«blago - bettering livelihood of vulnerable and low income ... · giancarlo canzanelli january...

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Giancarlo Canzanelli

January 2016

Strategic Guidelines for Valorising

Economic Potential of the Siberian

Areas of the Blago project

«BLAGO - Bettering Livelihood of vulnerable and low income communities in Siberia,

through enhancement of capabilities and role of grassroots CSOs and groups»

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Index 1. Background and objectives pag. 3

2. Methodology and warning pag. 3

First part (Altai region, Alejskij Rajon, Rebrihinski District, Bijskij District, Pervomaycky District, Maiminski District, and Togulsky District)

3. Inputs for strategic guidelines: strategic priorities and obstacles pag. 4

4. Strategic guidelines: preliminary suggestions pag. 16

4.1 Strategic guidelines at regional level (Altai) pag. 16

4.2 Strategic guidelines for Aleijski Rajon pag. 18

4.3 Strategic guidelines for Rebrihinski District pag. 21

4.4 Strategic guidelines for Bijskij District pag. 23

4.5 Strategic guidelines for Pervomaycky District pag. 26

4.6 Strategic guidelines for the Maiminski district pag. 28

4.7 Strategic guidelines for the Togulsky district pag. 30

5. Conclusion and recommendation pag. 33

5.1 Summary of strategic areas and strategic guidelines pag. 33

5.2 Project ideas for economic development pag. 36

5.3 Follow up and warning pag. 39

Index of the tables first part pag. 40

Second part (Angarsk, Kuitun, and Buryatia)

6. Inputs for strategic guidelines: strategic priorities and obstacles pag. 40

7. Strategic guidelines: preliminary suggestions pag. 47

7.1 Strategic guidelines for Angarsk pag. 47

7.2 Strategic guidelines for Kuitun pag. 50

7.3 Strategic guidelines for Buryatia pag. 54

8. Conclusion and recommendation pag. 57

8.1 Summary of strategic areas and strategic guidelines pag. 57

8.2 Project ideas for economic development pag. 59

8.3 Follow up and warning pag. 62

Index of the tables second part pag. 63

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1. Background and objective

The “BLAGO Project (Bettering Livelihood of vulnerable and low income communities in Siberia, through enhancement of capabilities and role of grassroots CSOs and groups) operates in four territorial areas:

1) Irkutsk oblast, including 25 villages from 6 provinces;

2) Buryatia Republic, including 3 small rural towns and surrounding areas in Kurumkansk province;

3) Altai Republic, including 2 small rural towns and surrounding areas (Majminsk, Ust-Koksinsk;

4) Altai krai, including 9 small rural towns from 6 provinces.

In this framework a mission was carried out in November 2015 with the aim of exposing the local actors to the ILS LEDA RESCO methodology for assessing the territorial economic competitive and sustainable potential and elaborating strategic guidelines for their full valorisation and development.

As result of the mission exercises for applying the RESCO methodology were carried on, and recommendations were provided for carrying out field assessments.

The objective of the present paper is to facilitate the field assessment, providing orientation and indication about possible territorial economic development strategies, according to the available documentation, as it is specified in the next chapter.

2. Methodology and warnings

The inputs for the exercise were provided by:

i) The territorial profiles elaborated by the BLAGO project

ii) The results of the training activity carried on during the November 2015 mission1

iii) The social projects ideas elaborated by the local actors in the framework of the BLAGO project

iv) Desk analysis

These inputs were systematised in strategic critical areas, as it follows:

a) Governance

b) Valorisation of agriculture resource and value chains

c) Valorisation of tourism resource and value chain

d) Green economy

e) Entrepreneurship

f) Innovation

g) Non financial services

h) Financial services

i) Labour market

j) Capacity building

The assessment is articulated in two parts.

1 See http://www.ilsleda.org/usr_files/activities_national/report_canzanel_613355.pdf

http://www.ilsleda.org/usr_files/activities_national/report_canzanel_613355.pdf

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The first part regards the following areas:

i) Alejskij Rajon

ii) Rebrihinski District

iii) Bijskij District

iv) Pervomaycky District

v) Maiminski District

vi) Togulsky District

The second part regards the following areas:

i) Angarsk ii) Kuitun iii) Buryatia

The ILS LEDA experience was finally used for defining the strategic guidelines for each identified problem and obstacle to development.

The exercise has to be considered a work in progress.

It may represent a very useful indication for the assessment on the territorial sustainable resources that will be carried out by the local actors, in accordance to the recommendations provided by the abovementioned mission report.

It shall be updated according to the results of this assessment.

1st part

Strategic guidelines for valorising economic potential for Altai Region, Alejskij Rajon, the Rebrihinski District, the Bijskij District, the

Pervomaycky District, the Maiminski District, and the Togulsky District

3. Inputs for strategic guidelines: strategic priorities and obstacles

The following tables 1, 2, 3, 4, 5, and 6 resume the strategic developmental priorities of each territory and the correspondent obstacles to development: Alejskij Rajon, Rebrihinski District, Bijskij District, Pervomaycky District, Maiminski District, Togulsky District.

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Table 1: Strategic critical areas, priorities, and main obstacles for the Alejskij rajon

Strategies Obstacles

Strategic Areas Strategic Priorities

Governance Inter-sectoral, and

public-private cooperation

Lack of public-private mechanisms

Administrative bureaucracy

Weakness in the implementation of the plans Lack of project elaboration and implementation capacities

Valorisation of rural economy

Livestock

Scarce business relationships; lack of industrial equipped areas

Scarce effort in defining the resources competitive advantage

Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh and non-fresh meet, stuffed meat, leather products, alternative forages, biogas

Deficit in transportation

Grain floor

Scarce effort in creating a comprehensive value chain, and diversified an specialised products

Legumes Scarce effort in creating a comprehensive value chain, and diversified products

Deficit in greenhouses

Dairy

Scarce effort in creating a comprehensive value chain, and diversifying products towards all dairies, health and cosmetics

Minerals

Unique deposits of jasper, malachite,

porphyries, marble, granites, industrial

minerals, mud

Scarce effort in creating a comprehensive value chain towards jewellery, artisanal trinkets, therapeutic and cosmetic products

Forests Richness in forest

resources

Scarce effort in creating a comprehensive value chain, diversifying products: wood, wood processing, chipboards, furniture, home accessories, wood arts and crafts, forest herbs and fruits, etc.

Valorisation tourism economy

Therapeutic and health tourism Scarce business

relationships Insufficient infrastructure

Deficit in big events Deficit in valorisation and promotion

Natural and archaeological Tourism

Green economy Waste management

and businesses; "Clean Territory" objective

Scarce attention to environment issues

Scarce support to the creation of business in the field of renewable energy form waste

Scarce information on the status and protection of the environment

Lack of sensitisation and formation of the ecological culture of the population

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Entrepreneurship Entrepreneurial spirit Lack of a virtual incubator for new businesses

Scarce support (counselling, planning, marketing, training) to new entrepreneurs, mainly young people and women

Innovation Innovation culture Lack of opportunities for stimulus to innovate Lack of relationships among innovators, and participation to international innovation environments

Lack of incentives

Marketing Territorial Brand Lack of territorial Brand Committee

Scarce instruments for attracting external investors

Lack of incentives to participate to the brand strategy and tools

Deficit in marketing professional skills

Labour market Demand-Supply

matching Lack of a labour market observatory

Scarce access to credit

Scarce support to social inclusion, and social responsibility Deficit in educational skills

Services

Information Lack of information to SME and agriculture activities

Lack of awareness on local potential

Lack of information about business opportunities

Business Start Up

Weak support to the creation of new businesses

Weak financial support to new entrepreneurs, mainly young people and women

Support to SME

Lack of technical assistance

Lack to commercial support

Lack of support to business networking

Support to social inclusion

Lack of support to the social corporate responsibility

Lack of awareness on the importance of the social inclusion in the economic circuits

Finance

Weak financial instruments to

stimulate and support the businesses

Lack of capital for development, accompanied by problems in obtaining bank loans: high interest rates, lack of collateral

Scarce use of state credit facilities

Capacity building

Entrepreneurial skills Lack of entrepreneurial talent scouting Scarce dissemination of entrepreneurial culture in schools and universities

Professional skills Not adequate capacity of existing structures Insufficient training of trainers

Service providers skills Lack of capacity in forming good service providers

Governance skills Insufficient exposure to international experience

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Table 2: Strategic critical areas, priorities, and main obstacles for the Rebrihinski District




public-private Cooperation

Inefficient communication system between the executive authorities, local government and the initiators of investment projects in order to create and implement major territorial project

Scarce cooperation between the municipalities and the executive authorities of the Altai Territory, the federal executive bodies of the region, local authorities


Livestock




Weak practices in agricultural organizations and small farm

Floor

Scarce effort in creating a comprehensive value chain, and diversfiied products

Horticulture

Scarce effort in creating a comprehensive value chain, including producing new types of fresh vegetables, products preserved in vinegar or other stuff, frozen, juices and compotes products, cosmetics, heath products, biogas from solid waste.

Dairy

Scarce effort in creating a comprehensive value chain, and diversifying products towards all dairies, health and cosmetics goods.


Kasmalinsky forest

Scarce business relationships

Insufficient infrastructure

Weak diversification of tourism (regional and seasonal) Deficit in valorisation and promotion

Cultural Heritage


and businesses Scarce attention to environment issues

Lack of energy infrastructure technological innovation


Sensitisation and Formation of the ecological culture of the population

Entrepreneurship Entrepreneurial

culture Scarce sensitization on entrepreneurship culture


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Innovation

Innovation culture Little innovative enterprise activity

Lack of opportunities for stimulus to innovate

Lack of relationships among innovators, and participation to international innovation environments

Lack of talent scouting policies

Research Lack of research on animal genetic potential Lack of research for new animal feed Lack of innovation for soil fertility

Marketing Territorial Brand Scarce instruments for attracting external investors



Labour market

Demand-Supply matching

Unbalance labour supply and demand

Weak Implementation of the regional program for professional skills

Scarce support to social inclusion, and social responsibility

Deficit in professional skills

Services




Business Start Up Weak support (counselling, planning, marketing, training) to the creation of new businesses


Support to SME Lack of technical assistance



Support to social

inclusion Weak business opportunities


Finance

Weak financial instruments to stimulate and support the businesses



Underdevelopment of the risks’ insurance in agriculture

Capacity building

Entrepreneurial skills Lack of entrepreneurial talent scouting Not adequate dissemination of entrepreneurial culture in schools and universities


Service providers skills

Lack of capacity in forming good service providers


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Table 3: Strategic critical areas, priorities, and main obstacles for the Bijskij district




public-private Cooperation

Inefficient communication system between the executive authorities, local government and the initiators of investment projects in order to create and implement major territorial project

Weak planning, and incoherence regional-territorial planning

Difficulties on implementation of public policies in favour of SME


Fishery

Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh fishes and products preserved in salt, oil or other elements, fish breeding, cosmetics products -such as emollient, emulsifier, soothing (from shellfishes and herrings) ones-, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment

Livestock





Cereals, flour

Scarce effort in creating a comprehensive value chain, and diversifying or specialising products

Bread and bakery products,

confectionery products

Scarce effort in creating a comprehensive value chain, and diversifying products

Dairy

Scarce effort in creating a comprehensive value chain, and diversifying products towards all dairies, and health and cosmetics goods


Natural richness Scarce business



Cultural Tourism


and businesses;


Lack of energy technological innovation and energy-saving



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Innovation Innovation culture

Little innovative enterprise activity








Labour market



Scarce active labour policy in favour od unemployed people and women with sons



Services


Lack of awareness about local potential




Support to SME



Lack of support to business networking Little access to markets for farmers, due to high commercial chains monopoly

Support to social inclusion

Weak business opportunities


Finance





Capacity building






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Table 4: Strategic critical areas, priorities, and main obstacles for the Pervomaycky district




Livestock



Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh and non-fresh meet, stuffed meat, leather products, alternative forages, biogas Dependence on climate

Many uncultivated areas

Vegetables, Potatoes, Sugar

Beet

Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh vegetables, products preserved in vinegar or other stuff, frozen, juices and compotes, cosmetics, heath products, and biogas from solid waste, and green houses

Dairy

Scarce effort in creating a comprehensive value chain, and diversifying products towards all dairies, health and cosmetics

Ceramics clay

Scarce effort in creating a comprehensive value chain towards jewellery, artisanal trinkets, home accessories, artistic products


Natural richness: 50 lakes, tow basins,

forests



Weak diversification of tourism (regional and seasonal) for completing the value chains. For lake tourism: sport tourism and fishing, boat constructions and maintenance; for health: infrastructure and special services.

