Central Asia and the Caucasus International Community Eyes Open Natural Resource Repositories of Asia and Europe

Region-Specific Activities and Initiatives Central Asia and the Caucasus International Community Eyes Open Natural Resource Repositories of Asia and Europe

Central Asia, which consists of the five countries of Uzbekistan, Kazakhstan, the Kyrgyz Republic, Tajikistan and Turkmenistan, is located in the heart of the Eurasia Continent, surrounded by the major powers of Russia to the north and China to the east, and bordering the Middle East, Afghanistan and Pakistan. The region is under condi- tions that make it susceptible to geopolitically unstable regional situations. The Caucasus stands on the other side of the Caspian Sea, which is situated in the western part of Central Asia, and comprises the three countries of Azerbaijan, Armenia, and Georgia. More than 17 years have passed since these countries gained independence following the collapse of the former Soviet Union, and while pursuing market economy systems, differences in economic development are substantial due to differing natural resource endowments, restructuring speed and other factors.

Pillars of Aid Deepening Dialogue with the Whole Region and Strengthening Cooperative Relationships Centered on “Central Asia plus Japan” Dialogue

As a strategic point on the Silk Road con- dialogue and 5) cultural and human Scale of JICA Projects by Country in necting Asia and Europe, where the move- resource exchanges as the five pillars of co- the Central Asia and the Caucasus (Fiscal 2008) ment of people and goods flourished operation within the dialogue’s framework. Composition of JICA projects for each country based on through time-honored trade, Central Asia In addition, the following nine priority areas total Technical Cooperation project expenses, ODA has recently attracted the attention of the were established as an action plan for pro- loans (total), and Grant Aid (concluded Grant Aid including activities expedited). international community as a region en- moting intra-regional cooperation. Focusing dowed with abundant natural resources on the following nine priority areas, JICA is Azerbaijan 0.377 including oil and natural gas along the Cas- working to revitalize the Central Asia region Georgia 0.080 Turkmenistan 0.052 pian Sea as well as rare metals and other while taking into account each country’s resources including uranium. The stability stage of development: 1) measures against Kyrgyz and development of this region is exceed- terrorism and narcotics: support for tighter Republic ingly important not only for the peace and control of national borders; 2) clearance of 1.641

development of the Eurasia Continent, but anti-personnel mines: assistance to land Uzbekistan Armenia also for the international community. How- mine victims; 3) poverty alleviation: narrow- 4.587 8.514 ever, this region is beset with a host of is- ing regional gaps through small and Total sues that are difficult for countries to solve medium-sized enterprise promotion 28.540 through individual efforts, such as terrorism, and agricultural development assistance, (Unit: Billions of Yen) drugs, transportation, effective use of water utilizing JICA Japan Center; 4) health and Tajikistan and energy resources, accelerated trade medical care: preventing the spread of in- 6.517 Kazakhstan and investment and environmental protec- fectious diseases such as HIV/AIDS; 5) envi- 6.772 tion. ronmental protection: monitoring water After Central Asian countries gained quality while implementing Aral Sea mea- their independence from the former Soviet sures; 6) disaster prevention and reduction: Union, the Japanese government has river disaster prevention in Tajikistan, earth- worked to strengthen cooperative relation- quake prevention measures in Almaty, * Excludes Technical Cooperation with multiple countries ships with the area and in 2004 launched and support for landslide measures in or international organizations. the “Central Asia plus Japan Dialogue” as a Uzbekistan collectively bolstered by results framework for promoting communication sharing; 7) energy/water: modernization of between Central Asia and Japan. In 2006, electric power facilities and effective use of the Second Foreign Ministers Meeting was water resources; 8) trade and investment: held in Tokyo with Japan’s then Minister of support for WTO membership and modern- Foreign Affairs Taro Aso in attendance. At ization of customs system; and 9) transport: this meeting, it was agreed to establish 1) improving transport routes to the south political dialogue, 2) intra-regional coopera- through Afghanistan. tion, 3) business promotion, 4) intellectual

