On June 6, the Caspian Policy Center (CPC) and the Center for International Private Enterprise (CIPE) hosted a joint online webinar on “Investment Screening in Central Asia,” a recently published report by Roman Vakulchuk and Farrukh Irnazarov, co-founders of the Central Asia Development Institute.   

Eric Hontz, Director of CIPE's Center for Accountable Investment, observed that the report is very timely for Central Asian states that are actively seeking new foreign investment in line with multi-vector foreign policies, but want to avoid potential risks of economic coercion from dependency on any given investor. 

The discussion, moderated by CPC board member Dr. Marsha McGraw Olive, focused on screening mechanisms and existing practices aimed at regulating incoming investment in four countries of Central Asia: Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan.  The authors presented a dynamic picture of how domestic decisions on foreign direct investment (FDI) intersected with a range of global initiatives such as BRI, CAREC, the EAEU, the EU’s Global Gateway, various C5+1 initiatives, and even sanctions. 

Sarah Bauerle Danzman, Visiting Scholar at the Atlantic Council and Associate Professor of International Studies at Indiana University Bloomington, said the report broke new ground by devising a typology that fits the local context in countries where Western screening practices are not necessarily feasible or relevant to the nature of threats in OECD countries.  It also contributes to the policy debate by raising awareness on the need to manage inward flows, including by leveraging local groups and associations to help monitor risks.  

Jennifer Miel, Vice President of the U.S Chamber of Commerce’s Middle East, Türkiye and Central Asia Affairs Department, noted that there is already a significant diversification of foreign partners and products in Central Asian economies.  In addition to focusing on fundamentals in the business environment to help attract foreign investors, she supported a consultative mechanism for conventional screening to help avoid politicization of investments.