Trans-Territorial Energy Networks in Georgia, 1993-2003

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Trans-Territorial Energy Networks in Georgia, 1993-2003 LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE State Weakness in Perspective: Trans-territorial Energy Networks in Georgia, 1993-2003 Stacy Renee Closson A thesis submitted for the degree of Doctor of Philosophy in International Relations 2007 UMI Number: U226529 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U226529 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 M Library British Library of Political aod .Economic Spence ______ AUTHOR DECLARATION I certify that all material in this thesis which is not my own work has been identified and that no material has previously been submitted and approved for the award of a degree by this or any other University. Stacy Renee Closson The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. This thesis may not be reproduced without prior consent of the author. I warrant that this authorisation does not, to the best of my belief, infringe the rights of any third party. I understand that in the event of my thesis not being approved by the examiners, this declaration will become void. 2 Abstract This thesis is concerned with the persistent weakness of the post-Soviet states and it examines the implications of state weakness for inter-state relations. Applying concepts from the trans-national and globalisation literatures, this thesis determines that it is in the synergy between global and local forces, state and non-state actors, and informal and formal economies where the dynamics affecting the post-Soviet state are located. The weak state is reconceptualised as an arena for the operations of stakeholders locked in a struggle for resources. The principles of network analysis are used to develop a political network model of socio-economic relations in a weak state. The network model is used to assess the role and implications of the trans-territorial networks operating in Georgia’s energy sector. Numerous examples illustrate how the monopolisation of transactions by networks was a major contributing factor in the decline of Georgia, deterring it from engaging in collaborative arrangements to rectify weakness. The decline of the state occurred despite the fact that Georgia’s geo-strategic location along a lucrative hydrocarbon transit corridor meant that it received significant levels of foreign assistance and investment. Empirically, the network model offers a different analytical lens, through which it is clear that a weak state’s inter-state relations are best viewed within the dynamics of trans-territorial networks. Theoretically, the reordering of state-societal relations within the networks, as well as the interdependence of these networks with external actors, exposes a complex web of relations that disperses authority and legitimacy across a spectrum of entities. While not contesting the juridical sovereignty of a state, this thesis argues that a weak state’s domestic sovereignty is neither a given ontological entity, nor is it located within the traditional polis, but it is rather simulated by various stakeholders traversing the state. 3 Acknowledgements I would like to thank first and foremost my parents and sister who supported me throughout the process and to whom I am eternally grateful. This thesis is due in great part to the guidance and support from my supervisor, Professor Margot M. Light. I am also thankful for the critical insights of the members of my research panel, in particular Lord William Wallace. I was assisted financially with awards from the London School of Economics and two field research grants from the University of London Central Research Fund. Thank you also to Conciliation Resources who funded a three week course in Abkhazia and to Carnegie Moscow who offered me an invaluable research experience. I wish to thank those who provided critical feedback on versions of the thesis - Mark Hoffman, Dr. Kimberly Hutchings, Professor Barry Buzan, Dr. Jonathon Wheatley, Dr. Roy Allison, Dr. John Heathershaw, Dr. Gwen Sasse, Dr. Christoph Stefes, Dr. Bill Vlcek, Dr. Miriam Allam, Dr. Jonathan Kulick, Dr. Vesna Bojicic-Dzelilovic, Maks Kobonbaev, and Daniel Lambach. Thank you also to the PhD students at the LSE and St. Anthony’s Oxford for comments during our workshops. Thank you as well to peers in the Department of International Relations. In particular, I will remember fondly the crew of PhD students who worked out of the research rooms over the years - Miriam, Monika, Anika, Se Hyun, Patrick, Jafri, Kenny, and Tsetop. A special thanks to my technical advisor Bill. And then there are my two best mates from first year - Eva and Xana - who always picked me up when I fell. This thesis would not have been possible without the kindness of the people living in Georgia. I can not begin to list here all of those who have opened their homes and shared their knowledge. This thesis was written about Georgia and not another post- Soviet state for one reason - only the citizens of Georgia have been so prolific in their investigative research, and so willing to share this information with outsiders. I am particularly grateful to the shelter and guidance provided to me by the staff and students at the Georgia Foundation for Strategic and International Studies in Tbilisi, led by Alex Rondeli and Temuri Yakobashvili. Eka Metreveli patiently steered me towards the realities of my research. Thank you also to Marina Karchava at the European School of Management for organising my second visit. To special friends whom I met during my first research trip - Eka, Lika, Maka, and Nini - and to megobrebs online, thanks. To the unforgettable Zaaliko Kikodze, may he rest in peace. Finally, thank you to the residents of Abkhazia and South Ossetia who shared with me their experiences and daily realities. The Georgians have a saying: ‘A guest is a gift from God.’ I certainly felt welcome in Georgia, and it changed my perspective on many things, including myself. I dedicate this thesis to the future of a thriving Georgia and to a peaceful South Caucasus region. SRC 4 Table of Contents A bstract...............................................................................................................................3 Acknowledgements ............................................................................................................4 Table of Contents ...............................................................................................................5 List of Tables ...................................................................................................................... 8 List of Figures .................................................................................................................... 8 List of Maps ........................................................................................................................ 8 Acronyms and Abbreviations ..........................................................................................9 Map of the South Caucasus ...........................................................................................12 Map of Georgia’s Major Cities and Town ..................................................................13 Chapter 1: Introduction ................................................................................................ 14 1.1 Introduction ............................................................................................................14 1.2 Rationale and Argument ....................................................................................... 20 1.3 Literature and its Limitations ............................................................................... 23 1.3.1 Reasons for Georgia’s Weakness ................................................................ 23 1.3.2 Transition Literature on Networks .............................................................. 26 1.4 Theoretical Perspectives and Framework ............................................................ 30 1.5 Methodological Approach .................................................................................... 33 1.6 Structure of the Thesis ...........................................................................................37 Chapter 2: The Weak State in International Relations ......................................... 39 2.1 Introduction ............................................................................................................39 2.2 The State in International Relations .....................................................................39 2.2.1 Defining the State ...........................................................................................40 2.2.2 Problematic Sovereignty ................................................................................ 41 2.2.3 Post-Modern Stateness .................................................................................. 44 2.3 The Weak State in Theory ...................................................................................
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