By Richard Pomfret (2/21/2008 issue of the CACI Analyst)

Kazakhstan’s banks have been considered one of the country’s major successes, but are currently facing serious difficulties. Foreign loans have to be repaid, but bank assets are tied up in loans with longer maturities.  The government has begun to help the banks, but at the cost of fuelling inflation.

By Richard Weitz (2/21/2008 issue of the CACI Analyst)

The military conflict in Afghanistan dominated the informal NATO Defense Ministers meeting in Vilnius on February 7-8. Although the ministers sought to downplay their differences and highlight their achievements, it quickly became apparent that their governments disagree sharply over how best to promote peace and prosperity in the country. The chaos in neighboring Pakistan has reinforced the urgency of shoring up NATO’s commitment to Afghanistan at a time when the Kabul government is losing support among Afghan citizens frustrated by decades or war and poverty.

By Erica Marat (2/21/2008 issue of the CACI Analyst)

The new government appointed by Kyrgyz President Kurmanbek Bakiyev following controversial parliamentary elections in December 2007 is comprised of a small group of political leaders whose business interests largely interconnect. About 10-12 high-ranking officials in the president’s administration and ministerial cabinet determine the country’s entire economic policy and political climate. Meanwhile, unlike before, non-state organized criminal groups and their leaders are no longer able to significantly influence the political domain, thus marking a sizable shift in state-crime relations in the country.