Baku, Azerbaijan, Oct. 25
By Rashid Shirinov – Trend:
Central Asian countries need to continue the process of transition from centrally-planned economies towards market economies, the World Bank told Trend Oct. 24.
The WB said the complete transition to market-oriented economy is among the main measures the Central Asian countries should take to improve their economies.
“Although Central Asia has made important advances in allowing market forces to play an increasing role, with significant differences across countries, the main characteristic still is of a large presence of the state in the economy,” the message said.
Another measure Central Asian countries should take is export diversification, according to the WB.
“Central Asia needs to develop new growth models that go beyond the almost exclusive reliance on producing and exporting a few mineral products, and develop a strategy for export diversification based on their specific comparative advantage,” the message said.
The WB also noted that Central Asian countries should develop the private sector and create jobs.
“Domination of the state-owned enterprises in the economies of the Central Asian countries results in a lower productivity throughout the economy, low value added, and increased costs to the relatively small private sector,” the WB noted.
In order to strengthen the role of the private sector in the economy, the state intervention should be re-directed to appropriate regulation and out of the sectors in which the private sector can operate, according to the WB.
It added that by relying on a more leveled playing field, private sector firms can significantly increase the level of job creation, including for younger people.