The Kazakhstan snap Parliamentary elections were held on 20 March 2016. The snap elections were called amidst economic turmoil and fears that the Kazakhstan government would lose voter and public confidence because of the economic situation in Kazakhstan.
The elections will solidify autocratic President Nursultan Nazarbayev’s rule over the country and make it appear that he has the unwavering support of the people of Kazakhstan. Reports of crackdown of dissent suggest otherwise. The crackdowns, aimed at political dissidents and non-conformists to President Nazarbayev’s policies, is a way to control civil unrest and silence critics which is a longstanding criticism of the Nazarbayev Administration.
The elections did not generate significant differences in the country’s political landscape which has remained relatively unchanged since Nazarbayev gained power in 1989. Arguably, the elections are part of Nazarbayev’s attempts to make Kazakhstan appear as a democratic country and are part of “managed democracy.” The elections are being held against the backdrop of a failing economy, fluctuating tenge, low oil revenue prices and the oil market crash, political dissent, and Nazarbayev’s need to be reaffirmed by the people of Kazakhstan. The election will also show regional countries that Kazakhstan handle economic problems and is a reliable partner. Nazarbayev’s victory was predictable and negative implications stemming from a minor Parliamentary mix-up are non-existent.
A Commonwealth of Independent States (CIS) mission monitored the elections. Kazakhstan’s past elections have fallen short of international standards citing lack of competitive candidates and corruption. As many as 234 candidates from the following six parties vied for 98 available parliament seats: the ruling Nur Otan party and the Party of President Nursultan Nazarbayev (127 candidates), Ak Zhol (35 candidates), Auyl (19 candidates), the Communist People’s Party of Kazakhstan (22 candidates), the Nationwide Social Democratic Party (23 candidates) and the Birlik party (eight candidates). Over 1,000 candidates are running for seats in the lower Parliament. Not much has changed as the other parties platforms do not vary that greatly. Political parties are prohibited from forming blocks.
According to Radio Free Europe/Radio Liberty, the results of the March 20, 2016, parliamentary elections show, “that three parties will have seats in the Majlis[:]Nur-Otan got 82.15 percent of the vote; Ak Zhol, 7.18 percent; and the Communist People’s Party of Kazakhstan took 7.14 percent.” These results are similar to the 2012 Parliamentary elections which highlights the lack of political variety and true democracy in the country. The elections were hailed a success by regional organizations, the SCO and the CIS. The ODIHR did not agree as Kazakhstan has a long way to go to fulfill its democratic agreement.
International observers were not surprised at the results. As early voting commenced on Sunday, the Kazakh Central Election Committee, stated that the elections were transparent. The OSCE have been heavily involved as “the OSCE/ODIHR Election Observation Mission opened in Astana on17 February, with an11 member core team and 28 long-term-observers deployed throughout the country.”
Whether or not the elections will expedite the reforms or guarantee implementation, the economy continues to slow. If Nur Otan retains its majority in Kazakhstan’s Parliament, the speed of implementation would not be effected. The snap elections directly are not being held to give the government a mandate on “100 steps.” The legitimacy of “100 steps” is derived from the President and support from Parliament and the overall willingness to reform Kazakhstan. Fifty-nine laws have already entered into force citing information from the Astana Times.
The snap elections center on economic recovery and political change. The snap elections are supported by the Majlis, and the miners and metallurgists to allow for “further implementation of reforms,” under Plan of the Nation (or “100 Steps”) and to “understand how we work in a new way, what laws should be adopted to meet the requirements of a market economy,” according to the Kazakh BNews news portal. The Head of the Assembly of Peoples of Kazakhstan (APK) stated elections will benefit the country politically and economically. Kazakhstan’s People’s Democratic Patriotic Party, known as “Aul” Party, also supports the snap elections. Support from Aul makes the elections and the decision not so one-sided appear pluralistic. The Astana Times, published astonishing, but not surprising, poll results about voting in a new Majlis and reforms: “92 percent of citizens believe the early elections make the public more confident the new reforms will be implemented.” Other poll results are similar.
