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.     

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.     

Translation,Modernity, and Women in China

The end of the cold war witnessed the emergence of a commercial web sprawling from the Xinjiang Uighur Autonomous Region in western China and extending into Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan), Pakistan, and Russia. Running parallel to the state-managed exchange in hydrocarbons, raw materials, technology, and infrastructure, this new Eurasian trade had an informal component as everyday consumer items manufactured in China were imported into neighboring countries, bypassing formal regulatory mechanisms. This inter-Asian trade began as shuttle trading by itinerant merchants for local markets; by the mid 1990s, shuttle trading was overshadowed by largescale export for national markets in neighboring countries without losing its informal character. This informality extending across national boundaries defined the post–cold war commerce in innermost Asia; at the same time, it also signaled a return to pre-cold war trading structures. Moving away from the “retreat of the state” thesis that found traction following the cold war, the author attributes informality in this inter-Asian trade to three factors: (1) a restructuring of state power where informal trade was a new comparative advantage sought in an evolving geopolitical climate; (2) the actors in this inter-Asian trade—party and regional officials in China, along with traders and intermediaries—who found and exercised agency through this exchange; and (3) a chain of inter-locking, commercial macro-regions, which are economically sustainable and which transcended international boundaries. Working in conjunction, these factors constitute a dynamic inter-Asian trade and challenge static state imaginaries of a “New Silk Road” or “Eurasian Continental Bridge.”     

The traders of Central Bazaar,Astana: motivation and networks

ABSTRACT

Trading in Astana’s Central Bazaar rests on mutually beneficial people-to-people contacts, or personal networks. Twenty-five years after the Soviet collapse, personal networks are pivotal in whether one succeeds in an informal market economy. I argue that networks cannot be disassociated from trader motivation, which serves as a measure of how these networks evolve over time. I describe how those traders who were driven primarily by lifting themselves out of economic precarity tended to build strong social networks; these strong social networks sometimes evolved into ‘unconditional’ social networks, by which I mean a trader supporting others even though doing so has no commercial benefit. At the other extreme were traders driven by ambition and goal attainment. I argue that such traders are less likely to establish and maintain social networks. Between these two extremes is a middle ground, where traders alternate between strong and weak social networks.     

Navigating Small-Scale Trade Across Thai-Lao Border Checkpoints: Legitimacy,Social Relations and Money

ABSTRACT

Marked in part by a narrow river, the border between the neighbouring provinces of Loei in Thailand and Sayaboury in the Lao PDR appears to be porous and unregulated. While a Friendship Bridge regulates large-scale international trade, an extensive amount of informal, small-scale trade continues to flow across smaller checkpoints and other parts of the river. Trade along these sites is not only highly organised, most of it also happens under the gaze of border officials. This article examines the material and power exchanges that occur at local checkpoints between the different actors involved in the facilitation and restriction of trade. Between Loei and Sayaboury, trade is regulated according to a spectrum of licitness that is constantly negotiated and renegotiated between traders and officials. Negotiations rely on the social relations between these actors and involve practices of gift-giving and bribery, which blur the boundaries between reciprocity and corruption. By focusing on the interactions between state and non-state actors, this article sheds light on the way the informal economy is configured by checkpoint politics.     

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.     

China–Africa Exports: Governance Through Mobility and Sojourning

ABSTRACT

A centre for Asian and intercontinental immigration and export-oriented production, Guangzhou city is at the forefront of China’s global interactions. Based on ethnographic fieldwork, this article examines informal governance mechanisms that co-ordinate the circulation of goods and capital between China and Africa. The question addressed is: What roles do mobility and sojourning play in governing trade relations? The analysis is informed by research from three fields: economics scholarship on the trade–migration nexus, ethnographic studies of informal trans-border trade, and historical accounts of long-distance trade in pre-colonial and colonial eras. These traditions point to different ways in which the mobility of people and goods are interlinked. In the case of China–Africa interactions, the flow of goods has increased in tandem with the number of visits by African itinerant traders. The empirical discussion demonstrates that the emergence of intercontinental movements of goods and people between China and Africa was predicated on the brokering role played by African sojourners in Guangzhou. Of particular importance was informal hospitality and logistics infrastructure set up by Africans in the late 1990s, which subsequently evolved and adapted. This infrastructure has facilitated the mobility of people and goods and increased the pace at which trading capital circulates.     

