With the aim of illuminating causality between reform process and economic performance of the Central Asian states under systemic transformation towards a market economy, I classify them into two categories from the viewpoint of the institutional allocations, which characterize relations between government and business firms. Theoretical discussions and some empirical evidences strongly suggest that the differences in government-business relationship of each country have deeply interrelated with robustness of industrial production against so-called 'transformational recession' and incentive levels of the former socialist enterprises for their restructuring during the initial phase of transitional period. It seems to me that these findings may be suggestive also for other FSU countries.