Page 645 – The Times Of Central Asia

09 Jul 2024

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Paving the Path Westward: Insights from the Astana and Shusha Summits

July 16, 2024
By Times of Central Asia

The informal OTS summit in Shusha, hosted at the invitation of Ilham Aliyev, centered on the theme of “Building a Sustainable Future through Transportation, Connectivity and Climate Action.” Attendees included Presidents Kassym-Jomart Tokayev of Kazakhstan, Sadyr Japarov of Kyrgyzstan, Shavkat Mirziyoyev of Uzbekistan, Ersin Tatar of the Turkish Republic of Northern Cyprus, Prime Minister Viktor Orban of Hungary, and OTS Secretary General Kubanychbek Omuraliev. In place of Erdoğan, who was in Germany supporting the Turkish national soccer team ahead of a crucial Euro 2024 quarter-final against the Netherlands, Vice President Cevdet Yılmaz attended. Turkmen President Serdar Berdimuhamedov was also absent due to hosting UN Secretary-General António Guterres in Ashgabat.

Notably, the Shusha summit occurred just two days after the meeting of SCO leaders in Astana, which drew an exceptional amount of attention from international observers due to the participation of the Russian and Chinese leaders.

The intrigue surrounding the SCO summit was linked to its closed session, attended only by the Shanghai Ten. At the summit, only the speech delivered by Tokayev was made available to the press. Speeches made in the subsequent SCO+ format sessions were made public, wherein Russian President Vladimir Putin and Chinese President Xi Jinping underscored the need for a multi-polar world, suggesting that the SCO members had discussed shifting away from Western cooperation towards the Global South.

At the Shusha summit Aliyev highlighted Azerbaijan’s commitment to strengthening ties within the Turkic world, emphasizing the importance of the political, economic, and military consolidation of Turkic States as a global power center. Aliyev stated that Azerbaijan has consistently sought to unite the Turkic world and enhance its influence on the global stage, stressing that the OTS should seek to emerge as a significant global power.

“We cover a large geographical space and positive demographic dynamics are observed in the member countries. Our greatest assets are our rich natural resources, modern infrastructure for their delivery, transportation corridors connecting Central Asia and the Caucasus with Mediterranean and Black Sea ports, and our rich and ancient history and culture. The commitment of our people to traditional values and ethnic commonality closely unites our countries. The 21st century should become the century of prosperity of the Turkic world,” the Azerbaijani leader emphasized.

Aliyev also addressed the primary tasks which lie ahead for the OTS, referencing the Astana Declaration of the SCO, which designates Central Asian republics as the organization’s foundation. Leaders of these republics who attended the summit in Shusha, Tokayev, Shavkat Mirziyoyev, and Sadyr Japarov, endorsed Aliyev’s call for the expansion of the East-West transport corridor connecting Central Asia and Eurasia to Europe.

Aliyev further highlighted the Digital Silk Road project, which aims to establish a fiber-optic telecommunication route between Europe and Asia via the Caspian Sea through Azerbaijan.

Furthermore, when the President of Kazakhstan delivered his speech, he stressed the significance of the Trans-Caspian International Transportation Route.

“The potential of the Trans-Caspian International Transport Route should be fully utilized. Today, the volume of container transportation along this corridor has doubled compared to 2023. We have launched a multimodal digital platform, Digital Trade Corridor, to reduce cargo transit time. The Azerbaijani side is closely cooperating with us in this direction,” Tokayev stated.

Aliyev also took the opportunity to highlight the fact that Azerbaijan will host COP29 this year. “We regard the chairmanship of COP29 and the hosting of this event in Baku as a clear example of the great confidence the international community has in our country,” he stated. “About 200 countries unanimously supported our candidacy. Using the experience gained during its four-year chairmanship of the Non-Aligned Movement, Azerbaijan will strive to strengthen solidarity and achieve consensus between developed and developing countries.”

