Annex 5 - TRACECA - Political Overview Jan2010 v2

7/27/2019 Annex 5 - TRACECA - Political Overview Jan2010 v2

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EUROPEAID/126786/C/SV/MULTI

LAND TRANSPORT SAFETY AND SECURITY

for Armenia, Azerbaijan, Georgia, Kazakhstan,Kyrgyzstan, Moldova, Tajikistan, Ukraine, Uzbekistan

Interim Report n 2

Annex V - Political Overview

January 2010

The European Unions TRACECA programmefor Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova,

Tajikistan, Turkmenistan, Ukraine, Uzbekistan


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TTTAAABBBLLLEEE OOOFFF CCCOOONNNTTTEEENNNTTTSSS

1. Azerbajijan ............................................................................................................. 51.1 Country Overview ........................................................................................... 51.2 Geography ...................................................................................................... 51.3 Form of State .................................................................................................. 51.4 Major poli tical part ies .................................................................................... 61.5 Legislative Branch ......................................................................................... 71.6 Executive Branch ........................................................................................... 71.7 Judicial Branch ............................................................................................... 81.8 Economy ......................................................................................................... 91.9

Webpages ....................................................................................................... 9

2. Armenia ................................................................................................................ 11

2.1 Country Overview ......................................................................................... 112.2 Geography .................................................................................................... 122.3 Form of state ................................................................................................. 122.4 THE PRESIDENT ........................................................................................... 122.5 THE EXECUTIVE BRANCH .......................................................................... 122.6 THE LEGISLATIVE BRANCH ....................................................................... 122.7

THE JUDICIAL BRANCH .............................................................................. 13

2.8 Economy ....................................................................................................... 132.9 Websites ........................................................................................................ 14

3. Georgia ................................................................................................................. 163.1 Country Overview ......................................................................................... 163.2 Geography .................................................................................................... 173.3 Form of State ................................................................................................ 173.4 The allocation of power - Legislative Branch ............................................ 173.5

Executive Branch ......................................................................................... 18

3.6 Judiciary Branch .......................................................................................... 183.7 Milestones in Georgia\'s Transformation to a Market Economy .............. 193.8 Webpages ..................................................................................................... 19

4. Socio-poli tical s ituation in the Republic of Moldova ....................................... 214.1 Country background .................................................................................... 214.2 RESPONDING TO THE CURRENT CRISIS ................................................. 23

4.2.1 Trends in poverty .................................................................................... 24


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4.3 The social sector in Moldova ...................................................................... 244.3.1 Social Assistance Reform in Moldova ..................................................... 24

4.4 Socio-Pol it ical Context ................................................................................ 275. Country background ........................................................................................... 31

5.1 Economic Situation ...................................................................................... 315.2 Socio-Pol it ical Context ................................................................................ 32

6. BRIEF REPORT OF POLITICAL SITUATION IN KAZAKHSTAN ....................... 366.1 Socio-poli tical context ................................................................................. 366.2 Economic situation ...................................................................................... 376.3 Used references: .......................................................................................... 38

7. BRIEF REPORT OF POLITICAL SITUATION IN KYRGYZSTAN ....................... 407.1 Socio-poli tical context ................................................................................. 407.2 Economic situation ...................................................................................... 417.3 Main poli tical issues .................................................................................... 417.4 Used references: .......................................................................................... 42

8. TAJIKISTAN ......................................................................................................... 448.1 Socio-poli tical context ................................................................................. 448.2 Economic situation ...................................................................................... 458.3 Main transport issues .................................................................................. 458.4 Used references: .......................................................................................... 46

9. TURKMENISTAN .................................................................................................. 489.1 Socio-poli tical context ................................................................................. 489.2 Economic situation ...................................................................................... 49

9.2.1 Foreign trade ........................................................................................... 499.3 Main poli tical issues .................................................................................... 499.4 The structure of Ministry: ............................................................................ 509.5 Used links: .................................................................................................... 50

10. UZBEKISTAN .................................................................................................... 5210.1 Socio-poli tical context ................................................................................. 5210.2 Economic situation ...................................................................................... 5310.3 Used references ........................................................................................... 54

NNN...BBB... wherever it is read ECRegulationsshould be Read EU regulations


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Caucasus - Azerbajan


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1. AZERBAJIJAN

1.1 Country Overview

Area: 86,600 sq km

Country name: The Republic of Azerbaijan.

Capital City: Baku (population: 2.0 million)

State Language: Azerbaijani.

State Religion: Religion is separated from the State and all religions are equal before

the law.

Population: 8.5 million (2006)

Main export articles: oil and oil products

Average annual per capita income: 2655.9 dollars (2007)

GDP per capi ta : 3473.9 dollars (2007)

Monetary Unit: Manat, (1 US $ = 4900 manat as at January, 2005)

Membership of international groupings/organisations: BSEC, CCC, CE, CIS,

EAPC, EBRD, ECE, ECO, ESCAP, FAO, IBRD, ICAO, ICRM, IDA, IDB, IFAD, IFC,

IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, ISO (correspondent), ITU, NAM

(observer), OIC, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WFTU,

WHO, WIPO, WMO, WTO (observer)

1.2 Geography

The Republic of Azerbaijan lies in the borderlands of Asia and Europe. It is situated in

the south-eastern part of the Southern Caucasus and shares borders in the north with

the Russian Federation, in the south with the Islamic Republic of Iran, in the west with

Turkey, Georgia and Armenia, and in the east its neighbors across the Caspian Sea

are Kazakhstan and Turkmenistan.

1.3 Form of State

The structural formation of Azerbaijan's political system was completed by way of the

acceptance of the new Constitution of Azerbaijan on November 12th, 1995. The


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constitution established Azerbaijan as a democratic, constitutional, secular and unitary

republic. The Republic of Azerbaijan is ruled by the people. The sovereign duty of the

people of the Republic of Azerbaijan is to determine its future fate and the form of

independent and free ruling. The power in Azerbaijan is divided into the legislative,

executive and judicial powers. Each of them acts in accordance with the constitution

and legislative acts. The president is the head of the state.

The legislative poweris held by Milli Majlis.

Executive power is carried out by the president, while the judicial power is held by

the courts of the Republic of Azerbaijan.

The Republic of Azerbaijan has a specific unitarity due to the status of the state

authority in the autonomous republic of Nakhchevan. The constitution defines the

autonomous Republic of Nakhchyvan as an autonomous state within the Republic of

Azerbaijan. Its legislative power is held by the Supreme Mejlis of the NakhchevanAutonomous Republic, executive power - by the Cabinet of Ministers of the

Nakhchevan Autonomous Republic, and the judicial power is vested in the courts of the

autonomous republic of Nakhchevan. The chair of the Supreme Medjis of Nakhichevan

AR is the senior official of the autonomous republic.

Self-governing municipalities also play an important role in the political system of

Azerbaijan. These are newly established, yet highly prospective institutions.

Like all contemporary political systems, the political system of Azerbaijan is

characterized by pluralism - the existence of more than one political party. The political

parties participate in political life through representatives in the legislative and local

self-governing bodies.

1.4 Major poli tical parties

New Azerbaijan Party, Azerbaijan Democratic Party, Popular Front Party (Reformists),

Musavat, Liberal Party and Azerbaijan National Independence Party.

The government of the Republic of Azerbaijan is organized at the base of principles of

separation of power. According to the traditional concept of the separation of power,the Constitution determines that the executive power is held by the President of the

Republic of Azerbaijan, the legislative power is carried out by the Parliament of the

Republic of Azerbaijan - Milli Majlis of the Republic of Azerbaijan, and the judicial

power is held by the independent courts.


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1.5 Legislative Branch

The legislative power of the Republic of Azerbaijan is held by the Milli Majlis of the

Republic of Azerbaijan.

The Milli Majlis of the Republic of Azerbaijan has 125 deputies.

The deputies of Milli Majlis of the Republic of Azerbaijan are elected on basis of a

majority system, and general, equal and direct elections by free, private and secret

ballots.

Each convocation of the Milli Majlis of the Republic of Azerbaijan is elected on the first

Sunday of November every five years.

The terms of parliamentary deputies of the Milli Majlis of the Republic of Azerbaijan arelimited by the terms of the convocation of the Milli Majlis of the Republic of Azerbaijan.

