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1 On transition theories Part I Modernisation & Path dependency http://yle.fi/elavaarkisto/artikkelit/kolhoosi_ita- siperiassa_29627.html#media=29630 Leo Granberg http://blogs.helsinki.fi/lgranber/ Concepts and teories in transition studies 1.Modernisation 2.Path dependency 3.Moral Economy 4.Networks and Social Capital

On transition theories...2 Misunderstanding Transition: society is moving from one stage/system to another Transformation: society is moving from one stage/system but we do not know

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Page 1: On transition theories...2 Misunderstanding Transition: society is moving from one stage/system to another Transformation: society is moving from one stage/system but we do not know

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On transition theories Part I

Modernisation & Path dependency http://yle.fi/elavaarkisto/artikkelit/kolhoosi_ita-

siperiassa_29627.html#media=29630

Leo Granberg

http://blogs.helsinki.fi/lgranber/

Concepts and teories in transition studies

1.Modernisation

2.Path dependency

3.Moral Economy

4.Networks and Social

Capital

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Misunderstanding

Transition: society is moving from one stage/system to another

Transformation: society is moving from one stage/system but we do not know the direction

Transition theories: theories trying to explain social changes taken place in post-socialist countries after system change.

A basic question in the countryside

Why large-scale farms survived in post-socialist countries?

Some alternative answers: They have monopoly position

Farm owners and workers make resistance on market economy (Barnes)

Farm workers’ rational action (Wegren)

Corporate farms and plot farmers have relationship of symbiotic inter-dependence (Alanen)

Alanen: Western advicers of Russian reform is partial and does not understand the structure of Russian agriculture nor principles of action there.

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Starting points of transition studies

Modernisation

The future is already known

Capitalist market society

Political democracy

Path-Dependency

The past is known

Institutional frame from the past is limiting the posibilities

for change in the present. (Douglas North)

1. Modernisation theory

Domaining paradigm in anglo-american sociology,

explaining how traditional societies move to modern

societies.

Poliitical modernisation. Key institutions, political parties,

parlaments, democracy

Partial democracy

Cultural modernisation. Kulttuurinen modernisaatio.

Maallistuminen, ideas of nationalism

Economic modernisation. Increasing division of work,

development of technology and trade

No free markets, no market mechanism

Social modernisation. Literacy. urbanisation, traditional

authority decreases.

Authority of Party leaders

Dictionary of sociology 1984, by Abercromby, Hill, Tuirner.

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“De-modernisation theory”

Something specific in the social formation of post-socialist rural society (Burawoy or Miller (2000/2003) Not capitalism, nor socialism, but a variant of feudalism

For Burawoy it is neo-feudalism, for Miller it is post-socialist mixed feudal economy

Criticism of liberalism and ”western” understanding of realities of the rural transition

Key features in agriculture 1990’s: General decommodification of economy (“demonetized

economy”, decommodification of labour and land)

growth of barter and subsistence forms of agriculture

Continuation of the mutual interdependency of large-scale production and private plot farming.

The combination of care and authority

…De-modernisation theory

In-kind payments dominate the relations between the

agricultural enterprises and workers

Farm managers reallocate collective farms resources to plots and

it leads also to the redistribution of labour inputs in favour of plots

These factors contribute to an even greater weakening of the

agricultural enterprises and, ultimately, to the decline of plots.

Weakening of traditional social links, lack of mutual trust

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2. Idea of Path-dependency

Institutions are (in sociology) formed out of relatively permanent formal or informal rules, which control people’s behavior in one way or another. (marriage, market, gift) Such control can be based on formal, externally confirmed rules

(laws on serfdom) or

internalized informal rules and customs (home garden).

When society changes, it ‘takes’ moves in one direction.

The direction of moves in society is controlled by institutions, which may resist any change in the course of such moves. …

The taken moves will elicit further moves in the same direction. There are self-reinforcing mechanisms or positive feedbacks” (Kay 2003: 406).

General modernisation theory stress the attractive

power of the future

= example of leading capitalist market economies.

Path dependency.

differences between different post-socialist countries imply

that the future is not given.

The direction of a change is an effect of the present and the

past, rather than an end result (Róna-Tas 2002: 6).

This approach will turn our attention to institutions.

According to Douglas North (1990), the institutional framework

of the past limits current possibilities for institutional change

Path dependency

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4 type of institutions (Douglas North 1990)

1. Legal rules

2. Organization forms

3. Enforcement

4. Behavioral norms.

Explanations for failure of reforms:

A. Shock therapy reforms went not far enough, especially: lack of

well-defined property rights (De Soto 2000 et al.)