Deficit in valorisation and promotion

Health tourism


and businesses


Lack of technological innovation for energy-saving

Lack of information on the status and protection of the environment

Sensitisation and Formation of the ecological culture of the population


culture Scarce disseminated entrepreneurship


Innovation

Innovation culture Little innovative enterprise activity





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Services



Lack of sensitisation

Support to SME



Lack of support to networking

Little access to markets for farmers, due to high commercial chains monopoly

Finance


Lack of capital for development, accompanied by problems in obtaining bank loans: the high interest rates, lack of collateral



Capacity building

Entrepreneurial skills Lack of entrepreneurial talent scouting Weak dissemination of entrepreneurial culture in schools and universities





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Table 5: Strategic critical areas, priorities, and main obstacles for the Maiminski distrct



Governance

Coordination of the interests of the

people, businesses and governments

Weak planning system for economic and territorial development and regulations

Difficulty in the transfer of agricultural land

Weak policy for SME

Creation of an environment

enabling development

Lack of capacity and instruments in supporting investment for territorial development Lack of external good image

Lack of capacity in attracting external resources

Forests

Scarce effort in creating a comprehensive value chain, and diversifying products towards wood, wood processing chipboards, furniture, home accessories, wood art and crafts, etc.


Valorisation rural economy

Potential in berries, mushrooms



Scarce effort in producing fresh and conserved products, juice, compote, and jams, ice-creams, health and cosmetics, and realising green houses

Poultry

Scarce effort in creating a comprehensive value chain, and diversifying products towards a good poultry meat and egg industry, assuring genuine healthy and safe products, and producing good feeding products for the animals for poultry.

Livestock Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh and non-fresh meet, stuffed meat, leather products, alternative forages, biogas

Dairy

Scarce effort in creating a comprehensive value chain, and diversifying products towards all dairies, and cosmetics


Natural resources Scarce business relationships

Deficit in the optimization of the network of cultural institutions and lack of an autonomous institutions

Difficulties in the conservation of the cultural potential and cultural system, implementation of cultural activities, transmission to future generations of cultural heritage, and lack of support for artistic creation.


Cultural heritage

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and businesses; Scarce attention to environment issues Difficulty in reducing pollution




Labour market



Lack of information about labour market

Lack of support to self-employment Deficit in professional skills

Innovation Innovation culture

Little innovative enterprise activity




Research Lack of research on animal genetic potential Lack of research for new animal feed Lack of innovation for new animal feed




Services


Lack of information about business opportunities Lack of sensitisation

Business Start Up Weak support to the creation of new businesses


Support to SME


Lack to commercial support, and market analysis

Lack of support to networking

Weak support to exportation

Finance


support the businesses

Lack of capital for development, accompanied by problems in obtaining bank loans: the high interest rates, lack of collateral

Inefficiency of the central service of loans to small and medium-sized enterprises, and lack of insurance for export

Capacity building


Professional skills Not adequate capacity of existing structures

Insufficient training of trainers




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Table 6: Strategic critical areas, priorities, and main obstacles for Togulsky



Governance Public-private cooperation

Inefficient communication system between the executive authorities, local government and private sector

Weak planning, and incoherence regional-territorial planning

Difficulties on implementation of public policies in favour of SME

Valorisation rural economy

Livestock and hay




Dairy Scarce effort in creating a comprehensive value chain, and diversifying products towards all dairies, and cosmetics


Precious metals Scarce effort in creating a comprehensive value chain, and diversifying or specialising products, such as jewellery, and jewellery workshops

Sand and Gravel

Scarce effort in creating a comprehensive value chain, and diversified products


High potential for relax





culture Scarce sensitization on entrepreneurship culture Scarce support to young people and women




Labour market



Scarce active labour policy in favour od unemployed people and women with sons



Services

Information Lack of information to SME

Lack of sensitisation Lack of information about business opportunities

Business Start Up

Weak support to the creation of new businesses


Support to SME



Lack of support to business networking Little access to markets for farmers, due to high commercial chains monopoly

Finance Weak financial

instruments Lack of capital for development, accompanied by problems in obtaining bank loans: the high interest rates, lack of collateral


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4. Strategic guidelines: preliminary suggestions

The afore-mentioned inputs include common and unique elements for each area.

In order to provide preliminary suggestions for territorial economic development strategies, it is worth to consider that:

i. There are various common obstacles, and accordingly similar strategic actions.

ii. There are strategic areas that imply strategic responses or actions at least at regional level and other ones, whose most adequate response is at district level.

This is due either to the complexity of the action, and the investment needed for its implementation: higher the complexity and the investment, more adequate is the regional level with respect to the district or municipal one (sustainable and competitive strategies at municipal level for the BLAGO project areas are not recommended).

The strategic areas at regional level correspond to:

a) Innovation b) Territorial Marketing c) Finance d) Labour market (partially) e) Capacity Building

The strategic areas at district level correspond to

a) Governance b) Valorisation of the economic potential c) Green economy d) Entrepreneurship e) Services f) Labour market (partially)

Both the level responds, of course, to need and obstacles identified at district and municipal level.

4.1 Strategic guidelines at regional level

4.1.1 Innovation

The general problems and obstacles for generating and disseminating innovation are, according to the tables of the chapter 3:

Insufficient innovation culture: little innovative enterprise activity, lack of opportunities for stimulus to innovate lack of opportunities for stimulus to innovate, lack of relationships among innovators, and participation to international innovation environments, lack of talent scouting policies, lack of incentives.

Lack of research on animal genetic potential, new animal feed, new animal feed.

The correspondent strategic guidelines are therefore:

I) Creating an innovators’ club (INNCLUB), for maximising the occasions and favouring the meetings among potential innovators. The INNCLUB is a place everyone is willing to exchange his/her ideas, find the best way how to realise it, learn from the best practices, be exposed to international innovation experience, etc. can register.

II) Realising an annual award for the best innovative entrepreneurial idea, which delivers monetary awards to 3-5 best innovations at regional level, for favouring their implementation.

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III) Establishing a fund for strategic innovations, which provides incentives to innovative businesses, according to criteria and priorities established in accordance to strategic plans at regional and district level.

IV) Realising and updating the innovation regional catalogue, which systematises and disseminates the innovative technologies and methodologies realised in the region.

V) Realising or improving research laboratories on animal genetic potential, new animal feed, new animal feed.

4.1.2 Territorial Marketing

The general problem and obstacles for realising a regional marketing strategy is, according to the tables of the chapter 3:

Lack of a territorial brand: scarce instruments for attracting external investors, lack of incentives to participate to the brand strategy and tools, deficit in marketing professional skills.


ii) Realisation of the regional marketing strategy, through a regional focus group, which defines the regional personality and the regional image, and the regional marketing communication tools

iii) Definition of the regional brand (REBR), in accordance to the marketing strategy. The REBR is delivered to enterprises and organisation, which accomplish to defined criteria and indicators. Inspectors are trained for checking and monitoring the respect of the abovementioned criteria and indicators. The enterprises pay for obtaining the REBR label for their product oar services.

4.1.3 Finance

The general problems and obstacles for providing easier access to finance is, according to the tables of the chapter 3:

Weak financial instruments to stimulate and support the businesses: lack of capital for development, accompanied by problems in obtaining bank loans, such as the high interest rates, lack of collateral, scarce use of state credit facilities; underdevelopment of the insurance risks in agriculture; inefficiency of the central service of loans to small and medium-sized enterprises; and lack of insurance for export.


i) Establishing a guarantee fund, which can provide collaterals to existing businesses or new business ideas that do not have sufficient collaterals to offer to the banks. At this aim it is important to utilise the international experience.

ii) Establishing a fund for co-financing infrastructure development, through the private-public partnership formula.

iii) Establishing an agriculture risk insurance system, through the financial participation of beneficiaries.

4.1.4 Labour market

The general problems and obstacles for realising an adequate labour market strategy are, according to the tables of the chapter 3:

Weak labour demand-supply matching: unbalance labour supply and demand; lack of information about labour market; lack of support to self-employment; deficit in professional skills, scarce

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active labour policy in favour od unemployed people and women with sons, support to social inclusion, and social responsibility.

Weak Implementation of the regional program for professional skills: lack of a labour market observatory; access to credit for unemployed people willing to establish economic activities.


I) Establishing a Labour Market Regional Commission (LAMREC), formed by public and private partners, with the aim of reviewing and improving the regional rules and regulations for supporting job creation and social inclusion, including the programs for improving professional skills, the financial incentives, the support to the most disadvantaged people, the corporate social responsibility rules.

II) Establishing a Regional Labour Market Observatory, a proactive entity, which collects information about the labour demand and supply, disseminates it, and facilitates their matching, through orientating the programs for professional skills, the unemployed people for their job research, and the enterprises and other organisations for satisfying their manpower needs.

4.1.5 Capacity building

The general problems and obstacles for improving human resources capacities are, according to the tables of the chapter 3:

Lack of entrepreneurial skills: lack of entrepreneurial talent scouting; not adequate dissemination of entrepreneurial culture in schools and universities.

Lack of professional skills: not adequate capacity of existing structures; insufficient training of trainers.

Lack of service provider’s skills: lack of capacity in forming good service providers.

