Regional Conversion in the Russian Case

Abstract

Decentralization has put increasing power at the disposal of regions to support conversion processes in Russia since 1992. There is, however, no clear-cut relation between the defense dependency of regions and their conversion success. Other factors, such as exports of any kind, the composition of regional industrial demand for nondefense goods, and the availability of shock absorbers - such as small businesses, the informal economy, networks, and institutions - had stronger effects on conversion outcomes. Case studies of Nizniy Novgorod, St. Petersburg, and Novosibirsk reveal wide regional differences in both conversion policies and their outcomes.