IFPRI CA NEWS DIGEST (FEBRUARY 4 – FEBRUARY 10, 2014)

News

Kazakh Grain Harvest Increases 41.7% in 2013 (Russian)

(Kazakh Zerno, 4 Feb. 2014)  Kazakhstan’s farmers collected approximately 18.2 million tons of grain last year, a 41.7% increase from 2012’s totals.  Wheat accounted for over three-fourths of the total, which was announced by the national statistical agency.  2013 saw good agricultural performance across the board, with oilseeds, potatoes, vegetables, and melons all enjoying improved harvests.  The three northern provinces of North Kazakhstan, Akmola, and Kostanai contributed over 70% of cereal production, while the southern Almaty region recorded the largest vegetable and potato totals.  Kazakhstan plans to export 9-10 million tons of grains in the 2013-2014 marketing year.

Kyrgyzstan Wants to Keep Its Wholesale Markets in the Customs Union

(Central Asia-Caucasus Analyst, 5 Feb. 2014) Kyrgyzstan has slowed down its accession to the Russia-led Customs Union after the Eurasian Economic Commission disregarded its request to include special preferences in Kyrgyzstan's roadmap. With an economy immensely benefiting from the transit of Chinese goods to the wider region, Kyrgyzstan is asking that its wholesale bazaars, Dordoi, Karasuu, and Madina, be granted free-trade-zone status and other support for the first years of its membership. However, it remains to be seen whether the Union members will eventually concede to Kyrgyzstan’s conditions, as free-trade-zones would undermine the Union’s very idea of protecting its market.

Demographic and health survey shows decline in child mortality in Kyrgyzstan

(Times of Central Asia, 3 Feb. 2014) The newly released survey, the second DHS in the Kyrgyz Republic, highlights a welcome decline in infant and child mortality. The mortality rate for children younger than age five is 31 deaths per 1,000 live births, a dramatic decline from the rate of 72 deaths per 1,000 live births reported in the 1997 KgDHS. However, the report also shows persistent high rates of poor child nutrition with almost one-fifth of children in the Kyrgyz Republic under five being stunted or severely stunted. Stunting, which represents chronic malnutrition, varies around the country with the highest rates in Osh city, Osh and Batken Oblasts in the south of the country.

Russia Helps WFP Support Food-Insecure Families In Kyrgyzstan

(Reuters, 3 Feb. 2014) The Government of the Russian Federation has announced its renewed commitment to the United Nations World Food Programme (WFP), contributing US$3 million to support the most food-insecure families in the Kyrgyz Republic through community projects. The grant will fund WFP's food-for-assets projects that assist rural communities to revitalize infrastructure, improve agricultural production, diversify rural incomes and mitigate the impact of natural disasters.

Half of Tajikistan GDP is Migrant Wire Transfers

(RIA Novosti, 7 Feb. 2014)  Remittances sent by Tajik migrants in Russia accounted for half of Tajikistan’s GDP in 2013.  The total volume of transfers amounted to $3.6 billion, dwarfing both Russian direct investment in Tajikistan ($1.2 billion) and bilateral trade between the two countries ($688 million) last year.  1.1 million Tajik citizens are estimated to be working in Russia.

Volume of Wheat Imports Increases in Tajikistan (Russian)

(Asia-Plus, 7 Feb. 2014)  Wheat imports for January 2014 totaled approximately 75,000 tons, an increase of almost 11,000 tons from the same period last year.  The article predicts that this year’s seasonal increase in wheat and flour prices in the spring will be somewhat muted thanks to bumper harvests in Kazakhstan, Russia, and domestically in 2013.  Wholesale prices for imported wheat at the Tajik border are currently $240 per ton and are currently stable. 

World Bank Vice President for Europe and Central Asia Visits Uzbekistan

(UzReport, 10 Feb. 2014) Laura Tuck, World Bank Vice President for Europe and Central Asia, visited Uzbekistan on February 7-8. She held discussions with high-level government officials and expressed willingness of the WB to cooperate with the government on greater openness and transparency, including better access to economic data.

Record Cold and Snow in Central Asia, Several Killed as Bad Weather Strikes Afghanistan, Central Asia

(Multiple sources, 5 Feb. 2014)  Several countries in Central Asia, including Kyrgyzstan, Tajikistan, and Uzbekistan have experienced unusually cold and snowy weather earlier this week.  An all-time record low temperature of -21.7 degrees Celsius (-7.1 Fahrenheit) was recorded in Termez, Uzbekistan on February 3.  Reports from Tajikistan claimed snowfall amounts of 80 cm (31 inches) of snow in a matter of hours.  Schools, airports, and other public buildings around the region have been forced to close as a result of the unusual weather.

Publications

Transition Report 2013: Stuck in Transition?

(EBRD, January 2014) This report examines the political, institutional and human capital constraints to effective reforms in transition countries. Reforms in most transition countries have stalled since the mid-2000. Long-term growth projections suggest that unless reforms are revived, living standards in most transition countries will remain below those in mature market economies, or at best converge very slowly.

Does Growth Generate Jobs in Eastern Europe and Central Asia?

(World Bank Policy Research Working Paper, January 2014) In Eastern Europe and Central Asia, the link from growth to jobs was tenuous in the first decade of the transition, giving rise to the notion of jobless growth. Yet, European countries suffered large job losses during the recent recession, suggesting that jobs and growth are closely entwined. This study provides a cross-country analysis of the employment intensity of growth over the last decade and a half in Eastern Europe and Central Asia. The authors compare these findings with other regions in the world.

The Business of Government: The State as Obstacle and Facilitator for Private Investment in Central Asia

(EBS Business School Research Paper, January 2014) This article deals with the question on how the Central Asian governments have dealt with transition as a whole and the emergence of private business in particular. The paper investigates the specific role(s) that the Kazakh and Uzbek states assume within their respective economies and its impact on the environment for both foreign and domestic private business. Drawing on more than 300 interviews with different stakeholder groups authors try to describe notable differences in the transition strategies of these countries.