Current State Polishchuk IRIS

Slide1: 

Current State of the Russian Think Tanks Sector

OUTLINE: 

OUTLINE What is a think tank and what it does? Data sources Emergence of Russian think tanks Regulatory and fiscal environment Market structure Operations Outcomes Development prospects Mapping Role for the rest of the world

WHAT IS A THINK TANK AND WHAT IT DOES?: 

WHAT IS A THINK TANK AND WHAT IT DOES? Think tank is a non-profit non-government public policy institution “The main function of a think tank is … to act as a bridge between knowledge and power” (Paul Dickson) Think tanks affect policy process in two ways: directly communicating to policy-makers informing the public

WHAT IS A THINK TANK AND WHAT IT DOES?: 

WHAT IS A THINK TANK AND WHAT IT DOES? Think tanks vis-à-vis other forms of knowledge production in public policy studies: Universities Government research institutions Private consultancies (“think for a fee”) Not known for topicality Conflict of interests Unsuitable for production of public goods

DATA SOURCES : 

DATA SOURCES The analysis is based on data and materials accumulated by Moscow Public Science Foundation and The IRIS Center in the course of their joint implementation of USAID-funded think tank support programs in Russia. This includes a survey of Russian think tanks conducted in year 2004 that covered 23 policy institutions, 10 of which are based in Moscow, 3 in St. Petersburg, and another 10 elsewhere in Russia.

EMERGENCE OF RUSSIAN THINK TANKS : 

EMERGENCE OF RUSSIAN THINK TANKS Russia after the fall of communism has witnessed massive growth of think tanks sector. Factors facilitating entry of think tanks Russia

EMERGENCE OF RUSSIAN THINK TANKS: 

Demand-pull and supply-push in Russian think tank sector: vast need in policy analyses coincided with a crisis of traditional research and educational institutions. Competitive advantages of think tanks: Organizational flexibility and thematic versatility Access to donors’ resources Professional capacity and intellectual authority Links to government and other stakeholders. EMERGENCE OF RUSSIAN THINK TANKS

EMERGENCE OF RUSSIAN THINK TANKS : 

EMERGENCE OF RUSSIAN THINK TANKS Impulses to set up a think tank “Revolving door” pattern: alternation between government and think tank positions.

REGULATORY AND FISCAL ENVIRONMENT : 

REGULATORY AND FISCAL ENVIRONMENT Legal regime: flexible and enabling Russian law provides a menu of juridical forms to conduct policy studies (autonomous non-commercial organizations; foundations; non-commercial partnerships). Some policy institutions opt for a for-profit status. Entry barriers: low Registration requirements are reasonable and relatively easy to be met. Red tape: less than in the private sector Russian NGOs aren’t known for suffering from excessive red tape as much as commercial firms.

REGULATORY AND FISCAL ENVIRONMENT: 

Tax regime: Multiple restrictions on tax benefits common for NGOs and charities in the developed world. Possible explanations: Insufficient appreciation of civil society Closing loopholes for tax evaders. A coalition of think tanks and civil society organizations is implementing a drafting and advocacy program aimed at improving tax rules for NGOs, including think tanks, while preventing abuse of the NGO status. REGULATORY AND FISCAL ENVIRONMENT

MARKET STRUCTURE : 

MARKET STRUCTURE Scale of operation There are 70 plus active economic policy institutions in Russia with annual budgets of $50,000 and up Up to ten biggest organizations have annual budgets of $500,000 and over 15-25 institutions have budgets between $100,000 and $500,000 Several dozen think tanks have budgets of $100,000 and less. Association of Russian Economic Think Tanks has 19 full member institutions and 24 observers

MARKET STRUCTURE : 

Scope of operations Main areas of policy analyses by Russian think tanks: Macroeconomic policies Public finance Privatization and corporate governance International trade Natural monopolies SME development and de-regulation Banking and financial markets Intergovernmental fiscal relations Regional, urban and municipal development Labor market and social policies Government reform. MARKET STRUCTURE

MARKET STRUCTURE : 

Regional profile Russian think tanks’ capacity is heavily amassed in Moscow and, to a lesser extent, in St. Petersburg. Reasons: Concentration in Moscow of research and educational institutions Proximity to government and donors Network externality. MARKET STRUCTURE Sustainable and visible think tanks have been established in Russia’s regional centers, such as Ekaterinburg, Kaliningrad, Novosibirsk, Petrozavodsk, Samara, and Vladivostok. They serve as local hubs of the Russian think tank network.

