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Begin New Search Topic Economics Political Geography Central Asia Content Type Working Paper

1. How Central Asians Pushed Chinese Firms to Localize

Author:
Dirk Van Der Kley and Niva Yau
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
There has been a sea change in China’s economic involvement in Central Asia. Large-scale transport and electricity projects funded by Chinese government loans have dried up. Hydrocarbon exports to China continue, but they are not the focus of most new projects. Instead, there are a growing number of industrial projects that seek to make value-added products that can be exported. These projects are increasingly staffed by Central Asians who receive technical training from Chinese firms. This change has been primarily driven by Central Asian states. The region’s governments have long pushed for industrial capacity building, including the upskilling of local workers. In addition, debt concerns in Kyrgyzstan in particular have made Chinese loans less attractive and less prevalent. This trend has coincided with Chinese policy banks’ embrace of more conservative lending policies globally for infrastructure projects. Chinese firms have begun adapting to these demands. They have steadily increased their proportions of local hires by training Central Asian workers both onsite and in China to address skills shortages. They have tried to engage local communities to earn a social license for their overseas operations. The Chinese government is now following suit. It is developing more formal cooperation agreements on industrialization and upskilling in addition to pre-existing, ad-hoc arrangements by individual companies. So far, the outcomes have been mixed. Many Chinese firms in Central Asia are employing more locals. Yet the more closely integrated these Chinese firms become with the region’s economies, the more they must deal with, or be co-opted by, localized corruption and political fights. Newly available polling data shows that public sentiments toward China are becoming more negative. Chinese companies are flexibly adapting to this environment of heightened expectations in a variety of ways. The views that outside observers in Washington and elsewhere harbor of China’s infrastructure investments through the Belt and Road Initiative (BRI) in Central Asia are outdated and do not reflect how much Chinese firms and eventually the Chinese government have adapted to meet local needs. Any Western-proposed alternative to the BRI needs to take these considerations into account.
Topic:
Economics, Business, Industry, and Job Creation
Political Geography:
China, Central Asia, and Asia

2. Are Distortions Good for Development? Structural Transformations and Cotton in Uzbekistan

Author:
Lorena Lombardozzi
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Agriculture is at the origin of all economic activities and thus obtains a notable position in growth theory. The contribution of primary sector to long-term economic development has given space to asymmetrical positions. In the current context of globalized markets and downsized states, Uzbekistan is incontestably an exceptional case-study, applying distortive measures to its economy, and to agricultural sector in particular, to actively shape its comparative advantages. With reference to the cotton sector taxation in Uzbekistan, this analysis proposes to shed light on the implications of the main theoretical arguments around distortions. It will investigate the “circular cumulative and interactive process” produced and how it is being a driver of structural transformation, to exploit economies of scale and transfer capital investments for heavy industry, concluding that distortion can actually be instrumental for development.
Topic:
Agriculture, Economics, Rural, and Crops
Political Geography:
Central Asia, Asia, and Uzbekistan

3. Afghan Economic Policy, Institutions and Society Since 2001

Author:
Paul Fishstein and Murtaza Edries Amiryar
Publication Date:
10-2015
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The general expectation among Afghans after the fall of the Taliban was that the state, equipped with financial resources and technical assistance from the international community, would once again take the lead in the economic sphere. Instead, Kabul adopted a market economy. The move remains controversial in some quarters. This report, derived from interviews conducted in 2015 and 2010, takes stock of the competing ideologies in Afghanistan today with respect to the economy.
Topic:
Conflict Resolution, Development, Economics, and Markets
Political Geography:
Afghanistan and Central Asia

4. The Revival of the Silk Roads (Land Connectivity) in Asia

Author:
Wai-Mun Chia and Pradumna B. Rana
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This paper argues that contrary to popular belief, in the bygone era, there was not one but two Silk Roads in Asia - the Northern and the less well-known South-western Silk Road (SSR). The SSR connected South/Central Asia with southern China and present day Association of Southeast Asian Nations (ASEAN). After enjoying a rich history of around 1,600 years, the Silk Roads went into disrepair. Now, for various economic, security, and political reasons, land connectivity is once again making a comeback in Asia. These include the (i) "Go West" and the recent "New Silk Roads" policies of China; (ii) "Look East" policies of South Asia; (iii) opening of Myanmar, a node between South Asia and East Asia; and (iv) growing importance of supply-chain trade. The focus has, however, been mainly on reviving the Northern Silk Road with relatively few actions being initiated to revive the SSR. Mirroring the on-going efforts in the Greater Mekong Sub-region and the Central Asian region, this paper proposes four economic corridors for Pan-Asian connectivity that is to connect South/Central Asia with southern China and ASEAN. The paper argues that the revival of land connectivity in Asia is making Maritime Asia of the past, more continental-based. One implication is that regional institutions focusing solely on Maritime Asia, such as the Asia Pacific Economic Cooperation (APEC), may be losing some of their relevance vis-à-vis say the more continental-based China-led Shanghai Cooperation Organization. The other is that the influence of the West in Asia's security may be declining relative to that of China, India, and Russia.
Topic:
Economics, International Trade and Finance, and Regional Cooperation
Political Geography:
South Asia, Central Asia, and Asia

