By Stephen Blank (11/1/2006 issue of the CACI Analyst)

BACKGROUND:Constitutional reform has not taken place, corruption and criminality is rampant and opposition leaders, no doubt aggrieved at their being left out of the spoils, complain that Bakiyev and Kulov have followed in Askar Akayev’s footsteps as president by assigning choice economic plums to members of their families. Economically, as well, the country is not able to make major progress and the Russian economic presence has grown as Moscow has sought to help Kyrgyzstan overcome its crippling debts and backwardness which are exacerbated by a lack of exportable natural resources. Since the Tulip Revolution in March 2005, many of the hopes generated by that event have dissipated.

By Kevin Daniel Leahy (11/1/2006 issue of the CACI Analyst)

BACKGROUND:During the course of an interview with the German magazine Der Spiegel in mid-2005, Russia’s deputy presidential chief of staff, Vladislav Surkov, expounded on the challenges facing his administration in the North Caucasus. Specifically, he identified the creation of jobs, the development of educational opportunities, and the advancement of youth outreach programs as priority tasks. Although this particular interview did not explain how Surkov and his colleagues planned to address these outstanding issues, a speech he subsequently made to a gathering of Russian businesspeople proved rather more revealing.

By Ariel Cohen and Conway Irwin (11/1/2006 issue of the CACI Analyst)

BACKGROUND:EU countries rely on Russia for more than 40 percent of their natural gas imports. Russia controls the majority of gas pipeline infrastructure connecting Central Asia and Russia to Europe and denies other parties access to its excess pipeline capacity. Concerns over Russia�s questionable business practices and reliability as an energy supplier have led European policy makers to support alternative routes for natural gas transport to EU markets, and they are turning to Turkey as a potential conduit for gas transit lines.