MARKET STRUCTURE (2 slide options available): 

MARKET STRUCTURE (2 slide options available) Audiences and clients *Note: 10-highest, 0 – lowest *Note: 10-highest, 0 – lowest

OPERATIONS : 

OPERATIONS Typology Most of Russian think tanks combine in various proportions the features of two commonly known types: ‘universities without students’ and contract research organizations. The third type – advocacy institution – is less widespread. Some of the biggest think tanks, such as IET and CEFIR, are thematically diversified, as well as some of the small regionally based think tanks – regional markets are too small to sustain narrowly specialized organizations. A majority think tanks are more or less specialized.

OPERATIONS : 

OPERATIONS Assets (think tanks relying on a particular asset, %) Importance of relations with government officials – an indicator of think tanks’ direct feeding their studies to the policy-making quarters. Importance of reputation with colleagues – an indication of intensive professional networking.

OPERATIONS : 

OPERATIONS Funding

OPERATIONS : 

Modes of operation Most think tanks work in a hand-to-mouth manner, and undertake projects only if they come with tied sources of funding unless there are earmarked sources of funding. Donors more often support projects, not institutions (USAID uses both options). Despite the scarcity of long-term revenue sources, almost ¾ of surveyed think tanks function without interruption, while the rest work from one project to another, with possible gaps in the interim. Institutions from the first group consider their stability as satisfactory, although requiring non-stop vigorous fundraising. Others consider stability of their organizations as insufficient. None of the surveyed think tanks considers its future as fully secure. This creates strong performance incentives, but diminishes opportunities for long-term investments and planning. OPERATIONS

OPERATIONS : 

OPERATIONS

OPERATIONS : 

OPERATIONS All government-oriented institutions have stable relations with government officials and/or strong reputation with government.

OPERATIONS : 

OPERATIONS Average significance rating of outreach channels (5 – highest, 1 – lowest) Outreach and dissemination

OPERATIONS : 

OPERATIONS Intensity of outreach Frequency of use of dissemination channels (annual average per think tank) Think tanks use their own dissemination channels and rely on those supplied by the Russian Think Tanks program and the Association of Economic Think Tanks.

OPERATIONS : 

OPERATIONS Independence and quality control policies and tools

OUTCOMES : 

OUTCOMES Think tank’s most important accomplishments Self-assessment:

OUTCOMES : 

Tax reform: fiscal incentives, revenue collection, and economic growth. De-regulation: reducing entry barriers and streamlining enforcement. Pension reform: individual accounts versus pay-as-you-go. Macroeconomic policies: factors of Russia’s economic growth. Corporate governance reform: corporate finance, bankruptcy procedures and shareholders’ rights protection. OUTCOMES Major policy reform contributions

OUTCOMES : 

Novel mode of think tanks involvement in policy process: public-private dialog “The expertise provided by the Social Contract Institute permitted of launching a broad public-private dialog that resulted in the de-regulation legislation package”  German Gref, Russia’s Minister of Economic Development and Trade Think tanks’ work on studying private sector’s demand for corporate governance legislation stimulated a dialog, currently ongoing, between corporate executives, business associations, legislators, regulators and judges. OUTCOMES

OUTCOMES : 

What makes a successful policy output? Inform policy debates, provide content and substance, outline costs and benefits, and present stakeholder analyses to the public Shape policy-making agenda Engage broad stakeholder constituencies in the policy process Improve implementation and enforcement practices Facilitate grassroots actions, such as advocacy and self-regulation Mount pressure for reform when policy-making process is slowed by political cycle or resistance of vested interests. OUTCOMES

OUTCOMES : 

Capacity for independent policy analysis: a means and an end In less than 15 years Russia has developed an influential and vibrant sector of economic think tanks. This sector supports a market for policy analyses and ideas, and provides a platform for policy debates. Culture and standards of modern policy analysis, outreach, and think tank management have been established in Russia. OUTCOMES

OUTCOMES : 

OUTCOMES Goals of the association: Improve quality of economic policy in Russia through think tanks’ participation in policy process Inform the society and facilitate public participation in policy debates Establish and maintain high professional and ethical standards of independent policy analysis Facilitate think tank networking and professional exchanges Protect collective interests of think tanks community Facilitate think tanks communication with main stakeholders in policy reform.

OUTCOMES : 

Leading Moscow and St. Petersburg-based think tanks are engaged in professional partnerships with policy institutions in Russian regions, including Irkutsk, Krasnoyarsk and Vladivostok. OUTCOMES Support to regional institutions

DEVELOPMENT PROSPECTS : 

DEVELOPMENT PROSPECTS Demand-side outlook Demand for policy analyses remains high due to the broad agenda of structural reforms in Russia, heretofore deferred, and the challenges of country’s modernization. As it becomes increasingly clear that well-informed public is not just a liberal dictum but a factor of socio-economic development, there will be a strong need for think tanks’ communication to the society. Supply-side outlook Recovery of the university system is likely to attract some of the think tanks’ staff back into academia and strengthen think tanks’ links to universities.

