Foreign Investments In Central Asia: Past, Present, And Future

7354 words, 30 pages

Intro Sample...


GEO55

Introduction
Since their independence in 1991 Central Asian states have each struggled to keep up with the innovations and economies of the modern world. Much of the development in each country is contingent upon the ability for countries to gain foreign investment to build infrastructure and economies. In this paper I will analyze the state of Central Asian economies as they pertain to the natural resources, infrastructure, human resources, and government in each respective state. Each of these four categories helps define the current state and the future of foreign investment in Central Asia. Since their independence, each country has gained foreign investment at a different pace based on their natural resources,... View More »

Body Sample...


There was huge taxation and an ineffective and corrupt tax collection agency, which included wooden central banks. There were poorly defined business property rights, which ultimately left minority shareholders ignored5.
Institutions
In addition to the similarities that the Central Asians countries share with each other, they face many of the problems that Moscow has, but lack the infrastructure that Moscow has to deal with these problems. This includes small institutions that are dealing with trade and investments. On a day-to-day basis these institutions also handle currency regulation, tax, tariffs, import-export regulations, diplomatic representation, construction, and national banking. The problem was that these institutions were deployed on such short notice after the fall of the Soviet Union, that they were corrupt and ineffective5.
In addition to this, there was widespread influence from surrounding nations, which had interest in the region. Of course, after the fall, Russia still exerted influence based on its interest on resources, and the region as a whole. In addition, to the east and west Afghanistan and Iran wanted to stake claim to the Central Asian states, because of their location and resources. Because of these countries that stood like vultures, national security became a huge threat that was not really addressed upon the nations’ independence6. Because of this lack of national security, many worried about the safety of their investments. Foreign investment decisions took into account that there was so much influence and the threat of ...

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