TCA
ASTANA (TCA) — During the meeting of the Kazakh-Chinese Business Council on June 8 in Beijing, with the assistance of Kazakh Invest National Company for Investment Support and Promotion, an agreement on cooperation was signed to implement projects in the field of renewable energy (solar and hydro) in Kazakhstan using domestic solar cells (KazPV), Kazakh Invest reported.
TCA
ASTANA (TCA) — On June 8 in Beijing, during the meeting of the Kazakh-Chinese Business Council, 40 economic documents were signed for a total of about 13 billion US dollars, 15 of them with the assistance of Kazakh Invest National Company for Investment Support and Promotion. According to these agreements, new high-tech production in the sector of engineering, biotechnology, and other spheres are planned to be launched in Kazakhstan, Kazakh Invest said.
TCA
KABUL (TCA) — On June 10, the Government of Afghanistan launched a new policy strategy aimed at spurring growth and job creation by boosting the export capacities of the country’s private sector and stepping up trade with regional and global markets. The National Export Strategy (NES), titled ‘Peace through Prosperity, Prosperity through Trade’ is the product of multiple rounds of consultations with businesses and other stakeholders across the country led by the Ministry of Industry and Commerce together with the Afghanistan Chamber of Commerce and Industries, the Delegation of the European Union to Afghanistan reported.
TCA
BISHKEK (TCA) — Chinese President Xi Jinping ushered Pakistan and India into the political and economic bloc led by China and Russia as the Shanghai Cooperation Organization (SCO) summit took place in the northern Chinese port of Qingdao on June 9 and 10, RFE/RL reported.
Maria Levina
BISHKEK (TCA) — Well-developed infrastructure is a critical factor in economic development, international experts say. Motor roads in Central Asia require significant repairs, the OECD Central Asian Analytical Network reports, adding that 60% of roads in Kyrgyzstan, 54% in Kazakhstan, 48% in Tajikistan and 23% in Uzbekistan do not have asphalt or concrete cover.
The Central Asian states impose their infrastructural hopes on China’s One Belt, One Road initiative, in which Central Asia is of key importance. But it should not be forgotten that the growth of public external debt (PED) to China is rapid there, especially in Tajikistan and Kyrgyzstan, where the PED growth is exceeding the safe level, which imposes certain risks and obligations on bilateral cooperation.
According to the Global Competitiveness Index for 2017/18 presented by the World Economic Forum, Tajikistan ranks 70th out of 137 world economies in terms of the road quality. The country scored 4.1 out of 7 points, and ranked the highest in Central Asia above Kazakhstan (115th) and Kyrgyzstan (122nd). No ranking was provided for Uzbekistan.
Most roads in Tajikistan were rebuilt after the collapse of the Soviet Union. The main exception is in Gorno-Badakhshan Autonomous Province (GBAO), where Soviet-era roads are in poor condition, Asia-Plus IA reported.
To compare, Kazakhstan held the 107th place a year ago. This year, Russia rose to 114th place from the 123rd in the previous survey.
The WEF experts also noted the trend towards improving the quality of roads in Kyrgyzstan.
The transport infrastructure is actively developing in the country, Economy Minister of Kyrgyzstan Oleg Pankratov said. In 2017, 566.7 kilometers of public roads were repaired. About 540 kilometers are planned to repair this year.
Within investment projects, construction of 146 kilometers of highways will be completed to connect international transport corridors.
Toll roads in Kyrgyzstan
In Central Asian countries, roads are the main means of communication. The states allocate some funds for their construction and maintenance, but they are critically lacking. To find money, the governments decided to introduce toll roads.
Since 2019, fees for the use of certain roads may be introduced in Kyrgyzstan, and the Minister of Transport and Roads is currently harmonizing regulatory documents, Minister Jamshitbek Kalilov said. To reduce the burden on the state budget and as part of the road development strategy, the Transport Ministry intends to introduce 26 kilometers of toll roads in 2018 and to bring this figure to 500 kilometers by 2025.
