ABSTRACT
Contents 4.1 Introduction .......................................................................................... 52 4.2 Overview of the Bazaars and Entrepreneurs .......................................... 53 4.3 Relationship between the Formal Institutions and the
Entrepreneurs ................................................................................. 55 4.4 Relationships between the Informal Institutions
and the Entrepreneurs ..........................................................................62 4.5 Conclusion ............................................................................................66 References ......................................................................................................68
4.1 Introduction ‹e objective of this chapter is to analyze and compare the relationship between the formal and informal institutions and entrepreneurships in Azerbaijan, Uzbekistan, and Turkmenistan by focusing on one of the main trade centers of each country to better understand their e‚ects on the market building processes. Entrepreneurship takes a variety of di‚erent forms and enterprises and uses di‚erent strategies in di‚erent countries, re«ecting the characteristics of the external environment for private enterprise (Welter et al., 2004). Since they gained independence, all three governments have chosen very di‚erent economic and political development models. Due to large Western oil investment and more open policies, Azerbaijan is more integrated with the market economy compared to Uzbekistan and Turkmenistan. In Uzbekistan and Turkmenistan, former communist leaders consolidated political and economic power in a neoSoviet style by curbing the operations of Western institutions and reasserting the single leader and party control in the economy and governance (Ozcan, 2006). Turkmenistan, which possesses natural resources comparable to Azerbaijan, remained extremely isolated from the outside world due to its protective policies. Uzbekistan, with the largest population in Central Asia, is still struggling with its market economy integration (Pomfret, 2006).
