The WBI Learning Resources discuss issues in economic development policy and lessons from experience in a way that can be understood by non-specialists. This is the first in a series that will look at governance and decentralization and looks at the implications of federalism on the growth of Russia's economy. In particular it looks at the impact of fiscal decentralization, as the way inter-governmental finances are resolved influences the transition and macroeconomic stability. It sets out the political history leading up to the Putin-led government, and it links Russia's choices with the broader issues facing any country undergoing inter-governmental reform.