HSE rector warned about the loss of Russia’s creative class

Russia loses more creative class than it receives from abroad. This was stated by HSE rector Yaroslav Kuzminov after a closed meeting of the working group at the Economic Council under the President in “Priorities for structural reforms and sustainable economic growth.” The group is headed by the head of the Center for strategic development Alexey Kudrin. The meeting was held on 5 July in Moscow.

Kuzminov presented a report “Human capital as a resource for Russia’s development in the medium and long term.”

“The key issue of human capital in Russia is increasing divergence between the demands for labor and providing jobs,” he added.

“There are bad things in the economy. Is their drivers — the people who bring innovation, are at the origin of the changes. We need to change the situation with the drivers of our economy: scientists and cultural figures. Russia today, unfortunately, loses more of these members of the creative class, and more scientists than it receives from abroad,” said Kuzminov.

To resolve this problem, Russia needs to review its migration policy, said Kuzminov, “to Russia has become comfortable, attractive place to come here young scientists from other countries, not afraid to bring entrepreneurs from other countries and make their businesses”.

The existing model of migration, when every tenth in the country a migrant worker, now best of Russia and its economy, he said. “We receive migrants the most. The migration model in Russia plays an important role. Russia is one of the most successfully countries on the situation in the field of employment. But if the market will remain millions of people as a result of the progress of health care and more cultural way of life, that is, [people ] less will die from alcoholism and proizvodstvennyh injury,… will have to regulate the migration policy,” says Kuzminov.

The days of big money are gone

Also, Kuzminov warned of the need to improve the efficiency of spending in support of health and education.

In Russia, the time was spent falling from the sky money,” he said.

For this reason, working group under the direction of Alexei Kudrin, according to Kuzminov, does not expect that the next ten years will be able to increase funding for health and education. “In our opinion, we must proceed from the model that by 2020 we can with the political will of the government in the worst case to keep the funding in these sectors. The best is to increase by 0.5% of GDP, that is 350 billion rubles Is not a lot of money,” said Kuzminov.

In the end, it is necessary to look for options where the money goes in these industries. “The resource situation in the Russian economy, of which we speak, is that the time of large, abundant money and the championship and on the Olympic games to spend, and anything else to build, is over,” said Kuzminov. In medicine, in education, he added, the money of nalogoplatelshikov “is spent in vain, without useful effect.”

In November 2015 Kuzminov was the author of a critical report from the HSE on the priorities of the budget policy of Russia. The report was based on the expert opinion of the various units of the University. “The main macroeconomic problem of constructing the Federal budget is balanced revenues and expenditures in a sharp drop in oil prices”. The report said that spending on the state apparatus and the defenses are growing, and investments in education and health of people fall for a long time so can not continue.

“There are multiple rings: one we have successfully conducted a missile launch from the waters of the Caspian sea, and on the other reducing the spending on science and education with the wording “it is necessary to tighten belts”. If these questions today, we tighten the belt tomorrow there will be no missiles, no Navy,” says Kuzminov.