Business Law & Order June 18, 2012 - Eugene Pyatenko
Contract: The writing which contains the Agreement of theParties, with the terms and conditions of their obligations to do, or not do a particular thing . . . The “Culture” of the Deal Presented by Eugene W. Pyatenko Evans & Luptak, P.L.C.
Successful consummation of any venture – business or otherwise in today’s global community (with its varied socio-economic issues) requires a competitive and cultural understanding of, and integration with the chosen market or opportunity. Effectiveness of the process (and resultant sustained profitability) will be directly related to an understanding of “local” and/or market culture Bridging language barriers is just a beginning (this does not mean Non-English; it may also be “industry-speak”). Each market and opportunity also contains its own cultural nuances and a spectrum of business concepts. Building a model which is mutually satisfactory to all interested parties is critical to success of any venture.
Every aspect of a project will have a cultural overtone: Licensing Scope Motivations of the parties Structure Local employment Regulatory environmentThe principles are universal in their application. In order to navigate the gauntlet of regulation, politics, competition and bureaucracy, cultural fluency is essential. In international ventures, a great “interpreter” may only be the the beginning. The Former Soviet Union (“FSU”) presents a prime example . . . “Westerners” ofter reference the fifteen (15) unique Republics/State of the FSU and each of their varied autonomous regions as “Russia” – often a project ending mistake.
Republics of the Soviet Union Independent nations1. Armenian SSR Armenia2. Azerbaijan SSR Azerbaijan3. Byelorussian SSR Belarus4. Estonian SSR Estonia5. Georgian SSR Georgia6. Kazakh SSR Kazakhstan7. Kyrgyz SSR Kyrgyzstan8. Latvian SSR Latvia9. Lithuanian SSR Lithuania10. Moldavian SSR Moldova11. Russian SFSR Russia12. Tajik SSR Tajikistan13. Turkmen SSR Turkmenistan14. Ukrainian SSR Ukraine15. Uzbek SSR Uzbekistan
Before the fall of the FSU (early 1990’s) the “USSR” covered an area approximately twiceThe size of the United States and was filled with a diverse assemblage of people belongingTo a variety of different cultures and who practiced almost every known religion on earthWhile speaking a myriad of languages, including:Armenia: Armenian/Russian oKurdish minorityAzerbaijan: Russian with script changed from Cyrillic to Latin oKurdish minorityBelarus: Russian / BelorussianChechnya: (A post soviet independent nation): Russian / ChechenGeorgia: Transliterations from Georgian script, instead of Russian Cyrillic oAbkhazia. Autonomous republic, now de facto independent oKurdish Minority oSouth Ossetia, autonomous area, unsettled statusKazakhstan: Russian / Kazakh oKazakh dialect-speaking minority of Karakalpakia (Uzbekistan)Kyrgyzstan: Russian / KyrgyzMoldova: Script changed from Cyrillic to Latin oGagauz minority; Russian / Romanian / Gagauz oUkrainian minority in Transdniestr region
Russia: Russian . . .plus o Abaza – in Karachay-Cherkessia o Adygea – autonomous republic in the Caucasus o Adyge – (Circasian) o Altay – autonomous republic; formerly, Gorno Altay o Avar – in Dagestan republic o Balkar – (Karachay-Balkar, Turkic language,) in Kabardino-Balkaria and Transliteration scheme o Bashkir – in Bashkortostan autonomous republic and Chelyabinsk region o Buryatia – Autonomous republic in south-central Siberia and Transliteration scheme o Chechnya – listed as an independent nation o Cherkess – (Circasian) in Karachay-Cherkessia o Chukchi – Minority of easternmost Siberia o Chuvashia – Autonomous republic and Transliteration scheme o Circasians – Adygea, Cherkess in Karachay-Cherkessia and Kabardian in Kabardino-Balkaria o Dagestan – autonomous republic in northern Caucasus. Avar, Hunzib & Lezgin languages o Erzya language in Mordovia Republic o Eskimos in Siberia – Asiatic Eskimo or Siberian Yupik language o Estonian minority in Petserimaa region o Evenki minority in Siberia o Finnish in Ingria, and Karelia o Hunzib – north-east Caucasian language in Dagestan
