Opinion Head - The Times Of Central Asia

Viewing results 25 - 30 of 356

Uzbekistan: From Silk Roads to New Horizons

Cradled by the embrace of the Syr Darya and Amu Darya Rivers, Uzbekistan boasts a rich tapestry woven from the threads of history. Being home to trade hubs like Samarkand and Bukhara, this land has been at the center of cultural exchange for over a millennia. From the Turkic-Mongol tribes creating the foundation of Uzbek civilization to the fall of the Soviet Union giving birth to the nation we know now, the history of Uzbekistan consists of a captivating blend of conquests and resilience. In 2016, following the demise of Islam Karimov, who ruled the country for 25 years, Shavkat Mirziyoyev came to power promising to lead Uzbekistan into a new and more progressive era. With a focus on modernization and reforms, Mirziyoyev envisioned bringing the nation out of his predecessor's repressive tenure and propelling it forward while honoring the country’s cherished traditions. With Uzbekistan trying to find its place in the modern world, the President has a significant duty to realize the nation’s potential found in its youthful population and strategic location. Mirziyoyev’s time in office has allowed the country to witness the beginning of a new chapter, with a special focus on economic and social reforms. The economy is on its way to becoming a modern market economy as reforms have opened the doors for foreign investors to direct their money into the country. Uzbekistan’s per capita income tells the story of a rising nation, reaching $1,705 in 2023, an increase of $100 compared to the previous year and a testament to the government's commitment to transforming towards a market-oriented economy. To create a conducive environment for businesses and especially foreign investors, the foreign exchange market was liberalized, and exchange rates were unified, bringing down tax rates for people and firms. The country has also allowed visa-free entry to attract tourists from around the world to their turquoise-domed cities and promote business and tourism. Coupled with all this, the country is also moving towards more relaxed trade policies, where it has opened previously closed borders with neighboring nations, including Kazakhstan, which is currently one of Uzbekistan’s top export destinations. With this modified attitude, the country’s role in international trade has dramatically evolved, making it a significant player in the Central Asian market. Over the past few years, the nation has shown great interest in joining the World Trade Organization (WTO), which will further improve its access to the global landscape. However, until Uzbekistan gains member status, the government hopes to boost their export capabilities by attracting foreign capital and technology through liberalizing trade and investment. Along with this, export permit and licensing requirements were also abolished for wholesale traders. While these measures have allowed the country to take a decisive step towards progression and development, several areas still necessitate immediate action, such as transportation networks and communication infrastructure, which are required to facilitate international trade. Previously, the country primarily focused on the export of cotton but is now expanding into other areas, including oil, gas, and gold. Another...

Central Asia Opinion Head Home

The New Silk Road

In light of the current geopolitical situation in the world, many countries are puzzled by the search for new alternative transport routes. One of these is the Trans-Caspian International Transport Route (TITR), which runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and further to Turkey and European countries. New transport corridors through which goods and raw materials can be exported by all modes of transport are a vital task for many countries, today. Such routes must first of all be safe, beneficial to all partners, and economically feasible. The TITR, or the “Middle Corridor”, as it is also called, falls into these criteria. It was conceived more than ten years ago and began operating in 2017. In recent years, this route has been experiencing a new round of development, and this is not surprising since it connects East and West whilst bypassing Russia. Today, this is a flagship cooperation project for many states. This transport artery, connecting China, Central Asia and Europe, can become a continental bridge of the Belt and Road, halving the time of cargo transportation and significantly reducing transport costs. The route encompasses 11,000 km of rail, and includes ten seaports. It originates in China at the port of Lianyungang, passing through Xi'an to Urumqi, through Kazakhstan - from the dry ports of Khorgos and Dostyk - to the ports of Aktau and Kuryk, the Azerbaijan (port of Alyat), Georgia (Tbilisi), and then through the Black Sea it continues onto Europe. It is noteworthy that this route is multimodal, that is, rail, sea and road transport can be used. The current capacity of the Trans-Caspian international transport route is 6 million tons per year. By 2025, it is planned to reach a level of 10 million tons per year. So, the potential is great. Assessing all possibilities, interested states intend to invest financial resources in the further development of this corridor and the expansion of its port and railway infrastructure, which will have a positive impact on the quality of services provided and reduce transportation times. Each side – China, Turkey, Azerbaijan and Kazakhstan – has its own benefit, and these countries have something to offer each other in much larger volumes than the current supplies. China intends to develop its western provinces, providing them with access to regional markets. Azerbaijan sees an opportunity to strengthen its transit role and become the largest transport hub. Türkiye, in turn, continues to extend its influence in Azerbaijan and Central Asia. As for Kazakhstan, there are fears that attacks by the Ukrainian Army on Russian oil refineries could lead to a blockage of the Caspian Pipeline Consortium (CPC), which supplies Kazakh oil to international markets. In this regard, a huge amount of work is being done to diversify, and the Trans-Caspian International Transport Route comes in handy here. The Kazakh company, KazMunaiGas has already purchased tankers, and there are agreements with Azerbaijan on access to the Baku-Supsa and Baku-Tbilisi-Ceyhan pipelines, through which Kazakhstan can transport about 2 million tons...