The Kubaky–Kochkor road in the Naryn province, the North–South alternative road and the Bishkek–Tokmak bypass route will be the toll ones.
Currently, all roads in Kyrgyzstan are free, except for the tunnel at the Too-Ashuu Pass at the Bishkek–Osh road.
To reduce the personal participation in accepting payments for road travel, and therefore the possibility of corruption, the Transport Ministry installs automated systems for accepting payments at two checkpoints at the Bishkek–Osh highway. Payment will be made through the bank payment systems.
Toll highways in Kazakhstan
Kazakhstan plans to increase the share of toll roads of state importance up to 72% by 2023.
This year, the country continues implementation of 23 projects to reconstruct 4.2 thousand kilometers of highways of national importance. The construction of the Center–South corridor between Astana and Almaty and the Center–East corridor between Astana and Ust-Kamenogorsk will continue.
Local population often complains about the road quality. Uneven distribution of funding is the main cause of the situation, experts say. Money was allocated primarily to the highways of national importance, while the regional roads were financed by a residual principle. Corruption and a chain of intermediaries are the other causes of the problems, informburo.kz reports.
This year, it is planned to introduce about 500 kilometers of toll roads. There is now only one toll road, Astana – Schuchinsk, in Kazakhstan.
The cost of road construction is manifolds higher in Kazakhstan compared to other countries, informburo.kz said. Thus, the construction of one kilometer of roads in Kazakhstan costs an average of $3.7 million, while in the US – $2.4 million, in Spain – $1.6 million, in Finland – 1.4 million, and in China – $1.2 million.
Roads in Bishkek
According to the first phase of the road improvement project implemented through China’s grant, the works carried out at 11 streets have been 70% completed, including the busiest sections of Bishkek roads on Chui Avenue near the Osh Bazaar and along the Southern Highway, the Bishkek city administration said.
The reconstruction of the remaining roads will be completed by October 2018. In parallel, the second project on reconstruction of street network development is underway, and existing roads are reconstructed and expanded, including seven bridges. Implementation of the two projects will improve the city traffic and ecology.
Protracted construction
To continue repair of the road along to the resort area of Issyk-Kul Lake (Balykchy–Tamchy– Cholpon-Ata–Corumdu), 700 million soms were allocated, which is 60% of the total state funds for the reconstruction of roads in Kyrgyzstan for 2018.
Construction of the highway has been continuing since 2015. During this time, the 104 km road was rebuilt only by 34%.
At such rates, the facility’s construction is becoming protracted, although initially it was announced as the main road project to be fully executed at the expense of the state budget.
The State cannot complete the road due to the lack of financing. Initially, the construction of the road was planned for the money from the sale of the MegaCom mobile operator but the state-owned company has not been sold so far.
According to official figures, the total construction cost of the Balykchy–Corumdu highway exceeds 2.7 billion soms. Of these, 140 million were transferred to the general contractor, the Chinese company Longhai Road & Bridge Co., Ltd. this year.
TCA
BISHKEK (TCA) — The Publisher’s note: Throughout the 19th and 20th centuries, Central Asia was the scene of intense geopolitical struggle and the Great Game between the British and Russian Empires, and later between the Soviet Union and the West, over Afghanistan and neighboring territories. Into the 21st century, Central Asia has become the area of a renewed geopolitical interest, dubbed the New Great Game, largely based on the region’s hydrocarbon and mineral wealth. On top of that, the region now is perhaps the most important node in the implementation of China’s One Belt, One Road initiative through which Beijing aims to get direct access to Western markets. Every week thousands of news appears in the world’s printed and online media and many of them may escape the attention of busy readers. At The Times of Central Asia, we strongly believe that more information can better contribute to peaceful development and better knowledge of this unique region. So we are presenting this Weekly Digest which compiles what other media have reported on Central Asia over the past week.
