Export Performance and Survival in Russia: Why some Regions grow fast and others don't
What is governmental effectiveness on the regional level? How can the study of regional effectiveness help us understand the performance of the political, social and economic systems of the state as a whole? These questions are very important from both the theoretical and applied perspectives, and the Russian Federation, with its huge and diverse territory, provides extremely rich material to answer them. Serious institutional reforms in the public sector have been implemented in recent years, and the results vary substantially from one region to another. So, in Russia, we can study how general attempts to make government more effective - guided by federal policies - produce particular regional effects, and, conversely, how regions implement federal policy differently. Both views tell us something important about overall governmental quality.
Governmental effectiveness, though in a broad sense one of the oldest issues in political science and philosophy, is currently enjoying a renaissance. The quantity of recent publications and even a special academic structure - The Quality of Government Institute in Sweden – illustrate the current interest. However, researching governmental effectiveness poses serious difficulties, on both the conceptual and instrumental levels. Despite (perhaps even because of) the variety of available theoretical frameworks, the essential core notions of governmental effectiveness and good governance remain murky. Furthermore, scholars disagree about what effectiveness and efficiency mean in a general sense. These issues obviously make it difficult to construct adequate measurement instruments.
The paper seeks to achieve three goals: 1) to review existing approaches and highlight their weak points; 2) to propose a theoretical framework for analyzing governmental effectiveness using appropriate estimation tools; and 3) to present empirical results based on data on public health care from Russia’s regions. Three patterns that ought to correlate - regional efficiency, how reform has been implemented and public opinion – are, instead, inconsistent with each other. Russia’s health-care sector today faces considerable problems with basic, systemic effectiveness.
We expect economic growth to remain strong in Poland and Latvia in 2016. Despite this robust growth, the new Polish government is likely to soften monetary and fiscal policies to further stimulate the economy, in our view. In 2015, the Latvian economy demonstrated strong resilience to external shocks.
On the basis of in-depth case studies of four Russian regions, Kirov and Voronezh oblasts and Krasnoyarsk and Perm' krais, the trade-offs among social and economic policy at the regional level in Russia are examined. All four regional governments seek to develop entrepreneurship while preserving social welfare obligations and improving compensation in the public sector. Richer regions have a greater ability to reconcile social commitments with the promotion of business. Regions differ in their development strategies, some placing greater emphasis on indigenous business development and others seeking to attract federal or foreign investment. Governors have considerable discretion in choosing their strategy so long as they meet basic performance demands set by the federal government such as ensuring good results for the United Russia party. In all four regions, governments consult actively with local business associations whereas organized labor is weak. However, the absence of effective institutions to enforce commitments undertaken by government and its social partners undermines regional capacity to use social policy as a basis for long-term economic development.
Using panel data for the 2001-2008 period we estimate the gravity model of migration between Russian regions. We show that though the migration flows have been quite stable, their determinants have changed substantially. Our special attention is drawn to the role of distance between the regions. Our special attention is drawn to the role of distance between regions as one of the main factors of migration. Dividing pairs of regions into nine groups according to the distance between regional centers, we estimate the model for each group separately. We find out that social and economic factors are affecting migration mainly between nearby regions. Yet the intensity of flows between distant (>500 km) areas is almost uncorrelated with indicators of social and economic development of regions.
In this paper we study convergence among Russian regions. We find that while there was no convergence in 1990s, the situation changed dramatically in 2000s. While interregional GDP per capita gaps still persist, the differentials in incomes and wages decreased substantially. We show that fiscal redistribution did not play a major role in convergence. We therefore try to understand the phenomenon of recent convergence using panel data on the interregional reallocation of capital and labor. We find that capital market in Russian regions is integrated in a sense that local investment does not depend on local savings. We also show that economic growth and financial development has substantially decreased the barriers to labor mobility. We find that in 1990s many poor Russian regions were in a poverty trap: potential workers wanted to leave those regions but could not afford to finance the move. In 2000s (especially in late 2000s), these barriers were no longer binding. Overall economic development allowed even poorest Russian regions to grow out of the poverty traps. This resulted in convergence in Russian labor market; the interregional gaps in incomes, wages and unemployment rates are now below those in Europe. The results imply that economic growth and development of financial and real estate markets eventually result in interregional convergence.
Subnational political units are growing in influence in national and international
affairs, drawing increasing scholarly attention to politics beyond national capitals.
In this book, leading Russian and Western political scientists contribute to
debates in comparative politics by examining Russia’s subnational politics.
Beginning with a chapter that reviews major debates in theory and method,
this book continues to examine Russia’s 83 regions, exploring a wide range of
topics including the nature and stability of authoritarian regimes, federal politics,
political parties, ethnic conflict, governance and inequality in a comparative perspective.
Providing both qualitative and quantitative data from 20 years of original
research, the book draws on elite interaction, public opinion and the role of
institutions regionally in the post-Soviet
years. The regions vary on a number of
theoretically interesting dimensions while their federal membership provides
control for other dimensions that are challenging for globally comparative
studies. The authors demonstrate the utility of subnational analyses and show
how regional questions can help answer a variety of political questions, providing
evidence from Russia that can be used by specialists on other large countries
or world regions in cross-national
Situated within broader theoretical and methodological political science
debates, this book will be of interest to students and scholars of Russian politics,
comparative politics, regionalism and subnational politics
In the publication we describe Russian regional markets of higher education. We consider the following indicators of the markets: size in terms of students per 10 000 of population; its institutional structure – number of public and private institutions, universities and their local branches; program diversity; level and dynamics of tuition fees during recent years; and levels of market concentration in higher education. For each key indicator we present geographical maps that characterize differentiation of the regional markets. We also analyze indicators of regional markets of higher education in conjunction with clusters of Russian regions outlined by Independent Institute on Social Policy (2006) on the basis of socio-economic indicators and derive meaningful conclusions on differentiation of key indicators of higher education markets. We show that in Russia the level of regional development corresponds to the level of concentration and diversification at regional higher education markets.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.