The historical associations of Siberia are not the most positive: an inhospitable climate; an unending taiga; tsarist prison camps; communist gulags. The expression "Siberian labor camp" is almost a tautology.

The region's wealth of oil, gas and timber has only slightly improved its image in the post-Soviet world, to the point where economically, it is seen merely as a warehouse of natural resources.

Siberia's image problem was a major topic of discussion at the ninth Krasnoyarsk Economic Forum on Feb. 16-18, with several participants and attendees addressing the issue, as well as a pamphlet distributed there, fittingly called, "Siberia: The Mega- Region's Image." Leonid Babichev, the general director of a scrap metal company, wrote in the pamphlet that Siberians are still considered "some type of wild people, living next to rich natural deposits," and appealed for a change to this view.

Rising prestige, local focus

The increasing prominence of the forum may itself be part of an answer to Babichev's plea. Year by year, it has been growing into a major national event for the business and political establishments, the brief appearance this year of Prime Minister Vladimir Putin reinforcing its rising status. Putin chaired a session on the Agency for Strategic Initiatives, a new venture investment development agency created under federal government auspices. Finance Minister Anton Siluanov and Viktor Tolokonsky, the presidential envoy to the Siberian Federal District, were also in attendance.

For many, however, the forum retains its local focus, a great opportunity to examine more closely this huge and still mysterious region, the largest in Russia: including what is today considered the Russian Far East, Siberia comprises nearly 75 percent of the nation's territory. The local element was reflected in the session "Siberia in Geopolitical and Economic Space." Chaired by Krasnoyarsk region Governor Lev Kuznetsov, it brought together a wide range of speakers from government and business, and aimed to identify new priorities for Siberia and the Far East.

Human capital, internal direction

One of the main discussions at this session centered on the concern of contemporary Siberians that their economy not be directed from the outside. For Kuznetsov, the attention to natural resources and the inattention to human capital have contributed to a population drain, and need to be corrected for any redirection to be possible. "A human being is the basis of every [economic] strategy," Kuznetsov said in his opening remarks. "We face a demographic challenge, and it's a simple question of how many of us are here."

Despite the vast size of the territory, Siberia and the Far East are home to just about 30 million people, and over the past decade have seen about 1 million in their potential workforce leave for European Russia. The low population density impedes the development of small businesses. As Roman Boltov, head of the small entrepreneurship division of the Krasnoyarsk regional government, told The Moscow News, "Many think that the effectiveness of [small] business in Siberia is questionable, as the density of the population is so low. So investment is not coming."

To offset the weak investment in small businesses, the city of Krasnoyarsk is doing its best to build a Moscow-style consumer infrastructure by attracting major brands to the city, as in other millionniki­Russian cities with populations of 1 million and above. Krasnoyarsk made progress by signing two contracts at the forum, with France's Auchan and Germany's Metro Cash and Carry supermarkets. Additionally, on Feb. 7, French home appliance and furniture Krasnoyarsk as viewed from a helicopter chain Leroy Merlin opened an outlet at a mall in the city.

Environmental harm

Still, the emphasis in the Siberian economy remains on natural resources, with potentially harmful environmental and cultural impacts, especially as the focus moves north from existing, gradually shrinking fields. "We've got to save our forests!" a man in the audience shouted, continuing at a microphone: "Living here for many people means being close to nature, not only natural resources. They live by gathering, fishing, hunting. And if trees are gone, then mushrooms are gone, and these people are gone, too." Attendees and participants at the forum also worried about rotation workers coming into Siberia for a few months at a remote oilfield, then taking their salaries home with them when their rotations end. Alexander Uss, head of the Krasnoyarsk region legislative assembly, emphasized that this was "dangerous for the region's demography."

Broader links

By contrast with the external interests in Siberia, concerns voiced at the forum focused on issues similar to those discussed in regions closer to the center: ecology, culture and education, as well as Siberia's image. Vladislav Inozemtsev, director of the Moscowbased Postindustrial Society Institute, suggested that the region's international economic direction, as well as its domestic industrial direction, may be short-sighted. Instead of links with resource-hungry Asian countries, especially China, he recommended broadening ties throughout the Arctic region and throughout Asia-Pacific Economic Cooperation, the leaders of whose member states are scheduled to meet in Vladivostok in September.

Natural and historical obstacles to entrepreneurship and sustainable economic development in Siberia are many, as the forum demonstrated. The discussions, however, showed that ideas for solutions are present, even if they may be achieved only with difficulty. If the forum's own progress and growing status in Russia are any indication, however, Siberia has started to meet its challenges.

