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Is Russia the New Iran?

Dimitris Giannakopoulos

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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

1“Whenever Russians think about Iran, soul-searching ensues. Some look at the Iranian system favorably, and some despise it, but in the aftermath of the recent deal to limit Iranian nuclear production in exchange for a lifting of economic sanctions and increased commercial contacts with the outside world, many Russians, worried by their country’s growing status as an international pariah, have begun to ask themselves: “Are we the new Iran?”This may sound strange to foreign ears, but it is not really so far-fetched. Many Russians, both inside and outside the Kremlin, admire the Iranian way of dealing with a hostile world” Maxim Trudolyubov for the New York Times.

2Russia and Saudi Arabia failed in talks on Tuesday to overcome their differences on the fate of Syrian President Bashar al-Assad, a central dispute in Syria’s civil war that shows no sign of abating despite renewed diplomacy. Russia is pushing for a coalition to fight Islamic State insurgents — who have seized swathes of northern and eastern Syria — that would involve Assad, a longtime ally of Moscow. But, speaking after talks in Moscow, Saudi Foreign Minister Adel al-Jubeir reiterated Riyadh’s stance that Assad must go.

3OPEC predicts that oil production in Azerbaijan will remain steady in 2015. “Azerbaijan’s oil supply is anticipated to average 0.86 million barrels per day, remaining unchanged from the previous Monthly Oil Market Report and indicating steady production in 2015,” OPEC’s monthly report on the oil market said August 11. Azeri crude oil output in June increased by 21,000 barrels per day to average 0.78 million barrels per day, following a decline of 57,000 barrels per day in May, which was a result of maintenance at the West Chirag platform that began on May 21 and lasted through June 6.

4Kazakhstan’s average oil production is expected to decrease by 10,000 barrels per day over the previous year to average 1.62 million barrels per day in 2015, according to OPEC’s August oil market report.The forecast remains unchanged from the previous monthly oil market report.“On a quarterly basis in 2015, output will average 1.66, 1.60, 1.59 and 1.62 million barrels per day, respectively,” the report said. Kazakhstan’s oil production declined by 80,000 barrels per day in June compared to May to settle at 1.56 million barrels per day, although it stayed higher by 40,000 barrels per day compared to June 2014 due to the intensified works at Tengiz field in May and June of 2014, OPEC said in its report.

5The bilateral cooperation in the political, economic-trade, cultural, and humanitarian fields, particularly in developing a partnership in the energy, transport, and investment sectors, as well as the implementation of joint infrastructure projects were high on the agenda of talks held between Turkish President Recep Tayyip Erdogan and his Turkmen counterpart Gurbanguly Berdymukhamedov on August 7. During the bilateral meeting, the presidents of the two countries stated that the successful implementation of joint projects opens up new opportunities for Turkish business circles in the promising Turkmen market, an important factor of which is the favorable investment climate in the Central Asian country.

6Eight ways Iran might surprise you. “Compared to other countries in the Middle East and North Africa, Iran is very modern. Literacy is at 97%, women outnumber men in university enrolment, and in spite of government censorship, internet and social media use in Iran remains high. Many Iranians have satellite dishes and tune into Sex and the City and MTV, as well as the latest BBC documentaries. Iranians as a whole are far more educated and informed about the west than we are about them. If you think of Iran as a medieval backwater, prepare for a shock” Jennifer Klinec for the guardian.

7Rabitabank is conducting talks on purchase of one of the banks in Azerbaijan. However, he didn’t disclose the name of the bank due to the lack of concrete results. Rabitabank’s intention to purchase another bank is in line with its strategy to expand its activity.

8Schneider Electric runs energy summer school classes.Within the annual summer education program Schneider Electric has organized energy training courses for the high school students in the Republic of Azerbaijan. The one-month summer education program covered 40 students of Azerbaijan State Oil Academy and Baku Higher Oil School held in the premises of the Schneider Electric Baku office from 6 to 31 July 2015. During the education courses the students deepened their knowledge in the fields of energy efficiency, commercial and residential building management systems, industrial automation, smart energy management solutions, electrical distribution systems, data centers power supply and cooling systems.