DEVELOPMENT PROSPECTS : 

DEVELOPMENT PROSPECTS Development constraints as seen by think tanks

DEVELOPMENT PROSPECTS (other version available) : 

DEVELOPMENT PROSPECTS (other version available) Self-assessment of development prospects and financial stability

MAPPING RUSSIAN THINK TANKS : 

MAPPING RUSSIAN THINK TANKS Relations to the state The Anglo-American think tank model requires autonomy from the state as a sine qua non of think tank’s independence and impartiality. Continental and Asian think tank models are more tolerant to think tanks’ close links to government – both in terms of funding and communication of policy outputs. German think tanks heavily rely on government funding, and in France corporate intrusion in think tank activities is viewed askance. Russian think tanks bear imprints of multiple models – they are more government-oriented than in the US, but do not have long-term government support available to many European and Asian institutions.

MAPPING RUSSIAN THINK TANKS : 

Almost half of European think tanks are engaged in advocacy; in the US this pattern is also common. In Russia think tank public advocacy is at its early stage, which is a reflection of a closed policy process. Advocacy think tanks and especially those affiliated with political parties (as in Germany) usually follow certain ideologies. Most of Russian think tanks are non-partisan and ideologically non-aligned. MAPPING RUSSIAN THINK TANKS Think tank profiles

MAPPING RUSSIAN THINK TANKS : 

Best known US think tanks draw core funding from their endowments, whereas in Europe leading policy institutions rely on government support (which checks and balances to preserve professional independence). Russian think tanks are yet to establish sources of long-term financing. Tax benefits to think tanks in developed countries are conditioned by the requirements to inform the public and refrain from direct participation in political campaigns. Russian legislation tied such benefits to government-approved programs and donors. MAPPING RUSSIAN THINK TANKS Funding and taxation

ROLE FOR THE REST OF THE WORLD : 

ROLE FOR THE REST OF THE WORLD Assessment of the international donors’ support Impact of USAID-funded Russian Think Tanks support program (% of respondents) International donors have played an invaluable role in helping Russian think tank movement get off the ground and supporting it afterwards. USAID has been a prominent participant of these efforts.

ROLE FOR THE REST OF THE WORLD : 

Should foreign donors continue supporting think tanks in a nation with the growing economy and abundant sources of wealth? Donors’ funding prevents a failure of political and economic markets – a lack of support for independent policy analyses that increase government accountability and foster democracy through informing the public. Regional think tanks are important means of strengthening democracy and achieving government accountability; they require “affirmative action”-type support. ROLE FOR THE REST OF THE WORLD Involvement of international donors

ROLE FOR THE REST OF THE WORLD : 

Two donor-supported solutions of sustainability problem: assistance in setting endowments ongoing funding channeled through domestic grant-making foundations. Exit strategy – improve operating conditions of think tanks, allow them to further raise their prominence in the society, and establish the culture and practice of public and private funding of independent policy research and foundations making grant awards. ROLE FOR THE REST OF THE WORLD Sustainability problem and exit strategy

ROLE FOR THE REST OF THE WORLD : 

Collaboration and professional exchanges with think tanks based elsewhere in the world is a potent resource for Russian economic policy institutions. Russia-US think tank partnership is particularly promising, given the leading positions of US think tanks in public policy studies. International think tank partnerships strengthen integration of Russian think tanks in the global network of economic policy experts and organizations. ROLE FOR THE REST OF THE WORLD Professional cooperation With USAID’s funding, BearingPoint and IRIS have implemented a program under which sixteen partnerships involving Russian think tanks as well as policy institutions from Central and Eastern Europe and the West, were supported. Some of these partnerships continue past the duration of the initial grant awards.

ROLE FOR THE REST OF THE WORLD : 

As the Russian economy continues to grow, the Russian government and private sector are increasingly able and willing to provide resources for policy studies. However, there could be strings attached to these modes of funding. Until the culture of private philanthropy supporting public policy studies is firmly established and/or checks and balances ensuring that government and corporate funding are not politically conditioned, international donors’ moneys have no adequate substitute as a source of merit-based support for independent professional analysis. An efficient way to deliver such support is to engage Russian grant-making foundations that follow transparent rules and rely on opinions of the nation’s leading policy experts in making grant awards. An important priority for international donors should be an “affirmative action”-type support to regionally based think tanks. ROLE FOR THE REST OF THE WORLD Outlook for the future