Recently, on 12 January 2016, protests were held in Astana against the Kazakh Bank and the falling tenge. In response, the Kazakh government offered powdered mare’s milk on the global market which “can generate product worth $1 billion (a year)” to mitigate declining global oil prices. Another recent incident was the firing of the Sovereign Wealth Fund manager, Berik Otemurat, stated Kazakhstan’s National Oil Fund would run out in the next six or seven years. The National Oil Fund, often used as an emergency fund, has fallen 17% from $77 billion since August 2014 and the government is withdrawing about according to the Wall Street Journal. The tenge strengthened slightly in February after the currency declined after the government began to float the currency and the country is still experiencing weakened GDP growth. By mid-March the tenge has recovered by 10%.
Two activists in Kazakhstan, Serizkhan Mambetalin and Ermek Narymbaev, were convicted and sent to prison for two and three years respectively for Facebook posts “inciting national discord” (Article 174 of the Criminal Code) and the “authorities claimed the clips amounted to a ‘serious crime against peace and security of humankind’ ” according to Human Rights Watch. The two men were arrested in October 2015 and their trial began 9 December 2015. A third activist, Bolatbek Blyalov, has movement restricted for three years and cannot “[change] his place of residence or work, or [spend] time in public areas during his time off.” The punishment for the three activists violates many of Kazakhstan’s international commitments. On 22 February, the head of the Union of Journalists of Kazakhstan National Press Club, Seitkazy Matayev, was arrested on charges of corruption—accused of tax evasion and embezzlement of funds. According to TengrinNews, “the state anti-corruption agency said Matayev was detained along with his son Aset Matayev who heads the private KazTAG news agency.” Seitkazy Matayev was President Nazarbayev’s press secretary from 1991 to 1993. The Committee on Protecting Journalists reported that the Mateyevs sent statements to Adil Soz (a local press group) indicated harassment by city and state authorities began in January 2016.
There was also a recent protest in Almaty on 18 March 2016 about the incarceration of activist Yermek Narymbayev, one of the facebook activists, jailed for incitement ethnic strife (Kazakhstan Criminate Code Article 174).
Kazakhstan repeatedly has fallen short of commitments for democratic reforms (particularly press freedoms) and instead has strengthened Nazarbayev’s soft authoritarianism. Edward Schatz categorizes Kazakhstan as a soft authoritarian regime that engages in managed information and “[discourages] opposition and [encourages] pro-regime authorities.” Information management, according to Schatz, is not only through media, but by staging “many events to convey information dramatically.” Nazarbayev has a history of staging political events. Applying this notion to snap elections, Kazakhstan’s citizens know of the economic troubles. Snap elections are unnecessary to highlight the problem and snap elections give the impression the government is actively handling the problem and that political change is imminent.
Kazakhstan does consider itself a democracy and whether or not Kazakhstan’s democracy meets international standards will be revealed once institutions are strengthened. The Kazakhstan-based Astana Times calls the 20 March elections the first step towards returning “to the levels of growth and prosperity we experienced.” Constitutional reforms may give more power to the lower house, redistributing more power from the strong Presidential system the country now has (in theory).
Poor economic conditions are simple a pretext for squashing dissent and reducing political opposition. The poor economic conditions should be viewed as an opportunity to engage and strengthen civil society, establish dialogue between the government and non-governmental organizations, strengthen financial institutions, and explore alternatives in the energy sector. The crash of the commodities and oil markets presents Kazakhstan a unique opportunity to diversify its economy. The elections also present the opportunity to implement electoral reform as Nazarbayev has not picked a successor which greatly increases political instability and the possible formation of a power vacuum.
Kazakhstan during its time as the Chair for the Organization for Security and Cooperation in Europe has failed to live up to its democratic obligations. The early Presidential elections of April 2015 showed that democratic reforms have yet to materialize. However, failure of democratization (all-encompassing to include media and political rights) and constant criticism has not stopped Kazakhstan from taking on the role of an international mediator on many high-profile conflicts—Iran and Syria—and from becoming a reliable and cooperative economic, trade, and security partners to its neighbors. Kazakhstan’s slow rise on the stage fuel autocratic behaviors.
