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Central Asia

“Kazakhstan is intended to become a world hub for development of green power”

Dimitris Giannakopoulos

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Last August, Mr. Akhmetzhan Yessimov, a man with a great economic and diplomatic experience and former Akim (Mayor) of Almaty, appointed Chairman of Astana EXPO-2017 by the President of Kazakhstan. For the energy rich Central Asian country, EXPO-2017 is more than just an exhibition. It is an event that will put Kazakhstan in the international spotlight throughout the whole of 2017. Mr. Yessimov explained in an exclusive interview with Modern Diplomacy, his personal vision on Expo 2017 and the ways Astana Expo will improve the public image of Kazakhstan.

What is your personal vision on Expo 2017 and how will this important event affect the infrastructural development in Astana?

Kazakhstan is the first country of Central Asia accepting the exhibition with a century of history. Holding of EXPO in Astana will give an impulse for development of upper levels of economy – science and knowledge-intensive industries. For Kazakhstan holding of EXPO is primarily economic and infrastructure project.

All progressive ideas and innovations in the field of new energy from the planet will be concentrated at the same venue in Astana. We expect a great number of participants as the theme “Energy of the Future” combines two the most pressing challenges for mankind, ecology and traditional power relief actions in global economy.

Presently 51 countries including France, Germany, the Great Britain, China, Japan, and India confirmed their participation in the exhibition. We expect more than a hundred.   The most densely populated regions of Southeast Asia with great number of “tourist mobile” residents showed interest to EXPO-2017. Eleven international organizations, including the World Bank, UNDP, UNESCO, IAEA and others confirmed their participation.

Great interest to EXPO in Astana is shown by the innovative companies of the USA Silicon Valley as Google Earth, Stanford Global Thermostat, Obscura Digital, and Planet Labs. Holding of EXPO will be included into a triad of events, historically important for Kazakhstan, along with the 25th anniversary of Independence of the Republic of Kazakhstan and the 20th anniversary of the capital of Astana. Due to existing hydrocarbon dependence in the world, shift to alternative energy sources is inevitable. Developed and developing countries equally need “green” technologies. We are for universal development of alternative energy sources. EXPO will acquaint the world with more flexible, economic and effective power sources, against the background of negative processes currently proceeding in power field.

At the 70th session of the United Nations General Assembly Nursultan Nazarbayev, the President of the Republic of Kazakhstan suggested to make the country a world hub for distribution of green technologies after closure of the World Fair EXPO-2017. EXPO on the theme “Energy of the Future” in Astana will entirely support the initiative of the UN “Sustainable Energy for All”. Healthy global ecological environment is essential for mankind. EXPO-2017 in Astana will bring up a concern of climate change and reduction of environmental emissions.

The exhibition will move up the sphere of rendering services to the international quality standards. We prepare complex infrastructure optimization for the exhibition – land and air transport systems as well as all city services will be ready to accept a large stream of guests. Our objective is not only to pay back invested funds, but also to create perspective infrastructure which will be useful for the city and the country after the exhibition. One cannot write off image-based benefits for further promotion of Kazakhstan initiatives in the world.

In what ways will Astana Expo improve the public image of Kazakhstan? How do you plan to promote Expo2017 and attract participants and visitors around the world?

Kazakhstan, the ninth country in the world with variety of natural landscapes has enormous tourist potential. When 2011 Asian Winter Games took place in Almaty I was Akim of the City, and I am familiar with details of administrative work at outstanding events. After Aziada a stream of foreign tourists increased several-fold, for example, to Shymbulak, a ski resort. I can tell with confidence that we have a developed tourism cluster in large cities belt. In 2016 we will enter an active phase of attraction of member countries to the exhibition.

The exhibition will accept 2.5 million people and over 5 million visits.The effect from visiting EXPO-2017 will replicate on expansion of tourist opportunities of the regions of Kazakhstan.

We have already signed contracts with the largest world international tour operators, including Indian Skyway International Travels, STIC Travel Group, and Chinese CITS, and we are also intended to work with German TUI Group and others.Guests will be able not only to visit the exhibition, but also to see all tourist variety of Kazakhstan.We will provide tour packages as “EXPO + Burabay”, “EXPO + Baykonyr”, “EXPO + Alakol”, “EXPO + Charyn”, “EXPO + Karkaralinsk” and others. We have presented the program “Recommended by EXPO-2017” which would provide the tourists only with the best goods and services during their stay in Kazakhstan.

