in Moscow now, where you can develop any big project. We need more territory to secure more investment. That is why Greater Moscow can really help.

More places to work are needed. The population in Moscow is rising. It is mostly because of migration. You can be born in Moscow, live in Moscow, be educated in Moscow, but there is not a lot of good vacancies. Many jobs are occupied

73 GREATER MOSCOW – THE KEYS TO SUCCESS by people from Moscow region. So, we need to increase the number of entities to work for.

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Roman Morozov The key factor of development of any country, or city, is its infrastructure. Today, infrastructure is not the only problem; most of the world’s biggest megatropolices are overcrowded. Basically, the key factors for the city to grow today are rather problems that should be solved in order to allow the city to expand and develop organically. One of the world's greatest and most beautiful cities, Moscow is the capital of Russia and its biggest city. The first time “Moskva” was mentioned in chronicles was 1147 and since then it has played a vital role in Russian history. Currently, Moscow is not only the political centre but, as well, the country's leading city in population and industrial output. Together with its role that it plays in cultural, scientific, and educational development of the Russian Federation, it is of outmost importance that city further development is organic and planned carefully.

1) The number one key issue for success is the problem of fighting with the fact that Moscow is overcrowded today. As were many other cities, it was built long before numbers of people and vehicles were even imagined to be found in one city. Thus, it has never been planned to make life comfortable for around 20 mln people (day time figure when people from Moscow suburban and region come to work ) and more then 4 mln cars (official figure of registered cars in Moscow). In fact, Greater Moscow was a general plan of Moscow developed in 1921–1925 by S. Shestakov. The plan was approved in 1925 by Mossovet. Taking the above into consideration, the land usage and transportation planning to improve that already built, should be the main focus of the Moscow development strategy. It is of utmost importance, not only

75 GREATER MOSCOW – THE KEYS TO SUCCESS to enlarge, rebuild and rearrange but at the same time, to leave the historical and cultural look of Moscow as inheritance for future generations.

One of the above-mentioned problems in the city is the transport crises that happen at the rush hours and before holidays. Namely, it is practically impossible to cross the city via on land transport (including trams) in 8:30 – 10:00 am and 5:00-8:00 pm intervals. This is true for ambulances and firefighters as well.

A lot has been recently done to make the city less crowded, but still there are areas that need immediate improvement:

 More new underground metro stations should be built in order to allow people from longer distances to access Moscow without using on-land transportation.  Better roads, highways and up-to-date traffic-controlling devices are to be build and implemented.  The access of city centre by on land transport should be severely reduced.  Most of the government and administrative organizations, together with some big business, should be shifted to the Moscow vicinities.  Work hours in different businesses should start and end at different times.  Work places and infrastructure development of Moscow regions would significantly decrease the amount of people willing to go to Moscow for a better job or service.  Any other solutions that would decrease the amounts of people being present in the city centre at the same time.

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2) The second key success factor is closely related to the first. To my mind, Moscow is heavily polluted and dumped. It is a great pity that such a beautiful city has such unfavorable conditions to live in. Most of the newest business centers located in the heart of Moscow do not have windows that can be opened. Instead, the ventilation system with dozens of air filters provides the fresh air automatically. On one hand that is due to the fact that they are up-to-date and that on higher floors it might be dangerous, but there is definitely another reason. The smog from the traffic jams during rush-hours is enormous.

Some 10 years ago, people used to leave babies sleeping in beds on the balcony in the centre. Today, most of the families I know spend more than an hour on road to take their children out for a walk, or nap. There are definitely not enough parks and recreation zones in the middle of the city.

Unfortunately, together with the problem mentioned, comes the fact that a lot of citizens are not careful and actually pollute the city even more. Littering and garbage dumping in inappropriate places is a great problem in Moscow today. Unfortunately, a lot of people do not understand that glass and plastics thrown in the forests would be buried there for many centuries. Picnics and camping sights in Moscow premises are left looking like a garbage dump sights. People often wash cars in the rivers and pour chemicals on land and water.

This certainly is a great problem and action is being taken by the government, but it is not severe enough. Penalties and fines are still inappropriate in comparison to the damage done. Legislation lacks solid laws providing ecological security in the city. It is vital to stop the ecological destruction of the city as soon as possible.

3) The 3rd key factor for Moscow development and growth is one that can be found in most of Russian cities. In fact, this problem is common for other countries as

77 GREATER MOSCOW – THE KEYS TO SUCCESS well. Illegal immigrants are influencing a number of things that prevent city from improving.

First of all it is the crime factor-nobody actually knows how many people there are actually in Moscow that have no legal right to be here. In fact, illegal immigration to Russia has become one of the most dramatic social, economical, and political problems of the country. Undocumented immigrants often become involved in the shadow economy and some with illegal business. They are often subjects of criminal economic activity (including trade in narcotics and weapons), and in the illegal trafficking of workers to Western Europe, USA, and Canada. In large cities such as Moscow, illegal aliens formed ethnic communities and some are suspected of links with local criminal gangs.

The other important issue is about the work places these illegal immigrants occupy. Naturally, they are ready to work for less amounts of money with no medical insurance and employers do not pay taxes upon their work. If we look at today’s construction sights, or exploitation services, such as cleaning or maintaining road organizations, more than half people working in them would be under temporarily working permits, or without any. All this results in those people living in Russian Federation lawfully are not able to access a great number of jobs, or have to work under same awful salary and no-insurance conditions.

Legislation improvement related to immigration law and working permits should be considered together with actions of Moscow’s supervising authorities. The situation is serious and needs to be changed.

4) The fourth and one of the most important factors for city success is to continue to develop Moscow’s reputation as leading financial centre. Moscow has clearly already become the country’s major financial centre, having significantly surpassed other cities in terms of the development of financial infrastructure and 78 GREATER MOSCOW – THE KEYS TO SUCCESS concentration of financial resources. The majority of the Russian leading financial institutions such as banks, insurance companies, pension funds, stock exchanges, etc. are located in Moscow.

A great deal of large foreign companies that work in different regional markets also have their headquarters in Moscow. Even today, the Russian capital is the world’s third largest city in terms of its city budget. All of this makes Moscow’s further integration into the global financial system an absolute necessity, which will most likely result in the strengthening of its international position later on.

Meanwhile, the benefits of Moscow’s positioning as an international financial center means the attraction of new investments to the city together with an increase in the taxes collected. It will as well provide a greater number of jobs for professionals, which is especially important for Moscow, as the city has a huge number of universities and other academic institutions which prepare young and prosperous specialists. Overall, it will help solving problems mentioned before in the essay: an increase in wages of the city’s employees, as well as an improvement in the quality of life of the population and a rise in city infrastructure development.

Based on the above, and taking into consideration the federal government’s measures aimed at providing significant support for the Russian credit and financial system against the possibility of repeating financial crisis, there are numerous reasons to believe that by 2020 Moscow will become one of the top financial centers in the world, and in the next 10 years it will be capable of becoming a leader on the regional financial market of the CIS countries, the Baltic states and Eastern Europe.

Overall, Moscow’s potential for further development is immense. A lot has been already done and the city looks very different from what it was some 5-7 years

79 GREATER MOSCOW – THE KEYS TO SUCCESS ago. Of course, the measures already taken are just the beginning of a long road to Russian Federation Capital’s growth and prosperity. Among other areas not yet mentioned, there are those that demand very much attention and immediate responses.

Healthcare services is one of the areas that needs improvement and governance from local authorities. There are many hospitals and medical facilities that need new equipment and repairs. The salaries of medical personnel should be a subject to significant increase. More cooperation work from insuring companies and healthcare institutions should be done to provide Moscow citizens reliable and high quality services in related to healthcare problems.

Another issue closely that is very alike to the healthcare is the education. The field for development is the same. Salaries of teachers are too low, many schools and universities lack repair works and up-to-date equipment and educational materials.

Together with healthcare and education comes the problem of elderly people, minors and disabled people. Both categories of Moscow citizens need to my mind more protection supervision and attention from local authorities. This is a matter of comfortable life for those who can not care for themselves. It is vital for all of us to know that, no matter what, there will be a strong shoulder to rely on. This is very serious problem that needs immediate attention together with the others mentioned in the essay.

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Stanislav Ivnitskiy Growth of Moscow will bring feasible benefits to the society and Russia’s economy. However, it is a challenging project for all the stakeholders involved, especially the municipal decision-making parties. Growth of any city entails an interaction of a whole set of inter-dependable factors, which is generally described by discipline of contemporary urban growth management. This discipline is geographically, politically, and historically constituted. Based on that, the complexity of planning procedures for growth of Moscow is easily explained. Firstly, this city has enormous historical heritage – because it is a historical and cultural centre of Russian Federation. Secondly, by its capital status and size – Moscow is one of the largest cities in the world, with a population of over 10 million people. Therefore, all of the factors contribute to the difficult nature of the planning process. In this regard, the decision makers should pay close attention to the critical success factors, which are described below in this essay.

1. Sustainable and accountable long-term planning procedures with a time horizon up to 20 years. One of the most importance factors that contribute to effective elaboration of administrative planning procedures is the evaluation of social and economic efficiency. However, the current functional and procedural constitution of administrative approaches that are currently employed in Russia has major deficiencies. More specifically, the category of a ‘big city’ (as an object of administrative decision making system) is greatly restricted by the managerial approaches utilized, which does not take into account the major information inputs,

81 GREATER MOSCOW – THE KEYS TO SUCCESS such as city’s real problems. Current methods and approaches lack the organization and are generally not systematic and far from being flexible. The processes, the socio- cultural and economical pulse of Moscow, which are generally inter-related, are not used as factors for modeling and decision making. Such deficiency leads to poorer, least effective and barely accountable planning.

Such a weak planning system has very understandable historical reasons, basically being a heritage of Soviet mindset. Municipal decision makers need to embrace a whole new paradigm of planning, bearing in mind that changes in economic sphere causes implications on such generally difficult-to-quantify factors as quality of life and health of Muscovites. Without breaking the Soviet planning mindset (as well its “rusty” procedural and functional constitution), it will be hardly possible to plan efficiently and effectively; because the old system is naturally incapable of embracing all the critical factors (especially taking into the account the modern pace of economic development). Such deficiencies are to be overcome with the injection of new knowledge and foreign experience (especially, the developments in urban growth management discipline, which was vastly developed by modern academic writers and actual practitioners).

A revitalized planning approach is the corner-stone condition to the success of the project: utilizing the renewed approach will allow embracing the complexity of modern economic environment and contributing greatly to the efficient realization of the ambitious project.

2. Continue efficient development of transport infrastructure Almost all roads connecting Moscow to other Russian cities and to other countries have been renovated in recent years. However, the highways and road infrastructure is still poor in Russia, hampering travel by car and coach. Road safety is also an issue, while the number of motel outlets is very limited.

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However, recently there have been major developments in the transport infrastructure system. To solve the traffic problems in Moscow, the Moscow City Government developed a top-priority action plan for solving the problems of the Moscow transportation hub and published it on its official website on November 8. This plan consists of seven sections, which include development of the “transportation frame” — construction of roads, bridges and car parks; traffic management system; integration of the transport infrastructure with other city systems, crowded places; traffic control system; management of the transport system development; public transport development and strategic planning.

This action plan contains measures that are devoted to decrease urban traffic load and utilize the city more efficiently. The measures include stipulated construction of main roads for arrangement of contra-flow traffic in the city, liquidation of ground crosswalks on multilane routes, design of new (multilevel) high-speed main roads to withdraw transit traffic from the current street and road network. The action plan also seeks to develop multilevel car parks in residential areas and construction of park and ride lots around subway terminals and junction stations of the ground public transport, including outside the city limits. It is suggested to expand the federal roads in the territory of the Moscow region to 4 lanes in each direction.

Therefore, it is easy to conclude the current initiative of Moscow authorities shows them at least making attempts to efficient planning. However, as was described in paragraph one of this essay, it is absolutely necessary not to fall into the old systemic problems: plans need to be executed efficiently, which is still a question of efficiency of the planning system. Moreover, given the scale of the project, it is absolutely necessary to keep planning in innovative ways and put maximum effort on efficient execution.

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3. Maintain current ecological initiatives and make sure that they are scalable enough for such ambitious growth project Moscow is one the most polluted cities in the world – it is a fact which, luckily, is acknowledged by city authorities. Large numbers of vehicles lead to air pollution with exhaust fumes. Notable, apart from mere theoretical acknowledgement, some actionable opportunities are already utilized by municipal decision makers. The Moscow Government trying to solve this issue using an integrated approach. For instance, the recent initiative to launch city taxis comprised of ecologically efficient cars certainly deserves attention. The delegation members were most interested in a design with a liquefied petroleum gas engine. This vehicle can run for 1,300 km on a single tank of fuel, the environmental safety conforms to EURO-5 standard.

Another notable development is the product of collaboration of Moscow authorities with foreign car producers. The electric version of the Fluence sedan can be used as a Moscow taxi. The vehicle is currently undergoing all necessary certifications. The mass production of this car is scheduled to begin in mid—2011.

In order to make the air in the city cleaner and provide a solution for the transport issue, it is planned to construct over 90 km of new tram tracks in Moscow in coming years. This is laid down in the draft decree “On Moscow tram traffic development strategy” which was considered in August 2010. Design works on construction of new lines are proposed to be performed providing for engineering and technical solutions for intersections of tram lines with traffic arteries solely with the use of artificial structures like bridges, crossovers and tunnels. It is additionally planned to use low floor trams and to implement measures to reduce the noise level, apply recuperation.

Such initiatives are definitely new and unprecedented for Moscow authorities, in terms of efficiency. However, such inferences definitely need to be made with a rational caution. Firstly, still the point of successful execution is critical for Russian

84 GREATER MOSCOW – THE KEYS TO SUCCESS planning system. Secondly, the bright initiatives that are held currently by Moscow authorities are rather short-term and are not close to the scale of the project in question. Therefore, it needs to be highly emphasized that all the ecological developments are scalable and accountable enough in order to cope with the demands of “Greater Moscow” project.

4. Ensure provision security for the increased demand of greater city Provision security control is of very high importance for the city. Moscow has no farmlands, which is why the city purchases agricultural products from the Russian regions and foreign companies. At the same time, Moscow has everything necessary for processing and warehousing these products, i.e. food and food processing enterprises, along with warehouses. At the moment, Moscow possesses a quality control system that monitors food products at various stages.

According to the results of checks, some products bought in Moscow are sometimes low quality, outdated, have no documents to prove their quality and safety, or have insufficient or false information that may mislead consumers. Food adulteration has become very wide-spread.

In dairy production milk fat is commonly replaced with vegetable oil, and when it comes to condensed milk with sugar, in some cases 70 to 100% of what is supposed to be milk fat is actually vegetable oil. Most drinking milk and milk products are produced from reconstituted milk. In the majority of cases, milk normalization is all about using milk powder and condensed milk with sugar, or even butter.

Such problems are explained by systemic deficiencies of control and administrative procedures. Given the fact that the project of city growth entails its geographical enlargement almost up to 2 times, making sure that regulations and their successive execution in the field of food safety control are efficient enough to cover

85 GREATER MOSCOW – THE KEYS TO SUCCESS the need of city almost two times bigger is of cornerstone importance for the realization of the project.

5. Financial infrastructure development More than 50% of the banks registered in Russia are based in Moscow, while all the major companies are based, or have branches, in the city. On the one hand, the figure is enormous; however, there is the other side. The ambitious initiatives to build a financial centre in Moscow need to be backed up with certain strategic moves. Such moves include both development of market infrastructure and developing the corresponding legal procedures.

6. Stimulate MICE and business initiatives Moscow is one of the most important business centres in the world. This city annually attracts about two million business travelers. The number of business centres, conference halls and exhibition areas is constantly growing in Moscow. The city world-renowned exhibition centres, including Manezh and VDNH, own state-of-the- art facilities which make these centres suitable for any type of international business events. Since the beginning of 2000s, Moscow City was created. This business district consists of highly-modern buildings where world leading companies have their representative offices. However, business tourism suffered seriously in 2009, when flows reduced by over 12%. Given the fact that Moscow will grow in size, it will need an injection of investment, therefore the factor is important for growth of the city.

7. Development of touristic infrastructure and simplification of visa procedures Historical and cultural tourism are expected to record a strong growth worldwide during the next 20 years and this will significantly benefit inbound tourism to Moscow. In order to sustain cultural tourism development within the context of city growth, Moscow needs to be promoted through special events and campaigns which will be directed towards an increase of tourism flow.

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8. Preservation of city’s cultural heritage Moscow is one of the most important cultural centres in Europe. Many tourists arrive to the city to attend performances in its theatres, as Moscow is also the theatrical capital of Russia. Its world-renowned theatres include the Bolshoi Theatre, Malyi Theatre, Chekhov’s MHT, Sovremennik and Lenkom.Moscow has about 180 museums, including historical, military and art museums and galleries. Cinema museums show old and rare films. All these pieces of cultural heritage needs to be preserved carefully, especially given that the load on all the “facilities” of culture will increase vastly with the onset of the project of Moscow development.

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SECTION 2. RUSSIA BORN STUDUENTS

Alexey Matveev Introduction The goal of this work is to analyze the expansion of Moscow, possible problems and the keys to success. President Dmitry Medvedev decided earlier this year to expand Moscow at the expense of Moscow Region's territories to create a capital federal district and to transfer a significant part of government bodies beyond the existing boundaries of the city. According to regulations of Moscow's authorities, the transitional period of annexing definite municipal territories must be no less than three years and no more than five years. Expanding the boundaries of the city happens in the western, southwestern and southern areas (pic.1).

Pic.1. Moscow's new territory.

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The choice of this area for the expansion of Moscow due to the following reasons: 1. optimal location to perform functions of the capital Moscow on the totality of urban development, transportation, and environmental factors; 2. relatively-weak urbanization of this sector of the Moscow region. At present the population is 250 thousand people, and the buildings comprise only 12 million square feet. m; 3. historically, in the west and southwest, objects are placed to facilitate the implementation of the functions of the capital Moscow, Russian Federation (including the government’s airport).

Most important keys to success in expansion of Moscow Development of transport complex of the Moscow region Moscow traffic jams have become as much a dubious feature of the Moscow as Lenin in his mausoleum. Moscow has been ranked eighth on the list of cities with worst traffic jams. At the same time, experts believe that traffic jams in Moscow are the longest in terms of duration. An average jam in Moscow lasts for 2.5 hours. That is why I believe that the most important task in order to success in the expansion of Moscow is developing of transport complex of Moscow. The program of development of transport complex of the Moscow region will be implemented by a smooth transition from the radial-ring structure orthogonal to transport links in the metropolitan area, providing offloading historical center of Moscow on transit traffic. This means: 1. In the field of road and bridge construction -

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 formation within the existing boundaries of the city of Moscow: three chord lines and reconstruction of the Moscow Ring Road to minimize the transit road traffic through the city;

 reconstruction of the radial directions at the head of the Moscow Ring Road areas;

 Reconstruction of the transverse directions in the area of 15-20 km from Moscow. 2. In the field of high-speed off-street transportation -

 construction of a new metro line to Skolkovo;

 priority development of rail transport in the western, southwestern and southern areas, in accordance with the general scheme of the Moscow railway junction;

 construction of light rail lines, mainly in the east-west direction to ensure convenient transport links. 3. Creating a system of transport hubs, which provide transfer of passengers from the commuter system, urban transport system in urban passenger transport. According to the supervisor of Institute of Transport for the creation and development of road transport infrastructure, the Federal District will take about seven years, the design work will take 1.5-2 years, leaving about five years required for construction work. So, there is no reason to expect a rapid improvement of traffic situation in Moscow, but solving this problem is the first key to success in expansion of Moscow.

Moving government agencies outside of the city and creating new administrative center. Moving government agencies outside of the Moscow may solve the problem of the perennial traffic jams in the city center.

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Two-thirds of jobs in the city are concentrated in the center and, almost every day, this leads to traffic jams on Moscow roads. Movement of large number of government agencies from the center of Moscow to its suburbs will be a positive factor for city development. It can help in developing an international financial center in Moscow. The plan foresees much of the heart of Moscow – its government offices and big businesses – moving to the new neighborhood, forever changing the spirit of the city's historic center. Within the new borders of Moscow, there will be the area of compact location of government offices, which may attract headquarters of commercial companies to move there. This is the case not only for us: because of compact location of government offices, Washington D.C. is third in the U.S. in the number of headquarters of commercial companies. We can recall the Astana, capital of Kazakhstan, as relatively recent example of creation both the administrative and financial centers.

