Experiment after Experiment: Return of Capitalism into the Post-Soviet Countries

379 views

Published on

This lecture is dedicated to the transition of the Soviet nations to new capitalist order and dissemination of relevant new values. Author reviews the whole transitory process as another experiment (after the Soviet experiment) in establishing developed capitalism in emerging nations.The main dimensions of these experiments were connected with finding cultural foundations for new post-Soviet regimes, functioning market economy, and democracy.

Published in: News & Politics
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
379
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Experiment after Experiment: Return of Capitalism into the Post-Soviet Countries

  1. 1. EXPERIMENT AFTER EXPERIMENT RETURN OF CAPITALISM INTO THE POST-SOVIET COUNTRIES Mykhailo Minakov Fulbright Kennan Scholar, University of Kiev-Mohyla Academy Department of Political Science, University of Puerto Rico February 5, 2013
  2. 2. RETURN OF HISTORYFrancis Fukuyama: End of History?Late Soviet Intellectuals: Return of History?
  3. 3. LECTURE’S OUTLINE•  terms: capitalism, Modernity•  main features of the Soviet experiments•  how did Soviet Humans build Capitalist society•  assessment of post-Soviet capitalism so far•  Levels of review: institutional, human
  4. 4. TERMS: CAPITALISMCapitalism is an economic system that is based on privateownership of capital goods and the means of production, and thecreation of goods and services for profit•  institutional set up: •  private property and free market •  political regime supporting the two above•  humans having capacity to make these institutes working•  Modernity: constitutional order of public and private dichotomy
  5. 5. TERMS: CAPITALISM AND MODERNITYCapitalism is an economic system that is based on privateownership of capital goods and the means of production, and thecreation of goods and services for profit•  institutional set up: •  private property and free market •  political regime supporting the two above•  humans having capacity to make these institutes working•  Modernity: constitutional order of public and private dichotomy
  6. 6. TERMS: MODERNITY Public Sphere government judiciary parliament privacy of individual parties civil society family religious organizations business Private Sphere
  7. 7. TERMS: DEVIANT MODERNITY Public Sphere government judiciary parliament privacy of individual parties civil society family religious organizations business Private Sphere
  8. 8. TERMS: MODERNITY 0.65 + Capitalism is an economic system that is based on private 0.60 1961-70 1971-80 ownership of capital goods and the means of production, and the 0.55 afte r 1980 1951-60 creation of goods and services for profit 0.50 1941-50Secular-Rational Values 1931-40 afte r 1980 •  institutional set up: 0.45 be fore 1921 afte r 1980 •  private property and free market 0.40 afte r 1980 1971-80 1961-70 0.35 be fore 1921 after 1980 1951-60 0.30 •  political regime supporting the two above afte r 1980 1941-50 1931-40 •  humans having capacity to make these institutes working 0.25 be fore 1921 1921-30 •  Modernity: constitutional order of public and private dichotomy 0.20 be fore 1921 be fore 1921 0.15 Africa _ 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 _ Self-Expression Values +
  9. 9. SOVIET EXPERIMENT•  leading principles: undivided public and private, political and economic•  social justice after elimination of classes•  Soviet modernization as annihilation of traditions and their bearers
  10. 10. RESULTS OF SOVIET EXPERIMENTIDENTITIES•  legacy of ethnocides•  emerging Soviet identity•  mixed identities
  11. 11. SOVIET HUMANideological expectations: •  new liberated individual, fighter for working class •  control of his/her mind, will, emotions and biology per se (L.Trotsky) •  selfless and immaterial orientation •  from sexual promiscuity to conservative purism
  12. 12. SOVIET CONDITION 1970 - 1985RESULTS OF SOVIET EXPERIMENTcynical totalitarianism •  generation of leaders who survived totalitarian cleanses (good Lenin, different Stalin) •  Soviet ideology loosing to consumerism (double standards) •  failure of propagandist education vs temporary victory of technical modernization
