Index based regional analysis: The case of the former Soviet Union and Russia

This paper presents a methodology for analysing inter-regional differences and identifying a suitable combination of policies for a set of regions. Th e methodology is based on the development of a composite index and is appli ed to compare (i) the members of the Former Soviet Union (FSU) and (ii) the regions of Russia. All variables considered and incorporated in the releva nt index are (1) scaled from 0-100, so that the index is independent of uni ts of measurement, and (2) weighted using survey results. According to the adapted regional development index Lithuania is on the top of the ranking f ollowed by Latvia, Estonia, Ukraine, Belarus, Georgia, Russia, Armenia, Mol dova, Azerbaijan, Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Taj ikistan. The FSU countries are positioned on a regional development index - per capita income mapping to investigate whether emphasis should be placed on regional, environmental or sustainable development policies. Finally, a n index that incorporates various socioeconomic components is computed for the regions of Russia which are subsequently classified based on the value of this index. This classification shows that the regions with the best ind ex values are in the Central-Southern part of the country (with the excepti on of Sackha Republic, which is in the West). The regions with the lower in dex values are in the Western part of the country and in parts of Central R ussia (Mariel republic, Moldovia Republic, Perm region).