• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
08 December 2025

How Can Central Asian Countries Advance Democratization Efforts Amid Geopolitical Uncertainty?

On October 27, Uzbekistan held parliamentary elections, which, along with the referendum in Kazakhstan and upcoming local council elections in Kyrgyzstan, contributed to a global election year.

In the elections in Uzbekistan, the ruling Liberal Democratic Party emerged victorious, participating for the first time in elections held under a mixed majoritarian-proportional system. As a result of the vote, the Liberal Democratic Party received 42,7% of the votes, securing 64 out of 150 seats in parliament. Voter turnout was 74.72%, and observers noted the organization and conduct of the elections.

Leaders in Central Asia frequently cite the region’s volatile geopolitical landscape as a basis for more cautious internal reforms. This reflects a need to maintain stability in the face of external pressures.

Historically and currently, Central Asian countries do not represent homogeneous societies. Additionally, increasing political divisions within society and among political elites are observed in almost all five countries of the region. Against this backdrop, escalating geopolitical conflicts on the global stage may further hinder the realization of major political reforms.

 

Political Reforms and an Unstable World Order

It’s challenging to definitively assess political reforms in Kazakhstan and Uzbekistan as either negative or positive, as both perspectives exist. European and American leaders often note the countries’ aspirations for reforms and express readiness to support them. Therefore, Kazakhstan and Uzbekistan effectively act as locomotives of political reforms in Central Asia at this stage.

Under the leadership of President Kassym-Jomart Tokayev, Kazakhstan has undertaken political reforms aimed at modernizing the political system and strengthening democratic institutions. A significant step was limiting presidential powers by introducing a single seven-year presidential term without the right to re-election, which should promote regular changes in political leadership. Kazakh authorities argue that the role of parliament has also been strengthened to increase its influence and accountability to the government, providing a more balanced system of checks and balances. Liberalization of the party system included simplifying the registration of political parties and introducing elections based on single-member districts, which should foster political pluralism. Steps were taken to increase citizen participation in governance, including the introduction of direct elections for village and district mayors and creating mechanisms for open citizen feedback. Additionally, a 30% quota for women, youth, and people with disabilities was introduced in party lists, contributing to strengthening gender equality.

Under President Shavkat Mirziyoyev, Uzbekistan is also conducting significant reforms aimed at democratizing the political system. These elections were noteworthy for the introduction of a mixed electoral system, representing a significant departure from past practices. Under this system, 150 seats in the Legislative Chamber of the Oliy Majlis should be filled by two methods: 75 seats were elected through single-member districts (majoritarian system), and the remaining 75 were allocated proportionally based on party results (proportional system). This approach aims to enhance political pluralism by allowing both individual candidates and political parties to gain representation. The majoritarian component allows voters to directly elect representatives from their constituencies, fostering a closer connection between elected officials and their constituents. Meanwhile, the proportional component ensures that political parties receive seats proportional to their share of the vote, promoting diversity in parliament. The EU welcomed the progress made during these elections under the revised legal framework, particularly recognizing the efforts to facilitate voting for people with disabilities and the achievement of a minimum of 40% of seats in the new parliament being held by women.

India sent the largest group of observers, with over 20 representatives, including Chief Election Commissioner Rajiv Kumar, diplomats, and academics, to monitor the electoral process. This followed Prime Minister Narendra Modi’s recent bilateral meeting with Uzbek President Shavkat Mirziyoyev in Kazan, held alongside the BRICS Summit. Uzbekistan had also recently joined BRICS as a partner country. India and Uzbekistan shared strong civilizational, historical, and political connections.

OSCE also released a report on the elections. The report concludes that although some reforms show progress, major legislative and practical improvements are needed for Uzbekistan to meet democratic standards fully. But in reality, the progress achieved in democratic processes amid global geopolitical instability is also very important.

 

Historical Context of Uzbekistan’s Electoral System

To understand the significance of these reforms, it’s important to consider the historical context of Uzbekistan’s electoral system. Since gaining independence from the Soviet Union in 1991, Uzbekistan has undergone several electoral cycles. During Islam Karimov’s rule, Uzbekistan operated a centralized political system with limited space for political opposition. The electoral process primarily supported the continuity of the established power structure, rather than serving as a primary channel for political change.