Cross-Border Trade and “the Market” between Xinjiang (China) and Pakistan

ABSTRACT

A significant part of China-Pakistan cross-border trade falls within the category of shadow economy. Most Pakistani traders in Xinjiang cannot afford to ship containers through the Khunjerab Pass and rather carry the goods purchased in China with them on the daily buses to Sost, Pakistan, thus avoiding customs duties. This form of border economy, though falling outside of the regulatory regime, is far from being informal. Rather, it is based on a network of contacts on both sides of the border and made possible by the particular institutional and infrastructural setting of the area. Based on long-term fieldwork in both Xinjiang and Pakistan, this article shows the complexity of these transactions, their transnational nature and the performativity that characterises them. It also highlights the role of online technologies and social networks in the cultivation of those relations, and the ability of traders to navigate often-changing norms and the flows that characterise the market. Eventually, the article suggests a new definition for “the market” as it emerges from the experience of traders in Xinjiang. For them the market is neither simply based on trust, social relations and the continuous flow of information; nor does it correspond to the global, culture-free market economy     

Doing business in Yabaolu Market,Beijing: (inter-)ethnic entrepreneurship,trust and friendship between Caucasian and Chinese traders

ABSTRACT

Based on ethnographic fieldwork in China and Georgia, this article traces the origins and describes current practices of post-Soviet tourist trading in Yabaolu Market in Beijing. While traders from across the Caucasus visit Yabaolu, my focus is on Georgian traders who today perceive themselves as biznesmeny. Focusing on a typical trade visit, the article explores the role of ethnic and kinship ties in the organization of this trade. It questions the notion of ethnic entrepreneurship and the idea that ethnic cooperation itself may serve a basis of trust and underpin traders’ activities. Instead, the article illustrates how enduring transnational linkages are built on other forms of reliability and reputation. These are framed in the lexicon of friendship, as well as kinship and pseudo-kinship vocabulary, and facilitate commercial transactions between traders of different ethnic, social and religious backgrounds in an environment where state regulation and legal law enforcement are almost absent.     

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’.     

The Political Economy of Border Checkpoints in Shadow Exchanges

ABSTRACT

This introductory article revisits cross-border shadow exchanges in a comparative perspective and reflects on their theoretical implications. It explores the diversities and complexities of shadow operations and critically examines the concept of informality that is commonly used to describe such non-state-sanctioned practices. It further underlines the key role played by checkpoint politics in border governance. Border checkpoints serve both as a state institution in regulating border crossings as well as a political site where material and power exchanges among state and non-state actors are negotiated. Such negotiation of selective passage through state-controlled gateways is often predicated upon the skilful manipulation of time and space by experienced traders and brokers.     

Business 2.0: Kyrgyz middlemen in Guangzhou

ABSTRACT

Among the many ‘businesspeople’ whom the promise of commercial success has drawn to southern China in recent years one can find a small number of Kyrgyz middlemen. Working mostly with Russian-speaking clients, their job is to organize buying trips, coordinate with local manufacturers, translate, and oversee cargo shipments. Based on ethnographic fieldwork since 2013, this article examines in detail the careers, work routines and business model adopted by Kyrgyz middlemen in Guangzhou. I argue that in contrast to the early bazaar or shuttle traders, who have been operating across Eurasia since the 1990s, these Kyrgyz middlemen constitute a next kind of economic actor within more diversified, service-oriented and formalized value chains across post-Socialist Eurasia (referred to here as Business 2.0). One of these middlemen’s most salient contributions is to translate between the informal and formal domains of national economies as well as within cross-border economic transactions.     

Between Border and Bazaar: Central Asia’s Informal Economy

ABSTRACT

The disintegration of the Soviet Union spurred a transnational trade in consumer goods. Bazaars, which proliferated across the former Soviet Union, including in Kazakhstan and Kyrgyzstan that is the focus of this article, became nodes in this informal trade. This article makes three arguments: (i) Soviet successor states capitalised on the new informal economy which provided employment to millions when economies were in decline. Conversely, ongoing developments, particularly in Kazakhstan, seek to modernise the bazaars that emerged after the Soviet Union. (ii) The movement of people and goods – between border and bazaar, and in case of re-exports, on to another border – are illustrative of a multi-dimensional informal economy evidenced in rent extraction, regulation of bazaars, and in trader networks. (iii) The bazaar-centred economy relies on checkpoint politics that establish border regimes, enabling mobility.     

Comparing Brokers in India: Informal Networks and Access to Public Services in Bihar and Gujarat

ABSTRACT

Faced with unresponsive and intimidating state institutions, citizens often need to rely on brokers to obtain state benefits. This article compares the ways in which brokers help people gain access to public services in two Indian states. Using ethnographic fieldwork in both states, we compare Bihar and Gujarat to argue that the evolution of the informal networks through which citizens gain access to public services constitutes an important dimension of democratisation processes. In both Gujarat and Bihar such brokerage networks have fragmented considerably over the last 40 years, while also becoming less marked by social hierarchies. This change has taken place despite a differing role and strength of political parties in the two states. The fragmentation and levelling of brokerage networks have enabled citizens to put more pressure on state institutions and power holders. This process of “informal democratisation” suggests that the comparative study of brokerage networks constitutes a promising and largely unexplored avenue to interpret the challenges facing governance and local democracy in India.     

