Russian Regional Resilience: Finance, Cooperation And Resource Abundance (A Case Study Of Khanty-Mansiysk)
This paper, part of a larger project on governance and growth in Russia, examines regional financial resilience in Russia in the period following the global financial crisis. The level of risk is rising, as government emergency finance is withdrawn and regions face rising debt to cover even operational expenses, but “resource” regions seem securely well off, despite having been most affected by the financial crisis. This paper examines one region, Khanty-Mansiysk autonomous okrug (KhMAO), the largest “donor” to the federal budget, against the background of other mineral resource abundant regions. It traces developments since the dramatic budget reforms (late 1990s through 2005), including centralization of revenues and rationalized program expenditure (Alexeev and Weber 2013). It assesses regional budget and debt management in response to pressures from increased federal required expenditures, post-crisis withdrawal of subsidies, and the roll-out of new debt guidelines. It describes and explains KhMAO’s stability and relative autonomy in these crisis conditions. The key questions are: Why are these “donor” regions, more affected by the crisis than others, also more resilient? Is Russia’s growth core of regions financially stable because of federal intervention? How vulnerable is the resource region to future oil price shocks? Our findings are tentative, since there remain questions about transparency and soft budget constraints (Plekhanov 2006). We show federalism at its most cooperative: among other factors, regional collaborative action fosters flexible budgeting.
|Date of creation:||2014|
|Date of revision:|
|Publication status:||Published in WP BRP Series: Public Administration / PA, May 2014, pages 1-24|
|Contact details of provider:|| Postal: Myasnitskaya 20, Moscow 101000|
Web page: http://www.hse.ru/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Antonio Spilimbergo, 2005.
"Measuring the Performance of Fiscal Policy in Russia,"
IMF Working Papers
05/241, International Monetary Fund.
- Antonio Spilimbergo, 2007. "Measuring the Performance of Fiscal Policy in Russia," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 43(6), pages 25-44, November.
- Jorge Martinez-Vazquez & Mark Rider & Sally Wallace, 2008. "Tax Reform in Russia," Books, Edward Elgar Publishing, number 2368.
- Papyrakis, Elissaios & Gerlagh, Reyer, 2007. "Resource abundance and economic growth in the United States," European Economic Review, Elsevier, vol. 51(4), pages 1011-1039, May.
- Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
- Andrei Shleifer & Daniel Treisman, 2005. "A Normal Country: Russia After Communism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 151-174, Winter.
- Freinkman, Lev & Plekhanov, Alexander, 2005. "What determines the extent of fiscal decentralization ? The Russian paradox," Policy Research Working Paper Series 3710, The World Bank.
- Daniel Berkowitz & David N. DeJong, 2005.
"Entrepreneurship and Post-socialist Growth,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 67(1), pages 25-46, 02.
- Berkowitz, Daniel & DeJong, David N., 2003.
"Policy reform and growth in post-Soviet Russia,"
European Economic Review,
Elsevier, vol. 47(2), pages 337-352, April.
- Rudiger Ahrend, 2005. "Speed of Reform, Initial Conditions or Political Orientation? Explaining Russian Regions' Economic Performance," Post-Communist Economies, Taylor & Francis Journals, vol. 17(3), pages 289-317.
- Lev Freinkman & Konstantin A. Kholodilin & Ulrich Thießen, 2009. "Incentive Effects of Fiscal Equalization: Has Russian Style Improved?," Discussion Papers of DIW Berlin 912, DIW Berlin, German Institute for Economic Research.
- Cristian Sepúlveda & Jorge Martinez-Vazquez, 2010.
"The Consequences of Fiscal Decentralization on Poverty and Income Inequality,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper1002, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Cristian F Sepulveda & Jorge Martinez-Vazquez, 2011. "The consequences of fiscal decentralization on poverty and income equality," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 29(2), pages 321-343, April.
- Solanko, Laura, 2001. "Fiscal competition in a transition economy," BOFIT Discussion Papers 4/2001, Bank of Finland, Institute for Economies in Transition.
- Richard A. Musgrave, 1997. "Devolution, Grants, and Fiscal Competition," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 65-72, Fall.
- Yingyi Qian & Barry R. Weingast, 1997.
"Federalism as a Commitment to Reserving Market Incentives,"
Journal of Economic Perspectives,
American Economic Association, vol. 11(4), pages 83-92, Fall.
- Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Preserving Market Incentives," Working Papers 97042, Stanford University, Department of Economics.
- Guriev, Sergei & Yakovlev, Evgeny & Zhuravskaya, Ekaterina, 2010.
"Interest group politics in a federation,"
Journal of Public Economics,
Elsevier, vol. 94(9-10), pages 730-748, October.
- Sergei Guriev & Evgeny Yakovlev & Ekaterina Zhuravskaya, 2010. "Interest Group Politics in a Federation," Post-Print halshs-00754421, HAL.
- Guriev, Sergei & Yakovlev, Evgeny & Zhuravskaya, Ekaterina, 2008. "Interest Group Politics in a Federation," CEPR Discussion Papers 6671, C.E.P.R. Discussion Papers.
