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An Economic Thaw Beneath the Permafrost?


Article # : 15984 

Section : CURRENT ISSUES
Issue Date : 7 / 1989  2,546 Words
Author : Shiro Shimamura
Shiro Shimamura is a fellow of the Nomura Research Institute in Japan.

       In July 1987, General Secretary Mikhail Gorbachev and the Party Policy Bureau announced the extremely ambitious Far East Development Plan. The first stage of the plan--to be completed by the year 2000--is a nationwide project, indicating that Gorbachev has stressed the importance of the Far Eastern region.
       
        The plan holds such weight that the total investment is scheduled to top 232 billion rubles. This figure is twice the amount thrown into the region in the last 15 years. And the plan emphasizes machine industries and production output increases of 3.9 times by the end of the year 2000.
       
        Why are the Soviets promoting the Far East?
       
        First, to date, the economy in the Eastern region has been supported by numerous materials from Western Siberia and the European area. The cost of transporting materials from the European region is so enormous that Siberia must develop independently to relieve the European region of its economic burden.
       
        The second reason is that the natural resources of the Far East need to be developed to ease the Soviet Union's economic future.
       
        Third, and not least important, the Far East area of the Soviet Union needs to be developed economically in order to strengthen the Soviet Union's economic relationship with the Pacific nations.
       
        Much, however, remains to be accomplished. Hence, a reevaluation of the plan has recently been called ... (1993 of 15567 Characters)
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