Mirziyoyev’s administration is seeking to break from this legacy by introducing reforms aimed at increasing transparency, accountability, and citizen participation in governance. The adoption of a new Constitution was aimed at strengthening human rights protections and achieving sustainable development goals by 2030. Women’s representation in politics was also increased by raising the minimum number of female candidates from parties.

 

The Impact of Geopolitical Situations on Reforms

Escalating geopolitical conflicts on the global stage may further hinder the realization of major political reforms. The global environment plays a crucial role. The most democratically developed states have evolved in stable and peaceful conditions. Central Asian countries now face several challenges, such as combating the potential rise of terrorist organizations or fighting criminal groups. Additionally, the war in Ukraine has negatively affected the economic development of countries in the region.

In his latest Address to the Nation on September 2, President Tokayev noted: “our society must be governed by law and order. This is a fundamental condition for ensuring both public and individual security. Only in this way can we create a Just, Clean, and Safe Kazakhstan. To achieve this strategic goal, it is necessary to create favorable external conditions for the peaceful and sustainable development of the country. This is the task of diplomacy, which, in the current complex geopolitical realities, must be highly professional.”

 

How Geopolitical Challenges Can Affect Central Asian Countries

Central Asian countries have noticeably intensified joint efforts in combating terrorism and cooperation in security. On May 16, 2024, the first meeting of security secretaries of Central Asian countries took place. President Tokayev noted that high risks remain associated with the activity of international terrorist organizations. At the 6th Consultative Meeting of Central Asian Leaders, President Shavkat Mirziyoyev of Uzbekistan proposed developing a Concept for Ensuring Regional Security and Stability.

The worsening international situation inevitably impacts Central Asian countries. Since 2022, almost all countries in the region have faced political transformations. The war in Ukraine had certain advantages for Central Asian countries, but they also faced several challenges: inflation caused by various economic factors led to a significant increase in prices for food and non-food items. Serious logistical problems arising from sanctions negatively affected the region, limiting countries’ abilities to export and transport goods, as many important trade routes pass through Russia. This constrains trade and introduces uncertainty into transportation flows, making the region more vulnerable to external economic factors. Uncertainty is also growing regarding future borrowing costs, inflation levels, and energy prices, adding complexity to long-term planning and financial stability, especially amid global economic instability.

 

Comparative Analysis: Lessons from India and the United States

The experiences of India and the United States can provide Uzbekistan and other countries in the region with valuable lessons in striving to improve democratic processes.

India possesses one of the largest and most complex democracies in the world, with a robust electoral system that has evolved over decades. The independent electoral body, the Election Commission of India (ECI), is an autonomous constitutional authority responsible for conducting free and fair elections across the country. Its independence is crucial for maintaining impartiality and trust in the electoral process. India also uses Electronic Voting Machines (EVMs) with Voter-Verified Paper Audit Trails (VVPAT) to ensure transparency and accuracy in voting. This technology has played a significant role in reducing fraud and increasing voter confidence. Additionally, India’s electoral system emphasizes inclusivity by ensuring polling stations are accessible to all citizens. Recently introduced measures facilitate home voting for seniors and persons with disabilities, reflecting a commitment to expanding voter participation.

The United States offers a different perspective on democratic practices that may be useful for Central Asian countries. Unlike India’s centralized model, elections in the U.S. are managed at the state level, allowing flexibility but also leading to inconsistencies between states. The U.S. employs various voting methods, including paper ballots and electronic systems, with an emphasis on local control. Many U.S. states offer mail-in (absentee) voting and early voting periods to make the electoral process more accessible to various segments of the population, including those who may have difficulty voting on Election Day due to work, health, or other reasons. These options aim to increase voter participation and accommodate diverse voter needs.

 

Implementing Best Practices in Central Asia

To successfully implement electoral reforms, countries in the region can leverage best practices from India and the U.S. Establishing independent electoral commissions can enhance trust and transparency. Integrating secure voting technologies can increase voter confidence. Introducing inclusivity measures, such as accessible polling stations and mail-in voting options, can broaden voter participation. Considering phased elections can help address logistical challenges. Introducing ethical codes can maintain integrity during elections.

Any adaptation of foreign practices must consider the unique cultural context of Central Asian countries. International models provide valuable frameworks, but they must be tailored to local conditions and traditions. Strengthening civil society organizations is crucial for supporting democratic reforms. These organizations can play an important role in informing voters about their rights and responsibilities, as well as monitoring electoral processes to ensure fairness.

