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JournalManager Training Programme of the German Federal Ministry of Economics and TechnologyFit for Partnership with Germa...
2	 JOURNAL	 1 I 2013 3Dear Friends of the Manager Training Programme!IN FOCUS: THE HEALTH SECTOR			 Page 34CONTENT EDITORI...
NEWS NEWS4	 JOURNAL	 1 I 2013 5Russian Minister of EconomicDevelopment Honours GIZ Staff.Honoured inMoscowMoscow. A great ...
NEWS NEWS6	 JOURNAL	 1 I 2013 7Cologne. Despite the political turbu-lence experienced in December of lastyear, GIZ and its...
NEWS NEWS8	 JOURNAL	 1 I 2013 9Cooperation with Belarus ExtendedTashkent. After a two-year hiatus, ameeting of the German-...
GERMANY GERMANY10	 JOURNAL	 1 I 2013 11Russian Farmers in Schleswig-HolsteinKiel. Twenty-one managers from a varietyof agr...
GERMANY GERMANY12	 JOURNAL	 1 I 2013 13Modern Mining Technology in ActionRaw Materials PartnershipsCologne/Leipzig. In Nov...
GERMANY GERMANY14	 JOURNAL	 1 I 2013 15Executives from Azerbaijan inthe Capital of SaxonyDresden. The ARGE Konsortium Neue...
GERMANY GERMANY16	 JOURNAL	 1 I 2013 17operation with relevant research insti-tutions with the aim of strengtheningforeign...
GERMANY GERMANY18	 JOURNAL	 1 I 2013 19holds, as trade and investment figuresshow. The German medium businesssector is inc...
GERMANY GERMANY20	 JOURNAL	 1 I 2013 21energy-efficient technologies. Issues suchas energy and environmental manage-ment, ...
GERMANY GERMANY22	 JOURNAL	 1 I 2013 23technologies in production and the ap-plication of energy management systems.Visits...
PARTNER COUNTRIES PARTNER COUNTRIES24	 JOURNAL	 1 I 2013 25of the negotiation process. The bottomline is: you must be well...
PARTNER COUNTRIES PARTNER COUNTRIES26	 JOURNAL	 1 I 2013 27Kazan/Samara. Two weeks of non-stopbusiness is what awaited the...
PARTNER COUNTRIES PARTNER COUNTRIES28	 JOURNAL	 1 I 2013 29Moscow. In 1997 the new ‘Presiden-tial Programme’ was launched,...
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
Journal 1 2013_en
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Journal 1 2013_en
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  1. 1. JournalManager Training Programme of the German Federal Ministry of Economics and TechnologyFit for Partnership with Germany Issue 1 I 2013ENGLISHIn Focus:the Health SectorA Story of Lasting SuccessThe Russian PresidentialProgramme celebrates its15-year anniversaryPage 28‘Fit for Business with China’Programme successfullylaunched in Beijing and JiangsuPage 5
  2. 2. 2 JOURNAL 1 I 2013 3Dear Friends of the Manager Training Programme!IN FOCUS: THE HEALTH SECTOR Page 34CONTENT EDITORIALIMPRINTJournal‘Fit for Partnership with Germany’Manager Training Programme of the German Federal Ministryof Economics and Technology (BMWi)Issue 1/2013Publisher: Deutsche Gesellschaft für InternationaleZusammenarbeit (GIZ) GmbHManager Training Programme of the BMWiReimut Düring, Head of the Manager Training Programme of the BMWiEmail: mp-pr@giz.deInternet: www.giz.de/gc21/mpResponsible party: Christina Otto, Daniel StrubeEditorial team: Axel Wappler (responsible party), Dr Gerd Schimansky-Geier,Jan Löcher, Daniel Strube, Natalia Astrin, Jan Dimog (Diamond media GmbH)Layout: Diamond media GmbH, Miria de VogtPhoto credits: istockphoto.com, fotolia, dreamstime, GIZPublication frequency: twice a yearDate of publication of the previous issue: April 2013Editorial deadline for the next issue: July 15, 2013All rights reserved. Reprints – also of extracts – only with express permission inadvance. While every care has been taken, no liability is assumed for the content.The cartographic presentations do not do not imply any recognition ofinternational boundaries or regions.Funded by the German Federal Ministry of Economics and Technology (BMWi).ISSN 2195-8718EDITORIAL AND PUBLICATION DETAILS 3NEWS 4-9Alumna Meets with German EconomicsMinister Philipp Rösler 4Honoured in Moscow 4Successful Launch of the ‘Fit forBusiness with China’ Programme 5Continuing the Programme in aDifficult Environment 6Manager Training with Azerbaijanto Continue 6Setting the Stage for Future Business 7Chair of GIZ’s Management BoardMeets Alumni and Minister 7Uzbekistan and Germany IntensifyTrade Cooperation 8Cooperation with Belarus Extended 9GERMANY 10-23Russian Farmers inSchleswig-Holstein 10Modern Mining Technology in Action 12Raw Materials Partnerships 13Executives from Azerbaijan inthe Capital of Saxony 14Knowledge Gained from GermanExperience in Personnel Management 15Turning Waste into Energy 16Medium Business Sector goes India 18German-Indian Round Table (GIRT) 19Pilot Group: Energy Efficiency inIndustrial Companies 20Working Meeting with GIZ, BMWiand Training Centres 22PARTNER COUNTRIES 24-33Strengthening German-UkrainianCooperation 24Opportunities for Growth along the Volga 26‘Recognising the Signs of Change’:Interview with Dmitry Ovodenko 27A Story of Lasting Success 28‘Beneficial for Both Sides’:Interview with Andrei Fedorov 29Day of German Business inTurkmenistan 31Training Executives fromRegional Economic Administrationsin Ukraine 32IN FOCUS 34-45The Health Sector: Health –An Export Boom 34Managers from Six Countries withAbundant Team Spirit 36Healthcare Industry Trade Fairs inManager Training ProgrammePartner Countries 38International Exchange on HealthManagement 40Insight into the GermanHealthcare System 41Partners with Commitment 42Health Sector – Vitamins for theExport Business 43Medical Technology: GermanCompanies Show Off Their Strengths 44Alumni 46-56‘World Café’ in Almaty 46Chinese Alumni Conference in Wuhan 48The Long-standing Partnership:Germany – Mongolia 50Annual International AlumniConference in Kyiv 52Contact Forum in Minsk –New Opportunities for Cooperation 54Ten Years of Alumni Work in Russia 55Contact Forum for Alumnifrom Moldova 56EVENTS 49May–November 2013 49SUCCESSFUL PARTICIPANTS 57-61Dr Stefan Ivanov: German-Russian JointVenture Established on the Market 57Genghong Zhu: Focus on Qualityand Innovative Products 58Total Quality Management 59Bachodir Ibragimov: Paving theWay to Foreign Markets 60Ulan Muhamed:Seizing Opportunities 61SPECIALISED TOPICS 62-63Forms of International Cooperation 62Competitive Edge through InnovationManagement 63GIZ CONTACT INFORMATION 64You are now looking at the second edition of the inter-national journal on the BMWi Manager Training Pro-gramme (MP). The international character of the MPhas been particularly evident since the journal’s relaunchsix months ago. For the first time, it did not just coveractivities and achievements in one partner country or re-gion; it covered all partner countries. We are all the morepleased with the warm welcome and positive responsereceived in response to the journal. Along with its con-tent, readers were satisfied with the journal’s layout andthe fact that it was divided into chapters. I would like tothank all our readers who gave us feedback on the journal; we are happy to receive more.You can help us to make the journal even more reader friendly.This time, our area of focus is the health sector. The growth potential of this indus-try of the future can be discerned worldwide: an increasing global population, growingdemand for health services in emerging countries and demographic ageing are makingmedical technology, pharmaceutical and biotechnology into one of the biggest growthsectors around. With its exports-intensive companies, the German health sector holdsan advantage in this industry. They offer innovative solutions that are in demand onglobal markets. Small and medium-sized enterprises often play a prominent role.We place special emphasis on our partner country Russia. A little over 15 years ago,the ‘Presidential Programme’ was launched to train executives for the Russian economy.Shortly afterwards, the German-Russian Manager Training Programme was initiated:this was when today’s MP was born. This year is also the tenth anniversary of the be-ginning of our alumni activities in Russia. This is reason enough for us to honour theanniversary in this journal. We look at the awards given to four GIZ colleagues in Mos-cow last autumn as an acknowledgment of our commitment and also an incentive tocontinue successful cooperation with all our partners, now spanning fourteen countries.The chapter on Germany is more extensive this time. Due to your feedback we knowthat this chapter is of particular interest to our readers. Reports on alumni activities, ourpartner countries and successful participants make up the rest of this edition.I hope you enjoy this edition as much as the last and that it is an interesting read!Reimut Düring
  3. 3. NEWS NEWS4 JOURNAL 1 I 2013 5Russian Minister of EconomicDevelopment Honours GIZ Staff.Honoured inMoscowMoscow. A great privilege for GIZ: At afunction celebrating 15 years of the Rus-sian Presidential Programme – Germanycontributes to this programme throughthe Manager Training Programme ofthe Federal Ministry of Economics andTechnology – three current members andone former member of GIZ staff werehonoured for their years of hard work inRussia. Dr Gerd Schimansky-Geier, Isol-de Heinz, Vladimir Bogdanov and GuidoReinsch received the Russian Minister ofEconomic Development’s Certificate ofAppreciation on 2 November 2012. Dep-uty Minister Sergei Belyakov presentedthe award at the Russian Academy of Eco-nomics.‘We are delighted to receive this award.We see it as recognition of the 15 yearsof German commitment to the RussianPresidential Programme. This awardequally acknowledges both our colleaguesin Moscow and in Bonn who worked onthe Programme,’ said Isolde Heinz, GIZ’sproject manager in Moscow, after the cer-tificate had been awarded. Guido Reinsch,GIZ’s project manager in Bonn, added:‘However, the biggest award is the successof the Programme: bilateral trade volumeincreased by well over a billion – an im-pressive figure!’Guido Reinsch (left), Isolde Heinz andVladimir Bogdanov (right) are presented theCertificate of Appreciation by the RussianDeputy Economy Minister Sergei Belyakov.Successful Launch of the‘Fit for Business with China’ProgrammeBeijing/Jiangsu. The Chinese Govern-ment invited executives from Germanfirms to attend the first two-week train-ing programme in China organised aspart of the German-Chinese ManagerTraining Programme. The ‘Fit for Busi-ness with China’ pilot programme tookplace from 3 to 17 November 2012 as acollaborative effort between the Chinesepartner, the China Center for Promo-tion of SME Development (ProSME),and GIZ. The programme is based on abilateral agreement between the GermanFederal Ministry of Economics and Tech-nology (BMWi) and China’s Ministryfor Industry and Information Technol-ogy on expanding the German-ChineseManager Training Programme by addinga component for training executives ofGerman firms in China.Opportunities in ChinaA total of eleven executives from Germancompanies in the mechanical engineering,trade and service branches took advantageof the opportunity to spend two weeks inBeijing and the east coast province of Ji-angsu learning about the market opportu-nities, corporate culture and business