Development finance institutions are increasingly turning their attention to Central Asia, attracted by political and economic reforms that are opening up markets, which was formerly isolated from global investment. Recent transitions in leadership and policy shifts across the region have created new opportunities for private sector engagement, infrastructure development, and sustainable growth.
Based on the data from Early Warning System, compiled in our South Caucasus and Central Asia Tracker, from January 1, 2020 to March 31, 2025 a total of 2160 projects with investment of 251.6 billion were proposed in the South Caucasus and Central Asia mainly by the European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), World Bank and International Finance Corporation (IFC), European Investment Bank (EIB), Green Climate Fund (GCF).
According to data compiled by the Early Warning System, between January 1, 2020, and March 31, 2025, Uzbekistan has emerged as the primary recipient of development finance investment within the Central Asian countries. Over this period, the country accounted for 329 projects, with a total investment volume estimated at approximately US$23.7 billion. Notably, Uzbekistan has attracted a higher concentration of energy-related projects relative to its regional peers. However, these projects also exhibit a greater level of risk, particularly in the energy sector, distinguishing Uzbekistan from other countries in the region.
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Speaking about financed sectors and the category of risks of the invested projects, as we can see from Table 1, Uzbekistan has more risky projects connected with energy projects in the region. The entire Aktau-Tamdy state reserve with bird Area and key Biodiversity Area has been moved to another area because of the Zarafshon wind power project (500 MW), EBRD–promoted by Masdar company (Abu Dhabi) in May 2023.
Additionally, many multi-country projects funded by the ADB, EBRD, AIIB, and IFC are focused on sectors such as energy, transport, and industry and trade, and are implemented in Central Asia, European countries, and parts of South Asia.
Most Technical Assistance projects across various sectors are primarily implemented in Kazakhstan and Kyrgyzstan. Meanwhile, investments aimed at government-related reforms and development are largely directed toward Tajikistan and Kyrgyzstan. It is worth noting that projects related to technical assistance and reforms are financed through grant investments.
Central Asia’s Shrinking Civic Space: When Development Harms Accountability
Despite the promising rhetoric of openness and international investment, the reality for civil society in Central Asia paints a very different picture. Across the region, community and civil society continue to be sidelined from decision-making processes that directly impact their lives. Instead of fostering transparency, participation, and accountability, the environment for civil society remains largely restrictive, making it difficult, if not dangerous, for citizens to question projects financed by Development Finance Institutions.
In Central Asia, civil society operates under constant threat: restrictive laws, bureaucratic hurdles, limited access to funding, and fear of repression define their daily reality. Building strong civil society networks has become essential, not only to amplify voices for human rights and environmental justice but also to resist increasing government pressure. While some countries in the region have introduced reform narratives, such as Uzbekistan’s 2021–2025 “Concept on Development of Civil Society,” these initiatives fall short. Major issues like restrictive Non-Governmental Organization (NGO) registration procedures, burdensome reporting obligations, and limitations on free speech remain unaddressed.
Similarly, Tajikistan has intensified repression, with over 700 NGOs dissolved between May 2022 and August 2023, and human rights defenders, including journalists, facing severe intimidation. Kazakhstan restricts peaceful assembly and monitors NGOs receiving foreign funding, while Kyrgyzstan has enacted a “foreign agent” law to further limit NGO activities. Turkmenistan, one of the world’s most authoritarian regimes, remains extremely repressive, ranking near the bottom of the World Press Freedom Index. These countries exhibit ongoing efforts to stifle civil society and dissent.
The Development Finance Institutions Accountability Gap
One of the starkest illustrations of this repression is the limited number of complaints filed by Central Asian communities to Development Finance Institutions accountability mechanisms. Despite millions of dollars pouring into the region from institutions like the World Bank, ADB, EBRD, and IFC, the actual number of registered grievances remains shockingly low. Referring to the ADB complaint register archive from 2012 to 2023, only 15 complaints have been registered from Central Asian countries, mainly from Uzbekistan and Kazakhstan. The panel cases of the Independent Project Accountability Mechanism of EBRD also show only 5 projects submitted in 2020 to 2024. From their case registry, we learn that recent complaints were connected with the Zarafshon Wind project in Uzbekistan (2024) submitted by Bankwatch and the Indorama Agro Capex Loan (2023) by the Uzbek Forum for Human Rights. Similar to ADB and EBRD, from 2010 to 2024, the World Bank’s Inspection Panel has only recorded 8 cases originating from Central Asian countries, primarily linked to projects under the Central Asia Regional Economic Cooperation (CAREC) initiative in Kazakhstan and support for the construction of the Rogun Dam in Tajikistan.
