Economic and Social Policy Trade-Offs in the Russian Regions: Evidence from Four Case Studies

Abstract

Through case studies of four Russian regions, we examine the trade-offs between social and economic policy at the regional level. All four regions studied seek to stimulate entrepreneurship while preserving or expanding social welfare coverage. Regions differ in development strategies, some placing greater emphasis on indigenous business development and others seeking to attract outside investment. Variation in levels of democracy are unrelated to policy choices. All four regional governments consult actively with local business associations while organised labour is weak. The absence of effective institutions to enforce commitments undermines regional capacity to make social policy an instrument for long-term development.