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he conflicts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these devastating wars, both within Chechnya and beyond. Violence can be found in every region of the North Caucasus and the entire region is marked by the historical legacy of forced migrations.

178 Eurasian Geography and Economics, 2007, 48, No. 2, pp. 178–201. Copyright © 2007 by Bellwether Publishing, Ltd. All rights reserved. The Wars in Chechnya and Their Effects on Neighboring Regions Olga I. Vendina, Vitaliy S. Belozerov, and Andrew Gustafson1 Abstract: A team of Russia- and U.S.-based geographers presents and discusses the eco- nomic and demographic consequences of the conflicts in Chechnya on that republic, on the neighboring ethnic republics of the North Caucasus, as well as on the adjoining region of Stavropol’ with a majority of Russian inhabitants. Formal economic indicators, which gener- ally exhibit negative trends since 1991, are contrasted with the large, diverse shadow econ- omy that tends to absorb federal development funding diverted from the formal sector to the benefit of local elites. The authors explore the extent to which economic activity once based in Chechnya is dispersed to contiguous regions, discuss changes in the ethnic composition of the republics (“de-Russification”), and consider whether Chechnya and the adjoining repub- lics will ever regain the close economic, political, and social ties with Russia that prevailed during the Soviet period. Journal of Economic Literature, Classification Numbers: I31, O15, O18, R12. 3 figures, 1 table, 73 references. Key words: North Caucasus, Chechnya, Russia, terrorism, Kabardino-Balkaria, jihadists, Dagestan, Ingushetia, shariat, corruption, Stavropol’ Kray, clans, shadow economy, Russo-Chechen wars, money laundering. he conflicts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these deva

flicts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these devastating wars, both within Chechnya and beyond. Violence can be found in every region of the North Caucasus and the entire region is marked by the historical legacy of forced migrations. Chechnya occupies a unique and somewhat paradoxical position in a distinctly unstable region. Most of the Republic’s conventional ties with the outside world have been severed. Until recently, the region has been a “no-go” zone for the world’s press. Human rights groups and humanitarian organizations have long been forced out of the region. Economic and trans- portation networks once focused on the republic have been relocated over the past decade and a half to avoid crossing Chechen territory. Yet, while persistent brutal violence has con- 1Respectively, Senior Researcher, Institute of Geography, Russian Academy of Sciences, Staromonetnyy pereulok 29, 119017 Moscow, Russia (dnkoiv@comtv.ru); Vice-Rector and Professor of Geography, Stavropol’ State University, Ulitsa Pushkina 1, 355009 Stavropol’, Russia (vbelozerov@hotmail.com); and Graduate Assistant, Department of Geography, University of Colorado, Campus Box 260, Boulder, CO 80309 (gustafaf@colorado.edu). Detailed comments on the paper were received from John O’Loughlin, Vladimir Kolossov, and Gearóid Ó Tuathail. The survey data reported in the paper were collected with the support of the National Science Foundation (grant 0433927) and the fieldwork in the North Caucasus was supported by the Committee for Exploration and Research of the National Geographic Society (John O’Loughlin, PI on both grants).

he conflicts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these devastating wars, both within Chechnya and beyond. Violence can be found in every region of the

178 Eurasian Geography and Economics, 2007, 48, No. 2, pp. 178–201. Copyright © 2007 by Bellwether Publishing, Ltd. All rights reserved. The Wars in Chechnya and Their Effects on Neighboring Regions Olga I. Vendina, Vitaliy S. Belozerov, and Andrew Gustafson1 Abstract: A team of Russia- and U.S.-based geographers presents and discusses the eco- nomic and demographic consequences of the conflicts in Chechnya on that republic, on the neighboring ethnic republics of the North Caucasus, as well as on the adjoining region of Stavropol’ with a majority of Russian inhabitants. Formal economic indicators, which gener- ally exhibit negative trends since 1991, are contrasted with the large, diverse shadow econ- omy that tends to absorb federal development funding diverted from the formal sector to the benefit of local elites. The authors explore the extent to which economic activity once based in Chechnya is dispersed to contiguous regions, discuss changes in the ethnic composition of the republics (“de-Russification”), and consider whether Chechnya and the adjoining repub- lics will ever regain the close economic, political, and social ties with Russia that prevailed during the Soviet period. Journal of Economic Literature, Classification Numbers: I31, O15, O18, R12. 3 figures, 1 table, 73 references. Key words: North Caucasus, Chechnya, Russia, terrorism, Kabardino-Balkaria, jihadists, Dagestan, Ingushetia, shariat, corruption, Stavropol’ Kray, clans, shadow economy, Russo-Chechen wars, money laundering. he conflicts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these devastating wars, both within Chechnya and beyond. Violence can be found in every region of the North Caucasus and the entire region is marked by the historical legacy of forced migrations. Chechnya occupies a unique and somewhat paradoxical position in a distinctly unstable region. Most of the Republic’s conventional ties with the outside world have been severed. Until recently, the region has been a “no-go” zone for the world’s press. Human rights groups and humanitarian organizations have long been forced out of the region. Economic and trans- portation networks once focused on the republic have been relocated over the past decade and a half to avoid crossing Chechen territory. Yet, while persistent brutal violence has con- 1Respectively, Senior Researcher, Institute of Geography, Russian Academy of Sciences, Staromonetnyy pereulok 29, 119017 Moscow, Russia (dnkoiv@comtv.ru); Vice-Rector and Professor of Geography, Stavropol’ State University, Ulitsa Pushkina 1, 355009 Stavropol’, Russia (vbelozerov@hotmail.com); and Graduate Assistant, Department of Geography, University of Colorado, Campus Box 260, Boulder, CO 80309 (gustafaf@colorado.edu). Detailed comments on the paper were received from John O’Loughlin, Vladimir Kolossov, and Gearóid Ó Tuathail. The survey data reported in the paper were collected with the support of the National Science Foundation (grant 0433927) and the fieldwork in the North Caucasus was supported by the Committee for Exploration and Research of the National Geographic Society (John O’Loughlin, PI on both grants).

