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date: 07 October 2022

The Shifting Commercial Economy of Post-Soviet Central Asialocked

The Shifting Commercial Economy of Post-Soviet Central Asialocked

  • Regine SpectorRegine SpectorUniversity of Massachusetts Amherst, Department of Political Science
  •  and Aisalkyn BotoevaAisalkyn BotoevaSearch for Common Ground, Washington D.C.

Summary

Since 1991, commerce and trade in Central Asia have changed significantly. Prior to 1991, Soviet Central Asia had been incorporated into centralized production, distribution, and retail networks, and regional borders were formally closed to many outside products and exchanges. Upon independence in 1991, these integrated production, distribution, and supply chains collapsed, and the new Central Asian countries—to varying degrees—liberalized their economies and opened their borders to flows of goods and people. Domestic manufacturing and production slowed dramatically. Citizens of these countries initially turned to barter and trade of basic consumer goods as a survival strategy to feed themselves and their families in the midst of evaporating wages and disappearing jobs. While traders forged regional and global trading networks connecting local villages and cities in Central Asia with manufacturing and re-export hubs in China, India, United Arab Emirates, and Turkey, among other places, over time, the new post-Soviet elite gained ownership and control over lucrative bazaar land, cargo companies, airline agencies, and other logistics nodes.

Soviet-era roads and railways initially dominated trade networks; later, airline routes and new land-based infrastructure built through intergovernment agreements and international development projects afforded new commercial possibilities. China became one of the central nodes in trade networks for consumer goods and has invested significantly into building regional infrastructure, while Russia has remained an important supplier of hydrocarbon and other commodities. Amid these changes, self-understandings of trade have shifted; for example, as Soviet-era stigmas against trade have receded, religious-based and other moralities condoning trade have ascended. While commercial activity was a significant survival strategy and served as a launch pad for other businesses in the region, trade and commerce patterns have been subject to financial crises, political upheavals, and border closures in the 1990s and 2000s, and in 2020, to a global pandemic, illuminating the precarity of reliance on trade and commerce in contexts that do not otherwise have robust state-based social support mechanisms.

Subjects

  • Capitalism
  • Central Asia
  • Comparative
  • World/Global/Transnational

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