Risk assessment and mitigation in Central Asia: implications for foreign direct investment and the Belt and Road Initiative

By Alessandro Arduino and Andrew Cainey


A focus piece commissioned by the EBRD department for Economics, Policy and Governance

Central Asia has many attributes as a destination for foreign direct investment (FDI), but it has long had a reputation as a difficult environment for foreign investors. However, two factors suggest that there is potential for positive change. First, important advances in Central Asian regional cooperation and economic growth have attracted the interest of a new wave of international investors. Second, the Belt and Road Initiative (BRI), and the associated growth of Chinese investment in Central Asia, have opened up new opportunities, as well as risks.

Central Asian countries, foreign investors and international development partners share common interests in understanding and mitigating risks in order to maximise their opportunities for successful investment and economic development.

The views presented are those of the authors and not necessarily those of the EBRD.

Read paper