Features of regional economic policy in Kabardino-Balkariya

The republican concept of development is based on strengthening of the role of state regulation in the economy and priority development of actual sector as the main component of taxation basis.

Pursuant to the Law of Kabardino-Balkarian Republic on state forecasting and programmes of social and economic development of Kabardino-Balkarian Republic the republican Programme of social and economic development for 1997 - 2001 was developed. It defines the medium-term priorities of economic policy in the region: activation of industry and investment; creating conditions for food self-maintenance, increase of potential of agriculture and food-processing industry in interregional exchange; support of small business; development of foreign trade activities; streamlining of republican tax system as relevant factor of financial stabilisation and economic growth.

The long-term prospective directions of regional economic policy include the following targets, the solution of which is based on powerful industrial, personnel and raw material potential.

 Development of a recreation-tourist complex that should become an important income item of the republican budget after 2000 and one of the leading centres in the Russian Federation of extreme tourism (mountaineering, mountain ski). Renovation and development of the existing network of health resorts and tourist centres are planned.

Strengthening of fuel and energy complex by construction of water power facilities by non-conventional methods:

Creation of chains of small hydroelectric power stations on mountain rivers of Cherek and Malka, hydroelectric power stations with minimum impact on environment; mining of own oil reserves with industrial importance (about 30 million tons) and gas, construction of new gas pipelines to the remote settlements.

Development of ore mining industry (industrial mining of non-ferrous metals and reserves of gold).

Usage of unique mineral sources, export production of mineral water Narzan. Increase of annual bulk volume of production of mineral waters up to 1 billion bottles, including export ? up to 300 million bottles.

Modernisation of high-technology branches typical of the region: electrical engineering, instrument engineering, production of medical equipment; conversion of military production companies.

The tool for implementation of the republican economic Programme could be creation in the territory of Kabardino-Balkarian Republic of a free economic zone with special privileged conditions for the investors of priority projects, including under the guarantees of the federal government. The task is to achieve in the nearest 3 ? 5 years of budget self-sufficiency of Kabardino-Balkarian Republic and to refuse funds from the federal budget.