Unofficial translation

FEDERAL TARGET PROGRAM:
Economic and social development of the small indigenous peoples of the North up to the year 2011

APPROVED
by Resolution No. 564 of the Government of the Russian Federation
of 27 July 2001

SPECIFICATIONS
of the Federal Target Program on the Economic and Social Development of the Small Indigenous Peoples of the North up to the Year 2011

Title of the Program	-The Federal Target Program on the Economic and Social Development of the Small Indigenous Peoples of the North up to the Year 2011	
Authorization for the Program development 	-Resolution No. 1099 of the Government of the Russian Federation of 13 September, 1996 on the Federal Target Program on the Economic and Social Development of the Small Indigenous Peoples of the North up to the Year 2000	
Federal User of the Program	-Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation	
Principle Author of the Program
	-Research Center for Improving Economy Management of the Institute of Microeconomics, the Ministry of Economic Development and Trade of the Russian Federation	
Main Purposes of the Program	- To create conditions for sustainable development of the small indigenous peoples of the North by promoting their self-sufficiency based on a comprehensive development of their traditional economies, resources and livelihoods as well as by enhancing their spiritual, national and cultural advancement and raising their educational, occupational and health standards; 	
	-To restore the traditional economic lifestyle of the small indigenous peoples of the North and to comprehensively develop economic patterns in their lands, while preserving the environmental balance;	
	-To ensure social rehabilitation and development of the cultural heritage of these peoples and to enhance their role in the economic and social processes; 	
	-To improve the quality of life of the small indigenous peoples of the North; to create a life-support system and social amenities to meet their basic needs;	
	-To bolster investments and entrepreneurship, to restore trade, financial and economic ties and to integrate these peoples into the regional economy;	
Main objectives of the Program	-To develop resources and technologies of the traditional economies and processing sectors, to insure transition to an innovative way of development;	
	-To set up trade stations and to promote these forms of trade; 
-To ensure a transport accessibility of the lands and traditional use territories of the small indigenous peoples of the North, to develop modern environmentally sound transportation means;	
	-To reduce the dependence on the outside fuel and oil products supplies by using alternative energy sources; 	
	-To raise educational and occupational standards of these peoples and to create employment opportunities;
-To enhance hygiene and epidemiological health of the population; 	
	-To develop the finance and credit, investment and information infrastructures of the regions where the indigenous peoples live in;	
	-To increase the revenues of the regional and local authorities and to use more efficiently their property for investment purposes;	
	-To revise the mechanisms of state support to increase their effectiveness;	
Duration and implementation, stages of the Program	-2002-2011
Stage I - 2002-2003
Stage II - 2004-2008
Stage III- 2009-2011	
List of the major activities	-To promote reindeer herding, traditional economies, crafts and arts of the small indigenous peoples of the North; to ensure comprehensive processing of their traditional products and to preserve nature and resources of the lands of these peoples;	
	-To set up trade stations and to promote these forms of trade and exchange of goods; to develop a market infrastructure;	
	-To develop a social infrastructure, health care and social services;
-To ensure spiritual, national and cultural development; to improve education and to enhance the role of the small indigenous peoples in the economic and social processes;
-To ensure power supply of small indigenous peoples of the North and development of utilities	
Major executing agencies	-Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation, other federal executive bodies concerned, governments of the entities of the Russian Federation, local authorities, associations of the small indigenous peoples of the North, the Union of Reindeer Herders of Russia and other organisations	
Amounts and sources of funding and categories of expenditures	-The total budget of the Program in 2002-2011 amounts to 2,744,320,000 rubles, of which Federal budget - 979,820,000 rubles, budgets of the entities of the Russian Federation - 1,366,560,000 rubles; extrabudgetary sources ‑ 397,940,000 rubles.
Where capital investments amount to 2,278,440,000 rubles; research and development - 10,540,000 rubles and other current expenditures - 455,330,000 rubles	
Expected results of the Program implementation	-Raising the standards of living of the small indigenous peoples of the North, creating new jobs and employment opportunities, raising the educational standards and professional skills, developing culture and international cooperation, enhancing competitiveness and augmenting local marketable output by developing traditional, associated and new industries, restoring natural resources, developing innovation potential, weakening resource dependence of the small indigenous peoples of the North in their territories, raising the revenues of the regional and local budgets, forming a market infrastructure, integrating into the regional economy	
Supervising bodies 	-Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation, Ministry of Economic Development and Trade of the Russian Federation, Ministry of Finance of the Russian Federation, governments of the entities of the Russian Federation and local authorities, other Federal executive bodies responsible for respective Program elements.	