Lack of governance skills: insufficient exposure to international experience.


i) Implementing the program “BGO”: Business is a Good Opportunity”, for exposing the student of high schools and universities to the local and not local business success experience, and stimulating entrepreneurship. BGO includes awards to the best student entrepreneurial ideas. The award incudes also the registration to the INNCLUB.

ii) Improving the regional skill program, in accordance to the strategic guidelines regarding labour market

iii) Establishing a regional school for public utility services, where to for the new service providers, the new trainers, and the new governance operators.

4.2 Strategic guidelines for Aleijski Rajon

4.2.1 Governance

The general problems and obstacles for improving participatory governance of development processes is, according to the tables of the chapter 3:

Weakness in inter-sectoral, and public-private cooperation: lack of public-private mechanisms; administrative bureaucracy; weakness in the implementation of the plans; lack of project elaboration and implementation capacities.


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i) Establishing a Rajon Development Forum (RDF), with the participation of the public and private sectors, and the aim of sharing development strategies, coordinating actions for its implementation, carrying on territorial marketing strategies, and raising federal and international funds, mainly for transportations, and economic infrastructures (greenhouses, equipped industrial areas, tourism infrastructure, etc.)

ii) Establishing a Rajon Info-Desk (RID), through which to collect all the information regarding legislation, governmental program, market and technological opportunities, to facilitate dissemination of information, to carry on sensitization campaigns, mainly on social and environmental issues, and to realise economic monitoring.

4.2.2 Valorisation of the economic potential

The general problems and obstacles for valorising the local economy are, according to the tables of the chapter 3:

Scarce business relationships: deficit in associations, consortium, common and solidarity actions.

Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: Livestock; Grain floor; Legumes; Dairy, Minerals, such as jasper, malachite, porphyries, marble, granites, industrial minerals, mud; Forests; Therapeutic and Health Tourism; and Natural and Archaeological Tourism.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock, producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas; for dairy, producing new dairy products, and health and cosmetics goods; for minerals producing new products such as jewellery, artisanal trinkets, therapeutic and cosmetic products; for forest economy producing new products such as wood, wood processing chipboards, furniture, home accessories, wood arts and crafts, forest herbs and fruits.

Scarce effort for promoting and valorising tourism resources, with particular reference to therapeutic and health tourism; natural, and archaeological tourism: deficit in business relationships, infrastructure, big events, and promotion.

Deficit in transportation: deficit in public transportation, and commercial transportation.

Deficit in Infrastructures: greenhouses, and equipped industrial areas.


i) Reinforcing farmers and business associations, through realizing agreement at least for common purchasing and sales.

ii) Creating value chains consortiums, for strengthening lobbying capacities, favouring common actions, and creating value chains labels or brands.

iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock; new dairy products, health and cosmetics goods for dairy; new products such as jewellery, artisanal trinkets; therapeutic and cosmetic products for minerals (jasper, malachite, porphyries, marble, granites, industrial minerals, mud); wood, wood processing chipboards, furniture, home accessories, wood arts and crafts, forest herbs and fruits for the forest value chain.

iv) Strengthening the tourism value chain, through creating new businesses for completing it, establishing an info-center, realising big events (i.e. Summer regional Olympic games), a district tourism board.

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4.2.3 Green economy

The general problems and obstacles for favouring the green economy are, according to the tables of the chapter 3:

Weakness in pursuing the objective of a Clean Territory: scarce attention to environment issues, inaccurate information on the status and protection of the environment; lack of sensitisation and formation of the ecological culture of the population.

Weakness in waste management: lack of support to the creation of business in the field of renewable energy form waste, and to the reduction of not-authorised waste release.


i) Realising an university curriculum on green economy.

ii) Realising an annual school and university campaign on environmental risks and opportunities, and waste management.

iii) Promoting and supporting the creation of businesses in the field of renewable energy form waste.

4.2.4 Entrepreneurship

The general problems and obstacles for favouring local entrepreneurs is, according to the tables of the chapter 3:

Weak entrepreneurial spirit: lack of virtual incubators for new entrepreneurs, and of support in terms of counselling, planning, marketing, training to new entrepreneurs, mainly for young people and women.


i) Creating a virtual incubator for new businesses.

ii) Creating an university hub for entrepreneurial ideas from the students.

iii) Realising exchanges between entrepreneurs and students of high school and universities.

4.2.5 Services

The general problems and obstacles for strengthening services for territorial economic development are, according to the tables of the chapter 3:

Scarce information services: lack of information to SME and agriculture activities; lack of awareness on economic potential and local resources, lack of information about business opportunities.

Weak support to the creation of new businesses: scarce services for business start up; weak financial support to new entrepreneurs, mainly for young people and women.

Scarce support to SME: lack of technical assistance; lack of commercial support; lack of support to networking.

Scarce support to social inclusion: lack of support to the social corporate responsibility, lack of awareness about the importance of social inclusion of the most disadvantaged people in the economic circuit.

Bureaucracy: long waiting period for administrative business procedures.


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i) Realising a continuous monitoring about the demand and supply of services, within the activities of the above mentioned Rajon Info-Desk.

ii) Establishing a Rajon Economic Comprehensive Service System (RECOSS), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, support to social inclusion, marketing, capacity building, and finance) mainly to small and medium businesses, to local NGO, and to the population willing to exploit the economic local potential.

iii) Establish a one-stop-shop for accelerating the business administrative procedures.

4.2.6 Labour market


Weak labour demand-supply matching: unbalance labour supply and demand; lack of information about labour market; lack of support to self-employment; deficit in professional skills;

Weak implementation of the regional program for professional skills: lack of a labour market observatory.


i) Establishing a Rajon Branch of the Regional Labour Market Observatory, a proactive entity, which collects information about the labour demand and supply, disseminates it, and facilitates their matching, through orientating the programs for professional skills, the unemployed people for their job research, and the enterprises and other organisations for satisfying their manpower needs.

ii) Implementing a professional skill training program on the economic activities, which represent the development potential.

4.3 Strategic guidelines for Rebrihinski District

4.3.1 Governance


Weakness in inter-sectoral, and public-private cooperation: lack of public-private mechanisms; inefficient communication system between the executive authorities, local government and the initiators of investment projects; scarce cooperation between the municipalities and the executive authorities of the Altai Territory, the federal executive bodies of the region, and the local authorities.


i) Establishing a District Development Pact (DEPA), with the participation of the public and private sectors, and the aim of sharing and elaborating development strategies, coordinating actions for its implementation and implementing them, carrying on district marketing strategies, and raising federal and international funds, mainly for transportations, and economic infrastructures (greenhouses, equipped industrial areas, tourism infrastructure, etc.)

ii) Establishing a District Info-Desk (DID), through which to collect all the information regarding legislation, governmental program, market and technological opportunities, to facilitate

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dissemination of information, and to carry on sensitization campaigns, mainly on social and environmental issues, to realise economic monitoring.




Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: Livestock; Grain floor; Horticulture; Dairy; Natural and Cultural Tourism.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock, producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas, for dairy, producing new dairy products, health and cosmetics goods; for horticulture producing new types of fresh vegetables, products preserved in vinegar or another, frozen, juices and compotes, cosmetics, heath products, biogas from solid waste.

Scarce effort for promoting and valorising tourism resources, with particular reference to natural

resources around the Kasmalinsky forest, and cultural tourism: deficit in diversification, business relationships, infrastructure, big events, promotion.

Deficit in Infrastructures: greenhouses, and equipped industrial areas.




iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock; new dairy products, and health and cosmetics goods for dairy; new types of fresh vegetables, products preserved in vinegar or other liquids, frozen, juices and compotes, cosmetics, heath products, biogas from solid waste for horticulture.

iv) Strengthening the tourism value chain, through creating new businesses for completing it, establishing a Cultural Center, for maintaining and disseminating traditional culture, realising big events (i.e. Kasmalinsky Forest Natural Documentary International Award), a district tourism board.

4.3.3 Green economy


Weakness in pursuing the environmental safeguard: scarce attention to environment problems, inaccurate information on the status and protection of the environment; sensitisation and formation of the ecological culture of the population.

Weakness in waste management: lack of support to the creation of business in the field of renewable energy form waste, and to the reduction of not authorised waste release.


23

i) Realising an university master on green economy.

ii) Realising annual school and university campaigns on environmental risks and opportunities, and waste management.

iii) Promoting and supporting the creation of business in the field of renewable energy form waste.


The general problems and obstacles for favouring local entrepreneurship is, according to the tables of the chapter 3:

Weak entrepreneurial spirit: lack of formation of new entrepreneurs, of assistance in counselling, planning, marketing, training mainly for young people and women new entrepreneurs.



ii) Creating an university hub for entrepreneurial ideas from the students.

iii) Realising exchanges between entrepreneurs and students of high school and universities.

4.3.5 Services



Weak support to the creation of new businesses: scarce services for business start up; weak financial support to new entrepreneurs, mainly young people and women.



i) Realising a continuous monitoring about the demand and supply of services, within the activities of the above mentioned District Info-Desk.

ii) Establishing a District Economic Comprehensive Service System (DECOSS), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, support to social inclusion, marketing, capacity building, and finance) mainly to small and medium businesses, to local NGO, to the population willing to exploit the economic local potential.

4.3.6 Labour market


Weak labour demand-supply matching: unbalance labour supply and demand; lack of information about labour market; lack of support to self-employment; deficit in professional skills.

Weak implementation of the regional program for professional skills: lack of a labour market observatory.

24


i) Establishing a District Branch of the Regional Labour Market Observatory, a proactive entity, which collects information about the labour demand and supply, disseminates it, and facilitates their matching, through orientating the programs for professional skills, the unemployed people for their job research, and the enterprises and other organisations for satisfying their manpower needs.

ii) Realising of a professional skill training program on the economic activities, which represent the development potential.

4.4 Strategic guidelines for Bijskij District

4.4.1 Governance


Weakness in inter-sectoral, and public-private cooperation: lack of public-private mechanisms; difficulties on implementation of public policies in favour of SME, weak planning, and incoherence regional-territorial planning.


i) Establishing of a District Development Forum (DDF), with the participation of the public and private sectors, and the aim of sharing development strategies, coordinating actions for make coherence between regional and territorial plans, carrying on district marketing strategies,




Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: Livestock; Grain floor; Legumes; Dairy, Fishery, Bread and bakery products, confectionery products; and Natural and Cultural Tourism.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock, producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas; for dairy, producing new dairy products, and cosmetics; for fishing, producing fresh fishes and products preserved in salt, oil or other stuff, fish breeding, cosmetics products, such as emollient, emulsifier, soothing (from shellfishes and herrings) ones, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment.

Scarce effort for promoting and valorising tourism resources, with particular reference to natural and cultural tourism: deficit in business relationships, infrastructure, big events, and promotion.




iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock;

25

new dairy products, and health and cosmetics goods for dairy; fresh fishes and products preserved in salt, oil or other stuff, fish breeding, cosmetics products -such as emollient, emulsifier, soothing (from shellfishes and herrings) ones-, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment for fishing value chain.

iv) Strengthening the tourism value chain, through creating new businesses for completing it, realising the necessary infrastructure, and big events (i.e. ECO-Territories international fair), a district tourism board.