9Russia’s Geopolitical Portfolio. In recent months, western investors have been willingly discussing attractiveness of Russian assets. The community divided: some fraction of analysts and investors seems to think that Russian assets’ toxicity is fundamentally exaggerated. There is an opinion that even if the US and Europe keep restricting import of their capital and technology to Russia, the country’s economy is capable of self-organization and import substitution. Taking into account a hypothetical oil recovery, there is a “great” opportunity to buy undervalued energy sector big caps. Long-term traders remind that the profit making entry to market is the most risky. After putting aside long-term risks evaluation (value at risk, VaR) let us try to understand if Russian technological sector has a chance to adapt. [investing.com]

10Turkmenistan: TAPI Announcement Yet Another Disappointment In choosing a domestic firm to lead the pipeline project, Ashgabat raises questions about future momentum. [The Diplomat]

Journalist, specialized in Middle East, Russia & FSU, Terrorism and Security issues. Founder and Editor-in-chief of the Modern Diplomacy magazine. follow @DGiannakopoulos

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UNIDO helps enhance the quality of industrial policy in Vietnam

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The United Nations Industrial Development Organization (UNIDO) and the Vietnam Industrial Agency of the Vietnamese Ministry of Industry and Trade jointly organized a four-day training workshop on “Enhancing the quality of industrial policy in Viet Nam – White Paper on Vietnam’s New Industry Policy” in Hanoi, from 12 to 17 November 2018.

Conducted under the framework of the project “Support to the Government of Viet Nam in the formulation of Sub-Sector Industrial Strategy and of related Implementation Policy through Institutional Capacity Building”, which is funded by the Ministry of Foreign Affairs of the Republic of Korea, the workshop showcased studies on horizontal factors such as population ageing, Industry 4.0, and the current China-US trade relations and their impact on selected sectors including textile and apparel, leather, automotive, electronics and food processing. Inputs from the workshop will inform a White Paper on Vietnam’s New Industrial Strategy to be launched in June 2019.

“The workshop is one in a series of capacity development activities for senior policymakers in Viet Nam,” said UNIDO Project Manager Jung Jaehwan. “Learning will be based on international best practice and innovative research and conducted by a combination of researchers, practitioners and policymakers.”

Participants included UNIDO experts and staff from the Korea Institute for Industrial Economics and Trade (KIET) as well as representatives from various Vietnamese business associations.

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WEF initiative pledges to equip 20 million ASEAN workers with digital skills by 2020

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A coalition of major tech companies pledged today to develop digital skills for the ASEAN workforce. The pledge, part of the World Economic Forum’s Digital ASEAN initiative, aims to train by 2020 some 20 million people in South-East Asia, especially those working in small- and medium-size enterprises.

Other goals include raising $2 million in contributions to provide scholarships for ASEAN technology students, ensuring an additional 200,000 digital workers are hired across the region, and engaging at least 20,000 citizens through “Digital Inspiration Days”, whereby companies invite students and the public to visit their offices and learn more about the character of the jobs of the future. There will also be internship opportunities for ASEAN university students, as well as initiatives to train digital regulators and shape the curricula of technology and computing courses at 20 ASEAN universities.

The aim of the pledge is to establish a regional movement among businesses committed to empowering individuals through skilling, reskilling and upskilling. It will not only increase the number of workers hired for digital jobs and trained in digital skills, but also help support business leaders with insight and analysis of what other companies in the region are doing to build a future-focused workforce.

“The Fourth Industrial Revolution is unfolding at accelerating speed and changing the skills that workers will need for the jobs of the future,” said Justin Wood, Head of Asia Pacific and Member of the Executive Committee at the World Economic Forum. “These changes are happening just as the working-age population in ASEAN is expanding by 11,000 people every day – a rate that will continue for the next 15 years. Given these trends, it’s critical that businesses help to build digital skills in ASEAN.”