Decrease in realty prices High price of real estate is a major problem in Moscow. Expanding the borders of Moscow will change both the structure of the real estate market and the prices. Some experts believe that realty prices in the Moscow region towns, which will be attached to the Moscow, is going to increase. This is mostly because of the "Moscow residence permit" which their residents will have. «Moscow residence permit» is still very important for many people and this affects market pricing. Buyers will pay more for infrastructure and «capital status». In long-term, expansion of Moscow will provide explosive development of associated areas and may remove the factor of supply shortage, which may shake the whole housing market and decrease the realty price.

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However, the near-term outlook is somewhat different, according to analysts, the average price of housing in Moscow will increase by 15-25% by the end of 2012. I believe that in order to success in the expansion of Moscow, government should solve the realty price problem and make housing more affordable. In this case with the development of the transport system it will be easier to travel to the city center from associated areas of lower realty prices and it can help with affordable housing.

Effective project financing Nothing can be done without financing. According to independent estimates, creation of«Greater Moscow» will cost about 14-15 trillion rubles over 20 years. For comparison, it is 5 times more than the budget of the Sochi Olympics, 10 times - an annual Moscow budget and 40 times - the entire annual budget of the Moscow region. In order to success in expansion of Moscow, it is necessary to control the expenditure of allocated budgetary funds.

Conclusion: No matter what, the current expansion of Moscow is a promising project. The rapid development of transport and engineering infrastructure in the new territory of Moscow will create a polycentric urban development environment that meets modern standards of quality of life. Placement of the new territory government bodies, objects, an international financial center, university centers, healthcare facilities and sports, new housing will remove excess concentration of population and jobs in the historical center of Moscow. We will be given a brand new town planning strategy for the entire metropolitan area of Moscow, providing a harmonious development and creation of comfortable living conditions for nearly 15 million people in Russia.

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References: 1. http://www.finance-ol.com/2011/07/moscow-attempted-to-use-expanded- xinjiang-means-treatment-of-the-big-city-disease/ 2. http://themoscownews.com/local/20110819/188940900.html 3. http://english.ruvr.ru/radio_broadcast/2249159/55159736.html 4. http://rt.com/politics/press/rossijskaya-gazeta/moscow-government-expansion- territory/en/ 5. http://www.military-quotes.com/forum/moscow-georgraphic-expansion- t91139.html 6. http://en.rian.ru/russia/20110721/165310126.html 7. http://www.itar-tass.com/c154/187205.html 8. https://andrewlainton.wordpress.com/tag/moscow-expansion/ 9. http://mysouth.su/2011/07/the-expansion-of-moscow-39-s-review-will-make-a- quot-transport-master-plan-quot/ 10. http://news.bbc.co.uk/2/hi/europe/6722465.stm 11. http://magazine.rbc.ru/2011/08/29/main/562949981359510.shtml 12. http://www.rb.ru/topstory/business/2011/06/20/163159.html

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Anton Savelev

The project of enlargement of Moscow territories dated 2011 (so-called New Moscow) — is the most largest and ambitious projects of administratively territorial division of the city for the whole history. It implies expansion of Moscow in 2,5 times by the means of Moscow region territories (please see the graph below).

Graph 1. New boundaries of Moscow

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The main purpose of the project is to eliminate the monocentric structure of Moscow agglomeration and to streamline town planning by giving the new territories strongly-pronounced governmental administrative specialization. In the media, this project presented on July 11 2011 received the name of New Moscow. The response of population differed: 41% of respondents supported the project, 41% against and 18% found difficulty in replyingi. The purpose of this thesis is to discuss the most important keys to success of the project. Factor №1: Attraction of the population to the new territories Moscow is too overcrowded. This fact is recognized by both government and population. There are almost 11 thousand people living on 1 square kilometer now. To compare this indicator in Paris, London and New York there are less than 7 thousand people and less than 4 thousand in Berlin on 1 square kilometer. Therefore, it became almost impossible to continue construction of new houses on the current territories of Moscow. However, the demand for accommodation is enormous. It is reasonable to say that every second family needs improvement of living conditions. Fortunately, according to the estimates, the new territories will allow to build more than 60 million square meters of accommodation. The purposes of reallocation of the population are the lessening of social tension, creation of the labor supply for the businesses which could probably move there, reduction of the load on the current infrastructure. Also, it is worth to mention the spreading of “utilization points”. By this term it is understood that the population will be spread through the larger territory which leads to the reduction of consumption of energy, products, etc. from the same distribution points. Also, there is a logical suggestion to move all the authorities to the new region. Thus, there would be definitely a demand for housing by all the officials who agree to

95 GREATER MOSCOW – THE KEYS TO SUCCESS move. This action will also reduce the trip distance to their working places, which accordingly will remove the problem of “cars with flashers”. Now this is the real problem for Moscow, as a lot of officials travel by car to the working places, which are in the center of Moscow, which creates additional traffic jams and causes dissatisfaction of the population. Factor №2: Creation of infrastructure For the implementation of the first factor, it is essential to create the infrastructure for the people. Infrastructure comprises basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. It can be generally defined as the set of interconnected structural elements that provide framework supporting an entire structure of development. The term typically refers to the technical structures that support a society, such as roads, water supply, sewers, electrical grids, telecommunications, and so forth, and can be defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions." Let us start from the transportation problem. Nowadays, there is lack of roads in the newly-established region. Traffic jams are a significant problem of Moscow and, without construction of cleverly-designed net of roads, this problem will hardly be solved. By the rule of thumb, all such problems are solved beyond the boundaries of the city, therefore newly-added territories will be of a great help. Also, it is necessary to lengthen current underground lines. It is obvious that not everybody owns the car; therefore there will be a demand for fast and comfortable way to get to the center of the city, which in our case is the underground. The next factor is social utilities. We can hardly find anyone who will agree to move to the place where there is no school, kindergartens, shops, etc. As this territory was under-populated, there is almost no infrastructure there. Special attention should

96 GREATER MOSCOW – THE KEYS TO SUCCESS be paid to sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations and cultural infrastructure, such as concert halls, museums, libraries, theatres, studios, and specialized training facilities. Factor №3: Attraction of private capital It is very logical that it would be impossible to perform all necessary jobs only by the means of the budget. Therefore, this project would require the aid of private capital in order to accomplish its tasks that are ahead. Though what differentiates private capital from national capital and what makes its requirements necessary in the attempt to industrialize? What conditions make each capital attractive and what can be done in order to make the flow of each capital commence into this region? The answer is very clear, private investors are first of all interested in the economic benefits; apart from that, it should be as fast as possible. The problem is worsened by the world instability of the financial markets. No one can be sure that the world crisis is over. Therefore, we can observe the outflow of the investments from almost all the countries. Nowadays, one of the most key factors for investors is stability. The government should try to establish a long-term policy of development of the region and stick to it, so that there would be no surprises for the investors. Such examples as change of territories for gambling after two years does not led to investors’ confidence. The long-term plans and strategies must be based on a variety of concepts taking into account the development of Moscow/Moscow Federal District as a city/region with its specific interests and problems, as the capital of Russia, as the center of agglomeration and interregional interactions, and as a world city, as well as available resources – financial, human, technological, intellectual etc. Furthermore, additional benefits for the investors such as tax benefits should be considered.

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Thus it is necessary to conduct the thorough due diligence of the project of development of Moscow and to evaluate possible ways of attraction of private investors. Factor №4: Creation of working places Creation of the working places on the new territories is one of the key factors. It will help people not to spend hours in the traffic jams and will reduce the loading of roads. However, it costs enormous money in Russia nowadays to create one working place in the modern production facility. It is not difficult to count that, to create 2 million working places on the new territory, a huge amount of money is necessary. Neither the government nor private investors have such sums. Therefore, it is necessary to talk about the attraction of foreign capital. The government should significantly change the investment climate, to decrease the tax burden on the production and move it to tax on the mineral extraction and on specific consumption taxes, such as excise duties on alcohol, tobacco and tax on property. It is necessary to wholly change the policy concerning tariffs of natural monopolies and ease the access to their infrastructure, to launch the programs of development of industrial parks. The Labor code should be changed. Of course we are not talking about radical changes such as extension of working week up to 60 hours, but the problem is that the labor code is designed for large companies, but not for SMEs. Furthermore, in the conditions of modernization and innovation it is necessary to increase the popularity of express contracts. Thus, such strata as students, freelancers, etc. will be able to work officially and to be more protected under current legislation.

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Factor №5:Settlement of legal aspects One of the most important problems during the transition period will be legal. While changing the administrative status of the territories there will be a moment of transmission of working process, reissue of documents. Despite of inconvenience to people, there could be a period of “anarchy”. Namely, we are talking about transfer of schools, kindergartens, hospitals from the budget of Moscow region to the budget of Moscow. This is only small part of the cake. Therefore, it is necessary to consider all the legal aspects of the territory enlargement and to take into consideration the rights of the stakeholders. Factor №6: Consider opinions of people and owners of property Here, we are talking about potential conflicts with owners of land, demolition of buildings. It is necessary to understand that purchase of all the land as per plan of construction is impossible at current market prices. We can easily remember recent occasion in Sochi (Imeretinskaya valley), where people were protecting their property, but did not succeed. Simple, open and efficient communication and reporting mechanisms throughout ministries, and upwards to centre of government institutions is fundamental to meeting public delivery targets. Moscow authorities cannot afford to neglect communications. Regular meetings with the population should be organized (“round tables”),where prospects of expansion will be discussed – step by step. Factor №7: Utilization of unoccupied areas As the result of movement of government and of businesses to the new territories there will appear free space in Moscow buildings. The question is how the will be utilized?

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Fromthelogicalpointofviewtheyshouldbeusedforconstructionofaccommodationa ndhotels as the demand for them is fulfilled only for 30% now. It is necessary to make this process simple and understandable and to avoid corruption element. Factor №8: Environmental issues Environmental issues are of a big importance in this case. The planned increase in territories might probably lead to water quality deterioration, possible extinction of some rare species, increase of wastes and creation of new dumps, etc. The task of the authorities is to ensure that the ecological situation in the areas to be included in the Moscow Federal District is not under threat of increased pollution. You can hardly find anyone who will agree to live in the polluted area. Manufacturers that will come to the new area should be obliged to keep up with the latest trends and needs in the city due to their significant ecological impact. Upon the opinion of the government exactly in creation of such megacity is the key to prosperity of Moscow. The experience of many cities such as Paris, London, etc. proves it. Now is the right time for realization of the project, however, all above mentioned aspects should be thoroughly considered.

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Elena Minchenko In July 2011, Moscow Mayor S. Sobyanin and Governor of the Moscow Region B. Gromov described plans to the President D. Medvedev about expanding capital’s territory. To Moscow will be added a 150 percent increase in size from the regional territory. New Moscow may also include Skolkovo with its innovation center and part of the territory of Rublyovo- Arkhangelskoy direction. The idea is to move all official bodies from the center and make re-distribution of work places. Further, the Financial Center would be also located here. It will solve the problems of traffic jams and housing question. The idea is great but requires a lot of time, good planning process, and lot of financing and constant control. The main problems are connected with legal procedures, new infrastructure, new traffics system, use of former buildings, etc. In this paper author would try to find the solutions for the abovementioned points. 1. Citizenship Status change and Land property rights transition A lot of people should change their citizenship (from Moscow Region to Moscow City) and therefore all documents should be renewed. Responsible for this process should be assigned “in situ”. For example, local hospitals in the new Moscow territory should change all medical cards of linked people. Local passport offices/rooms should ensure changing of the documents. In order to make this faster, temporary work places could be created. For example, students could participate. The experience of the general census of the population could be implemented: a lot of students participated for the fee.

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The next point connected is the property land rights transition. The most important point: the land in Moscow is not in private ownership as it is in region. Therefore, all owners should sign long-term rental contracts with Government. It was announced that the choice of territory is based on the fact that only 50 M ha out of new Moscow territory of 144 M ha is in private ownership. The density of population is lower in Moscow region. The rest is in ownership of presidential structures or businessmen close to President. For example, here the house of the first president is located. Moreover, the future city of Olympic Glory is planned to be built here. Certainly, plans could be easier changed. All other owners are more than interested to have land in the city of Moscow than in region. Coming back to the private owners, Moscow’s Mayor promised: people would be proposed either money for the land based on the current market prices, or the equivalent land in another location. The experience of Olympic Games in Sochi would be implemented. Summing up, in my opinion, it is necessary to make the plan and preparation before start: to provide enough human sources, educate them. That will help to changes to the legal status for people quick and smoothly. The procedure should be done “in-situ”. In order to make transition of land rights, it is necessary to make this transparent: offer to the private sector enough money, or the real equivalent for their territory.

2. Harmonization of traffic circulation Traffic jams are one of the biggest problems of all metropolises. We are not owners of time: we have no idea how long we would spend in the traffic jams, how long we would look for a parking place, whether we would be on time, or several hours before\after the appointed time.

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Speaking about center, Moscow’s Mayor has already proposed several alternative platforms for parking, such as boats. This could be regarded as a very good solution. More radical is to limit, or ban, using cars in the center. That can be made voluntary. Unfortunately, citizens in Moscow are not ready now. Also, driving can be banned, or limited. The tariff payments could be introduced. Here, that is more about cultural upbringing: people should understand that cars have a rigid in flexibility and may mix up all plans. Considering the new territory, here it is necessary to start from the purpose of territories. The idea is to make municipal center. Administrations, Ministries, Duma and other governmental bodies would be here. Therefore, all employees should also live nor far away. Unfortunately, it is easy to say, hard to do. The panacea is to make this territory attractive for officials. That is the question of developing infrastructure. It would be discussed below. The fresh idea to decrease traffic jams is introduction of corporate buses- upgraded version of school buses. They are big and roomy, equipped with air conditioners, Wi-Fi, coffee machines, comfortable chairs. In the early morning, such buses circulate in the area, picking up ministers, officials etc. Probably, today such an idea looks unreal, but advantages are obvious. Traffic would be easier; officials would have an opportunity either to communicate in informal style with colleagues, or to read newspapers, documents, to prepare for hard work day. How to implement this idea? The answer is simple: to start from the “tops”. Top-level officials should show for the rest new style: environmental-friendly. Speaking about transport system, here the Moscow Mayor proposed to change radial-circular to the orthogonal/rectangular. Such system is used in New-York where drivers have chance to go round jams using the parallel streets. Certainly, this is applicable for Moscow and would be helpful but not eliminate the problem.

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In my opinion, the solution is to make available and comfortable alternative kinds of transport. Ramified autobus system is the solution. Buses should be smaller than in Moscow nowadays. That will give them much more flexibility. In addition, they should have own road lane. Also, light metros could be built. This kind of transport is cheaper and faster to construct. Train lines should be certainly constructed. They should be the fastest way connecting center of Moscow with new territory. The trains should be comfortable, clean; passengers should be happy to use such transport. In my opinion, in order to solve the problem of traffic jams, a number of alternative kinds of transport should be proposed: trains, light metros, buses. They should be comfortable, not expensive, flexible, clean, always on-time, and have own road lanes (that is applicable for buses). As far as to auto roads concerned, the rectangular system should be constructed in order to make possible for drivers to use parallel road and go round the jams. At the same time, the practice of corporate buses could be introduced. The key success factor here is support of the “top”. They should start; the rest officials would have no choice than to follow. 3. Infrastructure development Speaking about new territory, there is about 144 M ha. 105 M ha is the territory for construction, or re-construction. Of this, 60 M ha is for housing; the rest is for business, social, municipal purposes. In this article, each type will be regarded separately. Construction of new houses should attract both middle- and upper-class families. Luxury apartments are necessary in order to make this area attractive for officials who would work in the administrative positions. They should be the equivalent of apartments in the center of capital. They should be spacious, in an ecologically clean area, with good parking zones and developed infrastructure such as

104 GREATER MOSCOW – THE KEYS TO SUCCESS shops, schools, sport clubs, cinemas, servicing points. Now, closed territories of apartments and linked infrastructure are very popular. Also, middle-class housing should be constructed here. It would be good to orient it to the young families; for people who want to work, who are ready to live in the clean area and to keep it clean. Certainly, infrastructure should orient to their income. Speaking about municipal, business, academic buildings, in my opinion they should be concentrated away from living zones. I see it as separate zones: State zone where all ministers, Duma, Administrations are situated; Academic zone with research centers, libraries etc. I see it as small towns in the big area. That will help people to fully integrate and go deep into the work process. Summing up the question about infrastructure, the new territory should be divided into separate zones: housing zones with both middle and up-class apartments with linked servicing objects such as repairing points, medical clinics, hair-cutting salons, shops etc. Separately, business, research, municipal centers should be located. That will help employees to go deep into the work process.

4. Former municipal buildings Let us suppose that, from now on, governmental officials are placed in the new part of Moscow and there are lot free specific offices in the center. These buildings are very specific: most of them were building during the Soviet Time. A lot of them are worn out. Therefore, they require maintenance works, or even capital repairing. Plus, initially there were built for non-living purposes. They have high ceilings, spacious halls, and number of big auditoriums. So the decision about the usage becomes even more complex. Plus questions of financing and ownership definition are also important. Let us discuss them one by one.

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The first “tricky point” is the question of ownership. Some of those buildings are owned by the city of Moscow. Some of them are federal. They are on the balance sheet of different budgets. Plus, there are different rules to manage them, according to the legislation. My proposition on this account is to put them into the balance sheet of Moscow. The main reason: they do not have federal importance anymore. After the transferring of rights, the second point is to decide how to use it. Already several options have been proposed. The first proposed option is to rent out them for business offices. As a result, we would be in the exclusive circle: the extension of Moscow was started in order to diminish traffic jams, but no businessmen would be refused driving. The parking question is the subject of another article. Conclusion: business offices are not panacea. If yes, not until the resolution of the problem of parking. The second option of using these building is to make them good enough for living: either for hotels or for housing. That decision leads us for “big” discussion. Certainly, the housing problem is critical for Moscow, but redesigning former municipal building into apartments would be hampered by the same problem as renting it for business officer: parking. The author sees the solution in hotels. First of all, tourists are without cars. Plus, enough hotels would increase Moscow attractiveness as touristic place. All sightseeing is concentrated in the center. Another solution is to use them for universities, research centers, schools. Places where people would stay not for long time. These majority of these people do not have cars. One example: several floors for primary school, several for post-school activities center with theater, library, music school, sport school. Two problem a

106 GREATER MOSCOW – THE KEYS TO SUCCESS would be solved: building are used, future generations are “busy”. They have the right activities, everything is available, and the variety is vast. Taking into consideration the fact that initially they are not inhabited, the great repair works should be undertaken. Office buildings are not suitable for housing, ventilation; there are no bathrooms, kitchens, only several toilets, all the communication is inappropriate. It would be necessary to completely change the layout. Therefore the only one thing would be kept: walls. It is the question whether the structure of buildings is ready or not. The cost of such works would be enormous. This is not only cosmetic maintenance. The telecommunication, heating, layout, walls moving and even more things should be rebuilt. The Moscow budget is not ready for such huge spending. Therefore, the government should rent out these building for long term for real estate companies, or to investors, who are ready to provide enough financing now. They would care about cost of repairing works. At the same time, the Moscow budget will receive lease payments. The following points could be highlighted. The former federal buildings should be handed over to the Moscow city balance sheet. The most balanced solution is to use them for hotels, schools, universities, research centers, post-school activities centers. In this connection, government should find the company that could take all cost of repairing costs. That is a huge investment with enormous potential gain. 5. Budget redistribution In my opinion, the budget redistribution should not cause too much problems. The formula is simple: minus from the regional budget, add that sum to the capital budget. Construction should be made in the money from capital budget and federal one. After, the possible debt gap could be covered with money available from renting former municipal buildings.

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6. Order of moving During the first five years Administration of the President and State Duma should move. After such a “top-level” start, other officers would have no choice as to follow. All other Ministers should also finish the moving. 7. Green zones There are two big parks in the new Moscow territory. Certainly, they should be saved. The experience of Moscow should not be repeated where parks are small, only several of them are good for walking with children. 8. Industrial zone Government should not allow building of factories in the new territory. Otherwise, that will cause outflow of investments, because that will not correlate with the initial purposes. They could be placed outside of the new Moscow territory. Employees could live in Moscow but work outside.

