In ERG modeling, we averaged Regional effects with uniform homophily term. That is, any in-regional tie was attributed to Regional effect. While we ignore, by this, features of particular regions (as for example, ethnic composition), we, however, preserve nested scheme. For example, if two NGOs from, say, Astana, establish a tie, it will be attributed to both Capital and Regional effects, but if one of those NGOs will be from Almaty, the tie would be credited to Capital effect only. One possible justification for this is to consider regions as mere markers of physical proximity, as from such point regions seems to be most indistinguishable.