KAZAKHSTAN
Kazakhstan Confronts China Over Disappearances
In the issue of the rights of ethnic Kazakhs in China, Astana is walking a tightrope trying to maintain good relations with Beijing
June 1 — “Kazakhstan’s Foreign Ministry has finally raised the issue of its missing new citizens with Chinese authorities. For many months, some ethnic Kazakhs who took advantage of offers of “repatriation” from Kazakhstan’s government and are now Kazakh citizens have crossed back into China, usually to the neighboring Xinjiang Uyghur Autonomous Region, as part of their business, or to visit relatives, or to take care of unfinished business, and then disappeared.” READ MORE: https://www.rferl.org/a/qishloq-ovozi-kazakhstan-confronts-china-over-disappearances/29266456.html
Kazakhstan’s returnees frustrated by cold shoulders
Despite the official welcome policy of Kazakhstan’s authorities, ethnic Kazakhs that have returned to their historical homeland from neighboring countries experience hardships and often face unwelcome attitudes from the local population
June 5 — “The joy that Tursynzhan Yesenalyuly felt in moving to his ethnic homeland of Kazakhstan from China four years ago wore off pretty quickly. Yesenalyuly, 44, lives with his three-year-old daughter in a cramped rented house in the village of Teskensu, around 80 kilometers east of Almaty, the business capital.” READ MORE: https://timesca.com/index.php/news/19835-kazakhstan-s-returnees-frustrated-by-cold-shoulders
Kazakhstan’s importance as global political player is growing, says German envoy
Germany’s Ambassador to Kazakhstan on the relations between the two nations
June 6 — “Kazakhstan’s non-permanent membership on the United Nations Security Council, its hosting of the Astana Process Syrian peace talks and contributions to negotiations on the Iranian nuclear deal have increased Kazakhstan’s international influence” READ MORE: https://astanatimes.com/2018/06/kazakhstans-importance-as-global-political-player-is-growing-says-german-envoy/
Major plans for Hong Kong-style hub in Central Asia revealed
The International Financial Centre of Astana will be officially inaugurated on July 5
June 7 — “Wheels are in motion to set up a Hong Kong-type financial hub in Kazakhstan, following the unveiling of plans by the governor of the Astana International Financial Centre (AIFC) at an international conference marking the 20th anniversary of Astana, on 5 June.” READ MORE: https://www.euractiv.com/section/central-asia/news/major-plans-for-hong-kong-style-hub-in-central-asia-revealed/
KYRGYZSTAN
Top manager of major mining company under house arrest in Kyrgyzstan
The situation around one of the largest investors in Kyrgyzstan’s mining industry may force potential investors to invest in other countries with fewer risks
June 3 — “‘We appreciate all investors who conduct their business in Kyrgyzstan, but often problems arise from the work of companies’ top managers who sometimes carry out illegal activities,’ Secretary of the Security Council of Kyrgyzstan Damir Sagynbaev said at a press conference in Bishkek on May 31. He was commenting on the situation around the detention of Ilyas Tulekeyev, General Director of KAZ Minerals Bozymchak, which caused great resonance in the country and abroad.” READ MORE: https://timesca.com/index.php/news/19825-top-manager-of-kazakh-mining-company-under-house-arrest-in-kyrgyzstan
India and Kyrgyzstan deepen their military cooperation
India is making inroads to Central Asia to counterbalance the growing influence of China in the region. India’s military cooperation with Kyrgyzstan can therefore be considered as part of such efforts
June 4 — “On May 14, Indian and Kyrgyzstani alpine special forces troops began a two-week joint training exercise at Kyrgyzstan’s Military Base 20636. The exercise included both lectures and practical classes on tactical, mountain and fire training, as well as survival techniques in mountainous conditions (AKIPress, May 21). The exercise is the second joint Indian-Kyrgyzstani military drill of 2018 and the latest in a series of discrete increasing bilateral military contacts over the past seven years.” READ MORE: https://timesca.com/index.php/news/19830-india-and-kyrgyzstan-deepen-their-military-cooperation
