The Russian Far-East in its time of transition. In connection with the political and socio-economic changes occurring in Russia, space must be found for an account of the specific nature of developments taking place, in the national as well as the international context, in a region such as the Russian Far-East. The choice of modes of privatization has a very special importance for this region, which has been largely dependant on massive subsidies from the State. The growth of the budget deficit in 1991-92, and the worsening of conditions for the financing of public enterprises, will hasten the process of restructuring and destatization. In the face of these difficulties of funding, and the sparseness of private saving, an appeal to foreign enterprise and capital will be required. The creation of free zones is intended precisely to attract such capital and to encourage an economic upswing in the Russian Far-East. The region may have certain trump cards, but the task still proves difficult, taking account of geo-political and economic conditions, and the legacy of the past.