Paul
Goble
Staunton, December 14 –Businesses
and organizations set up in the North Caucasus close much sooner than do those
in other parts of the country, according to research conducted by SKB Kontur at
the request of the Caucasus Post portal, yet another aspect of the turbulence there
that hits all parts of life.
Between
2006 and 2018, 642,000 organizations were established and registered with the authorities;
but over the same twelve year, 557,000 of them closed down, some because they
could not make a go of it and others because they ran afoul of the powers that
be (capost.media/news/economy/severnyy-kavkaz-lidiruet-v-rossii-po-protsentu-zakryvayushchikhsya-organizatsiy/).
The
balance of openings and closings has shifted overtime. Between 2008 and 2010, there
were more openings than closings, then between 2010 and 2013, the number of
openings rose dramatically while the number of closings fell. But between 2014
and 2018, the relationship was reversed.
Overall,
the portal says, “North Caucasus companies live only a very short time” both
absolutely and relative to other regions of the Russian Federation. Their
lifespan is greatest in Stavropol Kray where on average, they last 5.4 years.”
In Chechnya and Ingushetia, their life spans are much shorter, only 2.8 years.
Now,
for the North Caucasus as a whole, there are 87 closures for every 100
openings, but the relationship between the two varies widely. It is worst in
Chechnya and North Ossetia were the figure is 100 to 92, but somewhat better in
Kabardino-Balkaria where the relationship is 100 to 82.
Strikingly,
NGOs and government firms last longer than private businesses, with the former keeping
open on average 10.4 years and the latter 8.6 years. Among firms offering
tourist services, life expectancy is only 3.5 years, “one of the most rapidly
closing” sectors of all in the region.
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