01Asia 12/19/2002 WSJ.com - International Commentary October 27, 2000 Eurasia Bends to Russia's Will By Vladimir Socor, a senior analyst with the Washington-based Jamestown Foundation. Earlier this month, the leaders of Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan signed the founding documents of a Eurasian Economic Community (EAEC). A meeting of the prime ministers in Kazakhstan's capital Astana on October 6, followed by a conclave of the five presidents in Kyrgyzstan's capital Bishkek five days later, put the final seals of approval on the creation of that would-be bloc. Russian President Vladimir Putin initiated and pushed for this project, with his ministers as main drafters of the documents. The five signatory countries are members of the Commonwealth of Independent States, that ineffectual club of twelve former Soviet-ruled countries. Moscow has failed in its efforts to turn the CIS into a mechanism of control over the former dependencies. The CIS never became a functional organization; instead, it has now entered a process of disintegration, as shown by the formation of such subgroups as the Russia-Belarus Union and, now, the EAEC. This new organization is to be created "on the basis of the CIS Customs Union," of which the same five countries are members. Founded in 1994 and revamped in 1996, the CU has all along existed on paper only. The EAEC's stated goals are to "bring the Customs Union to fruition by establishing, on its basis, a single economic space, a functioning common market, and coordinated economic policies." Unfortunately, the new, two-tier arrangement will only spawn new bureaucratic layers on top of the existing ones and exacerbate the dysfunctional characteristic of every CIS body. This dysfunction stems from both organizational incoherence and contradictory economic interests even among the nominal allies. Beyond purely economic considerations, however, Moscow's initiative seems designed to use the EAEC as a means of political control over the member countries' economic policies and external relations. Those goals are clearly discernible in the EAEC's main founding documents. The first document, unprecedented -- and indeed precedent-setting -in the CIS, introduces sovereignty-delegation and weighted voting. The old, lethargic CU's executive body at the deputy prime ministers' level, known as the Integration Committee, is being upgraded and expanded as the standing executive body of the EAEC. Member countries should "voluntarily delegate" to the Integration Committee certain economic policy-making functions of the national governments. The new decision-making procedure elevates Russia to a stronger position than those of the others. It institutes a voting formula dubbed "4-2-2-1-1." In any vote taking, Russia will cast four votes; Belarus and Kazakhstan, two votes each; and Kyrgyzstan and Tajikistan, one vote each. The Russian leaders argued that this formula was more than fair to the other four countries. They even maintained that Russia's economic power should have entitled that country to an "8 to 2" ratio, involving eight votes for Russia and two for the rest. The Integration Committee's decisions are to be submitted to sessions of the countries' presidents for approval. That conclave's decisions will continue to be based on the consensus principle, rather than on majority voting. But any president of a non-Russian country should find it difficult to withhold consensus to a decision that came out of the Integration Committee with a heavy stamp of Russian and allied approval on it. The second document casts the EAEC as an "international organization," empowered to represent its member countries in international economic relations -- specifically, in negotiations with "other" international economic unions and organizations. In practice, that would mean inserting a Russian-dominated central bureaucracy between EAEC's individual member countries and the international trade system. Should that come to pass, Moscow would be able to line up these countries behind it in negotiating the terms of accession to the World Trade Organization. The Russian government has all along sought to form such a group and play a stronger hand in negotiating special terms for WTO membership. Moscow would also like to use the EAEC as a means of dealing with the European Union on the collective behalf of the EAEC's member countries. At the CIS Customs Union's summit in May of this year, Mr. Putin failed to persuade member countries to give the CU the status of an "international organization" -- that is, empower its "joint" bodies to speak for the constituent countries. He now hopes to obtain such approval from the rump group of countries in the EAEC. The third document is an agreement to negotiate common terms regarding the access of goods and services from "other countries" to the markets of the EAEC countries. The apparent intent is to create a Russian-led trading bloc, one that would limit the member countries' ability to join the international economic system, and which may erect trade barriers in order to ensure Russian dominance on these countries' markets. Kyrgyzstan is the only one of these countries to be a member of the WTO. Kazakhstan is a candidate for membership. The Kyrgyz leaders hoped aloud during the EAEC summit meeting that EAEC membership and WTO membership would not turn out to be incompatible with each other. At the last two CU summits, Mr. Putin -- as prime minister in 1999 and president this year -- had asserted that Kyrgyzstan and, by implication, Kazakhstan risk countermeasures if they do not accept a "common stance" toward the WTO. The EAEC's emergence suggests that Russian policy makers are by now reconciled to a de facto division of the "CIS space" in two distinct zones: a would-be bloc under Russian leadership and the group of countries that see their future in association with the West. That latter group is the GUUAM association of Georgia, Ukraine, Uzbekistan, Azerbaijan, and Moldova. Oil- and gas-rich Turkmenistan, with its status of permanent neutrality, stays out of all CIS activities, including the creation of the EAEC. Last month in New York, the GUUAM countries' presidents agreed to work toward creating a free-trade zone of those five countries. The reformist government of Ukraine has taken the lead in that effort. The plan was discussed this week in Moldova's capital Chisinau by the National Coordinators, the first institutional creation of GUUAM. With the parallel emergence of EAEC and GUUAM, the nine-year-old CIS seems headed for a split and early demise. -- From The Wall Street Journal Europe 2 Return to top of page | Format for printing Copyright © 2000 Dow Jones & Company, Inc. All Rights Reserved. Copyright and reprint information. WSJ.com - Saving Eurasia March 21, 2001 Saving Eurasia By John E. Tedstrom. Mr. Tedstrom is senior economist at RAND and the Jacyk visiting professor of international policy at Columbia University. From 1999-2000 he was