Tag Archives: economy

What a new bicycle lane says about Almaty

NOV. 15 2010 (The Conway Bulletin) – Bicycle lanes cut through many major cities in the developed world. They are, perhaps, a public luxury that wealthy, well organised societies can afford and away from Europe or North America are far less common. Roads have to be smooth, drivers disciplined and the public has to be wealthy enough to be concerned with both traffic management and pollution and not just scraping together a living.

Now, Almaty has its own bicycle lane — the first in Central Asia. Opened this month, the bicycle lane runs 2.5km along a pavement at the side of Abai street which cuts across Almaty.

Kazakhstan has high aspirations. It is once again enjoying economic growth and this year it gained international political kudos through its chairmanship of the Organisation for Security and Cooperation in Europe (OSCE) which monitors democracy and human rights.

Almaty, no longer the capital but still Kazakhstan’s cultural and financial centre, also holds serious aspirations and in January 2011 hosts the Asian Winter Games.

But Kazakhstan’s recent wealth has also brought traffic and pollution problems to Almaty. In rush hour, the roads are gridlocked and exhaust fumes choke the air.

It appears, though, to be taking traffic management seriously. In 2011 Almaty will finish construction of a seven-station metro system and the bicycle lane in Abai is just the start of a proposed 40km network — similar to wealthy, well-organised European cities.

ENDS

(News report from Issue No. 15, published on Nov. 15 2010)

Germany wants child labour investigated in Uzbekistan

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NOV. 9 2010 (The Conway Bulletin) – Germany’s human rights commissioner called on the International Labour Organisation, a UN agency, to investigate Uzbekistan for using child labour to pick its cotton harvest. This is the sharpest criticism by a leading European figure of Uzbekistan’s alleged use of child labour. Uzbekistan has previously promised to stop the practice.

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(News report from Issue No. 15, published on Nov. 15 2010)

Kazakhstan’s grain harvest drops 31%

NOV. 3 2010 (The Conway Bulletin) – In 2010 Kazakhstan harvested 13.9m tonnes of grain down from 22.7m tonnes in 2009, a senior official from the Kazakh ministry of agriculture said. This represents a drop of 31%. Droughts have reduced grain harvest this year throughout the world.

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(News report from Issue No. 14, published on Nov. 8 2010)

Georgia improves ties with Iran

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NOV. 8 2010 (The Conway Bulletin) — Since Mikheil Saakashvili became Georgia’s president in 2004, the US has considered Georgia its most reliable ally in the South Caucasus.

But this year Georgia, perhaps worried by US President Barack Obama’s drive to mend ties with Russia which it fought in a 2008 war, has steadily improved relations with one of the US’ biggest enemies — Iran.

Iran has also been on a determined charm offensive in the South Caucasus and Central Asia. Facing increasing international isolation over its nuclear development programme, Iran has reached out to its former Soviet neighbours — especially Azerbaijan and Tajikistan — and visits regularly for talks on trade and cultural affairs.

On Nov. 3, Iran’s foreign finister Manouchehr Mottaki visited Tbilisi. Alongside improving air links between Tehran and Tbilisi and dropping visa requirements, Iran will open up a consulate in the Georgian Black Sea port of Batumi, a favoured holiday destination for Iranians. Iran already pays Georgia for electricity supplies and, importantly for Georgia, has refused to recognise the breakaway Georgian regions of South Ossetia and Abkhazia.

This budding friendship is likely to irritate the US which suspects Iran is trying to build a nuclear weapon. It has already expressed displeasure at Iranian overtures in the South Caucasus.

On Oct. 19, a few days after Iran’s defence minister visited Azerbaijan, the US sent a senior Treasury Department official to Baku to warn Azerbaijan against improving ties with Tehran.

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(News report from Issue No. 14, published on Nov. 8 2010)

Foreign firms in Kazakhstan may have to use local banks

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NOV. 2 2010 (The Conway Bulletin) — Kazakhstan is considering introducing regulations to require foreign companies working in Kazakhstan to deposit 35% of their savings in Kazakh banks, Berik Kamaliyev, deputy minister of trade and industry, told a government meeting. He said the aim was to bolster the Kazakh banking sector.

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(News report from Issue No. 14, published on Nov. 8 2010)

IMF forecasts growth in C.Asia and S.Caucasus

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OCT. 28 2010 (The Conway Bulletin) — Booming commodity prices and a sustained revival in Russia’s economy are driving economic recovery in Central Asia and the South Caucasus, the International Monetary Fund (IMF) said in a report. The IMF said economies in both regions will grow this year except for Kyrgyzstan where political turmoil has dented growth.

