Economics of Abakan
Economic indices of Abakan development show that there is a positive tendency of growing production of goods and services, real income of city population, reduction of all kinds of debts.
Nowadays there are 20057 economic organizations, including 4106 commercial organizations, 15590 individual owners; at the beginning of 2000 there were 5157 economic organizations, including 3417 individuals, 1383 individual owners. It is necessary to point out that 93 % of enterprises are private, 2 % of enterprises are state, 0.8 % are municipal.
The number of big and average industrial enterprises is reduced in Abakan in 1991-2005. At the beginning of 1991 there were 39 enterprises, the number had increased till 1997 (46 enterprises), then it decreased and in 2005 there were 36 enterprises. The main reason of reduction was “crisis of 1998”, when many Russian enterprises became bankrupt (mostly this touched big enterprises).
Today the most developed industries are power engineering, machinery construction, metal industry, food industry, flour-grinding and cereals industry, mixed fodder production. The main prerequisites of the development of economic structure are following: social and economic situation not only in the region, but also in the country; natural recourses in the region; industrial infrastructure of the city; remoteness from the centre; integration with different cities and regions; quality and quantity of labour force; administrative status of the city.
According to information of territorial organ of federal service of State Statistics of Russian Economics in 2005 volume of industrial production was 5316 million roubles; on the 1st of January, 1991 – 543.7 million roubles. If we follow dynamics of the development of this index, we will see that there is a positive tendency. The exception was only in 1992-1994, this was connected with the policy of the government of the Russian Federation directed to reduction of inflation which reached the highest level. In 1992 the main consequence of such policy was a growing number of non-payments, at the end of 1993 debts grew and enterprises reduced the volume of production. Consequently autumn production was very feeble in 1993. Toughening of monetary policy, big debts from the side of the government towards enterprises (because the government ordered but didn’t pay for production) worsened financial situation of enterprises. Overdue debts to suppliers were 3 times higher than financial means of enterprises by the end of the first quarter of 1994. Economics could not bare such great financial restrictions and the answer was reduction of production.
By the end of 2005 production volume of big and average organizations was 17745.3 million roubles, the main proportion belongs to production and distribution of energy, gas and water – 27.1 %, services of transport organizations – 32.5 %, manufacturing industry – 12.3 %.
Turnover of retail trade was 8707.4 million roubles in 2005, 44.5 % was represented by trade organizations and individual businessmen who work in the stationary trade net and 55.5 % work in food, product and mixed markets; in 1991 this index was 289.8 million roubles.
It is necessary to mention that living standards are growing. There is growing income of people.
This influences social development. Nowadays there is a big net of medical and sanitary institutions: 18 hospitals, a station of first aid, 3 polyclinics, a maternity house, a house of child, 42 chemist’s and several private hospitals. There are many educational institutions: 7 higher educational establishments, 18 special secondary schools (colleges), 34 schools providing general education, 35 pre-school institutions, 12 educational centers.
Also there are several publishing houses, three television companies, 4 radio companies, several newspapers (the biggest are “Chance”, “Khakassia”. “Abakan”), a museum of local lore, a picture gallery, a palace of youth, several cinemas and theaters.
Building of living and non-living sectors is widely growing. In 2005 905 apartments (total area 81387 square m) were built by different organizations and individual businessmen in Abakan. Individual businessmen built 232 blocks of flats with total area of 35420 square m. Portion of individual block of flats is 43.5 % of all volume of building held in Abakan, 67.2 % of building in Khakassia. The following buildings are put into operation:
The second building of transforming substation “Polyarnaya” with power 25 thousand kilowatt
Trade centre “ALPI” with total area 166610.4 square m
The second building of secondary school N 26 was put into operation. The total number of pupil places is 1040.
The temple to Konstantin and Elena is being constructed.
The city is growing and developing. The most prospective economic fields of Abakan are housing and communal services, health care, education, energy, food production, transport, building, trade. Some positive and favorable changes are planned in these directions.