Paul Goble
Staunton, May 21 – Despite the Kremlin’s insistence that the development of the north is critical to Russia’s development, that region because of poor schools, hospitals, housing and transportation can’t attract or retain the cadres needed for its development, officials tell the Duma.
The shortage of personnel needed there for government projects will soon exceed 180,000, a figure that will only grow in the coming years unless more teachers and doctors are found, housing is repaired or replaced, and transportation infrastructure is improved (ng.ru/economics/2025-05-21/4_9257_arctic.html).
Some schools in the region ack as many as half of the teachers they need, and the situation regarding medical personnel is almost as dire, experts acknowledge. Poor housing or even its complete lack is more widespread in the north than anywhere else. But the government has been cutting back.
The clearest case of this has been Moscow’s decision to cut subsidies for flights in the north, something that has resulted in soaring prices for tickets and the elimination of many routes. That in turn has had the effect of making life in the north less attractive, leading some to lead and others to refuse to go there, despite high pay.
Another problem, the Duma deputies were told, is that Moscow has not used its tax policy to support development in the north. Not only does the center take most of the profits of development there, but it doesn’t provide deductions for expenses related to development even though such deductions would help power the infrastructure growth it needs.
Unless this changes, even government experts said, the possibilities for the growth of the economy in the north and the northern sea route in which Putin has invested so much hope and hype will remain unfulfilled. Unfortunately, the Kremlin seems to focus only on the profits of companies there and not on communal needs which makes them possible.
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