Designing institutions in a post-socialist transformation process

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Kyrgyzstan has experienced significant transformation in natural resource management, offering valuable insights into institutional design. This study examines Kyrgyzstan's experience in pasture use and management, aiming to enrich the discourse on institutional change in post-socialist contexts. It posits that, amid uncertainty and legal pluralism, negotiations over resource access are shaped by the interplay of formal and informal institutions. Findings reveal that actors' power dynamics and efficiency considerations influence institutional change, as they make choices based on perceived benefits of various institutional forms. The research critically evaluates the evolution of these institutions in the context of new legislation implementation. It argues that power asymmetry may lead to inefficient bargaining outcomes, particularly in situations of incomplete information and uncertainty about others' preferences, complicating cooperation. However, shared beliefs among actors can facilitate information processing and enhance coordination. The study underscores the importance of supporting the learning processes of pasture users and policymakers to bridge gaps in beliefs, ultimately promoting the sustainability of institutions in resource management.