ABSTRACT
Since the middle of the 2000s, positive signals could be observed by visitors in Russia. One of the preconditions for these was the reform of local administration in 2006. Local authorities could take the role as mediators between local people and those who held the resources. In the Soviet era, the capacity of local administration was dependent on its relations with the local state companies and higher-level administration. Sovkhozes, kolkhozes and lezkhozes took responsibility for wider group of tasks than would enterprises in a market economy. Interviews provided examples of officials in local administration who act like entrepreneurs to compensate for their community’s inadequate financial resources. In one example, the mayor of a rural community together with the head of culture, both female, tried to encourage entrepreneurship and local development by advising people how to apply for funds for projects. Voluntary contributions may follow as a result of the initiatives of companies themselves or as a result of 'begging practices'.