re-lationships in the second largest domesticeconomy in the world. It was also a chanceto establish initial contact with potentialChinese partners. A successful combina-tion of specialist seminars and companyvisits to Chinese and German firms pro-vided participants with extensive insightinto business life in China.The specialist seminars covered topicssuch as industry clusters in China and theeconomic development zones in Taicangand Lianyungang, gave German partici-pants the opportunity to obtain first-handinformation and discuss pertinent topicswith Chinese experts.Company visits and contact forumAmong the on-site firm visits, Guodi-an United Power Technology Co. Ltd.stood out. The high-tech company fromLianyungang offers solutions for windenergy systems and focuses on the ‘greenenergy branch’. It offered German partici-pants a comprehensive look at productionand marketing. In addition to Chinesefirms, German companies with operationsin China, such as Trumpf, Schaeffler, Kro-nes and Henkel, also shared their experi-ence with and approaches to starting andexpanding business activities in China.German participants enjoyed many op-portunities to network, initiating new orGerman entrepreneursspent two weeks as guestsin Beijing and the provinceof Jiangsu networking withChinese firms.Executives from German enterprises visit the high-tech companyGuodian United Power Technology Co. Ltd in Lianyungang.Ronald SchulzAlumna Meets withGerman EconomicsMinister Philipp RöslerGIZ: When did you meet MinisterRösler?Inna Khanduja: It was last Novemberduring a lunch exclusively for female In-dian entrepreneurs. Twenty-five womenfrom all across India attended, represent-ing a broad cross section of business life.Guests came from Bangalore, Chennai,Chandigarh and of course Gurgaon, Del-hi. The minister came with high-rankingdelegates and the Acting German Am-bassador to India.How was your meeting with the minister?He was extremely interested in learningabout the economic conditions for In-dian women and the associated culturalcontext. He asked many questions cov-ering aspects such as family, the govern-ment and the support available for femaleentrepreneurs. During the conversation,we highlighted how we are India’s veryfirst generation of female entrepreneurs,and that we receive no support from thestate – this applies essentially for all Indi-an entrepreneurs, female or male. Over-all, the minister was interested in closebusiness relations between Germany andIndia, and in mutual economic growth.Were you able to speak with him directly?I showed him the GIZ Journal and in-formed him about the Indo-GermanManager Training Programme. He ex-pressed his delight in the progress thatthe alumni have made in India, andwanted to know how the Programmehad helped us to enhance our businessrelations with Germany. I responded thatthe Programme had had extremely posi-tive outcomes for me, particularly withregard to professionalising my company.He also browsed the journal with greatinterest.Ms Khanduja, thank you for the inter-view!Inna Khanduja is the CEO of the personnel management agency InterecIT Global Executive Search in northern India. In 2009 she took part inthe Manager Training Programme at COGNOS International in Hamburg.During the 2012 Asia-Pacific Conference of German Business (APK) heldin Gurgaon near Delhi, she had the opportunity to speak with the GermanFederal Minister of Economics and Technology, Dr Philipp Rösler.DrPhilippRöslertalkingtoInnaKhanduja(middle)expanding on existing business contactsboth during individual firm visits and atcontact forums in Beijing and Taicang.The Chinese organiser ProSME workedwith the administrations of the Taicangand Lianyungang development zones toprepare an intensive programme with am-bitious content. In addition to the manybusiness activities, the schedule also in-cluded time for cultural activities and afootball game between a team of Germanprogramme participants and the Joe Tu-okesi Football Team from Taicang. Heretoo, our Chinese partners were the per-fect hosts, holding their own against theGerman team, who were weaker in bothstamina and technique, until the finalpenalty shoot-out.After completing the programme, all theGerman participants assessed the pros-pects for future involvement in Chinavery positively. They are planning long-term business activities and will follow upand expand on the individual networkingmeetings. While in China, one partici-pant from a medium-sized mechanical en-gineering firm in North Rhine-Westphaliawas particularly successful, as he was ableto conclude a contract for the delivery of asystem during a two-day visit to a Chinesebusiness partner. The pilot group partici-pants will present their individual resultsat the follow-up seminar planned for June2013.
  4. 4. NEWS NEWS6 JOURNAL 1 I 2013 7Cologne. Despite the political turbu-lence experienced in December of lastyear, GIZ and its Egyptian partner, theIndustrial Training Council (ITC), weredetermined to carry out selection inter-views with candidates for the Programmeaccording to plan from 2013 on. Alto-gether, 24 Egyptian executives qualifiedto participate in the Programme in Ger-many.The majority of them took part in thetraining in Cologne and Berlin from 24February to 23 March 2013. The par-Berlin. On 20 January 2013, the Chair ofGIZ’s Management Board Tanja Gönnerattended ‘Green Week’, the world’s biggestagricultural fair (www.gruenewoche.de).While at the fair, she also visited Kyrgyz-stan’s exhibition stand, where she was gree-ted by Agriculture Minister ChingisbekUzakbaev. In 2013, the Kyrgyz exhibitorspresented food and consumer goods madeof felt, which sparked great interest amongthe fair’s visitors. Former participant inthe Manager Training Programme (MP)Baktybek Shamkeyev was responsible forthe presentation of Kyrgyzstan’s stand. Hehas also been the chairperson of the localalumni association since 2012.This year’s participants in the MP werealso given the opportunity to attendGreen Week in Berlin. In January, twogroups of executives from the agricultureindustry were in Germany. They camefrom six countries: Azerbaijan, Belarus,Kazakhstan, Kyrgyzstan, Uzbekistan andUkraine.ticipants mainly represented industrialcompanies, among them suppliers to theautomotive industry, manufacturers offurniture and leather goods, and produc-ers of plastic and electronic components.The participants’ interests were just asdiverse as the industries. Mohamed ElMahallawy, Finance Manager of Hedetalfor Metal Industries in the city of Tantaon the Nile delta, established contactswith German suppliers of special types ofsteel. Amr Hamdy, deputy Managing Di-rector of Egycarbon, a manufacturer ofcarbon and graphite components, soughtto resume and intensify business relationswith German customers. Representativesof the ITC and the Egyptian Commer-cial Service also participated in the Pro-gramme. Both organisations were nomi-nated on the Egyptian side to implementthe Programme in Egypt.The invited executives benefit from ideasthat the Egyptian pilot group contrib-uted after their stay in Germany in Junelast year in the exchange with ITC, GIZand the German Federal Ministry of Eco-nomics and Technology (BMWi). Ex-pert Juliane Bier from the training centreCarl Duisberg Centren (CDC) carriedout a preparatory seminar on intercul-tural competency in Cairo. Parallel tothat, the CDC expert locally trained fivelecturers from the Egyptian state ForeignTrade Training Centre (FTTC). The goalis to have the contents of the intercultur-al training included in the preparatorycourse offered by the Egyptian side.In February 2013, the second group of Egyptian executives travelled to Colognefor training.Continuing the Programmein a Difficult EnvironmentChair of GIZ’s Manage-ment Board MeetsAlumni and MinisterOmar ScharifiMichael EmmrichManager Training with Azerbaijan to ContinueBaku. The Ministry of Economic Development of the Republic of Azerbaijan and theGerman Federal Ministry of Economics and Technology (BMWi) have agreed to ex-tend their successful collaboration as part of the Manager Training Programme to theend of 2015. The respective agreement was signed by the Deputy Minister for EconomicDevelopment of Azerbaijan Niyazi Safarov and Deputy Director-General at BMWiAndreas Obersteller on 28 February 2013 in Baku. Since the Programme began in 2009,138 executives from Azerbaijani firms have completed practice-based training in Ger-many. Programme participants have acquired modern management skills they apply todeveloping medium-sized companies in particular, and initiated and expanded a widenetwork of contacts at German firms.EgyptianexecutivesinfrontoftheCarlDuisbergCentre,CologneAftersigning:AndreasObersteller(left)&NiyaziSafarovEgyptianProgrammeparticipantRaniaOrabyTanjaGönnerspeakingwithChingisbekUzakbaevWe are interested inyour opinion!Setting the Stage for FutureBusinessBerlin. Exchanging ideas on current pol-icies regarding small and medium-sizedenterprises in China and Germany, inter-national development opportunities fordual vocational training and cooperationthrough exchanges and training for mid-dle and upper management levels: theseand other topics were discussed on 9 Jan-uary 2013 during consultations on SMEsin Berlin. Ernst Burgbacher, Parliamen-tary State Secretary in the German Fed-eral Ministry of Economics and Technol-ogy (BMWi) and the GermanGovernment‘s representativefor SMEs and tourism, metthe Vice-Minister for Industryand Information Technology,Zhu Hongren, for the fourthround of German-Chineseconsultations on SMEs. Thesegenerally take place every year,alternating between Germanyand China. On the day, Burg-bacher and Zhu signed the extension to2016 of the agreement on cooperation inrelation to training executives of Germanand Chinese companies. The MP origi-nally provided training for Chinese exec-utives in Germany. Since 2012, it has alsobeen available to managers who want togain experience and make business con-tacts in China.‘Germany is an anchor of stability inEurope, and China is Asia’s engine forgrowth. Both countries’ success hingesupon the vitality and innovative capacityof their SMEs. Therefore, close coopera-tion on SME policy is important for thefutureofoureconomicrelations,’declaresBurgbacher. He continues:‘The private SME sector inChina often has the sameinterests as German andother foreign companies inChina, namely opening theeconomic structure evenfurther to competition andprivate initiatives. Contactsat company level play a keyrole in creating more inten-sive economic relations. With our coop-eration on manager exchanges, we canhelp set the stage for future business.’The Manager Training Programme (MP) of the German Minis-try of Economics and Technology for executives from Germanand Chinese companies has been extended to 2016.‘Both coun-tries’ successhinges uponthe vitalityand innovati-ve capacity oftheir SMEs.’Parliamentary State Secretary Ernst Burgbacher (left)with the Chinese Vice-Minister for Industry andInformation Technology Zhu HongrenGive us your feedback aboutthis Journal atwww.giz.de/gc21/mp/feedback.
