Magomedov also summarized the results of the past year. Most successful were the measures aimed at consolidating society and establishing a civil dialogue between different religious communities. The head of the republic sees terrorism and corruption as major obstacles to the socio-economic development of the republic.
According to Magomedov's calculations, the republic is in need of investment worth 1.2 trillion rubles in order to increase the volume of fixed assets per capita to the national average, but Makhachkala does not have these funds. Investors refuse to invest in the economy, for fear of losing their money. There is a number of rich people in Dagestan, but their money is stored in foreign banks or invested in the development of other regions of Russia, where there is no corruption. Investors are also terrified by terrorism. If previously terrorists were sponsored by various foreign funds, now the main source of income for the militants is money extorted from businessmen.The quality of life in Dagestan, according to both local experts and observers from Moscow, is lower than the average for Russia. As a result, thousands of young people without access to a quality education, join the militants or become guards of rich bureaucrats and gain access to weapons. Despite all these problems, Magomedov made it clear that investments are the main solution to the present socio-economic situation in Dagestan. An escrow fund of $2.4 billion and an investment fund landsite comprising 1800 hectares have been already allocated. At the same time the budget for 2011 provides substantial funding for the preparation of business plans and project estimates. The authorities have made a register of 61 investment projects totalling about 200 billion rubles, 20 of which have received priority status.
Musa Musaev, Makhachkala. Exclusively for VK