42 Region-Specific Activities and Initiatives| Central Asia and the Caucasus

Priority Issues and Efforts

With the potential of abundant natural country is in the process of nation- eration (CAREC) on issues that tran- resources, the Central Asia and Cauca- building as independent states, the ne- scend national borders as well as other sus region has now begun to construct cessity of promoting regional coopera- issues common to the region based on new pipelines and reconstruct roads tion to solve issues common to the such government policies as the Cen- and railways. However, the governance region (establishment of systems for tral Asia plus Japan Dialogue, and is and economic infrastructure necessary democratization and transition to a providing assistance that leverages for an independent nation and basic market economy, etc.), as well as is- region-specific training. JICA is also as- functions such as human resource de- sues transcending national borders sisting in the transition to a market velopment are not in place. Further- (development of traffic and shipping economy and reinforcing efforts to more, except for urban areas, rural life networks, etc.) is increasing. address the issue of poverty through is harsh and therefore poverty reduc- JICA is working within a framework rural development and public service tion and the creation of job opportuni- for regional cooperation that includes improvement. ties remain serious issues. While each Central Asia Regional Economic Coop-

Country Overviews and Priority Issues

L Uzbekistan and agriculture. Japan’s Country As- L Kazakhstan Support Based on Four Priority sistance Program for Uzbekistan was Building Economic Relations Areas of Cooperation formulated in September 2006, in which through Joint Government and Endowed with abundant underground the following were established as four Private-Sector Cooperation resources including natural gas, the priority areas of cooperation: 1) support Cooperation between Kazakhstan— lowest decline in productivity among for building human resource develop- a country with abundant energy and the now independent countries of the ment systems needed for developing mineral resources including the world’s former Soviet Union, and moderate in- a market-oriented economy and indus- second largest uranium reserves—and flation, Uzbekistan showed a positive trial development; 2) support for Japan has already progressed in such GNP growth rate in 1996, but has been rebuilding social sectors; 3) support for peaceful uses of atomic energy as the lagging behind in privatization of state- upgrading and improving economic development of uranium mines. How- owned enterprises and modernization infrastructure; and 4) promotion of ever, in June 2008, an agreement was of strictly controlled financial markets intra-regional cooperation. reached to initially decide on investment

Example Consequently, ODA loans were provided to This project was implemented after the Kazakhstan for ensuring navigational safety and transport sector was positioned as one of the key Kazakhstan improving and expanding the Astana Airport in sectors for national development in the Public In- Astana Airport Reconstruction Project order to cope with growing air transport demand. vestment Program (1996–1998) announced by Specifically, airport runways were extended the Kazakhstan government in November 1996 Revitalization of the Astana Airport and (from 2,511m to 3,500m), taxiways and aprons and the National Development Plan (1997–2030) Renovation of Soviet Union Era Passenger expanded, paving upgraded and perimeter roads announced in October 1997. Through these ef- Transport and car parks were improved. At the same time, forts JICA has contributed to the revitalization Kazakhstan is one of five Central Asia countries new passenger and freight terminals and a new and economic development of the transport sec- that achieved independence from the former So- air traffic control tower were constructed and tor by developing Kazakhstan’s aviation industry. viet Union in 1991 and is the second largest coun- renovated while old and decrepit airport facilities try after Russia among the former Soviet Union were refurbished. republics with an area seven times the size of Ja- pan. With an industrial structure based on a divi- sion of labor system among the republics of the former Soviet Union, Kazakhstan specialized in producing raw materials and intermediate products, but external transport routes for products had been developed as radial networks that were basically centered on Moscow. As a result, the network was in fact inefficient, despite extremely high freight transport demand. Astana Airport

