Perspectives on central asia nr9

ISSN 2413-4236

!!

Table of contents

P. 3 “The voice of a female cultural worker, citizen and activist” by Diana Ukhina

P. 11 “Religious literature examination and censorship in Kazakhstan: A need for reform” by Daniyar Kussainov

P. 16 “Opportunities and challenges for private sector connectivity in Central Asia” by Aitolkyn Kourmanova

Eurasian Dialogue is delighted to introduce the ninth volume of Perspectives on Central Asia. All three articles in the bulletin are written by young Central Asian authors. They tackle a diverse range of salient issues ranging from art to religious freedom and business development.

In the first article, Diana Ukhina describes the recent art exhibition “Art and Emancipation: O. Manuilova and her Contemporaries“ held in Bishkek, Kyrgyzstan. Through an examination of female artist Olga Manuilova and other Soviet artists, she examines how art formed a tool in the struggle for women’s emancipation in Kyrgyzstan. Since independence, there has been a resurgence of patriarchy and “traditional” values. Ukhina looks back to the Soviet artists as an inspiration for the current struggle against gender-based discrimination and violence.

Daniyar Kussainov shifts our attention to another issue that has been on the minds of Central Asian regimes of late: how to fight against Islamic extremism. Focusing on Kazakhstan, Kussainov argues that the current regulation of

religious literature is inefficient, opaque and politicised. And it does not seem to be working. Despite the blocking of websites and banning of books, Kazakhs continue to join Daesh. Kussainov argues that a more nuanced approach to religious literature where on a a few truly ‘extremists’ are banned, is the way forward in Kazakhstan.

In our final article, Aitolkyn Kourmanova examines the ways in which the private sector in Central Asia can benefit from the integrationist projects of the US, China and Russia. At present, it is the public sector that are benefitting from infrastructure and connectivity projects such as the CASA 1000 hydroelectric station in Tajikistan and Central Asia-China gas pipeline. But the private sector can also benefit through the creation of global value chains. To date, however, protectionism has dominated over integrationism. And this has stymied the potential of the private sector in the region. Kourmanova argues that interest from multi-national investors based outside the region will be crucial to the development of value chains in the private sector.!

This article discusses the civic engagement of female artists in the political, economic, social and cultural affairs during the Soviet and contemporary periods in Kyrgyzstan. It examines the recent exhibition ”Art and Emancipation: O. Manuilova and her Contemporaries“ organised by the Public Foundation ArtFAQ in the Memorial house-museum named after O. Manuilova in Bishkek in May 2015. Addressing the period of women’s emancipation in the Soviet Kyrgyzstan, the exhibition explored the perception of women as actors and creators in their professional and public work.

While taking into account the complexities and contradictions of the emancipation process in 1920-1930s, we recognise the dramatic changes in the position of women and achievements linked to the key reforms of the Soviet-era. These achievements seem quite natural to us, but it is necessary to understand that behind them there was a struggle for women’s empowerment. Currently we find ourselves in a situation where instead of moving forward, it is necessary to defend the freedoms that the previous generations already struggled for. Gradually, patriarchal relations have come to dominate social life in Kyrgyzstan. Patriarchy manifests itself in obvious ways, for example increasing levels of domestic violence, and in less obvious forms, such as the objectification of women and the deprivation of their voice. Such rhetoric is present not only at the family level, but also at the state level. For example, in 2013 a draft law prohibiting girls under 23 years from going abroad without permission from their husband, parents or close male relatives was introduced to Parliament. In public discourses, both official and unofficial, the kidnapping of girls for marriage is represented not as a crime, but as a "tradition.” According to the Kyrgyz Republic review within the framework of implementation of the Beijing Declaration and Platform for Action "Beijing +20", "60 percent of marriages in mono-ethnic rural areas are accomplished through bride kidnapping or Ala kachuu in Kyrgyz. Two thirds of these marriages go ahead without the girl’s consent”,1 2013.

THE VOICE OF A FEMALE CULTURAL WORKER,

CITIZEN AND ACTIVIST

BY DIANA UKHINA !

Art plays a key role in representing and contesting the realities of contemporary Central Asian life. Diana Ukhina describes the recent art exhibition “Art and

Emancipation: O. Manuilova and her Contemporaries“ held in Bishkek, Kyrgyzstan. In the article, she traces the link between artwork, activism and gender equality back to the Soviet Union and discusses the potential for art to help in the

struggle against patriarchy in modern Kyrgyzstan.!

Perspectives on Central Asia 9, January 2016 3

Cultural and social stereotypes are disseminated through the mass media, cinema and the rhetoric of the government officials. The dominant discourse of power “naturalises” patriarchal attitudes and creates relevant patterns which are constantly reproduced. The representations of lifestyles, social groups and point of view are adjusted to fit certain stereotypes. It remains difficult to resist this process because constructed images often represent themselves as "norms” that are rarely questioned. This process creates not only femininity, but also masculinity. However, it remains difficult for women to produce meanings and visions of the world with the enduring dominance of the "male gaze".

