Home Articles Pakistan should try to learn from central Asia States led by Turkey

Pakistan should try to learn from central Asia States led by Turkey

45
0
Muhammad Arif : Chairman Centre of Advisory Services for Islamic Banking and Finance (CAIF), Former Head of FSCD SBP, Former Head of Research ArifHabib Investments and Member IFSB Task Force for development of Islamic Money Market, Former Member of Access to Justice Fund Supreme Court of Pakistan

Countries are regrouping themselves to fetch business activities. In 1990 UK was formally ruling the whole world. After 2nd world war world divided in to two big powers. But now china has entered in to the horizon and most probably in 1930 China Russia alliance would rule the world

But Pakistan in Stan dings where it was 74 years bock. Everybody military and political parties are working for themselves without caring for the country

On one side it has India. On another side it has Afghanistan and Iran. China in trying to prosper Pakistan but their CPECH is still under way with not getting enough support from the Government. So Pakistan is in bracket with no neighbors having good relation. Even on Kashmir Pakistan is not showing enough help and it looks that one day Kashmiri partiers would get their independent country.

Central Asia is a region in Asia which stretches from the Caspian Sea in the west to China and Mongolia in the east, and from Afghanistan and Iran in the south to Russia in the north, including the former Sovietrepublics of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. It is also colloquially referred to as “the stans” as the countries all have names ending with the Persian suffix “-stan”.

Central Asia was historically closely tied to the Silk Road trade routes, acting as a crossroads for the movement of people, goods, and ideas between Europe and Asia.

In the Pre-Islamic and early Islamic eras (circa 1000 and earlier) Central Asia was inhabited predominantly by Iranians populated by Eastern Iranian-speaking Bactrians, Sogdians, Chorasmians and the semi-nomadic Scythians and Dahae. After expansion by Turkic peoples, Central Asia also became the homeland for the Kazakhs, Uzbeks, Tatars, Turkmen, Kyrgyz, and Uyghurs; Turkic languages largely replaced the Iranian languages spoken in the area.

From the mid-19th century until almost the end of the 20th century, Central Asia was colonised by the Russians, and incorporated into the Russian Empire, and later the Soviet Union, which led to Russians and other Slavs emigrating into the area. Modern-day Central Asia is home to a large population of European settlers, who mostly live in Kazakhstan; 7 million Russians, 500,000 Ukrainians and about 170,000 GermansStalinist-era forced deportation policies also mean that over 300,000 Koreans live there.

Central Asia (2019) has a population of about 72 million, consisting of five republics: Kazakhstan (pop. 18 million), Kyrgyzstan (6 million), Tajikistan (9 million), Turkmenistan (6 million), and Uzbekistan (35 million).

Since gaining independence in the early 1990s, the Central Asian republics have gradually been moving from a state-controlled economy to a market economy. The ultimate aim is to emulate the Asian Tigers by becoming the local equivalent, Central Asian snow leopards. However, reform has been deliberately gradual and selective, as governments strive to limit the social cost and ameliorate living standards. All five countries are implementing structural reforms to improve competitiveness. Kazakhstan is the only CIS country to be included in the 2020 and 20 IWB World Competitiveness rankings. In particular, they have been modernizing the industrial sector and fostering the development of service industries through business-friendly fiscal policies and other measures, to reduce the share of agriculture in GDP. Between 2005 and 2013, the share of agriculture dropped in all but Tajikistan, where it increased while industry decreased. The fastest growth in industry was observed in Turkmenistan, whereas the services sector progressed most in the other four countries.[45]

Public policies pursued by Central Asian governments focus on buffering the political and economic spheres from external shocks. This includes maintaining a trade balance, minimizing public debt and accumulating national reserves. They cannot totally insulate themselves from negative exterior forces, however, such as the persistently weak recovery of global industrial production and international trade since 2008. Notwithstanding this, they have emerged relatively unscathed from the global financial crisis of 2008–2009. Growth faltered only briefly in Kazakhstan, Tajikistan and Turkmenistan and not at all in Uzbekistan, where the economy grew by more than 7% per year on average between 2008 and 2013. Turkmenistan achieved unusually high 14.7% growth in 2011. Kyrgyzstan’s performance has been more erratic but this phenomenon was visible well before 2008

The republics which have fared best benefitted from the commodities boom during the first decade of the 2000s. Kazakhstan and Turkmenistan have abundant oil and natural gas reserves and Uzbekistan’s own reserves make it more or less self-sufficient. Kyrgyzstan, Tajikistan and Uzbekistan all have gold reserves and Kazakhstan has the world’s largest uranium reserves. Fluctuating global demand for cotton, aluminum and other metals (except gold) in recent years has hit Tajikistan hardest, since aluminum and raw cotton are its chief exports − the Tajik Aluminum Company is the country’s primary industrial asset. In January 2014, the Minister of Agriculture announced the government’s intention to reduce the acreage of land cultivated by cotton to make way for other crops. Uzbekistan and Turkmenistan are major cotton exporters themselves, ranking fifth and ninth respectively worldwide for volume in 2014.

Although both exports and imports have grown significantly over the past decade, Central Asian republics countries remain vulnerable to economic shocks, owing to their reliance on exports of raw materials, a restricted circle of trading partners and a negligible manufacturing capacity. Kyrgyzstan has the added disadvantage of being considered resource poor, although it does have ample water. Most of its electricity is generated by hydropower.

The Kyrgyz economy was shaken by a series of shocks between 2010 and 2012. In April 2010, President KurmanbekBakiyev was deposed by a popular uprising, with former minister of foreign affairs RozaOtunbayeva assuring the interim presidency until the election of AlmazbekAtambayev in November 2011. Food prices rose two years in a row and, in 2012, production at the major Kumtor gold mine fell by 60% after the site was perturbed by geological movements. According to the World Bank, 33.7% of the population was living in absolute povertyin 2010 and 36.8% a year later.

Despite high rates of economic growth in recent years, GDP per capita in Central Asia was higher than the average for developing countries only in Kazakhstan in 2013 (PPP$23,206) and Turkmenistan (PPP$14 201). It dropped to PPP$5,167 for Uzbekistan, home to 45% of the region’s population, and was even lower for Kyrgyzstan and Tajikistan.

Kazakhstan leads the Central Asian region in terms of foreign direct investments. The Kazakh economy accounts for more than 70% of all the investment attracted in Central Asia.

In terms of the economic influence of big powers, China is viewed as one of the key economic players in Central Asia; especially after Beijing launched its grand development strategy known as the Belt and Road Initiative (BRI) in 2013.

The Central Asian countries attracted $378.2 billion of foreign direct investment (FDI) between 2007 and 2019. Kazakhstan accounted for 77.7% of the total FDI directed to the region. Kazakhstan is also the largest country in Central Asia accounting for more than 60 percent of the region’s gross domestic product (GDP).

These are the models that Pakistan should try to adopt and after fall of Kabul it can become member of this group.

LEAVE A REPLY

Please enter your comment!
Please enter your name here