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The article discusses some of the institutional constraints characteristic of urban municipalities of the Republic of Bashkortostan. The main formal and informal institutions for nominating candidates for the post of heads of municipalities are considered. It has been established that when appointing to a post, informal standards for the selection of candidates are of great importance. The institutional and cultural environment from which the selection of staff for the post of heads of municipalities takes place is limited by the following general provisions: non-core education, gender inequality and the practice of appointment. The emergence of an institutional trap in the field of finance is justified, debt on overdue loans is growing, and consumer loans keep stability. All this is associated with a decrease in real cash incomes of the population. There is a decrease in the average per capita cash income of the population, which is associated with a decrease in real and disposable cash incomes of the population; all this leads to a high debt load on the population. It has been revealed that aging industrial enterprises and a resource-dependent economy in the republic, including the development of Shahan for the production of soda ash, shows a strong dependence on old institutions in the Russian economy and is defined as the “gauge effect”. Institutional constraints lie in the problem of the resource dependence of the old type of production. The greatest resonance in the public opinion of the republic is caused by the development of the Shihan by the Bashkir soda company. Production does not bear significant transaction costs for technical and technological modernization of production.

Some institutional restrictions on the development of urban municipalities in the Republic of Bashkortostan