The article examines factors impacting countries' economic performance, focusing on Kazakhstan and Uzbekistan. Despite shared culture and region, Kazakhstan's superior economic growth is attributed to divergent economic policies and institutions following independence. Kazakhstan embraced radical transition, liberalizing its economy, trade, and currency for increased FDI and private sector involvement. In contrast, Uzbekistan adopted a neutral strategy with controlled policies and institutions, hindering FDI and private sector growth. Correlation analysis confirms a positive link between Kazakhstan's GDP growth and the quality of economic institutions and a negative link for Uzbekistan.

Economic development, Uzbekistan, Kazakhstan

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