GM Uzbekistan plans to launch car assembly in Kyrgyzstan
GM Uzbekistan plans to assemble its Nexia (R3) cars in Kyrgyzstan, with the priority area for the location of production being the city of Osh
June 5 — “GM Uzbekistan is working on the issues of launching the assembly of its cars in two cities of Kyrgyzstan – Osh and Bishkek. “We signed a memorandum with the Kyrgyz side on increasing sales of our cars, including through a potential assembly organization. This is one of the priority markets for us, as a new transport corridor Uzbekistan – Kyrgyzstan – China was recently opened. This route is interesting from the side that shortens the travel time for our components, and, naturally, the assembly of the car will be cheaper,” head of Uzavtosanoat Umidzhan Salimov said.” READ MORE: https://www.azernews.az/region/133018.html
Kyrgyzstan Navigates Domestic Political Firestorm, Hopes to Avoid Burning China
The corruption scandal concerning the breakdown of the Chinese-modernized Bishkek Heating and Power Plant should not affect Kyrgyz-Chinese relations, Bishkek says
June 7 — “With arrests, the investigation stemming from the breakdown of the Chinese-modernized Bishkek Heating and Power Plant earlier this year has entered a new phase. Meanwhile, Kyrgyz President Sooronbay Jeenbekov is in China for a state visit, hoping to keep the bilateral relationship insulated from the firestorm building back home and former President Almazbek Atambayev has denounced a “witch hunt” against his allies.” READ MORE: https://thediplomat.com/2018/06/kyrgyzstan-navigates-domestic-political-firestorm-hopes-to-avoid-burning-china/
TAJIKISTAN
Tajikistan students in China warm to people-to-people engagement
China’s influence in Tajikistan is growing in many areas — from the economy and investment to education and people-to-people contacts
June 6 — “A key area of cooperation among members of the Shanghai Cooperation Organization involves people-to-people exchanges. At Shandong University’s Qingdao Campus, two students from Tajikistan have gained not only a better understanding about China but also deepened their friendship with the Chinese community.” READ MORE: https://news.cgtn.com/news/3d3d774d7851544f77457a6333566d54/share_p.html
ADB recommends Tajikistan for better financial inclusion
Tajikistan is advised that its financial institutions use new financial technology products, including mobile banking and the Internet
June 6 — “ADB’s paper Financial Inclusion, Regulation, Financial Literacy, and Financial Education in Tajikistan recommends for a better financial inclusion in Tajikistan. ADB suggests to guarantee macroeconomic stability in the country; refrain from trying to regulate TJS exchange rate/US dollar” READ MORE: https://www.devdiscourse.com/Article/21916-adb-recommends-tajikistan-for-better-financial-inclusion
Tajikistan: no laughing matter as comedian journalist goes on trial
In Tajikistan, authorities routinely use law enforcement agencies and courts to “punish” those who dare to oppose those in power
June 8 — “The criminal trial of well-known journalist and comedian in Tajikistan is set to open this week, to the almost complete indifference of colleagues and the international community. Activists following the case against Khairullo Mirsaidov have called it a sobering reminder of the Tajik authorities’ success in terrifying the population into submission and compliance.” READ MORE: https://timesca.com/index.php/news/19850-tajikistan-no-laughing-matter-as-comedian-journalist-goes-on-trial
TURKMENISTAN
Turkish Company Complains About Turkmenistan’s Empty Pockets
A Turkish company claims Turkmenistan has not paid up for completed contracts in the country
June 4 — “Turkmenistan’s golden age is turning out to be quite a lackluster era, rife with disasters on the economic and environmental fronts. As Turkmen dust salt off their crops (literally), the country’s Turkish business partners have begun airing complaints that Ashgabat isn’t paying its bills.” READ MORE: https://thediplomat.com/2018/06/turkish-company-complains-about-turkmenistans-empty-pockets/