The manufacturing of Islamic lifestyles in Tajikistan through the prism of Dushanbe's bazaars

ABSTRACT

This article traces the multiple ways of ‘manufacturing’ Islamic lifestyles in the urban environment of Tajikistan's capital city, Dushanbe. The city's bazaars serve as a lens through which to observe the conjunction of its booming trade business with Dubai alongside its growing Islamic commodity culture and a religious reformism that is inspired by the materiality and non-materiality of a progressive and hybrid Dubai Islam. Bringing together long-distance trade, urban consumption practices and new forms of public piety in the mobile livelihood of three bazaar traders and sellers, the article provides insights into how the commodification of Islam informs notions of urbanity and modernity in Tajikistan. These notions correspond to the launching of urban renewal and the meta-narrative of Dushanbe's future as a modern city on the rise. Furthermore, the article illustrates the ways in which Dushanbe's Muslims turn bazaars into an urban laboratory for religious agency and cultural identities.     

ZANU PF politics under Zimbabwe's ‘Power-Sharing’ Government

Using informal network analysis to understand ZANU PF politics, the key significance of the Inclusive Government (IG) is twofold. First, competition between ZANU PF and the ‘opposition’ parties in the IG helps informal networks to cohere sufficiently to run a parallel government that effectively sabotages the IG. Second, the parallel government itself operates to a significant degree through informal networks, further entrenching this form of politics. Informal networks that rely on violence and patronage – or consent and coercion – capture the dynamic shaping contemporary politics in Zimbabwe.     

The role of the ortoq in the Mongol Empire in forming business partnerships

ABSTRACT

This study investigates the emergence and development of business partnerships established by the Mongols and their merchant partners, ortoqs, in the Middle Ages. Ortoqs are known to have conducted trade and money-lending with the capital invested by their partners. This study shows that the contractual arrangements of Mongol–ortoq partnerships closely resembled medieval partnership contracts, such as mudharaba, inan, societas and commenda. Sophisticated concepts of liability in relation to investments and loans were developed in Mongol–ortoq partnerships, promoting trade and investment to facilitate the commercial integration of the Mongol Empire.     

Legitimite et droit de resistance au xxe siecle: La conscience religieuse et la guerre civile espagnole

SUMMARY

In the early nineteenth century, English common law did not recognize absolute slavery within Britain's borders. Nevertheless, slavery did exist in a number of British colonies. In 1807, thanks to the impassioned efforts of the Anti-Slavery Society, the British Parliament made the slave trade illegal. The Slavery Abolition Bill was passed by both Houses of Parliament and it received royal assent on 29 August 1833, but it did not come into force until 1 August 1834. On that date slavery was abolished throughout the British Empire. Yet, despite this ban, there were many exceptions to its automatic application throughout the imperial possessions. A loyal servant of the Crown, the colonial judge Sir John Jeremie (1795–1841), conducted a personal campaign against slavery and racism in the colonies of the British Empire. His reflections, based on the reality of daily colonial life, offered a technical rather than doctrinaire contribution to the success of the anti-slavery cause. Jeremie was to pay a high price for his ideas, however, owing to deep-rooted prejudices and the strong economic influence of the powerful caste of slave traders. His Four Essays on Colonial Slavery was published in 1831. This work had considerable influence on British parliamentary debates, and it was strongly attacked by supporters of slavery. As a jurist and legal practitioner, during his cursus honorum (as lawyer, colonial judge and ultimately his appointment as Governor of Sierra Leone), Jeremie brought a practical perspective in writings to the debates which animated the Westminster Parliament, even after the approval of the Abolition Act. Despite the slave trade being abolished in the British Empire, slavery per se continued to be legal in some form for many decades to come. Hence, the issue of slavery continued to be a subject with which Jeremie was associated for the remainder of his life. Another interesting historical source is Jeremie's correspondence with Members of Parliament and the British government. This constitutes a lively exchange with London and testifies to the enlightened and progressive foreign policy vision of this active member of the Anti-Slavery Society. Sir John Jeremie was also interested in migration and integration-related issues, as can be seen from primary sources such as letters and dispatches. The wide variety of his correspondence bears testament to the battle he fought until his death.     

Vietnam’s and China’s Diverging Industrial Relations Systems: Cases of Path Dependency

ABSTRACT

This article explains why Vietnam and China, one-party states that allow only one official trade union, are traversing different paths in their trade unions’ institutional structures, the state’s and trade union’s attitudes towards strikes, their willingness to allow independent trade unions and willingness to engage with the international labour union movement. These will be examined in terms of the path dependency of their recent histories, in which changes have been incremental on a path laid down by pre-existing entrenched institutions, until each national system no longer operated properly and new contingencies obliged the leadership to revamp the system. As a consequence of China’s and Vietnam’s divergent path dependencies, when external contingencies finally forced institutional change, countries have veered onto divergent trajectories – the Trans-Pacific Partnership energising Vietnam to debate the acceptance of autonomous trade unions, while Xi Jinping in China has intensified Party control over industrial relations.