5. Resetting Pakistan's Relations with Afghanistan

Publication Date:
10-2014
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Pakistan's relations with Afghanistan have been largely characterised by mutual mistrust and devised through a narrow security prism. While it will require considerable effort to end deep-seated animosity, both countries share close ethnic, linguistic, religious and economic ties. Longstanding Afghan migration to the territories that now compose Pakistan makes them an integral part of Pakistani society. Yet, military-devised interventionist policies, based on perceived national security interests, including support for Afghan, mainly Pashtun, proxies, have marred the relationship. The incoming Afghan President Ashraf Ghani Ahmadzai has offered to expand bilateral ties, providing Islamabad fresh opportunities to improve the relationship. Prime Minister Nawaz Sharif has responded positively, but the Pakistani military and civilian leadership's preferences toward Kabul are diverging further as Afghanistan's transition draws closer. By recalibrating relations toward economic ties and seeking solutions to the presence of millions of Afghan refugees on its soil, Pakistan could engage more constructively with its neighbour.
Topic:
Conflict Resolution, Economics, Islam, and Bilateral Relations
Political Geography:
Pakistan, Afghanistan, South Asia, and Central Asia

6. The Rahmon Phenomenon: New Challenges for Tajikistan's Long-Standing President

Author:
Alexey Malashenko and Aziz Niyazi
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Emomali Rahmon's reelection as president of Tajikistan in 2013 testifies to his regime's stability and its capacity for self-preservation. He now faces a number of complex tasks, which include undertaking economic reforms, counteracting religious smism, and resolving conflicts with neighboring countries. It is becoming increasingly difficult to maintain a high degree of stability under these conditions.
Topic:
Security, Economics, Religion, Governance, and Reform
Political Geography:
Central Asia and Tajikistan

7. Taking off as a Global Power? China's Foreign Policy "Grand Strategy"

Author:
Sven Bernhard Gareis
Publication Date:
04-2013
Content Type:
Working Paper
Institution:
George C. Marshall European Center for Security Studies
Abstract:
The People's Republic of China has long been a very visible actor in international politics. With 1.4 billion inhabitants, it is the most populous country in the world, with a land mass of 9.6 million square kilometers bordering 14 states in East, South, and Central Asia. China has a long Pacific coastline, along which it claims vast areas of the South China Sea. A nuclear power since 1964, the People's Republic of China has the largest armed forces in the world, numbering approximately 2.3 million soldiers. China has been a permanent member of the UN Security Council since 1971; for many years, it has figured prominently in all decision making processes with global impact.
Topic:
International Relations, Foreign Policy, Economics, and International Trade and Finance
Political Geography:
China and Central Asia

8. The Eurasian Customs Union: Friend or Foe of the EU?

Author:
Olga Shumylo-Tapiola
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The customs union formed by Russia, Belarus, and Kazakhstan in 2010— the largest in the world by territory—is becoming very real. Though hurdles remain, member states are eliminating non-tariff barriers to trade within the union, moving toward a common external tariff, and fine-tuning a joint customs code. As the customs union's influence on the world stage and in Europe's neighborhood is likely to increase, the European Union (EU) should attempt to understand the project and find ways to protect its own interests.
Topic:
Economics, International Trade and Finance, and Regional Cooperation
Political Geography:
Russia, Europe, Central Asia, Eurasia, Kazakhstan, and Belarus

9. Resource Management and Transition in Central Asia, Azerbaijan, and Mongolia

Author:
Richard Pomfret
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The paper presents a comparative analysis of the resource-rich transition economies of Mongolia and the southern republics of the former Soviet Union. For Uzbekistan and Turkmenistan, the ability to earn revenue from cotton exports allowed them to avoid reform. Oil in Azerbaijan and Kazakhstan was associated with large-scale corruption, but with soaring revenues in the 2000s their institutions evolved and to some extent improved. Kyrgyzstan and Mongolia illustrate the challenges facing small economies with large potential mineral resources, with the former suffering from competition for rents among the elite and the latter from lost opportunities. Overall the countries illustrate that a resource curse is not inevitable among transition economies, but a series of hurdles need to be surmounted to benefit from resource abundance. Neither the similar initial institutions nor those created in the 1990s are immutable.
Topic:
Corruption, Economics, Oil, and Natural Resources
Political Geography:
Central Asia, Kazakhstan, Uzbekistan, Soviet Union, Azerbaijan, and Turkmenistan

10. Russia, China and the Geopolitics of Energy in Central Asia

Author:
Alexandros Petersen and Katinka Barysch
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Energy has come to symbolise the geopolitics of the 21st century, reflecting countries' diminishing reliance on military and political power. Today, energy is an instrument of geopolitical competition, like nuclear weapons or large armies were during the Cold War. The means of international influence have become more diverse and sophisticated, but the goals remain much the same: national security, power projection, and control over resources and territory.
Topic:
Economics, Energy Policy, International Trade and Finance, Bilateral Relations, and Natural Resources
Political Geography:
Russia, China, and Central Asia