B. Although formal institutions (laws and regulations) have

changed, informal institutions (behavioral norms) have not

changed to the same extent.

What institutions?

“institutions are human systems that constraint or direct the political and social interaction. Informal institutions consist of social norms, manners, habits and moral values, which constraint individuals and organizations in their effort to attain certain goals” (Raiser)

Relatively stabile rules (marriage, money, gift, private ownership)

Individuals act in one of two ways:

to maximize benefits

out of duty or an awareness of what one is ‘supposed’ or ‘expected’ to do

Because of norms, values, attitudes

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Institutional aspects of Russian rural dvelopment

1. Patrimonialism and paternalist culture

And role of state: centre – periphery dominance

2. Symbiotic relation between large-scale and petty

production

3. Institutional lack in the countryside

4. Entrepreneural culture among women in Russia

Patrimonialism and paternalism

Max Weber on patrimonialism, as the form of traditional domination.

Patriarchal power is constrained by tradition. It develops administration and military force, as personal instruments of the master (Weber; here Maslowski 1996) 1. Patrimonial proper authority

2. Sultanism (authority by military force)

3. Estate-type domination

Weber’s concepts: pure types, ideal types, actual regime While pure types are static, ideal types include evolution aspect and

actual regimes may evolve towards one or another of pure types.

The emperor had direct, personal control

Patrimonialism prevented the development of rational capitalism in oriental societies

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Paternalism

is the interference of a state or an individual with

another person, against their will, and justified by a claim that the person interfered with will be better off or protected from harm. (Stanford encyclopedia of philosophy)

A) a system under which an authority undertakes to supply needs or regulate conduct of those under its control in matters affecting them as individuals as well as in their relations to authority and to each other

B) a policy or practice based on or characteristic of paternalism (Encyclopædia Britannica)

Paternalist practices

Patrimonial features seem to maintain/return into Russia inside state.

Czar, (Cesar) or Tsar - General Secretary of Communist Party ˗ President

Stalinist regime is mentioned as an example of reversion aftor 1860’s steps to other direction, again to patrimonialism (Feher, Gill et al.; here Maslovski 300-1)

Patrimonial elements after Stalin: Nomenclatura =a closed , priviledged status group

Centralisation and bureaucratization

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Paternalism exists in enterprises

Directors’ rights and obligations. Obligations to help in personal needs and to supply services

(holiday trips, medical treatment, sport clubs, heating).

Reasons for obligations are 1) tradition and 2) local administration is too weak to take care of communal services.

Personal needs: house renovation, machine leasing (tractors etc.) for workers, assisting in marketing of products.

Communal needs: Taking care of roads, heating systems, renovation of school, building sport facilities.

1990’s crises: local municipality had no resources to supply communal needs

State farms were in bankrupt.

Enterprices had no formal responsibility on local conditions

Role of state: centre – periphery dominance

An aspect of patrimonialist heritage is strong dominance

of centre in relation to peripheries.

Different dimentions of periphery

Economic

Cultural

Political

Ecological

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Symbiotic relations

In Russia large-scale estates and private household plots were never opposites for each other. In Soviet time prosperity of state farm depended on food stuffs

produced in the household plots, which filled the lacks of food production in the large farm and gave much needed incomes for the workers of state farm.

Private households could benefit from the animals on large farm, loan machines, and utilize its market channels.

Leaving state farm and becoming independent family farm was difficult, because farmer would loose the economic support and social benefits from state farm.

2 exceptions those, who have high education and a lot of strategic

knowledge, who knew farming and markets. E.g. leading elite and experts of the farm

Persons who are marginalized from the local community.

Institutional lack

For farming the lack of

extension services in agriculture,

financial services

transportation etc

For enterprises the lack of

Financial, banking system,

Communication infrastructure

Authority’s services

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Entrepreneurial culture among women in Russia

Soviet system prioritized industrial development over

social infrastructure.

Social services were only partially integrated.

Social issues had to be dealt with in the informal sphere.

Actors were left to look for entrepreneurial solutions… this meant

that women had to be entrepreneurial in the Soviet system.

