Regional Research and Regional Policy in Russia

Leonid Limonov, RSA Ambassador for Russia, ICSER “Leontief Centre” and NRU
“Higher School of Economics”, St Petersburg, Russia

Regional policy and institutional context

Russia is a federal state with a republican form of government in Eastern Europe and
northern Asia. It consists of 85 equal constituent entities of the Federation, of which 46 are
referred to as “oblast”, 22 as “republic”, nine as “krai”, three as “city of federal significance”,
four as “autonomous district”, and one as “autonomous region”. In addition to federal
authorities, each constituent entity of the Federation has its own branches of government:
executive (usually a governor or head of the region), legislative (a regional parliament) and
judicial (a constitutional (statutory) court of the constituent entity). Each constituent entity
has its own constitution or charter, as well as its own legislation adopted by the regional
parliament. Each constituent entity of the Federation has two representatives in the upper
house of the Russian parliament (the Federation Council). All the constituent entities of the
Federation have equal rights in their relations with the federal government authorities. The
constituent entities have authority to make decisions on the matters reserved to constituent
entities by the Constitution. The constituent entities of the Russian Federation have no right
to withdraw from the Federation.
The process of formation and evolution of the state regional policy can be divided
into several milestones: before the year 1994; 1994 to 1999; and the modern time (from the
year 2000 onwards).
The starting point for the formation of the Russian regional policy was the adoption of
the Declaration of State Sovereignty of the RSFSR in 1991, which indicated the need to
substantially extend the rights of autonomous republics, oblasts, districts and krais. The
early 1990s were marked by a deep social and economic crisis that affected all dimensions of
Russian society, a drop in the living standards, and certain political factors, such as the
weakness and inconsistency of the federal center that led to growth of inter-regional
disparities. Interactions between the center and the regions were confrontational, and the
federation was asymmetrical. The economic development of the Russian regions in that
period involved the emergence of elements of autarchy.
 The creation of free economic zones can be regarded as a significant component of
the state regional policy in the early 1990s. The provision of preferential treatment to
businesses in certain areas was intended to expedite the reforms, organize production of
new products, promote foreign economic activities, and attract more investment. Free
economic zones were seen as a kind of counterweight to the centralized system of
management which existed in 1990-1991.
The first stage in the development of Russia’s state regional policy ended with the
adoption of a new Constitution in December 1993.
The second stage in the development of the state regional policy (1994–1999) took
place in a different, much better political and socio-economic landscape. This was due to the
presidential form of government, the concentration of more resources in the hands of the
federal center, a slowing decline in the production sector, and relative stabilization of the
economy and living standards. One of the most characteristic manifestations of the regional
policy was the execution of agreements on the division of powers and jurisdictions between
the federal center and the regions in 1994-1998.
In 1994, a Regional Financial Support Fund was introduced as part of the federal
budget to set uniform procedures for defining the amount of financial support for the
regions and to establish a direct relationship between the amount of the Fund and the
federal budget revenues.
Federal special-purpose and presidential programs that provided for the development
of certain territories or included a territorial component were an important tool for the
implementation of the state regional policy. These represented a set of research, production,
socio-economic, organizational, economic and other activities linked in their objectives,
resources and implementation dates to effectively solve systemic problems in the field of
state, economic, environmental, social and cultural development of Russia.
The third stage in the evolution of the state regional economic policy began in 2000.
Its characteristic features include a significant strengthening of the federal center and the
implementation of radically new approaches to the governance of the country. Seven federal
districts with plenipotentiaries of the President were established. The formation of the
federal districts reflected the intention of the federal center to shift to a new model of
territorial development based on macro-regional management. An important factor to
overcome the regional fragmentation was the development of strategies for socio-economic
development of the federal districts. A notable trend in the state regional policy in the first
decade of the 21st century was to consolidate the constituent entities of the federation by
the absorption of autonomous districts into the krais.
In addition to the recovery of the common economic and legal space across the
country, steps were taken to harmonize general approaches to managing social and
economic development of regions. Common principles and requirements for financial and
budget planning were set at all levels of government. The role of revenues received by
regional and local budgets increased, providing a basis for the generation of budget revenues
of each level mainly by collecting own taxes in the long run. The basic approaches to the
preparation and coordination of territorial planning arrangements, master plans and other
territorial planning documents have been harmonized. An important role in the modern
regional development is played by development institutions, public corporations.
A significant contribution to the state regional economic policy was made by the
adoption of the Federal Law “On General Principles of Local Self-government in the Russian
Federation” which came into force in 2006. The Law added a third level of government in
Russia — local self-government which is the closest to the population. Regional authorities
delegated some of their powers to new municipal entities. However, by no means all regional
administrations wanted to share their powers with local self-government bodies. The cities of
federal significance have implemented a model where municipal entities were granted minor,
basically purely “decorative” powers.
In the period between September 2004 and September 2014 (as well as in 1998-
1999), Russia had the Ministry of Regional Development in the structure of its federal
executive authorities. It was responsible for the development of the state policy and legal
regulation in the field of social and economic development of regions, federal and national
relations, division of powers with respect to the matters within the joint competence of the
federal center and the regions, local self-government, cross-border cooperation, the
development of the Far North and Arctic, and the protection of national minority rights, the
native habitats and traditional lifestyles of indigenous minority peoples and ethnic
communities. In its activities, the Ministry of Regional Development cooperated with other
federal agencies, first of all with the Ministry of Economic Development and the Ministry of
Finance of Russia. It has contributed to a number of federal special-purpose programs and
allocated funds from the Investment Fund of the Russian Federation. Currently, its functions
are distributed between the territorial ministries (the Ministry for the Development of the
Far East, the Ministry for the North Caucuses), the Ministry of Construction and Housing, and
the Ministry of Economic Development.
Thus, the state regional policy takes a central place in the formation of the modern
public governance system in Russia and has a strong influence on all aspects of the
development of the country. Despite significant progress in the improvement of the state
regional economic policy over the past stages, a number of challenges are still to be resolved,
such as highly differentiated levels of socio-economic development between regions and an
excessive concentration of financial and administrative resources in the hands of the federal
center, leading to reduced incentives for the regions to rely on their own capabilities in
promoting their development.
 Regional studies and research institutes

