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Central Asia Faces Devastating $9 Billion Annual Loss from Climate Crises

Central Asia faces a complex mix of development challenges, according to a study conducted by the Analytical Credit Rating Agency (ACRA). These include global issues such as climate change, rising inequality, and demographic shifts, alongside regional concerns like water crises, aging infrastructure, border conflicts, and lack of access to sea routes. The region’s challenges can be categorized into external and internal risks. Since gaining independence, Central Asia has been shaped by the influence of global powers. Trade, security, energy, and education ties with Russia remain strong, while China’s Belt and Road Initiative has led to significant investment in infrastructure. Western nations and multinational corporations are active primarily in the raw materials sector, particularly in Kazakhstan, Uzbekistan, and Turkmenistan. While these international connections drive economic growth, they also heighten the region’s vulnerability to global shocks. For example, heavy reliance on remittances from migrant workers and low export diversification increase economic fragility. Climate change poses one of the most pressing threats to the region. Natural disasters—including floods, which affect about one million people annually, and earthquakes, impacting two million - result in $9 billion in annual GDP losses. Rising temperatures are expected to exacerbate issues such as water scarcity, droughts, heat waves, and the loss of agricultural land. Adopting sustainable development practices and green technologies could help mitigate these effects. Aging water and energy infrastructure is a major hurdle for the region. Energy insecurity, compounded by climate change, limits economic potential. Despite a rise in foreign investment from $1.5 billion in 2000 to $7.4 billion in 2023, the majority of funds are concentrated in raw materials, with only a small share allocated to infrastructure improvements. Transport development is equally critical. The lack of sea access places Central Asia at a 20% developmental disadvantage compared to coastal nations. Expanding roads, railways, and logistics hubs could significantly enhance regional and international trade. Territorial disputes, particularly around enclaves, remain a source of periodic clashes, with the Kyrgyz-Tajik border clashes of 2022 being a notable example. While these conflicts may not immediately affect economic stability, escalations could damage the region’s investment climate and trade prospects. A peace agreement signed later in 2022 has helped to stabilize the situation. Additionally, the situation in Afghanistan continues to present challenges, including terrorism, refugee flows, and border security concerns. These risks intensified following the regime change in Afghanistan in 2021, increasing the urgency for stronger border controls. Addressing these interconnected challenges will require coordinated efforts among all Central Asian nations. International organizations and major global partners must also play a role by supporting infrastructure and technological modernization. Such collaboration is essential to mitigating economic risks and fostering long-term development in the region.

Central Asia Local Politics Kyrgyzstan Kyrgyzstan Local Politics

Kyrgyzstan MP Proposes Legalization of Marijuana

At a recent session of the Jogorku Kenesh, Kyrgyzstan's parliament, Kyrgyz MP Dastan Bekeshev proposed revising the country’s approach to drug policy. Bekeshev suggested distinguishing between the lesser and greater evils of drug use, advocating for the legalization of light natural substances, such as marijuana, while emphasizing the dangers of synthetic drugs. Bekeshev argued that banning and destroying natural drugs only drives up their prices, pushing young people toward cheaper but far more harmful synthetic alternatives. He stressed that this approach exacerbates the drug problem rather than solving it. The idea of legalizing light drugs is not new for Bekeshev. In 2019, he proposed creating a designated zone at the former Manas airbase where the sale and use of light drugs would be permitted. Similarly, in 2017, former National Bank head Tolkunbek Abdygulov suggested that legalizing marijuana could help boost tourism in Kyrgyzstan. These proposals have sparked heated debates among Kyrgyz society and lawmakers, with opinions divided over balancing drug control with reducing the negative consequences of drug use. Regional Context The debate on legalizing light drugs is not unique to Kyrgyzstan. Across the Eurasia region, similar proposals have surfaced but have yet to gain official approval. In 2013, Russia called on CIS countries to adopt a joint statement opposing the legalization of light drugs, citing the potential risks of their spread. In 2023, Russian Interior Minister Vladimir Kolokoltsev reiterated Moscow’s firm stance against legalization, blaming Western propaganda for negatively influencing youth. Belarus has also explored the idea of legalizing psychedelics and other light drugs. However, no official measures have been enacted, reflecting the prevailing opposition to drug legalization within the CIS. Bekeshev’s proposal continues to fuel conversations about whether Kyrgyzstan could break with the regional norm and take a different approach to drug policy. As the debate unfolds, questions remain about the potential economic and social impacts of such a move.

