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Download Strategeast Westernization Report 2019 ABOUT STRATEGEAST StrategEast is a strategic center whose goal is to create closer working ties between political and business leaders in the former Soviet countries outside of Russia and their peers in the U.S. And Western Europe. StrategEast believes nations from the former Soviet Union share a heritage that has resulted in common obstacles to the formation of stable, effi cient, market-oriented democracies. We hope to appeal to political, business, and academic leaders in post-Soviet countries and the West, helping them better understand one another, communicate across borders, and collaborate to support real change. Our work is focused on the 14 former Soviet states outside of Russia. This post-Soviet, non-Russia (PSNR) region includes: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. StrategEast focuses on six key issue areas that are especially infl uential to the transition to Western political and economic systems: fi ghting corruption, implementing a Western code of business conduct within a post-Soviet business environment, modernizing infrastructure, promoting independent LEARN MORE press and civil society, energy transparency, and leadership impact. AT OUR WEBSITE: www.StrategEast.org StrategEast is a registered 501c3 based in the United States. THIS REPORT Ravshan Abdullaev Salome Minesashvili Maili Vilson WAS WRITTEN BY: Ilvija Bruģe Parviz Mullojanov Andrei Yahorau Tamerlan Ibraimov Boris Navasardian Yuliy Yusupov Gubad Ibadoghlu Sergiy Solodkyy Zharmukhamed Zardykhan Leonid Litra Dovilė Šukytė © 2019 StrategEast. All rights reserved. ISBN: 978-0-578-46255-4 “StrategEast Westernization Report 2019” is available on our website: www.StrategEast.org StrategEast 1900 K Street, NW Suite 100 Washington, D. C. 20006 Concept: Michael Sheitelman Project coordinator: Tatiana Slynko [email protected] Design: Vitaly Tchirkov www.StrategEast.org Page proof: Constantin Leites TABLE OF CONTENTS Introduction 6 Armenia: Post-revolutionary Westernization – an Equation with Four 8 Unknowns Azerbaijan: Has the Country Made Signifi cant Progress Improving 13 Its Business Climate? Belarus: Can the ICT Sector Drive Economic Development? 18 Estonia: The E-State Has Overcome Its Biggest Challenge to Date 22 Georgia: Where Does Constitutional Reform Lead? 26 Kazakhstan: The Latinization of the Kazakh Alphabet – 31 Two Steps Forward, One Step Back Kyrgyzstan: Starting the Fight against Corruption 35 as a Consequence of Democratic Processes Latvia: Legal Westernization and Westernization of the Mindset 40 Lithuania: At the Center of Fintech and Blockchain Innovations 44 Moldova: Is Moldova playing with democracy? 49 Tajikistan: Westernization and the Problem of Religious Radicalism 54 Turkmenistan: Restricting Young People’s Ability 58 to Travel Abroad Widens Distance from Westernization Ukraine: “Yes” to the Existence of the High Anti-Corruption Court! 61 Uzbekistan: Tax Reform – An Important Step Towards Civilized Rules 66 of Business Greater Economic Development Bibliography 71 Authors’ Biographies 82 INTRODUCTION Exactly one year has passed since publication of the StrategEast Westernization Index 2018 – a research project which, for the fi rst time ever, compared the degree of adherence to Western values in post-Soviet non-Russia (PSNR) countries. Today it is my pleasure to present the Westernization Report – a document in which our experts from the fourteen PSNR countries describe events which will most likely affect the degree of westernization in their respective countries. Our experts selected a wide variety of events – from the transition to the Latin alphabet in Kazakhstan to blockchain innovations in Lithuania, and from tax reform in Uzbekistan to the peaceful revolution in Armenia. It is not easy to discern clearly defi ned tendencies in the PSNR region’s development from this vibrant variety; however, I would like to draw two critically important conclusions. First, the region as a whole is demonstrating positive trends. In nine of the fourteen countries studied, events selected by our experts will undoubtedly facilitate further progression towards Western values. In two cases – the constitutional reform review in Georgia and measures to battle corruption in Kyrgyzstan – it would be premature to make any inferences about potential outcomes. In the process of implementing those legislative measures, much will depend not just on the authorities, but in equal measure on the activeness of the civil society which will need to “protect” the results of those reforms. 