Kazakhstan’s elections, while varied, reflect Kazakhstan’s wavering commitment to democracy and lack of party pluralism. Snap elections and early Presidential elections provide an opportunity for Kazakhstan to slowly implement electoral reforms and most importantly media reforms. Kazakhstan’s Election Law is weak as it does provide for equal party distribution and fails to provide a concrete and non-ambiguous criteria for campaign finance.
Economic integration: A driving force for sustainable development
Leading thinkers from the world over gather at the Astana Economic Forum this week. Their focus is on the United Nations 2030 Agenda for Sustainable Development, and how it should shape long-term economic growth and social development strategies in Kazakhstan and central Asia. As international best practice and practical solutions are considered, one longstanding objective must remain in our sights: deepening economic integration between central Asia and the broader region. This is a key means of accelerating progress towards the Sustainable Development Goals. Kazakhstan, with its experience of reforming and modernizing its economy, mainstreaming sustainable development and successfully attracting foreign direct investment, has a major contribution to make.
This contribution is important as our analysis demonstrates the region must significantly strengthen its effort to achieve sustainable development. Progress in Asia and the Pacific has been made towards eradicating poverty and providing universal education. Measures are underway to achieve affordable clean energy. Yet on its current trajectory, the region needs to do more to achieve all 17 Sustainable Development Goals. This includes Central Asia, where action is needed to improve gender equality, build sustainable cities and communities and achieve decent work and economic growth – Sustainable Development Goal 8. Regional economic integration will be a key part of the solution.
Kazakhstan has demonstrated its commitment to achieving this goal over time, despite the financial and economic crises in international markets by which it has been affected. The digitalization of the economy and public life is underway and key programmes such as the ‘Business Roadmap’ or the ‘Employment Programme’ are being implemented. Deeper economic integration supported by improved transport infrastructure and trade facilitation measures across the North and Central Asia would support Kazakhstan’s 2050 strategy designed to achieve annual sustainable growth and a diverse knowledge economy. It would also deliver the economic diversification necessary for more equitable distribution of wealth in the subregion.
Today, trade between North and Central Asian countries accounts for only 8 percent of its exports, much less than other parts of Asia and the Pacific. The region’s exports are concentrated in low-value added commodities and the foreign direct investment it attracts focused on natural resource exploitation. Many countries’ landlocked positions make trading particularly costly, weighing heavily on competitiveness. To overcome these challenges, both hard and soft infrastructure is needed.
Starting with the hard infrastructure, transport in particular, there are firm foundations on which to build. The UN backed Asian Highway Network has supported the development of efficient road infrastructure, Euro-Asia transport links and improved access to maritime routes. ESCAP support to Dry Ports improves the transport and logistics systems needed for the efficient shipment of sea cargo to inland destinations by road or rail. The Kazakh-Chinese logistics terminal in the port of Lianyungang, the Aktau, Bautino and Kuryk seaports, and the Khorgos-Eastern Gate dry port on the border with China all contribute to deepening regional integration. As does the newly opened Kazakhstan-Turkmenistan-Iran railway line connecting Central Asia to the Persian Gulf, providing much needed access to the sea.
Yet to make the most of this hard infrastructure, we need to focus on the softer elements as well. We must eliminate non-tariff measures and restrictive rules of origin, which weigh on trade and foreign direct investment. ESCAP is mapping the impact of non-tariff measures on intra-regional trade and helping strengthen governments’ capacity to lessen their impact. Automating trade, transit and investment procedures would also help. The electronic exchange of trade data and documents between the North and Central Asia could reduce trade costs by 25 percent. A United Nations treaty to facilitate cross border paperless trade in Asia and the Pacific has recently been agreed for this purpose. In North and Central Asia, Armenia and Azerbaijan have signed and acceded. I hope that more countries in the region will follow suit to maximize the treaty’s benefits.
