IFPRI CENTRAL ASIA NEWS WEEKLY DIGEST (JULY 7 – JULY 20, 2015)
News and Analysis
Kazakhstan – Improving the Trade Policy Framework, Management and Regulations
(World Bank in Kazakhstan, 9 Jul 2015) Latest Note on the Kazakhstan Trade Report – a series of World Bank reports, was published according to the World Bank in Kazakhstan. The report is composed of three policy notes that discuss how to improve the trade policy framework, its management and its regulations. Full list of report volumes and policy notes are available in here.
Level of poverty in Kyrgyzstan in 2014 is 30.6 percent
(24.kg, 9 Jul 2015) Level of poverty in Kyrgyzstan decreased by 6.4% to 30.6% in 2014, according to the latest figure from the National Statistics Committee. Decline in rural poverty was much more significant at 8.7% than in urban areas at 1.6%. Nationwide unemployment rate stood at around 8% of the economically active population, according to the same source.
(World-Grain.com, 14 Jul 2015) Uzbekistan was the country focus of the recent World-Grain article. The article highlights the fact that despite strong push to increase domestic grain production, of which 93-94% is considered to be wheat production, Uzbekistan is one of the biggest flour importers in the world. Referring to data from International Grains Council (IGC), WB, FAO and USDA attache information the articles underlines some progresses as well as shortcomings in the grain production system in the country.
Remittance flows to Tajikistan continue declining
(Asia-Plus, 14 Jul 2015) Remittance flows to Tajikistan are reportedly continuing to decline, according to the Chairman of Amonatbonk (Tajikistan’s savings bank) Ruhullo Hakimzoda. Remittance received through the Amonatbonk branches in Tajikistan was 173.7 million USD over the first six months of this year, 39.6% decline from the last year. Hakimzoda attributed the decline in remittance flows to economic crisis in the Russian Federation, which is the main destination country for Tajik labor migrants.
New book exposes rural gender gap in Eastern Europe and Central Asia
(FAO ECA, 15 Jul 2015) FAO in Europe and Central Asia (ECA) announced the publication of it new book “Rural Women in Eastern Europe and Central Asia”, which provides an overview of the gender gap in agriculture and rural areas. In the six countries examined in the book – Albania, Bulgaria, Georgia, Moldova, Kazakhstan, and Tajikistan – it was found that rural communities face both hidden and open gender disparities that are deeper than usually acknowledged or felt by women and men. The present work takes guidance from the FAO flagship publication: “The State of Food and Agriculture (SOFA) 2010-2011: Women in agriculture – Closing the gender gap for development”, with more Central Asian exposure.
Statement at the Conclusion of an IMF Staff Mission to the Kyrgyz Republic
(IMF Press Release, 15 Jul 2015) An International Monetary Fund (IMF) mission visited Bishkek from July 9-15, 2015, following approval by the IMF Executive Board of a new three-year arrangement under the Extended Credit Facility (ECF). At the end of the visit head of the IMF Mission Mr. Gemayel stated that the economy has been resilient in spite of the economic slowdown in Russia and the region. According to the National Statistics Committee preliminary June data, non-gold growth reached 4.4% and 12-month inflation slowed to 4.5 percent, notwithstanding the exchange rate depreciation of 5.8% since the beginning of the year. However, he also stated that worker remittances fell by 25% in the first five months of the year and trade continues to slow down.
FAO, EU to boost food security in Tajikistan
(AzerNews, 20 Jul 2015) The UN Food and Agriculture Organization and the European Union have launched a new partnership agreement to boost food and nutrition security, sustainable agriculture and resilience in 35 countries, including Tajikistan, reports AzerNews referring to the UN News Center report. The initiative will have two linked five-year programs: Food and Nutrition Security Impact, Resilience, Sustainability and Transformation (FIRST) and Information for Nutrition Food Security and Resilience for Decision Making (INFORMED); and funded by EU contribution of 50 million EURO and FAO contribution of 23.5 million EURO in total, which will be country led and demand driven.
