Nationalism in multiethnic areas in the Russian Federation has provided a substantial challenge for democratization. There is a direct relationship between democratization and ethnic peace (Smitter 72). In a democratically weak society, ethnicity assumes a stronger role, and when democracy and ethnicity are balanced, political stability is possible. As a result of a lack of democratic institutions and channels for dialogue, Russia's inhabitants are now increasingly identifying themselves as members of ethnic groups .
rather than as citizens of the Russia. (Drobizheva).
An important development in center-periphery relations is the growing importance of "economic nationalism," an effort to create an economic basis for political independence. Economic nationalism is a protective defense against the Russian federal government's economic dominance. Alternatively, it is also a sign that the republics wish to retain relations with Moscow since politics remains primarily in the hands of the center (Drobizheva).
For example, Tatarstan and Sakha-Yakutia both have a wealth of natural resources, giving them a potential advantage in economic development and a desire to establish control over these resources. Tatarstan, for example, strives to sell its oil at world market prices in foreign markets to generate income, and in 1993-94, the local governments in Tatarstan and Yakutia sought economic decentralization in Russia by refusing to pay federal taxes. Consequently, an agreement reached between the federal government and the republics gave the latter what they wanted: increased economic autonomy .
(Drobizheva).
Of paramount importance is the economic and political realities facing both Moscow and the various republics. Secession provides the republics with a myriad of additional stumbling blocks towards establishment of stable democracy. These include questions of international recognition, Russian implemented economic pressures, and devastating civil war (Lapidus 108).