Kremlin envoy names main problems facing North Caucasus - Itar-Tass

NALCHIK, February 27 (Itar-Tass) -- Vice Prime Minister and presidential representative to the North Caucasus Federal District Alexander Khloponin has named three key problems in the region and suggested several solutions. These are big subsidies to the region, high unemployment and total corruption. “The main problems are a heavily subsidised economy, a high rate of unemployment and total corruption that has swept the majority of republics in the North Caucasus,” Khloponin said at a meeting on social and economic issues in Nalchik on Saturday. He believes it necessary to optimise the budgets of the republics in the region. He also suggested creating mobile teams of young people for employment at enterprises in central Russia in order to ease tensions on the regional labour market. “We have conducted the first negotiations with big companies that are ready to employ them,” he added. Khloponin believes that the region’s economy should be developed in several directions, or clusters: energy, tourism, industry, and education.

Describing the situation in the energy sector, Khloponin said it had a big potential, on the one hand, but, on the other hand, it faced a number of problems, including non-payments.

“There is a huge amount of non-payments but by the population, but by intermediaries who leech of people,” he said.

“Work this out is a set task for the coming days,” Khloponin added.

He promised to make a report on the tourist cluster in three weeks. “We will make a detailed report in this issue on March 25 and present all enterprises,” he said. “Now I can say that the North Caucasus and Kabardino-Balkaria particularly has an excellent potential for the development of downhill skiing, health rehabilitation and resort business,” he said.

Speaking of the industrial cluster, the envoy said it was a “serious direction” and stressed the need to move away from Soviet integration.

Khloponin dwelled at length on the educational cluster. “There many talented and educated people in the North Caucasus, but it is necessary to change educational standards, increase the mobility of teachers, and create industrial enterprises around universities,” he said.

He also suggested engaging major companies, such as Gazprom, LUKOIL and Rosneft, which could finance the creation of secondary vocational schools in the region.

He also believes it advisable to create special economic zones in the North Caucasus as one of the main mechanisms of government guarantees for business.

Source: Itar-Tass