director for Russia, Ukraine and Eurasian Affairs at the U.S. National Security Council. Look out from Turkey, across the Caucasus and the Black Sea, and you see that an arc of crisis has emerged in Eurasia. The threat this poses to U.S. and European interests is real. Without high-level and strategically minded engagement, hard-won progress in the former members of the Soviet Union will erode, leading to years, if not decades, of difficult and expensive cleanup work. Every country in this subregion linking Europe and Asia -- that is, roughly, all the countries between the Polish and Chinese borders -is beset by domestic political crises, deep economic challenges, and social tensions. In most, living standards continue a decade-long decline, and mortality rates are on the rise. Drugs, corruption, and infectious diseases threaten not only the citizens of the region, but those of neighboring countries and beyond. In Ukraine, Eurasia's "keystone," we're seeing daily demonstrations against the elected president, Leonid Kuchma; in Georgia, separatist rebels continue to fight the central government of President Eduard Shevardnadze; in Uzbekistan, the autocratic government of Islam Karimov continues to battle drug traffickers and Islamic guerrillas. And so on. Reformers in the region are looking to the West and finding little support or interest. Since President Bill Clinton's abbreviated visit to Kiev in June last year, the United States has failed to give adequate high-level attention to those countries. For its part, the European Union has all but closed its doors. NATO's cooperation with its partners is critical but not sufficient. Turkey has been an important counterbalance to Russian pressure for the fragile states of the Caucasus, but its ability to play that role going forward is more limited now due to its own internal financial crisis. Strategic Vacuum Not surprisingly, Russia has stepped in to fill the strategic vacuum, even though it has little to offer these states in terms of promoting their development and integrating them into the global system of market democracies. President Vladimir Putin has used Ukraine's energy and political crises as opportunities to increase Russia's leverage and he recently visited Baku to sign a strategic partnership agreement with Azerbaijan. Elsewhere, the Russians have been balking at withdrawing their troops from Georgian military bases, and earlier this month President Eduard Shevardnadze surprised many in the West when he bowed to Russian pressure and declared that Georgia may not pursue integration with NATO in 2005 as planned, though it could remain neutral. The West has a lot at stake. The failure of these states to make progress will likely lead to renewed proliferation problems, the spread of disease and drugs, and uncontrolled migration. Even more important is this fundamental fact: the failure of democracy to take 3 root in these states, or the erosion of their independence and sovereignty, would be a strategic failure for the West and have implications for decades. This challenge demands U.S. leadership. The countries of this subregion themselves are not able to find a way out. The European Union is, as ever, preoccupied with its own transformation and, probably for related reasons, lacks a strategic vision of what Eurasia can and should become. It also appears to be intimidated by Russia. While Russia has legitimate interests in the region, it does not have the vision, the resources or the desire to promote democracy, human rights, or economic integration with the West. A strategy to address this challenge has four major parts. First, Washington and Europe should engage in a new dialogue to create a common strategic vision for countries as disparate as Ukraine, Georgia and Uzbekistan and develop a concrete policy agenda. We should then challenge governments and publics in the region to meet our renewed commitment to transition and integration with their own. Second, we must accept that what happens inside these countries matters. Our efforts to promote positive internal change in the region directly serve our international security interests, and the new U.S. administration should move quickly to take a fresh look at how it can revamp its assistance programs to make them more effective. 'Trouble Belt' Third, we should take make every effort to strengthen the reform efforts of countries that lie between Western Europe and this "Trouble Belt." This is not because they are geopolitical buffers but because they can export their success to the region. Poland plays a very important role in this regard vis-a-vis Ukraine. Turkey's role, especially with regards to immediate neighbors like Georgia and Azerbaijan, is critical. But Turkey's own transition needs support, especially from the European Union, if it is to maximize its influence. Finally, Russia must be part of the solution. Russia needs first of all to accept that the independence of its "near abroad" is a historical fact and, just as importantly, that Russia's own interests are best served if these states are successful. When Ukraine and the others prosper and integrate with Europe, new and unique opportunities are created for Russia as well. Stabilizing the region will not happen overnight. But these countries are important; their failure would be a major blow to the West and would present even bigger problems for Russia. It is in all our interests to redouble efforts to encourage their successful transformation. -- From The Wall Street Journal Europe Return to top of page | Format for printing Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved. Copyright and reprint information. The Wall Street Journal Interactive Edition March 27, 2001 International Commentary Give Central Asia a Hand By Mark Brzezinski. Mr. Brzezinski was director for Southeastern European affairs at the U.S. National Security Council from 1999 to 2001. WASHINGTON -- Concerns over Turkey's financial crisis and currency devaluation have been felt globally, but nowhere more acutely than in the new states of the Caucasus and Central Asia. For it is through Turkey, more than any other large 4 neighboring state, that the Caucasians and Central Asians hope one day to be connected to Europe. If Turkey's modernization and progress toward European Union membership sputters, the new Eurasian states will be left much more vulnerable to the tender mercies of Russia, Iran and China. U.S. policy towards the Caspian region has been based on the notion that state independence will become an enduring reality when a network of pipeline and transportation routes links the region directly to the major centers of global economic activity. The thinking is that, because the main pipelines to the region continue to pass through Russian territory, giving Moscow a strong role in determining how the new wealth is to be shared, the region remains a Russian dependency. Therefore, the cornerstone of U.S. policy has been the construction of an oil pipeline