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Central Asia

TAPI: Exploring the possibilities

Osama Rizvi

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Borders thronged with soldiers. War drills. Scything rhetoric and deranged shreds of unfounded accusations. This is how we can best explain the recent situation between the two big names which are supposed to build, along with two other countries, a pipeline called TAPI.

The mixture of the countries is very unique in the sense that the eristic-trio, Pakistan, India and Afghanistan, are more or less at loggerheads with each other at different forums and on different issues. However, the significance of the project is tantamount for all the four countries. Whereas Turkmenistan is in search of new markets for its gas the other three countries are in dire need of an energy dose given their multiplying populations and commensurately proliferating energy demand. At present, Pakistan produces 4 bcfd of gas against demand for 6 bcfd.

Why Turkmenistan needs a market? The national exchequer takes a 31% chunk of gas imports in this country. Also, it was in the times of great USSR that the Turkmen gas pipelines were constructed. Now as Russia plans to forge new alliances and the magnitude of gas exported to former Soviet empire diminishes from 40billion cubic meters to 11bcm. The only option left for the water-melon exporting country is the Hans. However, Russia in a fit of fear of isolation has already penned down a $400bn deal with China after sanctions were slapped on it when it annexed Crimean peninsula in Ukraine. Hence, in a world filled with whimsical actors who are apt in the brusque act of changing camaraderie Turkmenistan has no option than to tap new markets. As one article points out: “TAPI represents a part of a large-scale program on diversification of the export routes of distribution of Turkmen gas”. Also, recently Russia has and Turkey has been expediting the completion of Turkish stream pipeline.

The TAPI aims to bestow 38bcm of natural gas to Pakistan and India each- and Afghanistan 14bcm. Out of a tranche of $25 billion Turkmenistan will invest $15 billion in developing the gas field whereas $10 billion will be utilized to lie down a 1,680km-long pipeline. However, this is only possible is the countries are ready to work together. I also am suspicious of the political maturity of this trio. That is to say we cannot expect them to be China and USA- both see each other as threat to their global influence yet bonded by the thread of biggest trade partner. On the other hand Pakistan, India and Afghanistan are embroiled in regional conflicts each manifesting intransigence by peddling cold comments or refusing to attend meetings [read: SAARC conference]. These countries are symptomatic of a mindset that is bereft of the comprehension that economic ties/priorities should be placed before national interests.

Iran is busy with its intrigues in Syria. Afghanistan is growing its relationship with India. Pakistan is stuck in its internal political conundrum hosting protests and sit-ins. No one seems to have the time to think on the utilitarian values—to work to solve energy related issues to mention only one of them. Afghanistan is still sick with the Taliban epidemic. As one of my professor of international relation puts it “If I was Taliban I would let them built the pipeline and then blow it”. It is almost blatant that Taliban would be waiting for such an opportunity. For this pipeline to be successful the security clearance in Afghanistan is a must… and the likelihood of such an event to eventuate is similar to cleaning the Aegean stables. Another proposed pipeline is IPI (Iran-Pakistan-India). A country squeezed betwixt two allies…allies that smell of the envy of the appertaining the CPEC project. A pipeline between these three? I don’t think so. Also, Iran and India are developing their Chabahar port which further reduces the chances of any project between Pakistan.

The Kashagan Oil field that has been dubbed by The Economist as “Cash all gone”. The procrastinations added up almost $50bn in its cost and it is only recently that production has commenced there. I fear the same for this TAPI: A pipeline stuck in the maelstrom of regional politics.

Independent Economic Analyst, Writer and Editor. Contributes columns to different newspapers. He is a columnist for Oilprice.com, where he analyzes Crude Oil and markets. Also a sub-editor of an online business magazine and a Guest Editor in Modern Diplomacy. His interests range from Economic history to Classical literature.

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Central Asia

Belt and Road Initiative in Central Asia and the Caucasus

MD Staff

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Left to right: Speakers Johannes Linn of the Brookings Institution, Harinder Kohli of the Emerging Markets Forum, ECA Chief Economist Asli Demirguc-Kunt, and Caroline Freund, World Bank Director of Trade, Regional Integration and Investment Climate. The panelists discussed the Belt and Road Initiative in Central Asia and the Caucasus. Photo: World Bank.

The massive Belt and Road Initiative (BRI) plans to build roads, railways, seaports and other trade infrastructure in dozens of countries in the Eurasian continent. The BRI aims to connect Asia to Europe, and the initiative has steadily expanded economic corridors and projects as far as Africa.

