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Central Asia and the global economic crisis

16/06/2009 By Richard Pomfret

V. Oseledko/AFP

In 2007 the EU published a Strategy for a New Partnership with Central Asia. This Policy Brief argues that the current global economic crisis does not alter the priorities of the EU Strategy, but it does require the EU to stick to existing obligations and also provides an opportunity for fresh initiatives to better achieve the Strategy’s fundamental goals. 

A striking feature of the five Central Asian countries’ economic strategies is that they followed divergent paths after becoming independent in 1991.  Despite strong similarities in culture, history and economic structure, their transitions from Soviet central planning ranged from the most rapidly liberalizing (the Kyrgyz Republic) to the most non-reforming (Turkmenistan) of all former Soviet republics. The Central Asian countries are open economies in the sense that international trade is important, but they have all been suspicious of integration into the global economy and have embraced globalization to varying degrees.  

In general terms, the more globally integrated an economy is the better its performance was over the last two decades, but the more exposed it was to crises. Recession is a threat to Central Asia, as economic hardship may lead to increased repression, challenging the EU’s commitment to human rights and democratization in the region.   However, global recession also presents opportunities.  So far the EU has played a minor role in Central Asia. 

Despite grand overarching statements in the 2007 Strategy and high level meetings in 2008, questions remain about the EU’s ability to deliver on its promises to foster a broad range of engagements with Central Asia. The EU is committed to pursuing the Central Asia Strategy through the Swedish Presidency until the end of 2009, and in 2010 Kazakhstan will chair the OSCE.  The EU should keep nimble in these shifting circumstances.

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Projects

The EU's Central Asia Strategy

Keywords

Central Asia and Russia Civil society Democratisation EU Kazakhstan Kyrgyzstan OSCE Tajikistan Turkmenistan Uzbekistan

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Bio author: Richard Pomfret

Dr. Richard Pomfret has been Professor of Economics at the University of Adelaide since 1992. He was previously Professor of Economics at the Johns Hopkins University School of Advanced International Studies in Washington DC, Bologna (Italy) and Nanjing (China). Professor Pomfret has acted as adviser on Central Asian topics to various international organizations (ADB, UNDP, ESCAP, World Bank). He has written seventeen books, including The Economies of Central Asia (1995), and The Central Asian Economies since Independence (2006).