By Natalia Konarzewska (19/08/2015 issue of the CACI Analyst)
The North Caucasus is the Russian Federation’s most economically impoverished region, as well as the most dependent on government revenues. Due to Russia’s dwindling financial situation, federal subsidies for the region are shrinking, which negatively affects welfare and social service expenditures as well as investment projects. Since last year, many state-owned regional companies have gone bankrupt. Fluctuations in government revenues will pressure local governments to increase borrowing from external sources, loans that they will have a hard time paying back. The North Caucasus therefore risks seeing a series of financial defaults.
By Stephen Blank (19/08/2015 issue of the CACI Analyst)
The annual summit of the Shanghai Cooperation Organization took place on July 9-10 in Ufa, and ratified the expansion of membership to include India and Pakistan, and Iran may join in the future. Thus the SCO is well on the way to becoming a venue for the most powerful Inner Asian states to work together and discuss policy issues affecting Central Asia and beyond. But new membership is not likely to make this organization any more effective as a regional security provider. In fact, all the disputes among the major members, including India and Pakistan, might be imported into the SCO’s structure and serve as a brake on the expansion of its capabilities.
By Sudha Ramachandran (05/08/2015 issue of the CACI Analyst)
While China prods the Pakistani government to crack down on Uighur militants and their bases in North Waziristan, it ignores and even appeases Islamabad’s support of anti-India terrorist groups and has rushed to Pakistan’s defense in international forums. While this may endear Beijing to the Pakistani establishment, a selective approach to terrorism is not productive in the long run as groups like the East Turkistan Islamic Movement are drawing strength from Pakistan’s Inter-Services Intelligence’s terrorism network.
By Richard Weitz (05/08/2015 issue of the CACI Analyst)
Now that the UN Security Council has blessed the Iranian nuclear deal, Tehran’s chances of becoming a full member of the Shanghai Cooperation Organization (SCO) in coming years have improved, following a decade of rejection. Iranian leaders have long wanted to join the SCO to gain diplomatic, economic, and security advantages. Nonetheless, Iran will need to overcome several major obstacles on its path to full membership, even if nothing goes amiss with the implementation of its nuclear deal.
The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.
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