The survival of norms provides the basis for emerging

rural entrepreneurship in post-socialist Russia! (Sätre

2012)

Transition theories

PART 2

Moral economy & Network theory

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3. Moral economy

MORALITY

Describes actual codes of conduct, which society, or some group in society, defines. What is acceptable, what not (because it breaks against

’moral codes’ in society

In normative sense Refers to analyses of morality, its preconditions and

meanings

Classical concept of moral economy

E.P.Thompson (1971) ja James Scott (1976) used moral economy as ”concepts of certain group of people of relations between moral, societal practises and economy (Kauppinen, 95)

James Scott studied in premodern rural communities ‘(disguised) everyday forms of peasants resistance of marketization… weapons of the weak.

Motive of economic action was not profit but to minimize risks connected to economic well-being.

Karl Polanyi: concentrates on

1. Social and cultural embeddedness of economy.

2. How market tries to get rid of this combination

3. Social resistence connected to this process

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The moral economy thesis

Reforms fail – both socialist and market – because

they are alien to peasant society and its rationality Resistance based on supposed moral contradiction between

life worlds of peasants and that of urban rationality and

morality

Comment: the post-socialist ”peasants” no peasants, but

proletarianized wage-workers

Resistance not based on rural values but normal wage worker

values of safe and quaranteed employment, social services

and possibilities for leisure

Moral Economy, criticism (Stephen Wegren) Adaptation instead of resistance. (Wegren 2003,XII, 3-5)

“For the past 35 years, a dominant view of peasant reactions and responses to reform stimuli has been framed by the moral economy model, that argues peasants are resistant to change… The moral economy approach sees values and behaviours as “embedded” in peasant societies, and these values are therefore reflected in the nature of village institutions.” (Wegren 2003,XII, 3-5)

Commercialization of agriculture attempts to disembed peasant values and behaviours, and to displace existing village institutions with market-based institutions, thereby facilitating peasant discontent and rebellious action.(ibid.)

Wegren: “Adaptation instead of resistance. Russian rural values are not inherently antimarket and antiprivatization.” During serfdom, rebelling against landlords and serfdom, wish for liberties in

line with arising market economy

Early 20th C. Adaptation to Stolypin’s reform and free peasant farming.

Silent resistance against collectivisation

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New moral economy

Andrew Sayer (2000): ”In the moral economy the

question is about norms, dispositions and commitments,

which concern interrelations of individuals and

institutions, their mutual responsibilities and rights.

They concern questions regarding

what is just and

what constitutes good behaviour in relation to others, and

implies certain broader conceptions of the good or well-being.

It includes…ethics.

It also concerns relationships of care ignored by much

conventional moral philosophy

This wide concept of morality

”we create a space not only for assessing moral aspects

of economic practices,

economic influences on morality,

And also for the assessment of how economic

organisation affects human well-being.”

The economy should not be reduced to capitalist

economic processes, nor should the latter be reduced to

’the market’.

The ’economic’ is taken to cover all provisioning

activities,

formal, cash economy, but also

informal, particularly household economy.

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To discuss

How have moral ideas formed rural life?

Is there a new model of moral economy under

development in Russia.

To discuss

How have moral ideas formed rural life?

Family farming as ideal form of production unit

CAP?

Nordic welfare state’s legislation, subsidies and

taxation

Is there a new model of moral economy under

development in Russia?

Low-priority social sector and charity by private persons&business

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4. Social networks, and social capital

In a network Interaction is continuing

Some contacts now and then are not a network

Network must have more than 2 members

Dyad is not a network

If relation in network is to one direction only, it is not a

network

A

A B A B C D B C E

D

dyad Chain star

Trust as generalized reciprocity

A given present to someone is followed by a wish to

get a counter present from someone. Reciprocity.

To increase social capital, it is not enough that two

persons keep washing each others bags.

What is needed is a generalized reciprocity. When

trust reaches wider social sphere than one’s own

community, it becomes generalized trust, bringing

good social capital to the society.

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Community vs. network

A community:

A Social network: a social structure between actors, mostly (but not only) individuals or

organizations

It indicates the ways in which they are connected with each other

No matter, where members live and how they are related to the person at the core of the net.

Voluntary basis

Community vs. network

A community: a set of people, with a particular social structure,

often in limited geographical area, based on kinship and neighbourhood ties

and having a sense of belonging.

The community has normative force over each individual member of the community.

A Social network: a social structure between actors, mostly (but not only) individuals or

organizations

It indicates the ways in which they are connected with each other

No matter, where members live and how they are related to the person at the core of the net.

Voluntary basis

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Social capital and networks

Social network is An outcome of human action

A structure, established by people in a certain situation

It is a means and mechanism when individuals of groups of people when they try to reach some aims.

