Russian Regions in Expanding Europe: The Pskov Connection

BARGAINING OVER POLITICAL AND ECONOMIC POWER between the federal government in Moscow and the 89 subjects of the Russian Federation is now widely considered as critical to the success of Russia's democratic and free market reforms, if not to Russia's enduring viability as a state.1 The key challenge to Moscow, and to Russia as a whole, is how to harmonise different levels of political control so that economic growth could be accelerated and social tensions eased in the regions. This challenge is aggravated by the absence of reliable institutions (understood as enforceable rules of the game) regulating centre-periphery relations and the ideological and organisational disarray at the centre itself. In the regions along Russia's post-Soviet borders in particular, this problem is further complicated by a tension between geopolitical insecurity and powerful incentives for trade and economic development coming from outside Russia's borders. Relations between Moscow and the outlying regions thus become a truly 'intermestic' issue, affecting both Russia's internal post-Soviet institution building and the mode of Russia's integration into the global economy. The politics that shape relations between the Russian regions and Moscow are therefore part and parcel of Russia's evolving relations with the outside world, and the policies of regional elites are part and parcel of an increasingly complex fabric of Russia's foreign relations.