As all
other Soviet countries, Dahgestan experience many social and economical problems today.
These problems are felt effectively in all sectors of the ecomonical life of the country.
It is possible to claim that Chechen problem effected mostly Daghestan in Russian
Federation. Being a neighbor of Chechen and also having many Chechen people within its
borders, this problem causes many difficulties for Dahgestan to find the goods, products,
raw materials and equipment needed. These problems in import also reflects the same effect
to export. On the other hand, it is not a wrong claim that Daghestan is under an
ecomonical blockade because the Daghestan and Azerbaijan border is kept closed for some
political reason. Apart from these problems, ecomonical crisis in Russia effects seriously
the Daghestan ecomony of which 85% is Russian Feredation aids.
Economical collapse in Russian economy for five years
showed the same effect in Daghestan national economy. Continuous decrease in production,
high inflation and unemployment have become the characteristics of their economy.
Decrease in investmens has been continuing and scientific and technical potential has been
regressing rapidly. In the last years, industrial production has falled by 10% in
Daghestan and all small and middle sized enterprises were in deficit. Production decreasd
by 3.3 times in the last five years and physical production volume decreaset to that of
1950s. In production decrease, Dahgestan is the 10th country in Russian Federation in
1994.
The effect of this regression is seen on every industrial
branches. For example, when compared to the figures in 1990, production decreased 4.7
times in machinery, 4.9 time in food industry, 7.5 times in glass industry and 10.5 times
in light industry. The industrial structure changed wholly when compared to that of 1990’s.
The share of fuel and energy in industry increased 6.3 times while the share of light
industry decreased 4.3 time and machinery, food, chemicals and petro-chemicals between 1.3
and 2 times.
Although fuel and energy has and increasing share in the
changing industrial structure, this increase is only recorder in comparison with the other
industrial branches as mentioned above, where it has decreased when compared to previous
years. Likewise, petroleum production in fuel and energy complexes decreased to 20.4% and
gas production to 7.2%. Decrease in electricity production is recorded as 36.7%. This has
brought 37.2% production decrease in hydro-electricity power stations.
While this regression in industriy has been going on,
investment activities also experienced similar regression. Investment volume decreased
26.3% in 1994 and 47.7 in the last three years. In short, Daghestan experiences all
sociological and economical negativities at the same time.
The regression in industry showed its effect also in
agriculture. There has been an importand decrease in agricultural production when comparet
to 1990. In public sector, agricultural production decreased 2.3 times in comparison with
the figures in 1991. Small volume private village production increased 12.7 times at the
same time. Investments in agricultural industry complexes decreased 40% when compared to
that of 1991’s, and investment volume of village economy also decreased two times.
Lack of finance, insufficient equipment support
from federal budged and heaviy economical crisis of the enterprises put the Republic
budged in a difficult position in 1994. The rapid increase in workforce supply has been
going on. On one hand, enterprises are being close due to economical crisis and on the
other hand new graduates from schools are added to workforce market. This is the main
reason for this rapid increase in workforce supply. In addition to this, demobilization
from the army is another source for unemployment.
Important number of the population are seeking for
a second job because the life level is low. There are many taxi drivers whose main
profession is engineering or scholarship at the same time. These people do not complain
about their lives ant the number of these people is increasing everyday. Unemployment
figure official reports is 43.800 in 1994. Apart from this official unemployment figures,
real unemployment has also been increasing rapidly, where it is estimated to be 63.300.
Workforce over supply is seen mainly in agriculture. Researces show that employment
problem has reached to dangerous level in the country. Continuing increase in prices
caused the real purchase ability of salaries. Average salary decreased by 64% in 1994 when
compared to that of 1990’s. From 1992 on, the income distribution in Daghestan has been
spoiled. Mostly employees in credit, finance and insurance enterprises and management
levels profited from the economical reforms.
The export figure of Daghestan is 72.8 million USD
in 1994 where import figure realized as 133.7 million USD. According to these figures,
foreign trade deficit is 61 million USD.
Today, foods take the largest part in import
commodities. Among them are sugar, vegetable oil and animal fats, tea, orange like fruits,
baby foods, macaroni and paste meals, milk, cream and medicals. It shows the deep effect
of economical crisis in Daghestan which is in fact an agricultural country. Using just a
small part of agricultural production capacity in the country caused the import of those
various agricultural products mentioned above. On the other hand, traditional export
commodities of Daghestan like wool, raw ledder, wooden materials and coal, are sold on low
price.
Daghestan faces a great difficulty in
communication. A telephone operation station of 10200 lines was started in June 1995 in
the capital city Mohackale which is far behind of world standards in telecommunication. In
addition of this underdeveloped communication background, there has been observed an
economical disentegration, loss of traditional markets, spoiled financial structure and
undeveloped foreign trade, all of which makes difficult to use the potentials of the
country. Meanwhile, we should express some positive development in the country as well,
like port restoration in Mohackale, the foundation of new banks, investments of foreign
capital from USA, Ýtaly, Austria and Turkey.
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