intended to have a profit for the russian government it's not a project to prove that it's in project for people happiness it's extremely profitable because food in general is very profitable but of course huge investment on the government side is that this will hope development of food culture in the regions but what i was asking primarily about is the is the way the russian state manages the challenge because there are lots of studies for example suggesting that russian managers tend to be authoritarian they subscribe to the authoritarian style of management simply because it's easier to manage things this way but when it comes to the world cup i think you have to be far more flexible than that so do you think it's a challenge anything when. it goes great i think people who are responsible for security. sometimes are very close.

no money should be closed but security is. measured by success and. researchers to take so it was successful but i guess. you would agree with me that balancing this on the one hand the security challenge but not doing it not overdoing it has always been a bit of a challenge for us i was watching the discussion you had here in moscow the other day and one thing that struck me was that your or your opponents mentioned that russians are unique when it comes to very low tolerance off. unpredictability or of uncertainty and that's actually you know the other side of insecurity you tend to command and control so much that you essentially shut down everything else that shows up in the many aspects of the russian culture how would you change that and i'm sure the. example of course there is a lot of command and control. the government organization of the world cup but it

won't come. by international standards so the need to do. is judged by millions of people who came to russia. this is no russian problem it doesn't show up in their condition of this world cup do you think that's a function of many guests being foreign there is and russians traditionally be more tolerant and open and nicer to you for and there's only one thing which is very important that of course more russian spectators than for the spectators meant the national spectator come to an international event and see what foreign for interests you see as the next time she or he comes to a stadium she will know what to expect right so this actually explains to russian what is normal event what i also hold with explains to the russian police force which is one of the largest in the world that there is a certain standard that should be applied across the board not only when you have

a major tournament but also when you don't have it and i think. that shows them to open people to enjoy the show not to come on the control now. i came across a report the other day suggesting that most of the world cup financing one not into the sports venues into the infrastructure surrounding them the roads airports communications power grids so there seems to be a broader economic effect than that and i sometimes get an impression that the kremlin towards these events not only show how magnificent it is but actually to use it as a crutch just sort of get things moving that's what otherwise not be moving that swiftly is it fair to look at the world cup and the other tournament as a crutch that the russian government used. it was about like one third of the one third of the total expenditure on the world cup was spent on roads and. ports

and i think this is the way it works in russia so the government needs to have big projects to spend money on improving on improving airports and i guess an actual question to a foreigner would be why i can to do it without having a major event of my country. and it's a difficult question but i think what matters when you control corruption and you do not have democratic elections is that you kind of make them promise and then let people jordan this kind of these i mean when you just give. prevention programs you give money to improve. health care then a lot of this is huge because it's very hard to measure but if you say you're going to have a world cup five games in the world cup you'll have a stadium and you'll have a railroad right very observable things so it's harder to see to so they're basically i think it's easier to control. it too because everybody

watches now. i know you're rather skeptical about the russian government's ability to push forward with a major reform agenda as was promised by president clinton for his not store a current term in office do you allow for any chance. the government may defy the skeptics like for example are for the both team did in the match against egypt although not against the unfortunately ok of me and just not expect it to do because president putin is in power for twenty years and i think he's very much set on the course that it's already choosing and actually it seems that he's very much. to the people that work for him so. just do not expect any kind of major changes and if you mention reforms that do not come with major that leads

me to my next question because i heard you say that the reforms are most likely to come off to put in which sounds rather counter-intuitive to me because whoever comes out after putting the will definitely have. much less political capital to push for. pleasant reforms as well as much last control of the of the baroque crissy isn't it very much now and never. discussion a problem in political science is that those leaders who have a lot of political power or. actually pursue reforms and those leaders who appear in the much more compared to environment they sometimes push for marsh luxury forms but complain bitterly about your from various units and. to the country. circumstances she actually never controlled the government so he was always there position but his government did much more reforms them but the results of those

reforms i think or at least a perception of the results of those reforms is a very very contentious issue in russia i think if you paul the majority of russians they would not tolerate yeltsin's policy it's the same thing. and for the kind of the crisis of. emergency room for us stage four cancer ok but this is how politics works not only in russia i think it's more it's more general but i want to go back to the point that the you mentioned that putin has been in power for so long. for him to to push for anything new and it's one thing when you're talking about political will reach i think was the case maybe seven or eight years ago but it's another thing when you are faced with an accurate necessity because russia is in the pretty difficult economic situation it is facing a major decrease in the labor force it is challenge when it comes to the access to

technology it is challenge when it comes to day access of financing its main axe sports have now become its liabilities i think you would agree that the pressure. that russia faces. economic challenge and challenge of sustainable to roof reach it was therefore but there is no threat there is no. crisis so you seriously believe that the kremlin could have four more of the same. problem until is that something that you i mean we cannot get into vladimir putin's had but given how long he has been in power his rhetoric about this country the notion of patriotism he subscribes to do you think he's really a kind of. laid back person who would just enjoy his time in power and forget about what comes after him. thinking about.

