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Poverty and Security of Greater Central Asia

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Now and Then: 20 Years After the Soviet Collapse http://www.eurasianet.org/ussr

http://www.miningworld.kz/ru

http://en.wikipedia.org/wiki/Soviet_Union

SOVIET CENTRAL ASIA

Http://www.turkishweekly.net/article/319/the-greater-central-asia-partnership-initiative-and-its-impacts-on-eurasian-security.html

Poverty and Security of Greater Central Asia

When the USSR was about to collapse, Central Asian republics were the poorest Soviet republics and the ones with the largest percentage of the population living in poverty.[1] In the first stage of independence material living standards decreased even more because of the fact that substantial intra-USSR transfers for social services such as education and health were ceased. Their transition to market economies after independence also resulted in severe economic hardships for most of the population.

The economies of Central Asia managed to display a successful performance in recent years. However, despite a return to positive economic growth rates since 1996, real output in most countries in the region still remained 10-30 per cent below that of 1989.[2]

 

More than forty percent of Central Asians live below the poverty line. This ratio is above sixty percent in Tajikistan.[3] Deep poverty under the rule of authoritarian regimes of Central Asia has given rise to widespread suffering, which in turn causes a profound sense of hopelessness. Many people find themselves forced to, in desperation, the cultivation or trafficking of drugs or, out of pure hopelessness, embrace extremist and militant causes.

 

Central Asian republics, especially Kazakhstan, Turkmenistan and Uzbekistan have very rich natural resources. During the Soviet period their main role was being producers of primary products, especially cotton, energy and minerals. In the Soviet system, ruling elite, “Nomenclature” was the only group to benefit from the revenue of these products. Since the collapse of USSR, old ruling elite has kept their exceptional position. After 15 years of independence, in Central Asian countries the same figures still hold the power and misuse of the revenue cannot be prevented. Nowadays, in Central Asian Republics, while small elite earns vast incomes from the exportation of natural resources, most of the population lives in poverty, just the same as Soviet period. The income earned with the export of certain commodities is distributed among a very small circle of the ruling elite.

 

Relatively excluding Kazakhstan, in all of these countries, the private sector is very small, the agricultural sector is in crisis, majority of young people are unemployed. In Central Asia around half of the population is under 30. Higher rates of illiteracy, unemployment, poor health, and drug use prevail among Central Asian states. These people are more likely to be victims or perpetrators of violence. Few regions have seen such sharp declines in the welfare of their youth, and the combination of declining living standards with a demographic bulge brings increased risks of political instability and conflict. It is not surprising that young people increasingly seek solutions outside mainstream society through alternative options of religion, violence, extremism or migration.[4]

 

Kazakhstan is the wealthiest and most stable country in Central Asia, thanks mostly to its oil reserves. But the political system has become increasingly authoritarian, corruption is widespread and rural areas are still very poor.

 

According to official data, Uzbekistan since the mid-1990s has been growing at around 5 per cent on average, with growth accelerating to around 7 percent in 2004 and 2005. Economic growth has not been reflected in a significant improvement in living standards. Household survey data reveal that around a quarter of the population is poor and around 46 per cent of the population lives on less than US$ 2.15 per day.[5]

 

Restriction over small enterprises implemented by Uzbek Government has caused spreading of poverty. According to Uzbek sociologist Bahadir Musayev, Uzbek government is aware of the situation. “Government is afraid of emerging a serious opposition base against to them if they let the small and medium scale business. So they are trying to hinder small business consciously.”[6] Uzbek government’s efforts to control or close the bazaars, on which the livelihoods of millions depend, have been particularly damaging. Frustrations over economic policies led to increasing unrest in 2004 and 2005. The biggest incident took place in May 2005, in the eastern city of Andijan. The potential for resurgence of unrests in Uzbekistan still remains.[7]

 

Tajikistan is the poorest and among the most fragile of the CIS countries. Over two thirds of the population continues to live on less than $2.15 a day. Despite the turn around in economic growth, 64 percent of the population remains below the poverty line.[8] Kyrgyzstan is one of the poorest countries in the world with about 40 percent of the population below the poverty line.[9] With an authoritarian ex-Communist regime in power and a tribally based social structure, Turkmenistan has also widespread internal poverty.

 

Despite the progress after the remove of Taliban regime, Afghanistan remains extremely poor, and highly dependent on foreign aid. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and other basic necessities. State and nation building process in Afghanistan is continuing. Afghanistan is the major source of drug trafficking, and instability in the region. Most of the security problems of Central Asia derive from Afghanistan’s instability.

 

Political suppression, economic stagnation and widespread corruption are the common character features of the Greater Central Asia countries. Support for radicalism has partly resulted from bad governance and a lack of democratic reforms and justice that push people to extremism. Their governments are closed systems dominated by elites who use the rhetoric of democracy to secure their international standing, while pursuing authoritarian policies.

 

The primary step to be taken for the permanent stability in Central Asian countries is to solve the poverty problem. No advancement seems to be achieved in the near future unless current authoritarian regimes and the Moscow-dependent economic systems are replaced. There are various considerable projects initiated by UN, EU, Asia Development Bank and Japan about this issue, and GCAP is among these projects. Nevertheless, there are many different aspects of this particular project.

 


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