BISHKEK (TCA) — The Publisher’s note: Central Asia is an important geopolitical area between Europe, Russia and China. It is in Central Asia that world powers have confronted each other for centuries; it is here that China needs to succeed with its new Silk Road Belt for direct access to the Western markets; and it is here that a large wealth of raw materials has its origin. Every week thousands of news appears all over the world in printed and online media and it is quite understandable that 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 the region, and for this reason we are presenting this Weekly Digest of Central Asia which compiles what other media have reported during the past week.
KAZAKHSTAN
Will Europe notice modernization of Kazakhstan?
Kazakhstan’s new modernisation drive can attract the attention of European policymakers and business, as the EU’s cooperation with Kazakhstan still remains far below its potential
Sep 4 — “Kazakhstan’s intense efforts to reform its economy and society and attract foreign investment still go largely unnoticed in Europe, even though the country – the motor of Central Asia’s economy – is increasingly becoming a relevant international player.” READ MORE: http://vestnikkavkaza.net/analysis/Will-Europe-notice-modernization-of-Kazakhstan.html
Minister: Multiculturalism flourishes in Kazakhstan
In an interview, Kazakhstan’s deputy foreign minister speaks about nuclear disarmament, relations with big powers and Kazakhstan’s multiculturalism traditions
Sep 5 — “Yerzhan Ashikbayev was appointed Deputy Minister of Foreign Affairs of Kazakhstan in 2013. He previously served as deputy head of the prime minister’s office, head of foreign policy at the office of the president, and head of the foreign minister’s Chancellery. In his role as deputy foreign minister, Ashikbayev is responsible for relations with the UN and the Americas.” READ MORE: https://www.euractiv.com/section/central-asia/interview/for-sr-on-tuesday-in-kazakhstan-multiculturalism-flourishes-minister/
Kazakhstan and South Korea: 25 years of mutual sympathy, trust and support
Kazakhstan is South Korea’s most important economic partner in Central Asia. Moreover, Seoul seeks a free trade agreement with the Eurasian Economic Union (EEU), of which Kazakhstan is an important member and could act as a bridge for Korea to other EEU member states
Sep 5 — “With the new government of South Korea, Astana and Seoul have greater momentum to expand relations. This year, dealings between the countries have intensified significantly thanks to EXPO 2017, said South Korean Ambassador and Korean pavilion commissioner Kim Dae-sik in an interview with The Astana Times.” READ MORE: http://astanatimes.com/2017/09/kazakhstan-and-south-korea-25-years-of-mutual-sympathy-trust-and-support/
Kazakhstan – Big Potential And NPLs
Although Kazakhstan has largely recovered from the financial crisis of a decade ago, non-performing loans (NPLs) remain a big headache for the country’s banking sector
Sep 6 — “Some of the best trades start with a disaster… when things are so bad they can’t get any worse. When the situation is so dire, it can only get better. When investors have given up, prices fall. And at that point, it’s sometimes possible to find incredibly cheap assets.” READ MORE: https://www.valuewalk.com/2017/09/kazakhstan-big-potential-npls/
Kazakhstan may strike separate deal with OPEC on oil output curbs
Despite its commitments to OPEC, Kazakhstan has to increase crude production to repay huge investments made in the expensive Kashagan oil project
Sep 7 — “Kazakhstan is aiming for a standalone deal with leading global oil producers on restraining its crude production due to a need to crank up output at its Kashagan field, a Kazakh official said on Thursday.” READ MORE: https://uk.reuters.com/article/uk-kazakhstan-oil-kashagan/kazakhstan-may-strike-separate-deal-with-opec-on-oil-output-curbs-idUKKCN1BI1T4
Kazakhstan: Editor Convicted
By prosecuting and convicting yet another journalist, authorities in Kazakhstan continue suppressing free speech and critical expression in the country, tightening their grip on the Kazakh media sphere
Sep 7 — “An Almaty court on September 7, 2017, convicted the editor of one of Kazakhstan’s few remaining critical newspapers in a politically motivated money laundering trial, Human Rights Watch said today.” READ MORE: https://www.hrw.org/news/2017/09/07/kazakhstan-editor-convicted
KYRGYZSTAN
Kyrgyzstan exports electricity, increases coal consumption
Kyrgyzstan has overcome its chronic energy crisis which caused power blackouts and electricity rationing in recent years. But the country should thank for it not human but rather natural factors