Irina Samorukova in the book Gender for Dummies writes that "it is important from which position female images are created. Here, we can talk about so-called "male" (mainstream, domineering) and so called "female" (alternative) perspectives on the question of whether women should be made objects or subjects of representation. That is why attempts are being made to create an alternative history of art and cultural history, based on different principles of constructing women's and men's images”2. The strategy of rewriting history has emancipatory potential. Such histories problematise the processes and events that have prevented women’s voices being heard and, following this path, to focus on where we are now. This question remains


!

“ATTEMPTS ARE BEING

MADE TO CREATE AN

ALTERNATIVE

HISTORY OF ART AND

CULTURAL HISTORY”

!

Exhibition «Art and emancipation: O. Manuilova and her Contemporaries», Memorial house-museum named after O. Manuilova, Bishkek, Kyrgyzstan. May, 2015. Credit: Author!

!

quite relevant for us both today, whilst developing the exhibition and educational program and whilst writing this piece. We gradually developed an approach to gender history that we call appropriation.

Appropriation is the rethinking of artistic works of the past, their politicization and creation of new interpretations. It has a very concrete and practical meaning, namely:

• Revision of processes and ideas of the period in which the work was created;

• Tracking engagement or non-engagement of authors with the themes they represent;

• Tracking the transformation of the representation of the theme through time and thinking how their work can inform current debates.

In our case, we use appropriation to revisit history through feminism and problematise patriarchy as the dominant discourse. We examined the actualization of women’s representation through the social and political activities of the artists during the emancipation period in Soviet Kyrgyzstan. "Feminist art is a political position, a set of ideas about the future of the world, which includes information about the history of women and our struggles and recognition of women as a class. It is also developing new forms and a new sense of audience," Lucy R. Lippard writes in her "Sweeping Exchanges The Contribution of Feminism to the Art of the 1970s”.


!

“APPROPRIATION IS THE

RETHINKING OF ARTISTIC

WORKS OF THE PAST, THEIR

POLITICIZATION AND CREATION

OF NEW INTERPRETATIONS”

!

“Who Must Sit at Home?” V. Lomasko, series of stencils from the campaign “16 Days of Activism Against Gender-Based Violence”, 2014 Credit: Author

In the exhibition we used not only artwork, but also archive documents, newspaper and photographic materials to highlight the life of Manuilova’s and Ilyina’s contemporaries from the 1920s to the 1970s.

The artistic works included in the exhibition focused on labour. Even though most of the artwork idealised emancipation, it remains of interest today. The early drawings of Olga Manuilova, sketched between 1920 and 1930, and made in the avant-garde style, reflect the ideas of new power, an emerging world order and emancipated lifestyle; she paints images of independent, uninhibited women.

During the early days of Soviet Union, Olga Manuilova was sent to a business trip to Tashkent and enthusiastically became involved in the work of broader society. "For A. Manuilov (my husband) and I it was not a question whether to accept the revolution or not. During the first months after the October Revolution, we already began to work on the Soviet government’s assignments"3. On May, 1 1920 Manuilova arrived to Tashkent and was immediately mobilized to work for the production of posters on the topics of the fight with Basmachi, intervening foreign powers during the Russian Civil War and women’s freedom. As a historian later recalled, “at the corners of Tashkent’s streets and institutions huge posters with poems in Uzbek were put on display. These posters were about the emancipation of eastern women after the victory of the Great Revolution”4. Unfortunately none of the posters survive today.

Throughout her career, Manuilova continued to work actively on the topic of a woman as a worker, a cultural actor and activist. With the curtailment of earlier radical visions for the restructuring of society by the 1930s, her artwork, like the official rhetoric, became more ‘traditional.’


Woman in paranja (full body veil), Tokmok city (KSSR), 1934. 0-51664, Central State Archive of audiovisual documents of Kyrgyz Republic Credit: Author

Killing of the activist Rakhina Zakirova, 1932, Central State Archive of audiovisual documentation of Kyrgyz Republic Credit: Author

During the establishment of Soviet power Lidia Ilyina was a small child, but by the 1930s she was an active artist. Like Manuilova, Ilyina created images of women that were close to official discourse: young women in social activities, students, women in power and workers in rural areas. As such, Ilyina’s works were not critical of the state policies towards gender.

And we do not know what their true opinion on the plight of women was. In general, their works followed the official discourse. The Soviet government considered art to be an important tool in building a new society in the 1920s and 1930s.

But it does not matter what views Manuilova and Ilyina themselves had. It is important that they were leading representatives of the professional and social activities of those days.

