The European Unions TRACECA programme for Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine,

Uzbekistan

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

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T TA AB BL LE EO OF FC CO ON NT TE EN NT TS S
1. Azerbajijan ............................................................................................................. 5 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 4.1 Country Overview........................................................................................... 5 Geography ...................................................................................................... 5 Form of State .................................................................................................. 5 Major political parties .................................................................................... 6 Legislative Branch ......................................................................................... 7 Executive Branch ........................................................................................... 7 Judicial Branch............................................................................................... 8 Economy ......................................................................................................... 9 Webpages ....................................................................................................... 9 Country Overview......................................................................................... 11 Geography .................................................................................................... 12 Form of state................................................................................................. 12 THE PRESIDENT........................................................................................... 12 THE EXECUTIVE BRANCH .......................................................................... 12 THE LEGISLATIVE BRANCH ....................................................................... 12 THE JUDICIAL BRANCH .............................................................................. 13 Economy ....................................................................................................... 13 Websites........................................................................................................ 14 Country Overview......................................................................................... 16 Geography .................................................................................................... 17 Form of State ................................................................................................ 17 The allocation of power - Legislative Branch ............................................ 17 Executive Branch ......................................................................................... 18 Judiciary Branch .......................................................................................... 18 Milestones in Georgia\'s Transformation to a Market Economy.............. 19 Webpages ..................................................................................................... 19 Country background .................................................................................... 21

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

3. Georgia ................................................................................................................. 16

4. Socio-political situation in the Republic of Moldova ....................................... 21 4.2 RESPONDING TO THE CURRENT CRISIS ................................................. 23 4.2.1 Trends in poverty .................................................................................... 24

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4.3 The social sector in Moldova ...................................................................... 24 4.3.1 Social Assistance Reform in Moldova ..................................................... 24 4.4 5.1 5.2 6.1 6.2 6.3 7.1 7.2 7.3 7.4 8.1 8.2 8.3 8.4 9.1 Socio-Political Context ................................................................................ 27 Economic Situation ...................................................................................... 31 Socio-Political Context ................................................................................ 32 Socio-political context ................................................................................. 36 Economic situation ...................................................................................... 37 Used references: .......................................................................................... 38 Socio-political context ................................................................................. 40 Economic situation ...................................................................................... 41 Main political issues .................................................................................... 41 Used references: .......................................................................................... 42 Socio-political context ................................................................................. 44 Economic situation ...................................................................................... 45 Main transport issues .................................................................................. 45 Used references: .......................................................................................... 46 Socio-political context ................................................................................. 48 5. Country background ........................................................................................... 31

6. BRIEF REPORT OF POLITICAL SITUATION IN KAZAKHSTAN ....................... 36

7. BRIEF REPORT OF POLITICAL SITUATION IN KYRGYZSTAN ....................... 40

8. TAJIKISTAN ......................................................................................................... 44

9. TURKMENISTAN .................................................................................................. 48 9.2 Economic situation ...................................................................................... 49 9.2.1 Foreign trade ........................................................................................... 49 9.3 9.4 9.5 10. Main political issues .................................................................................... 49 The structure of Ministry: ............................................................................ 50 Used links: .................................................................................................... 50 UZBEKISTAN .................................................................................................... 52

10.1 Socio-political context ................................................................................. 52 10.2 Economic situation ...................................................................................... 53 10.3 Used references ........................................................................................... 54

N N..B B.. wherever it is read EC Regulations should be Read EU regulations

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Caucasus - Azerbajan

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1.
1.1

AZERBAJIJAN
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 capita : 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 power is 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 Nakhchevan Autonomous 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 political 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 are limited 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

Executive 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 of the 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 multimodal (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.
2.1

ARMENIA
Country Overview

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 principle of 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 of Armenia,

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 responsibility of 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. In particular, 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 and agencies 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.
3.1