Modern regional science in Russia has experienced considerable development since

its inception.
The first steps in regional studies in Russia were taken in the 1920s. At that time,
research institutes and teams were mainly focused on the preparation and implementation
of the National Electrification Plan. The Plan, implemented over a 10-15 year period, focused
on restructuring the economy based on electrification of the country, with distinct
development strategies for each region. Considerable scientific research was dedicated to
territorial development and industrialization. At that time, regional aspects of economic
planning and forecasting were dealt with by the following academic institutes: the Institute
of Economics of the USSR Academy of Sciences, the Institute of Economic Studies of the
USSR State Planning Committee, the Council for the Study Productive Forces in the Soviet
Union, and the Commission for Natural Productive Forces at the USSR Academy of Sciences.
One hundred combined expeditions were established across the RSFSR. Economic geography
served as the theoretical basis for regional studies and territorial planning. It was developed
by I.G. Aleksandrov, N.N. Baransky, V.F. Vasyutin, N.A. Kovavlevsky, L.N. Nikitin, S.P. Strumilin,
A.D. Danilov and A.I. Lavrishchev. Economic geography played a major role in the planning of
sites of certain economic entities and sectors in the territory of the USSR republics.
The second stage, beginning in the early 1960s, was characterized by large-scale
capital construction and the launch of many industrial facilities in the newly developed areas.
The Council for the Study of Productive Forces at the USSR State Planning Committee
became the scientific center for the territorial organization of productive forces in the
country. It was responsible for managing the preparation of major scientific, theoretical and
methodological studies, primarily with respect to the development and siting of industrial
production facilities and industries across the country.
A specialized Institute of Economics and Industrial Engineering was established and
structurally integrated into the Siberian Branch of the USSR Academy of Sciences in that
period. The Institutes of Economics of the Urals, Western and Eastern Siberia, and the Far
East were created as part of this Institute. These institutes dealt with the development
forecasting and planning of certain territories. At that time, researchers started to use
economic and mathematical methods in their territorial economic research.
The third stage in the development of regional studies occurred after the breakdown
of the USSR and is characterized by the adaptation of the regional economy and its
methodological framework to market conditions. With the emergence of numerous
development institutions, the last twenty five years can be described as a renaissance of
regional studies in Russia.
Currently, a large number of organizations are engaged in regional studies in Russia.
They both conduct research activities and complete commercial orders to advise government
authorities and businesses on the siting of productive forces, promotion of the socio-
economic development of territories, etc. A significant number of these organizations are
divisions of Russia’s largest universities, such as the Geography Department of the
Lomonosov Moscow State University, the Institute of Earth Sciences at the St. Petersburg
State University of Sciences, and research laboratories at the Higher School of Economics.
Divisions of the Russian Academy of Sciences also contain important regional research
teams. A significant role in the development of regional science is played by analytical
centers, such as the Center for Strategic Research and the Institute of Urban Economics. A
broad overview of relevant organizations is given in the list of institutions engaged in regional
studies.
The main Russian scientific journal that publishes regional studies in English is the
Regional Research of Russia. The main purpose of the journal is to restore contacts between
Russian and foreign researchers to bring Russian scholars back to the arena of international
discussions and global science. The journal incorporates articles on social geography, regional
economics, sociology and other areas of regional studies published in the three major
Russian magazines focusing on regional studies (Region: Ekonomika i Sotsiologiya [Region:
Economics and Sociology], Vestnik Rossiyskoi Akademii Nauk. Geografiya [Bulletin of the
Russian Academy of Sciences. Geography], and Vestnik Russkogo Geograficheskogo
Obshchestva [Bulletin of the Russian Geographical Society]). The journal aims to show the
professional level of regional studies and the level of development of the territories in
Russia. Another publication with a significant focus on regional policy and economics is the
Prostranstvennaya Ekonomika [Spatial Economics] magazine published by the Economic
Research Institute of the Far Eastern Branch of the Russian Academy of Sciences. Russia’s
leading magazine on theory and practice of economics, Voprosy Ekonomiki [Issues of
Economics], publishes significant research papers on regional economy and is also of interest
to researchers.