Every citizen of the Azerbaijan Republic who has reached the age of 25 can be elected

a Deputy - member of the Milli Mejlis of the Azerbaijan Republic in the order

determined by the Law. Persons who have dual citizenship, are in State service in

other countries, work in Executive or Judicial bodies, Persons engaged in a different

paid activity with he exception of scientific, creative and teaching work, ministers of

religion, Persons whose inactivity has been confirmed by court, Persons who serve

their sentence in places of confinement by the court's verdict cannot be elected

Deputies.

1.6 Execut ive Branch

The head of Azerbaijan State is the President of the Republic of Azerbaijan.

The executive power of the Republic of Azerbaijan is held by the President of the

Republic of Azerbaijan.

Every Person no younger than 35 years old, permanently residing in the territory of the

Azerbaijan Republic for more than 10 years, having election right, a University Degree,

who has never been tried for a major crime, who has no commitments towards other

States, exclusively a citizen of the Azerbaijan Republic shall have the right to be

elected President of the Azerbaijan Republic.

The President of the Republic of Azerbaijan is elected for term of 5 years by general,

equal and direct elections by free, private and secret ballots. The President of the

Azerbaijan Republic shall be elected for the term of 5 years via universal, direct and

equal elections by free, individual and secret ballot. The President of the Azerbaijan

Republic shall be elected by the majority of two thirds of votes participating in the


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voting. No Person can be elected President of the Azerbaijan Republic more than

twice.

The President of the Republic of Azerbaijan is a Supreme Commander-in-Chief of the

armed forces of the Republic of Azerbaijan.

The President forms the President Administration and appoints the head of the

President Administration for the purposes of establishment of the necessary conditions

for the implementation of the Constitutional authorities.

The executive power is administered by the President of the Republic of Azerbaijan.

The Administrative Department of the President is involved into logistical and financial

support of the President and the President Administration.

The President of the Republic of Azerbaijan forms the Cabinet of ministers for the

purpose of organization the realization of the executive authorities. A cabinet of

ministers is a superior body of the Executive power of the President, it submits to the

President and accountable before him.

There are Ministry of Agriculture, Ministry of Finance, Ministry of Labor and Social

Insurance, Ministry of Ecology and National Resources, Ministry of Youth, Sport and

Tourism, Ministry of Economic Development, Ministry of Culture, Ministry of National

Security, Ministry of Transport, Ministry of Communication and Informational

Technology, Ministry of Industry and Energy, Ministry of Education, Ministry of Taxes,

Ministry of Foreign Affairs, Ministry of Internal Affairs, Ministry of Public Health, Ministry

of Justice, Ministry of National Defense in Azerbaijan Republic.

There are State Customs Committee of Azerbaijan Republic, State Committee on

affairs of Religious organizations, National Bank of Azerbaijan Republic, State Oil

Fund, State Committee on affairs of Refugees and IDPs, State Statistics Committee,

State Committee on affairs with azerbaijanians living abroad in the Republic of

Azerbaijan.

1.7 Judicial Branch

Juridical power of the Republic of Azerbaijan realize Constitutional Court of the

Republic, Highest court of Azerbaijan Republic, Court of Appeal of the republic of

Azerbaijan, Economic Court of Azerbaijan Republic.

Under the 7th clause of the Constitution Legislative, Executive and Juridical powers

interact and are independent within the limits of their authorities.


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1.8 Economy

Owing to efforts of Heydar Aliyev in Azerbaijan there was held international forum for

restoring and developing of Great Silk route, in which representatives of 42 countries ofthe world took participation, among whom 8 were represented by presidents. As

H.Aliyev noticed at this forum on September, 1998: "Baku summit will play its historical

role in decision of co-operation, provision with peace, prosperity in every country and

all Eurasian space".

The main purposes of developing of Great Silk Route are expressed in the following:

Developing of trade-economic relations of the regional countries;

Developing of transport connections of international transportation of trucks and

passengers;

Creation of propitious conditions for transit transportation;

Acceleration of delivery terms and saving of transported truck;

Harmonization of transport policy;

Privileges on tariffs on transportation and collection of taxes;

Coordination of relationships between different fields of transport;

Tariff policy on international and internal tariffs on truck and passenger

transportation;

Development of the programs of coordinated actions for organization of multi-

modal (combined) transportation.

It must be noticed that geographic situation of Azerbaijan and its role in Great Silk route

are one of the main (central), if take into consideration the fact that there are well

developed all kinds of transports and main roads (air, sea and automobile) in the

republic.

1.9 Webpages

http://www.azerbaijan.az/portal/index_e.html?lang=en

http://www.president.az/browse.php?sec_id=1


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Caucasus - Armenia


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2. ARMENIA


Area: 29,800 sq km

Population: 3,213,011 (2001 census), of which urban: 2,066,153 (64.3%) rural:

1,146,858 (35.7%)

Capital City: Yerevan (population: 1.2 million)

Ethnic Group: Armenian 98%, Yezidi 1.2%, Russian 0.5%, Greek and other 0.3%

Languages: Eastern Armenian 97.7%, Yezidi 1%, Russian 0.9%, other 0.4% (2001

census)

Religion(s): Armenian Apostolic Church 94.7%, other Christian 4%, Yezidi 1.3%

Currency: Dram

Major political parties: Republican Party, Armenian Revolutionary Federation

(Dashnaks), Heritage Party, United Labour Party, Prosperous Armenia, Country of Law

Party, Peoples' Party, National Unity Party, Republic Party, National Democratic Party,

National Democratic Union, National Democratic Alliance Party, Democratic Party,

Armenian Pan-National Movement, Communist Party of Armenia.

Government: Presidential Republic

Membership of international groupings/organisations: BSEC, CCC, CE, CIS, EAPC,

EBRD, ECE, ECOSOC, ESCAP, FAO, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC,

IFRCS, ILO, IMF, Intelsat, Interpol, IOC, IOM, ISO, ITU, NAM (observer), OPCW,

OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WFTU, WHO, WIPO, WMO,

WToO, WTrO

Natural resources: Small deposits of gold, copper, molybdenum, zinc,

alumina.Agriculture products: Fruit (especially grapes), vegetables; livestock.Industries:Diamond-processing, metal-cutting machine tools, forging-pressing machines, electric

motors, tires, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments,

microelectronics, jewelry manufacturing, software development, food processing,

brandy.

Exports partners: Belgium 18.2%, UK 16.8%, Israel 15.7%, Russia 12.1%, Iran 7.9%,

USA 6.3%, Germany 5% (2003)

Imports partners: Belgium 11.6%, Russia 11.6%, Israel 11.3%, USA 9.5%, Iran 8.8%,


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Germany 6.7%, UAE 5.4%, Italy 4.7%, Ukraine 4.6% (2003)

2.2 Geography

Armenia is located in the southern Caucasus and is the smallest of the former Soviet

republics. It is bounded by Georgia on the north, Azerbaijan on the east, Iran on the

south, and Turkey on the west. Contemporary Armenia is a fraction of the size of

ancient Armenia. A land of rugged mountains and extinct volcanoes, its highest point is

Mount Aragats, 13,435 ft (4,095 m).

2.3 Form of state

The Republic of Armenia is a sovereign, democratic, social, rule of law state. The state

power is administered pursuant to the Constitution and the laws based on the principleof separation of the legislative, executive and judicial branches. The Constitution of the

Republic of Armenia adopted on July 5, 1995, through a popular referendum provided

legal guarantees of civil rights, the development of democratic institutions, and the

creation of a market economy to secure the future stability of the Armenian state.

2.4 THE PRESIDENT

Armenia is a republic with a presidential governing system. The president is the head

of state. According to Chapter 3, Article 49 of the Constitution of the Republic ofArmenia,

2.5 THE EXECUTIVE BRANCH

Chapter 5, Article 85 of the Constitution of the Republic of Armenia states:

"Executive power in the Republic of Armenia shall be vested in the Government of the

Republic of Armenia.

The Government shall be composed of the Prime Minister and the Ministers. The

powers of the Government shall be determined by the Constitution and by laws. The

organization and rules of operation of the Government shall be determined by a decree

of President of the Republic, upon recommendation of the Prime Minister."

2.6 THE LEGISLATIVE BRANCH

Legislative power in the Republic of Armenia belongs to the National Assembly

(Parliament), which implements its activities through sessions, permanent and


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temporary committees, as well as through its deputies.

The National Assembly is a single-chamber representative body. Its members are

elected by a combination of single member district and proportional representation.

