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The Theory and the Practice of Neoliberal Transformation in Kyrgyzstan: the Case of Gold Extraction in the Bozumchak Mining Field

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The Theory and the Practice of Neoliberal Transformation in Kyrgyzstan: the Case of Gold Extraction in the Bozumchak Mining Field THE THEORY AND THE PRACTICE OF NEOLIBERAL TRANSFORMATION IN KYRGYZSTAN: THE CASE OF GOLD EXTRACTION IN THE BOZUMCHAK MINING FIELD A THESIS SUBMITTED TO THE GRADUATE SCHOOL OF SOCIAL SCIENCES OF MIDDLE EAST TECHNICAL UNIVERSITY BY ZAMIRBEK MANASOV IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR DOCTOR OF PHILOSOPHY IN THE DEPARTMENT OF INTERNATIONAL RELATIONS JANUARY 2019 Approval of the Graduate School of Social Sciences Prof. Dr. Tülin Gençöz Director I certify that this thesis satisfies all the requirements as a thesis for the degree of Doctor of Philosophy. Prof. Dr. Oktay Tanrısever Head of Department This is to certify that we have read this thesis and that in our opinion it is fully adequate, in scope and quality, as a thesis for the degree of Doctor of Philosophy. Assoc. Prof. Dr. Pınar Bedirhanoğlu Supervisor Examining Committee Members Prof. Dr. Pınar Köksal (METU, ADM) Assoc. Prof. Dr. Pınar Bedirhanoğlu (METU, IR) Assist. Prof. Dr. Ş.Onur Bahçecik (METU, IR) Assoc. Prof. Dr. Cenk Saraçoğlu (Ankara Uni., GZT) Assist. Prof. Dr. Pınar İpek (Bilkent Uni., IR) I hereby declare that all information in this document has been obtained and presented in accordance with academic rules and ethical conduct. I also declare that, as required by these rules and conduct, I have fully cited and referenced all material and results that are not original to this work. Name, Last name : Zamirbek Manasov Signature : iii ABSTRACT THE THEORY AND THE PRACTICE OF NEOLIBERAL TRANSFORMATION IN KYRGYZSTAN: THE CASE OF GOLD EXTRACTION IN THE BOZUMCHAK MINING FIELD Manasov, Zamirbek Ph.D., Department of International Relations Supervisor: Assoc. Prof. Dr. Pınar Bedirhanoğlu January 2019, 253 pages In order to create a market-based economic order in Kyrgyzstan, radical neoliberal reforms were launched immediately after the country gained independence in 1991. Neoliberalism promised efficiency, competition, and growth to the transition countries, but the social reactions that emerged against the new social order in Kyrgyzstan since the 2000s have implied that these promises have to be rethought within the context of concrete social transformations. This thesis intends to make such an investigation by focusing on the country’s gold extraction market in general and the Bozumchak gold mining field in particular in an attempt to understand how the relations between foreign investors, local and central state authorities, and the local community have been shaped during the formation of the neoliberal order. This thesis argues that the ‘free’ gold extraction market in Kyrgyzstan has failed to ensure the tasks attributed to it by neoliberals. For, contrary to the expectations, monopoly rather than competition, informality rather than formality, and paternalism rather than professionalism have started to identify the social relations of gold extraction in the villages providing employment to the Bozumchak field. It is interesting to note that the weakening of state authority was compensated iv by the strengthening of the political rule of the private company, the Kazakhmys, over the local community. Keywords: Neoliberalism, Political Economy, Kyrgyzstan, Gold Extraction, Bozumchak v ÖZ KIRGIZİSTAN’DA NEOLİBERAL DÖNÜŞÜMÜN KURAMI VE PRATİĞİ: BOZUMCHAK ALTIN MADEN OCAĞI ÖRNEĞİ Manasov, Zamirbek Doktora, Uluslararası İlişkiler Bölümü Tez Yöneticisi : Doç. Dr. Pınar Bedirhanoğlu Ocak 2019, 253 sayfa 1991’deki bağımsızlığı sonrası Kırgızistan’da, serbest piyasa ekonomisi düzenine geçmek amacıyla radikal kararlar alınarak neoliberal reformlar yapılmaya başlanmıştır. Neoliberal reformlar piyasa ekonomisine geçiş sürecinde olan ekonomilere etkinlik, rekabet ve büyüme vaat etmiştir. Ancak 2000’li yıllardan itibaren Kırgızistan’da sosyoekonomik düzene karşı gelişen memnuniyetsizliklerin artması, bu vaatlerin somut toplumsal değişimler bağlamında yeniden gözden geçirilmesini gerektirmiştir. Bu tez bu tür bir sorgulamayı genel olarak Kırgızistan’daki altın madenciliği, özel olarak da Bozumchak altın madenine odaklanarak yapmayı ve neoliberal düzenin kurulması sürecinde yabancı yatırımcılar, yerel ve merkezî hükûmet yetkilileri ve yerel halk arasındaki ilişkilerin nasıl değiştiştiğini anlamayı hedeflemektedir. Tezde, Kırgızistan’ın “serbest” altın madenciliği piyasasının neoliberallerin vaat ettiği düzeni oluşturmakta başarısız olduğu öne sürülmüştür. Bozumchak altın madeni etrafında oluşan sosyoekonomik düzen, neoliberaller tarafından öngörülen rekabetçi ortam yerine tekelci bir yapı, resmî ilişkiler yerine gayriresmî ilişkiler, profesyonel yaklaşım yerine vesayetçi bir yaklaşım ortaya çıkarmıştır. Daha