Two of the planned corridors of this ambitious project will run through countries in the Central Asia and South Caucasus. These countries are mostly land-locked, and their transportation infrastructures and quality tend to be low.

“If properly implemented, BRI transport projects are expected to reduce travel times and trade costs, potentially leading to enhanced trade, foreign investment which would translate into higher economic growth and poverty reduction for the countries involved,” said Asli Demirguc-Kunt, chief economist of the World Bank’s Europe and Central Asia (ECA) region.

“However, there are also significant risks involved, and the initiative can leave countries with excessive debt and poor quality projects; and there are potential environmental and social costs,” Demirguc-Kunt said. “So the question is how can these countries maximize the benefits and minimize the risks?”

Economists Harinder Kohli of the Emerging Markets Forum and Johannes Linn of the Brookings Institution spoke about the BRI at the inaugural ECA Talks event, a series of monthly talks in which researchers exchange and challenge ideas about key issues affecting the region.  Their talk was based on a study that draws on background notes prepared by experts from the region on their countries’ perspectives on the BRI, hence providing an “inside-out” perspective. 

One of the constraints to good analytical work in this area is that no comprehensive dataset exists with reliable information about BRI project costs, conditions and terms of financing.

“There are great benefits to be had but also considerable risks that need to be addressed in one way or another,” said Linn. BRI investments should reflect country priorities and be integrated with national and regional plans.  Macroeconomic constraints, especially debt sustainability, must be carefully monitored and respected. 

Governance and corruption issues are important as in any large infrastructure project, so there is a need for greater transparency on terms and conditions of these projects, for example open and transparent public procurement.  Some BRI routes pass through ecologically important landscapes lacking adequate protections, posing a wide range of environmental and social risks, which need to be addressed.

Reaping the benefits will also depend on soft investments made to support trade. Such soft investments include ensuring the efficient operation and maintenance of projects after they are built and improving trade logistics at border crossings. Kazakhstan, for example, stands to receive a potential $5 billion annually in transit fees from goods moving through it to other markets.

BRI projects also include investments in energy, mining, agriculture, communications, and technology to improve trade connectivity. But not everyone will benefit from BRI projects, which will usher in more global trading competition and labor mobility. Countries will need to consider ways to compensate businesses and workers that are eventually forced out.

“What we need is to have more data and more information,” said Caroline Freund, World Bank director of trade, regional integration and investment climate. “This is the only way we are going to understand where the benefits come from.”

World Bank

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Central Asia

Kazakh police raid raises spectre of China’s long arm

Dr. James M. Dorsey

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A police raid on a Kazakh group documenting the plight of Kazakhs and Uyghurs caught in a brutal crackdown in China’s north-western province of Xinjiang is about more than a government seeking to please Beijing in the hope that it improves the lot of its ethnic kin while preserving diplomatic and economic relations.

Amid suspicions that the raid on the offices of Atajurt Eriktileri and the arrest of activist Serikjan Bilash was carried out as a result of Chinese pressure aimed at squashing criticism of the crackdown, the raid seemingly reflects an increasingly aggressive Chinese effort to impose its will on others and ensure that they observe the respect and deference that China believes it deserves.

Atajurt Eriktileri supports relatives of people who have disappeared in Xinjiang and says it has documented more than 10,000 cases of ethnic Kazakhs interned in China.

Police on Sunday sealed the group’s office in Almaty, Kazakhstan’s largest city, seized the group’s computers and archives and flew Mr. Bilash, who said he was being accused of “inciting ethnic hatred, to the Kazakh capital of Astana.

The East Turkistan Awakening Movement, a Washington-based Uyghur exile group, said Mr. Bilash had been arrested on charges of “creating tensions between #Kazakhstan and #China.”

The Kazakh police raid is but the latest incident pointing to China’s more aggressive form of diplomacy that includes an increasing number of undiplomatic comments by Chinese diplomats across the globe.

At times, those comments are couched in civilizational terms steeped in what political scientist Zhang Weiwei describes as the rise of the civilizational state under President Xi Jinping.

Describing the trend towards a civilizational state that involves a rejection of Western concepts, including notions of human rights and freedom of religion, Financial Times columnist Gideon Rahman noted that China was not alone in its embrace of the idea as an alternative to the traditional concept of a nation state based on national borders and language. Mr. Rahman suggested that the concept was also gaining currency in countries like India and Russia.

