OREANDA-NEWS. The Chairman of the Board of Directors of Center-invest Bank, Dr Vasily Vysokov, took part in a recent IFC Financial Institutions Group Knowledge Forum. Dr Vysokov presented a paper entitled "Transformational Banking: made in Russia" and spoke about Center-invest Bank's experience of working with IFC.

Center-invest Bank and IFC have worked together for over a decade.

Our new projects with IFC are concerned with the transformation of the traditional economy into an economy of collective goods and services. Today, it is not enough to produce a product; companies must create and support infrastructure for consumption of the product. Although the nature of collective goods and services is such that everyone requires them, no one wants to pay for this infrastructure.

The inelastic demand for collective goods and services gives rise to problems involving unsuccessful attempts to regulate tariffs and prices for such products and services. This means that increased demand cannot be met, and the result is the breakdown of the existing infrastructure. By introducing new approaches a balance can be achieved between increased demand and the quality of collective goods and services. At the same time, a balance between supply and demand will only be achieved in the long term.

Therefore, the economy of collective goods and services is a striking example of transformations: non-stop, creative, responsible, sustainable solutions today for generations that will consume these goods and services in the future.