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This dissertation explains the extent and durability of the institutions of territorial autonomy in multinational states. Its main argument is that the viability of territorial autonomy hinges on the relative economic importance of the minority-inhabited region for the central government. If the fiscal resources of the minority-inhabited region are critical for the funding of the central government's policy objectives, autonomy is likely to be limited and short lived. If those resources are not as crucial for the governability of the entire state, autonomy is likely to be more extensive and durable. The importance of the minority-inhabited region depends on two sets of factors. The first is the relative level of economic development of majority and minority-inhabited areas. The second is the strategy of governance adopted by the central state elites. Strategies of governance determine the extent of the fiscal burden that the central government …