Keywords: Russia, Regions - Russia News - Russia

The historical associations of Siberia are not the most positive: an inhospitable climate; an unending taiga; tsarist prison camps; communist gulags. The expression "Siberian labor camp" is almost a tautology.

The region's wealth of oil, gas and timber has only slightly improved its image in the post-Soviet world, to the point where economically, it is seen merely as a warehouse of natural resources.

Siberia's image problem was a major topic of discussion at the ninth Krasnoyarsk Economic Forum on Feb. 16-18, with several participants and attendees addressing the issue, as well as a pamphlet distributed there, fittingly called, "Siberia: The Mega- Region's Image." Leonid Babichev, the general director of a scrap metal company, wrote in the pamphlet that Siberians are still considered "some type of wild people, living next to rich natural deposits," and appealed for a change to this view.

Rising prestige, local focus

The increasing prominence of the forum may itself be part of an answer to Babichev's plea. Year by year, it has been growing into a major national event for the business and political establishments, the brief appearance this year of Prime Minister Vladimir Putin reinforcing its rising status. Putin chaired a session on the Agency for Strategic Initiatives, a new venture investment development agency created under federal government auspices. Finance Minister Anton Siluanov and Viktor Tolokonsky, the presidential envoy to the Siberian Federal District, were also in attendance.

For many, however, the forum retains its local focus, a great opportunity to examine more closely this huge and still mysterious region, the largest in Russia: including what is today considered the Russian Far East, Siberia comprises nearly 75 percent of the nation's territory. The local element was reflected in the session "Siberia in Geopolitical and Economic Space." Chaired by Krasnoyarsk region Governor Lev Kuznetsov, it brought together a wide range of speakers from government and business, and aimed to identify new priorities for Siberia and the Far East.

Human capital, internal direction

One of the main discussions at this session centered on the concern of contemporary Siberians that their economy not be directed from the outside. For Kuznetsov, the attention to natural resources and the inattention to human capital have contributed to a population drain, and need to be corrected for any redirection to be possible. "A human being is the basis of every [economic] strategy," Kuznetsov said in his opening remarks. "We face a demographic challenge, and it's a simple question of how many of us are here."

Despite the vast size of the territory, Siberia and the Far East are home to just about 30 million people, and over the past decade have seen about 1 million in their potential workforce leave for European Russia. The low population density impedes the development of small businesses. As Roman Boltov, head of the small entrepreneurship division of the Krasnoyarsk regional government, told The Moscow News, "Many think that the effectiveness of [small] business in Siberia is questionable, as the density of the population is so low. So investment is not coming."

To offset the weak investment in small businesses, the city of Krasnoyarsk is doing its best to build a Moscow-style consumer infrastructure by attracting major brands to the city, as in other millionniki­Russian cities with populations of 1 million and above. Krasnoyarsk made progress by signing two contracts at the forum, with France's Auchan and Germany's Metro Cash and Carry supermarkets. Additionally, on Feb. 7, French home appliance and furniture Krasnoyarsk as viewed from a helicopter chain Leroy Merlin opened an outlet at a mall in the city.

Environmental harm

Still, the emphasis in the Siberian economy remains on natural resources, with potentially harmful environmental and cultural impacts, especially as the focus moves north from existing, gradually shrinking fields. "We've got to save our forests!" a man in the audience shouted, continuing at a microphone: "Living here for many people means being close to nature, not only natural resources. They live by gathering, fishing, hunting. And if trees are gone, then mushrooms are gone, and these people are gone, too." Attendees and participants at the forum also worried about rotation workers coming into Siberia for a few months at a remote oilfield, then taking their salaries home with them when their rotations end. Alexander Uss, head of the Krasnoyarsk region legislative assembly, emphasized that this was "dangerous for the region's demography."

Broader links

By contrast with the external interests in Siberia, concerns voiced at the forum focused on issues similar to those discussed in regions closer to the center: ecology, culture and education, as well as Siberia's image. Vladislav Inozemtsev, director of the Moscowbased Postindustrial Society Institute, suggested that the region's international economic direction, as well as its domestic industrial direction, may be short-sighted. Instead of links with resource-hungry Asian countries, especially China, he recommended broadening ties throughout the Arctic region and throughout Asia-Pacific Economic Cooperation, the leaders of whose member states are scheduled to meet in Vladivostok in September.

Natural and historical obstacles to entrepreneurship and sustainable economic development in Siberia are many, as the forum demonstrated. The discussions, however, showed that ideas for solutions are present, even if they may be achieved only with difficulty. If the forum's own progress and growing status in Russia are any indication, however, Siberia has started to meet its challenges.