  5. 5. NEWS NEWS8 JOURNAL 1 I 2013 9Cooperation with Belarus ExtendedTashkent. After a two-year hiatus, ameeting of the German-Uzbek Intergov-ernmental Working Group on Trade andInvestment was held in Tashkent on 16November 2012. On the following day,the bilateral steering committee of theManager Training Programme (MP) ofthe German Federal Ministry of Eco-nomics and Technology (BMWi) met.That these events were held one rightafter the other was no coincidence. Thediscussions on economic developmentsin Germany and Uzbekistan, and partic-ularly on the agreements for the priorityareas of future cooperation, constitutevaluable stimuli for the strategic orienta-tion of the MP.The Ministry for Foreign Economic Re-lations, Investments and Trade of the Re-public of Uzbekistan, whose acting min-ister Shavkat Tulyaganov co-chairs theworking group and steering committee,identified a series of industries suitablefor intensification of the cooperationthat could, from an Uzbek perspective,be attractive for German investments.These include the food, pharmaceutical,automotive, electronic, petrochemistry,and the oil and gas industries, as wellas energy generation from alternativesources and finally tourism, especially thenecessary infrastructure.Minsk. On 24 October 2012, representa-tives from the German Federal Ministryof Economics and Technology (BMWi)and the Belarusian Ministry of Econo-my met with the respective Programmeproviders for the fourth time to discussthe results and the future focus of theMP. Both sides gave a positive summaryof the past two Programme years. Theadvances and developments of the par-ticipants and alumni are impressive andpromising. The Belarusian partner wel-comed the further development of theThe German co-chair of the two bilater-al committees, BMWi Director-GeneralDr Karl-Ernst Brauner, confirmed thatthe MP could help in acquiring Germaninvestors. Qualified participants are giv-en the opportunity to win the trust ofUzbek companies and assess the sound-ness of German manufacturers for them-selves during their contact with Germancompanies. Participants could thus beselected for the Programme in a targetedmanner to acquire new German suppli-ers for the German-Uzbek joint venturein the field of utility vehicles, MAN AU-TO-Uzbekistan. This procedure couldalso be followed in the other aforemen-tioned industries, as German industryhas attractive offers to make in these ar-eas too.Quality management from the very firststepGIZ and the Chamber of Commerceand Industry of Uzbekistan now faceProgramme promoted by BMWi. Thejoint declaration on the extension of theMP with Belarus until 2015 was signedin parallel with the meeting.The response and presentations given bysome of the participants underlined thepositive effect of the Programme on allparticipants. For example, Pavel Kurilo,deputy director of the company Lud-mila, gave an impressive report on hisexperience and results after his stay inGermany during the Programme. Fromhis position as head of marketing, hewent on to become deputy director inthe enterprise which mainly producesall types of headgear. The company wasrestructured, particularly in the salessection, and the manufacturing facilitieswere modernised with German machin-ery. Now Ludmila delivers high-quali-ty products to Germany, including forDeutsche Bahn AG – a win-win situa-tion for both sides. Ivan Rak, Chairmanof the Belarusian Alumni Associationestablished in June 2012, reported thatfirst steps had been taken for the associa-tion, such as attracting members, puttingon events and concluding a cooperationagreement with the city of Minsk.ed realignment of his personnel policy.The outcome of the innovations was amore motivated, better qualified expertworkforce. Personnel fluctuations at thecompany were reduced significantly as aconsequence, and the continuity of thework in turn enhanced. These positivedevelopments have also had a positiveimpact on the quality of the products.Today Sultanov knows that quality man-agement ends with the quality control ofthe finished product but that it beginswith the very first step. Due to this andother measures, Sultanov’s company hasbeen able to develop its market share inUzbekistan and Russia. Circular knittingmachines from the global leader Mayer &Cie based in Albstadt (Baden-Württem-berg) played a role in this. He pre-negoti-ated this purchase while participating inthe Programme in 2009.The highlight of the steering committeemeeting was the signing of what is nowthe third joint declaration on the imple-mentation of the Manager Training Pro-gramme. It has been extended until 2015.Dr Karl-Ernst Brauner, Director-General atthe German Federal Ministry of Economicsand Technology, signed on behalf of Ger-many, and Shavkat Tulyaganov, DeputyMinister for Foreign Economic Relations,Investments and Trade, signed on behalf ofUzbekistan.Cooperation with Uzbekistan extendedthe interesting task of concretising theseideas and actually implementing them.In this context, the Programme’s previ-ous successes, which were highlighted byall sides, constitute optimistic examples.Thus the president of the Chamber ofCommerce and Industry of Uzbekistan,Alisher Shaikhov, revealed that 90 percent of Manager Training Programmegraduates were able to confirm positivedevelopment.Manager Training Programme graduateBakhodir Sultanov, the owner of Tur-an-Tex, is one prime example. He wel-comed the German delegation to hiscompany, which manufactures and pro-cesses textiles, after the steering commit-tee meeting. The guests from Germanywere able to gain a first-hand impressionof the progress achieved at Turan-Texsince Sultanov returned from Germany.Examples quoted by the graduate includ-Uzbekistan and Germany IntensifyTrade Cooperation At a meeting in Minsk,cooperation with Belarusthrough the Manager Train-ing Programme (MP) wasextended by three years.DrKarl-ErnstBrauner(right)presentstheJournaltoShavkatTulyaganovBakhodirSultanov,ownerofTuran-TexMinskDr Angela Leeke
  6. 6. GERMANY GERMANY10 JOURNAL 1 I 2013 11Russian Farmers in Schleswig-HolsteinKiel. Twenty-one managers from a varietyof agricultural companies in the RussianFederation came to the Wirtschaftsakad-emie Schleswig-Holstein (WAK) GmbHin Kiel as part of the Manager TrainingProgramme. Numerous company visitsand meetings filled the agenda of the Rus-sian managers, who visited the north ofGerman from 6 November to 1 Decem-ber 2012.With a current total of 22 locations, thecompany network of WAK is present witha modern training portfolio in the federalstate that lies between the North Sea andBaltic Sea. WAK’s European and interna-tional experience also contributes to thesuccessful training, as the tried-and-testedThe EuroTier trade fair in Hanover andthe Enterprise Europe Network (EEN)cooperation forum held there offered anexcellent platform for expert discussionsand preliminary contact with Germanand international companies. Particularinterest was paid to the companies activein the fields of plant cultivation and agri-cultural technology. Here, the focus wason organic farming, extensive land usesystems and the cultivation of high-qual-ity regional organic produce, and the pro-curement of agricultural machinery andequipment.The visit to Bio-Westhof GmbH was ahighlight of the trip. Participants visitedGermany‘s largest organic greenhouse,which recently launched operations. Atotal of 70,000 tomato plants are culti-vated here on four hectares, with around1,500 tons of tomatoes produced everyyear. During the visit, participants becamefamiliar with a new technology: ener-gy-neutral heating for the greenhouse. Acombined heat and power unit fuelled byunsold organic vegetables and other or-ganic products supply the energy for this.international expertise is also brought tobear in the ‘domestic’ offers. Coopera-tion in national economic and scientificprojects and the development of innova-tive forms of learning within the scope ofEuropean projects as well as the reorien-tation on the labour market – thinking‘outside the box’ opens up new horizons,allows for the development of a new takeon things, and thus makes new expertiseavailable.Focus on organic products and the pro-curement of technologyDuring the specialist programme, partic-ipants were able to gain first-hand expe-rience through a variety of training offersCountless contracts concludedInternationally renowned companies suchas Claas KGaA mbH, Riela Trocknungs-technik GmbH and Landmaschinenfab-rik Grimme GmbH stood at the top ofwish lists of the participants seeking tolearn the technical specifications and pric-es of agricultural machinery and equip-ment. All three companies are prosperous,long-standing partners in Eastern Euro-pean business and have a worldwide pres-ence with their own representations. Theparticipants gained an overview of prod-uct palettes, obtained extensive adviceand made orders. Moreover, they acquiredtechnical expertise on using modern soiltillage and harvesting techniques, whichwill undoubtedly boost efficiency withintheir own companies.The first agreements were already conclud-ed shortly after the Russian entrepreneursreturned home. A contract for the con-struction of a seed factory in Belgorod wasagreed in January 2013 between PetkusGmbH, a seed supplier from Thuringia,and OOO Garant Optima in west Russianand events. In addition to interactivetraining sessions and bilateral discussionswith representatives from industry andthe political sphere, there were count-less opportunities to make contacts forpossible partnerships and synergies. Theprogramme offered an extensive rangeof topics from almost all fields of agri-culture such as plant cultivation, ani-mal breeding, agricultural technologyand the processing of agricultural prod-ucts. During 19 company visits with thewhole group and a further 30 individualcompany contacts, participants from 17regions in Russia confidently presentedthemselves as business partners on anequal footing.Belgorod, for which Aleksandr Lyalyukparticipated in the Programme. The con-tract volume reaches seven digits. Coop-eration agreements have also been drawnup between OOO Shchedrukha fromSiberian Kemerovo, which sent GrigoriyFedorov to Germany, and the companiesReimann Emsdetten GmbH, Renolit SEand Wolf Heiztechnik GmbH. The Vo-stochny meat processing company fromIzhevsk in the Volga region, which wasrepresented by Programme participantKonstantin Sozonov, signed cooperationagreements with ACO Funki, BDWFeedmill Systems GmbH and Big Dutch-man International GmbH.The WAK team will help ensure the sus-tainability of the business contacts initiat-ed by the participants through to the fol-low-up seminar. The extremely intensiveprogramme concluded with fascinatingfinal presentations and excellent resultsfrom the participants as a further contri-bution to promoting foreign trade in thefood sector.Agriculture and food processing formed the focus for 21managers from the Russian Federation, who accepted theinvitation to participate in a training event at the Wirtschafts­akademie Schleswig-Holstein GmbH at the end of 2012.Russian farmers in Schleswig-HolsteinCompany visit: Westhof Bio-Gemüse in FriedrichsgabekoogMarlies Riemer-Lange, WAK