1. Problem description

The small indigenous peoples of the North (hereinafter referred to as the indigenous peoples) - are the peoples who are living in the traditional territories of their ancestors, maintain their traditional way of life, number less than 50, 000 people in Russia and identify themselves as separate ethnic communities (Federal Law on the Fundamentals of the State Regulation of Social and Economic Development of the North of the Russian Federation, Article 1, paragraph 6).
	At present there are 30 indigenous peoples in the Russian Federation who total about 200 thousand people thus constituting less than 2 percent of the overall population of the North.
	The indigenous peoples traditionally lead the nomadic, semi-nomadic or rural way of life (about 75 percent of this population live in the rural areas).
	In 1950-1970s government support embraced actually all aspects of life of the indigenous peoples. During that period an economic foundation and a marketing system for the products of their traditional economies were created, 26 peoples had obtained their own alphabet, their education and culture were developing.
	Yet, serious mistakes had been made at that time. The transition from the nomadic way of life to a settled pattern drastically changed their economic and social lifestyles, shattered the traditional system of children upbringing, transformed individual households into sovkhozes (state farms) and drove the indigenous peoples into bigger settlements.
	The negative trends in the social-economic development of these peoples have significantly intensified with the transition of the country to market economy with their livelihoods being destroyed and their living standards seriously deteriorating.
	In 1991-1995 the State program on the economic and cultural development of the indigenous peoples was adopted to improve their social and economic conditions. In the course of its implementation 4192 square meters of housing, hospitals to accommodate 407 patients, schools for 3,000 schoolchildren, 52 reindeer farms and other facilities were constructed. However, the program failed to reach its objectives because of inadequate financing.
	The program saw its continuation in the Federal Target Program on the economic and social development of the small indigenous peoples of the North up to the year 2000.
	The preliminary results show that the implementation of the Program has hampered further deterioration of the economic and social conditions of the indigenous peoples.
	At the same time the lack of budgetary funds has not permitted to fully implement all the measures provided for in the Program. Despite all efforts aimed at the economic development and amelioration of living standards of the indigenous peoples no major breakthrough has been achieved.
	One of the most urgent economic problem is the development of traditional economies in the first place (reindeer herding, hunting and trapping, fishing, etc.), which have become noncompetitive in the market economy and experienced deep crisis. Due to the lack of modern processing facilities and high transportation costs a considerable part of their traditional products can not be delivered to the consumers or sold.
	Once a very profitable economic activity, reindeer herding, has turned into a loss-making sector. The reindeer blood-stock has been almost completely destroyed while the reindeer numbers have decreased almost two times in comparison with 1990.
	The solution to reindeer herding reinstatement lie in the restoration of the livestock, organisation of large scale processing and increase of meat production as well as in the use of raw antlers and ferment-endocrine products, which, when processed, will be used to produce bio-stimulators, biologically active substances and new medicines. 
	Sea mammals hunting is also caught in the crisis. At present it has declined dramatically. The major potential for increasing commercialization of sea mammals hunting (except for the cetaceans) is to process raw products to provide the indigenous peoples with food, to obtain valuable fat for medical and perfume industries and to organise the advanced processing of raw ferment-endocrine products.
	Fur-breeding is also stagnating, which is due to considerable extent to the lack and soaring prices of feeds and low prices of pelts.
	Trapping and hunting are also declining first of all because of the erosion of habitats, aggravating economic conditions, inadequate material motivation of the hunters and the poor organisation of hunting itself.
	Over the last few years the catches of fish in the areas of the indigenous peoples have dropped almost two times, which is caused by violation of the fishing regulations and the absence of consumer markets. In particular, pollution of water bodies by industrial wastewater causes great damage to the fisheries. The quality of the fish leaves to be desired and fish products do not meet sales standards. At the same time many pieces of valuable fish rot before reaching the consumers. In this context it is imperative to modernize processing facilities and to introduce new freezing, vacuum and advanced fish processing technologies. The state of fishing boat fleet is extremely poor.
	The industrial development of the North has disturbed the environmental balance in the lands of the indigenous peoples. Gas and oil fields have irreparably polluted the environment. Transportation means destroy vegetation cover and reduce reindeer pastures. The deterioration of environment reduces fish-stocks and sea creatures reserves and fur and sea animals populations. The fact that the monitoring of natural and land resources has been actually interrupted only aggravates the situation. 
	The crisis of traditional economies makes the social problems even more acute.
	Recently the employment of the indigenous peoples has declined dramatically which resulted in lower living standards. Their money income is from 2 to 3 times lower than the average Russian level and from 25 to 30% lower than the average level of the regions they live in. Their pension is only 26% of the minimum subsistence level for the retired people in the respective territories of the Russian Federation. The load of breadwinners to support their families is constantly growing. The absolute majority of the indigenous peoples live below the poverty line.
	Housing conditions and social services of the indigenous peoples are also deteriorating. Many families are actually homeless. The major part of the available housing stock is ramshackle and has no amenities. Of special relevance is the creation of normal living conditions along migration routs and construction of mobile dwellings for the indigenous peoples.
	The health of the indigenous peoples is constantly deteriorating. Their average life span is extremely short. Only 8.5% of the indigenous peoples live up to the age of retirement. The incidence rates are 1.5 times higher than the average rates in Russia. There is a significant increase of cases of tuberculosis, viral hepatitis, skin and parasitic diseases. At the same time the number of doctors and medical staff in the territories of the indigenous peoples is decreasing. For every 10,000 people there are only 30 doctors and 11 primary care workers. The number of hospitals, in- and out-patient dispensaries is declining. There is a considerable lack of children’s and maternity welfare clinics. Many health care facilities require capital repairs, a minimum drug supply and modern medical equipment. To find a way out of this situation it is necessary to set up efficient medical and sanitary-epidemiological services for the indigenous peoples through formation of expeditionary medical units and mobile well-equipped teams to locally prevent, diagnose and treat diseases.
	The average level of general and vocational education of the indigenous peoples is decreasing too. Almost 48% of the indigenous population have only primary or incomplete secondary education, and 17% never went to school.
	The existing network of educational establishments does not meet the educational needs of the indigenous peoples. Almost in all territories of the indigenous peoples the number of general schools is decreasing. The schools are understaffed, lack educational and methodological literature, home reading text-books, especially in their native languages, and modern educational aids. Of special importance is the study of native languages - only 50% of schoolchildren (in the Northern regions) learn them. The number of schools in critical state or those requiring capital repair has increased. The problem of smaller schools has not been resolved yet. The network of pre-school institutions has been also decreasing.
	In some territories of the indigenous peoples no vocational establishment exist that would train professionals in the traditional economies and crafts. The problem of providing the indigenous peoples with opportunities for higher education needs further discussion.
	The indigenous culture, traditions, customs and other aspects of cultural and spiritual life of the indigenous peoples continue to erode. The network of cultural and educational establishments including mobile ones is also decreasing. About 30% of clubs and 20% of libraries require capital repair while 10% are in critical state. 
	The government support of the mass-media in the native languages of the indigenous peoples is urgently needed.
	The aggravating problems of the indigenous peoples show that there is a need for reforming and adapting the mechanism of government support to the changing economic situation, identifying new approaches and priorities in solving these problems.
	The concept of state support of the economic and social development of the North, approved by resolution No. 198 of the Government of the Russian Federation of March 7, 2,000 provides for the creation of conditions for self-development and self-sufficiency of the indigenous peoples in their territories, including support for the traditional economies and crafts, promotion of their products in the consumer markets, organisation of a system of trade and barter at remote posts, a compensation for exploration of natural resources in the territories of their traditional economic activity, development of institutional forms of local self-government. The present Program has been developed on the basis of this concept.