GEORGIA
Country Overview

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 the south-east, Armenia in the south, Turkey in the south-west and the Black Sea in the west. Georgia is distinguished by its complex and varied relief. The north is dominated by the mountains of the Great Caucasus Range, while Southern Georgia is traversed by the South Georgian Plateau. From the shore of the Black Sea in the west to the Alazani Valley in the east run the inter-mountain lowlands of Georgia. The mountain range Rikoti divides the country into two parts differing in climate: Eastern Georgia and Western Georgia. The highest peak is Shkara (5198m), the lowest place (-1.5m) is the environs of lake Paliastomi in the Kolkheti Lowland. Forests constitute 38% of the country's territory and cover 2.7million hectares (6.6 million acres). 3.3 Form of State

Georgia has been a democratic republic since the presidential elections and constitutional referendum of October 1995. In February 2004 the Constitution was amended to provide for a Presidential/Prime Ministerial structure of executive 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

Executive 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 of Internal 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 suffrage by 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 756 licenses 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, RussianGeorgian 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 Total Disposable income (average monthly per capita), lei 839,6 Urban 1000,6 Rural 723,8 Total 1022,6 2007 Urban 1212,4 Rural 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, reaching approximately 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 full set 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 of rationalization 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 the following: 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 lowincome 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 social protection 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 and cooperation 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 targeting of 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 social assistance 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-Political 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 of 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 very polarized. 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 seats PCRM has 48 18 PLDM 15 PL 13 7

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 52 deputies 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 forces

Seats

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

Alliance for European Integration

53

Party of Communists

48

Prime Minister of Moldova Constitutional Court of Moldova confirmed earlier on September 17, 2009 the legitimacy of Mihai 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 the Ukrainian population lived under 2 US dollar a 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-Political 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 fractions Party of Regions fraction in Verkhovna Rada of Ukraine Quantitative Date composition 172 23/11/2007 23/11/2007

Fraction "The Yulia Tymoshenko Bloc (political party" AllUkrainian Union "Fatherland" Ukrainian Social-Democratic 153 Party, Party "Reforms and Order") Bloc fraction "OUR UKRAINE - People's Self-Defense: People's Union" Our Ukraine "Political party" Forward, Ukraine! "People's Movement of Ukraine, Ukrainian People's 71 Party, Ukrainian Republican Party" Sobor ", ChristianDemocratic Union Party, European Party of Ukraine , Civic party "PORA", Party of Motherland Defenders Faction of the Communist Party of Ukraine 27 Faction Lytvyn Bloc (People's Party, Labor Party of 20 Ukraine) in the Verkhovna Rada of Ukraine MPs, who do not belong to any faction 6

23/11/2007

23/11/2007 23/11/2007

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 Minister Yulia 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 speaker Volodymyr 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-political context

Kazakhstan is situated at the junction of 2 continents Europe and Asia. The Capital of Kazakhstan 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 the state organizations and in the local control authorities. As of July 1, 2006 the population of Kazakhstan is 15.301.400 people. According to the forecast of the Social and Demographic Statistics Department till the end of 2009, the quantity 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 the Republic is Islam of Sunni character. The Russian Orthodox Church is the main Christian denomination. Also the Protestant, Roman, Catholic and other religions are represented 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 of Kazakhstan 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 of government prime-minister Karim Massimov. The higher representative body of the Republic, executing the legislative functions is the Parliament of the Republic of Kazakhstan. The Parliament consists of 2 chambers acting 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 CIS countries. The banking sector, in its development, is rather ahead the indicators of other 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. For the 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
7.1 Socio-political context

Kyrgyzstan is situated on northeast of the Central Asia. Generally borders are on natural 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 of government is President Republic. Executive authority is President and Government. 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 of Justice 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, in May 2005 the quantity was 40. The most popular are: Agricultural-labour party Party of national renaissance Asaba Communistic party Progressive-democratic party Erkin Kyrgyzstan Party of democratic movement of Kyrgyzstan PDDK Socialistic party Ata meken Republican national party Party of unity of Kyrgyzstan

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7.2

Economic situation

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 equal 173 billion 275.2 million som. At that, during 11 months of 2009, the decreasing of industrial 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 political 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 largescale 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 cooperation between 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.

7.4

Used references:

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.
8.1

TAJIKISTAN
Socio-political context

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 nonMoslem 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

8.2

Economic situation

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 road Kulma-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.