43 Region-Specific Activities and Initiatives| Central Asia and the Caucasus

treaty negotiations and to construct a and 4) the upgrade of basic social ser- social sectors and 3) the Central Asia joint government and private-sector vices. Tajikistan is located at the south- plus Japan Dialogue. framework for negotiating economic re- ern gateway to Central Asia and is lationships as a whole. Kazakhstan is improving roads that connect with the L Turkmenistan planning to ratify the Kyoto Protocol Afghanistan border through Grant Aid A Permanently Neutral Country soon and also intends to pursue joint cooperation. Cautious of Accepting ODA projects for energy conservation and Turkmenistan is a world leader in natural the use of renewable energy, and it is a L Kyrgyz Republic gas reserves. The mining and export of Cool Earth Partner with Japan. Supporting Poverty Reduction natural gas is a driving force for industry. through Economic Growth Other key industries are petroleum and L Tajikistan The Kyrgyz Republic, a country that the production and processing of raw Assisting in the Dispatch of Human is not well endowed with natural cotton. The 1995 UN General Assembly Resources to Four Priority Sectors resources and leading industries, has recognized Turkmenistan’s position as a Tajikistan has overcome many years of been exposed to intense international “permanently neutral country.” While it is internal conflict and after the final peace competition due to rapid liberalization a country of Central Asia, Turkmenistan agreement was reached in 1997, it and still suffers from a high poverty rate has adopted policies that draw a clear achieved a GDP growth rate of 7.6% in because it has not been able to main- line with other countries, but after the 2005 and has maintained a high 6–10% tain stable development. In contrast to change of presidents, it has gradually growth rate in recent years thanks to the Kyrgyz Republic’s goal of cutting stepped up diplomacy and strength- macroeconomic stabilization and struc- poverty in half by 2010, JICA has set a ened relations with neighboring coun- tural reform efforts. Formulated in April goal of promoting the reduction of pov- tries. Moreover, because of the nation’s 2009, Japan’s Country Assistance Pro- erty through economic growth based abundant natural resources, develop- gram for Tajikistan established the fol- on the transition to a market economy, ments in Turkmenistan now have a ma- lowing four priority areas of coopera- and is promoting regional cooperation jor impact on the Eurasian continent’s tion: 1) rural and industrial development; in priority support areas based on 1) gas pipeline strategy. 2) transport and traffic (road operation developing a foundation including and maintenance); 3) border control; transport infrastructure, 2) support for

Example stopped, resulting in roads in Georgia today that Georgia. The East-West Highway links Azerbai- are virtually unmaintained. The East-West corridor jan’s Caspian Sea coast with the Black Sea and is Georgia is part of a major international transport network a vital artery for the distribution of goods. The East-West Highway Improvement that connects the Black Sea and the Caspian Sea, 39.6km section of the East-West Highway that Project as well as Europe and Asia, and is a road vital to runs between Zestaponi, Kutaisi and Samtredia, the entire Silk Road region. Because it is in a state will be upgraded. Specifically, the project involves Reconstruction of the Silk Road Region and of poor upkeep and interferes with the movement 1) the restoration of an existing section of two- Further Development of Transport Network of people and the distribution of goods for the re- lane roads between Zestaponi and Kutaisi, 2) Georgia’s transport system is comprised of land gion as a whole, it cannot completely fulfill its construction of a new Kutaisi bypass and bridge, transport via roads and railways, sea transport function as a corridor. and 3) construction of a new road between primarily via Port Poti, Port Batumi and Port Supsa Furthermore, Georgia’s infrastructure has Kutaisi and Samtredia. Along with the separate on the Black Sea Coast, and air transport via two been demolished due to its armed conflict with Rus- Needs Assessment Study for the Reconstruction domestic airports. Of these, land transport forms sia that broke out around South Ossetia in August Assistance Project in Georgia that is currently the core of Georgia’s transport system and 2008. As a result, Japan has committed to provide a underway, JICA plans to come up with Grant Aid is expected to steadily expand as a result of maximum of about US$200 million in ODA loans for and Technical Cooperation projects that work economic development. the restoration of Georgia’s infrastructure. synergistically with this project and step up However, with the collapse of the former In association with this, JICA will implement support for Georgia. Soviet Union, financing from the Soviet Union the East-West Highway Improvement Project in

East-West Corridor Project

Kutaisi Chognari Nafushirugele Section administered by JICA Samtredia PKG1 Kutaisi PKG2 5.2km 2.4km 2-lane (up-grade) Section administered by the World Bank 2-lane Black Sea Poti PKG3 Zestaponi Samtredia 32.0km Kutaisi bypass 2-lane Zestaponi Batumi Capital: Tbilisi Section administered by the Asian Development Bank (ADB)

