State role in orchestrating modernization
Published: 09 September, 2010, 18:43
Edited: 13 September, 2010, 15:16
What role should the state play in modernizing the economy and what steps should Russia take to move forward on the path to innovative economy? Participants at the Yaroslavl forum have been sharing ideas on this matter.
Learn from Singapore, Germany and South Korea about state role orchestrating modenization.
The role of the modernization should not be overestimated! Although USA has some of the most advanced technolgies it has big unemployment rate (real rate is almost 20%) and its young people graduating from universities cannot find jobs in (high-tech) industry. The trend with advanced technologies is high automatization which leads to less jobs and then finally young educated people trained in engineering end working in low wage jobs because engineering jobs are becoming more scarce as the technology advances. Physical stuff has to be made one by one but intellectual designs are easily copied and/or modified. And at the very end the necessary conclusion is that there is too much people for the CURRENT economic system - 1) either we change the economic system of wealth and job distribution into a socially fair one (communism) or 2) we depopulate the world in order to keep the existing economic system (slave-capitalism). The so called "neoliberals", and which Russia Today calls "Russian elite" (?!?), are essentially selling us the second model - they want to keep the existing (unfair) system! By the way where is "democracy" here? A lot of empty words on "democracy" in the article but at the end those "neoliberals" who are highly unpopular in the Russian society are called "Russian elite"!?! Did anyone vote for them? No! Whom they represent? Western oligarchs? They certainly do not represent Russian people! The policies these "neoliberals" advocate are despised within the Russian society since the people suffered from the criminal devastating policies during the 1990ties! People overwhelmingly support and vote for V. Putin for his patriotic and state-strengthening program! I also want to ask one simple question: is Russia Today a media channel of the Russian government or of the western governments? I have noticed many, many times biased reports which go as far as hinting to Russia as an "unreliable country" (e.g. on the Iranian nuclear issue)!
That's the right approach. Balance is key!










At last some real debate, real alternativism, real positivism, in terms of trying to find a solution rather than coming with anti Russian problems mantra. It is absolutely true that you need a mixed top down and bottom up approach. Even a bit of middle but I ain't going to fit that in here. It is also true that you need human capital and financial capital. So you should consider two things, how do you create that capital(s), and how do you get the investor of that capial to actually invest. If you take human capital; that is created through education, through experience and obviously is based on natural talent. So you need education which is top down, you also need something big, be that MIC, innovations zones, government laboraties.... to accleerate the start pocess and in the end sit alongside real large individual corporations in a less active strategic fashion. So you should see top down as heavy to start, tapering down to a strategic maintenance level, and see bottom up as zero, tapering up to be the dominant driver in the future. For finacial capital, that's easy, take the taxes from the hydrocarbon companies and match it with leveraged internal or external investors capital. Now why should someone invest their human or finacial capital, well like any investor, they will only invest if the investment environment is correct. They need protection for their investment, so their return is protected. They also need an environment that facilitates the easiest route to bring that investment to fruition. So they need absolute property laws that function and they will look positive additionally on anything that helps them, basically by anything that oils the wheels, but more importantly nothing in the way. They will look for protection, a lack of barriers and any enablers. Removing barrirers is key, they don't want huge paperwork, they don't want officials, they don't want to work out roofs (protection) they just want to do things and access the markets.