State Capitalism in Eurasia
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1 State Capitalism in Eurasia
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3 State Capitalism in Eurasia Martin C Spechler Indiana University, USA Joachim Ahrens PFH Private University of Applied Sciences, Göttingen, Germany Herman W Hoen University of Groningen, The Netherlands World Scientific NEW JERSEY LONDON SINGAPORE BEIJING SHANGHAI HONG KONG TAIPEI CHENNAI TOKYO
4 Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore USA office: 27 Warren Street, Suite , Hackensack, NJ UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE Library of Congress Cataloging-in-Publication Data Names: Spechler, Martin C., author. Ahrens, Joachim, 1963 author. Hoen, Herman Willem, 1960 author. Title: State capitalism in Eurasia / Martin C. Spechler (Indiana University, USA), Joachim Ahrens (PFH Private University of Applied Sciences, Göttingen, Germany), Herman W. Hoen (University of Groningen, The Netherlands). Description: New Jersey : World Scientific, [2017] Includes bibliographical references. Identifiers: LCCN ISBN (hc : alk. paper) Subjects: LCSH: Capitalism--Asia, Central. Asia, Central--Economic policy. Asia, Central--Economic conditions. Classification: LCC HC420.3.S DDC dc23 LC record available at British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Copyright 2017 by World Scientific Publishing Co. Pte. Ltd. All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the publisher. For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher. Desk Editors: Chandrima Maitra/Lixi Dong Typeset by Stallion Press enquiries@stallionpress.com Printed in Singapore
5 9x6 b2794 State Capitalism in Eurasia About the Authors Martin C. Spechler is Professor of Economics, Indiana University. He has worked in Central Asia as a consultant for the World Bank, Global Development Network, USAID, the Asian Develop ment Bank, and the Soros Foundation. He published numerous books and articles on Eurasia, including The Political Economy of Reform in Central Asia, Uzbekistan under Authoritarianism (Routledge). Joachim Ahrens is Professor of International Economics at PFH Goettingen. His research focuses on the political economy of policy and institutional reform from a governance per spective in Central and East Asia and Eastern Europe. He published numerous books and articles including Governance and Economic Development and Governance in the 21st Century (both with Edward Elgar) as well as Institutional Reform in Central Asia (Routledge). v b2794_fm.indd 5 5/29/2017 4:58:55 PM
6 vi About the Authors Herman W. Hoen holds the Chair of Inter na tional Political Economy at the University of Groningen, the Netherlands. He also worked as a Research Fellow at Corvinus University of Budapest and the European University of Viadrina (Frankfurt/Oder) and was Visiting Professor at the Georg August University, Göttingen, Bilkent University, Ankara, and Johns Hopkins University, Bologna. Together with Joachim Ahrens, he edited Institutional Reform in Central Asia (Routledge).
7 Acknowledgments This book presents three types of state-capitalism now established in the former Soviet Union states of Eurasia crony, dual-sector, and predatory state-capitalism. It analyzes the political economies of Russia, Kyrgyzstan, Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan and examines the sources of resources for these authoritarian regimes, their decision-making, economic performance and the disposition of government funds. The comparative evaluation of their merit performance is based on internationally published statistics and on extensive interviewing in the native languages in five of the six countries. The authors would like to thank all interview partners who supported this project. Without their insights, assessments, and critical analysis this book would not have been written. Special acknowledgments are due to Bakhtijar Igamberdiev, Farrukh Irnazarov, Zafar Salmanov, Ingmar Schustereder, Manuel Stark, and Roman Vakulchuk who conducted, transcribed, and translated most interviews on which this book has been based. Finally, the authors are grateful that considerable parts of their research greatly benefitted from funding by the German Federal Ministry of Education and Research (BMBF) and financial support of the Volkswagen Foundation. vii
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9 Contents About the Authors Acknowledgments Chapter 1 Defining State-Capitalism 1 Chapter 2 Russia: Crony Capitalism, Putin-Style 13 Chapter 3 Kyrgyzstan: Sad Poster-Child of Neo-liberalism 31 Chapter 4 Kazakhstan: A Dual Economy with Developmental Characteristics 53 Chapter 5 Uzbekistan: Economic Life Under Control and Beyond Control 73 Chapter 6 Tajikistan and Turkmenistan: Predatory State-Capitalism 97 Chapter 7 Conclusion 117 v vii References 123 Index 137 ix
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