Kazakhstan EXPO-2015 pavilion in Milan was among the top three of the most visited ones and was ready to accept the millionth visitor. Pavilion of Kazakhstan in Milan was quintessence of national traditions and modern achievements of the country.

How important is the sustainable energy policy and its promotion for the Astana Expo 2017 and for the international recognition of Kazakhstan itself?

Kazakhstan possesses serious raw materials and energy resources.At the end of the last century the Republic joined the world leaders in oil export. Despite advantages, in long-term prospects it is not the most favourable scenario for development of economy. Dependence on hydrocarbons will result in gradual stagnation of economy.Substantial adherence to prices for oil and gas, negative consequences from fluctuations in the raw market have already collapsed economies of a series of countries.The perspective to shift to alternative energy sources is particularly acute around the world.

In the last decades problems in power field became sources for global crises.New energy is interesting for the countries which are concerned in diversification of economy. Nowadays focus is shifted from obtaining oil and gas dividends to new, more flexible sources of power and income. Ecological aspect is also important. Presently our objective is to reconcile industrial development with requirements of nature conservation.We need to expand utilization of low-carbon technologies with maximum possible methods of recycling.

Kazakhstan is intended to become a world hub for development of green power. New energy has to become a tool to start up economy of the future. EXPO-2017 will give a new direction for development of power field in Kazakhstan and all over the world. Kazakhstan is ready to actively join in this process.

How will you use the buildings and infrastructure after the event has finished?

Post-exhibition integration of EXPO-2017 facilities into city architecture and economy is a difficult but resolvable issue. In this matter we considered organizational errors of some fulfilled exhibitions. Kazakhstan EXPO structures are constructed with due account for all post-exhibition risks and are already designed for future owners. Today I can state that International Financial Center (IFC) will be located at particular part of exhibition territory. The curator of IFC construction is the National Bank of Kazakhstan and Akimat (Administration) of the City of Astana. At the moment the task team is created to work over issues connected with construction of IFC. The International Financial Center will be working according to the principles of English law. Attractive tax conditions, privileges and preferences will be provided for the members of IFC.

I can assure that the territory of the exhibition will be almost completely integrated into the city infrastructure. Astana is a new center, which constantly require various social facilities and in this context exhibition structures will be foremost applied.

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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Central Asia

Chimes from Tashkent

Sabah Aslam

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Located at the new center of global attraction for economic activity, Pakistan and Uzbekistan share a long string of relations. After the independence from the soviets, Pakistan was among the first countries to recognize it. In 1992, Pakistan established their first diplomatic sanctuary in Tashkent. Since then delegations from both the countries paid visits to each other.

The bond shared between the two countries, that lie in close proximity, is strengthened by similar eastern culture and fortified by the religious ties. This sharing of cultural and religious values is clearly visible in the national language of Pakistan which borrows thousands of words from Uzbekistani language. This nexus is now getting even stronger with the increase in co-operations in social and economic sectors.

Relations between both the states saw an unprecedented growth in recent times and this social integration is ever growing. During the last year only,

63events such as seminars, presentations and business forums were arranged for general public. Whereas, the Uzbek Embassy had a significant number of bilateral meetings with the top tier of business community including several associations and unions. The same sentiment was reciprocated by Pakistani side when more than 50 companies paid visit to Uzbekistan with the purpose of investment. There were a number of exhibitions, events and investment forums in Tashkent, Jizzakh and Bukhara. Eight different Pakistani companies participated in such events.

Uzbekistan and Pakistan have also been working on 38different joint ventures for launching import/export operations.

In economic sphere, Islamabad and Tashkent hold great trade potential. In just 2018, the mutual trade between both countries crossed USD 98.4 million’s mark, which means a raise of around 170%.Prior to 2018 in 2017 numbers of economic activity between two states were low and accounted for just USD 36.6 million.

In 2018 Pakistani export to Uzbekistan increased for 150% and amounted 66 million USD (in 2017 – 26 million USD).

Last year Ambassador of Uzbekistan to Pakistan Mr. Furqat A. Sidikov while addressing business community at Islamabad Chamber of Commerce and Industry expressed that trade volume between Pakistan and Uzbekistan has the potential to rise up to USD 1billion in next 5-6 years. It clearly signifies that both countries can provide enormous benefit to each other’s socio-economic segment. Pakistan has been exporting edibles like mango, citruses, raw and refined sugar. Furthermore, chemical products, pharmaceutical products, and leather and textile goods are major exports of Pakistan to Uzbekistan.

