Tag Archives: economy

Frustration grows in Azerbaijan

JAN. 25 2013 (The Conway Bulletin) – It wasn’t until police reinforcements arrived on Jan. 24, according to media, that the authorities were able to regain control of the town of Ismayilli.

Since the previous afternoon, the town, about 200km north-west of Azerbaijan’s capital Baku, had been the scene of street fighting between police and young men frustrated by the lack of jobs and an increasingly high-handed political elite.

The fighting erupted on Jan. 23 after a car crash reportedly involving the son of a government minister. Both the trigger, alleged favouritism towards the political elite, and the resulting vicious backlash, were telling.

This was Azerbaijan’s worst violence for a decade. It came less than a year after similar, though smaller, street fighting, also triggered by the political elites’ arrogance, in another town.

The fighting in Ismayilli will no doubt draw a similar reaction from the authorities. They will pour in police to clampdown on dissenters and mount a PR campaign to discredit the protesters.

Azerbaijan’s economy is booming, luxury goods crowd Baku’s streets and millions are lavished on prestige projects such Eurovision last year. The street violence, though, suggests that there are large swathes of Azerbaijan’s under-classes who are not so happy.

ENDS

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(News report from Issue No. 121, published on Jan. 25 2013)

 

Azerbaijan boosts spending on military

JAN. 18 2013 (The Conway Bulletin) – Over the past decade, it’s become an increasingly familiar story. At almost every budget, the Azerbaijani authorities have boosted spending on weapons and other military hardware.

This year, though, the jump in military spending was more significant than normal.

According to media reports, Azerbaijani president Ilham Aliyev said that military spending would hit $3.7b in 2013, up from 3b in 2012. A decade ago, the Stockholm International Peace Research Institute (Sipri) estimated that Azerbaijan spent roughly $414m on its defence budget.

And Azerbaijan is not short of neighbours it considers to be problematic.

Azerbaijan’s military shopping spree is aimed mainly at Armenia. The two countries are still officially at war over the enclave of Nagorno-Karabakh. A 1994 ceasefire keeps the peace around Nagorno-Karabakh but shootouts and death puncture this peace every week.

Azerbaijan’s relations with Iran have worsened considerably over the past 18 months too.

There have been a number of reported shootouts on their border. In Baku, the Azerbaijani authorities have arrested several people accused of being Iranian agents. The Iranians have also arrested several Azerbaijanis in Iran.

The Azerbaijani authorities are unlikely to relax their policy of rearmament any time soon.

ENDS

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(News report from Issue No. 120, published on Jan. 18 2013)

 

Kazakhstan invests in railway

DEC. 28 2013 (The Conway Bulletin) – Kazakhstan opened a faster rail link between Astana and the west of the country, media reported, highlighting the authorities’ drive to improve infrastructure. The train, running nearly 1,500km to Aktobe, will make the journey in 16 hours, knocking 11 hours off the previous time.

ENDS

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(News report from Issue No. 119, published on Jan. 11 2013)

 

Azerbaijan’s oil production drops

DEC. 30 2012 (The Conway Bulletin) – Azerbaijan’s oil production dropped by 3.7% in 2012, mainly due to lower-than-expected output at the BP-led Azeri-Chirag-Guneshli field, the head of Azerbaijan’s state oil company, Rovnag Abdullayev, said. Oil and gas are the mainstays of Azerbaijan’s economy.

 ENDS

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(News report from Issue No. 119, published on Jan. 11 2013)

 

Kyrgyz parliament approves economic ambitions

DEC. 28 2012 (The Conway Bulletin) – Kyrgyzstan’s parliament approved an ambitious economic plan for 2013 that relies on cash from Chinese, Russian and Western investors, Reuters reported. The Kyrgyz economy is hugely reliant on the Kumtor gold mine, owned by Toronto-listed Centerra Gold, which reduced output last year, forcing GDP to drop.

ENDS

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(News report from Issue No. 119, published on Jan. 11 2013)

 

Armenia’s CBank reports positive economics

DEC. 23 2012 (The Conway Bulletin) – Armenia’s central bank reported generally positive economic data when it said that it would hold interest rates steady at 8% because of slightly weaker than expected inflation, media reported. Inflation speeded up slightly towards the end of the year but still only peaked at around 4%, the bank said.

ENDS

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(News report from Issue No. 118, published on Dec. 28 2012)

 

Government spending rise in Armenia

DEC. 5 2012 (The Conway Bulletin) – Armenia’s parliament passed a budget that called for a 10% rise in government spending in 2013, RFE/RL reported. The Armenian economy is expected to grow by 7% this year and 6% in 2013 and, unlike many countries, the debate in Armenia focuses on just how much more revenue to spend rather then cut.

ENDS

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(News report from Issue No. 116, published on Dec. 7 2012)

 

Coca-Cola invests in Tajikistan’s economy

NOV. 23 2012 (The Conway Bulletin) – In a boost to Tajikistan’s economy, its government said that a subsidiary of Coca-Cola planned to build a $30m bottling plant in the country, AP news agency reported. AP’s report said that Coca-Cola Icecek was potentially prepared to double its investment within a decade.

ENDS

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(News report from Issue No. 115, published on Nov. 30 2012)

 

Economic news present conflicting future for Kyrgyzstan

NOV. 19 2012 (The Conway Bulletin) – Instability stalks Kyrgyzstan. It’s prone to revolution, the rule of law is weak, corruption is deeply-rooted and ethnic tensions simmer just below the surface.

Under-pinning all this is its relatively impoverished economy. Alongside Tajikistan, Kyrgyzstan is the poorest country in Central Asia, with little arable land or natural resources.

All this makes the Kumtor gold mine in the mountains of eastern Kyrgyzstan so important. It’s owned by Toronto-listed Centerra Gold (which is, itself, part owned by the Kyrgyz government). The mine makes up around 12% of the country’s annual GDP.

That’s why the announcement earlier this month by Centerra that the gold reserves at the mine are actually more than 50% larger than originally thought was so important (Nov. 8).

Centerra went further and said the life-span of the mine would be extended by another five years to 2023. Good news, indeed, for Kyrgyzstan.

Less positive was an announcement by the Central Bank that it expects inflation to be higher in 2013 than first thought. It now forecasts inflation in 2013 at around 11%, up from an earlier forecast of 8%. Rising food prices have created the inflationary pressure — a bad economic sign not just for Kyrgyzstan but for the entire Central Asia region.

ENDS

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(News report from Issue No. 114, published on Nov. 23 2012)

 

Tajikistan ranks first among remittance-dependent countries

NOV. 22 2012 (The Conway Bulletin) – World Bank data showed, again, that Tajikistan’s economy is the most reliant in the world on remittances, media reported. In 2011, remittances, mainly from Russia, accounted for 47% of Tajikistan’s GDP. Second on the list was Liberia with a 31% share. Remittances made up 29% of Kyrgyzstan’s GDP last year.

ENDS

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(News report from Issue No. 114, published on Nov. 23 2012)