A sustainable future for countries in North and Central Asia will depend at least in part on a sustainable approach to transport infrastructure and trade facilitation. More hard infrastructure projects, consistent norms and standards, and harmonized legislative frameworks are needed so that companies can sell into new markets, expand and create jobs. ESCAP is committed to supporting the intergovernmental work needed for such integration to occur, working with sub-regional organizations such the Eurasian Economic Union and the Shanghai Cooperation Organisation. Kazakhstan’s position on the Eurasian continent means it is well placed to help drive this agenda forward. I am looking forward to joining forces with Kazakhstan’s leadership to deepen economic integration and achieve sustainable development by 2030.
How Will Uzbekistan Become A Regional Transit Hub?
On 5th April of 2019, a meeting of the railway authorities of Kazakhstan, China, Iran, Turkmenistan, and Uzbekistan took place in Almaty dedicated to advancing cargo traffic along the North-South Transit Corridor. In fact, the participation of Uzbekistan in the project will shorten the route of goods from China to Iran and forward. Being a part of the ambitious North-South Transit Corridor — a 7,200 km long multi-mode network of ship, rail, and road routes for moving freight between India and Europe —the China-Kazakhstan-Turkmenistan-Uzbekistan-Iran railway can shape the geopolitics of Central Asia.
The decision had been made at the time when Uzbekistan, under the leadership of Shavkat Mirziyoyev, embraced a new path for the country’s further development. Faced with a collapsing economy, international isolation, and a growing number of unemployed youth following years of Karimov’s misrule, the country had little choice but to open up. Unlike his predecessor, President Mirziyoyev adopted a clear strategy document (namely, Uzbek Development Strategy 2017-2021) with the aim of further liberalization of the economy and the development of local infrastructure and cargo routes.
It is safe to note that Uzbekistan now seeks new opportunities to be a key player in the region by promoting various transit projects. Railway diplomacy, in particular, is central to this strategy. Undoubtedly, Central Asian countries including Uzbekistan require large-scale investments in nearly all sectors, but developing regional and transnational connectivity is a sound economic opportunity to stimulate further growth and diversification. Hence, for Central Asian states these infrastructure projects are not merely grand investments but are also tickets to join a global trade and geographic reorientation toward market economies in Western Europe and South and East Asia.
Uzbekistan joined the new railway project as an attempt to regulate the flow of containers through its territory to Iran via Bolashak station. According to reports, the volume of traffic along the China-Kazakhstan-Turkmenistan-Iran corridor last year amounted to 1 thousand TEU (container in 20-foot equivalent). It is expected that the number will grow as all involved parties have agreed on integrated tariff rates for goods transportation. The total length of the China-Kazakhstan-Turkmenistan-Iran route is about 10,000 kilometers, and the total travel time is about two weeks, which is twice as fast than by sea, which takes 25-30 days.
It is not the only regional transit project that Uzbekistan joined recently. In the last three years, Uzbekistan’s new government has shown eagerness to boost cooperation with countries like India, Pakistan, and Afghanistan aiming to become a Central Asian gateway. It is worthy to note that from 2017, Uzbekistan is set to become the biggest trading partner of Pakistan from Central Asia since the bilateral trade between the two countries has improved from $36 million to over $90 million in 2018.
Moreover, in November of 2018, Foreign Minister Abdulaziz Kamilov visited Pakistan and was received by Pakistan’s Prime Minister Imran Khan. Several important issues were put on the table, including the proposal of constructing a railroad connection between the two countries that would pass through Afghanistan. Considering the substantial hydrocarbon reserves of Uzbekistan in oil and natural gas, Pakistan could have particular benefits from this cooperation.
The proposed railway connection is supposed to link Pakistan, Afghanistan, Uzbekistan and possibly India. Uzbekistan’s government pledged $500 million from its own funds for this critical railway line, which, if realized, will become the shortest transit route to the Iranian port of Chabahar. However, the Indian government did not immediately agree to this proposition.