4.4.3 Green economy


Weakness in pursuing the objective of a Green Territory: scarce attention to environment issues, scarce accurate information on the status and protection of the environment; lack of sensitisation and formation of the ecological culture of the population.

Weakness in waste management: lack of support to the creation of business in the field of renewable energy form waste, lack of reduction of not authorised waste release.


i) Realising an university innovation centre on green economy, with particular reference to waste management.

ii) Realising annual school and university campaigns on environmental risks and opportunities, and waste management.

iii) Promoting and supporting the creation of business in the field of renewable energy form waste.



Weak entrepreneurial spirit: lack of support to new entrepreneurs, in terms of counselling, planning, marketing, training, mainly for young people and women.


i) Creating a virtual incubator for new businesses, with the involvement of universities.

ii) Favouring exposure and scholarships of young people at local, national and international businesses.

4.4.5 Services




26


Scarce support to social inclusion: lack of support to the social corporate responsibility, lack of awareness about the importance of social inclusion of the most disadvantaged people in the economic circuit.


i) Realising a continuous monitoring about the demand and supply of services, within the activities of the above mentioned Regional Info-Desk.

ii) Establishing a District Economic Development Agency (DEDA), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, support to social inclusion, marketing, capacity building, and finance) mainly to small and medium businesses, to local NGO, and to the population willing to exploit the economic local potential.

4.4.6 Labour market


Weak labour demand-supply matching: unbalance labour supply and demand; lack of information about labour market; lack of support to self-employment; deficit in professional skills;

Weak implementation of the regional program for professional skills: lack of a labour market observatory;



ii) Realising a professional skill training program on the economic activities, which represent the development potential.

4.5 Strategic guidelines for Pervomaycky District




Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: livestock; grain floor; vegetables, potatoes, sugar beet; dairy, ceramic clay, lake and health tourism; and increasing the cultivated areas.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock, producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas; for dairy, producing new dairy products, health and cosmetics goods; for vegetables producing new types of fresh vegetables, products preserved in vinegar or other stuff, frozen, juices and compotes, cosmetics,

27

heath products, biogas from solid waste; for ceramic clay, producing jewellery, artisanal trinkets, home accessories, artistic products and correspondent equipment.

Scarce effort for promoting and valorising tourism resources, with particular reference to lake and health tourism: deficit in business relationships, infrastructure, big events, and promotion.

Deficit in transportation: deficit in public transportation, and communication.



ii) Creating value chains consortiums, for strengthening lobbying capacities, favouring common actions, and creating value chains labels or brands; and actuating strategies for reducing the risk related to the dependence on meteorological conditions.

iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock; new dairy products, health and cosmetics goods for dairy; producing new types of fresh vegetables, products preserved in vinegar or another, frozen, juices and compotes, cosmetics, heath products, and biogas from solid waste, and green houses for vegetables; jewellery, artisanal trinkets, home accessories, artistic products and correspondent equipment for ceramic clay.

iv) Strengthening the tourism value chain, through creating new businesses for completing it, establishing an info-center, and realising big events (i.e. International Lake Art Festival: game and artistic performance)

4.5.2 Green economy


Weakness in pursuing the objective of reducing contamination: scarce attention to environment issues, scarce information on the status and protection of the environment; lack of sensitisation and formation of the ecological culture of the population.

Weakness in waste management: lack of support to the creation of business in the field of renewable energy form waste, presence of authorised waste release.


i) Realising annual campaigns on environmental risks and opportunities, and waste management

ii) Promoting and supporting the creation of businesses in the field of renewable energy form waste.


The general problems and obstacles for favouring local entrepreneurs is, according to the tables of the chapter 3:

Weak entrepreneurial spirit: lack of support in terms of sensitisation, counselling, planning, marketing, training to new entrepreneurs.



ii) Realising scholarships at local and not local businesses.

28

4.5.4 Services






i) Establishing a District Economic Comprehensive Service System (DECOSS), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, support to social inclusion, marketing, capacity building, and finance) mainly to small and medium businesses, to local NGO, and to the population willing to exploit the economic local potential.

4.5.5 Labour market

The general problems and obstacles for realising an adequate labour market strategy is, according to the tables of the chapter 3:

Weak labour demand-supply matching: deficit in professional skills; weak implementation of the regional program for professional skills.


i) Realising a professional skill training program on the economic activities, which represent the development potential.

4.6 Strategic guidelines for the Maiminski district

4.6.1 Governance

The general problems and obstacles for improving participatory governance of development processes are, according to the tables of the chapter 3:

Weakness in inter-sectoral, and public-private cooperation: lack of public-private mechanisms; weakness in the implementation of the plans.

Weakness in creating an enabling environment for investment: lack of capacities and instruments, lack of a good external image, lack of capacities in attracting external resources.


i) Establishing a District Development Action Group (DiDAG), with the participation of the public and private sectors, and the aim of sharing development strategies, coordinating actions for its implementation, improving the planning process and coordination, and raising federal and international funds.

ii) Elaborating and implementing a district territorial marketing strategy, in the framework of the DiDAG, and for defining the district personality, image and strategy for attracting external resources

29



7. Scarce business relationships: deficit in associations, consortium, common and solidarity actions.

8. Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: berries, mushrooms; poultry; livestock (particularly re-vitalising sheep and goats); dairy, forests; natural and cultural heritage tourism.

9. Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock, re-vitalising sheep and goats, producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas; for dairy, producing new dairy products, health and cosmetics goods; for forest economy supporting berries production and marketing and their specific value chain (fresh and conserved products, juice, compote, and jams, ice-creams, health and cosmetics, etc.), producing new products such as wood, wood processing chipboards, furniture, home accessories, wood arts and crafts; for poultry creating a good poultry meat and egg industry, assuring genuine healthy and safe products, and producing good feeding products for the animals.

10. Scarce effort for promoting and valorising tourism resources: deficit in valorising the geographic position as the “Altai door”, the natural resources, and the cultural heritage; deficit in business relationships, infrastructure, big events, promotion.




iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular re-vitalising sheep and goats, producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock; producing new dairy products, health and cosmetics goods for dairy; producing fresh and conserved products, juice, compote, and jams, ice-creams, health and cosmetics, and realising green houses for berries; producing new products such as wood, wood processing chipboards, furniture, home accessories production, wood arts and crafts for forest economy; creating a good poultry meat and egg industry, assuring genuine healthy and safe products, and producing good feeding products for the animals for poultry.

iv) Strengthening the tourism value chain, through creating new businesses for completing it, creating the network of the cultural institutions around a local culture house for maintaining and disseminating the local culture, realising big events (i.e. Festival of the traditional Russian cultures), creating a monitoring system on the status of the historical and cultural monuments and resources; realising new infrastructures and services for tourism.

4.6.3 Green economy

The general problems and obstacles for favouring the green economy is, according to the tables of the chapter 3:

Weakness in pursuing a green territory approach: scarce attention to environment issues, lack of information on the status and protection of the environment; weak sensitisation and formation of the ecological culture of the population.


30

I) Realising annual campaigns on environmental risks and opportunities, and waste management.

II) Promoting and supporting the creation of business in the field of green economy.



Weak entrepreneurial spirit: lack of support in terms of counselling, planning, marketing, training to new entrepreneurs, mainly young people and women.



ii) Realising exchanges between entrepreneurs and students of high school and universities.

4.6.5 Services




Scarce support to SME: lack of technical assistance; lack of commercial and marketing support; lack of support to networking.


i) Realising a continuous monitoring about the demand and supply of services, within the activities of the above mentioned Regional Info-Desk.

ii) Establish a District Economic Comprehensive Service System or Agency (DECOSS), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, support to social inclusion, marketing, capacity building, and finance) mainly to small and medium businesses, to local NGO, and to the population willing to exploit the economic local potential.

4.6.6 Labour market

The general problems and obstacles for realising an adequate labour market strategy is, according to the tables of the chapter 3:

Weak labour demand-supply matching: lack of information about labour market; lack of support to self-employment; deficit in professional skills.



31

ii) Realising a professional skill training program on the economic activities, which represent the development potential.

4.7 Strategic guidelines for the Togulsky district

4.7.1 Governance


Weakness in inter-sectoral, and public-private cooperation: lack of public-private mechanisms; weakness in the implementation of the plans, and of coherence between regional and district plans.

Weakness in creating an enabling environment for investment: lack of capacities and instruments, lack of a good external image, lack of capacities in attracting external resources.


i) Establishment of a District Development Action Group (DiDAG), with the participation of the public and private sectors, and the aim of sharing development strategies, coordinating actions for its implementation, improving the planning process and coordination, and raising federal and international funds.




Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: livestock, dairy, precious metals, sand and gravel, relax tourism.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas; for dairy, producing new dairy products, and cosmetics; for minerals, producing diversified and specialised products, such as jewellery, and jewellery workshops; for sand and gravel diversified and specialised products.

Scarce effort for promoting and valorising tourism resources: deficit in valorising the health tourism: deficit in business relationships, infrastructure, big events, promotion.




iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular re-vitalising sheep and goats, producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock; producing new dairy products, health and cosmetics for dairy; diversified and specialised products, such as jewellery, and jewellery workshops for minerals; diversified and specialised products for sand and gravel.

32

iv) Strengthening the tourism value chain, through creating new businesses for completing it, and organising their network, realising big events (i.e. Fair of Relaxing tourism), realising new infrastructures and services for relaxing tourism.



Weak entrepreneurial spirit: scarce sensitisation; lack of support in terms of counselling, planning, marketing, training to new entrepreneurs, mainly young people and women.


i) Establishing a special Entrepreneurship Promotion Center (EPC)

ii) Realising exchanges between entrepreneurs and students of high school and universities.

4.7.4 Services




Scarce support to SME: lack of technical assistance; lack of commercial and marketing support; lack of support to networking.


i) Establishing a District Economic Comprehensive Service System or Agency (DECOSS), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, support to social inclusion, marketing, capacity building, and finance) mainly to small and medium businesses, to local NGO, and to the population willing to exploit the economic local potential.

4.7.5 Labour market


Weak labour demand-supply matching: lack of information about labour market; lack of support to self-employment; deficit in professional skills. The correspondent strategic guidelines are therefore:


33

ii) Realising a professional skill training program on the economic activities, which represent the development potential

5 Conclusion and recommendations

5.1 Summary of strategic areas and strategic guidelines

The following tables 7-13 summarize the strategic guidelines for the analysed territories.

Table 7: Strategic guidelines recommended for economic development of Altai Region

Strategic area Strategic guidelines

Innovation

Innovators’ club (INNCLUB) Annual award for the best innovative entrepreneurial idea

Fund for strategic innovations Innovation regional catalogue

Research laboratories on animal genetic potential, new animal feed, new animal feed.

Territorial Marketing

Regional marketing strategy Regional brand (REBR),

Finance Guarantee fund Fund for co-financing infrastructure development

Agriculture risk insurance system

Labour market Labour Market Regional Commission (LAMREC)

Regional Labour Market Observatory

Capacity building

“BGO” program: Business is a Good Opportunity

Regional school for public utility services

Improvement of the regional skill program, in accordance to the strategic guidelines on labour market

Table 8: Strategic guidelines recommended for economic development of Aleijski Rajon


Governance Rajon Development Forum (RDF) Rajon Info-Desk (RID).

