By Nurzhan Zhambekov (06/24/2015 issue of the CACI Analyst)
Kazakhstan completed its accession negotiations with the World Trade Organization (WTO) on June 10 and will join the WTO later in 2015. This is a milestone in Kazakhstan’s economic development. The WTO’s member states voted in favor of Kazakhstan’s accession at a meeting in Geneva on June 22, 2015. Whereas the economic impact is currently difficult to assess, the reduction in trade tariffs should in theory improve the competitiveness of Kazakhstan’s economy, leading to higher economic growth. In practice, Kazakhstan’s experience within the Eurasian Economic Union (EEU) has not been positive, as Kazakh producers have struggled to compete with larger Russian companies. Kazakh consumers are likely to benefit from Kazakhstan’s upcoming membership in the WTO, while Kazakh producers will face increasing international competition.
By Natalia Konarzewska (06/24/2015 issue of the CACI Analyst)
Azerbaijan’s president Ilham Aliyev made a last-minute decision not to attend the European Union’s May 21–22 Eastern Partnership (EaP) summit in Riga, citing the need to focus on the upcoming European Olympic Games, which were about to start in Baku. However, high-ranking officials quoted in the media asserted that president Aliyev did not attend the summit due to Western criticism towards Azerbaijan. Baku also expressed dissatisfaction with the summit’s results as Azerbaijan hoped to receive more vocal Western support for the resolution of the Nagorno-Karabakh conflict. Instead, attention was focused on human rights violations in Azerbaijan. Azerbaijan’s relationship with the EU is becoming increasingly strained and displays growing disappointment from both sides.
By Sergei Gretsky (06/10/2015 issue of the CACI Analyst)
The creation of the Eurasian Economic Union (EEU) was presented as a vehicle for economic development of Belarus, Kazakhstan, and Russia as a result of the removal of barriers to free movement of goods, capital, and labor between the three states and creating a common market. Its inauguration on January 1, 2015, happened at a very inopportune moment as Russian economy, the largest of the three, was sharply contracting due to falling global commodity prices and western sanctions over Ukraine. Economic recession in Russia has had a negative ripple effect on Belarusian and Kazakhstani economies, which led some in Kazakhstan to second-guess the benefits of joining the EEU.
By Michael Hikari Cecire (06/10/2015 issue of the CACI Analyst)
In late May 2015, Russia signaled its abandonment of the “Novorossiya” project in eastern Ukraine, which came only a few months after Moscow signed “integration treaties” with the breakaway Georgian regions of Abkhazia and South Ossetia. While the end result was not uniform in each of these cases, these recent developments point to a return to status quo ante Russian policies towards friendly separatist regimes – namely, their utility not only as local proxies, but as means of positive as well as negative leverage within their origin countries.
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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