In the Far East of the Russian Federation lies a vast region characterized by a diversity of topographical features and a rich ancient history. The remote Republic of Buryatia increasingly serves as a regional economic powerhouse, rich in natural resources and human capital. Below are 10 facts about the economy of the Republic of Buryatia.
10 Facts About the Economy of the Republic of Buryatia
- The Republic of Buryatia is seeing a gradual decline in absolute population numbers. A 2016 census recorded 983,209 people in the republic in 2017. This is down from a total population of 1.02 million in 1997. A shrinking population may lead to adverse consequences for the economy of the Republic of Buryatia.
- Both industrial and agrarian means of production are well represented in the economy of the Republic of Buryatia. Forestry, food production, fuel and power, construction, the paper industry and the processing of both metal and wood account for the vast majority of industrial production. Mining operations explore, develop and extract coal, gold and non-magnetic metals. Agricultural operations feed much of the Russian Far East by producing dairy, meat, flour, cereals and animal feed.
- The cumulative value of exports from the Republic of Buryatia for the second quarter of 2017 measured approximately $374 million. A persistent decline in revenues from total exports began in 2012 though it has been subject to significant oscillations. In contrast, the republic imports $28 million worth of goods. The value of imports year to year exhibits some instability but still indicates a general decline over five successive years.
- The energy sector of the Republic of Buryatia relies greatly upon the region’s abundant coal reserves. Balance reserves totaling approximately 2.6 billion tons alongside deposit reserves of more than 1.1 billion tons may adequately supply the regional economy for another half-century. The government’s asset records attest to 13 brown and hard coal deposits subject to processing with another six undergoing development.
- Despite the vitality of the coal sector, a decline in the demand for electricity may hinder the economy of the Republic of Buryatia. Power plants satisfy local requirements so much so that the republic exports electricity to neighboring regions like Mongolia. However, electricity consumption by the republic’s forestry and agricultural sectors remains low compared to the transport, communications and power plant sectors. Electricity use in 2017 was substantially lower than in the 1990s.
- In 2017, the unemployment rate was 5.2 percent of the population in Russia. That same year, unemployment in the Republic of Buryatia affected 9.6 percent of the region’s population. But this most recent statistic is part of a systematic downward trend in the region’s unemployment rate. From a high of 17.8 percent unemployment in 2003, the decline to a 9.6 percent employment rate in 2017 attests to a steady improvement in this sphere of the economy of the Republic of Buryatia.
- The poverty rate in the Republic of Buryatia significantly oscillates year to year, yet data indicates a general decline in poverty. In 2015, 17.9 percent of the republic’s population lived beneath the poverty line. According to data collected in 2014, the average impoverished person in the Republic of Buryatia requires an income increase of 1.9 percent to meet minimum subsistence levels.
- The freshwater reservoir Lake Baikal plays an essential role in the economy of the Republic of Buryatia. Measuring 636 kilometers across and 80 kilometers wide, Lake Baikal hosts an estimated 250 unique animal species out of an approximate total of 2,500 local species. Besides the diverse biome, rich mineral deposits abound. Half a century of development in the Lake Baikal region yielded more than 700 mineral reserves.
- Individually-owned farms comprise 83 percent of the Republic of Buryatia’s total crop production. By contrast, only 57 percent of the total crop production of the Russian Federation emerges from farm households. However, only 11 percent of the total land of the republic belongs to individually-owned agricultural operations.
- In 2015, the rural demographic of the Republic of Buryatia numbered 402,520 people. The following year, the rural demographic rose 0.29 percent to 403,698 people. The urban demographic consisted of 579,511 people in 2016, a 0.28 percent increase from the previous year. Though comprising 58.9 percent of the republic’s population, data indicates a steady decline in the urban population from 1997 onward.
Though some data indicates that the economy of the Republic of Buryatia faces considerable obstacles, the general picture of the region is one of economic vitality. As a resource-rich region with a productive population, the future may bode well for this remote corner of the Russian Federation.
– Philip Daniel Glass