Economic growth is impossible without labor productivity growth

On the final day of the 10th Gaidar Forum, an expert discussion took place on the role of labor productivity in ensuring the competitiveness of the Russian economy. The speakers discussed the national project “Labor productivity and employment support”, problems of industrial development, and the opportunities of the Russian economy, as well as the prospects of production systems and their operational efficiency increasing.

According to the vice-president of the All-Russian Non-Governmental Organization of Small and Medium Business OPORA RUSSIA, the general director of Rosset Dmitry Pishchalnikov, there will be no economic growth in Russia if there is no increase in labor productivity. “Labor productivity is the new oil, and high technology is vital for its recovery, i.e. raising productivity. Creating a self-replicating mechanism with minimal controlling participation of the state and officials will change the production culture and the motives of people's behavior and make labor productivity beneficial for all three participants in the production process: labor collectives, managers, and owners of the enterprise,” Dmitry Pishchalnikov explained. He also claimed that today Russia is the only country, in which the fourth technological revolution can occur, because only in Russia, as in a country lagging behind in terms of production efficiency, can labor productivity be increased by 200–400%.

“The national project “Labor productivity and employment support” is primarily about changing the production culture, because without this, labor productivity growth is impossible,” said Nikolai Solomon, director general of the Federal Center of Competences in Labor Efficiency. He stressed that the main goal of the project is to help business in realizing the need to increase labor productivity and in accomplishing this task through targeted support, rather than strict instructions. “We implement programs aimed at eliminating losses in medium and large enterprises, sharing our experience, knowledge, and skills in the field of lean production with employees absolutely free of charge, creating an ecosystem for launching a chain reaction of productivity growth in the enterprise, in the region, in the country,” stressed director general of the Federal Center of Competences in Labor Efficiency.

Executive Director of National Public Movement "Lean Frum. Lean Production Profesionals”, Professor at RANEPA Alexander Borodulin raised the issue of lack of work experience in universities. He stressed that the main purpose of the training is a focus on practice and noted with regret that the real business is not ready to help universities in this task. According to Alexander Borodulin, the development of model factories of processes and the expansion of competitive student practices can be a solution.

Tatiana Volchenkova, Director of the Model Factory in Yekaterinburg, spoke about the work of Russia's first Model Lean Production Factory under her leadership. “Our factory is an excellent example of public-private partnership. There are three participants in the lean production factory, who receive equal benefits: the higher professional education institution the Ural Federal University, the real business represented by the United Heavy Machinery Plants, and the educational technologies of the McKinsey consulting company. The factory solves the problem of lack of production practice in universities, and the real business and McKinsey company have the opportunity to ensure practical training of their employees,” explained Tatyana Volchenkova.

Concluding the panel session, the panelists determined that increasing labor productivity is the most important priority of state policy. They also noted that for breakthroughs in productivity, large investments are not needed. It is necessary to teach business the principles of a production culture and the most efficient use of available resources.

Natalia Vasyanka

All records of live broadcasts from the Gaidar Forum 2019

10th Gaidar Forum Organizers:

The Russian Presidential Academy of National Economy and Public Administration (RANEPA);
The Gaidar Institute for Economic Policy (Gaidar Institute);
The Association of Innovative Regions of Russia (AIRR).

The general partners of the Gaidar Forum are Gazprom and Gazprombank; strategic partners include Prosveshcheniye publishing house, Coca-Cola, Pharmstandard group, ACIG Group of Companies, the Russian Textbook Corporation, SANOFI, Novartis, Johnson & Johnson, Russian Railways, MSD, and Mastercard; EY, Cisco and Russian Direct Investment Fund are partners. This discussion’s partners are Philips, Cherkizovo and RVC.

The general information partners of the Gaidar Forum include the Rossiya 24 TV channel, Forbes global media company, RBC and TASS news agencies. The official information agency is Rossiya Segodnya. The general radio partner is Business FM. The strategic information partners are Kommersant Publishers, the RT TV channel, Interfax and Gazeta.RU. The main information partners are Profil weekly, FederalPress news agency, and Invest Foresight online magazine. The international information partners are Sputnik and Cision. Other media partners include PRIME news agency, Rossiyskaya Gazeta, RNS news agency, Radio Ekho Moskvy, News.Ru,, Parlamentskaya Gazeta, the PRO BUSINESS TV channel, Strategia magazine, AK&M, BRICS, Ekonomika i Zhizn weekly, National Banking Journal, Expert Tatarstan magazine, the Smart Country information platform, Financial One, Naans Media, and the Public Administration scientific political journal.

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