And their work forms the basis for discussion about the topics which are important for us - emancipation, women’s subjectivity, gender equality. “If the purpose of art is to break ideas that were perceived as traditional and “natural” about women, it should bring to the light the social construction of women and psychoanalytical construction of gender differences. Finally, the theoretical approach involves giving up of the dominant understanding of art as a personal expression and puts it in a continuum that connects social with political, giving female artists the role of producers in this new situation... "5.

Nowadays it is rare to find Kyrgyz female artists critically working with women’s images, problematising their position and raising debates through artworks. Instead, various feminist activists, NGOs and initiatives which are raising questions about the situation of women and their representation in public discourse.

One of these initiatives is the celebration of Women’s Day on 8 March in 2013. This included a photo exhibition, performance ‘Nonhuman History: Monologues of Subhuman and the presentation of the ‘I’m Not a Thing’ calendar6. The event constituted an intervention in the


!

“WE DO NOT KNOW

WHAT THEIR TRUE

OPINION ON THE

PLIGHT OF WOMEN

WAS”

!

“IT IS RARE TO FIND

KYRGYZ FEMALE

ARTISTS CRITICALLY

WORKING WITH

WOMEN’S IMAGES”

!

Manuilova O. Sketches (left 1924 – 1927, right 1920). Memorial house-museum of O. Manuilova (Bishkek, Kyrgyzstan) Credit: author!

existing discourse of the 8 March, gave people an alternative experience of its celebration, and aimed to politicize, realise the emancipatory potential of the holiday (2013).

Informal magazine Weird Sisters appearance in 2014 involved activists and representatives from the cultural field. In the editions, authors raise actual, but often silenced and invisible, issues of inequality.

Bishkek Feminist Initiative SQ’s systematic work has grown and moved beyond just one team7. Today this activist organisation has renamed itself the Bishkek Feminist Initiatives (BFI) welcoming new members. The union organises closed, semi-open and public activities. In mid-November 2014, BFI led the ‘16 Days - 16 stencils’ campaign, where activists from Kyrgyzstan joined Russian feminist artists Victoria Lomasko, Nadia Plungian and the participants of the Regional Meeting of Feminist Solidarity Activists from Central Asia, Caucasus and Eastern Europe that was held during that period in Bishkek. Activists and artists created a series of stencils with the name “16 Days of Activism against Gender-Based Violence”8. Despite these successes there is a need for greater openness, of the breaking down of informational boundaries, and greater comprehension of formats and methods of communication.

Through our activities, we have opened up a feminist agenda and produced a variety of visual materials. Our work lies at the intersection of activism and artistic practices, forming a feminist statement that is not separate from different identities (citizen, activists, feminists or artist).

Our exhibition formed one of the voices creating an alternative narrative to the dominant discourse of women’s image and their position in society. Whilst official discourses use pre-Soviet history and ethnic identity, to build history and its symbols, for example through the celebration of Kalpak Day (Kyrgyz National men’s hat), we are looking to other events as a source of inspiration. We choose our past by ourselves to decide what kind of connections to build with it.


!

“OUR WORK LIES AT THE

INTERSECTION OF ACTIVISM AND

ARTISTIC PRACTICES”

!

January page from the 2013 “I’m Not a Thing” calendar Credit: Author

We see ourselves as cultural workers, citizens and in some senses as activists. It was important for us to go beyond the delineated spaces of artistic expression. That is why we conducted our lectures outside the exhibition space, in the Kyrgyz National Museum of Fine Arts named by G. Aitiev and Art College named by S. Chuikov9.

Through our work, we hope to instill a gender sensitive or feminist consciousness in Kyrgyz society. However, we do not form a homogeneous view on the topic. We understand that all women are in different social, economic and cultural conditions, which shape their unique experiences. Based on these varied experiences, it is necessary to work within the local contexts of inequality.

Feminism is the optic which helps us to think critically not only on the issues of gender, rights, equality and opportunities between sexes but also on the topics of all forms of oppression and discrimination. An individual exists in society not only as a man or a woman, as a worker or an employer. She or he exists at the intersection of the different categories such as gender, age, class, sexuality, disability and citizenship status. That is why it is impossible to fight for women's rights without raising issues of LGBT rights, rights of people with disabilities, internal and external migrants and the rights and opportunities for wide variety of social groups. In the present structure of society, each of us at some moment find herself/himself in the minority. And it is not our desire to fit into the existing hierarchy or to switch places with those who are in the positions of a power. Our work is about questioning existing structure and trying to design other forms of relationships at various levels.

The production of meanings within the artistic activity plays an important role in struggles for social equality and ability to express a position as a cultural worker and citizen. We perceive art as a space of emancipation, education and imagination which raises sharp questions about the social structure in our minds and in the minds of people with whom we interact, We are not trying to educate people, to enforce our view on them; we are inviting people into a dialogue on gender.


!

