Central Asian countries

Country: Kazahkzstan Initial Conditions
Largest country of the region
Not mono-ethnic
Brain drain post dissolution
Most oil outlets connected through Russia
Policy Highlights
Pursued a privatization program
Economic Outcomes
Economics disappointed through the early 90s
Since 99, able to export at world prices
Best economic performer of the region
New oil discoveries creates new optimism
Lessons Learned
Oil the main reason for economic boom

Country: Krygyzstan Initial Conditions
Most impoverished of all CA states
No resources
Policy Highlights
Became the most reformist CA state – 1 st to be admitted entrance to WTO
Large scale reforms and land reforms instituted
Implementation not viewed as successful
Economic Outcomes
Limited success in attracting foreign investment
High expenditures resulted in large debts incurred
Stalled reforms after balance of payment crisis in 1998
Still one of the poorer CA states
Lessons Learned
Transplanting western institutions into a Central Asian setting not successful - too many other conditions for a successful market economy were lacking
Although resource poor, better management leads to less suffering than Tajikistan

Country: Tajikistan Initial Conditions
Also a poor CA state
No resources
Embroiled in civil war for most of the 90s
Gov’t not in control over its territory during the war
Policy Highlights
During the 90s, country preoccupied with civil war
Post war, liberal policies instituted to follow int’l institution recommendations
Implementation poor
Economic Outcomes
Foreign investment came in the form of military aids from Russia
Overall economic performance disastrous
Lessons Learned
No resources + political instability = poverty

Country: Turkmenistan Initial Conditions
Resource based: cotton, oil
Policy Highlights
Strong government embodied by president akin to personality cult
Populist strategies established: free electricity, gas, and other essentials
Import substitution industrialization pursued
Economic Outcomes
Populist policies supported through cotton and energy rents
Standard of living has been in decline, specific measurements difficult to obtain
Lessons Learned
Attempts to ignore universal economic laws + political dictatorship= Economic grief

Country: Uzbekistan Initial Conditions
Most populous nation, Tashkent the regional capital
Energy resources: cotton, gold
Inherited best air fleet and military equipment
Best physical infrastructure and policy-making bureaucracy
Policy Highlights
Engaged in small scale privatization and housing reform
Engaged in international monetary organizations
Instituted forex control when faced with balance of payment crisis
Policies similar to Asian developmental state
Economic Outcomes
Able to maintain or even improve standard of living in the 90s
Forex control (propping up overvalued currency)  unwise distribution of resources and high agricultural taxes
Economy lags in the 2000s
Lessons Learned
Attempts to ignore universal economic laws brings economic grief
Heavily interventionist import-substituting industrialization strategy leads to: 1) LT economic stagnation, 2) creates vested interests that make policy reversal difficult
Delay in reforms delays the appearance of economic stagnation

Central Asian countries

by investoralist on Jan 27, 2010

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