Russia’s economic policy in Northern Caucasus

On January 21, the Russian PM Putin held a session for the commission on the issue of developing the social economic situation in the North Caucasus. According to the commission’s decision, Moscow is going to invest into the northern Caucasus' tourism infrastructure and resorts. Altogether, during 2011 in the Caucasus there will be37 big projects implemented involving around 400 bln rubles. According to Russian officials, investments should improve the overall social-economic situation in the country but there is another more dramatic possibility of a ‘solution’ to the situation in the north Caucasus. This is the plan of the central Russian government to remove its unemployed population of the northern Caucasus into Siberia and Ural regions. As Georgian analyst Mamuka Areshidze suggests, the Russian government plans to relocate around half a million people from the North Caucasus into different parts of Russia. This is a risky decision which eventually might backfire on Russia’s government.