Caucasian press overview (January 27 - February 2)

In mid-January, the government of Azerbaijan made a decision to apply the Euro-4 ecological standard to vehicles, which caused a lot of questions and a mixed reaction in the community. Are radical changes coming for the domestic fleet? How will this affect the numerous owners of "non-standard" cars? There are no answers to these questions yet, the parliament is still only considering proposals. The Caspian tells us that in summer of 2010 the Euro-2 standard was adopted in the republic, which concerned imports and domestic production of cars and trucks at local plants in Nakhchivan, Ganja and Shamakha. In the same year followed official statements on the transition to the next, third stage, but somehow they had no result and fell silent. Today, with the final decision on forced transition to the Euro-4 standard, cars will be imported to Azerbaijan depending on production year, and the importing country is crucial. So, for cars from EU countries the lower age limit is the 2005 manufacture year, American-made cars may be a year older. As for Korean cars, the government restricted their age rigidly: 2006.

Officials explain the purpose of the forced transition to the fourth generation of the European standard as a measure of saving, as the expanding fleet, producing more than 800 tonnes of toxic gases annually, significantly affects the environment. This question is also relevant due to international events held in Baku, especially the forthcoming European Olympiad in 2015. Concerning the implementation of the government's decision, Deputy Transport Minister Musa Panahov told the newspaper "Baki Heber" that currently the creation of a mechanism for decommissioning of old cars that do not conform to high environmental standards is being discussed, recycling them, and developing a system of compensation for their owners. Renewal measures for the bus fleet are expected: around 1,200 buses and 2,000 taxis of the new generation will be purchased.

Speaking about the prospects associated with the introduction of new environmental standards, many experts are inclined to say that, for all its importance for improving the city's environment, it is unlikely the project can be carried out quickly and painlessly. They believe that this measure can lead to higher prices in the automotive market, as in Europe, Euro-4 cars cost 30-40% more than Euro-2 and Euro-3 vehicles. In addition, the new outlandish standard will raise prices on cars of local assembly as well, as manufacturers will have to buy modern engines. Another aspect of it is how new measures will impact on private traders who import used cars, for example, from neighboring Georgia? Won't the eurostandard become the Procrustean bed on the way to market monopolization?The question of production of gasoline engines for the new standard also remains open. In any case, says the "Caspian", those are issues of economic and social order, so they require a balanced approach.

 

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According to the Armenian weekly "Business Express", the Armenian economy is largely kept afloat by illegal labor migration to Russia. Due to the economic policy of the state, which in all the years of independence was limited to a fiscal "patching holes" policy, a transfer model of the economy spontaneously formed in Armenia, in which the main export commodity of the country has become the labor force, and often it is illegal. From this direction, the country annually receives about 2 billion transfer dollars, or 20% of GDP, whereas all other commodity exports bring Armenia less than $1.5 billion. And because the country fully controls imports, in fact, it is the transfer money that actually funds the huge trade deficits.

According to the newspaper, this model contains risks that economists have warned of over all these years. If for some reason the export of labor becomes impossible, the country will be on the brink of bankruptcy. The newspaper reminds that, according to recent changes in the migration legislation of Russia, since 2014 the stay in its territory is limited to 90 days for every 180 days, which could have serious consequences for Armenia. In this period, illegal migrant workers are unlikely to be needed by Russian employers. But even if we assume that they will be able to work effectively for 90 days, which is less than half of the season, this alone means a decrease in private transfers by a half.

Of course, there is a way out for migrant workers - go legal. But would legal migrant workers from Armenia be interesting to Russian employers, for whom it means an increase of labor force costs? In addition, work permits will be issued within the quota and whether the employer wants to have this pain in the neck, especially if it is not for the most valuable employees?

According to "Business Express", the current transfer model of the Armenian economy this year may face a very serious challenge, and if no action is taken it is likely that 2014 will end with negative GDP growth. Taking into account all of the above-mentioned, Armenian Foreign Minister Edward Nalbandian demonstrated his optimism to "Aravot". He doesn't exclude the possibility that in the course of further negotiations, taking into account the alliance, Russia will introduce legislative changes for Armenian citizens.

 

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The newspaper "Kabardino-Balkarskaya Pravda" reports that 2.839 billion rubles were allocated within the municipal target program "Accessible environment in the urban district of Nalchik in 2014-2015," to create an accessible environment for disabled people. Elements of a barrier-free environment will be set up at the administration halls of urban district villages, in two libraries, in a chess club and in the Kenzhensky sports complex. Train stations will be remodeled, in two schools induction loops for the acoustically challenged, on 28 street crossings ramps will be installed for visually impaired people, tactile road signs will be installed, some traffic lights will be equipped with sound-signalling appliances.

Previously a similar program for 2013-2015 was adopted across the entire republic. In Nalchik two new bus routes have already been opened with special lifts for wheelchair users, and a system of emergency stops. For the buses for disabled people the most experienced drivers were picked. The routes cover almost the entire city, with stops near the most important social facilities, such as nursing homes, hospitals, pharmacies, post offices, the pension fund and others.

 

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"Osetinskaya Pravda" tells about the problems of the farmers' movement. When the farmers' movement in North Ossetia was born in the 1990s, the government supported them actively, its participants could receive rented farmland, agricultural machinery and various means of production. The Association of Farms (ACCOR) was created, which had a decent financial base, wide authority, and its leaders helped to establish agricultural production. Regional chairmen of ACCOR received a salary for their work. ACCOR conferences demonstrated the commonality of farmers' interests. This public organization united the vast majority of North Ossetian farmers. Today, nothing of this remains. The paper points out that today's ACCOR unites just a few farm owners. Farmers are deprived of a unitifying structure, although they need to solve a lot of problems like receiving subsidies, equipment leasing, credits, marketing of their products, as well as introduction of new technologies and work excellence. Farmers complain that often they are cheated when buying seeds and fertilizers and given fake ones, although if deliveries were made centrally, this could be avoided. There are problems with the storage and sale of products. Many people can't participate in government programs on purchases of grain. The article raises the question of the need to create an organization that would protect the interests of farmers, cooperatives and individual rural entrepreneurs as well as owners of private farms.

 

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This year the process of construction in South Ossetia promises to get more active. Now their objective is to complete all uncompleted objects and begin construction of buildings for important social and cultural purposes. The newspaper "South Ossetia" informs that developers from Tatarstan were invited to Tskhinvali, who, specially for South Ossetia, have created a common company LLC "Everest". It will serve as one of the major general contractors. According to the newspaper, in Kazan these builders performed the largest amount of work before the World Summer Universiade 2013. Thenewspaper says that in Tskhinvali you can see geodetic engineers making topographic measurements. "Everest" will erect a new building of the South Ossetian Khetagurov State Drama Theatre. The company will take care of the construction of the Republican Lore Museum, works are already underway. They will also finish restoration work in the concert hall "Chermen."

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