Energy, Wealth and Governance in the Caucasus and Central Asia
Richard M. Auty and Indra de Soysa
In 1991 the eight countries of the Caucasus and Central Asia (CCA) became independent from the former Soviet Union. Although a region rich in natural resources, the transition toward a market economy has not gone smoothly for the CCA countries. Drawing upon recent progress in development economics and political science, this book provides fresh analysis of the CCA countries’ transition by tracing the impact of the natural resource endowment. The book examines the synergies between the energy-rich and energy-poor states and highlights the political consequences of both well-managed and poorly-managed energy revenue deployment.
The region has been a relatively slow reformer, its governments have become more authoritarian, and the contributors argue that despite recent growth spurts further reform is required to sustain rapid GDP growth and mature democracy. They suggest that unless CCA elites change the way in which they deploy natural resource revenues, regional development will fall short of its potential with possibly disastrous consequences. The contributors apply the experience of the developing market economies to demonstrate that the region still holds considerable potential to become an important stable supplier of raw materials and a source of industrial demand to the global economy. However, the CCA could become a threat to the global economy as a consequence of the misuse of energy resources in promoting the interests of predatory political elites.
With contributions from prominent specialists on resource-driven development, Energy, Wealth and Governance in the Caucasus and Central Asia provides a systematic and integrated analysis of the political economy of resources-driven growth in the CCA region. Contributors include: Roy Allison, Richard Auty, Robin Bhatty, William Buiter, Cevdet Denizer, Akram Esanov, Clemens Grafe, Erica Johnson, Mark Katz, Anil Markandya, Richard Pomfret, Martin Raiser, Toshiaki Sakatsume, and Charles Ziegler.
- Richard M. Auty is Professor of Economic Geography at Lancaster University UK.
- Indra de Soysa is Associate Professor of Political Science at the Norwegian University of Science and Technology.
This book resulted from a project organized by The National Bureau of Asian Research.