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Kazakhstan Leads Central Asia in Average Salaries

Kazakhstan continues to hold the top position in terms of average wages among Central Asian countries, according to a study conducted by analysts at Ranking.kz. Wage Comparisons Across Central Asia Data from the Interstate Statistical Committee of the CIS reveals that as of September 2024, Kazakhstan's average nominal monthly salary stood at $817.20. This figure is nearly twice as high as in Uzbekistan ($437.80) and Kyrgyzstan ($411.20). Tajikistan trails significantly behind, with an average salary of just $242.80 - 3.4 times lower than Kazakhstan’s. Notably, the wage gap between Kazakhstan and Tajikistan would have been even greater if not for a significant increase in Tajik wages. Over the past year, nominal salaries in Tajikistan rose by 24.9%, while real wages increased by 21.1% - the highest growth rate in the region. In comparison, wage growth in Kazakhstan, Kyrgyzstan, and Uzbekistan was more moderate. Data on salaries in Turkmenistan remains unavailable as the country has not updated its wage statistics since 2023. Minimum Wage Comparison Kazakhstan also leads the region in terms of minimum wages. In 2024, the minimum wage in Kazakhstan is 85,000 KZT ($181.10). By contrast: In Uzbekistan, the minimum wage is $89.40. In Tajikistan, it is $54.90. In Kyrgyzstan, it is just $28.30. In Turkmenistan, the official minimum wage is reported as $402.90, based on the fixed exchange rate of 3.5 TMT per dollar. However, due to the country’s reliance on a "black market" exchange rate (approximately 19 TMT per dollar), the actual minimum wage is estimated to be much lower, around $74.20. Sectoral Analysis When analyzing nominal salaries by economic sector, the highest wages in the region are found in finance and insurance. In Kazakhstan, the average salary in this sector exceeds $1,700 - three times higher than in Tajikistan ($561.90). Workers in Kazakhstan's mining industry also enjoy high incomes. In Uzbekistan and Kyrgyzstan, the financial sector and IT industry offer the highest salaries. Meanwhile, in Tajikistan, relatively high wages are reported in the manufacturing and service sectors. Inflation and Its Impact Inflation remains a key factor affecting the real purchasing power of wages across Central Asia. According to the CIS Interstate Statistical Committee, the most significant price increases in 2024 occurred in the economically developed countries of the region - Kazakhstan and Uzbekistan. Uzbekistan: Inflation reached 7.7% in October 2024. Kazakhstan: Inflation stood at 6.6%. Kyrgyzstan: Inflation was lower at 4.2%. Tajikistan: The region’s lowest inflation rate was recorded at 3.2%. These inflation rates directly influence the population's purchasing power, even in countries with higher nominal salaries like Kazakhstan and Uzbekistan. Kazakhstan’s leadership in wages and minimum income underscores its position as the most economically advanced country in Central Asia. However, inflation and significant disparities in income distribution between sectors and regions remain challenges. While countries like Tajikistan are showing progress in wage growth, the overall gap in earnings between Central Asian nations continues to highlight economic inequalities within the region.

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Central Asia’s Economic Growth to Reach 5% in 2025

The World Bank’s Global Economic Prospects report offers projections for economic growth, risks, and challenges across Europe and Central Asia (ECA), highlighting mixed outcomes for the region as a whole. Regional Outlook Economic growth across ECA is projected to slow to 2.5% in 2025, with a modest recovery to 2.7% expected in 2026. This deceleration is largely attributed to weaker economic activity in Russia and Turkey, two key regional economies. Excluding these two countries and Ukraine, growth in the rest of the region is forecasted to average 3.3% in 2025-2026. The recovery in these areas will primarily be driven by private consumption and investment, as inflationary pressures ease and monetary policies gradually become less restrictive. Despite these projections, significant risks remain. Global policy uncertainty and potential changes in trade policies could negatively affect trade flows, capital investments, and economic growth. Geopolitical tensions - particularly stemming from Russia’s invasion of Ukraine - and persistent inflation in the region could also pose serious challenges to stability. Central Asia: A Bright Spot Central Asia is expected to outperform the broader ECA region, with growth projected to accelerate to 5% in 2025 before softening to 4.2% in 2026. This growth will be driven by increased oil production in Kazakhstan, which will serve as a critical engine of recovery for the region. Remittances will also continue to play a key role, particularly for Kyrgyzstan and Tajikistan. These inflows provide vital support to household consumption and help improve current account balances. However, international sanctions on Russia and financial restrictions on cross-border transfers could push some remittance flows into informal channels, potentially limiting their economic impact. Long-Term Challenges While short-term recovery appears promising, the ECA region’s long-term growth potential remains subdued. Between 2022 and 2030, annual growth is projected to average just 3.0%, down from 3.6% in the previous decade. Several factors contribute to this slowdown, including labor shortages caused by low workforce participation rates, aging populations, and significant emigration, particularly from the Western Balkans. Education remains a critical area for improvement. Although ECA boasts relatively strong educational systems, issues such as declining quality in higher education and ongoing brain drain have hindered human capital development. Addressing these issues and improving education systems could help the region move closer to high-income economies in the long term. Conclusion While Central Asia’s projected growth for 2025 presents an optimistic outlook, the region - and ECA as a whole - faces significant headwinds. Structural challenges, geopolitical instability, and demographic pressures will require governments to adopt forward-looking policies to sustain growth and promote resilience. As inflation cools and monetary policies ease, targeted investments in education and workforce development could unlock new opportunities for long-term economic stability.

