UpDate - Vol. 12, No. 37, Page 1
July 22, 1993
Russian officials learn how to be bullish about economics

     It was not happenstance that the University of Delaware was chosen to
conduct the economic education segment of the Russian Parliament Exchange
Program, according to Elizabeth Derby, executive vice president of the
American Foreign Policy Council, the program's sponsor.
     Under the program, six Russians, who serve on their country's
parliamentary staff, came to campus to study economics at the University.
     They joined U.S. teachers who come each summer from across the country
to study economic education.
     "I asked those in the field of economic education for someone who
could make economics dynamic and relevant, and Jim O'Neill (director of the
Center for Economic Education) was recommended. I came to the campus to
interview him and later Don Puglisi (MBNA America Business Professor and
Professor of Finance) and again to hear their lectures," Derby said. "Then,
I conducted a poll of their students for feedback, and their reactions
confirmed my own positive response.
     "Economics and democracy go hand-in-hand and understanding a
decentralized economy, as opposed to a command economy, is crucial. The
economic session at Delaware was a slam-dunk, home run from our point of
view, beginning with the Commodity Game to O'Neill's lectures at Delaware
and Puglisi's lectures in Washington. Meeting with President Roselle and
the reception honoring the group were other highlights."
     According to O'Neill, some of the topics covered with the Russians
were the basic economics of a free market system, supply and demand, the
role of government, taxation and the monetary system.
     In another exercise, O'Neill had the Russians manufacture a product, a
paper notebook, then decide what to do with profits and to determine
workers' pay. Some felt all should be paid equally; others that pay should
reflect individual contributions to the manufacturing process.
     A visit and tour of the University's Center for Composite Materials
was arranged to illustrate the role of private and the public sectors in
joining together to sponsor research.
     O'Neill also invited Jack Stoltz of Stoltz Realty Co. to talk with the
group. An entrepreneur who has traveled to Russia, he spoke on the
procedures of doing business in Russia, saying such joint ventures require
time, financing and sound business and legal advice.
     Learning economics on a more personal level, the group had an
opportunity to shop at a mall, O'Neill said.
     Dmitry Klimov, deputy of international affairs of the Russian
federation, was impressed with his first visit to the states.
     An historian, who served as leader of the group of visiting Russian
economists, Klimov called the information gained during the trip "very
impressive, very productive."
     'It will be helpful for me in my future job," he said, "especially
regarding the market economly."
     According to Carolyn Round, program director of the American Foreign
Policy Council who accompanied the Russion on their five-week visit, the
experience at the University of Delaware was excellent. She said, "Dr.
O'Neill was very good at understanding where the Russian visitors are
coming from."
     She said it was obvious that O'Neill's overseas experience in Bulgaria
gave him an understanding of how it feels to be a foreign delegate and that
had a positive result on his interaction with the Russians.
     The economics session at the University was just one of the
experiences planned for the group, according to Derby.
     "Our goal was to supplement lectures and discussions with actual
experiences. It's one thing to talk about the right to own private
property, and another to be involved in the nuts and bolts of real estate
transactions. We arranged for the Russians to 'buy' real estate, including
an office building, lot and house," she said.
     A senior editor from Reader's Digest talked to the group about freedom
of the press in another session.
     An encounter with the criminal justice system was planned to
illustrate the workings of trial by jury.
     One Russian group member was arrested on a drug dealing charge, while
another acted as an undercover police officer.
     The remaining participants were assigned to positions in the judicial
system (prosecuting attorney, defense attorney, judge and the official who
assists with jury selection) with American counterparts who actually hold
these jobs.
     The defendant was arrested, went to jail, had bail set, and was tried
by a jury of volunteers. Following the trial, there was an off-the-record
session with those who work in the criminal justice system at the
penitentiary, Derby said.
     A request has been made for a group of Russian presidential staff to
have a similar program. Plans also are being made for U.S. Congressional
staff to visit Russia.
     According to Derby, these exchanges are important because the
individuals involved play influential roles in policy-making as senior
staff members of government officials and representatives.
     The exchange program increases the understanding of the two countries
by both Russians and Americans and provides an opportunity for the
participants to get to know each other.
                              -Sue Swyers Moncure and Ed Okonowicz