Russian crisis good for discussion

The Russian party of power is obviously working hard to prevent the financial and economic crisis from developing into a political one. However, the Arkhangelsk discussion also revealed a number of painful facts about a highly troublesome and quickly deteriorating social and economic situation.

Last Friday’s roundtable discussion on counter-crisis strategies for Arkhangelsk was organized by members of the United Russia Party’s discussion club “November 4”.

The Arkhangelsk situation

According to one of the members of the Moscow delegation Mr. Vyacheslav Glazychev, a member of the Public Council, the economic crisis has not yet reached Arkhangelsk Oblast, at least not if comparing with the neighboring regions of Vologda Oblast or the Republic of Karelia where the situation is much more difficult. The economy of Arkhangelsk Oblast is more sustainable and diversified, he maintained.

Social consequences

However, this opinion was not so much supported by the other discussion participants, most of them representatives of regional authorities, business and non-governmental organizations. Mr. Alexander Poludnitzin, acting head of the regional department of economic development informed that now the timber-industrial complex which produce the lion’s share of GRP is using only 65 percent of capacity, the transport sector – 50 percent, the agro-industrial complex – 70 percent, the mining industry – 43 percent and construction – 55 percent. Mr. Poludnitzin maintained that only the military-industrial complex is so far working at full capacity. The decline in regional production of pulp and paper now amounts to 16 percent, timber manufacturing – 15 percent, construction – 10 percent.

The social situation in the region is also not optimistic. Mrs. Elena Kudryashova, Vice-Governor, confirmed that since last fall unemployment is up by almost 30 percent and now totals 16,000 people. The regional administration expects that another 3000 will be fired in the nearest future. In addition, about 7000 people are now transferred into part-time employment or sent at unpaid vacation. The regional administration has established an anti-crisis committee which makes weekly monitoring of the social-economic situation and coordinates measures.

Regional measures

In order to avoid negative social consequences, the regional administration has also initiated special agreements with the trade unions, banks, as well as business companies. The new programs of forest roads construction and wooden house-building are to minimize the growth of unemployment and economic slump.

Representatives of the regional timber industry taking part in the discussion anxiously noted that the crisis is of unprecedented scale and that nobody really can foretell its length and consequences.

Good for federal-regional relations

The Moscow politicians are now to continue their anti-crisis dialogues in other regions. They underlined that the federal authorities are now extremely interested in getting honest and firsthand information, as well as competent and realistic proposals on how to overcome the crisis locally. That might indicate that the crisis has at least brought one positive moment: the powerful and self-dependent central authorities seem to start to listen more attentively to the opinions in the regions.

BarentsObserver Arkhangelsk