ABSTRACT
It is clear that the dramatic changes that have taken place in the former Soviet Union have made regions and regional issues far more important than they were during the Soviet era. This chapter explores the reasons for this growing interest in Russia’s regions. At the heart of this exploration is the recognition that the collapse of the Soviet Union has led to both an erosion of central control, in the form of the Federal Government in Moscow, and an increase in the relative autonomy of local administrations in the eighty-nine federal subjects that make up the Russian Federation. Foreign-based economic interests are best divided into private companies and international lending agencies, both of whom have an impact on economic development at the regional scale. The transformation of the Russian economy has introduced two new sets of economic actors with an interest in Russia’s regions: Moscow-based financial institutions and foreign financial institutions.