Bibliography 1. http://slon.ru/news/598920/ 2. http://slon.ru/economics/uroki_brazilii-691721.xhtml 3. http://www.gazeta.ru/subjects/rasshirenie_moskvi.shtml 4. http://ria.ru/review/20110617/389574961.html 5. http://www.utro.ru/articles/2011/07/14/986258.shtml 6. http://www.kommersant.ru/doc/1678547

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Elza Usmanova Introduction

The project of expansion borders of Russian capital was officially presented in mass media by Mayor of Moscow, Sergey Sobyanin, on the 11th of July in 2011. There was not a clear plan of actions and it became an interesting issue to discuss. Now we have a great opportunity to improve situation in the city, to make Moscow attractive for investors, to build a world class financial center. To avoid historical mistakes developers should estimate every step; create a project plan with strategic thinking not less then till 2050. First of all, official initiators should define priorities; look at the greatest earlier mistakes of city constructions and at the biggest problems of Moscow that prevent to modernize the capital.

Greater Moscow is the most ambitious project for all history of city administration. According to evaluation of internet portal Moscow Real Estate, expenses for realizing expansion will be about 11 trillion rubles (about 350$ billion)5. To compare, the Russian federal budget 2011 had 10.4 trillion rubles expenses. The new boundaries of the city are nearly agreed upon, with the territory of the capital set to grow 160,000 hectares. New borders of the capital are presented on the following picture:6

5 Internet portal of Moscow real estate [electronic resource]: internet access - http://www.realestate.ru/ (01.12.2011);

6 Internet portal of financial news [electronic resource]: internet access - http://top.rbc.ru/society/19/08/2011/611426.shtml (01.12.2011).

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Picture 1: New Moscow

So, the project is supposed to be very expensive. Hence the project is interesting and debated not only by citizens, but also by foreign experts, politics, architects and journalists. On the one hand, citizens suffer a lot of historical mistakes of capital developers and want to have the most effective solution in a shorter time; on the other hand, there are a lot of ideas from foreign experience. Before accepting final plans, the government should define priorities to solve the most critical current problems of citizens. This will allow conducting the project in the most effective way.

Building the functional centers

First of all, our modern Moscow has the biggest problems with the highest concentration of firms, governmental centers and touristic objects in the one place – its historical center. This damages citizens. Living on the outskirts of Moscow, or in

110 GREATER MOSCOW – THE KEYS TO SUCCESS the closed Moscow region, people need to go to work daily in the center and to stand long hours in terrible traffic jams. Roads, built decades ago, were not designed for such loads. This distribution of important organizations is not comfortable and effective. So, the first priority actions under the expansion project should be made for reorganizing administrative location of functional centers in Moscow.

For solving these administrative problems, developers should classify important objects with their functions: financial, touristic, trade and domestic. Hence, all objects could be organized around created for each of them centers. Every center should be moved into the most suitable area. At the same time, industrial centers and factories are better to be built outside of Moscow. For example, some factories could be replaced in Kaluga region, which will be in the closest neighborhood, according to the new borders of the capital.

The historical center of Moscow should be used only for tourism. This point of expansion means developing suitable infrastructure such as hotels, cafes and shops. Developers should provide necessary reconstructions of monuments, theaters and museums. Such important objects like the Moscow Kremlin should be open for visitors. The main function of the center should be rest and relaxation. The capital should become more interesting for the tourist industry. This will provide its attractiveness for foreign investors.

Financial and political centers should be moved from center to west side of the capital. This location is more effective according to this project for several reasons. First of all, building a commercial center had already being started. The brightest example is an ambitious project of business center Moscow City, which was launched in 2000. At the same time, this area is close to the élites districts like Rublevka, Kutuzovskiy prospect, where most users of financial centers live. Moreover, in comparison with other districts, the west side of Moscow and Moscow Region is not

111 GREATER MOSCOW – THE KEYS TO SUCCESS so populated. So, there will be fewer problems with constructions. I suppose, that financial and federal organizations are better to locate in a neighborhood, because they are closely related and in their daily activities need to have a lot of arrangements with each other. For example, a new joint center could include federal committees, the State Duma and, eventually, a presidential administration. Whether to concentrate a world-class financial center only around existing buildings of Moscow city or distribute companies for a lot of little centers on the west, project managers should decide after estimating costs of both alternatives. The key expenses of creating a world class financial and political center is an excellent infrastructure with big parking, heliports and roads. Business incubators like Skolkovo project, science laboratories and some economical universities should be also moved in new financial district or have some branches there to provide business with necessary data and human resource. Financing of building world-class business centers could be provided, particular, by private investors. To make the idea attractive for sponsors, initiators of this project should present a clear business plan, that will show to businessmen return on investments. The government could also take actions like accepting new laws that will protect interests of those companies, which will move into new financial districts for 2 years after finishing works. For example, such laws could provide for firms - new residents of financial district a lower tax rate and a simplified registration system. This could be a short and effective step, which allows investors to recognize, that the project will attract customers and, hence, quickly will reach a break-even point.

Developing joint trade centers are also necessary under the project of expansion. Now, a large amount of visitors from the other regions of Russia come into Moscow to buy products for their businesses. There are a lot of stock centers and wholesale markets in the capital that are located in different parts of the city. The biggest market is set in the southern administrative district in Lublino. Such location

112 GREATER MOSCOW – THE KEYS TO SUCCESS is not bad for a trade district, because there are a lot of important roads. The other spontaneous b2b markets should also be joined in one large trade center. It will give a chance to build the most effective needed infrastructure. For example, there could be built warehouses, a special airport for load planes, transit points, transport stations for intercity buses and motels. All of this action would make Moscow more attractive for trading and bring to its budget add income in future. Joining b2b markets in one allows developing necessary infrastructure, to reduce undesirable activities in the other districts and to keep trading processes under better control.

The last important kind of key functional objects is housing. Nowadays the capital is the most expensive city of the world according to much research.7 An average price for square meter in Moscow is 6000$ (data in 2011).8 The reason is the highest demand for accommodation. As far as Moscow economy is concerned, there are always occupations lacking personnel, alongside surplus human resources. Hence, every year millions of migrants from the other regions and countries move in the capital to work. To solve problems of the deficit, accommodation should be built in new areas of Moscow and be concentrated around municipal organizations such as district clinics, schools and administrations. Every functional area like financial district should be provided by living territories in the near of its centers. Developers should use large new areas that are not urbanized and so populated now. Construction of new residential building will make density less. Expenses of Greater Moscow project should be shared between building housing and nonresidential in equal parts.

7 Internet portal of statistics [electronic resource]: internet access -http://www.rususa.com/news/news.asp-nid-18794 (01.12.2011);

8 Internet portal of Moscow news [electronic resource]: internet access - mosday.ru (01.12.2011).

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To sum up, distributing Moscow with functional districts will allow reduce concentration of daily activities in the historical center and will give a chance to create a strong touristic industry in the capital. Putting the first priority to device and develop territory with functions, Moscow will have a chance to become the world center of finance, economics and trade and at the same time be much more comfortable to live in.

Moscow transport system

The second top priority under the project is solving traffic problems. A detailed plan of this issue should be prepared according to functional districts distribution, and all possible results should be estimated referring to needs of new centers.

Nowadays, citizens face traffic problems related to bad quality, outdated design of important roads and overloaded routes to working centers. Statistics, collected by Yandex service, show, about 800 traffic jams appear in Moscow daily. An average traffic jam includes about 1500 cars. Drivers spent about 15 hours in traffic jams monthly. The most problematic sections are presented in the following picture, 9

9 Internet portal Yandex [electronic resource]: internet access http://www.sta- t.ru/transport/statistika_avtomobilnih_probok_v_moskve/ (01.12.2011)

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Picture 2. The most problematic road sections in Moscow where the red color shows the most overloaded sections, yellow – less loaded and green means free to go. The picture characterizes the usual situation in the evening of a working week.

As we can see, there are a lot of difficulties with transport system in the center and ring roads. Historically-designed roads are not effective for current amount of cars. So, developers of the expansion project should consider construction of roads, bridges and car parks, traffic management system, integration of the transport infrastructure with other city systems, functional districts and special traffic control system. Plan of future roads should be agile and allow correcting their design according to ongoing needs of citizens. A special role should be given to a management of the transport system development and strategic planning. As an experience shows we need to be able to adopt roads to changes in the other spheres of the city. 115 GREATER MOSCOW – THE KEYS TO SUCCESS

The transport master plan should stipulate a number of measures for improvement of the capacity of the Moscow Ring Road and the main street road network at large. Connection with a new part of Moscow should be also considered, part of existed roads should be replaced. One of the most effective megalopolis road system is in New York. Their streets are built in straight lines and consist mostly one-way roads. Such construction allows minimizing traffic and having more alternative ways to go. So, developers of Greater Moscow could adopt its successful experience in this project. Of course, historical districts are hard to be changed, but new financial, political and trade districts could be designed like New York.

The documents of the project plan for transport system should stipulate construction of main roads for arrangement of contra-flow traffic in the city, liquidation of ground crosswalks on multilane routes, design of new (multilevel) high- speed main roads to withdraw transit traffic from the current street and road network. Especially, the Japanese have a good experience of designing such roads and they could be involved as experts in building roads in Moscow.

The action plan should also provide for development of multilevel car parks in residential areas and construction of park and road lots around subway terminals and junction stations of the ground public transport, including outside the city limits.

Another important task for the government is creating effective public transport system. I think that the priority should be given to development of rapid systems like subway and rail transport because of a expanding territories. Development of high- speed ground public transport along a separate traffic lane shall also contribute to solution of the traffic problem. Add territories, financial, political and especially domestic areas should be provided with subway stations. Red and blue lines of metro are necessary to be continued to the south-west direction. Without solving public transport problems, construction new metro stations, the new city territories of

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Moscow region will not be recognized as real Moscow. New places should be available for everyone.

A government should also plan schedules of working of functional centers. To reduce rush hours enterprises and institutions, including state and municipal ones, should have different working hours.

So, developing project has two principal key priorities: developing functional districts with good infrastructures and solving transport system problems. According to results of planning these issues the project could be successful or failure. Therefore costs of this statements of project might be much bigger than any solutions else. The quality of Greater Moscow depends on strategic thinking of its creators. All possible ways and results should be carefully estimated and considered. Being the top-priority tasks construction, roads and infrastructure might use more than 70 per cent of the total project budget. If a plan is made clear and includes time schedule, returns on investment will be astonishing for Moscow.

Social needs

I would like to draw special attention to the necessarily of developing social undertakings. To create an attractive image of future greater Moscow, the government should prepare principal solutions in health care and education system and refer to ecological problems of the city.

First of all, citizens of reformed Moscow want to have their social guaranties of available treatment. This is responsibility of municipal government. If Moscow is separated into functional districts, every joint domestic area should be concentrated around social municipal organizations, included district hospitals and polyclinics. So if Moscow increases 2,5 times in size, the amount of social health services should be increased proportionally. For example, now there are about 900 non-commercial

117 GREATER MOSCOW – THE KEYS TO SUCCESS medical organizations in the capital. It means that amount after expanding borders should be about 2250. Some medical centers have already existed in adding part of Moscow region, but constructing new domestic squires needs to provide them with new clinics and hospitals.

Inadequate quantity of free health services in Moscow is not the only one problem in this sphere. Low salaries have made corruption common among medical personnel, who often extract bribes for both materials and services. Thus, although health care is free in principle, the chances of receiving adequate treatment may depend on the patient's wealth. The combination of bribes and authorized charges puts many types of medical treatment beyond the reach of all but the wealthy. Elderly people are hit especially hard by this situation. Meanwhile, a sharp decline in state funding has affected all aspects of medical care, from prevention to emergency treatment. To improve this situation, the municipal government should increase salaries for medical personnel and make laws against bribes more effective through adding new punishments. Funds for medical needs could be formed from special allocations and taxes of businesses. Without any changes in Moscow medicine, the capital will not become attractive for living.

One more important issue to consider, before building new infrastructure, is a provision of comfortable living conditions for limited-mobility people. At present more than 1.2 million disabled people live in Moscow, more than 15 thousand of them are visually impaired and blind, more than 26 thousand of them have pathological diseases of musculoskeletal system, 6.5 thousand- are deaf and hearing

118 GREATER MOSCOW – THE KEYS TO SUCCESS impaired, more than 5 thousand are ICP invalids, 27 thousand are disabled children.10 Unfortunately, nowadays the capital is not adapted for such people.

Greater Moscow has should reach the European level of creating a barrier-free environment for the disabled. 7.3 All administrative buildings should be equipped accordingly for people with disabilities; station elevating platforms should be constructed in apartment houses. Traffic lights with audio visual output should be installed for the visually impaired.

Municipal authority should provide floor buses and “social taxi”. Elevating platforms for the disabled have been installed in new buildings. The Moscow metro should find new ways to adjust the life of the disabled to urban life, which is a challenging task — the overwhelming majority of city venues have been built without regard to the special needs of various categories of citizens for decades. Greater Moscow should be developed with meeting needs of all categories of citizens.

One of the major problems of people with disabilities is to find a job. To solve this problem, the government should organize a municipal annual employment fair for all categories of the disabled. Financial and trade center of new Moscow should be adapted to needs of disabled workers.

Nowadays, adults face another important problem - a deficit of places in Moscow kindergartens. Increasing the number of workplaces and workforce, Greater Moscow should find a strategy for parents. The traditional way is to build new municipal organizations for children. Another way is to adopt European experience and to create corporate kindergartens in organizations and enterprises. The idea is

10 Internet portal of Moscow government [electronic resource]: access - http://moscow.ru/en/government/lifein_moscow/social_experience/unlimited_attention/ (01.12.2011)

119 GREATER MOSCOW – THE KEYS TO SUCCESS simple and clever: kindergartens are organized in official office centers, so, children can stay at the same building as their working parents. For this idea kindergartens, partially, may be financed by the city budged and by corporate funds. This approach will be relevant for financial and trade districts.

Most progressive organizations have long ago created their own special children’s rooms where the employees may for a time leave their children, but it was only a private initiative. So a private-state cooperation will be established in this sphere. It is suggested to create corporate kindergartens as branches of state owned pre-school educational establishments included in the system of the Moscow City Education Department to support working parents and make pre-school education accessible. According to the data submitted by the Department, 20% out of the 74 large companies questioned in Moscow are interested in the creation of a corporate kindergarten. Such a kindergarten may be designed for not less than 10 children with the condition of having two teachers and a principal for every 15 kids. According to the project, an organization would be free to hire additional personnel and introduce educational and health-improving programs, which would be financed by the organization.11

The outdated forms of pre-school education should retreat into the past. The composition of the kindergarten teachers and managers should be changed. Now, major kindergarten managers have secondary education and their work is organized at the outdated level. Kindergartens of future Moscow should provide the highest quality of children and, so, should be managed by people with higher education This fact certainly will raise the quality of the work.

11 Internet portal of Moscow government [electronic resource]: access - http://moscow.ru/en/government/lifein_moscow/social_experience/corp_kindergartens/ (01.12.2011)

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Environment

The last but not least problems that should be considered under project Greater Moscow are environmental. All businesses exert direct or indirect impact on the environment from their activities. Every year, Moscow industry pollutes the atmosphere with tons of dust and other harmful substances. The city suffers from smog. If the government does not do any improvements, the expansion will lead to an ecological collapse.

Expanding borders may increase risks of polluting environment. So, we need to have a clear plan to avoid it. Experts should consider ideas of recycling, building park zones, introducing ecological car with alternative fossil or electro mobiles and effective using electricity.

The main problem of Moscow is the pollution of air. Each year atmosphere gets 1.8 million tons of harmful substances, 90% of them are due to a motor transport. 94% of all machines are not equipped with special filters to protect environment from harmful gases. The number of automobiles in Moscow is growing from year to year, and ecologists predict that Moscow will plunge in smoke. Does any solution exist? The Moscow government should develop new programs under the project Greater Moscow, including the problem of transport circulation. Priority is to develop electric transport like monorail trains. Experts should develop special ecological standards of using fossil fuel.

Developing large new territory for Moscow damage major components of urban environment that are the green massive (parks, urban forests and gardens), birds and animals inhabiting them. The greenery provides comfortable living conditions for citizens, adjusts balance the gas composition of air and reduces damage effects of polluting and the influence of noise. So, the project should also include creating relaxing park zone and greening all territory of Greater Moscow. 121 GREATER MOSCOW – THE KEYS TO SUCCESS

Now the territory of Moscow consists from less than 36 woods and forests. The largest woods of Moscow are Losiniy Island – under the city boundaries, Uzkoe and Izmailovo. In the old part of the city, within the boundaries of the Moscow Circular rail road, only two relevantly large woods massive remain: Sokolniki and Ostankino. The condition of forests could be described as endangered; the first reason of this is their location in the city and, accordingly, level of techno genetic loads. Being within the Moscow boundaries other natural components (moors and rivers) are also in bad conditions. Like the forests, they have undergone definite changes as a result of anthropogenic factors and have lost characteristics of natural eco system. These natural components more than woods are also threatened. Greening streets should play especial role in improvement of the whole ecological system in Moscow.

The project of expanding should not imbalance a micro climate system of the capital. The analysis of thermal anomalies has shown that the areas with positive highly and medium contrast of thermal anomalies (temperature rise above background more than 10ºC) are connected with industrial objects and intensive thermal outflows from underground water. So, replacing factories outside of Moscow will be a great step of improving ecological situation.

Eco system should provide safety for people. The ecological researches have shown that 80 % of illnesses are the result of bad ecological situation in Moscow. Nowadays, an average age of oncology death is 40. The most unfavorable situation of children’s morbidity was fixed in central, Eastern and Northwest districts. The highest amount of people with ill respiratory organs is also reiterated there. 12

An important problem of developing big city is a recycling. Nobody wants to live in dump. This problem has an important impact on development of Moscow. For

12 Internet site Ecological life [electronic resource]: access - www.ecolife.ru (01.12.2011)

122 GREATER MOSCOW – THE KEYS TO SUCCESS an effective solution a government should create special factories processing dust. Several factories already exist in Chertanovo and Cotlyakovo. These factories can precede 40000 tons of waste per year.

A government should realize the project of building new recycling factories and distribute them throughout territories of Moscow.

Conclusion

In conclusion, there are a lot of problems to consider before developing a new capital. First of all initiators should define the most relevant location of political, financial and trade centers.

To make this process more effective, the government could announce a competition of ideas for this ambitious project. Participants could be invited from other countries. Developers should use experience of Paris, New York, London and Istanbul. A new transport system should be designed according to location of the most important districts. New roads could be constructed by international supply companies which provide better materials than Russian ones. Financing of the project could be realized by private investors. Creating a world finance center businesses will have good dividends.

The project Greater Moscow has a conception of strategic thinking 2050. Initiators create the new city, attractive to investors and citizens. It is a very hard work. A lot of researches and estimations should be made before acting. Developers should reorganize historical image of Moscow according to its modern needs and Eco-system. At the same time the capital government needs to solve a lot of problems in social sphere.

Planning Greater Moscow now we provide our wellness in future.

Bibliography 123 GREATER MOSCOW – THE KEYS TO SUCCESS

 Internet portal of Moscow real estate [electronic resource]: internet access - http://www.realestate.ru/ (01.12.2011);  Internet portal of financial news [electronic resource]: internet access - http://top.rbc.ru/society/19/08/2011/611426.shtml (01.12.2011).  Internet portal of statistics [electronic resource]: internet access - http://www.rususa.com/news/news.asp-nid-18794 (01.12.2011);  Internet portal of Moscow news [electronic resource]: internet access - mosday.ru (01.12.2011);  Internet portal Yandex [electronic resource]: internet access http://www.sta- t.ru/transport/statistika_avtomobilnih_probok_v_moskve/ (01.12.2011);  Internet portal of Moscow government [electronic resource]: access - http://moscow.ru/en/government/lifein_moscow/social_experience/unlimited_a ttention/ (01.12.2011);  Internet site Ecological life [electronic resource]: access - www.ecolife.ru (01.12.2011)

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Evgenia Mantsurova The Moscow city authorities signed an agreement on changing the borders of Moscow and the Moscow Region with a view to move the bulk of government offices out of Moscow.

According to Levada Center’s Deputy Director, Alexei Grazhdankin, people who live in the center are worried that they will have to move far from the Moscow Ring Road. They also fear that after expansion, Moscow will lose its current advantages and will stop attracting people. Moscow’s present resources may turn out to be unsatisfactory to maintain the living standards and income at the level they are at the moment.

“Greater Moscow” project could however be a sufficient measure. I think that the main advantages could be the following:

1. Increased availability of housing 2. In the new territories there will be a cluster of innovative research and education centers 3. City traffic problem 4. Increase in jobs 5. Attract FDI for further development 6. Improving the ecological situation 7. The rate of bureaucracy will decrease 8. Office space and corporate services

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The new territories are relatively weakly urbanized which means this is potentially enables capital to construct objects with a total area of approximately 105 million square metres, including housing and buildings for social and business purposes. The density of these new constructions will be significantly lower than within the Ring Road. This will provide housing for 2 million people in Moscow and create more than 1 million new highly-skilled jobs.

