Welcome to the Caspian Daily, where you will find the 10 most important things you need to know on Caspian Sea Region. We appreciate ideas, reports, news and interesting articles. Send along to Caspian[at]moderndiplomacy.eu or on Twitter: @DGiannakopoulos
1At least since 9/11 and arguably for two decades before that, two propositions have informed U.S. policy in the Mideast. The first is that U.S. interests there are best served by the United States establishing a position of unquestioned preeminence. The second is that military might, wielded unilaterally if necessary, holds the key to maintaining that dominant position. Call it the Big Enchilada policy, with attitude. As implemented, however, that approach has yielded almost uniformly unfavorable results. Iraq and Afghanistan provide exhibits A and B, of course. But Libya, Somalia and Yemen don’t look much better. Even so, some hawkish types argue that trying a little harder militarily will produce better outcomes. Their ranks include a platoon of Republican presidential candidates vowing if elected to get tough on the ayatollahs, Andrew J. Bacevich for the Los Angeles Times.
2India Opens Gateway to Central Asian Gas Riches After Iran Deal. With U.S. sanctions easing, India is racing to build a port in Iran that will get around the fact that its land access to energy-rich former Soviet republics in Central Asia has been blocked by China and its ally Pakistan.“We’re seeing the latest manifestation of the Great Game in Central Asia, and India is the new player,” said Michael Kugelman, a South Asia expert at the Washington-based Woodrow Wilson International Center for Scholars. “It’s had its eyes on Central Asia for a long time.” While the world focuses on what Iran’s opening means for Israel and Arab nations, the ramifications are also critical for Asia. Closer Iran-India ties would allow New Delhi’s leaders to secure cheaper energy imports to bolster economic growth and reduce the influence of both China and Pakistan in the region. Natalie Obiko Pearson for Bloomberg.
3Turkmenistan’s government-owned TurkmenGaz will lead a consortium of the national oil companies of the four nations that will build and operate the ambitious Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, the petroleum ministry said without clarifying whether foreign private companies can still participate in the $7.6 billion project.
4Kazakhstan will establish an energy efficiency fund, which will become a tool for supporting energy service companies by allocating them credits and loans on preferential terms, said Albert Rau, Kazakhstan’s Deputy Investment and Development Minister.”Currently, works on the establishment of an energy efficiency fund are already being conducted together with the World Bank and the United Nations Development Program,” he said. “This will give additional impetus for the development of this sector in Kazakhstan. In this regard, we should follow the example of Europe, in particular Germany, which has made significant progress in the field of energy saving.” According to the “100 concrete steps” plan voiced by President Nursultan Nazarbayev, one of the important directions of Kazakhstan’s industrial development is the reduction of energy intensity in the gross domestic product of the country.
5A sophisticated cyber-attack on an email network at the Pentagon affected 4,000 military and civilian personnel working for the Joint Chiefs of Staff, and the network was shut down for two weeks. It was a so-called spear-phishing attack in which people are tricked into opening bogus emails which then infect the network.US officials did not say whether the attack has been linked to individuals or the Russian government but said it was “sophisticated.”One official said: “It was a spear-phishing attack traced to that country (Russia),” Another told NBC News: “It was clearly the work of a state actor.” No classified information was obtained but the Pentagon decided to shut the email system down.
6S-400 Triumf missile defense systems have entered service in the Russian Armed Forces on the Kamchatka Peninsula, the head of the Defense Ministry’s press service for the Eastern Military District said Friday.“The S-300 missile defense systems that were deployed earlier reliably defended the airspace for over a quarter of a century. The capabilities of the new technology will allow for the detection of air targets at more than 600 kilometers away and are several times better than the military efficiency of anti-air defense of foreign states,” Roman Martov said. The S-400 Triumf (SA-21 Growler) is a Russia’s next-generation anti-aircraft weapon system, carrying three different types of missiles capable of destroying aerial targets at short-to-extremely long range.
7A Business Incubation Center at Mingachevir Tech Park will be created before the end of this year, says executive director of the High Tech Park Seymur Agayev. Currently, the general plan of progress for selected areas and the very structure of the Mingachevir Tech Park is under development, he said.“There are a number of measures concerning the activities of the Mingachevir technology park that will be adopted, and the business incubator is one of them. We are developing a comprehensive program that will at once launch the activity of the Tech Park. In addition, discussions are underway with potential investors and members,” Agayev said.
8Will Vladimir Putin save Russia’s ailing firms, like EkoNiva, Rosneft, Gazprom? Including the money in the sovereign wealth funds, the government has $US358 billion in foreign currency reserves and gold. So why not put some to work aiding businesses? One problem is that some banks and companies are poorly managed and deserve to go under, says Bernie Sucher, a longtime US investor in Russia who serves on the board of Moscow-based UFG Asset Management. Bailing them out only delays the day of reckoning, he says. That’s what happened in the 2008 financial crisis in Russia, when “the government sprayed liquidity all over the economy”, he says. “The big miss in 2008 was the failure to use the crisis to pursue deep structural reforms.” Carol Matlack for Sydney Morning Herald.