8.4

Used references:

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.
9.1

TURKMENISTAN
Socio-political context

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 his name 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

Economic situation

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 political 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 foreigneconomic 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
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The structure of Ministry:

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 more than 27.555 million people. The major part of Uzbekistan is Uzbeks, Russians- 5,5%, Tajiks -5%,Kazakhs -3%, Tatar and other ethnic groups. Kara-Kalpaks totals 2,5% and have its autonomy. 88% of Uzbeks practise the Islam for the most part of Sunni character. Denomination: Muslims-Sunnits -90%, Orthodox -10% The monetary unit is Summ. Political system of Uzbekistan. Uzbekistan is the legal democratic state, according to the constitution. The head of state is President. The superior legislative body is Oliy Medjilis of the Republic of Uzbekistan executing the legislative power. Oliy Medjilis consisting of 2 chambers legislative chamber (lower chamber) and Senat (upper chamber). Makhallya system of national self-government. According to the decree of the President as of 1988, Makhallya committees and boards began to revive, function of which is control over social protection and social maintenance for the most pure population levels in separately taken micro districts. The leading figures are: President - Islam Karimov, Prime-Minister - Shavkat Mirziyaev. Opposition parties All opposition parties of Uzbekistan: Birlik, Erk, Islamic movements of Uzbekistan are prohibited, except one Ozod dehkonlar (translation Free peasants) it is not registered. The official uzbek propaganda connected them with extreme Islamism, but Birlik, Erk are more national parties, and Ozod dehkonlar temporal peasant party. There are 5 political parties officially registered in Uzbekistan: Social Democratic party of Uzbekistan Adolat Democratic party of Uzbekistan Milliy tiklanish
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Movement of entrepreneurs and businessmen Liberal-democratic party of Uzbekistan National democratic party of Uzbekistan

10.2 Economic situation

For the period Jan-June 2009 growth of Uzbekistan economics totaled 8.2% in comparison with analogue period of last year. According to GDP growth rate Uzbekistan has one of the leading places in the world. GDP of Uzbekistan is increasing due to the industrial production. In the first half-year of 2009 the increase of GDP totaled 8.2%, volume of industrial production 9.1%,production of consumption goods -13.1%,agriculture -4.6%, services-18.5%, construction works-32.5% The mining industry is very developed: copper,, silver, gold, lead, zinc, wolfram, iron, manganese and other. Large reserves of natural gas, sulfur, ozocerite, common salt etc. The leading fields of manufacturing industry are: chemical (production of nitrogen and phosphoric fertilizers, chemical fibers and plastic materials), machinery (mainly agricultural and textile industry) and also electronic, radio electronic, instrument engineering and aircraft industry, production of chemical and oil equipment, textile and light (cotton-cleaning, cotton, silk etc) flavoring industry (including fruit and vegetable, canning and butter-making and fatty) The main foreign trade partners are: Russia, states of Central Asia, Kazakhstan. Foreign-economic connections with Turkey, Iran, India, China and European countries are actively developed. The Uzbek Agency of Automobile and River Transport, created by the Decree No. 296 of the Cabinet of the Ministers of the Republic of Uzbekistan as of July 11,1998, is the body of the state management, regulation and control in sphere of motor and river transport. The Head of the above Agency is Abduvaliev Abdurakhmon The Uzbek Agency of Automobile and River Transport is the competent body entrusted to carry out the expert development of international agreement projects and providing with fulfilment of obligations of international agreements for transportation by motor and river transport.

At present the Government of the Republic of Uzbekistan signed 27 intergovernmental and 1 interdepartmental agreements in sphere of the international motor transportations with foreign states.

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According to the agreements above the authorized competent state body is the Uzbek Agency of Automobile and River Transport.

10.3 Used references

http://geo-tour.net/Asia/uzbekistan.htm

http://ru.wikipedia.org/wiki/%D0%A3%D0%B7%D0%B1%D0%B5%D0%BA%D0%B8% D1%81%D1%82%D0%B0%D0%BD

http://www.eurasianhome.org/xml/t/databases.xml?lang=ru&nic=databases&country=1 91&pid=112

http://www.lenta.ru/news/2009/07/17/gdp/ http://russian.people.com.cn/31519/6705771.html http://uzaart.uz/rus/

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