Central Asian outlook

A SUPPLEMENT TO EUROMONEY - April 1997

Introduction

After years of Soviet hegemony, the countries of Central Asia finally achieved their independence in 1991. The collapse of the Soviet Union allowed the five countries of Central Asia ­ Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan ­ not only to forge new ties with the west but also with the newly industrialized counties of the Pacific rim.

Economic potential

The political stability of many of the regimes has enabled reforms to be implemented much more quickly than in other republics of the CIS. This has stemmed from the centralization of power into the hands of the presidents who have extended their period in office through referendums. Many harsh and urgently-needed reforms have taken place because of this.

The people of Central Asia have always been very market-oriented and this attitude managed to survive during the Soviet rule. This has meant that the transformation into a market economy has been far more natural than in some other republics.

Reforms

Between 1991 and 1997 the Central Asian countries witnessed the continued institutional transformation that has helped to design a regional economic pattern.