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 (eg. 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 1992-3 when the IMF’s strong position in favour of retaining the ruble turned out to be mistaken advice. In the 1990s aid directed to the Aral Sea problem produced few benefits because, despite the magnitude of the gross benefits from reversing the desiccation, littoral countries see differential benefits and costs; pure win-win situations are more likely from regional cooperation in trade facilitation. Subsequently the multilateral agencies have had a better focus, sharing priorities in the destination of aid and agreeing on a functional division of labour, but this has not yet translated into effective assistance for regional cooperation.
|Date of creation:||02 Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: 01|
Phone: 00 353 1 896 3888
Fax: 00 353 1 896 3939
Web page: http://www.tcd.ie/iiis/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- International Economics Department, 1992. "Measuring the incomes of economies of the former Soviet Union," Policy Research Working Paper Series 1057, The World Bank.
- Djankov, Simeon & Freund, Caroline, 2000.
CEPR Discussion Papers
2545, C.E.P.R. Discussion Papers.
- Philip R. Lane, 2003.
"The International Community and the CIS-7,"
The Institute for International Integration Studies Discussion Paper Series
- Williamson, John, 2000. "What Should the World Bank Think about the Washington Consensus?," World Bank Research Observer, World Bank Group, vol. 15(2), pages 251-64, August.
- Djankov, Simeon & Freund, Caroline, 2000. "Disintegration and trade flows : evidence from the Former Soviet Union," Policy Research Working Paper Series 2378, The World Bank.
- Richard Pomfret, 2002. "The IMF and the Ruble Zone," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 44(4), pages 37-47, December.
- Jeronimo Zettelmeyer & GÃ¼nther Taube, 1998. "Output Decline and Recovery in Uzbekistan; Past Performance and Future Prospects," IMF Working Papers 98/132, International Monetary Fund.
- Ashoka Mody & Ratna Sahay & Thomas Helbling, 2004. "Debt Accumulation in the CIS-7 Countries; Bad Luck, Bad Policies, or Bad Advice?," IMF Working Papers 04/93, International Monetary Fund.
- Corden, W. Max, 1992. "Trade policy and exchange rate issues in the former Soviet Union," Policy Research Working Paper Series 915, The World Bank.
- Richard Pomfret, 1996. "Asian Economies in Transition," Books, Edward Elgar Publishing, number 721, June.
- Schiff, Maurice & Winters, L. Alan, 2002. "Regional cooperation, and the role of international organizations and regional integration," Policy Research Working Paper Series 2872, The World Bank.
- J. Stiglitz, 1998. "More Instruments and Broader Goals: Moving toward the PostWashington Consensus," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
When requesting a correction, please mention this item's handle: RePEc:iis:dispap:iiisdp163. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Colette Keleher)
If references are entirely missing, you can add them using this form.