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The session on “Barriers and Opportunities for Regional Development in the Situation of Global Financial Crisis” was held in Astrakhan on January 17, 2009. CSR “North-West” experts presented several reports on the situation, its consequences for the future and provided recommendations for regional authorities. Vice-governor and chairman of the Astrakhan Oblast government Konstantin Markelov led the discussion about revisions to the Strategy for socio-economic development of Astrakhan Oblast in the context of changing economic conditions. The session was moderated by CSR “North-West” director Vladimir Knyaginin.
In his opening speech Vladimir Knyaginin noted that the transition from resource-oriented economy to development of a number of sectors in the last few years had resulted in the relative economic stability of the Oblast. “Crisis hits each sector in a different way, so the fastest-growing sectors could act as “locomotives” for economy and social sphere”, believes the CSR “North-West” director.
Leader of the CSR “North-West” task force on revision of the region’s long-term development strategy Marina Lipetskaya presented results of the analysis of the current economic situation in the region. In less then six months most sectors experienced liquidity crisis, for Astrakhan Oblast it is over 50% of employment market and gross regional domestic product”, noted the expert. “Prompt restoration of liquidity is a task of critical importance for the oblast”.
According to the CSR experts state support could provide a possible way out of the present economic crisis. Legislatively-adopted distribution of state funds in the region can not be changed overnight, its is an inertia process, so there is only one solution – switching to “manual operation” of economy. For example, drawing up the list of enterprises to be bailed out on priority basis, like it has been done on the federal level, said Vladimir Knyaginin. Governmental support should be instrumental for drawing sectors out of liquidity crisis, while problems of economic efficiency are to be solved primarily by the enterprises themselves.
CSR “North-West experts have also analyzed criteria for selection of economic sectors which would receive Astrakhan Oblast Administration’s support on priority basis, as well as efficiency of possible steps to be taken by regional authorities.
Chief CSR expert Dmitry Sanatov spoke on the issue of possible changes in the structure of the Oblast budget revenues and redistribution of budget funds. “Slowdown in economic growth rates in the oblast will lead to reduction in budget revenues. Deceleration of the budget process will become apparent in the 2nd-3rd quarters of 2009”, noted the expert. Oblast authorities confront a difficult problem of selecting an approach to cut budget expenditures : opportunities for cutting financing to public sector are limited by legislatively adopted local authority obligations to people, while cutting of “investment” budget items reduces opportunities for further development of the region’s economy. Dmitry Sanatov believes the budget has to provide support to economy, giving preference to high-efficiency projects.
The CSR “North-West is a long-standing partner of Astrakhan Oblast. In 2005 CSR experts took part in elaboration of the Strategy for socio-economic development of the region adopted by the RF government on May 18, 2006. The seminar in Astrakhan is part of the series of events conducted by CSR “North-West” experts within the framework of the Project for revision of the Strategy for the long-term development of the region, launched in October 2008.
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