Specialisation and Diversification of Enterprising during Transition - a Comparative Study of Development in Estonian and Russian countryside

Abstract

This study analyses rural areas in Russia and in Estonia from the viewpoint of continuities and economic strategies of rural enterprises. The subject in the analysis is mainly different types of enterprises, their strategies, developmental potentials and dependence on the environment where they act. Diversification and specialisation are opposite strategies, both of which can be found from post-soviet area: former one especially in Russia and latter one in Estonia. Detailed analyses on the local level aim at highlighting reasons and mechanisms producing such opposite strategies from seemingly similar historical background. Our approach is rooted in the theory of embeddedness of economic activity into its social and administrative environment. Therefore, one focus is also in the analysis of the relations between enterprises and local administration including the interests and the possibilities of local governments to promote local development with more or less strategic operations. An important focus is in the analysis of communities and their changing role in the process of transition, during which the soviet type of collective farms have lost their dominating role in the local life, both in its productive and reproductive spheres. The study is conducted in four post-soviet peripheral localities in Russia and in Estonia. In Russia the localities are in Karelia and in Nizhny-Novgorod- region and in Estonia in Pölva county and in Järva county. Among rural enterprises the focus is on non-agricultural business activities. Triangulation method will be applied with priority in comparative data collected with semi-structured interviews of local experts and actors in business, administration and development efforts. The project implements also limited surveys and uses other forms of official, statistical and research data.

Timetable: 1.1.2004 - 31.12.2006

Director of research: Leo Granberg, leo.granberg(at)helsinki.fi

Researchers:  Jouko Nikula, Inna Kopoteva (Helsinki); Evgeniya Balabanova (Nizhny-Novgorod); Kristel Maidre (Tallinn)