he conflicts that have plagued Chechnya since the dissolution of the Soviet Union have

178 Eurasian Geography and Economics, 2007, 48, No. 2, pp. 178–201. Copyright © 2007 by Bellwether Publishing, Ltd. All rights reserved. The Wars in Chechnya and Their Effects on Neighboring Regions Olga I. Vendina, Vitaliy S. Belozerov, and Andrew Gustafson1 Abstract: A team of Russia- and U.S.-based geographers presents and discusses the eco- nomic and demographic consequences of the conflicts in Chechnya on that republic, on the neighboring ethnic republics of the North Caucasus, as well as on the adjoining region of Stavropol’ with a majority of Russian inhabitants. Formal economic indicators, which gener- ally exhibit negative trends since 1991, are contrasted with the large, diverse shadow econ- omy that tends to absorb federal development funding diverted from the formal sector to the benefit of local elites. The authors explore the extent to which economic activity once based in Chechnya is dispersed to contiguous regions, discuss changes in the ethnic composition of the republics (“de-Russification”), and consider whether Chechnya and the adjoining repub- lics will ever regain the close economic, political, and social ties with Russia that prevailed during the Soviet period. Journal of Economic Literature, Classification Numbers: I31, O15, O18, R12. 3 figures, 1 table, 73 references. Key words: North Caucasus, Chechnya, Russia, terrorism, Kabardino-Balkaria, jihadists, Dagestan, Ingushetia, shariat, corruption, Stavropol’ Kray, clans, shadow economy, Russo-Chechen wars, money laundering. he conflicts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these devastating wars, both within Chechnya and beyond. Violence can be found in every region of the

for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensio

he conflicts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these devastating wars, both within Chechnya and beyond. Violence can be found in every region of the

cts that have plagued Chechnya since the dissolution of the Soviet Union have been responsible for a very high cost in human lives, with as many as 75,000 civilians and 14,000 military killed, according to estimates by the Memorial human rights organiza- tion (Abdullayev, 2005). Most attention has been focused on the military campaigns and the impacts of rampant violence, but very little attention has been paid to the non-military dimensions of these devastating wars, both within Chechnya and beyond. Violence can be found in every region of the North Caucasus and the entire region is marked by the historical legacy of forced migrations. Chechnya occupies a unique and somewhat paradoxical position in a distinctly unstable region. Most of the Republic’s conventional ties with the outside world have been severed. Until recently, the region has been a “no-go” zone for the world’s press. Human rights groups and humanitarian organizations have long been forced out of the region. Economic and trans- portation networks once focused on the republic have been relocated over the past decade and a half to avoid crossing Chechen territory. Yet, while persistent brutal violence has con- 1Respectively, Senior Researcher, Institute of Geography, Russian Academy of Sciences, Staromonetnyy pereulok 29, 119017 Moscow, Russia (dnkoiv@comtv.ru); Vice-Rector and Professor of Geography, Stavropol’ State University, Ulitsa Pushkina 1, 355009 Stavropol’, Russia (vbelozerov@hotmail.com); and Graduate Assistant, Department of Geography, University of Colorado, Campus Box 260, Boulder, CO 80309 (gustafaf@colorado.edu). Detailed comments on the paper were received from John O’Loughlin, Vladimir Kolossov, and Gearóid Ó Tuathail. The survey data reported in the paper were collected with the support of the National Science Foundation (grant 0433927) and the fieldwork in the North Caucasus was supported by the Committee for Exploration and Research of the National Geographic Society (John O’Loughlin, PI on both grants).

the agreement with the paramilitaries.

which is to allow the legalization of billions of paramilitary narco-dollars. The paramilitaries finance not only their operations, but also their lifestyles with the country's largest drug-trafficking operations.

Since negotiations between Uribe and the paramilitaries began, billions of dollars and euros in drug profits have entered Colombia.

Today, however, they openly finance entire electoral campaigns. The government's own statistics acknowledge that in 2005, $3 billion flowed through Colombia, with no record of how the money entered the country. No one planted money seeds and grew the $3 billion; this is just a portion of the billions of dollars and euros that the paramilitaries have laundered.