The topic of the South Ossetian economy is usually bound up with its reconstruction. But reconstruction is only part of the plans of the republic's authorities.
Although the problem of reconstruction of the republic is the most important point in the discourses of the local authorities, reconstruction is only one part of the general development program. A special commission deals with the reconstruction, while the government is to develop a general economic development project. Alexander Zhmaylo, the economy minister, recently announced plans for the economic development of the republic over a year.
Most attention is paid to development of small- and medium-scale business and agricultural development. The total budget of the program will be 92.078 billion rubles. The projects will be financed through local commissions, and generally local governments will be delegated much authority.
I managed to speak to Mr. Zhmaylo by telephone and asked him to elaborate on his statements.
- Mr. Zhmaylo, we know about the program of reconstruction of the republic. This is a tactic, but is there a strategy?
- A strategy is being developed, our the short-term plans are now more pressing. There is a program of development for 2010.
- What is the point of the program?
- The idea is not to lose what we achieved in 2009 and to stabilise development and create new jobs. The agricultural sector is one of the main priorities.
- There is an opinion that South Ossetia is only an agricultural republic. Is that true?
- For sure, agriculture is one of the most promising sectors of our economy.
- With regards to industry, have you considered mining?
- Well, South Ossetia is a region appreciated for its nature and good ecological conditions. I think we win more if we keep this status quo and develop ecologically clean industries.
- In the 1990s there were two main revenue earners in Ossetia - vodka and transport. Is something going to change in the future?
- Well, it's a difficult question. Of course, it depends on the geopolitical situation.
- Is any cooperation with regions of Georgia planned?
- I can't answer this question now.
- After the financial support to the republic provided by Russian prime minister Vladimir Putin, will it be easier to implement the economic plans?
- We will see.
Experts say that economic development is impossible without a concrete program. Moreover, the crisis is being aggravated by the conflict between the president of the republic Eduard Kokoyty and its prime minister Vadim Brovtsev. The Russian premier personally expressed a wish to reconcile them.
