Economics

The post-Soviet economic development has been predominantly explained through transition paradigm, where countries are assessed to what extent authoritarian and centralized economies have been liberalized and privatized towards a market economy. Its underlying normative assertion is that economic growth and development are achieved through market mechanisms, and poor economic performance and stagnation are outcomes of lack of political will for reforms and domestic conditions (Heatherhaw and Cooley 2015). This chapter examines the economic development trajectory of Central Asian countries, and argues that the 'economic transition' paradigm is flawed because it fails to discern the complexity of neoliberalism-led capitalism (see Soederberg 2012; Robison 2006). In particular, there is little scrutiny between 'market reforms' and high levels of indebtedness, socio-economic inequality, corruption and unsustainable development in the region. This chapter will examine how Western-led international financial institutions pursued two neoliberal economic strategies of extraction-based and debt-led growth in Central Asia, and their negative impact on society. It will also examine the emergence of two alternative economic imaginaries that counter the US neoliberal global hegemony.