Informal payments and connections in post-Soviet Kazakhstan

What is it about?

In Soviet times, useful contacts had more value than money, and getting things done through unofficial channels of personal relations was a socially accepted norm. What changes have market reforms brought to Kazakhstan in these areas? This article details the use of informal payments and connections in Almaty and examines why non-monetary exchange of favours is increasingly being replaced by the immediate exchange of cash for assistance. This article argues that urban residents are becoming more inclined to quickly return a favour through cash and evade the lengthy exchanges involved in building reciprocal relationships, a practice widely accepted during Soviet times. This article also focuses on the importance of personal contacts in monetized exchange and demonstrates that cash payment is not a least preferred strategy for those who lack necessary networks. Urban residents in Kazakhstan in fact actively mobilize their personal networks to effectively and securely exchange monetary rewards.

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