Russian — European Centre for Multidisciplinary Research “Baltic Practice” Russia and the EU: Uneasy Relations A Look From Belgium Academic Papers of the 9th International Session of the HSE Russian – European Centre for Multidisciplinary Research Brugge, 2 – 9 August, 2009 Edited by Nina Belyaeva Academic Director of the “Baltic Practice” Centre Vytautas Magnus University Press Kaunas, Lithuania 2010 This Academic Papers Collection has been published with the support of State University — Higher School of Economics (Moscow) www.hse.ru http://balticpractice.hse.ru Academic Papers of the 9th International Session of the HSE Russian — European Centre for Multidisciplinary Research Brugge, 2–9 August, 2009 This publication is an continuation of the series of yearly Academic Papers , published since 2006, by the ‘Baltic Practice” interdisciplinary research Center, in a form of structured and edited collection of research papers of participants of the International HSE Summer School "Practice at the Baltic Sea" or simply “Baltic Practice”, submitted by the students of State University - Higher School of Economics, as well undergraduate and graduate students from several European universities, complimented by the commentaries and research articles by research groups academic leaders and experts. The book is not intended for sale, is a scientific publication and is distributed free of charge. The volume was prepared by Baltic Practice Editorial Group: Maria Shabanova, Secretary of the Editorial Board Ann – Sofie Nyman, English Language Editor Shota Kakabadze, Managing Editor © 2010 Nina Belyaeva, idea, selection and editorial matter © 2010 Design. INTELCORP Publishing House © 2010 Vytautas Magnus University Press All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in written from the Russian – European Centre of Multidisciplinary Research “Baltic Practice”, Higher School of Economics ISBN 978-9955-12-579-2 Editorial Board Nina Belyaeva, professor of Higher School of Economics, Head of Public Policy Department; Academic Director of the HSE Russian — European Centre for Multidisciplinary Research “Baltic Practice” Stefano Bianchini, professor of Politics and History of Eastern Europe, University of Bologna, Italy Vladimir Bryushiknkin, professor at the Kantian Russian State University; Kaliningrad, Russia Thomas Bull, professor in Public Law at Uppsala University; Sweden Aleksander Chepurenko, professor and Dean of the Sociology Faculty of the SU-HSE; Moscow, Russia Katia Dolgova-Dreyer, Secretary to the Steering Committee for Higher Education and Research, Directorate of Education and Languages of the Council of Europe; Strasbourg, France Leonidas Donskis, professor and Dean of the Faculty of Political Science and Diplomacy at Vytautas Magnus University (Lithuania); a Member of the European Parliament; Strasbourg, France Michel Grosmann, professor of Physics at the University of Strasbourg, France. Carsten Herrmann-Pillath, professor of Business Economics at the Frankfurt School of Business and Management; Frankfurt, Germany Neil Jarman, Director of the Institute for Conflict Research, leader of the Expert Panel on Freedom of Peaceful Assembly at the OSCE/ODIHR; Belfast, UK Sergei Kuznetsov, professor, Head of the Data Analysis and Artificial Intelligence Chair, SU-HSE; Moscow, Russia Rustem Nureev, Honorary professor of the SU-HSE, Chair of the Department of Economic analysis of organizations and markets; Moscow, Russia Stanislav Tkachenko, professor at the St.Petersburg State University, School of International Relations; St. Petersburg, Russia CONTENTS FOREWORD FROM THE ACADEMIC DIRECTOR..........................................................................7 EXPERTS’ CONTRIBUTION....................................................................................9 VLADIMIR ZUEV EU-RUSSIAN RELATIONS: IN SEARCH OF A NEW CONTRACT WITHIN A CHANGING GLOBAL ENVIRONMENT.......................................................................................................................16 ALEXANDER NIKITIN EUROPE AND RUSSIA IN INTERNATIONAL PEACE OPERATIONS..............................................21 ANITA SOBOLEVA INSTITUTES FOR HUMAN RIGHTS PROTECTION: HOW EFFECTIVE.............................................28 CHAPTER ONE. RUSSIAN-EUROPEAN COOPERATION: CHALLENGES AND OPPORTUNITIES...............................................................35 NINA BELYAEVA, SERGEY TKACHENKO INTRODUCTION BY THE GROUP’S ACADEMIC LEADERS.........................................................35 MILENA MARIN NORMATIVE VALUES IN RUSSIA-EU INTERACTIONS..............................................................37 PETER NOVIK RUSSIA AND THE EU — COOPERATION OR RIVALRY.............................................................51 NATIA EJOSHVILI EASTERN PARTNERSHIP ANALYSIS.........................................................................................66 MILAN ALEKSIĆ NABUCCO VS. SOUTH STREAM IN RUSSIAN-EUROPEAN COOPERATION..................................81 CHAPTER TWO. DEMOCRACY VALUES AND