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Home , Caucasus, Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan

-Specifi c Activities and Initiatives Central and the Key Aid Strategies

Supporting Regional Cooperation for Stable Economic Development Initiatives The and the Caucasus region, located former in 1991. Concrete roughly in the center of the Eurasian , comprises Achieving balanced development in the entire region fi ve Central Asia countries — , the Kyrgyz is an important global issue because of the increase in , , , and — economic disparities within this region. Furthermore, and three Caucasus countries — , , , a country that is still unstable, is located Activities and Initiatives

and — that gained their independence from the nearby. Region-Specifi c

In this region, JICA is concentrating on regional cooperation and JICA is providing aid in three areas: (1) improving and building the promotion of democracy and market economies. Cooperation economic infrastructure for the and transportation priorities are: (1) programs for improving electric-power and sector, such as modernizing thermal-electric power stations; transportation infrastructure in Central Asia and (2) programs to (2) supporting human resources development and system- Activities and Initiatives enhance market economies by activating the private sector. building that contributes to activating the private sector by nurturing human resources for businesses and other measures Issue-Specifi c through the Uzbekistan- Center for Human Development; Country Overviews and Priority Issues and (3) providing cooperation in the priority fi elds of improving agricultural infrastructure, which raise income levels in rural Uzbekistan areas, and expanding and improving health care. Uzbekistan’s economy is underpinned by natural resources

such as and , and by the export of . To Kazakhstan Other Activities and

achieve sustainable economic growth in future, the country Kazakhstan, endowed with abundant natural resources, Initiatives imports technology from other countries and promotes including the ’s second-largest reserves is advancement and diversifi cation of its industries. seeking to change its resource-dependent economic structure, JICA’s basic policy is to provide support for promoting and pursuing industrial diversifi cation to achieve balanced and economic growth and to narrow disparity. Under this policy, sustained economic growth.

JICA Programs in Central Asia and the Caucasus (Fiscal 2015)

Central Asia and the Caucasus Total value of JICA programs Composition Total: 35,710 (Unit: millions of yen) ratio (Unit: millions of yen) Uzbekistan 18,931 53.0% Azerbaijan 6,015 16.8% Georgia 4,086 11.4% Kyrgyz Republic 3,966 11.1% Tajikistan 1,893 5.3% Kazakhstan Armenia 552 1.5% Kazakhstan 229 0.6% Turkmenistan 36 0.1% Azerbaijan

Georgia Uzbekistan Kyrgyz Republic

Armenia Turkmenistan Tajikistan The fi gures show the total value of JICA programs in each country including Technical Cooperation (Training Participants, Experts, Study Teams, Provision of Equipment, JOCV and Other volunteers, and Other costs), Loan Aid (Disbursements), and Grants (Newly concluded G/As) in fi scal 2015. Note: • Figures exclude JICA’s cooperation for multiple countries and/ multiple and international organizations. • This map lists only countries and regions with program results in fi scal 2015.

JICA Annual Report 2016 39 Concrete Initiatives _ Region-Specific Activities and Initiatives and Central Asia

The level of Kazakhstan’s economic development is high, and people’s lives, in the border and Afghanistan JICA’s basic aid policy is to support the balanced socioeconomic [ see the Case Study below]. development of the country. JICA selects and implements proj- ects in the sectors where Japan’s knowledge and technology Kyrgyz Republic can be utilized, including disaster risk management, After its independence from the former Soviet Union, the conservation, and the promotion of small and medium-sized Kyrgyz Republic was one of the first countries in the region to enterprises (SMEs). Further, rapidly developing Kazakhstan actively pursue a . However, as a mountainous is building a system to provide support to other countries and country with few significant natural resources other than gold, play the role of a donor country. In fiscal 2014, JICA conducted the Kyrgyz Republic has been unable to attain stable economic a seminar to support the country’s transformation to a donor growth. The basic policy of JICA’s assistance is to contribute country. to sustainable and balanced economic growth that will support the establishment of democracy in the country. With that Tajikistan in mind, JICA is focusing on the priority fields of (1) building Neighboring Afghanistan with a lengthy 1,344-km border, transportation infrastructure and (2) developing and Tajikistan is positioned at the juncture of Central Asia and business. Therefore, JICA is providing aid such as road and Southwest Asia. A civil war broke out in the year following bridge improvements, aid to strengthen road administrative and independence from the former Soviet Union. The country’s maintenance capacity, the One One Product approach, economy and society deteriorated until the 1997 peace accord support for agriculture promotion, and human resources that ended the war. Currently Tajikistan is working on achieving development for the business sector through the Japan Center economic and social stability, enacting structural reforms, and for Human Resources Development. improving the living standard of its people. JICA’s basic policy is to contribute to Tajikistan’s nation Turkmenistan building, which will to the sustainable socioeconomic Turkmenistan has been strengthening ties with the United development of the country. Priority areas for assistance include States, , and its neighboring countries, with its economy (1) improving rural development, including essential social supported by large reserves of natural gas. JICA’s cooperation services in Khatlon , bordering on Afghanistan; and concentrates mainly on supporting the development of the (2) establishing transportation and small-scale electric power economy and society through providing training in such fields infrastructure at the crossroads of Central Asia and Southwest as transportation, health care, agricultural development, and Asia. In addition, JICA cooperates with other international promotion of SMEs. The Technical Cooperation Agreement was organizations to achieve safety and stabilization, and to improve signed between the governments of Japan and Turkmenistan in

Case Study The Project for Livelihood Improvement in Tajik- Cross-border Areas (LITACA)

Sharing Knowledge of Communities across the Border JICA is providing ODA Grants, in collaboration with the Development Programme (UNDP), to promote stability and of the region by improving livelihoods in Tajik-Afghan rural border communities in both countries.