2. The main purposes and objectives of the Program, the duration and stages of implementation

1. The main purposes of the Program are to create conditions for the transition of the indigenous peoples to sustainable development on the self-sufficiency principle based on integrated development of traditional economies, their resources and livelihoods, spiritual and national and cultural development, higher educational standards, vocational skills and improved health.

2. The Program will be implemented in the following areas:
	1) restoration of the traditional economic lifestyle of the indigenous peoples and integrated development of the economic structure in their territories while preserving the environmental balance;
	2) social rehabilitation, national and cultural development and enhanced role of the indigenous peoples in the economic and social processes;
	3) raising the living standards of the indigenous peoples, creation of a life support system and social services meeting their basic needs;
	4) intensification of investment and entrepreneurial activities, restoration of trade, financial and economic ties as well as the integration into the regional economy. 

3. The purposes in the first area are the following:
	-developing resources and traditional economies such as reindeer herding, fishery, trapping and sea hunting and other activities;
	-developing the processing of raw products and produce of the traditional economies;
	-improving consumer qualities of the traditional products and increasing their production through technical and technological modernization of their traditional economies and processing facilities and their products;
	-introducing new advanced processing technologies into traditional economies;
	-reducing dependency of the territories of the indigenous peoples on the outside fuel and oil supplies by using local (nontraditional) sources of heat-and-power supply;
	-supplying advanced transportation means to the territories of the indigenous peoples; 
	-replacing the outdated communications systems by equipping remote settlements and reindeer herding teams with mobile radio communications means.
4. The purposes in the second area are the following:
	-social protection of the indigenous peoples, improving social benefits and guarantees system, including employment benefits, raising the level of education, providing (saling) houses, providing medical care;
	-promoting the vocational guidance and psychological support of the indigenous peoples taking into account the ethnic, social and cultural peculiarities;
	-increasing the vocational and labor mobility of the indigenous peoples, forming a training and retraining system for local personnel, promoting employment;
	-creating new jobs, developing and supporting small businesses, farming, family and tribal and community forms of cooperation, improving land tenure regulations; 
	-preserving and developing the indigenous culture, traditions and customs;
	-reviving ethnic and territorial or community self-government of the indigenous peoples;
	-supporting interethnic and international movements and associations, organising mutually beneficial international cooperation and exchange of experience.

5. The purposes in the third area are the following:
	-preparing and carrying out measures on the clinical examination and medical rehabilitation of the indigenous peoples, developing the public health system and improving the health care standards in their traditional territories; 
	-developing the social and public services, trade and catering, improving supplies of foodstuffs and basic necessity goods to the indigenous peoples;
	-repairing and constructing stationary and mobile housing, and improving housing conditions;
	-monitoring and preserving the environment, restoring the natural and biological resources and maintaining the environmental balance in the traditional territories of the indigenous peoples by sustainable use and conservation of lands, expansion of protected natural zones and reserves taking into account traditional nature management and economic activities of the peoples.

