ABSTRACT
In any federal system, the way in which tax revenue is collected and apportioned is a major aspect of relations between the regions and the centre. Many of the regions that benefited most from the Soviet system primarily those with a concentration of defence industries and situated far from Russia's European core have fared worst following the collapse of central planning and financing. In parallel with the planned economy, informal networks developed between enterprises and their directing ministry in Moscow; between enterprises located near each other but reporting to different ministries; and between all of these and the regional committee of the Communist Party and the regional Soviet (the local legislature). Only the local party authorities had any kind of overview of the economic situation in their areas, and acted as links between economic entities to deal with scarcities and bottlenecks. Most regions remain dependent on the centre, despite claims to self-sufficiency following the 1998 crisis.