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Russian Foreign Ministry Responds to Turkmen Displeasure Over ‘Second Turkmenbashi’ Article

The Russian Foreign Ministry has issued a statement following a controversial article in Nezavisimaya Gazeta that drew criticism from the Turkmen leadership. On January 12, the newspaper published an article titled "Neutrality Turned Out to Be an Excuse for Strengthening the Personality Cult of the 'Second Turkmenbashi.'" The piece compared former president Gurbanguly Berdimuhamedov to his predecessor, Saparmurat Niyazov, who was the subject of a personality cult during his rule over Turkmenistan from 1985 to his death in 2006. Niyazov often called himself "Turkmenbashi" (father of the Turkmen). The Nezavisimaya Gazeta article quoted Arkady Dubnov, an expert on post-Soviet affairs, in relation to a meeting of the Organizing Committee for the 30th anniversary of Turkmenistan's neutrality. During the event, Turkmen Foreign Minister Rashid Meredov reportedly referred to Berdimuhamedov as the “father of the nation.” Dubnov, a critic of authoritarian regimes, remarked that the event symbolized “the birth of another father of the nation on the ruins of the USSR.” The article was subsequently removed from Nezavisimaya Gazeta's website, but not before it provoked discontent in Ashgabat. In response, the Russian Foreign Ministry issued a clarification. In a statement on its official website, the ministry emphasized that "The assessments given in the article have nothing in common with the official position of Russia and do not reflect the high status of ties between our friendly countries." This incident highlights a pattern in which the Russian Foreign Ministry has distanced itself from media outlets over publications that anger foreign governments. Similar cases have occurred in the past, underscoring the delicate balancing act Moscow maintains with its partners in post-Soviet space.

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American Musicians Celebrate the Dutar During Tour of Turkmenistan

The Turkmen dutar, a two-stringed lute, and symbol of the nation’s musical heritage, left a lasting impression on American artists visiting Turkmenistan on a recent tour. Musicians Keith Bass, Aaron Young, and Richard Steighner praised the uniqueness of Turkmenistan’s traditional music during their performances as part of the “Broadway and Beyond” concert series. The tour began with its first concert on January 16 at the Mukam Palace in Ashgabat. The American performers shared the stage with the State Symphony Orchestra of Turkmenistan, led by conductor Rasul Klychev, and soloists from the State Choir. The concert program featured a mix of popular Broadway melodies and innovative interpretations of the works of Makhtumkuli Fraghi, the national Turkmen poet. A standout moment of the evening was the performance of “I Want to Feel the Wind,” a song based on Makhtumkuli’s poetry and composed especially for the tour. Beatboxer Richard Steighner highlighted the creative synthesis of styles that emerged during the collaboration. “Blending my beatboxing with the soft yet rich sound of the dutar was an unforgettable experience,” Steighner said. “The beauty of Turkmen music is astounding, and the dutar was a true revelation for us. We even incorporated it into an original piece, creating a unique fusion of traditional melodies and modern trends.” Keith Bass, another member of the ensemble, emphasized the value of cultural exchange. “Working with Makhtumkuli’s works gave us an opportunity to view music through a new lens. Every concert here has become a platform for creative experimentation,” Bass said. U.S. Ambassador to Turkmenistan Elizabeth Rood, who attended the Ashgabat performance, highlighted the role of cultural events in fostering international understanding. “Music and culture are bridges that unite people. We will continue to support projects that preserve cultural heritage and serve as symbols of friendship and trust,” Rood said. Following the debut in Ashgabat, the “Broadway and Beyond” series will continue with performances in Turkmenbashi, Balkanabad, and Dashoguz.

