Natural Resource-Based economic development project

The Natural Resource-Based Economic Development Project has six interrelated components.

1. Value-Added Wood Processing. The project is assisting in the development of the region's value-added wood processing capacity. When the project was first proposed, there was limited capacity for the manufacture of value-added wood products in the Russian Far East, and what there was, was of poor quality. Even items that were in high demand, such as building components and furniture, were either not produced or simply not able to compete with imports. Local markets exist for dimensional lumber, chairs, and tables, wooden crates for packaging perishables, doors, window frames, and products for light construction.

Russian and Canadian value-added processing and marketing experts are working to identify a small number of products that require minimal capital investment and training to become more productive. These products are expected to generate early revenues, build confidence, and strengthen the enterprise and its partnerships. Training / has been provided in lumber drying techniques; in the manufacture of furniture, thermal windows, and doors; and in the construction of Canadian-style wood frame and round log homes.

2. Non-Timber Forest Products. The goal is to increase local production capacity of non-timber forest products (NTFPs) and to enhance their market acceptance by improving the quality and presentation of the final products. This will provide employment opportunities for aboriginal peoples and other forest dwellers in rural areas where few economic opportunities exist. The Nanaisky Consumer Cooperative is the largest partner organization in this component of the project and has received assistance in developing a promotion and advertising plan for its products.

The project is assisting in the development of NTFP businesses. A business plan has been developed for selected products and market opportunities are being explored for birch sap, fir oil, berries, honey, and mushrooms. Studies are being undertaken to determine the equipment needs of producers and eventually to assist them in purchasing the equipment. The Canadian project team is providing assistance with marketing, packaging, and production technologies. The NTFP component is taking constructive steps to ensure that economic development of the forest resource will be permanent and self-sustaining within the Nanaiski Raion region.

3. Tourism-Based Industry. There is a great undeveloped potential for tourism in the Russian Far East. Of greatest potential is the sport fishing, outdoor adventure, and cultural tourism activities primarily enjoyed by Western tourists and, to a lesser but growing extent, Russian tourists. The project team is working with the local tourism industry to increase the economic importance of this sector to the region. To do so, they are collaborating in developing a regional tourism strategy, improving infrastructure, and identifying opportunities for new businesses.

Studies are being undertaken to determine the potential to attract tourists from both North America and Russia. In addition, promotional materials are being prepared to target potential clients. Russian travel agents and tourism officials have participated in a study tour of British Columbia to become familiar with the operation of Canadian facilities offering similar attractions. Similarly, Canadian tour operators have visited the Russian Far East to become familiar with the opportunities there and to offer suggestions to Russian entrepreneurs on how they can make their operations more attractive to international travelers.

As a consequence of the efforts of the project team, it is expected that the Russian tourism operators will be able to offer a variety of experiences to meet the needs and tastes of Western travelers. There is now a nucleus for expanding tourism between British Columbia and Khabarovsk Krai / Nanaiski Raion. This will support the sustainable long-term economic development of the tourism industry and enhance the economic relationships between Canada and Russia.

4. Creation of a National Park. The governor of Khabarovsk Krai has decreed that 400,000 hectares in the Nanaiski Raion are to become Amur National Park, the first of its kind in Khabarovsk Krai. As a national park, the area will be protected from future development that could adversely impact its ecosystems and threaten the continued existence of its rich endemic flora and fauna. The park is home to rare species such as the Siberian tiger and the Himalayan bear. It is part of a network of protected areas that form ecological corridors for the movement of wildlife.

The park will also be the focal.point for the implementation of the regional tourism development strategy. As part of a balanced strategy for sustainable growth, the creation of protected areas will set an example for other areas in Russia of the possibility for local-level initiatives to pay environmental dividends to current and future generations.

The project is providing assistance in park planning, satellite photography, park rangers’ training, communications and infrastructure. The boundaries of the park have been established, and ongoing work includes the preparation of promotional materials, including a video and still photography. The project is also assisting in the preparation of satellite-based maps that will form an important tool for the preparation of a comprehensive management plan for the park. It is anticipated that the construction of a tourist camp on the Amur River and the development of an interpretative trail to showcase aboriginal people's traditional knowledge of medicinal plants will enhance the tourism value of the park.

The park component of the project will contribute to safeguarding the integrity of the ecosystems and the biodiversity of the area. It will help to protect its rare and endangered species, and it will assist the efforts of Russian stakeholders in raising public awareness of the park and the multiple values associated with it. The development of tourist destinations with appropriate infrastructure will create economic opportunities for the region.

5. Business Ties between Canadian and Russian Indigenous Groups. This component facilitates the establishment of commercially viable projects by Canadian and Russian indigenous peoples. Since 1995, they have been working together to identify opportunities for joint economic and cultural projects that will strengthen each of their communities. Successful new businesses will create much-needed employment and income.

Currently, the most promising businesses are based on traditional handicrafts. A business plan has been developed to promote embroidery and sewing crafts and an arts-and-crafts bazaar by local women. As a starting point, the project has been assisting the Nanai people to improve the marketing of their existing crafts in Russia, Western Canada, and the United States. A study tour was organized to give Nanai representatives exposure to the industry as it is practiced in British Columbia. It is hoped that this will help foster greater capacity within Russian indigenous communities.

Numerous participants have been trained in basic business management skills. They are now better qualified to plan and manage their businesses in the future, basing them on sound market research and financial management. This will lead to more business opportunities and increased productivity. The project has also assisted stakeholders to attend seminars to further develop their skills in project-related activities. Strengthening the entrepreneurial skills of the Nanai people will allow them to increase sales and diversify their products, resulting in greater wealth and employment for both women and men.

6. Replication of Project Successes. From the beginning of the project, there has been a conscious strategy to share the results of the project with other groups in Russia. To do this, the project has strived to clearly document what has been done and to share its experiences and lessons learned with others in the country.

Plans are underway to train people in small business development by contracting and Training a local entrepreneurial development officer who will provide continuity after the project is finished. Business connections are being established by building a network of contacts through Canadian business development missions to Russia and by assisting Russians to attend business expositions, seminars, and conferences. The replication of the project's approach in Russia is being facilitated by the development of a decision-making tool that will aid in determining where and how this approach can be introduced successfully elsewhere.