ABSTRACT
Transition from a centrally planned to a market economy implies - by definition - a massive decentralisation of economic decision making. In the Soviet Union, one result of central planning was geographical decentrali sation of economic activity to a large set of mono-industrial towns. For Russian regions in transition, an important question is whether centripetal market forces may alter the pre-existing industrial location. This chapter addresses regional economic development in Russia in general and the situation in Murmansk and Arkhangelsk Oblasts in particular.
