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Resources in Central Asia: Chances for Cooperation

by Dr. Peter Hefele

Experts from Europe, Central, South and East Asia discuss integrative solutions

Central Asia is facing multifaceted challenges in creating a sustainable supply of energy, water and other resources, solving trans-border conflicts and establishing a mutually beneficial cooperation with the surrounding regional players – Russia, China, India and the European Union. These issues were discussed in an international workshop organized by KAS RECAP and the European Centre for Energy and Resource Security on 8/9 July 2017 in Kyrgyzstan.

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It is not least to China´s One Belt - one road initiative that Central Asia gained anew attention as a centre piece in the redrawing of the global geopolitical landscape. The former Soviet Republics are not only "squeezed" between Russia and China. For the European Union, this region is of strategic importance for its energy and resource diversification policy. The countries have unresolved conflicts among themselves, too. Many of them are related to natural resources, in particular, water.

On the other hand, there is great potential in deepened transborder cooperation.

On invitation of KAS RECAP and the European Centre for Energy and Resource Security EUCERS (London) experts from Kyrgyzstan, Uzbekistan and Kazakhstan joint a weekend workshop at Issyk-Kul lake in Eastern Kyrgyzstan.

During their introductions, Mirlan Skakov, State Agency of Environmental protection and Forestry of Kyrgyzstan, and Vladimir Korotenko, CEO of the leading Kyrgyz NGO BIOM, outlined the challenges for the region on the way towards a more sustainable development: adaption to climate change, energy poverty, social inequality and trans-border water management. In recent years one could rather observe disintegration processes due to resource nationalism and short-sighted resource autarchy.

The policy of the European Union towards this region was critically reviewed by Frank Umbach, Research Director at EUCERS. Despite being the largest donor of development aid to the region, the EU often remains a “donor without influence” – in stark contrast to Russia and China, which gained massive influence in the area and consider it as a centre piece in their resource strategies.

Speakers from the region discussed the ambiguity of natural resources for cooperation and conflict; and the impact of climate change on water and soil. Further, Central Asian countries have to develop and implement their own development strategies to not being just “pawns” on the chess board of its big neighbours.

As all of the former Soviet Republics are almost exclusively dependent on the export of fossil energy and other natural resources, economic diversification strategies have to be developed and implemented – as fundamental shift in global energy markets, ie. the increase of shale gas production in the US and China and the rise of renewables might shutter their basis of revenues.

On day two perspectives for the change of economic monostructure, in particular, fostering innovation and industrial upgrading, were discussed. Pushing renewable energies can become a motor of innovation as well as the improvement of the legal and regulatory framework and new economic incentives. The experiences of the European Union, presented by Joachim Lang, Director General of the Federation of German Industries, provide ample lessons to learn. Localised strategies have to be implemented.

In the final session, two working groups tried to identify first steps for a better intraregional cooperation. There is less need for creating new platforms, but rather strengthening existing intraregional cooperation mechanism. Civil society organisation can play a major role. The European Union and institutions like the Konrad-Adenauer-Stiftung can facilitate this process.

The meeting provided a unique opportunity to bring different stakeholders together. All participants agreed to continue to developed concrete steps in transborder cooperation.

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