| Abstract: | Foreign investment in Russia has consistently lagged behind East European countries throughout the last decade. Although formidable obstacles to attracting foreign investment remain throughout the country, some of Russia's 89 provinces have been more successful than others in creating attractive investment environments. One reason for this varied success may be related to the degree of economic and political elite consensus that exists in some regions. This, in turn, may help in the formulation of incentives to attract foreign investors. However, the political consensus that helps to establish a stable policy environment for foreign investment may well imperil pluralistic political development in the long run. Thus, we must be wary of conflating foreign investor interest with liberal politics and democratic development in Russia's regions. |