Series of stencil in the frame of campaign “16 Days of Activism Against Gender-Based Violence”, 2014. Left: “Aikanysh”, right: “Uzbek noodles” Credit: Author

!

Diana Ukhina is a female cultural worker and co-founder of PF ArtFAQt and artistic, web-magazine Photodrift (2015). She has participated in a range of regional and international contemporary art programs and lives in Bishkek, Kyrgyzstan. This text is based on the collective research by Diana Ukhina, Oksana Kapishnikova and Alima Tokmergenova.!


!

References 1 Review of Kyrgyz Republic in the framework of the implementation of the Beijing Declaration and Platform for Action "Beijing +20", 2014 2 Samorukova I. Representations: images of men and women in the culture // Gender for Dummies, Edited by N.I.Alekseeva - M., 2006. 3 Manuylova O. Pages of memories. Frunze, 1980 4 Shamshiev T. People of art, interviews with M. Manuilova. Soviet Culture. ! 8 (4808). January 24, 1975 5 Barry J., Flitterman S. Textual Strategies: The Politics of Art Making // Gender theory and art. Anthology: 1970-2000 // Translation from English; Edition by Bredihina L, Dipuel K. – Moscow, 2005. 6 Organizers: A.Niyazova,G. Ibraeva A. Moldosheva, A. Bekturova, M. Suyarkulova with the support of the Asian Development Bank 7 Feminist activist commune organization working since 2011. 8 Meeting !1: zine of the regional activists meeting of feminist solidarity from Central Asia, Caucasus and Eastern Europe, 2014 9 There were two public lectures: "Art and the emancipation of women in the Soviet Kirgizia" by O. Kapishnikova (about local process of emancipation and participation of artists in it). "Art / Feminism / Social Order" by D. Ukhina (history of second-wave feminism and feminist art practices and theories at that time).

Further bibliography: Barry J., Flitterman S. Textual Strategies: The Politics of Art Making // Gender theory and art. Anthology:

1970-2000 // Translation from English; Edit by Bredikhina L., Dipuel K. – Moscow, 2005 Lippard. L. Sweeping Exchanges: The Contribution of Feminism to the art of the 1970s // Gender theory and

art. Antology: 1970-2000 // Translation from English; Edit by Bredikhina L., Dipuel K. – Moscow, 2005

Manuylova O. Pages of memories. Frunze, 1980 Nochlin L. Why there have been no great women artists? Gender theory and art. Anthology: 1970-2000 //

Translation from English; Edit by Bredikhina L., Dipuel K. – Moscow, 2005 Nukhrat A. Eighth of March in the East. Moscow - Leningrad, 1928 Popkova L., Jydkova E. Feminism or history of women's struggle for rights: "Chicken is not a bird…" //

Gender for Dummies, Edited by Alekseeva N. – Moscow, 2006 Samorukova I. Representations: images of men and women in the culture // Gender for Dummies, Edited by

Alekseeva N. – Moscow, 2006 Women emancipation of Kirgizia by Great October Socialist Revolution (I9I7-I937's). Collection of

documents and materials / Edited by G. S. Tatybekova. Frunze, Kyrgyzstan, 1973 Hanisch C. Personal is political, 1969, link Shamshiev T. People of art, interviews with M. Manuilova. Soviet Culture. " 8 (4808). January 24, 1975 Declaration of the Association of Artists of the Revolution (AHR). Art to the masses. "1-2. 1929, link Review of Kyrgyz Republic in the framework of the implementation of the Beijing Declaration and Platform

for Action "Beijing +20", 2014, link

Examination of religious literature in Kazakhstan needs to be changed. Recent news about hundreds of Kazakhstanis, including children, recruited by Daesh, confirm the need to improve Kazakhstan’s state policy with regards to the regulation of religion. This includes the state’s examination and censorship of religious literature. The current model of religious censorship in Kazakhstan has not been effective in preventing jihadist recruitment. Therefore, the way the state examines and censors religious literature is in need for urgent reform.

The government’s program on religious literature examination is important to filter out extremist material. Both religious studies experts and representatives of the religious communities in Kazakhstan support this policy.1 However, to be effective, the current examination model needs to be reformed.

Firstly, the examination program should cease to be all-encompassing, meaning that not all religious literature needs to be verified before publication. Often, books that fall under examination are those that were published and distributed long before the existence of Daesh and other major extremist groups themselves. It appears to be more efficient to examine only the most recent literature or, ideally, only those materials that were mandated for examination by the court.

Secondly, the process of selecting experts should be more transparent. If the objectivity of experts is questioned, then the nature of the examination process loses its legitimacy. To correct this fallacy, a mandatory collegial expert decision-making could be introduced – the current regulatory framework has provisions for this.2 The Board of Experts should at least contain specialists in the field of religious studies and in the field of law.

RELIGIOUS LITERATURE EXAMINATION AND

CENSORSHIP IN KAZAKHSTAN: A NEED FOR REFORM

BY DANIYAR KUSSAINOV !