Central Asia Opinion Head Home

Taliban and its Neighbors: A Regional Format for Overcoming Challenges in Afghanistan and Beyond

The process of making Afghanistan an independent economic entity that can work constructively within globally accepted economic standards and formats will require addressing pressing security issues as well as strengthening regional partnerships and cooperation. In the long term, this will not only benefit the people of Afghanistan but also its neighbors, as well as the Central Asian republics, who still need to realize their full transit and transport potential to best respond to the world’s changing needs in a new geopolitical environment. While there is currently emphasis on increasing bilateral trade, this in itself will not cure the economic and other problems ailing Afghanistan. Strategic infrastructure projects, in particular, will play a key role in ensuring the long-term economic stability of this country. The Taliban Government is already reaching out to regional neighbors in a new way since it regained power in 2021. Some of the existing regional cooperation structures can be molded to provide a platform for dialogue and collaboration with Afghanistan. Modern realities dictate to the region the need to quickly overcome existing differences in intra-regional relations and create a new model. To this end, the states in the region surrounding Afghanistan should build a system of coordinated and cohesive measures and approaches with security as a key consideration, bringing Afghanistan into the fold to serve mutual interests through regional development. Rapprochement or a de facto relationship with regional states? Recently, the Taliban Government in Afghanistan has been fairly successful in developing cooperation with neighboring countries. It seems that, as opposed to focusing solely on isolation from the West, the current regime has chosen to start actively establishing ties with states in the region, placing the main emphasis of their foreign policy on regional governments who are more interested in pragmatism than ideological prerequisites when it comes to their affairs with Afghanistan. If, for Pakistan and Iran, various forms of cooperation with Afghanistan are historically understandable, then for the Central Asian republics, the Taliban’s openness to broader dialogue, along with the promotion of mutual economic interests, allows for the prospect of transforming the whole region into a fully-fledged, self-sufficient collective unit within the larger global system. To achieve this, Central Asian countries must still overcome narratives of the past, develop common approaches (including through regional formats), and practically see Afghanistan as a genuine partner. In the meantime, states in the region are largely acting intuitively rather than with a calculated strategic depth, or strictly weighing the benefits of building trade relations with Afghanistan’s new authorities. That said, regional players still follow different vectors and act according to their own circumstances despite a common desire to see a stable neighbor in Afghanistan. For Islamabad, for instance, the main trigger in relations with Kabul is the Pakistani Taliban, known as Tehrik-e-Taliban Pakistan, or TTP. Tehran, on the other hand, seeks to protect the Shiite minority in Afghanistan and see their participation in an inclusive government, but at the same time, builds dialogue with the Taliban, including on border security...