from Baku, Azerbaijan through Georgia to Ceyhan, Turkey. If the Baku-Ceyhan pipeline and other transportation links are built, no single power will have a monopoly over access to the region's wealth. Covering the Tab But the painful truth about the Baku-Ceyhan pipeline has always been that there may not be enough recoverable oil to make the project economically viable. Energy analysts estimate that the route requires six billion barrels of oil to finance the project -- and that as of now there is a guarantee of less than four billion barrels. New discoveries in Kazakhstan may put the project within reach, but the U.S. correctly expects the tab to be covered in large part by those nations that will use the pipeline. The Turkish government has concluded a contract to build its section of the pipeline for $1.4 billion dollars, and has provided limited guarantees for cost overruns. With Turkey's economy unraveling, and with fears that Turkish banks are in even deeper trouble with investors pulling out hard currency, Turkey's contribution to the Baku-Ceyhan project is uncertain. Considering this uncertainty, the Bush administration may have to decide if the pipeline is sufficiently important to U.S. strategic interests in Eurasia that it would commit U.S. money to make up any difference in cost, a "geopolitical surcharge" as it were. And even if the pipeline goes forward, the U.S. should consider other measures to undergird the sovereignty of the new states of Eurasia. First, the Eurasian states have come to realize that closer cooperation among themselves is essential to preservation of their sovereignty. The U.S. should support this positive trend. In the early 1990s, personal antagonisms between leaders of the region prevented meaningful regional cooperation. The emergence of the "GUUAM" grouping, consisting of Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova, provides the first truly independent Eurasian regional body. GUUAM has created the basis for successful collaboration on trade, economic, transportation, energy and security issues. GUUAM serves as the Eurasian equivalent to Asia-Pacific Economic Cooperation, but so far GUUAM has received minimal support from the U.S., in part because it is a counterweight to the Commonwealth of Independent States, the body Russia relies on to promote regional integration. A cooperative relationship between the OSCE and GUUAM could be cultivated, particularly in the areas of border security and economic modernization. Support of GUUAM would help these countries help themselves. Second, Western assistance should focus on "bottom-up reform," teaching the next generation of leaders how democratic governments and market economies work. Inviting young Germans to the U.S. after World War II was decisive in building a new democratic Germany. The Library of Congress's recent program to host 2,000 local and national officials from Russia to show them how American society works is a good start, but it must be done on a broader scale, encompassing other newly independent states and Central Asia. Third, Central Asia should be on the agenda in U.S. discussions with Iran. With the beginning of the new Bush administration, there is now more discussion of gradual improvement of U.S.-Iranian relations. This development would greatly increase global access to the region and, more specifically, reduce Russia's 5 monopoly over pipelines. In the long run it is in the interest of the Iranians to have a belt of Islamic states to their north serving as a zone of stability between Iran and Russia. As the U.S. slowly explores a dialogue with Iran, a U.S.-Iranian discussion on Central Asia might be useful, with an eye toward developing a plan to eventually provide direct access through Iran to Western markets. Fourth, Russia must change from being a bully in the region to being a constructive partner respectful of the sovereignty of its neighbors. Exclusion of Russia from the Caspian is neither desirable nor feasible. In fact, Russia's active economic participation in the region's development is essential to the area's stability. Positive Collaboration But Central Asian leaders increasingly feel that Russia is using the specter of terrorism and Islamic radicalism to regain control over the region, and that the U.S. is being co-opted by Vladimir Putin to join Russia's self-serving mission to act as Europe's shield against Muslim extremism. An example of more positive collaboration would be to involve Russian institutions in the development of Caspian energy resources, relying on Russian technical expertise and manufacturers in Caspian basin consortia. The U.S. and Europe have an opportunity to promote a delicate regional balance in Eurasia. This would permit the gradual inclusion of the area in the emerging global economy while the states of the region consolidate themselves. The alternative is the rise of nationalism, ethnic conflict, political fragmentation and even possibly open hostilities along Russia's southern frontiers. Bush administration policy makers might keep these wider regional concerns in mind as a new U.S. policy toward Eurasia is developed. And when deciding whether to close its doors to Turkey, European policy makers should consider the link between Turkey's evolution and orientation and the future of the Eurasian states. -- From The Wall Street Journal Europe URL for this Article: http://interactive.wsj.com/archive/retrieve.cgi?id=SB98564004160689819.djm Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved. Printing, distribution, and use of this material is governed by your Subscription Agreement and copyright laws. For information about subscribing, go to http://wsj.com The Caucasus and Central Asia BROOKINGS RESOURCES Central Asian Security: The New International Context, Roy Allison and Lena Jonson, eds. "A Not-So-Grand Strategy: United States Policy in the Caucasus and Central Asia since 1991," article by Fiona Hill "The Caspian Basin and Asian Energy Markets," background paper by Regine Spector Research on Russia, South Asia, and China The Caucasus and Central Asia Policy Brief #80—May 2001 6 by Fiona Hill [Full Brief also available in PDF format (505kb)] The Caspian Basin and the surrounding states of the Caucasus and Central Asia have crept from obscurity onto the U.S. foreign policy agenda. While the individual countries of the two regions may not be of vital interest to the United States, the countries that border them are. Four have nuclear weapons, one is an important NATO ally, and two are states that have posed direct challenges to U.S. security by their support for terrorist movements. There is great potential for interstate conflict involving these border countries. So even if the United States did not consider the Caucasus and Central Asian states of vital interest, it might be drawn in by the actions of others. Keeping the regions off the crisis response list should be a priority for the U.S. and Western governments. A number of developments in the Caucasus and Central Asia underscore the need for the United States and its allies to pay closer attention to the area around the Caspian Basin. The border states of Russia, Turkey, Iran, Afghanistan, China and, more distantly, Pakistan and India, have close links with the region and are critical to U.S. foreign policy. The Caspian Basin itself has become one of the principal points of tension in U.S.