Strategy - The Times Of Central Asia

Viewing results 1 - 6 of 56

Kyrgyz Authorities Promise Not to Persecute Human Rights Advocates Using Foreign Agent Law

Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Edil Baisalov met with representatives of domestic non-governmental organizations (NGOs), where he assured participants that the new Foreign Agent's Law is not aimed at restricting the work of NGOs. All rights and freedoms have been preserved, and human rights defenders can participate in the political life of the country, Baisalov stated. "The only thing required is to be on the register. This requirement is common around the world. There will be no persecution; no restrictions on activities. We are interested in the activities of [NGOs] for the benefit of our country," Baisalov said. Earlier, the Times of Central Asia reported on human rights activists concerns regarding reputational risks, possible interference by government agencies in the work of NGOs, and the risk of mandatory financial audits. There were also questions about the implementation of new legislative guidelines, most of which, according to opponents of the law, are not viable. The Kyrgyz Ministry of Justice responded to an inquiry from the Times of Central Asia, with officials saying that bylaws and rule-making for the new law are in the works. However, more detailed information will be provided later, when the updates and amendments are submitted for public discussion. In early April, Kyrgyz President Sadyr Japarov signed the law "On Foreign Representatives," which sparked a wave of criticism from foreign organizations, foreign governments, and NGOs working in Kyrgyzstan.

Privatization Legislation Strategy Uzbekistan Economy Central Asia Investments

Uzbekistan Moves to Speed Up Privatization of State Property

Uzbekistan's president Shavkat Mirziyoyev has signed a decree that will put up for auction shares in 247 state enterprises and 1,028 units of real estate. Initial public offerings (IPOs) and secondary public offering (SPOs) of 12 large enterprises are also to be held on the domestic stock market. The Uzbek government is planning various incentives to speed up the sales. For example, if an asset is not sold within three months of the auction opening, its value will be phased down to 10% of the starting bid price. Lessees of state property will be able to buy the assets under contract directly at the appraised value, and those who purchase privatized state assets in installments will be able to pay just 15% of the purchase price in the first three months, and the rest only within the next 10 years. Additionally, the privatization program provides for simplified sale of land plots located along international highways, as well as the sale and registration of land assets for the construction of commercial and service facilities along those roads. Earlier this year Mirziyoyev criticized the slow pace of property privatization in the country and noted that it could bring 20 trillion sum ($1.5 billion) to the national budget. According to Mirziyoyev, many enterprises have artificially inflated their valuations to avoid transferring state assets to private ownership. The Ministry of Health (39), Uzpromstroybank (27), the Ministry of Preschool and School Education (21), the Committee on Roads (17), the Ministry of Higher Education, Science and Innovation (14), Uzbek Postal Service [Pochtasi] (14), and the Ministries of Culture and Water Management (13 each) have the most unrealized assets that should be transferred to the docket for privatization. Thanks to the incentives, significant revenues are expected from the sale of land to entrepreneurs through the auctions, which last year generated 1 trillion sum ($78 million) in windfall for the state budget. Among the most significant objects privatized in recent years were the Kokand Superphosphate Plant, in which a foreign investor invested $40 million and increased production fourfold. Furthermore, the sale of state stakes in Ipoteka Bank ($324 million) and in Coca-Cola Uzbekistan ($252 million) netted significant cash injections for the government.

