The Geographical Impact of the Russian Privatization Program

Abstract

This paper examines privatization of state assets, a key element in the process of Russia's economic transformation. In particular, it assesses the spatial impacts of providing each Russian citizen with a voucher that can be used to purchase shares in enterprises undergoing privatization. A focus is on documenting a geographic shift in benefits from voucher-based privatization, initially accruing disproportionally to residents of the Urals and West and East Siberia, and later passing on to urbanized western Russia, where greater levels of investment may be expected in new financial centers such as Moscow, St. Petersburg, and, to a lesser extent, Yekaterinburg. 3 maps, 1 table, 19 references.