  7. 7. GERMANY GERMANY12 JOURNAL 1 I 2013 13Modern Mining Technology in ActionRaw Materials PartnershipsCologne/Leipzig. In November 2012,the German Government specially invit-ed executives from Kazakh raw materialsfirms to participate in training in Germa-ny for the first time. This begins the im-plementation of the intergovernmentalagreement regarding cooperation in theareas of raw materials, industry and tech-nology signed by German Federal Min-ister of Economics and Technology DrPhilipp Rösler and the Kazakh Ministerfor Industry and New Technologies As-set Issekeshev at the beginning of 2012.At the signing Rösler explained: ‘Accessto raw materials depends not only ontechnological feasibility, but also on theeconomic and political environment.anlagen und Baumaschinen GmbH, aswell as analysis technology manufactur-ers such as SPECTRO Analytical Instru-ments GmbH and Carl Zeiss AG.‘It is important to see how the technol-ogy is employed.’At an event in the German Federal Min-istry of Economics and Technology(BMWi), participants reported on theresults they had achieved so far. ENRC(Eurasian Natural Resources PLC) isone of the largest Kazakh raw materialsfirms. It is involved and mining and theprocessing of iron ore, coal and alumin-ium, and is a key player in the mining ofchromite, which is used to temper steel,among other things. For more than 30years ENRC has worked in raw mate-rials mining with equipment from theTAKRAF firm in eastern Germany andhas had good experience with Germantechnology. Before travelling to Ger-many, ENRC representative Dr DaurenOkassov had already initiated negoti-ations to renew the company’s miningtechnology. He was therefore lookingforward to the visit to TAKRAF in par-ticular where he was able to experiencemodern mining technology in action. ‘Itis important to see how the technology isemployed. Now I know how the firm op-erates.’ TAKRAF manufactures bucketexcavators and conveyor bridges for rawmaterials mining in open cast mines allover the world. Extensive know-how andexperience from hundreds of successfulprojects combined with continual opti-misation allow the traditional companyto produce custom-tailored systems foruse in any type of geological area. Sincepurchasing machines and equipment inthe mining sector generally involves mil-lions of euros, negotiations have not yetbeen concluded.‘Communication via the internet can-not replace face-to-face contact.’Elena Saidova’s visit to KSL (Kupfer-schiefer Lausitz GmbH) is evidence thatKazakh know-how is also valued in Ger-many. Saidova is the leading specialist formineralogy in deposit reconnaissance atthe Kazzinc company. She discussed thepossible involvement of Kazzinc in sitedevelopment at the Lausitz copper de-posit, and researched modern laboratoryequipment and computer programs forRaw materials partnerships make an im-portant contribution to maintaining thesupply of raw materials to the Germanprivate sector. This secures growth andjobs in Germany. The agreement signedwith Kazakhstan today creates a politi-cal framework in which companies canconclude contracts under their own au-thority.’Exploration, mining, analysis and pro-cessingThe training was organised by the CarlDuisberg Centres, primarily in Cologneand Leipzig. All the participants camefrom the raw materials industry with aBerlin. As an industrial nation, Germany is one of the largest consumers of raw materialsin the world. The majority of bulk raw materials such as gravel, sand, limestone and clayare obtained from domestic deposits within the country. However, almost all metal rawmaterials, many imported industrial minerals, rare earth elements and fossil raw mate-rials have to be imported. To maintain our path of success and thus secure growth andjobs in Germany, the German economy requires access to these raw materials. This notonly depends on the technological possibilities but also on the economic and politicalenvironment.Therefore, the German Government presented a raw materials strategy at the end of 2010.The centrepiece of this strategy are partnerships with selected countries that are rich inraw materials.This raw materials strategy sees raw materials partnerships as an importantinstrument to support the German economy in the provision of raw materials. In principle,the safeguarding of raw material supplies is a task for the economy. With its raw materialsstrategy, the government creates the necessary framework for a sustainable, international-ly competitive supply of raw materials. It is making a bundle of measures available whichcan help improve access to raw materials. Bilateral raw materials partnerships can openup new supply sources for industry. Innovations through research and development pro-grammes in the fields of raw materials research, raw materials and materials efficiency,and recycling reduce dependence on imports. Structural measures such as the establish-ment of the German Mineral Resources Agency (DERA), the Helmholtz Institute Freiberg forResource Technology (IHF) and the Interministerial Committee on Raw Materials (IMA) serveto reinforce and advise German industry, particularly small and medium-sized enterprises(SMEs) All measures are closely linked with trade at European level.To date, government agreements on raw materials partnerships have been concludedwith Mongolia (2011), Kazakhstan (2012) and Chile (2013). Under the umbrella of rawmaterials partnerships, industry concludes private law contracts on its own responsibil-ity, which can be safeguarded and supplemented with foreign policy and foreign tradeinstruments.These include the participation of Kazakh executives from the raw materialsindustry in the Manager Training Programme of the German Federal Ministry of Econom-ics and Technology.wide range of specialities such as explo-ration, mining, analysis and processing.In addition to thirteen executives fromKazakhstan, three managers from Kyr-gyzstan and one manager from Uzbeki-stan joined the group. The combinationof specialist seminars and visits to Ger-man firms offered comprehensive insightinto business life in Germany. A visit tothe ‘Schüttgut’ specialist trade fair inDortmund in the company of interpret-ers presented an opportunity to networkand exchange ideas and experience. TheKazakh executives visited mining equip-ment manufacturers such as ThyssenK-rupp Fördertechnik GmbH, TAKRAFGmbH, and FAM Magdeburger Förder-The first one-month training in Germany has now beencompleted as part of the raw materials partnership withKazakhstan.Raw materials partnerships form part of the German Gov-ernment’s raw materials strategy. To date, partnerships havebeen agreed with Kazakhstan, Mongolia and Chile.From right: Dr Dauren Okassov following the presentation of the certificateby Wolfgang Hombrecher (BMWi) und Reimut Düring (GIZ)s
  8. 8. GERMANY GERMANY14 JOURNAL 1 I 2013 15Executives from Azerbaijan inthe Capital of SaxonyDresden. The ARGE Konsortium Neue Bundesländer (NBL – Consortium of New Fed-eral States) received young Azerbaijani entrepreneurs and executives for the first time inDresden at the end of 2012. The objective was to train the group within the framework ofthe Manager Training Programme (MP) of the German Federal Ministry of Economicsand Technology (BMWi). During the group’s one-month stay in Germany in the capitalof Saxony, Konsortium NBL was able to bring its experience in cooperating with Asianand Eastern European participants to bear in organising extensive contacts for the partic-ipants. The 64 company visits have provided the potential to develop lasting economicrelationships between Germany and Azerbaijan. The German companies regard the Pro-gramme as a good opportunity to gain access to new partner countries.Since the start of the Manager Training Programme in 2009, the number of alumni fromAzerbaijan has reached the impressive number of 129. The majority of the eighteen partic-ipants at NBL were from the IT, pharmaceutical, finance, hotel and insurance industries.The Programme was conducted in English.Although only a few small and medium-sized businesses in Germany consider Azerbaijanas the first country when looking to build up or expand international business relation-ships, there are already examples of successful cooperation which show that forging thelink can work. The company Dresdner Kühlanlagenbau GmbH, which the group visited,has already carried out several projects in Azerbaijan and has had a branch in Baku forsome years now. This successful Dresden company hoped to not only gain contacts forfurther projects as an outcome of the visit, but also to find qualified employees, who areneeded for expanding its business activities locally.the reconnaissance of natural mineraldeposits at different firms. In GermanySaidova was also interested in exchang-ing ideas and experience in mining me-tallic raw materials, particularly fromgreat depths. Standard solutions are nouse here, and individual approaches thatGerman specialised firms can deliver areneeded.The Topaz company from the East Ka-zakh Ust-Kamenogorsk works in geo-logical reconnaissance, the field map-ping and evaluation of natural mineraldeposits. Margarita Magauyanova, Di-rector of Quality Control and Head ofthe Development Service, is interestedin German technology and in issues ofenvironmental management and worksafety in particular. She explains: ‘TheGerman companies are very well organ-ised. They were very welcoming and in-terested in establishing contacts. Everycompany had Russian-speaking employ-ees for us to talk with.’ She visited certi-fied German laboratories to garner ideasfor modernising the work of the labo-ratories at Topaz and for creating a newspecial laboratory for ecological manage-ment. During an on-site company visit,Magauyanova succeeded in intensifyingrelations established in spring 2012 withthe Heidelberg IBL Umwelt and Bio-technik GmbH firm at an environmentalconference in Astana. In addition, shegathered information in Beckum at Thys-senKrupp Polysius AG about new tech-nologies for automating laboratory-scaleexperiments and quality control. Collab-orative projects with both IBL and Poly-sius are now in planning, including oneinvolving environmental managementin Ust-Kamenogorsk. She concludes:‘Communication via the internet cannotreplace face-to-face contact.’Wolfgang Hombrecher, responsible forthe Manager Training Programme atBMWi, could not agree more: ‘The Pro-gramme often provides the opportunityto initiate personal contact and stands forworking together in partnership.’ UrsulaHorn from the Division for Internation-al Raw Materials Policy at BMWi not-ed that ‘the partnership agreements arebased on the companies working closelytogether in the interests of both coun-tries and the companies themselves.’ Sheinvited the group to present the results oftheir time in Germany at the next meet-ing of the government working group onpartnership agreements in Kazakhstan in2013. Frank Weisig, State Referent forCentral Asia at BMWi called on partic-ipants to ‘become ambassadors of Ger-man-Kazakh cooperation.’ The Germanprivate sector provided consistently pos-itive feedback during the company visits.The central Asian executives agreed thatthey had made efficient use of their timein Germany.Ursula Horn and Frank Weisig (both BMWi) listento the statements of Margarita Magauyanova (Topaz)Azerbaijani executives in DresdensStuttgart/Dresden/Berlin. During theirstay in Germany, which was coordinatedby the Baden-Württemberg-Internation-al (bw-i) training centre, the Vietnamesemanagers visited the cities of Stuttgart,Dresden and Berlin, and several compa-nies. Personnel management was an im-portant topic as the shortage of qualifiedpersonnel hinders many Vietnamese com-panies in their business activities. The vis-its to German companies and institutionsgave the guests from South-East Asia anunderstanding of practices and opportuni-ties with regard to personnel managementin Germany.At the engineering works Berthold HermleAG based in Gosheim – a company listedon the stock exchange and one of the lead-ing manufacturers of milling machines –the Vietnamese managers were introducedto the traineeship and training programmeas well as the remuneration system for em-ployees of long service. The guests were im-pressedbythehighdegreeofindependenceand the corresponding sense of responsibil-ity among the employees.Good training and organisation‘The key to success in German companiesis good organisation and (vocational)training. I saw that during our group visitto Berthold Hermle AG, and now I alsoapply this in my company,’ said NguyenThanh Sangh. Improving working con-ditions, offering continuous trainingprogrammes and introducing attractive,performance-related remuneration sys-tems – many participants are consideringintroducing these options after their re-turn to Viet Nam.For example, Le Cao Minh intends to in-troduce a vocational training scheme inhis company as he is convinced that thelack of qualified personnel is one of VietNam’s greatest problems – particularly inpositioning his country in internationalcompetition.A visit to the savings bank SparkasseDresden clearly demonstrated the valueof flexible solutions for employees withregard to working hours, part-time em-ployment and support for persons re-en-tering the labour market after longer pe-riods of unemployment.‘Understanding the business culture isimportant’During her stay in Germany, NguyenXuan Anh not only learned a lot aboutemployee motivation, but also estab-lished contacts for her company. Ber-thold Hermle AG already paid a visit toher company in Ho-Chi-Minh City, asthe engineering works wants to devel-op and strengthen its business in VietNam. Regarding her stay in Germany,Anh said, ‘I have learnt a lot about lead-ership and project management. Beforeparticipating in the Programme, I didthings more the Vietnamese way. NowI do them more the German way. Com-munication with colleagues and custom-ers is particularly important to achievea balance between our Vietnamese andGerman customers who work together.For the future, I would like to expand mywork with Vietnamese customers to po-sition them on the international market.’Duong Thuy Huong confirmed that thecompany visits were the best part of theProgramme for her. ‘We were able to seeand learn how the German companies dobusiness and to talk about their experi-ences. However, for German companieswanting to establish themselves on theVietnamese market, it is very importantto understand the people and the busi-ness culture there. Here the Vietnamesealumni of the Programme can serve ascontacts.’Knowledge Gained from GermanExperience in Personnel ManagementVietnamese executives who visited German companies in 2012 gained valuable insightsinto personnel management and qualification measures, some of which are already beingput into practice.Company visit at the engineering works Berthold Hermle AGRoman Bannack, NBLHanna Bätz
