State hinders development of digital economy

27 february 2017

“The state sector proves to be a major inhibiting force for the development of digital economy,” this statement was made by Deputy Head of the Analytical Center Vasily Pushkin speaking at the Russian Investment Forum in Sochi.

“Digital economy marks an era of a new form of relations and interaction between companies, between people and business community. Yet, the state stipulates the basic requirements to financial reporting of business companies in such a way that just any regulatory and supervisory authority whatsoever may simply come and demand a paper proof of all transactions effected between companies”, Mr. Pushkin announced, speaking at a roundtable titled “Challenges faced by digital economy: the role played by the socio-cultural environment and infrastructure in business development”. But digital economy is based on totally different principles of interaction and on more in-depth work with data”, he explains.  

“What we need is to change the data management principles proper, but this would be a major challenge for the society”, - the expert claims. He believes that the current legislation lacks a regulatory framework related to data management, which includes not only storage and processing, but also the very life cycle and the digital archive. Also, the country needs to create and promote its own platforms to confirm transactions. Here is a fine, well-functioning example for you – the Integrated Government Services Portal, but platforms like these are seeing slow development in Russia and they are so far too few,” concludes the analyst. “Government agencies really must readjust themselves, switching to a different principle of operation, to more modern forms of supervision and control, finding their own place in the world of digital economy,” summed up Mr. Pushkin.

Digital economy is becoming an important element of improving the competitiveness of the state.  The leading role of digital technologies in the investment development of the country was highlighted by the President of the Russian Federation Vladimir Putin in his address to the Federal Assembly when he suggested launching a “comprehensive large-scale program for the development of the new technological generation economy”. The members of the panel held in Sochi feel certain that successful accomplishment of this task will require proper consideration not only of the opportunities offered by technological progress, but also the potential risks it entails; all this bearing in mind that such issues as management development and training, the quality of health care and education, public catering, and availability of the Internet are going to play an ever greater role.

See full broadcast of the conference.