ABSTRACT

This chapter investigates the consequences of sub-national regimes for public policy, and focuses on natural resources and the way governments deal with them. Russia is extremely rich in terms of both mineral and non-mineral resources, and therefore it is hardly possible to discuss the development of Russian politics and economy without taking this aspect into account. The literature on the economic effects of mineral resource endowment is extremely rich and is strongly related to the discussion of the resource curse: resource-rich regions are characterized by lower growth rates. The analysis of sub-national resource curse is, generally, a novel field, and most studies in this area have concentrated on purely economic effects or looked at the role of economic institutions. The chapter illustrates empirical testing of the possible implications of sub-national political regimes for the ability of mineral resources to generate economic growth.