View source for Chelnoki (Russia and FSU)

{{infobox 
| nameofpractice =Chelnoki
| flagemoji =🇷🇺
| definition =Small trader who resells goods purchased in China
| location =Russia and FSU
| imagemap =Russia map.png
| clusters =
[[:Category:Market|Market]] – [[:Category: Functional ambivalence| Functional ambivalence]] – [[:Category: System made me do it| System made me do it]] – [[:Category: Survival| Survival]] – [[:Category: Informal entrepreneurship| Informal entrepreneurship]] 
| categories =
[[:Category:Russia|Russia]] – [[:Category: FSU| FSU]] – [[:Category: Trade| Trade]] – [[:Category: Shuttle trade| Shuttle trade]] – [[:Category: Reseller| Reseller]] – [[:Category: China| China]] – [[:Category: Triangle| Triangle]] – [[:Category: Borders| Borders]] 
| authorofpiece =Anna Cieślewska
| authorinstitution =Department of Iranian Studies, Institute of Oriental Studies of the Jagiellonian University, Poland
| authorwebsite =[https://jagiellonian.academia.edu/AnnaCieslewska Profile page at Academia.edu]}}
<big>'''By Anna Cieślewska, Department of Iranian Studies, Institute of Oriental Studies of the Jagiellonian University, Poland'''</big>
[[Category:Market]] 
[[Category: Functional ambivalence]] 
[[Category: System made me do it]] 
[[Category: Survival]] 
[[Category: Informal entrepreneurship]] 
[[Category:Russia]] 
[[Category: FSU]] 
[[Category: Trade]] 
[[Category: Shuttle trade]] 
[[Category: Reseller]] 
[[Category: China]] 
[[Category: Triangle]] 
[[Category: Borders]] 
[[Category:Entry]] 
[[Category: Volume 2]] 
{| class="wikitable"
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|style="font-size:1.1em;"| style="font-size:1.1em;"|''Chelnok'' (''pl. chelnoki'') is a colloquial Russian term used to describe a trader involved in shuttle trade in regions of the former Soviet Union, and in Eastern Europe. The term ''chelnok'' literally means a shuttle which is moved from one edge of a loom to the other in the process of weaving. The activities of shuttle traders are similarly associated with constant movement – travelling to and from a point of purchase to a point of sale of goods. In Polish, two equivalent terms are used: ''handlarz-turysta'' meaning a tourist-trader or ''handlarz-mrówka'', an ant-trader. Similar practices across the world are associated with unstable labour markets and occupy a semi-informal sphere of business (see also entry on small scale ''[[smuggling]]''). Tarrirus refers to petty, trans-border traders as ‘ants of globalisation,’ ‘the new nomads of underground economy’ such as [[sacoleiros]] in Brazil or African mobile phone buyers in Hongkong and Guangzou (Telles di Silva 2012: 90<ref>Telles da Silva, V. 2012. 'Illegalism and City of San-Paulo', in G. Mathews, G. L. Ribeiro, and C. A. Vega  (eds.) '' Globalization from Below: The World's Other Economy'', New York: Routledge, 86-101</ref>). 

''Chelnoki'' has its origins in the phenomenon of ''meshochnik(i) '' - speculator(s), the vendors engaged in the prohibited trade of food during the Russian Civil War (the period after the 1917 Russian Revolution until 1922). The term ''meshochniki'' is derived from the sack (''meshok''), in which people transported goods. During the period of the Civil War the Soviet regime banned private trade. Famine in the cities forced the Soviet government to develop a system of rationing, whereby food was distributed to those in possession of ration cards. In consequence, surplus food in rural areas was smuggled from the villages to the cities. Food was bought from farmers or exchanged for valuable goods and frequently ended up at the cities’ black market (Davydov 2007<ref>Davydov, A. Iu. 2007. '' 'Meshochniki i Diktatura v Rossii’'', 1917-1921', Sankt-Peterburg: Aleteiia </ref>). Under Soviet criminal law, speculation – the selling or buying goods for the purpose of making profit – was defined as ‘one of the most dangerous economic crimes which affects the normal functioning of Soviet trade and genuine interests of buyers’ (Kaiser 1997<ref>Kaiser, M.  1997. ‘Informal Trade Sector in Uzbekistan’, Working Paper No. 281, Bielefeld</ref>). Traders were persecuted as ‘speculators.’
|}
[[File:5_26_Chelnoki.jpg|300px|thumb|left|‘Margaret Morton©OmbraLuceLLC_2006.’]]
Under the Soviet command economy, food and consumables were in short supply, and foreign trade was controlled as part of the state planning system. Nevertheless, everything from fashionable clothes to imported electronic goods (in the latter period) could be accessed though [[Blat (Russia)|blat]] (Leveneva 1998<ref>Ledeneva, A. 1998 '' ‘Russia’s Economy of Favours: [[Blat]], Networking and Informal Exchange’'', Cambridge: Cambridge University Press</ref>), through informal contacts, or on the black market. In time, black market traders, specialising in imported goods, became known as ''fartsovshchik(i) '' (Kaiser 1997<ref>Kaiser, M.  1997. ‘Informal Trade Sector in Uzbekistan’, Working Paper No. 281, Bielefeld</ref>) (see also [[baraholka]]). 