For Uzbekistan, the proposed trans-Afghan railway project is critical in terms of strengthening its position as a crucial transit point of Afghan goods to other Commonwealth of Independent States’ (CIS) and Chinese markets. Until now Uzbekistan has established a transit hub in its Termez city, which borders with Afghanistan. The hub includes a railway line, station, and trade center for Afghan goods. Nevertheless, Uzbekistan seemingly intends to develop the railway connection by linking it with Mazar-i-Sharif and Herat cities, which will open a direct link to the Iranian Chabahar and Bandar Abbas ports.
Additionally, Uzbekistan is keen to encourage India – a global economic giant, to take an active part in its regional initiatives. Uzbekistan’s territory opens new horizons for India as the railway will allow India a more straightforward route to the markets of Afghanistan, Central Asia, and the wider Eurasian region. Currently, in large part due to the lack of direct transport routes, trade turnover between India and the Central Asian states remains far from its potential, and does not exceed 1.1 percent. Moreover, Uzbekistan eyes to gain access to the Indian Ocean’s sea trade routes through the implementation of the trans-Afghan railway.
All regional transit projects such as the aforementioned railway plans create the necessary conditions for the further development of intercontinental transport corridors. Notably, this line of development underscores Uzbekistan’s target to attract Chinese investments and possibly to enter into Chinese markets by its development of localand regional infrastructure and railway connections. For instance, the construction of the aforesaid Mazar-i Sharif-Herat route will allow goods to get from Afghanistan to China in merely three days via Andijan city in Uzbekistan. Thus, giving Uzbekistan’s potential as a transit country, economic benefits area matter of time.
The recently initiated railway diplomacy strategy is a part of Uzbekistan’s efforts to implement long-harbored projects to diversify the economy and boost external linkages. Notwithstanding the fact, the government still faces not only geopolitical but also financial challenges that need to be resolved. Though, the new government seems to lack of practical solutions for now. This includes the ongoing economic deficit and regional security problems, in particular in Uzbek – Afghan border. Yet, railway diplomacy is poised to help Uzbekistan rekindle its relations with major foreign economic partners and will also enable it to expand its influence across the region. In order to achieve this goal, the country needs to build constructive dialogue with neighboring countries just to prevent the future possible economic or political unrest. Indeed, it is an important step for the region’s long-term development plan.
The Track to Prosperity
The world is rebalancing and one of the key gears of this shift is that the tide has turned towards eastern hemisphere. The world is being reshaped here, not just politically but also economically. The long awaited curse has now been lifted as the cogs of new era are positioned in destiny of eastern hemisphere. As liberalism re-emerges over international arena, the thrust of this new order is in trade and connectivity.
One such cord to this anecdote is Uzbekistan and its rising role in the infrastructural developments and regional activity. This Central Asian region and Afghanistan had been conflict zones for long periods of time but now Asian picture is changing. With changing regime in Pakistan, US-Taliban Dialogues going on in Afghanistan the dynamics of regional politics are changing. Tashkent already has cordial relations with Kabul and thus leads many developmental projects in the Afghani land including the Hairatan to Mazar-e-Sharif Railway Project. Being the only country without any rift with Kabul administration, Uzbekistan is seeking to put its influence not by force but by the fist of development. Mutual benefits of both countries can open new doors to regional connectivity and prosperity. Not only this, Uzbekistan is determined for regional connectivity with various projects including Central Asian countries, china and South Asia. Uzbekistan also shares good relations with Pakistan, which is its second largest trade partner in the region after Russia. Also Uzbekistan also shares the floor of Shanghai Cooperation Organization with Pakistan. But after the changed ruling party and its policies, Uzbekistan came up with better ideas.
