The Allocation of Federal Funding to Measures Designed to Settle Conflicts in the North Caucasus: The Conditions for its Efficacy

Russian Economic Developments. Moscow, 2015, #1, pp. 46-47

2 Pages Posted: 23 Feb 2015

See all articles by Konstantin Kazenin

Konstantin Kazenin

Gaidar Institute for Economic Policy; Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) - Center for Regional Studies and Urban Studies

Date Written: February 5, 2015

Abstract

The necessity to optimize the federal budget expenditure targets for 2015, as declared by Russia’s authorities, has put to the fore, among other things, also the issue of government target programs for the development of Russian regions, including the regions of the North Caucasus, and the actual effectiveness of those programs. As far as the North Caucasus republics are concerned, the effectiveness and feasibility of federal budget allocations in the past was reviewed predominantly in the framework of investment projects, where the federal government granted its guarantees against loans or allocated funding to infrastructure development ventures. However, in addition to these spending items, the North Caucasus imposes a significant burden on the federal budget in terms of costs associated with the consequences of ethnic conflicts. In view of the current economic situation it appears especially important to optimize the plan of measures designed to deal with these consequences, to estimate their relative importance and order of priority, and to select only those that are truly needed, so as to eliminate any unnecessary expenditures. Besides, the government must ensure that the measures designed to resolve the current conflicts in the North Caucasus should not give boost to controversies in the conflict zones – in other words, have the effect of attempts to put out a fire with gasoline (as it has already happened many times in the North Caucasus).

Keywords: North Caucasus

JEL Classification: R11, R12, R13, R14

Suggested Citation

Kazenin, Konstantin, The Allocation of Federal Funding to Measures Designed to Settle Conflicts in the North Caucasus: The Conditions for its Efficacy (February 5, 2015). Russian Economic Developments. Moscow, 2015, #1, pp. 46-47, Available at SSRN: https://ssrn.com/abstract=2560863 or http://dx.doi.org/10.2139/ssrn.2560863

Konstantin Kazenin (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazen\tny per. 3-5
Moscow, 125993
Russia

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) - Center for Regional Studies and Urban Studies ( email )

Moscow
Russia

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