  9. 9. GERMANY GERMANY16 JOURNAL 1 I 2013 17operation with relevant research insti-tutions with the aim of strengtheningforeign trade. Political measures such asthe German Life-Cycle Resource Man-agement Act, and stringent regulationsfor packaging, end-of-life vehicles, bat-teries, electrical appliances, etc. fosteredthe development of more efficient andreliable disposal and recycling technol-ogy. This includes separate waste collec-tion and sorting, thermal treatment withenergy recovery, mechanical-biologicaltreatment and fermentation processes fororganic waste.These technologies, in addition to theopportunity to apply these in their homecountries, were of particular interest tothe Programme participants. The Ger-man recycling principle made a huge im-pression on them. It is based on the Ger-man Life-Cycle Resource ManagementAct, which has been in place in Germanyfor almost 20 years now and aims to feedthe raw materials used in productionback into the manufacturing process asextensively as possible upon withdrawalof the goods, that is to develop a wasteand emissions-free production cycle.On the road to waste-free industryThe group visited leading German recy-cling companies in Berlin such as ALBAGmbH where they learned about envi-ronmentally-friendly transport meth-ods and treatment technologies for or-ganic and industrial waste, and HACHLANGE GmbH, which specialises inlaboratory and online waste analyses,measuring stations for the comprehensivemonitoring of surface water, measure-ment technology for water-based coolingand heating systems, etc. At DAS Environ-mental GmbH in Dresden, the executivesfamiliarised themselves with innovativetechnologies for exhaust gas purificationand waste water treatment (e.g. biologicalwaste water treatment using TFR technol-ogy) and learned about customer-specificpoint-of-use solutions for process exhaustgas purification based on the latest ES-CAPE, STYRAX, UPTIMUM, GIANTand SPRUCE technologies.The participants reported that in thefield of environmental protection, theircountries have a great need to catch up.Hence it is important to use state-of-the-art waste recycling methods to fill a nicheand generate a competitive advantagefor their own company in their homecountry, explains Galina Kolmakova, amaster brewer from Siberian Tyumen,summarising the overall impression ofher colleagues. Yet it is not only abouteconomic benefits for the participants:the group also gained a sense of their re-sponsibility for the environment duringtheir stay in Germany and were sensitisedto the previously neglected issue of sus-tainability.High-tech solutions for inadequatewaste and water systemsGiven that most entrepreneurs came toGermany with concrete aims, they wererapidly able to identify suitable Germancompanies and reach preliminary oral orwritten agreements for bilateral cooper-ation. Vladimir Sarychev from Kazakh-stan, CEO of the waste recycling compa-ny Arktur in Uralsk, has already signedhis first agreement with the German me-dium-sized company MeWa RecyclingMaschinen und Anlagenbau GmbHfor the acquisition of waste treatmentequipment. Another deal was sealed forthe manufacture and delivery to Uralskof a waste sorting plant by the Germancompany, Stadler Anlagenbau GmbH.Sarychev also made a successful proposalfor a partnership with Avista Oil AG forthe establishment of a joint company forthe processing of old engine oil, and todetermine further steps. The investmentplanned by the Kazakh entrepreneur cur-rently lies in the mid-double-digit mil-lion euros range. Alexey Shchepelev fromthe Russian city of Cheboksary, leadengineer at water treatment companyVodokanal AG, also signed preliminaryagreements for the project planning andsupply of top-quality water treatmentsystems with the German companiesORPU Pumpenfabrik GmbH, PITTGmbH and WAG Armaturen GmbH.Team spirit for successful cooperationAll participants found their time in Ger-many to be extremely enriching and wellinvested. The new contacts with Germancompanies are to be maintained andtransformed into cooperations upon theparticipants’ return to their home coun-tries. The atmosphere characterised byteam spirit is reflected in the film shot bythe group. And the ‘green concept’ thatelectrified the group found expressionin Kazakh entrepreneur Nurlan Zhum-artov’s wish: ‘Intensive coverage of theaspects of waste disposal and, most im-portantly, reuse within industry in allcurrent and future groups, regardless oftheir specialisation. We are all top manag-ers and capable of reusing information.’http://www.youtube.com/watch?v=G8tn6ARiqkMCompany visit at Berliner Stadtwerke (BSR)Berlin. The 22 executives in the firstgroup from the waste disposal and wa-ter management industry to come tothe EUROPANORAT training centreOleg GolovachevTurning Wasteinto EnergyThe pilot group for waste disposal and water managementexecutives was launched in 2012, resulting in multi-millionEuro contracts.The entrepreneurs from Russia, Uzbekistan,Kazakhstan and Kyrgyzstan familiarised themselves withthe latest German technologies in the fields of wastedisposal and water treatment, and took advantage of theopportunity to initiate mutually-beneficial cooperations.in Berlin to participate in the ManagerTraining Programme in 2012 far exceed-ed their hosts’ expectations. Frank Nichtefrom the German Federal Ministry ofEconomics and Technology (BMWi)already spoke of the ‘excellent results’ atthe group’s closing event.Inlightofadvancingindustrialisationanda growing shortage of resources includingoutside the industrialised countries, theissues of waste disposal and recycling areincreasing in importance. Over the past20 years, the German waste disposal in-dustry with around 160,000 employeeshas attained an extremely high technicaland ecological level, in particular due tothe innovative products and technolo-gies offered by German companies. Thefocus of German companies within therecycling industry is increasingly shiftingto markets outside of Europe with a highecological need for state-of-the-art wastedisposal technologies. Thus the ‘GermanRETech Partnership’ was established in2011 to access these markets, followingthe German Federal Environment Min-istry’s ‘Recycling and Efficiency Tech-nology’ (RETech) export initiative. Thisinitiative aimed to establish a networkbetween companies of the German re-cycling sector, and to advance their co-
  10. 10. GERMANY GERMANY18 JOURNAL 1 I 2013 19holds, as trade and investment figuresshow. The German medium businesssector is increasingly participating in theeconomic development in India, for ex-ample in areas such as the automotive in-dustry, renewable energies and machin-ery and plant engineering. Nevertheless,there are still numerous unused oppor-tunities for medium-sized German com-panies in India due to a lack of marketknowledge, resource constraints and, insome cases, strong uncertainty avoidance.Two typical examples of ‘misjudgement’in connection with the Indian market aredescribed below.1. The evaluation of market potentialon the basis of per-capita income:Consulting the per-capita index whenmaking important product decisionsfor the Indian market can prove prob-lematic. Despite considerable develop-ments, the average individual incomein India is still at a low level (USD1,600 per year). However, a one-sidedfocus on this index neglects two signif-icant factors: n More than 80% of the labour forcein India work in the so-called ‘infor-mal’ economy, which means that thestate statistic authorities do not haveexact information regarding theirincome levels. n With an average of five persons in atypical household, the family’s pur-chasing power could be much higher.2. Considering India purely as a salesmarket: Medium-sized businesses areoften tempted to introduce their ex-isting products to the Indian marketwithout substantial adaptations. Butthings often work differently in the In-dian market. The up-and-coming mid-dle class wants to buy quality productswith a good image and market value,but is not able or not willing to paythe customary international price.Some medium-sized German busi-nesses have recognised this ‘demand’and developed market-specific prod-ucts which are then also offered forsale in other comparable markets – insome cases in the global market, too.Products that are in line with marketrequirements instead of being purelytechnology-driven are a critical successfactor in India. As several owners ofmedium-sized businesses have report-ed at the German-Indian Round Table(GIRT), the ‘made in Germany’ brandis only an advantage for being success-ful beyond niche markets if prices arealso in line with the market.These two typical examples of ‘misjudge-ment’ can be most easily avoided throughGerman-IndianRound Table (GIRT)The German-Indian Round Table (GIRT)was founded in 2001 as an associationof people with strong economic and per-sonal interest in India. GIRT’s objective isto spread information about India and fa-cilitate German-Indian business relations.Participants at the German-Indian roundtable meetings also support cultural, busi-ness and social activities in India. They gettogether at regular intervals in a number ofGerman and Indian cities. GIRT has grownto include around 3,000 participants fromthe German-Indian business communi-ty, some who volunteer as directors andspeakers for GIRT. Dr Rajnish Tiwari headsup the Hamburg GIRT division.ContactDr Rajnish TiwariGerman-Indian Round Table (GIRT)Hamburgc/o Institut für Technologie-und InnovationsmanagementTU Hamburg-HarburgSchwarzenbergstr. 9521073 HamburgGermanyTel: +49 (0)40 42878 3776Fax: +49 (0)40 42878 2867Email: tiwari@tuhh.deWeb: www.girt-hamburg.decooperation with reliable and competentlocal partners, who often have a soundknowledge of the market as well as theirown resources and an extensive businessnetwork. Small and medium-sized en-terprises (SMEs) in India are often am-bitious and want to expand at nationaland international levels. However, theynot only often have too few resources,but also lack a thorough understandingof the German market and work culturein Germany.Medium-sized German businesses andIndian partnersBut striving for expansion can form agood basis for mutually advantageous co-operation (‘win-win’) with medium-sizedGerman businesses. Within the scopeof the Indo-German BMWi ManagerTraining Programme in June 2012, twocooperation forums for German and In-dian SMEs were organised in Hamburgand Leipzig to promote an even moreeffective use of market potential by themedium business sector. GIRT also par-ticipated as a co-organiser. With the aidof these two cooperation forums, a groupof 20 decision-makers from eight differ-ent branches of industry in India was ableto have 63 individually scheduled discus-sions with representatives of Germancompanies (Hamburg: 49, Leipzig: 14).In preparation for these meetings, theparticipants received detailed informa-tion on the companies involved. Manyof these discussions led to follow-upmeetings and paved the way for businesstransactions. Both events were very wellreceived by the participants.This example shows the importance ofpersonal contacts, particularly for SMEs,which often do not have their own exten-sive business network in the particularpartner country. This way market entrycan be achieved for both sides and, atthe same time, the market risk reduced.Cooperation forums could be a suitablemeans for intensifying Indo-German co-operation and forming a broader basis forsuch cooperation through the participa-tion of SMEs.Hamburg. India has observed consider-able and continuous economic growthsince the start of economic reforms atthe beginning of the 1990s. India’s grossdomestic product (GDP) increased six-fold from approx. USD 300 billion toover USD 1.8 trillion between 1991 and2011. Measured in terms of purchasingpower parity, the Indian economy is al-ready the third largest economy in theworld, after the USA and China. Thecountry’s future prospects are also verypromising: According to the Interna-Medium BusinessSector goes IndiaGuest contribution by Rajnish Tiwari: Indo-German cooperation forums enable broadermarket entry and an ideal win-win situation for German medium-sized businesses andIndian consumers.tional Monetary Fund’s latest estimates,India’s GDP is likely to almost doubleby the end of 2017 and will presumablyreach USD 3.2 trillion.This steady growth has had a positive ef-fect on the per-capita disposable incomein India so that considerable consumerpurchasing power has been released de-spite continuing social imbalance. Invest-ments are also being made in infrastruc-ture development, with the result that thedemand for capital goods is increasing inIndia, too. India’s role as an increasinglysignificant global growth engine will inall probability be strengthened furtherdue to its location advantages, e.g. a fa-vourable demographic situation and amarket that is far from saturated.Making intelligent use of Indian eco-nomic potentialGermany and German companies haverecognised the enormous economicpotential that the Indian subcontinentRajnish Tiwari (GIRT)Rajnish Tiwari (fifth from left) at a cooperation forumWe are interested in your opinion!Give us your feedback about this Journal atwww.giz.de/gc21/mp/feedback.