List of institutions engaged in regional studies:

Lomonosov Moscow State University

Geography Department
Geography Department, Lomonosov State University, GSP-1, Leninskiye Gory,
Moscow, 119991
Tel.: (495) 939-22-38
Fax: (495) 932-88-36
E-mail: info@geogr.msu.ru
Website: geogr.msu.ru

Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian
Academy of Sciences
17 Akademika Lavrentieva pr.,
Novosibirsk, Novosibirsk Region, 630090
Tel.: (383) 330-05-30
Fax: (383) 330-25-80
E-mail: ieie@ieie.nsc.ru, press@ieie.nsc.ru
Website: ieie.su

International Center for Social and Economic Research Leontief Center

25A 7-ya Krasnoarmeiskaya str.,
Partnerstvo Business Center,
St. Petersburg, 190005
Tel.: (812) 314-41-19
Fax: (812) 570-38-14
E-mail: karelina@leontief.ru
Website: leontief-centre.ru
Website of the Resource Centre on Strategic Planning under Leontief Centre: stratplan.ru

Council for the Study of Productive Forces Federal Research Institution

7 Vavilova str.,
GSP-7, Moscow, 117997
Tel.: (499) 135-61-08
Fax: (499) 135-63-39
E-mail: sops@sops.ru
Website: sops.ru

Institute of Urban Economics Foundation

20 Tverskaya str., build. 1,
Moscow, 125009
Tel. (Fax): (495) 363-50-47, (495) 787-45-20
E-mail: mailbox@urbaneconomics.ru
Website: urbaneconomics.ru

Center for Strategic Research North West Foundation

15 26-ya Liniya V.O., build. 2, litt. A,
St. Petersburg, 199106
Tel.: (812) 380-03-20, (812) 380-03-21
E-mail: mail@csr-nw.ru
Website: csr-nw.ru

CSR Foundation
68/70 Butyrsky Val str., build. 1, Baker Plaza Business Center,
Moscow, 127055
Tel.: (495) 725-78-06, (495) 725-78-50
Fax: (495) 725-78-14
E-mail: info@csr.ru
Website: csr.ru
Far Eastern Federal University
Far Eastern Center for Economic Development and Integration of Russia into the Asia-
Pacific Region
8 Sukhanova str.,
Vladivostok, Primorsky Krai, 690950
Far Eastern Federal University Campus: build. 4, office 22, Russky Island, Vladivostok
Tel.: (423) 265-24-24, ext. 4157
E-mail: abramov.al@dvfu.ru
Website: dvfu.ru/science/rec-far-eastern-center-of-economic-development-and-russia-s-
integration-in-the-asia-pacific-region

National Research University Higher School of Economics

Divisions:
Institute of Regional Studies and Urban Planning
12 M. Pionerskaya str., office 561,
Moscow, 115054
Tel.: (495) 772-95-90 ext. 22200, 22201, 22202, 22203, 22204
Fax: (495)772-95-90 ext. 22085
E-mail: irsup@hse.ru
Website: irsup.hse.ru
Institute of State and Municipal Management
11 Myasnitskaya str.,
Moscow, 101000
Tel.: (495) 621-64-18; (495) 772-95-90 ext. 111-74
E-mail: ipag@hse.ru
Website: ipag.hse.ru
Institute of Public Resource Management
12 M. Pionerskaya str.,
Moscow, 115054
Tel.: (495) 628-56-60
Website: hse.ru/pubresource
Vysokovsky Graduate School of Urbanism
8 Pokrovsky blvd.,
Moscow, 109028
Tel.: (495) 725-30-06
E-mail: city@hse.ru
Website: urban.hse.ru
Forsight International Research and Education Center at the Institute of Statistical Studies
and Economics of the NRU HSE
9-11 Myasnitskaya str.,
Moscow, 101000
Tel.: (495) 628-02-12
Fax: (495) 625-03-67
E-mail: foresight@hse.ru
Website: foresight.hse.ru
Laboratory for Market Theory and Spatial Economics
16 Soyuza Pechatnikov str., office 109,
St. Petersburg, 190068
Tel.: (812) 400-13-47
E-mail: ces@hse.ru, ces.hse@gmail.com
24/7 Myasnitskaya str., build. 3, office 405,
Moscow, 101000
E-mail: dvertkina@hse.ru
Website: ces.hse.ru