6. The purposes in the fourth areas are the following:
	-restoring purchase and procurement as well as supply and trading systems in the territories of the indigenous peoples, developing trade at remote posts and exchange goods, creating markets for indigenous products, weakening dependency on foodstuffs supplies;
	-carrying out institutional changes, developing the local financing, credit and investment infrastructure, creating a sound investment climate, reducing investment risks, establishing safeguards system;
	-enchancing the role of the local authorities in the organisation of the investment process in the territories of the indigenous peoples.

7. The Program will be implemented in three stages:
	Stage I - 2002-2003;
	Stage II - 2004-2008;
	Stage III- 2009-2011.

8. The first stage is of organisational and preparatory character aimed at the implementation of the priority activities and projects and provides for:
	-taking urgent measures in the field of social and medical rehabilitation of the indigenous peoples, developing training and retraining system and employment opportunities for the indigenous peoples;
	-carrying out activities of a stabilizing significance to complete and put into operation (within the framework of the Federal Target Program "Economic and Social Development of the Small Indigenous Peoples of the North up to the Year 2000") unfinished facilities and production capacities;
	-preparing the investment documentation and design estimates;
	-forming a regulatory and legal framework, organising competitive selection and implementing efficient fast-payback projects contributing to the revival of the investment and entrepreneurial activity in the traditional territories of the indigenous peoples.

9. The second stage covers a medium-term period and provides for:
	-creating institutional foundations of a modern market economy with a developed infrastructure in the territories of the indigenous peoples;
	-launching the modernization, technical and technological re-equipment of the production facilities and traditional economies of the indigenous peoples;
	-implementing viable projects to set up profitable production facilities of the local processing and associated industries based on raw products of the traditional economies;
	-reconstituting and developing basic infrastructure projects by attracting private capital including a replacement of fishing boats, insuring transport accessibility of the indigenous territories and those of economic activity of the indigenous peoples, developing the local oil and gas processing facilities, switching to non-traditional sources of heat and power supply;
	-implementing projects to repair, reconstruct or construct housing, social, cultural and educational amenities, implementing activities on environmental protection and nature management;
	-carrying out highly profitable projects;
	-promoting tourism.
	The activities in the second stage are to be financed from the federal budget and budgets of the constituent entities of the Russian Federation, domestic and foreign sources. Market forms of the state participation and support are planned for investment activity through credits, guarantees, leasing and concession agreements.

10. The third stage covers a long-term period and completes the transition to dynamic and sustainable economic and social development of the indigenous peoples based on the self-sufficiency principle, while providing for completion of projects to develop economic structures in their traditional territories paralleled by the accelerated development of new industries and services, especially in socially significant fields (education, health care, culture).

3.The system of the Program activities

The time frames of the Program activities are agreed upon with the executing agencies and the activities are interrelated and are planned to give a multifaceted economic and social effect. The amount and sources of financing of the Program activities are set forth in annex 1.
	The Program is coordinated with other federal target programs dealing with the problems of the North. A number of projects of the Program are of a comprehensive nature. The list of comprehensive projects of the federal importance is set forth in annex 2.
	The Program envisages the following Program activities:

1. Developing reindeer herding, traditional crafts and trades of the small indigenous peoples of the North, advanced processing of the indigenous products and preserving the nature and resources in the traditional territories of these peoples.
	The activities of the section are aimed at the restoration and development of the traditional economies based on new production technologies and facilities for processing raw indigenous products as well as the creation of conditions for nature management and conservation indispensable for the traditional life style of the indigenous peoples.
	The total coast of the activities amounts to 794,790,000,000 rubles.
	The activities will be carried out in the following areas.
	The first areas cover development of the material and resource base of the traditional economies. It is planned to carry out activities to develop commercial and bloodstock reindeer farms, to manage reindeer pastures, to take veterinary measures, to control predators, to control the reindeer populations, to increase calves' survival rate and reindeer protection, to apply fenced herding and thus to increase the number of the domestic reindeer to 2 million animals.
	Construction of one thousand kilometers of fences enclosing reindeer pastures, 164 slaughter-suction stations for reindeer and other domestic animals, 600 intermediate stations for reindeer-herders, hunting, and fishing teams is provided for.
	Increases in catch of fish and bag of sea mammals and other sea products under fixed quotas are planned. The repair and re-equipment of fishing boats, the acquisition of catcher boats of small size and other equipment are provided for.
	Activities aimed at the development of fur breeding, restoration of the livestock and construction of new fur farms are planned. Measures to organise the storage of game fur and biotechnical and hunt management work are to be taken.
	The second area embraces the development of the production capacities to process raw materials and traditional indigenous products. The program envisages the following:
	-to construct processing facilities ensuring required advanced processing, the production and delivery of wholesale lots of final products to the retail outlets;
	-to modernize old and construct technically and technologically new factories for advanced processing of raw materials to commercially output products that are competitive in the regional (inter-regional) and foreign markets;
	-to create trading stations to promote the products of traditional handicrafts in the markets, including exports;
	-to construct small capacity processing facilities, including shops to process reindeer meat, by-products, fish (including can seaming and smoking shops), sea hunting products, sea products and wild fruit;
	-to put into operation facilities, processing raw antlers and ferment - endocrine products to be used in pharmacology and pharmaceutics (to produce medical products), perfume industry or to be sold in the foreign markets or to organise production of dried herbs and extracts;
	-to construct cold stores and to acquire refrigerating and freezing installations for more effective use of local raw products;
	-to carry out activities aimed at the development of the associated and new processing capacities to process products of the traditional economies by constructing fur-skins and leather dressing shops, sewing workshops, arts and handicraft shops and workshops;
	-to create conditions for the development of the feed mill industry, the production of consumer goods, and leather-shoe ware;
	-to set up facilities for outputting products based on non-local raw materials (grain products) and bakery products and confectionery. 
	The third area embraces a package of measures to fully protect and restore northern ecosystems, to tighten environmental control over industrial enterprises in the traditional territories of indigenous people and of their traditional economies, to improve sanitary and environmental conditions and to clean up the territories of industrial and domestic wastes, to construct waste disposal plants, to create a system of nature protected areas, taking into consideration the environmental value of specific ecosystems and landscapes, to better the nature management, to preserve the environmental balance and natural resources in the indigenous territories.

