| Abstract: | The traditional picture of the economic development in Siberia presents a formidable obstacle in the form of a manpower deficit and high labor turnover. The official policy to combat this problem has been to give priority to the development of social and cultural amenities. Substantial changes in wage differentials and other economic and non-economic benefits seem to be a measure of the past. This article presents an overview of the situation and suggests that if any public policy is to be effective, it has to combine accelerated development in the social and cultural spheres and economic and noneconomic benefits as well. Furthermore, these measures have to be more differentiated regionally and among worker categories. Any such policy would require massive investment. The question is whether Soviet society can bear this huge burden in view of more immediate needs. Another question is whether the additional investment required would be compensated by a comparable increase in the productivity of labor. In view of substantial cost increases, capital productivity is likely to decline if not compensated by a change in the calculated prices on Siberian products, especially oil and gas, which seems doubtful in view of the present international situation. |
