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Background and Overview
Eurasia is a vast region covering 11 time zones and comprises
countries as culturally varied as Kyrgyzstan and Belarus.
Amidst this disparity, many countries in the region
face a similar challenge, namely, the transition to
capitalism and democracy following the collapse of authoritarian
regimes.
Over the past few years, high energy prices brought
economic stability and growth to the resource-dependent
states of Eurasia, but at a high cost to democratic
and economic freedom. In Russia, Vladimir Putin has
been leading a regional trend away from democracy and
market liberalization and toward a model of state capitalism
and managed democracy. While the Yukos affair has highlighted
the tenuous nature of private property in Russia, it
is the small businesspeople throughout Russia’s
regions who are most affected by the changing operating
environment for business. Local businesspeople still
face stifling regulation, corruption, and threats to
their property. CIPE and its partners throughout Russia
have begun to develop new models for public-private
cooperation that identify barriers to growth, improve
governance, and cooperate to lower business barriers.
In doing so, they are forging new relationships between
government and the private sector that are creating
the basis for sustained democratic development.
Reform is progressing in Ukraine, where civil society
empowerment brought to power a reformist president,
Viktor Yushchenko, following peaceful protests over
fraudulent election results. CIPE and its partners plan
to work with the new administration to achieve concrete
results in strengthening governance mechanisms and improving
the environment for doing business.
In Belarus, a state that can be called the epitome of
post-Soviet authoritarianism, the keys to reform lie
in the ability of the private sector to work with local
leadership to create a hospitable environment for independent
economic activity. However, the private sector in Belarus
must unite to lead civil society and to withstand continued
government attacks on economic and political freedoms.
While authoritarian leaders continue to inhibit sustained
economic growth, several Central Asian and Caucasian
countries have showed signs of change. Krygyzstan is
embarking on a new path following the ouster of Askar
Akaev, the results of which are still uncertain. Kazakhstan
and Georgia remain at the brighter end of the scale,
proving that change and reform is possible through differing
processes. Kazakhstan’s private sector is gaining
political power and influence; through groups such as
the Almaty Association of Entrepreneurs, pro-business
policy is being forged in a transparent and public fashion.
In Georgia, the political and economic opening forged
by the Rose Revolution is providing the country a new
opportunity to effect democratic and economic reform.
The Saakashvili administration has undertaken a number
of important initiatives, such as anti-corruption reform,
but it is uncertain whether this will lead to a consolidated
democratic and market-based system.
CIPE’s overarching strategy for Eurasia focuses on building
the capacity of business organizations, facilitating
anti-corruption reform and advocacy efforts, and fostering
broader public understanding and support for market-oriented
reforms and their link to democratic society.
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