-Russian relations, and the Caucasus and Central Asia are focal points for a range of issues on America's global agenda: the rise of militant Islamic groups, international terrorism, drugs and weapons trafficking, human rights abuses, ethnic conflicts, humanitarian disasters, environmental catastrophe, and energy security. In the next two years, the Caucasus and Central Asian states could become zones of interstate competition similar to the Middle East and Northeast Asia. Economic and political crises, or the intensification of war in Chechnya or Afghanistan, might lead to the "Balkanization" of the regions. This, in turn, could result in military intervention by any of the major powers. Given the fact that both Turkey and Iran threatened intervention in the Caucasus at the peak of the Nagorno-Karabakh war in 1992-1993, this risk should be taken seriously. your view After reading this policy brief, tell us what you think. We'll post the most interesting comments. send YOUR VIEW Unfortunately, the Caucasus and Central Asian states lack the capacity to tackle crises without outside help. Economic collapse has produced social dislocation and extreme poverty. Widespread corruption and the entrenchment of aging leaders and their families have eroded support for central governments and constrained the development of a new generation of leaders. The internal weakness of the Caucasus and Central Asian states, 7 combined with brutal regional wars, makes them extremely vulnerable to outside pressure—especially from Russia. Although Russia itself is weak, it is far stronger than all the states combined, and while its direct influence over their affairs has declined since the collapse of the Soviet Union, it remains the dominant economic, political, and military force. The West will have to assist the states in bolstering their institutional capacity and in promoting cooperation among them. American engagement remains crucial given its weight on the international stage, the potential threats to its own security, and the fact that it has leverage in the regions. In spite of a few glitches, the Caucasus and Central Asian states have been receptive to the United States and are among its few potential allies in a zone where other states are not so amenable to U.S. activity. Regional countries need American moral and material support to maintain independence in the face of increasing pressures, and its guidance in dealing with presidential transition crises and addressing human rights abuses. Even with limited political and financial resources, U.S. leadership can do a great deal to defuse regional tensions and mitigate problems. However, this will only be possible if a policy is defined early and communicated clearly, if there is a particular focus on partnership with European allies in addressing regional challenges, and if Russia is encouraged to become a force for stability rather than a factor for instability in the regions. The Caucasus and Central Asia at a Crossroads This is a critical time for the Caucasus and Central Asian states because a number of negative trends could converge to bring about a crisis. Responding to that crisis requires the United States to build a long-term strategy based on a frank assessment of regional needs and of U.S. capabilities and resources. The Clinton administration's approach to the regions was ad hoc. It tackled a laundry list of initiatives in response to crises and shifting policy priorities. Issues such as oil and gas pipelines, conflict resolution, and human rights were targeted at different junctures, but an overall strategy—which was essential given limited government resources for the regions—was never fully articulated. As a result, American priorities were not communicated clearly to local leaders, resulting in frequent misinterpretations of intentions. Domestic constituencies in the United States undermined leverage in regional conflicts. Incompatible government structures and conflicting legislation fostered competition among agencies and encouraged a proliferation of parallel initiatives, while congressional mandates limited areas in which scarce funds could be applied and thus reduced flexibility. The new administration must get ahead of this negative trend in setting policy and priorities, while tackling U.S. government deficiencies directly. In crafting policy, several developments need to be considered: The civil war in Afghanistan will likely regain momentum this summer. Already, the incursion of refugees and fighters from Afghanistan into Central Asia and the activities of Central Asian militant groups have strained fragile political situations in Tajikistan, Kyrgyzstan, and Uzbekistan. Governments in Central Asia are violating human rights as they clamp down on Islamic groups in response to acts of terrorism and militant activities. In Uzbekistan, the closing of mosques, a ban on political opposition movements, and arrests of practicing Muslims have forced groups underground and increased support for insurgencies and extremists. 8 In Chechnya, the war shows little sign of resolution through political negotiation. Refugees and fighters have been pushed across borders into the South Caucasus by Russian troops, as well as into neighboring Russian regions. As in Afghanistan, an intensification of the war in Chechnya is likely this summer. Other Caucasus civil wars are in a state of "no peace, no war." Recent international efforts to resolve the conflict over Nagorno-Karabakh, led by the United States, France, and Russia, have raised expectations for a peace settlement. But, in both Armenia and Azerbaijan, opposition figures openly discuss the resumption of war if leaders are perceived to have sold out. Georgia is teetering on the verge of collapse, overwhelmed by internal difficulties and burdened by the inability to combat corruption and tackle economic reform. The dual secessions of South Ossetia and Abkhazia have split the country and spillover from Chechnya has soured relations with Russia. In winter 2000, Russia imposed new, stringent visa requirements on Georgia and temporarily suspended energy supplies over payments and a contract dispute, increasing pressure on the beleaguered country. In both Georgia and Azerbaijan, political succession has become a critical issue. Turkmenistan, Uzbekistan, and Kazakhstan will soon face the same crisis. No provisions have been made for a presidential transition, and emerging leaders have often been suppressed or forced into exile. All of these issues are exacerbated by the continued downturn of regional economies. The