da vi ilginci, yerel halk üzerinde devletin zayıflayan otoritesinin özel bir şirket olan Kazakhmys’in siyasi güçlenişi ile telafi edilmiş olmasıdır. Anahtar Kelimeler: Neoliberalizm, Siyasi İktisat, Kırgızistan, Altın Madenciliği, Bozumchak vii To Memory of my Beloved Mother Masuda Manasova viii ACKNOWLEDGMENTS My greatest achievement through the Ph.D. program is the change from a narrow-minded student whose thoughts were dominated by subjective neoliberal opinions and emotions to a researcher with objective alternative analytical thinking skills. This change could not happen without the support from my supervisor, Assoc.Prof.Dr.Pınar Bedirhanoğlu. Pınar Bedirhanoğlu has allowed me to compare and contrast theories and approaches by advising to take different courses. She has given insightful instructions and showed great patience and tolerance in guiding me gradually toward the end of this journey. Her suggestions have helped me to improve my arguments on many issues. I would also like to thank the members of the examining committee, Prof.Dr. Pınar Köksal, Assist. Prof.Dr. Ş.Onur Bahçecik, Assoc.Prof. Dr. Cenk Saraçoğlu and Assist.Prof. Dr. Pınar İpek for their careful reading of my thesis. Their valuable recommendations have improved the quality of my work. I also would like to thank Eurasian Studies Department of METU, especially to Head of the Department Professor Pınar Köksal, for their endless moral supports and giving me chance to be part of Eurasian Studies Department as a research assistant. Professor Köksal was always willing to meet me and very insightful in pointing out the most crucial points in my research. No words can express my gratitude to my family for growing me up with the enthusiasm for knowledge. My mother deserves a special reference for always being there for me. I would like to thank my lovely wife as well for helping me whenever I needed. I would not have completed this thesis without her support. I am grateful to all the interviewees, residents of the Kok Serek village for their hospitality and conversations. I am also very thankful to my nephew Altinai Yulchibaeva, a promising student ofjournalism for her interminable energy during the decoding of interviews. I also want to thank Mustafa İkiz for his hospitality and sincerity during my visit in Ankara, Turkey. ix This thesis was supported by the Scientific and Technological Research Council of Turkey (TÜBİTAK) and Kyrgyz-Turkish Manas University. I am grateful for their financial support. x TABLE OF CONTENTS PLAGIARISM............................................................... ............................................iii ABSTRACT ............................................................................................................... iv ÖZ............................................................................................................................... vi DEDICATION ......................................................................................................... viii ACKNOWLEDGMENTS ......................................................................................... ix TABLE OF CONTENTS ........................................................................................... xi LIST OF TABLES .................................................................................................. xiii LIST OF FIGURES ................................................................................................. xiv LIST OF ABBREVIATIONS ................................................................................. xv CHAPTER 1. INTRODUCTION ................................................................................................ 1 1.1. Main Problem ............................................................................................... 1 1.2. Method of the Study ..................................................................................... 5 1.2.1. The Case Study as an Application of the Qualitative Method .............. 6 1.2.2. Description of the Field ........................................................................ 7 1.3. Plan of the Study ........................................................................................ 11 2. THE THEORY AND PRACTICE OF NEOLIBERAL TRANSFORMATION…….……..………….....…….…….….….….………….….14 2.1. Introduction ................................................................................................ 14 2.2. Understanding Neoliberalism .................................................................... 14 2.2.1. Definition of Neoliberalism ................................................................ 14 2.2.2. Historical Background ........................................................................ 15 2.2.3. The Theory and Main Assumptions of Neoliberalism ........................ 19 2.2.4. Neoliberal Policies .............................................................................
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