Central Asia Business & Economy Kazakhstan Kazakhstan Business & Economy Kazakhstan Featurees

Kazakhstan’s Construction Sector Pushes for Easier Access to Migrant Labor

The Chairman of the Union of Builders of Kazakhstan (UBK), Talgat Yergaliyev, has called for simplifying the hiring process for foreign labor in Kazakhstan’s construction industry, citing a severe workforce shortage. “Today, our young people prefer office jobs, and no one wants to work in production. Year after year, the number of workers in the labor market is shrinking, and even government agencies are facing staffing shortages. In the construction industry, this problem is even more pronounced,” Yergaliyev said during a joint press conference with the National Chamber of Entrepreneurs of Kazakhstan, Atameken. “That’s why we propose following Russia’s example by attracting foreign labor to the construction sector.” However, Yergaliyev noted that Kazakhstan lacks mechanisms to support the large-scale hiring of migrant workers. By comparison, Russian construction companies pay 80,000 rubles ($790) annually for a patent to hire foreign workers, while a similar permit in Kazakhstan costs construction firms nearly double—700,000 KZT ($1,300) or more. Yergaliyev also acknowledged that low wages are a significant factor deterring Kazakhs from working in construction. “To retain Kazakhstani workers on construction sites today, they must be paid between $800 and $2,000. Otherwise, they will move to other sectors where the work is less demanding,” he explained. The labor shortage in Kazakhstan's construction industry is reaching critical levels. According to The Times of Central Asia, there are currently about 111,000 unfilled vacancies in the sector, and authorities project that this deficit could double by 2030. Despite this growing need, Kazakhstan’s Ministry of Labor and Social Protection reduced the foreign labor quota in November, potentially exacerbating the issue. Yergaliyev's proposal underscores the urgent need to address the labor shortfall while balancing fair wages for local workers with the costs of hiring migrant labor.

Home Justice Uzbekistan Uzbekistan Features Uzbekistan Justice Features

Uzbek Suspect Charged in Moscow Assassination; Putin and Mirziyoyev Talk

Russian President Vladimir Putin and President Shavkat Mirziyoyev of Uzbekistan spoke by telephone about joint security efforts, while an Uzbek man who had allegedly acted on behalf of Ukraine was charged in Moscow with the assassination of a top Russian military officer. Uzbekistan's embassy in Russia said on Wednesday that it was in contact with Russian law enforcement and was "clarifying the information" about the suspect. “The importance of continuing close and effective cooperation between the special services of the two countries in order to strengthen the fight against security threats and dangers was noted,” Mirziyoyev’s office said in a statement about the call on Thursday. A Kremlin statement also noted the agreement to continue security collaboration, adding that Mirziyoyev expressed condolences over the assassination of Lt. Gen. Igor Kirillov, head of the Russian military’s Chemical, Radiation and Biological Defence Troops, and his aide Ilya Polikarpov. “The Uzbekistani side emphatically condemns this vile terrorist act,” the Kremlin said. Kirillov was killed by a bomb that was planted on an electric scooter outside a residential building in Moscow on Tuesday, according to Russian authorities. On Thursday, a Moscow court charged Uzbek suspect Akhmadzhon Kurbonov with the killing and ruled that he will be held in custody until at least Feb. 17, the state-run Tass news agency reported. A video released by Russian officials shows the purported confession of the suspect, who was allegedly promised $100,000 by Ukraine and residence in a European Union country as a reward. The conditions surrounding the alleged confession are unclear. Several Western media outlets have quoted unidentified Ukrainian security sources as saying Ukraine was responsible for killing Kirillov. Ukraine had blamed Kirillov for the alleged use of banned chemical weapons in Ukraine. Russia denies the use of such weapons.

