Last week Russian Premier Vladimir Putin held a council for the social-economic development of the North Caucasian Federal District (NCFD) in Sochi where the authorized presidential envoy to NCFD Alexander Khloponin presented the strategy of developing the region. VK publishes a series of publications on the prospects of the document.
Experts have different views on developing the region. Some believe that it needs financing, others say it had more than enough financing in the 1990s. Former Ingush President Ruslan Aushev said that people need to change their attitude towards the situation. The authorities decided to invest money and improve image of the region.
Minister of Regional Development Victor Basargin said that the level of gross regional productin the region is two times below the average Russian level. The minister blames low productivity and poor infrastructure in the region.
Obviously the taxes in North Caucasus are paid reluctantly and the level of inefficient usage of finances in the region is high that is why extra attention should be paid to efficiency of regional authorities.
180 billion rubles have been issued for the realization of three federal purpose programs in the NCFD (in Chechnya, Ingushetia and ‘South of Russia’). 14% of them are used for infrastructure, 7% for tourism, 12% for industry and agriculture, 39% for social sphere, 24% for housing and utilities service.
In the new program the authorities decided to accent on small processing enterprises, regional brands and trademarks.
At the end of 2009 the Department of Investment Projects of the Ministry of Regional Development was selecting investment projects that could be realized in the North Caucasus. The ministry calculated that 1 ruble from the federal budget guarantees 13 rubles of private investment. 6 projects were chosen and can create 12,000 jobs. Half of the Ingush population is unemployed, 30% are unemployed in Chechnya, 20% in Kabardino-Balkaria. This leads to the Russian speaking working population leaving the region. The Ministry of Regional Development believes that the number of people willing to leave the region can be an indicator of the executive authorities’ efficiency.
Coping with corruption and the legal nihilism of the authorities can be achieved by organizing a system of state and municipal management. And it is a tactical objective. The strategic objective is the formation of a new generation of social staff, including national-cultural staff. Another problem is the belief that law-enforcers will be involved in the economic sphere. Control over attempts of the police and FSB to be involved in economic issues should be strengthened, Basargin said.
As a result, Moscow decided to develop a complex strategy of developing NCFD and develop clear plans of actions for each subject of NCFD, terms, resources basing on the strategy.
To be continued.
16.09.2010/ Author: Pavel Martynov exclusively for VK.
