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Volumn 47, Issue 4, 2000, Pages 34-44

International aid to the former Soviet States: Agent of change or guardian of the status quo?

(1)  Cooley, Alexander a  

a NONE

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EID: 0034215731     PISSN: 10758216     EISSN: None     Source Type: Journal    
DOI: 10.1080/10758216.2000.11655892     Document Type: Article
Times cited : (18)

References (85)
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    • Washington, DC: Carnegie Endowment for International Peace
    • There are some notable exceptions. On strategies for promoting democracy, see Thomas Carothers, Assessing Democracy Assistance: The Case of Romania (Washington, DC: Carnegie Endowment for International Peace, 1996). On technical assistance, see Raymond J. Struyk, Making Aid Work: Lessons from Successful Technical Cooperation in the Former Soviet Bloc (Washington, DC: Urban Institute Press, 1997); Nancy Lubin and Monica Ware, Aid to the Former Soviet Union: When Less Is More (New York: JNA Associates, 1996). See also Janine Wedel's provocative anthropological study, Collision and Collusion: The Strange Case of Western Aid to Eastern Europe, 1989-1998 (New York: St. Martin's Press, 1998).
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    • Washington, DC: Urban Institute Press
    • There are some notable exceptions. On strategies for promoting democracy, see Thomas Carothers, Assessing Democracy Assistance: The Case of Romania (Washington, DC: Carnegie Endowment for International Peace, 1996). On technical assistance, see Raymond J. Struyk, Making Aid Work: Lessons from Successful Technical Cooperation in the Former Soviet Bloc (Washington, DC: Urban Institute Press, 1997); Nancy Lubin and Monica Ware, Aid to the Former Soviet Union: When Less Is More (New York: JNA Associates, 1996). See also Janine Wedel's provocative anthropological study, Collision and Collusion: The Strange Case of Western Aid to Eastern Europe, 1989-1998 (New York: St. Martin's Press, 1998).
    • (1997) Making Aid Work: Lessons from Successful Technical Cooperation in the Former Soviet Bloc
    • Struyk, R.J.1
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    • 0002339322 scopus 로고    scopus 로고
    • New York: JNA Associates
    • There are some notable exceptions. On strategies for promoting democracy, see Thomas Carothers, Assessing Democracy Assistance: The Case of Romania (Washington, DC: Carnegie Endowment for International Peace, 1996). On technical assistance, see Raymond J. Struyk, Making Aid Work: Lessons from Successful Technical Cooperation in the Former Soviet Bloc (Washington, DC: Urban Institute Press, 1997); Nancy Lubin and Monica Ware, Aid to the Former Soviet Union: When Less Is More (New York: JNA Associates, 1996). See also Janine Wedel's provocative anthropological study, Collision and Collusion: The Strange Case of Western Aid to Eastern Europe, 1989-1998 (New York: St. Martin's Press, 1998).
    • (1996) Aid to the Former Soviet Union: When Less Is More
    • Lubin, N.1    Ware, M.2
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    • Provocative anthropological study
    • New York: St. Martin's Press
    • There are some notable exceptions. On strategies for promoting democracy, see Thomas Carothers, Assessing Democracy Assistance: The Case of Romania (Washington, DC: Carnegie Endowment for International Peace, 1996). On technical assistance, see Raymond J. Struyk, Making Aid Work: Lessons from Successful Technical Cooperation in the Former Soviet Bloc (Washington, DC: Urban Institute Press, 1997); Nancy Lubin and Monica Ware, Aid to the Former Soviet Union: When Less Is More (New York: JNA Associates, 1996). See also Janine Wedel's provocative anthropological study, Collision and Collusion: The Strange Case of Western Aid to Eastern Europe, 1989-1998 (New York: St. Martin's Press, 1998).