PRACTICES: GETTING DOWN TO BASIC FEATURES............................................................92 DMITRIY ZAYTSEV, VLADIMIR LEDYAEV INTRODUCTION BY THE GROUP’S ACADEMIC LEADERS.........................................................92 ANNA SHKURATOVA DEMOCRACY: PROS AND CONS. DEMOCRATIZATION PROCESS...............................................94 EKATERINA BALOBAEVA NATION-STATE AND GLOBALIZATION..................................................................................102 KONSTANTIN ANCHIN, MARIA MERKULOVA THE INTERACTION OF POLITICAL PARTIES AND CIVIL ORGANIZATIONS: CASES OF RUSSIA AND NORWAY....................................................................................................112 RAMON VAN BRUCHEM NO DEMOCRACY: WHY THE RUSSIAN PARTY SYSTEM FAILED..............................................124 NIKITA ROMASHKIN TEXTUAL ANALYSIS OF THE FRENCH SOCIALIST PARTY MOTIONS PRESENTED AT THE 2008 PS CONGRESS.................................................................................................146 CHAPTER THREE. HUMAN RIGHTS: FROM PHILOSOPHY TO LEGAL INSTRUMENTS.........................................152 ANITA SOBOLEVA, CHUCK HIRT INTRODUCTION BY THE GROUP’S ACADEMIC LEADERS.......................................................152 BENJAMIN MOLS PHILOSOPHIC FOUNDATIONS OF HUMAN RIGHTS.................................................................156 EKATERINA TARASOVA THE EU-RUSSIA DIALOGUE ON IMPLEMENTATION OF THE RIGHT TO FAIR ENVIRONMENT...166 5 Uneasy Relations of Russia and The EU: A Look From Belgium ELENA SOROKINA LEGISLATION ON NGOS IN RUSSIA AND EUROPE................................................................175 TATIANA MILACHEVA COMPARISON OF THE EU AND CE HUMAN RIGHTS INSTRUMENTS ON THE EXAMPLE OF DISCRIMINATION OF FOREIGN NATIONALS ON GROUNDS OF NATIONALITY......................182 MARIA SHABANOVA RIGHTS OF LGBT MINORITY IN RUSSIAN LAW AND PRACTICE.............................................190 CHAPTER FOUR. CORPORATE GOVERNANCE: BETWEEN MARKETS AND POLICY.................................................................196 OLGA MELITONYAN, VLADIMIR ZUEV INTRODUCTION BY THE GROUP’S ACADEMIC LEADERS.......................................................196 YULIA SONINA CORPORATE GOVERNANCE PRACTICES. IS IT IMPORTANT FOR COMPANIES?........................198 NATALIA CHURKINA INTEGRATING INTERESTS OF BUSINESS AND GOVERNMENT IN SOLVING THE PROBLEM OF CLIMATE CHANGE MITIGATION.......................................................................................209 MARIA SINICHKINA EU-RUSSIA RELATIONS: CHALLENGES AND OPPORTUNITIES FOR RUSSIAN INVESTORS IN THE EUROPEAN UNION’S MARKET..................................................................................215 SVETLANA BORISOVA TAXATION OF SMALL ENTREPRENEURSHIP IN RUSSIA UNDER THE CONDITIONS OF THE ECONOMIC CRISIS: WHAT CHANGES ARE NEEDED?...............................................................225 DENIS KURAKIN DECISIONS OF MANAGEMENT AND SHAREHOLDERS OF THE COMPANY: HOW THEY INFLUENCE COMPANY MARKET PRICE................................................................236 CHAPTER FIVE. ENTREPRENEURSHIP: FRAMEWORK AND PRACTICE IN RUSSIA AND EUROPE.........................242 ALEXANDER CHEPURENKO, MIGUEL MEULEMAN INTRODUCTION BY THE GROUP’S ACADEMIC LEADERS.......................................................242 ELENA SUBBOTINA EDUCATING MANAGERS AND ENTREPRENEURS: COMMON FEATURES AND DIFFERENCES IN THE PRACTICE OF RUSSIAN AND FOREIGN BUSINESS-SCHOOLS IN DEVELOPED COUNTRIES..243 ELENA CHURILOVA, VLADIMIR SHUKLIN ENTREPRENEURIAL POTENTIAL OF RUSSIA AND BELGIUM: COMPARATIVE ANALYSIS OF ENVIRONMENT FOR EARLY ENTREPRENEURSHIP ACTIVITIES ..........................................259 MAXIM MARKIN, ELENA NAZARBAEVA WHAT IS MORE IMPORTANT FOR EARLY STAGE ENTREPRENEURS IN RUSSIA AND BELGIUM: HUMAN CAPITAL VS. SOCIAL CAPITAL.......................................................271 EKATERINA YARYGINA, MARIA KARPASOVA ACCESS TO REAL ESTATE AS RESTRICTION OF SMALL ENTREPRENEURSHIP DEVELOPMENT IN RUSSIA...................................................................................................279 DENIS BOLDIN, ANDREI KUZMINOV, KONSTANTIN ROZANTSEV SME AND INFORMATION RESOURCES FOR IT IN RUSSIA (A CROSS-REGIONAL COMPARISON).....286 APPLICATIONS......................................................................................................297 HSE RUSSIAN — EUROPEAN CENTRE FOR MULTIDISCIPLINARY REASEARCH “BALTIC PRACTICE”............................................................................................................297 UNIVERSITY-HIGHER SCHOOL OF ECONOMICS....................................................................299 THE AUTHORS.....................................................................................................................302 6 Foreword from the Academic Director Introducing the volume, that is a result from the NINTH academic summer session, -is quite a challenge: each time, speaking about a new book, I am asked to highlight something particular, something