2.7 THE JUDICIAL BRANCH

In the Republic of Armenia justice is carried out by Courts in accordance with the

Constitution and the Law. In the Republic of Armenia, the courts of general

competence are: courts of first instance, review courts and the Court of Appeals. There

are also economic, military and other courts provided by the Law. The President of the

Republic serves as a guarantor of independence of judicial bodies. He is the Head of

the Council of Justice.

On February 6, 1996, a Constitutional Court consisting of nine members (five

appointed by Parliament and four by the President) was established. The responsibilityof this court is to judge the constitutionality of the laws, Presidential decrees, and

governmental resolutions. The Court also judges the constitutionality of international

agreements and resolves disputes concerning the results of elections and referenda

2.8 Economy

To stimulate the promotion and protection of foreign investments in Armenia, a

presidential decree established the State Investment Promotion and Protection Board

(SIPPB), which is headed by the Prime Minister. SIPPB sets state investment policy. Inparticular, SIPPB advises the President and the Government on measures necessary

to create a competitive environment that supports investment inflows and provides

sufficient protection for investments.

The SIPPB established The Armenian Development Agency (ADA). This Agency will

provide the basis for investment promotion and protection institutional infrastructure,

and is the main institution that will implement Government investment and export

development policies. The Agency will act as a "one stop shop" for investors and

exporters, and will promote Armenia as an attractive investment economy. The

Government envisions that ADA will have a worldwide network of representations andagencies in markets attractive for Armenia: the Armenian Development Investment and

Trade Agency was recently established in the United Kingdom with the extensive

participation and support of the Armenian Diaspora and the international business

community.

Eight months ago a newly-defined Ministry of Industry and Trade became responsible

for, among other things, trade and investment, maintaining an export-oriented

economic climate, negotiating global access for Armenian products and services, and

attracting investment to Armenia. The Investment Policy Directorate within the MIT is


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specifically tasked with investment policy and regulatory improvement

2.9 Websites

official website of the president of the republic of armenia

http://www.mfa.am/arm/index.html

http://www.nationsonline.org/oneworld/armenia.htm


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Caucasus - Georgia


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3. GEORGIA


Form of government: Presidential Parliament Democracy

Head of State: President - elected for a term of 5 years.

Branches of government: Parliament - 150 members elected for a term of 4 years;

Government - Prime Minister, Ministers, State Ministers - approved by the Parliament;

Independent Judiciary.

Territorial-administrative division: 9 regions (Guria, Imereti, Kakheti, Kvemo Kartli,

Mtskheta-Mtianeti, Racha-Lechkhumi and Kvemo Svaneti, Samegrelo and Zemo

Svaneti, Samtskhe-Javakheti, Shida Kartli), 9 cities, and 2 autonomous republics.

Current population: 4.6 million.

Capital: Tbilisi, 1.3 million

Area: 69,700 sq. km., bordering on Turkey, Armenia, Russia, and Azerbaijan

Natural resources: Oil, coal, peat, manganese, gold, silver copper, zinc ores,

bentonite clay, mineral water

Currency: Lari

Major political parties: National Movement (currently in power), New Rights,

Labour, Industry will save Georgia, Republican's, Democratic Front, Georgia's Way

Membership of international groupings/organisations: BSEC, CCC, CoE, CE

(guest), CIS, EAPC, EBRD, ECE, FAO, IAEA, IBRD, ICAO, IDA, IFAD, IFC, IFRCS,

ILO, IMF, IMO, Inmarsat, Interpol, IOC, IOM (observer), ISO (correspondent), ITU,

OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WMO,

WToO, WTrO (applicant)

Other cities: Kutaisi, Rustavi, Batumi, Sokhumi, Gori, Poti, Zugdidi , Telavi

Ethnic groups (2002 census): Georgians - 83.8%, Azeris - 6.5%, Armenians - 5.7%,

Russians - 1.5%

State language - Georgian; Georgian and Abkhaz in the Autonomous Republic of

Abkhazia


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3.2 Geography

The country is situated in the south of the Caucasus region and occupies

69,700 sq.km. Georgia borders with Russia in the north, Azerbaijan in thesouth-east, Armenia in the south, Turkey in the south-west and the Black Sea inthe west.

Georgia is distinguished by its complex and varied relief. The north isdominated by the mountains of the Great Caucasus Range, while SouthernGeorgia is traversed by the South Georgian Plateau. From the shore of theBlack Sea in the west to the Alazani Valley in the east run the inter-mountainlowlands of Georgia. The mountain range Rikoti divides the country into twoparts differing in climate: Eastern Georgia and Western Georgia. The highestpeak is Shkara (5198m), the lowest place (-1.5m) is the environs of lake

Paliastomi in the Kolkheti Lowland. Forests constitute 38% of the country'sterritory and cover 2.7million hectares (6.6 million acres).

3.3 Form of State

Georgia has been a democratic republic since the presidential elections andconstitutional referendum of October 1995. In February 2004 the Constitutionwas amended to provide for a Presidential/Prime Ministerial structure ofexecutive governance similar in some respects to that of France.

3.4 The allocation of power - Legislative Branch

All legislative power is vested in the Parliament, which is the highest representative

body of the State. It exercises legislative power, determines the main directions of

domestic and foreign policy, carries out general control over the Government and other

functions within the framework of the Constitution. The Parliament consists of 150

members elected in a nation-wide vote on the basis of proportional representation from

party lists and 85 members elected from single-mandate, geographically defined

districts. Members of Parliament are elected for a term of four years on the basis of

free, universal, equal and direct suffrage by secret ballot.

The Parliament, for the term of its authority, elects from its membership a Chairperson

of the Parliament.

Parliamentary committees are established for preliminary preparation of legislation;

monitoring of fulfillment of previously adopted Parliamentary decisions and supervision

of activities of state bodies accountable before the parliament and controlling over all

other governmental activities. The Parliament can set up ad hoc Parliamentary

Committees.


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3.5 Execut ive Branch

The executive functions in Georgia comprise the President of Georgia who serves as

Head of State and a Prime Minister who serves as Head of Government (except that

the President functions as Head of Government with respect to the Ministries ofInternal Affairs and Defense).

The President of Georgia is the Head of State of Georgia and is charged by the

Constitution with the responsibility of exercising the internal and foreign policy of the

state. He/she must ensure the unity and integrity of the country and the activity of the

state bodies in accordance with the Constitution. The President of Georgia is the

supreme representative of Georgia in foreign relations and is the Commander-in-Chief

of the Armed Forces of Georgia.

The President of Georgia is elected on the basis of universal, equal and direct suffrageby secret ballot for a term of five years. The same person may be elected President

only for two consecutive terms.

The Government of Georgia (not to be confused with the State) is charged by the

Constitution as amended in February, 2004, to ensure the exercise of the executive

power, the internal and foreign policy of the state in accordance with the legislation of

Georgia. The Government is responsible to the President and the Parliament of

Georgia.

The Government is composed of the Prime Minister and the Ministers. The Prime

Minister is the head of the Government. The State Ministers may be in the composition

of the Government. The Prime Minister charges one of the members of the

Government with the exercise of the responsibilities of the Vice Prime Minister.

The Prime Minister determines the directions of the activity of the Government,

organizes the activity of the Government, exercises co-ordination and control over the

activity of the members of the Government, submits report on the activity of the

Government to the President and is responsible for the activity of the Government

before the President and the Parliament of Georgia. The Prime Minister appoints other

members of the Government by the consent of the President and is authorized to

dismiss the members of the Government.

3.6 Judiciary Branch

The independence of the Judiciary is guaranteed by the Constitution. The highest court

is the Supreme Court. It exercises control over lower courts. The Parliament appoints

the Chairman of the Supreme Court upon the nomination by the President, and the

Parliament can dismiss the Chairman.


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The Constitution establishes the Constitutional Court. The Constitutional Court rules on

the legality and constitutionality of legislative or governmental acts and guarantees

highest authority of the Constitution of Georgia.

3.7 Milestones in Georgia\'s Transformation to a Market Economy

In the World Banks 2009 Doing Business Survey, Georgia improved its

overall ranking from 112th to 15th still being the member among the top ten

reformer countries. According to the Heritage Foundation in 2008 Georgia has

further improved its ranking from 35th to 32nd in the Economic Freedom Index.

Construction of two new pipelines across Georgia increases its role as a

strategic crossroad for hydrocarbon transit in the Caspian region.

