Kazakhstan and Other Central Asian Republics: Different Destinies after the Collapse of the USSR

Abstract

This paper examines the economic processes that took place in Central Asia after the collapse of the USSR. The division of Central Asia into relatively successful (Kazakhstan and Uzbekistan) and troubled economies (Tajikistan, Turkmenistan, and Kyrgyzstan) became very clear by the end of the 30-year period. It has been shown that liberal reforms do not always contribute to economic prosperity (the case of Kyrgyzstan) and that a conservative policy of rejecting radical economic reforms may not be harmful (the case of Uzbekistan). Kazakhstan’s greatest success has come from both resource factors (oil and gas) and moderate reformism. Overly, Central Asia states show exessive government involvement in economic acivity, which produce negative influence on efficiency. However, Uzbekistan demonstrates notable success during last 5–7 years. Their main problem is the slight success in impenrenting a strong industrial policy in order to achieve the necessary structural and technological transformation, and to engage in global value chains.