Uzbekistan is also a hub for petrochemical goods, cotton and silk goods. Its exports to Pakistan includes: leather raw materials, petrochemical products and mineral fertilizers, cotton yarn, cotton fiber, raw silk, plastic products, agricultural machinery, clothing, etc. Not only this, dry fruits and vegetables are also exported from Uzbekistan to Pakistan.

In 2018 Uzbekistan-Pakistan Business Council was established in Islamabad in order to facilitate and support the business community in two countries. Apart for this, several forums are also established in main cities of Pakistan to boost up the economic potential.

Accessibility remains a key subject in establishing people to people relations thus recognizing this flight route from Tashkent-Lahore-Tashkent was resumed in April of 2017. Both states also look forward to initiate new routes from Islamabad and Karachi as well. Earlier in May Uzbekistan’s Ambassador to Pakistan had a meeting with Chairman Senate of Pakistan to discuss the inter-parliamentarian cooperation between Pakistan and Uzbekistan. Sideways to expanding parliamentarian relations it was also discussed to further strengthen the cooperation on transport sector to provide uninterrupted route to trade of goods.

Both countries share many economical and regional platform and are member of Organization of Islamic countries (OIC), Shanghai Cooperation Organization (SCO), and Economic Cooperation organization (ECO)and others. Multiple times these platforms were used to freshen up the relations between two countries. Based on mutual trust both countries can have free trade agreements to amplify the relations between them.

Enormous potential lies in social, economic and political sectors on which both countries can work. Both countries can play a key role in bringing peaceful non-military solution to misery in Afghanistan as well as in the region. Pakistan needs to explore new avenues for cooperation with countries like Uzbekistan and extract the maximum benefit for itself.

Uzbekistan understands importance of Pakistan in keeping stability and prosperity of the whole South Asian region. Both countries are interested in continuing bilateral partnership on all key issues of the regional security and stability agenda, including the conflict resolution in Afghanistan and expansion of infrastructure, trade and economic ties between Central Asia and Pakistan.

Uzbekistan initiated logistic project that project will include the construction of the massive railroad transport corridor “Uzbekistan-Afghanistan-Pakistan”. In details, this corridor will compose the rail line “Uzbekistan-Mazarisharif” which has been already realized between Uzbekistan and Afghanistan as well as construction of new rail road “Mazari-Sharif-Kabul-Peshawar”. 

In perspective, full realization of this unique transport corridor, will make Pakistan as a Central regional trade hub between South Asian and Central Asian regions.

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Central Asia

No More Business as Usual: Improving Water Usage in Central Asia

MD Staff

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Central Asia’s future economic development, including its energy and water security, depends to a great extent on how effectively countries manage their natural water supplies, especially under increased pressures from climate variability, economic growth, and population expansion.

The population of Central Asia is expected to grow by around 30% by 2050. As such, demand for water services will also increase significantly.

Central Asia is heavily dependent on agriculture, which provides livelihoods for about 50% of the population in some countries. But its level of water productivity is one of the lowest in the Europe and Central Asia region. More efficient use of water in the economy could significantly contribute to increased agricultural productivity, green energy production and the health of the region’s environmental assets.

According to estimates, the adoption of modern agricultural techniques and methods could increase the region’s crop yields by over 20% by 2030, and by 50% by 2050. On the other hand, if countries continue a “business as usual” approach, Central Asia is among the regions that could experience a significantly negative impact on GDP under climate change. Each year, inadequate water supply and sanitation leads to overall economic costs equivalent to around $2.1 billion, although these costs differ from country to country – ranging from almost 0.5% of GDP in Kazakhstan to around 4.25% in Tajikistan (2017 data).

“The water agenda in Central Asia is always viewed through the lens of the Aral Sea disaster,” said Ato Brown, World Bank Country Manager for Kazakhstan. “Today, it is high time for us to start changing the narrative so that Central Asia is known for being an oasis of production and productivity.”

According to a World Bank report, Central Asia is among the regions that have most to gain from properly managing water resources under climate change.

Most of the major rivers in Central Asia cross borders, therefore countries need to coordinate water management to advance sustainable development and climate resilience.

Water resources in the region are sensitive to climate variability, which poses significant challenges to the agriculture and energy sectors.

Since the 1950s, average annual temperatures have increased by 0.5°C in the mountainous areas of southern Central Asia, and glaciers that feed the region’s main rivers – Amu Darya and Syr Darya – have shrunk by a third. With the melting of glaciers, the expected fall in river flows will have a major impact on agricultural production.