Total licenses and permits reduced by 84%, in reforms that eliminated 756licenses and permits, streamlined procedures, and introduced statutory time

limits for government action on applications.

Customs clearance times reduced from 52 to 15 days for imports and from

54 to 13 days for exports as reported by the World Bank's Doing Business 2007

survey. A new Customs regime is producing further reductions.

Fewer taxes and lower rates were introduced by a new Tax Code and further

cuts are planned. Continuing modernization of tax and customs administration

is reducing compliance costs and increasing revenues.

Liberal Labor Code, recognized on international indices as one of the world's

best, reduces labor costs and increases employer flexibility.

The number of registered taxpayers almost tripled from 2005 to 2008 after

introduction of simplified registration procedures for legal entities and physical

persons.

Liberal Trade Regimes: Georgia has low tariffs, streamlined border clearance

procedures and preferential trade regimes with major trade partners. Member

of the WTO since 2000 Georgia has no quantitative restrictions on trade.

Shock Resilient Market: Georgia has proved to be highly resilient to external

shocks such as energy and commodity prices, Russian embargo, Russian-

Georgian conflict, global financial and economic crisis.

3.8 Webpages

http://www.investingeorgia.org/ and www.president.gov.ge


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NIS - Moldova


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4. SOCIO-POLITICAL SITUATION IN THE REPUBLIC OF

MOLDOVA

4.1 Country background

Following the accession of Romania to the European Union, the Republic of Moldova is

now on the border of Europe and Moldovan politics are visibly moving towards

alignment with the EU. Unlike its eastern neighbour, Ukraine, the young nation has

not faced political instability and has undertaken

some major reforms that reflect the nations desire for ultimate European integration.

After a long recession in the 1990s that made Moldova the poorest country in Europe,

the nations development has been marked by economic growth since 1999. However,despite significant progress the rate of poverty in Moldova remains high and tends to

increase in rural areas.

Main indicators of households budgets

2006 2007

Total Urban Rural Total Urban Rural

Disposable income (average

monthly per capita), lei

839,6 1000,6 723,8 1022,6 1212,4 883,9

Share of in-kind income in

disposable incomes, %

20,1 6,3 33,7 18,1 6,7 29,5

1.1.1 Economic Situation

After 10 years of continuous and sharp decline, the Moldovan economy started a

recover process from

the year 2000 onwards. Between 2000 and 2007 GDP growth averaged 4.8% in 2008.

Inflation

receded although remaining in the two-digit range (12.3%) and the aim here is to

reduce it continuously


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to a one digit range. The national currency remained relatively stable against key

foreign currencies.

Despite the decline in agricultural production (more than 23% in constant prices) the

growth in the Moldovan economy was mainly due to the increase of foreign

investment (43%). A salient feature

of the economic and social situation in Moldova is the existence of a huge migration

flow, with citizens of the Republic of Moldova seeking employment opportunities

abroad. The number of migrants was

estimated in 2003 at 360,000. Out of a total active population they account for slightly

more than20%

of the total labour force. The primary consequence of this situation is a large inflow of

remittances.

In 2008 remittances were estimated by the NBM at over 45% of the GDP. They have

made a significant contribution to the resumption of economic growth and have

mitigated the poverty problem. However, this situation raises concerns among

Moldovan policy makers as remittances

are mostly spent on household consumption, primarily of imported goods, and on real

estate. Donors have pledged to enlarge their financial support to Moldova. At the

Donors Consultative Group Meeting held in Brussels in December 2006 they

pledged financial support amounting to USD

1.2 billion over the next three years. Already in May 2006, the Executive Board of the

IMF had approved the GoMs request for the use of fund resources under a three-year

Poverty Reduction and Growth Facility arrangement. Initially set at Special Drawing

Rights 80.8 million, this financial

package was augmented in December to 110.88 million (approximately EUR 128

million).

As a result, the value of such grants tripled in 2007 and represented 4.3% of total

public revenues. It is estimated that in 2009 this will further increase, reachingapproximately 4.9%.


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4.2 RESPONDING TO THE CURRENT CRISIS

The donor community has identified those policy actions that could be

considered urgent short-term measures. These suggestions focus in particular on

public expenditure management, financial sector reform, and social protection. The fullset of short-term policy actions by sector is presented in the table at the end of this

summary.

Fiscal rebalancing is an important early step for Moldovas development agenda

under the new Government. The relatively large size of Government is limiting growth

prospects and needs to be reduced. Remuneration of public sector employees

currently consumes close to a third of total government resources. Optimizing the

structure of public sector employment through better organization of an institutional

system of public service provision, enforcing merit principles in appointments and

aligning remuneration system with skills and performance - are the key factors ofrationalization of public expenditure. Moreover, better targeting of a significant portion

of the budget transfers that have been found to be poorly targeted will lead to better

expenditure effectiveness. The policy suggestions presented throughout this briefing

book highlight opportunities for achieving a more efficient and equitable use of reduced

fiscal revenues. Such improvements in public spending, over time, could increase the

resources available to invest in the countrys key infrastructure.

In the short run, a significant fiscal gap signals the need for reductions in

expenditures contained in the 2009 budget. The recommended short-term fiscal

adjustment measures (yielding fiscal savings of up to 6.8 percent of GDP) include thefollowing:

Capital Spending - Cut capital spending by around 2.5 percent of GDP, while

preserving spending on road rehabilitation and maintenance.

Social Assistance and Pensions eliminate poorly targeted nominal compensation

programs and redirect those resources (around 0.3% of GDP) to the new targeted

social assistance scheme (effectively doubling it).

Public Sector Wages reduce the wage bill by around 1.8 percent of GDP by

suspending scheduled wage increases.

Goods and Services eliminate excessive inflation adjustment in the 2009 budget;

accelerate school network optimization; and eliminate non-growth enhancing

agricultural subsidies, such as VAT input and output subsidies.

Taxes - raise excise taxes on cigarettes, hard alcohol and luxury automobiles (0.2%

of GDP).


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4.2.1 Trends in poverty

Moldova is one of the poorest countries in Eastern Europe. With a GDP per capita of

USD 1,729 at purchasing power parity and a Human Development Index (HDI) of 0,694

ranking 114 among 177 countries, Moldova lags far behind the average figures GDP

per capita of USD 8,802 and HDI of 0,802 - for Central and Eastern Europe and the

Community of Independent States (CIS). Following the collapse of the economy in the

early 1990s, still aggravated by the regional monetary crisis of 1998, Moldova was

confronted by a phenomenon of massive poverty. In 2000, as much as 67.8% of the

population had an income below the poverty line. The resumption of economic growth

in the early 2000s resulted in a steep decline of poverty, with the poverty rate falling to

29% in 2003. However, although the GDP has continued to grow vigorously in 2004

and 2005, the overall poverty rate remained stable at around a third. The stabilization

of the poverty rate results from diverging developments between regions. Whereas

the poverty rate continued to decrease significantly in large towns from 22.7% to 14.7%

between 2003 and 2005, it hardly diminished from 49.4 to 48.5% in small towns, and

deteriorated from 35.7% to 42.5% in rural areas where almost two thirds of the

population live. The poverty up-date report of 2006 points out that government

transfers and private

remittances from abroad contributed to the rapid reduction of poverty over the period

2004-2005. However, the recent fast gains in remittances do not compensate for the

decline in other sources of income and the analysis of data shows that relatively small

shares of public and private transfers flowed to the poorest groups . The GoM

budget for health and social assistance reaches across the entire population, but is not

targeted to the poorest groups and people most in need. From the perspective of low-income households the most immediate economic challenge is likely to be the

continued increase in energy prices. In late 2007, most households faced increases

in the monthly charges for electricity and gas. The IMF has requested further increases

in tariffs for energy and communal services in order to reduce government subsidies. If

these increases are to be sustained and widespread non-payment avoided, social

assistance payments will need to be delivered to low-income households to effectively

contribute to reduce poverty in Moldova.

