Negotiating state and society: the normative informal economies of Central Asia and the Caucasus

ABSTRACT

This special issue introduces new research on informal markets and trade in Central Asia and the Caucasus. The research presented here was conducted in Armenia, Georgia, Kazakhstan and Kyrgyzstan, as well as Beijing, Guangzhou, Yiwu and the Xinjiang Uyghur Autonomous Region in China. The following eight articles illustrate how informal markets and trade in Central Asia and the Caucasus provided spaces for people across the region to negotiate state and society in the last three decades; the articles also suggest that informality should be seen as constitutive of a normative order for polities in Central Asia and the Caucasus. Informal markets and trade in Central Asia rest on three factors: the inability of the state to measure commercial transactions; markets and trade becoming places from which citizens built personalized networks that required individualized networking and oral agreements based on social relations, particularly trust; and markets being embedded within states in which clientelism frequently thrives.     

Organised Informality and Suitcase Trading in the Pearl River Delta Region

ABSTRACT

Suitcase trade is a common activity along state borders in Asia. Existing scholarship has often viewed such suitcase trade as locally embedded activities characterised by informality. This article contends that this perception underestimates the diversity and complexity of suitcase trade. This is illustrated with a case study of the Pearl River Delta region of southern China, where thousands of suitcase traders carry goods across the borders between mainland China and its two Special Administrative Regions of Hong Kong and Macao. Several patterns of operation run in parallel, ranging from petty traders working alone to highly-organised group operators. While each individual transaction is small scale and based on informal networks, the entire chain of operations is run by syndicates that are highly organised, commercial, with well-defined divisions of labour, and on a large scale. We describe such a combination of organisational competence and informal networks as “organised informality.” The concept allows us to expand the analytical horizon to cover those cross-border exchanges that incorporate modern commercial practices in otherwise non-formal settings. It also bridges the oft-criticised dichotomies of formal-informal and licit-illicit.     

MAPS OF TIME,CLOCKS OF SPACE

When Asia was conceptualized as Europe's “other,” it was also cast as a temporally delimited concept: once capitalist modernity—assumed to operate evenly across the globe by conservatives, liberals, and the left—spread to eastern Eurasia, the differences between two unequal halves of the continent were expected to evaporate. The persistence of differences long after “Asia” was incorporated into the capitalist world-economy has led to a cartographic definition of the continent. Such definitions do not allow for historical processes that reshape relations between peoples, forging new links and severing old ones. This article traces the changing imaginaries of Asia historically. Since there are no indigenous conceptions of the continent, the author argues that the changing imaginaries of Asia are linked to wider geopolitical processes. When eastern Eurasia was subordinated to the drives of the capitalist world-economy, existing linkages were severed and territories were linked to, or through, colonial metropoles. After a brief period of autarkic development after decolonization, states along the Pacific coasts were increasingly integrated through production and procurement networks leading to a new imaginary of Asia. Since the end of the cold war and the emergence of independent states with large hydrocarbon resources in Central Asia, countries that were once excluded from cold war imaginaries of Asia—as well as India—are being integrated through newer imaginaries that reflect the greater prominence of China and India today as well as the rise of Islamic militancy and new ethnic conflicts.     

APEC,globalization, and 9/11

The Asia Pacific Economic Cooperation Forum (APEC) has, in the main, been based on attempts to advance neoliberal ideas about economic governance, although this has stimulated a great deal of controversy and resistance. Having failed—despite much effort—to entrench neoliberalism within APEC the United States and other “Western” members of APEC are now “securitizing” economic policy in an effort to reconfigure the Asia Pacific along lines favored by major capitalist players in the region. Critics argue that this securitization of economics is simply a tactical effort to bring in through the back door policies that APEC members have resisted in the past. Faced with the prospect of not getting its own way through straight trade negotiations within APEC, Washington appears to be promoting measures — “urgently needed in the name of security”—that might never have been accepted otherwise. At the same time, a twin strategy of pursuing bilateral trade negotiations with key APEC states is threatening the multilateral nature of the body, further emasculating APEC's position as a serious trade body.     

China's Maritime Security and the “Malacca Dilemma”

Abstract

As maritime trading becomes an increasingly important element of the modern Chinese economy, concerns in Beijing are being raised about the safety of vital sea lanes. Central to this thinking has been Hu Jintao's explanation of the “Malacca Dilemma” in late 2003, which describes the problem of sea routes crucial to China's trade, especially the Malacca Straits, being subject to interdiction from another state. At the same time, the international war on terror has also raised the specter of economic terrorism aimed at disrupting commerce via the Straits. Due to the complex nature of these potential threats, there is the temptation for China to address the “Dilemma” unilaterally as the country modernizes its naval forces. However, it remains in Beijing's interests to work both with littoral states and other great powers in ensuring greater security in the Malacca region.     

