The First Decade of Economic Transition in Central Asia: An Introduction to the Symposium

Abstract

In the vast existing literature on economics of transition, only relatively fewpapers concentrate on economic developments in Central Asia (see eg Kaser,1997a,b; Pomfret, 1995, 2002; Kalyuzhnova, 1998, 2000, 2002). This isprobably because of the geographical remoteness of the region from Europe, alack of easily available statistical data from the national statistical offices andthe perception that the Central Asian transition is one of the most turbulent,with authoritarian methods of management and a mentality among thepeople that is vastly different from the European. Nevertheless, importanteconomic issues have already been raised by Central Asia’s economicdevelopment, and the attention of international economic organisations hasclearly ‘shifted’ towards Central Asian region (see EBRD, 2003).In light of the current demand for research evaluating of the impact ofeconomic changes in Central Asia over the last decade, the presentsymposium is very timely and valuable.‘The Central Asian economies couldnot follow the rapid approach due to inherited ‘regional specifics’: a completeabsence of previous experience with market institutions, coordination andpractice, attitudes of the population as well as the challenge of building newnational economies and adapting their economic systems, which were noteconomic systems themselves, to the new requirements of the transitionperiod.’ (Kalyuzhnova, 2000, 166).The first paper in the symposium is a paper by Pomfret that looks at thecombination of the national accounts estimates and household survey results.The author attempts to assess the biases in GDP measures as indicators ofeconomic well-being and ranks the five Central Asian countries’ performancein the following order: ‘better’ – Kazakhstan, the Kyrgyz Republic and