Marat Djanbaev Ph.D. student in Public and Social Policy Faculty of Social Sciences, Charles University in Prague

1. Marat Djanbaev Ph.D. student in Public and Social Policy Faculty of Social Sciences, Charles University in Prague Theory of Corporatism in terms of institutional interrelations between the Government and business; case of Kyrgyzstan(part of dissertation proposal)

2. 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 CONTENT

3. 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 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

4. 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 Problem Statement

5. Research questions . • What are the main approaches and trends in researching • interrelations among three pointed parts: • 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?

6. 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

7. Main characteristics of Corporatism (Schmitter and Lehmbruch) 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

8. Conditions for Corporatism (Schmitter and Lehmbruch) 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

9. 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

10. 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

11. 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)

12. Legislative framework of business - associations 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

13. Number and regional proportion of business – associations in Kyrgyzstan Types of business – associations

14. Structure of revenue sources1) 84,6% - membership fees2) 34,6% - sponsorship aid from international and local donors3) 11,5% - income from project implementation4) 11,5% - direct income from services to members and non-members “Survey of business – associations in Kyrgyzstan” Center for Training and Consulting. Bishkek 2006

15. 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

16. 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.

17. Bibliography 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

18. Thank you for attention and look forward to hearing your feedbacks !!!