The politics of federal transfers in Putin’s Russia: regional competition, lobbying, and federal priorities

Abstract

Most studies of intergovernmental financial flows in the Russian Federation focus on the federal center’s decision-making in determining the direction of these flows. Anecdotal evidence, however, suggests that regional governments employ a variety of tools and strategies to compete over federal transfers. This study uses data on federal transfers during 2002–2012 to examine the factors associated with the politically sensitive share of such transfers occurring in this period. The key findings highlight the importance of administrative capacity and the value of attracting attention from, as well as cultivating relations with, federal officials for shaping decision-making on the distribution of federal transfers. We discuss some specific strategies used by more successful regional governments in attracting additional federal funds.