    • (1998) Collision and Collusion: The Strange Case of Western Aid to Eastern Europe, 1989-1998
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    • Cambridge, MA: MIT Press
    • The literature on economic transitions is vast. Classic works include Jeffrey Sachs, Poland's Jump to the Market Economy (Cambridge, MA: MIT Press, 1994); Anders Aslund, How Russia Became a Market Economy (Washington, DC: Brookings Institution, 1995); and Padma Desai, ed., Going Global: Transition from Plan to Market in World Economy (Cambridge, MA: MIT Press, 1997). For good surveys published by international lenders, see the World Bank's World Development Report 1996: From Plan to Market (Washington, DC: Oxford University Press, 1996);
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    • The literature on economic transitions is vast. Classic works include Jeffrey Sachs, Poland's Jump to the Market Economy (Cambridge, MA: MIT Press, 1994); Anders Aslund, How Russia Became a Market Economy (Washington, DC: Brookings Institution, 1995); and Padma Desai, ed., Going Global: Transition from Plan to Market in World Economy (Cambridge, MA: MIT Press, 1997). For good surveys published by international lenders, see the World Bank's World Development Report 1996: From Plan to Market (Washington, DC: Oxford University Press, 1996);
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    • Cambridge, MA: MIT Press
    • The literature on economic transitions is vast. Classic works include Jeffrey Sachs, Poland's Jump to the Market Economy (Cambridge, MA: MIT Press, 1994); Anders Aslund, How Russia Became a Market Economy (Washington, DC: Brookings Institution, 1995); and Padma Desai, ed., Going Global: Transition from Plan to Market in World Economy (Cambridge, MA: MIT Press, 1997). For good surveys published by international lenders, see the World Bank's World Development Report 1996: From Plan to Market (Washington, DC: Oxford University Press, 1996);
    • (1997) Going Global: Transition from Plan to Market in World Economy
    • Desai, P.1
  • 8
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    • Washington, DC: Oxford University Press
    • The literature on economic transitions is vast. Classic works include Jeffrey Sachs, Poland's Jump to the Market Economy (Cambridge, MA: MIT Press, 1994); Anders Aslund, How Russia Became a Market Economy (Washington, DC: Brookings Institution, 1995); and Padma Desai, ed., Going Global: Transition from Plan to Market in World Economy (Cambridge, MA: MIT Press, 1997). For good surveys published by international lenders, see the World Bank's World Development Report 1996: From Plan to Market (Washington, DC: Oxford University Press, 1996);
    • (1996) The World Bank's World Development Report 1996: From Plan to Market
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    • London: EBRD
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    • ed. Shafiqul Islam and Michael Mandelbaum New York: Council on Foreign Relations Press
    • Jeffrey Sachs, "Western Financial Assistance and Russia's Reforms," in Making Markets: Economic Transformation in Eastern Europe and the Post-Soviet States, ed. Shafiqul Islam and Michael Mandelbaum (New York: Council on Foreign Relations Press, 1993).
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    • Sachs, J.1
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    • Princeton, NJ: Princeton University Press, chap. 5
    • Stephen Krasner, Sovereignty: Organized Hypocrisy (Princeton, NJ: Princeton University Press, 1999), chap. 5; Kendall W. Stiles, Negotiating Debt: The IMF Lending Process (Boulder, CO: Westview Press, 1991); Robin Broad, Unequal Alliance: The World Bank, the IMF, and the Philippines (Berkeley: University of California Press, 1988); John Williamson, ed., IMF Conditionality (Washington, DC: Institute for International Economics, 1983).
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    • Boulder, CO: Westview Press
    • Stephen Krasner, Sovereignty: Organized Hypocrisy (Princeton, NJ: Princeton University Press, 1999), chap. 5; Kendall W. Stiles, Negotiating Debt: The IMF Lending Process (Boulder, CO: Westview Press, 1991); Robin Broad, Unequal Alliance: The World Bank, the IMF, and the Philippines (Berkeley: University of California Press, 1988); John Williamson, ed., IMF Conditionality (Washington, DC: Institute for International Economics, 1983).
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    • Stephen Krasner, Sovereignty: Organized Hypocrisy (Princeton, NJ: Princeton University Press, 1999), chap. 5; Kendall W. Stiles, Negotiating Debt: The IMF Lending Process (Boulder, CO: Westview Press, 1991); Robin Broad, Unequal Alliance: The World Bank, the IMF, and the Philippines (Berkeley: University of California Press, 1988); John Williamson, ed., IMF Conditionality (Washington, DC: Institute for International Economics, 1983).
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    • Broad, R.1
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    • Stephen Krasner, Sovereignty: Organized Hypocrisy (Princeton, NJ: Princeton University Press, 1999), chap. 5; Kendall W. Stiles, Negotiating Debt: The IMF Lending Process (Boulder, CO: Westview Press, 1991); Robin Broad, Unequal Alliance: The World Bank, the IMF, and the Philippines (Berkeley: University of California Press, 1988); John Williamson, ed., IMF Conditionality (Washington, DC: Institute for International Economics, 1983).