surprisingly new, unusual, and, definitely, ‘better’, than the previous “Baltic Practice” session and volume. This is no surprise. If you take an effort to run an academic project for ten years in a row, you HAVE TO make it more interesting and more attractive each year, just to keep the old team members “on board” and get the new participants involved. So, like it or not, we have to be better each year, otherwise the project would not develop — in terms of its geography , disciplinary diversity and academic quality,- given the fact, that most of it is self-supportive. This time, however, I do not need to search for the particular ‘unusual features’ of our summer session in Dudzele-Brugge in august 2009, that had provided content and structure to this volume, because it was — altogether — most unusual and unique, as no one before, and only a solid academic tradition of the joint work of our Academic Council and responsibility of the research group Supervisors — makes it look “as if it is a regular research papers collection”. Let me briefly list just some of those peculiarities, so that the readers can appreciate amount of effort and collective work, invested in this volume. First of all, the unique was the place of the summer session itself. For a Russian-European research Center, moving its academic sessions each year to a different country, and having already visited all the Baltic States, Finland, Germany and Sweden — it was almost like “living a dream” to have next session in Belgium — in the very heart of United Europe, home to major European Institutions, and on a side of the “jewel” of medieval European architecture — in Dudzele-Brugge . It came with a challenge of “informal study-place”, but created a unique atmosphere of warmth and friendliness of Belgian country-side. That summer was also unique for the level of political challenge, that we found ourselves ready to meet: in the whole history of Russia-EU relations, that we were monitoring since 2001, when Baltic Practice started in Kaliningrad, the climate of those relationships was, probably, the worst and “ close to freezing”, particularly after the Russian-Georgian war. This is not to mention the fact, that that the long- awaited New Strategic Agreement between Russian Federation and the EU was, once again, put on hold and the future of it is still very vague. Clearly, this is environment is not the best to discuss Russia-EU relations. Nevertheless, we decided to face those challenges with our analytical instruments, not to avoid difficult issues, but, instead, focus on them in our debates and in our papers — trying to address those issues in scholarly manner. Another unique feature of this volume — for which we have to praise our Student Organizing Committee — is the broadest possible representation both by 7 Uneasy Relations of Russia and The EU: A Look From Belgium authors and the summer session participants — of different disciplines and different faculties : Law, economics, sociology, management, world economics and world politics, psychology, philosophy, political science, municipal government and business informatics — almost all faculties of HSE were working together in Bruges! This created an interactive and creative knowledge-sharing space and truly inter- disciplinary scholarly environment, that greatly contributed to our collective wisdom . More to this : in this volume we were able to present much broader spectrum of young scholars from different European countries — Belgium, Netherland, Slovenia, Serbia, Georgia and Belarus. But the most unique accomplishment of this year’s volume — in my personal consideration — is the devoted and cooperative work of the members of our International Editorial Council, whose names you see on the inner-cover of the book. Each of them took their responsibilities of “second readers’ very seriously , which significantly contributed to the papers academic quality. I want to take this chance to express my most sincere thanks and appreciation — to the members of International Editorial Council for their rigorous comments, to working groups Academic Supervisors for the inspiration they give to participants as well as patience in correcting their mistakes, to Student Organizing Committee for their energy and enthusiasm , to HSE Administration for their continues support — and to all the authors and project participants for their interest to the theme of Russian-European relations. It is a great honor for me to present this volume as a result of our common work. Nina Belyaeva, Prof., Chair of Public Policy Department, Head of Master Program in Public Policy and Political Analysis of the State University — Higher School of Economics (Moscow), Academic Director of the HSE Russian — European Centre for Multidisciplinary Research “Baltic Practice” 8 Experts’ Contribution Vladimir Zuev EU-Russian relations: in search of a new contract within a changing global environment1. The PCA had a very important impact on EU — Russian relations. That was a milestone of the period and meant a breakthrough in relations. But today the situation has changed dramatically, both within EU and inside Russia, as well as outside them — the global economic and political landscape is completely different. A new breakthrough is badly needed, but seems unlikely for the moment. 