2. to create trading stations and to promote trade and barter at the remote posts and to develop the market infrastructure:
	The activities under this section are aimed at creating trading stations (enterprises of this type) in the territories of the indigenous peoples and of their economies and to recover the system of storage, purchase, delivery of and trade in foodstuff and consumer goods on their basis.
	The implementation of the activities will require 389,860,000 rubles.
	As part of the efforts the creation of 80 trade stations is planned based on the traditional economies and handicrafts, to ensure production, storage, processing and sales of the indigenous products.
	Establishment of a network of trading stations is planned to purchase, store, and to raise nutritional standards of products derived from reindeer herding, to obtain by-products and processable raw products.
	Measures are to be taken to accommodate and efficiently site the structural units of the trading stations (ranging from the network of posts, storage sites and supply points to main trading stations) and to provide them with the equipment and transport facilities.
	During creation of the trading stations the use of material and technical base of the old storage and sales facilities and processing units for indigenous products, of trade, consumer's co-operation business and other organisations (storehouses, cold stores, facilities to process reindeer parts and handicraft products, etc.) is planned. Creation of an effective management mechanism for trading stations is also provided for.

3. The development of social infrastructure, health care system, and social services:
	The activities in this section are aimed at ameliorating and improving the living conditions of the indigenous peoples by developing the social infrastructure and social services, and improving medical care.
	The financial requirements for their implementation amount to 665,540,000,000 rubles.
	The implementation of the activities will seek to reach two objectives.
	The first objective is to develop a health care system in the traditional territories of the indigenous peoples and to improve medical service.
	Construction of hospitals and more than 140 ambulance and medical attendant's and obstetric stations to accommodate over 2.8 thousand patients, to provide them with modern diagnostics and medical treatment equipment and medicines.
	Formation of 50 mobile medical teams, as well as airborne medical, ambulance and sanitary-hygienic services is envisaged to render timely medical aid in remote communities, to reindeer herders, hunters, fishers, to carry out preventive examinations and epidemiological checkups.
	The second objective is to improve housing conditions and utilities of the indigenous peoples.
	A package of measures is planned to repair and renovate the housing stock, to build new houses, including mobile dwellings for the nomadic part of the population, to improve amenities of the houses, i.e. water-, gas and electro-supply, sewerage system, central heating and other conveniences.
	About 300,000 square meters of living space is to be repaired; construction of first-class modern housing totaling over 1,400,000 square meters and 3,000 mobile compact dwellings for the nomadic part of the population is envisioned.
	To improve housing amenities the construction of 100 kilometers of water supply and 200 kilometers of drainage systems, gasification and water heating of more than 2,000 houses, apartments and community centers are planned.
	Construction of small-size bakeries, bath-houses and social services and retail outlets is envisaged in the settlements and trading stations.