With increasing numbers of Kazakhs joining Daesh, the government is increasingly concerned over the regulation of religion. In the

following article, public policy analyst Daniyar Kussainov offers his views on how the government should reform its censorship of religious literature. Tighter regulation of inspectors, greater transparency and a

more nuanced approach will help maintain security, while limiting encroachments on liberty, according to the author.!

“THE CURRENT MODEL OF RELIGIOUS CENSORSHIP IN KAZAKHSTAN HAS NOT

BEEN EFFECTIVE IN PREVENTING JIHADIST RECRUITMENT”

!

Perspectives on Central Asia 9, January 2016 1 1

Thirdly, it is necessary to clearly regulate the process. Currently, the examination of religious literature is supposed to be conducted within a period not exceeding 30 calendar days after document is submitted for publication or/and distribution.3 However, it is possible to extend the examination procedure and the number of times it can be done is not specified. Consequently, this leaves room for the Committee on Religious Affairs (CRA) to interpret the provisions quite arbitrarily.

Finally, there is a need to develop a clear mechanism for appealing against expert decisions. At the moment there is only one way – to write a letter to the chairman of the CRA. This limits opportunities for religious communities to defend their rights.

Examination of religious literature is also very costly, depleting funds that could be used for more widely beneficial purposes. Since the examination of religious literature program was first introduced in 2007, significant government funds were spent on it. The CRA’s annual budget exceeds 600 million tenge (U$4 million as of 2013)4. For example, one expert received approximately 1 million tenge5 (more than U$6,700) in 2011 for his part-time work examining printed works, whereas the average salary for full-time employment in Kazakhstan was about $7200 per annum.


!

“EXAMINATION OF

RELIGIOUS

LITERATURE IS

ALSO VERY COSTLY”

!

“Newly-built mosque in Karaganda’s “Ethnopark” Credit: Author!

!

The effectiveness of the examination is also under question. Overall, 4,344 examinations had been conducted (September 2013, latest available data), yet only 148 books (3.4%) have received negative appraisals.6 According to a legal expert, religious examination employs "a presumption of guilt" approach: any religious material is treated as extremist by default.7 However, this would imply that the literature being examined does not actually require examination by the CRA. Why examine something that is already considered extremist?

The strong political connotation that marks the decision-making process during examinations further undermines the credibility of such censorship activities. As highlighted by a former CRA employee: “Any religious association can find a way out: make a single call and all your problems will vanish”.8 The interviewee shared a curious case regarding the registration of Mormons in Kazakhstan in 2012. At that time Mitt Romney was running for presidency in the United States and his religious affiliation had influenced the CRA’s decisions on Mormon literature. Mormons got a sort of "immunity from prosecution" from the Kazakh public authorities, who decided not to damage relations with a potential US president.


!

“RELIGIOUS

EXAMINATION

EMPLOYS ‘A

PRESUMPTION OF

GUILT’ APPROACH:

ANY RELIGIOUS

MATERIAL IS TREATED

AS EXTREMIST BY

DEFAULT”

!

“Bookstore and shop of religious accessories Credit: Author!

While the state bans undesirable literature, the Chairman of the National Security Committee, Nurtai Abykayev reports that 300 citizens of Kazakhstan have joined the rows of the Daesh. Almost half of them are women. Often whole families are recruited and shipped to Turkey and from there to Syria. Political analyst Yerlan Karin believes that there are at least two training camps in Syria for children from Central Asia. This suggests that the government’s efforts to stop jihadism through the examination of religious literature are unsuccessful in their current nature.

On the internet, many articles describe in detail recruitment mechanisms on social networks. Media reports about recruitment of Kazakhstanis and videos of Kazakh children in Daesh training camps are being blocked pervasively. The government claims that this way it prevents propaganda of terrorism and extremism in Kazakhstan. However, this alone cannot justify the government’s policy of blocking whole social networks, especially given the small proportion of propagandist jihadist information they contain. Despite such censorship new jihadists keep being recruited.

As Felix Corley from "Forum 18" said in his interview published on EurasiaNet.org, “one of the problems is that when people want to hide their activities from the state because the state interferes with their lives too actively, it becomes very difficult for the state to find out what they actually conceive.”9 State authorities are being naive in believing that methods such as religious censorship are effective in controlling religious extremism. Continuing recruitment of jihadists in Kazakhstan underlines the low efficiency of these activities.

State regulation of religious literature is a very sensitive issue because it affects a wide range of matters starting from individual rights and freedoms to the country’s national security. Thus, the institution of

“PREVENTING PROPAGANDA OF TERRORISM AND EXTREMISM CANNOT JUSTIFY

THE GOVERNMENT’S POLICY OF BLOCKING WHOLE SOCIAL NETWORKS AND

DESPITE SUCH CENSORSHIP NEW JIHADISTS KEEP BEING RECRUITED” !


