Investor Presentaiton
36 Leonid B. Vardomskiy
As a result of the policies carried out in the interests of the regional periph-
ery, an unfavorable entrepreneurial climate has developed in the oblast. It slows
down the modernization of the Ryazan economy and leads to a drain of financial
resources from the oblast. Despite the industrial growth after 1996, the income of
the population and the budgetary income have not grown.
The lack of attractiveness for investors robs Ryazan of the opportunity to
fully realize the benefits of its closeness to Moscow and to attract investments to
the region that could be oriented toward the Moscow market. Today, the com-
petitiveness of Ryazan Oblast with its relatively low costs for investors is begin-
ning to grow (as can be seen in rising prices on real estate, leasing of land and
buildings, and a growing work force). Some oblasts adjacent to the Moscow
region, such as the Vladimir, Kaluga and Yaroslavl oblasts are presently enjoying
a growth of foreign investment.
The situation in Ryazan Oblast is quite typical for Russia. Involvement in the
processes of globalization has sharpened the contradictions between centers and
peripheries. This conflict is reflected with a particular clarity at the federal level.
Moscow, as the main regional actor of globalization, has made a sharp leap for-
ward and left the rest of the country far behind in terms of economic growth. The
imbalance of the relations between the center and the periphery, in the present
author's view, represents one of the main threats to Russia.
There is only one solution. Despite the growing dualism, it is necessary to
implement a more liberal policy while strengthening the financial control over the
big companies. This will eventually increase the financial opportunities to sup-
port the periphery. In the conditions created by globalization, without such sup-
port, the periphery will lag further and further behind Moscow and other
sub-centers.
This statement fully applies to the Ryazan Oblast. If the policy of protec-
tionism continues, the oblast will lag behind other neighboring regions and the
threats noted above will inevitably become real.
Previously published papers:
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Jeronim Perovic: Internationalization of Russian Regions and the Conse-
quences for Russian Foreign and Security Policy. April 2000.
Andrei S. Makarychev: Islands of Globalization: Regional Russia and the
Outside World. August 2000.
Alexander A. Sergounin: External Determinants of Russia's Regionaliza-
tion. February 2001.
Alla Chirikova, Natalia Lapina: Regional Elite: A Quiet Revolution on a
Russian Scale. March 2001.
Oleg B. Alexandrov: The Role of the Republic of Karelia in Russia's Foreign
and Security Policy. March 2001.
Andrei S. Makarychev: The Region and the World: The Case of Nizhnii
Novgorod. April 2001.
Oleg B. Alexandrov: The City of Moscow in Russia's Foreign and Security
Policy: Role, Aims and Motivations. April 2001.
Nr. 8
Sergei V. Golunov: Regions of the "Red Belt" in the Process of Internation-
alization: The Case of Volgograd Oblast. April 2001.
Nr. 9
Grigory L. Olekh: Novosibirsk Oblast: Problems of Globalization and
Regionalization. May 2001.
Nr. 10
Sergei V. Sarychev: Regionalization of Russian Foreign and Security Pol-
icy: The Case of Kursk Oblast. May 2001.
Nr. 11
Andreas Wenger: Engaging Russia and its Regions: Challenges and
Opportunities for the West. September 2001.
Nr. 12
Arbakhan K. Magomedov: Regional Ideologies in the Context of Interna-
tional Relations. September 2001.View entire presentation