Local Politics Kyrgyzstan Local Politics Features Kyrgyzstan Features

Tax Troubles Trigger Shake-Up: Kyrgyzstan Names New Prime Minister

In Kyrgyzstan, Adylbek Kasymaliev, the head of the Cabinet of Ministers, has replaced Akylbek Japarov and became the new Prime Minister of the country. The departure of the previous head came as a surprise to most citizens. However, the president of the Kyrgyz Republic explained that the dismissal was due to unfavorable developments in the sphere of taxes. New Prime Minister Adylbek Kasymaliev was born on December 1, 1960, in the village of Dolon, in the Tyup district of the Issyk-Kul region. Over his long career, he has held the positions of Minister of Finance of Kyrgyzstan, Chairman of the State Tax Service, and Deputy Head of the Presidential Administration. According to the Kyrgyz president, Kasymaliev’s predecessor, Akylbek Japarov, who served for more than three years in the government, made a number of mistakes in the area of taxes. “His departure from office, I think, should not be politicized," stated President Sadyr Japarov. "Unfavorable events in the tax sphere, which provides the funds for the budget, have impacted this decision. There have also been machinations with excise duties. This sphere was under Akylbek Usenbekovich's personal control, and he could have taken earlier measures to stop illegal activity. Because of illegal manifestations in this area, as well as an investigation into the leadership of the tax service, there is a need to eliminate a conflict of interests. Thus, I decided to remove him from his post,” the president told Parliament. Earlier, the State Tax Service of Kyrgyzstan underwent massive inspections, resulting in a number of high-ranking officials losing their posts, including the head of the State Tax Service and some of his deputies. Kyrgyz analyst Nasirdin Shamshiev told Times of Central Asia that the departure was unexpected, as Akylbek Japarov had established himself as a strong and progressive economist. “Akylbek Japarov has done a lot to increase tax collections and bring business out of the shadows. Today's appointments in the government speak of the previous course of the Cabinet of Ministers,” Shamshiev said. In addition, Bakyt Sydykov has been officially appointed as Kyrgyzstan's new Minister of Economy. Previously, Sydykov worked on attracting investments and coordinating donor aid to the country. "Sydykov's appointment was likely a preliminary measure," Shamshiev also told TCA. "He has performed well in his previous posts, but we have yet to assess his work, because the Ministry of Economy is not only about investment, it has to deal with a very wide range of issues. These include taxes, as well as standardization and customs policy. There are also many unresolved problems related to the Eurasian Economic Union. There is still a lot of work to be done on all of this.” Personnel rotations in the government of Kyrgyzstan are associated with a revitalization of the system of government management, Edil Baisalov, deputy chairman of the Cabinet of Ministers, wrote on his Facebook page. According to Baisalov, the president's decision is dictated by the desire to give new momentum to the country's growth. Baisalov also noted that Akylbek Japarov...

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Uzbekistan Proposes 5-Day Paid Paternity Leave

Uzbekistan is taking steps to introduce new labor standards that support fathers and advance gender equality. A draft law submitted to parliament proposes granting men five days of paid leave within a month after the birth of their child. Deputy Nodir Tilavoldiyev stated that the proposal aligns with the country’s ongoing gender reforms. Currently, Uzbekistan’s labor laws do not include provisions for paternity leave, leaving many men to balance work and family responsibilities or rely on unpaid leave during this period. The draft law also seeks to enhance workplace protections by addressing discrimination, harassment, and violence. Employers would be empowered to transfer or dismiss employees found guilty of violence or abuse against colleagues. Additionally, the legislation focuses on supporting victims of domestic violence. It proposes including them in the list of socially vulnerable groups eligible for state-guaranteed employment assistance. These measures aim to foster a safer and more inclusive working environment for all. In neighboring Kazakhstan, fathers can already request unpaid leave upon the birth of a child, with some financial support provided through social payments.