In early 2021, the OECD published a report assessing the legal environment for business in Central Asia with targeted recommendations for each of the countries of the region based on a set of reform priorities identified in work with Central Asia governments in 2019-2020. This work has been conducted against the backdrop of multiple shocks with widespread effects on the economies and societies of the region, including the COVID-19 pandemic and Russia’s full-scale invasion of Ukraine, reinforcing the need to engage in structural reforms to increase resilience.
Improving the Legal Environment for Business and Investment in Central Asia - Progress Report is a continuation of the work carried out by the Eurasia Division of the OECD’s Global Relations and Cooperation Directorate since 2020. The European Union provided financial support for this work through the OECD policy component of its Central Asia Invest programme.
The purpose of the report is to assess progress made by the governments of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan in implementing the recommendations made in 2020. Despite recent reforms across the region, particularly in streamlining legislation and digitalising government services – the business environment in Central Asia remains challenging, largely due to gaps between de jure frameworks and de facto implementation and an uneven playing field between private firms and State-Owned Enterprises.
The analysis considered the effect of the COVID-19 pandemic and the disruption caused by Russia’s war in Ukraine on the ability of the governments to implement the initial recommendations. In particular, the OECD assessment integrates three main dimensions: (i) a measure of implementation progress based on the reforms agreed upon with the government in 2020; (ii) an assessment of the drivers for implementation gaps; and (iii) an assessment of new challenges and priority areas for policy action.
The report comprises an overview section followed by five country-specific chapters. Each chapter presents a detailed analysis of the progress made in each priority area, indicating remaining room for improvements, and providing indicative policy recommendations to further improve the legal environment for business and investment in Central Asia.