Nowadays, the price for 1 square meter inside the Moscow Ring Road is really high. Young families could not afford a flat and thus live with their parents, leading to overcrowding and lack of schools and kindergartens in Moscow. The Greater Moscow project gives the chance to build the whole infrastructure.

Nevertheless, there is a possibility as a big growing city to concentrate most of the country’s recourses and the difference between the level of living in Moscow and the rest of Russia will only increase which could possibly lead to social collisions and misunderstanding. Even now as the city is becoming more and more important and expensive to live in, in the future it may become a different zone, probably with extremely high rate of discrimination and unfriendliness to distant zones.

According to the government, there will be a complex of innovative research and education centers in the joined area, so probably there will be no need for hundreds of students to travel (traffic problem). Besides, new centers could provide new campuses for students, as there will not be any lack of territory for building.

Research and innovation centers will provide new jobs for qualified staff (the reason to move out from Moscow) and also be attractive for foreign investors. If foreign capital comes (and is allowed to stay by government), there will be a possibility to attract to this area big multinational companies with proper financial plans and the need for staff. So, this measure could boost investments and transform Moscow into the global financial hub. 126 GREATER MOSCOW – THE KEYS TO SUCCESS

On the other hand there is a saying- “Don’t put all your eggs in one basket”- creating a transport hub in Moscow could lead to great pollution and safety/terrorism problems in future. By massing the high tech center, the financial center and the political decision-making center in one city, no matter how large it is, they render the entire Russian Federation helpless in case of terrorism attack on Moscow.

I think the good example of spreading the differently orientated hubs is the US. As we can see the financial center is in New York, political in Washington D.C. and the high-tech (so called Silicon Valley) in California-which doesn’t leave the opportunity by only one planned attack stop the entire country.

Due to the time they should spend commuting, a lot of people prefer to have a flat near the metro rather than have a house in the suburban area and spend around 3 hours in the morning in traffic jams. I believe that if they had a chance to have a job with equivalent payment and professional level, a lot of people would prefer to choose a suburban style of living with far better ecological conditions. This will lead to decreasing pollution (people don’t have to spend hours in traffic jams), decreasing ring-road city population and will give an opportunity to raise children in an ecologically friendly area.

The development of the transport complex of Moscow and Moscow region is also one of the most discussed and important measures of government, particularly in the implementation of an additional radial-ring in the transport link structure in the metropolitan area, relieving the transit traffic load on the historical center of Moscow. Construction of transport hubs which will allow passengers to transfer from commuter system to the urban transport system, light rail lines, new railway stations and connect the old ones, new metro lines and extension of existing lines- all these measures will allow organize the traffic, minimize the time of the average route and make the trip more comfortable.

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The global financial and economic crises that spread to Russia in 2008 pushed most of the companies to cut investment costs, especially in the field of further development.

New Moscow Mayor, Mr.Sobyanin, planned extending the metro lines beyond Moscow's boundaries to its satellite areas. Quote: “We should revise the existing politics, designing methods, organization of metro construction, and employ new technologies, revise its organizational structure which should put the pendulum in motion anew,” which will require significant investment into a number of areas, including upgrade of equipment, design adjustments, development of cost-efficient approach, etc.

According to the mayor, there is a possibility to shift some of administrative bodies to the new area of Moscow. This decision will create additional jobs and hopefully will ease jams in the center of the city. As I already mentioned above, in case of creation a cluster with proper infrastructure, where innovative and research companies could come and stay, there will be a huge need in jobs, both highly skilled and non skilled.

As a bottom line, I want to stress that the “Greater Moscow” project problems should be analyzed and solved only in a complex, because I do believe that solving them one apart from another great mistake could be made. I guess the role of all these problems is the making of the challenge. Still hope for the best.

Sources:

1. www.metrolic.com

2. www.ukti.gov.uk

3. www.themoscownews.com

4. www.itar-tass.com

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Ilnar Gubaydullin

Transportation issues of a new region of Moscow. One of the main problems of Moscow being capital and business center of Russian Federation is the problem of traffic. Like London and New York, Moscow’s traffic is horrible, especially during morning and evening hours when people travel to work or home. People can spend up to 3 hours on the way to the office and back. Hence, enlargement of Moscow have to solve infrastructure problem in order to become successful. It is not a secret that during last decade of XX century and first decade of XXI century, a lot of mistakes were made in plans for building in the city. Houses were built despite many problems including parking space, roads capacity and communication problems. The current mayor of Moscow, Mr. Sobianin, acknowledges this problem134. The underground system of transportation has to be developed with usage of new technologies. Everyone who uses Moscow Metro (an underground system in Moscow) can feel that though is extremely efficient, it is not comfortable place to be. Ventilation is natural and was developed long time ago when population of Moscow was much smaller. Today, it is imperative to use climate control systems on underground stations like it is done in London. New stations have to be developed and built to satisfy general plan of building of a new region of Moscow. Though light railway could be implemented, connection stations between Metro and light railway or monorail way are needed, like it was implemented in London on Bank station between underground line and DLR line, where people can travel from underground train to monorail train without stepping outside. 129 GREATER MOSCOW – THE KEYS TO SUCCESS

New roads have to be designed and build with high capacity and simple intersections. High capacity of roads with relocation of some government offices and businesses to the new region will allow reducing traffic within Moscow and providing better workforce mobility. Road capacities should be accounted, not for a near future, but for estimated use at least for one decade in future, that would allow solving problem of traffic jams. Parking spaces are an essential part of the city and are as big problem for traveling in Moscow as traffic jams. Business centers, and even flat buildings, with underground parking spaces will help to reduce the problem.

Relocation of business to the new region The new region of Moscow will enlarge total territory of Moscow 2.5 times according to Mayor of Moscow Mr. Sabianin, hence it has to be populated not only by governmental agencies and privet apartments, but also with business. Relocation of government offices to the new region will not force, or be at least an incentive, to move to a new region for businesses. Thus, several instruments required for business to move from their current locations to the new region. The first instrument is outstanding infrastructure. Apart from roads mass transportation systems, which were described earlier, other infrastructure issues, have to be on the top level to attract business to the new region, or to Moscow itself. Telephone communications and Internet communications have to be reliable. Also, the electricity power grid has to be secure and efficient, so malfunctions would not interrupt business process. Financial aspects of relocation. Since the Russian government desires to create world business center on the same line with New York, London, Hong Kong, Tokyo and Dubai, Moscow will have to provide some competitive advantage. The new region of Moscow with wise and efficient infrastructure on the one hand, and

130 GREATER MOSCOW – THE KEYS TO SUCCESS financial competitive advantage on the other, would allow Moscow to become a world financial center. Regarding financial competitive advantage, Moscow government, or even state government, can provide financial support in form of direct financial help, or cheap loans, to businesses which wish to move from current location to the new region. Another opportunity to provide incentive for businesses to move to the new region, or event, to attract businesses from outside of Russia is to provide tax reliefs for companies registered, and working, within the new region.

Relocation of people to the new region The new region of Moscow to be successful requires another key issue – people. Thus, there are several aspects to be taken into consideration. One of them is infrastructure apart from roads and transportation system. Currently, in Moscow and in all Russia there is a lack of kindergartens. It would be wise to take into account in general building plan local kindergartens, so young families could both take part in increasing GDP by working. Plus, that would create additional work places in the new region. Hospitals and local healthcare centers. New health care centers also need to be created for local population. That would ensure more working places and higher standards of living within the region. Easy and near access to shopping centers and other places of leisure would provide work for local population, attraction of tourists and people from other regions of Moscow. Some water park and theme parks world provide higher standards of leaving and desire for people to relocate. New sport centers and stadiums would provide additional tax collections for the government, keep local population healthier. As for football stadiums, since Russia will host world football championship, additional stadiums around Moscow will show

131 GREATER MOSCOW – THE KEYS TO SUCCESS that Russia is ready to host such events on one hand and eager to host more of such events in future in the other hand. Additional financial support from the government would be supportive and would be another incentive to change one’s place of living. In this aspect, there are number of methods which could be employed, such as cheap mortgages, especially for young families, discount in communal fees, or transportation discounts.

Coming back to the mass transportation system, people have to be sure that they can reach every part of Moscow, without huge problems and many changes of transportation. So new underground lines should be developed, as well as overground transport lines. Of course, sufficient numbers of parking lots should be designed around flats building too.

Ecology Transportation systems, financial support and work places are important for people and businesses to relocate, however there is another aspect of surrounding life life that is important – Ecology. It is well know that Moscow is quite dirty city in terms of ecology, though it is not as polluted as Chelyabinsk or Norilsk, but still far from clean city. There are several issues that have to be taken into account, when plan of developing of the new region of Moscow will be developed. First of all parks, since Moscow is not an ecologically clean city. The amount of parks and its quality and size have to be determined to reduce ecological condition of the city as a whole and the region in particular. Parks with different types of trees should be planted, especially with one that consumes more CO2 and produce more oxygen. Water reservoirs, small lakes in the region must not be destroyed, as used to be done during the times of socialism, but to be centers of parks and recreation centers

132 GREATER MOSCOW – THE KEYS TO SUCCESS within the region. Underground waters have to be identified, first of all in respect of construction and second not to be polluted. If new construction facilities and factories are to be opened in the region the best ecological standards have to be applied to those facilities. Better cleaning and filtering systems should be employed. In this sense, government has to take part in preservation of ecologically clean region. So, additional financial support could be given to companies who are employing best and clean technologies.

Tap water itself requires a better filtering system; people need to be sure that water in their homes is safe. So, some additional water reservoirs for tape water with filtering stations can be built within the new region development plan.

Helicopter transportation could be an advantage for the city in general and for the new region particularly. Our top government officials can use helicopters to get from one part of Moscow to another. Specially, if they would be required to travel from the Kremlin or White House to governmental offices in the new region of Moscow. Also, helicopters can be used for emergency health care need, instead of putting additional pressure on roads.

Foreign specialists could be employed for developing the new region. Specialists from London, New York and Tokyo would bring in new ideas on city efficiency, since all three named cities face same problems as Moscow. Combination of number of specialist from different places and with different view could provide best result.

Corruption is still a problem for Russia, though is it important and one of the key problems in Russia, it is not the major aspect for current task, nonetheless it

133 GREATER MOSCOW – THE KEYS TO SUCCESS should be mentioned once again, that the lower corruption level in the country, the better climate for foreign investments and enter conditions for foreign businesses.

Last, but not least, is which governmental agencies plan to move to a new region. The best way would be to transfer agencies that are not visited a lot by common people. So some statistical units control and overview units like Federal Financial Markets Service.

References

1. http://www.vedomosti.ru/politics/news/1340278/ya_drugoj_raboty_ne_predsta vlyayu_sergej_sobyanin_mer_moskvy (Russian) 2. http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/ch6c4en.html 3. http://www.entrepreneur.com/article/81406

134 GREATER MOSCOW – THE KEYS TO SUCCESS

Nailya Gilmanova

Infrastructure and social trend In order to make a new part of Moscow attractive to people, the administration needs to think of comfort. We should analyze what has to be changed to make new Moscow better than “old” one. Many people criticize the decision to expand the capital, but we can reference the history of many cities all around the world. Some time ago, there was not much area, but new territory was attached and nobody seems to be unhappy today. Do you care if your house was built in the historical (old) area of the town, or it is in the new micro-district? We can sort out the priorities and give exact recommendations for building the new area. As a social-oriented country, we think of our citizens. That is why a new territory must be as convenient as it possible. We cannot make people move to new area, but we can think of making it such an attractive place that people will decide to do it themselves. First of all, we must exclude panel house building. It is not efficient for many reasons: its useful life is about 50 years only, thermal balance depends on the outside temperature too much, they are noisy etc. The optimal decision is to choose monolithic building. It is not so cheap as panel building, but it is more comfortable for living. We are sure you would prefer to purchase a quality apartment. It will be our competitive advantage – even though people think of new Moscow as countryside, they understand clearly that a quality house is more important option.

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Secondly, let us talk about parking places that are necessary. Parking places will be also the solution before the transport system is built. Building must be diffusive to let people feel free space. Then, we should take into account that the traffic capacity has to be much better than in the present Moscow. We all heard about the probable removal of the administration block. We have mentioned some aspects, which let us imagine new capital. The main thing we should remember is that new area must be really new in all spheres.

Investments and Price Charging Settlement of new territories requires huge amounts of money. Before the community will be able to understand the priorities of investing in new lands, government should think of the initial cash flows. The most effective variant seems to be mobilization of investment from the outside. For example, Vietnam would be perfect. The businessmen of this country have already expressed a desire for contributing to the realization of the plans for building. Every moment, we must remember about quality, because only quality can guarantee us success in developing new territories. That is why we should give preference to foreign companies. Russian building traditions are well known for delay and lower quality. In order to make people believe that new project is good enough, we can use foreign companies to ensure project success. This could be a psychological trick: foreigners do everything better, we can trust their work and experience. Also, foreign companies can ensure less costs of the project and our administration will not have to look for money immediately from our poor budget.

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The second thing we should think about – price charging. Again, do not forget to attract people. Thereby, the price markup should be at the lowest level. Nobody wants to invest in uncertainty at a higher price. When the project establishes a reputation, then you can sell at the higher price. In order to draw in local business, we also should cut prices and let them run businesses under special conditions. Maybe we could establish a special area like in Sochi. This is a rough direction we could think of.

Moving The first suggestion about relocation of administrative sector can be applied broadly. Under the slogan “keep historical Moscow”, we can offer to remove many business centers, which are inside of TTK (third transport ring) to new Moscow area.

Recreation area Moscow is attractive because of its income level and when people earn more, they can spend more. There are plenty of places where you can spend time well, but in the new territory, we could create better conditions and much more alternatives, which match your resources and preferences. How many places in Moscow do you know in which there are clubs, but you do not have to comply with a dress code or a face-control so strictly? Or, where are there available absorbing aqua parks? There are not so many. We can help businessmen to create them, to locate on the new territory, to make them popular. New Moscow should not be asphalt jungle. We can create parks, public gardens, avenues, artificial reservoirs and etc. All this can encompass the aspect of ecologically-clean city and also can encourage people to choose new Moscow.

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We can establish new theaters, luxury restaurants, democratic bars, clubs, fitness clubs, and sports centers – anything just to satisfy consumer and make profit for business. Transport system We have mentioned traffic jams and, with land settlement, they will arise in the new area. Also, income level was mentioned. Many people can afford a private vehicle in today. Especially to those who have difficulties, we can offer special conditions on car loans. Why? We must provide a good transport system. New underground? Too expensive and long. And while making it, we are not able to use this area. Only surface transport is acceptable. Public conveyances should not be the priority here. Instead, we should provide traffic interchanges, wide roads and etc. We invest in highways (which also would be better to entrust to foreigners – they really finish it faster and better: for example, in USA they complete a new interchange in 2 months, while we do it for years).People use cars and pay taxes. We do not need to spend much on public conveyances… profit for the budget, or at least not disastrous losses. Everything is possible if you make it think it through. The new territory could become the salvation for overpopulated Moscow.

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Valeria Bondareva

On July 6, 2011, Russian President Dmitry Medvedev proposed the greatest project of 2011 - expanding the boundaries of Moscow by creating a «Capital Federal District», and transferring a significant part of government institutions outside the existing city limits.

On July 12, Moscow Mayor Sergey Sobyanin and Moscow region governor Boris Gromov presented to the Russian President proposals to change the borders of Moscow and Moscow region. According to the results of the meeting, Sobyanin said that the territory will be expanded by 2.4 times - to 144 thousand hectares. But then, it was decided to broaden city limits by another 16,000 hectares - to 160 hectares, reaching the border with the Kaluga region and also include Troitsk and Scherbinka in the limits of city.

The idea of broadening the city limits of Moscow was developed quite long ago, but only now has met necessary popularity in order for the project to «achieve some shape» and come to life.

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The following picture represents the map of how the borders will be broadened:

Picture 1. The map of broadening the borders of Moscow

Speaking about the keys to success of this project, we should mention the following:

- Expanding the boundaries of Moscow to the south and south-west to a large extent will solve the issue of over-density of the city. In the new territories, it is planned to build up to sixty million square meters of housing stock which will give a new impetus to invest in real estate. Also, up to forty-five million square meters will be provided for building new offices and various commercial centres that will give a boost to business structures. Therefore, after 2011, there will be a mass migration of the federal government to the new areas from the center of Moscow city, which means there is a need in up to 1.5 million of new office locations.

Moscow mayor Sergey Sobyanin thinks that the expansion of the boundaries of the capital will give halve the population density, and the city will «breathe easier». The joint decision of Russian President and the Mayor concluded that there is a need 140 GREATER MOSCOW – THE KEYS TO SUCCESS to move from a system of a monocentric system, so that after the expansion, the capital will be given another centre.

Thus, the decision on broadening the city territory to the south will give an opportunity to reallocate the monocentric system of the city, so that a city will have a few more radial points. Moscow itself will become cleaner and more convenient because cars will move into three priority areas which are situated in different areas of the city and there will be no need for compulsory entry into the city center. There also will be an impetus to the development of public transport, as a new metro line to Skolkovo and some new stations will be built. On the territory of Moscow city, two new railway stations are planned to be built.

Indeed, 2011 is already becoming a turning point in the life of the capital. Right now, the adjacent land to the city areas and land around Naro-Fominsk are the bases for further development of capital construction.

- With broadening the city limits, the infrastructure of the territory that will be joined to Moscow city will constantly develop, because the budget of Moscow is five times higher than the budget of Moscow region which, therefore, means that at least some of these funds would be used for building/repair of schools, kindergartens, hospitals, roads and development of public transportation system etc.

When Moscow region becomes the territory of Moscow city, the life of residents who lived in the region will become better, due to the fact that there will be a rise in wages because of the new status, new workplaces will be created, and their social status will improve.

It will be easier for people to find a good job. Those residents will receive a lot of benefits, such as:

- an increase in pension;

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- different social allowances that are normally given to the residents of the city, for example, compensation for sanatorium treatment;

- subsidies for housing and communal services.

However, along with the benefits, there are, of course, some drawbacks like the life will be more expensive due to the rise in prices for food etc.

The expected massive development of the area, as a consequence will have the destruction of old housing, private homes, summer cottages, garages, etc. Experience shows that the event is almost always accompanied by dissatisfaction by the local population. It is caused by different factors, often the authorities' unwillingness to adequately compensate for any inconvenience.

Building new houses for people to which to move from the centre of the city does not necessarily mean that those newly-built houses would be settled with those people (not with migrants).

Another drawback is environmental degradation. South-west region is the least- populated district of Moscow region and is mostly covered by forests. Cutting down trees is inevitable which, therefore, will worsen the ecological situation, and as experience shows us, there cannot be any construction without cutting down some trees.

- The development of new areas suggests construction of a large number of social housing and hundreds of miles of roads and communications.

According to the project of broadening the city limits, it is planned to create 5-6 independent centers with complex territorial construction. The mayor of Moscow did not emphasize the fact where exactly the administration will work whether in the centre or in the new Podmoskovie centre. What the Mayor was sure about was about the desire not to allocate everything to one area.

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According to Sobyanin, all the business centres and governmental institutions would be reallocated to the joined territories, so that the traffic will partially be reduced. In such plans, there will be a possibility to change the traffic corridor, because the capital labor force will be located in different areas.

Despite these benefits, of course, there are such drawbacks that construction of all the communications will take a lot of time, which will bring a lot of inconvenience like traffic-jams, mud, temporary settlements of migrant workers.

Another disadvantage is that constructing roads and all these communications is a good opportunity for some people to make a lot of money. Therefore, the level of corruption increases, and embezzlement of Moscow and Moscow region budgets can be seen.

- The expansion project of Moscow will definitely affect the real estate market in the suburban areas. However, in a segment of the suburban real estate the situation is not so simple. The inclusion of territories between Warsaw and Kiev highways to the part of Moscow city, of course, will change the structure and prices of the real estate market. However, accurate predictions cannot be given now as the «Kaluga area» is quite popular due to the good environment.

If the area will be linked to Moscow large-scale construction of road networks, public infrastructure will begin, which will lead to a deterioration of the environment in this area. Therefore, for some people who environment is a key factor, Kaluga highway will lose its appeal.