Chinese Foreign Minister Wang Yi defended his diplomat’s more outspoken statements by pointing to China’s need to stand up for its “rightful and lawful interests.” Mr. Wang insisted that China would not tolerate infringements of its sovereignty and national dignity.

“Chinese diplomats, wherever we are in the world, will firmly state our position,” Mr. Wang told journalists this weekend covering the National People’s Congress.

Former senior Singapore diplomat Bilahari Kausikan noted that “China does not just want its new status recognised as a geopolitical fact; China wants its new status accepted as a new norm of East Asian international relations; a hierarchy with China at the apex. Most countries accept the geopolitical fact; few accept the norm.”

Examples of China’s more aggressive attitude abound while the Kazakh raid suggests that China’s concepts of deference and respect amount to far more than traditional notions of respect. They also provide a potential insight into the values and norms that in China’s view would undergird a new world order.

China’s notion of deference was put on display last September at the Pacific Islands Forum when Beijing’s ambassador to Fiji, Du Qiwen, allegedly demanded the right to speak before Tuvalu prime minister Enele Sosene Sopoaga. The forum’s host, Nauru president Baron Waqa accused the Chinese envoy of being “insolent” and a “bully.”

Both Nauru and Tuvalu, to China’s chagrin, maintain diplomatic relations with Taiwan.

Similarly, Papua New Guinea police were called after Chinese officials allegedly tried to force their way into the office of the country’s foreign minister in a bid to influence the final communique of last November’s Asia Pacific summit.

The summit ended without a final statement because of disagreements between the United States and China. Chinese officials dismissed the report of them having attempted to gain access to the foreign minister’s office as “a rumour spread by some people with a hidden agenda.”

In an oped in The Hill Times, an Ottawa-based newspaper, Lu Shaye, China’s ambassador to Canada, described as “Western egotism and white supremacy” demands that China release two Canadian nationals arrested in China.

The two Canadians are being held in apparent retaliation for the detention in Canada at the behest of the United Sates of senior Huawei executive Meng Wanzhou on charges of having misled banks about the company’s business dealings with Iran.

A series of incidents in the wake of a visit to Sweden last September by the Dalai Lama involving Chinese tourists and a satirical Swedish television show that poked fun at Chinese visitors and excluded Taiwan and parts of Tibet from a map of China drew the ire of the Chinese embassy in Stockholm.

The embassy denounced Swedish police as “inhumane,” decried “so-called freedom of expression,” charged that the tv show “advocate(s) racism and xenophobia outright, and openly provoke(s) and instigate(s) racial hatred and confrontation,” and issued a safety alert to Chinese tourists because of multiple cases of theft and robbery and poor treatment by Swedish police.

In line with Mr. Wang’s justification of his diplomats’ more undiplomatic approach, Brookings fellow Ryan Hass told Bloomberg that the envoys were “matching the mood of the moment in Beijing… Some in Beijing also seem to be growing frustrated that China’s rising national power is not yet translating into the types of deference from others that it seeks.”

The raid in Kazakhstan, like earlier cases such as Egypt’s return at China’s request in 2017 of up to 200 Uyghur students to an uncertain future in the People’s Republic, suggests that Beijing maintains an intrusive, far-reaching definition of its concept of deference and respect.

Kazakh activists charged that the raid was indicative of the kind of pressure applied by China. “Our government doesn’t want to spoil relations between Kazakhstan and China,” said Atajurt’s lawyer, Aiman Umarova.

There was no independent confirmation of assertions that Chinese pressure prompted the raid.

In a video statement, Mr. Bilash confirmed that he was Kazakh police custody and had not been detained “by either the Chinese or Chinese spies”.

Mr. Bilash’s wife, Leila Adilzhan, said she was “afraid our government will give him to China.”

That may be one step too far for the Kazakh government given mounting anti-Chinese summit among Kazakhs and public demands that Kazakhstan be more forceful in its standing up to China for the rights of Kazakh nationals and Chinese citizens of Kazakh descent. Kazakhs constitute the second largest minority in Xinjiang after Uyghurs.

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Central Asia

Walking a Chinese tightrope: Kazakh quiet diplomacy produces limited results

Dr. James M. Dorsey

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The Kazakh government, in defense of Kazakh and by implication Central Asian behind-closed-doors diplomacy towards China in the face of mounting domestic pressure, has offered a rare public account of its ability to improve conditions for its ethnic kin caught in a crackdown on Turkic Muslims in the north-western Chinese province of Xinjiang.