 

Conclusion: The Way Forward

In this context, conducting political reforms in the region is challenging, although certain steps are being taken. For this reason, Central Asian countries may place greater emphasis on simplifying certain procedures, such as in the electoral sector, to increase citizen participation.

As Uzbekistan and other countries in the region continue their democratic transition, drawing lessons from established democracies like India and the U.S., they stand on the cusp of not only testing political reforms but also demonstrating a commitment to democratic principles on a global level. This could pave the way for a more inclusive and representative future based on transparency, accountability, and citizen participation — fundamental elements of a governance structure adapted to a unique cultural context — ensuring successful adaptation of foreign practices and fostering genuine competition, strengthening democracy in Central Asia and beyond.

American Chamber of Commerce in Kyrgyzstan: Future Development and Investment Climate

As Central Asia continues to become a regional hub for trade and innovation, The Times of Central Asia spoke with Altynai Asanova, the Executive Director of the American Chamber of Commerce in the Kyrgyz Republic, to discuss the investment climate in Kyrgyzstan, economic trends, and future development.

TCA: I see that your background is primarily in hotel management and sales; how did you transition from this role to your current position?

“My background includes 18 years in the hotel business. Ten years at Hyatt, starting in food and beverage and ending in the hotel sales department; then, I worked at the Orion Hotel for the pre-opening and opening stage for about three years. After this, I was hired by Sheraton, one of the Marriott chain hotels, to work on the pre-opening and opening stage for two years. I was still involved with the business audience and wanted to continue working with the stakeholders and companies who know me.”

TCA: How would you describe the hospitality industry in Kyrgyzstan? Is it mainly in Bishkek or other regions?

“It is developing; before, it was only the Hyatt. Now, there are three or four chain hotels in Bishkek. It is good that there are more players in the market. It is developing day by day. The development is mainly in Bishkek, but we have good perspectives for Issyk Kul as long as the roads and infrastructure are completed. The chain hotels are also becoming interested in Issyk Kul. The good thing is that enough businessmen understand and accept the market challenges in Issyk Kul. They know it will not be financially stable at launch since the busy season is only about 50 days. But if the hotels provide full service and comfort, people will travel there for the full season.”

TCA: Stepping away from hospitality, what did American investment in Kyrgyzstan look like ten years ago?”

“Before, there was an American base in Kyrgyzstan. During that time, the hospitality business was amazing. The rates were high considering the charter flights and pilots who needed a place to stay. Now, these rooms are listed at the lowest rates. At that time, the Hyatt was the only five-star hotel in Bishkek, so all the American guests were staying at the Hyatt. The investment climate dropped after the U.S.-Kyrgyzstan agreement ended. There is opportunity, but it goes slowly.”

TCA: Since then, what has changed in the business climate?

“Business-wise, if we look from the angle of the association, we do not have any purely American business; we have franchise members: KFC, Hyatt, Sheraton, and some banks. It would be nice to have purely American [businesses] here.”

TCA: Who are the current major investors in the Kyrgyz market? And is competition relevant to win contracts with local companies?

“China, Russia, Kazakhstan, the Netherlands, and Turkey are the main investors. Before making any contracts or tenders, we need to understand the possibilities of our market, ‘Is our country ready to accept this level of business?’ The first question is whether Kyrgyzstan is ready, and the second is whether some conditions should be changed to attract investors. We must improve the regulatory environment to improve transparency and ensure the country’s investment attractability. Most of our neighbors are interested in becoming deeply involved in our economies. By contrast, the U.S. is physically very far away, and the market has become very tight for them.”

TCA: What are the biggest markets for the Kyrgyz economy in the next 5-10 years? What do you see attracting the most investment?”

“Mining, apparel, tourism, and agriculture are the most attractive sectors. It would be nice to have international companies enter the market because they bring expertise and standards to their sectors. They are not only teaching people but also providing good working conditions and bringing different cultures together, changing the vision of the people. If the people are well-developed, then the organization will be different. Educational exchange programs are also critical; they strengthen the people-to-people ties. Outside expertise and opinion is essential.”

TCA: The One Belt, One Road Initiative has projects in Kyrgyzstan. Will these projects benefit the Kyrgyz economy or make the country more dependent on China?