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    • paper prepared for the Annual Bank Conference on Development Economics, Washington, DC, April 28-30
    • Of course, the reasons for the FSU states' current economic stagnation are complex and in no way should be attributed solely to the practices of international donors and financial institutions. See Joseph Stiglitz, "Whither Reform: Ten Years of the Transition" (paper prepared for the Annual Bank Conference on Development Economics, Washington, DC, April 28-30, 1999); Clifford Gaddy and Barry W. Ickes, "Russia's Virtual Economy," Foreign Affairs 77, no. 5 (September/October 1998): 53-77.
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    • Russia's virtual economy
    • September/October
    • Of course, the reasons for the FSU states' current economic stagnation are complex and in no way should be attributed solely to the practices of international donors and financial institutions. See Joseph Stiglitz, "Whither Reform: Ten Years of the Transition" (paper prepared for the Annual Bank Conference on Development Economics, Washington, DC, April 28-30, 1999); Clifford Gaddy and Barry W. Ickes, "Russia's Virtual Economy," Foreign Affairs 77, no. 5 (September/October 1998): 53-77.
    • (1998) Foreign Affairs , vol.77 , Issue.5 , pp. 53-77
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    • note
    • Indeed, the recent embezzlement scandals and reports of IMF loans finding their way to offshore bank accounts only lend support to my argument. However, there are serious political arguments for continuing assistance to Russia that perhaps do not apply to smaller states like Moldova and Kyrgyzstan.
  • 19
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    • Boston: Alien & Unwin
    • Classic analyses of the Soviet economic system are given by Paul Gregory and Robert Stuart, Soviet and Post-Soviet Economic Structure and Performance, 5th ed. (New York: Harper Collins, 1994); Alec Nove, The Soviet Economic System (Boston: Alien & Unwin, 1986).
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    • For an excellent discussion of the relationship between formal and informal institutions in the communist and post-communist eras, see Martin Raiser, "Informal Institutions, Social Capital and Economic Transition: Reflections on a Neglected Dimension," Working Paper 25 (London: EBRD, August 1997) (www.ebrd.com/english/region/workingp/index.htm).
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    • On the political significance of these transfers, see Barnett Rubin, "Tajikistan: From Soviet Republic to Russian-Uzbek Protectorate," in Central Asia and the World, ed. Michael Mandelbaum (New York: Council on Foreign Relations Press, 1994).
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    • The economic transformation process in the Post-Soviet States: The role of outside actors
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    • The IMF has a number of different lending facilities for the post-Soviet states. Upon the collapse of the Soviet Union, the Fund created the Systematic Transformation Facility (STF) as a new facility specifically designed to aid the reform process in the former Soviet region. The quota of Extended Structural Adjustment Facility (ESAF) drawing rights is calculated based upon the economy's economic size and is the standard conditional loan associated with structural adjustment. See Gertrude Schroeder, "The Economic Transformation Process in the Post-Soviet States: The Role of Outside Actors," in The International Dimension of Post-Communist Transitions in Russia and the New States of Eurasia, ed. Karen Dawisha (Armonk, NY: M.E. Sharpe, 1998), pp. 243-76.
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    • Russia and the IMF
    • For a useful overview of the IMF's involvement in Russia, see Nigel Gould-Davies and Ngaire Woods, "Russia and the IMF," International Affairs 75, no. 1 (1999): 1-21. 17. See Peter Evans, "Transnational Linkages and the Economic Role of the State," in Bringing the State Back In, ed. Peter Evans, Dietrich Rueschmeyer, and Theda Skocpol (New York: Cambridge University Press, 1985).
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    • For a useful overview of the IMF's involvement in Russia, see Nigel Gould-Davies and Ngaire Woods, "Russia and the IMF," International Affairs 75, no. 1 (1999): 1-21. 17. See Peter Evans, "Transnational Linkages and the Economic Role of the State," in Bringing the State Back In, ed. Peter Evans, Dietrich Rueschmeyer, and Theda Skocpol (New York: Cambridge University Press, 1985).
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    • Kathryn Firmin-Sellers, "The Politics of Property Rights," American Political Science Review 89, no. 4 (1995): 867-81; Thrain Eggertson, Economic Behavior and Institutions (New York: Cambridge University Press, 1990); Douglass North, Institutions, Institutional Change, and Economic Performance (New York: Cambridge University Press, 1990); idem, Structure and Change in Economic History (New York: Norton, 1981).
