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Human capital, internal direction

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© RIA Novosti. / Vitaliy Bezrukih

A worker at KrAZ, the Krasnoyarsk aluminum plant

One of the main discussions at this session centered on the concern of contemporary Siberians that their economy not be directed from the outside. For Kuznetsov, the attention to natural resources and the inattention to human capital have contributed to a population drain, and need to be corrected for any redirection to be possible. “A human being is the basis of every [economic] strategy,” Kuznetsov said in his opening remarks. “We face a demographic challenge, and it’s a simple question of how many of us are here.”

Despite the vast size of the territory, Siberia and the Far East are home to just about 30 million people, and over the past decade have seen about 1 million in their potential workforce leave for European Russia. The low population density impedes the development of small businesses. As Roman Boltov, head of the small entrepreneurship division of the Krasnoyarsk regional government, told The Moscow News, “Many think that the effectiveness of [small] business in Siberia is questionable, as the density of the population is so low. So investment is not coming.”

To offset the weak investment in small businesses, the city of Krasnoyarsk is doing its best to build a Moscow-style consumer infrastructure by attracting major brands to the city, as in other millionniki—Russian cities with populations of 1 million and above. Krasnoyarsk made progress by signing two contracts at the forum, with France’s Auchan and Germany’s Metro Cash and Carry supermarkets. Additionally, on Feb. 7, French home appliance and furniture Krasnoyarsk as viewed from a helicopter chain Leroy Merlin opened an outlet at a mall in the city.




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