Economic Transition in Russia and the New States of Eurasia

By Bartlomiej Kaminski | Go to book overview

these resources are geographically concentrated in a few regions and that the revenues could be huge means that certain oblasts could benefit inordinately from their endowment. Looking at just the petroleum sector, two oblasts--Yamal and Khanty- Mansiiskii autonomous okrug in the Tyumen oblast in Siberia--produce 80 percent of Russia's oil and gas, and just under 20 percent of the world's total output Allowing the oblasts to tax these and keep the revenues would create enormous fiscal disparities and impoverish the federal budget. Russia's policy makers need to focus on how these resource revenues should be shared both between the center and the oblasts and among oblasts. As well, there must be a focus on the design of the resource taxes themselves and how the revenues are ultimately spent. In some sense, natural resources are the future of the Russian Federation; ensuring that the federal budget shares in the resource wealth will be key.

Russia is in a period of nation building. With the nature of the Federation still being defined, the question of who gets the revenues from natural resources is potentially very divisive. In Russia, oblasts argue for greater access to resource revenues on the basis of their "heritage" or entitlement and on the basis of deserving indemnification for ecological and other damage done by resource exploitation in the past under the Soviet regime ( McLure 1994). One of the ironies in Russia is the poverty of resource-rich regions, whose populations have not benefited from their resource wealth, as they no doubt would in most Western economies. Thus, in Russia, many see resource revenues as indemnification for the past abuses of the Soviet system. Such a viewpoint raises fundamental issues about the nature of the Russian Federation.

There is a wide spectrum of possible choices for dividing resource revenues. Given the enormous needs of the federal budget in Russia today, a large (but not exclusive) federal share would be an ideal outcome. But how to achieve this? Using more equitable, transparent, formula- and rules-based intergovernmental arrangements may make it easier to reach a consensus. If mineral-rich localities perceive that they are being treated fairly, they might be less likely to pursue a centrifugal drive that uses the rallying words 'what is mine is mine, what is yours is negotiable" as their only leverage. But, in the end, the decision to allow some resource revenues to flow to the oblast level may be purely political Subnational jurisdictions may not be willing to join a federation (or may not be willing to remain in one) if only their natural-resource heritage is protected ( Musgrave 1983).


Conclusion

The design of a well-functioning intergovernmental fiscal system is key to almost all of Russia's major reform goals. As we have seen, revenue balance at the oblast level is key to macroeconomic stability. Attempts to "squeeze" the subnational sector to achieve budget balance will almost certainly lead to outcomes that are destabilizing--subnational governments will recur to the center, borrow from their banks, accumulate arrears, or expand off-budget financing. A well-

-273-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Economic Transition in Russia and the New States of Eurasia
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 430

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.