Called “ASEAN Digital Skills Vision 2020”, the public pledge is open for all companies to join, but a number of early champions have already made strong commitments. Google has pledged to train 3 million SME employees throughout the ASEAN region by the end of 2020, while Cisco, Lazada, Microsoft, and the Sea Group have pledged to train another 5,634,000 SME workers.

The pledge also calls for companies to offer ASEAN citizens the opportunity to participate in Digital Inspiration Days, and Cisco, Microsoft, Grab and Sea Group have collectively committed to offer the opportunity to 1,035,000 ASEAN citizens by 2020. Similarly, the pledge calls for internships for ASEAN university students, and Microsoft, Sea Group and Tokopedia together have committed to hire 18,000 interns. Microsoft has also pledged to hire 8,500 ASEAN digital workers by 2020.

Supported by the Forum’s Digital ASEAN initiative, success stories and innovative approaches will be shared through an online platform to magnify their impact, and a series of workshops involving the private sector and government will be staged over the next two years to ensure the efforts of businesses both align with, and help to shape, public policy on training and education.

Pichet Durongkaveroj, Minister of Digital Economy and Society of Thailand, and one of the advisers of the Digital ASEAN initiative, said: “The rise of artificial intelligence and advanced robotics is creating concern about the future of work. But I am more optimistic. I believe that if workers have the right skills, the Fourth Industrial Revolution will be highly empowering and will lift wages and living standards in Thailand and across the region. But we need to make sure that workers receive the right training and education today.”

Rajan Anandan, Vice-President for India and South-East Asia at Google, said: “ASEAN could see an uplift of $1 trillion in GDP by 2025 by using its digital economy to accelerate intra-regional trade and growth. SMEs will be the key to this growth and their digital workforce will be the change agents in their communities. We’re committed to supporting South-East Asia’s promising digital economy.”

Forrest Li, Chairman and Chief Executive Officer of the Sea Group, said: “The ASEAN region is brimming with entrepreneurial potential. But for SMEs to start businesses and grow them successfully, they’ll need to learn the right skills for the Fourth Industrial Revolution. Building on our existing efforts to enable SMEs around the region to benefit from the opportunity of e-commerce, we are committed to making a major contribution to providing these skills.”

Naveen Menon, President of Cisco Systems in ASEAN, said: “ASEAN’s economy is poised to grow further as digital innovation and adoption gather pace. However, the increased adoption of technology will result in a change in the nature of jobs and workforce requirements across the region, which demands rapidly reskilling. We are committed to work with all stakeholders to build a sustainable pool of homegrown talent in ASEAN.”

Lucy Peng, Chairwoman and Chief Executive Officer of the Lazada Group, said taking part in the World Economic Forum pledge is one of the key levers to create an inclusive and sustainable e-commerce ecosystem to support South-East Asia’s economic growth. “Sellers want to go beyond trading on a platform. They want to create their own universe in the digital world to reach out and connect with Internet-savvy and increasingly mobile consumers,” she said. “We are championing our seller communities by using our technology and logistics infrastructure to help them ride the e-commerce boom and flourish into sustainable businesses.”

Sunny Park, Corporate and Legal Affairs Regional Director for Microsoft in Asia Pacific, said: “ASEAN is the future of borderless economies, investments, e-commerce and education and we believe in a future where every young person has the skills, knowledge and opportunity to succeed. Digital skills are essential for the jobs of today and tomorrow, and can open the door to greater economic opportunity. Right now, over half the people on the planet lack basic access to the knowledge and skills that would enable them to participate in the new digital economy. Together with our partners, we are going to change that. We are going to empower every person and SME in ASEAN to achieve more.”

