Alexei Vlasov: South Ossetia fails to use Russian aid effectively

The funds allocated by Russia for the development of South Ossetia are not spent efficiently, and thus, the development rate in the republic is far from the desired. This was stated by Alexei Vlasov, Executive Director of Political Studies Centre "North-South", at the "round table" dedicated to the topic "Youth of South Ossetia: future potential of republic".

"I see that South Ossetia faces the situation similar with that in Kyrgyzstan. Russian businessmen capital allocate money, the state allocates loans, and they are often 'eaten away'," Alexei Vlasov has stated.

According to his version, the cooperation with Russia brings no desired benefits for South Ossetia.

Sergey Mikheev, Director of the Centre for Political Environment, has emphasized that South Ossetia cannot be fully independent and self-sufficient.

"The territory of the republic is small, and the population is sparse. The state lives on subsidies. We need to create living conditions to urge people not to leave the country. To some extent, population movement is inevitable; however, it should be in a reasonable scale," Sergey Mikheev believes.

During the "round table", the participants have presented the ideas for development of tourism, production in the field of light industry, and farming projects.