The Transformation of ‘Power-Ownership’ Relations in Russia: Would Regions Pave the Path Towards Modernization?

Abstract

Nataliya Pliskevich — Senior Researcher, Institute of Economics, RAS; Deputy Сhief Editor of ‘Social Sciences and Modernity’ (academic journal). Address: 26 Maronovskii Lane, Moscow, 119049, Russian Federation. E-mail: ons@naukaran.ru

This article continues the discussion raised in the previous issue (Mir Rossii No.1 2015). In particular, it dwells on the following question: Is it possible to promote a transition from ‘limited access orders’ to ‘open access orders’ and ‘mature states’ within a separate region, given the current institutional and political context in Russia as a whole?
The author further develops her conception of the pyramidal ‘power-ownership’ system in Russia by introducing an additional dimension (parallel to three levels: federal, regional and municipal), i.e. three ‘verticals’ that penetrate each of the system’s levels. The first ‘vertical’ is administrative power that is synonymic with government and legislative structures (both of which represent a single unit in Russia, in spite of the formal division). The second ‘vertical’ encompasses the economic dimension: i.e. the centralized state control over major corporations, both state-owned and private. The third ‘vertical’ is represented by security structures (including the military), which is completely independent from public control at each of the system’s levels. Each of these verticals is relatively autonomous, although they may intersect at the top level, and this paradoxical situation leads to extremely low manageability of the system as a whole.
The author argues that this situation gives good opportunities to regional elites, who can safely experiment with institutional change, albeit within the limits imposed by the ‘power-ownership’ system. If such a change were attempted by several regions, this could push the whole system towards modernization. An important incentive for such change is currently provided by the lack of financial resources in Russia’s regions and
deteriorating living standards.