Lecture 7 Altai Region During Reforms

1. The Altai Region is located in the south of West Siberia; it includes two subjects of the Russian Federation - the Altai Territory and the Republic of Altai. In the west, the Altai Territory borders on Kazakhstan, in the north and northeast on Novosibirsk and Kemerovo regions' and in the south on the Republic of Altai. The administrative centre of the Altai Territoiy is Barnaul (as of January 1, 2003 the population was 666,000 people). Biysk, with a population of 232,000 and Rubtsovsk, with a population of 162,000, are the major towns of the territory. The territory is made up of 60 administrative districts including the Nemetsky (Ger­man) national district. The total population is 2.6 million people, 57% of which

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live in urban and 47% in rural areas. The average population density is 15 people per square kilometer.

2. The Republic of Altai is mountainous and relatively small in terms of its area (92,900 km²,0.5% of the total area of the Russian Federation) and population (203,000 people). It shares borders with China, Mongolia and Kazakhstan. The capital is Gorno-Altaisk which is the only urban area in the Republic. 51,000 peo­ple live there and the number is growing slowly. 73% of the population still live in rural areas. The average populat ion density is 2.1 people per km².

3. The Altai Territory was formed in 1937 as a result of the division of the West-Siberian Territory into the Altai Territory and the Novosibirsk Region. At that time, the Oirot Region (now the Republic of Altai) formed a part of the Terri- toiy. Agriculture was the basis of the economy. In the 1930s, a rapid growth of col­lective farms began and by 1940 they possessed 87% of agricultural lands and only 2% were left for private farms. This process is likely to have played a negative role in the formation of highly productive agriculture, which had developed extensively since its collectivization. The period of World War II was characterized by a rapid growth of the industrial potential based on evacuation of enterprises from the Western part of the country (more than 100 enterprises on the whole, 24 of which were of major national significance).

4. In the post-war period, the Territory became an agricultural-industrial re­gion, 80% of the tractor ploughs, 34% of goods wagons and 30% of steam boilers in the Russian Federation were produced there. The Territory became one of the major suppliers of wheat. The increase of cereal production was mainly due to the ploughing up of virgin lands. In the years 1954 to 1955,2,657,000 hectares of land were brought into agricultural use. Collective and socialist farms became the main land users, about 100% of farming lands were assigned to them. General ploughing up of the land caused wind erosion with regular dust storms and the decrease of soil fertility as a result.

5. In terms of the geographical division of labour, the Altai Region is a tradi­tional agricultural-industrial region in the south of West Siberia. The leading posi­tion in its industry structure belongs to machine building and metalworking, food industry, electro-energetics and ferrous metal industry. Large-scale enterprises of machine building, chemistry and defense industry, which produce tractors, diesel engines, boilers, goods wagons, artificial fibers, tires, coke, etc constitute the core of the Altai Territory industry.

6. The Altai Territory and the Republic of Altai are the main agricultural ar­eas in Russia, the Altai Territory being the centre of plant growing and the Repub­lic of Altai of cattle breeding. About 30% of grain production in West Siberia is located on the area of the Territory.

7. In contrast to other Siberian regions which are also not well-endowed with natural resources, the structure of the national economy of the Altai Territory is characterized by the predominance of the agricultural sector. Together with the remote location of the region this entails a poor adaptability to market conditions.

8. As early as in the 1980s profound inequalities showed in the economy of the territory. The availability of infrastructure and social services was highly dif­ferential between big and small towns and urban and rural settlements. Similarly, great disproportions within one and the same industry could be observed (for ex­ample, between production and processing of agricultural produce).

9. Thus the starting position of the Altai Territory at the moment of transi­tion to the market economy was estimated as rather unfavourable, which couldn’t but effect its further development pace which caused the aggregate economy of the region to decline.

10. The efforts in soil fertility preservation and land reclamation have been practically stopped. The quantity of production in cattle breeding is decreasing, the cattle and poultry population is reducing, their productivity is decreasing, the ac­cumulated production potential is going to ruin. Capital outflows are considerably higher than capital inflows.

11. In cattle population, the territory has fallen back 36 years, in pig popula­tion 22 years, in poultry 26 years, in sheep and goat population 40 years. The total volume of meat output has reduced to the level of the 1960s, of milk and eggs to" the level of the 1970s.

12. The decrease of agricultural output has worsened food processing indus­try work. In recent years, the basic foodstuffs production has dropped 30 to 50%.