The Karabakh Declaration, adopted by participants of the informal summit in Shusha, further proves that Central Asia and the Organization of Turkic States remain committed to regional cooperation and maintaining good relations with Europe.

In fact, one of the clauses within the declaration explicitly states the aspirations of the OTS and Central Asia for global cooperation and openness: “Strengthening regional ties and economic integration between the member states through the Trans-Caspian International East-West Corridor (Middle Corridor) connecting Europe, Turkey, the South Caucasus, Central Asia, and China… for sustainable development, economic prosperity, and international trade by increasing trade and attracting investment in the infrastructure of ports and railroads.”

In essence, whilst the Western media may choose to focus on Putin and Xi, the influence of China and Russia on the rest of the SCO members is overly exaggerated, and any talk of Central Asia isolating itself from the West is unfounded.

08 Jul 2024

Home, Opinion Head, Kazakhstan, Opinions, Kazakhstan Opinions

SCO Summit: A Battle for Influence in Central Asia

August 5, 2024
By Nikola Mikovic

For Central Asian countries, the Shanghai Cooperation Organization (SCO) is a tool that allows them to improve their position in the global arena, and develop closer economic ties with other members of the world’s largest multilateral group. But for Russia and China, the SCO is an instrument that gives them an opportunity to strengthen their influence in the strategically important region of Central Asia.

Last week, the SCO (whose members are Russia, China, India, Iran, Kyrgyzstan, Kazakhstan, Pakistan, Tajikistan, Uzbekistan, as well as Belarus, the entrant at the meeting in Astana on July 3-4) held the summit of the Council of Heads of State of the SCO in the Kazakh capital of Astana where its leaders adopted a series of documents – from the Astana Declaration, underscoring the organization’s role in bolstering global peace, security and stability, through the SCO Development Strategy until 2035, to the group’s Economic Development Strategy’s Action Plan until 2030.

Prior to the meeting of what is often described as “the world’s least known and least analyzed” multilateral group, Kazakhstan’s President Kassym-Jomart Tokayev repeatedly stated that, over the past 20 years it was not possible to implement a single major economic project under the auspices of the SCO. Indeed, ever since its foundation in 2001, the SCO has mostly been focusing on security issues, and during the summit in Astana security was yet again at the top of the agenda.

But as the largest Central Asian nation’s Deputy Foreign Minister Roman Vassilenko told me at the briefing with the foreign journalists on July 4, SCO members still work more on a bilateral rather than on a multilateral basis. In his view, advancing economic cooperation within the organization of very diverse nations is not an easy task.

Quite aware of that, China seeks to strengthen its economic presence in Central Asia through other formats such as the Belt and Road Initiative, and the China-plus-Central Asia format. In the past, Beijing was actively pushing for closer economic integration between SCO members, but Russia reportedly blocked Chinese initiatives. As a result, the People’s Republic began to sign bilateral agreements with regional countries, aiming to strengthen its role in Central Asia.

Kazakhstan, as the region’s largest economy, is no exception. Despite being a Russian ally in the Collective Security Treaty Organization (CSTO), and a member of the Russian-led Eurasian Economic Union, Astana seems to see Beijing, rather than Moscow, as the de facto leader of the SCO. As Vassilenko stressed, out of 10,000 people who came to Astana for the summit, more than half of them were Chinese, which indicates that the SCO holds a huge importance in Beijing’s foreign policy.

Moreover, Chinese President Xi Jinping seems to have received a warmer welcome in the Kazakh capital than Russian leader Vladimir Putin or the heads of states of other SCO members. At the airport, where Xi was welcomed by his Kazakh counterpart Kassym-Jomart Tokayev, a group of Kazakh children sang the song “Ode to the Motherland” in Chinese, while Chinese flags flew over Astana’s streets. It is unlikely a pure coincidence that other SCO leaders were not welcomed by Tokayev, but by the Kazakh Prime Minister Oljas Bektenov, and that there was no such a “super VIP” ceremony at the airport.

