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22:45 | Feb 08 | 2012

Life has Become Better

President of the Republic Summed up the Results of the Last Year.

In late 2011, Yegor Borisov, the President of the Republic, held several meetings with the Government and the Legislative Assembly of Il Tumen, where he summarized the overall results of the year. The main ones are presented in this text.
A Good Year for Sakha
This is suggested primarily by economic indicators. For example, the gross regional product increased in comparison with the previous year by 6% and reached 411 billion roubles. The industrial production index increased by 9.5%. The nominal gross average monthly wage per employee was 33.7 thousand (17.5% higher than last year), real wages grew by 9.6%. Significant progress was made on investments, the capital investments in the economy amounted to 148 billion rubles (plus 18.7% compared to the last year’s level). As noted by Yegor Afanasyevich the enterprises of the Republic had done a good job. The balance sheet profit of enterprises in all industries was 85.5 billion rubles, or 2.3 times more than in 2010.
In addition, the Republic has opened up new production. Development and shipment of coal from the Elga coal deposit was started. The coal mining section “Denisovsky – Vostochny” with a capacity of 500 tons of coal per year was put into operation. Builders started the construction of the mine “Inaglinskaya”. In Kobyaysky ulus coal mining was begun on the Severny site of the Belogorsky field. The construction of underground mines for the extraction of diamonds was continued. Undoubtedly, the main event of the year was the laying of the “gold” link of the railway line under construction “Berkakit - Tommot – Yakutsk” at the Nizhny Bestyakh station, on the right bank of the Lena river.
Thanks to advances in the economy, much has been done in the field of social policy as well. From 1 October of the year the salary fund for officials of the Republic’s institutions was increased by 6.5 percent. Separate decisions to increase salaries of teachers, specialist of libraries and museums, as well as teaching employees of kindergartens were adopted. Regional maternity capital of 100 thousand rubles for the birth of the third and each subsequent child was established.
The pace of housing construction exceeded targets. 148 kilometers of gas pipelines were constructed, over 4500 apartments and private homes got gas supply, 12 boiler houses were converted to natural gas. The village of Al-Ulakhan in Khangalassky ulus has been supplied with gas. The Health Care Modernization Program was launched for the implementation of which significant financial resources were allocated.
During the year, stable and constructive relationships with the federal government were being developed.
The Course for Modernization
The Integrated Plan for Socio-Economic Development of the Sakha Republic (Yakutia) till 2016 was adopted and initiated.
Yakutia maintained its leading position among the regions of the Far Eastern Federal District on the main macroeconomic indicators. Basic industries came to the pre-crisis levels.
International rating agencies raised their forecast for the Republic's credit rating from “Stable” to “Positive”. The upgrade reflects the stable growth of the economy of the region, the positive indicators of budget and relatively low debt levels.
The Republic's economy as the country's economy at large entered a period of transition to a new innovation-oriented development model, when, combined with the new industrialization policy, introduction of high technologies, upgrading of human capital and constructive partnership between government, business and society is crucial.
The implementation of major industrial and infrastructure projects remains the cornerstone of economic policy. Actually this is the base for modernization, which includes not only economic but also technological, and managerial and social aspects.
If the economic aspect of modernization is associated primarily with ensuring the conditions for efficient use of resources, promotion to the foreign and domestic markets, the technology one is concerned with the creation of high-tech industries and appropriate environment for the demand of innovative products; the management one is about the formation of a new strategic management system at a state and corporate levels; the social one is concerned with the support of innovative elite, a social coalition that understands the essence of change and is able to lead the whole society.

The Investment Program
The Program on the Formation of Favourable Investment Climate in the Sakha Republic (Yakutia) is approved. The program provides for the establishment of such development institutions as investment promotion agencies of the Sakha Republic (Yakutia), a private equity fund of the Sakha Republic (Yakutia), a Regional Centre for Public-Private Partnerships, a Venture Fund of the Sakha Republic (Yakutia) to support innovative projects.
In 2012, the Road Fund of the Republic will start operation – a predictable and guaranteed source of funding, allowing a more systematic planning and implementation of road construction, maintenance and repair projects.
In contrast to what was a few years ago, today Yakutia is able to attract investment to absolutely all spheres as the structure of the Republic's economy changed dramatically, and it is no longer single industry specific. It is therefore necessary to create and promote new mechanisms to attract and support investment.
Without doubt, the realization of the huge investment potential of the Republic depends on the creation of advanced energy and transportation infrastructure, minimization of administrative barriers on land property, town planning, tariff policy, favourable conditions for business in general, ensuring the freedom of economic activity.
In 2011, the Republic was presented in the Republic of Korea and the UK. Business circles of these and other countries show a strong interest in our investment projects. But when developing foreign economic relations with foreign partners, we must move away from cooperation only in the supply of raw materials and find new points of contact to create high-tech industries.

On Entrepreneurship
Currently, the federal law allows entrepreneurs to buy out state property which they lease at favourable terms. However, according to the established in the Republic practice a few months pass before a conscientious tenant becomes a full owner of land, overcoming numerous administrative barriers. The solution of such problems should be referred to the level of responsibility of executive power, as successfully practiced in most regions of the Russian Federation.
The development of handicrafts is a multi-faceted problem, where business, culture (as the preservation of folk traditions is being concerned) and the agricultural sector (as the majority of products are made from agricultural raw materials) intersect. That is why this area of focus needs some distinct support mechanisms.
The question of the tariff policy of natural monopolies cannot be avoided. The lack of competitive environment on the market of energy leads to problems of access of small and medium enterprises to technological networks, complexity and lack of procedures for connection and lack of differential pricing in the sector.