In the economy

What is the road to go to Russia? Part1

May 26, 2020 Evgeny Yasin

Digest

Does the Russians have an understanding of what expensive Russia should go in order not to slide into the category of backward countries? The science leader of the Higher School of Economics Evgeny Grigoryevich Yasin paid a lot of attention to the search for answers to this question. We offer readers a digest based on the materials of his report "Modernization and society."

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European countries, the USA, Canada, Australia, Japan today have moved to a new innovative stage of development, while other countries are not yet. The peoples of developing countries need to reform the usual orders, borrow the culture of developed countries. Some countries, such as South Korea and China, do it. Others, such as Russia or Turkmenistan, are very far behind. Our elite and a significant part of the country's population are opposed to real modernization. And the president entertains Russians with conversations about our special civilization ...

China, India, Brazil, Islam countries have an excess of labor resources. They can accept foreign capital and turn it into economic growth. Russia does not have free hands, as they are not in Europe. This means that investors do not give investors the expected profit in our economy. Moreover, not only because of the shortage of labor resources, but also due to excessive administration, due to state intervention in the economy, due to general corruption. Entrepreneurs in Russia are poorly protected from the arbitrariness of officials. A high level of taxation plus the collection of tribute to various kinds of controllers is pressed on the business. Moreover, in Russia there are no independent courts capable of protecting the business.

Foreign companies avoid long -term projects in Russia. And our entrepreneurs are withdrawing capital from Russia. According to the Central Bank, in the Russian Federation from 1994 to December 2018, the export of capital amounted to 766.2 billion dollars .

Russia has already passed the stages of industrialization and urbanization, the majority of the population lives in cities. Therefore, the development according to the model of catching up, natural for many countries, is simply unacceptable to us. But if Russia cannot compete with China, India or Brazil in labor resources, then only an innovative development model remains for us. We need the knowledge and work of people who will help to convert oil and gas income to the development of an innovative economy. This can be achieved only by changing our institutions and our culture. The authorities should contribute to changes, and not create obstacles to business for the sake of enriching high -ranking officials and close to them of the oligarchs. But our bureaucracy is not interested in this, and we can’t move it towards the reforms.

Vladimir Putin has repeatedly stated the need to move from the raw material economy to innovative. The Academy of Sciences was reformed, the Fund for the Promotion of Small Forms of Enterprises in the Scientific and Technical Sphere was created. Established technology parks, technical and impressive companies. The State Corporation Rusnano was formed. But they have not achieved success. Why? Because in Russia there are simply no conditions for creating an innovative economy.

What are they, these conditions? As world experience shows, you need a minimum level of well -being of the country's residents. It is, in the per capita GDP is 5 thousand dollars per year. But to create an innovative economy in Russia, other conditions are also needed. This is the freedom of creativity, freedom of entrepreneurship, competition, high level of education, this is the development of science and the innovation industry, social capital, as well as the trust between people and the trust of citizens to power. For the transition to an innovative economy, these conditions should be provided at a competitive level, i.e. On the same or even higher than in Europe and the USA.

Freedom of creativity

Freedom of creativity is the main condition for the innovative economy. This is a search for extraordinary solutions in various areas. If there are many restrictions, then the possibilities for creativity are minimal. The optimal balance of freedom of creativity and restrictions is important. The transition to an innovative economy suggests that the balance will be shifted in favor of freedom.

Many people prefer to live with a clear regulation of life. To think and decide less. But there are people, their minority who have more talents. They need more freedom for creativity. As experience shows, an innovative economy needs a minimum of regulations.

What do we see in Russia? We learn about the new State Duma, limiting everything and everything, we will find out almost daily. A fresh example: referring to the pandemic, the authorities intend to expand the grounds for blocking bank accounts, increase the number of documents of documents, reasons for disconnecting access to online banks.

In developed countries, creativity, that is, the ability to create new ones, has turned into a "main source of competitive advantage." Today, the number of produced as his novelty is not so important. In terms of the volume of the creative economy, the United States is confidently leading in the world. So, in the field of software, they occupy 66.5 % of the global volume, and in the field of R&D - 44.6 %. ( Source : [Florida, 2005, p. 62]) Where was the personal computer developed and introduced into everyday life? In the USA! And YouTube, the most popular video hosting? Or Google? Also in the USA. Like many other innovations that have changed the lives of people.

[Note the rapid growth of the creative class in the United States at the end of the twentieth century, a reduction in the number of farmers and workers. Since 1980, the share of employees began to decline. Why? Because in an innovative economy, more and more people earn it precisely by creativity.