Strategy Afghanistan Security Terrorism Central Asia

The Taliban and its Neighbors: An Outsider’s Perspective

This is part two of a piece of which part one was published here. The topic of a regional approach to solving Afghanistan's problems is increasingly being discussed in various expert and diplomatic circles. The International Crisis Group (ICG), a reputable think tank whose opinion is extremely interesting as part of an "insider vs outsider" set of viewpoints, writes about this in particular. A report from ICG entitled "Taliban's Neighbors: Regional Diplomacy with Afghanistan" is one of the first works to summarize the role and place of the region as regards the situation around Afghanistan. In the voluminous work, the authors touch upon almost all aspects - issues of diplomatic recognition, security, terrorist activity, trade and economic relations within the region, water issues and others. In their conclusions, ICG analysts point out that many steps towards regional cooperation aren't related to Western donors, but European countries should nevertheless be interested. Europeans in particular would benefit from a stable, self-sufficient region that isn't a major source of illegal drugs, migrants or terrorism. But sanctions and other Western measures designed to show disapproval of the Taliban are obstacles to a more functional relationship between Kabul and the countries of the region. Significant progress depends on Western support - or at least tacit acquiescence. While such practical steps need not lead to recognition of the Taliban regime, they will contribute to regional peace and security. However, experts are concerned that the emerging regional consensus is directly dependent on security and stability issues in Afghanistan - if regional neighbors feel that the government cannot restore order within Afghanistan's borders and contain transnational threats, the consensus may well collapse. If that happens, regional countries may be tempted to choose sides in another intra-Afghan civil conflict, repeating the destructive pattern of past decades. At the same time, experts believe that the first step toward improving regional security cooperation would be to cool down the rhetoric on all sides and get regional players to agree on security issues, even if they have different priorities. Security information sharing within the region also suffers because the Taliban have yet to build a trusted dialog. They lack credibility because of their complete denial of certain threats. Meanwhile, countries in the region and the world are guided by inflated estimates of militant numbers. The ICG's assessments of the security threats posed by Islamic State Khorasan Province (ISKP) are broadly in line with the consensus - in some ways, the growing concern about ISKP is paradoxical due to the fact that the overall level of violence associated with the group has declined over the past two years. The question of whether ISKP could become a more potent transnational threat in the future remains open. So far, its operations outside of its original territory near the Afghanistan-Pakistan border have been limited. On the other hand, ISKP continues to attract recruits from different parts of Central and South Asia and encourages attacks outside Afghanistan - arguably making it the most dangerous armed group in...

Economy Central Asia Banking Kazakhstan Finance Strategy

Over 90% of Economically Active Kazakhstanis Have Loans

Lyazzat Usenbekova, director of consumer protection at the Association of Financiers of Kazakhstan, conducted calculations to find out what percentage of Kazakh citizens have debt obligations, concluding that "more than 90% of those who actively participate in the economic life of the country bear the burden of credit obligations on their shoulders." Usenbekova specified that this percentage applies to those who are indebted to credit organizations. At the same time, the structure of loans reveals interesting details: according to her data, almost a third of citizens take out loans for relatively small amounts, meaning no more than 500,000 tenge ($1,115). However, they account for only 1.7% of the total loan portfolio of individuals. Meanwhile, 5% of Kazakhs have debts over 10 million tenge ($22,290), and their share in the total volume of loans accounts for 42.3%. "It may seem that loans for large sums are a cause for concern, but before issuing such loans, clients are carefully checked for their ability to pay, their debt load and other aspects," Usenbekova emphasized. Usenbekova also looked at the category of loans under 300,000 tenge, suggesting they are probably for consumer needs. "Such loans are often interest-free and, with proper borrower discipline, should not cause serious difficulties with repayment," she explained. But there is no perfect picture yet, Usenbekova stated, stressing the need to improve people's financial literacy and their responsibility to their debts. Majilis (lower chamber of parliament) representative, Tatyana Savelyeva assessed the prospects of enacting changes envisaged by the draft law on minimizing risks in lending and protecting borrowers' rights. "We are likely to see real results in a few years, when these innovations begin to operate. For example, in debt regulation. By then we will be able to objectively assess their effectiveness," Savelyeva opined. The proposed bill to protect the rights of borrowers provides for a ban on the transfer of debts to collection agencies within 24 months of the start of delinquency and for debt settlement procedures that exclude fines, penalties and commissions.