Officially, the Chinese President came to Astana not only to participate in the Shanghai Cooperation Organization summit, but also to pay a state visit to Kazakhstan. Although that could be the reason why he received a “super VIP” welcome in the Kazakh capital, the fact that last year China overtook Russia to become Astana’s biggest trading partner (with two-way trade topping $31,5 billion) clearly shows the growing Chinese influence in the former Soviet republic.

That, however, does not mean that Astana will turn its back on Moscow and turn its geopolitical vector eastward. For the foreseeable future, Kazakhstan will undoubtedly continue pursuing its “multi-vector” foreign policy, aiming to preserve good ties with Russia, develop closer economic ties with China, and at the same time to strengthen relations with the West.

More importantly, Astana will seek to deepen economic cooperation with other Central Asian states, as well as with various members of the SCO. According to the Kazakh government, Kazakhstan’s trade turnover with the SCO countries has increased by 56.5% in five years, which suggests that Astana, as well as other SCO nations, will continue to use their membership in the organization to achieve their own geoeconomics interests and foreign policy priorities.

Thus, unless the SCO manages to find a way to develop joint economic projects and strengthen political ties among its members – which could be easier said than done given their diverse geopolitical interests – the group will remain merely a security-oriented talking club with no real power in the global arena.

08 Jul 2024

Uzbekistan, Uzbekistan Environment, Uzbekistan Business & Economy, Uzbekistan Life & Culture

Roundtable on Uzbekistan’s Reform Agenda

October 8, 2024
By Sergey Kwan

The 2nd Roundtable of Uzbekistan’s Country Platform was held last week in Tashkent. Backed by the European Union, the event provided a platform for discussions amongst over 80 government partners and international institutions on Uzbekistan’s reform agenda and coordinate support activities.

As reported by the Delegation of the European Union to Uzbekistan, the participants agreed to continue collaboration through more than 13 sectoral working groups supporting issues prioritized by the Uzbekistan–2030 Strategy including agriculture, energy security, green growth, and the rule of law.

Led by the Agency for Strategic Reforms (ASR) under the President of Uzbekistan and the Ministry of Economy and Finance of Uzbekistan, and with secretarial assistance from the European Union, the Country Platform aims to foster effective coordination.

Bakhodir Rakhmatov, Director of the Agency for Strategic Reforms, commented: “Constructive collaboration between development partners and government ensures achievement of the priority reform objectives identified by President Mirziyoyev aimed at creating a more prosperous and sustainable future for all. The ASR plays a pivotal role in coordinating the engagement of ministries and agencies with development partners.”

Taking over the support previously provided by the World Bank in May, the European Union committed to assisting the Country Platform until the end of 2025.

“The European Union is honored to co-chair and promote the Country Platform as a forum for open dialogue, cooperation and collaboration between Uzbekistan and development partners,” said Charlotte Adriaen, Ambassador of the European Union to Uzbekistan. “The common goal is to support Uzbekistan in its reform path. The Platform is an opportunity to join forces, to effectively move together bringing prosperity, sustainable development, leaving no one behind.”

08 Jul 2024

Central Asia, Tajikistan Business Economy, Tajikistan, Business & Economy

EDB Identifies Key Risks for Tajikistan’s Economy

July 8, 2024
By Times of Central Asia

Analysts from the Eurasian Development Bank (EDB) have presented a macroeconomic forecast for Tajikistan for 2024-2026. In it they identify the main short-term risks for the country’s economy.

According to the forecast, the critical risks for Tajikistan come from outside.

“High interest rates in developed countries and structural problems in China’s economy may lead to a slowdown in global economic growth and lower prices for raw materials,” the report says.

This could reduce the demand for goods exported by Tajikistan.

Another consequence of this scenario will be a reduction in remittances coming into the country, mainly from oil-exporting countries. This would lead to a slowdown in household consumption growth and a decline in non-state investment, pushing GDP growth below the equilibrium level.

In such a development, fiscal policy, assistance from international financial organizations, and lower prices for imported food and energy will support the economy.