Publications
(J. Kazbekov et.al. 2015. Environmental Science and Policy. Early online version.)
Abstract: Donor sponsored projects are often criticized for the tendency to impose standardized institutional and technical solutions in irrigation. Although, this might be the case, a project is based on internal actors, ‘project owners’, who influence solutions and implementation processes. Little attention has been paid to project owners, internal dynamics and how these shape aid projects. In this paper, a water user associations (WUAs) project in Central Asia is explored, which introduced flow regulating and metering devices (hydroposts). It is explored how change within project owners, differences in their interests and absence of a proper knowledge management system within the project influenced the alteration of project objectives, causing failure of the implementation process. The paper concludes that internal dynamics within projects are the main source of project uncertainty and risk. Some recommendations are offered how these risks can be minimized.
(A. Zinzani. 2015. International Journal of Water Resources Development.)
Abstract: Since the 1990s, Irrigation Management Transfer has been considered the world over to be a policy aimed at rolling back state influence in water management according to a neo-liberal approach. The initiative was endorsed by international organizations as a way of reforming the water sector in developing countries. Reflecting on this process, the role of hydraulic bureaucracies in driving reforms oriented towards IMT has often been neglected in academic debate. This article discusses the logic of IMT implementation and the establishment of Water Users' Associations (WUAs) in Uzbekistan, specifically in Samarkand province. These dynamics have been analysed over the last 10 years showing different trajectories within Uzbekistan. Data were collected through extensive fieldwork in three districts in Samarkand province. The evidence acquired shows that, on the one hand, WUAs were established to be a new structure for state control over water and agriculture, in conflict with IMT rationale, and, on the other, that WUAs were created in the province as a result of a local initiative promoted by the hydraulic bureaucracy and accepted by the national authorities due to influential power relations.
The Impact of Foreign Capital on Macroeconomic Performance in Central Asia
(A. Arazmuradov. 2015. Annals of Public and Cooperative Economics. Early online version.)
Abstract: This paper investigates the short-run impact of shocks in international capital flows channeled through foreign direct investment (FDI) and foreign aid on national output and export performance in five Central Asian economies under a dynamic multivariate structural vector autoregressive (SVAR) framework. The main message is that external capital shocks are persistent and small open economies are weak to absorb them. The expansion of global demand (G20) leads to an increase in domestic GDPs, notably in Kazakhstan, Kyrgyzstan and Uzbekistan. The impact is augmented by a positive effect of FDI on export channel (and net exports) that shift the IS curve upwards. We cannot find any significant aid-FDI nexus in the region, except in Kazakhstan. The structural variance decomposition (SFEVD) results suggest that external flows and foreign demand together explain the bigger part of variability in domestic GDP and exports. The role of domestic activities is found to be weaker for aid and greater for FDI. The results could be attributed to rigid exchange rates, high trade dependence, and necessity for foreign capital to explore natural resources in Central Asian region. Our results provide some valuable suggestions to improve an investment climate for boosting economic growth.
Events
Fourth Meeting of the Working Group on Environmental Governance and Climate Change
(8-10 July, 2015, Tashkent, Uzbekistan: EU Regional Environmental Programme for Central Asia – Phase II (EURECA II))
Description: The Working Group on Environmental Governance and Climate Change of the EU-Central Asia Platform for Environment and Water Cooperation held a meeting in Tashkent. The meeting gathered over 80 participants that represent environment and water agencies, foreign ministries, regional and international organizations and the civil society. During the meeting, the EU and the partner Central Asia countries discussed the latest developments in relevant policies, identify tentative priorities and expected results of a new regional program of cooperation, coordinate their current activities and start preparatory work for a high-level meeting that is planned to be held in fall 2015 in Italy. The link also contains the agenda and presentations from the meeting.
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