Opinion Head Uzbekistan Opinions Tajikistan Opinions Turkmenistan Opinions NEWS Opinions Kyrgyzstan Opinions Kazakhstan Opinions

How India is Becoming a Robust Soft Power in Central Asia

The middle-income trap, a pressing issue that has led to the stagnation of many successful developing economies, demands immediate attention. This trap, which occurs when a middle-income country can no longer compete internationally in standardized, labor-intensive goods due to relatively high wages, is a result of various factors, including countries most successful demographic characteristics. For instance, access to education has reduced birth rates due to an almost 100% literacy rate defined by 12 years of education. In the process, importing cheap manufacturing products has made local products uncompetitive. In such a situation, the country should have planned to upgrade current skill-based education to high-tech skills such as ICT, pharmaceuticals, etc. This shift to high-tech education holds immense potential for developing countries, offering a pathway out of the middle-income trap. Unfortunately, poor investment in developing high-tech education has led to an inadequate supply of a high-skilled workforce. Developed economies, such as the U.S. and a few European countries, are in an advantageous position to overcome such a trap due to their highly effective immigration policy. Developing countries, such as Brazil, Mexico, Argentina, the Philippines, and almost all Central Asian Republics, meanwhile, suffer. This will be further aggravated if the issue is not addressed urgently. Due to its geographic location and natural resource endowments, Central Asia, a diverse region with a mix of upper-middle and low-income countries, holds significant importance in the global economic landscape. Let's look at a specific case, such as Uzbekistan, a country whose population is growing at 1.3% per annum. Regarding age structure, the 0-14 age group makes up 30.1% of the population, the 15-64 age group 64.6%, and the 65-plus group constitutes just 5.3%. The country has achieved a high literacy rate, with 100% of the population completing 12 years of primary and higher secondary education. However, the country’s GDP per capita is relatively low, at US$ 3,209 (nominal term) and US$ 11,316 (PPP). The country's economy is dominated by the services sector, which contributes 48.4% to the GDP, followed by industry at 33.7%, and agriculture at 17.9%. The poverty line is set at less than US$ 3.2 per day, affecting 10% of the population. The country's labor force is distributed across sectors, with 25.9% in agriculture, 13.2% in industry, and 60.9% in services. The unemployment rate is 5.3%, and underemployment is a significant issue, affecting 20% of the population. The low supply of highly skilled workers challenges further increasing per capita income. The country will likely fall into this middle-income trap because it reaches a certain average income and cannot progress beyond that level. It seems helpful to mention some insights from this perspective. During Soviet times, the growth model of states was determined by their available resources, and Central Asia is rich in abundant resources. However, in most cases, primary resources were taken to other non-resource wealthy states for further value addition. So, the workforce was created in the respective states based on the concerned state's requirements. Workforce migration from one state to another was...

