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Low‐income transitional countries in the region of the Caucasus and Central Asia lack the existence of a solid assessment of public perceptions regarding the causes of poverty during transition. The purpose of this paper is to fill that gap in the existing literature.

This paper uses the secondary analysis of a recent cross‐sectional multinational survey to shed light on public beliefs of the causes of poverty in seven countries of the region – Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. In addition, Russia and Ukraine are used as a comparison point. The theoretical framework for this study is that the subjective beliefs regarding the explanations of poverty can be classified into three broad groups: individualistic, fatalistic, and structural. Hence, regression coefficients and marginal effects of the multinomial logit regression model (MNLM) are estimated to associate the set of various individual, households, and community characteristics selected in the conceptual framework with the likelihood of choosing one of the three afore‐mentioned explanations of poverty.

The results of cross‐tabulation reveal that in a majority of the countries studied, the predominant explanation for poverty is structural, with the exception of Tajikistan and Uzbekistan, where predominant explanations are, respectively, fatalistic and individualistic. The results of MNLM show that most individual, household, and community characteristics possess the expected direction and are in line with previous findings. However, some of the characteristics have a similar significant effect across several countries, while other characteristics are significant for a single country only.

These findings demonstrate that despite the dominant post‐socialist ideology which favors individualistic and fatalistic explanations of poverty based on the economic rationality of market capitalism, the efforts of the elites in promoting and imposing these ideologies has not been fully successful. Nevertheless, no single unified model of the determinants of beliefs regarding the causes of poverty in the countries of the region is observed.

This is one of the very few papers aimed at assessing public perceptions regarding the causes of poverty in transitional countries of the Caucasus and Central Asia.

This chapter analyzes and discusses the food insecurity and malnutrition situation in Europe and Central Asia (ECA), with a strong focus on the Caucasus and Central Asian countries.

Authors use descriptive statistics to examine macro-level, sectoral-level, and household-level data from national and international sources to review production, trade, and consumption of food and agricultural products in the selected countries. Overall trends in economic growth and poverty reduction, constraints and bottlenecks in agricultural productivity growth, as well as policies that shape food security in the ECA region are analyzed.

While the countries that constitute the focus of this chapter have shown significant progress in alleviating food insecurity and extreme poverty, many risk factors remain, such as inadequate micronutrient intake, sub-optimal quality diets, growing obesity rates, and high dependence on food imports in a number of the ECA countries.

Based on the assessment of the food security situation in the ECA countries, the authors discuss government actions, including those emanating from various global initiatives, being implemented to reduce food insecurity and malnutrition.

This paper attempts to fill the knowledge gap in the area of foreign direct investment (FDI) research in the regions of Caucasus and Central Asia. Various dimensions of FDI were analyzed from a comparative perspective drawing on a number of selected case studies of inward investors in Georgia and Kyrgyz Republic. The results indicated that the FDI activity in Georgia and Kyrgyz Republic was a market‐seeking type focusing heavily on location‐specific attractions of the two countries. Although the issue of corruption affects foreign investors, it does not act as a major deterrent of FDI infl ows. The most serious problem influencing the performance of FDI firms was found to be inefficiency of local labor force, excessive bureaucracy and red tape, and differences inherent in the business practices of host countries. In general, however, it was found that foreign investors have been satisfied with their performance largely due to the relatively smooth competition and the availability of several market niches in both host country markets.

The purpose of this paper is to analyze the political effects of microcredit. The author provides the theoretical connections between microfinance and political empowerment and tests them in the context of Central Asia and the Caucasus, a region that is significantly lagging in political development and yet has a growing microfinance potential.

The author conducted a total of 100 in-depth interviews with microcredit clients in Kazakhstan and Azerbaijan in June 2010 and January 2011, respectively. The author chose my client samples randomly from two of the largest non-governmental microfinance institutions in these countries.

The findings of the survey reveal that microloans have only led to modest improvements in the socioeconomic status of the clients and had almost no effect on their political empowerment. Disaggregating the data further in terms of gender, type of loan and location of credit does not change the overall trends but reveals that to the extent that any political empowerment took place, group clients (mostly women) in urban settings were more aware and involved in political issues than individual clients in the villages.

Even with a carefully thought-out design, it is not clear how much the responses reflect the true and complicated impact of microfinance on the clients’ lives, a challenge that may be overcome in future research with focus group analysis or an ethnographic analysis of microcredit clients over a long period of time.

Notwithstanding these shortcomings, these observations can help inform microfinance institutions, donor organizations and governments about the true potential of microfinance. A realization of the limits of this unique development tool may prove useful in reorienting the goals of foreign aid and designing a more effective approach to development.

Despite the extensive literature on the economic and social effects of microcredit, very little attention has been given to how economic empowerment generated by microcredit can translate into political empowerment at the individual level. This paper lays out the theoretical reasons for why such a relationship might exist and tests these hypotheses systematically in two countries, taking into account gender, type of loan instrument and location of the loan.

This section focuses on Azerbaijan, Kazakhstan, Kyrgyzstan and Türkiye where knowledge on children and youth has been misconstrued as homogenous and ahistorical. To address this epistemic gap, authors explore the social, cultural and economic experiences of children and youth, their expectations, aspirations and risks under the premise that the region's imperial history, participation in the Soviet Union and postindependence transition, and postimperial present account for and produce social and historical continuities which persist and make for differently experienced childhood, adolescence and youth. Chapters in this section emphasize diverse and creative ways in which young citizens living in Central Asia and Caucasus (CAC) countries engage in negotiating, collaborating, adapting and confronting challenges and barriers presented by the rapidly changing social realities shaped by global labor market transformation, growing economic inequalities and advanced communication systems. This analysis is done from the standpoint of those on whose behalf research is conducted – the youth and children themselves.