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RAND-Report (2005): Russia and the Information Revolution THE ARTS This PDF document was made available from www.rand.org as CHILD POLICY a public service of the RAND Corporation. CIVIL JUSTICE EDUCATION Jump down to document ENERGY AND ENVIRONMENT 6 HEALTH AND HEALTH CARE INTERNATIONAL AFFAIRS The RAND Corporation is a nonprofit research NATIONAL SECURITY organization providing objective analysis and POPULATION AND AGING PUBLIC SAFETY effective solutions that address the challenges facing SCIENCE AND TECHNOLOGY the public and private sectors around the world. SUBSTANCE ABUSE TERRORISM AND HOMELAND SECURITY TRANSPORTATION AND Support RAND INFRASTRUCTURE Purchase this document WORKFORCE AND WORKPLACE Browse Books & Publications Make a charitable contribution For More Information Visit RAND at www.rand.org Explore RAND National Security Research Division View document details Limited Electronic Distribution Rights This document and trademark(s) contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for non-commercial use only. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents. This product is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND monographs undergo rigorous peer review to ensure high standards for research quality and objectivity. Russia and the Information Revolution D. J. Peterson Prepared for Carnegie Corporation of New York Approved for public release; distribution unlimited The research described in this report was sponsored primarily by a grant from the Carnegie Corporation of New York and was conducted under the auspices of International Programs within the RAND National Security Research Division (NSRD). NSRD conducts research and analysis for the Office of the Secretary of Defense, the Joint Staff, the Unified Commands, the defense agencies, the Department of the Navy, the Marine Corps, the U.S. Coast Guard, the U.S. Intelligence Community, allied foreign governments, and foundations. Library of Congress Cataloging-in-Publication Data Peterson, D. J. Russia and the information revolution / D.J. Peterson. p. cm. “MG-422.” Includes bibliographical references. ISBN 0-8330-3858-3 (pbk. : alk. paper) 1. Information society—Russia (Federation) 2. Information technology—Social aspects—Russia (Federation) 3. Information technology—Economic aspects—Russia (Federation) 4. Information technology—Political aspects—Russia (Federation) I. Title. HC340.12.Z9I555 2005 303.48'330947—dc22 2005026168 Cover Photo by Nikolay Nikitin/Photo ITAR-TASS The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. © Copyright 2005 RAND Corporation All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from RAND. Published 2005 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 201 North Craig Street, Suite 202, Pittsburgh, PA 15213-1516 RAND URL: http://www.rand.org/ To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: [email protected] Preface This report examines the sources, dynamics, and consequences of Russia’s increasing reliance on information and communications technologies to improve the transpar- ency and performance of its government institutions, to reform industry and stimu- late economic growth, and to improve access to information and the quality of life for Russian citizens. The objective of this study, which was conducted between 1999 and 2005, is to understand how some of the momentous global trends in the 21st century will im- pact Russia. This research effort seeks to bring to light emerging opportunities and challenges facing Russia’s domestic development as well as its international posture. This study should serve to assist decisionmakers in government, business, and non- governmental institutions in Russia and internationally to make more-informed choices regarding technology investment, management, and policy in Russia. This report builds on a number of RAND Corporation studies of the impact of the Information Revolution around the world: • Richard O. Hundley, Robert H. Anderson, Tora K. Bikson, and C. Richard Neu, The Global Course of the Information Revolution: Recurring Themes and Re- gional Variations, MR-1680-NIC, 2003, available at http://www.rand.org/ publications/MR/MR1680/. • Nina Hachigian and Lily Wu, The Information Revolution in Asia, MR-1719- NIC, 2003, available at http://www.rand.org/publications/MR/MR1719/. • Grey E. Burkhart and Susan Older, The Information Revolution in the Middle East and North Africa, MR-1653-NIC, 2003, available at http://www.rand.org/ publications/MR/MR1653/. • Michael S. Chase, and James C. Mulvenon, You've Got Dissent! Chinese Dissi- dent Use of the Internet and Beijing's Counter-Strategies, MR-1543, 2002, avail- able at http://www.rand.org/publications/MR/MR1543/. • Christopher R. Kedzie, Communication and Democracy: Coincident Revolutions and the Emergent Dictator's Dilemma, RGSD-127, 1997, available at http:// www.rand.org/publications/RGSD/RGSD127/. iii iv Russia and the Information Revolution Major funding for this project was provided by the International Peace and Security Program of the Carnegie Corporation of New York under Grant Number B-7562. This research project was conducted under the auspices of International Pro- grams within the RAND National Security Research Division (NSRD). Interna- tional Programs conducts research on regionally and internationally focused topics for a wide range of U.S. as well as international clients, including governments, foundations, and corporations. NSRD conducts research and analysis for the Office of the Secretary of Defense, the Joint Staff, the Unified Commands, the defense agencies, the Department of the Navy, the Marine Corps, the U.S. Coast Guard, the U.S. Intelligence Community, allied foreign governments, and foundations. For more information on RAND's International Programs, contact the Direc- tor, Susan Everingham, by e-mail at [email protected]; by phone at 310- 393-0411, extension 7654; or by mail at the RAND Corporation, 1776 Main Street, Santa Monica, CA 90407-2138. For questions or comments about this report, con- tact the author, D. J. Peterson, at [email protected]. More information about RAND is available at www.rand.org. Contents Preface ........................................................................................ iii Figures ........................................................................................vii Tables ......................................................................................... ix Summary...................................................................................... xi Acknowledgments .......................................................................... xvii Acronyms .................................................................................... xix CHAPTER ONE Introduction ...................................................................................1 Study Objective ................................................................................3 Organization of This Report...................................................................5 CHAPTER TWO The IT Sector..................................................................................7 Telecommunications...........................................................................8 Hardware.......................................................................................9 Packaged Software ........................................................................... 10 IT Integration and Support Services......................................................... 12 Technology Development ................................................................... 13 Offshore Programming and R&D........................................................... 15 Challenges for Russia’s IT Industry in the Global Marketplace ............................. 19 Challenges of Russia’s IT Policy Environment .............................................. 24 IT Policy Initiatives .......................................................................... 27 CHAPTER THREE IT in Business and Industry................................................................. 33 Use of IT for Business Development and E-Commerce..................................... 36 Use of IT for Managing Operations and Boosting Productivity ............................ 41 v vi Russia and the Information Revolution Use of IT for Corporate Management and Governance..................................... 43 Motivations for IT Integration ............................................................ 43 Challenges of IT Integration .............................................................. 45 CHAPTER FOUR IT in Government ........................................................................... 49 Government Embraces
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