Leaders of Nizhny Novgorod have sometimes dreamed of making then historic city on the banks of the Volga into the third capital of Russia - after Moscow and St Petersburg.New hotels, offices and shopping centres are , especially in Nizhny Novgorod city. The historic centre has been renovated, including a 15th-century castle overlooking the Volga. The priorities are now to boost the economy and the regional budget.Agriculture in the Nizhny Novgorod region still employs half the workforce, although it accounts for only 1 per cent of production. The industrial landscape is dominated by the GAZ vehicle factory, which makes about 230,000 vehicles a year, including lorries, buses and Volga cars. GAZ's main shareholder, Ruspromavto, plans to modernise production and concentrate on buses and commercial vehicles. Maxim Avdeev, Ruspromavto's chief executive, says: 'We intend to use Nizhny-Novgorod as a development base for our vehicles. If our strategy is correct, we're hoping to create work for more than 500,000.'Foreign investment is playing its part. For example, Japan's Asahi Glass has bought control of the Bor Glassworks, and financed a $100m renovation. Valery Tarbeev, the chief executive, says quality has been improved radically He says: 'lt was clear in the transformation from central planning to the market economy we had to focus on quality not just for today but for the future.'Other foreign companies include Coca-Cola, the US drinks group, which runs a bottling plant, Heineken, the Dutch brewer, which is investing $73m modernising a Volga beer plant, and IKEA, the Swedish furniture retailer, which is planning to invest $90m in a retail centre.Viktor Kolchay, the deputy governor for economic development, argues that business people will appreciate the governor's moves to improve bureaucratic efficiency and cut delay, notably by establishing a one-stop shop for investors. Nizhny Novgorod will focus on its attractions for investors, including a skilled workforce, good transport links, and its position at the heart of central Russia. Mr Kolchay says: 'We are at the crossroads of east-west and north-south trade routes.'
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