"Chinese Business in Central Asia: How Crony Capitalism is Eroding Justice", 30 March 2021

While corruption is not new, and businesses have frequently colluded with officials to circumvent law, China’s Belt and Road Initiative (BRI) is spreading crony capitalism to all corners of Central Asia. This system accommodates the interests of the region’s political elites through various mutually beneficial schemes. Any buffer against transparency is appreciated by both sides. All forms of Chinese enterprises operate in the region, and unlike in more advanced markets, they are subject to minimal regulation and often feel no obligation to comply with local standards. [...]

The Bishkek power plant, and other evidence of wasteful use of loans, puts weak economies at risk and, as many in Kyrgyzstan feared, it drains resources and amplifies corruption. When in debt, corrupt politicians concede more rights to their creditors, or sell out cheap. In another case, TBEA was granted a license to operate a gold mine without any national oversight in Tajikistan in exchange for building a power plant free of charge. [...]