Valorisation economic potential

Livestock businesses Fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas

Dairy businesses Milk and all the dairy products, health and cosmetics goods

Minerals' businesses Jewellery, artisanal trinkets, arts and crafts, home accessories from jasper, malachite, porphyries, marble, granites

Forest businesses Wood, wood processing chipboards, furniture, home accessories, wood arts and crafts, forest herbs and fruits

Farmers and business associations Value chains consortiums

New businesses in tourism value chain District tourism board

Summer regional Olympic games Tourism info-centre

Green Economy

University curriculum on green economy

New business in the field of renewable energy form waste

Annual school and university campaign on environmental risks and opportunities

Entrepreneurship Virtual incubator University hub for entrepreneurial ideas

Exchanges between entrepreneurs and students

Services Monitoring services demand and supply

One-stop-shop for accelerating the business administrative procedures

Rajon Economic Comprehensive Service System (RECOSS)

Labour Market Rajon Branch of the Regional Labour Market Observatory Professional skill training

34

Table 9: Strategic guidelines recommended for economic development of Rebrihinski District

Strategic areas Strategic guidelines

Governance District Development Pact (DEPA), District Info-Desk (DID).




Horticulture businesses

New types of fresh vegetables, products preserved in vinegar or another, frozen, juices and compotes, cosmetics, heath products, biogas from solid waste.


New businesses in tourism value chain Kasmalinsky Forest Natural Documentary International Award

District tourism board District Cultural House

Green Economy University master on environment New business in the field of renewable energy form waste


Entrepreneurship Virtual incubator University hub for entrepreneurial ideas

Exchanges between entrepreneurs and students



District Economic Comprehensive Service System (RECOSS)

Labour Market District Branch of the Regional Labour Market Observatory

Professional skill training

Table 10: Strategic guidelines recommended for economic development of Bliskij District



Livestock businesses

Fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas

Dairy businesses

Milk and all the dairy products, health and cosmetics goods

Fishing

Fresh fishes and products preserved in salt, oil or other elements, fish breeding, cosmetics products -such as emollient, emulsifier, soothing (from shellfishes and herrings) ones-, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment.


New businesses in tourism value chain (natural and cultural)

ECO-Territories international fair

District tourism board Tourism infrastructure

Green Economy University innovation center on green economy



Entrepreneurship Virtual incubator Exposure and scholarships

Services

Monitoring services demand and supply


District Economic Development Agency (DEDA)

Labour Market District Branch of the Regional Observatory

Professional skill training

35

Table 11: Strategic guidelines recommended for economic development of Pervomaycky District


Governance District Development Pact (DEPA), District Info-Desk (DID).




Vegetables businesses New types of fresh vegetables, products preserved in vinegar or another, frozen, juices and compotes, cosmetics, heath products, biogas from solid waste, green houses.

Ceramic clay businesses

Jewellery, artisanal trinkets, home accessories, artistic products and correspondent equipment


New businesses in tourism value chain (Lake and health)

District tourism board Lake Art Festival

Green Economy Annual school and university campaign on environmental risks and opportunities


Entrepreneurship Virtual incubator Scholarships

Services District Economic Comprehensive Service System (RECOSS)

Labour Market Professional skill training

Table 12: Strategic guidelines recommended for economic development of Maiminski District


Governance District Development Action Group (DiDAG),

District territorial marketing strategy




Poultry Poultry meat and egg industry, assurance of genuine healthy and safe products, and production of good feeding products

Forest businesses Wood, wood processing chipboards, furniture, home accessories, wood arts and crafts, forest herbs and fruits



Tourism infrastructures and services

Local culture house Festival of the traditional Russian cultures

Green Economy Annual campaign on environmental risks and opportunities


Entrepreneurship Virtual incubator Scholarships




District Branch of the Regional Labour Market Observatory

36

Table 13: Strategic guidelines recommended for economic development of Togulsky District


Governance District Development Action Group (DiDAG),

District territorial marketing strategy




Precious metals Diversified and specialised products, such as jewellery, and jewellery workshops

Sand and gravel Diversified and specialised products


New businesses in relax tourism Tourism infrastructures and services

Network of relaxing centres Fair of relax tourism

Entrepreneurship Entrepreneurship Promotion Canter (EPC)

Scholarships



District Branch of the Regional Labour Market Observatory

5.2 Project ideas for economic development

The following table 14 indicates some project ideas for economic development, whose approximate cost range between 5,000 and 30,000 Euros, and they are categorized in the following way:

5,000-10,000 Euro: Category A

10,000-20,000 Euro : Category B

20,000-30,000 Euro : Category C

Table 14: Project ideas for each analysed territory

Strategic area Strategic guidelines Project ideas Category

Altai

Innovation Annual award for the best innovative entrepreneurial idea

Award for the best innovative entrepreneurial idea

C

Territorial Marketing

Regional brand (REBR) Realisation of the Regional Brand B

Labour Market Labour Market Observatory Feasibility and start-up of a ReLMO A

Aleijski Rajon

Governance Rajon Development Forum (RDF) Feasibility and start-up of DEPA B


Livestock businesses 1 business idea (i.e. Innovative leather products)

B

Dairy businesses 1 business idea (i.e. High quality cheese) B

Minerals' businesses 1 business idea (i.e. Malachite jewellery)) B

Forest businesses 1 business ideas (i.e. Forest fruits jams and juice)

A

Farmers and business associations Farmers association feasibility and start-up A

District tourism board Feasibility and start up of District Tourism Board

A

37

Green Economy


1 business (I.e. plastic and glass collection and recycling)

B


Campaign on environmental risks and opportunities

A

Entrepreneurship University hub for business ideas University hub for business ideas feasibility and start up

A

Services Rajon Economic Comprehensive Service System (RECOSS)

RECOSS Feasibility C

Rebrihinski District

Governance District Development Pact (DEPA), Feasibility and start-up of DEPA A



B


Horticulture' businesses 1 business ideas (i.e. Preserved vegetables) A


Big event for tourism Kasmalinsky Forest Natural Documentary International Award

C

District Cultural House Implementation of the District Cultural House B

Green Economy



B



A

Entrepreneurship University hub for entrepreneurial ideas

University hub for entrepreneurial ideas feasibility and start up

A

Services

Monitoring about the demand and supply of services


B



Bliskij District



B


Fishing 1 business idea (i.e. Fishing equipment) B



Support to artistic group A

District tourism board District tourism board A

Green Economy New business in the field of renewable energy form waste


B

Entrepreneurship Virtual incubator Feasibility of the virtual incubator B

Services


Feasibility and start-up of the One-Stop-Shop A

District Economic Development Agency (DEDA)

DEDA Feasibility C

38

Pervomaycky

Governance District Development Pact (DEPA), DEPA feasibility and start-up A



B


Vegetables businesses 1 business ideas (i.e. Greenhouse) A

Ceramic clay businesses 1 business idea (i.e. Artistic ceramic works) A

Lake businesses 1 business idea (i.e. Lake sport Center) B


New businesses in tourism value chain (forest and health)

1 business idea (i.e. Fitness and SPA for senior people)

B

District tourism board District tourism board A



B


Services



Maiminski

Governance District territorial marketing strategy District territorial marketing strategy C



B


Poultry 1 business idea (i.e. Poultry feeding products) B

Forest businesses 1 business idea (I.e. Traditional furniture) B



Support to traditional cultural arts A

Local culture house Feasibility and start up local culture house A



B




Togulsky

Governance District Development Action Group (DiDAG)

Feasibility and start up of the DiDAG A


Livestock businesses 1 business idea (i.e. Innovative leather products) B

Dairy businesses 1 business idea (i.e. high quality cheese) B

Precious metals 1 business idea (i.e. traditional heritage jewellery) B

Farmers and business associations Farmers association feasibility and start up A New businesses in tourism value chain relax

1 business idea (comprehensive relax centre for senior people) B

Entrepreneurship Entrepreneurship Promotion Centre (EPC)

Feasibility of the EPC B



39

5.3 Follow up and warning

This paper has provided a preliminary assessment on economic development strategic guidelines and correspondent project ideas for 7 territorial areas:

i) Altai Region

ii) Alejskij Rajon

iii) Rebrihinski District

iv) Bijskij District

v) Togulsky District

vi) Pervomaycky District

vii) Maiminski District

These strategic guidelines refer to strategic critical areas, as they came out by a previous exercise the BLAGO project carried on, providing territorial profiles.

These strategic critical areas are:

a) Governance



d) Green economy

e) Entrepreneurship

f) Innovation



i) Labour market


The strategic guidelines and the correspondent project ideas have to be considered purely indicative and a useful reference for the real exercise, that should be carried on through the appropriate methodology, like the RESCO one, as it was provided during the BLAGO project November training sessions.

It is, therefore, recommended to carry out the participatory analysis of the local economic competitive and sustainable potential, and the assessment of the obstacles to their full valorisation.

At the time of the elaboration of the strategic guidelines, this paper could be helpful as reference and indications.

40

Index of the tables

Table 1: Strategic critical areas, priorities, and main obstacles for the Alejskij rajon pag. 5

Table 2: Strategic critical areas, priorities, and main obstacles for the Rebrihinski District pag. 7

Table 3: Strategic critical areas, priorities, and main obstacles for the Bijskij district pag. 9

Table 4: Strategic critical areas, priorities, and main obstacles for Togulsky pag. 11

Table 5: Strategic critical areas, priorities, and main obstacles for the Pervomaycky district pag. 12

Table 6: Strategic critical areas, priorities, and main obstacles for the Maiminski distrct pag. 14

Table 7: Strategic guidelines recommended for economic development of Altai Region pag. 33

Table 8: Strategic guidelines recommended for economic development of Aleijski Rajon pag. 33

Table 9: Strategic guidelines recommended for economic development of Rebrihinski District pag. 34

Table 10: Strategic guidelines recommended for economic development of Bliskij District pag. 34

Table 11: Strategic guidelines recommended for economic development of Pervomaycky District pag. 35

Table 12: Strategic guidelines recommended for economic development of Maiminski District pag. 35

Table 13: Strategic guidelines recommended for economic development of Togulsky District pag. 36

Table 14: Project ideas for each analysed territory pag. 36

2nd part Strategic guidelines for valorising economic potential in Angarsk,

Kuitun, and Buryatia

6 Inputs for strategic guidelines: strategic priorities and obstacles

The following tables 15, 16, and 17 resume the strategic developmental priorities of each territory and the correspondent obstacles to development for the areas of Angarsk, the Kuitun, and the Buryatia.

41

Table 15: Strategic critical areas, priorities, and main obstacles for Angarsk



Governance

Facilitating the construction of the needed infrastructure

Weak development of public (engineering, transport and social) infrastructure

Lack of public-private mechanisms

Creation of positive investment image

Lack of capacity in elaborating a good territorial marketing strategy

Lack of a territorial brand


Berries



Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh fruits, preserved products, frozen, juices and compotes, cosmetics, heath products, and green houses.

