International Crisis Group – No Significant Improve of so called South Ossetian Local Conditions Despite Russia’s Help

Despite financial aid from Russia, the social conditions of the population of South Ossetia have not improved. It was concluded by the International Crisis Group which publishes report – "South Ossetia: The Burden of Recognition”.

According to the report, Russia’s aid to South Ossetia since August 2008 has been massive: 26 billion roubles ($840 million), about $28,000 for each resident. This includes rehabilitation and budgetary assistance, as well as Moscow city budget support for a large housing project and Gazprom-funded construction of gas pipelines between Russian and South Ossetia.

The reconstruction of administrative buildings, schools, kindergartens, Tskhinvali hospital and some residential areas, 385 units in all, is complete. Nevertheless, the vast majority of private houses and apartments that were damaged remain uninhabitable.

Analytics think that the project for the support of the so-called South Ossetia is doomed for failure and it will cost too expensive for Moscow. Relations between Moscow and Tskhinvali hit a low in February 2009, when Russia suspended funding after its Accounts Chamber started to study the expenditures.

The report also provides information about the current population in the so-called South Ossetia. More precisely, according to the experts, estimated 30 000 people live in the de-facto republic. 17 000 of them live in Tskhinvali while only 20 000 ethnic Georgian people lived there before the war in August of 2008. According to the International Crisis Group the number of ethnic Georgians in the region is only 2 500.

As the report reads, agricultural sector of the region is failing. Georgian farmers are gone, their fields and vineyards now wasteland. Most available land is still state owned. The process of business development is also very slow. The entrepreneurs earn average 500-1000 USD per month.

Interpresnews