Russian Academy of National Economy and Public Administration under the President of
the Russian Federation
Divisions:
Institute of Public Administration and Management
84 Vernadskogo pr. (build. 1 of the Russian Academy of National Economy and Public
Administration), office 2273,
Moscow, 119571
Tel.: (499) 956-03-20, (499) 956-95-34
E-mail: dekanat@migsu.ranepa.ru
Higher School of Public Administration
84 Vernadskogo pr., build. 3 (build. 9 of the Russian Academy of National Economy and Public
Administration, floors 15-16),
Moscow, 119571
Tel. (Fax): (499) 956-94-19
E-mail: hspa@ranepa.ru
Website: ranepa.ru

St. Petersburg State University

Institute of Earth Sciences
33-35 10-ya Liniya V.O.,
St. Petersburg, 199178
Tel.: (812) 363-62-21
E-mail: s.aplonov@spbu.ru
Website: earth.spbu.ru

St. Petersburg State University of Economics

Department of Regional Economics and Environmental Management
30/32 Griboyedova canal emb., room 3048,
St. Petersburg, 191023
Tel.: (812) 310-47-29
E-mail: dept.krep@unecon.ru
Website: unecon.ru/gumanitarnyy-fakultet/kafedra-rep

St. Petersburg National Research University of Information Technologies, Mechanics and

Optics
Institute of Design and Urban Planning
14A Birzhevaya liniya,
St. Petersburg, 199034
Tel.: (812)457-18-01
E-mail: alexey.shvarev@corp.ifmo.ru
Website: idu.ifmo.ru
Institute for Public Finance Reform
1/12 Bolshoy Kislovsky lane, build. 2,
Moscow, 125009
Tel.: (495) 691-67-89
Fax: (495) 691-67-05
E-mail: irof@irof.ru
Website: irof.ru

Institute of Sociology of the Russian Academy of Sciences

Center of Regional Sociology and Conflict Resolution
24/35 Krzhizhanovskogo str., build. 5,
Moscow, 117218
Tel.: 8 (495) 719-09-40
Fax: 8 (495) 719-07-40
E-mail: isras@isras.ru
Website: isras.ru/crs.html
Expert Analytical Center
105 Malysheva str., office 608,
Yekaterinburg, Sverdlovsk Region, 620062
Tel. (Fax): (343) 345-03-42 ext. 72,78
E-mail: expertural@expertural.com, acexpert@acexpert.ru
Website: acexpert.ru

Russian State Research and Design Institute of Urban Planning

21 Basseinaya str.,
St. Petersburg, 196191
Tel.: (812) 370-11-76
Fax: (812) 370-11-76
E-mail: mail@urbanistika.ru
Website: urbanistika.ru
Ammosov North-Eastern Federal University
Research Institute of Regional Economy of the North
1 Lenina pr., Yakutsk,
Sakha Republic (Yakutia), 677891
Tel. (Fax): (4112) 49-67-40
E-mail: mv.nikolaev@s-vfu.ru
Website: s-vfu.ru/universitet/rukovodstvo-i-struktura/instituty/niires

Ural Federal University

Higher School of Economics and Management
19 Mira str., Yekaterinburg,
Sverdlosvk Region, 620002
Tel.: (343) 374-35-72, (343) 375-48-80
E-mail: gsem@urfu.ru
Website: gsem.urfu.ru

Urbanica Institute of Spatial Planning

87 Ligovsky pr., Andreevsky Dom Business Center, office 301,
St. Petersburg, 191040
Tel.: (812) 449-19-30
Fax: (812) 449-19-30
E-mail: info@urbanica.spb.ru
Website: urbanica.spb.ru

ENCO Research and Design Institute of Spatial Planning

31 18-ya Liniya V.O., Senator Business Center, building D, office 407,
St. Petersburg, 199178
Tel.: (812) 332-97-10, (812) 332-97-14
E-mail: enko@enko.spb.ru
Website: enko.spb.ru
National Guild of Urban Planners
21A Basseinaya str., office 33N,
St. Petersburg, 196191
Tel.: (812) 337 17 11
Fax: (812) 337 17 11
E-mail: ngg@ngup.ru
Website: ngup.ru

International Assembly of Capitals and Large Cities (MAG)

11 Novy Arbat, office 1925,
Moscow, 119019
Tel.: (495) 691-12-90, 691-95-50, 690-15-90
Fax: (495) 691-12-85
E-mail: mag@e-gorod.ru, mag_oo@rambler.ru
Website: e-gorod.ru