Freedom of creativity is a condition that seems easily feasible: well, who prevents a person from creating if he wants it? In fact, a lot interferes. After all, if there is no freedom of entrepreneurship, weak competition, there is no means for the development of science and education, then the creative potential of people will be used with extremely low efficiency. And our compatriots will go abroad, to countries where they have a chance to realize their ideas. How the inventor of the helicopter and multi -engine aircraft left Igor Sikorsky. How Vladimir Zvorykin left, one of the creators of television . As in recent decades, after the opening of the borders, hundreds of thousand talented scientists, engineers and programmers have left and leave Russia.

Freedom of entrepreneurship is the main component of freedom of creativity. But entrepreneurship is a kind of creativity, focused not on the opening, but on benefit. It is always selfish, this is its nature. Hence, however, the benefit for the whole society. However, norms, legal and ethical, holding business in a certain framework are required. And here the innovative economy requires displacement of balance towards more freedom.

The entrepreneur is the main consumer of innovation. There is no it, and it is for no one to address the invention. More freedom of entrepreneurship is more and demand for innovation. But our entrepreneurs spend many less funds on innovations than our competitors, including China and Brazil. Firstly, entrepreneurship in Russia is young, it is still prone to the search for rent, especially since there are conditions for this. But sooner or later it will pass. Secondly, today the possibilities of technological borrowings are not exhausted today, which is rational to use in the first place. And the third reason: a business that complies the laws should really be free. This is not in Russia. If our entrepreneurs are forced to pay bribes and rollbacks to officials, then what freedom of entrepreneurship can we talk about? Of course, business can experience pressure, but only pressure from the market, not bureaucracy.

It can be compared with Russian practice to reduce administrative barriers in Georgia during the presidency of Saakashvili. The number of officials there was almost half. Licenses and permits reduced from 1 thousand to 140, almost all GOSTs were canceled. Simplified tax legislation, out of 22 taxes were left only 4. They reduced tax rates. Instead of 16 customs tariffs, which used to reach 30%, left three, very small. Introduced a law under which new taxes in Georgia are allowed only through a popular referendum!

What guarantees freedom of entrepreneurship? The supremacy of the law, an independent and competent court, capable of making decisions against the executive branch. We need free entrance to the market, ensuring business safety from corruption and criminal influences. The key question is the protection of property rights, including intellectual, ensuring the execution of contracts. These are capital truths, but if they are not respected in Russia, then business activity will be focused on corruption income. Then where will the demand for innovation come from?

An example of our realities is the construction of state orders. Almost all state building standards have been developed by private companies affiliated with the federal pricing center in construction. Who shares his officials, he promotes the norm he needs. Developed, lobbied and approved. What incentives for innovation in construction can be discussed then?

Competition

Competition is an absolutely necessary addition to freedom of entrepreneurship. It creates incentives for innovation, to update products, increase productivity and reduce costs. Businessmen who do not pay due attention to innovation are under the threat of ruin in the conditions of competition.

The equality of competition conditions is of fundamental importance. Competition should be supported by the state in order to keep the tendency of concentration and monopolization in the framework of the permissible for a market economy. So in the USA at the end of the 19th century. The antitrust law of Sherman was adopted. Republican President Theodor Roosevelt had to conduct judicial persecution of the giant monopoly “Standard Oil” to achieve its fragmentation and thereby create competitive conditions in the oil market. Democrat Franklin Roosevelt had to do a similar work in the era of the “new course”. In 1935, on his initiative, a package of laws was adopted against large diversified holdings, which changed the whole picture of corporate governance in the country and contributed to increased competition. We have such holdings, including state -owned ones, act everywhere, except that, unlike the American is loyal in relation to power.

In 2006, a new law “On Protection of Competition” was adopted, which was supposed to improve legal regulation. But he did not become mandatory for everyone. For example, the status of special exporters who are endowed with Gazprom and Rosoboronexport, clearly narrows the field of competition.

Antimonopoly organs are useful if they are independent and have significant powers to resist the lobbying of large companies. Therefore, the rule of law and an independent court are indispensable institutions of a competitive innovative economy. But this is exactly what we miss!

In Russian markets, the number of anti -competitive actions is growing. The main violators of competition laws are regional and local executive bodies. Our trouble is not only bloated legislation that allows officials to enrich themselves, oppressing the business, but also the failure to fulfill laws in the absence of strict coercion mechanisms. This is in Romania from officials to seize mansions if they cannot prove the legality of the origin of their wealth ( what does the corruption vertical are kept on? The experience of Romania ). This is impossible in Russia.

