The view that Russia has just two ‘regions’ today: Moscow and ‘the rest’ Essay Example

levels of governance and interest groups, occupy economic niches and engage in political struggles.

When studying geographical differentiation, it can be advantageous to start with a broad scale and address general issues. Although not entirely accurate, having a structural framework is necessary for initiating our regional analysis.

We will use the widely known categorization of regions into winners and losers, as identified by Bradshaw (1996). He categorizes regions in Russia into five major types: 1. Agricultural regions, which suffer from poor infrastructure and conservative policy outlooks (such as South European Russia and Southern Siberia).

The highly integrated Gateway and hub regions in Russia, strategically positioned and with international links, primarily focus on services or high tech. These regions, including Moscow, St.Petersburg, Yekaterinburg in Central European Russia, Urals, and West Siberia also have large towns. It's important to note that regional centers are gaining significance alongside Moscow. Resource regions consist of oil and gas producing areas (and some metals) that are generally thriving, while coal mining regions are declining. The old industrial regions in the Central industrial areas, Volga, and South Siberia are struggling to restructure. However, high tech regions have emerged in some old industrial areas around large towns like Moscow, St. Petersburg, Saratov and Samara in Central European Russia. To gain a comprehensive understanding of Russian regions across the country we must now conduct a general survey to observe this situation.

The official Economic Regions of Russia (as defined by Shaw, 1999) serve as a means to examine the country on a larger scale. Moscow and the Central Economic Region have a significant impact, with over 20% of Russia's population residing there and contributing to more

than 17% of industrial production in 1995. Despite covering only 3% of the nation's land area, this region holds great importance due to its historical role as the foremost region during the Soviet era, politically and economically. However, the decline of the traditional industrial sector and Military Industrial Complex has caused a downturn. Efforts towards restructuring and promoting growth in services, construction, and small to medium-sized enterprises have led to some areas within the region experiencing recovery. Moscow particularly stands out with some of the highest wage levels in the country. Furthermore, it has become a central hub for multinational corporations and attracts the largest portion of foreign direct investment.

Both St.Petersburg and the North West were once major centers of heavy and light industries during the Soviet era, but these industries have since declined. Despite this, St.Petersburg's historical role as a gateway to Europe and its increased significance following the loss of Baltic ports have made it an attractive alternative to Moscow for businesses, particularly those in the service sector. Nevertheless, Moscow remains the preferred choice for many businesses due to its advantages in terms of agglomeration, network access, and infrastructure.

Development in St.Petersburg is primarily concentrated within the city itself. In contrast, the Northern economic region primarily served as a source of raw materials and was a center for various defense projects during the Soviet Union. However, the loss of government subsidies and policies aimed at reducing the population have made economic activities in this region increasingly unfeasible, largely due to the now-considerable cost of transportation.

However, some oil rich parts of the region may in the future be able to increase their wealth by exporting

this resource, aided by the availability of ice-free ports. The Wolga-Vyatka Region, located to the North East and East of the Central Region, acts as a transitional zone between boreal forests in the North and steppe in the South. This is reflected in its economy and culture. The region includes the third largest city, Nizhnij Novgorod, and was primarily known for resource processing and military industries. Although impacted by the transition, the region's dynamic leadership and strategic location may prove advantageous in the future.

The Volga region benefits from its strategic location, large population of Russians, and natural resources such as agriculture and oil/gas. While traditional heavy industries have declined after being relocated during World War II, automobile plants and the aerospace industry are attracting foreign direct investment. The Central Chernozem region has always been recognized as Russia's breadbasket due to its high-quality agricultural land.

Russia faces challenges due to its peripheral location, inadequate infrastructure, and illegal immigration. However, it has attracted Western investment because of its modern iron ore mining and processing plants, chemical industry, and engineering sector. The North Caucasus demonstrates how geography can impact fortunes as the underdeveloped eastern parts suffer from ethnic conflicts while the politically stable western part performs better economically. This area has also received investment in agricultural processing and serves as a gateway to the Black Sea.

The Ural Mountains were once an industrial powerhouse but now face depletion of natural resources. However, their strategic location and high urbanization level in Yekaterinburg have allowed certain industries to find new markets and remain economically viable.

