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Investment climate Across Emerging economies- to Russia with love

 

By Robin Trehan (B.A, MIB, MBA). Managing Director at Transatlantic Investment and Advisory.   www.tafunds.com

 

Where to put our next dollar for investment? While a lot of being said for the growing economies of China and India but I will suggest putting dollars in Russia. In my opinion Russia has got tremendous growth opportunity which has just began to spring. We all know about its great tradition, culture, art and vast source of intellectual ability. Next step is to bring is close to us- To Russia with love.

 

Russia has been a one of the main players in international science and technology for a long time and with its footmarks in defense, space research and engineering it is another big power which is going to play even a more vital role in international business arena. Russia is also sitting on vast reserves of oil and gas reserves and it has just begun consolidation of its energy industry. Companies like Lukoil http://www.lukoil.com/ Rosneft http://www.rosneft.com/english/, Gazprom  www.gazprom.com all are going to be household names across the world.

 

Russia also has a great academic base and excellent educational institutions which focus on practical education and R&D.; We must also not discount the fact that both India and China has very small R&D; bases both in terms of science and technology and their technology in multiple sectors is either borrowed or purchased from Russia or Israel.

 

Russia has been America’s major competitors for long time both in space and defense sector and that is one the reason we have strive to work harder to maintain our edge. We love competition and has let to great technology advances in USA. Both Americans and Russian know when someone says impossible, it means they cannot do it; it does not mean we cannot do it. Mutually, we also know how to dream big and preserve the dream and transform it into reality.

 

Also, we must understand that stronger Russia is in best interest of USA. The fact is that we need Russia and Russia needs us. Our over reliance on China and India is something to be questioned. Also, the changing demography of India is of great concern. With its huge Islamic population and soft approach towards terrorism, India is sitting on its own problems. Also, growing China and India relations with Iran is of great concern. We have been facing the same problems at home what Russians and Indians are facing in Chechnya and Kashmir.

 

America needs to protect its interest and time has come to look at Russia in new light. We need to help Russia to build its infrastructure to boost its economy. Vast reserve of natural resources in Russia will help our companies to come in partnership with Russia energy giants and help to stimulate industries and generate employment. A great Russia consumer market and real estate boom seems to be around the corner.

 

Russia is also a power source to Europe and to growing America energy needs. We need to bring is close integration with Russia to bring in stability and efficiency its economy. We need to make them feel important and bring in happiness and prosperity. Our obligation as the biggest power in the world is the obligation of wealth creation and promoting democracy and prosperity across the world.

 

We are living in a world where everything is changing constantly, we need to learn to change and determine what is in our best interest. Today’s preparation determines tomorrow’s achievement and dollar invested in Russia seems to in our best interest.

 

Robin C. Trehan is an expert in the filed of mergers and acquisitions and private equity capital. He can be reached at robin@tafunds.com                  www.tafunds.com

 

 

 

 

 

 

 

How are you doing, Germany?

By Robin Trehan, (B.A, MIB, MBA) Partner at Transatlantic Funds.

Wie geh es Ihnen, Germany? Germany has been our closest ally both on economic and political front. The relationship with Germany over many decades has been like a glass of “Beer”. Beer has some bubbles, some intoxication but basically smooth like water. Similarly, our relations with Germany are with some tribulations but basically they are very good and lot of intoxication and love for each other.

Germany, which is one of the founding member and pillar for European Union, has been also a key trading partner to US for decades. The United States is Germany's second-largest trading partner with two-way trade in goods and services totaled $88 billion in 2000 and it has since than continue to grow. Germany has also actively participation in NATO led forces and continues to be a key ally of US, war on terror.

Germany GDP per capita was $29.700 (2005) and GNI per capita: US $34,580 (World Bank, 2006). It is the world's third largest economy in USD exchange rate terms, the fifth largest by purchasing power parity PPP) and the largest economy in Europe. German companies like BMW, Bosch, DaimlerChrysler, Porsche, SAP, Siemens, Henkel and Merck are household’s names across the world.

German has also has a great cultural heritage as being the birthplace Johann Sebastian Bach, Johannes Brahms and Ludwig van Beethoven. Germany’s gift to European classical music is colossal while Goethe, Nietzsche, Kant and Brecht are giants in the world of letters and philosophy.

Present day, Germany is a global power and is architect of European Union policies. The future of European Union growth is tied to economic growth of Germany and France. Germany economy is heavy export oriented, with export accounting for more than one –third of national output. Still there is a high unemployment rate of 12.1% (Jan 2006) and is one of the main concerns across German population, and it can have an effect on the stability of the European Union. Immigration from new members in the union is making it even much more difficult for to reduce the unemployment rate.

Germany has been trying to solve the problem of unemployment by taking measure to cure its inflexible labor market, revamping its social security system and making the investment climate less bureaucratic to promote business and entrepreneurial ship.

Germany is a strong campaigner for closer European Union economic integration. Its economic and commercial policies are increasingly determined by agreements among European Union (EU) members. The Franco-German Alliance is also taking a new meaning as the future of the Europe is very much dependent on the growth and prosperity of these two countries.

We hope to continue building our relationship with Germany in list of new Europe.


Robin C. Trehan is partner at Transatlantic Investments and Advisory. He can be reached at robin@tafunds.com