For other categories of customers, the status of metropolitan areas, by contrast, would be an advantage because this area will be considered as a suburb. Therefore, in the villages with developed infrastructure, which will merge quickly into the city, the cost of land will grow by an average of twenty percent. This price level will mostly be affected by the promised development of transport infrastructure.

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A lot of advantages can be seen, such as residence in the capital, infrastructure development etc., so there is a forecast that prices for apartments in the southern areas will grow.

Prospects for unification of the standard of living in residential areas of Moscow and Moscow region annexed territories, will add value to property that falls into the new borders of Moscow. This might include such cities as Khimki, Mytishchi, Krasnogorsk, Odintsovo, Vnukovo, Reutov, Lyubertsy and others. Now the difference in the cost of similar-quality apartments in Krasnogorsk and neighboring Mitino can reach up to twenty-five percent. This is money that consumers are willing to pay for better quality of life, for the presence of the subway, a Moscow residence permit, for a better quality of housing services, more modern and high quality health and education.

Another advantage can be, due to rise of the price level for housing in these newly-joined areas, the flow of migrants will be reduced, because the prices will be less attractive and affordable for them.

We have analyzed the most important keys to success of the project of 2011 of broadening the boarders of Moscow city, and let us consider the factors that are not the biggest ones but also quite important.

The «transition period» is the most negative factor. The change of the administrative subordination of any territory, the so-called phase «handover», registration papers etc., is not inevitable. There will be an inconvenience that everyone will face with such problems like: need to restructure of a lot of documents, starting from passports, tickets to military/ registration certificates, etc., that can end in complete anarchy when it will be impossible to govern.

Another problem that will be faced is that people who live or have their summer houses in the lands where it is planned to construct new commercial centres,

144 GREATER MOSCOW – THE KEYS TO SUCCESS business centres etc., will not want to sell their private properties for the prices that they will be offered, so a lot of conflicts will take place.

Development of new territories will take a lot of time, and government or companies that are building everything will probably have not necessary amount of money, so there is a possibility of freezing the construction due to the crisis companies face while attracting new investors. Therefore, people who live nearby will observe all the unfinished construction for quite a long time.

A property tax to the new territories will be introduced, that will be a burden for those families who have just become new Muscovites.

This project of broadening the city borders is a huge project and needs a lot of time and effort in order to be implemented successfully. Of course, it will meet a lot of critics from different layers of the society, but still can turn out to be a success.

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SECTION 3. FOREIGN BORN STUDIENTS

Anastasia Chauzeix Big City, also known as Moskva City-2 and Novy Center, is one of the largest development projects in the world and, on completion, will be the largest office cluster in Russia, including business centers, residential development, retail premises, administrative buildings and hotels.

1 - Establishing a definite schedule

This kind of enormous projects are said to be always late. We may refer to the example of the cities which organize the Olympic Games which are often confronted to this problem. That is why there is a real need for planning.

The future site of Big City includes both residential and industrial areas with approximately 100 industrial facilities located there, including the Proletarsky Trud metal components factory, a flour mill, a plant producing industrial construction materials and a sugar refinery. These facilities have to be relocated to sites outside the Moscow city limits to free up space for redevelopment. This is a complicated and long process which should take place before the beginning of construction and which could dramatically slow down the project.

Defining a schedule is also important in order to establish the budget and raise the appropriate funds at the appropriate time. Indeed, the project requires funds from foreign investors who are willing to have a clear idea of the project’s beginning and end. The planning, in general, is a very important step in elaborating a project in order to know which resources are necessary and at what time. 146 GREATER MOSCOW – THE KEYS TO SUCCESS

The work specifications book is an unavoidable tool in such a project. It enables to gather all useful information and to clarify as much as possible the needs for resources and the links between all parties. Indeed, we may claim that the major problem in establishing a plan for this project is its complexity. While writing all the requirements in the book, the writer may ask important and thought-provoking questions which will help to make the project be more prepared and clearer for everyone involved. Anybody who reads this book should have a clear idea of how the project will be like.

Lastly, a very definite schedule is an opportunity to save money because loopholes, failures in planning often lead to greater costs.

2 - Creating efficient transportation facilities with a time-saving approach for users

The main problem that big cities are facing is transportation and Moscow is no exception. Those cities have a high level of concentration of business activities. However, urban productivity is highly dependent on the efficiency of its transport system to move labor, consumers and freight between multiple origins and destinations. Increasing productivity is a very important challenge for Russia. Then, putting productivity as a priority in an architectural project will be a very good perspective. Among the main priorities regarding transport issues, we may quote traffic congestion, parking difficulties, public transport- inadequacy or lack, difficulties for non-motorized transport.

This is a main point because those transportation problems may become worse if we increase the size of the city. Indeed, the larger the city, the greater its complexity and the possibility for disruptions. That is why this more complex urban structure requires to be effectively managed. It means creating sufficient parking facilities and different kinds of public transport (metro, bus, trams). The main challenge is to link

147 GREATER MOSCOW – THE KEYS TO SUCCESS up the old part of Moscow to the soon-to-be new part of Moscow effectively by extending several metro lines and possibly creating an express line from the center of “old Moscow” to the center of “new Moscow”. Indeed, one of the major problem for dynamic capitals’ employees is longer and longer commutation which leads to social problems and lack of productivity at the workplace. But circulation within the new part of Moscow should not be put apart. Efficient circulation within the new part of Moscow is a condition for its success. In order to answer this necessity, some tram lines, for example, should be built within the new Moscow. This requires less construction work than building the metro and is less time-consuming for shorter rides, if we take into consideration the deepness of Moscow’s metro in which you spend a lot of time to reach the metro wagon.

Lastly, it is obvious that the number of car owners in Moscow will increase in the coming years. That is why roads facilities conceived to prevent congestion problems will be welcomed by a majority of Moscow’s inhabitants.

3 - Thinking about the space organization (urbanism)

From a social point of view, it would be devastating to construct only company premises. Let us take the example of La Defense in Paris. In La Defense, there are some shopping malls and shops, restaurants. But still most of the space is dedicated to corporation premises. This led to security problems, as well as a depressing feeling for employees which work in a dehumanized place.

Therefore, there is the necessity to think about the space organization. Of course, it is interesting to accumulate premises in a specific place in order not to lose public space or in order to save time for people working there. However, it may create constriction for employees and it is interesting to create new space disposal which may people work and live better. We may refer to the example of Tokyo where everything is intense. Since Russia is very different from Japan because there is a lot

148 GREATER MOSCOW – THE KEYS TO SUCCESS if space at disposal, Moscow’s new part should not be too intense. This would also enable to avoid transportation problems evoked previously.

The chance here is that it is possible to think of this new part as a whole. The city will not sprawl randomly just by the gradual addition of new buildings around it without any thinking about the global coherence. Then, the architects have to worry about the coherence and harmony of the new part. It means they have to look for complementarities, for free space, for circulation facilities on a large scale which is not an easy task.

A useful tool is to build some scale models because it is important to be able to visualize the project as a whole. Of course, nowadays, some software is very helpful for city planning purposes.

Lastly, in a modernized city of the 21st century, I think it is important to free up space for green ways and pedestrian ways. Indeed, this is absolutely not the case in the current part of Moscow, where the cars come first. Indeed, a city is, above all, a place where people live, move around, and interact. The role of space organization is to make sure they can interact better so that it has positive economic and social consequences.

4 - Trying new architectural models

Moscow’s architecture reflects a lot communist ideology. Red Square and the Kremlin are the historical footprints of tsar apogee. Indeed, the buildings remain and are very powerful windows for politicians. The new part should reflect Moscow’s future. The idea of creating a competition among many architects’ offices, such as the one launched in Paris for the “Grand Paris”, has been taken into consideration and accepted by the Russian government. This step in the project seems to me to be of paramount importance. Indeed, it enables us to have ideas from foreign architects which have realized projects in other big capitals and which are aware of the 149 GREATER MOSCOW – THE KEYS TO SUCCESS challenges that big cities are facing. Moreover, those architects’ offices often complete a diagnosis of the problem that the city is facing in order to give their conclusions and their proposal, which are interesting for the authorities. Of course, Russian architects should lead the discussion and be involved, because they know Russian architectural traditions. Furthermore, I see as a priority that cultural idiosyncrasies appear in architecture which is a hard challenge because of the current tendency to build standard buildings which are conforming to a globalized image. That is why I think buildings could, for example, contain a reference to traditional orthodox churches, or to local Russian features in general.

Thus, Moscow is a window of Russia for the entire world. Like many other cities, Moscow has to innovate and exhibit new forms of architecture. We may refer to China, which is also a part of the BRIC countries (Brazil, Russia, India, and China). China is committed into a lot of innovative architectural projects which will enhance its image and reputation. For instance, China’s projects are building a new in Shenzhen and a big bridge between Macao and Hong Kong. This is relevant because China’s reputation was to be world’s workshop and imitator. Now it is becoming an example of innovation. On the contrary, Russia’s reputation is tarnished because it is said to be a non-innovative country which is not able and willing to modernize itself.

Lastly, relying on new and innovative architectural models which include cultural Russian references may increase the possibility to attract funds to realize the project, as well as tourists. Indeed, tourists are really interested to see the achievement of famous architects. Big cities give those architect’s offices the possibility to achieve unique projects.

5 –Energy-saving buildings

Russia is one of the main countries responsible for greenhouse gas emissions. Russia ratified the Kyoto protocol, but it was not an environmental-friendly decision,

150 GREATER MOSCOW – THE KEYS TO SUCCESS but rather a political decision in order to have European support to join the World Trade Organisation (WTO). Constructing energy saving buildings would be a good opportunity to show to the world that Russia is engaged to put forward environmental-friendly projects and enhance its image.

Even if Russia does not have the same energy problem as Europe since it owns, and does not lack, natural resources such as gas and oil, it would be positive for Russia to commit into this kind of project which stays in its skills’ sphere. Indeed, natural resources and physics are strengths of Russia.

What are the features of energy-saving buildings? They are well-insulated buildings. Passive solar building design allows buildings to harness the energy of the sun efficiently without the use of any active solar mechanisms such as photovoltaic cells, or solar hot water panels. Windows are placed to maximize the input of heat- creating light while minimizing the loss of heat through glass, a poor insulator. In the northern hemisphere, this usually involves installing a large number of south-facing windows to collect direct sun and severely restricting the number of north-facing windows. Deciduous trees are often planted in front of windows to block excessive sun in summer with their leaves but allow light through in winter when their leaves fall off.

6 - Communicating about the project

Russian tradition does not put forward communication. Russian may have inherited this feature from socialist times. However, it is very important to promote this project for its success. Indeed, this could enable to attract more funds and to gain support from Russian people. We must point out that this kind of project is often perceived as very expensive by the population which is suffering unemployment, or low wages, and does not want the public’s money to be wasted. The government

151 GREATER MOSCOW – THE KEYS TO SUCCESS should show the positive consequence of such a project so that people subscribe to this project.

7 –Waste management

Waste takes the form of spent, or useless, materials generated from households and businesses, construction and demolition processes, and manufacturing and agricultural industries. Waste management is not the strength of Russia. Though, we must say that it is a challenge that most of developed countries have difficulties to face. While building a new part of Moscow, this concern should be largely taken into account in the way the city is built. Some facilities for waste that this new part of Moscow will generate in large amounts should be incorporated in the project.

8 - Creating cultural places

The project should include some cultural places, so that people working in this new part can have an easy access to culture (library, theatre, book shops, cafés). This is also a means to make the new part more dynamic because the place is meant to be modern. This would also enable the place not to be lifeless on the weekend and to be attractive for all Moscow’s inhabitants. Lastly, this may promote Russian culture for foreign businessmen or tourists coming to this new part of Moscow.

Bibliography:

1. http://wikimapia.org/6502151/Moscow-s-Planned-Big-City-Development

2. http://www.liberation.fr/monde/0101182152-moscou-le-grand-chantier-de-la- nouvelle-russie-du-centre-a-la-peripherie-les-projets-d-urbanisme-ont-mis-la- capitale-sens-dessus-dessous

3. http://fr.rian.ru/society/20110802/190341068.html

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4. http://www.lespectacledumonde.fr/index.php?option=com_content&view=artic le&id=169:dossier557&catid=29:dossier&Itemid=55

5. http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/ch6c4en.html

6. http://en.wikipedia.org/wiki/Sustainable_architecture

153 GREATER MOSCOW – THE KEYS TO SUCCESS

Bertrand Garrandaux

Moscow is currently the most populous European city (11.5 million in 2010) and one of the largest (1081km2). Its economic role is essential in Russia: 25% of the Russian GDP, but Moscow is also a cultural and political leader in Russia.

For a few years, the project to create a « great Moscow » has been proposed, especially by Putin. The goal would be to extend Moscow to form a capital federal district. Indeed, Moscow is increasingly populous and needs space, congestion is also important: “ Moscow, as we know, has long been suffocating within its current city limits” Putin said in 2011.

Fifty-one percent of the Muscovites surveyed by the Russian Public Opinion Study Center (VTsIOM) said they like the idea of forming a capital federal district. However, this project is very ambitious and will have to meet several key factors to succeed.

1. The economic issue Moreover, Russian leaders would like Moscow to be able to compete with others global cities such as London or Shanghai. Therefore, gaining a great financial district is essential to vie with the City of London or Wall Street in New York.

Indeed, Moscow has been transformed a lot during the communist area. That is why it needs to be changed again to be more adapted to the new liberal world.

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Moscow leaders seem to take Kuala Lumpur (Malaysian capital) as an example. Indeed, a new city has been built next to Kuala Lumpur for the administrative offices. Medvedev clearly wants to do the same: many financial and administrative activities would be moved out of the current Moscow center to be set in a place which is uninhabited for the moment.

This new concentration of offices out of the city center will be more economical and will preserve living conditions in Moscow. Therefore, this development planning is very important. Moscow also wants to tackle its image of « soviet style city ». Creating a city center with less offices, administration and, as a consequence, congestion is meaningful for Moscow and, of course, also for Russia. That is why Putin and Medvedev are carefully watching this project.

2. The transport system The new Moscow is supposed to be more than twice as large as the Moscow we know today (about 1500km2 added). That is why the new transport system will be a main issue. The new federal district will be built in a current no man’s land: between 100 000 and 500 000 people will live there. As a modern city, the new Moscow will need to integrate the Financial and administrative district to the « old Moscow ». The project aims to modernize and extend Moscow, not to create two different cities.

 Metro The metro network will be extended in the new federal district but new metro lines, or extension of lines, are also planned in the area of the current Moscow. In 2006 Moscow Metro announced plans for a second transfer contour, which would build a line from Delovoy Tsentr to Savyolovskaya on a large diameter; this would in the future become enclosed into a ring, one to three stations along the radius.

Indeed the “New Moscow” should not only be the extension, it has to be also the modernization of the current Moscow. 155 GREATER MOSCOW – THE KEYS TO SUCCESS

 Airport In the great Moscow, airports will be more integrated in the city. Indeed, Vnukovo airport will not be as far as it is now from the city. This airport will be very convenient for the federal district. This is an obvious advantage for a city, which wants to become one of the best business city.

 Highways Congestion is indeed one of the current issues of Moscow, that is why Moscow needs to be larger, but it also needs to be better organized for cars.

The new part of Moscow is planned to be built between the highways Varchavski and Kiïevski. The Highway Kalouzshski will also cross the federal district. This highway could achieve a central position in the new Moscow. The architects take Astana, the new capital of Kazakhstan, as a model to organize the city around a central highway.

Therefore, the mobility of people in the future Moscow is a big challenge and a priority to turn this project into a success. Further, the modernization of the transport system in Moscow is not only developing this system in the new area, in fact it is also improving the current system in the current Moscow.

Thus, many car parks will be built in Moscow including multi level automatic car park to decrease congestion. The authorities also want to do like in London : introducing paid access for cars to the city center. This measure has been quite efficient in the British capital.

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3. Real Estate « We will need between 25 and 50 years to achieve this project if we want it to be really a sustainable success » said Pavel Andreïev, the leader of the think tank « Mosproekt 2 ».

45 millions square meters of offices and 60 millions square meters of houses will be built in Moscow. We can, of course, be afraid of a speculative activity. The price of the square meter in Moscow is already predicted to increase by 20% or 30%. Therefore, the role of the Russian State will be essential. Indeed the authorities will have to prevent such a speculation to enable people, who will be needed in the federal district, to live in it. The price of real estate is already one of the higher in the world (more than in London, and much more than in Paris). The control of this price will definitively be a key factor of the project.

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The new Moscow is also an opportunity to architect to be innovative by designing a city of the future. In the past, such projects have always given a chance to architects to radically transform a city and even sometimes the very notion of “city”. For instance, Haussman’s work in Paris was a sweeping change in the end of XIXth century.

Since 2008, there have been more people living in cities than in countryside or villages. The notion of city is quickly evolving and plays an important role in the globalization. So, Moscow is likely to try to compete with Asian cities to be a model of city of the XXIst century.

4. The costs of the project The costs will be huge, especially for the administrative area. The experts argue that between 12 and 15 square meters will be needed for each civil servant. Construction and equipment of such square meter will cost more than 90 000 rubles (1500 dollars) according to Konstantin Kovalev, director of the agency Blackwood.

These costs are obviously one of the main issues of the Great Moscow. The public debt will fund most of the expenses.

Many people are afraid of an increasing of taxes. Indeed, we can think that the Russian State will increase global taxes to be able to fund the expensive project.

Nevertheless, the Russian authorities could avoid taxing people from Moscow. Indeed, they could follow the example of the French project for the « Great Paris ». Several measures could be used in the new Moscow project:

- Many companies will be attracted by the federal district, they could be taxed more to fund the environment they benefit from.

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- Transport companies will make much more money. Indeed the enlargement of Moscow will be a huge opportunity for such companies. The State could tax these sales.

We can understand that companies and businesses, which benefit from the enlargement of Moscow, will help the State to fund it.

5. The administrative issue

The administrative status of the area of the new Moscow is not yet decided. The city of Moscow should integrate 7,234 hectares of land, which is currently administered by the Moscow region to its territory, and the region will incorporate 3,284 hectares of the city’s land. But the Federation Council has still to deliberate about that decision.

6. The social issue

Social cohesion is challenge that a global city has to take up. This factor is directly related with the issue of the real estate cost. Indeed, many modern cities are experiencing social problems. A quick growth of Moscow will have to be socially well managed to avoid creating a federal districts that would be totally apart of the current Moscow.

7. The political issue

The project of the Great Moscow needs time. Therefore, it has been led and will be lead by different presidents, at least Putin and Medvedev. However, the management and the achievement of this project is a strong symbol. That is why, Putin, if he is president again, will have to take into account what the former president did. Moreover, this project is also under the control of the mayor of Moscow. The cooperation between local power and national power will be a key success. Recent

159 GREATER MOSCOW – THE KEYS TO SUCCESS events show indeed that it will not be easy: Medvedev dismissed the former mayor of Moscow, Iouri Mikhaïlovich Loujkov, in June 2010.

8. The environmental issue The city of the future needs to meet environmental efficient. Environment has not been a priority in Russia by now. Thus, this factor is not likely to be met. However, tackling congestion is eco-friendly even if it is not the first purpose of Russian authorities, and many parks already exist in Moscow. However, that will not be enough. The big issue is about the buildings: they have to be well insulated to reduce the energy consuming.

Sources:

1. http://www.youtube.com/watch?v=SEmfx8ffVes (RT program),

2. www.rt.com

3. http://www.liberation.fr/monde/0101182152-moscou-le-grand-chantier-de-la- nouvelle-russie-du-centre-a-la-peripherie-les-projets-d-urbanisme-ont-mis-la- capitale-sens-dessus-dessous

4. http://larussiedaujourdhui.fr/articles/2011/08/08/le_casse- tete_du_grand_moscou_12574.html

5. http://en.rian.ru/russia/20110617/164674826.html

6. http://rt.com/politics/press/rossijskaya-gazeta/moscow-extension-plans/en/

160 GREATER MOSCOW – THE KEYS TO SUCCESS

Christina Yao Introduction

Moscow is the most populous city of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent. Besides, it is the 6th largest city in the world. Thus, the authorities have the big project to extend the city. The president’s objective is to improve the development of the Moscovite megapolis and to make the citizen’s life better. Besides, with the Great Moscow, they want to make the city to be an international urban center, a center of economic and political decision. However, this big modification of the city tackles some issues like urban, social, environmental and the financial issue.