4. The spiritual and cultural development, the improvement of educational system and enhancement of the role of the small indigenous peoples of the North in economic and social processes.
	The activities in this section provide for social and legal protection of the indigenous peoples and the development of their self-government, creation of conditions for the development of education, indigenous culture, traditions, language and customs, an active participation of these peoples in the solution of the economic and social problems, including those at he international level.
	The amount of financing of the activities reaches 318,580,000 rubles.
	The first area covers social rehabilitation of the indigenous peoples and their legal protection and the development of indigenous self-government.
	Implementation of a package of measures in the area of social assistance to the indigenous peoples is envisaged to adapt the system of social benefits, guarantees and compensations to these peoples to the new economic conditions and rendering social assistance to socially disadvanted families.
	Measures are provided for to create conditions for the activities of the indigenous peoples associations, as well as indigenous-cultural societies.
	The legal and normative fundamentals which regulate the development of local self-government, the forms and status of these bodies, the introduction of quotas for the indigenous peoples in representative government bodies at various levels are to be improved.
	The implementation of international projects and programs, including the creation of International House of Friendship, Culture and Business of the Small Indigenous Peoples of the North, support of regional programs on the development of international cooperation and activities covering exchange of specialists, promotion of tourism, etc. are planned.
	The second area relates to higher level of education and vocational training and employment opportunities of the indigenous peoples.
	Rennovation and construction of schools accommodating 18,400 schoolchildren and preschool establishments to take care of 8,800 children are provided for. Creation of nomadic schools and classes (eight‑year and primary schools in small communities, primary schools for few pupils in new-founded trading stations and reinstated settlements (communities), nomadic classes, family schools in the tundra on the basis of boarding schools) are planned. The application of non-traditional forms of teaching children of nomadic population (summer examinations, external studies, individual and home training) is to be provided for.
	Foundation of economic lyceums, financial and economic colleges, regional and inter-regional business schools with in-depth teaching of the fundamentals of market economy and new applied disciplines, schools of indigenous handicrafts and arts, sports schools is envisaged.
	Measures are to be taken to workout alphabets for the four indigenous peoples (the Orochons, the Orokos, the Nganasanes and the Enets), who still have no their written language to provide educational institutions with new generation textbooks, including those on the Russian language, while taking into consideration the language specificity, with training aids and transport.
	To train specialists in the system of vocational and specialized secondary education, expansion of the system of specialized secondary educational institutions and vocational schools oriented towards traditional economies is provided for. Creation of colleges to teach professionals in non-traditional sectors (mineral resources and raw materials, energy, hydrometeorology, transport, tourism) is planned on the basis of specialized secondary educational institutions and vocational schools.
	To offer broader opportunities to the indigenous peoples to study higher education institutions, the Program provides for establishment of local affiliates of educational institutions based on the existing educational institutions in the North, as well as special quotas in higher educational institutions of the Russian Federation to prepare professionals from among the indigenous peoples.
	The Program envisages a set of measures to create an employment promotion, professional training and retraining of indigenous professionals and a job creation system. It is planned to setup special centers for training, retraining and advanced training of the indigenous professionals. The Program provides for creation of employment promotion services aimed at professional orientation and professional training of the indigenous peoples.
	The third objective of the Program concerns the promotion of the indigenous culture, education and massmedia. It is planned to intensify publishing activity in the field of education (publishing of books and textbooks written in the native languages, native folklore collections, anthologies of the history of those peoples etc.).
	The Program provides for the development of a library network, increase in libraries' book stocks replenished with printed materials in the languages of the indigenous peoples, creation of archives and indigenous folklore foundations, national museums and museum complexes, creation of ethnic and ethnographic cultural centers and affiliates, as well as construction of new cultural centers that are to accommodate over 14 thousand people.
	It is planned to organise culture festivals, festive events for rein-dear herders and hunters, traditional sports competitions, and promotion of indigenous artistic performances of the indigenous peoples.
	The Program envisages creation of 14 local television and radio stations and broadcasting of regular television and radio programs in the languages of the indigenous peoples.
	The Program provides for a set of measures to promote and develop tourism in the territories of the indigenous peoples and of their traditional economies, especially in its most promising forms.

5. Energy supply to support the vital activities of the small indigenous peoples of the North and development of the communications.
	The activities under this section provide for a guaranteed and continuous heat and energy supply to support traditional economies, social housing and community services of the indigenous peoples by efficiently using the local energy resources, developing local environmentally sound transportation means and modern communications and telecommunication systems.
	The estimated financial requirements to implement these activities amount to 223,620,000,000 rubles.
	The first objective is to re-orientate the energy supply system in the indigenous territories towards the local energy resources. 
	Construction of 3,000 km of power lines and several module diesel power units is planned; the decentralized sector of heat supply and diesel power units is to be reconstructed, autonomous power supply systems are to be installed in 2,000 houses, as well as purchase and installation of 10 small-size power units for trading stations, reindeer herding and fishing teams are envisaged.
	The Program provides for a set of measures to use non-traditional energy resources, wind-power plants, including mobile units and geothermal installations. Promotion of local production of oil and gas products of small-tonnage modular installations for processing of hydrocarbons, extracted from small and indicated oilfields in the territories of the indigenous peoples. 
	The Program provides for supplies of oil products via trade outlets of the major oil companies, application of a concession mechanism to the development of oil and gas fields based on the clause of oil products supplies.
	The second objective is a comprehensive development of the local transport system.
	The Program includes measures to increase efficiency of the transport patterns and to reduce the mileage of goods-movement routes. 
	It is planned to construct roads between remote settlements and to link the traditional territories of the indigenous peoples to the rail-road, junctions and sea or river ports.
	Plans have been worked out to purchase small-size river ships and light aircraft, to construct or reconstruct take-off and landing strips for small aircraft. 
	It is also planned to expand the stock of all-terrian vehicles, trucks, personal vehicles (snowmobiles).
	The third objective is to develop modern communications facilities. 
	Activities are planned to develop telephone net-work and to equip rural communities with telephones, including some measures to establish communications between reindeer herders and hunting teams and to promote radio and television broadcasting by using limited - range transmitters.
	It is planned to integrate the traditional territories of the indigenous peoples into the regional, federal and international communications systems. 