By 2025, hydropower is expected to overtake gas as the main fuel source for energy production in Central Asia. Where hydroelectricity production is based on reservoir storage, there can be flow management benefits for climate change adaptation, including flood and drought prevention and mitigation, as well as timely delivery of irrigation and drinking water.

“Central Asian countries need to start with a joint project, and there are opportunities for working together,” said Ato Brown at the Astana Economic Forum. If the countries of Central Asia invest sufficiently and effectively in better water management, they have the potential to become not just economically prosperous and resilient to climate change – but also to provide new opportunities and hope for all their citizens.

World Bank

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Central Asia

Pakistan and the -Stans

Sabah Aslam

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From the coasts of Caspian Sea to the rouged lands touching Afghanistan, there lies a belt of resource opulent countries, the Central Asian States. Comprising of five states, it is now becoming the new hub for social and economic development. As it lies at the heart of ancient silk route, central Asia also holds key importance in the new  geo-economics of world as well. With combined population of more than 66 million and alone Uzbekistan accounting for approx. 29 million, Central Asia is an emerging market for investing companies.

Known as the five -STANs since all five states include -STAN at the end of their respective names. When these states got independence from the Soviet Union in 1991, Pakistan was among the first and few countries to recognize them and establish diplomatic relations with them. Since then, Pakistan and Central Asian countries enjoy healthy relations. Form visits of high-level delegations to signing of MOUs for establishing Joint Economic Commissions (JECs) Pakistan is fully acknowledging the role and importance of Central Asian states.

Geography plays a key role in the importance of these states located on the crossroads of East and West, Central Asian culture is an amalgam of ancient civilizations and modern era. Pakistan and the other STANs have a lot in common. Deeply connected with the bond of the religion, Pakistan and Central Asia, share many similitudes in culture. For instance, Sufism is enrooted in both societies. The architecture, cuisine, arts and handicrafts and even the dresses are somewhat similar. The languages also contain words and structures that are common. Thus, implying that both have immense potential of bilateral co-operation. For this, cross-cultural integrating policies and measures will boost the relations.

Out of many cross-cultural programs, Students’ exchange programs can be very beneficial. Pakistan in 1992-93 started Special Technical Assistance Programs, under which apart from language courses, diplomacy, banking and accountancy expertise were also exchanged. Programs were fully funded by the government of Pakistan. Presently, Central Asian Faculty Development Program had 7% of its fellows from Pakistan in Phase I. Similar programs can help improve the relationship between Central Asia, at not only state level but also it will be beneficial in context to people to people diplomacy.

Economic diplomacy stands as one of the guiding principles for Pakistan’s foreign policy now, hence the already important trade and commerce now stands even more important between the two societies. Presently, Pakistan’s trade volume is almost 58.4 USD in region with exports comprising of larger numbers, indicating the Central Asia can be very favorable market for Pakistani exporters and investors. Kazakhstan being the largest trade central Asian partner of Pakistan, is followed by Tajikistan and Turkmenistan. This trade and commerce between the two can contribute a lot in economic development of the countries and uplifting the standard of living.

Pakistan now is lying a greater emphasis on tourism industry than ever before. It has also been a driver for development in Central Asia. Travelers from across the globe are now visiting the region because of its unique cultural heritage and landscape. The number of visitors to Central Asia is ever increasing as it increased from 2 million visitors in 2010 to 6 million in 2016. Pakistan has also aims at a single tourist visa for all Central Asia Regional Economic Cooperation (CAREC). The promotion of tourism for strengthening of economic and cultural ties across countries and generation of employment and business opportunities had been the priorities under CARCE 2030.

After Washington’s venture on War on Terror and Pakistan becoming the pivot of it tables got turned. When Pakistan experienced the ricochet of Uncle Sam’s policies in Afghanistan , there seemed a decline in Pakistan’s heed towards the Central Asia. Affected by terrorism and its export from across the border with severe internal security challenges, discourse of Pakistan’s foreign policy took a major shift. Pakistan’s primal objective was to secure its internal and external parameters. After more than a decade, the dark clouds are dispersing from Pakistani skies and it is rising from the dungeon of bloodshed.

Now is the time for Pakistan to revamp its foreign policy framework and extend its diplomatic arms across the regions. Since both societies can benefit and can bring robust advancements to their socio-economic fabric by cooperating with each other. Pakistan should thus align its foreign policies with the overall shift in global politics. Since East now holds much important on international scenario, Pakistan and Central Asian co-operation will stand for a more promising future of region.

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