“Kokzhiek” Publishing house’s poster Credit: Author!

!

religious examination, whose mission is to prevent the spread of destructive ideas on religious grounds, is in crucial need of improvement. While extremists conduct a "hidden war," the state’s current policy of “open war” on terrorism seems doomed from the beginning.


!

Daniyar Kussainov is a participant in the Soros-Kazakhstan Foundation' Public Policy Initiative and works as a team assistant for the World Bank Country Office in Astana. Daniyar holds an MA degree in Politics and Security (Central Asia) from the OSCE Academy in Bishkek. His professional and academic interests include international

relations, international organizations, politics, human rights and sustainable development. Prior to joining the World Bank Country Office in Astana he worked for

local and international NGOs, OSCE/ODIHR.!

References 1 Anonymous, A. (2014, September-December). State examination of religious literature [Personal interviews with representatives of protestant churches, religious studies experts from Karaganda and Astana]. 2 Government of Kazakhstan, 30 December 2014, !" #$%&'()&*++ ,'-%+. /'0%&)&*+1 '&.+2+0%&)3&4506 754/&'$+89. Link 3 Ibid. 4 Government of Kazakhstan, 29 November 2013, ! '&4/#".+5-*450: ";)(&$& *- 2013-2015 20)9. Link 5 Anonymous, A. (2014, September). State examination of religious literature [Personal interview with a religious studies expert from Karaganda]. 6 CRA, Ministry of Culture and Sport of the Republic of Kazakhstan, 13 September 2013, <&.+2+0%&)3&45-1 754/&'$+8-: 8-)-3+ + /'0".&:9. Link 7 Anonymous, A. (2014, October). State examination of religious literature [Personal interview with a legal expert from Almaty]. 8 Anonymous, A. (2014, November). State examination of religious literature [Personal interview with a former CRA employee from Astana]. 9 Joanna Lillis, 13 November 2012, =-8->4$-*: ?-50* 0 '&.+2++ 02'-*+3+%-&$ 4%0"0)# %&'0+4/0%&)-*+1 %0 +:1 "0'@"9 4 754$'&:+8:0:? Link

Terminology Hanafiyah school within Sunni Islam is one of the four Madhhabs (schools of law) in jurisprudence (Fiqh)

Salat is the practice of formal worship in Islam

Hadiths in religious use is often translated as 'tradition', meaning a report of the deeds and sayings of Muhammad

Sunnah is the way of life prescribed as normative for Muslims on the basis of the teachings and practices of the Islamic prophet Muhammad and interpretations of the Quran

Imam Khatib is a leader, often the leader of prayers in the masjid, and the Muslim community

Ummah is an Arabic word meaning "nation" or "community"

Central Asian countries need to connect in order to compete in the world economy both as individual countries and as a region as a whole. They need to connect physically through transportation links, production chains, trade networks, and people-to-people exchanges, as well as virtually through Internet space, regulative frameworks, and a similar business climate. As Central Asian countries remain poorly connected, the costs of exclusion from global trade are high. Some of the biggest losses stem from missed opportunities because of low participation in integrated production chains between North and South, South and South and particularly, along the route between China and Europe.

For most Central Asian countries, a booming trade between China and Europe means significant transit opportunities. Competition is underway, as countries aspire to become what they call the “Central Asian hub”. Luckily, the interaction between China and Europe is multidimensional, so most of these countries are involved in some sort of transit opportunities which furthers regional integration. Turkmenistan and Uzbekistan rely on Kazakhstan and Kyrgyzstan to reach China for their energy and non-energy exports, respectively. Kyrgyzstan and Kazakhstan rely on their southern neighbors to access Iran (a new powerful factor for regional cooperation), the markets of the Middle East, and Afghanistan. Tajikistan’s trade routes to Russia and across Central Asia are largely dependent on Uzbekistan. Kazakhstan offers transit to Russia.

OPPORTUNITIES AND CHALLENGES FOR PRIVATE

SECTOR CONNECTIVITY IN CENTRAL ASIA

BY AITOLKYN KOURMANOVA !

As Central Asia finds itself at the center of at least three regional integration visions from Russia, China and US, the private sector in the region may see significant opportunities

to cooperate, enhanced by respective policies of their governments. So far, it is the public, not private sector in Central Asia that is recognizing its elevated role in the economic

connections across Eurasia and is investing significantly in industrialization and transport links to create business-friendly environments. This paper argues that the

private sector in Central Asia needs to increase its role in regional cooperation to capture the opportunities offered by the regionalization processes in Eurasia.!

“COMPETITION IS

UNDERWAY, AS

COUNTRIES ASPIRE TO

BECOME WHAT THEY

CALL THE “CENTRAL

ASIAN HUB””

!


!

