The application of international experience in economic development

A comprehensive research has been recently undertaken about the current stages of human development of all countries in the world. It is a regular annual report published by the UNO within the frame of the United Nations Development Program. According to the report of 2014-2015, Russia takes the 50th place by its human development index [1]. It is not a very optimistic ranking considering the size and the globally acknowledged potential of the country. What is more disappointing; it is not the only ranking where Russia is quite far from the first places. Russia has many possibilities for further economic development, especially if the world experience would be taken into account as the foundation of such development. To be objective, Russia has advanced in reducing poverty trying to reach the income level of OECD countries over the last decade. But, these results were caused by high oil prices. There are numerous aspects to be considered in the economic development project for Russia: strengthen the fiscal and financial frameworks, improve the business climate, strengthen competition, improve the foreign investment climate, reduce trade barriers, the size of the SOE sector and improve governance, finance the SMEs, strengthen innovation, social policies to promote equity, modernize the health care system, reforming the energy sector to restore the economy.

To narrow the gap separating Russia from the most developed countries, it is recommended to modernize its economy, reduce its dependence on revenues from natural resource extraction and ensure more sustainable and broad-based growth.

The gap in living standards is connected with a low level of efficiency. Therefore, the improvements or amendments might help fundamentally. It is very important to intensify focus on productivity.

The business environment will be improved in case we strengthen the rule of law, diminish the level of corruption and widen market competition, encourage openness to foreign investment.

Moreover it’s essential to develop transparent public institutions. This would be also a contribution to a more appropriate climate for business Research and Development.

Enhancing economic growth is impossible without the skilled and highly professional workers on the labor market. It means not only the establishment of stricter government control over the institutions of higher education and their activity but also the development of schools seriously focused on the education level of their pupils. Nowadays the educational performance still ranks below most developed countries and the labor market of Russia faces a mismatch in the demand and supply of skills. There is a necessity to invest in human capital to meet the needs of a fast growing economy.

However, higher growth does not lead to improvement in the well-being of the citizens. Among its problems, Russia has great interpersonal inter-regional differences which lead to social and political problems. Ecological context, as well, is of great significance to the overall development. [2].

There is very much to be done in all spheres. Economic development while being called ‘economic’ significantly relies upon stable social sphere responsible for qualified and healthy workers and the general demography and culture of citizens, upon clear and competent political system that really cares about the wealth of the nation and all its citizens, upon ecology which will seriously influence the quality of life of many future generations and upon many other aspects of the country. There is much to be improved but there is nothing impossible for the country which already has the great potential.