Despite these challenges, EDB analysts forecast high growth rates for Tajikistan’s economy: 8.0% in 2024, 8.2% in 2025 and 7.8% in 2026. This growth is due to strong domestic demand, higher-than-expected prices for gold and base metals exported by Tajikistan, and favorable remittance dynamics due to rising wages in the region.

Until the end of this year, according to EDB economists’ estimates, the slowdown in demand growth in external markets will have a restraining effect on the economy. This will negatively affect real exports and the inflow of remittances and investments into the country. However, as the authors of the forecast note, the growth of prices for metals exported by Tajikistan, especially gold, will balance this negative impact.

08 Jul 2024

Central Asia, Kyrgyzstan Justice, Kyrgyzstan, Local Politics, Kyrgyzstan Local Politics

Kyrgyz Council Deputy Arrested for Calling for Riots

July 8, 2024
By Times of Central Asia

An unnamed member of the city council in Kyrgyzstan’s Jalal-Abad region has been detained for calling for the organization of mass riots and a violent seizure of power, 24.kg reports.

Kyrgyzstan’s State Committee for National Security (SCNS) announced in a statement: “[An] investigation has established that [a] deputy of Kerben city council from the ‘Ata-Jurt Kyrgyzstan’ political party systematically published provocative materials and calls for the organization of mass disorder and violent seizure of power on Facebook.”

The suspect was taken to the security committee’s detention center. The investigation is ongoing.

According to the security committee, the attempt was scheduled for August 31, which is Kyrgyzstan’s Independence Day.

“The suspects, under the influence of certain destructive political forces, hatched plans for a violent seizure of power by destabilizing the socio-political situation in the country and organizing mass riots in Bishkek, including the death of citizens. They planned to organize a sporting event near Bishkek on Independence Day to gather young people from all around the country,” the SCNS said.

On the eve of Independence Day, special services detained five Kyrgyz men who were planning an armed seizure of power. A search of their homes revealed a large cache of weapons, explosives, and police uniforms.

A total of 50 weapons (20 pistols and 255,238 rounds of ammunition), 200 sets of law enforcement uniforms, 150 pieces of police and 100 pieces of military headgear, 38 sets of body armor, two drones, radios, homemade explosives, and extremist literature were seized from them. It has also been established that the detainees are involved in organizing rallies against foreign citizens.

08 Jul 2024

Central Asia, International Affairs, Kazakhstan International Affairs, Kazakhstan, Kazakhstan Business & Economy

OECD Representative Office May Open in Kazakhstan

July 8, 2024
By Times of Central Asia

An initiative to open a representative office for the Organization for Economic Cooperation and Development (OECD) in Kazakhstan has been announced by Deputy Prime Minister Nurlan Baibazarov and William Thompson, Head of the OECD Eurasia Division, who met earlier this week. To date, OECD regional offices operate in China, Indonesia, Ukraine, and Greece, according to the website of the Government of Kazakhstan.

During the meeting, the parties discussed implementing OECD recommendations, implementing the Joint Action Plan of the Government of the Republic of Kazakhstan and the OECD Secretariat until 2025, and cooperation within the framework of the OECD Eurasian Competitiveness Program.

William Thompson noted the positive experience of OECD interactions with Kazakhstan. Following recommendations from the OECD, several political and economic reforms have been carried out in the country. In particular, institution of investment ombudsman was introduced, parliamentary control over the use of budgetary funds was strengthened, the Low Carbon Development Strategy of the country until 2060 was developed, and the National Contact Center for Responsible Business Conduct and the Supreme Audit Chamber were established. Direct elections of akims (heads) of districts and cities of regional significance has also been introduced.

“Our country has been a stable partner of the OECD for more than 15 years and a Central Asian leader in implementing its recommendations. In 2025, Kazakhstan intends to apply to join this authoritative international organization as a full member. We are confident that further cooperation will have a qualitative impact on the socioeconomic and legal aspects of the development of our state,” Nurlan Baybazarov stated.