4.3 The social sector in Moldova

4.3.1 Social Assistance Reform in Moldova

Several fields of national policy in the social sector are highly relevant to the

implementation

of the SPS Programme in Moldova. Although the current situation in Moldova

registered progress during the last years, the improvement in social assistance

remains modest. The increase of public expenditure for social assistance had a


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limited effect and the resources were not targeted at the social groups who are most in

need. The high rate of poverty and low-income households in Moldova

described above leads to a high demand for social assistance services. According

to estimates of the MSPFC approximately 12% of the Moldovan population is likely to

require social services during this year. The current social assistance system which

comprises 18 different types of social services is characterized by fragmentation

and the lack of an overall social assistance strategy which is due to several ad hoc

developments of individual programmes. Currently the social assistance system is

governed by several laws and regulations while some types of social assistance are

lacking any legal framework. The social assistance services predominantly consist of

cash transfers which do not necessarily contribute to the improvement of the

beneficiarys situation. Other social services currently offered in the country fall short of

the existing needs.

The following documents form the framework for the on-going reform of the socialprotection sector in Moldova:

1. Economic Growth and Poverty Reduction Strategic Paper(2004) (sections:

6.15 Social Insurance, 6.16 Social Assistance and 6.17 Labour Market);

2. EU-Moldova Action Plan (17) Address poverty, notably by improving

targeting and effectiveness of social assistance; (23) Strengthen dialogue andcooperation

on social matters. Ensure a closer approximation of the country to EU

standards and practices in the area of employment and social policy; and

3. National Development Strategy of the Republic of Moldova for the years 2008

-2011.

The National Development Strategy for the years 2008 2011 is the latest

document adopted solely by the GoM in consultation with civil society and international

development partners. It identifies social assistance as a crucial instrument to combat

poverty and stipulates the aim: offering new economic and social opportunities for

vulnerable population groups, including the improvement of efficiency and targetingof

social assistance resources. The three major activities in the framework of the National


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Development Strategy are highly relevant for the implementation of the SPS

Programme with the following objectives:

1) modernisation of the social assistance system;

2) mobilisation and transparent use of financial resources; and

3) reform of the mechanism for assessing and establishing the degree of disability or

work capacity.

Further, as mentioned in the ToR, a new Law on Social Benefit (no. 133- XVI) has

been approved by Parliament in order to implement household income-based

socialassistance and to replace the current category-based social assistance. This

has to be regarded as a crucial effort to modernise the social assistance system and

holds challenges at the same time as it allows the old and the new systems to function

in parallel. Due to the visible deficiencies of the current system, the GoM drafted a

national strategy aiming to develop a comprehensive policy on supporting

vulnerable

groups through the provision of:

high quality and effective social assistance. The GoM perceived

deficiencies such as the complexity of the system hindering the

identification of the individual needs of the beneficiaries;

the excessive institutionalisation; and

insufficient coordination of national institutions.

These factors cover hampering the implementation of a coherent integrated social

policy. There is a need to focus on the consolidation of the institutional, operational

and legal framework in order to improve the effectiveness of social welfare services in

the country.

The GoM has stipulated two strategic objectives:

1) to ensure the quality and efficiency of the integrated system of social assistance

services; and

2) to develop, consolidate and integrate social services targeted to groups of persons

in needs.

Regarding the first objective, the GoM recognises that the prerequisite for the

improvement is the effective functioning of all five components that govern an

integrated system of social assistance services: legislation, institutional and operational

framework, human resources and finance.


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The implications of these targeted goals and the drafted action plan of the GoM on the

implementation of the SPS Programme will be demonstrated in the methodology.

4.4 Socio-Polit ical Context

The Population of Moldova is some 4572.7 habitants (National Statistics 2008). They

belong to different ethnics; Moldovan, 78,2%, Ukrainian 8,4%, Russian 5,8%, Gagauz

4,4%, Bulgarian 1,3%, Other, 1.3% (2004 census).

The 98% of the population belongs to the Eastern Orthodox, Jewish 1.5% , Baptist and

other 0.5% (2000).

7 December 2009 Repeated elections of the president o f Moldova failed

The second attempt to elect the president of Moldova, which took place today,December 7, failed. The Democrat Party of Moldova leader, Marian Lupu, was not

elected as the head of state, as he did not gain the needed number of votes.

The chair of the Special Commission for electing the president, Ion Plesca, mentioned

that following the voting procedure 53 MPs received ballots and all of them were

introduced in the ballot box. According to the cited source, all ballots were declared as

viable, although one of them has a little cross, instead of the necessary sign.

Moldovan parliamentary election, July 2009 and 2009 Moldova civil unrest

After April 2009 election and the civil unrest, the climate in Moldova became verypolarized. The parliament failed to elect a new president. For this reason, the

parliament was dissolved and snap elections were held. The July 29 polls were won by

the Communist Party with 44.7% of the vote. That gave the former ruling party 48 MPs,

and the remaining 53 seats in the 101-member chamber went to four opposition

parties. 51 votes are needed to elect the speaker and prime minister, and 61 votes to

elect the president.

Opposition has 48

seats18 15 13 7

PCRM PLDM PL PDM AMN

The alliance was formed by the following parties: Liberal Democratic Party (18 seats),

Liberal Party (15 seats), Democratic Party (13 seats), and Our Moldova Alliance (7

seats). On August 8, 2009, the four Moldovan parties agreed to create a governing

coalition that pushed the Communist party into opposition; the Communists have been

in government since 2001. The name of the coalition is the "Alliance for European

Integration".


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President of the Moldovan Parliament, Parliament of the Republic of Moldova, and

Moldovan Parliament 2009-2013

The first session of Moldova's parliament has been scheduled for August 28, one day

short of the deadline for the body to convene.

On August 28, 2009, Mihai Ghimpu was elected as the Speaker of the Moldovan

Parliament, through secret voting, getting all 53 votes of the Alliance For European

Integration

On September 11, 2009, Mihai Ghimpu became the acting president of Moldova. The

interim position was possible following the resignation of Moldovan President, Vladimir

Voronin, announced in the morning of 11th of September 2009 on the public

broadcaster Moldova 1.

The resignation letter was sent to the Parliament secretariat and by a vote of 52deputies in the plenary session of the legislature was declared vacant the post of the

President of the Republic of Moldova. Therefore, in accordance with Article 91 of the

Constitution of 1994, which provides that "the responsibility of the office shall devolve

ad interim on the President of Parliament or the Prime Minister, in that priority order",

Mihai Ghimpu becomes the interim President of the Republic of Moldova until a new

president will be elected by the Parliament.

One of the goals of the Alliance is to elect the new president. The candidate of the

Alliance is Marian Lupu.

The four parties need to elect a new president which will be impossible without having

the support of at least 8 Communist MPs. The Communists can decide to block the

election of the new president, which will mean that Vladimir Voronin (who resigned on

September 11 and Mihai Ghimpu took over as interim) will stay on as acting president

until new (early) elections next year.

The critics close to the Communists said that the new coalition was in fact a

resurrection of the former Alliance for Democracy and Reforms, which had failed in its

attempt to rule.After 1999, the Party of Communists used very successfully the

incoherent activity of the Alliance for Democracy and Reforms for the discreditation of

any form of political coalition formed without Communists.


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Political

forcesSeats

Moldovan Parliament seats afterJuly 2009 polls (PCRM 48, PLDM 18, PL 15, PDM 13, AMN 7)

vde

Alliance

for

European

Integration

53

Party of

Communists48

Prime Minister of Moldova

Constitutional Court of Moldova confirmed earlier on September 17, 2009 the

legitimacy ofMihai Ghimpu's position as acting president, which gave him the

right to nominate a prime minister. In the same day, Ghimpu signed a decree

nominating Filat for the office of prime minister. Earlier on Sept. 17, the

parliament approved a new government structure; according to the draft

structure, the number of ministries remains unchanged at 16 but their names

and responsibilities have been changed.

The Alliance cabinet of Vlad Filat took office after winning the approval of

parliament on September 25, 2009. Filat said that his first official visit as

premier will be made to Brussels. He added that the agenda of the first official

meetings will include visits to Paris, Berlin, Bucharest, and Kiev.


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NIS - Ukraine


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Socio-political situation in UKRAINE

5. COUNTRY BACKGROUND

The territory of Ukraine is equal to 603,7 th sq km or 5,7% of European territory and

0,44% of the World. Ukraine is bigger then France (544 th sq km), Spain (505 th sq

km), Sweden (450 th sq km), Germany (356,3 th sq km), Poland (312,7 th sq km).

Thanks to beneficial geoposition, wide net of air transport, railroads, marine and auto

transport, Ukraine is to be a transit country for passengers and cargos of different

countries.

