The Strategic Development Prospects of the North Caucasus Federal Okrug

Abstract

Last year (2019) was the tenth year of the implementation of the Strategy of Socioeconomic Development of the North Caucasus Federal Okrug until 2025, adopted in 2010. The Strategy aims at achieving significant economic growth across the North Caucasus regions, as well as modernizing their social structure and stabilizing their socio-political situation. In order to achieve economic growth in the North Caucasus, the Strategy focuses on the creation of a tourism cluster, accelerated development of the region’s transport system, and the emergence of new centers of economic development. The Strategy’s targets that should serve as the indicators of its successful implementation (under the optimal scenario) are the gross regional product growth of 7.7% per annum in the regions of the North-Caucasian Federal Okrug, and industrial production growth of 10.1% per annum over the period from 2010 through 2025. The Strategy also aims at creating not less than 400,000 new jobs, reducing the official unemployment rate to 5% (from 16.5% in 2010), and decreasing the share of households with incomes below the subsistence level to 9.2% (from the regions average of 15.5% 2010).