4. Financial support of the Program

The cost of the Program amounts to 2,744,320,000,000 rubles, of which 979,820,000,000 rubles (35.7%) are to be allocated from the federal budget, 1,366,560,000,000 rubles (49.8%) - from the budgets of the entities of the Russian Federation and 397,940, 000,000 rubles (14.5%) from extra budgetary sources.
	"Capital investment" item will prevail in the expenditure structure and will amount to 86.53%, while expenditures for research and development and other current expenditures constitute 0.5% and 13% respectively.
	The implementation of the Program makes provision for a gradual decrease of the federal appropriations by increasing the allocations of the budgets of the entities of the Russian Federation, local budgets and extra budgetary sources.
	The implementation of the proposed financing strategy is to be assured primarily by the accumulation and redistribution of the profit deductions of the companies active in the development of natural, mineral and energy resources in the territories of the indigenous peoples and of their traditional economies, as well as taxes, rental payments and charges or compensations and indemnities for the damage caused to the traditional nature management.
	Attraction of investments from extra-budgetary sources is planned to implement projects with potentially high profit rate and a short pay-off period (on average 1-3.5 years), as well as to attract investors to participate in long-term profitable investment projects, based primarily on the project financing principles, or projects repaid with future profits and requiring no State guaranties.
	The proposed forms of investment financing include extra-budgetary sources in accordance with Resolution No. 594 of the Government of the Russian Federation of June 26, 1995, "On the Implementation of the Federal Law "On the Procurements of Goods for Federal Public Needs" (lease, trust, lending, notes circulation, mortgage instruments and concession agreements). Particular attention will be attached to the attraction of foreign investments.
	Russian and foreign investors will be granted the privileges and guarantees envisaged by the laws of the Russian Federation. The creation of information support system will be of great importance for the attraction of investors. This objective implies an advanced preparatory work in accordance with the international standards concerning investment projects, business plans and project estimates, as well as efforts to enhance awareness of would-be investors of the investment opportunities, to create and manage a database, to organise investment projects exhibitions and auctions, and to ensure connections with Internet.
	The overall payback period of the Program, including the implementation of long-term capital-intensive projects, is 12.5-13 years. The amount of the financial support will be adjusted annually depending on the actual availability of the federal budgetary resources.

5. The implementation mechanism of the Program

The implementation mechanism of the Program comprises a three-level structure and provides for various forms and methods of State regulation. 
	The implementation of the Program at the federal level includes management, coordination and control over the implementation of the Program, direct financing from the federal budget, preferential terms, creation of a favorable investment climate, formation of a State regulation mechanism to purchase products of the traditional economies, the conclusion of agreements (contracts) with investors and the Program executing agencies, the development of normative acts, the scientific and legal support of the Program.
	To ensure efficient management of the funds, allocated for the implementation of the Program, it is planned to enlist support of the federal authorities concerned.
	At the level of the governments of the entities of the Russian Federation the Program provides for financing from the budgets of the entities of the Russian Federation, tax and tariff exemptions as permitted by the local legislation, the conclusion of contracts for the exploration and development of mineral resources in the indigenous peoples' territories, and of leasing agreements, harmonization of the title list of construction sites, projects and measures that are of importance for those peoples.
	The local authorities shall take decisions on the financial issues of the Program that are within their competence, on the legal regulation of the lifestyle of the indigenous peoples, the operational control over the implementation of the activities and projects under the Program.
	The responsibility for the full implementation of the Program within its timetable and effective purpose-oriented usage of the allocated funds, lies with the State user or the Ministry of Federal and National Affairs, National and Migration Policy of the Russian Federation. 

The scheme of the Program financing
	The annual formulation of the objectives and activities of the Program and the conclusion of the state contracts (agreements) are based either on a budgetary request submitted by the governments of the entities of the Russian Federation to the Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation (as agreed upon with the regional associations of the indigenous peoples), backed up by a list of construction sites and other measures, or on a request for implementing an investment project accompanied by respective feasibility studies, estimates and calculations.
	After the approval of the regular federal budget the Ministry of Finance of the Russian Federation authorizes annual allocations for the implementation of the Program, which are then allocated according to the budgetary requests of the entities of the Russian Federation, the budgetary classification, the allocation procedure for the implementation of the Program, worked out by the Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation.
	In case of inadequate budgetary allocations the precedence of the activities to be financed and the financial performance of the previous allocations are to be taken into account. Priority is to be given to the facilities under completion and the facilities assuring employment of the indigenous peoples.
	The annual adjustment of the approved budgetary allocations and the objectives of the Program, is to be undertaken based on the appropriate feasibility studies, estimates and calculations within the aggregate amount of the budgetary appropriations as approved by the federal Law on the federal budget for the current financial year with an additional mandatory agreement to the contract being concluded. The preparation of the documents required for the adjustment is entrusted with an executing of the agency of the Program.
	The Program activities shall be implemented through state contracts (agreements), concluded by the Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation with the governments of the entities of the Russian Federation and organisations. The Program executing agencies are selected on a competitive basis.
	The logistic support is to be ensured through the federal contract system based on state contracts (agreements) as provided for by the Procedures of purchases and deliveries of goods for the federal needs, as well as on a wider use of financial leasing and direct capital investments aimed at modernizing equipment and creating new businesses and production lines.
	A contract shall contain the financial obligations (the amount of financing) of the parties and defines the shares of all the financial sources (the federal budget, the budgets of the entities of the Russian Federation, extrabudgetary sources).
	The governments of the entities of the Russian Federation and local authorities can use special regional (local) funds and other investment structures, supporting the Program and authorized to manage credit resources of the entities of the Russian Federation, their own and borrowed resources of the local authorities and extrabudgetary funds.
	Trust funds and other investment structures supporting the Program can be engaged as partners to implement Program activities.

