Transcript Slide 1

Theory of Corporatism in terms of institutional
interrelations between the Government and business;
case of Kyrgyzstan
(part of dissertation proposal)
Marat Djanbaev
Ph.D. student in Public and Social Policy
Faculty of Social Sciences, Charles University in Prague
CONTENT
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Goal and objectives of the research
Problem Statement
Research questions
Theory of Corporatism as a theoretical
dimension of the research
Theory of Corporatism in practice;
international experience
Case of Kyrgyzstan: developing institutional
interrelations between the Government and
business since 1991
Conclusion
Bibliography
Goal and objectives of the research
Main goal – working out and proposing models of
effective interrelations among the Government,
business and civil society for prospective
implementation in Kyrgyzstan
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Objectives
Elaborating theoretical background of the research
through identifying relevant dimension to institutional
interrelations among the Government, business and
civic sector in Kyrgyzstan
Profound research and comparative analysis of
international experience in developing institutional
interrelations between public and private sector
Choosing and focusing on “Business and investment
environment reforms in Kyrgyzstan” as definite issue
within my dissertation proposal
Problem Statement
Transition from old communist regime and system
to democratic changes and free market economy in
Kyrgyzstan requires constant learning and
challenging new values brought from Western
society. One of them, demanding accountability and
transparence of the Government and decision –
makers through institutional interrelations among
the state, business and civic sector. In that regard,
Continental Europe proposes “Corporatism” as an
effective and institutional tool for involving business
and civic sector in policy – making and policy –
implementation processes. Corporatism might be
real option to existing pluralism concept in
Kyrgyzstan taught by international organizations
from the USA
Research questions
• What are the main approaches and trends in researching
interrelations
among three pointed parts:
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the state, business and civil society in social sciences?
• What are the preconditions for emerging efficient
interactions between public and private sectors?
• What is theoretical dimension for institutional interrelations
between public and private sectors?
• What is distinctive feature of Kyrgyzstan in implementing
successful models of institutional interrelations; political,
cultural and legislative backgrounds?
Theory of Corporatism (Neo - Corporatism) as a
theoretical dimension of the research
Definitions of Corporatism:
1. “Corporatist theory and practice blur the boundary
between state and society as the state shares authority
with private interest associations, using the latter as
agents of public policy by coordinating their behavior or
delegating public functions and decisions to them”
Wolfgang Streeck, Lane Kenworthy
2. “Corporatism is not just a form that relations between interest
groups, or between interest groups and the state, may take,
but a system of government which rejects and supplants
representation based on geographic units or units of
approximately equal numbers of voters”
Philippe C Schmitter
Main characteristics of Corporatism (Schmitter and
Lehmbruch)
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Interest organizations are strongly co – opted into
governmental decision – making (as measured by
representation in advisory committees, consultations
and other appropriate indicators)
Large interest organizations (labor unions) are strongly
linked to political parties and take part in policy
formation in a sort of functional division of labour
Most interest organizations are hierarchically
structured, and membership tends to be compulsory
Occupational categories are represented by non –
competitive organizations enjoying a monopoly
Industrial relations are characterized by strong
'concertation' of labour unions and employers'
organizations with government
Conditions for Corporatism (Schmitter and Lehmbruch)
1. Presence of one interest group, or a at least a closely
integrated coalition of interest groups, in each major
social category, such as labour, employers, agriculture,
etc
2. These organizations should be widely accepted as
speaking for people in that category and should be able
to make commitments that will be binding on them
3. All major decisions would be made by the government
only after close consultation with major economic
interests, or possibly after securing their agreement
Conditions for Corporatism (Schmitter and Lehmbruch)
4. The behaviour of not only government but at least some
of the major interests should be altered, constrained or
controlled by the allegedly corporatist system
5. A claim that a supposedly liberally democratic regime
has become corporatist should be substantiated by
proof that the corporatist channel matters more to
decision – makers than pressures from parties, voters
or legislators
6. Corporatist system are not laissez – faire systems; on
the contrary, they are systems in which governments
play an active part not only in the macroeconomic
management of the economy, but in microeconomic
policies affecting individual regions, industries, wage
rates and prices
Theory of Corporatism in practice; international
experience
European model
Corporatism based on strong labour unions or united
professional associations (Agricultural Association) that
perform bargaining with the Government through tripartite
commissions, social and economic councils under the
Government and different types of social partnership
Japanese model or “Paternalistic system”
Social class and/or labour unions are more silent than its
counterparts in Europe and corporatism is defined in
Japan
as institutional interactions between the Government and
big bosses of business
Case of Kyrgyzstan: developing institutional interrelations
between the Government and business since 1991
• 1991 – 1997 – existing of trade unions as a heritage of
Soviet system hence exploiting them as “decoration”
by the Government
• 1997 – 2001 – developing of first professional
associations and Trade – Industrial Chamber
• 2001 – 2007 – emerging of non – profit business –
associations in different social categories and
business spheres (International Business Council,
Bishkek Business Club, Union of Entrepreneurs)
• 2007 – to date – developing of the first informal and
united coalitions among business – associations
(National Alliance of Business Associations, Coalition
for Fair Taxation)
Legislative framework of business - associations
1. Civic Code of the Kyrgyz Republic. Part 1, art. 165
2. Law of the Kyrgyz Republic on “Non – Commercial
Organizations” # 111, 15.10.99
3. Law of the Kyrgyz Republic on “Public Associations”
4. Law of the Kyrgyz Republic on Trade – Industrial
Chamber
Number and regional proportion of business – associations
in Kyrgyzstan
Types of business – associations
Structure of revenue sources
1) 84,6% - membership fees
2) 34,6% - sponsorship aid from international and local donors
3) 11,5% - income from project implementation
4) 11,5% - direct income from services to members and nonmembers
“Survey of business – associations in Kyrgyzstan” Center for Training
and Consulting. Bishkek 2006
Development of institutional interactions with the
Government
• Investment Council under the President of the Kyrgyz
Republic (members: President and Prime – Minister,
leading business – associations and deputies of the
Parliament)
• Advisory Council under Ministry of Economic
Development and Trade of the Kyrgyz Republic
(members: Minister and leading two business –
associations )
• Annual Council of Confederation of employers,
employees and the Government
• Public Council under State Committee on Tax and
Custom
• Public Council under the General Prosecutor
Conclusion
• Theory of Corporatism is not well - known to
Kyrgyzstani scholars and private sector
Pros
• Last tendencies in relationship between the
Government and business have shown the fact that
leading business – associations in Kyrgyzstan united
into informal Alliance which would serve as “One Voice
of Business”
• The Government proposes centralized and
responsible public – private partnership with
compulsory membership
Cons
• Trade unions and labour movements are not well
developed as business – associations in Kyrgyzstan.
Bibliography
1. Theories and Practices of Neo – Corporatism.
Wolfgang Streeck, Lane Kenworthy. A handbook of
Political Sociology: States, Civil Societies and
Globalization, New – York: Cambridge University
Press, 2003
2. Patterns of Corporatist Policy – Making. Gerhard
Lehmbruch and Philippe C Schmitter. SAGE
Publications 1982
3. “Survey of business – associations in Kyrgyzstan”
Center for Training and Consulting. Bishkek 2006
4. Not only the market. Potůček, M. Central European
University Press. 1999
5. Politics and Markets. Lindblom, Ch.E. New York:
Basic Books. 1977
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