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    • New York: Norton
    • Kathryn Firmin-Sellers, "The Politics of Property Rights," American Political Science Review 89, no. 4 (1995): 867-81; Thrain Eggertson, Economic Behavior and Institutions (New York: Cambridge University Press, 1990); Douglass North, Institutions, Institutional Change, and Economic Performance (New York: Cambridge University Press, 1990); idem, Structure and Change in Economic History (New York: Norton, 1981).
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    • Accounts of why conditionality programs have failed in Africa include Thomas M. Callaghy and John Ravenhill, eds., Hemmed In: Responses to Africa's Economic Decline (New York: Columbia University Press, 1993); Fredoline O. Anunobi, The Implications of Conditionality: The International Monetary Fund and Africa (Lanham, MD: University Press of America, 1992); Dharam P. Ghai, ed., The IMF and the South: The Social Impact of Crisis and Adjustment (Atlantic Highlands, NJ: Zed Books, 1991).
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    • Accounts of why conditionality programs have failed in Africa include Thomas M. Callaghy and John Ravenhill, eds., Hemmed In: Responses to Africa's Economic Decline (New York: Columbia University Press, 1993); Fredoline O. Anunobi, The Implications of Conditionality: The International Monetary Fund and Africa (Lanham, MD: University Press of America, 1992); Dharam P. Ghai, ed., The IMF and the South: The Social Impact of Crisis and Adjustment (Atlantic Highlands, NJ: Zed Books, 1991).
    • (1992) The Implications of Conditionality: The International Monetary Fund and Africa
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    • Atlantic Highlands, NJ: Zed Books
    • Accounts of why conditionality programs have failed in Africa include Thomas M. Callaghy and John Ravenhill, eds., Hemmed In: Responses to Africa's Economic Decline (New York: Columbia University Press, 1993); Fredoline O. Anunobi, The Implications of Conditionality: The International Monetary Fund and Africa (Lanham, MD: University Press of America, 1992); Dharam P. Ghai, ed., The IMF and the South: The Social Impact of Crisis and Adjustment (Atlantic Highlands, NJ: Zed Books, 1991).
    • (1991) The IMF and the South: The Social Impact of Crisis and Adjustment
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    • Georgia: Tax revenues fall short because of corruption
    • [Moscow] June 23, translated in World News Connection
    • "Georgia: Tax Revenues Fall Short Because of Corruption," Interfax [Moscow] (June 23, 1997), translated in World News Connection,
    • (1997) Interfax
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    • [hereinafter WNC:SOV] June 23
    • Daily Report: Central Eurasia [hereinafter WNC:SOV] (June 23, 1997). "IMF Approves Augmentation and Extension of Georgia's ESAF Loan," International Monetary Fund press release No. 99/34, July 23,1999 (www.imf.org/external/np/sec/pr/1999/PR9934.HTM).
    • (1997) Daily Report: Central Eurasia
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    • IMF approves augmentation and extension of Georgia's ESAF loan
    • July 23
    • Daily Report: Central Eurasia [hereinafter WNC:SOV] (June 23, 1997). "IMF Approves Augmentation and Extension of Georgia's ESAF Loan," International Monetary Fund press release No. 99/34, July 23,1999 (www.imf.org/external/np/sec/pr/1999/PR9934.HTM).
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    • Washington, DC: IMF
    • International Monetary Fund, Kyrgyz Republic: Recent Economic Developments (Washington, DC: IMF, 1998), p. 14. VAT areas that were granted subsequent exemptions included organized gambling, financial services, and selected agricultural producers. The more politically motivated amendments for exemptions from the income tax include income derived from the extraction of precious metals, inheritances, interest income, and "income from the sale of apartments, houses, cars, jewelry, and artwork" (ibid., pp. 83, 87).
    • (1998) Kyrgyz Republic: Recent Economic Developments , pp. 14
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    • Income from the sale of apartments, houses, cars, jewelry, and artwork
    • International Monetary Fund, Kyrgyz Republic: Recent Economic Developments (Washington, DC: IMF, 1998), p. 14. VAT areas that were granted subsequent exemptions included organized gambling, financial services, and selected agricultural producers. The more politically motivated amendments for exemptions from the income tax include income derived from the extraction of precious metals, inheritances, interest income, and "income from the sale of apartments, houses, cars, jewelry, and artwork" (ibid., pp. 83, 87).
