CASE STUDY OF RUSSIA’S PUBLIC DIPLOMACY TO ATTRACT U.S. DIRECT INVESTMENT A THESIS SUBMITTED TO THE GRADUATE SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE MASTER OF ARTS BY ANASTASIYA Y. ELAEVA ADVISOR: DR. DUSTIN W. SUPA BALL STATE UNIVERSITY MUNCIE, INDIANA MAY 2011 ACKNOWLEDGEMENTS I am grateful to my thesis advisor Dr. Dustin W. Supa for his guidance and support during this research endeavor. I am also thankful to my committee members Dr. William J. Willis and Professor Richard M. Shoemaker for reviewing my study and providing their invaluable feedback. I also thank my colleagues at the Advanced Crisis Communications Training at Ball State University for their encouragement and support. Special thanks to the Fulbright program sponsored by the U.S. State Department for providing me with the opportunity to study and to do research at Ball State University. This research would not have been completed without my dear friends from the PR program at Ball State University. Your sense of humor, willingness to lend a helping hand and conversations about our research projects meant a lot to me. Finally, I am forever indebted to my family and Justin for believing in me and always encouraging me to do my best. ii CONTENTS LIST OF TABLES ................................................................................................. VIII LIST OF FIGURES .................................................................................................. IX INTRODUCTION .......................................................................................................1 Value of Foreign Direct Investment in A Country’s Economic Development....1 Public Diplomacy and FDI ......................................................................................1 Decrease in Russia’s Inward FDI in 2009 ..............................................................2 Russian Business Climate Rankings 2009..............................................................2 Russia’s Initiatives to Increase Inward FDI in 2010.............................................3 Russia’s Inflow FDI in 2010 ....................................................................................4 Russian Business Climate Rankings 2010..............................................................5 LITERATURE REVIEW ...........................................................................................6 International Communication System ...................................................................6 Public Diplomacy in the System of International Communication .....................7 Public Diplomacy Dimensions...............................................................................10 Public Diplomacy as Image Enhancement & Nation Branding.........................13 Public Diplomacy & Source Credibility...............................................................16 Public Diplomacy & International Public Relations...........................................17 Public Diplomacy & Mass Media .........................................................................20 Mediated Public Diplomacy & Agenda- Building & Framing...........................21 International Agenda – Setting and Agenda – Building.....................................22 International Media Relations: Foreign News Selection ....................................23 Framing...................................................................................................................25 International Framing Factors .............................................................................27 International Media Relations Effectiveness .......................................................28 Public Diplomacy & Attracting Foreign Direct Investment ..............................29 Research Questions ................................................................................................34 METHODOLOGY ....................................................................................................35 Method 1: Case Study............................................................................................35 Purpose....................................................................................................................35 Case Studies & Units of Analysis..........................................................................36 Method 2: Content Analysis..................................................................................38 Codesheet for the Analysis of U.S. Media Coverage of Russia’s Public Diplomacy Activities............................................................................................40 CASE STUDIES.........................................................................................................43 Case Study 1: Russia Forum 2010 ........................................................................43 Background.............................................................................................................43 Case Study Objectives............................................................................................44 iii Programming..........................................................................................................44 Organizers.............................................................................................................44 Theme. ..................................................................................................................44 Events. ..................................................................................................................45 Media Relations....................................................................................................55 Forum Communications Analysis ........................................................................55 Media Coverage......................................................................................................56 Newsmakers..........................................................................................................56 Russian Regions. ..................................................................................................57 Key Messages.......................................................................................................57 Investment Factors................................................................................................58 Investment Factors Mentioned at the Public Diplomacy Events vs. Investment Factors Mentioned in the U.S. Mass Media. ........................................................59 Media Coverage Analysis. .....................................................................................60 Case Study 2: Communicating Skolkovo Announcement..................................61 Background.............................................................................................................61 Case Study Objectives............................................................................................61 Programming..........................................................................................................62 Theme. ..................................................................................................................62 Organizers.............................................................................................................62 Events. ..................................................................................................................62 Media Relations....................................................................................................69 Communications Analysis .....................................................................................69 Media Coverage......................................................................................................69 Newsmakers..........................................................................................................70 Key Messages.......................................................................................................71 Investment Factors................................................................................................72 Investment Factors Mentioned at the Public Diplomacy Events vs. Investment Factors Mentioned in the U.S. Mass Media. ........................................................72 Media Coverage Analysis ......................................................................................72 Case Study 3: St. Petersburg International Economic Forum...........................74 Background.............................................................................................................74 Case Study Objectives............................................................................................74 Programming..........................................................................................................75 Theme. ..................................................................................................................75 Organizers.............................................................................................................75 Participants. ..........................................................................................................75 Events. ..................................................................................................................77 Media Relations....................................................................................................92