North Caucasus development approved by the government

North Caucasus development approved by the government

 

Yeugeny Krishtalev, Alexei Balashov exclusively to Vestnik Kavkaza

 

The Federal government approved the state program on development of the North Caucasus till 2025. It was developed by the administration of the presidential envoy in the North Caucasus Federal District Alexander Khloponin. The main goal of the program is establishing centers of an economic growth, industrial tourist zones, coordination of the state and business strategies in the region. "We should effectively use fortune which the region has," the prime minister Dmitry Medvedev said and added that "mountains, air, rivers, and natural resources," as well as geographic closeness to major trade markets are its competitive advantages.

 

On September 1, 2012, all tourist-recreational special economic areas of the North Caucasus, Afygea, and the Krasnodar Territory were united in one tourist cluster which will be a basis from the largest resort of Russia. According to Medvedev, it will lead to establishing 15 thousand new working places. 235 billion rubles will be spent on implementation of the first stage of the program from 2013 to 2020. Financing of the final stage requires extra financial resources and will be corrected during realization of the first stage. 

 

Khloponin states that extra revenues of the federal budget may be partially allocated to social facilities of the North Caucasus in the future. "In case of getting extra revenues in future budgets we will suggest the government allocating a part of these resources to financing social infrastructure facilities within the developed projects. But it is only if we have extra revenues." Several years ago the government cut programs of the socio-economic development of Chechnya, Ingushetia, and the South of Russia because of the crisis. However, certain projects have been developed within these programs, and extra financial support will enable their implementation.

 

Earlier the minister of financials Anton Siluanov stated that using the investment fund resources is required for financing the program in 2016-2020. But the government decided not to use this instrument. He suggested discussion of reviving the instrument due to implementation of the program. The Ministry of Financials of Russia thinks that increasing financial support of the NCFD development should be provided by the regions without using the investment fund. According to Siluanov, after 2015 the regions' share in financial support of the program will decrease, while the general volume of financing will grow.

 

The head of North Ossetia Taimuraz Mamsurov believes that the program clearly reflects main directions of the economic and social development, gives general understanding of the region's role in development of the whole country. "Implementation of the program will enable North Ossetia to reduce the gap between the republic and the regions with high level of socio-economic dynamics and to reach the GDP of 400 billion rubles. It will dramatically change economic, social, spiritual, educational image of the republic. Considering the fact that the program was developed in close cooperation with us, we, the heads of the regions, will dare to guarantee that we understand our responsibility completely and will do our best for effective implementation of the program, stages, terms, and volumes," Mamsurov said.

 

Rashid Temrezov, the head of Karachay-Cherkessia, states that the program suggests using real mechanisms and instruments for realization of all measures on improvement of social infrastructure, establishing working places, and development of tourism in the region. "By means of encouragement and beneficial investment climate the state will develop economic centers, coordinate state investments, and encourage attraction of private investors to the NCFD. However, the main role in the region's development is played by the constituents which must effectively use their own resources. Existence of centuries-long ties and interests between constituents of the NCFD, deep regional cooperation lead to the fact that many projects within the state program of the North Caucasus development have the interregional character. Their implementation will cause synergetic effect on development of economies of several constituents of the region. In general the program will enable us to solve many social problems and to provide comfortable conditions for life, business, and rest. We intend to reach planned indices," Temrezov said.

 

The governor of the Stavropol Territory Valery Zerenkov says that almost 650 billion rubles will be allocated to the Stavropol Territory from the whole volume of financing (2.5 trillion rubles). It will help to implement 31 project in the educational sphere, 19 projects in the communication engineering infrastructure, 17 - health care, 15 - transport infrastructure, 7 - preservation of natural health care resources, and 8 - arrangement of parks in resort towns. In general there are more than 70 investment projects in the region, 40 of them are in the resort-tourist sphere. "You all know why conflicts appear - routine inter-ethnic, inter-religious. The reason is idleness. We have to watch the situation attentively - what measures should be taken to give people jobs and better life," Zerenkov stated his position.

 

Dagestan's head Magomedsalam Magomedov says that the program "requires a separate sub-program for every region, including the Republic of Dagestan. We hope for this program. Of course it cannot solve all problems. But if the program to be implemented, we will improve the situation in the republic seriously in the sphere of infrastructure, encouragement of an economic growth, and investment policy. Unfortunately, the program doesn't include construction of culture and sporting facilities, but educational and health care facilities are presented in details. 

 

The second part is encouragement of the investment activity through state support and state guarantees. State guarantees enable an investor to implement his projects safely in the regions with various risks. Economic benefits will be provided, in addition. About 50 billion rubles will be spend for social infrastructure facilities in the period to 2025."

 

 

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