The failed promise of foreign direct investment: some remarks on ‘malign’ investment and political instability in former Soviet states

The policy of key international organisation continues to be informed by the assumption that Foreign Direct Investment (FDI) has an unambiguously positive effect on recipient nations. However, there is increasing evidence that, on a global scale, increased trade and investment flows from rich to poorer nations have not contributed to a convergence of levels of income and well-being. This is particularly apparent in the context of former Soviet states, many of which continue to experience a decline, in both relative and absolute terms, in per capita GDP alongside a diminution in the life expectancy of their populations. Examining data on FDI received by former Soviet States from 1997 to 2005, this paper notes, firstly, that these investments have been concentrated on a few, typical natural-resource-rich states. Secondly, it observes that even these resource-rich countries experienced massive fluctuations in terms of the amounts of FDI they received over this time period. Lastly, the paper examines the impact of FDI on a number of country risk indicators via a pooled regression model which includes data for twelve former Soviet countries, namely the Central and Eastern European States of Belarus, Moldova, Russia, and Ukraine, and the Central Asian Republics of Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. This analysis indicates that FDI has either a marginally negative effect on individual country risk measures such as in the case of ‘Overall Country Risk’, or significantly negative effects as in the case of ‘Economic Risk’ and ‘Legal Risk’. The paper concludes that there is strong case for questioning the existing orthodoxy which argues that problems of transition can be overcome via increased FDI and which continues to advise former Soviet states to pursue foreign capital at all cost

Challenges and potential of monotowns: a systematic literature review

Relevance. Monotowns, or single-industry settlements, are pivotal in the economic and social landscapes of former Soviet countries. This systematic literature review explores monotowns, examining their evolution, challenges and implications of these unique urban formations from the 18th century to the present day. The study’s relevance lies in its comprehensive analysis of these towns, which have been significant yet underexplored in academic discourse.Research objective. The objective of this review is to critically examine the multifaceted nature of monotowns, focusing on their socio-economic dynamics, challenges, and potential transformation. The review aims to elucidate the complex interplay of economic, social, and political factors that shape these towns and to identify unexplored areas in this field of study.Data and Methods. To achieve these objectives, the study employs a systematic review protocol comprising four phases: search query, document type, publication stage, and language. This approach involves analyzing a wide range of sources from international and regional databases, ensuring a holistic view of monotowns that captures both historical and contemporary perspectives.Results. Monotowns exhibit considerable resilience amidst economic fluctuations and confront distinct socio-economic challenges, including issues specific to mining monotowns and issues related to public health. The findings underscore the importance of adaptive strategies, corporate social responsibility, and proactive government intervention in addressing these challenges.Conclusion. This review provides a comprehensive exploration of monotowns, contributing valuable insights for future research, particularly in understanding their socio-economic dynamics and the challenges they face. The study is significant for scholars in economic development of the territories and business studies, offering a foundation for further exploration of these unique urban formations

The failed promise of foreign direct investment: some remarks on ‘malign’ investment and political instability in former Soviet states

The policy of key international organisation continues to be informed by the assumption that Foreign Direct Investment (FDI) has an unambiguously positive effect on recipient nations. However, there is increasing evidence that, on a global scale, increased trade and investment flows from rich to poorer nations have not contributed to a convergence of levels of income and well-being. This is particularly apparent in the context of former Soviet states, many of which continue to experience a decline, in both relative and absolute terms, in per capita GDP alongside a diminution in the life expectancy of their populations. Examining data on FDI received by former Soviet States from 1997 to 2005, this paper notes, firstly, that these investments have been concentrated on a few, typical natural-resource-rich states. Secondly, it observes that even these resource-rich countries experienced massive fluctuations in terms of the amounts of FDI they received over this time period. Lastly, the paper examines the impact of FDI on a number of country risk indicators via a pooled regression model which includes data for twelve former Soviet countries, namely the Central and Eastern European States of Belarus, Moldova, Russia, and Ukraine, and the Central Asian Republics of Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. This analysis indicates that FDI has either a marginally negative effect on individual country risk measures such as in the case of ‘Overall Country Risk’, or significantly negative effects as in the case of ‘Economic Risk’ and ‘Legal Risk’. The paper concludes that there is strong case for questioning the existing orthodoxy which argues that problems of transition can be overcome via increased FDI and which continues to advise former Soviet states to pursue foreign capital at all cost.

A Critical Examination of the Multinational Companies Anti-corruption Policy in Nigeria

In contemporary enterprise and organisational culture, many companies are increasingly willing to increase their profits and to gain competitive advantages through indulgence in bribery, corruption, money laundering and other anti-social practices that shows little regard for social obligations and even laws. Companies cemented their social relations by claims of socially responsible and of ethical conduct, but the evidence in practice proves otherwise. The bourgeoning corporate social responsibility literature rarely examines predatory practices of MNCs even though the practices affect a variety of stakeholders. This paper draws attention to the gaps between corporate anti-corruption policy and acts. The paper used publicly available evidence to provide case studies to show that companies engaged in bribery, corruption and money laundering as against their claims of responsible social conduct. The paper argued that MNCs have used the political elite in developing countries to seek to advance their global earnings and competitive advantages by offering bribes and other inducements to secure government contracts in Nigeria. It also encourages reflections on endemic corrupt practices and offers some suggestions for reform

Economic Relations between the EU and CIS (An Overview)

The purpose of this paper is to examine the economic aspects of EU policy towards its Eastern neighbors in the former Soviet Union. For a long period of time, this region was considered as less important for the EU, as compared to Central and Eastern Europe, which was the subject of a far-reaching economic and political integration offer materialized in two rounds of EU Eastern Enlargements (2004, 2007). However, moving the EU's geographical frontier further to the East and Southeast increased the importance of the CIS region as a potential partner of the enlarged EU. In 2004, East European and Caucasus countries were invited to participate in the European Neighborhood Policy a new EU external policy framework also addressed to the Southern Mediterranean countries. Russia has been attempting to build a strategic political and economic partnership with the EU outside the ENP framework but the content of this relationship is, in fact, very similar to the ENP. A general weakness of the ENP is that there is a lack of balance between farreaching expectations with respect to neighbors' policies and reforms, and limited and distant rewards that can potentially be offered. Thus, making this cooperation framework more effective requires a serious enhancement of the rewards using, to the extent possible, the positive experience of previous EU enlargements. The nature of contemporary economic relations in the globalized world calls for a more complex package-type approach to economic integration rather than just limiting cooperation to some narrow fields.EU-CIS relations, EU-Russia relations, EU and Central Asia, European Neighborhood Policy, Partnership and Cooperation Agreement, Wider Europe

A gender perspective on entrepreneurial leadership:female leaders in Kazakhstan

The paper proposes a conceptual model to understand female entrepreneurial leadership through an exploration of the perceptions and experiences of women entrepreneurs within their leadership roles. The paper addresses an existing knowledge gap on entrepreneurial leadership by bringing together three key constructs of gender, leadership and entrepreneurship. We apply Stewart's model of role demands-constraints-choices (DCC) to women entrepreneurs in Kazakhstan in order to understand their perceptions of the demands, constraints and choices they experience within their leadership roles. The results of in-depth interviews with women entrepreneurs present deeper conceptualization of their leadership enactment as a co-developing, co-constructed relational activity between leaders and others in their wider business environments and context