Economy, business and services

No. 3 (24) - 2024 / 2024-09-30 / Number of views: 43

THE IMPACT OF FOREIGN AID ON THE ECONOMIC GROWTH OF CENTRAL ASIAN COUNTRIES (analytical review) ASIAN COUNTRIES

Authors

  • A. Serikkyzy
  • S.S. Baktymbet
  • М. Ermirzoev
  • A.B. Akhmetova

Keywords

foreign aid, economic growth, Central Asia, dependence, corruption

Link to DOI:

https://doi.org/10.58805/kazutb.v.3.24-560

How to quote

Serikkyzy, A., S. . Baktymbet, Ermirzoev М., and A. Akhmetova. “THE IMPACT OF FOREIGN AID ON THE ECONOMIC GROWTH OF CENTRAL ASIAN COUNTRIES (analytical Review) ASIAN COUNTRIES”. Vestnik KazUTB, vol. 3, no. 24, Sept. 2024, doi:10.58805/kazutb.v.3.24-560.

Abstract

This study explores the relationship between foreign financial aid and economic growth in Central Asian countries. Foreign aid is viewed as a critical resource for promoting long-term growth by addressing key challenges such as infrastructure, healthcare, and education. However, the effectiveness of aid remains contentious, with critics arguing that it may foster dependency, corruption, and inefficient use of resources. Central Asia, comprising countries like Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan, has received substantial foreign financial aid since gaining independence following the dissolution of the Soviet Union. While some scholars suggest that foreign aid has positively impacted the economic growth of Central Asian nations, others argue that it has had minimal or even negative effects. This study emphasizes the importance of evaluating not only the amount of aid but also its effectiveness, with a particular focus on the role of institutional quality in determining the success of aid in promoting sustainable economic development.