1. Impact of change of the global environment on the Russian-EU dialogue Since the start of the EU-Russia dialogue in the year 2004 to conclude a new agreement to substitute the PCA the situation in the world has changed dramatically. World financial and economic crisis reversed the already established perceptions of sustainable economic growth. The rise of the new economic powers pushes sides to change their external economic relations priorities. The word energy prices first rose dramatically from 2000 till mid 2008 up as high as to around $150 per barrel of crude. And afterwards fell to a low of around $50. (Just imagine, that a decade ago in 1998 oil prices were at a low of $9 per barrel!) Russian companies have started the new aggressive policies of acquiring western assets. Climate change prevention has become a priority of the international agenda, Kyoto protocol has been ratified and implemented, new Copenhagen arrangements are about to follow. Political inputs for the relations are not “working for” the intensification of economic links. An intention to place AMD components in Eastern Europe, a military conflict in Georgia and other political developments of the kind rather create further lines of tensions in Russian relations with the West. EU Eastern partnership program has been very cautiously met in Russia. Hopes for progress in Russian relations with major global institutions have not been materialized (WTO entry talks at a stall), while efforts to push forward regional integration (other than with the EU) has been intensified (SCO). All of these changes brought new dimensions to the Russian — EU economic dialogue and made it substantially more complex. 1 The study is being carried out with the financial support of the State University-HSE Scientific Fund. 9 Uneasy Relations of Russia and The EU: A Look From Belgium 2. EU new strategies on markets and partners EU is looking everywhere for new reliable partners in a search of a more secure economic position. Eastern partnership, Mediterranean alliances, Central Asia, Northern Africa projects — all of them are supposed in a way to lower the energy dependence from Russia. The EU priorities are well known and expressed in many of the recently adopted documents. Just to summarize the essentials, which are of the importance to the logic of this study, we should mention: — Irrespective of new regulative anti-crisis measures, within the EU the policy of liberalization of markets and opening up of economies for European and foreign competition remains an uncontested priority; — EU is aiming an increased security and reliability of the energy supplies and a puts a task to establish a more concise EU energy policy2; — Different proposals of the "climate-energy package" to transform the EU industrial fabric into a low-carbon clean and green economy. Adopting the "climate-energy package" is the manner in which EU credibility is demonstrated in the international arena 3; — A set of market liberalization measures to make the whole EU idea work; — Specific energy efficiency packages; 4 — Reciprocity becomes all the more introduced principle of economic relations. For a sustainable future, the EU has agreed to meet the following objectives: — saving 20% of projected energy consumption by 2020; — increasing to 20% by 2020 the share of renewable energies in overall energy consumption; — increasing to at least 10% the share of biofuels in overall petrol and diesel consumption by 2020, provided that sustainable, 'second-generation' biofuels from non-food crops become commercially available; — cutting greenhouse gas emissions by at least 20% by 2020; — an internal energy market which provides real and effective benefits to every person and company; — better integration of EU energy policy with other policies, such as agriculture and trade; — more international cooperation. One of the significant changes in the EU policies, with the prospect of influence on the economic partnership arrangements with Russia, has started their way since September 2007, when the European Commission has adopted a third package of legislative proposals to ensure a real and effective choice of supplier and benefits to every single EU citizen. The European Commission package includes a number of measures to complement the existing rules5. Separation of production and supply from transmission networks: Network ownership and operation should be "unbundled". This refers to the separation between 2 Council of the European Union, 7224/07, CONCL 1, Brussels, 9 March 2007 3http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/08/567&format=HTML&aged=0&languag e=EN&guiLanguage=en 4 The Energy Efficiency Action Plan. CEC. Europa.eu.int 19 October 2006 5 CEC Reference: IP/07/1361, Brussels, Date: 19/09/2007 10