Prime Minister Vladimir Putin is using a new approach to lay out his election programme – a series of articles in various newspapers. These articles are like chapters from a larger single document. This is logical since, clearly, few people are capable or willing to read the entire programme from beginning to end. In addition, any attempted discussion of all the issues in his programme would inevitably degrade into a confusing crossfire of opinion. So Mr Putin has outlined his presidential programme in a tabloid-like format. On January 30, another chapter – on economic goals -- appeared in the newspaper Vedomosti.
I think this is the first time Putin has seriously discussed such a key topic as Russia's attempt to find a place in the global division of labour. He is absolutely right to emphasise the main problem that continues to hamper domestic economic development. Putin writes: "After the collapse of the Soviet bloc, Russia had to find a new place in the global division of labour, whose main centres of power had developed without the USSR and, unfortunately, in an atmosphere of confrontation. But we have nevertheless developed an economy that is now an integral part of the global system, primarily thanks to our natural resources." This is a very precise diagnosis showing that our current orientation towards raw materials was caused not so much by somebody's ill will as by the objective historical consequences of the demise of the Soviet Union and the Soviet bloc's capacious common market.
Putin admits that it continues to be extremely difficult to overcome this predicament – we have lost much time and others now occupied the major niches in the world of high-tech development.
At the same time he believes that Russia can make a breakthrough in such directions as the pharmaceuticals industry, high-tech chemistry, composite and non-metallic materials, aircraft manufacturing, information and communications technologies and nanotechnology, all the more so since Russia has managed to keep its lead in the nuclear industry and in space exploration, industries that need many of the above tech industries.
Since Russia can still compete as an equal in the global division of labour in many high-tech industries, the prime minister has set a goal to restore the innovative nature of the economy by reforming education and science. He thinks we should "begin with universities – which should be seen as both centers for fundamental science and as sources for human resources to continue innovative development... This means we must ensure stable funding for university-based research teams with an international approach."
Russian research universities should receive resources of up to 50% of budgeted education expenditures. All those who are directly involved in domestic higher education know full well that this proposal means a fundamentally new correlation between the teaching side and the research side at universities.
Putin seems to appreciate the efficiency of government-run scientific foundations and suggests increasing this funding by several times. He also believes government grants should be comparable with what researchers receive in the West.
Not everyone is ready for such radical proposals. In the same issue of Vedomosti that carried Putin's article, Pro-Rector of the Russian School of Economics, Konstantin Sonin, expressed the opinion that "the entire section on education and science could be deleted from the economic programme altogether." Apparently, he sincerely believes that neither education nor science have or will have anything to do with the domestic economy.
Putin admits that many domestic capitalists share this view. He writes: "We must overcome the inertia of our large domestic capital that, to be honest, has fallen out of the habit of promoting innovative projects or R&D." The prime minister intends to encourage Russia's influential business people to resume this approach through tax incentives, incentives that are likely to be somewhat demanding.
Putin has proved with convincing arguments that Russia can make a come-back in the world division of labour as a high-tech producer. This will not happen overnight and will require arduous labour and unconventional solutions. But a journey of a thousand miles begins with a single step and Putin made it clear in his article that he is ready to lead the nation along this uphill road.
Vladimir Zharikhin, deputy director of the CIS Institute
