In early July, naval delegations from Russia, Azerbaijan, Iran and Kazakhstan met in St. Petersburg to discuss the idea of a collective security system among the Caspian Sea States, alongside other important security issues.
The proposed collective security system would include the creation of “a council of naval commanders” and “a five-sided agreement on preventing incidents on the Caspian and the airspace above it,” Russian Defense Minister Sergei Shoigu described. In addition, the joint security initiative will include emergency response exercises likely to be carried out in 2016. Although the proposal of such a collective security system has been hailed as a major move forward for the Caspian Five, interestingly, Turkmenistan was not represented among the delegations at the meeting. Such an absence may reflect a larger dilemma for Turkmenistan in this collective security proposition.
In particular, the proposed collective security system has been perceived by some as a Russian attempt to limit Western influence in the Caspian Sea region. This likely stems from tensions mounting as a result of the crisis in Ukraine which has undoubtedly put Russia at odds with the West, threatening both Russia’s economic viability and its military influence in the region. However, a collective security system would eliminate virtually all outside military presence on the Caspian, allowing Russia to maintain a monopoly of military power. Considering Russia has built up its Navy on the Caspian, to include adding stealth frigates to its collection, and the fact that the former Soviet states Turkmenistan, Kazakhstan, and Azerbaijan only began building their navies after the collapse of the Soviet Union, a monopoly of military power on the sea is not inconceivable. In addition, the Trans-Caspian Gas pipeline is meant to transport gas from Turkmenistan to Azerbaijan, and finally to eager European nations looking to circumvent Russia’s dominance as Europe’s largest external gas supplier. Naturally, Russia is opposed to the pipeline which would divert considerable profits from Russia’s state-controlled gas company, Gazprom. Therefore, a Caspian Five collective security system can be seen as a Russian attempt to reorient Turkmenistan from the West, enough to discourage the creation of the pipeline. Needless to say, Russia has a lot at stake in the formulation of a collective security agreement.
Russia is not the only Caspian Sea state banking on a collective security system, however. Iran also maintains a significant military presence in the region, particularly through its naval force comprised of 90 vessels, which certainly exceeds that of Kazakhstan and Turkmenistan. Consequently, isolating the Caspian Sea from any potential outside interference will only strengthen Iran’s military clout on the sea. Although Iran very recently struck a UN Security Council-endorsed agreement with major world powers its less-than-perfect reputation for honoring past agreements makes more violations possible. Thus, increasing the gap between Iran and the Western sphere of influence will only benefit the defiant state.
All of these competing interests stand to create a major dilemma for Turkmenistan. Firstly, Turkmenistan maintains considerable ties to Western nations, particularly the U.S. The strategically located nation has acted as a valuable transportation hub for American forces in Afghanistan, notably by supporting refueling operations and supplying a substantial amount of fuel for the war effort. Moreover, the U.S. has been helping Turkmenistan build up its naval capabilities on the Caspian, namely by providing equipment and technical assistance. Turkmenistan has also acquired naval equipment from Turkey, including two patrol boats. Turkmenistan’s relationship with Europe is arguably even more consequential than its relationship with the U.S., considering the high hopes for the Trans-Caspian Gas Pipeline. The Central Asian nation holds the fourth largest gas reserves in the world, making it a prime candidate for a long-term supply relationship with Europe and thus a prime recipient of billions of dollars’ worth of revenue. For better or worse, these competing geostrategic interests make Turkmenistan’s role in the Caspian Sea region highly complicated.
Ultimately, it seems Turkmenistan has found itself facing a double-edged sword in the Caspian Sea. More specifically, getting on board with a Caspian Sea collective security system could severely compromise Turkmenistan’s ties to the West. A Russian monopoly of military power coupled with a security system that blocks all possibilities of outside intervention could leave Turkmenistan highly vulnerable to Russian influence and coercion. At a minimum, Russia could use military dominance in a Caspian Five collective security agreement to influence the outcome of any future pipeline projects. Such an outcome would prove detrimental to Turkmenistan’s future economic prosperity. Additionally, completely eliminating the possibility of a foreign military presence, including NATO or U.S. military bases, as well as the use of airspace over the Caspian Sea would leave Turkmenistan virtually exclusively dependent on its Caspian neighbors for defense. However, due to the fact that the Caspian Five harbor serious mistrust issues with each other, collective defense will prove highly difficult and likely ineffective. This may become a serious issue when confronting regional security threats like terrorism, as dangers such as the Islamic State of Iraq and Syria (DAESH in Arabic) undoubtedly require international cooperation and information-sharing which these nations at the moment simply do not have. Further still, Turkmenistan’s staunch principle of neutrality may prove challenging in a collective security system in which Iran is a member state. Iran’s aggressive stances on numerous issues with the West may drag members of the Caspian security system, including Turkmenistan, into a conflict in which they must choose between their collective security arrangement and major Western powers. While this scenario is difficult to determine considering the fact that the terms of the collective security system have not yet been clearly outlined, it is apparent Turkmenistan’s firm principle of neutrality may soon be tested.
