The significance of our land's purpose
In the heart of Siberia, Yakutia, a region rich in natural resources, is grappling with the disconnect between industrial development and the wellbeing of its people. This disconnect has been highlighted by recent events, as residents express their dissatisfaction with the current situation.
The video circulating on social media features a resident from the flood-stricken Oymyakon region addressing Aisen Nikolaev, the head of Yakutia. The resident criticizes the companies for digging up resources without restoring anything, questioning the benefit for the average person. This sentiment is echoed by other residents in Ust-Maya, who assert that industries are causing harm, while authorities seem to be the ones reaping the profits, leaving the people to suffer.
The economic situation, according to Nikolaev, has prompted him to increase support for affected residents following his visit to the flooded villages in Oymyakon and Abyisk districts. However, some residents remain sceptical, as they point out that the meeting attendees were not the owners of the companies, but their local representatives.
The issue of tax distribution is a contentious one. Moscow has no say in the distribution of the 17% profit tax to local municipal budgets. The Il Tumen could pass a law to direct part of this tax to local municipal budgets, potentially addressing the concerns of residents. Yet, the republican authorities find it disadvantageous to fill local budgets with the profit tax.
Companies pay what they want as there are no clear norms, leading to a lack of transparency in the distribution of tax revenues. This, coupled with the inadequate capacity of local governance structures, results in insufficient infrastructure development and social services. The lack of investment in roads, flood defenses, healthcare, and education leaves these regions vulnerable to challenges like flooding and poor living conditions.
These issues are not unique to Yakutia. Studies of resource development in remote, indigenous, or environmentally vulnerable regions globally have shown that resource wealth does not always translate into local prosperity or environmental security. The environmental impact of industrial operations, coupled with systemic issues in governance and redistribution, often hinders the benefits from reaching the local population.
In light of these challenges, Nikolaev urged the companies to show that Yakutia's industry is not just about extraction, but also about social responsibility, solidarity, and humanity. He responded to the criticism by stating that taxes remain and 25 billion rubles are paid from gold mining alone to the republic. However, the question remains: will the profit tax, one of the most profitable taxes, be directed towards the local budget, allowing residents to see the benefits of the industry?
As the conversation around industrial development in Yakutia continues, it is crucial to address these concerns and work towards a more equitable distribution of resources, ensuring the wellbeing of the people and the preservation of the environment.
In the wake of public criticism, a Yakutia resident questions the benefit of industrial development in the region, as companies appear to prioritize resource extraction over restoration and caution that profit seems to be concentrated among authorities, while average people suffer. Nikolaev, the head of Yakutia, admits to increasing support for affected residents but faces scepticism over the involvement of company owners in the discussions. Despite Nikolaev's assertion that 25 billion rubles are paid from gold mining alone to the republic, questions linger about the distribution of profit tax, as it may not be directed towards local budgets, leaving residents uncertain about the benefits of industry for their wellbeing.