  11. 11. GERMANY GERMANY20 JOURNAL 1 I 2013 21energy-efficient technologies. Issues suchas energy and environmental manage-ment, project management in the fieldof energy efficiency and alternative ener-gies were covered, as were SME funding,quality and innovation management,service strategies and logistics concepts,some on-site in the German companiesthemselves. The concrete steps of theenergy management system from assess-ing demand to commissioning and con-trolling were also demonstrated in thecompany as a learning environment.Belarusian entrepreneur Elena Grigor-yeva, financial director of the family-runmeasuring equipment manufacturerSpezsistema, described the participants’opinions perfectly: ‘During this monthyou learn a tremendous amount, whichboth benefits your own managementskills and your cooperation with Ger-man business.’ Her daughter Anna hadalready participated in the Programme,so she knew the Programme beforehand.The group seemed impressed by the‘outstandingly expert’ training seminars– especially on increasing energy effi-ciency – and insights into everyday lifein German companies. In the beginning,it didn’t look easy for the DMAN to ac-commodate the interests of the hetero-geneous group, which ranges from bio-gas companies to measuring equipmentcompanies. However, it is exactly thiscombination which was seen as very suc-cessful among participants. ‘We could al-ways help each other out, give each othergood tips, for example at trade fairs or atcompany visits,’ recalls Grigoryeva. Thetechnology enthusiasts taking part in thetraining were very happy to look beyondtheir own horizons and learn from oneanother.Contact and Intelligent Solutions‘Energy efficiency begins with the rightenergy metering,’ declares Madi Agyba-yev from Kazakhstan, voicing the con-viction shared by those from the groupwho specialise in measuring equipment.Agbayev is the Commercial Managerat Korporacija Sajman, a manufacturerand wholesaler of electronic and opticalproducts, particularly measuring equip-ment. The qualified engineer from Ka-zakhstan sees saving energy as his mainpriority and reported on a state supportprogramme in Kazakhstan to increaseenergy efficiency. Along with other en-ergy efficient technologies, Agbayevwas particularly interested in intelligentlighting solutions for offices and factorybuildings. He managed todevelop good contacts withthe LED manufacturer OffOn new Lighting GmbHfrom Hamburg. The north-ern German company’s LEDlights can be controlled usingWifi and Bluetooth. Agbayevexpects his first deliveries forthe Kazakh market to be in2013.Dmitry Khilko presented hisproject plans together withhis German project partnerfrom STRABAG environ-mental technology of Dres-den. Khilko is the directorof the STRABAG Engineering Centre(SEC) in Minsk. Two years ago theyagreed to develop a biogas facility in asewage treatment plant near Minsk. Itsaim is to produce electricity and heatfrom sewage sludge. His firm has takenon the role of general planner on site forthis project, which is being implement-ed in cooperation with the firm STRA-BAG Umweltlagen and the municipalenterprise Minsk Wodokanal. The totalvalue of the project is EUR 28 million,and SEC will provide around a quarter ofthe engineering services. During the Pro-gramme, Khilko succeeded in conclud-ing agreements with the German com-pany HEROS AnlagenautomatisierungGmbH and HIK Systeme und ModuleGmbH for the delivery of technologiesfor the project. At the event in BMWi,the project manager on the German sidesaid that if the project is a success, moremay be set up.Other participants in the training Pro-gramme are now also carrying out talkswith German firms. For example, YuriTutyshkin from the firm ‘Rusgasengi-neering’ in Podolsk near Moscow man-aged to establish promising contacts withthe German firm Chriwa Wasseraufbere-itungstechnik GmbH and PSE Engineer-ing GmbH. Viktor Leontyev from Pensa,who works for the regional electricityprovider Pensenskaya Gorelektroset, re-ported on his contacts with the Germanburner manufacturer Saacke GmbH andthe boiler producer Viessmann WerkeGmbH Co. KG. ‘The most import-ant thing for me was the company visits,where we learned about the most moderntechnologies and we could see the facili-ties that interested us most inaction,’ summarises Leontyevwith regard to his impressionsof his training in Germany.The developments in the fieldof renewable energy tech-nologies in particular causeda real sensation. Ultimately,this issue is still getting off theground in the participants’home countries, while Ger-many already has profoundknowledge and high-techequipment to rely on.The application-oriented train-ing carried out by DMAN cov-ered the German energy sectorand project management in the energysector as well as an overview of energynorms and standards. The fear that thistraining would be a bit dry proved to beunfounded. Participants stated that theywould like to hear even more on the issueof norms and standards. The managerslearned about modern, energy-efficient‘Duringthis monthyou learn atremendousamount,which bothbenefits yourown manage-ment skillsand yourcooperationwith Germanbusiness.’Pilot Group:Energy Efficiency in Industrial CompaniesAn international pilot group focusing on ‘Energy Efficiencyin Industrial Companies’ was in Germany in November2012 at the invitation of the German Federal Ministry ofEconomics and Technology (BMWi). Alongside the thirteenRussian and six Belarusian executives from small and me-dium-sized enterprises (SMEs), one manager from Kazakh-stan and one from Azerbaijan also completed the trainingin the German Management Academy of Lower Saxony(DMAN) in Celle. A closing presentation ceremony was heldin the Ministry in Berlin and was attended by representa-tives of BMWi, GIZ and DMAN.Celle/Berlin. The group mainly consist-ed of technical directors, managers ofengineering departments, chief powerengineers and senior inspectors along-side members of their respective man-agement teams. The companies spansuch diverse sectors as railway and foodindustries as the railway and food indus-tries, and are either users of technologieswith high-energy requirements or makeenergy-related technologies themselves.Participants in the Programme were giv-en an overview of energy managementsystems in Germany and current devel-opments in the field of energy efficiency,which means they learned about modern,sElena Grigoryeva onthe roof of the BMWiFrom left: Sergei Kovalev and Evgeny Sobashnikov
  12. 12. GERMANY GERMANY22 JOURNAL 1 I 2013 23technologies in production and the ap-plication of energy management systems.Visits were paid to German producersor operators of energy efficient technol-ogies, but also to energy producers, aresearch centre from the field, an asso-ciation of companies aiming to increaseenergy efficiency and service providersfrom this field, such as financial institu-tions and engineering firms.Well Prepared and Clear IdeasAt the pilot group’s final event in Berlin,BMWi’s representative Ingrid Zilligesdeclared that she was ‘impressed by thevery concrete results,’ which are thanks to‘the participants’ good level of prepared-ness and clear ideas.’ She spoke very pos-itively of the international orientation ofthe group. ‘I felt very comfortable andmade lots of friends,’ said Agybayev fromKazakhstan happily. Reinhard Giese in-troduced the BMWi’s Energy EfficiencyExport Initiative that day (see box). Aguided tour around the Ministry build-ing was met with great interest. On atrip to the photovoltaic roof terrace, theforeign managers enjoyed a view of Ber-lin’s city centre. In addition, this exampleBonn. Representatives of the eleven train-ing centres responsible for implementingthe Programme accepted the invitation to aworkshop issued by GIZ and the GermanFederal Ministry of Economics and Tech-nology (BMWi). These centres carry outpractical training to strengthen the man-agement skills of Programme participants.They also help participants find the rightcooperation partners through their region-al expertise and exceptional contacts in theGerman private sector. Hartmut Röben,BMWiHeadof Division,openedbythank-ing GIZ and the training centres for theirEnergy Efficiency Export InitiativeIn these times of scarce fossil fuels and constantly increasing energyprices, the need for innovative technologies that decrease energy con-sumption is growing worldwide. Germany has an excellent reputation whenit comes to energy efficiency.In this context, the Energy Efficiency Export Initiative under the umbrella brand ‘EnergyEfficiency – Made in Germany’ has been set up under the auspices of the German FederalMinistry of Economics and Technology. It supports German providers of products, systemsand services in the area of energy efficiency. Under the umbrella brand, it furthermoreprovides an information infrastructure for a variety of projects and stakeholders as well ascomprehensive information on important fields of action for saving energy.The Energy Efficiency Export Initiative is basically focused on all relevant markets. Aparticular priority area includes activities in countries with high economic growth, industrialmarkets of strategic significance for the export economy, and emerging economies. Manycountries have recently set themselves ambitious energy savings targets and want toachieve this through targeted measures, which could create great opportunities for Germancompanies.demonstrated to them once again that,not least thanks to the energy revolution,along with efforts to increase energy ef-ficiency, renewable energies are widelyused in all areas of life in Germany. Thisand the memory of their time togetherin Germany with lots of new friends andbusiness contacts will stay with them fora long time to come.sWorking Together on ContinuingProgramme DevelopmentThe current state and continuing development of theManager Training Programme (MP) were the topics of aworkshop in Bonn on 18 and 19 February 2013.dedication and hard work: ‘As an elementof foreign trade policy, the Programme ex-tends beyond just the promotion of tradeto actually improve economic cooperationwith the countries involved. It is in great de-mand and so successful that it will soon beexpanded to additional partner countries.’Negotiations are currently underway withthe Mexican Ministry of Economics. Programme Manager Reimut Düringpointed out the Programme’s objectives:‘The goal is to help small and medium-sizedenterprises (SME) in particular access newmarkets. As objectives, expanding execu-tives’ management skills is as importantas promoting international partnerships.’Project Manager Christina Otto provided areview of the Programme’s implementationat GIZ: Egypt joined the group of partnercountries and German executives now havethe opportunity to learn about the Chinesemarket on location. Over 750 executives in37 groups completed training as part of theMP. There were five international groupsand eleven sector groups.There are a total of seven priority sectors:n The mining and extractive sectorn Health sectorn Environmental technologies in the waterand waste management sectorn Energyefficiencyinindustrialenterprisesn Energyefficiencyinconstructionandtherenovation of buildingsn Renewable energies andn