After 1988, restrictions on trade became less severe and the number of trading agencies sharply increased. Nevertheless, the majority were state agencies that concentrated on exporting goods produced in the USSR and focussed little on importing consumer products. Consequently, when the economy opened up at the beginning of the 1990s the official retail trade sector was not ready to import goods. By the mid-1990s the number of foreign trade outlets reached 20,000 (IMF 1998: 9, 10<ref>International Monetary Fund, 1998. ‘Shuttle Trade’, https://www.imf.org/external/.../98-1-3.pdf</ref>).  

Concurrently, the labour market in post-communist Russia was collapsing. Shrinking domestic production triggered an increase in informal activities. The transitional period, associated with porous borders, as well as non-existent regulations for export and import, allowed for relatively free movement of people and goods. The shortages in foods and diversity of provisions in different regions made it profitable to buy certain goods in one country and to sell them in another, thanks to significant discrepancies in prices between the countries of the former Soviet Union and Eastern Europe. For example, traders brought a variety of domestic and hardware goods to Poland (mostly from the territory of the former Soviet republics) and on their return journeys purchased textiles, electronic equipment and other goods, which were in demand in their home markets (Cieślewska 2014: 126<ref>Cieślewska, A.  2014. 'From Shuttle Trader to Businesswomen: The Informal Bazaar Economy in Kyrgyzstan', in J. Morris and A. Polese, (eds.) '' The Informal Post-Socialist Economy: Embedded Practices and Livelihoods'', London & New York: Routledge, 121-134 </ref>, Esim, 2002: 8<ref>Esim, S. 2002. ‘Women’s Informal Employment in Transition Economies’, United Nations Division for the Advancement of Women (DAW) Expert Group Meeting on ‘Empowerment of Women Throughout the Life Cycle as a Transformative Strategy for Poverty Eradication’, 26–29 November, New Delhi: India</ref>, Ozcan 2006<ref>Ozcan, G.  2006. 'Djamila’s Journey from Kolkhoz to Bazaar: Female Entrepreneurs in Kyrgyzstan', in F. Welter, D. Smallbone and N. Isakova (eds.) '' Enterprising women in Transition Economies'', Aldershot: Ashgate, 93-115</ref>). ''Chelnoki ''also travelled from regions of the former Soviet Union and Eastern Europe to China, India, the United Arab Emirates, Iran, Italy, Pakistan, Syria, Thailand, Turkey and Central Europe in order to buy goods destined for the domestic market. In the 1990s, ''chelnoki'' business was associated those travelling with big suitcases full of consumer goods, containing in the main, food products, textiles, clothes and household goods (Esim, 2002: 8<ref>Esim, S. 2002. ‘Women’s Informal Employment in Transition Economies’, United Nations Division for the Advancement of Women (DAW) Expert Group Meeting on ‘Empowerment of Women Throughout the Life Cycle as a Transformative Strategy for Poverty Eradication’, 26–29 November, New Delhi: India</ref>). Small tour companies organising ‘tourist excursions’ flourished at this time. Although officially, such trips were targeted at tourists, the majority of clients were traders who rarely had time to visit tourist attractions (Cieślewska 2014: 126<ref>Cieślewska, A.  2014. 'From Shuttle Trader to Businesswomen: The Informal Bazaar Economy in Kyrgyzstan', in J. Morris and A. Polese, (eds.) '' The Informal Post-Socialist Economy: Embedded Practices and Livelihoods'', London & New York: Routledge, 121-134 </ref>). 

According to some estimates, ''chelnoki'' trade provided employment for up to 30 million traders in the mid-1990s. It is thought that majority of ''chelnoki'' are women, for whom bazaars became the only source of employment during the turbulent years of transition (Abazov 2009: 27-29<ref>Abazov, R.  2009. 'Current Trends in Migration in the Commonwealth of Independent States', '' Human Development Research Paper ''  36 </ref>; Taraban 2002<ref>Taraban, S. 2002. 'Women and Economic Restructuring in Post-Socialist Ukraine: The Paradoxes of Constructing a Businesswoman', 21: 4 '' Canadian Women Studies'', 124-128</ref>). A popular myth reinforces the notion that women are more skillful at trading than men. Men involved in ''chelnoki'' trade are often related to the female traders, and play a significant role in helping to develop business and in protecting the women from a variety of dangers such as intimidation by strangers or sexual abuse. A typical ''chelnok'' trader operated though a personal network, involving flexible distribution of responsibilities. Members of the network of family and friends might be involved in a range of activities from the transportation of goods across borders, to selling the products at market and distributing goods among the group. Another form of assistance included providing relevant personal contacts and advice. (Slonimski et al. 2012: <ref>Slonimski, A.,  Pobol, A., Linchevskaya, O., Slonimskaya, M.  2012. 'Crossborder Enterpreneurial Cooperation at the Household Level: Bialorus and EU countries', in D. Smallbone, F. Welter and M. Xheneti (eds.) ''  Cross-Border Entrepreneurship and Economic Development in Europe's Border''. Cheltenham: Edward Elgar Publishing Ltd, 157-167 </ref> ). Traditionally, ''chelnoki'' are especially widespread in Central Asia and the Caucasus, but their overall number is declining. (Cieślewska 2014: 126<ref>Cieślewska, A.  2014. 'From Shuttle Trader to Businesswomen: The Informal Bazaar Economy in Kyrgyzstan', in J. Morris and A. Polese, (eds.) '' The Informal Post-Socialist Economy: Embedded Practices and Livelihoods'', London & New York: Routledge, 121-134 </ref>, Avtokratov 2001<ref>Avtokratov,A. 2001. 'Viuchnye Liudi', '' Druzhba Narodov '' 5. http://magazines.russ.ru/druzhba/2001/5/avto.html</ref>, Abazov 2009: 27-29<ref>Lenta.ru. 2009. ‘V Ekaterinburge otkryli pamjatnik chelnokam’.  http://www.lenta.ru/news/2009/07/20/chelnok/</ref>).  

