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Pskov Region of the Russian Federation As Foreign Policy Actor

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Pskov Region of the Russian Federation As Foreign Policy Actor Pskov Region of the Russian Federation as Foreign Policy Actor by Eero MIKENBERG A dissertation submitted for the degree of PhD Faculty of Social Science, Department of Central and East European Studies University of Glasgow May 2006 ABSTRACT Subnational foreign activities are a new and relatively unexplored aspect of the international system. The absence of clear and universal rules creates an ambiguous political playground that can be misused by both states and their subnational governmental units for reaching their foreign policy and foreign trade goals. Worldwide, different patterns for subnational foreign activities in federal states have emerged. For example, in the United States, member states of the federation are fighting over foreign investments mainly. In Germany, on the other hand, members of the federation have delegated their rights in terms of foreign activities to the federal government. In general, federations with long democratic traditions have managed to introduce the formulas for containing subnational foreign activities. In Russia, in contrast, the breakdown of the Soviet Union confronted both the federal centre and members of federation with a fundamentally new situation. In Soviet times, the territorial units of the Russian Socialist Federative Soviet Republic (RSFSR), were of administrative nature only, i.e. they lacked the political dimension. 2 Some of the Russian regions were using their newly-gained freedom for the purpose of challenging the federal centre. Pskov region of Russia has been one of the most active subnational actors. 3 Contents ABSTRACT .............................................................................................. 2 Contents..................................................................................................... 4 List of Tables............................................................................................. 6 List of Pictures........................................................................................... 7 List of Abbreviations ................................................................................. 9 Note on Transliteration ............................................................................ 10 Acknowledgements.................................................................................. 11 Preface..................................................................................................... 13 Chapter 1 Regions as Foreign Policy Actors............................................. 33 1.1. Terms and Definitions....................................................................... 38 1.2. Subnational Actors in the International System ................................. 44 1.3. Reasons for Subnational Foreign Activities ....................................... 46 1.4. Conceptual Framework: Types of Subnational Foreign Activities...... 53 1.5. Instruments ....................................................................................... 64 1.6. Consequences of Subnational Foreign Activities ............................... 70 1.7. Outlook............................................................................................. 73 1.8. Examples .......................................................................................... 76 1.8.1. US States........................................................................................ 77 1.8.2. Quebec........................................................................................... 80 1.8.3. Germany ........................................................................................ 83 1.8.4. Belgium ......................................................................................... 90 1.8.5. The European Union ...................................................................... 95 Conclusion............................................................................................... 98 Chapter 2 Russian Regions as Foreign Policy Actors..............................100 2.1. Agents in Russian Foreign-policy Making: Subnational Dimension..103 2.2. Legal Framework for Subnational Foreign Activities........................108 2.3. Russian Regions in the International System ....................................113 Conclusion..............................................................................................121 Chapter 3 Pskov Oblast’ of the Russian Federation ...............................124 3.1. History ................................................................................................127 3.1.1. Ancient Times...............................................................................128 3.1.2. The Feudal Republic of Pskov.......................................................130 3.1.3. Pskov as Part of the Centralist Russian State .................................133 3.1.4. 20th Century...................................................................................136 4 3.2. Population ..........................................................................................141 3.3. Economic Geography.........................................................................143 3.3.1. Energy and Natural Resources.......................................................144 3.3.2. Industry.........................................................................................147 3.3.3. Ownership of Enterprises ..............................................................151 3.3.4. Tourism.........................................................................................152 3.3.5. International Trade/ Transit ...........................................................154 3.3.6. Foreign Investment........................................................................156 3.3.7. Communications ...........................................................................157 3.3.8. Economic Performance .................................................................158 3.4. Regional Regime.................................................................................166 Chapter 4 Subnational Foreign Activities of Pskov – Regional and Local Units ..........................................................................................................176 4.1. Subnational Foreign Activities: Different Levels of Government......180 4.2. Regional Unit...................................................................................185 4.2.1. Directions......................................................................................187 4.2.2. Partners.........................................................................................188 4.2.3. Chronology ...................................................................................190 4.3. Local Municipal Units......................................................................191 4.3.1. Directions......................................................................................192 4.3.2. Partners.........................................................................................193 4.3.3. Chronology ...................................................................................198 4.4. Local Rural Units.............................................................................199 Chapter 5 Case Studies.............................................................................202 5.1. Case Study No 1 Euroregion vs. Council for Cooperation of Border Regions...................................................................................................203 5.2. Case Study No 2 “Raketa”-ferry – Will it Travel Again? ..................218 Chapter 6 Making Sense of Subnational Foreign Activities: the Case of Pskov .........................................................................................................239 6.1. Analysis of Regional Foreign Activities ...........................................242 6.2. Analysis of Local Municipal Foreign Activities................................254 6.3. Analysis of Local Rural Foreign Activities.......................................259 Summary: a Pskov-made Foreign Policy? ...............................................264 Pskov, Regions and Foreign Policy in Retrospect....................................270 Bibliography...........................................................................................288 5 List of Tables Table No 1 Comparison of Pskov and its neighbouring regions (1998) Table No 2 The Dynamics of Pskov industrial production, 1985-2000 Table No 3 Foreign trade of Pskov oblast’ (in million US dollars) Table No 4 Electricity consumption in Pskov region (million kWh) Table No 5 Budget of Pskov oblast’ 1990-1998 (million roubles) Table No 6 Population living below the minimal subsistence level Table No 7 The official minimal subsistence level in Pskov and neighbouring regions in 1998 (in thousand roubles) 6 List of Pictures Picture No 1. Pskov Oblast’. Source: the official website of the Pskov Oblast’ administration at www.pskov.ru, English transcription by author. Picture No 2 The Kremlin of Pskov, the centre of the feudalist republic. The public meetings took place in the courtyard of the Pskov Kremlin, which was protected by high walls and two rivers. Picture No 3 Lenin still stands proudly in front of the regional administration. Picture No 4 The main building of the Pskov regional administration. The administration of Pskov region is located on the Street Nekrassova, Pskov. In the same building, in the right wing reside several federal institutions,
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