CIS AND EXTERNAL ECONOMIC DEPENDENCE WHY CENTRAL ASIAN COUNTRIES DO NOT NEED ECONOMIC DEPENDENCE ON EXTERNAL STATES TO DEVELOP.
Keywords:
Central Asia; economic dependence; economic development; institutional reform; state capacity; economic diversification; remittances; foreign direct investment; industrial policy; regional integration; SMEs; political economyAbstract
This paper critically examines the argument that Central Asian countries must rely on external economic dependence to achieve development. Focusing on Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan, it argues that while external engagement has historically supported economic stabilization, dependence on foreign actors is neither necessary nor desirable for long-term growth. The study identifies key forms of dependence, including commodity export concentration, remittance inflows, and reliance on foreign investment, and demonstrates how these factors create structural vulnerabilities such as economic volatility, weak domestic industries, and limited policy autonomy. Drawing on political economy literature and regional evidence, the paper emphasizes the central role of domestic institutions, state capacity, and economic diversification in shaping sustainable development outcomes. It further highlights the importance of industrial policy, SME development, and regional integration as viable alternatives to dependence-driven growth. The findings suggest that external engagement should function as a complementary tool rather than a substitute for internal reform, enabling Central Asian states to maintain economic sovereignty while integrating strategically into the global economy
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