Deficit in transportation

Potatoes

Scarce effort in creating a comprehensive value chain, and diversified and specialised products.

Horticulture

Scarce effort in creating a comprehensive value chain, including producing new types of fresh vegetables, products preserved in vinegar or other stuff, frozen, juices and compotes products, cosmetics, heath products, biogas from solid waste.

Deficit in greenhouses

Natural Resources

Water Scarce effort in defining the resources

competitive advantage

Scarce effort in creating a comprehensive value chain, and diversified products, such as water diversified industry, small energy local plants, etc.

Sand

Scarce effort in creating a comprehensive value chain, and diversified products


Baikal Lake Tourism Scarce business


Weak diversification: sport tourism and fishing, boat constructions and maintenance, etc.


Cultural Tourism (traditional villages)

Weak valorisation and diversification: Village Hospitality Houses (Spread Tourism), Arts& crafts, traditional cuisine, etc.

Green economy Pollution Reduction

and Waste Management


Risky flow of pollutants into water and streams, groundwater, and unauthorised waste storage. The lack of waste treatment facilities. The absence of structures for the management of storm water run-off.

No general scheme of sanitary purification of territory


42

Innovation Innovative Initiatives Lack in technical re-equipment, modernization of industrial organizations, and introduction of modern technologies


Lack of incentives

Labour market Re-vitalisation labour

market Lack of a labour market observatory

Deficit in trainings and educational seminars for beginner entrepreneurs

Deficit in professional skills trainings

Services



Lack of information about business opportunities Long waiting period for

administrative business procedures

Business Start Up Weak support to the creation of new businesses


Support to SME Lack of technical assistance

Lack of commercial support


Finance


stimulate and support the businesses



Capacity building Entrepreneurial skills Lack of entrepreneurial talent scouting Scarce dissemination of entrepreneurial culture in schools and universities


43

Table 16: Strategic critical areas, priorities, and main obstacles for Kuitun



Governance

Relationships between the various levels of local administration

Inefficient communication system between the executive authorities, local government and the private sector in order to elaborate and implement major territorial project

Lack of capacity in raising funds from the regional and federal budgets for the construction and repair of roads, and the

beautification of the villages.

Difficulties in the provision of land for rent or ownership, and registration procedures

Participatory planning

Scarce cooperation between the municipalities and the executive regional authorities, the federal bodies, and local authorities

Lack of annual monitoring the Program implementation on implementing


Livestock



Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh and non-fresh meet, stuffed meat, leather products, alternative forages, biogas. Lack of forage and of rehabilitation of pastures

Not appropriate investment climate

Forestry: Timber and Fruit Value Chains

Scarce effort in creating a comprehensive value chain, and diversifying products towards the timber value chain: wood processing chipboards, furniture, home accessories, wood art and crafts, sawmill waste recycling, joinery services, sharpening tools, etc; and the forest fruit value chain (berries, mushrooms, etc.): fresh products, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste.

Dairy

Scarce effort in creating a comprehensive value chain, and diversifying products towards all dairies, health and cosmetics goods.

Beekeeping

Scarce effort in creating a comprehensive value chain, and diversifying products towards royal Jelly, pollen, propolis, bee poison, mead, bee wax, cosmetic products, construction of beekeeping tools and equipment.

Valorisation of tourism economy

Natural resources: forestry,

uncontaminated areas, lakes, rivers

Scarce effort in developing specialized forms of tourism: hunting, fishing, weekend hiking trails to lakes and rivers, through the involvement of local population

Lack of capacity in promoting the attractions, and organising big events at this aim

44

Green economy

Water management

Low quality and quantity of water and heating settlement

Scarce capacities in the construction and reparation of water supply networks, and reparation of wells and water towers

Waste management, and energy


Lack of energy infrastructure technological innovation

Lack of capacity in the collection of household waste and dead animals, and recycling

Lack of sensitisation and Formation of the ecological culture of the population

Innovation Innovation

entrepreneurship Little innovative enterprise activity

Lack of stimulus to innovate

Lack of advanced technologies in grain, dairy, meat, agriculture in general,

Absence of dissemination of best innovative practices

Labour market



Out-dated and overloaded content of schooling does not correspond to modern requirements

Lack of qualified specialists in the fields of Economics, finance and law

Services


Lack of information about business opportunities Lack of awareness on local potential

Business Start Up Weak financial support to new entrepreneurs, mainly young people and women

Weak support (counselling, planning, marketing, training) to the creation of new businesses

Support to SME Lack of technical assistance Lack of support to business networking Lack of commercial support

Finance Weak financial for

businesses Lack of capital for development, accompanied by problems in obtaining bank loans: high interest rates, lack of collateral


Regulatory Framework

Imperfection of the legal and regulatory

framework

Complications and high cost of obtaining the license, certification and standardization of individual types of goods and services

Lack of enterprise on the public procurement, and clear contractual relationships

Capacity building Entrepreneurial skills Lack of entrepreneurial talent scouting Not adequate dissemination of entrepreneurial culture in schools and universities


45

Table 17: Strategic critical areas, priorities, and main obstacles for Buryatia



Governance

Creation of comfortable environment for business

No conditions for the realizatoin of the infrastructure for SME; creation of new jobs; increase in self-employment

Weak financial-credit and investment mechanisms for small business


Fishery

Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh fishes and products preserved in salt, oil or other elements, fish breeding, cosmetics products -such as emollient, emulsifier, soothing (from shellfishes and herrings) ones-, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment

Livestock



Scarce effort in creating a comprehensive value chain, and diversifying products towards fresh and non-fresh meet, stuffed meat, leather products, alternative forages, biogas,


Vegetables

Scarce effort in creating a comprehensive value chain, and diversifying or specialising products, mainly organic products, such as fresh vegetables, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste

Potatoes Scarce effort in creating a comprehensive value chain, and diversifying products, mainly organic products.

Timber

Scarce effort in creating a comprehensive value chain, and diversifying products towards timber value chain: wood processing chipboards, furniture, home accessories, wood art and crafts, sawmill waste recycling, joinery services, sharpening tools, etc.


Lake Baikal



Scarce effort in creating a comprehensive value chain, and diversifying products towards lake tourism: sport tourism and fishing, boat constructions and maintenance


46

Innovation Innovative Initiatives Little innovative enterprise activity

Lack of opportunities for stimulus to innovate Scarce research

Labour market

Services to promote employment and social support to the unemployed citizens

Lack of analysis, forecasting and monitoring of the labour market in order to align the education offer with the needs of the labour market

Lack of development of vocational training, retraining and improvement of professional skill of the staff at work.

Services


Lack of information about business opportunities Lack of awareness about local potential



Support to SME

Lack of technical assistance Lack of support to business networking Lack of commercial support

Finance Weak financial

instruments Lack of capital for development, accompanied by problems in obtaining bank loans: high interest rates, lack of collateral


Capacity building Entrepreneurial skills Lack of entrepreneurial talent scouting Not adequate dissemination of entrepreneurial culture in schools and universities

Professional skills Lack of development of vocational training, retraining and improvement of professional skill of the staff at work

47

7 Strategic guidelines: preliminary suggestions

Strategic development guidelines shall be developed, provided more information will be available either on the competitive resources, and for the main development obstacles for each analysed area.

According to the available information a very preliminary strategic guidelines framework is drafted as it follows.

Nevertheless it should be considered as a starting point, on which build more consistent strategic development guidelines, through gathering the adequate information, as it follows from the recommendation provided by the Mr. Canzanelli report chapter 5.

(http://www.ilsleda.org/usr_files/activities_national/report_canzanel_613355.pdf)

7.1 Strategic guidelines for Angarsk 7.1.1 Governance

The general problems and obstacles for improving the territorial governance are, according to the tables of the chapter 3:

Facilitating the construction of the needed infrastructure: Weak development of public engineering, transport and social) infrastructure, and lack of public-private mechanisms.

Creating a positive investment image: Lack of capacity in elaborating a good territorial marketing strategy, and lack of a territorial brand.


i) Establishing a Angarsk Development Forum (ADF), with the participation of the public and private sectors, and the aim of sharing development strategies, coordinating actions for its implementation, and raising federal and international funds, mainly for transportations, and economic infrastructures (greenhouses, equipped industrial areas, tourism infrastructure, etc.)

ii) Establishing a Territorial Marketing Strategy and network, through a territorial focus group, which defines the regional personality and the regional image, and the regional marketing communication tools.

iii) Defining the Angarsk Brand (ANBR), in accordance to the marketing strategy. The ANBR is delivered to enterprises and organisation, which accomplish defined criteria and indicators. Inspectors are trained for checking and monitoring the respect of the abovementioned criteria and indicators. The enterprises pay for obtaining the ANBR label for their product oar services.




Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: Berries; Potatoes; Horticulture; Natural resources, such as water and sand; and Lake (Baikal) and Cultural Tourism.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for berries: creating a comprehensive value chain, and diversifying products towards fresh fruits, preserved products, frozen, juices and compotes, cosmetics, heath products, and green houses; for potatoes: creating a comprehensive value chain, and diversified and specialised products; for horticulture: creating a comprehensive value chain,

http://www.ilsleda.org/usr_files/activities_national/report_canzanel_613355.pdf

48

including producing new types of fresh vegetables, products preserved in vinegar or other elements, frozen, juices and compotes products, cosmetics, heath products, biogas from solid waste; for water: creating a comprehensive value chain, and diversified products, such as water diversified industry, small energy local plants, etc., for sand: scarce effort in creating a comprehensive value chain, and diversified products.

Scarce effort for promoting and valorising tourism resources, with particular reference to Balkai lake tourism: multiplying the business opportunities through sport tourism and fishing, boat constructions and maintenance, etc.; and to the traditional village tourism: village Hospitality houses (Spread Tourism), arts& crafts, traditional cuisine, etc.; improving infrastructure, organising big events, and the territorial promotion.

Deficit in transportation: deficit in public transportation, and commercial transportation.

Deficit in Infrastructures: greenhouses, equipped industrial areas, and tourism infrastructure.




iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular fresh fruits, preserved products, frozen, juices and compotes, cosmetics, heath products, and green houses for berries; new diversified and specialised products for potatoes; new types of fresh vegetables, products preserved in vinegar or other stuff, frozen, juices and compotes products, cosmetics, heath products, biogas from solid waste for horticulture; new products such as water diversified industry, small energy local plants, for the water value chain; diversifying products related to the sand value chain.

iv) Strengthening the tourism value chain, through creating new businesses for completing it, such as sport tourism and fishing, tourism infrastructure, boat constructions and maintenance for the lake tourism; village hospitality houses (spread tourism), arts& crafts, traditional cuisine, for the traditional village tourism; realising big events (i.e. Lights on the Lake International Festival), and a district tourism promotion agency.