    • Kyrgyz Republic: Recent Economic Developments , pp. 83
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    • International Monetary Fund, Georgia, p. 14.
    • Georgia , pp. 14
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    • Princeton: Princeton University Press
    • For studies that apply principal-agent modeling to issues of economic control in the former Soviet Union, see Randall W. Stone, Satellites and Commissars: Strategy and Conflict in the Politics of Soviet-Bloc Trade (Princeton: Princeton University Press, 1996); Steven Solnick, Stealing the State: Control and Collapse in Soviet Institutions (Cambridge: Harvard University Press, 1998).
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    • For studies that apply principal-agent modeling to issues of economic control in the former Soviet Union, see Randall W. Stone, Satellites and Commissars: Strategy and Conflict in the Politics of Soviet-Bloc Trade (Princeton: Princeton University Press, 1996); Steven Solnick, Stealing the State: Control and Collapse in Soviet Institutions (Cambridge: Harvard University Press, 1998).
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    • The growth of the second economy in the Soviet Union and its impact on the system
    • ed. Robert W. Campbell Boulder, CO: Westview Press
    • Vladimir Treml and Michael Alexeev, "The Growth of the Second Economy in the Soviet Union and Its Impact on the System," in The Postcommunist Economic Transformation: Essays in Honor of Gregory Grossman, ed. Robert W. Campbell (Boulder, CO: Westview Press, 1994); and Gregory Grossman, "The 'Second Economy' of the USSR," Problems of Communism 26, no. 5 (September/October 1977): 25-40. For discussion of Central Asian patterns of corruption, see Boris Rumer, Soviet Central Asia: "A Tragic Experiment" (Boston: Unwin Hyman, 1989), chap. 8.
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    • Vladimir Treml and Michael Alexeev, "The Growth of the Second Economy in the Soviet Union and Its Impact on the System," in The Postcommunist Economic Transformation: Essays in Honor of Gregory Grossman, ed. Robert W. Campbell (Boulder, CO: Westview Press, 1994); and Gregory Grossman, "The 'Second Economy' of the USSR," Problems of Communism 26, no. 5 (September/October 1977): 25-40. For discussion of Central Asian patterns of corruption, see Boris Rumer, Soviet Central Asia: "A Tragic Experiment" (Boston: Unwin Hyman, 1989), chap. 8.
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    • Boston: Unwin Hyman, chap. 8.
    • Vladimir Treml and Michael Alexeev, "The Growth of the Second Economy in the Soviet Union and Its Impact on the System," in The Postcommunist Economic Transformation: Essays in Honor of Gregory Grossman, ed. Robert W. Campbell (Boulder, CO: Westview Press, 1994); and Gregory Grossman, "The 'Second Economy' of the USSR," Problems of Communism 26, no. 5 (September/October 1977): 25-40. For discussion of Central Asian patterns of corruption, see Boris Rumer, Soviet Central Asia: "A Tragic Experiment" (Boston: Unwin Hyman, 1989), chap. 8.
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    • Foreign assistance to kyrgyzstan
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    • "Foreign assistance to Kyrgyzstan," Central Asian Post 14 (April 13, 1998); "'Hot' Atmosphere Expected in Parliament Upper-House Session," Slovo Kyrgyzstana, in WNC:SOV (May 15, 1998).
    • (1998) Central Asian Post , vol.14
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    • 'hot' atmosphere expected in parliament upper-house session
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    • "Foreign assistance to Kyrgyzstan," Central Asian Post 14 (April 13, 1998); "'Hot' Atmosphere Expected in Parliament Upper-House Session," Slovo Kyrgyzstana, in WNC:SOV (May 15, 1998).
    • (1998) Slovo Kyrgyzstana
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    • Armenia: Armenia court stops investigation of 'Chinese credit' case
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    • "Armenia: Armenia Court Stops Investigation of 'Chinese Credit' Case," Erevan Noian Tapan, in WNC:SOV (July 9, 1998).
    • (1998) Erevan Noian Tapan
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    • Communist leader wants 'drastic change' of reform course
    • WNC:SOV March 17
    • See "Communist Leader Wants 'Drastic Change' of Reform Course," Chisinau Infotag, in WNC:SOV (March 17, 1998); and "Moldovan Parliament Reportedly Facing Corruption Scandal," ITAR-TASS World Service WNC:SOV (July 1, 1998).
    • (1998) Chisinau Infotag
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