12 November 2009, 13:45 Moscow, Grand Kremlin Palace
photo:www.kremlin.ru

Now for the most serious, in my opinion, domestic political problem of our country - the situation in the North Caucasus. 

Terrorist crimes against government officials, clergy and the law enforcement structures destabilize the environment and hinder the normal economic and social development in this region. 

We will maintain an uncompromising fight against international terrorism, we will destroy the bandits. And the soldiers and prosecutors, performing tasks in the North Caucasus region, will receive special attention from the state.  I have signed a decree establishing for them additional benefits and measures of social support and we will continue to address this. 

I have already said that the situation in the North Caucasus would not be so acute if the socio-economic development here were actually productive. It is obvious that the source of many problems stems from the economic backwardness and the lack of normal human life prospects for the majority living in the region. Frankly, the level of corruption, violence, and cronyism in the North Caucasian republics, is unprecedented. Therefore, we will give priority  to the solution of socio-economic problems of the citizens.

This year, under two federal programs for the development of southern Russia and the Chechen Republic over 26 billion rubles have been allocated. Before the end of the year, the administration should adopt another federal program to support the development of the Republic of Ingushetia for the period from 2010 to 2016 with funding of at least 32 billion rubles. 

As you can see, the volume of financial resources available for the entire North Caucasus is quite significant. However, the effectiveness of their spending leaves much to be desired. Moreover part of the resources are almost openly stolen by officials. And this at a time when unemployment and, as a consequence, mass poverty in the Caucasus has reached emergency proportions. 

This problem is particularly serious in Ingushetia, where more than half of the population is unemployed and in the Chechen Republic, where the figure is more than 30 percent. 

I will also point out that in this region there is the highest proportion of young people, i.e. people aged 15 to 20 years. And for these young people it is understandably more difficult to find work. In the Chechen Republic, the share of unemployed young people is more than 40 percent. 

The number of refugees and displaced persons in some areas of the North Caucasus has reached 20 percent of the local population. And the lack of a permanent job - is just one of the many problems faced by these people. 

The conclusion is clear: to successfully address the problems of the region additional measures are required. It is necessary to develop entrepreneurship, to increase investment. Presently, favorable conditions for it in most of the North Caucasian republics are not being created, and the situation must change. In this regard, I instruct the Government within six months to create a list of investment projects which will receive targeted support. 

Such projects can be implemented in the energy and construction sectors, the tourism and health resort industries, agriculture and small businesses. The possibility of financing such projects through raising taxes and other financial mechanisms need to be considered. This will be an incentive for entrepreneurs to start business here. I also urge anyone who was born and raised in the region, but is now because of some reason working in other regions of our country, to help the development of their native land. 

Another problem - is an organization of temporary labor migration. Experts also note that one of the limiting factors of economic development of the North Caucasus is the low quality of education, especially university level. In this regard, we must take steps to train and retrain teachers - in universities and schools. I instruct them to organize internships in major universities in Russia and abroad, employing for this purpose the presidential program of management training. 

Finally, I consider it necessary to develop and implement clear criteria for the individual performance of the federal bodies of executive power on the North Caucasus. I hereby assign the Government in the period prior to January 1, 2010 to adopt a system of these criteria. And a person should be appointed to be personally responsible for the situation in the region. Of course, he or she must have sufficient authority to effectively coordinate work in this area. Such a person will appear. 

North Caucasus – is a region which historically has been inhabited by people of many nationalities. And today, it is especially important to perform systematic work in the family and schools, on local and regional levels to create positive ethnic relations and a mature civil society. This is especially important for the education of the younger generation. I think that the young people of different nationalities and faiths should have the opportunity for collaborative learning, and joint leisure. Therefore, I support the idea of creating a regional youth camp, where kids from different republics will be able to learn, communicate and relax. 

In concluding this subject, I would say: we will do everything possible to make people's lives in the North Caucasus more favorable. And those who hinder us, we shall handle.

Translated by The American Committee for Peace in the Caucasus from original text
(click here for original text in Russian)