Russian Economic Update

Considerable attention has been given to stimulating regional economic development in Russia. A number of my ED friends have been members of U.S. Government-sponsored consultative teams advising national, state and local Russian officials on the creation of an appropriate local economic development system in Russia. Most come home with the impression that some progress is being made, but the process will take years to really take hold and produce tangible results.

How is Russia doing in attracting foreign direct investment? The answer is not too well. According to a recent Center for Strategic and International Studies (CSIS) report, foreign direct investment (FDI) in Russia has remained low. The totals for 1997–2000 were $4.9 billion, $2.8 billion, $4.3 billion, and $4.4 billion respectively.

While the CSIS report offers a macro perspective of developments, it is nevertheless useful in sizing up whether the overall economic and political environments are improving enough to encourage greater regional economic development. Click here to read the full CSIS report.