The Relations between the Center and the Regions

Abstract

Regional economies are growing more stagnant. Although in 2012 the Russian economy recovered after the 2009 crisis slump, not all of the regions have returned to pre-crisis industrial production and investment levels. Industrial production stopped growing in 2013 and actually declined in 30 per cent of the regions. Investment declined 0.2 per cent, with half of the Russian regions experiencing negative growth, including most of the developed regions (the Far East suffered the sharpest 27 per cent decline). The repercussions of the 2014 political events are bound to exacerbahe investment decline in the regions. Stagnation is likely to transform into a slow economic crisis.