The engagement of China in the regional economy can provide Central Asians with a whole new experience in hosting foreign direct investment (FDI) from transnational corporations, managing production processes, promoting entrepreneurship and becoming involved in high-end manufacturing. China should not be viewed as the only source of investment, but Central Asians should use their proximity to China to link up with global value chains (GVCs, also known as global production networks). Central Asian governments need to attract investment

from global companies that would be interested in locating parts of their value chains in these economies. The GVC strategy has spread value added production and employment opportunities to many locations worldwide and provides support to developing countries to “catch up” to high-income countries, as the share of global value-added trade accounted for by developing countries increased from 20% to over 40% between 1990 and 2013.1

For Central Asia, where labor costs are generally low and human capital is abundant, there is a potential to attract firms outside of the region (China, Russia, Middle East) to locate their production of added value components relatively close to the targeted market, making use of Central Asia’s transit and production potential. Central Asia has several competitive advantages to offer in hosting links in global production chains, including land, water and energy resources. In fact, all across Central Asia there are opportunities of intra-industry trade, and the significance of cross-country economic complementarities (or their absence), which is more relevant for inter-industry trade, in which Central Asia is largely engaged, is declining.2

To promote the creation of value chains where a corporation located in one country can take advantage of cheaper inputs (e.g. labor and land) in another country, closer economic cooperation is needed. Bilateral agreements and streamlined regulations should permit mobility of production factors and better use of the comparative productivity of the Central Asian region. Another prerequisite are improvements in transportation and logistics, as well as more efficient distribution to cut the costs and increase competitiveness through higher quality and speed of production and distribution. A reduction of telecommunication costs and the development of information technologies would enable corporations to establish a better level of control over their value chains.3 Moreover, knowledge-based services often help to differentiate products for specific markets and consumers, adding value in the process.4

In Central Asia, there is a potential to set up value chains in agricultural commodity and energy commodity chains (include the transport of fuels (oil, coal, natural gas, etc.) from where


!

“CENTRAL ASIA HAS SEVERAL COMPETITIVE ADVANTAGES TO OFFER IN

HOSTING LINKS IN GLOBAL PRODUCTION CHAINS, INCLUDING LAND,

WATER AND ENERGY RESOURCES”

!

“HE GVC STRATEGY HAS

SPREAD VALUE ADDED

PRODUCTION AND

EMPLOYMENT

OPPORTUNITIES TO MANY

LOCATIONS WORLDWIDE”

!

!

they are extracted to where they are transformed and finally consumed). Chemical commodity chains (polyethylene and polypropylene production, fertilizers) have linkages with the energy and agricultural sectors, since it is at the same time a customer and a supplier, construction industry and manufacturing industry. Tourism services could be a candidate for economic expansion in Central Asia–particularly in light of the sector’s labor-intensive character, the tourism potential of ancient Silk Road cities, and the visa-free regimes that Kazakhstan and the Kyrgyz Republic have introduced to most of developed countries’ citizens to develop their tourism sectors.

While the GVC phenomenon has been linked to the concept of international outsourcing (“offshore outsourcing”),5 Central Asian firms can also set up their own regional value chains, by pursuing a relatively new strategy of near-shoring or setting up production closer to home. Nearshoring is becoming an attractive strategy worldwide as it gives the capability to manufacture close to where customers are located and can increase customer responsiveness and decrease turnaround times, making the supply chain more predictable.6 Nearshoring strategies look at commonalities and dimensions of proximity: geographic, temporal, cultural, linguistic, economic, political, or historical linkages. For example, for Kazakh firms, production costs, especially labor costs, remain high and for many of them it could be beneficial to relocate segments (sometimes the entire process) of their manufacturing activities to the south.

The connections between region’s big businesses also matter and sometimes may even champion the process of regional cooperation. Big firms are in fact better fitted to play a driving role in organizing regional production, given the potential for economies of scale and capturing comparative advantages of neighboring countries.

C h a l l e n g e s

The participation in value chains amplifies the costs of tariff barriers. Even low tariff barriers across a region can inhibit value chains because they are cumulative, as underscored in the OECD report on GVCs.7 Central Asian countries have not been particularly successful in promoting regional trade. Trade in the region is concentrated in non-oil consumer goods and food products and remains largely informal. For Central Asia’s main trading partners - including Europe, China, and Russia - exports are concentrated in raw materials and energy. Hence, Central Asian countries’ external balances rely on exports of goods, which are subject

“REGIONAL TRADE IN CENTRAL ASIA IS CONCENTRATED IN NON-OIL

CONSUMER GOODS AND FOOD PRODUCTS AND REMAINS LARGELY INFORMAL” !


!

“NEARSHORING IS

BECOMING AN

ATTRACTIVE

STRATEGY

WORLDWIDE ”

!