something good when they're forced to. change for election or doesn't need to. be. but they are working on the notion of a domestic challenge but i think russia is in there pretty challenge place to external i mean the. i mean the difficulty you tend to refer to it as russian geopolitical adventurism i think it's about it in a different terms but it is quite clear that when it comes to russia's positioning of itself around the world there's kind of a balance between russia's and bishan and what russia itself. is next gen political adventure that comes from russia to russia it never came exactly that's what i what i'm trying to drive at and do you think. before and. it was eighty years ago i'm not talking about foreign threat but to sustain that level of

ambition of the current leadership past your political ambition it will have to strengthen the country from the inside including economically do you think. you could imagine that president putin will spend a lot of term. taken care of just political things reach i think are not important and not should have been for russian development and will not pay enough attention to going to do now one thing that the russian government announced just recently was this plan to increase in their retirement age and despite the kremlin's very apparent efforts to distance itself from that measure it is already clear that it is eating into will put in favor ability ratings i think the latest poll by a film showed that confidence and put him putting is now the lowest in five years you still don't take that as a measure of the crime and seriousness or resolve to do any popular things. in a venue to film finding sorry i think basically all these issues there's also that

they even when they show that put his popularity everything matters. they have a preconceived notion. not sure that they even do real but. don't you take that as a measure of the resolve down pushing for this very unpopular retirement pension richard you've seen with this is unpopular will see you that there will be major protests and not sure about this i think i think this was sort of expected so those people who was not protesting against election of president bush and they will not be protesting against. increases mr stern and we have to take a very short break now but he will be back in just a few moments stay tuned. are. usually

taught is project to. take care of our culture. your good fun. most of them are from a completely different cause i would just. as static. the problem is that we kind of have a spode within that state they call a nice to have this non part of sweden. and i want to get something a computer government. no no and it's not some stop stop stop stop here quote go go go go my culture is a christian country and we don't do things like that and we will tell you if you do then we hate you and someday hopefully you can do something about this stuff. we cannot be naive about this cannot attract more gangsters rapists and these

words actually that are tearing down this city we wants to be a swedish country and we want and welcome the people who live here to go back. apply for many clubs over the years so i know the game and so i dived. football isn't only about what happens on the pitch for the final school it's about the passion from the fans it's the age of the super manager killian narrowness and spending suited to the twenty million a one player. pool it's an experience like nothing else going to win because i want to share what i think what i know about the beautiful guy my great so will transfer . and makes this minute.

in the heart of the swiss alps this is a place probably more secretive than the pentagon more mysterious than the cia and better guarded than for knox swiss customs are here permanently all the site is controlled by them and they impose the opening times where. it is from is all plus the procedures in place of the strictest in all europe masterpieces by artists like pecans oh and modigliani i can't boards and sold inside this warehouse that's where the report comes in it covers up deals which are naturally discreet commercially discreet felt but also discreet because they concern fraud. some of those paintings are linked to dark secrets nobody knows how many of these secrets a kept inside the geneva freeport system you'll never obtain an inventory of all

the works in the freeport who knows how many there are three hundred three thousand three hundred thousand is it a matter of confidentiality only is it the world's black box of the art business. welcome back to worlds apart with constantine sun and professor at the university of chicago's harris school of public policy it is just one in three just before the break we started talking about the every form to increase or the proposal to increase the retirement age. for the russians and i think everybody agreed that this kind of proposal is motivated by one of the most accurate challenges for the russian economy the prospect that shrinking it in its labor force i saw some of the figures cited for example by russian economist alexei could read that russia may

lose about ten million working age population over the next ten or fifteen years. i suppose an increase in retirement age should not solve the problem long do you expect it to be a sort of a stand alone policy or would it have to be accompanied by some. sort of a technical adjustment so basically there is some creep in this at the highest level with the economic situation is such there's no desire to make reforms these six words some accountant can just for example there is not enough money to pay pensions this was basically i think this was basically expected. so you suggest that this is simply a way of. not spending enough on the pensions of course because the money in the budget and the expenditure is so if you can take more even use your

expenditures. on. things you could spend less political ventures you could pay these pensions you wouldn't. the labor. shrink it is a major challenge for us i was interviewing a russian the comic development minister just the other day i'm he was actually i mean it is clear when you when you look at their statements that they're very much concerned about that issue there are a lot of policies going into investment for example into young women and providing childcare so that they can get those women out of the. homes put them back into the labor force you would. think that this is a. more important issue in labor productivity. incentives for interpret nurse to invest to make huge capital expenditures and on the face of it if you. then this means that you have

a lot of business opportunities but you don't have and that is just too much. too much security services pressure and business well speaking about business support changes the russian authorities are usually complimented for their. policies. there are evidence excesses like for example the historically low inflation but their achievements in my current economics a far less inspiring i would say why do you think russia still remains such a challenging place for small and medium sized businesses to develop is that because the kremlin despite all day lip service doesn't want that segment to grow or is it because it simply doesn't know how the stage of development. sort of a poor rich. sort of. sort of a poor village world. just much much stronger efforts on the government. just much more efforts to reduce

corruption to corrupt official. of police to improve efficiency of. the. first. i was. a conference earlier this year where one of the top proponents of liberal economic reforms in russia. the main mistake and they. assuming that the russian culture the russian values. need to change in order to accommodate the economic wisdoms rather than the other way around that you need to . adopt economic reforms to the peculiarities of the russian a character i wonder where do you come out on. how customisable is they decide the science of economics. i think this is some extent true. things like. food nation of the story i don't think there is any kind of historical.