I) Financial issue

The project of the great Moscow involves a big budget. A financial plan for the different expenses should be made. The authorities have to find the funds from public resources, or investors. As for the public resources, the state can find money from the taxes they collect, or from the fines. Partnership between the state and the private sector is also a solution. The success of the project would depend on the authorities’ wealth to finance the different housing, transport and other constructions. In long term though, the investment costs can be amortized. But when we are talking about financial capacity and involvement of the authorities’ team in power, there might be some corruption. This kind of problem is hard to control, but it is still possible to limit it.

161 GREATER MOSCOW – THE KEYS TO SUCCESS

II) Urban issue

The project of expanding Moscow city means that the whole architecture and landscape of the city will change. Nowadays, we can see that the city is very different from typical European, or American, cities. The architecture still reminds us of the communist time. We can clearly see the difference in Moscow’s city architecture compared to other big cities. When we observe the structure of its Central Business District, there is no typical structure of a financial center. In Shanghai, London or Chicago, we can say there is an architectural and social coherence. However, in Moscow, we can tell that the city is still fighting to keep some Russian architecture.

So it is paradoxical, because while the city is becoming more and more international, the city must show its signs typical Russian landscape to reaffirm some national traditions. For example, in 1997 when they built the Colossus monument to Peter the Great on an island in the Moscow River facing the Kremlin, it was an attempt to mix the new and old. Another symbolic event was the reconstruction in the mid-90s of the massive Church of the Saviour on the banks of the Moscow River. Public areas are also invested by the signs of Russianness traditional: green spaces are equipped with wooden children's games imitating the traditional style of the Russian countryside. So the project of the Great Moscow will need to deal with this issue of modernization and Russian conservative architecture.

III) Social issue

Moscow will grow bigger, which means people will have to move and there will be a new distribution of the demography. In the newly created living area, the people who are going to live there should be able to have all the facilities and be connected to the center. The facilities like schools, kindergarten, retirement houses, health centers, cultural centers, administrative office and transport should be designed to make the citizens’ life better and easier. As for housing, different kind of houses 162 GREATER MOSCOW – THE KEYS TO SUCCESS should be built according to the family’s size and living standard. The project of the Great Moscow can help to decrease the social inequality and to bring down the violence and insecurity in the city. The Great Moscow is also a great project for the employment. It will boost employment as, with all the new activities that are going to be created, new jobs are going to be built as well. So, the city will have a larger population and more employed people. This will help the economy.

IV) Environmental issue

The growth of Moscow city will change the environment and the authorities should manage the environmental changes. When they will start building new buildings and new roads, there will be less green spaces. Nature will be damaged. So a study should be made before the big construction. As some spaces need to be protected and constructions cannot be undertaken in some areas. Besides, after the construction of all the facilities and the transport infrastructure, some pollution issues will be tackled. There will be more pollution from the gas emitted and the smoke from the new plants. Besides, the energy consumption will be higher with the increase of housing and every other facility. Thus, a sustainable energy policy should be set up in order to preserve the environment. As the city becomes more and more modern, some spaces like parks should be built to keep the balance. In New York City, they manage to do it pretty well with the Central Park which is located in the heart of the city and occupied 341 hectares.

The political issue

The project of Greater Moscow should take into account of who is going to be in charge of what: how the planning of this event is going to be managed. Should the state should be in charge, or just the authorities of Moscow? Besides, private partners could be in charge as well. The best solution would be that the authorities of Moscow should take charge of the project and decide what are the different services needed. 163 GREATER MOSCOW – THE KEYS TO SUCCESS

The economical issue

The project of Greater Moscow aims to give more political, social, economical and international power to the city. As a matter of fact, when the city will grow bigger, there will be more economic activities and more people working. So with this increase, the economical activity of Moscow can be boosted and thus the city will become more attractive economically.

The transport issue

The transport issue is one key of the success of the Greater Moscow project. When the city will grow bigger, the most important challenge would be to be able to still connect every part of the city and to bring down the notion of distance. Thus, the decision of how the road should be designed and how the city is going to be linked is important.

The cultural issue

Moscow will grow bigger and become more modern. However, the cultural aspect of the city should be preserved and be valued, so that the city will keep its spirit.

Bibliography:

1. Olga Vendina, « Le nouveau visage de Moscou et la contribution de la municipalité à la modernisation de la ville », Cybergeo : European Journal of Geography [Online]

2. Bayou C. (2002), « Pierre le Grand statufié », Regard sur l'Est, n° 30 Taylor P. J. (2000), «World Cities and territorial states under conditions of contemporary globalization », Political Geography, vol. 19 (1), p. 5-32

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3. Eckert D. (2001), "Moscou, capitale russe, métropole mondiale?", in Portraits de grandes villes: Société - Pouvoirs - Territoires, Jalabert G. (coord.), Toulouse: Presses Universitaires du Mirail, coll. Villes et Territoires, p. 161- 185.

165 GREATER MOSCOW – THE KEYS TO SUCCESS

Edouard Lesieur

Introduction

Greater Moscow is a government project which is supposed to extend the limits of current Moscow. Recently, City Hall decided to cease land sales on territories that are supposed to become part of greater Moscow. The official in the Mayor's office said deals involving land annexed by the capital will be restricted until the city has reserved the plots it needs. However, the concept for the expanded capital has not been officially approved. New administrative borders of Moscow are still to be defined, but the decision should be taken by the end of the year. At the time being the limits of Moscow are located within Moscow’s automobile ring road called the MKAD. Moscow is the biggest city in Europe with 11.5 million inhabitants and faces huge issues particularly regarding transportation, office and housing markets. For me, the main priorities of Greater Moscow will be:

1) Construction of new office buildings. There is big lack of office facilities in Moscow, even if the construction of the business district Moscow city will partly alleviate this lack. However, this project is not finished yet and suffered a lot from financial crisis, with many building projects like the Russian Federation Tower being postponed, or cancelled. Moreover, the parking areas are not sufficient. So, new building offices should be built, especially outside of Moscow. 2) Transfer of governmental activities (main point).Greater Moscow will have to enable the transfer of governmental activities that are currently located in the center of Moscow. Parliamentarian activities are also concerned. Indeed, the

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Russian government decided to freeze lands for the construction of governmental and parliamentarian centers. Actually, this is one of the main projects of Greater Moscow. As everybody knows, governmental activities are concentrated inside the Kremlin and around it: that is to say in the very heart of Moscow. Concerning the Russian Parliament, the Duma is not far from the Kremlin. This concentration of political power creates important traffic problems because of the car convoys of Members of Parliament and ministers that are priority. So the transfer of these activities at least partly could relieve the center. 3) Extension of Moscow’s metro. The underground system will also have to be extended as Moscow’s metro is already the second busiest in the world after Tokyo’s, transporting about 2.35 billion people every year, so it is huge. It should provide a good alternative to cars which is actually one of the biggest problems of Moscow (see point 4).The underground system of Moscow is underfunded and overstretched. New lines must be built and a fast-one directly connected to the business centers and housing zones. 4) On the major topic is also to reduce the traffic congestion (main point) of Moscow. Moscow is choking: there are over 2.6 million cars in the city on a daily basis. Indeed, it has become priority to the government to solve that problem. Reckless drivers often disobey traffic rules, helping create an average of 1,000 accidents a day. Notoriously-corrupted traffic police often spend their time seeking bribes, instead of enforcing regulations. Actually, there is no driving culture in Russia and everybody is honking all the time. Part of the problem is that a lot of people, who cannot find work outside Moscow, drive into the city. It creates an unmanageable stream of cars every day. Consequently, commuters spend hours in traffic every day. Just travelling to appointments within the city's center can often take over an hour. So Greater

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Moscow will require the construction of new roads according to an urban development plan well defined. This goes hand in hand with point 2: that is to say transferring activities outside of Moscow to reduce congestion in the center. Construction of new roads should be encouraged. Currently, a Fourth Ring freeway (in addition to Moscow Automobile Ring Road, Garden Ring and the Third Ring) has been designed and is being built around Moscow. It is to be completed by 2012 and will have total length of 61 kilometers. 5) One of the main priorities of Greater Moscow will be to develop the housing market (main point) of Moscow. As everybody knows, the real estate prices in Moscow are incredibly high because of the lack of supply and Moscow is the most expensive city in Europe, after London, concerning real estate. So, many people cannot afford to live in Moscow and have to spend many hours in public transportation, or on the road to reach the center of Moscow, that is already paralyzed. The extension of Moscow must enable the construction of new housing zones well-linked to the center. According to the news, the land to be annexed by Moscow for the city expansion includes 1,247 hectares of land to be developed into residential housing. Morton, a development group is currently building a residential complex on 470,000 square meters in Solntsevo, a town just outside the MKAD. But, according to the chairman, the company has now reached an agreement for property in Leninsky district, designating 1 million square meters for construction. 6) To be successful the project will have to avoid corruption and bribery (main point). It is not a secret that corruption in Moscow is widespread particularly in construction industry. Moscow is rumoured to be plagued by an elaborate system of kickbacks and bribes which, of course, would partly explain the high- price of real estate in Moscow. The lay-off of Luzkhov by President Medvedev was a strong signal of struggle against corruption and that no one is

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untouchable. Of course, Luzhkov is not the only one responsible so there should be a complete investigation on every official in Moscow and a tight control of public funds.

7) Promotion of sustainable development. Moscow is one of the most polluted cities in Europe, causing some breathing problems. Citizens and companies do not have energy-saving habits and consume a lot more than Western citizen and companies. Of course, it is mostly explained by the abundance and cheap cost of energy. However, Greater Moscow will have to promote sustainable houses that consume less energy and tax more polluting and companies, or force them to adopt environmental habits, or to leave the city. Polluting cars should also be taxed. This will be necessary to make Moscow less polluted. 8) A competent managerial team should be chosen concerning public and private activities. The team in charge will have to be flexible and good connections. They will be in charge of promoting the project and implementing it. They must have enough power in the government to raise funds and implement public new strategies. They should also resort to the skill of consulting companies.

Sources:

1. www.themoscowtimes.com

2. www.opendemocracy.net/article/openrussia/

3. www.metro-magazine.com

4. http://moscow.ru

5. http://english.ruvr.ru

6. http://www.respondanet.com 169 GREATER MOSCOW – THE KEYS TO SUCCESS

170 GREATER MOSCOW – THE KEYS TO SUCCESS

Fedor Agadzhanyan

Introduction

The Moscow expansion has become one of the main and yet very debatable decisions of the City Hall in 2011. The territory of Moscow will be enlarged by almost two and half times (see picture 1). This will be done with the help of the neighboring areas of Moscow region. 144 thousand hectares will be cut out of the region and reunited with Moscow which will only add some 250 thousand people (which undoubtedly is a very modest amount, taking into account that the population in the towns located on the boundaries of the area in question more than offsets this number). That in turn will make the capital rank 7, up from current 40 in the world hierarchy of agglomerations. According to Mr. Sobyanin (current mayor of Moscow) this project possesses the following features:

 Construction of educational establishments as well as homes for people to live in;  Administrative and business construction;  The project is long-term and will last not less than 1 year.

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Picture 1. Territory to be added to Moscow

I will try to explain the key points about the success of greater Moscow. In fact, there are a lot of them, and the article is not intended to jot down all possible reasons, but to stress the main ones. Below are the key points to success listed in the order of importance:

1. Decentralization; 2. Problems of the city need solutions; 3. Beneficiaries; 4. Investments.

From the first glance, it may seem that some of the points listed above are close in essence, but it should not confuse the reader, who will eventually come to distinguish between the seeming similarities.

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Among other key points I would also like to include the countermeasures directed towards nonbelievers and those who are not quite interested in the expansion. Here they are:

1. The owners’ rights will not be violated 2. Thorough study by specialists in town building 3. Public discussions 4. A lot of information gathered.

One of the main aims of the Government of Moscow was to decentralize the city, making it more resilient to the needs of the general population. This will be covered in the subsection that follows.

Decentralization

By pulling Moscow further in the SW direction, authorities were trying to diminish the dependence of the city from now-outdated system of transportation, once called an octopus for the resemblance to that animal of its transportation routes. Indeed, if we took a closer look at e.g. the underground system of Moscow (see picture 2) we can see that from the encircled center “tentacles” are rambling all around. Such kind of system is called monocentric. It is an urban agglomeration which is made up of one core. There are two intrinsic characteristic to this kind of system. The first is the presence of super city. Nearby territories have very strong connection with the core; it is worth adding that such a city is an administrative center of high level and is capable of forming agglomerations, judging both by size and economic potential. The second is territorial and industrial components, which highlight the importance of the city in terms of superposition of a variety of functions that normally are performed by several territorial formations. This kind of system is considered to be outdated because does not take into account modern developments in town building (we will return to this question later on in this work). This puts 173 GREATER MOSCOW – THE KEYS TO SUCCESS policymakers at a disadvantageous position while they are speaking here and there about modernization and making Moscow one of the most influential business centers in the world.

Picture 2. The scheme of underground rapid transit system of Moscow

That is why it comes as no surprise that the authorities made their mind to take a piece of land from its nearby friend. Its inevitability has just come recently. Plans for expansion were in the air for many years, but grounds for the implementation of so ambitious and resourceful project were not as stable as they must have been. For example we can think of an endeavor by then-Mayor Yuri Luzhkov to make a district in the region for the families of professional military servicemen in some parts of Moscow region. This attempt fell short, as the parliament of Moscow did not back the decision. Another example is that of the end of 2010. Then, analysts and politicians were fiercely debating on the topic of integration of Moscow and Moscow region into one separate agglomeration. Reasons for that were quite plausible, but ambiguous:

 Commuting issues (there are a lot of people commuting on a daily basis for work and leisure); 174 GREATER MOSCOW – THE KEYS TO SUCCESS

 Better integration.

Despite that, the talks soon abated and finally the idea ended up in just mere conventional statements in some media. Besides political giants, as represented by President Dmitry Medvedev and Prime-minister Vladimir Putin, emphasized that there was taken “a joint decision not to bring the concept of merger of the subjects anymore”. However authorities, as we can see now, returned to the idea of unitization but on the lower-scale. As it was from the very beginning backed by the president, it is now one of the most prioritized points in an agenda of the City Hall.

As the problems were piling up from year to year, the population in Moscow was becoming increasingly frustrated. The section that follows will tell about such problems.

Problems of the city should be solved

The quick development of cities in the last years resulted in monocentric model becoming outdated. The city has become disproportionately large and now it takes a great amount of time to travel from one part of Moscow to another. To complicate things further, this is done every day by a lot of people not only by those who live in Moscow, but also by those that commute from the region. It was once calculated that average Russian spends 2 days per month idle in the traffic jams. It is unreasonable to have your personal car – the thing which was dreamed about some 30-40 years ago. Devastating in nature, overcrowded in fact, transportation routes leave people without much health and hopes about their future. They are now having those gloomy faces that are becoming a notorious feature which are pointed at by foreigners who are coming to Moscow for recreational purposes. For a long period (until the end of XX century), the only solution for this transportation problem was an automobile. However, with time, it has become one of the main problems in lives of Muscovites. The public transport system designed to meet the needs of old, soviet Moscow (which 175 GREATER MOSCOW – THE KEYS TO SUCCESS was not as saturated) is now having troubles to match the growing demands. Widening of roads is no solution, as more and more buildings bearing architectural and historical value will be victimized, and few parks and public places be saved. In addition, the inability to digest harmful gases and smog in the atmosphere (among other reasons) causes the quality of life to fall.

However, this is not the problem of Moscow only. It is a common trait of many large cities around the world. In those cities, different methods to curb the deplorable state of things were used. One of the most popular - and perhaps the most straightforward - ways to deal is to improve transportation system, limit traffic in the center of the city, have parking lots ready and convenient to be used, etc. London, Barcelona and many other large cities are successful in changing, but will it last for longer? Expansion with the aim to make the city polycentric can do. This is what Moscow authorities are willing to.

Winners and lobbyists

Perhaps one of the main beneficiaries of the project would be major landlords in the area in question e.g. some Russian banks, corporations, and wealthy individuals. It is said that the parties listed above were in fact the lobbyists of expansion. Construction firms will gain as well. Billions of rubles from budget are “waiting” for contractors to use. Schools, roads, bridges, socially-oriented objects, infrastructure: all these imply heavy investments and creation of new working places with corresponding above-average compensations. It is only a matter of time when the Moscow underground will be within the reach of ordinary commuters.

It is worth mentioning that benefits and discounts applicable in the capital will be inherited by the local population. This should not be a particular problem for authorities. The newly-acquired area has a relatively small population (if compared to an average indicator of density) of less than 250,000. 176 GREATER MOSCOW – THE KEYS TO SUCCESS

Other positive and negative features

However in line with positive sides of expansion there are also negative ones. Taking into account the amount of work to be done, we should think of corruption taking place. In the light of soon-to-be made amendments in the tax code concerning the valuation of real property (as a result of expansion) we will definitely have a combinational increase in price per square meter and we may think of tensions arising in the regions. The recent examples of how authorities treat people who “should and must” free space for constructions sights may also raise concerns. This is not a complete list of negative features.

On the other hand in an interview Mrs. Sergunina - the head of the property department of Moscow- stressed that the owners’ rights will not be violated, because this decision to broaden Moscow was a logical consequence of a long-lasting thorough study by specialists in town building, where all – even subtle – details were considered and reconsidered with the local population. Moreover extensive public debates were made against and in favor of “takeover”, which in turn produced a lot of information, depositing fresh ideas to make everything smoother.

Bibliography

1. http://ru.wikipedia.org – the world encyclopedia 2. http://rbc.ru- RosBusinessConsulting, the news site devoted to business and public coverage of the most important events

177 GREATER MOSCOW – THE KEYS TO SUCCESS

Gery Moulas

Factors to make the project successful:

– Development of road infrastructure – Development and extension of public transport network – Creation of business centers outside downtown Moscow or economic decentralization

– Sufficient financial resources

– Development of public infrastructure such as schools and hospitals

– Competent managerial team in charge from both the government side and the private sector

– Transparent operations to avoid corruption – Manage the administrative fusion between Moscow and the new regions and move administration offices outside the center

1/ Development of road infrastructure Nikolai Gogol once said: “Russia has two problems, fools and roads”. I don’t know for the fools, but for the roads, the writer would still be right nowadays.

Moscow has a dramatic problem of slow traffic and traffic jams: not only during the rush hours, but all day long. This situation engenders stress, time wasting, economic losses and poor quality of life. No wonder Dmitri Medvedev identified this problem as a top priority.

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No matter how many interchanges are built, how much the roads are widened, the speed traffic has been slowing down every year in Moscow.

In New York, there are 910 cars per 1,000 residents, and just 340 cars per 1,000 residents in Moscow. Contrary to the general belief, it is not the number of cars which create the problem, but the centralization of the city and the bad space management.

Some 1.25 million people commute to Moscow every day from neighboring regions. Just over 2 million jobs, or 38%, are concentrated on 6.5% of the city territory, in a five kilometer radius from the Kremlin. Every morning, a massive tide of people enters the "historic" city centre, and in the evening the tide goes out beyond the Garden ring. The metro and above-ground transport is just as overcrowded at these times. You can spend up to five hours in Moscow sitting in traffic jams these days.

If the project of expansion does not take into account the road problem, it is going to worsen the traffic current situation.

Not only more roads are to be built and widened, but also business centers have to be initiated in the suburbs and the government administration has to move out of the center of Moscow. (See the point 4/ and 8/)

Another way to alleviate the traffic issue in Moscow is to develop and expand the public transport. (See the next point)

2/ Development and extension of public transport network

Russia boasts some of the most highly-structured, mass-transit public transport network in the world today. Daily handling capacity of Moscow underground, which is the most popular type of transport in the capital city, is over 9.5 million passengers.

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Surface transport (buses, trolleybuses, trams), with length of lines over 2000 km, carries over 5.5 million of passengers per day.

Moscow’s Metro is beginning an expansion and upgrade, with more than 40 km and 20 new stations expected to be built in the next five years

This expansion is expected to tackle the problem of public transport in the current Moscow suburbs. However, this is not going to be enough to support the Bolchaya Moskva project. Subway lines have to be created to link the different regions of Moscow, as the RER in Paris.

In spite of the poor quality of the traffic, Muscovites have no choice but to take surface transports to move from the suburbs to the center.

In my opinion, public transport must be developed especially in direction of the business centers and new dynamic areas outside the center. The main objective is to make these areas more attractive and make possible economic and demographic growth.

This strategy is a part of the decentralization project which is compulsory to implement for the sake of the Bolchaya Moskva project.

Such a public transport expansion should make the surface traffic more fluid (See point 1/), create access to the new business centers, allowing them to grow (See point 4/).