  13. 13. SOVIET EXPERIMENT•  institutions: •  totalitarian institutional set-up (since 1930ies) •  public property with some sector of personal property: no privacy •  dominance of un-codified rules •  nomenclatura and one party-system•  humans: •  class identity vs ethnic identity (final solution of nationality question) •  educated obedience, ideology and cynicism •  doublethink: personal morality vs public indifference
  14. 14. SOVIET EXPERIMENT: ECONOMY•  economy of non-owners: nationalization of means of production•  command economy: centralized bureaucratic allocation replaced market allocation•  prescribed prices and deficient goods distribution•  strange money: hierarchy of currencies•  work as duty and resource terror•  investment in human capital•  autarchy of economic systems
  15. 15. PERESTROIKA 1986 - 1991DISSOLVING THE ORDER•  growth of shadow economy •  entrepreneurs as criminals •  booming bazaar culture •  cooperative movement•  economic crisis
  16. 16. RESULTS OF SOVIET EXPERIMENTSOVIET HUMAN•  educated hatred to values grounding capitalism•  doublethink and dysfunction of official ideology
  17. 17. COLLAPSE OF USSR AND CREATION OFINDEPENDENT UKRAINE
  18. 18. RESULT: PASSIVE CITIZENS DID NOTSTAND UP TO DEFEND THE UNION IN 1991
  19. 19. THE POST-SOVIET EXPERIMENTS‘LIBERAL’ REVOLUTIONARIES•  return to Europe•  build ‘normal society’•  transform state and economy into ‘Western’ ones
  20. 20. EXPERIMENT AFTER EXPERIMENT’SDIMENSIONS:•  quest for new grounds of legitimacy: reference to first half of XX century realties in spite of huge cultural changes of XX century•  quest for plenty and stability: privatization in societies where entrepreneurship was a criminal activity•  quest for optimal government: democratization without institutional support
  21. 21. NEW EXPERIMENTS AND PARTING WAYS•  Russia: moderate democratic and radical economic reforms•  the Baltic countries: radical democratic and economic reforms•  Belarus: Soviet regime reestablished•  Ukraine and Moldova: national-communist rule•  Caucasus: ethnic wars followed by façade-democratic regimes•  Central Asia: national communists lead re-feudalization/ tribalization
  22. 22. INSTITUTIONAL CHANGE•  creation of private owners•  opening economies•  national statehood•  political pluralism and competition
  23. 23. POST-SOVIET HYBRID INSTITUTIONS•  creation of private owners : oligarchy•  open economies : export oriented economies•  national statehood : state-led invention of identities•  political competition : parties as business or fan-organizations
  24. 24. ECONOMIC ‘NORMALIZATION’•  Governmental strategies: •  deregulated prices, prohibited subsidies and eliminated monopolies •  hyperinflation to be put under control of MinFin and independent CentroBank •  looking for owners of the public enterprises: large-scale privatization•  Rent seekers’ strategies: •  making money on transitional market distortions •  control over government•  Population’s strategy: •  survival in chaos, private entrepreneurs without skills •  new clientele networks
  25. 25. RETURN OF CAPITALISM :RE-INVENTING STATE AND MARKET•  economic crisis of 1990s
  26. 26. ECONOMIC ‘NORMALIZATION’•  Governmental strategies: •  deregulated prices, prohibited subsidies and eliminated monopolies •  hyperinflation to be put under control of MinFin and independent CentroBank •  looking for owners of the public enterprises: large-scale privatization•  Rent seekers’ strategies: •  making money on transitional market distortions •  control over government•  Population’s strategy: •  survival in chaos, private entrepreneurs without skills •  new clientele networks
  27. 27. PERESTROIKA 1986 - 1991DISSOLVING THE ORDER•  growth of shadow economy •  entrepreneurs as criminals •  booming bazaar culture •  cooperative movement•  economic crisis
