Kabardino-Balkaria+Socio-Economic

= = =**KBR Economy Likely To Remain Unstable In The Next Twelve Months Due To Increasing Insurgency Activity**=

Executive Summary:
Recently, the insurgency has caused many socio-economic problems and has resulted in low living standards, a high unemployment rate, and a significant amount of corruption and fighting. More generally, the situation has resulted in the dissatisfaction of the majority of the populace. Due to this, Kabardino-Balkaria's economy is likely to continue to deteriorate over the next twelve months.

Discussion:[[image:nalchik-plead.jpg width="413" height="313" align="right" caption="Rebels Vow To Renew Attacks" link="http://www.jamestown.org/images/photos/nalchik-plead.jpg"]]
In the past Kabardino-Balkaria has been able to remain separated from the insurgent fighting that has plagued most of the North Caucasus region[|.] However, with the constant spreading of the insurgency Kabardino-Balkaria has found itself entrapped in the fighting between Russian police forces, military units, and the insurgents[|.]

There is a high degree of dissatisfaction among the people of Kabardino-Balkaria due to the socio-economic problems in the republic[|.] A survey from late 2005 from the Caucasus Times survey in Nalchik indicated that economic problems worry almost the entire population of Kabardino-Balkaria, 95%[|.] Also, 44% of residents are concerned about security in the republic which is the cause of most of the economic instability[|.]Many people have expressed that the most current problems are high prices, low wages, unemployment, and corruption[|.] Many people related these problems to the security issue, saying these problems are direct causes from the instability that the insurgents have brought to the region[|.] With the gradual spreading and increase of violence from the insurgents Kabardino-Balkaria’s economy will continue to deteriorate[|.]

In August 2004, a rebel group called Yarmuk first announced the beginning of military operations in the Kabardino-Balkaria[|.] The police special-forces have been trying to stop attacks throughout the republic initiated by Yarmuk rebels but have been unsuccessful overall[|.]

Additional Comments:
None.

Source Reliability: 9 Analytic Confidence: 8

Matthew Gurto

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