3/ Creation of business centers outside downtown Moscow or economic decentralization

Most of Moscow business is concentrated downtown in a small area compared with the size of Moscow and its population. New business centers must be developed outside this area, as the center of the city is overcrowded and congested.

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4/ Sufficient financial resources

Long term and huge investments are required to realize this project. The government has to invest a lot in infrastructure and encourage private businesses to set up in the new business areas.

5/ Development of public infrastructure such as schools and hospitals

The government will have to invest in infrastructure in the new Moscow regions to attract people to live there. It is required at least to create more schools and hospitals. Then, invest in parks, in sport infrastructure and leisure activities.

6/ Competent managerial team in charge from both the government side and the private sector

The team in charge will have to have multiple competences and contacts. They must have enough power in the government to raise funds and implement public new strategies. I suggest that they call upon the skill of expert advisory companies.

7/ Transparent operations to avoid corruption

A 2008 nationwide poll by the Public Opinion Foundation showed that Moscow is regarded as the most corrupt city in Russia, with 42 percent of Moscow residents polled admitting they had given bribes to public officials.

The anti-corruption watchdog Transparency International ranks Russia 147th out of 180 in its global corruption index.

President Dmitry Medvedev announced a drive against corruption earlier this year — but with little visible result.

Road construction, for example, proceeds slowly because the price is exorbitant compared to other countries. Construction of Moscow's new, fourth ring road is 181 GREATER MOSCOW – THE KEYS TO SUCCESS expected to cost 7.4 billion rubles per kilometer, whereas road construction in China, the United States and Europe hovers between $3 million and $6 million per kilometer. City Hall said the high costs are due to the demolition of residential housing in areas adjacent to the new ring road. The city has budgeted 13 billion rubles for the demolition, with 25.5 billion rubles to be spent on the construction proper. This, however, still puts the cost of one kilometer at an exorbitant $209 million per kilometer.

Dealing with corruption will be a major issue to realize the expansion of Moscow. I suggest a total transparence of the allocation of the budgets and a permanent control.

8/ Manage the administrative fusion between Moscow and the new regions and move administration offices outside the center The last factor of success is to manage the fusion between Moscow and the new regions.

Russian President Dmitry Medvedev suggested earlier this year to expand Moscow at the expense of Moscow Region's territories to create a capital federal district and to transfer a significant part of government bodies beyond the existing boundaries of the city.

According to regulations of Moscow's authorities, the transitional period of annexing definite municipal territories must be no less than three years and no more than five years reckoned Moscow officials.

Under the project, the territory of the Russian capital may be enlarged by 720 hectares (1,779 acres) mostly expanding in the southwest into the current Moscow Region, annexing new territories between the Kievskoe and Varshavskoe highways.

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More than half of Muscovites support the idea of creating a new federal district and moving government agencies outside downtown Moscow, a survey by the All- Russia Public Opinion Center said.

The government must avoid internal tensions, conflicts and rivalry. It should proceed softly, with professionalism and with great care.

Finally, the public administration offices must be relocated. This would be a bold measure against Moscow congestion and space centralization that would have strong and fast positive effects.

Source:

1. www.themoscowtimes.com

2. www.opendemocracy.net/article/openrussia/

3. www.metro-magazine.com

4. http://moscow.ru

5. http://english.ruvr.ru

6. http://www.respondanet.com

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Marina Zhdanova

The mayor of Moscow, Sergey Sobyanin’s project of extension the capital borders, by adjoining the south- western vicinities of Moscow, is going to become the sensation of the year. According to the decision by Moscow and Moscow region legal structures with participation of Russian President Dmitry Medvedev, the area of Moscow is going to be extended 2,4 times, that is space of 144 thousands hectares. There will be “administrative and business entities headwork construction, and also construction of educational institutions and housing habitation». Sobyanin has also mentioned that it will take at least one year to develop the basic projects.

Even now, at the very beginning of the process, the project’s developers are facing a list of contradictions, that arise when working on the project issues (wide areas’ reclamation on the south-west of Moscow, relocating the official structures to those places and creating the financial centre of the country within the area in question) in more details.

What points should the authorities concentrate on in order to bring such a global reform to success? Here is the list of those ones having the major impact on the project’s efficiency.

1. Establishment and development of road and transportation and logistics system. Traffic issues.

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2. Non-admission of corruption to soar due to the project realization; strict control of budget distribution.

3. Increased attention to the ecological issues.

4. Social infrastructure development within the region.

5. Avoiding of opposition focuses appearance among the local population and due to «selected few»areas appearance in the nearest Moscow region.

6. Development of the strategy of private land buying out.

7. Approval of the list of organizations and state structures to be relocated; deciding on the new scheme of city administrative division.

8. Control of the land and real estate price raising and tax load of local population.

Let us look at the most important ones among the listed factors.

Establishment and development of road and transportation and logistics system.

Traffic issues.

One of the major targets for the project of Moscow borders south-east extension is deliverance from the historically-established, radial-circular (homocentric) transport network organization. Transition to a polycentric layout of the region and its transport system has to lead to an even distribution of the population and thus will solve the traffic problem in Moscow.

At present, radial highways from the whole Moscow region do systematically flow together to the capital centre. That makes it crucially overcrowded and unfit for comfortable commuting. The road space within the Sadovoye circle road is overflowing with citizens trying to reach a different part of Moscow through its centre

185 GREATER MOSCOW – THE KEYS TO SUCCESS and also with corporate business representatives and officials, commuting within the centre during working hours.

Part of Moscow’s population and official structures’ relocation to the separate administrative district and formation within its borders of the second business centre of the city will make the roads much more attractive for regular commuting.

The very first task in new territories development process is providing them with wide road and transport network that is not present in the region at the moment.

Until commuting both within the area in question, and in the direction of it, are attractive for drivers, there will be no shifts to better life, that are actually the major targets of the extension project. Those who live in Moscow now will not decide to change their place of abode they possess right now for a new one, far away from Moscow Circle Automobile Road, if unadapted for a comfortable life. Thus, there is no reason to wait for the city population concentration to come down. This segment will not also be opened up by business, required to provide local people with vacancies. Moreover, in case if those who live in a new-adjoined area will be continuing to travel to the historical center of the city during the rush hours, existing situation with traffic jams will become even worse.

A transport network development within the adjoined area is unthinkable without making corrections to priorities and terms of development for Moscow road and transport system as it is presented at the moment.

Non-admission of corruption to soar due to the project realization; strict control of budget distribution.

First in the list of those who are going to raise a large amount of money during the project realization are developing companies. It is quite obvious, because they are exactly those who will lead the second Moscow construction, with its own

186 GREATER MOSCOW – THE KEYS TO SUCCESS business and financial centers and residential areas. Contracts in the new area development will be paid from budget funds, while our Government is known not to economise a lot on such kinds of expenditures. Accommodation, roads, facilities construction will cost budget quite a huge sum of money, even leaving alone the announced project on construction of international financial center of global scale.

At the same time, chief executive of RRG consulting company Denis Kolokolnikov makes a forecast of office space price decrease in current Moscow outlying districts due to appearance of new districts creating strong competition.

There is a figure of the amount of money that is supposed to be spent on relocation each one official to work in a new administrative district. It may constitute up to $50 000 —100 000 (according to the Blackwood managing partner Konstantin Kovalyov). Such figures make us to realize clearly the scales of projected funds placement.

Developing companies’ benefits in this case are obvious, so they will do anything to win contracts on construction in this area. Experts expect corruption levels to soar, which is connected with competition among developers.

There was plenty of advice of how to decrease corruption level inside the state structures in Russia in recent years. There seems to be only one solution for probable problem of corruption rise due to Moscow extension project. This solution is centralized distribution of budget funds, intensified control on its flow rate by responsible and competent officers. This will decrease the level of unjustified increase in claimed prices for products and services, connected with construction. At the same time, it is extremely important to monitor not only the direction of budget money spending, but also the quality of services provided.

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During the project implementation, it is necessary to avoid bureaucratic structures’ accumulation within it. The key to the success is parallel involvement of both experienced state officials and energetic and creative young specialists with up- to-date ideas. This will also help to control the level of budget money spent on the project; a certain part of money saved may be spent on social issues.

Increased attention to the ecological issues.

Moscow has been slowly extending its borders historically and it was supposed to pay increased attention to the ecological issues, that is saving the green belt around the capital and within the residential area, woodland belts’ creation along the Moscow region highways, both radial and circle ones.

The real situation has been different until now. In spite of the fact that Moscow is overcrowded with population and housing habitation, the concentration of its population is still growing steadily, there is still unsatisfied demand for new real estate, in spite of overrated prices for square meters. As a result, territories of different sizes, that were free of buildings, are sold for further construction. New buildings border close to each one and force out elder plantations from those areas. There is just no place to renew them.

Ecologists apprehend that the green belt of Moscow will suffer a lot due to planned Moscow extension. (According to Alexey Eroshenko, forest program “Greenpeace” coordinator’s opinion spoken out during the interview to “Vesty FM”).

Moreover, ecology of those areas that are to be included into Moscow borders, will surely suffer damage. Nature reserves situated there may get damaged during the process of new ideas’ realization: creation a business and financial capital centre within the area in question and apartment block building within a part of territory in order to relocate there a certain percent of current Moscow population. .

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Therefore, the ecology factor is the major factor in the long-term. Thus, in order to succeed, it is necessary to take into account “the green’s” point of view.

Social infrastructure development within the region.

Benefits, for people living within the Moscow region segment that is going to be included within the capital’s borders, are obvious. The whole range of capital privileges and benefits will be available for them in the nearest future, modern road and transportation system and social housing infrastructures will start to grow and develop rapidly. The Moscow metro will appear. Except “the officials’ city”, which promises itself appearance of premium segment districts, the new accommodation and up-to-date facilities will be built up along the whole area. Huge corporations will open their head offices or subsidiaries in the region, thus, plenty of prestigious vacancies will be available for local people.

However, taking into account logistics and transportation problems, a few years will pass from the segment’s inclusion into the capital borders before huge business, possessing outstanding ability to provide people with working places, will open this region up.

Mayor of Moscow, Sergey Sobyanin, predicts a decrease of half in capital population concentration within the currently existing city’s borders, due to new territory’s inclusion. However, what actually will make those who live in the center of the city now to leave usual and familiar places of abode in the overcrowded centre and change it to the lands that used to be the Moscow region until recently? Even more, these places will still be far away from Moscow Circle Automobile Road. In order to relocate part of Moscow citizens to the new places, it is required to provide them with something could provide competition to the attractiveness of living in the historical centre of Moscow. This is the basic target of social and living infrastructure development. Infrastructure in the new district has to be attractive for both officials’ 189 GREATER MOSCOW – THE KEYS TO SUCCESS work and citizens’ life. At the same time, as was mentioned before, it is necessary to concentrate at least business activities of people living there within the adjoined area in order to avoid their daily commuting to their tradition places of working.

Deputy Moscow Mayor, chief executive of Moscow construction complex Marat Husnullin, claims it will take about 20 years to develop the named territory. According to him, from the very beginning it is necessary to implement certain changes to the existing General Plan of Moscow development.

Other issues: cooperation with local people

During discussions related to future Moscow borders extension, it was decided not to include highly-populated territories of cities located nearby, e.g. Podolsk, into the capital borders. There was quite a logical reason for it: on the one hand, authorities preferred not to deprive Moscow region budget of huge amounts of tax incomes coming from these cities; on the other hand, it would be rather difficult for Moscow budget itself to provide citizens of these cities with privileges, advantages and payments, prescribed for those who live in Moscow.

Such approach is estimated by lots of people to be unethical in respect of those, who had all the chances to become a citizen of Moscow, but did not, as opposed to more successful neighbors. Thus, origin of so-called “Selected few” territories brings itself some kind of in-balance into the Moscow region life. Even leaving apart “resentful” categories of citizens, it is quite obvious that the situation may turn out to be controversial also for those whose place of abode and real estate to appear within the territories that are going to become a part of Moscow. Large landlords will surely benefit in result of dramatic increase in their land’s price. These landlords are mostly represented by certain Moscow banks and corporations.

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It will surely be flatteringly for private entities to secure Moscow registration. On the other hand, there is also project of real estate tax introduction, which will result in sharp increase in their real estate price. That may strike a blow to the budget of many families living there.

“Megalopolis service” chief executive Sergey Vlasenko, claims that there are no territories of significant sizes, that belong to the state. Taking into account forthcoming volumes of road and accommodation construction, we should be aware of mass nationalization of these lands from private owners. It is quite possible that fierce resistance focuses will arise as a result of such policy. There is the only one effective measure of dealing with this situation, and this solution is providing local people with money payments in amounts comparable to real estate prices multiplied by coefficient of their upcoming increase. The average sum of these payments is comparable with the whole amount of budget funds supposed to be spent on the project.

Moreover, there is a certain percent of cottage owners who will refuse selling their real estate to the state independently of sum of payment offered. Owners of premium class cottages may face especially unpleasant situations: their property may find itself surrounded with economy-class buildings and highways.

It seems that this certain problem may be solved by money payments, as it was supposed initially, but it is only a part of the whole problem-solving process. Officials will have to negotiate with lots of landlords. It will be required to save some of existing settlements as they are now. Taking into account the scale of government’s ideas of creation social infrastructure and international financial centre with the city of officials within the adjoined area, it is extremely important to convert into the government property as much of adjoined territories as possible.

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It is estimated to be possible to realize a certain amounts of funds for these purposes by cutting costs of official structures relocation. Another measure of funds economizing is mentioned above non-admission of budget funds waste through corruption channels.

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Maria Glukhova

Moscow is one of the largest and most powerful economic centers in the world. It has recently been announced that there will be an expansion of the Moscow territory. This expansion should be to the South-West, and Moscow will lose its traditional circle shape.

The city is really increasing every day. It concerns not only the population, but companies as well. Most of those companies are settled in the center of the city. According to the statistics, 38% of all working places in Moscow are in the very central district, taking into account that only 7% of the Central Okrug occupies Moscow territory. Let us agree that this is a lot. This also means that most clerical work is in this part of the city and the place where the huge traffic is.

Within the new idea of expansion of the territory, most offices are supposed to move out to the “new territories”. Of course, this should decrease the amount of the existing problems. A lot of people are thinking that this will eliminate this pressure. To my mind, many business men encourage this idea, because when there is less traffic jams, more time is saved. Nowadays, everyone knows time is invaluable, especially when it concerns Moscow.

As we know, to live in the center costs a person a lot. Sometimes it is 10 times more than to live somewhere in the region. So, this also should touch the rental

193 GREATER MOSCOW – THE KEYS TO SUCCESS payment, and another motivation for the business owners to begin thinking of changing the location of the working place.

Everyone knows that Moscow is like an ant hill. There is a saying: “Moscow will shelter everyone”. Probably it is true. It is known today that there are more than 15 million people in Moscow. The metropolis has 100 people per hectare, in comparison with other world cities such Brussels, or Vienna where there are 70-75 people per hectare, or with some American cities – 15-25 people per hectare. Isn’t it crazy? However, this does not stop people to come to Moscow. Each year, the population of the city is increasing by thousands.

The worse situation is the tube during the rush hours. You are just taken in and taken out from the carriage. You feel as you are probably in the jungle somewhere. Many times I came to conclusion that in the tube people are kind of on the downward path because here they are more furious, savage, rude and mad!

I think this “movement” will have an influence on the amount of the population as well. We expect that the prices in the new place will be lower than in Moscow itself. People always try to reduce their expenses, especially when it is so expensive just to be a Moscow citizen.

As it has already been mentioned, traffic jams are one of the worse things in the Moscow area, probably the worst. Who would have thought of that a person might spend about 2 hours just to get 2 kilometers 20 or 30 years ago? This is a really pressing problem of today. People have been trying to solve it for many years, but still there is no result.

Of course, all these cars are moving to center, including cars from the region. Sometimes, you can think that, even if you leave home at 4 a.m., the traffic situation will be still the same. Now we have a double edged sword – from one side there is an

194 GREATER MOSCOW – THE KEYS TO SUCCESS overloaded tube and from the other side is the traffic jam. You do not know what is worse…

According to the idea of increasing the territory, the center is supposed to change its location, and it is to the South-West. I think this should work – when all the main routes are there, cars will go as well. Though here it should be pointed out that this can create another problem –traffic jams in this new area. That is why the government will have to weigh all the pros and cons when introducing this plan, because as we know when there is the end of one problem, there is the beginning of another.

It should also be mentioned that every year new projects of construction of new roads are being created. Unfortunately, the amount of cars is increasing more rapidly than the amount of projects. Everyone wants to have a car, dreams about comfort, but few people think how much harm cars create.

My personal opinion, concerning the traffic problem, is that more attention should be paid to the globalization problem, to the ozone layer, to the accumulation of CO2. Also, I would like to mention another plus of this enlargement idea – this is new working place. There is no way to build, to create a new area without people. We know that, in Russia, there is very high level of unemployment. However, this project can give a slice of bread to all the layers of the population.

People who do not have any education, nor any work experience can find themselves in the building sphere. Of course, the new region will not be built in 2 or 3 years. It will take some while. It means that, for this period of time, people will need to be fed as well.

New infrastructure demands schools, hospitals, kindergartens or other institutions. It is well known that many schools are full of pupils and they cannot take

195 GREATER MOSCOW – THE KEYS TO SUCCESS any more. Also, there are state hospitals where are always long queues that seem never ending. So, this project should facilitate people’s lives. These institutions will give food for thousands of people.

There is good news for Russian football fans – the football world cup 2018 will be held in Moscow. This is a huge event. Millions of people from the whole world will try to attend this event. However, in Moscow there is not such a big stadium that will be able to hold all these people. Now it is high time to think of it. In the “new” territory there is enough space. Besides, that little chance that the project “to-built-a- new-stadium” will go out of business. Football has always been made great profit!

Certainly, it is good to construct new buildings, to create new work places. Nevertheless, we should remember that today we live in the XXI century, in the age of globalization, when our nature is almost totally devastated – many sorts of trees and bushes disappeared, a lot of species of animals and birds dying out, the waters are full of chemicals and garbage… That is why one of the main targets of the government, carrying out this project, is to think twice about each step, calculate and forecast all possible outcomes.

Lastly, I would like to underline that the government is worried about the future of Moscow. The government officers see that this should continue any more, try to create more projects, find answers to the internal (already) questions.

Overall, I think this plan is not bad, but it will take a lot of time and effort and strength to realize it. If the government will really decide to do it and seriously take this project in hand, some good results should be achieved. Of course, it is not enough just to talk, we can make any conclusions only when something is done, and right now any word can be valued as nothing, because we still have got no result!

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Time remains to be seen… we are all human beings and hope for the best future. Moscow has not built in a day…

The source: http://svpressa.ru/all/article/33658/

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Anonymous Student

Cities all over the world have precious little to stop them from growing bigger than ever before — except the governments that run them. The question is whether there is a limit to how big a city can manageably be. Nowadays – at least theoretically – we may well assume that there is no single limiting factor — neither in technology nor infrastructure — to how big, or fast, a city can grow. The critical and highly debatable issue is whether government officials and business leaders can effectively and efficiently manage the planned increased complexity. If not, a city can become a disastrous mixture of inconsistent legislative practices, gridlock and social strain.

Higher gain means higher risks. Indeed, the bigger the city is, the more complicated the socio-economic system becomes, which is the interaction between social, political, economic, scientific and technical factors. The modern period of Moscow development is characterized by fast changes of its features, the instability of processes, occurring in it. The price of management errors during these moments is great!

Measure thrice and cut once – a wise proverb says. Being proposed by the President of the Russian Federation, Dmitry Medvedev in June 2011, expanding of Moscow boundaries is not an abstract project any longer, but rather a project-in- process, reflecting the intrinsic nature of Russians – to rush to fanatically implement any reformatory idea without thorough examination of necessary prerequisites of its efficient functioning (new territories are expected to be included in the new Moscow Federal district before January 1, 2012 – in less than half a year). However, it is highly important to bear in mind, that although Moscow territory broadening is targeted primarily (although not solely) at traffic jam problems easing (that is, basically, mono-target project), the process itself is multidimensional.

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Therefore, our aim is to compensate for the planning dereliction and single out key factors to be concentrated on in order to ensure that the costs of this project will be offset by economic, social ecological and other advantages, and the benefits of the urban economies of scale are not eroded before they begin.