Transport Strategy Economy Export/import Central Asia Kazakhstan

New Freight Port in Iraq Offers Kazakh Companies Long-Term Prospects

The Association of Kazakhstan Freight Railway Carriers is reporting that an Emirati company, AD Ports, is planning to build a new port and economic zone. The area that the company has identified for the zone is located to the south of the Iraqi city of Basra; if the project goes ahead, it will be an alternative to Egypt's Suez Canal in transcontinental freight shipping. "AD Ports (an Abu Dhabi-based port and logistics operator) has signed a preliminary agreement with the state-owned company managing Iraqi ports to establish a joint venture," commented the Kazakh freight association. According to them, AD's plan, centering on the new port called Grand Faw, is to create a corridor for Asian-European trade, bypassing the Egyptian city of Suez. The Grand Faw Port is set to become one of the largest in the Middle East, with terminals for handling containerized, bulk and liquid cargo. The corridor is expected to be ready by 2038. In Kazakhstani it is believed that the project is promising, but extremely costly. "We should not forget that all land logistics corridors are more costly than sea corridors. That's why Kazakhstan has such problems with logistics -- it has no access to the sea. Even if the Suez Canal is closed and the Panama Canal shoals [becomes shallow], sea transport will be more profitable. Yes, alternatives are needed. However, I would not count heavily on the new project," economist Andrei Chebotarev told The Times of Central Asia. Chebotarev referenced Kazakhstan's plan to build the North-South transport corridor. A new logistics route alternative to Suez would be a good addition; however, so far the UAE hasn't included Kazakhstan in its plans. Due to the recent attacks by Yemen's Houthi rebels on vessels in the Red Sea, the volume of maritime traffic through the Suez Canal has decreased, which in turn has increased demand for freight transport via multimodal routes.

Investments Strategy Economy Export/import China Central Asia Kazakhstan Transport Energy

Tokayev Celebrates Kazakh-Chinese Economic Ties at Boao Forum

Kazakh President Kasym-Jomart Tokayev was feted as guest of honour at the 23rd Boao Asian Forum (BFA) : "Asia and the World: Common Challenges, Common Responsibility." He was joined at the opening ceremony of the plenary session in the Chinese province of Hainan by: Chairman of the BFA Board of Directors Ban Ki-moon, Chairman of the Standing Committee of the National People's Congress Zhao Leji, President of Nauru David Adang, Prime Minister of Sri Lanka Dinesh Gunawardena, Prime Minister of the Commonwealth of Dominica Roosevelt Skerrit, Chairman of the international non-governmental organization "Council of Elders" Mary Robinson, Secretary General of the OECD Matthias Kormann, and Director General of the UN's World Intellectual Property Organization (WIPO) Daren Tang. In his address to the forum, Tokayev made reference to the fact that against the backdrop of escalating world conflicts, there is tension in international trade and an assumption that the growth rate of global GDP will be the lowest in the past 30 years. However, Asia's role in this sphere is increasing, and the region is projected to provide 60 percent of global GDP growth this year. Global trade giants located in Asia are now attracting more and more foreign investment on account of Asia being home to the world's leading technology centres, responsible for 70 percent of patent developments. "Of the expected $30 trillion growth in middle-class consumption by 2030, only $1 trillion is expected to come from Western economies. Collectively, all these factors point to the so-called 'Asian Renaissance," stated Tokayev. He then emphasized the role of the current forum to demonstrate the advanced achievements of the region: "Kazakh-Chinese relations are based on an effective partnership that has made Kazakhstan China's main trade and economic partner in Central Asia. Kazakhstan accounts for half of Chinese trade and investment in the region. Last year, trade turnover between Kazakhstan and China reached a historic record of $41 billion. In 2023, the volume of cargo traffic between our countries increased by 22% to almost 30 million tons." The Kazakh president also mentioned that 80 percent of all land transportation between China and Europe is carried out through Kazakhstan, noting the role of the "One Belt, One Road" project in the creation of modern multimodal, environmentally safe and sustainable infrastructure in the region. With regard to the economic success of the Kazakh Republic, he drew attention to the fact that the country's economic growth of 5.1 percent last year almost exceeds the projected growth rate of the world economy twofold. Plans were outlined for further developments in the field with reference to an open-door policy, abundant resources, and liberal market reforms, aimed to create a favourable ground for mutually beneficial cooperation with China. Tokayev reported that his country is becoming increasingly attractive to investors due to measures to improve the fiscal and monetary system, market reforms, and a price-competitive economy. He also called on the world community to ensure equal opportunities for all countries: "The huge Asian bond market with its huge market capitalization...