Implementing Various Sub-projects and persons with disabilities, on Community Infrastructure, and expansion of chances for Vocational Training, etc. employments and economic The regions along the border of the two opportunities by adoption of the countries are important areas for the stability One Village One Product approach; of Central Asia. While they enjoy various and (3) promotion of cross-border socioeconomic opportunities, including the trade by establishing cross-border possibility for cross-border trade, there is a markets that are accessible from In Village in Tajikistan, access to safe became possible by lack of basic community infrastructure, and communities in both countries. redeveloping a dilapidated water supply system. employment and economic opportunities for Decisions on which sub-projects © Copyright 2015 United Nations Development Programme residents are limited. are to be implemented are made LITACA is implementing various sub-projects in discussions in each local community. ways to improve their own project management. that contribute to improvement of livelihoods of Furthermore, the project proactively carries By supporting communities on both sides the local residents in Tajik-Afghan cross-border out mutual learning, such as information of the border with this mutual approach, areas. More specifically, the objectives of the exchange and experience exchange visits the project, among other objectives, aims to sub-projects include (1) development of basic between the two countries. There are positive create an effective assistance program in which community infrastructure such as schools, results, as seen in an example where Afghan experiences and knowledge that have been clinics, and water supply; (2) vocational project stakeholders visited and observed a gained through implementation of the project training where training targets include women relevant project site in Tajikistan and identified in both countries are shared.

40 JICA Annual Report 2016 Concrete Initiatives _ Region-Specific Activities and Initiatives East Asia and Central Asia

September 2013. Based on this agreement, the first technical areas and provincial areas, and the rates in rural areas is cooperation project in Turkmenistan, which is planned to start in increasing. In addition, given the dilapidated infrastructure built 2016, will support enhancement of resilience against during the Soviet era and Armenia being an earthquake-prone disasters. country where many active faults exist, the issues facing Armenia are infrastructure improvement and the strengthening of disaster Azerbaijan prevention and reduction measures. With large reserves of oil and natural gas, Azerbaijan has Therefore, JICA is focusing on assistance for economic built up its international standing as a natural resource exporter infrastructure, rural development and strengthening of disaster Initiatives to neighboring countries and to Europe. However, the country prevention measures, guided by a basic policy of achieving Concrete needs to diversify its industries to achieve sustainable economic balanced, sustainable economic growth in Armenia [ see the growth. Response to the recent decline in global oil prices is Case Study below]. also necessary. From a viewpoint that renewing economic and social infrastructure and developing human resources supporting Georgia Activities and Initiatives

industrial development are indispensable to sustaining the Situated at the crossroads of Asia and Europe, Georgia puts Region-Specific country’s economic growth, JICA is providing assistance for priority on increasing its competitiveness as a logistics hub for construction of a power plant near the capital, ; construction the Caucasus by leveraging its geopolitical predominance. While of water and sewer systems in provincial ; and training the country is actively involved in attracting inward investment in fields such as health care, promotion of SMEs, disaster risk by promoting democratization and the market-oriented management, and agriculture. economic reforms of recent years, domestic development of its export industry is regarded as a challenge. JICA puts focus Activities and Initiatives Armenia on (1) building economic infrastructure that is a base to boost From an early stage after its independence from the former economic growth and (2) stabilization of people’s livelihoods Issue-Specific Soviet Union, Armenia has pursued a market economy. In 1991 that contributes to stabilization of the society and provides Armenia allowed of land as the first former Soviet assistance for improvement of the East- Highway, a lifeline Union country outside the Baltic nations. Furthermore, the country for the country’s economy, as well as for training programs for carried out reforms such as privatization of state enterprises, local industry development and the creation of a more attractive succeeded in joining the in 2003, and business environment.

is firmly progressing in implementation of its open trade system. Other Activities and

Meanwhile, approximately 60% of GDP is concentrated in the Initiatives capital , , resulting in a wide disparity between urban

Case Study Armenia: Project for Development of Local Production and Promotion of Local Brands

Added Value for Local Brands by Making Use of the One Village One Product Movement

JICA provided assistance to create local brands by making use of the One Village One started business. Product movement, add value to local brands, improve market competitiveness, develop Furthermore, although the cheese products SMEs, and create jobs in seven of the ten in Armenia. of Khndzoresk village in Syunik Province had been well-known nationally, it was identified Toward Development of SMEs and demand was not fully met, as evidenced by a that consumers demand more hygienic cheese Creation of Jobs lack of accommodations facilities for tourists products for safe consumption by children. The Based on a market survey conducted by the and room for improvement in customer project implemented food hygiene management project that confirmed a potential demand for service. The project conducted training on applying the 5S principle—Sort, Set, Shine, olives, Bagratashen village in opening businesses with a dedicated focus Standardize, and Sustain—to produce safer was highlighted as a place with rare conditions on hospitality improvement. After the training, products. This resulted in the production suitable for olive cultivation, and the cultivation eleven facilities, including B&Bs (small of products in a cleaner and more hygienic started. To produce products with market accommodations suppliers) and restaurants, environment. competitiveness, the project conducted training on olive processing techniques. Products with carefully designed packaging were displayed at a food exhibition held in Yerevan, the capital, in 2015, and gained a good reputation. Meanwhile, the Tatev had the longest cableway in the world (at the time of the project), which offered gratifying views of a monastery with great historical and cultural Olive products that were developed based on value as well as natural attractions. However, a market survey JICA’s market survey revealed that potential A B&B that started business in the Tatev area

JICA Annual Report 2016 41