It is recognized that only the adoption of antimonopoly laws and a strict coercion to their implementation are still not enough. We need an open economy, the maximum reduction in border barriers. And we impose sanctions against our own people, limiting the supply of food on imports. Thus, we block competition among domestic manufacturers. Where then do incentives for innovation come from?

Education

A high level of education is a prerequisite for the freedom of creativity and, in general, an innovative economy. Discoveries are possible if people have good knowledge in their and related areas. Without this, the designers design “wooden bicycles”. We need specialists who own the skills of constant updating of knowledge. Hence the high requirements for education.

It should solve two conflicting problems. The first is to ensure professional qualifications with wide layers of citizens so that they are in demand in the labor market. The second task is to identify and prepare the most capable, most gifted. The fewer advanced talents, the fewer discoveries and inventions. This means that it is precisely to these people that the conditions for creative searches should be provided. Moreover, equal opportunities should have all gifted people, regardless of the status and wealth of parents.

The Soviet education system had many advantages, but it does not meet modern requirements. The reform of education requires large means. The concept of reform is known. Its main elements: 1) exam; 2) GEFO - a state -owned financial obligation or educational voucher; 3) openness of education, the participation of the country in the Bologna process; 4) the development of the creative abilities of students.

Exam Creates a unified system for assessing the knowledge of graduates of secondary school, ensures the availability of higher professional education, since the surrender of the exam gives the right to admission to universities. At the same time, elite universities should have the right to an additional test of knowledge of applicants. But the right to such an audit should not mean the right to ignore the results of the exam, otherwise the availability of quality education will not be provided.

GEFO is the implementation of the principle of state per capita financing of higher education (“money follow the student”). Its meaning is that the better the applicant passes the exam, the more money the state will give him to study at a university. Students would bring money to the selected university, and GEFO should stimulate the competition of universities for the best applicants. The experiment on the introduction of state registered financial obligations (GEFO) began in Russia in 2002, but was declared unsuccessful in 2005.

Meanwhile, the exam without Gifa loses its effectiveness. After all, ultimately the exam is needed to exercise the right to free education. Together with GEFO of the exam allows you to combine a free education for talented with a paid education for less successful, if they have a desire and opportunity to learn. And, we repeat, GEFO is able to create competition among universities. In the meantime, the transition to financing on the basis of GEFO remained only a wish.

The openness of education , participation in the Bologna process is also criticized in Russia. But it is important that Russian youth receive education at the level of world standards so that our education is integrated with the educational systems of developed countries, so that our diplomas are recognized in different labor markets. This approach entails the possibility of “brain leaks”. But you can hold talents only by creating a favorable climate in Russia, providing freedom of creativity. Limiting brain leaks, as world experience showed, is counterproductive.

Meanwhile, every year our country leaves at least 100 thousand people. These people, for the most part, are qualified specialists. They are leaving for permanent residence in the USA and to European countries. Only 15 percent of them agree to return to Russia in the future. Most will never return. These data were obtained by the Russian Academy of National Economy and Public Administration. They are seven times higher than the official statistics of brain leaks issued by Rosstat. Because these figures were obtained on the basis of statistics of host countries.

Higher vocational education decisively depends on primary and secondary schools. But its condition should be recognized as depressing. We need investments, first of all, in the teacher's personnel to make a school attractive to talented people who can combine the functions of learning and education, to awaken interest in creativity in schoolchildren. The school should teach its pets the ability to bring its undertakings to practical results. But this requires a radical change in programs and teaching methods. Is modern Russia capable of this?

Development of creative abilities It applies to all levels of education and is necessary for the implementation of the innovative model of development of the country. In Soviet times, our education was set to assimilate of relatively low, but massive knowledge standards that met the conditions of industrialization and urbanization, as well as narrow professional training. There was also an elite higher education, which allowed the replenishment of leading scientific schools and design bureaus. Attempts by Academician M.A. Lavrentiev in the late 1950s. They did not receive distribution to combine great science with education in the Siberian Academgorodok. But if we want to succeed in an innovative economy, we will have to accustom people to freedom of creativity, to readiness to abandon universally recognized canons. This is the most important task of education.

To do this, it is necessary to increase the time of independent work of students, reduce the time of the auditor's load of teachers. The center of gravity of their work should be transferred to scientific leadership, to control of knowledge, to the participation of students in scientific research. This reform is more difficult than changing the examination system and studying studies. Are we ready for this?

И в целом, готовы ли мы принудить наши власти проводить реформы, направленные на развитие инновационной экономики, как делают это власти восточноевропейских стран? Ведь под лежачий камень вода не течет, а уровень жизни наших детей и внуков зависит от нашей позиции!