The management of and control over the implementation of the Program
	The management of and control over the implementation of the Program shall be carried out by the Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation.
	The Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation may delegate, on a contractual basis, some of its functions and responsibilities related to the management of and control over the implementation of the Program to the governments of the entities of the Russian Federation as provided for by the federal laws and other normative acts.
	The Ministry of Federation and Nationalities Affairs, National and Migration Policy of the Russian Federation:
	-coordinates the work of the executing agencies of the target programs ensures the fulfillments of its contractual obligations and controls the fulfillment of the obligations of other parties to the contracts;
	-determines the modalities and participation of the Ministry's local units as Federal users with respect to the activities implemented in the respective entities of the Russian Federation and ensures the coordination with them in this sphere;
	-collects reports from the executing agencies of the Program activities;
	-analyzes the target programs support, prepares and submits the summary analytical information on their financing to the Ministry of Finance of the Russian Federation, the Auditing chamber of the Russian Federation, other supervising bodies.
	To facilitate the control, analysis and assessment of the Program implementation a special monitoring system is to be established to ensure a comparative analysis of the practical results of its implementation, as well as the impact on the socio-economic development of the indigenous peoples.
	According to the requirements concerning the development of the federal target programs the State Committee of the Russian Federation for Statistics reports every three months on the Program's implementation targets.
	If necessary, the Ministry of Economic Development and Trade of the Russian Federation together with the Ministry of Finance of the Russian Federation, other federal executive authorities concerned and the governments of the entities of the Russian Federation can carry out expert assessment of the Program implementation progress.

The legal framework of the Program
	The present Program shall be implemented according to the federal laws, decrees of the President of the Russian Federation, resolutions of the Government of the Russian Federation, as well as the regional and local normative acts on the important problems of the socio-economic development of the indigenous peoples.
	However, many issues of the development of and support for the indigenous peoples need further legal analysis.
	In this respect, the Program includes activities aimed at improving the legal basis to regulate matters relating to the life-styles of the indigenous peoples. In particular, it is planned to work out normative acts to regulate the system of privileges and compensations of those peoples if their land tenure is infringed, including expropriation of traditional hunting lands because of mining, laying pipelines (oil and gas), hydrotechnical constructions and industrial facilities. Legal regulation is needed to set up a machanism ensuring the rights of the indigenous peoples with respect to the exploitation of the natural resources in their traditional territories and areas of their traditional economies, as well as an effective system of individual social support and rehabilitation, improved forms of local government in the indigenous regions and reformed educational and medical systems.

6. The expected socio-economic and environmental results of the Program

The Program implementation is to result in the reinstatement, upgrading or re-establishment, on the modern logistical and technological basis, of major assets, including over 65 thousand vacancies both in the traditional sector of the economy and new industries. Market relations will be promoted, the problem of adaptation of the indigenous peoples to the market economy will be solved.
	The Program activities will contribute to:
	-the expansion of the commercial production and higher competitiveness of the traditional economies and handicrafts as compared with the supplied products through innovations, environmentally sound production and a possibility of all year round deliveries at reduced transportation, storage and processing costs;
	-the creation of preconditions for formation, by using their local resources, of an internal food and commodity market, for reduction of dependency on food and consumption goods deliveries of the North, for the development of new livelihoods in the traditional economies;
	-better living and quality of life standards, improved health, reinstated life – support systems, revived indigenous traditions and culture, enhanced social role and indigenous identity, developed international and interethnic cooperation to jointly seek solutions to new economic, environmental and social problems. 
	The Program is to create the necessary conditions for well-balanced and sustainable development of the indigenous territories, to facilitate the elimination of the contradictions between the traditional economies and the industrialdevelopment of the Northern territories, and the conservation of the environment. 
	The inventory to be made of the lands disturbed by industrial development of the traditional territories will allow to obtain additional resources by imposing penalties for environmental disturbances and to channel them into protection of the environment.
	A wider use will be made of equipment leasing, and state orders for applied research and developments aimed at designing and introducing new equipment and up-to-date technologies (low waste and advanced processing of raw materials in the first place).
	The results of the Program will be of significance not only for the development of the indigenous peoples and their traditional territories, but also for the Northern regions and Russia as a whole and will intensify economic, trade and financial ties while reducing the dependency of the Northern territories on natural resources.

Выпускающий:	
(В.Рожков)	
		
 Перевод на англ.язык		
ДЛО МИД России
14.12.2001 
Fin385/2