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Uzbekistan to Create Own Military-Industrial Complex by 2022

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As part of the 25th anniversary celebrations of the creation of Uzbekistan as an independent state, newly elected president Shavkat Mirziyoyev declared his intention to create a native military-industrial complex.

In his January 14 declaration to the people in Uzbek media, Mr. Mirziyoyev announced an imminent program to re-equip his nation’s armed forces to face the challenges of the 21st century. These reforms would be tailored to fit the unique needs of the Uzbek military to more effectively address current and future threats. Another, perhaps more important set of reforms, has to do with improving legislative efficiency regarding military matters by delegating certain tasks to senior politicians and by reorganizing the military structure to favor more independent regional operations.

Mr. Mirziyoyev’s announcement was ambitious, to say the least, but his idea of a military-industrial complex is likely very different from that of most western notions of what such a system should look like. Uzbekistan has no large scale native arms producers. The country’s military, the largest in Central Asia, is entirely reliant on inherited Soviet era equipment. In addition, its annual military budget, reported to be approximately $2.4 billion (2015 est.), is entirely inadequate to create an arms producing industry in such a short period.

In his statement, Mr. Mirziyoyev was perhaps purposefully vague in outlining equipment updates. Instead, he focused on increasing Uzbekistan’s maintenance and repair capabilities for its current equipment as well as updating educational doctrines to train the next generation of service members. The sometimes vague comments were intended to also outline the Uzbek military’s role in the region and in the world. It is exactly this role which must be clearly examined in order to better determine what attributes Uzbekistan’s military may have in the future.

Isolationist Policy

Uzbekistan is somewhat unique among former Soviet states in its handling of foreign policy which will likely shape its future military structure accordingly. The 25-year-old republic goes to great lengths to abstain from military entanglements by avoiding international alliances and mutual defense treaties. Its geographic proximity to states like Russia, China, and the United States, which has been fighting a prolonged war in neighboring Afghanistan, all but ensured a struggle for influence over Uzbekistan which the country has had varying degrees of success in balancing.

Despite being an on and off again member of the Russian-dominated Collective Security Treaty Organization (CSTO), which Uzbekistan ultimately left in 2012, it seems that the nation has now taken a firm stand against military cooperation with foreign powers. This policy includes the removal of all foreign bases located on the territory of Uzbekistan. The 2005 removal of an American airbase in the southern city of Karshi following international outrage at the Uzbek authorities’ violent handling of mass protests in Andijan indicates that Uzbek leadership may not want the increased media scrutiny and deteriorating foreign public opinion which often comes with western deployments in authoritarian countries. The only military organization of which Uzbekistan is currently a member is the loosely formed Shanghai Cooperation Organization (SCO). This membership does not currently commit Uzbekistan to any foreign deployments or base hosting responsibilities, but it does allow access to international military exercises with powerful militaries like those of Russia and China.

Reforms

Outside of military exercises, long term international commitments would not be beneficial for the types of military threats that Uzbekistan faces. Apart from a border dispute with Kyrgyzstan, there are no regional adversaries that an Uzbek military may counter. Instead, terrorism and the illicit drug trade are likely the most practical threats against which to build a future military. Logically, regional reorganization would be more effective in combatting such unpredictable security threats and the country’s current security infrastructure would not be best suited to handle it.

As stated previously, Uzbekistan has the largest military in Central Asia by a substantial amount both in terms of conscripted manpower and equipment; however, it is structurally almost unchanged from Soviet doctrine which was designed to fight large ground wars. Its large stockpile of equipment reflects that doctrine with hundreds of main battle tanks and dozens of fighter planes; tools which have limited value in smaller scale tactical counterterror and policing operations.

Uzbekistan likely needs a smaller professional force which is spread throughout its regions. This force would ideally consist of contract soldiers who are continually trained in counterterrorism operations over the course of years and decades, not single 12 month rotations typically expected of conscripts. Training may be supplemented by taking part in counterterrorism exercises with countries like Russia and China through Uzbekistan’s membership in the SCO. Mr. Mirziyoyev’s proposed equipment maintenance and upgrades would also serve to maintain Uzbekistan’s traditional fighting capabilities, if not to create new ones. Ultimately, Mr. Mirziyoyev’s proposal of creating a native military industrial complex by 2022 may be optimistic at best, but there are a number of concrete steps that the Uzbek leadership can take to make its military more effective and ideally suited for the likely threats it may face in the near future.

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Central Asia

Astana: City of new opportunities

Asset Issekeshev

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Relocating a capital, and creating from scratch not only an administrative and diplomatic centre, but also a new continental and global hub, is a huge task. The few countries that have attempted this can confirm the complexity of this challenge. Yet despite the challenges, no-one can doubt that the goal of the President of Kazakhstan, Nursultan Nazarbayev, to move our capital from Almaty in the South to the heart of our large country has been achieved.

It was a bold decision, which some at that time were worried was simply too ambitious. Kazakhstan had only just gained independence following the collapse of the Soviet Union. The country was transitioning, with great difficulties, from a planned to a market economy. And despite being the 9th largest country in the world, the global community knew very little about us.