7.1.3 Green economy

The general problems and obstacles for reducing pollution and establishing a good waste management are, according to the tables of the chapter 3:

Weakness in reducing pollution and establishing a good waste management: scarce attention to environment issues, risk of flow of pollutants into water bodies and streams, groundwater, and unauthorised waste storage; lack of waste treatment facilities; no general scheme of sanitary purification of territory; lack of sensitisation and formation of the ecological culture of the population.


i) Realising an Environment Monitoring Unit.

ii) Realising an annual school and university campaign on environmental risks and opportunities, and waste management.

iii) Delivering public regulations on environment with more penalties for pollutants.

iv) Promoting and supporting the creation of businesses in the field of waste recycling.

7.1.4 Innovation

49

The general problems and obstacles for favouring local innovative initiatives is, according to the tables of the chapter 3:

Lack of innovative businesses and investment: lack in technical re-equipment, modernization of industrial organizations, and introduction of modern technologies; lack of relationships among innovators; participation to international innovation environments, lack of incentives.


i) Realising an annual award for the best innovative entrepreneurial ideas, which delivers monetary awards to 3-5 best innovations at local level, for favouring their implementation.

ii) Realising an agreement with the regional administration, and the regional research centers, for realising researches correspondent to the local resources value chains needs; and a technology transfer center.

iii) Creating a virtual incubator for new businesses.

7.1.5 Services


Scarce information services: lack of information to SME and agriculture activities; lack of awareness on economic potential and local resources; lack of information about business opportunities.

Weak support to the creation of new businesses: scarce services for business start up; weak financial support to new entrepreneurs, mainly for young people and women.


Bureaucracy: long waiting period for administrative business procedures.


i) Establishing One-stop-Angarks-service center (ONASC), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, commercial support) mainly to small and medium businesses, to local NGO, and to the population willing to exploit the economic local potential.

ii) Establishing a monitoring group for assessing the waiting period for administrative business procedures.

7.1.6 Labour market

The general problem and obstacles for realising an adequate labour market strategy are, according to the tables of the chapter 3:

Re-vitalisation labour market: lack of a labour market observatory; deficit in trainings and educational seminars for beginner entrepreneurs; deficit in professional skills trainings


i) Establishing an Angarsk Labour Market Observatory (ALMO), a proactive entity, which collects information about the labour demand and supply, disseminates it, and facilitates their matching, through orientating the programs for professional skills, the unemployed people for their job research, and the enterprises and other organisations for satisfying their manpower needs.

ii) Implementing a professional skill-training program on the economic activities, which represent the development potential.

50

7.1.7 Finance

The general problem and obstacles for realising adequate financial instruments to stimulate and support the businesses are, according to the tables of the chapter 3:

Weak financial instruments to stimulate and support the businesses: lack of capital for development, accompanied by problems in obtaining bank loans: high interest rates, lack of collateral; scarce use of state credit facilities


i) Establishing a Territorial Guarantee Fund, which can provide collaterals to existing businesses or new business ideas that do not have sufficient collaterals to offer to the banks. At this aim it is important to utilise the international experience. This can be achieved through an agreement with an important financial institution, and the support of the regional Government.

7.1.8 Capacity Building

The general problem and obstacles for realising adequate a multipurpose capacity building are, according to the tables of the chapter 3.

Improvement of entrepreneurial skills: lack of entrepreneurial talent scouting; Scarce dissemination of entrepreneurial culture in schools and universities.

Improvement of professional skills: not adequate capacity of existing structures; insufficient training of trainers.


i) Implementing the program “BGO”: Business is a Good Opportunity”, for exposing the student of high schools and universities to the local and not local business success experience, and stimulating entrepreneurship.

ii) Realising of a professional skill-training program on the economic activities, which represent the development potential, possibly through a Vocational Center.

7.2 Strategic guidelines for Kuitun

7.2.1 Governance


Weak relationships between the various levels of local administration: inefficient communication system between the executive authorities, local government and the private sector in order to elaborate and implement major territorial project; lack of capacity in raising funds from the regional and federal budgets for the construction and repair of roads, and the beautification of the villages; difficulties in the provision of land for rent or ownership, and registration procedures.

Lack of participatory planning: scarce cooperation between the municipalities and the executive regional authorities, the federal bodies, and local authorities; lack of annual monitoring analysis on progress made in implementing the Program.

Regulatory framework supporting businesses: imperfection of the legal and regulatory framework; complications and high cost of obtaining the license, certification and standardization of individual types of goods and services; lack of enterprise on the public procurement, and clear contractual relationships.

The correspondent strategic guidelines is therefore:

51

i) Establishing a Kuitun Development Pact (KuDePa), with the participation of the public and private sectors, and the aim of sharing and elaborating development strategies and plans, coordinating actions for its implementation and implementing them, carrying on district marketing strategies, and raising federal and international funds, mainly for transportations, and economic infrastructures (greenhouses, equipped industrial areas, tourism infrastructure, etc.).

ii) Realising a Joint Working Group on the Regulatory Framework with the competent Public Administration, for establishing a better regulatory framework with the aim of facilitating the business operations: license cost, certification and standardization, inclusion of the local enterprises in the local procurements, etc.




Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: Livestock; Dairy; Timber; Forestry Fruit; Beekeeping; and Natural Tourism.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock: producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas, for dairy: producing new dairy products, health and cosmetics goods; for timber: producing new types of wood processing chipboards, furniture, home accessories, wood art and crafts, sawmill waste recycling, joinery services, sharpening tools, etc; for forestry fruits: fresh fruit, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste; for beekeeping: producing royal jelly, pollen, propolis, bee poison, mead, bee wax, cosmetic products, construction of beekeeping tools and equipment.

Scarce effort for promoting and valorising tourism resources, with particular reference to natural uncontaminated and diversified resources, through developing hunting, fishing, weekend hiking trails to lakes and rivers, through the involvement of local population, and a good promotional strategy.

Deficit in Infrastructures: greenhouses, tourism infrastructure, and equipped industrial areas.

Lack of forage and of rehabilitation of pastures.




iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock; new dairy products, and health and cosmetics goods for dairy; producing new types of wood processing chipboards, furniture, home accessories, wood art and crafts, sawmill waste recycling, joinery services, sharpening tools for the timber industry; fresh fruit, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste; fresh fruit, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste for forest fruits; royal jelly, pollen, propolis, bee poison, mead, bee wax, cosmetic products, construction of beekeeping tools and equipment for beekeeping.

52

iv) Strengthening the tourism value chain, through creating new businesses for completing it, such as hospitality and entertainment infrastructure, organising hunting, fishing, and weekend hiking trails to lakes and rivers trials; realising big events (i.e. Kuitun Wild Waters Games), and a district tourism info center.

7.2.3 Green economy

The general problems and obstacles for improving environment management are according to the tables of the chapter 3:

Weakness in water management: low quality and quantity of water and heating settlements; scarce capacities in the construction and reparation of water supply networks, and reparation of wells and water towers.

Weakness in waste management: scarce attention to environment issues; lack of support to the creation of business in the field of renewable energy form waste; lack of capacity in the collection of household waste and dead animals, and recycling; lack of sensitisation and formation of the ecological culture of the population.


i) Realising annual school and university campaigns on environmental risks and opportunities, and waste and energy management.

ii) Promoting and supporting the creation of business in the field of renewable energy from waste, and waste recycling.

iii) Creating a water management center for monitoring the water supply, and intervening when necessary, with the participation of the population and the local administrations.

7.2.4 Innovation

The general problems and obstacles for stimulating innovative entrepreneurship are, according to the tables of the chapter 3:

Weak innovative entrepreneurship: little innovative enterprise activity; lack of stimulus to innovate; lack of advanced technologies in agriculture; absence of dissemination of best innovative practices.


i) Creating an Innovation Fund, for incentivising business innovation.

ii) Establishing agreements with regional research centres for reinforcing investigations for innovations in the priority economic sectors and value chains of the area.

iii) Realising an annual award for the best innovative entrepreneurial ideas, which delivers monetary awards to 3-5 best innovations at local level, for favouring their implementation.

7.2.5 Services





53


i) Establishing a Kuitun Economic Service Unit (KESU), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, commercialization) mainly to small and medium businesses, to local NGO, to the population willing to exploit the economic local potential.

7.2.6 Labour market


Weak labour demand-supply matching: unbalance labour supply and demand; out-dated and overloaded contents of schooling that does not correspond to modern requirements; lack of qualified specialists in the fields of economics, finance and law.


i) Establishing a Territorial Labour Market Observatory, a proactive entity, which collects information about the labour demand and supply, disseminates it, and facilitates their matching, through orientating the programs for professional skills, the unemployed people for their job research, and the enterprises and other organisations for satisfying their manpower needs.

ii) Realising of a professional skill-training program on the economic activities, which represent the development potential.

7.2.7 Finance


Weak financial support to businesses: lack of capital for development, accompanied by problems in obtaining bank loans: high interest rates, lack of collateral; scarce use of state credit facilities.





Improvement of entrepreneurial skills: lack of entrepreneurial talent scouting; scarce dissemination of entrepreneurial culture in schools and universities.

Improvement of professional skills: not adequate capacity of existing structures; insufficient training of trainers.



ii) Realising of a professional skill-training program on the economic activities, which represent the development potential, possibly through a Vocational Center.

7.3 Strategic guidelines for Buryatia

7.3.1 Governance

54

The general problems and obstacles for creating comfortable conditions for business are, according to the tables of the chapter 3:

Lack of creation of comfortable conditions for business: no conditions for the formation of the infrastructure for SME; creation of new jobs; increase in self-employment; weak financial-credit and investment mechanisms for the formation of small business; weak financial-credit and investment mechanisms for the formation of small business.


i) Establishing of a participatory business promotion unit (BPU) with the participation of the public and private sectors, and the aim of creating comfortable conditions for business, carrying on assessment and monitoring of business service demand and supply, district marketing strategies, stimulating business networks and value chains.




Scarce effort in defining the resources competitive advantage: regarding the most important local resources, such as: Livestock; Fishery, Timber industry, Potatoes, Vegetables; Lake Baikal Tourism.

Scarce effort in creating comprehensive value chains, improving the existing businesses, and diversifying products: in particular for livestock: producing new products such as fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas; for potatoes: producing new and diversified products, mainly organic products; for fishing: producing fresh fishes and products preserved in salt, oil or other stuff, fish breeding, cosmetics products, such as emollient, emulsifier, soothing (from shellfishes and herrings) ones, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment; for timber industry: producing wood processing chipboards, furniture, home accessories, wood art and crafts, sawmill waste recycling, joinery services, sharpening tools, for vegetables: producing fresh vegetables, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste.

Scarce effort for promoting and valorising tourism resources, with particular reference to the Lake Baikal tourism: deficit in business relationships, tourism infrastructure, new activities and businesses in sport tourism and fishing, boat constructions and maintenance; big events, and promotion.




iii) Promoting and sustaining new businesses in the prioritised value chains, and in particular fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas for livestock; producing new and diversified products, mainly organic products for potatoes; producing fresh fishes and products preserved in salt, oil or other stuff, fish breeding, cosmetics products, such as emollient, emulsifier, soothing (from shellfishes and herrings) ones, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment for fishing; producing wood processing chipboards, furniture, home accessories, wood art and crafts, sawmill waste recycling, joinery services, sharpening tools, for timber industry; producing fresh vegetables, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste for vegetables.

