Russia's Frangible Tendency to Rise: What Can Be Observed at Macro- and Meta-Level?

Abstract

This paper is an extraction of some results achieved in a comprehensive study of Russia's transition in its regional as well as sectoral dimension. Thereby, the transition process between 1993 - 2000 has been approximated by aggregated developments of productivity, technical change, and technical efficiency which all have been calculated by a Stochastic Frontier Analysis (SFA). The obtained results have been analyzed with respect to any institutional circumstances in a second analytical step. Based on that, in a third step, some political call for actions have been specified as well as addressed according to regional/federal responsibility. The study has shown a notable heterogeneity within the considered regional as well as sectoral transition paths. Occasionally, the individual trends even diverge and provide, however, a growing economic polarization among Russia's regions. Background of these trends are, above all, spatial divergent institutional conditions caused by various reform implementations and/or reform strictness. Hence, the crucial call for political action had to be addressed regionally. At federal level, just coordinating and flanking measures have been mentioned. Altogether it can be summarized: The necessary pre-conditions for a successful transition in Russia seem to be given. But there is apparently a need in some regions for an adequate individual adjustment as well as, sometimes, for a sustainable stimulus in order to trigger a change. Hence, the particular embodiment of the regional transition path, the political initiative, and, therefore, any success on Russia's way from a 'planned towards a market economy' are incumbent on the regions. Admittedly, those have to be aware of own potentials. The regions should develop their individual chances actively and, however, try to turn specialties into benefits. Since this will be successful, it can be a source of substantial growth at regional as well as at federal level.Russia, transition, productivity, efficiency, regional development, Political Economy, O47,