That is no longer the case. Today, Kazakhstan’s capital has become a modern city that is playing an ever-growing political and cultural role in the world community. The choice of President Nazarbayev, who believed the new capital would accelerate, not hold back our country’s progress, has been proved right.

Astana is a symbol of Kazakhstan’s ambition for its citizens and its global partners. It is a source of pride and a capital accessible to all and has become a driver of national prosperity. Internationally, it has helped put Kazakhstan firmly on the map as it plays its part in tackling some of the world’s toughest challenges.

In twenty years, our population has tripled to more than one million people. Providing the housing, roads and the many other socially important services a 21st century city needs has been a major feat of planning and construction. Today’s economic indicators prove that the city is now self-sufficient and profitable. And not only in financial terms.

Astana has been chosen by major international firms to establish their headquarters and production centres for Kazakhstan and Central Asia. They see our capital and our country as a reliable bridge between east and west and as a continental centre with further high development potential.

Kazakhstan, with Astana at its heart, has created a very favourable business climate. Over the past few years, the nation has attracted ever-increasing investor attention as one of the fastest-growing economies. Continuously increasing foreign investment in Kazakhstan is testament to our stability and ongoing reforms. I am confident that the launch of the Astana International Financial Centre, which operates on the basis of the English law, will create further incentives to conduct business in this city.

In addition, thanks to the country’s investment policy, last year Astana was recognised as having the most favourable conditions in the country for doing business.

It is not just as a successful and reliable economic partner that Astana is making its international mark. The city has become a centre for diplomacy where regional and global initiatives are launched to promote peace and cooperation, expand trade, and encourage sustainable development. Astana is now established as a place which brings people together and helps find solutions to the challenges of our time.

It is where, for example, the Eurasian Economic Union and Silk Road Economic Belt Initiative – both important for regional prosperity – were proposed to the world. Expo 2017, in which over 100 countries took part, provided the opportunity for advances in future energy to be shared.

Astana also hosts the annual Congress of Leaders of World and Traditional Religions, recognised as a major platform for inter-faith dialogue. The Astana Declaration, which came out of the Organisation for Security and Co-operation in Europe summit here in 2010, set out a bold vision for the future of Eurasia.

Astana is seen by the international community as a neutral and welcoming location where progress can be made on major conflicts and disputes. In this regard, it is difficult to overestimate the significance of the Astana Process, which remains the only forum that brings together all the main parties in the Syrian crisis. Kazakhstan will continue to be committed to peace and dialogue and I have no doubt that Astana will play a key role in helping to achieve these goals.

Twenty years, of course, is a very short time in the life of a city, especially a capital. But in just two decades, Astana has come a long way and made a big impact. Thanks to our leadership and the enormous effort of the people of Kazakhstan, Astana today is a successfully developing young capital with a bright future.

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Central Asia

Kyrgyzstan: Looking for digital solutions to combat child labour

MD Staff

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A group of young digital specialists – supported by the ILO in Kyrgyzstan – was among the prize winners in a ‘Hackathon’ aimed at promoting children’s rights.

Following a marathon 48-hour event involving 18 teams of information technology experts and their mentors, they designed an innovative application that has the potential to monitor the incidence of child labour in communities.

The ILO Child Labour Project in Kyrgyzstan provided general guidance and mentoring to the team to ensure the conformity of the software to the operational mechanisms of the national child protection system in Kyrgyzstan.

Their design came second in the competition, “Central Asian Hackathon, Generation Z: Wellbeing of Children”, which was organized by the Central Asian Coalition on Promotion of the Rights of Women and Children and the “League on protection of Children Rights” Public Fund, in partnership with the ILO, UNICEF, UNODC, the Embassy of Netherlands, and public and business companies.

‘The application helps to conduct interviews with children, formulate recommendations and determine their status,’ said Victoria Petrova, business processes analyst of the ILO-supported IT team. ‘It will help officials to assess the situation of the child, determine whether the child is being exploited and what needs to be done to resolve the situation.’

“We are on constant search of new solutions and new partnerships,” explained Amina Kurbanova, ILO National Project Coordinator in Kyrgyzstan. “The Hackathon gave us a unique opportunity to establish partnership with a new group – young highly qualified IT professionals, and to develop an application that may greatly facilitate child labour monitoring process.”

The IT team, “Testovoe nazvanie”, collected USD 1,500 in prize money.  The ILO now plans to support pilot testing of the new software by the line ministries.

“We are grateful to the ILO for this support. It is obvious that the proposed technologies could be applied in the daily work of social workers, police inspectors, labour inspectors and social pedagogues. The Ministry will carefully study the results of the pilot testing and will closely work with the IT Team specialists during fine-tuning of the application,” says Jyldyz Polotova, Deputy Minister of Labour and Social Development of the Kyrgyz Republic.

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Central Asia

Productive Employment Needed to Boost Growth in Tajikistan

MD Staff

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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.

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