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19th-Century Historic Building Under Demolition in Turkmenistan

The demolition of a 19th-century historic building, formerly the History and Local History Museum and originally a Shiite mosque named after Haji Myalik, has begun in the city of Turkmenabat. Constructed in the 19th century, this architectural landmark was a vital part of Turkmenabat's cultural heritage for decades. The building served as a museum starting in 1967, but in 2011, after more than 40 years, its exhibitions were relocated to a new facility built specifically for that purpose. Despite the building’s historical significance, local authorities opted against restoration or handing it over to the Muftiyat (the official Islamic authority) and instead decided to demolish it. A Unique Architectural Legacy The architectural design of the former Haji Myalik Mosque was distinctive and highly regarded in the region. Tourist guides described it as one of Turkmenabat's most striking landmarks. The facade featured intricate brickwork, three semicircular arches, a prominent high portal, and two small towers capped with pointed domes in Ottoman architectural style. On the right side of the facade stood a minaret with a metal dome, once the tallest vantage point in Chardjui (the historic name of Turkmenabat). Today, this iconic structure is being dismantled piece by piece. The roof has already been removed, and the demolition process is ongoing. A Worrying Trend The demolition of historic buildings in Turkmenistan is not a new phenomenon and has raised alarm among residents and cultural heritage experts. In Ashgabat, the capital, numerous old buildings of historical and cultural importance have been destroyed over the years. Notable examples include the buildings of Karakumstroy, Hotel Turkmenistan, the Turkmenhovayollary Department, and the public garden featuring a monument to N. Aitakov. [caption id="attachment_27727" align="aligncenter" width="2560"] Ashgabat- A row of marble towers in Berzengi; image: TCA, Stephen M. Bland[/caption] A moderately young metropolis, its appellation meaning "City of Love" in Persian, Ashgabat developed around a Russian garrison during the 1880s. Leveled in the earthquake of 1948, prefab Soviet blocks soon sprung from the debris. Shaping his vision, former President Niyazov had these kommunalkas torn down and replaced by boxy, flat-topped marble towers with dazzling, reflective windows. Largely of a uniform eleven storys, their showy ostentation lacks any semblance of functionality, with endless ministry buildings standing unoccupied, overpriced residential blocks home to the affluent few. In 2021, authorities began demolishing four-story residential buildings at the intersection of Turkmenbashi and Atamurat Niyazov avenues, a move that drew criticism from citizens. Experts warn that such actions could result in the irreversible loss of the country’s unique architectural heritage. As the dismantling of the former Haji Myalik Mosque continues, concerns grow about the preservation of Turkmenistan's historic and cultural landmarks, many of which are disappearing under the pressure of modernization.

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First Kilometers of TAPI Gas Pipeline Completed in Afghanistan

The first three kilometers of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline have been successfully laid in Afghanistan, according to Mohammed Murad Amanov, the executive director of TAPI Pipeline Company Ltd. Amanov stated that the construction is progressing rapidly, raising hopes for the timely completion of the project. Deputy Governor of Herat Province, Nakibullah Ayub, visited the construction site and confirmed that local authorities are fully prepared to support the project's swift advancement. So far, 3.4 kilometers of the pipeline route in Afghanistan have been prepared, aligning with the established schedule. The Afghan section of the TAPI pipeline, which spans 821 kilometers, officially began construction in September 2024. To date, technical surveys have been completed on 153 kilometers of the route, and the initial three kilometers of pipeline were laid within four months. TAPI is a landmark regional energy project that aims to transport natural gas from Turkmenistan’s Galkynysh gas fields to consumers in Pakistan and India, passing through Afghanistan. The project is expected to enhance economic stability in the region and attract significant foreign investment. Economic experts have highlighted the strategic importance of the TAPI pipeline for Afghanistan. Analyst Mohammad Asif Stanekzai remarked that the project could boost Afghanistan’s economic credibility and pave the way for increased foreign capital inflows. Additionally, Afghanistan is projected to earn approximately $400 million annually in transit fees. Last week, Afghanistan’s Acting Minister of Mines and Petroleum, Hidayatullah Badri, held discussions in Kabul with Mohammed Murad Amanov about the progress of the TAPI pipeline and strategies to expedite the remaining work.