The Atlantic Alliance in a Global System

The war in Iraq led to a confrontation between emerging American and European models for global governance. In imagining the future, each has tended to project its own positive experience in the Cold War years. Europeans imagine a multilateral concert, with confederal institutions encouraging mutual appeasement. Americans imagine a benevolent unipolar hegemony. Experience in the 1990s reinforced America's unipolar perspectives. Trends in the new century make Europe's model seem better adapted to an increasingly plural world system. The conclusion speculates on the European model's relevance to Asia. Much will depend on whether China and Japan can replicate the Franco-German reconciliation. China may have more success “containing” the US within a larger Eurasian or even UN context, including, in some fashion, Europe and the US. Conceivably the Western powers may more easily balance their own relations in a Eurasian rather than transatlantic geopolitical framework.     

日本“国家正常化”与美国的东亚地缘战略

战后,由于美军单独占领日本,美国占领当局直接主导了日本的非法西斯化改革,日本的对外政策也被纳入美国的东亚地缘战略框架内。正因如此,战后日本的"国家正常化"进程与美国的亚洲地缘战略密切联系在一起。冷战时期,日本充当美国在亚洲的"冷战"哨兵,日本在"旧金山体制"下获得"独立"和国际空间。冷战结束后,美国推行全球霸权战略,日本乘机加强与美国的军事同盟关系,扩展自主权。尤其进入21世纪,日本通过参与美国的"反恐"战争,实现了海外派兵。近年来美国实施战略东移和"亚太再平衡",日本借机加快修宪活动和军事"解禁",加速日本"国家正常化"的步伐。     

Trading in Dordoi and Lilo bazaars: frontiers of formality,entrepreneurship and globalization

ABSTRACT

Cross-border trade is central to the socio-economic structure of the former Soviet republics and their integration in the world economy. In the Caucasus and Central Asia, bazaars have functioned as nodes that enable multi-directional, cross-border trade. While there have been studies on the bazaar trade in the Soviet successor states, few have used quantitative methods. Drawing from 600 structured interviews with traders in Dordoi (Bishkek) and Lilo (Tbilisi), the data from Dordoi highlight the relationship between informality and entrepreneurship, unlike Lilo, where there are clearer markers of formality, but where bazaar trade also seems to be less profitable. The data from the 600 interviews illustrate that Dordoi functions as a globalized trading hub, its transnational linkages forged by the bazaar traders and the buyers themselves. By contrast, trade in Lilo is more localized. Hence, ‘globalization from below’ presents itself differently across the post-Soviet space.     

Ambiguities of xenophobia in a border town: inner city informal traders and Ekasi shopkeepers in the city of East London,South Africa

ABSTRACT

This paper explores the livelihoods, experiences and identities of immigrant informal traders and shopkeepers in the Buffalo City Metropolitan area, which encompasses the centres of East London, Mdantsane and King Williams Town. We primarily use a socio-spatial perspective to analyse informal activity, and offer a particular perspective on how informality has encouraged a type of ‘informal citizenry’ among traders. We argue that informal trading has a very particular history in the region, and that East London’s notoriety as a ‘border city’ and a regional frontier has created a fractured space, which is best expressed through the experiences of migrants and entrepreneurs. We point out that informality is a driver of economic empowerment and equality among traders, but also of xenophobia and difference.     

The PRC,Taiwan, and the overseas Chinese

The rapid growth of China’s economy and its opening to the outside world have attracted a large volume of trade and investment from Hong Kong and Taiwan, creating an economic grouping with a total foreign trade in 1992 almost equal to that of Japan. The economic linkage of this “Greater China” with Southeast Asia’s overseas Chinese communities is steadily growing and will continue to do so for the rest of the decade, barring a sharp drop in the PRC’s growth rate, which seems unlikely.     

Why and how the APEC process is working

Although there has been no grand design, the process of Asia-Pacific Economic Cooperation (APEC) has made steady progress, much more than the ministers present at its creation in 1989 could possibly have envisaged. It has made progress by proceeding pragmatically. the impetus came from the economies of the Western Pacific that are dependent on trade, and on the maintenance of an open trading system, and accordingly got fed up to the gills with being discriminated against in the markets of the major trading powers. APEC might thus be seen as an exercise in “collective action” to influence more powerful countries and strengthen the multilateral trading system.     

Process of accession to the world trade organization

In a struggle that began in the early 1980s, many countries worked in the Uruguay Round negotiations of 1986–94 to strengthen the multilateral trading system, as well as advance the liberalization of international trade in goods, services and ideas. Governments are in the process of implementing the resulting agreements that now comprise the World Trade Organization. They are interested in extending the WTO system to “outside” economies, but not in exposing it to fresh disputes and divisions, which is why negotiations on the accession of new members are detailed, rigorous and time consuming. This is critical in accommodating the “economies in transition.”     