  28. 28. ECONOMIC ‘NORMALIZATION’ECONOMIC CRISIS IN 1992-1997•  Governmental strategies: •  deregulated prices, prohibited subsidies and eliminated monopolies •  hyperinflation to be put under control of MinFin and independent CentroBank •  looking for owners of the public enterprises: large-scale privatization•  Rent seekers’ strategies: •  making money on transitional market distortions •  control over government•  Population’s strategy: •  survival in chaos, private entrepreneurs without skills •  new clientele networks
  29. 29. ECONOMIC ‘NORMALIZATION’•  Governmental strategies: •  deregulated prices, prohibited subsidies and eliminated monopolies •  hyperinflation to be put under control of MinFin and independent CentroBank •  looking for owners of the public enterprises: large-scale privatization•  Rent seekers’ strategies: •  making money on transitional market distortions •  control over government•  Population’s strategy: •  survival in chaos, private entrepreneurs without skills •  new clientele networks
  30. 30. ECONOMIC ‘NORMALIZATION’SURVIVAL ECONOMY•  Governmental strategies: •  deregulated prices, prohibited subsidies and eliminated monopolies •  hyperinflation to be put under control of MinFin and independent CentroBank •  looking for owners of the public enterprises: large-scale privatization•  Rent seekers’ strategies: •  making money on transitional market distortions •  control over government•  Population’s strategy: •  survival in chaos, private entrepreneurs without skills •  new clientele networks
  31. 31. GREAT EXPECTATIONS •  external management of Modernization: former Communist block and the Baltic republics in EU and NATO •  Schengen Iron Curtain •  European integration and Russo-phobia
  32. 32. GREAT EXPECTATIONS •  external management of Modernization: former Communist block and the Baltic republics in EU and NATO •  Schengen Iron Curtain •  European integration and Russo-phobia
  33. 33. POLITICAL ‘NORMALIZATION’•  ideological transition: ethnonationalism - social democracy - liberalism ethnonationalism•  demand for order and a need in new safety net within former Soviet administrative borders•  problematic separation of public and private spheres•  transformation of regimes into democracies (of different types)•  oligarchy and plutocracy: prolongation of transition•  deficit of citizens and dysfunctional civil society
  34. 34. POLITICAL ‘NORMALIZATION’•  ideological transition: ethnonationalism - social democracy - liberalism ethnonationalism•  demand for order and a need in new safety net within former Soviet administrative borders•  problematic separation of public and private spheres•  transformation of regimes into democracies (of different types)•  oligarchy and plutocracy: prolongation of transition•  deficit of citizens and dysfunctional civil society
  35. 35. RETURN OF CAPITALISM : NEW IDENTITIES•  invention of ethnic within the Soviet administrative borders•  prohibition of the Soviet identity•  ethnocracy projects •  the Baltic states: regimes for the non-citizens •  Belarusian reaction: Lukashenka regime •  slow invention of selves: Kazakhstan and Ukraine
  36. 36. RETURN OF CAPITALISM : NEW IDENTITIES•  invention of ethnic within the Soviet administrative borders•  prohibition of the Soviet identity•  ethnocracy projects •  the Baltic states: regimes for the non-citizens •  Belarusian reaction: Lukashenka regime •  slow invention of selves: Kazakhstan and Ukraine
  37. 37. POLITICAL ‘NORMALIZATION’•  ideological transition: ethnonationalism - social democracy - liberalism ethnonationalism•  demand for order and a need in new safety net within former Soviet administrative borders•  problematic separation of public and private spheres•  transformation of regimes into democracies (of different types)•  oligarchy and plutocracy: prolongation of transition•  deficit of citizens and dysfunctional civil society
  38. 38. PRIVATIZATIONeconomic reforms: •  price liberalization, hyperinflation, arbitrage opportunities •  mass privatization •  voucher privatization •  local elites gains
  39. 39. POLITICAL ‘NORMALIZATION’•  ideological transition: ethnonationalism - social democracy - liberalism ethnonationalism•  demand for order and a need in new safety net within former Soviet administrative borders•  problematic separation of public and private spheres•  transformation of regimes into democracies (of different types)•  oligarchy and plutocracy: prolongation of transition•  deficit of citizens and dysfunctional civil society