Turkmenistan’s dilemma does not end with its reasons to not endorse the Caspian collective security system. The Russo-Turkmen relationship is complicated, characterized by empire and linguistic ties. Turkmenistan’s considerably limited experience in self-governance, combined with a cultural inclination towards Russia, makes maintaining close security ties with the world power a reasonable option for the weak Turkmen diplomatic corps. Turkmenistan has received naval equipment from Russia as well, including several military ships which the underdeveloped Turkmen navy undoubtedly needs. Finally, Turkmenistan’s close proximity to Russia and Iran incentivizes it to ensure security becomes a collective obligation in the Caspian. Essentially, rejecting a collective Caspian security system could see Turkmenistan facing a highly formidable and potentially resentful Russian neighbor. Without a doubt, Turkmenistan has some serious options to weigh in considering these future defense paths. Hopefully, it finds one that does not result in it being impaled on an extremely sharp, double-edged geopolitical sword.
Productive Employment Needed to Boost Growth in Tajikistan
Tajikistan will need to create enough jobs to maximize productivity of the country’s increasing working-age population and spur economic growth, says a new Asian Development Bank (ADB) report.
In its new Asian Development Outlook (ADO) 2018, ADB projects Tajikistan’s gross domestic product (GDP) growth to reach 6% in 2018 and 6.5% in 2019. GDP growth for the country stood at 7.1% in 2017. ADO is ADB’s annual flagship economic publication.
“Tajikistan has a young population and the percentage of working-age people is projected to continue rising to 2030. In many countries, this has led to higher growth from a ‘demographic dividend’,” said Pradeep Srivastava, ADB Country Director for Tajikistan. “But for Tajikistan to benefit from such a dividend, it needs to undertake structural reforms to improve the investment climate, increase human capital and skills, and let entrepreneurship flourish to create productive jobs for the workforce.”
Despite Tajikistan’s economy growing at an average of about 7.2% from 1997 to 2016, the country is not creating enough productive jobs for its growing working-age population, which grew by 3% annually from 1991 to 2016. However, employment only rose by 0.7% annually over the same period. The report notes the need for structural reforms to improve the country’s business climate—for example, reducing and consolidating the number of inspection bodies, creating a healthier banking sector to facilitate lending, and streamlining procedures for issuing construction permits, paying taxes, and enforcing contracts.
The report also highlights the importance of strengthening local value chains and helping small and medium-sized enterprises improve their productivity and earnings to promote job creation. Assessing demand for various skills and using that information to improve job training can match workforce skills to market demand.
ADB’s growth forecasts for Tajikistan in 2018 comes on the back of expected fiscal tightening from the government to address the high ratio of public debt to GDP, which will likely constrain public investment, and a weak banking sector curbing private investment. The slight recovery in growth projection in 2019 is based on expected gains in the country’s manufacturing and mining sectors, as well as strengthened remittances.
Inflation is forecast to accelerate to 7.5% in 2018—reflecting higher liquidity spurred by potential sizable bank recapitalization, public salary and electricity tariff hikes, and modest somoni depreciation—before easing back to 7.0% in 2019. In 2017, inflation reached 6.7%.
ADB is celebrating 20 years of development partnership with Tajikistan in 2018. To date, ADB has approved around $1.6 billion in concessional loans, grants, and technical assistance to the country. ADB and Tajikistan’s development partnership, which began in 1998, has restored and built the country’s new transport and energy infrastructure, supported social development, expanded agricultural production, and improved regional cooperation and trade.
ILO Reports Important Progress on Child Labour and Forced Labour in Uzbek Cotton Fields
A new International Labour Organization report to the World Bank finds that the systematic use of child labour in Uzbekistan’s cotton harvest has come to an end, and that concrete measures to stop the use of forced labour have been taken.
The report Third-party monitoring of measures against child labour and forced labour during the 2017 cotton harvest in Uzbekistan is based on more than 3,000 unaccompanied and unannounced interviews with a representative sample of the country’s 2.6 million cotton pickers. It shows that the country is making significant reforms on fundamental labour rights in the cotton fields.
“The 2017 cotton harvest took place in the context of increased transparency and dialogue. This has encompassed all groups of civil society, including critical voices of individual activists. This is an encouraging sign for the future. However, there is still a lag between the sheer amount of new decrees and reforms being issued by the central government and the capacity to absorb and implement these changes at provincial and district levels,” says Beate Andrees, Chief of the ILO’s Fundamental Principles and Rights at Work Branch.
The ILO has been monitoring the cotton harvest for child labour since 2013. In 2015, it began monitoring the harvest for forced labour and child labour as part of an agreement with the World Bank.
Interviews carried out by the monitors took place in all provinces of the country and included cotton pickers and other groups which are directly or indirectly involved in the harvest such as local authorities, education and medical personnel. In addition, a telephone poll of 1,000 randomly selected persons was conducted. Before the harvest, the ILO experts organized training for some 6,300 people directly involved with the recruitment of cotton pickers.
