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Russia's transition to a new federalism (English)

In the preface to this report, it is asserted that, "history hovers... over any discussion of fiscal federalism in Russia." This report not only reviews that history, but also follows it to the present situation with respect to the difficult policy choices facing the new Putin-led government, and neatly links Russia's choices with the broader issues facing any country undergoing intergovernmental reform. Thus, the authors weave into the discussion the dynamics of Russia's options with respect to deciding who delivers what services and how to finance these services with the question of the fiscal politics of change, or the intergovernmental and inter-regional balancing and counterbalancing of power. Furthermore the authors tie these questions together with those of how to implement good governance: should it be piecemeal or unified, asymmetric or uniform, and centrally driven or locally controlled? This report also initiates the first in a series of studies that will be published in the World Bank Institute's Learning Resource Series on the issues of governance and decentralization as they are framed by the WBI's broader set of programs in public finance and financial management.


  • Author

    Martinez-Vasquez, Jorge Boex, Jameson

  • Document Date


  • Document Type


  • Report Number


  • Volume No


  • Total Volume(s)


  • Country

    Russian Federation,

  • Region

    Europe and Central Asia,

  • Disclosure Date


  • Doc Name

    Russia's transition to a new federalism

  • Keywords

    federal government;transition from command to market economy;per capita expenditure on education;information and communication technology;per capita revenue;United Nations Environment Programme;mechanism of equalization transfer;agency for international development;intergovernmental fiscal relation;draft tax code;soft budget constraint;gross domestic product;division of power;vertical fiscal imbalance;Fiscal Federalism;Rule of Law;value added tax;macroeconomic stabilization policy;allocation of resource;local government reform;federal fiscal system;state of emergency;Social Safety Nets;countries in transition;knowledge and learning;horizontal fiscal imbalance;dynamics of decentralization;world wide web;intergovernmental fiscal arrangement;source of financing;natural resource endowment;local tax rate;national tax base;privatization of state;Oil and Gas;Oil & Gas;fiscal decentralization reform;objectives of decentralization;educational classroom use;natural resource tax;ownership of enterprise;Governance and Decentralization;role of politics;social welfare policy;public sector expenditure;enterprise profit tax;individual income tax;manual for regulators;federal budget relief;social service standard;source of revenue;balance of power;degree of autonomy;expenditure responsibility;asymmetric federalism;intergovernmental relation;Transition economies;transition economy;centrifugal force;revenue assignment;transfer system;federal authority;bilateral agreement;bilateral treaty;fiscal disparity;federal law;transition period;own-source revenue;intergovernmental finance;revenue autonomy;Macroeconomic Stability;tax collection;fiscal incentive;world trade;intergovernmental transfer;democratic institution;decentralization process;shared tax;intergovernmental system;tax share;local budget;financial crisis;subnational budget;subnational deficit;federal legislation;learning resource;fundamental problem;parliamentary election;international study;political process;fiscal relationship;Public Services;Independent States;fiscal discipline;Public Utilities;public finance;tax revenue;economic instability;fiscal sovereignty;ethnic population;macroeconomic problem;political autonomy;budgetary autonomy;stabilization purpose;analytical tool;regional equity;balanced growth;resource endowments;expenditure budget;monetary discipline;central body;decentralization objective;special treatment;minimum share;bilateral negotiation;political reality;bilateral arrangement;unfunded mandate;privatized utility;funding source;coordinated action;investment analysis;local revenue;reform effort;government budget;budget execution;subnational tax;economic distortion;fiscal capacities;political negotiation;transparent mechanism;similar way;mutual settlement;important change;reform policy;decentralization policy;local transportation;Capital Investments;government expenditure;federal program;local taxes;legislative branch;political interest;budgetary process;reform process;excise tax;fiscal autonomy;fiscal issue;significant factor;subnational authority;government share;sectoral regulation;government efficiency;regional migration;bargaining power;private activity;national interest;political instability;equalization mechanism;physical education;political conflict;subnational region;independent budget;legal framework;agricultural enterprise;economic model;government control;financial control;resource distribution;subnational fiscal;Stabilization policies;budgetary resource;descriptive statistic;demographic variables;Tax Administration;subject matter;birth defect;health emergency;poverty alleviation;political dynamic;public health;political independence;empirical work;fiscal implication;political pressure;fundamental changes;formal system;national politics;Informal Economy;autonomous region;Subnational Finance;antipoverty policy;price rise;private enterprise;world level;political tension;nation building;good governance;federal resource;regional capital;intergovernmental reform



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Martinez-Vasquez, Jorge Boex, Jameson

Russia's transition to a new federalism (English). WBI learning resource series*World Bank Institute (WBI) Washington, D.C. : World Bank Group.