13. The recession of agricultural production, low labour productivity in agri­culture together with its great proportion in the economy of the region have caused the fall of the territory economy on the whole and considerable under exploitation of manpower which manifests itself in open and latent unemployment.

14. The Region belongs to the category of economically laggard regions. Depressed industries are machine building, light industries and defense; their share in the territory economy is more than 50%. Because of price liberation, West Sibe­rian regions have sharply split up into two large groups: a raw materials (resource extractive) group and a processing group.

15. As a result of unfavourable industrial production dynamics, the signifi­cance of the Altai Territory in the economy of the country has been decreasing continuously. Thus while the volume of output in Russia on the whole has dropped by 49% over the last ten years, in the Altai Territory' it has dropped by 66%, in Novosibirsk region by 54%, in Kemerovo region by 40%, in Tomsk region by 33% and in Tyumen region by 34%.

16. The Altai Territory is characterized by significant migration processes. This is due to internal migration but above all to external migration connected with the considerable population influx from the regions of Middle Asia and Kazakh­stan and the outflow of German population to Germany.

17. Mass emigration ol Altai Germans and their family members of other na­tionalities to Germany is a m-w clement of modem migration situation in Altai. The German constitute <>X% .>1 the emigrated population and only 28% are made up by Russians. The mam юг,on of the flight to Germany is social-economic prob-

lems in Russia and different levels of economic and social development in Russia and Germany. The greatest outflow of German population is concentrated in the areas of their compact residence: the Nemetsky (German) autonomous district, Tabunsky, Slavgorodsky districts, the towns of Barnaul, Slavgorod, Rubtsovsk. Simultaneously, the Germans from other regions of Russia and from the countries of the former Soviet Union arrive in the Altai Region (1,500 - 5,000 people annu­ally). The immigration from new independent states to the permanent residence in Altai almost makes up the deficiency in demographic potential as it compensates the natural losses of the local population and is a supplementary labour potential. Within the last years, such migration has been the main source of demographic po­tential preservation in the territory.

18. The Republic of Altai is similar to the Altai Territory in many aspects of its economic development. However, it differs greatly in its natural conditions and specific character of its economic development.

19. The Republic of Altai has preserved its unique landscapes, which allows it to become a cultural health centre, a centre of mountaineering, mountain and wa­ter tourism, commercial game-shooting and mass recreation. Just at the moment, every summer thousands of tourists from the Altai Territory, Novosibirk, Tomsk and Kemerovo regions spend their holidays in the Altai Mountains. At present, an active commercial development of the area is taking place. The republic has come across the threat of the loss of some kinds of natural resources, a part of flora and fauna diversity. The planned construction of a gas pipeline and a highway through the World Nature Heritage of the Republic should be mentioned in particular. Ef­fects of this construction could lead to the loss of natural and cultural uniqueness of the Ukok plateau, situated in the extreme south of the'Republic on the border with China, Mongolia and Kazakhstan.

20. In comparison to other subjects of the Russian Federation, the Republic of Altai has a number of characteristic features which distinguish it to its advantage from other regions.

1. . It is situated comparatively close to the densely populated regions, which considerably lowers transportation expenses.

2. . Poor development of the territory attracts domestic tourism, not used to the “western” comfort of traveling.

3. . Rich and diverse flora and fauna opens new possibilities to combine ac­tive recreation with photo and video game-hunting or collecting therapeutic herbs and edible plants.

21. Along with all these, the Republic of Altai is one of the most economi­cally backward regions in Russia. The economy historically depends on subsidies from Moscow. Earlier they made up 70% and now more than 90% of the Repub­lic’s budget. Due to their climate conditions two remote alpine districts of the Re­public - Kosh-Agach and Ulagan - were conferred the same status as the regions of the Extreme North.

22. The Republic of Altai has greatly suffered from economic reorganization in Russia. The basis for the light industry has been ruined; the agriculture has fallen into decay. The price increase for fuel and foodstuffs has resulted in a com­plete dependence on federal subsidies - the level of which has been increasing slowly and their payment has been often delayed. The remoteness of the Altai and poor knowledge in the sphcu- of small basic capital management hampers the de­velopment of business.

23. In our opinion, tin future of the Republic of Altai should be connected with pure water and air, unique sceneries, cultural values and traditional branches of nature management (rei nation, livestock farming, wild animals breeding and handicraft industries).

m of snow-line depres­sion). The largest glaciers reached the bottom of mountains.

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