This study represents the most comprehensive review of fiscal federalism in the Russian Federation, presenting a strong case for greater decentralization. Given its vast size, immense diversity - including economic, geographic, cultural, ethnic, and historical differences across regions - Russia is a prime candidate for decentralization. By succinctly surveying the literature on fiscal decentralization and clearly spelling out the main concepts, the volume sets the stage for the subsequent description of the fiscal system in Russia and its evolution through a succession of reforms guided by a desire on the part of Russian policymakers to craft a workable system of fiscal federalism. The authors not only describe the state of fiscal federalism in Russia at its key turning points, but they also provide insightful critical assessments of the reforms introduced at each stage. The book is rich with examples, which makes it an easy and exciting reading. The book's analysis of the history gives perspective to the authors' assessment of the current state of Russia's federalism. The authors make a strong case for greater decentralization in Russia based not only on the traditional economic benefits of fiscal federalism but also on the political benefits from local government competition. The richness of detail and the careful tracing of the reforms over the past nearly two decades also mean that this study will be an invaluable guide to both current observers with academic and policy interest in the recent fiscal federalism reforms as well as Russia's fiscal evolution since the early 1990s and its current fiscal challenges.
This study represents the most comprehensive review of fiscal federalism in the Russian Federation, presenting a strong case for greater decentralization. Given its vast size, immense diversity – including economic, geographic, cultural, ethnic, and historical differences across regions – Russia is a prime candidate for decentralization. The authors spend considerable effort analyzing the current operation of fiscal management. Indeed, a major contribution is to assess the degree of tax autonomy of subnational governments.
They also treat the central topics of fiscal federalism: horizontal fiscal equalization; assignment of expenditure responsibilities and autonomy; assignment of tax authority and autonomy; standards and norms designed by the center to control local governments.
They also make a strong case for greater decentralization in Russia based not only on the traditional economic benefits of fiscal federalism but also on the political benefits from local government competition.
—Professor Barry Weingast
Ward C. Krebs Family Professor of Political Economy and Senior Fellow at Hoover Institute,
Stanford University
Galina Kurlyandskaya
Dr. Galina Kurlyandskaya is one of the most distinguished Russian experts in the field of public finance and intergovernmental relations. She is the Director General of the Center for Fiscal Policy (CFP), a world-known Russian think tank, whose mission is to establish an equitable and efficient system of government finance and intergovernmental relations in transitional economies. She is providing research-based policy advice and technical assistance to central, regional, and local governments in the area of fiscal policy, public finance management, and intergovernmental relations both in Russia and in other developing countries. Dr. Galina Kurlyandskaya received her PhD in Economics from the Institute for World Economy and International Relations, Russian Academy of Sciences. Elena Andreeva has worked on fiscal decentralization reforms in Russia under many technical assistance projects of the World Bank, U.S. Agency for International Development, U.K. Department for International Development, UNDP and other international donors since mid-1990s. As Research Director of the Center for Fiscal Policy, Moscow, she has worked on many CFP projects aimed at promoting public sector reforms at the federal and subnational levels in Russia and other transitional countries, including the reform of local governance, fiscal equalization reform, and reforms of child welfare. She was one of the authors of the Russian Intergovernmental Reform strategy. She holds a graduate degree from the Economic Department of Moscow State University.
Migara O. De Silva
Dr. Migara De Silva joined the Bank in 1995 and is currently working as a Senior Economist at the World Bank Institute (WBI). He has designed and managed a number of capacity-building programs in Eastern Europe and Central Asia, East Asia and the Pacific, South Asia, and Latin America regions. He has also managed a multiyear capacity-building program on intergovernmental fiscal relations in Russia, which included all seven administrative regions (okrugs) of the Russian Federation from St. Petersburg to Vladivostok. He was the WBI task manager of the joint program with United Nations Development Programme (UNDP) (Bratislava) and the Local Government Initiative of the Open Society Institute in Budapest on Fiscal Decentralization Initiative for Central Asia and the Caucuses. Prior to joining WBI, he worked in the Bank’s Development Economics and Evaluation departments and was involved in a wide range of initiatives related to public sector reform. Dr. De Silva has published papers on the impact of resource booms on growth, institutions and economic growth, public sector reforms, and fiscal decentralization in Russia. He co-authored an earlier study with Dr. Galina Kurlandskaya, Evolving Fiscal Federalism: Russian Practice and International Experience (Ves Mir Publication, Moscow, 2006), which is widely used by policy makers and researchers in Russia and Central Asia. He holds graduate degrees from the former Soviet Union and United States.
Natalia Golovanova
Natalia Golovanova is a lead consultant with the Center for Fiscal Policy (Russia). As a public finance expert, she advises federal, regional, and local governments. She took part in a number of analytical and consulting projects financed by international organizations, including creation of the WBI training program on intergovernmental fiscal relations for regional and local government officials in Russia. She was a member of the analytical team that supported the reform of reassignment of powers across governmental levels in the Russian Federation. She also disseminates the ideas of fiscal federalism through a series of lectures at State University–Higher School of Economics (Moscow), from which she has graduated.
Elena Andreeva
Elena Andreeva has worked on fiscal decentralization reforms in Russia under many technical assistance projects of the World Bank, U.S. Agency for International Development, U.K. Department for International Development, UNDP and other international donors since mid-1990s. As Research Director of the Center for Fiscal Policy, Moscow, she has worked on many of CFP projects aimed at promoting public sector reforms at the federal and subnational levels in Russia and other transitional countries, including the reforms of local governance, fiscal equalization reform, and reform of child welfare. She was one of the authors of the Russian Intergovernmental strategy. She holds a graduate degree from the Economic Department of Moscow State University.