“We should understand that any kind of these projects are a win-win for both sides. We already have Chinese companies performing well in the Kyrgyz market. It does not mean they are only looking for money here; they are developing and making efforts. They are also providing benefits for their employees. I hope that these projects produce good results for both sides.”

TCA: Are there any sectors you think the international audience should watch besides mining?

“IT. After the situation in Ukraine, many people relocated to Bishkek. Renting apartments and food is cheaper compared to where they come from. Some companies are interested in opening their hubs here, some in Bishkek and some in Issyk Kul. Compared with other Central Asian countries, the quality of the internet is high, and the price is affordable. It is not 5G yet, but the price and quality are attractive.”

TCA: Has there been any legislation or changes to the laws to attract new investment?

“We have frequent changes to the law, but the main thing is not how it looks on paper, but how it works in real life. The government is working on transparency and easy procedures for tax purposes, but how it is realized matters more. Everything should be amazing on paper, but does it work like this in reality?”

TCA: Would you like to add anything else?

“We should understand that every country has different possibilities, resources, people, and mentalities. However, we should understand that we can promote and develop countries only via fruitful partnerships between countries. During my visit to the U.S., I saw that it is a country of opportunity, technology, and innovation, where everyone can strive for success and realize their dreams. For Kyrgyzstan, it should be a shining example. Of course, it isn’t easy, but if we see these possibilities, I think they are achievable; American businesses are the example to follow. Staying positive and focusing on progress and reaching a goal is paramount.”

IFC Provides $240 Million Loan to Boost Uzbekistan’s Renewable Energy

The IFC has announced a $240 million Islamic Equity Bridge Loan for ACWA Power to boost Uzbekistan’s renewable energy sector. The announcement was made at the 8th Future Investment Initiative conference in Riyadh, Saudi Arabia. The financing will cover a 1-gigawatt solar PV plant, a 668-megawatt Battery Energy Storage System (BESS), and around 500 kilometers of high-voltage transmission lines. These projects aim to advance Uzbekistan’s clean energy goals, potentially cutting greenhouse gas emissions by 1.3 million tons of CO2 annually and generating around 2,400 gigawatt hours of electricity per year.

Al Muhaidib, ACWA Power’s Chief Financial Officer, stated that “we are honored to collaborate with IFC on this transformative project in Uzbekistan, which embodies our shared vision of advancing sustainable energy solutions. This initiative will establish a new standard for cross-border ACWA Power recourse funding support, effectively addressing energy demands while championing environmental sustainability.”

The $240 million financing, structured as an Islamic Finance Murabaha, includes an A-Loan of up to $227.75 million and a $12.25 million trust loan through IFC’s Managed Co-Lending Portfolio Program. This funding will support ACWA Power’s equity contributions to the project’s development over the next four years. By optimizing equity returns, this structure helps project developers offer competitive tariffs and attract private investors, advancing Uzbekistan’s goal of reaching 40% renewable energy by 2030.

“This project reflects IFC’s commitment to tackling climate change, accelerating the clean energy transition in emerging markets, and supporting public and private sector entities in Saudi Arabia with innovative investments in the region and beyond,” said Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources in the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan.

Saudi company ACWA Power’s investment portfolio in Uzbekistan now includes eight projects worth over $6.8 billion, with a more than 5.5 GW design capacity. The company’s success highlights Uzbekistan as an attractive investment hub and a leader in renewable energy in Central Asia.

Casinos in Kyrgyzstan To Open in State Buildings

The Kyrgyz parliament has passed legislation permitting gambling in state-owned facilities. This new law allows for casino activities within buildings owned by the state or enterprises with government stakes, and aims to attract investment, generate employment, and boost tax revenues.

Developed by the Ministry of Economy and Commerce and presented to the Cabinet of Ministers, the law overturns previous restrictions by permitting casinos in state-owned hotels to enhance tourism and global competitiveness. Revenues from these casinos will support the development of tourist infrastructure.

Historically, gambling was banned entirely in Kyrgyzstan in 2012, but a 2022 law reintroduced it under strict conditions, allowing only foreign nationals to participate. Kyrgyz citizens remain barred from casino entry, and the State Service for Regulation and Supervision of the Financial Market closely oversees operations to ensure compliance.