Home Opinion Head Features

The Priority of Maintaining a United and Stable Afghanistan

The issue of inter-ethnic relations in Afghanistan affects not only the country itself but also its surrounding region. Recent history has placed a heightened importance on the “nation” question in Afghanistan in terms of the country’s political and social stability. Since regaining power in 2021, the de facto Taliban authorities have focused primarily on social policies to respond to the people’s immediate needs as well as on implementing trade and economic cooperation with regional countries to realize the geo-economic potential of the country. To a large degree, they have been successful in these endeavors. The important question now is how the Taliban will work to synthesize various ethnic groups into a society that has a strong identity as a nation while preserving the Pashtun status quo and the legacy of Durrani statehood. Afghanistan in its current state is not ready for a federal structure, and outside actors pushing this now could possibly undermine its stability. On the other hand, the country and the wider region have a long history of diverse ethnic and national groups managing to find a way to coexist and function effectively. As the Afghan people try to overcome humanitarian crises and focus on their economic and social recovery, the Taliban’s strategy will likely continue to be based on the consolidation of ethnic groups around itself and under the umbrella of Islam, supported by measures of assimilation and expansion, as Pashtun rulers did in the country’s history. Understanding the historical role of ethnicity and nationality in Afghanistan So far, no modern regime in Afghanistan has been able to significantly advance the idea of “Afghan nationalism,” reflecting the national unity of the country’s people. Slogans about “one nation” have always been promoted by the capital, but did not necessarily reflect realities on the ground. The latest (2004) republican constitution states in its Article 4 that the Afghan nation consists of “Pashtuns, Tajiks, Hazaras, Uzbeks, Turkmen, Baluchis, Pashais, Nuristans, Aimaks, Arabs, Kyrgyz, Qizilbash, Gujars, Brahuis and other tribes,” and that the word “Afghan” applies to every citizen of Afghanistan. This multinational state has so far shown stability in its ethnic groups, but cannot demonstrate their synthesis into a society with a strong self-identification as the Afghan nation, and the term “Afghan” continues to serve as an exonym, a general name for the inhabitants of the country. After regaining power in 2021, the Taliban worked to stop a bloody civil war that had begun in 1978, but faced a set of problems including the big “national question.” Against the backdrop of demands from the international community to ensure an inclusive government, the idea of federalism is once again being brought up in information spheres, which, according to its few supporters, presents the only way to ensure long-term peace in this diverse country. Discussions about federalism in Afghanistan are not new and are largely connected to events in recent history, primarily the civil war that began in 1978 with the “April Revolution.” That said, there has not been enough technical analysis...

Central Asia Opinion Head Home Business & Economy Kazakhstan Kazakhstan International Affairs Opinions Kazakhstan Business & Economy Features Kazakhstan Opinions

The Middle Corridor: How Kazakhstan is Carving its Niche in Europe-Asia Transport

In the aftermath of the pandemic and amid rising geopolitical tensions and sanctions – leading to the breakdown of traditional shipping and logistics chains – the need to develop new, alternative routes for trade has gained particular importance. One such route is the Middle Corridor, or Trans-Caspian International Transport Route, which has become a priority project for Kazakhstan and its neighbors. In this overview we look at the prospects for this multi-modal transnational route. The Trans-Caspian International Transport Route (TITR), or Middle Corridor, starts in China, passes through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and Turkey, before reaching Europe. Last year, more than 2.7 million tons of cargo was transported along the TITR, up 86% on 2022, whilst it is expected to carry 4 million tons this year. Drivers of growth This growth in volumes has been facilitated by the conflict in Ukraine and restrictions on the transport of goods through Russia, which previously represented the main land route connecting East and West. As a result, in 2022 the volume of container traffic via the TITR grew 33% year-on-year. In addition, amid the geopolitical tensions that have effected the safety of traversing the Suez Canal and the Red Sea – the central and shortest trade route between Asia and Europe – many shipping companies have been forced to go around the southern tip of Africa. This has led to an increase of 14-18 days in the delivery time of goods, as well as additional costs. Because of attacks by Houthi rebels, the number of container ships passing through the Suez Canal each week was down 67% year-on-year in 2023, according to the UN. Meanwhile, in the first two months of 2024, trade volumes along the route decreased 43%. According to data from the UN Conference on Trade and Development, last year the cost of transporting goods from Shanghai to European countries by sea roughly tripled. At the same time, shipping goods by rail from inland Chongqing to Europe was a third cheaper than by sea. Experts note that over the past decade, the total cost of transporting goods between China and Europe by rail has fallen 30%. All this opens wide opportunities for the further development of the TITR, which should be taken advantage of by countries along the route. Middle Corridor countries working together Today, to ensure safe and uninterrupted exports, as well as to attract more flows through Kazakhstan and other TITR countries, measures are being taken. Indeed, the route is considered a strategic initiative for the development of the entire region’s transport potential. During a recent visit to Azerbaijan, Kazakh President Kassym-Jomart Tokayev said that in the future the volume of cargo transported via the TITR should increase to 10 million tons, which is to be facilitated now by both existing demand and technology. At the end of 2022, a roadmap for 2022-27 was signed to eliminate bottlenecks along the route in Kazakhstan, Azerbaijan and Turkey, while to boost the volume of cargo transported by rail a...