Russia and the Challenge of Fiscal Federalism Book

Russia ' s moment of truth is fast approaching. It is in the midst of an economic and political transition never before attempted anywhere. Russia is trying not only to restructure its entire economic system but, at the same time, to protect the well-being of all citizens, stabilize prices and its external balance, and provide public services. It is also trying to establish a system of governance acceptable to far-flung regions whose cultural identity, natural resource endowments, and degree of economic development differ widely. At the heart of all these challanges is an important issue: intergovernmental finance; more specifically, the division of expenditure responsibilities and the allocation of revenues to different levels of government. In a nutshell, it is about how Russia ' s national revenue pie should be divided between the federal government and its oblasts (Russia ' s basic unit of subnational government), and below them, the cities and rayons (Russia ' s third tier of government), and which of these levels of government should be responsible for which type of spending. In sum, this book discusses: the Russian dilemma; intergovernmental fiscal relations and finances; expenditure and expenditure assignment; revenue and revenue assignment (intergovermental fiscal relations in the Russian Federation); the sharing of taxes on natural resources and the future of the Russian Federation; regional demands and fiscal federalism; and, the making or breaking of Russia.