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Social Capital and Economic Development : The Case of Uzbekistan

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  • Manuela Trochke

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    (Osteuropa-Institut, Regensburg)

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    Abstract

    While most transition countries suffered substantially from the world financial crisis of 2008 and still cope with its consequences, Uzbekistan has stayed almost untouched and shows constant economic growth since 2001. Neither macroeconomic foundations nor available institutional indicators provide an explanation for the sustained “Uzbek Growth Puzzle” (Zettelmeyer, 1999). This paper argues that social capital plays a major role in this puzzle. I examine how social capital has contributed to (1) the ease of transition, (2) the development of effective markets and (3) the development of an effective government. In view of the empirical results from other countries, I analyze the Uzbek case with the help of stylized facts for Uzbek social capital and the data derived from the AsiaBarometer surveys for 2003 and 2005.

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    Paper provided by Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies) in its series Working Papers with number 310.

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    Length: 39
    Date of creation: Dec 2011
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    Handle: RePEc:ost:wpaper:310

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    1. Guido Tabellini, 2006. "Culture and institutions: economic development in the regions of Europe," Levine's Working Paper Archive 321307000000000466, David K. Levine.
    2. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2000. "The Role of Social Capital in Financial Development," NBER Working Papers 7563, National Bureau of Economic Research, Inc.
    3. Marcel Fafchamps & Bart Minten, 2001. "Social Capital and Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 680-685.
    4. Jeromin Zettelmeyer, 1998. "The Uzbek Growth Puzzle," IMF Working Papers 98/133, International Monetary Fund.
    5. Rodrik, Dani, 1999. " Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December.
    6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    7. Ali Mansoor & Bryce Quillin, 2007. "Migration and Remittances : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 6920, October.
    8. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
    9. Samuel Bentolila & Andrea Ichino, 2008. "Unemployment and consumption near and far away from the Mediterranean," Journal of Population Economics, Springer, vol. 21(2), pages 255-280, April.
    10. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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