Sep 2 — “For the first time over recent years, the water level in the reservoir of the Toktogul hydro power plant, the largest in Kyrgyzstan, has reached its maximum. The reservoir has currently 19.6 billion cubic meters of water, 2.7 billion cubic meters more compared to the same period last year. This gives Kyrgyzstan an opportunity to export electricity to neighboring countries, Vice Prime Minister of Kyrgyzstan Duishenbek Zilaliyev said.” READ MORE: https://timesca.com/index.php/news/18573-kyrgyzstan-exports-electricity-increases-coal-consumption
Uzbekistan offered to enter EAEU and EU markets through Kyrgyzstan
Uzbekistan has consistently opposed the idea of joining the Russia-led Eurasian Economic Union of which Kyrgyzstan is a member, but Bishkek now offers Tashkent to use Kyrgyzstan as a bridge to the large EEU market
Sep 5 — “Uzbek businessmen were offered to enter the EAEU and EU markets through Kyrgyzstan. This idea was voiced by Kyrgyz Economy Minister Artem Novikov during the Kyrgyz-Uzbek business forum, Kabar news agency reported.” READ MORE: https://en.trend.az/casia/uzbekistan/2792935.html
Farewell to Kyrgyzstan’s “island of democracy”
An independent journalist who has fled Kyrgyzstan due to the persecution by authorities states his case and speaks about the shrinking freedom of speech in the country once dubbed an “island of democracy” in Central Asia
Sep 6 — “In Kyrgyzstan, independent publications are being shuttered left, right, and centre on far-fetched and often absurd pretexts. The authorities frequently bring criminal cases against human rights activists and journalists — in other cases, the state slams them with huge fines or seizes their property.” READ MORE: https://www.opendemocracy.net/od-russia/ulugbek-babakulov/farewell-to-kyrgyzstans-island-of-democracy
Kyrgyzstan: Revolution Bulldozer Silenced With YouTube
Another opposition-minded politician faces criminal charges in Kyrgyzstan based on evidence which he says has been fabricated by authorities
Sep 6 — “Security services in Kyrgyzstan have filed criminal charges against a veteran politician known best for his active role in fomenting two successful antigovernment revolts, a feat that has earned him the nickname “revolution bulldozer.” Azimbek Beknazarov is accused of giving false testimony during the trial of Omurbek Tekebayev, another seasoned and now-jailed opposition rabble-rouser.” READ MORE: http://www.eurasianet.org/node/85001
TAJIKISTAN
Tajikistan: counting the cost of a banking meltdown
The banking system in Tajikistan is experiencing hard times, with four banks facing a liquidity crisis due to reckless lending policies. The situation owes much to dubious practices in the banking system, but it is ordinary customers of the banks who now pay for that. A EurasiaNet.org article sheds the light on the issue
Sep 3 — “Before hanging himself at the beginning of August, 50-year-old Dushanbe resident Hairiddin Kodirov left a suicide note blaming the owner of Tojprombank for his misfortunes.” READ MORE: https://timesca.com/index.php/news/18574-tajikistan-counting-the-cost-of-a-banking-meltdown
Tajikistan: President Returns From China Trip With $310M
China is strengthening its economic, and political, influence on Tajikistan, with $1.2 billion of Tajikistan’s $2.3 billion foreign debt owed to China
Sep 5 — “Tajikistan’s President Emomali Rahmon has returned from a trip to China with nearly $310 million in grants and loans— the bulk of which is to be spent building a brand new government and parliament complex. The financial haul was the result of Rahmon’s 16th visit to neighboring China.” READ MORE: http://www.eurasianet.org/node/84991
No Oil No Credit History No Problem Emerging Market Tajikistan Bond
Tajikistan is seeking to raise funds on the international financial market for the completion of the country’s largest-ever hydro power project — the Rogun dam — which is to make Tajikistan energy independent
Sep 7 — “Tajikistan, the poorest state in central Asia, is trying for its first international bond deal. After a few false starts over the years, this time it might pull it off — showing emerging market investor caution is being thrown to the wind. Or in this case, water.” READ MORE: https://www.bloombergquint.com/opinion/2017/09/07/no-oil-no-credit-history-no-problem-emerging-market-tajikistan-bond
Tajikistan raises $500m in international bond market debut
Tajikistan’s inaugural bond issue, aimed at funding the expensive Rogun hydro power project, is estimated to have increased the country’s external debt from 35 percent to 50 percent of GDP
Sep 7 — “Tajikistan has raised $500m in its inaugural international bond, which has priced at 7.125 per cent for a 10-year term in the latest evidence of keen investor appetite for relatively high-yielding sovereign debt from infrequent and new issuers.” READ MORE: https://www.ft.com/content/6840feb0-ce94-3857-b15e-9f9acccf0b62
TURKMENISTAN
Turkmen economy demonstrates stable growth
The government of Turkmenistan continues reporting steady economic growth despite growing prices and shortages of some basic goods in the country