Agriculture.These Programme formats are generallycarried out with an international group ofparticipants. Workshop participants alsodiscussed the importance and challenges ofimplementing the Programme with a focuson a particular branch or topic.On the second day of the workshop andunder the moderation of Dr Angela Leeke(GIZ) and Dr Bertram Lohmüller (Ex-port-Akademie Baden-Württemberg), par-From left: Jörg Kalmbach (CDC), Karina Gabrielyan (GIZ), Dr Ronald Pschierer (DMAN)ticipants examined a competence model forthe MP. The goal is to develop common,international minimum requirements thatapply to all applicants, which would needto be fulfilled to be accepted to the Pro-gramme. A competence monitoring pro-cedure is to be introduced over the entirecourse of the Programme, and the impor-tance of preparing participants properly intheir home countries was emphasised. From2010 to 2012 an international workinggroup comprising experts and employeesfrom GIZ and representatives of foreignpartner organisations and the Germantraining centres worked on this importantissue. A coordinated catalogue of key fieldsof expertise in the areas of corporate andcooperation management has been devel-oped. It covers a wide spectrum from gener-al business management to innovation andchange management, and from intercultur-al management to presentation techniquesand submitting business proposals thatcomply with German standards. An addi-tional area of competence was added to thecatalogue as a result of the discussion: inte-grated thinking and action as crucial keys tosuccess. The competence model also offerstools for assessing how well the ManagerTraining Programme training goals are be-ing achieved. This will provide an analyticalbasis for an ongoing process of adjustmentand further development. Finally GIZ em-ployees and representatives of the trainingcentres talked about the practical effects ofintroducing the competence model. As itnow stands, applicants will need to com-plete online checks and work on case stud-ies after the selection interview. The finalpresentations on the results of training inGermany have shown great success in thepast and will continue.The working groups also dealt with thetopics of Programme formats, interna-tional sector groups and the Programmemodule on training. They presented theirresults at the end of the meeting. Partic-ipants agreed that the workshop was im-portant and useful for coordinating andcontinuing to improve the MP and shouldcontinue to be held every year.
  13. 13. PARTNER COUNTRIES PARTNER COUNTRIES24 JOURNAL 1 I 2013 25of the negotiation process. The bottomline is: you must be well prepared for allbusiness negotiations, particularly if theyinvolve partners from abroad becausecareless words or gestures could ruin asuccessful project.The workshop ‘Relations betweenUkraine and the European Union: Cur-rent Challenges and Decision-Making inthe EU, its Member States and Ukraine’was a challenge. Lecturer Robert Chorol-ski still managed to present the complexissue in a vivid and comprehensible wayso that participants discovered lots ofnew things. They also managed to or-ganise their newly acquired knowledge.Other components of the programmeincluded role-plays. This also providedthe possibility to get the outsider’s per-spective: the trainers made video record-ings which were evaluated and analysedin relation to conduct and participants’answers.A Labour-Intensive Programme in Ger-manyThe next section, and the high point ofthe advanced training as a whole, was thevisit of the participants to the GermanGovernment offices. All of them hadspent a lot of time preparing for the trip:a special seminar was given on Germany’sadministrative structure, the political sys-tem and the special features of the publicservice. The trip, which was meticulouslyplanned, had a packed schedule and waslabour-intensive; the organisers achieveda great deal. During their one-week stayin Germany, participants spoke to andexchanged views with experts from theirrespective state authorities. There wereseveral meetings with representativesfrom a number of Federal Ministries:Economics and Technology, Justice, In-terior, Foreign Office, Press and Informa-tion Office, Economic Cooperation andDevelopment, Labour and Social Affairsas well as Food, Agriculture and Con-sumer Protection. The executives werealso received by the Federal Chancellery,the Office of the Federal President, theBundestag and the Bundesrat. It was allrounded off with a discussion with Min-ister Counsellor Dr Vasyl Khymynets inthe Ukrainian embassy on the embassy’sactivities and the current trends in rela-tions between Ukraine and Germany.There are, of course, differences betweenthe Ukrainian and German state struc-tures. These experiences were importantfor participants, also to help them graspthat not everything should simply becopied and reproduced in Ukraine, aswhat works for Germans could end in afiasco for Ukrainians.Transparency and OpennessHowever, the participants could stilllearn a lot of useful things, for examplethe transparency of the German State,which is both literal and metaphorical inthe sense that German officials don’t justsubscribe to the principle of transparen-cy and openness in decision-making andimplementation. Their administrativebuildings are actually made of glass toclearly show that the State has nothing tohide from its people! Yet another patternof behaviour: modesty and proximity tothe citizens. The offices are minimalistand they have no expensive furniture.The low number of luxury cars on thestreets or beside the government officesis striking. Many officials go to work bybike. This is a norm cultivated in society,a norm for which an appropriate infra-structure was created.ThemembersoftheUkrainiandelegationare certain that the programme was veryinformative, educational and instructive.Contacts made in meetings are helpingestablish even closer German-Ukrainiancooperation not only at government levelbut also at a personal level.Kyiv. ‘The programme exceeded our ex-pectations!’ was the impression of thosewho participated in the 2012 FellowshipProgramme. They took part in an ad-vanced training programme in Ukraineand Germany, an impressive programmeat all levels thanks to its diversity andcontent. The programme has been runevery year since 2001. The workshops,lectures and reports cover:Young executives from the Ukrainian Government took partin a GIZ study and training programme over several months.Marianna Vtorushina is an employee in the Information andPublic Relations department at the Cabinet of MinistersSecretariat in Ukraine. She describes her impressions of theprogramme in this guest contribution.n the establishment of personal relationsn the secret to efficient and productivecommunicationn presentation techniques andn the art of negotiating.In Ukraine, Dr Vladimir Lyskov present-ed the topics clearly and comprehensibly.He emphasised, for example, that theability to listen and willingness to com-promise are crucial. The administrativesystem in Ukraine is complicated, its hi-erarchy pronounced and its regulationsstrict. Unconventional decision-makingmethods are not easy under these con-ditions. This means that state officialsoften have to reconsider processes andlook at a problem from a new perspec-tive. Therefore, Dr Aksana Kavalchuk,an expert in practical psychology, wasinvited from Germany to support theprogramme’s participants. With her astheir mentor, the young executives ac-quired creative techniques, learned howto handle intrigue and how to resolvedisputes. Participants were shown thatthe ability to improvise, flexible thinkingand willingness to innovate are essentialelements of the responsibilities of expertsand executives today. It became apparentthat it is relatively easy to develop an in-teresting idea and a creative approach.You just need to know which method touse: mind mapping, brainstorming, 365method or morphological boxes, etc.Be Well Prepared for NegotiatingThe workshop ‘The Art of Negotiations’analysed ways of and strategies for han-dling negotiations successfully. Partici-pants familiarised themselves with theparticular features of the negotiationprocess with German partners. They alsoexamined the cultural, mental and his-torical aspects of the different nationsand their influence on the developmentStrengthening German-Ukrainian CooperationMarianna Vtorushina Tatyana PedchenkoLeft to right: Lyudmila Shapovalova,Juri Voloshyn, Irina MartynenkoOlga Stolyar Peter Wiest, German Embassy KyivMarianna Vtorushina
  14. 14. PARTNER COUNTRIES PARTNER COUNTRIES26 JOURNAL 1 I 2013 27Kazan/Samara. Two weeks of non-stopbusiness is what awaited the six Germanmanagers who kicked off a tour at the endof October to get to know two of Russia’smost exciting business regions: Kazanand Samara located along the Volga Ri-ver. Together with other executives fromFrance, Norway and the United States,they completed the ‘Fit for Business withRussia’ training programme from 21 Oc-tober to 3 November 2012, and enjoyedan exciting look at the world of businessalong the Volga.The expectations participants had fortheir trip through Russia were as diffe-rent as the branches in which they work.They ran the gamut from ‘general inte-rest in the regions beyond Moscow andSt. Petersburg’ to concrete cooperationplans. Stefan Ivanov, for example, usedthe trip to roll out the German-Russian‘Uralchimplast-Hüttenes Albertus’ jointventure (see article on p 57). Dr SteffenZiesche from the Fraunhofer Institutefor Ceramic Technologies and SystemsExecutives from four coun-tries established businesscontacts in the Russianboom regions Kazan andSamara.Opportunities for Growthalong the VolgaIKTS in Dresden hoped to acquire a bet-ter understanding of the interplay bet-ween the private sector and governmentadministrations. The varied programmeoften lasted well into the early evening.It included specialist seminars, meetingswith companies, policy and administra-tion, cooperation forums and individualcompany visits. This effective blend allo-wed participants to explore the Russianmarket in great detail.In Kazan, the capital and the heart of theRepublic of Tatarstan, participants le-arned all about one of Russia’s strongesteconomic regions. The ‘Idea’ technolo-gy park, the Republic of Tatarstan’s ITPark, and the ‘Chimgrad’ technopolis allprovided an impression of the innovati-ve and scientific potential of Tatarstan.A cooperation forum organised in closecooperation with the CCI of the Repu-blic of Tatarstan rounded off the visit. Itprovided guests with access to numerouslocal firms. Programme highlights inclu-ded a visit to the ‘Alabuga’ special eco-nomic zone in the city of Elabuga and tochemical giant ‘Nizhnekamskneftekhim’in Nizhnekamsk.Kazan. The Republic of Tatarstan’seconomic prosperity is based on oiland gas reserves. In addition to the rawmaterials sector, the chemical industry,vehicle manufacturing, food processingand metallurgy are all well developed.The government’s very pro-business po-licies, the 14 ‘techno parks’, the Alabugaspecial economic zone, highly qualifiedskilled experts and a well-developedinfrastructure all make this an interestingregion for foreign companies.Participants then travelled to the Sama-ra