Caucasus Press Review (April 5-11)

Caucasus Press Review (April 5-11)


By Vestnik Kavkaza


Dagestan discusses involvement of two mono-towns – Kaspiysk and Dagestani Fires – into the federal program of support for such residential areas. It has been operating since 2009. The newspaper ‘Dagestanskaya Pravda’ reports that a working group for modernization of mono-towns under the governmental commission for economic development and integration has visited city-forming enterprises of Kaspiysk and Dagestani Fires.

A hybrid investment platform ‘Uytash’ (130 ha) was established in Kaspiysk for diversification of the economy and improvement of the socio-economic situation of the mono-town. The republican budget allocated money to development of projecting documents on building engineering infrastructure which should provide the platform with gas, water, a drain system, roads, railways. Efforts on improvement of technical conditions are being taken. The chairman of the government of the Republic of Dagestan, Abdusamad Gamidov, says that the main goal is to provide enterprises with electric power, according to the main scheme. Later, investors can establish gas-driven turbines, if they want, as it is more beneficial economically.

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The newspaper ‘South Ossetia’ reports that at a session of the Public Coordinating Council in the sphere of small and medium-sized business in Tskhinval, the Minister of Economic Development of the Republic, William Dzagoyev, who heads the Council, has stated that the Ministry has developed regulations of work with potential investors in the republic's economy and the selection of priority investment projects. The document regulates the terms and sequence of actions by executive bodies of the authorities of South Ossetia on information, consultative, and organizational support of business and investment subjects which are implementing or planning to implement investment projects in South Ossetia. It is aimed at elimination of administrative barriers during implementation of investment projects, unification of the process of cooperation between investors and executive power bodies. The regulations define priority directions in the investment activity: production of construction materials from local stock; production of food products, including breeding cattle of beef and dairy breeds, small cattle, pig breeding, mountain livestock farming, vine-growing, fruit and vegetable growing; agricultural processing enterprises; production of consumer goods; tourism; services, including services directed at support of the tourist sphere; and trade.

According to main criteria of selection of investment projects, they should require new construction or reconstruction of facilities with implementation of new equipment. A business plan is obligatory, as well as a positive loan history, absence of debts to the budget of the RSO, documents on owning land and property, if it is used, according to a business plan.

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Abkhazia is developing the strategy of the country’s development for 10 years. The newspaper ‘Republic Abkhazia’ reports that the government and the Center of Strategic Studies (CSS) under the President of the republic have established a research group on development of a draft of the strategy. Well-known Abkhazian scientists who are experienced in the sphere have been included in the group. The draft should be developed in six months. A report on the first stage of development of the draft of the Strategy of Socio-Economic Development of the Republic of Abkhazia till 2025 has been presented to the government, employees of ministries, departments, universities, scientists, and society. It includes a complex analysis of the socio-economic situation in the republic in 2004-2012 and the results of a public opinion poll.

Speaking at a meeting of experts, Oleg Damenia, the director of the CSS, said that employees of the Center visited all the villages and towns of Abkhazia to study the human resources of the republic and find out society’s attitudes. They received information on territories, farming lands, infrastructure, roads, the number of households, the number of employable population and children, the number of beef and small cattle, personal households, and many other things from heads of regions, towns, and villages. Almost all heads of administrations answered the question ‘What economic sphere do you want to develop?’ the same – agriculture. They added that state support is needed. Damenia stresses that development of the draft should involve people who would implement the program of strategic development in the future. They should know about all the studies which will be presented to the heads of administrations.

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The Armenian newspaper ‘New Time’ reports that the republic has taken first place among the former USSR republics in the growth of unemployment. According to polls and statistics, 43% of Armenians think that unemployment is the most topical problem. 71% of all unemployed people are women, 24% are young people. By early March, the number of unemployed people grew by 21.2% in the republic.

The newspaper cites the opinions of common citizens and states that today it is difficult to find a job even for a high-class professional with an A-diploma in Yerevan. The only prospect on the labor market is a yard-keeper with a higher education. It is more difficult to find a job for middle-aged people. A lot depends on contacts and relative ties. Those who have relatives in top positions can build a great career even without a higher education.

Even though incomes are very small, the state imposes huge taxes on employees. An employee of a private company, Armen, says that he earns $220 and pays $80 in taxes. His wife is a school teacher working for a crummy salary. “Officials proudly spoke about increasing the salaries of teachers. At the same time, they added a provision, according to which the base pay is issued for 22 hours per week. Only if you bargain with a principal, can you get the salary,” he boils over.

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The recent devaluation of the manat establishes favorable conditions for development of internal tourism, where many local citizens can be involved, not to mention a growth in the number of tourists from abroad, the Azerbaijani periodical ‘Region Plus’ writes.

The article says that in the last 10 years Azerbaijan has managed to form the basic elements of a tourist industry. 535 modern hotels are operating; corresponding services have been established. It has encouraged a growth in foreign tourist inflow and significant attraction of investments into the recreational sphere. In 2013 about 2.3 million people visited the country.

This year a record-breaking number of companies participated in the AITF-2015 exhibition in Baku. According to the newspaper, 371 companies from 42 countries arrived in Baku this time. They presented about 80 tourist destinations. About 60% of the participants were foreign companies and national stands of certain countries. 17 national groups participated in the forum.

According to managers of local hotels and resorts, as well as representatives of the Tourist Association and the Ministry of Culture and Tourism, the domestic recreational market has passed through the recent difficulties which are connected with the devaluation of the national currency without significant damages. According to the Minister of Tourism, Abulfaz Garayev, the monitoring which has been held recently hasn’t revealed a growth in prices in the hotels of the capital and regions.

“We believe a growth in prices in the summer season shouldn’t be expected, as there are no market grounds for this,” the minister stressed.

 

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