Aug 31 — “Macroeconomic indices for eight months of the current year prove stable growth in all sections of national economy. Thus, the GDP increased to 6.4 percent including to 3.8 percent in industrial sector, 3.1 in construction, 10.9 in transport and communication, 9.2 in trade, 4.6 in agriculture and 10 per cent in service sphere.” READ MORE: http://www.turkmenistan.gov.tm/_eng/?id=8946
Turkmenistan: Homeowners Evicted, Denied Compensation
Rights groups report on massive housing violations by authorities in Ashgabat as Turkmenistan prepares for hosting the largest sports event in its history
Sep 4 — “The government of Turkmenistan has forcibly evicted homeowners in Ashgabat and demolished their homes without adequate compensation in preparation for the Asian Indoor and Martial Arts Games, the Turkmen Initiative for Human Rights (TIHR) and Human Rights Watch said today.” READ MORE: https://www.hrw.org/news/2017/09/04/turkmenistan-homeowners-evicted-denied-compensation
Turkmenistan could benefit from India-proposed undersea gas pipeline from Iran
Should the India-proposed project to lay an undersea gas pipeline from Iran is ever implemented, Turkmenistan would have a chance, and interest, to resume gas supplies to Iran that were stopped in January over Iran’s alleged debt for previous supplies
Sep 8 — “India has proposed building a 1,300 km undersea pipeline that would supply natural gas from Iran, with the possibility for Turkmenistan to become a source for the planned pipeline via swap operations with Iran.” READ MORE: https://timesca.com/index.php/news/18600-turkmenistan-could-benefit-from-india-proposed-undersea-gas-pipeline-from-iran
UZBEKISTAN
Uzbekistan: President Heads Up Security Bodies With Loyalists
After the most recent reshuffle in Uzbekistan’s defense and interior ministries, Rustam Inoyatov, the head of the Uzbek state security service, remains the only Karimov-era senior security official still in office
Sep 5 — “The president of Uzbekistan has reshuffled senior security officials, appointing loyalists as head of the police and army in a move that will be seen as an effort to bolster his grip over power. Shavkat Mirziyoyev on September 4 named Pulat Bobojonov as Interior Minister, replacing an official who will head up the Defense Ministry.” READ MORE: http://www.eurasianet.org/node/84966
Turkish state lender Ziraat to buy half of Uzbek UT Bank
Uzbekistan President Shavkat Mirziyoyev plans to pay an official visit to Ankara in October, which shows Tashkent’s intention to strengthen ties with Turkey — a key member of the Turkic-speaking community of nations
Sep 7 — “Economy Minister Nihat Zeybekci announced that Turkish state lender Ziraat Bank plans to buy a 50 percent stake in Uzbekistan’s UT Bank. Addressing reporters following his meeting with Uzbekistan Deputy Prime Minster Jamshid Kuchkarov, Economy Minister Nihat Zeybekci elaborated on economic relations, particularly in banking and aviation, between Turkey and Uzbekistan, stressing that the trade volume between the two countries stands at around $1.2 billion.” READ MORE: https://www.dailysabah.com/finance/2017/09/07/turkish-state-lender-ziraat-to-buy-half-of-uzbek-ut-bank
Be Careful What You Promise, President Mirziyoev
During his visit to Bishkek, Uzbek President Mirziyoev said Uzbekistan is ready to take part in financing Kyrgyzstan’s Kambarata hydro plant project, although there is a big question if Tashkent can afford the expensive project
Sep 7 — “He has not even officially been president of Uzbekistan for a full year, but Shavkat Mirziyoev has already taken some big steps toward improving his country’s relations with its neighbors. However, one wonders if he might even be going too far in some cases.” READ MORE: https://www.rferl.org/a/qishloq-ovozi-uzbekistan-mirziyoev-big-promises/28722115.html
Uzbekistan returns to currency convertibility, delivers blow to black market
After two decades of restrictions and black-market reign, the government of Uzbekistan has finally introduced the currency convertibility. The move will certainly help bring in much-needed investments, but it may also lead to unpleasant surprises for the Uzbek population — such as consumer prices growth. A EurasiaNet.org article elaborates on the issue
Sep 8 — “The big bang has arrived for Uzbekistan’s financial system, with the government lifting decades-old currency restrictions that had choked entrepreneurship and enabled the black market to thrive. At the opening of business hours on September 5, the Central Bank publicized the new official exchange rate for the national currency — the sum.” READ MORE: https://timesca.com/index.php/news/18602-uzbekistan-returns-to-currency-convertibility-delivers-blow-to-black-market
AFGHANISTAN
Despite risks, Trump administration moves forward with Afghanistan mining plan