The results confirm that the large majority of the 2.6 million cotton pickers engaged voluntarily in the annual harvest in 2017 and that there is a high level of awareness in the country about the unacceptability of both child and forced labour. The report confirms earlier findings that the systematic use of child labour in the cotton harvest has ended though continued vigilance is required to ensure that children are in school.
Instructions have been given by the Uzbek national authorities to local administrations to ensure that all recruitment of cotton pickers is on a voluntary basis. In September 2017, an order was given withdrawing certain risk groups (students, education and medical personnel) from the harvest at its early stage.
Moreover, cotton pickers’ wages have been increased in line with recommendations by the ILO and the World Bank. The ILO recommends that the government continues to increase wages and also addresses working conditions more broadly to further attract voluntary pickers.
Last September, Uzbekistan President Shavkat Mirziyoyev spoke before the United Nations General Assembly in New York where he pledged to end forced labour in his country and underscored his government’s engagement with the ILO. In November 2017, at the Global Conference on the Sustained Eradication of Child Labour in Argentina, Uzbekistan also pledged to engage with independent civil society groups on the issue.
The ILO Third-Party Monitoring (TPM) project in Uzbekistan will now focus on the remaining challenges, particularly the need for further awareness raising and capacity building, which varies between provinces and districts. It will ensure that all those involved in recruitment will have the information and tools needed to ensure that cotton pickers are engaged in conformity with international labour standards.
The monitoring and results from a pilot project in the area of South Karkalpakstan also show that cotton picking economically empowers women in rural areas. The cotton harvest provides many women with a unique opportunity to earn an extra cash income which they control and can use to improve the situation of their families.
The ILO TPM Project is funded by a multi-donor trust fund with major contributions by the European Union, United States and Switzerland.
Kazakhstan Launches Online Platform for Monitoring and Reporting Greenhouse Gases
An online platform for monitoring, reporting and verifying emission sources and greenhouse gases (GHG) was officially launched today by the Ministry of Energy of the Republic of Kazakhstan and the World Bank.
The platform is an essential element of the National Emissions Trading System of Kazakhstan, which was launched in 2013 as the country’s main instrument to regulate domestic CO2 emissions and to drive the development of low-carbon technologies. Today, the National Emissions Trading System of Kazakhstan covers all major companies in the energy, oil and gas sectors, mining, metallurgical, chemical and processing industries.
Since 2014, the World Bank Trust Fund Partnership for Market Readiness has provided technical assistance to Kazakhstan in supporting the implementation of the National Emissions Trading System of Kazakhstan and related climate change mitigation policies.
“Kazakhstan’s emissions trading system is the first of its kind in the Central Asia region,” said Ato Brown, World Bank Country Manager for Kazakhstan. “With support from the Partnership for Market Readiness, the country has made a great effort to develop policy options for mid- and long-term emissions pathways and to develop an action plan on GHG emissions reductions by 2030. The World Bank will continue to support the Government during the crucial stages of policy implementation.”
The platform enables Kazakhstan’s major emitters to transmit and record data on GHGs emissions, as well as trade online. The National Allocation Plan, adopted in January 2018, sets an emission cap for 129 companies for the period 2018-2020. Per the national allocation plan, quotas have been allocated until 2020.
“The electronic platform undoubtedly proves the evolution of the Kazakhstan emission control system, which will allow the monitoring, reporting and verification system to be upgraded to a much higher level,” said Sergei Tsoy, Deputy General Director of JSC Zhasyl Damu.
GHG data is confirmed by accredited bodies for verification and validation and transferred to the Cadastre using an electronic digital signature. To date, there are seven verification companies accredited in Kazakhstan, with five more in the process of accreditation.
The platform was developed by JSC Zhasyl Damu with the support of France’s Technical Center on Air Pollution and Greenhouse Gases. The system is administered by JSC Zhasyl-Damu, while the beneficiaries are the Climate Change Department and the Committee for Environmental Regulation and Control of the Ministry of Energy of the Republic of Kazakhstan.
Kazakhstan is one of the largest emitters of GHG in Europe and Central Asia with total annual national emissions of 300.9 MtCO2e in 2015. The energy sector accounts for 82% of total GHG emissions, followed by agriculture (9.6%) and industrial processes (6.4%). More than 80% of produced electricity in Kazakhstan is coal-fired, followed by natural gas (7%) and hydro power (8%).
Kazakhstan proposed as its Nationally Determined Contribution (NDC) an economy-wide reduction of GHG emissions of 15% from 1990 emissions levels by 2030. Kazakhstan ratified the Paris Agreement in November 2016 and committed itself to the fulfilment of the proposed target as its first INDC. The objective will contribute to sustainable economic development as well as to the achievement of the long-term global goal of keeping global temperatures below 2 degrees Celsius.
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