1. Work with the population; wise public relations and public awareness programs; accountable governance; public consultations. Federal and municipal reforms can affect thousands of citizens, firms and investors (and ordinary people know this better than anyone else). Critical to achieving sustainable reform is spreading an understanding and acceptance of the changes throughout the broadest possible spectrum of “stakeholders”. Effective communications build coalitions, making reform as politically safe and painless as possible. Simple, open and efficient communication and reporting mechanisms throughout ministries, and upwards to centre of government institutions is fundamental to meeting public delivery targets. Russia and Moscow authorities cannot afford to neglect communications. The world’s most economically developed countries pay the most attention to communications. Fortunately, our governments are becoming more aware of communications. This means that governments are more willing to communicate and more eager to learn how. There has never been a better time to start communicating honestly and effectively.

Authorities of Moscow and the Moscow region should organize regular meetings (“round tables”) with the population and discuss the prospects of Moscow boundaries expansion – step by step. The key items of such meetings agenda might include the duration of “merging” process, its key aims and principles, housing and public utility services issues, outlook for municipal improvements, alterations in educational, public health and social programs etc. The outcomes of such consultations, the feedback of population and its influence upon future actions of authorities need to be properly communicated to the whole society: they are to be 199 GREATER MOSCOW – THE KEYS TO SUCCESS published in the mass media sources (Internet, TV, radio broadcasts, and newspapers), placed on district information boards etc. People need to know that their opinions are valuable, heard and considered in the process – at least nominally.

Authorities need to be prepared to answer questions about pensions and salaries growth (as prices in the newly-adjoined areas will inevitably and abruptly rise); medicine provision and pharmaceutical benefits; slum clearance (and – even more importantly – inviolability of summer cottages and private plots of land); highways construction; municipal transport networks; kindergarten quotas maintenance etc.

All these issues are highly debatable, not only from the point of view of the Moscow region inhabitants, but also from the position of Muscovites: people tend to reveal negative attitudes when municipal budget funds (in our case – funds of Moscow) are spent to support population of other – even adjacent – areas. After all, Moscow itself is stuck in its internal problems and not all Muscovites agree that expansion of Moscow would solve these problems. Russians have become used to the fact that any alteration at the initiative of the government will end up in disastrous consequences. PR and public awareness programs, focused on personal responsibility of each particular official and civic engagement, are the corner stone of efficient and peaceful settlement of current and upcoming concerns.

2. Consistent, clear, unambiguous, transparent legislation, preferably based upon international experience and well-communicated to the population. Territorial integrity should be based upon absolute legal integrity. Legal amendments take time, effort and cost to implement and bring about a sense of legal instability and unpredictability. (Again, ordinary people are the most experienced in this field.) The essential role of the local public administration should be considered that of meeting and protecting the public interests of the community in the territories.

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In the very basic sense, the territorial reform should be aimed at bringing government closer to citizens, making it more responsive to their particular preferences, and finding new and more efficient ways to provide higher levels of public services. One of the main measures of the normative-legal mechanism is the improvement of the system, which orders the normative values of city social and economic development indicators.

An effective legal system should be based on such principles as predictability – to promote public and individual initiatives (substantive and procedural rules are written, published and widely available; they are simple, precise and unambiguous), fairness – to foster economic growth, fight passivity and resentment (apply equally to all regardless of public connections or private power, ensure open and unrestricted access to courts and administrative bodies), rapid adjudication – to facilitate economic activity (increase the number of courts, keep formalized procedures to a minimum, establish administrative procedures to avoid courts) and consistency with customs, norms and levels of economic development – to reduce the cost of law enforcement. These basic “values” are rarely observed in the Russian legislative and executive practices. The project of Moscow boundaries expansion is a good chance to demonstrate the willingness of authorities to turn a new leaf in the history of public- private relations.

3. Support long-term and flexible planning schemes that span up to a 25-year horizon. The assessment of social and economic efficiency plays a significant role in the working of the administrative and management programs of urban development. However, in practice, the notion of a big city in Russia (as an object of management) is chiefly limited by administrative approaches, which do not provide for the system consideration of city actual problems, for the execution of complex social and economic assessments and forecasts of its development and consequences. Present approaches to efficiency assessment of urban development have unsystematic, 201 GREATER MOSCOW – THE KEYS TO SUCCESS fragmentary character and ignore modern quickly- and ever-changing conditions of cities’ functioning and development. The processes, the elements and the features of Moscow, which have the attributes of system cause-effect relation, are not included in the present sphere of management. The underestimation of these factors leads to the hard social and economic consequences, which show up at the realization of unreasonable management decisions on Moscow development.

Moscow authorities need to bear in mind that changes in economic systems directly influence the life quality and health of city dwellers. The larger the scale of economic development is, the more people feel its consequences. It will be very difficult for them to evaluate social and economic situation, the direction of urban development, the efficiency of urban policy adequately without the innovative approach, which would take into account the experience of the Soviet planned economy and the innovative processes of modern big cities’ development. The long- term plans and strategies must be based on a variety of concepts taking into account the development of Moscow/Moscow Federal District as a city/region with its specific interests and problems, as the capital of Russia, as the center of agglomeration and interregional interactions, and as a world city, as well as available resources – financial, human, technological, intellectual etc.

An innovative, systemic long-term planning and forecasting methodology is an indispensable condition of the project success: on the basis of long-term forecasts managerial decisions will be accepted, while economic, organizational, investment and normative-legal mechanisms will allow for increases in the efficiency of the new city of Moscow format.

4. Craft dedicated policies in critical areas, such as affordable housing. Moscow is the most developed and dynamic Russian city, with great opportunities and challenges for business, but with a rather expensive infrastructure and high cost of

202 GREATER MOSCOW – THE KEYS TO SUCCESS living. The most socially and economically significant branches of city economy, which demand state regulation, including tariff policy development and realization, are city engineering and transport infrastructures, housing and public utility services, which are important both to individual households and to economic growth. Such key issues influence individuals’ disposable income, their ability to access employment, their health, and their inclusion in society. To avoid an ungrounded increase in the financial burden of city dwellers and enterprises the prices for the city infrastructure enterprises services must be fixed by state authorities, taking into consideration the actual, but not the normative expenses of enterprises.

Decentralization ranks an important place in terms of local public administration policies, which seek to involve more and more local communities in handling the problems encountered on the territory. Fiscal responsibility should also be commissioned to local administration, the main sources of budget being local financial sources. The local administration can work out and implement projects of sustainable development, or various programs of local importance. It should be empowered to contract loans from various firms and institutions. Optimal conditions need to be created to set up and collect local taxes by the special departments from local public administration structures. It is necessary to elaborate a new and comprehensive regional policy by the central state institutions, as well as setting up a body like Agency of Territorial Development, designed to assist and inform the new territorial units.

Most importantly, there should be specific terms, control figures, reports demanded, so that officials and publicity can examine how well policy tasks will be performed.

* Public utility services control. According to the views of urbanists of the XXth century, the optimal (Latin optimus - the best) city is a city, of a size that is

203 GREATER MOSCOW – THE KEYS TO SUCCESS most economical with a view to the organization and exploitation of communal services sector. It is important to emphasize, that small cities are unprofitable, but too big ones are inconvenient and unprofitable. Authorities need to keep control over their ambitions and stick to highly prudential approach with respect to expanding Moscow territory.

5. Control of migration (one of the targets set: to decrease the density of the population and not vice versa). The estimation of the efficiency borders of big city development for its population is tightly connected with the problem of migration. This question acquires greater importance, if it is taken into account, that, as a rule, the population of Moscow is replenished, first of all, by a positive migration balance and then – to a minor extent – by its natural increase.

As an economic tool of city, migratory policy a concept «the cost of urban growth» can be used. The cost of urban growth is basically the cost of a Moscow newcomer (for constant residing) provision with the standard of living, generally accepted in the city. This cost is determined by a set of factors: a level of migrant provision with residential floor area, with the services of city transport and engineering infrastructures, with the services of educational institutions, with medical services, etc. Authorities need to monitor the developments in the new Moscow Federal District and ensure that economies of scale and scope are not undermined by skyrocketing immigration.

6. Ensure establishment of necessary infrastructure objects, maintain efficient and consistent functioning of their network. The enterprises, ensuring city dwellers by jobs, goods and services of the first necessity, are necessary for a big city existence. While planning infrastructure development, it is necessary to analyse not only separate elements of Moscow and the Moscow region socio-economic system, but their whole set and connections between them. The construction of underground

204 GREATER MOSCOW – THE KEYS TO SUCCESS across the whole Moscow Federal district becomes specifically important and the pace should not lag behind the rate of population density.

Other key infrastructural issues include:

 housing construction and comprehensive development of residential areas;  industrial zone reorganization;  developing the system of public areas, public centers, and social infrastructure facilities;  transport (other than underground) infrastructure development;  developing the engineering infrastructure of the city's water supply and waste discharge complex;  developing the engineering infrastructure of the city's energy complex, etc. 7. Ensure sufficient funding to finance running costs and new infrastructure (possible sources: monetizing land assets, levying taxes). To raise city dwellers' living standards, investments in a whole complex of the enterprises of city social, engineering and transport infrastructures must be attracted. Then, there is a question of searching for investment sources. The increase in the expenditures of Moscow budgetary funds will finally lead to the growth of city dwellers’ tax burden. The mobilization of private investments raises the problem of searching for the sources of their recoupment, the solution of which usually results in the increase in prices for the services of urban infrastructure enterprises.

Besides, city infrastructure development will inevitably entail the growth of demand for territorial resources. Consequently, the evaluation of city territorial reserves is needed for its development. Thus, the analysis on the basis of the system dynamics approach puts an important question: which living standards of urban population new Moscow Federal District can be "allowed" and at what cost?

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The risks (connected with the deficit of urban territory, labour, with the shortage of financial resources for the realization of large-scale plans of Moscow government, etc.) grow steadily without solving these problems, without taking into account such features of Moscow at forecasting, planning and making management decisions. The unbalanced state of Moscow’s socio-economic system may lead to the constant growth of prices, paid by urban enterprises and population, to the growth of social and economic expenses, which would be possible to avoid by the system dynamics approach to city management. The problem of searching for the sources of financing social projects must be well elaborated, because the population pays finally for all.

8. Control over ecological standards and historical heritage in the newly created Moscow Federal District as a whole. Environmental issues are affected by the city's size, density of population, abundant public transportation infrastructure, gasoline consumption rate etc. The projected increase in the population density across the new Moscow districts has environmental dangers – pollution concentration, greenhouse gas emissions, water quality deterioration, possible extinction of some rare species etc. The task of the authorities is to ensure that the ecological situation in the areas to be included in the Moscow Federal District is not under threat of increased pollution, and energy efficiency is a key to success. The city government should purchase only the most energy-efficient equipment for use in city offices and public housing (for example, cars, air-conditioners and copy machines). It is necessary to introduce clean air diesel-hybrid and compressed natural gas buses, taxis or other means of “green” transportation, and give priority to green office buildings construction. Public transport should be comfortable and affordable (fixed prices, cleanness, safety of trips, possibility to regulate the length of the train – make it shorter when passenger traffic flow is low) in order to encourage population to switch from private cars to more environmentally-friendly suburban electrical trains. Manufacturers that will

206 GREATER MOSCOW – THE KEYS TO SUCCESS come to the new area should be obliged to keep up with the latest trends and needs in the city because their ecological impact is simply too big to ignore. Specifically important are the garbage disposal systems, being the weak infrastructure point up to now.

The Moscow Federal District development should be aimed to preserve and strengthen the city's historical and cultural heritage, landscape and architectural uniqueness; and create a safe, favorable and diverse urban environment for the current and future generations of residents.

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ABOUT THE AUTHORS

Alexander Smogorzhevskiy

Born: Moscow Education:  School №691  Plekhanov Russian University of Economics, International Business School faculty, bachelor degree, specialty – “Finance and credit”  Plekhanov Russian University of Economics, faculty of Master programs, master degree, specialty – “International Financial Management” Occupation: Auditor (“Deloitte and Touche”)

Aniat Keshisheva

Born: Moscow Education:  State Secondary School #1243  Plekhanov Russian University of Economics, International Business School faculty, bachelor degree, specialty – “Finance and credit” Occupation: Auditor (“Ernst &Young”) Business Analyst (“RKS Development” LLC)

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Dmitry Nemytyshev

Born: Moscow Education:  School №1546  Plekhanov Russian University of Economics, International Business School faculty, bachelor degree, specialty – “Finance and credit”  Plekhanov Russian University of Economics, faculty of Master programs, master degree, specialty – “International Business” Occupation: Specialist (“Master-Garant”)

Elena Shvetsova

Born: Moscow Education:  Lomonosov Moscow State University, faculty of Foreign Languages and Area Studies, specialist, specialization “Western Europe”  Plekhanov Russian University of Economics, faculty of Business, master’s degree (incomplete), specialty “International Economy and Business” Occupation: Ernst & Young (CIS) B.V., Tax department

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Elizaveta Nemytysheva

Born: Moscow Education:  School №1253  Plekhanov Russian University of Economics, International Business School faculty, bachelor degree, specialty – “Finance and credit”  Plekhanov Russian University of Economics, faculty of Master programs, master degree, specialty – “International Economics and Business” Occupation: Specialist (“NR Bank”)

Mikhail Malev

Born: Moscow Education:  School №1681  Plekhanov Russian University of Economics, Faculty of Master Programs, master degree, specialty – “Financial management” Occupation: Leading Specialist (OAO “Rosbank”)

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Natalya Segreeva

Born: Moscow

Education:

 Finance University under the Government of the Russian Federation, ‘Taxes and Taxation’ faculty – honors’ specialist degree in Economics  Plekhanov Russian University of Economics, “International Business School” faculty, Master Degree (incomplete) Occupation:

 KPMG Moscow, tax consultant in financial sector  Althaus Consulting ,tax consultant on international taxation issues

Nikita Khromov

Born:

Moscow

Education:

 Gymnasium № 1526  Moscow Aviation Institute (State Technical University), specialist degree, specialty – “Economics and Management in engineering industry” Occupation:

Tax accountant (“Equant” , LLC)

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Roman Morozov

Born:

Moscow

Education:

 Plekhanov Russian University of Economics, International Business School faculty, bachelor degree, specialty – “Finance and credit” Occupation:

 Auditor (PwC)

 Consultant (Michael Page International)

Stanislav Ivnitskiy

Born:

Moscow

Education:

 School №1546  Plekhanov Russian University of Economics, International Business School faculty, bachelor degree, specialty – “Marketing”  Hogeschool van Arnhem en Nijmegen, BBA Occupation:

Strategic Planning in Advertising (LLC BBDO)

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Alexey Matveev Born: Surgut Education:  Plekhanov Russian Economic University, Faculty of Finance, specialist degree, specialty – «Finance and credit»  Plekhanov Russian Economic University, Faculty of business, International Financial Management (incomplete). Occupation: The Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) - specialist-expert.

Anton Savelev Born: Krasnoarmeisk Education:  School 641 after S. Esenin  Plekhanov Russian Academy of Economics, International Business School faculty, bachelor degree, specialty – “Economics”  Plekhanov Russian University of Economics, International Financial Management faculty, master degree, specialty – “Management” Occupation: Auditor (ZAO “KPMG”)

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Elena Minchenko

Born: Angarsk, Irkutsk Oblast Education:  School №553  Plekhanov Russian University of Economics, International Business School faculty, bachelor degree, specialty – “Finance and credit”  EPSCI-ESSEC (France, Cergy) Master +1, Management  Current: Plekhanov Russian University of Economics, Graduate School faculty, International Financial Management Occupation: Financial Specialist (Cash Flow Forecast) Procter & Gamble

Elza Usmanova

Born:

Nizhnekamsk

Education:

 The Higher School of Economics, Business-Informatics and Applied Mathematics faculty, bachelor degree, specialty – “Business-Informatics”  Plekhanov Russian University of Economics, Master degree programs faculty, master degree, specialty – “Financial management” Occupation:

Auditor (KPMG, LLC)

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Evgenia Mantsurova

Born: Voronezh Education:  Moscow international higher business school MIRBIS, bachelor degree, specialty – “International trade and commercial law”  Plekhanov Russian University of Economics, International Business School faculty, master degree, in process Occupation: Analyst, Russian Academy of Public Administration under the President of the Russian Federation (RAPA)

Ilnar Gubaydullin

Born: Kazan Education:  Gymnasium 122, Kazan, Russia (1992-2002)  Cass Business School, city University of London, London, UK – BSc “Investment and Financial Risk management” (2003-2007)  Plekhanov Russian University of Economics, Graduate School, Master degree, specialty – “International Financial Management” Occupation: Specialist (representing office “Talmay Trading DMCC ”)

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Nailya Gilmanova

Born: Zainsk Education: Russian State University of Humanities, Economic Faculty, bachelor degree, specialty – “Economic Theory” Occupation: Assistant Accountant (Grant Thornton, ZAO. Member of Grant Thornton International Ltd)

Valeria Bondareva

Born: Petropavlovsk-Kamchatskij Education: Plekhanov Russian University of economics, International Business School, bachelor of economics.

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Anastasia Chauzeix

Born: Paris, France Education:  Exchange semester in Plekhanov Russian University of Economics  Master degree at Rouen Business School (France) Internships:  Internal control at Edmond de Rothschild Investment Managers  Audit at Deloitte Luxembourg

Bertrand Garrandaux

Born:

Rochefort, France

Education:

 College Stanislas, Paris  Audencia Nantes business School (France)  Law undergraduate, La Sorbonne, Paris  Plekhanov Russian University of Economics, Moscow Occupation:

Student

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Christina Yao

Born: Panama, Santiago Education:  ESC Rennes School of Business, France  Plekhanov Russian University of Economics, International Business School faculty, Master Finance & Marketing, Russia Occupation: Student

Edouard Lesieur

Born:

Lyon, France

Education:

Audencia Business School, Master of Management, specialty – “Corporate Finance” Occupation:

Student

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Fedor Agadzhanyan

Born:

Kharkov, Ukraine

Education:

Plekhanov Russian University of Economics, International Business School, honored Bachelor Degree in Economics, 2011

Marina Zhdanova

Born:

Potsdam, Germany

Education:

 Moscow International Higher Business School “MIRBIS”, bachelor degree, specialty – “International trade and commercial law”.

 Plekhanov Russian University of Economics, Magister Programmes Faculty, magister degree, specialty – “Financial Management”

Occupation:

 Consultant (Kelis Consulting Ltd)

 Leading Specialist at Customer Accounts Department (Bank Vozrozhdenie, open joint-stock company)

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Robin Joyce

Lecturer – Contemporary financial issues

 Professor of the Chair of International Banking and Finance, Finance University under Government of the Russian Federation

 Honorary Professor of the Siberian Academy of Finance and Banking

Copyright Notice

The copyright of the material contained in this publication belongs to Plekhanov

University, Moscow, Russia and material may be used free of charge for any noncommercial purpose, if attributed to Plekhanov University. Where sources have been noted in the text, the copyright of those parts of the text belong to those sources.

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ABOUT SCHOOL OF BUSINESS

Plekhanov school of Business contributes to the development of Russian economy and society through the supply of high quality master’s level education and training meeting the diverse educational needs of consumers, effectively using the Plekhanov University history, its research, teaching and practical expertise, international contacts and developing the Plekhanov brand.

Following the government educational guidelines, Master level programs at Plekhanov present a wide selection of specialized curricula in two areas: Economics and Management. Main characteristics of Plekhanov Masters level courses are:

 A considerable proportion of independent work in the program;

 The application of the latest technology and methods of instruction, such, as interactive lectures, case analysis, group research projects, individual and group presentations, scientific seminars;

 The possibility to select courses from a wide variety of electives;

 The participation of the leading professors from the Plekhanov and specialists from Russian and international companies;

 Guest lectures by professors from foreign partner schools;

 Scientific research projects based on real companies and organizations’ studies;

 The development of your own cases under the supervision of experienced instructors;

 A possibility to prepare for international professional examinations;

 A possibility to spend an exchange semester abroad in one of the foreign partner schools;

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 A possibility to prepare for PhD examinations.

At the moment School of Business offers following Master Programs: Field "Economics"

International Economics and Business

Internal Control and Auditing

Financial Economics - Investments

Business Economics

International Financial Reporting Standards

Field "Management"

Brand Management of Consumer Goods and Services

Brand Management of Luxury Goods and Services

International Business

Financial Management

Project Management

International Marketing

International Financial Management

European master of international management

Distance Learning - Field "Economics"

International Economics and Business

Distance Learning - Field "Management"

Marketing and Sales

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Also the School of business offers following Bachelor Programs: Field "Economics"

General Accounting

Field "Management"

Managerial Finance and Accounting

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