Asian and Russian financial crises of 1998 were a major setback, leading to the devaluation of currencies, untenable debt burdens, and the withdrawal of foreign investment. Deep-rooted corruption feeds into the economic crisis and hinders the emergence of small and medium-sized businesses that could spur market development and economic growth. For both regions, Russia is the only source of reliable employment, a significant market for local products, and, in the short-term, the principal energy supplier. In Georgia alone, approximately 10 percent of the population currently works in Russia and sends home an amount equivalent to nearly a quarter of Georgia's Gross Domestic Product (GDP). This influx of economic migrants has exacerbated ethnic tensions within Russia. Because regional governments cannot pay their energy bills, clashes over energy with Russia will continue, increasing tensions and instability. In Central Asia, high unemployment fosters the smuggling of raw materials and consumer goods, and trafficking in arms and drugs. Eighty percent of heroin sold in Europe originates in Afghanistan and Pakistan and about half of this production flows through Central Asia. The heroin trade in Central Asia has created a burgeoning intravenous drug problem and an HIV/AIDS outbreak that mimics the early epidemic in Africa. Health workers fear an escalation in a matter of months that will overwhelm local medical systems and the region's miniscule international programs. A major HIV/AIDS crisis would be the final straw for states like Tajikistan and Kyrgyzstan. 9 U.S.-Russian Tensions in the Caspian Basin Converging with this regional crisis is a sharp difference of opinion between the United States and Russia over U.S. involvement in Caspian energy development and engagement in the Caucasus and Central Asia. In Moscow, the United States is portrayed as purposefully weakening Russia's strategic position and bent on establishing Central Asia and the Caucasus as U.S. outposts. Where American policymakers speak of intervention in a positive sense to promote regional cooperation and stability, Russian political commentators speak of American "vmeshatel'stvo"—literally, negative intervention—to constrain Russia. The United States and Russia are at odds politically and semantically in the Caspian. Because approximately 50 percent of Russia's foreign currency revenues are generated by oil and gas sales, the Putin administration has made increasing Russian energy exports to Europe a priority. Caspian energy resources play a major role in Russian calculations. Gas from Kazakhstan and Turkmenistan flows into the Russian pipeline system, where it supplies the Russian domestic market and supplements Russia's European exports. Russia is the largest supplier of gas to Turkey, and has begun constructing a new Black Sea pipeline ("Blue Stream") to increase supplies. But gas flowing to Turkey from Kazakhstan, Turkmenistan, and Azerbaijan—and bypassing Russia—could pose direct competition. Over the last five years, U.S. policy in the Caspian Basin has promoted multiple gas and oil pipelines to world markets to increase export options for regional states, persuading Moscow that the United States seeks to squeeze Russia out of regional energy development. Beyond energy issues, Russia sees itself caught between NATO to the west and chaos to the south. In the Caucasus, Russia has lost its strategic defensive structures against NATO's southern flank in Turkey. Moscow perceives this loss as significant, given NATO expansion east and the alliance's willingness to use force in the extended European arena. Explicit statements of intent to join NATO by Georgia and Azerbaijan have angered Russian policymakers, along with the active involvement of regional states in NATO's Partnership for Peace Program, and the formation of a regional alliance among states that have opted out of the Russian-led Commonwealth of Independent States security structures (the so-called GUUAM group of Georgia, Ukraine, Uzbekistan, Azerbaijan, and Moldova). Although Central Asia is less a zone of competition because of shared concern about Afghanistan, which resulted in unprecedented U.S.-Russian collaboration on UN sanctions against the Taliban in December 2000, U.S. bilateral military relations with regional states still alarm Moscow. The fact that an energetic Pentagon moved faster than the State Department to engage Central Asian counterparts has led Moscow to view U.S. actions in both regions with deepening suspicion. Crafting U.S. Policy To address these issues, the Bush administration will first have to recognize that the Caucasus and Central Asia are a major factor in U.S.-Russian bilateral relations. Russia does not only view its dealings with the U.S. through the prism of NATO, missile defense, and non-proliferation issues, although these are currently the United States' top security priorities in the relationship. Russia's southern tier is now its most sensitive frontier and the Caucasus and Central Asia are its number one security priority. Having recognized this fact, the Bush administration must present a unified front when dealing with Moscow and the region, and prevent the various agencies from acting in conflict with each other. The administration needs to articulate a message that is positive and 10 inclusive for Russia as well as regional states and stick to it. It should emphasize regional stability, cooperative relations, political solutions to conflicts, border security, human rights, institutional development, orderly successions of political power, anti-corruption efforts, and opportunities for citizen participation in political and economic decisionmaking. Although this framework would not be considerably different from the general themes of the Clinton administration, the notion of explicitly recognizing the importance of the Caucasus and Central Asian regions in the bilateral U.S.-Russian relationship—and staying focused—would be a departure. The primary goal should be to encourage Russia to adopt a positive approach to relations with its neighbors that eschews commercial and political bullying. To this end, the administration will have to maintain a direct dialogue with its Russian counterparts in working out a practical approach for the Caucasus and Central Asia. With its message clear, the administration needs to bring its bureaucratic mechanisms in line to focus on key issues and countries. Even if responsibility for the Caucasus and Central Asian states is divided within government departments, effective structures will have to be created to preserve links between the regions, and conflicting legislation will have to be streamlined to resolve interagency conflicts over responsibilities. This will require the executive branch to work closely with Congress to reconcile appropriations with a comprehensive program for the regions and to articulate U.S. interests through public hearings and testimony. If the administration has appropriate