One such venture was recently proposed by the delegation led by Uzbekistan’s foreign minister, Mr Abdulaziz Kamilov, who visited Pakistan and met his Pakistani counterpart, Mr Shah Mehmood Qureshi at the end of the last year. The proposal which may evolve into Euroasian concept of interconnectivity, aimed at connecting Pakistan with Uzbekistan through a railroad network which will pass via Afghanistan’s Mizari-Sharif. The two possibilities for the construction of lines are Mazar-i-Sharif-Khulm-Puli-Khumri-Doshi-Surabai-Jalalabad-Torkham on Pakistani side or along Surkhan – Puli-Khumri – Doshi – Surabai-Jalalabad-Peshawar (Pakistan).
The proposal if implemented will have far-reaching outcomes, booming the trade which is the dire need of economy for these countries. The trans-afghan railway project will not only connect Pakistan to central Asia and its market but also open doors to Russia, which can also play key role in the economics of the nation. The five year plan which was presented in December of 2017 by Uzbekistan involved such developments which will help the country to boost up its economy by establishing transit trade routes benefitting the economy and amplifying the regional connectivity. The trade route between Uzbekistan and Pakistan will allow access of central Asian states to open waters enabling their reach to the rest of the world through the deep sea port of Pakistan.
The Uzbek soil is enriched with the production of cotton and sugar and apart from this the agro-machinery in Uzbekistan is more advanced than in Pakistan since Islamabad and Tashkent already are trade partners which can clearly be seen as in 2018 the trade between two, crossed the 90 million US dollars mark. This trade volume can reach new altitudes if the direct link is established between the two countries and Pakistan, a country with agro centered economy, can have advanced parameters.
Such collaborations not only can decrease the trade deficit but also boon the local industry and economic growth can be achieved in areas which are underdeveloped. Also the majority of the population in this part of the world lives below the poverty line, the track can help in improving their living standards. Various studies indicate that high cost of trade in this region is because of lack of interregional infrastructure. Therefore leading to lower prices of trade can help raising lower class and expanding middle class. Also when there is a market, Foreign Direct Investment comes in rushing. Hence overall the conditions of the states would improve drastically over the years.
Uzbekistan has been long interested in Afghan soil which is conflict ridden from its postmodern to modern history. It is difficult for the landlocked Uzbekistan to have a global access. Thus in order to open its trade tentacles Uzbekistan needs Afghanistan and to outreach globally it needs a port which is deep sea. The proposal if comes into reality will make good use of Pakistan’s strategic location, making Pakistan as the focal point for regional trade and its connectivity with the rest of the world. Uzbekistan and Afghanistan are landlocked states and need a country like Pakistan with warm water sea ports for getting to hot waters.
A railway line will reduce the cost of transportation and make it convenient for the two states for getting a suitable sea port. Also, a train would take not only goods but also people. This would lead to increased people to people contact. With people connected together, peace and stability in the region would be comparatively easy to attain. Developing the underdeveloped areas of Pakistan and Afghanistan and the sense of insecurity which is visible will be minimized. These developmental projects can enhance the capacity to achieve collective prosperity and enrich the relation between the countries. Consequently, a better image of these countries will eventually be projected. Through such initiatives the whole eastern region will be interconnected with each other and trade will be boomed benefitting participant countries.
Apart from this, the world has now left with only a few untapped resources which are mainly located in central Asia and Afghanistan. If odds don’t go against, it will be a great victory for Pakistan to be connected with Central Asian states directly through the rail road network. With the new shift and East into light, everyone is eyeing on Asia and its proximities for energy reserves. Pakistan, once connected through railroad, can take maximum possible advantage of this untapped potential in the region which would not only be beneficial for countries itself but for Pakistan as well.
Recent proposal can curb the miseries of Afghanistan and steer it into a healthy voyage of productivity, and through developments peace and security can be achieved in the Afghanistan. Such initiatives will open doors not only for Pakistan, Afghanistan and Uzbekistan but also for the countries that have potential markets. Apart from this, these acts will make region interdependent which further can deescalate the tensions among countries opening them for each other and becoming market for each other. The regional connectivity will also boost the integration and regional harmony.
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