West Siberia is often perceived as overpopulated due to distortions caused by the Soviet economy despite being sparsely

populated by European standards. In East Siberia, heavy industry, mining, and oil/gas extraction are primarily found in medium-sized towns. Collective farms were established in an attempt to integrate this region economically even though it went against economic logic. However, most areas have been negatively impacted by the decline resulting from loss of subsidies except for a small number of wealthy regions focusing on oil and gas production.It is important to mention that East Siberia, covering a large part of Russia's territory, has a low population density with only 6% of the country's inhabitants living there. The majority of people are concentrated around the Trans Siberian Railway and a few agricultural centers situated in the southern area of the region.

The Northern part of the region currently possesses abundant but inaccessible natural resources due to distance and climate. However, scarcity may motivate future exploration of these resources. Moreover, the Asian market previously enjoyed advantages in competitive metal mining and processing, especially aluminium smelting, thanks to affordable hydroelectricity. In conclusion, the Far East exhibits similarities with East Siberia.

The Pacific coast has some resource- and primitive industry-based activities that could be potential investment opportunities. However, the high risk and long timeframes for returns are making this area less appealing. This summary of regional profiles indicates that there is no clear geographic or functional factor that determines which areas are successful during this transition. Hanson and Bradshaw (2000) demonstrate that having abundant resources does not necessarily equate to wealth (e.g. Primorski kray is not performing well despite its resources).

The development of regions in Russia depends on factors such as geographic position, infrastructural integration, and local political leadership and bargaining power.

For example, Tatarstan has shown strong development due to its political leadership and bargaining power. There is no single formula for success, as different regions have found success through resource extraction or developing service sectors. Furthermore, regions within Russia exhibit high differentiation, resulting in a pattern of wealthy areas interspersed with less developed ones. Although Moscow stands out as a leader in terms of contribution to Russian GDP, FDI, big business, and banking HQs, a closer examination reveals a more complex situation.

According to studies (Westerlund et al, 2000), Moscow's per capita income is lower compared to Khanty-Mansi and Yamal-Nenets, which are oil regions. The cost of living is highest in remote areas of the North and Far East. However, due to high land prices and the increasing allure of St. Petersburg, many service sector companies choose to establish themselves there instead.

Instead of solely focusing on Moscow as a distinct contrast from other regions, Dienes (2002) characterizes Russia as an economic, social, and geographic archipelago. This archipelago consists of a network that is nationally and internationally integrated but limited to a few urban areas with more than 250,000 inhabitants, as well as resource extraction centers separated by vast geographical distances. These integrated spaces encompass approximately 50% of the country's population while the other half remains isolated.

As a result, two "frontiers" have emerged: the traditional hinterland and the inner hinterland. Dienes identifies these geographic locations by considering various indicators such as gas consumption, access to education, real income, and middle-class growth.

They tend to have a small geographical reach and little evidence of trickle-down. Another noteworthy finding is that these wealthy areas are highly diverse internally. In major

cities, access to quality education, for instance, is becoming increasingly restricted based on social factors. Westlund et al (2000) also discovered that regions with higher average incomes, particularly in big cities, had the highest Gini indices. The long-term stability of a region's prosperity is greatly influenced by its strategy, economic profile, and level of integration in the Russian and global economy.

The connection between the international economy and the prosperity of big cities and resource-extracting regions is stronger than that of weaker demonetized areas. Furthermore, different regions with diverse economic profiles can be impacted in opposite ways by variations in overall economic conditions. This was particularly evident when comparing the stability of the Russian currency in the early and late 1990s. While a devalued rouble benefited industries involved in imports substitution and resource exports, it had devastating effects on areas that relied on invested financial capital, such as the Far North.
When considering Moscow and other regions, it is important to mention the political aspect of their relationship. Moscow serves as the center of government, determining how funds are allocated. However, certain influential regions like Tatarstan have managed to exert significant influence over Moscow.

According to O'Loughlin (2002), Moscow's traditional role as a regulator and an entry point to the global arena is undergoing changes. This transformation is driven by competition from other cities and a decrease in federal funding allotted to Moscow. Additionally, Moscow's privileged status is affected by its heavy reliance on its regions due to the Russian economy's significant dependence on natural resources. To sustain its privileged position, Moscow must concentrate on expanding its own sources of economic growth, such as...

Services, science, or high-tech industries,

in addition to being an entry point and mediator, are also prevalent in Moscow. Despite some differences, Moscow shares many similarities with other large Russian cities. The prosperous areas within these cities are interconnected but do not necessarily rely on the same driver of growth. Russian regions vary greatly among themselves and within themselves, yet certain aspects such as prosperity or social exclusion are similar. Therefore, the generalization of "Moscow versus the rest" in terms of regional development is flawed. The search for a suitable simplification of the Russian regional development pattern is ongoing.