Editor's Summary: During a recent conference in Almaty, Kazakhstan devoted to discuss key development issues facing Central Asia, one of the topics debated among experts from the region and from abroad was how to manage the "natural resource curse", i.e., the widely observed phenomenon that developing economies blessed with ample natural resources tend to perform worse than those with fewer or no such resources. In this article, Johannes Linn explores why it is so hard for countries to manage their natural resources well, what has been the experience in Central Asia to date, and what might be suitable ways to manage future bonanzas.
In early June 2008, the International School of Economics, the Central Asian campus of the London School of Economics at the Kazakh British Technical University in Almaty, organized a conference on "Institution Building and Economic Development in Central Asia". One of the topics debated was the threat of the "natural resource curse" hanging over Central Asian countries with substantial energy resource endowments. Azerbaijan, Kazakhstan, Turkmenistan and (to a lesser extent) Uzbekistan have large oil and gas reserves; Kyrgyzstan and Tajikistan have large hydropower resources, although much of their potential
The biggest obstacle to utilizing the natural resources of Central Asia is that most of the countries are landlocked. Azerbaijan is the gateway country to Central Asia since it has ports and it is emerging as an important exporter of oil and gas.
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The largest city in Central Asia is Almaty, located in Kazakhstan. It is the cultural and economic center of the country, with a population of around 2 million people.
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