Economy
The major industries in Dagestan include oil production, engineering, chemicals, machine building, textile manufacturing, food processing, and the timber. Oil deposits are located in the narrow coastal region. The Dagestani oil is of high quality, and is delivered to other regions. Dagestan's natural gas production goes mostly to satisfy local needs. Agriculture is varied and includes grain-farming, viticulture and wine-making, sheep-farming, and dairying. The engineering and metalworking industries own 20% of the republic's industrial production assets and employ 25% of all industrial workers. Dagestan's hydroelectric power industry is developing rapidly. There are five power plants on the Sulak River providing hydroelectric power. It has been estimated that Dagestan's total potential hydroelectric power resources are 4.4 billion kW. Dagestan has a well-developed transportation system. Railways connect the capital Makhachkala to Moscow, Astrakhan, and the Azerbaijani capital, Baku. The Moscow-Baku highway also passes through Dagestan, and there are air links with major cities.
Conditions for economic development are favorable in Dagestan, but – as of 2006 – the republic's low starting level for a successful transition to market relations, in addition to rampant corruption, has made the region highly dependent on its underground economy and the subsidies coming from the central Russian government. Corruption in Dagestan is more severe than in other regions of the former Soviet Union, and is coupled with a flourishing black market and clan-based economic system.
In 2011 Rostelecom started implementation of WDM-based equipment on the backbone network for data transmission in the Republic of Dagestan. Due to WDM introduction the fiber-optic communication lines bandwidth increased to 2.5 Gbit/s. Rostelecom invested about 48 million rubles in the project.
Read more about this topic: Republic Of Dagestan
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