Economic Dimensions of Security in Central Asia by Sergej Mahnovski

By Sergej Mahnovski

This file assesses the commercial dimensions of safety in significant Asia, and considers their implications for the function of the USA. financial improvement should be an important to the way forward for primary Asia and broader U.S. pursuits within the zone. even though, it truly is uncertain even if the states within the area have the institutional means to enforce family reform. because the usa clarifies its long term army relationships and commitments within the quarter, it may contemplate the region's monetary improvement itself as a long term defense challenge.

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Also, to help finance its budget and also bring its energy and utility industries to world market levels as a precursor to privatization, the Uzbek government has steadily increased utility tariffs, which are currently below cost-recovery levels. See Economist Intelligence Unit (2003b, p. 23). Even though many households own their apartments, the cost of services, such as water, electricity, and garbage collection, which used to be heavily subsidized by the government, can now be more expensive than a minimum state salary can afford.

6 Turkmenistan, which has recorded strong growth ___________ 3 Direct subsidies from Moscow are estimated to have been as much as 20 percent of Uzbek GDP and 13 percent of Kyrgyz GDP. 5 percent of GDP of Kyrgyzstan. See Rumer and Zhukov (2003, p. 64). 4 Some have argued that in part this could be a statistical artifact resulting from overvaluation of the official economy (Taube and Zettelmeyer, 1998). 85 million in 2001), largely because of the emigration of Russians. But, population numbers have gradually been recovering as a result of rising birth rates and decreased emigration in recent years.

Economic Fault Lines 19 a range of competing ethnic, geographic, and religious loyalties claiming residents across borders. These clan structures can become critical power bases for presidents and legislators. At the local level, corruption is often a result of poor incentives. 45 Low wages and arrears have forced many citizens, including teachers, doctors, police officers, and others, to give preferential treatment in exchange for private payments. At the highest levels, rent seeking or corruption is often disguised as economic policy, where export revenues from hard-currency export commodities are used to subsidize other sectors of the economy through the discretionary use of exchange rates, offbudget accounts, and other mechanisms that allow for nontransparent financial transactions.

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