In order to restore the global economy from the turmoil brought about by the coronavirus, we should use the same mechanisms that proved themselves following the 2008 economic crisis – so said the Chairman of the Skolkovo Foundation Arkady Dvorkovich at the International Forum for Northern Economic Cooperation in South Korea, which took place on 30 October. Taking part in the session alongside Mr. Dvorkovich were the former US Secretary of State Madeleine Albright, Distinguished Professor of Economics of the Graduate Center City University of New York and Nobel Prize laureate for economics Paul Krugman, and the Deputy Director General of the Institute of American Studies Song Hong.
During his speech, Mr. Dvorkovich brought attention to the slowdown in world trade and the rise in trade barriers. “Sadly, due to the pandemic, the situation this year has gotten worse. Countries are self-isolating and creating economic islands in an effort to ensure both their own economic and health security.”
Arkady Dvorkovich (top right). "Trust is paramount, but unfortunately in recent years we have been losing it."
Nearly all states, with the possible exclusion of China, have adopted similar reaction measures to the pandemic. “We need more solidarity and collaboration,” said Mr. Dvorkovich.
The chairman brought up the G8 and G20 anti-crisis summits, which were held in order to create mechanisms aimed at minimizing the consequences of the 2008 economic crisis. “It is necessary to take into count the experience of this collaboration,” said the Skolkovo Chairman. “Over the last 12 years, China has done much in moving towards a system in which trade rules and economic ties actually work.”
In mentioning the importance of restoring the previous level of trust between states, Mr. Dvorkovich stated that “trust is paramount, but unfortunately in recent years we have been losing it along with faith in global institutions and in the possibility of successful cooperation.”
Commenting on the prospects of inter-Korean reconciliation at the request of the session moderator, the Skolkovo chairman expressed that it is of critical importance to have a united approach involving both regional and global players such as the United States, China, Japan and Russia.
South Korea’s government is in large part responsible for normalizing the situation on the peninsula. Russia, according to Mr. Dvorkovich, “has attempted to find methods of economic motivation, so that North Korea would be more inclined towards cooperation.” These include infrastructure projects such as railway communication and energy supply.
Mr. Dvorkovich noted that there had been a moment of hope at the Winter Olympics in Pyeongchang, South Korea, when a united Korean team took part in the event. However, promising as it had been, it did not bear fruit.
The Skolkovo Foundation’s deputy vice president for international development Maxim Romanov also spoke at the International Forum for Northern Economic Cooperation, talking in detail about the support measures, both financial and non-financial, that exist at the innovation center. Mr. Romanov brought up accelerator opportunities, corporate and industry accelerators, as well as the Foundation’s Russian and international partners. “At the request of companies, we search and scout technologies for the customer. From 2018 to 2020, we conducted over thirty such programs with major companies, including Visa, AstraZeneca, Sanofi, Huawei, and others,” said Mr. Romanov.
For now, there haven’t been any similar acceleration projects with Korean companies, but that is a direction that could be advanced between the Skolkovo Foundation and the Republic of Korea. However, even now, one of the Skolkovo Foundation’s industrial partners is the Korean company Hyundai, which has its own research center at the innovation center where they are developing software for their own car sharing service. Another Korean company that has an R&D center at Skolkovo is YG-1, a leading world producer of cutting tools.
Maxim Romanov (top left). "The Skolkovo Foundation has had a positive experience in collaborating with South Korea."
Korean startups were the first to join the Skolkovo soft-landing program, a program that simplifies market-entry into Russia for foreign companies. Mr. Romanov told the audience that the free, week-long program allows participants to immerse themselves fully into the ecosystem and find out whether or not they need the Russian and CIS markets, emphasizing that Skolkovo is the best place for this.
He wasn’t alone in sharing that opinion. Two out of five South Korean company participants of the soft-landing program have applied for Skolkovo residency. One of them, a producer of medical sterilizers, has successfully gained residency status and with it the ability to utilize all the advantages that the Foundation offers to its residents.
Mr. Romanov also reminded the audience that the Republic of Korea actively takes part in the Skolkovo conference Startup Village, on the basis of which the Russian-Korean Technology Day is organized. This year also marked 30 years of diplomatic relations between the two countries and, as if to emphasize the closeness of these ties, South Korea took up the role of country partner for Skolkovo’s Open Innovations forum.