The Impact of Globalization on Eurasian Economies: Prospects for Development in the 21st Century

The post-Soviet transformation of Eurasian economies over the past two decades has taken place within the context of the globalization process that has affected many countries around the world. Globalization of capital and transformation of these countries in a market-oriented direction through privatization and joint-ventures with foreign capital has had varied effects in growth and development of Eurasian economies. These developments have taken place at various rates and at varying speeds, depending on the country, especially when one contrasts those in Central Asia with other countries in more developed regions of Eurasia, such as Turkey. In Turkey, a hybrid model of development has evolved over several decades -- one that is built on a strong economic base inherited from the past, where heavy state intervention in the economy has led to the development of a viable industrial infrastructure upon which private capital has expanded and benefited immensely. Thus, the Turkish economy can serve as a model for other Eurasian economies that lack the necessary industrial and financial base, but are able to address the region’s economic problems through a partnership with Turkey. Although a common characteristic of Eurasian economies is the adoption of neoliberal economic policies and integration into the global economy, which often has a negative impact on national economies, a careful approach in engaging with the global economy with heavy state support to guide through the process (as in China) could result in a positive outcome that fosters growth and development of the Eurasian region in the twenty-first century.