Kazakhstan’s detailing of its ability to reduce the number of Kazakhs among the reported one million Turkic Muslims incarcerated in re-education camps comes amid a significant expansion of what amounts to the most frontal assault on Islam in recent history.

Kazakh transparency is balanced by the government’s efforts to limit civil society pressure on the governments of both Kazakhstan and China to rollback Chinese efforts to severely restrict religious freedoms and alter the practice of the faith in Xinjiang and elsewhere in the country.

The crackdown that China says has helped it counter militancy and separatism in Xinjiang puts on the spot not only Central Asian nations with their ethnic and cultural links to Xinjiang but also Muslim and Arab countries.

In the most recent development, Chinese authorities have removed public Islamic and Arab symbols in Xinjiang as well as the neighbouring province of Gansu, home to non-Turkic Hui Muslims, a community that long prided itself of having adopted a form of Islam that had ‘Chinese characteristics.’

The moves, part of what China has termed an anti-halalization campaign, threatens to put out of business small entrepreneurs like butchers and restaurant owners that cater to a Muslim community that adheres to Muslim dietary and personal lifestyle laws.

The moves suggest that the crackdown is about more than alleged Uyghur militancy and separatism.

By providing a degree of transparency, the Kazakh government is not only defending itself against domestic criticism but also providing a justification for the Muslim wall of silence that has been only breached intermittently.

On a visit to Beijing last month, Saudi crown prince Mohammed bin Salman took that justification to its extreme by seemingly endorsing the crackdown with his statement that China had the right to undertake “anti-terrorism” and “de-extremism” measures.

Addressing parliament this week, Kazakh foreign minister Beibut Atamkulov said the government’s quiet diplomacy had ensured that the “number of Kazakhs in these (re-education) camps decreased by 80 percent.”

It remained unclear whether Mr. Atamkulov was referring to Kazakh and dual nationals or also Chinese nationals of Kazakh descent, He said that China had last year detained 33 dual nationals, 23 of whom were returned to Kazakhstan, suggesting that he was not speaking about the vast majority of Kazakh ethnic kin who have been detained and only have Chinese nationality.

Numbering approximately 1.5 million, ethnic Kazakhs are the second largest ethnic minority in Xinjiang after Uyghurs.

The minister said the government had received more than 1,000 enquiries about people reportedly detained in China and was “working on these issues case by case.”

Mr. Atamkulov’s ministry announced in January that China agreed to allow some 2,000 ethnic Kazakhs to renounce their Chinese citizenship and leave the country.

It was not clear whether the Chinese decision applied to former re-education camp inmates or only Chinese nationals of Kazakh descent who qualify for Kazakhstan’s existing repatriation program.

A former re-education camp employee, Sayragul Sauytbay, who fled to Kazakhstan told a Kazakh court last year that she was aware of some 7,5000 Kazakh nationals and Chinese of Kazakh descent being incarcerated.

Atajurt Eriktileri, a Kazakh group that supports relatives of people who have disappeared in Xinjiang, says it has documented more than 10,000 cases of ethnic Kazakhs interned in China. The Xinjiang Victims Database says it has collected some 3,000 testimonies of prisoners and their families, half of which are from ethnic Kazakhs.

Gulzira Auelkhan, a 39-year-old Chinese citizen of Kazakh descent who spent 15 months in two re-education facilities before being transferred to work at a glove factory for a far below minimum wage, credits her husband’s lobbying of the Kazakh government on her behalf and publicizing of her plight for her release and ability to join him in Kazakhstan.

Eager not to provoke the Chinese, Mr. Atamkulov was careful not to criticize the crackdown. He acknowledged, however, that “there are questions regarding people of Islamic faith” but insisted that China has its own internal policy.”

Kazakh policy appears to demonstrate the ability of quiet diplomacy to achieve at best limited results. The government’s figures suggest that it is able to intervene only in cases of Kazakh nationals, a small fraction of Kazakhstan’s ethnic kin caught up in the Chinese crackdown.

By responding to cases of Kazakh nationals, China enables the Kazakh government to maintain its public silence in the hope that the government can manage mounting domestic pressure and hold steadfast.

That could prove to be a risky bet.

Ms. Auelkhan is living proof of the risk. She was warned when released that her relatives who remain in Xinjiang, two daughters and her elderly parents, would suffer consequences if she chose to speak out once she was in Kazakhstan.

“I know how awful these camps are, and I want the world to know about them. In Kazakhstan I can speak about this, so I am doing it on behalf of those still trapped in Xinjiang,” she says defiantly.

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