Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)

This study analyzes the impact of officially multilateral foreign funds in the Kyrgyz Republic on its economy, on broader socio-economic development. It identifies key strengths, obstacles, weaknesses, lessons from different periods official multilateral financing and the key features of the public...

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Main Authors: Roman V. Manshin, Goran A. Sumkoski
Format: Article
Language:English
Published: Peoples’ Friendship University of Russia (RUDN University) 2024-12-01
Series:RUDN Journal of Economics
Subjects:
Online Access:https://journals.rudn.ru/economics/article/viewFile/42965/24509
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author Roman V. Manshin
Goran A. Sumkoski
author_facet Roman V. Manshin
Goran A. Sumkoski
author_sort Roman V. Manshin
collection DOAJ
description This study analyzes the impact of officially multilateral foreign funds in the Kyrgyz Republic on its economy, on broader socio-economic development. It identifies key strengths, obstacles, weaknesses, lessons from different periods official multilateral financing and the key features of the public investment system with foreign loans. The analysis shows the positive impact of public investment on socio-economic development, although this positive effect is significantly reduced due to the debt trap, high servicing costs, a large share of lost effects from loans owed to both creditors and countries from operational failures as well as economic and financial mistakes. A sensitivity analysis is conducted showing the size and impact of possible additional effects on the country’s economic development and growth, budgets and debt levels that could be achieved through more efficient implementation of public investment processes, improved project selection, preparation, and optimization of investment project implementation, as well as better utilization foreign financial funding.
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publisher Peoples’ Friendship University of Russia (RUDN University)
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spelling doaj-art-0b1ad38fdac041a2aad73bfb9c59f9682025-08-20T02:04:21ZengPeoples’ Friendship University of Russia (RUDN University)RUDN Journal of Economics2313-23292408-89862024-12-0132478480210.22363/2313-2329-2024-32-4-784-80221084Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)Roman V. Manshin0https://orcid.org/0000-0003-2331-9834Goran A. Sumkoski1https://orcid.org/0000-0002-2912-7449RUDN UniversityRUDN UniversityThis study analyzes the impact of officially multilateral foreign funds in the Kyrgyz Republic on its economy, on broader socio-economic development. It identifies key strengths, obstacles, weaknesses, lessons from different periods official multilateral financing and the key features of the public investment system with foreign loans. The analysis shows the positive impact of public investment on socio-economic development, although this positive effect is significantly reduced due to the debt trap, high servicing costs, a large share of lost effects from loans owed to both creditors and countries from operational failures as well as economic and financial mistakes. A sensitivity analysis is conducted showing the size and impact of possible additional effects on the country’s economic development and growth, budgets and debt levels that could be achieved through more efficient implementation of public investment processes, improved project selection, preparation, and optimization of investment project implementation, as well as better utilization foreign financial funding.https://journals.rudn.ru/economics/article/viewFile/42965/24509public investmentdeveloping countriesinternational financial organizationsdebtcredits managementinvestment projects
spellingShingle Roman V. Manshin
Goran A. Sumkoski
Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)
RUDN Journal of Economics
public investment
developing countries
international financial organizations
debt
credits management
investment projects
title Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)
title_full Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)
title_fullStr Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)
title_full_unstemmed Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)
title_short Analysis of the impact and effectiveness of official multilateral financing on socio-economic development: a case study of the Kyrgyz Republic (1992-2017)
title_sort analysis of the impact and effectiveness of official multilateral financing on socio economic development a case study of the kyrgyz republic 1992 2017
topic public investment
developing countries
international financial organizations
debt
credits management
investment projects
url https://journals.rudn.ru/economics/article/viewFile/42965/24509
work_keys_str_mv AT romanvmanshin analysisoftheimpactandeffectivenessofofficialmultilateralfinancingonsocioeconomicdevelopmentacasestudyofthekyrgyzrepublic19922017
AT goranasumkoski analysisoftheimpactandeffectivenessofofficialmultilateralfinancingonsocioeconomicdevelopmentacasestudyofthekyrgyzrepublic19922017