To change information, services, material things

To work well, in a network must be social trust

social capital is understood in connection of civic activity: membership or activity in voluntary organisations increase

interaction, create trust and social capital

The same may happen in other forms of social interaction (family and relatives, village community)

Social capital, definition

Social capital forms out of repeated social interactions between individuals and groups, which develop trust and social norms, and strengthen co-operation and reciprocity”

Social capital is a ’flexible’ concept:

For Bourdieu it is a resource which is used in competitions and conflicts – a source of power

For Putnam it is a form of cooperation, an indication of mutual trust and a resource for joint efforts for development

For Coleman it is not a general, but a situational resource.

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Networks in the countryside

1. Vertical networks

2. Actor-network theory (ANT)

3. Horizontal networks

4. Social networks

1) Vertical networks Agro-food sector

The commodity chains approach

2) Actor-network theory (ANT) Includes nature and technological subjects in agro-food

networks.

'actors' not only conscious beings, they (actants) comprise all sorts of autonomous material objects: statements, inscriptions (anything written), technical artifacts,

concepts, organisations, professions, money etc.

(Latour: The Pasteurization of France. 1988)

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3) Horizontal networks

Link rural spaces into other society

Local resources inherited from the past must be linked to

new economic forms in order to avoid that such resources

become stubborn obstacles

Murdoch 2000

Granovetter

4) Social networks

Social capital and trust

Bourdieau, Putnam et.al.

Socialist/post-socialist networks

Post-socialist countries require entrepreneurial culture, citizenship and discursive cultures (Sztompka 1997) Depends on informal institutions, not formal institutions such as

parties and business enterprises

The research question: the links between informal and formal institutions – the civil society

Barter trade Trade without money, based on agreements of mutual change.

General in socialism and 1990’s to survive in economic chaos

Blat Exchange, which includes change of public commodities and

services.

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Blat, in Russia

Changing public commodities and services Personal relations help to get touch in public

resources, without following formal procedures (Ledeneva 1998: economy of favours)

Stealing from private persons or from state are different things

E.g. construction worker has a rector of a school as his neighbour, and his daughter wants to that school. He builds a dacha cottage to the rector and his daughter passes the cue to the school.

Blat after socialism

Ledeneva: After socialism blat –network still in function in many places, but its meaning decreased, because

Privatization decreased the meaning of state property

Markets started to function and money became more

important means of payment

Changes in security arrangements concerning:

Solidarity and mutual arrangements between industrial

plants

Social security system

Collectives in different organisations

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. Why blat is still relevant?

Ledeneva looks only at business people

Ashwin (1998): people isolated, trying to cope somehow: growing vegetables, helping family and friends instead of working place.

Salmi, Lonkila: workplace relations have continuing importance.

Simon Clarke (2000): you need relations to get work. ”Only few groups in Russia are able to get work without personal network.”

Karelia: some sovkhozes continued as earlier after privatization Paternalist management culture

Acceptance of stealing

Role of networks in credit arrangements

Social capital and becoming private farmer?

(Allina-Pisano)

Private farming was started by those, who had exceptionally much or very little social capital.

If much enough, they could manage without informal help from local community, because They had knowledge, education and ability to find needed

contacts and help outside of the local community. (specialists and leaders of state farms)

If they were outsiders in local community, they had little to loose

Ethnic minorities

Imigrants from other regions

City dwellers

Single, middle aged persons

Persons with low status in collective farm.

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Historical background:

New orientation in social sciences1990-

1. Cultural turn

2. From communities to networks

3. From agriculture to countryside

1. from agrarian nature to different natures

2. rural development research

Behind this reorientation are changes in the countryside

(see Oksa)

(1) Cultural turn

Priority in research towards culture

Transferring aspects and method from cultural

sciences (linguistics…) to social sciences

Understanding that world is increasingly cultural

(media; consumption culture)

Reality is understood as a social construction

(Berger & Luckman [1966])

It is not so relevant to know what is sustainability but to

know, what one means with the concept ‘sustainability’

It is not so relevant to knew what is a peasant but to know,

what one means with the word ‘peasant’

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(2) From communities to networks

World is not developing according to linear models

or as a system but in networks

Local communities is not valid base, because

human is no more fixed to locality in the era of new

transport and communication technology.

(3) From agricultural to rural countryside (Jukka Oksa 2004)

Peasant countryside

Productivist countryside

Consuming

countryside Russia??