55

iv) Strengthening the tourism value chain, through creating new businesses for completing it, such as sport tourism, tourism infrastructure, fishing equipment and products, boat constructions and maintenance realising the necessary infrastructure, and big events (i.e. Timber Festival), a Buryatia tourism board.

7.3.3 Innovation

The general problems and obstacles for stimulating and supporting innovative initiatives are, according to the tables of chapter 3:

Lack of Innovative Initiatives: little innovative enterprise activity; lack of opportunities for stimulus to innovate; scarce research.


i) Establishing a coordination among universities and research centres, such as the Buryatia State University, the Buryatia Agriculture State Academy, the East Siberian Art and Culture Academy, and the East Siberian Technological Institute with the aim of joint or connected actions and researches about the Buriata best resources, for improving their competitiveness.

ii) Realising an annual award for the best innovative entrepreneurial ideas, which delivers monetary awards to 3-5 best innovations at local level, for favouring their implementation.

7.3.4 Services






i) Establishing a Buryatia Economic Service Center (BESC), that coordinates existing services and establishes new ones, with the aim of offering a comprehensive support (information, technical assistance, creation of new businesses, commercialization) mainly to small and medium businesses, to local NGO, to the population willing to exploit the economic local potential.

7.3.5 Labour market


Weak services to promote employment and social support to the unemployed citizens: lack of analysis, forecasting and monitoring of the labour market in order to align the education offer with the needs of the labour market; lack of development of vocational training, retraining and improvement of professional skill of the staff at work.


i) Establishing a Buryatia Labour Market Observatory (BuLMO), a proactive entity, which collects information about the labour demand and supply, disseminates it, and facilitates their matching, through orientating the programs for professional skills, the unemployed people for their job research, and the enterprises and other organisations for satisfying their manpower needs.

56

ii) Establishing a vocational center for professional skill training program on the economic activities, which represent the development potential, through agreement with the local universities

7.3.6 Finance


Weak financial support to businesses: lack of capital for development, accompanied by problems in obtaining bank loans: high interest rates, lack of collateral; scarce use of state credit facilities.





Improvement of entrepreneurial skills: lack of entrepreneurial talent scouting; scarce dissemination of entrepreneurial culture in schools and universities.

Improvement of professional skills: lack of development of vocational training, retraining and improvement of professional skill of the staff at work.



ii) Realising of a professional skill-training program on the economic activities, which represent the development potential, possibly through a Vocational Center with the University.

57

8 Conclusion and recommendations

8.1 Summary of strategic areas and development strategic guidelines

Tables 18, 19, and 20 summarise the development strategic guidelines for Angarsk, Kuitun, and Buratia.

Table 18: Strategic guidelines recommended for economic development of Angarsk


Angarsk Development Forum (ADF) Territorial Marketing Strategy and network

Governance Regional brand (REBR)


Berries Fresh fruits, preserved products, frozen, juices and compotes, cosmetics, heath products, and green houses

Potatoes Comprehensive value chain, and diversified and specialised products

Horticulture New types of fresh vegetables, products preserved in vinegar or other stuff, frozen, juices and compotes products, cosmetics, heath products, biogas from solid waste, packaging

Water Water diversified industry, small energy local plants, etc.

Sand Diversified products

Balkai Lake tourism Sport tourism and fishing, tourism infrastructure, boat constructions and maintenance, etc.

Traditional Village Tourism

Village hospitality houses (spread tourism), arts& crafts, traditional cuisine


Lights on the Lake International Festival Tourism Agency

Green Economy Environment Monitoring Unit Annual school and university campaign

Public regulations on environment Businesses in the field of waste recycling

Innovation Virtual incubator

Agreement with the regional administration, and the regional research centers for a Technology Transfer Center

Annual award for the best innovative entrepreneurial idea

Services Monitoring services demand and supply One-stop-Angarks-service center (ONASC)

Labour Market Angarsk Labour Market Observatory (ALMO)

Professional skill training program

Finance Territorial Guarantee Fund

Labour Market Angarsk Labour Market Observatory (ALMO) Professional skill training

Capacity Building Program “BGO”: Business is a Good Opportunity Professional skill training program through a Vocational Center

58

Table 19: Strategic guidelines recommended for economic development of Kuitun


Governance Kuitun Development Pact (KuDePa), Joint Working Group on the Regulatory Framework




Forestry Fruits Fresh fruit, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste.

Beekeeping Royal jelly, pollen, propolis, bee poison, mead, bee wax, cosmetic products, construction of beekeeping tools and equipment

Tourism Hospitality and entertainment infrastructure, organising hunting, fishing, and weekend hiking trails to lakes and rivers trials


Tourism Info Center Kuitun Wild Waters Games

Green Economy Water management center New business in the field of renewable energy from waste


Innovation Annual award for the best innovative entrepreneurial ideas

Innovation Fund Agreement with regional research centres

Services Kuitun Economic Service Unit (KESU)

Labour Market Territorial Labour Market Observatory Professional skill training Program


Capacity Building

Program “BGO”: Business is a Good Opportunity Professional skill training program through a Vocational Center

59

Table 20: Strategic guidelines recommended for economic development of Buryatia


Governance Participatory business promotion unit (BPU)


Livestock Fresh and non-fresh meet, stuffed meat, leather products, alternative forages, and biogas

Dairy

Milk and all the dairy products, health and cosmetics goods

Fishing

Fresh fishes and products preserved in salt, oil or other elements, fish breeding, cosmetics products -such as emollient, emulsifier, soothing (from shellfishes and herrings) ones-, fish glue, fish pulp, boats and nets construction and maintenance, realisation of fishing equipment.

Potatoes New and diversified products, mainly organic products

Timber Wood processing chipboards, furniture, home accessories, wood art and crafts, sawmill waste recycling, joinery services, sharpening tools

Vegetables Fresh vegetables, preserved, frozen, and dry products, packaging, juices and compotes products, cosmetics, heath products, biogas from solid waste

Lake Tourism Sport tourism, tourism infrastructure, fishing equipment and products, boat constructions and maintenance



Timber Festival

Buryatia tourism board Tourism infrastructure

Innovation

Annual award for the best innovative entrepreneurial ideas

Coordination among universities and research centres, such as the Buryatia State University, the Buryatia Agriculture State Academy, the East Siberian Art and Culture Academy, and the East Siberian Technological Institute

Services Buryatia Economic Service Center (BESC)

Labour Market Buryatia Labour Market Observatory (BuLMO)

Vocational center for professional skill training


Capacity Building Program “BGO”: Business is a Good Opportunity Professional skill training program through a Vocational Center

8.2 Project ideas for economic development

The following table 21 indicates some project ideas for economic development, whose approximate cost range between 5,000 and 30,000 Euros, and they are categorized in the following way:

5,000-10,000 Euro: Category A

10,000-20,000 Euro : Category B

20,000-30,000 Euro : Category C

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Table 21: Project ideas for each analysed territory

Strategic area Strategic guidelines Project ideas Category

Angarks Governance Territorial Marketing

Regional brand (REBR) Realisation of the Regional Brand B

Governance Angarsk Development Forum (ADF) Feasibility and start-up of DEPA B


Berries 1 business idea (i.e. juices and compotes) B

Potatoes 1 business idea (i.e. packaging) B

Horticulture Green house B

Water 1 business idea (i.e. small energy local plants) C


Tourism 1 business idea (i.e. Boat Cosntruction) A

Green Economy



B



A

Innovation Annual award for the best innovative entrepreneurial idea

Award for the best innovative entrepreneurial idea

A

Labour Market Angarsk Labour Market Observatory (ALMO) Feasibility and start-up of ALMO A

Services One-stop-Angarks-service center (ONASC) ONASC Feasibility B

Kuitun

Governance Kuitun Development Pact (KuDePa), Feasibility and start-up of KuDePa A



B


Forest Fruit 1 business ideas (i.e. Preserved vegetables) A

Beekeeping 1 business idea (i.e. wax and propolis)


Tourism Tourism Info Center C

District Cultural House Implementation of the District Cultural House B

Green Economy



B



A

Innovation Annual award for the best innovative entrepreneurial ideas

Delivery 1st award A

Services

Monitoring about the demand and supply of services


B

Kuitun Economic Service Unit (KESU) KESU Feasibility B

Labour Market Kuitun Labour Market Observatory KuLMO)

Feasibility and start-up of KuLMO B

Capacity Building Professional skill training program through a Vocational Center

1st program for vocational training on beekeeping

A

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Buryatia

Governance Participatory business promotion unit (BPU

Feasibility Study A



B


Fishing 1 business idea (i.e. Fishing equipment) B

Potatoes 1 business idea (i.e. E-Commerce) A

Timber 1 business idea (i.e. Home accessories) B

Vegetable 1 business idea (i.e. Dry products) B

Tourism 1 business idea (i.e. Fishing equipment) B


Timber Festival Feasibility and promotion of the A

Innovation Coordination among universities and research centres

Identification of common action lines A

Services Buryatia Economic Service Center (BESC)

BESC Feasibility C

Labour Market Buratia Labour Market Observatory (BULMO)

BuLMO feasibility Study B

Capacity Builidng Vocational center for professional skill training

1st program for vocational training on timber industry

62

8.3 Follow up and warning

This paper has provided a preliminary assessment on economic development strategic guidelines and correspondent project ideas for 7 territorial areas:

i) Angarsk

ii) Kuitun

iii) Buratia

These strategic guidelines refer to strategic critical areas, as they came out by a previous exercise the BLAGO project carried on, providing territorial profiles.

These strategic critical areas are:

a) Governance



d) Green economy

e) Entrepreneurship

f) Innovation



i) Labour market


The strategic guidelines and the correspondent project ideas have to be considered purely indicative and a useful reference for the real exercise, that should be carried on through the appropriate methodology, like the RESCO one, as it was provided during the BLAGO project November training sessions.

It is, therefore, recommended to carry out the participatory analysis of the local economic competitive and sustainable potential, and the assessment of the obstacles to their full valorisation.

At the time of the elaboration of the strategic guidelines, this paper could be helpful as reference and indications.

63

Index of the tables second part

Table 15: Strategic critical areas, priorities, and main obstacles for the Angarsk area pag. 41

Table 16: Strategic critical areas, priorities, and main obstacles for the Kuitun area pag. 43

Table 17: Strategic critical areas, priorities, and main obstacles for the Buryatia area pag. 45

Table 18 Strategic guidelines recommended for economic development of Angarsk area pag. 57

Table 19: Strategic guidelines recommended for economic development of the Kuitun area pag. 58

Table 20: Strategic guidelines recommended for economic development of the Buryatia area pag. 59

Table 21: Project ideas for each analysed territory pag. 62

«blago - bettering livelihood of vulnerable and low income ... · giancarlo canzanelli january...

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