Living standards in North Ossetia-Alania through the prism of economic processes

Abstract

The paper reflects the dynamics of changes in standard of living in the Republic of North Ossetia-Alania during the post-Soviet period. Background. The more than twenty years that have passed since perestroika failed to lead to the expected positive shifts in economy in RNO-Alania. In ratings of regions by population living standards, the republic was consistently among the last places. Aim. To show the discrepancy between the modern level of economic development and the standard of life in the RNO-Alania. Method. The work uses comparative analysis of indicators of living standard and indicators reflecting the structural and dynamic characteristics of economic processes. Results. Official statistics show growth in almost all socio-economic indicators in RNO-Alania. This apparent increase in living standards does not correspond to the low ranking of RNO-Alania, which is consistently in the bottom ten of the rating of Russian regions. The analysis of other indicators determining the population’s quality of life, such as: the ecological condition of the territory, the developmental level of health and education institutions, life expectancy, and availability of transport, information and communication networks all correlated weakly with the real socio-economic situation in the region. The study of the republic’s districts showed a high unemployment rate due to the lack of industrial and agricultural production, the underdevelopment of small and medium-sized businesses, and low wages. There is an outflow of working-age population to the city of Vladikavkaz and from the districts to outside the republic. Conclusions. The deficit in the republic’s budget persisted during the research period, despite the apparent growth in the gross product and revenue part of the budget, but the volume of expenditures is growing at a faster rate. The main reason for this is the sharp decline in industrial production, and the influence of loss-making enterprises that do not generate income in the budget. Living standards are rising only thanks to grants from the federal centre. Recommendation. In order to remove the republic from its depressed state it is necessary to increase the fixed capital, to control the process of effective use of the available production capacities, and to invest in a recreational industry that uses natural resources and does not require significant investment.