Arctic Yearbook 2014 - Page 365

365 Arctic Yearbook 2014   Figure 3: The estimated importance of the town-constituting enterprise and small and medium businesses as employers as a percent of the local working-age population in Kirovsk and Revda in 2009–2020 after realization of the investment projects included in the CIPs (KIPMM Kirovsk 2010: 70; KIPMMGP Revda 2010: 43) Figure 3 shows targeted estimates for the growth of the number of workers in SMEs which are needed to replace the estimated loss of workplaces in the town-constituting enterprises in the mining industry as part of the planned technological modernization process. Kirovsk as a Resource Community OJSC Apatit, the town-constituting enterprise of Kirovsk, operates also in Apatity and is a significant employer in both towns. It is a daughter company of PhosAgro. Kirovsk is dependent on OJSC Apatit as more than 90 % of its budget incomes come from the company (V. Dyadik, The Deputy Head of the Kirovsk administration & The Head of the Financial-Economic Management of Kirovsk, personal communication in Kirovsk, June 8, 2012). The volatility of the price of natural resources was a significant blow to the Russian economy in 2008–2009, but only had small negative impact on OJSC Apatit and Kirovsk. Hence, a strong belief in further stable development of the local mining company prevailed among the town’s representatives (O. Denisov, The head of the Kirovsk administration, personal communication in Kirovsk, June 8, 2012; A. Obrezanov, The Head of the Management of Economic Development of the Kirovsk administration, personal communication in Kirovsk, June 8, 2012). However, the volatility of natural resource prices and growing competition in world markets caused Kirovsk and OJSC Apatit significant problems in 2013 (Kabysh 2013). Kirovsk and Economic Diversification into Tourism Kirovsk is a special case among the single-industry towns of the Murmansk region due to its diversified economy. Tourism plays a notable role as a secondary industry in the local economy (Gorbunov, personal communication, June 19, 2012). In Kirovsk the development path has Resource-Based Development & the Challenge of Economic Diversification