Turkmenistan’s vicious cycle
In its ‘Akhal-Teke: A Turkmenistan Bulletin’, Eurasianet reviews the main news and events in the Central Asian country for the previous week
June 5 — “The president of Turkmenistan’s love affair with the bicycle has been elevated to a matter of state. On June 1, two days ahead of World Bicycle Day, 3,246 riders embarked on a mass jaunt that state media reported had earned the nation another entry in the Guinness Book of World Records.” READ MORE: https://eurasianet.org/s/turkmenistans-vicious-cycle
Turkey’s support is a key to prosperity of Turkmenistan
Due to its strategic location, Turkey could help Turkmenistan to start export of Turkmen natural gas to Europe
June 6 — “Turkmenistan remains one of the most promising suppliers of natural gas to Europe. The obvious advantage of the Turkmen hydrocarbon deposits is that most of them are concentrated in the central part of the country – about 80% of the whole production line.” READ MORE: http://vestnikkavkaza.net/analysis/Turkey-s-support-is-a-key-to-prosperity-of-Turkmenistan.html
How Much Does $1 Cost In Turkmenistan?
Turkmenistan has seen decreasing foreign-currency revenues due to decreasing natural-gas exports
June 7 — “The exchange rate of Turkmenistan’s manat to the U.S. dollar has witnessed several significant drops since 2015.” READ MORE: https://www.rferl.org/a/how-much-does-dollar/29278213.html
UZBEKISTAN
Will an Ascendant Uzbekistan Challenge Kazakhstan’s Leadership in Central Asia?
The rise of President Mirziyoyev to power in Uzbekistan, a country rich with untapped potential, could signal a shift in Central Asian geopolitics, including changes to Kazakhstan’s current status as the region’s powerhouse, an author says in an opinion piece
June 4 — “U.S. President Donald Trump met with President Shavkat Mirziyoyev of Uzbekistan on 16 May, an important breakthrough after the isolationism of the Karimov regime. What is noteworthy about the meeting is that President Mirziyoyev is the second Central Asian leader that President Trump has met so far this year, after a meeting with President Nursultan Nazarbayev of Kazakhstan which took place in January.” READ MORE: https://www.geopoliticalmonitor.com/will-an-ascendant-uzbekistan-challenge-kazakhstans-leadership-in-central-asia/
Aliens Or Uzbekistan? World Chess Chief Offers New Theory About Game’s Origins
Ilyumzhinov said FIDE was preparing an official appeal to the International Olympic Committee to recognize Uzbekistan as the birthplace of the game of chess
June 5 — “The head of the world governing body for chess has this to say about the origins of the centuries-old game played by shahs, sultans, kings, and emperors: It originally came from Uzbekistan.” READ MORE: https://www.rferl.org/a/aliens-or-uzbekistan-world-chess-chief-offers-new-theory-about-game-s-origins/29273897.html
A new era in US-Uzbekistan relations poses old challenges for the international community
If Uzbekistan does not reform its governance system to better protect against corruption, it will become mired in crony capitalism, analyst says
June 5 — “President Trump’s meeting with Uzbekistan’s President Shavkat Mirziyoev brought a sudden end to the country’s international isolation this month, opening the door to new investment opportunities and the possibility of a renewed strategic military partnership, vital to the American war effort in Afghanistan.” READ MORE: https://www.opendemocracy.net/od-russia/alisher-ilkhamov/a-new-era-in-us-uzbekistan-relations
Uzbekistan Does Not Drift Among Great Powers
Tashkent’s engagement with Washington does not undercut its relations with Moscow and Beijing
June 5 — “The recent official visit of the president of Uzbekistan, Shavkat Mirziyoyev, to the United States on May 15-17 has been hailed as a historic trip paving the ground for “a new era of strategic cooperation” between the two countries.” READ MORE: https://thediplomat.com/2018/06/uzbekistan-does-not-drift-among-great-powers/
AFGHANISTAN
What comes next in Afghanistan?