Kazakhstan Hosts Meeting of Council of Foreign Investors

Astana’s Palace of Independence hosted the 36th meeting of the Foreign Investors Council.

Kazakhstan’s President Kassym-Jomart Tokayev and Prime Minister Olzhas Bektenov attended the event. This year’s central theme was “Kazakhstan’s New Investment Cycle.” The meeting discussed strategies for the new investment cycle and the development of Kazakhstan’s attractiveness to investors.

Citing data from the International Institute for Management Development (IMD), Tokayev emphasized that Kazakhstan has become one of the world’s top 35 competitive countries.

“We set ourselves a rather ambitious goal: to attract $150 billion of foreign direct investment by 2029. To realize this goal, the Investment Headquarters under the Government is endowed with expanded powers to solve emerging problems promptly,” said the president.

Tokayev noted the merits of international oil companies, which have played an essential role in the country’s development.

“Foreign investors have invested capital and provided advanced technologies and highly skilled labor. Their investments have contributed to the growth of our energy industry: over the past 30 years, oil production has tripled. Thanks to this, Kazakhstan has become one of the five countries with the highest oil production growth rates. Speaking about the future, we set a goal to overcome the threshold of 100 million tons per year,” he said.

The meeting focused on increasing investment attractiveness in the “clean energy” sector. Specific agreements were reached with world companies such as Total, Svevind, ACWA Power, and Masdar on realizing 43 GW of “green” projects in Kazakhstan. In addition, Kazakhstan has a vast potential for developing nuclear energy, so creating an international consortium to realize the NPP construction project is under consideration.

Kazakhstan focuses on the work of the Astana International Financial Center to strengthen cooperation in the financial sector. Tokayev spoke of the importance of continuing the dialog between the Council members and government agencies to improve the country’s investment climate and implement new initiatives and specific projects.

The meeting also included Odile Renaud-Basso, President of the EBRD; Nurlan Dosymbekov, Deputy Prime Minister and Minister of National Economy; Zhang Daowei, Chairman of the Board of the Kazakh Association “Baibazarov” and the Yerstanign Investors; Nikolai Podguzov, chairman of the EDB; Andrew Deleoni, president of Alstom for Africa, the Middle East, and Central Asia; and Vadim Vorobyov, Chief Executive Officer of PJSC Lukoil.

Established in 1998, the Council of Foreign Investors is a platform for foreign investors and the government of Kazakhstan to discuss strategic objectives and find solutions to improve the business climate.

From the Kazakhstani side, the Council is attended by government members and heads of several national companies and development institutions. Foreign participants include representatives of major international corporations and organizations, underscoring the global interest in investing in Kazakhstan.

Last year’s 35th Plenary Meeting of the Foreign Investors Council was also chaired by President Tokayev. The main topic of the meeting was “Digital Transformation of the Economy.” At the time, Tokayev emphasized that digitalization is a tremendous technological breakthrough and opportunity. The growth of digitalization is already dramatically impacting economic development and changing the game’s rules in various sectors. Kazakhstan actively seeks to develop digital technologies and considers them a factor of the country’s competitiveness on the world stage.

Kazakhstan To Establish Special Commission on NPP Construction

A special government commission will be formed in Kazakhstan to manage the nuclear power plant construction project, according to Energy Minister, Almasadam Satkaliyev. As stated by the minister, the commission will engage in an open, competitive dialog with potential bidders. Preliminary consultations have already been held, including visits to China and South Korea, where critical requirements for future contractors were discussed.

Among the main selection criteria are power cost, budget and construction time-frame, mandatory safety guarantees, social commitments, financing, and localization of fuel production. As part of this process, the commission will formulate proposals for further consideration at a meeting of the Energy Council under the President of Kazakhstan. In addition, consultants will analyze the project’s financial, economic, legal, and technical aspects.

As The Times of Central Asia previously reported, a referendum on nuclear power in Kazakhstan was held on October 6. More than 70% of Kazakhstanis voted in favor of the construction of a nuclear power plant. Potential participants in the project are now being discussed. Among the countries being considered as partners are Russia, China, France, and South Korea. These states have set out their proposals, and the authorities in Kazakhstan are considering them. In addition, the United States has expressed its willingness to participate. President Tokayev has expressed his preference for an international consortium to realize the project. The final decision will be made based on technical and financial conditions, with the preliminary cost estimated at $5 billion.