mechanisms in place, some policy innovations should be considered to address regional problems: Rethink the U.S. Approach to Central Asia The Central Asian states require the most serious reassessment in U.S. policy. Central Asia is rapidly becoming a base for extremism and terrorism, and the U.S. needs to look ahead to avert its "Afghanicization." The pivotal states for regional security are Uzbekistan and Tajikistan, which both border Afghanistan. The United States has bilateral military relations with Uzbekistan, but is barely present in Tajikistan, where permanent U.S. representation has been withdrawn because of fears for the safety of Embassy personnel. The Bush administration must change the American approach to both countries by emphasizing human rights and cooperative regional relations in Uzbekistan (rather than simply security), and by increasing its focus on Tajikistan. Productive relations between Uzbekistan and its neighbors are key to regional stability. Tajikistan and Kyrgyzstan have significant Uzbek diasporas and are dependent on Uzbekistan for cross-border communications and energy supplies. Uzbekistan has frequently used this leverage to negative effect with these vulnerable neighbors. The United States should encourage high-level discussions between Uzbekistan and its neighbors that would address border access and gas deliveries as well as militant incursions across the Tajik and Kyrgyz borders into Uzbekistan. Of all the regional states, Tajikistan is the most receptive to outside assistance, serving as a potential model for dealing with Islamic and political opposition. The Tajik government engaged its opposition in a dialogue that resulted in power-sharing arrangements and an end to a five-year civil war. Given the precipitous decline of the Tajik economy, even the reestablishment of a permanent U.S. embassy—with appropriate security precautions—and a modest increase in aid programs related to job creation and health would be a major boost. 11 Link Human Rights and Security As a general rule, the administration should engage Central Asia without reinforcing authoritarian regimes. In Uzbekistan, while militant groups are real threats to the state, human rights abuses are an equal threat and increase sympathy for the militants. The United States has considerable leverage with Uzbekistan through its military engagement activities. In 2000, Uzbekistan came close to losing congressional certification for these programs, and the Pentagon placed greater emphasis on human rights in its special forces training curriculum. Taking this as a cue, the Bush administration should emphasize mutually-reinforcing security and human rights objectives throughout Central Asia and should encourage cooperation among the Pentagon, State Department, and international human rights groups on security-human rights linkages. The administration should also emphasize U.S. support for regional non-governmental organizations (NGOs) that seek to increase both citizen participation in government and access to objective sources of information. Spotlight HIV/AIDS in the War on Drugs While the United States and international organizations have paid some attention to tackling drug trafficking in Central Asia by funding border security and local interdiction efforts, the public health dimension has not been addressed. The growing HIV/AIDS epidemic along drug routes in Tajikistan, Kyrgyzstan, and Kazakhstan threatens to undermine the region's meager economic and political achievements. The emergent public health crisis must be part of the U.S. and international agenda for the region and funding should be allocated for HIV/AIDS prevention programs and for NGOs working directly with intravenous drug users, women's groups, and regional youth. Factor in Other Regional Players During the Clinton administration, the United States had an Osama bin Laden policy but no Afghanistan policy, and increasingly lost sight of a wider Central Asian policy as Afghanistan-related security concerns increased. But without stability in Afghanistan, local governments can do little to tackle the movement of militant groups or drugs and arms trafficking across the Afghan border. Active U.S. engagement with Pakistan is key to addressing the crisis in Afghanistan. Likewise, Iran is an important player in the dynamic of Caucasus and Caspian energy politics, but was routinely excluded from regional calculations by U.S. policy. A rapprochement between the United States and Iran would effect a seismic shift in regional geopolitics and pave the way for increased cooperation among the states of the Caucasus and Central Asia. When crafting its strategy, America must consider how bilateral relations with all the neighboring countries will effect developments in the two regions. Engage Europe Central Asia and the Caucasus have become Europe's backyard, and the European Union and key states like Germany are beginning to formulate long-term plans for engagement with the regions. Over the next decade, if Turkey and the Eastern European and Baltic States accede to the Union, Russia will be the only country separating an expanded Europe from Central Asia and Afghanistan. As North Sea energy reserves diminish, Europe will also put greater emphasis on Caspian energy. Given limited resources, the United States should work with European allies to identify a long-term strategy for the regions that is targeted to respond to their most acute needs and not just to the priorities of donors. The European Commission has a substantial aid program and has spent almost one billion Euros in the Caucasus alone since 1991. But the Commission is bureaucratic and slow, and European diplomats acknowledge that assistance has been poorly targeted with little positive effect on 12 regional stability and development. The United States may not be able to work directly with the Commission, but many European Union member states have bilateral assistance programs and could be brought into task forces for individual states. The United States has already cooperated with France on conflict resolution in Nagorno-Karabakh, and with Great Britain and Germany in providing security assistance to Georgia. Close German relations with Russia and increasing German interest in Central Asia offer additional opportunities for a transatlantic dialogue on regional stability. Work With Europe to Seek a Political Solution in Chechnya Chechnya is one of the primary threats to regional stability and the linchpin in Russia's relations with the South Caucasus. Without movement toward a solution, the war will drag on, bringing Russia into increasing confrontation with Georgia and Azerbaijan, and exacerbating an already catastrophic humanitarian situation in the Caucasus. Chechnya deserves as much international attention to resolution as Northern Ireland and Palestine, but the United States and Europe have frequently been at odds in their approach. In its dialogue with Russia, the Bush administration should