9Kazakhstan government has revised the decree that made many popular resorts a special border zone requiring special passes. Foreigners will no longer have to obtain permits to visit them. It greatly widened the strip of nearborder land considered a special zone not supposed to be visited by foreigners without obtaining a prior permit from the local authorities. A lot of popular destinations, including Big Almaty Lake, Medeo high altitude skating rink, Shymbulak skiing resort, Lake Alakol, Kolsay Lakes and Charyn Canyon ended up in that zone.
10An agreement to build “Wind Parks” in the vicinities of the Iranian city of Khaf has been reached. According to the agreement, the project will be implemented by LLC “Azalternativenerji”. The project will be implemented within the framework of the Memorandum of Understanding, which was held in Baku in October 2014.
New ADB Platform to Help Boost Financing for Climate Action
The Asian Development Bank (ADB) has launched a new platform aimed at helping its developing member countries in Asia and the Pacific mobilize funding to meet their goals under the Paris Agreement.
The NDC Advance platform will help countries mobilize finance to implement Nationally Determined Contributions (NDCs) regarding greenhouse gas emissions that each country has voluntarily committed to under the Paris Agreement. NDCs also describe priority actions for countries to adapt to climate change.
The announcement was made at the 24th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP24) in Katowice, Poland, which is aiming to finalize a rulebook for the Paris Agreement when it goes into effect on 1 January 2020.
The agreement aims to limit the increase in the global average temperature to below 2°C, while aiming for 1.5°C.
“Through their NDCs, our developing member countries have made ambitious commitments to respond to climate change,” said ADB Vice-President for Knowledge Management and Sustainable Development Mr. Bambang Susantono. “We need to ensure that countries are able to mobilize the needed financing to deliver on their commitments. NDC Advance will help countries devise investment plans to tap financing from a variety of sources and to implement priority projects effectively.”
NDC Advance is funded through a $4.55 million grant from ADB and will have three aims: providing technical assistance that helps countries better engage with potential sources of climate finance and to make use of innovative finance mechanisms; identifying and prioritizing climate projects; and supporting countries in tracking how projects deliver against their NDC goals.
The new initiative will help propel the climate actions ADB has committed to under its Strategy 2030 program.
ADB earlier this year committed to ensuring that 75% of its operations will support climate change mitigation and adaptation by 2030, while providing cumulative climate financing of $80 billion from its own sources between 2019 and 2030.
Egypt: Shifting Public Funds from Infrastructure to Investing in People
Egypt has an opportunity to capitalize on current reforms by enabling more private investment in infrastructure and freeing up public funds for investments in people’s education, health and social protection. This is according to a new World Bank report launched today in Cairo,‘’Egypt: Enabling Private Investment and Commercial Financing in Infrastructure’’, which calls for increasing the public funds available for building human capital by expanding successful energy reforms to other key sectors, such as transport, logistics, water and agriculture.
“Egypt can learn from global experience and gain by increasing the use of private sector finance, management expertise and innovation in commercial infrastructure and agriculture, conserving public sector resources for where they are needed most”, said Clive Harris, Head for Maximizing Finance for Development for the World Bank.
Egypt is now beginning to reap the benefits of its transformative economic reform program. Macroeconomic stability and market confidence have been largely restored, growth has resumed, fiscal accounts are improving, and the public debt ratio is projected to fall for the first time in a decade.
“Egypt has demonstrated that by having a package aimed at reducing economic risks, pursuing sector level reforms and well-prepared bankable projects, large scale foreign and domestic investment can be achieved, This is visible through the US$ 2 billion invested in the largest solar park in the world, Benban, as well as US$ 13 billion in the Zohr field and other natural gas projects” said Ashish Khanna, Program Leader for Sustainable Development at the World Bank.
The report indicates that the action plan to further enabling private investment requires clear policy actions to resolve four cross cutting barriers to private investment – namely better management of land, transparency in Government procurement, efficiency in state owned enterprise and encouraging long term domestic financing. This needs to be complemented with developing projects for private investments with maximum economic impact, like the regional energy hub, logistics corridors, freight transport and agricultural transformation hubs.
The gains from reforms would also free up scarce public resources and allow for them to be re-allocated to investments in the education and health of Egyptians, the country’s human capital. Reforms in the energy sector provide an example of what is possible. The reform of energy subsidies freed up US$14 billon, reduced the pressure on the national budget and allowed the quadrupling of the investments in social safety net programs.
According to the report, for Egypt to maintain its reform momentum and focus on investing in its citizens, it will need to broaden and deepen its reform agenda to other sectors. This would be part of a fundamental shift away from the state as a provider of employment and output to an enabler of private investment; with the economy driven by a dynamic private sector generating jobs for the youth.
The report identifies four sectors which have huge potential for private investments and illustrates how successfully attracting those investments would generate growth, create jobs and ultimately contribute to developing Egypt’s human capital. The four sectors analyzed in the report are: transport, energy, water and sanitation, and agriculture.
