Policy Choices and Regional Equality among the Soviet Republics

Abstract

While socioeconomic equality and maximum economic growth have been the proclaimed aims of Soviet leaders, the simultaneous implementation of these goals is difficult. Analysis of budgets reveals that expenditures in economic categories vary significantly across Soviet republics, and decline little over time. The republics are substantially more equal in socio-cultural expenditures, and are becoming even more so with time. The level of urbanization accounts for a large share of the variance in the social budget but not the economic one. Policy decisions concerning the latter are likely subject to a process involving a variety of political, military and socioeconomic considerations that transcend both the equality and efficiency criteria. In contrast, the increasing parity among Soviet republics in the socio-cultural budget is closely related to the increasing urbanization of the republics at the lower end of the development scale. It appears that increasing regional equality in the Soviet Union may be achieved primarily through improvements in social opportunities, and not by means of direct redistribution of economic resources.