Tag Archives: economy

Uzbek economy gets worse

APRIL 13 2012 (The Conway Bulletin) – Despite rosy official figures, information leaking out of Uzbekistan suggests that the economy might not be in such rude health.

In the past month, the US-funded Radio Free Europe/Radio Liberty has reported that pensioners were having to repay part of their pensions and that teachers were being paid with chickens instead of cash.

Sources have also told the Conway Bulletin there are queues of hundreds of cars outside petrol stations throughout the country and regular power and water cuts, even in the capital Tashkent.

These snatched insights are important because Uzbekistan is one of the world’s most closed states and has been presenting itself as a successful alternative to the free-market global economy.

The official line is that its closed policies have made Uzbekistan self-sufficient and sheltered it from the global economic crisis of 2008/9. State statistics show GDP growth at around 8% in 2011 and 8.5% in 2010.

Now though, the Uzbek government appears to be trying to lure foreign investors. On April 11 the AP news agency reported that the Uzbek authorities had promised potential investors tax breaks. Importantly it also promised not to interfere in investors’ work.

Either the Uzbek government finally wants to open up the country or it needs some cash.

ENDS

(News report from Issue No. 083, published on April 13 2012)

Wage inflation soars in Kazakhstan

APRIL 10 2012 (The Conway Bulletin) – Average wages in Kazakhstan were roughly $623 in February, about 18% higher than a year ago, the national statistics office reported. The increase is far higher than inflation which officially measured 7.4% in 2011. Inflation has slowed in Kazakhstan in 2012, triggering a couple of interest rate cuts.

ENDS

(News report from Issue No. 083, published on April 13 2012)

Georgia records deflations

MARCH 2 2012 (The Conway Bulletin) – Georgia recorded deflation last month for the first time since Aug. 2009. Year-on- year, average prices fell 2.1% in February, mainly due to a 3.5% drop in the cost of food and non-alcoholic drinks. In May 2011, year-on- year inflation had hit 14.3%, highlighting the region’s economic volatility.

ENDS

(News report from Issue No. 080, published on March 8 2012)

Inflation slows in Tajikistan

FEB. 27 2012 (The Conway Bulletin) – With inflation easing, the Tajik Central Bank cut interest rates to 9% from 9.8%. Reuters reported that inflation in Tajikistan averaged 9.3% in 2011 compared to 9.8% in 2010. Analysts had identified rising inflation as a potentially destabilising factor in Tajikistan.

ENDS

(News report from Issue No. 079, published on March 1 2012)

Uzbekistan deports eight Turkish businessmen

FEB. 21 2012 (The Conway Bulletin) – A court in Tashkent convicted eight Turkish businessmen of corruption and confiscated their assets. Seven of the businessmen were amnestied and deported to Turkey. One, with joint Uzbek nationality, was sent to prison for three years. The men were arrested last year during raids on a large Tashkent supermarket.

ENDS

(News report from Issue No. 78, published on Feb. 23 2012)

Kyrgyzstan’s air bases earn well

FEB. 23 2012 (The Conway Bulletin) – Kyrgyzstan has developed a decent business in hosting foreign air bases.

It is the only country in the world where both the US and Russia operate separate air bases giving Kyrgyzstan strategic importance beyond its size.

But not only do the US and Russian air bases lend status, they also generate cash.

In 2009 Kyrgyzstan re-negotiated a deal with the US to allow it to keep its base at the Manas airport outside Bishkek open until the end of 2014, when NATO starts to withdraw from Afghanistan, for $60m/year.

Now it looks as if Kyrgyzstan’s new president, Almazbek Atambayev, wants to reconsider the contract with Russia. As well as the airbase at Kant, Russia also operates a torpedo testing site on Lake Issyk-Kul and two other earthquake measuring and communications centres.

In September 2010, Russia and Kyrgyzstan agreed a $4.5m/year rent for these bases but on Feb. 17 Radio Free Europe/Radio Liberty reported that Mr Atambayev might now have other ideas.

During a speech to students in Osh, Mr Atambayev reportedly said the $4.5m from Russia only covered the rent of the Kant air base and that Moscow still owed cash for the other bases.

He may have been playing to the crowd but he also knows that the military bases are one of the few tools he has to generate extra income.

ENDS

(News report from Issue No. 78, published on Feb. 23 2012)

Kazakhstan strikes major deals in Germany

FEB. 8 2012 (The Conway Bulletin) – On a trip to Germany, Kazakh President Nursultan Nazarbayev signed around 50 deals worth €3b with German Chancellor Angela Merkel. One of the biggest deals was for German engineering company Siemens to upgrade Kazakhstan’s railways. Germany will also have access to rare metals in Kazakhstan.

ENDS

(News report from Issue No. 77, published on Feb. 16 2012)

France says Central Asia is a costly NATO supply route

FEB. 9 2012 (The Conway Bulletin) – France’s defence minister, Gerard Longuet, told the magazine L’Orient Le-Jour that NATO’s logistics route through Central Asia is too expensive. NATO has earmarked the route, dubbed the Northern Distribution Network, as the best way of withdrawing soldiers and kit in 2014 from Afghanistan.

ENDS

(News report from Issue No. 77, published on Feb. 16 2012)

South Caucasus-Iran relations worsen

FEB. 16 2012 (The Conway Bulletin) – Attacks against Israeli targets in Georgia, India and Thailand and an acrimonious row between Baku and Tehran have thrown a spotlight over the relationship between the South Caucasus and Iran.

The same day that Georgian security forces disarmed a car bomb in Tbilisi another exploded in Delhi, injuring an Israeli woman (Feb. 13). Israel has blamed Iran for both attacks and another in Bangkok the following day.

Three weeks earlier the authorities in Baku arrested two Iranians for conspiring to assassinate Israeli diplomats, although Iran denied the charges.

The South Caucasus has a complex, fluid relationship with Iran.

Over the past year, much to the irritation of the US, Azerbaijan, Georgia and Armenia have strengthened ties with Iran. Gas deals have been made, railway and air links solidified, visa regulations waived and military delegations hosted. Private business and trade links have also surged.

But behind these strengthening connections relations often remain strained.

Azerbaijan has built up good links with Israel and Georgia’s main backer is the US. Both are Iran’s sworn enemy. Armenia has more cordial ties with Iran but it also needs to be flexible.

The South Caucasus countries have to deal with their powerful neighbour but they are also wary.

ENDS

(News report from Issue No. 77, published on Feb. 16 2012)

Georgia pledges to end corruption

FEB. 1 2012 (The Conway Bulletin) – The World Bank praised Georgia for defeating corruption and said it is an example to other countries in the region. It said that anti-corruption reforms initiated by President Mikheil Saaskashvili have spiked the myth that corruption is cultural and can’t be beaten.

ENDS

(News report from Issue No. 76, published on Feb. 9 2012)