The population of Ukraine is 49,5 mln people. Ukraine is the 5th in Europe (after

Germany, Italy, Great Britain, France) and the 21st in the World. Ukrainian population

sets 7,3% of population of Europe and 1% of the World population. 68% of Ukrainians

live in cities and 32% - in rural areas.

Religion in Ukraine

Ukrainian Orthodox Church - Kiev Patriarchate 50.4%, Ukrainian Orthodox Church -

Patriarch of Moscow 26.1%, Ukrainian Greek Catholic 8%, Ukrainian Autocephalous

Orthodox Church 7.2%, Roman Catholic 2.2%, Protestant 2.2%, Jewish 0.6%, Other

3.2%

5.1 Economic Situation

Ukraine's 2007 GDP (PPP), as calculated by the CIA, is ranked 29th in the world and

estimated at $359.9 billion. Its GDP per capita in 2008 according to the CIA was $7,800

(in PPP terms), ranked 83rd in the world. Nominal GDP (in U.S. dollars, calculated at

market exchange rate) was $198 billion, ranked 41st in the world. By July 2008 the

average nominal salary in Ukraine reached 1,930 hryvnias per month. Despite

remaining lower than in neighbouring central European countries, the salary income

growth in 2008 stood at 36.8 percent According to the UNDP in 2003 4.9 percent of theUkrainian population lived under 2 US dollara day and 19.5 percent of the population

lived below the national poverty line that same year.

The World Bank classifies Ukraine as a middle-income state. Significant issues include

underdeveloped infrastructure and transportation, corruption and bureaucracy. In 2007

the Ukrainian stock market recorded the second highest growth in the world of

130 percent. According to the CIA, in 2006 the market capitalisation of the Ukrainian

stock market was $111.8 billion. Growing sectors of the Ukrainian economy include the

information technology (IT) market, which topped all other Central and Eastern


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European countries in 2007, growing some 40 percent.

5.2 Socio-Polit ical Context

The only Legislative Body of Ukraine is Verkhovna Rada of Ukraine Ukrainian

Parliament. People of Ukraine on equity of the vote elect peoples deputies right in

mixed system (majority proportion one).450 Peoples Deputies are elected. 225 of

them are elected on one-mandate districts, 225 those who are elected by parties lists

in multi-mandate whole-Ukraine district on equity of proportional representation.

Ukrainian Constitution and laws set the rights of Peoples Deputies. PDs may unite into

factions and groups on a condition that every group and faction consists of not less

then 25 members. PDs groups may not form only on principles of parties membership.

All the groups unite PDs of similar views and thoughts on state and social-economic

development of the country.

Parliamentary fractionsQuantitative

composition

Date

Party of Regions fraction in Verkhovna Rada of Ukraine172 23/11/2007

Fraction "The Yulia Tymoshenko Bloc (political party" All-

Ukrainian Union "Fatherland" Ukrainian Social-Democratic

Party, Party "Reforms and Order")

153 23/11/2007

Bloc fraction "OUR UKRAINE - People's Self-Defense:

People's Union" Our Ukraine "Political party" Forward,

Ukraine! "People's Movement of Ukraine, Ukrainian People'sParty, Ukrainian Republican Party" Sobor ", Christian-

Democratic Union Party, European Party of Ukraine , Civic

party "PORA", Party of Motherland Defenders

71 23/11/2007

Faction of the Communist Party of Ukraine 27 23/11/2007

Faction Lytvyn Bloc (People's Party, Labor Party of

Ukraine) in the Verkhovna Rada of Ukraine20 23/11/2007

MPs, who do not belong to any faction 6

Statistics conversions fractions

Scheme of parliamentary fractions in the assembly hall

Ukraine's next presidential election (first round) is scheduled to be held on January 17,

2010.

January 2, 2010 was the beginning of the 15 day media blackout on reporting of

election polls before the January 17 first round election. A poll released December 15,

2009 by the International Foundation for Electoral Systems has indicated that Viktor


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Yanukovych (31%)as the most likely to win the Presidential election in a contest with

Yulia Tymmosheko (19%). All other candidates were below 5% with Victor Yushchenko

on 3.5% with a negativity rating of 83%. The survey also indicated that Ukrainians are

pessimistic about the socio-political situation in the country. Seventy-four percent

believe Ukraine is on a path toward instability and more than nine in ten Ukrainians are

dissatisfied with the economic (96%) and political situation (92%) in the country.

According to other recent opinion polls, the Party of Regions candidate Viktor

Yanukovych (25.0% to 33.3%) was placed first among viable presidential candidates,

with Prime MinisterYulia Tymoshenko (15.5% to 18.4%) coming in second, and Front

for Change candidate Arseniy Yatsenyuk (6.7% to 14.5%) in third place. Incumbent

President, Viktor Yushchenko (2.0% to 3.8%) following his decline in popularity with the

Ukrainian public comes in at a distant sixth place behind leader of the Communist Party

Petro Symonenko (3.4% to 4.5%) and Parliamentary speakerVolodymyr Lytvyn (1.4%

to 5.8%).

Candidate Party 1st choice Run-off Ballot

Viktor Yanukovych PoR 33.3% 46.7%

Yulia Tymoshenko BYuT 16.6% 30.0%

Sergiy Tigipko LPU 7.4%

Arseniy Yatsenyuk Y-Front 6.7%

Volodymyr Lytvyn LPB 4.1%

Viktor Yushchenko OU 3.8%

Petro Symonenko CPU 3.4%

Others 3.2%

Against all 9.0% 13.2%


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Not going to vote 3.5% 3.6%

Undecided 9.0% 6.5%

sum 100.0% 100%

Information gathering were conducting by personal interview method in the 24 oblasts

of Ukraine and Crimea. Respondents were selected by quota sample, representing

the adult population of the state by the residing place (oblast), sex and age. Sample's

volume - 3083 persons. The estimated average sample error amounts to +1,8%.

A survey conducted by U.S.-based International Foundation for Electoral Systems and

financed by the United States Agency for International Development (November 21 to

29) lists Viktor Yushchenko as the highest negativity rating (83%) and Viktor

Yanukovych with the most positive rating (42%)

According to an opinion poll conducted by FOM-Ukraine in September/October 2009

the turnout is expected to be at least 85.1%. A poll carried out by the Oleksandr

Yaremenko Institute for Social Research in December 2009 predicted (at least) a 70%

turnout.

Media are prohibited by Ukrainian law from reporting the results of public opinion polls

for the election (starting) from January 2 until election day on January 17, 2009.


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Centra Asia -Kazahkstan


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6. BRIEF REPORT OF POLITICAL SITUATION IN

KAZAKHSTAN

6.1 Socio-pol itical context

Kazakhstan is situated at the junction of 2 continents Europe and Asia. The Capital ofKazakhstan is Astana city (from December 10 1997). The official language is Kazakh,belonging to Turkic group. Russian language is used equally with the official one in thestate organizations and in the local control authorities.

As of July 1, 2006 the population of Kazakhstan is 15.301.400 people. According to theforecast of the Social and Demographic Statistics Department till the end of 2009, thequantity of Kazakhstan citizens was increased from 15.1 million till 16million.

The representatives of 131 ethnic groups live in the Republic. Kazakhs -58,9%,Russians -25,9%, Ukrainians- 2,9%, Uzbeks -2,8%, Uigurs -1,5%, Tatars -1,5%,Germans -1,5%. Kazakhstan is the temporal statement. The prevalent religion of theRepublic is Islam of Sunni character. The Russian Orthodox Church is the mainChristian denomination. Also the Protestant, Roman, Catholic and other religions arerepresented in Kazakhstan. Muslims- 47%, the Orthodox Christians 44%, Protestants-2%, Catholics -2-3%, predominately Russian and Korean Buddhists -0.3%

State structure

RK is unitary state with president form of government. The President of the Republic ofKazakhstan is the head of state and Chief Executive Officer. The President shall be

elected by means of voting for the period of 5 years.

The leading figures are: Head of State President Nursultan Nazarbaev, Head ofgovernment prime-minister Karim Massimov.

The higher representative body of the Republic, executing the legislative functions isthe Parliament of the Republic of Kazakhstan. The Parliament consists of 2 chambersacting on the permanent basis Senate (term of deputies powers of Senate 6 years )and Mazhilis (term of deputies powers of Mazhilis 5 years).

, , ., - ( ) ( ).

The monetary unit is Tenge (KZT)

The financial system of Kazakhstan is one of the most progressive among CIScountries. The banking sector, in its development, is rather ahead the indicators ofother CIS countries.