Role of rural areas

Land, food, places for living

Raw materials, labour reserve

Quality, experience, identity

The way of exclusion

Being left without land To be left outside of income distribution and reforms

Loosing connections and markets

Policy response

Land and settlement policies

Rural welfare state New rural policy, projects

Local way of action

Village, municipality Protests, interest lobbies, local services

New coalitions and networking, social innovations

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On methods of change: Social innovations

The generation and implementation of new ideas about how people should organize interpersonal activities to meet one or more common goals. (Mumford 2002)

Programs, organizational models or definite set of principles. The programs are an integrated set of actions

Organizational models are a structure to mobilize people

Resources and the principles are general guidelines and values about how to serve a specific or common purpose.

Social innovations are mainly intangible; they are not products or goods, but production and integration of new knowledge in the form of programs, principles or organizational models.

Key issues of rural development

Key question: how rural development policy can stimulate economic growth in rural regions? How to mobilise the limited local resources,

to connect the place to growing wave of development?

How to recognise the rising wave?

To understand the possibilities for the future of the place

To recognise the local resources (and weaknesses)

To develop a proposal for action programme

To motivate local actors to co-operate and contribute in joint action programme

To start and maintain a shared process of learning

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Three main approaches to rural development

1. exogenous,

2. endogenous and

3. neo-endogenous (mixed) development

How it is done

Exogenous: by importing new industries and technologies to rural areas and

offering floor-space, tax exemptions, by constructing infrastructure and by providing training for rural residents.

Endogenous: the resources and capacities existing in rural areas would solve

developmental problems, supported by regional growth centres; learning by imitating

Neo-endogenous: building a local institutional capacity able both to mobilize internal

resources and to cope with external forces acting on a region.

- Pooling of external resources, such as information, financing, markets, etc. with local resources, such as nature, identity, cultural values and skills by networking

Russian context is different to western!

Patrimonial society is not pooling with local, is it?

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Disillusionment. A community stydy in Southern Estonia

Alanen, Ilkka et.al. (ed. 2003), Mapping the Rural Problem in the Baltic Countryside. Transition Processes in the rural Areas of Estonia, Latvia and Lithuania. Ashgate.

Davies, T.W. (1980), The Soviet Collective Farm 1929-1930. The Industrialisation of Soviet Russia 2. Macmillan Press. London.

Davies, R.W. and Stephen G. Wheatcroft (2004), The Years of Hunger: Soviet Agriculture, 1931-1933. The Industrialisation of Soviet Russia 5. Palgrave Macmillan. Hampshire.

Jungner, Sune (2002), Neuvostoliitto – Supervalta. Kirkinen, Heikki, Venäjän historia..

Kauppinen, Ilkka (2008), Tiedon omistaminen on valtaa. Globalisoituvan patenttijärjestelmän poliittinen moraalitalous ja globaali kapitalismi.

Lerman, Zvi & Natalya Shagaida (2005), Land Reform and Development of Agricultural Land Markets in Russia. The Hebrew University of Jerusalem, Discussion Paper No 2.05

Maslovsky, Mikhail (1996), Max Weber’s concept of patrimonialism and the Soviet system. Sociological Review. Blackwell Publishers.

Moon, David (1999), The Russian Peasantry 1600-1930. Longman. London.

Niitemaa, Vilho, Kalervo Hovi (1991), Baltian historia

Nikula, Jouko (2004) Path-dependency Theory and Post-socialist Transition. In Raimo Blom & Jouko Nikula (eds.) Plussat ja miinukset. Tampere

North, Douglas (1997) The Contribution of the New Institutional Economics to an Understanding of the Transition Problem. WIDER Annual Lectures 1, UNU/Wider. Helsinki

O’Brien, David J., Stephen K. Wegren & Valeri v. Patsiorkovski (2004) Contemporary Rural Responses to Reform from Above. The Russian Review 63(April): 256-276

Pöder, Helvi (2001), in Alanen

Rannikko, Pertti ja Eira Varis (1994), Rural Development in Russian Karelia and Eastern Finland. Heikki Eskelinen, Jukka Oksa, Daniel Austin (eds.), Russian Karelia in Search of a New Role.,Karelian Institute University of Joensuu..

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Soto, Hernando de (2000), The mystery of Capital: Why Capitalism Triumphs in th West and Fails Everywhere Else. New York: Random house.

Sätre, Ann-Mari (2012), Gendered Experiences in Entrepreneurship, family and social activities in Russia. In Helene Carlbäck et al. And They Lived Happily Ever After. CEU Press. Budapest-New York..

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Wegren, Stephen (2005), The moral economy reconsidered. Palgrave