o Ingria – Izhorian or Ingrian; Votic; Ingrian Finnso Ingushetia – Republic in the Northern Caucasus and Transliteration schemeo Kabardino-Balkaria. Republic in the Northern Caucasus; Kabardian (Circasian; with Transliteration scheme) and Balkaro Kaliningrad region – old German names + Lithuanian minorityo Kalmykia – Autonomous republic only buddhist nation in Europe and Transliteration schemeo Karachay-Balkar – two dialects of same Turkic language spoken in Karachay-Cherkessia and Kabardino-Balkariao Karachay-Cherkessia – Republic in the Northern Caucasus – Several languages and Transliteration scheme for Karachayo Karelia – Autonomous Republic – Russian-Finnish-Kareliano Khakassia – Autonomous republic in Siberia and Transliteration schemeo Khanti – Ugric people of Siberiao Komi Republic (Zyryan) and Komi-Permyak and Transliteration schemeo Koryak in Kamtchatka peninsula, Siberiao Lezgin in Dagestan republico Lithuanian in Kaliningrad regiono Mansi – Ugrian language of Siberiao Mari-El republic – Russian-Mario Moksha language in Mordovia Republico Mordovia Republic – Mordvin languages Erzya and Mokshao Nenets – Uralic people living in the northern frontier of Europe and Sberia
o Nganasan – Uralic-Samoyedic people of Siberiao Noghay in Karachay-Cherkessia and Transliteration schemeo North Ossetia – autonomous republic of the Caucasus – Ossetian and Ingusho Ossetian in North Ossetia and Transliteration schemeo Sami (lappish) minorityo Selkup – Uralic people of Siberiao Tatarstan – Republic within Russia – Russian –Tataro Tofalar – Turkic language of the Sayan mountains of Siberiao Tuva – Autonomous republic in south Siberia and Transliteration schemeo Udmurtia Republic – Russian-Udmurto Ukrainian in Kuban and Rostov regionso Uralic nations – multiple applications of dialectso Vepse – Finnic language in Karelia and St. Petersburg regiono Votic – Language close to Estonian in Ingriao Yakutia Republic (Sakha). Russian-Yakut with multiple dialects
Russian minorities abroad: o in Estonia o in AlaskaTajikistan – Russian / Tajik and Transliteration schemeTurkmenistan – Russian / Turkmen (with Transliteration/Latinisation scheme) o Turkmen minority in Uzbekistan o Kurdish minorityUkraine – Russian / Ukrainian and Transliteration scheme o Crimea – Russian / Ukrainian / Crimean Tatar o German names for old settlements in southern Ukaine o Hungarian minority in Transcarpathia o Karaim – Jewish minority with a Turkic language o Polish minority o Romanian minority in northern Bukovian – Russian/Ukrainian/Romanian o Ruthenia region – Rusyn / Hutsul o Ukrainian abroad in Moldavia (Transnistria region) o Ukrainian abroad in Poland o Ukrainian abroad in Russia (Kuban and Rostov regions) o Ukrainian abroad in SlovakiaUzbekistan – Russian / Uzbek and Transliteration scheme oKarakalpak minority – Russian / Uzbek / Karakalpak (Kazakh dialect) oTurkmen minorityYiddish placenames in several states
In all, in excess of 124 unique regional languages and dialects, each with its own cultural underpinnings and concepts of “business” – a characteristic which continues today. Understanding and Implementation takes patience and time The need to “understand” historical and cultural underpinnings is essential to successful navigation of the particular market. Transplanted business models often fail Unlike many “western” style transactions which focus on the implementation phases of a project (documentation, terms and conditions of the relationship, etc.), Global success generally requires a period of “courtship: with a focus on the learning process of cultural nuances of the parties, the market and “getting to know your partner(s). Friendship, Trust, and then the Deal and the willingness to take the time to listen, learn and apply are the keys to success
Anatomy of a Deal – “Western” Model The Deal Friendship Trust
Anatomy of a Deal – “Socio-Cultural” Model (Non-Western) The Deal Trust Friendship