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Coordinating Aid for Regional Cooperation Projects: The Experience of Central Asia

For the Central Asian countries the dissolution of the Soviet Union led to economic disintegration as old coordination mechanisms disappeared and new national borders appeared. This paper analyses why it has been difficult to coordinate aid for regional cooperation projects (e.g., on the Aral Sea or trade facilitation) whose economic benefits appear positive. Bilateral aid flows to Central Asia have been dominated by geopolitical rather than economic considerations, and have been at best narrowly national in focus and at worst regionally divisive. Regional organizations composed of Central Asian countries and various neighbours have also competed rather than cooperated, so that the most plausible source of coordinated aid for regional cooperation projects is the multilateral agencies. A key role for aid donors is to provide technical assistance in analysing and explaining benefits, and how these affect various interests. Initial advantages which multilateral agencies had as impartial providers of technical advice were undermined in 1992-93 when the IMF’s strong position in favour of retaining the ruble turned out to be...
Publisher:
UNU-WIDER
Series:
WIDER Research Paper
Volume:
2007/48
Title:
Coordinating Aid for Regional Cooperation Projects: The Experience of Central Asia
Authors:
Richard Pomfret
Publication date:
August 2007
ISSN Web:
1810-2611
ISBN Web:
9291909939
ISBN 13 Web:
9789291909933
Copyright holder:
© UNU-WIDER
Copyright year:
2007
Keywords:
aid, Central Asia, trade
JEL:
F35, F15, O18, R12
Project:
Conference on 'Aid: Principles, Policies and Performance'
Sponsor:
The governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Norway (Royal Ministry of Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online
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