continue to emphasize the importance of a political solution to end the war, and keep the issue high on the transatlantic agenda. Maintain the General Thrust of Energy Policy The Clinton administration spent significant political capital on promoting multiple oil and gas pipelines from the Caspian and the construction of the Baku-Tbilisi-Ceyhan pipeline across the Caucasus to Turkey. Pipeline diplomacy often overshadowed other American initiatives in the regions. As a result, some American policy analysts propose that the new administration step back from this policy. But, after five years of intensive engagement, Baku-Tbilisi-Ceyhan is already a regional political reality, even though it has yet to be built. Repudiating this policy now would be tantamount to a repudiation of U.S. engagement in the Caspian and relations with Azerbaijan, Georgia, and Turkey, the strategic partners in the venture. The general policy should continue, but it should be brought in line with broader economic development priorities and initiatives that address the immaturity and fragility of regional political institutions. Fiona Hill is a fellow in Foreign Policy Studies at the Brookings Institution. The views expressed in this Policy Brief are those of the author and are not necessarily those of the trustees, officers, or other staff members of the Brookings Institution. Copyright © 2001 The Brookings Institution. top | home | search | site info | donate online | contact us! The Brookings Institution, 1775 Massachusetts Ave NW, Washington DC 20036 Telephone: (202) 797-6000 | Facsimile: (202) 797-6004 | E-mail: Brookings Info Comments on this Site Islam in Central Asia AUG 16, 2001 Islam in Central Asia he people of Uzbekistan, Turkmenistan, Kazakhstan, Kyrgyzstan and Tajikistan have always lived under despots. Their history is so dismal that Communism for them was a time of relative prosperity. Now, 10 years after they became independent nations, they have once again become sultanates, ruled by tyrants who maintain tight control of political and 13 economic activity. While the governments claim they are a steadying force, their repression is creating instability. Uzbekistan is leading a regionwide crackdown on all forms of Islam that are not state-controlled — repression that is driving entire villages into opposition and forcing religion underground. An Islamic guerrilla movement seeks to establish an Islamic state in Uzbekistan, but its 1,000 or so fighters are mainly active when the snows blocking the mountain passes between Kyrgyzstan and Uzbekistan melt each August. Far more dangerous is the crushing response of Islam Karimov, Uzbekistan's authoritarian president. If a Taliban-style threat arises in Central Asia, it will be because the dictatorships inadvertently helped to create it. When the Soviet empire broke up, millions of people in Central Asia began to practice Islam. Unfortunately, local governments saw religion that was independent of the state as a threat. In Uzbekistan, the most populous of the Central Asian nations, with 25 million people, the government has arrested thousands of religious Muslims and sentenced hundreds of them to long jail terms, even though they were not accused of violent acts. Thousands of villagers in Islamic areas have been forcibly resettled. The current guerrilla movement arose in part because of government actions. When the mass arrest of Muslims began in 1997, young religious men went underground or fled to safety in Afghanistan or Tajikistan, where they made contact with more militant movements. Mr. Karimov has used an unsolved February 1999 bombing, which some believe was carried out by the security forces, as a justification for an even wider crackdown. While American officials talk about human rights when they meet with their Central Asian counterparts, Washington's interest in the region's oil and gas reserves and fear of another Afghanistan limit American criticism. Washington has never counted Uzbekistan among the nations that violate religious freedom. It richly deserves to make the list in September. The military and economic cooperation given in the name of assuring stability may in fact be helping to brew dangerous instability. The real parallel for Central Asia could be Iran under the Shah, who suffocated his nation into revolution. Copyright 2001 The New York Times Company | Privacy Information U.S. Missteps Seen in Wasted Investments in Central Asia SEP 04, 2001 U.S. Missteps Seen in Wasted Investments in Central Asia By BIRGIT BRAUER LMATY, Kazakhstan — As Communism crumbled, the United States set up investment funds to foster start-up companies and other ventures in fledgling market economies. But many of these efforts were undermined, financial experts say, when Washington appointed individuals with little business experience — politicians, lawyers and academics — to make investment decisions. A case in point is the Central Asian-American Enterprise Fund. Through a string of bad business decisions, and possibly fraud, the fund has lost as much as $80 million that it received from American taxpayers, resulting in discussions within the United States about shutting it down, said a government official familiar with the fund. The Federal Bureau of Investigation is investigating several of its transactions, the official said. Another person associated with the fund, Donald Nicholson, who headed its program in Uzbekistan until early 2000, said, "Out of the $110 million 14 spent by the time I left, I would estimate that probably $80 million have been lost, both honestly and otherwise." Stephen J. Solarz, a former Congressman from Brooklyn, headed the fund until last year. He and a lawyer for the fund, Michael S. Sommer, said in separate interviews that some of the losses were so questionable that the fund's board referred them more than a year ago to the Justice Department and the United States Agency for International Development, which oversees the fund. "We brought these potentially improper transactions to the attention of the Department of Justice and U.S. A.I.D. and the fund has been fully cooperating in their investigation," Mr. Sommer said. With $150 million in seed money, the enterprise fund was created in 1994 to invest in small- and medium- sized businesses in five Central Asian republics. Investing wisely was not an easy task anywhere in the former Soviet Union. But the fund's record is particularly bleak. Of the $111 million that the fund spent, a large share went toward salaries for fund employees and high overhead expenses, the government official said. The fund's own operating costs ate up 40 to 50 percent of total outlays, whereas investment funds in developed markets usually spend only 2 to 4 percent. The list of failed business undertakings is long. Among them is a $5 million loss for a brick factory in Uzbekistan that was not built, Mr. Nicholson said. There were also many cases of overpayments to suppliers, often through dubious intermediaries, he