Over time, some of the ''chelnoki'' trade has transformed into profitable business. Traders still travel, but the scale of trade and their purchasing power has increased. Many former'' chelnoki ''became retail suppliers to wholesale outlets. Others continue to travel abroad to buy a variety of goods for their own stalls in the markets; but in the majority of cases, they send the purchased goods through intermediaries, thus they are required only to supervise their delivery. 

At the outset of the post-communist transition, ''chelnoki ''trade suffered from unstable economic conditions, racketeering and operated in a high-risk environment. A so-called ‘protection fee’ was often extorted from shuttle traders and collected on regular basis. Typically a particular gang or criminal entity controlled each bazaar. Traders were forced to pay up to 30 per cent of their profits to racketeers. Theft of the ''chelnoki'''s possessions occurred on a daily basis, either as punishment for those who had not paid their dues or as a warning to others. Further financial exploitation was experienced by ''chelnoki'' at the hands of customs officers at the cross-borders control points, by transport police and other officials keen to benefit from the earnings of traders who were readily identifiable. Officials continue to seek personal gain from the ''chelnoki'' trade to this day (Cieślewska 2014: 126<ref>Cieślewska, A.  2014. 'From Shuttle Trader to Businesswomen: The Informal Bazaar Economy in Kyrgyzstan', in J. Morris and A. Polese, (eds.) '' The Informal Post-Socialist Economy: Embedded Practices and Livelihoods'', London & New York: Routledge, 121-134 </ref>, see Avtokratov 2001<ref>Avtokratov,A. 2001. 'Viuchnye Liudi', '' Druzhba Narodov '' 5. http://magazines.russ.ru/druzhba/2001/5/avto.html</ref>).  

A number of monuments commemorate ''chelnoki'' trade. In July 2009, a monument to ''chelnoki'' was erected in Yekaterinburg, near the main entrance to the largest market in the Urals, Taganskii riad (Lenta.ru 2009 Exchange , ''Cambridge: Cambridge University Press''<ref>Lenta.ru. 2009. ‘V Ekaterinburge otkryli pamjatnik chelnokam’.  http://www.lenta.ru/news/2009/07/20/chelnok/</ref>).Another shuttle trader monument was constructed in Manzhouli, on the border between Russia and China. The sculptures, dedicated to ''chelnoki'' entrepreneurs of 1990s were erected in the centres of Belgorod in November 2007 and in Blagovshchensk and Sloviansk in Ukraine. (Polsergmich.blogspot 2012<ref> ‘Skulpturnie kompositsii (9) pamiatniki torgovtsam-chelhokam’. 2012.http://polsergmich.blogspot.com/2012/12/9-7.html</ref>)

A documentary entitled ''Chelnoki: a school of survival'' (''Chelnoki. Shkola vyzhivaniia''), released in Russia in 2011, showed the reality of ''chelnoki'' business in the first years following the fall of the Soviet Union, during the period of transformation. Another documentary, ''Jarmark'' Europa, by Minze Tummescheit was produced in 2004. It depicts Warsaw's 'Dziesieciolecia Stadium', one of Eastern Europe's largest bazaars, and a centre of the trans-border trade between early 1990s and 2007. In 2010, the book 'Wielkie Bazary Warszawskie' (Warsaw's Big Bazaars) by Jacek Maria Kurczewski, Mariusz Cichomski and Krzysztof Wiliński was published; the book describes the 'life' of two bazaars in Warsaw: Jarmark Europa and Różyckiego and includes the life stories of the traders, their clients and the policemen who controlled the bazaars. Overall, ''chelnoki'' trade became a symbol of the rapid changes of 1990s, a period of uneven transformation, instability and a flourishing informal economy.   

==References==
[https://read.dukeupress.edu/public-culture/article-standard/16/1/47/31743/Trust-and-Gender-in-a-Transnational-Market-The Chelnoki operating in Istambul, Turkey] in Yükseker, D. 2004. "Trust and Gender in a Transnational Market: The Public Culture of Laleli, Istanbul", ''Public Culture'', 16 (1): 47-66, doi.org/10.1215/08992363-16-1-47