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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).