- Sascha O. Becker & Peter H. Egger & Maximilian von Ehrlich, 2013.
"Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects,"
American Economic Journal: Economic Policy,
American Economic Association, vol. 5(4), pages 29-77, November.
- Becker, Sascha O & Egger, Peter H & Von Ehrlich, Maximilian, 2012. "Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: Regression Discontinuity Design with Heterogeneous Treatment Effects," CAGE Online Working Paper Series 89, Competitive Advantage in the Global Economy (CAGE).
- Anton Siluanov & Pavel Kadochnikov & Vladimir Nazarov & Arseny Mamedov, 2009. "Intergovernmental Relations and Subnational Finances in Russia in 2008," Published Papers 31, Gaidar Institute for Economic Policy, revised 2012.
- Iimi, Atsushi, 2005. "Decentralization and economic growth revisited: an empirical note," Journal of Urban Economics, Elsevier, vol. 57(3), pages 449-461, May.
- Granville, Brigitte & Leonard, Carol S., 2010. "Do Informal Institutions Matter for Technological Change in Russia? The Impact of Communist Norms and Conventions, 1998-2004," World Development, Elsevier, vol. 38(2), pages 155-169, February.
- Alisher Akhmedjonov, 2011. "Do Higher Levels of Education Raise Earnings in Post-Reform Russia?," Eastern European Economics, M.E. Sharpe, Inc., vol. 49(4), pages 47-60, July.
- Alisher Akhmedjonov & Marco Chi Keung Lau & Berna Balcı İzgi, 2013. "New evidence of regional income divergence in post-reform Russia," Applied Economics, Taylor & Francis Journals, vol. 45(18), pages 2675-2682, June.
- Rudiger Ahrend, 2008.
"Understanding Russian Regions' Economic Performance during Periods of Decline and Growth: An Extreme-bound Analysis Approach,"
OECD Economics Department Working Papers
644, OECD Publishing.
- Ahrend, Rüdiger, 2012. "Understanding Russian regions’ economic performance during periods of decline and growth—An extreme bound analysis approach," Economic Systems, Elsevier, vol. 36(3), pages 426-443.
- Jorge Martinez-Vazquez & Andrey Timofeev & Jameson Boex, 2006. "Reforming Regional-Local Finance in Russia," World Bank Publications, The World Bank, number 6925, October.
- de Mello, Luiz Jr, 2000. "Fiscal Decentralization and Intergovernmental Fiscal Relations: A Cross-Country Analysis," World Development, Elsevier, vol. 28(2), pages 365-380, February.
- repec:taf:applec:45:y:2013:i:18:p:2675-2682 is not listed on IDEAS
- Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
- Andrés Rodríguez-Pose & Richard Sandall, 2008. "From identity to the economy: analysing the evolution of the decentralisation discourse," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 26(1), pages 54-72, February.
- Freinkman, Lev & Plekhanov, Alexander, 2009. "Fiscal Decentralization in Rentier Regions: Evidence from Russia," World Development, Elsevier, vol. 37(2), pages 503-512, February.
- Israel Marques & Eugenia Nazrullaeva & Andrei Yakovlev, 2011. "From Competition to Dominance: Political Determinations of Federal Transfers in Russian Federation," HSE Working papers WP BRP 12/EC/2011, National Research University Higher School of Economics.
- Jorge Martinez-Vasquez & Jameson Boex, 2001. "Russia's Transition to a New Federalism," World Bank Publications, The World Bank, number 15248, October.
- Lavrov, Aleksei & Litwack, John & Sutherland, Douglas, 2001. "Fiscal federalist relations in Russia: a case for subnational autonomy," MPRA Paper 26537, University Library of Munich, Germany.
- Berkowitz, Daniel & DeJong, David N., 2011.
"Growth in post-Soviet Russia: A tale of two transitions,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 79(1), pages 133-143.
- Berkowitz, Daniel & DeJong, David N., 2011. "Growth in post-Soviet Russia: A tale of two transitions," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1-2), pages 133-143, June.
- Alexeev, Michael & Kurlyandskaya, Galina, 2003. "Fiscal federalism and incentives in a Russian region," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 20-33, March.
- Slinko, Irina & Yakovlev, Evgeny & Zhuravskaya, Ekaterina, 2003. "Institutional Subversion: Evidence from Russian Regions," CEPR Discussion Papers 4024, C.E.P.R. Discussion Papers.
- Desai, Raj M. & Freinkman, Lev & Goldberg, Itzhak, 2005. "Fiscal federalism in rentier regions: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 814-834, December.
- Martinez-Vazquez, Jorge & Timofeev, Andrey, 2008.
"Regional-local dimension of Russia's fiscal equalization,"
Journal of Comparative Economics,
Elsevier, vol. 36(1), pages 157-176, March.
- Jorge Martinez-Vazquez & Andrey Timofeev, 2006. "Regional-Local Dimension of Russia's Fiscal Equalization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0616, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
When requesting a correction, please mention this item's handle: RePEc:hig:wpaper:15/pa/2014. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamil Abdulaev)or (Victoria Elkina)
If references are entirely missing, you can add them using this form.