The economy of Chuvashistan is generally based on
agriculture and stockbreeding. Besides, there are some developed industries such as the
chemical industries, the metallurgical engineering, timber manufacture, wooden embroidery,
foodstuffs and the other light consumer industries. Its principal resources are composed
of its forests that cover 1/3 of its lands, limestone beds, petroleum cyst and hard coal.
There are some factories that manufacture cereals, alcohol production, fruit concentrated
essences, starch manufacture, leather processing, metallurgy industry, clothing and
textile factories, chemical production plants and a big factory that produce industrial
machines in the capital Supashkar. Kanaş, the third biggest city of Chuvashistan is
located on the railways that connect Siberia to Moscow. It has undertaken the maintenance
and repair works of all railway transportation since the year of 1936. Meat culture,
harvest of cereals and the engine repair works are highly developed. Alatır that was
founded before the Revolution is located on the southwest of Chuvashistan. The industries
such as metallurgy industry, the manufacture of cereals, drapery and textile industry are
developed in this region. Sumerle that is an important centre of population is a highly
developed centre of furniture.
As for today, the economic depression experienced in
the Russian Federation has completely affected Chuvashistan. Hardly any factories operate
and the workers and officers could not get their salaries for a long time. The inflation
gradually suffocates the people day by day in the period of transition to the free market
economy. The activities for privatisation cannot be continued. Although the tax exemption
for three years was imposed for the foreign companies that would make investments in
Chuvashistan as per a law issued in 1984, hardly any foreign companies have an investment
here.
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