Tag Archives: economy

Food inflation hits Central Asia and stirs unrest

FEB. 21 2011 (The Conway Bulletin) – Fires last year in Russia, floods in Australia and bulk buying by wealthy countries have pushed up wheat prices around the world, angering people and worrying governments. In Central Asia and the South Caucasus some are warning of growing unrest.

On Feb. 11 in his state-of-the-nation address, Georgian President Mikhail Saakashvili said his government would start handing out food vouchers to every family in the country and on Feb. 18 the Kazakh government promised to spend $87m building up its reserves of wheat.

But the most vulnerable countries are Kyrgyzstan and Tajikistan where people have had to endure the steepest spike in wheat prices in the world on top of soaring inflation and instability.

In comments which would have resonated in Bishkek and Dushanbe, the head of the World Bank, Robert Zoellick said on Feb. 15 of the food price rises: “There is a real stress point that could have social and political implications across Central Asia.”

The World Bank has estimated that in Kyrgyzstan wheat accounts for 40% of the average person’s calorie intake while in Tajikistan the figure is even higher at 54%.

And social tension may already have flared.

In Dushanbe, media quoted a government official reassuring people that the country had enough food supplies and denying that there would be any unrest linked to a lack of food.

Local media in Kyrgyzstan reported that the government is preparing to tap into their emergency wheat reserves to feed 340,000 low income families but a Conway Bulletin correspondent in Bishkek said teachers and other state employees plan a demonstration on Feb. 23 to protest against rising food prices.

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(News report from Issue No. 28, published on Feb. 21 2011)

Kyrgyzstan and Tajikistan show booming wheat prices

FEB. 15 2011 (The Conway Bulletin) – The price of wheat has jumped by 54% in Kyrgyzstan and 37% in Tajikistan since June 2010, the World Bank said. The Kyrgyzstan price rise is the largest in the world. Wheat makes up around 50% of people’s diets in both countries.

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(News report from Issue No. 28, published on Feb. 21 2011)

Georgia plans food and fuel coupons to battle inflation

FEB. 11 2011 (The Conway Bulletin) – Georgia plans to hand out fuel coupons worth 20 lari ($11.3) and food coupons worth 30 lari ($16.9) to every family to ease pressure over price increases, President Mikheil Saakashvili said in his annual state-of-the-nation address. Inflation in January measured 12.3% according to the Statistics Committee.

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(News report from Issue No. 27, published on Feb. 14 2011)

Iran to build $500m cement plant in Tajikistan

FEB. 12 2011 (The Conway Bulletin) – Iran will spend $500m building a cement plant in Tajikistan, its ambassador in Dushanbe told media (Feb. 9). Later Tajik foreign minister Hamrokhon Zarifi praised the growing cooperation between the two countries.

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(News report from Issue No. 27, published on Feb. 14 2011)

Kazakhstan’s economy booms

FEB. 14 2011 (The Conway Bulletin) – In 2010 Kazakhstan’s GDP grew by 7% and its trade surplus almost doubled to $29.5b, its national statistics office said. The statistics office also said that for the first time China was the biggest buyer of Kazakhstan’s exports with 17.1% of the total.

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(News report from Issue No. 27, published on Feb. 14 2011)

Oxus Gold to sell up Uzbek assets

FEB. 3 2011 (The Conway Bulletin) – Oxus Gold, the only publicly listed mining company operating primarily in Uzbekistan, said it had agreed to sell its 50% stake in its mines to its Uzbek partners. Oxus Gold is listed on London’s AIM. It did not say how much it had agreed to sell its stake in the Amantaytau Goldfields for.

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(News report from Issue No. 26, published on Feb. 7 2011)

Gold reserves at Kyrgyzstan’s Kumtor rise by 24%

FEB. 7 2011 (The Conway Bulletin) – Toronto-based Centerra Gold increased proven and probable gold estimates at its Kumtor gold mine in Kyrgyzstan by 24%. It also said the lifespan of the mine, vital for Kyrgyzstan’s economy, had lengthened by two years to 2021. In 2009, Kumtor accounted for a quarter of Kyrgyzstan’s total industrial output.

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(News report from Issue No. 26, published on Feb. 7 2011)

Kazakhstan and Turkmenistan post inflation and growth data

JAN. 24 2011 (The Conway Bulletin) – Kazakhstan’s GDP will grow by 4-5% in 2011 against an earlier forecast rise of 3.1%, media quoted economy minister Zhanar Aitzhanova as saying. Inflation in Turkmenistan was 4.8% in 2010, Reuters quoted the state statistics agency as saying.

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(News report from Issue No. 24, published on Jan. 24 2011)

S&P upgrades Kazakhstan’s rating

DEC. 23 2010 (The Conway Bulletin) – Credit ratings agency Standard & Poor’s raised its sovereign foreign currency rating on Kazakhstan to BBB from BBB-. It said the upgrade reflected Kazakhstan’s rebound from the global recession. Ratings service Moody’s has already upgraded Kazakhstan to Baa2. Fitch retains a BBB-rating.

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(News report from Issue No. 21, published on Jan. 4 2011)

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Think-tank predicts economic problems in Armenia

DEC. 26 2010 (The Conway Bulletin) – Armenian think tank The Civilitas Foundation said 2011 would be a difficult year economically for Armenia. “Armenia’s economic growth will remain anaemic. Despite moderate global growth, there will still be lagging effects on Armenia’s economy,” it wrote in its annual report.

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(News report from Issue No. 21, published on Jan. 4 2011)