IDEAS home Printed from
   My bibliography  Save this paper

Privatisation and Corporate Governance in Kazakhstan and Uzbekistan : Insights from a Corporate Survey in Food and Light Industries


  • Manuela Troschke

    () (Osteuropa-Institut, Regensburg (Institut for East European Studies))

  • Andreas Zeitler


This paper presents the results from a private sector survey among companies of the food industry in Kazakhstan and Uzbekistan as well as of the light industry in Uzbekistan. It provides microeconomic evidence on the change in the companies’ ownership structure resulting from the privatisation programmes as well as the development in more recent years. The privatisation of companies was more profound in Kazakhstan than in Uzbekistan where the state still retained larger shares in its companies and even managed to re-increase its stakes due to strategic considerations. While the data confirm and prove the extent of the insider privatisation in Kazakhstan, Uzbek companies‘ ownership got more dispersed and company insiders play a very subordinate role. The use and design of manager contracts in these two countries does not turn out to feature basic incentive components on a broad scale as in the case of the Chinese management contracts contradicting the hypotheses of a similar application in Uzbekistan’s de facto state enterprises. Company control was highly transferred into the responsibility of corporate bodies in both countries though state interference in the companies’ affairs remains an important aspect of doing business, especially in Uzbekistan. The companies face further obstacles which hinder and retard the development of a sound private corporate sector, especially a high tax burden and bureaucratic red tape, macroeconomic instability, lack of finance and an inadequate provision of infrastructure. The state, especially in Uzbekistan, still intervenes in the private sector in favour of selected companies which improves these companies’ perception about the role of the state. On the other hand, this state behaviour prevents or at least delays the dissolution of the inherited structural and corporate distortions which would improve corporate efficiency and would be essential for a successful transition to a market economy.

Suggested Citation

  • Manuela Troschke & Andreas Zeitler, 2006. "Privatisation and Corporate Governance in Kazakhstan and Uzbekistan : Insights from a Corporate Survey in Food and Light Industries," Working Papers 259, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
  • Handle: RePEc:ost:wpaper:259

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:jle:journl:137 is not listed on IDEAS

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ost:wpaper:259. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kseniia Gatskova). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.