The World Bank provides technical, analytical and financial support to help Egypt reduce poverty and boost shared prosperity. The focus of Bank support includes social safety nets, energy, transport, rural water and sanitation, irrigation, social housing, health care, job creation, and financing for micro and small enterprises. The World Bank currently has a portfolio of 16 projects with a total commitment of US$6.69 billion.
New Initiative to Mitigate Risk for Global Solar Scale-up
The World Bank and Agence Française de Développement (AFD) are developing a joint Global Solar Risk Mitigation Initiative (SRMI), an integrated approach to tackle policy, technical and financial issues associated with scaling up solar energy deployment, especially in some of the world’s poorest countries.
Initiated in Delhi at the first International Solar Alliance (ISA) summit in March 2018, the initiative will support the ISA’s goal to reduce costs and mobilize $1,000 billion in public and private investments to finance 1,000 GW of global solar capacity by 2030.
“The World Bank, in partnership with AFD, remains committed to the International Solar Alliance’s goals and to global efforts to fight climate change. Through this new, integrated approach, we hope to further scale up solar energy use by reducing the cost of financing for solar projects and de-risking them, especially in low-income countries,” said Riccardo Puliti, Senior Director of Energy and Extractives at the World Bank.
As the costs for solar power have fallen steadily, solar power is increasingly viewed as a key component in the fight against climate change. However, solar deployment has been slow in some emerging markets, particularly Africa, due to layers of risks perceived by the private sector in financing solar projects. The SRMI aims to change that.
“This partnership with ISA and the World Bank is another step towards achieving the objective of the Paris Agreement of redirecting financial flows in favor of low carbon and resilient development pathways. AFD is glad to join forces with these partners to deliver on the commitments made at COP21, to bring solutions to de-risk potential solar investments and mobilize the private sector to invest in sustainable development” said Rémy RIOUX, CEO of AFD.
The SRMI’s integrated approach will include:
- Support for the development of an enabling policy environment in targeted countries
- A new digital procurement (e-tendering) platform to facilitate and streamline solar auctions
- Targeting relatively small (under 20 MW) solar projects, offering a more comprehensive risk mitigation package of support to a wider range of investors and financiers to promote scale up at later stages. The financial risk mitigation package offered by SRMI will be supported by technical assistance and concerted engagement on planning, resource mapping and power sector reforms to ensure the creditworthiness of utilities in these countries
- Mitigating the residual project’s risks through adequate risk mitigation financial instruments for both on and off-grid projects
The governments of India and France launched the ISA, an international organization as part of the Paris Climate Agreement in 2015 to scale up solar energy resources, reduce the cost of financing for solar projects around the world and ultimately help reach the Sustainable Development Goal on energy (SDG7) of providing access to affordable, reliable, sustainable and modern energy to all. To date, 71 countries have signed the constituting treaty of the ISA, and 48 have ratified it.
Freedom, Sovereign Debt, Generational Accounting and other Myths
“How to draw the line between the recent and still unsettled EU/EURO crisis and Asia’s success story? Well, it might...
American (And Global) Oligarchy Rapidly Moving Towards Monarchy
Many people do not realize that the proverbial “noose” of civil rights, civil liberties and property rights are rapidly coming...
War, Anniversaries and Lessons Never Learned
On December 7, 1941, Japan attacked Pearl Harbor and the U.S. entered the Second World War. A war of horrors,...
Russian Aluminium, Health Ministry Announce Ebola Vaccine
Russian Aluminium (RUSAL), one of the world’s largest aluminium producers, together with the Ministry of Health of the Russian Federation,...
Asia’s Growth Outlook Steady Despite China–US Trade Conflict
Economies in developing Asia and the Pacific are weathering external challenges thanks to robust domestic demand, while inflationary pressures are...
New ADB Platform to Help Boost Financing for Climate Action
The Asian Development Bank (ADB) has launched a new platform aimed at helping its developing member countries in Asia and...
Arrogance of force and hostages in US-China trade war
Even before the ink on the comments made by those who (just like the author of these lines) saw the...
- Centre and Calm Yourself and Spirit on Restorative Yoga Energy Trail
- Queen Rania of Jordan Wears Ralph & Russo Ready-To-Wear
- OMEGA watches land on-screen in Universal Pictures’ new film First Man
- Experience the Prada Parfum’s Way of Travelling at Qatar Duty Free
- ‘Get Carried Away’ With Luxurious Villa Stays and Complimentary Private Jet Flights
Eastern Europe2 days ago
Dismantling Yalta system, or Ukraine as an instrument of destroying the world order
Defense2 days ago
European army: An apple of discord
South Asia2 days ago
Pakistan’s Increasing Tilt towards China
East Asia2 days ago
Will China Save the Planet? Book Review
Reports2 days ago
Vietnam’s economy grows robustly, but risks intensify
Newsdesk2 days ago
New Initiative to Mitigate Risk for Global Solar Scale-up
Economy2 days ago
Key elements of the EU-Japan Economic Partnership Agreement
Newsdesk3 days ago
EU-Egypt relations: Investing in socio-economic development and inclusive growth