region, which also offered an excitingand varied programme. In addition tomeeting with the Head of the SamaraChamber of Commerce, companies fromthe region interested in international co-operation were also invited to take partin the programme. In the Samara Start-Up Support Centre, young entrepreneurswere available to answer questions. Andat a round table with high-ranking re-presentatives from the Samara RegionKazan SamaraEconomic Administration, roughly theequivalent of the federal states’ ministriesin Germany, participants learned aboutimportant infrastructure projects in theregion such as the ‘Zhiguly Valley’ Tech-nology Park and preparations for theWorld Cup, which will be held in Russiain 2018. A visit to the French-RussianElectroshield joint venture clearly illus-trated the cooperation opportunities theregion has to offer. The programme inSamara was rounded off by a visit to in-ternational aluminium producer Alcoa,the Technical University and individualmeetings for participants with potentialbusiness partners from the region.Samara. Samara is one of Russia’sstrongest industrial regions and an im-portant hub. The area is also rich in mi-neral resources such as oil and gas. Theautomobile sector and Russia’s largestautomobile manufacturer ‘AvtoVAZ-Lada’in Togliatti along with a well-developedsupplier industry shape the regionaleconomy. Other key branches includethe chemical industry, machine buildingand the aerospace industry. Pro-industrypolicies, well-educated specialist expertsand a focus on high-tech clusters andtechnology parks make the region attrac-tive to German companies.The international group headed homewith many new impressions, new anduseful contacts to firms from Tatarstanand Samara, and up-to-date informationabout the management structures andworking methods of Russian companies.Norwegian entrepreneur Murshid Alisummed it up nicely: ‘Now I know howRussian managers work. And I am sur-prised that the differences between us aremuch smaller than I had thought!’ Stef-fen Ziesche’s expectations were also morethan fulfilled. The contacts he establis-hed during the trip will provide an excel-lent foundation for future cooperation inboth Russian regions.Follow-up activities began once parti-cipants arrived home: sorting throughcontacts, preparing for negotiations and– ideally – rolling out joint ventures. TheKazan and Samara Regional ResourceCentres, the organisers on the Russianend, were very pleased with the resultsand are already looking forward to wel-coming the next group of managers.‘Recognising the Signsof Change’In his interview, Dmitry Ovodenko, Director of Samara’sRegional Resource Centre, explains how the trainingprogramme for German managers in Russian regionsdeveloped and the influence globalisation has on his region.GIZ: The training programme for foreignmanagers in Russian regions has existedsince 2009…Ovodenko: ... Yes, we also received ourfirst group of German managers in Sama-ra that year. This is how we discovered anew international field of activity because,before that, we only prepared our Rus-sian graduates from the Presidential Pro-gramme (see also the article on page 28)for their practical training in foreign com-panies in Europe, Japan or the US.Since then you have received several Ger-man entrepreneurs along with many in-teresting meetings.This makes me think of a funny story:we had our second group from Germanywith us at the time and some participantsinvited me to a meeting with three oth-ers to discuss an offer. I followed themimmediately into my office and, becausethis is where I work, the telephones ringconstantly, the door is open and some-one is always looking in. Then came themoment when I answered my first phonecall, my second, third – and at some stageI heard a hearty guffaw. When I put downthe receiver I asked: ‘Did I say somethingwrong?’. The answer was: ‘If we hadn’tattended an intercultural preparatorycourse we would definitely be annoyed,but we knew that we had to expect Rus-sian partners to make phone calls now andagain during contract negotiations, andthat they may sometimes conduct twoor even three phone conversations at thesame time. Here we got to see that this ex-ample isn’t by any means an exaggeration.’In your opinion, to what does the pro-gramme owe its success?Apart from Moscow and Saint Peters-burg, most foreign managers know hardlyany Russian cities. When they visit us herethey see that there is production here tooand they have the opportunity to put theirvarious business projects into practice.What do the Russian regions get out of it?Nowadays, the only entrepreneurs whocan be successful are those who best adaptto the rules of globalisation and gain in-ternational partnerships the fastest. Thisis where the programme offers excellentopportunities – especially for RussianSMEs. You simply have to recognise andaccept the signs of change, how quicklythe world and economic circumstancescan transform.MrOvodenko,thankyoufortheinterview!Company visit at aluminium manufacturerAlcoa in SamaraDmitry Ovodenko
  15. 15. PARTNER COUNTRIES PARTNER COUNTRIES28 JOURNAL 1 I 2013 29Moscow. In 1997 the new ‘Presiden-tial Programme’ was launched, whichwas designed to help modernise Rus-sia’s economy. Its goal: to teach juniorand senior executives from the formerlystate-owned firms through-out the country about mod-ern business managementtechniques and to translatethe economic reforms to thecompany level. It was also in-tended to promote small andmedium-sized companiesand support the economicupswing throughout Russia.The programme helped openfirms from Russia’s regions to the globalmarket by offering internships abroad forthe best participants.Fifteen years down the road, Russia hascome a great deal closer to realising theseThe Russian Presidential Programme (PP) has contributed tomodernising the country’s private sector by training a newgeneration of Russian executives. Over 73,000 young exec-utives have participated in the programme to date. In 2012the PP celebrated 15 years of success.A Story of Lasting Successobjectives. Today the Russian economy ismuch more diversified and competitivethan it was in the mid-1990s, and thePresidential Programme played a role inthis. The numbers speak for themselves:to date around 73,000 youngRussian executives have beentrained at over 100 leadingbusiness schools all over Rus-sia. The programme coversalmost every region in thecountry – from Kaliningradto Vladivostok – and tens ofthousands of companies haveparticipated. It is making atangible contribution to thedevelopment of the Russian economy.The Russian Government founded theFederal Commission for the Organisa-tion of Training of Executives to imple-ment the PP. Regional commissions inindividual parts of the country select can-didates to participate in the programme.The selection process involves the testingof candidates’ motivation, language skillsand specialised expertise. Training takesplace at universities and institutes in theparticipants’ region or in other regions.Many executives have the opportunity tocombine the study programme with theirwork. Others come back from trainingwith new ideas and projects for theircompanies.Positive interim results after 15 yearsThe fifteen year mark for the PresidentialProgramme is an excellent opportunityto assess its success so far. Conferencesand commemorative events were heldin many regions in 2012. The highlightof the celebrations was an internation-al conference in honour of the 15-yearanniversary of the PP in Moscow at theRussian Academy for Economics on 2November 2012. More than 700 guestsparticipated in the Moscow event, in-cluding representatives of the regions,universities and institutions, regional re-source centres, alumni organisations andalumni of the Presidential Programme;in short everyone with close ties to theprogramme.At the conference, the Russian Govern-ment particularly emphasised the impactthe PP has had. Ivan Lobanov, DeputyDirector of the Executive Branch of theRussian Government, called the PP animportant tool in the development of en-trepreneurship in Russia and the creationof new jobs. Every year the programmehelps create up to ten thousand new jobs.Around 73,000young exec-utives fromRussia haveparticipated inthe Presiden-tial Programmeto date.GIZ: Mr Fedorov, 2012 marks the 15thyearofthePresidentialProgramme.Whatwere the goals and tasks in mind at thetime of its establishment, and what impor-tance was attached to the programme inthe course of the years since then?Andrey Fedorov: Since the start of theprogramme in 1997, Russia has takenhuge steps away from a socialist plannedeconomy to a market economy. Corre-spondingly, we were faced with the con-siderable problem of qualifying person-nel to meet the requirements. That wasthe reason why Boris Yeltsin, at that timePresident of the Russian Federation, es-tablished a state programme for trainingIn an interview on the occasion of the 15th anniversary ofthe Russian Presidential Programme for the training of ex-ecutives, Andrey Fedorov, Chairman of the Federal ResourceCenter, explains how Russia’s economy has changed in themeantime – and with it, the programme and its significancefor the country’s business culture.‘Beneficial forBoth Sides’Sergey Belyakov, Deputy Minister forEconomic Development in Russia, em-phasised that the PP promoted a changein mentality in the private sector and civ-il service.Germany, an important foreign Presi-dential Programme partnerRepresentatives of the programme’s tenforeign partners were also invited to at-tend. Hartmut Röben, Head of Divisionat the Federal Ministry of Economics andTechnology (BMWi) was invited to rep-resent Germany. In his speech he calledthe Presidential Programme a modelproject for promoting bilateral businessrelations. The ‘German contribution tothe PP’, implemented in Germany as theBMWi Manager Training Programme,is seamlessly linked to the training pro-gramme in Russia. Russian alumni canapply for practical training abroad, andso far one of every two applicants whohave decided to continue training abroadhas chosen to come to Germany. In totalover 5,000 executives have completedtraining in the German private sector.After returning to Russia, they have suc-ceeded in making their companies morecompetitive, established business rela-tions with German partners and foundedtheir own firms.Since 2006 the Russian Government hasalso invited representatives of Germancompanies to participate in training atRussian economic centres under the ‘Fitfor Business with Russia’ motto. Around275 German executives have taken ad-sAndrey Fedorovexecutives in order to organise domesticindustry. The programme was primarilydirected at managers from the middleand upper management levels workingin existing companies. They needed toacquire management knowledge andcompetencies in order to steer their com-panies through turbulent times and in-crease efficiency, first in their own enter-prises and then also in the entire Russianeconomy.What significance does the Programmehave in the Russian Federation?It is undoubtedly one of the most com-prehensive programmes, perhaps evenHartmut RöbenSergey Belyakov,Vladimir Simonenko,Ivan Lobanov (from left)s

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