  40. 40. POLITICAL ‘NORMALIZATION’•  ideological transition: ethnonationalism - social democracy - liberalism ethnonationalism•  demand for order and a need in new safety net within former Soviet administrative borders•  problematic separation of public and private spheres•  transformation of regimes into democracies (of different types)•  oligarchy and plutocracy: prolongation of transition•  deficit of citizens and dysfunctional civil society
  41. 41. POLITICAL ‘NORMALIZATION’•  ideological transition: ethnonationalism - social democracy - liberalism ethnonationalism•  demand for order and a need in new safety net within former Soviet administrative borders•  problematic separation of public and private spheres•  transformation of regimes into democracies (of different types)•  oligarchy and plutocracy: prolongation of transition•  deficit of citizens and dysfunctional civil society
  42. 42. POLITICAL ‘NORMALIZATION’•  ideological transition: ethnonationalism - social democracy - liberalism ethnonationalism•  demand for order and a need in new safety net within former Soviet administrative borders•  problematic separation of public and private spheres•  transformation of regimes into democracies (of different types)•  oligarchy and plutocracy: prolongation of transition•  deficit of citizens and dysfunctional civil society
  43. 43. DEMOCRACY VS AUTOCRACY•  democratic regimes with market economies: the Baltic countries•  façade democracies with remainings of political and economic pluralism: Armenia, Georgia, Moldova, and Kyrgyzstan•  mild authoritarian regimes with economies favoring rent-seekers: Kazakhstan, Russia, Tajikistan, and Ukraine•  authoritarian regimes: Azerbaijan, Belarus, Turkmenistan and Uzbekistan
  44. 44. DEMOCRACY VS AUTOCRACY•  democratic regimes with market economies: the Baltic countries•  façade democracies with remainings of political and economic pluralism: Armenia, Georgia, Moldova, and Kyrgyzstan•  mild authoritarian regimes with economies favoring rent-seekers: Kazakhstan, Russia, Tajikistan, and Ukraine•  authoritarian regimes: Azerbaijan, Belarus, Turkmenistan and Uzbekistan
  45. 45. GREAT EXPECTATIONS •  external management of Modernization: former Communist block and the Baltic republics in EU and NATO •  Schengen Iron Curtain •  European integration and Russo-phobia
  46. 46. GREAT EXPECTATIONS •  external management of Modernization: former Communist block and the Baltic republics in EU and NATO •  Schengen Iron Curtain •  European integration and Russo-phobia
  47. 47. POST-SOVIET HUMAN•  money value and consumer society•  distrust and social fragmentation•  conflicting individualism•  new interest in collectivism and irrationalism : radical nationalism and conservatism•  depopulation•  lost in transition
  48. 48. POST-SOVIET HUMAN•  money value and consumer society•  distrust and social fragmentation•  conflicting individualism•  new interest in collectivism and irrationalism : radical nationalism and conservatism•  depopulation•  lost in transition
  49. 49. INFLATION IN THE BALTIC COUNTRIESeconomic reforms: •  price liberalization, hyperinflation, arbitrage opportunities •  mass privatization •  voucher privatization •  local elites gains
  50. 50. PERESTROIKA 1986 - 1991DISSOLVING THE ORDER•  growth of shadow economy •  entrepreneurs as criminals •  booming bazaar culture •  cooperative movement•  economic crisis
  51. 51. WISDOM OF ‘WILD 1990-S’:KARL MARX WAS WRONG ABOUT SOCIALISM,BUT HE WAS DAMN RIGHT ABOUTCAPITALISM
  52. 52. POST-SOVIET HUMAN ON USSR COLLAPSE source: The Pulse of Europe 2009: 20 Years After the Fall of the Berlin Wall
  53. 53. POST-SOVIET HUMAN ON USSR COLLAPSE source: The Pulse of Europe 2009: 20 Years After the Fall of the Berlin Wall
  54. 54. INTERIM CONCLUSIONS •  History and its challenges are back in fSU countries •  Questionable legitimacies of political regimes •  Future as source of danger, territory as challenge •  Transition with no final point
  55. 55. THANK YOUFOR YOUR ATTENTION!

×