6 STRATEGEAST WESTERNIZATION REPORT 2019 The Westernization Report allows StrategEast and other adherents of Western values to view the future of the entire PSNR region with cautious optimism. The second important tendency is that, in the Overall, the Westernization Report allows StrategEast majority of countries, events which had a positive and other adherents of Western values to view the effect on the degree of Westernization were initiated future of the entire PSNR region with cautious optimism. by the government. While it was logical to expect that The Baltic states have achieved the most progress, and from the obvious leaders of our rating – Estonia and in a number of areas of state structure have themselves Latvia, and to some degree from Ukraine – the actions become models for the West. Government agencies of the governments of Kazakhstan, Uzbekistan, in the countries of Eastern Europe and Transcaucasia Azerbaijan, and Belarus once again proved that “top- are slowly but consistently bringing their legislatures down westernization” was possible in countries with into conformity with the principles of the rule of law a wide variety of political systems. and protecting private property rights. In Central Asia, I dare hope that this past year StrategEast also the processes of Westernization have intensifi ed in the contributed to the Westernization of post-Soviet “big” countries – Uzbekistan and Kazakhstan – which countries. We had the opportunity to present can lay the foundation for analogous processes in the our position and our values to representatives more conservative Tajikistan and Turkmenistan. of governments, civil societies, and the business Will these outlined trends be confi rmed or disproven? community at numerous conferences, panels, and The StrategEast Westernization Index 2020, to be personal meetings in Uzbekistan, Kazakhstan, published next year, will examine that issue quantitatively. Kyrgyzstan, Moldova, Ukraine, Belarus, Georgia, Azerbaijan, and Latvia. The number of those presentations is in the hundreds. Anatoly Motkin I trust that we were able to convey to many of Founder and President those with whom we met the advantages gained StrategEast by following the principles of the rule of law and protecting private property rights in building a state and a society in any given post-Soviet country. We also made an effort to explain those advantages, including the economic benefi ts of following the listed principles, to the participants of our Young Leadership Program – young deputy ministers from PSNR countries who completed an internship organized by our Center in the U.S. STRATEGEAST WESTERNIZATION REPORT 2019 7 ARMENIA Post-revolutionary Westernization - an Equation with Four Unknowns by Boris Navasardyan a polar opposite to the preceding two-three years, which were filled with numerous events tied into the 2018 was a year of deep core changes in Armenia’s development of relationships with various partners. internal politics. There is a high degree of likelihood that these changes will lead to the rapprochement of On one hand, in July 2017, the parties completed the its state and society systems with Western models. process of ratifying the “Agreement on the creation Conversion of these changes into institutional transitions of a joint force of the Russia and Armenian military.”1 must have an effect on the political component of the On the other hand, on April 24, the European Union StrategEast Westernization Index and translate into a (EU) and the Republic of Armenia (RA) signed “The broad distribution of Western lifestyle characteristics. Comprehensive and Enhanced Partnership Agreement” Armenia’s “Velvet Revolution” relegated to the (CEPA).2 In doing so, the country’s leadership partially background many foreign policy and international satisfied the expectations of those who supported relations issues. In this sense, 2018 ended up being and encouraged European integration of Armenia and Armenian “Velvet Revolution.” Yerevan, Armenia. August 17, 2018. Image source: Parzzival / Shutterstock.com 8 STRATEGEAST WESTERNIZATION REPORT 2019 | ARMENIA Armenia-EU cooperation is also about What obstacles still remain in the way the political will to implement our mutual of active implementation of the EU- commitments. It is essential for both sides to Armenia framework agreement in 2019? bring palpable results for our citizens, boost people-to-people contacts, as well as provide The Armenia-EU Comprehensive and increased opportunities for safe and Enhanced Partnership Agreement (CEPA) is legal migration. at the core of the smooth implementation of Armenia’s reform agenda. This landmark In that context, Armenia looks forward to document, which has not only laid the launching the Visa Liberalization Dialogue, new groundwork for our bilateral relations, an important mutual commitment, which is but also become an important instrument clearly
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