'People are Key to the Future Economy'

Maxim Oreshkin, Minister of Economic Development of the Russian Federation and HSE graduate highlighted the key values of the future economy, while speaking at the panel discussion ‘Global Trends: Challenges and Windows of Opportunity’, which was held as part of HSE’s programme at the XIX World Festival of Youth and Students.

The following speakers also took part in the event: Ksenia Yudaeva, First Deputy Governor of the Central Bank of Russia, Yaroslav Kuzminov, HSE Rector, Doron Avni, Director of Public Policy & Government Relations for Europe, Middle East & Africa at Google, Dominique Fache, Chairman of the RTF Board of Directors, and Ozcan Saritas, Editor-in-Chief of Foresight journal and Deputy Head of the Research Laboratory for Science and Technology Studies.

Maxim Oreshkin said that a fourth economic revolution is on its way and the economy is ready for it. In this respect, he noted three trends that currently define our life. According to the Minister, the first area is the revolution of ‘added value’ at the innovation and marketing stage within the global economy. With further development of the economy, added value for ideas and new concepts will only increase.

The next trend is associated with the change in values across generations and corresponding developments in both the economy and society. If you compare people born before World War II and the people of ‘Generation Z’, the role of material goods is reduced, while the importance of self-expression and public recognition has risen in stature.

The final global change is the transition from state economies to city economies. In this regard, personal development requires an appropriate environment for education, communication and experience. Global city leaders can do this by advancing the economy. Cities are now competing with each other regardless of their countries of origin. This trend will develop further, because mobility is expanding, and, according to various estimates, in the next decade it will grow by 40-50%.

‘The main outcome of these trends is that people are becoming the key value for the future economy. The countries that focus on environments that contribute to personal development and enhancing the mobility of their populations, will win in global terms over the next 10-20 years,’ stated Maxim Oreshkin.

HSE Rector Yaroslav Kuzminov said that the market demands creativity, and the education system must change in order to follow this trend. Even though the education system is quite inert, in 10-12 years, there will be a tremendous revolution in education comparable with the creation of the printing press and public schools.

For instance, artificial intelligence and cloud technologies will be available everywhere and transform all existing education methods and approaches. Furthermore, electronic study materials will be able to adapt to individual students’ personalities and needs. Electronic textbooks will replace hardcopies. Books will not only be transformed into e-formats, but in 5-7 years, text materials will be tailored to students’ interests and academic performance.

Yaroslav Kuzminov also noted that we can expect changes in the national exam system. As soon as blockchain technologies become cheaper and more prevalent, they will rapidly spread into the education system, thus allowing for the recording of all student achievements, such as one’s first ever visit to a hobby club. Since students’ enrollment and employment opportunities will be based on this portfolio of key information, they will be very motivated towards further self-development. He added that the trends mentioned above are still expensive, but in 5-7 years, they will become far more available for larger segments of the population. And this reality, in turn, will help to form a new economy and a new culture.

Ksenia Yudaeva, First Deputy Governor of the Central Bank of Russia, said that there are now three new types of technology — everything related to payment systems (e.g., distribution register technologies); everything related to Big Data; and algorithmic transactions. Furthermore, she outlined the role of state regulations in relation to these technologies (e.g., making use of the advantages and limiting any risks), adding that technologies play a key role in the formation big players. And this process may also pose risks, she noted. Therefore, establishing cooperation that can help people get maximum benefits with minimal risks is a big challenge for regulators.

Ozcan Saritas, Editor-in-Chief of Foresight journal, summed up the challenges of the future, which include demographic issues related to population growth, people’s choice of lifestyle and a declining rural population, all of which would mean that we will need 60% more food than today. He noted that it is necessary to create a ‘smart economy’, as well as benefit from these new technologies.

After the plenary discussion, an informal meeting between students and Maxim Oreshkin was organized. At this meeting, the students had an opportunity to pose questions to the Minister. This event inspired great enthusiasm among students, with over 150 participants taking part. Students from Russia, Tajikistan, Armenia, Uzbekistan, USA, UK and other countries showed great interest in such issues as import substitution, the impact of sanctions on relations between Russian and American businesses, the role of universities in economic development, blockchain development, and personal trajectories for success.