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Asymmetric Federalism in Russia: Cure or Poison?

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Author Info
Jorge Martinez-Vazquez () (International Studies Program. Andrew Young School of Policy Studies, Georgia State University)

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Abstract

In the early years of its existence, the Russian Federation adopted a system of differential treatment of its regions in order to cope with the great degree of diversity present in them. This paper examines the Russian Federation’s asymmetric federalism by evaluating the system’s role, significance and effects on the Federation’s development. The study incorporates a detailed description of the asymmetric federalism over time along with the benefits and costs incurred by its implementation. It also stresses the importance of the system within the process of nation-building in the Federation over the last decade. The paper concludes that asymmetric federalism helped significantly to glue the country together in the early years when national preservation and unity were the main issues in the Federation. However, as the separatist threats significantly decreased and the political friction and economic difficulties of the asymmetric treatment of regions became more pronounced and obvious, most of the country rightly demanded a simpler, more transparent and fair approach to intergovernmental fiscal relations. Asymmetric federalism, therefore, contributed to the Federation’s 1998 debt crisis and had eroded national solidarity and a national purpose. Thus, the early cure had become poison.

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Paper provided by International Studies Program, Andrew Young School of Policy Studies, Georgia State University in its series International Studies Program Working Paper Series, at AYSPS, GSU with number paper0304.

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Length: 59 pages
Date of creation: 01 Dec 2002
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Handle: RePEc:ays:ispwps:paper0304

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Keywords: Asymmetric Federalism; Russia;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Vladimir Popov, 2004. "Fiscal Federalism in Russia: Rules versus Electoral Politics," Comparative Economic Studies, Palgrave Macmillan Journals, vol. 46(4), pages 515-541, December. [Downloadable!] (restricted)
  2. de Melo, Martha & Ofer, Gur, 1999. "The Russian city in transition - the first six years in ten Volga capitals," Policy Research Working Paper Series 2165, The World Bank. [Downloadable!]
  3. Daniel Berkowitz & David DeJong, 1998. "Russia's Internal Border," William Davidson Institute Working Papers Series 189, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  4. Richard M. Bird & Francois Vaillancourt, 2001. "Reconciling Diversity with Equality: The Role of Intergovernmental Fiscal Arrangements in Maintaining an Effective State in Canada," International Tax Program Papers 0406, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto, revised Apr 2004. [Downloadable!]
  5. Broadman, Harry G. & Recanatini, Francesca, 2001. "Where has all the foreign investment gone in Russia?," Policy Research Working Paper Series 2640, The World Bank. [Downloadable!]
  6. Olivier Blanchard & Andrei Shleifer, 2000. "Federalism with and without Political Centralization: China versus Russia," NBER Working Papers 7616, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Rudiger Ahrend, 2002. "Speed of Reform, Initial Conditions, Political Orientation, or What? Explaining Russian Regions' Economic Performance," DELTA Working Papers 2002-10, DELTA (Ecole normale supérieure). [Downloadable!]
  8. Roy Bahl, 1999. "Intergovernmental Fiscal Relations in Leningrad Region," International Studies Program Working Paper Series, at AYSPS, GSU paper9902, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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  1. Haaparanta, Pertti & Juurikkala, Tuuli & Lazareva, Olga & Pirttilä, Jukka & Solanko, Laura & Zhuravskaya, Ekaterina, 2003. "Firms and public service provision in Russia," BOFIT Discussion Papers 16/2003, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
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  2. Richard Bird, 2001. "Fiscal Federalism in Russia: A Canadian Perspective," International Tax Program Papers 0409, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto, revised Dec 2003. [Downloadable!]
  3. Kwon, Goohoon & Spilimbergo, Antonio, 2005. "Russia's Regions: Income Volatility, Labour Mobility and Fiscal Policy," CEPR Discussion Papers 5265, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Ariane Lambert-Mogiliansky & Konstantin Sonin & Ekaterina Zhuravskaya, 2003. "Capture of Bankruptcy: Theory and Russian Evidence," Working Papers w0038, Center for Economic and Financial Research (CEFIR). [Downloadable!]
  5. Benno Torgler & James Alm & Jorge Martinez-Vazquez, 2005. "Russian Attitudes Toward Paying Taxes – Before, During, and After the Transition," International Studies Program Working Paper Series, at AYSPS, GSU paper0518, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
    Other versions:
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