Three problems of development of the North Caucasus Federal District

Six months have passed since the approval of the Federal Government Development Strategy for the NCFD until 2025. The fact that the program designed to become a tool for implementing the Strategy is long-term does not imply a rapid development of the North Caucasus in terms of economic growth. The first phase of the Strategy (until 2017) is supposed to be dedicated to the improvement of the legal framework, governance, development of institution-building, investment in social projects and completion of the implementation of existing federal programs. The second stage will deal with the creation of conditions for the development of small- and medium-sized businesses, industrial clusters and new jobs, as well as for modernization. 

Only on April 15 did the Ministry of Regional Development present it to federal agencies and stakeholders of the NCFD. However, even at the initial stage of development, the authors of the Strategy have encountered serious problems. The first problem is the slowness in implementing the document. This can be explained by a huge number of bodies which have to check the material: 22 federal agencies and 7 subjects of the NCFD are involved in the procedure. Secondly, the program “Southern Russia (2008-2013)” does not account for the budgetary allocation for 2013. This means the program will be stopped next year.The last problem is that the program involves significant amounts of funding from various sources, but it lacks a single coordinator for all these resources. 

The state program for the NCFD plans to create 33 industrial, 88 agro-industrial, 13 energy a 210 transportation facilities, more than 170 objects of engineering utilities infrastructure, 790 health, educational, cultural and sports facilities, as well as 13 tourist objects. All in all, 336.9 billion rubles will be allocated for the implementation of the program, out of which 202 billion rubles will be funds allocated by federal ministries and departments, directed at the development of NFDC until 2013.