Yale

Abstract

During the summer, Yale CCAS will sponsor a series of 5 public lectures on Asian studies as well as a number of informal open seminars on the nature of Asian studies in the U.S., American foreign policy in Asia, comparative study of China and Vietnam, and other topics to be decided by planners and participants. All suggestions are welcomed. Plans are being made to show several films, including “Remember Vietnam” and “In the Year of the Pig.”     

Northeast Asian Economic Integration: A Region in Flux

Over the last decade, essentially since the Asian crisis of 1997–98, the economic integration of Northeast Asia has been marked by three overarching trends. Economic relations have become: 1) more institutionalized; 2) more “Asian;” and 3) more China-centric. These macro-trends are demonstrated and analyzed in the paper. But by way of anticipation, numerous counter-cutting facts need also to be kept in mind. In essence, recent trends, notable as they are, have by no means reversed three counter-realities: 1) economic ties are still largely driven, less by governments and formal arrangements, than by corporations in search of profits and production efficiencies; 2) despite growing economic interdependence across Northeast Asia and between that sub-region and Southeast Asia, Japan, China and South Korea remain heavily linked to global, and particularly US, markets; and 3) though China is an ever important hub in Northeast Asian trade and investment, Japan remains by far the most powerful economic player in the region.     

Rural informalities and forest squatters in the reserved forests of Assam,India

It has now been well established that forests in South Asia are postcolonial political zones. In Assam, in northeast India this was accomplished through the colonial project of converting jungles into Reserved Forests. Using the politics of dokhol (“to grab or occupy by force”) as an entry point, this article examines the comparative epistemologies of squatting and informality in urban and rural contexts. My intent is to unpack the everyday practice, maintenance, and sustenance of dokhol within the reserved forests of Bodo Territorial Autonomous District. This entails an extension of existing scholarship on formal-informal dichotomies in relation to rural squatters, in particular those on forestland. I do so by combining an ethnographic study of dokhol by rural squatters with three influential strands of critical scholarship on urban squatting, namely Partha Chatterjee’s “political society,” Asaf Bayat’s “quiet encroachment,” and Ananya Roy’s take on planning and deregulation. This article advances the case of rural informalities and opens a dialogue between the two forms of informalities – rural and urban, especially in the context of South Asia.     

Trade ‘outside the law’: Uzbek and Afghan transnational merchants between Yiwu and South-Central Asia

ABSTRACT

This article analyses the trajectories of two transnational networks present in the Chinese city of Yiwu: Afghan merchants who trade goods in and out Afghanistan, Tajikistan and Pakistan; and Uzbek traders (citizens of either Tajikistan or Uzbekistan) who commercialize their merchandise in and out Tajikistan, Uzbekistan and Russia. Our aim is to capture an ethnographically grounded understanding of informal markets and economies by analysing the notion of trade ‘outside the law’, including the contested yet widely used category of the ‘smuggler’. By paying attention to the fluidity of trading practices ‘outside the law’, we also address the uses and limitations of metaphors widely used in scholarly analysis of informal markets: notably those of ‘lower’ and ‘higher’ forms of globalization, and the transposition of formal-legal and informal-illegal exchanges onto the notions of economic ‘centres’ and ‘peripheries’.     

Dynamics of Trade in Value-Added in “Factory Asia”

ABSTRACT

Trade patterns in East Asia are termed the “Factory Asia” model, whereby Asia functions as a “global factory” that imports intermediate goods from its regional networks and then assembles and exports them as finished goods to higher-income developed countries. In 2001, China’s accession into the World Trade Organisation consolidated this pattern by becoming the core economy in this model. However, is this pattern still valid after more than a decade of rapid development in East Asian countries? The main objective of this article is to examine the evolution of this pattern of trade in East Asian countries. Although the key findings of this study show that the Factory Asia model continues, it is changing as different East Asian countries capture more value in global value chains. The gaps in the rate of upgrading are identified and mainly attributed to differences in government policies and competition. However, the dependence on foreign inputs still remains an important part of high-technology production in East Asian countries. Hence, the idea that East Asia is evolving from a “factory” into a “Research & Development hub” remains far-fetched.     

The State,Identity, and the National Question in China and Japan,by Germaine A. Hoston

Abstract

This very dense book represents a significant effort to come to terms with the “national question” in radical discourse—the meaning of the nation in relation to, or in opposition to, the state—through the prism of the adoption of Marxist ideas in China and Japan in the late nineteenth and twentieth centuries. This is a critical problem inasmuch as issues of state-building in China and of state hegemony in Japan have dominated the recent histories of those two countries.