inefficient and corrupt or inefficient course this could be improved and this could be changed but i mean when you when you say about the inefficient corrupt police. i think we would all agree that there are still plenty of instances of corruption and torture and many other things that are absolutely horrifying but when you look at the trajectory or how that institution has been changing you really see no change comparing let's say seventy years ago. the changes sort of. just. didn't improve efficiency. see image improvement when you come to. see. the police. not just

a law enforcement issue that's a major value that will take a major rally because russian people do not trust one another you know that. they're going to have a totally unproductive person. this will be improved productivity owner of a small shop. in a problem solved right well i guess it's a bit of a chicken and egg question of whether you. get rid of the or improve the quality of the policing or improve lives in your society so that people do not feel the need to private businesses do not feel the need to hire additional person to sit a day on trains and do nothing essentially but in your view you do believe that it's all about improving the quality of their of the police.

places now i know that you're a big believer in expanding access to your foreign investors in russia and i think there is quite a bit of a regional variability when it comes to investors experiences in this country for example there are regions like kaluga which are which is one of the leaders in after partially because it's a kind of a stunning success story. because from what i read about them after the collapse of the soviet union they pretty much have nothing except our geography of being close to moscow on the up they streamlined the regulation they've been credited for fighting corruption obviously there are other regions that have not named but do not provide for a success story. what explains this variability in your view is it really all about the kremlin and the police force as much as they are local administrators. of.

basically because they do. so that's probably. the mother of invention. close to the wall. you also very much in favor of privatization and i think you would agree that a big hurdle there is our court system and a very uncertain let's put it that way ability to protect your property rights in russia. this is a company that was nationalized. i have my own experience in the state i can say this is not a pleasant one but what i wanted to ask you something different because i recently heard and idea coming out of your crane that would allow foreign investors there it's you bypass the ukrainian court system altogether and to go straight to the british or it's obvious that that's not going to happen in russia any time soon probably never but what do you think of that i. think it could work to do you can

you borrow as other countries institutions that or rather outsource. to institutions and. it's not it's not a good if you create an example russian businessman for. contracts that. it is a. breach of course. national clause in the contract but generally speaking if you sign the contract here you should be able to you usually are required to go to a local courts ok i think it's extremely important for each for each country to develop its own course. business. the country court the court for businesses because. ok if if you're paying. example of economic development.

experience. so i'm not sure that this will be. when russia was going through its previous reformist stretch it was the university of chicago where you're currently work that had a lot of influence economic influence. influence because. i just cannot remember. the economist who. is. well. but he was very. and he came as a kind of. stories about his reforms in well there was some influence and this is. i guess way off leading to the last question i have time to ask you because i think when it comes to ukraine it is now a lot of people who are advising the ukrainian elites who are trying to bring new

institutions to ukraine and i just wonder what's your hunch. as an economist which project is going to be more successful because russian will be general do not believe that it was very very stunning success. after its serious form russia back in one thousand nine hundred do you think your crane will be more. things that. if huge disappointment if. you create the kind of the. russian economy is much much more strong but i guess the question is not only. the absolute figures. but also they have billeted to bring new practices to bring new institutions and to in

a way to change the culture that's what allow you to. criticize and the current state of the russian economy the ukrainian government and the ukrainian economy because a lot of those took a pitch of russian i mean we russians are usually accused of you know taking pleasure in ukrainians failures and this is not what i thought i would never do. i would neither but i wonder because i think that's applies to both of our countries i wonder why do you thing it is so difficult to apply the foreign advice in india's cultural environment again is it the cultural environment is it something else that does not allow adopt you know advise that's worked in other countries to work here just as well. and the advice is only reason acquired by both. this is always very difficult to make the patient to do what the

doctor wants to do that might be a lot of mistakes since it was it was if you're quite as proof is that it was a first since it was luck so that's just very difficult well. rather disappointing now to mr stein and we have to leave it there thank you very much for coming here and i encourage our viewers to keep this conversation going in our social media pages and hope to see same place same time here on worlds apart.

just financial survival. when customers go by you're just. now well reduce some lower. that's undercutting but what's good for market is not good for the global economy. or the world in russia mantras architects visionary stuff the largest international congress on the development of july seventeenth through twenty seconds do your part

business program interactive exhibition urban details on my suburban forum dot com . it is day fifteen of the world competition russia tonight will find out the last teams to go through to the next round of the tournament and the fans just can't get enough of football's biggest event. let me explain some of those of my sport among the crowds that have descended for the tournament may indeed surprise you. in other news british authorities are reportedly planning to ted. paul's house painting the former russian double agents residence as contaminated after his poisoning and russia says any such action would amount to the destruction. of libya a district off the seaboard so he has reportedly been captured by the libyan.