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6.2 Economic situation

Kazakhstan is agricultural and industrial country. In 2006 gross domestic product

(GDP) of Kazakhstan was 77.9 billions US Dollars, it totals USD 5120 per head. Forthe period 2007-2009 the average annual increase of GDP will total 8.8%, this let to

settle the strategic task for GDP doubling. The main source of economic growth is

mining production.

Kazakhstan consists of 5 major economic regions:

Northern Kazakhstan grain farming, iron ore and coal production, mechanical

engineering, production of oil products and ferroalloy, energy.

Eastern Kazakhstan - nonferrous metallurgy, energy, machinery and forestry.

Western Kazakhstan major oil-and-gas producing region

Central Kazakhstan - ferrous and nonferrous metallurgy, machinery, animal husbandry

South Kazakhstan cotton, rice, wool, grain, fruits, vegetables; nonferrous metallurgy,

instrument engineering, light and food industry, fish farm and forestry.

There is a great part of trade with traditional partners CIS and Baltic countries, 59%

of export and 63% of import. But the main trade partner is Russia. There is a

successful development of trade connections with Germany, Turkey, Switzerland,

Czech Republic, Italy, China, USA, Great Britain, South Korea etc. Kazakhstan exports

raw materials produced by extractive, fuel, metallurgy and chemical industries.

Structure of Kazakhstan export includes:

oil and oil products 35 %

nonferrous metals 17 %

ferrous metals 16 %

ores 12 %

grain 9 %

other 11 %

The main import products are: machinery and equipment, transport, devices and

automatic machines, chemical production, mineral fuel, provisions, finished and

consumer goods


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Transport issues

The Ministry of Transport and Communications of the Republic of Kazakhstan is the

central executive body of RK carrying out the management and inter-sectoral

coordination regarding the issues of development and implementation of the state

policy in sphere of transport and communications. MTC has the following departments:

the Committee of Motor Roads, the Committee of Civil Aviation, the Committee of

transport and communication lines, the Committee of Transport Control.

From 2007 Mr. Kusainov Abelgazi is the responsible secretary of the Ministry of

Transport and Communications of the Republic of Kazakhstan, and from March

2009nominated as the Ministry of Transport and Communications of RK.

The set of documents was approved on the state level for resolving the existing

transport problems in the Republic. In June 2005 in accordance with the Decree of the

Government of the RK the plan for creation Transport policy cluster was approved.The mission of transport-logistic cluster is improving the level of development and

transport complex activity in accordance with the requirements of economy and

population of Kazakhstan in sphere of transportation and successful competitiveness in

the world markets of transits.

For successful settlement of all existing transport problems in the country, Transport

strategy of the Republic of Kazakhstan until 2015 was approved in 2006, the aim of

which is the advanced development of transport - communication complex which is

able to satisfy the needs of economics and population in transport services in full.

6.3 Used references:

http://www.parlam.kz/Information.aspx?doc=1&lan=ru-RU

http://www.natcom.unesco.kz/rus/about/about_kz.html


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Central Asia -Kirgyhkstan


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7. BRIEF REPORT OF POLITICAL SITUATION IN

KYRGYZSTAN


Kyrgyzstan is situated on northeast of the Central Asia. Generally borders are onnatural lines crests of high mountains and rivers. Neighbors are Kazakhstan,Uzbekistan, Tajikistan and China. Total area is 199.9 thous. square meters.

The capital of Kyrgyz Republic is Bishkek city the main economic, political, scientific,industrial, cultural and transport center of the country.

Population of the republic is 5 million of people .Kyrgyzs -66.9%, Uzbeks -14.14%,Russians -10.65%. Totally there are more than 80 ethnic groups live in Kyrgyz

Republic.

Religion is Islam of Sunni character and Orthodox Christianity

The monetary unit is Som.

The Kyrgyz Republic is - sovereign, democratic state of the Central Asia. The form ofgovernment is President Republic. Executive authority is President andGovernment. The Supreme legislative authority is Zhogorku Kenesh (Parliament)consisting of 2 Chambers (105 deputees).

The leading figures are: the Head of State President Kurmanbek Bakiev, Head of

Government, Prime Minister Daniyar Usenov.

Political parties

This information is provided by AKIpress agency with reference to the Ministry ofJustice of Kyrgyzstan. 82 political parties were registered in the Republic as of June 20,2006. The quantity of parties were increased twice in compare with the last year, inMay 2005 the quantity was 40. The most popular are:

Agricultural-labour partyParty of national renaissance AsabaCommunistic partyProgressive-democratic party Erkin Kyrgyzstan

Party of democratic movement of Kyrgyzstan PDDKSocialistic party Ata mekenRepublican national partyParty of unity of Kyrgyzstan


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As the statistic Department of KR informs, the growth of GDP of Kyrgyzstan according

to the results of 11 months of 2009 totaled 2.8%. In money terms, the GDP is equal173 billion 275.2 million som. At that, during 11 months of 2009, the decreasing ofindustrial production totaled 11.5%

Industry: light machinery, textile products, provisions, cement, footwear, sawn timber,refrigerators, furniture, electric motors, gold, rare alkaline-earth metals.

The main trade partners are: Russia, Kazakhstan, Switzerland, China, Uzbekistan,USA, OAE, Germany.

7.3 Main poli tical issues

As the main Conception there is a necessity to consolidate the regional positions,

increasing of competitiveness in the international scene, securing of international

recognition of Kyrgyztan as country following the way of positive reforms.

The tasks of security potential increasing of Kyrgyzstan predetermine the activation in

participation of Agreement creation regarding the collective security and Shanghai

cooperation organization. The primary importance is the development of integration

processes in the framework of Eurasian economic community.

The space created in relationship between Kazakhstan, Uzbekistan and Tajikistan laid

down the positive foundations for mutual cooperation.

The intensification of trust with dynamically developed Kazakhstan is the main

condition for improvement and consolidation of Kyrgyzstan positions in the region.

The neighborhood of Kyrgyzstan and China creates the favorable conditions for large-

scale cooperation in the most profitable spheres of development, diversification and

modernization of transport infrastructure as well as overcoming of isolation from outer

space.

The Central Asia is considered as the binding bridge for transcontinental cooperationbetween the dynamically developed centers: European Union and Southeast Asia.

The foreign policy of Kyrgyzstan is aimed to generation of trust measures in structure

of multi-aspect and mutually-beneficial cooperation with the main centers of the

international policy of the continent: the Russian Federation, People's Republic China,

USA,EU, Germany, Japan, India and Turkey.

The international cooperation in the Ministry of Transport and Communications of the

Kyrgyz republic is carried out by the Department of External Economic Relations. This


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Department, in the range of its competence, develops and coordinates with the state

bodies of KR all projects of the international agreements in sphere of transport and

communications.

Minister of Transport is Mr. Sulaimanov, Deputy Minister is Mr. Mamataliev

For the last years there is a visible progress in the development of telecommunication

infrastructure, informatisation of the state organizations and private companies, the

special legislation is also under development.

The international airport Manas, railway and motor roads as well as the general

infrastructure enables city to integrate as to the regional and to the world economy.


http://old.president.kg/president/about_republicrv/

http://www.consulkg.kz/kyrgyz_republic

http://www.president.kg/ru/president/ext_policy/


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Centra Asia - Tajikistan


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8. TAJIKISTAN


Tajikistan is situated in south part of CIS countries within the Central Asia, in the center

of Eurasia continent. The area of Tajikistan is 143,1 thous.square meters. Dushanbe is

the capital of Tajikistan

The monetary unit is Somoni

Since January 1 of 2008, the population of Tajikistan equal to 7, 2157 million of people.

26,3% - urban population, 73,7% - rural population. Representatives of 120 ethnic

groups and nationalities live on Tajikistan. The national structure is as following: Tajiks

-15,3 %, Uzbeks -15,3, Russians -1,1 %, others -3,6%

The prevalent religion of the Republic is Islam of Sunni character. There are 85 non-

Moslem religious associations are registered in Tajikistan. The main part among them

is Orthodox Church, 5 communities of Baptists, 2 Roman Catholic parishes and South

Korean Church Son Min.

Tajikistan is the parliament Republic. According to the Constitution of the Republic of

Tajikistan, the supreme, legislative and representative body is the Parliament (Madjilisi

Oli) consisted of higher chamber (Madjilisi Milli) and lower chamber (Madjilisi

Namoyandagon).

