Coal mining areas in Russia: national, regional or local problem

Abstract

The crisis in coal mining has not been as deep as in many other industries. It was even possible to consider normal reorganisation of the coal industry in the 1990s. In the reorganisation, greater attention was given to social–cultural–political considerations than to purely economic factors. The weight of the coal industry in the economy was not great enough to be considered a national problem of primary importance (as, one can propose, is the Ukrainian case, where the industry accounts for more than 5% of GDP). Moreover, there is no region (from 89) in Russia, where a crisis in the coal industry would predetermine all major economic and social problems (even in the Kemerovo region). In all the above mentioned regions, one can find other industries more important for the general health of the economy and society. At the same time, the industry is characterised by a high level of spatial concentration, i.e. it is highly localised, and as a result local areas of severe depression have emerged, especially in relatively isolated locations and/or near exhausted deposits. Some areas of the industry suffered greatly, while a few others were more or less stable. As a result, further localisation of the industry and migration eastward took place. In areas of crisis, the financial and organisational capacities of local (and even regional) authorities were not nearly sufficient to solve social and economic problems. Political lobbying was also intensive. As a result, coal mining areas became the most important goals of new Russian regional policy (still not institutionally and legally fixed). Huge loans from the World Bank were also used for the development of these areas (and can be regarded as part of state regional policy). In short, the prospective future of the surviving and reorganised coal industry is not bad (as in some other traditional industries in Russia), but sustainable development can be achieved only through further diversification of the economy.