Association for Public Policy Analysis & Management

Joseph Nye coined the term “soft power” in contrast to “hard power”, referring to the use of coercion in dealing with international relations. However, it remains unclear what constitutes as soft power. So far, research has explored the impacts of tourism, cultural exchange, language learning etc. on international relations, all of which has a focus on culture. Despite the importance of cultural understanding, economic collaboration should not be neglected, especially in more economically disadvantaged areas. This paper, by using Central Asia as an example, makes one of the first attempts to examine the role that entrepreneurship plays in raising the perception of a nation.

Due to the unique location and resources, Central Asia has become a strategic region of many super powers including Russia, China, and the US since the collapse of the Soviet Union (Gurbanmyradova 2015). By using a large representative time-series survey data conducted in Central Asia, this study finds that the perception of the US has gone down over time while that of China has been rising. Both countries have made large efforts in Central Asia. While the US attempts to introduce democracy and Western culture to Central Asia, China proposed the “One Belt, One Road Initiative,” an economic plan that does not only involve infrastructure building but also provide opportunities for local entrepreneurs. The study shows that since the initiative, there are more people in Central Asia planning to become entrepreneurs, and business owners compared to other groups significantly favor China over the US with all other elements controlled. The study advances the current literature in soft power and the impact of “One Belt, One Road Initiative.” Practically, it provides policy implications for the US policymakers in international relations and national security.