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(News report from Issue No. 13, published on Nov. 1 2010)

Kazakh government plans $15.6b industrial investment

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OCT. 26 2010 (The Conway Bulletin) — Kazakhstan plans to spend $15.6b on
industrial development between 2011 and 2013, PM Karim Massimov told his Nur Otan party according to his website. Transport and infrastructure will receive $6.8b.

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(News report from Issue No. 13, published on Nov. 1 2010)

IMF assesses Central Asia and S.Caucasus

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OCT. 28 2010 (The Conway Bulletin) — Underdeveloped banking systems, a high rate of non-performing loans and inflexible exchange rates are potential brakes on economic recovery in Central Asia and the south Caucasus, the IMF said.

With their reliance on neighbouring Russia and global commodity prices, the global financial downturn in 2009 was tough for the economies of Central Asia and the south Caucasus. This year, with Russia and commodity prices recovering and the impact of domestic fiscal stimulus taking hold, the IMF predicts steady economic growth throughout the regions, other than for Kyrgyzstan.

Remittances from workers in Russia, so important for the poorer Central Asian and Caucasus countries, grew by 26% in the first half of 2010 compared to the same period in 2009.

The IMF said that inflation was generally under control at around 8%, although in Uzbekistan it was nearer 11%. For the IMF, the regions’ banking sectors are a concern. In Kazakhstan, the IMF pointed out, non-performing loans total nearly 26% of all loans.

IMF’s GDP % growth figures (2010 and 2011 are predictions):

Armenia +13.7 (2007); +6.9 (2008); -14.2 (2009); +4.0 (2010); +4.6 (2011)

Azerbaijan +25.0 (2007); +10.8 (2008); +9.3 (2009); +4.3 (2010); +1.8 (2011)

Georgia +12.3 (2007); +2.3 (2008); -3.9 (2009); +5.5 (2010); +4.0 (2011)

Kazakhstan +8.9 (2007); +3.2 (2008); +1.2 (2009); +5.4 (2010); +5.1 (2011)

Kyrgyzstan +8.5 (2007); +8.4 (2008); +2.3 (2009); -3.5 (2010); +7.1 (2011)

Tajikistan +7.8 (2007); +7.9 (2008); +3.4 (2009); +5.5 (2010); +5.0 (2011)

Turkmenistan +11.6 (2007); +10.5 (2008); +6.1 (2009); +9.4 (2010); +11.5 (2011)

Uzbekistan +9.5 (2007); +9.0 (2008); +8.1 (2009); +8.0 (2010); +7.0 (2011)

ENDS

(News report from Issue No. 13, published on Nov. 1 2010)

Turkmen economy grows

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OCT. 18 2010 (The Conway Bulletin) — In a rare economic forecast, Turkmenistan’s
government said its economy would grow by 7.5% in 2010 compared to 6.1% last year. Boosted by revenues from gas exports Turkmen government statistics have shown sharp growth in the past few years.

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(News report from Issue No. 12, published on Oct. 21 2010)

Turkmen and Uzbek leaders meet again

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OCT. 19 2010 (The Conway Bulletin) — Relations between Uzbekistan and Turkmenistan have blossomed recently and on Oct. 19 Uzbek President Islam Karimov arrived in Ashgabat for a two day visit, his second trip in 10 months.

Mr Karimov last visited in Dec. 2009 for the opening of a gas pipeline running from Turkmenistan to China via Uzbekistan and Kazakhstan. As if to highlight strengthening Uzbek-Turkmen friendship, Mr Karimov’s press office said trade in 2009 between the two neighbours had increased by 40%.

But relations haven’t always been this cosy and only since Kurbanguly Berdymukhamedov took over as Turkmenistan’s president in 2006, have links visibly improved.

There was little official detail on what was discussed but talks were likely to have focused on NATO’s war in Afghanistan, gas export prices and shared concern about the growing influence of Russia in Central Asia — Kazakhstan has joined a Customs Union with Russia and Belarus and an election in Kyrgyzstan handed pro-Russia parties the balance of power — as well as concern at the development of upstream hydropower plants in Kyrgyzstan and Tajikistan.

According to Mr Karimov’s press office, the potential of a transport corridor from Central Asia to the Middle East was also on the agenda.

Combined, Uzbekistan and Turkmenistan have clout in the region. Turkmenistan and Uzbekistan are major gas, gold and cotton exporters and they hold nearly half of Central Asia’s roughly 60m people.

Karimov’s visit was also well timed. The day after he left, Russian President Dmitri Medvedev arrived in Ashgabat for his own talks with Mr Berdymukhamedov.

ENDS

(News report from Issue No. 12, published on Oct. 21 2010)