17 years after America’s intervention in Afghanistan, and nearly one year on from the rollout of President Trump’s new strategy, the situation looks depressingly familiar, if not worse, a national intelligence fellow at the Council on Foreign Relations believes
June 4 — “Lost amid the intense media focus on the upcoming talks with North Korea and other pressing international issues is the conflict in Afghanistan, which at times appears to be an afterthought. That is unfortunate because it seems to have taken a turn for the worse.” READ MORE: http://thehill.com/opinion/international/390618-what-comes-next-in-afghanistan
The Future of Special Economic Zones in Afghanistan
How the Trump administration’s new South Asia Strategy changes the plan for establishing SEZs in Afghanistan
June 6 — “The concept of special economic zones in Afghanistan is not intentional, rather accidental. The scheduled withdrawal plan of U.S. and NATO forces in 2014 left a huge amount of infrastructure to Afghan forces. This included $2 billion worth of infrastructure and equipment at eight strategic airfields in the country, equipped with sophisticated machinery and a well-developed infrastructure.” READ MORE: https://thediplomat.com/2018/06/the-future-of-special-economic-zones-in-afghanistan/
India and China Are Converging on Afghanistan
Afghanistan has emerged as a platform for new possibilities in India-China cooperation
June 7 — “The “informal summit” between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping at Wuhan in China in late April generated worldwide interest. Aimed at sidestepping contentious issues and enhancing greater strategic communication at the leadership level, the summit witnessed the two leaders recognizing the “common threat” of terrorism and expressing commitment to cooperate on counter-terrorist measures.” READ MORE: https://besacenter.org/perspectives-papers/india-china-afghanistan/
NOT SO QUIET ON THE WESTERN FRONT: THE SNOWBALL EFFECT IN AFGHANISTAN
Iran’s ongoing frustrations over water rights with neighboring Afghanistan could factor into Tehran’s policy decisions towards Kabul
June 8 — “The deteriorating security in western Afghanistan may soon be worsened by a water crisis. A snowballing militancy, desiccating wetlands, and environmental migration create a trifecta of challenges to test the mettle of the Afghan government and complicate its already-tense relations with Iran.” READ MORE: http://smallwarsjournal.com/jrnl/art/not-so-quiet-western-front-snowball-effect-afghanistan
WORLD
The Bolshevik Revolution centennial and the disintegration of the Soviet space
As former Soviet republics of Central Asia tend to downplay the significance of their Soviet past and Russia’s presence in the region, it is China that is ready to step in to increase its role in the area
June 6 — “The centennial of the Bolshevik Revolution in November 2017 was a strange jubilee. Despite the revolution’s central importance in world history and its global importance, the centennial received scant attention in Russia. Most other post-Soviet countries plainly ignored it. The marginalization of the Revolution went along with a sharp decline in the popularity of Eurasianism, whose proponents emphasized the “symbiotic” or organic relationship between Russians and other ethnicities of the former USSR.” READ MORE: https://timesca.com/index.php/news/26-opinion-head/19840-the-bolshevik-revolution-centennial-and-the-disintegration-of-the-soviet-space
China’s Belt and Road: Bigger than the Marshall Plan
The scale of the Belt and Road Initiative could have profound economic implications, as developing countries will welcome investment in infrastructure while China will extend its soft power
June 6 — “China’s Belt and Road Initiative should promote economic integration with countries related to the project. China even welcomes the fact that the US has shown interest in joining the BRI party. Money certainly helps – with deeper economic integration there should be more money-making opportunities. The Chinese government has gained higher status regionally and internationally, as it continues to lead the BRI.” READ MORE: https://think.ing.com/articles/china-belt-and-road-bigger-than-the-marshall-plan/
