ICG: Russia allotted 28,000 US dollars per resident of South Ossetia

After the August conflict of 2008, the whole economy of South Ossetia had to reorient towards Russia. The Russian Federation had allocated 840 million US dollars (26 billion roubles) to the breakaway republic; however, the economy, which should have consumed the money, shows no recovery. This was the conclusion of the international NGO named "The International Crisis Group" (ICG).

The report of this NGO has the title: "Burden of Recognition".

The report notes that about 20,000 ethnic Georgian had to leave South Ossetia when on August 10, 2008, Russian and South-Ossetian troops and militia entered Georgian villages. Only 2500 Georgians living in the most distant from Tskhinvali the Akhalgori (called Leningori in South Ossetia) District, and several hundreds of other persons, mainly from mixed Ossetian-Georgian families, living in the Znauri and Dzhava Districts, stayed in their villages.

The most accurate calculations show that as of today the region is inhabited by about 30,000 persons: 17,000 in Tskhinvali and several thousands in Dzhava, Znauri, Dmenisi and Akhalgori each; while the mountainous villages of South Ossetia have almost no population, as evidenced by the study of the above international organization.

Residents of South Ossetia prefer to receive medical aid outside their republic. However, as noted by the ICG's experts, after the war Georgian medicine is inaccessible, while in the territory of Russia free-of-charge medical aid is accessible only for those, who have internal Russian passport with registration.

Russia has already spent 840 million US dollars (26 billion Russian roubles) on restoration of the economy of South Ossetia, that is, about 28,000 dollars per resident. In its turn, during the same period, the West has provided Georgia with 4.5 billion US dollars for the same restoration purpose, that is 1200 US dollars per resident of Georgia, including forced migrants from South Ossetia, as the "Novaya Gazeta" quotes the ICG report.

Experts of this international organization note that South Ossetia is a traditionally agricultural region; however, after exit of Georgian farmers their fields and vineyards are in full desolation. Other arable lands are in state ownership, which prevents proper development. The home market is underdeveloped; the local agrarian industry satisfies it by no more than 20 percent. Export of such fruits as apples and peaches to Russia is not profitable because of high customs dues.

The huge inflow of Russian military men and builders into the region has provoked only a post-war boom of private cafes, while other businesses restore extremely slowly.

As of today, 385 administrative buildings have been restored, as well as schools, kindergartens and the Tskhinvali hospital. The sector of private houses is still in ruins.