Monday, December 16, 2019

Turbulence in North Caucasus Means Businesses and Organizations There Close More Rapidly than Elsewhere in Russia


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.

No comments:

Post a Comment