Neither exit nor voice : loyalty as a survival strategy for the Uzbeks in Kazakhstan

The June 2010 conflict between the Kyrgyz and Uzbek communities in southern Kyrgyzstan once again demonstrated the complexity of the ethnic question in Central Asia. Little is known, however, about the Uzbeks in Kazakhstan, whose settlements are concentrated in the south of the republic, in areas adjacent to Uzbekistan. What problems did the Kazakhstani Uzbeks face after the collapse of the Soviet Union and how did they seek to address these issues? This paper examines the attempts of Uzbek leaders to secure their share of power in their compact settlements and how they were co-opted or marginalized under the Nazarbaev administration. This paper shows that loyalty to the regime, not migration to the ethnic homeland or political mobilization, is an option available, and also preferable, for this ethnic minority in Kazakhstan.

Bank restructuring and financial institution reform in Indonesia

The banking sector underwent drastic reform in post-crisis Indonesia. Bank restructuring, driven by IMF conditionalities, resulted in the exit of insolvent banks and ownership changes of major private banks. Through recapitalization and sales of government-held shares, foreign-owned banks emerged as leading actors in the place of business-group-affiliated banks. As part of the restructuring process, an exit rule was created. The central bank, which up to that time had been given only partial authority under the jurisdiction of the Minister of Finance, now gained a full range of authority over banks. The central bank's supervision system on banks, risk management systems at individual banks, and their efforts to build risk management capacities, began to function. This is totally different from the old financial institution under the Soeharto regime, where banks had no incentive to control risks, as the regime tacitly ensured their survival.