The Parliament of the country shall be elected for the period 5 years. The supreme

executive body of the Republic is the Government of Tajikistan headed by the

Chairman of the Government who is the President of the country. The Presedenta of

the Republic of Tajikistan shall be elected by means of nationwide elections for the

period seven years. The Government is consisted of Prime-Minister, his deputies,

ministers, chairmen of the state committees.

The leading figures are: Head of State President Emomali Rakhmon, Head of

government prime-minister Akil Akilov.

Until present, the following political parties, registered in the Ministry of Justice of the

Republic of Tajikistan, are active:

Democratic party,

Party of Islamic renaissance,

Communistic party,

National democratic party,


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Socialist party,

Social- democratic party.

Tajikistan made all efforts for joining to the Customs Union in the framework of Eurasec


36% out of GDP of Tajikistan are the transferred profits of migrant workers, during

calculations of this rate, only the money transferred by guest workers, by means of

bank transfer, was took into accounts.

During 8 months of 2009 the export of Tajikistan was decreased by 55,1%

Totally, the volume of export from Tajikistan to other countries was USD 552 million

700 thousands. Last year this index was more than USD 1 billion.

Mainly, the export volumes of aluminum, cotton, leather, electricity and tobacco

decreased according to the source data. The most part of import volumes, such as:

flour, sugar, vegetable oil, aluminum oxide, cement and motor cars was decreased. At

that, import of grain, fuel, petroleum, diesel-fuel, black oil and condensed gas was

increased.

Top five of the main trade (export-import) partners of Tajikistan are Russia, China,

Kazakhstan, Uzbekistan and Turkey.

According to the Statistics Committee, for the period Jan-July 2009, the volume of the

produced gross domestic product was more than USD 2,2 billion, this index exceeds

the same of the last year by 3,1%.

8.3 Main transport issues

Transport of Tajikistan is the integral part of economy of the Republic. The main place

in transport is motor transport. There are 5 major highways. At present, new roadKulma-Karokurum the great silk road, which stretched through Tajikistan in ancient

time, opened.

The Minister of Transport and Communications Mr. Ashur believes: The building of

roads, airports, tunnels and bridges let to extend the transit opportunities of the

Republic and connect Tajikistan by means of international roads with ports of Pakistan

and Iran, it helps Tajikistan to overcome of the communications isolation

The most effective transport is aviation: total length of air routs is 4,8 thous. kilometers


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The railways of broad gauge carry out mainly the external-republican transportations.

The length of railways is 474 km.


http://www.tajinvest.tj/?q=ru/node/2

http://www.khovar.tj/index.php?option=com_content&task=view&id=13363&Itemid=

http://ru.wikipedia.org/wiki/%D0%A2%D0%B0%D0%B4%D0%B6%D0%B8%D0%BA%

D0%B8%D1%81%D1%82%D0%B0%D0%BD

http://www.dw-world.de/dw/article/0,,3212390,00.html


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Central Asia -Turkmenistan


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9. TURKMENISTAN


The Republic of Turkmenistan is the state in Central Asia. It borders with Kazakhstan in

the north, Uzbekistan in the north and east, Iran and Afghanistan in the south. On the

west it is washed by Caspian sea. The independence of Turkmenistan was declared in

October 1991. Ashgabat is the capital of Turkmenistan and is the separate

administrative unit. Turkmenistan is the most closed republic of the former Soviet

Union.

According to the data of Turkmenmillilhasabat as of March 1, 2006 the population of

Turkmenistan totaled 6 mil.400 thous. persons. The ethnic structure is the following:

Turkmens -81%, Uzbeks -9%, Russians -3,5%, Kazakhs -1,9%, Azeri, Tartar,Armenians -0,7%. Religion: Muslims (Sunnites) - 89%, Christians -9%, other

confessions -2%.

The official state language is Turkmen. The Turkmen language converted to Latin,

everybody knows Russian, but you dont find it in written form.

The money unit is Turkmen manat, it is rather stable currency.

The form of government is the President Republic. The Head of the state is the

President, elected by direct secret voting, for the period of 5 years. The lifelong

president of Turkmenistan till Dec21,2006 was Mr. Niyazov Saparmurat changed hisname as Turkmenbashi. The present President is Mr. Berdymukhammedov

Gurbanguly. The President keeps absolute control under the country and existing of

oppositions are not allowed. The political parties and leaders: the Democratic party of

Turkmenistan (DPT) (Saparmurat Niyazov); note: formally the opposition parties are

outside the law; informally, the small-scale opposition movements are acting

underground or abroad.

The legislative body is Medjilis (Parliament, 125 members). Deputies are elected for

5 years in single member constituency. Majilis is responsible for laws accepting as well

as the constitution accepting and changing.


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9.2.1 Foreign trade

Regarding the results of socio-economic development of Turkmenistan in Jan-July,

2008 Mr. Mommadov, the Chairman of the State Committee on Statistics reported:

according to the results of 6 months, the volume of the produced gross production

totaled 96.1 trillion mantas, it is 21% more than the previous year. The rates of GDP

growth totaled 107.1%

The main nature treasure of Turkmenistan is the natural gaz. Oil and gas production

and its further export. The leading sector of economy is the light industry, then textile

industry and agrarian sector.

The foreign trade export: the main place is gas, oil and oil products as well as

electricity, products of cotton groups, carpets. Export totaled 4.4 billion dollars.

The foreign trade import: machinery and equipment (for oil-and-gas branch), coil,

chemicals, medicaments etc. import was 2.4 billion dollars

According to the information of Ashgabat correspondent Turkmenistan.ru, it is

foreseen that 74.1 % of funds (except investments) shall be send for social sphere

development by the state budget. It is planned to send the investments by 22.4% more

than in 2009 for production and socio-cultural spheres.

9.3 Main poli tical issues

Foreign policy. After independence declaration, Turkmenistan set the bilateral and

multilateral relationships with a range of different countries and many international

organizations. Turkmenistan is the member of UN and Organization of Islamic

Cooperation. Turkmenistan periodically takes part in conferences of CIS countries. The

foreign policy of country shall define as positive neutrality. The Turkmenistan

government regulates the relationships with different countries from USA till Iran.

During the time of the Soviet Union, Turkmen SSR was the source of raw material

(cotton and energy resource) which shall send to other Soviet Republics for

reprocessing. Till the end of 1991 Turkmenistan did not carry on the independent trade

with other countries. In the middle of 1990 the government activated the foreign-

economic activity for the purpose to conclude the trade agreements as well to create

the joint ventures with foreign companies in such sectors as light and food industries,

exploration and development of energetic resources.

The most important factor of the economic development of Turkmenistan is water


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resources controlled by the Ministry of Melioration and Water Resources.

Partnership with foreign companies is one of the priorities for development of national

economy, including its energetic industry, each year taking more steady positions in the

region. Turkmenistan exports electricity to such countries as: Turkey, Afghanistan and

Tajikistan. In future Turkmenistan is planning to increase the volumes of deliveries and

extend the geography of export routes.

Turkmenistan regularly organizes the international exhibition, trade fairs and

conferences. Scale expositions which are the integral attribute of modern life of a

country it is the real chance for foreign partners to demonstrate its possibilities,

experience and high technologies.

9.4 The structure of Minist ry:

- Ministry of Railway Transport

- Ministry of Automobile Transport

- Concern Abtoyollary (motor roads)

- Concern Turkmenhovayollary (Turkmen airlines)

The Minister of Motor Transport and Roads of Turkmenistan is Mr. Khangulyev

9.5 Used links:

http://ve.free-travels.ru/articles/item.php?country=turkmenistan

http://www.export.by/?act=news&mode=view&id=2458

http://www.tm.spinform.ru/terra.html

http://turkmenistan.gov.tm/_rus/2008/11/30/turkmenskaja_model_jekonomiki_sekret_uspekha.ht

ml

http://www.easttime.ru/countries/topics/1/2/20.html


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Central Asia -Uzbekistan


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10. UZBEKISTAN

10.1 Socio-political context

Uzbekistan is the state in the central part of Central Asia, borders on Kazakhstan,

Turkmenistan, Afganistan, Tajikistan and Kirgyzstan. Area is 447.4 thous.km2. the

capital is Tashkent. The official language is Uzbek.

As of January 1, 2009 the population totals mo

Annex 5 - TRACECA - Political Overview Jan2010 v2

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