OECD Policy Component

The OECD Policy Component of the Central Asia Invest (CAI) Programme aims to support investment and competitiveness in Central Asia. The Component supports the advancement of economic reforms by using different tools:

• country-specific analysis, recommendations, monitoring of implementation;
• regional policy dialogue and peer exchanges; and
• capacity building.

In the current phase of the CAI, the OECD Policy Component is operating in three workstreams. Workstream 1 focuses on competitiveness policies that can address market failures, for instance:

• access to finance for small and medium firms;
• investment promotion;
• export promotion and facilitation; and
• entrepreneurship support policies.

Workstream 2 focuses on legal environment reforms to support domestic businesses and foreign investors, such as:

• legal and regulatory framework for investment;
• dispute resolution;
• operational environment for small firms;
• tax legislation and administration;
• expropriation regime;
• land legislation; and
• exit mechanisms.

Workstream 3 aims at supporting the EU in co-ordinating CAI stakeholders, in particular Business Intermediary Organisations (BIOs), and ensuring they can voice their concerns. BIOs are systematically invited to the OECD’s working group meetings, workshops and capacity building seminars. Once a year, the OECD furthermore organises a networking event convening all BIOs that have a stake in the EU CAI Programme to discuss policy challenges and potential solutions.

Generally, and throughout all the workstreams of the Component, the OECD and BIOs work hand-in-hand: BIOs raise their policy concerns to the OECD.

The findings and policy recommendations stemming from the first and second workstreams are peer reviewed at the OECD Eurasia Competitiveness Roundtable, the platform for policy dialogue, knowledge sharing and peer learning for the region. The resulting reports can be found below:

• Afghanistan
  • Boosting private sector development and entrepreneurship in Afghanistan (2019)  English | Dari
• Kyrgyzstan
  • Country-specific work seeks to support Kyrgyzstan in increasing its competitiveness. It is implemented jointly by the OECD and the German Agency for International Cooperation (GIZ).
  • A number of reports have been peer reviewed at the OECD Eurasia Competitiveness Roundtable:
    • Supporting Firm Creation and Growth through Business Development Services in Kyrgyzstan (2020)
    • Monitoring competitiveness reforms in Kyrgyzstan (2016) 
    • Improving Supply Chain Financing in the Kyrgyz Republic: The Case of Agriculture (2014) 
    • Improving Skills through Public-Private Partnerships in the Kyrgyz Republic: The Case of Agribusiness (2014) 
    • Expanding the Garment Industry in the Kyrgyz Republic (2014)
• Mongolia
  • Country-specific work with Mongolia aims to support access to finance for Micro and Small and Medium Enterprises. The report has been peer reviewed and monitored at the OECD Eurasia Competitiveness Roundtable:
    • Monitoring Competitiveness Reforms: Access to Finance for Firms in Mongolia
    • Enhancing access to finance for micro, small and medium-sized enterprises in Mongolia (2016)
• Tajikistan
  • Country-specific work with Tajikistan aims at improving SME development through stronger access to finance and at promoting the growth of exports in the agribusiness sector. The most recent work has focused on enhancing investment promotion in the country, particularly against the drop of FDI amidst the pandemic. Four reports have been peer reviewed at the OECD Eurasia Competitiveness Roundtable:
    • Enhancing investment promotion in Tajikistan (2022) English | Russian
    • Monitoring competitiveness reforms in Tajikistan (2017)
    • Enhancing access to finance for SME development in Tajikistan (2015) 
    • Increasing exports in Tajikistan: The case of agribusiness (2015) 
• Turkmenistan
  • Turkmenistan has benefitted from capacity-building events (investment promotion) and has been included in regional projects (contract enforcement; operational environment for SMEs). 
• Uzbekistan
  • Country-specific work with Uzbekistan aims to help the Government support SME exports. The following reports have been peer reviewed at the OECD Eurasia Competitiveness Roundtable in 2021 and 2017:
    • Boosting the Internationalisation of Firms through better Export Promotion Policies in Uzbekistan (2022)
    • Boosting SME Internationalisation in Uzbekistan through better export promotion policies (2017)

Contact person: Grégory Lecomte, Central Asia Manager, OECD Eurasia E-mail: gregory.lecomte@oecd.org