The US is about to move forward with developing Afghanistan’s huge mineral resources — a move that would bring in much-needed investments in the Afghan economy. This would happen while China is already developing Afghan mineral deposits
Aug 29 — “The United States has already spent almost half a billion dollars on Afghanistan’s mining industry with little to show, but the Trump administration still appears determined to move forward with plans to tap the country’s buried wealth.” READ MORE: http://www.chicagotribune.com/news/sns-wp-afghan-mining-00668fbc-8ce6-11e7-84c0-02cc069f2c37-20170829-story.html
Trump Is Treating Pakistan Like a Scapegoat for America’s Failures in Afghanistan
The National Interest’s author believes that not Pakistan, but America’s inconsistent policies and impatient approach have destabilized Afghanistan
Sep 6 — “Albert Einstein defined insanity as “doing the same thing over and over again, but expecting different results.” This sums up Pakistan’s perspective of President Donald Trump’s Afghan policy. After sixteen years of war that has cost Americans $1 trillion, Trump has opted for the tried, tested and failed formula of conflict militarization in Afghanistan.” READ MORE: http://nationalinterest.org/feature/trump-treating-pakistan-scapegoat-americas-failures-22192
U.S. general in Afghanistan apologizes for highly offensive leaflets
For Western nations, dealing with Afghanistan with its deep-rooted Islamic values and traditions is often difficult for the simple reason that they are not aware of, and sometimes involuntarily insult, such traditions
Sep 6 — “A senior U.S. commander in Afghanistan apologized Wednesday for propaganda leaflets that superimposed a key Islamic text on the image of a dog. The leaflets distributed by U.S. forces in Parwan province, north of Kabul, on Tuesday depicted a lion, representing the U.S.-led coalition, chasing a dog with a section of the Taliban’s banner, containing a passage from the Koran in Arabic, superimposed on its side.” READ MORE: https://www.washingtonpost.com/world/asia_pacific/us-general-in-afghanistan-apologizes-for-highly-offensive-leaflets/2017/09/06/2a412524-930b-11e7-8482-8dc9a7af29f9_story.html?utm_term=.dfc86527e105
3,500 more U.S. troops headed to Afghanistan, officials say
The US is sending more troops to Afghanistan in a move that many observers believe will not help achieve peace in the war-torn country
Sep 6 — “The United States will send an additional 3,500 troops to Afghanistan, U.S. officials said Wednesday. The long-expected deployment would bring the total number of American troops in the country to more than 14,000.” READ MORE: https://www.washingtonpost.com/news/checkpoint/wp/2017/09/06/3500-more-u-s-troops-headed-to-afghanistan-officials-say/?utm_term=.480050222f66
WORLD
Labour migrants from Kyrgyzstan, Tajikistan and Uzbekistan to Russia amidst uncertain trends
Under the present economic realities, dependence on migrant labour for Central Asia’s economies may be undesirable but eliminating it is simply unrealistic
Sep 5 — “In Central Asia job supplies do not match job demand since governments and their investment policy do not offer the required political stability and sufficient incentives to attract local and foreign investors. This simply means that migration of Kyrgyz, Tajik and Uzbek working forces toward Russia and in less number other countries is here to stay for quite a while.” READ MORE: https://timesca.com/index.php/news/26-opinion-head/18584-labour-migrants-from-kyrgyzstan-tajikistan-and-uzbekistan-to-russia-amidst-uncertain-trends
Taliban Fits Perfectly Into US Strategy to Destabilize Afghanistan, Central Asia
For both Russia and the US, the Taliban and the situation in Afghanistan are just tools for achieving geopolitical goals in the wider Central Asian region
Sep 5 — “The emergence of the Taliban was facilitated by the US and its allies, who tried to use the terrorist threat to maintain their control over the Central Asian region while simultaneously posing a challenge to America’s geopolitical competitors, Russia and China, Afghan experts told Sputnik.” READ MORE: https://sputniknews.com/analysis/201709051057082531-us-taliban-china-russia/
Kurdistan Independence Referendum to Potentially Blow Mideast Apart
An Israeli political analyst says the emergence of a sovereign Kurdish state in the Middle East would turn the region upside down and lead to a de facto abolition of the international doctrine of the inviolability of Mideast borders
Sep 7 — “The creation of a sovereign Kurdish state in Iraq could result in the remapping of the Middle East and the collapse of the established status quo, Israeli political analyst Avigdor Eskin writes for RIA Novosti. Eskin notes that regardless of the potential repercussions the Iraqi Kurds are determined to hold an independence vote on September 25.” READ MORE: https://sputniknews.com/analysis/201709061057154420-kurdistan-referendum-independence/