The Digital ASEAN initiative was launched by the World Economic Forum in Singapore in April 2018 in response to demand from the Forum’s regional partners in ASEAN, both public and private. The aim is to work on the issues that will underpin a regional digital economy in ASEAN so that the benefits of the Fourth Industrial Revolution can be fully unlocked and become a force for regional economic inclusion. The initiative has launched five task forces, each focussed on a specific digital issue:

  1. Pan-ASEAN Data Policy – Shaping a common regional data policy
  2. ASEAN Digital Access – Optimizing high-quality broadband access for ASEAN
  3. ASEAN Digital Skills – Building a shared commitment to train digital skills for the ASEAN workforce
  4. ASEAN e-Payments – Building a common ASEAN e-payment framework
  5. ASEAN Cybersecurity – Nurturing cooperation and capacity building in ASEAN cybersecurity

By the end of 2020, the aim is for the coalition of companies involved in the pledge to:

  • 20,000,000 Train 20 million people working at ASEAN small- and medium-size enterprises (SMEs) in digital skills;
  • 2,000,000 Raise US$2 million for scholarships for ASEAN technology students;
  • 200,000 Hire directly an additional 200,000 ASEAN digital workers;
  • 20,000 Engage 20,000 ASEAN citizens in “Digital Inspiration Days”, where companies invite students and the public to their offices to learn more about jobs of the future;
  • 2,000 Offer 2,000 internship opportunities for ASEAN university students;
  • 200 Contribute to the training of 200 ASEAN digital regulators; and
  • 20 Contribute to shaping the curricula of technology and computing courses at 20 ASEAN universities.
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Breaking down barriers for recycling industries

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Standardization, awareness-raising, and regional cooperation – these were just some of the solutions to the many challenges faced by recycling industries globally, which were discussed at the Circular Economy: Development of Recycling Industries meeting.

The  meeting, co-organized by the United Nations Industrial Development Organization (UNIDO) Environment Department and the Bureau of International Recycling (BIR), brought together recycling experts, representatives of UNIDO Member States, and industry leaders from all over the world to discuss existing barriers to recycling industries and innovative approaches to overcome these.

From plastics to textiles recycling, a broad range of presentations from representatives of national governments, NGOs and industry, offered perspectives on how to move forward, with examples of innovative initiatives brought from both developed and developing countries alike.

Mattresses, waste bins, and home furnishings were just some of the recycled (and recyclable) products presented by companies from Italy and Guinea, with industry giants, such as IKEA, also providing insights into their efforts as brand leaders when it comes to recycled cotton and polyester.

The meeting was also an opportunity for UNIDO to showcase some of the projects it has been working on in this area, including e-waste in the Latin American and Caribbean region. Other related projects include metals recycling in Thailand, e-waste in the Philippines, recycling industry development in Senegal and a Southern African Development Community (SADC) regional project helping reduce open burning through the introduction of recycling.

Institutional, structural, and economic barriers were identified during the sessions, with legal and regulatory frameworks representing a challenge in many regions. Extended Producer Responsibility (EPR) was another key theme of the meeting, as well as the establishment of internationally-recognized criteria for recyclables, and the potential for integrating the formal and informal recycling sectors, particularly in developing economy contexts.

Engaging civil society and changing mindsets and attitudes towards recycling at a global level was also seen as essential for the successful development of the recycling industry.

“Civil society must be at the forefront of any recycling activity,” affirmed Ranjit Singh Baxi, President of the BIR.

The meeting highlighted the important role that UNIDO has to play in convening stakeholders to discuss industrial development topics relevant to UNIDO Member States. This meeting’s interactive format allowed participants to take part in digital polls for each session, as well as to pose questions to the various panels, which were then ranked and sorted digitally according to the audience’s preferences.

The insights gained during this event will contribute to UNIDO programming for the coming years and strengthening the Organization’s services in this area.

“Strengthening multilateral dialogue is essential and UNIDO stands ready to continue to foster such dialogue on global environmental cooperation and the circular economy in the name of inclusive and sustainable industrial development,” stated Stephan Sicars, Director of UNIDO’s Environment Department, at the close of the meeting.

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