“BIG FIRMS ARE

BETTER FITTED TO

PLAY A DRIVING ROLE

IN ORGANIZING

REGIONAL

PRODUCTION”

!

to world price fluctuations and low value to weight. Central Asia also remains dependent on import supply chains by train and truck over very long distances from Europe and Asia.8

The current structure of foreign trade, which is skewed towards larger companies-exporters, questions the capabilities of the Central Asian businesses to gain from the connectivity opportunities offered by the Eurasian integration processes.

The lack of exporting experience among smaller and medium sized companies leads to weaknesses in designing consistent connectivity strategies. One of the most obvious ways for smaller and medium sized companies to participate in exports is through supplying inputs to other larger firms. This way connections between the region’s larger and smaller companies become more stable, thereby also benefitting exports. Insufficient export orientation of enterprises, and particularly, medium-sized firms, is caused by such factors, as cumbersome customs and border clearance procedures, lack of infrastructure and lack of market knowledge.

On the other hand, the land-locked nature and distance to markets make a good argument in favor of greater orientation towards the regional market. Central Asia is a landlocked region where countries are particularly dependent on the neighbors. One way of turning negative dependence into positive connectivity is focusing on a regional market.

The landlocked nature of Central Asia also underscores the importance of developing the logistics industry in the region. Well-developed logistics operators can bring costs down and improve reliability. The quality of logistics can have a major bearing on a firm’s decisions about which country to locate in, which suppliers to buy from, and which consumer markets to enter9. By comparison, high logistics costs and low quality of service is a barrier to trade and FDI. In Central Asia, logistics costs are high due to poor scale economies and the orientation of the Central Asian countries’ exports on raw materials, as mass transportation of bulk items do not require modern logistics, in contrast to time-sensitive, multi-parts and high value-added commodities.10 In addition, intrusive border controls which exist everywhere along the regional chains and drive prices up, as well as unreliable transport services by rail or road, keep supply chains fragmented in that the principal (shipper or global logistics company) does not have a full control over what happens in transit.11

Central Asia's policymakers and institutions must also address institutional issues: for example, customs agencies have greater incentives on collecting duties, not facilitating trade; border agencies seek to increase time required for checkups due to exaggerated security concerns, while the ministries of transportation build infrastructure but are not concerned about improving the quality of existing services.

“THE LAND-LOCKED

NATURE AND DISTANCE TO

MARKETS MAKE A GOOD

ARGUMENT IN FAVOR OF

ORIENTATION TOWARDS

THE REGIONAL MARKET” !


!

S o l u t i o n s t o g r e a t e r c o n n e c t i v i t y

The governments in Central Asia have been very protectionist rather than oriented towards greater regional integration. The private sector therefore has to raise its voice in helping move up the connectivity agenda.

Smaller scale solutions developed not by governments, but the private sector may require the help of donors but also multi-national investors interested in Central Asian market. Among such solutions could be establishment of the regular business forum on a high-level, development of regional business training programs (online and offline) with a focus on logistics management, facilitation of regional clusters’ development and establishment of the regional development financing initiative.


!

References 1 Paul Vandenberg and Khan Kikkawa, Global Value Chains along the New Silk Road, ADB Institute, Policy Brief, May 2015, Link 2 Deborah Elms, Patrick Low (eds), Global Value Chains in a Changing World, WTO, 2013, Link 3 Jean-Paul Rodrigue, “Freight Transportation and Value Chains,” Link 4 Organization for Economic Cooperation and Development (OECD), “Interconnected Economies: Benefitting from Global Value Chains”, 2013, Link 5 Steven Globerman, Global Value Chains: Economic And Policy Issues, Western Washington University and Simon Fraser University, 2011, Link 6 “Will the U.S. See a Major Manufacturing Revival?”, Wall Street Journal, July 3, 2014, Link 7 OECD, World Trade Organization “Aid for Trade at a Glance 2013. Connecting to Value Chains”, 2013, Link 8 Cordula Rastogi and Jean-François Arvis, “The Eurasian Connection. Supply-Chain Efficiency along the Modern Silk Route through Central Asia,” World Bank, 2014, Link 9 World Bank, The Logistics Performance Index, Link 10 Cordula Rastogi and Jean-François Arvis, “The Eurasian Connection. Supply-Chain Efficiency along the Modern Silk Route through Central Asia,” World Bank, 2014, Link 11 Ibid

Aitolkyn Kourmanova is the Editor-in-Chief of the Central Asia Analytical Network (http://caa-network.org/) and Program Coordinator of the Central Asia Program at

George Washington University’s Elliott School of International Affairs. She specializes in economic policies in Central Asia and has considerable analytical and media experience. She was a Hubert Humphrey Fellow in 2011-2012, Central Asia

Fellow at George Washington University’s Elliott School of International Affairs from April to August 2013, and Kazakhstan Visiting Fellow at the Center for Strategic and

International Studies (CSIS) from January to November 2015.!

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Perspectives on central asia nr9