By Rafis Abazov

June 28th, 2016, The CACI Analyst

Kazakh experts have recently begun to call water the “liquid gold of the 21st century,” as all states in the Central Asian region face greater demand for water concurrent with a significant decline in water supply. The Aral Sea – which became a symbol of environmental mismanagement and environmental catastrophe at the end of the 20th century – shows that sustainable development policies can help to deal with even the most difficult water issues. Conversely, however, mismanagement and border conflicts over water might worsen the situation, leading to further political and economic tensions. The current question is whether Kazakhstan can collaborate with other Central Asian states in saving and perhaps reviving the Aral Sea.

By Tony Pizur

June 14th, 2016, The CACI Analyst

After the ruble crashed in 2014, the Kyrgyz Central Bank (KCB) prevented Kyrgyzstan’s national currency, the som, from depreciating in tandem with the Russian currency. Given Kyrgyzstan’s ascension into the Eurasian Economic Union (EEU) and the country’s heavy reliance on remittances from expatriates living in Russia, the KCB’s decision to maintain a relatively strong Kyrgyz currency seems counterintuitive. However, the stable som policy is predicated on long-term structural changes in trade patterns toward China. With the Chinese currency tied to the U.S. dollar, the decision to keep the som stable is based more on central bank policies in Washington and Beijing than in Moscow.

By Sudha Ramachandran

May 26th, 2016, The CACI Analyst

Iran’s location near key trade routes and strategic waterways could make it a major Eurasian trade and transit corridor in the coming decades. China is keen to tap into Iran’s potential. But will Iran’s rise as a trade hub undermine the importance and prospects of the China-Pakistan Economic Corridor (CPEC)? This possibility has raised concerns in Pakistan that China’s commitment to making the Gwadar port a key node in the CPEC could dwindle as Iran’s trade corridors take shape and if Pakistan’s government fails to address China’s security concerns.

By Stephen Blank

May 9th, 2016, The CACI Analyst

China has steadfastly refused to get involved in providing hard, i.e. military, security to Central Asian governments, including Afghanistan. This might now be changing. In a March visit to Kabul, General Fang Fenghui, Chief of Staff of the PLA, announced plans to set up an anti-terror regional alliance with Pakistan, Afghanistan, and Tajikistan. President Ashraf Ghani of Afghanistan reportedly endorsed this proposal. China’s initiative could imply a major new development in Chinese policy and in Central Asia’s overall security, with lasting implications for the region. 

By Mirzohid Rahimov

April 19th, 2016, The CACI Analyst

Central Asian nations consider the development of alternative regional transport communications important aspects of their national economic and political strategy, and the republics have become active participants in various international projects to promote economic cooperation with different countries and regions of the world. The development of internal Central Asian communication networks in general, and Uzbekistan in particular, gives the possibility of extending not only national communications, but also broaden networks in Central Asia. The Angren-Pap rail project is very important for national connectivity and for increased international communication. Different international experiences in economic transformation are relevant for Central Asia’s regional connectivity.