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Market |
Defence |
Report Type |
Market Research |
Country |
Global |
Published |
1 September 2009 |
Number of Pages |
65 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
As part of the Soviet Union, the Central Asian republics – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan – were primarily valued for their natural resources and not as a manufacturing or industrial base. Though some manufacturing facilities were inherited from the Soviet regime in Kazakhstan, the region has no substantial defence sector .
In terms of defence and security, the republics face issues at a number of levels .
First of all, each would acknowledge that it needs to expand and modernise its forces. Budget constraints, made worse by the global economic slowdown, make this unrealistic. The region receives a poor terrorism rating and a generally poor rating in terms of human rights. On the other hand, in terms of stability the ruling regime in each country does appear to be quite secure .
At a second level, the area lies on one of the main transport routes for heroin out of Afghanistan. The increase over recent years in opium production combined with a crackdown on the trade through Iran and Pakistan has made the northern route more and more important. The side effects are an increase in addiction within Central Asia and the growing presence of organised crime groups moving product through the region .
At the next level there is always a degree of tension among the republics. Several have mineral and oil resources and several have good agricultural land. In the recent past oil and gas have been the key assets .
In the longer term, however, water is more likely to be the crucial resource. The water rich want to exploit their advantage but are wary of provoking their resource rich (and therefore financially stronger) neighbours .
On the regional stage the Russian bear dominates, economically, politically, geographically and militarily. All of the republics are tied to the Russian economy. The present slowdown in the Russian economy has knock on effects in each of the Central Asian economies. One of the most obvious and direct impacts relates to the importance of remittances from expatriate workers. Before the financial crisis remittances represented, for instance, 20-25% of GDP in Kyrgyzstan and Tajikistan. This year, many of those workers are having to return home .
Russia’s military adventure in South Ossetia may have earned it criticism from world opinion, yet the image of a muscular Russia willing to move forcefully to protect its vested interests was well received at home. Among its neighbours, the demonstration that Russia will use military force to achieve its objectives was chilling. Each of the republics is, in its own way, trying to build links to other countries (especially China) in order to reduce its dependence on Russia. All are now moving more cautiously, trying not to provoke the bear in the process .
On a strategic perspective, the geographic location of Central Asia, between Russia and China and adjoining Afghanistan, means that it lies at the junction between the Russian, Chinese and US areas of interest and influence. The US-controlled Manas airbase in Kyrgyzstan is a case in point. The US was issued with orders to evacuate the base in February, yet it remains open. The US embassy has maintained that dialogue with the president remains open over the issue. Should the base remain in operation, Kyrgyzstan risks tempering relations with Russia. On the other hand, closure of the base would signal the alignment of Kyrgyzstan’s foreign policy agenda with Russian interests, altering the geopolitical balance over the longer term. The uncertainty has provided renewed impetus for Washington to seek to reopen the Karshi-Khanabad (K2) airbase in southern Uzbekistan. The base had been used by the US but was closed in November 2005 following Washington's criticism of Tashkent's crackdown on protestors in Andijan .
While the Soviet Union was in being, the area of Central Asia was a relatively unimportant region. It now finds itself facing a range of short- and medium-term security issues; though at this moment in time most of the countries will be subsumed by the immediate consequences from the global economic slowdown.
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