44 Region-Specific Activities and Initiatives| Central Asia and the Caucasus

L Azerbaijan L Armenia L Georgia Priority Implementation of Assistance in Promoting Free Expecting Economic Spillover from Technical Cooperation in Trade System in Two Areas the Oil Pipeline Non-Petroleum Fields Having hammered out a path to reform Georgia, poor in natural resources and Against a backdrop of petroleum devel- early on and being the first CIS country with cattle breeding and agriculture as opment in the Caspian Sea, the devel- to achieve land privatization in 1991, its key industries, has experienced the opment of non-petroleum sectors Armenia has pursued a free trade sys- disintegration of inter-industry relations, including agriculture in Azerbaijan— tem, becoming a member of the WTO growing ethnic conflict since gaining a country that is both economically and in 2002. Japan has extended assis- independence, and the greatest eco- politically stable—has become a press- tance to Armenia primarily to upgrade nomic decline among CIS nations. Al- ing issue in order to effect and maintain infrastructure and develop human re- though on a recovery track, the devel- continuous economic development. Aid sources with a view to solving such opment of domestic industries and from Japan to Azerbaijan has covered problems as human resource short- small and medium-sized enterprises agricultural assistance to increase food ages, aging economic infrastructure and the improvement of educational, production as well as agreements in the and environmental deterioration. JICA’s health and public services, which con- three areas of upgrading the economic efforts have focused on the promotion tinue to decline in quality due to finan- infrastructure, social sectors, and devel- of employment and income improve- cial distress and aging infrastructure, oping human resources. In order to re- ment (promoting the private sector and have become major issues. Georgia is spond to these issues, JICA has carried small and medium-sized enterprises) situated at the center of the transit out efforts centered primarily on income and enhancement of access to public route of the BTC pipeline, which trans- improvement and promotion of employ- services (health and medical services ports oil from the Caspian Sea, and ment as well as enhancement of the and local development). prospects for an economic ripple effect quality of and access to public services. from transport revenue are increasing.

Example As these reforms progress, Uzbekistan has Uzbekistan asked Japan—which until Nursing Education Improvement now has dispatched spe- Project cialists in nursing education and nursing management Revision of the Nursing Education Curriculum fields to Uzbekistan on a toward Client-Oriented Nursing short-term basis—for Uzbekistan, boasting the largest population in additional cooperation in Central Asia, gained independence from the for- nursing education and mer Soviet Union in 1991. Since 1994, Japan has nursing management. provided Grant Aid for materials and equipment As a result, from July for medical care, but the traditions of the former 2004 to June 2009, JICA Soviet Union remain strong in medical practice had been engaged in a and there have thus been problems with the qual- project to improve nursing Practice using a doll ity of service. In particular, the tendency is still education by shifting away strong for nurses, who play an important role from disease-focused wherever medical services are provided, to play a nursing education, which has been predominant A new curriculum has been introduced using the peripheral role in doctors’ medical practices. in Uzbekistan, and adopting the concept of First Republic Medical College as a model school. In 1998, as a reform in the health system, “client-oriented nursing,” the current interna- It is hoped that this new curriculum will spread efforts were made to upgrade the education of tional standard. nationwide. medical professionals in Uzbekistan. As part of Specifically, client-oriented nursing is the these efforts, a restructuring of the nurse educa- provision of nursing care and life support in line tion system was begun in order to raise nursing with the health needs of medical service clients quality. Nursing education has been standardized during childhood, early adolescence, adulthood into a three-year program of study following nine and old age. years of general education. As a period of profes- As part of the project, a Nursing Education sional education following this, a three-year nurs- Center has been formed within the First Republic ing program is being offered in medical schools. Medical College and a new curriculum has been All domestic nursing schools were elevated to col- drawn up by the Curriculum Committee and lege (professional trade school) level status as of Working Group composed of the Ministry of 2005. The number of medical vocational high Health, Ministry of Higher and Special Education, schools has increased due to a larger number of teachers of medical colleges and medical voca- students, resulting in 76 schools nationwide. tional high schools, and relevant parties in Japan.