IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Russian Regional Resilience: Finance, Cooperation And Resource Abundance (A Case Study Of Khanty-Mansiysk)

  • Irina N. Ilina


    (National Research University Higher School of Economics.)

  • Carol S. Leonard


    (National Research University Higher School of Economics.)

  • Evgenij E. Plisetskij


    (National Research University Higher School of Economics.)

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 The level of risk is rising, as government emergency finance is withdrawn and regions face rising debt to cover even operational expenses, but “resource” regions seem securely well off, despite having been most affected by the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.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 15/PA/2014.

in new window

Length: 24 pages
Date of creation: 2014
Date of revision:
Publication status: Published in WP BRP Series: Public Administration / PA, May 2014, pages 1-24
Handle: RePEc:hig:wpaper:15/pa/2014
Contact details of provider: Postal: Myasnitskaya 20, Moscow 101000
Phone: +7(495)7713232
Fax: +7(495)6287931
Web page:

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Freinkman, Lev & Plekhanov, Alexander, 2005. "What determines the extent of fiscal decentralization ? The Russian paradox," Policy Research Working Paper Series 3710, The World Bank.
  8. 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.
  9. 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).
  10. Antonio Spilimbergo, 2005. "Measuring the Performance of Fiscal Policy in Russia," IMF Working Papers 05/241, International Monetary Fund.
  11. Laura Solanko, 2002. "Fiscal competition in a transition economy," Public Economics 0209002, EconWPA.
  12. 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.
  13. 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.
  14. Jorge Martinez-Vasquez & Jameson Boex, 2001. "Russia's Transition to a New Federalism," World Bank Publications, The World Bank, number 15248, September.
  15. 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.
  16. 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.
  17. Daniel Berkowitz & David DeJong, 2001. "Entrepreneurship and Post-Socialist Growth," William Davidson Institute Working Papers Series 406, William Davidson Institute at the University of Michigan.
  18. Iimi, Atsushi, 2005. "Decentralization and economic growth revisited: an empirical note," Journal of Urban Economics, Elsevier, vol. 57(3), pages 449-461, May.
  19. 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.
  20. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
  21. Freinkman, Lev & Plekhanov, Alexander, 2009. "Fiscal Decentralization in Rentier Regions: Evidence from Russia," World Development, Elsevier, vol. 37(2), pages 503-512, February.
  22. 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.
  23. 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.
  24. Andr�s Rodr�guez-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.
  25. Slinko, Irina & Yakovlev, Evgeny & Zhuravskaya, Ekaterina, 2003. "Institutional Subversion: Evidence from Russian Regions," CEPR Discussion Papers 4024, C.E.P.R. Discussion Papers.
  26. 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.
  27. 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.
  28. 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.
  29. 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.
  30. 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.
  31. Jorge Martinez-Vazquez & Andrey Timofeev & Jameson Boex, 2006. "Reforming Regional-Local Finance in Russia," World Bank Publications, The World Bank, number 6925, September.
  32. repec:taf:applec:45:y:2013:i:18:p:2675-2682 is not listed on IDEAS
  33. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
  34. 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.
  35. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
  36. Richard A. Musgrave, 1997. "Devolution, Grants, and Fiscal Competition," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 65-72, Fall.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.