POSTED: Sunday, Jun. 06, 2010

Bellingham's relationship with Russian sister city grows as global economy improves

Bellingham continues to build an economic relationship with one of its oldest sister cities.

Last month John Sands, a business management instructor at Western Washington University, and Dave Malcolm Woods, a counselor for the Bellingham chapter of SCORE, visited Nakhodka, Russia. Both were there to see the opening of a new entrepreneurship center and host a seminar about economic business strategies.

Nakhodka is in an interesting stage in its economy. It's been about 20 years since the fall of the Soviet Union. And, being on the East Coast of Russia, the city was impacted by the economic challenges of other nearby Asian countries like Japan in the 1990s. It is a port city of about 150,000 at the terminus of the Trans Siberian railroad. Most of the population works in the fishing, ship repair and transport industries.

Being near all the natural resources of eastern Russia, it can play a significant role in the export/shipping industry. City officials are anxious to start building its small-business sector, Sands said, but they are still developing practices to make it successful.

"We wanted to show them the things that work here (in Bellingham) and let them decide what would work there," said Sands.

Both Sands and Woods said there's a tremendous opportunity in Nakhodka, but it needs to start developing some networking organizations that can be valuable for small-business owners, including something like SCORE counselors or an equivalent to the Small Business Administration. The new entrepreneurship center at the Institute of Technology and Business is a good first step, they said.

"In order for it to be sustainable, they need a culture of wealth creation, and this (new center) can help," Sands said.

Sands noted that along with the shipping and being near valuable natural resources, the city also has a well-developed performing arts sector, something he thinks can be an important economic driver. One area he believes needs some work is general infrastructure improvements, such as improving roads and easing traffic congestion.

Overall, though, it's been a significant change from six years ago, when Sands last visited Nakhodka.

"The shops are fuller and there is much more activity within the city," Sands said. "They still have a ways to go, but you can see the improvement."

Nakhodka and Bellingham became sister cities in 1989. Because they share many similarities, it's a great opportunity to continue to exchange ideas. Sands is planning to have his students in upcoming business management classes interact with the students of Nakhodka's entrepreneurship center. As more small businesses get established, Woods plans to assist them by providing details on growing a company.

"There seems to be interest in getting more restaurants established, and that's something we have experience with here," Woods said.

Establishing and maintaining these personal relationships can be an important benefit for Bellingham down the road. As the global economy recovers and the need for natural resources such as oil and wood increases, Eastern Russia and port cities such as Nakhodka will become a crucial part of the world economy. Having a relationship with that area may lead to economic opportunities both Nakhodka and Bellingham can share.