added. One money-losing proposition involved a $5 million spinning mill purchased from the agency that was charged with selling off plants and equipment from East Germany. When the equipment arrived in Tashkent, the Uzbek capital, it turned out that it could not spin cotton, the country's leading crop, but only synthetic fibers, and was unusable. The fund also lost money in Turkmenistan when it bought an intravenous solutions company in Europe for $5 million. Mr. Nicholson, who had joined the fund at around the time of that decision, said the company was worth no more than $2.5 million and its annual capacity was far too large for the Turkmenistan market. He immediately stopped the deal and resold the company, incurring a $3 million loss. In Kazakhstan, the fund invested about $1.6 million in a proposed dry mortar plant that was never built, said a person involved with the fund, an episode that led to a drawn-out court battle. Another questionable transaction involved the purchase of an Almaty apartment building two years ago with the fund's money. The cost and the reason for buying it were not clear, the same person said. Mr. Nicholson said he had informed the fund's board of such troubling investments, which led to the F.B.I. investigation. "The magnitude of questionable activities kept growing," he said. "There was no way I would feel comfortable." But how many of these actions resulted from bad business decisions or malfeasance is hard to judge, he said. A government official in Washington familiar with the inquiry said it was unclear whether there had been criminal intent or wrongdoing. The investigation, first reported by The Wall Street Journal last December, has moved slowly because of the difficulty of locating some of the people involved, the official said. Many experts believe that the fund's failures lie mainly in the board's lack of knowledge about business and particularly the local business environment. Also the fund made mistakes by recruiting people in America who were inexperienced in international dealings, Mr. Nicholson said. Unfamiliar with emerging economies, these people frequently overestimated the markets and misjudged local companies, he said. Copyright 2001 The New York Times Company | Privacy Information Vision expert creates lamp to reduce eye strain and glare 15 How to make your car invisible to radar and laser A floor lamp that spreads sunshine all over a room Why spend hundreds on a bigger monitor enlarge the one you have NASA research creates "smart bed" sleep surface Bring the power of the digital revolution to your fingertips It’s time to put all of your photos onto your computer Advertisement America's Central Asian Allies October 2, 2001 America's Central Asian Allies ust as the desire for international collaboration against Communism drew America into unseemly alliances with dictators during the cold war, the new campaign against terrorism is pulling Washington ever closer to tyrants and satraps in Central Asia. Three of the least appealing leaders — in Uzbekistan, Turkmenistan and Tajikistan — have now become American allies against their southern neighbor Afghanistan. Access to airfields and military bases may require some short-term cooperation, but Washington should not give these dictators license to pursue their abusive policies against Muslim citizens. The three nations are among the world's worst violators of human rights. Turkmenistan's president, Saparmurat Niyazov, has turned his nation into a shrine to his rule and permits no dissent of any kind. Uzbekistan under President Islam Karimov is only marginally more free. Tajikistan, emerging from a five-year civil war, is ruled by President Emomali Rahmonov, who has rigged elections and allowed abuses by security forces. Mistreatment of Muslims is especially brutal in these countries. Tajikistan has arrested hundreds of members of a radical but nonviolent Islamic group. Uzbekistan and Turkmenistan do not tolerate expressions of Islam that are not state-sponsored. In Uzbekistan, Mr. Karimov has used the excuse of an Islamic guerrilla movement to repress his opponents. He has also arrested thousands of pious Muslims not accused of violent acts. Uzbekistan's repression has, in fact, encouraged the rise of a violent guerrilla movement, the Islamic Movement of Uzbekistan. After a wave of arrests in 1997, many young religious men fled to safety in Afghanistan, where they made contact with violent groups, apparently including Osama bin Laden's Al Qaeda network. A State Department official testified before Congress in July that such repression "is actually radicalizing Uzbekistan's disaffected and disenfranchised youth and driving them into the arms of the Islamic Movement of Uzbekistan and its radical allies." There is little question that Washington needs to use bases and airspace in the three Central Asian states. But Washington should not be rewarding these nations in ways that encourage further repression. America's battle against terrorism is best served in Central Asia by encouraging governments there to arrest those genuinely involved in violent acts and leaving others free to worship and think as they please. Copyright 2001 The New York Times Company | Privacy Information America's Central Asian Allies October 2, 2001 America's Central Asian Allies 16 ust as the desire for international collaboration against Communism drew America into unseemly alliances with dictators during the cold war, the new campaign against terrorism is pulling Washington ever closer to tyrants and satraps in Central Asia. Three of the least appealing leaders — in Uzbekistan, Turkmenistan and Tajikistan — have now become American allies against their southern neighbor Afghanistan. Access to airfields and military bases may require some short-term cooperation, but Washington should not give these dictators license to pursue their abusive policies against Muslim citizens. The three nations are among the world's worst violators of human rights. Turkmenistan's president, Saparmurat Niyazov, has turned his nation into a shrine to his rule and permits no dissent of any kind. Uzbekistan under President Islam Karimov is only marginally more free. Tajikistan, emerging from a five-year civil war, is ruled by President Emomali Rahmonov, who has rigged elections and allowed abuses by security forces. Mistreatment of Muslims is especially brutal in these countries. Tajikistan has arrested hundreds of members of a radical but nonviolent Islamic group. Uzbekistan and Turkmenistan do not tolerate expressions of Islam that are not state-sponsored. In Uzbekistan, Mr. Karimov has used the excuse of an Islamic guerrilla movement to repress his opponents. He has also arrested thousands of pious Muslims not accused of violent acts. Uzbekistan's repression has, in fact, encouraged the rise of a violent guerrilla movement, the Islamic Movement of Uzbekistan. After a wave of arrests in 1997, many young religious men fled to safety in Afghanistan, where they made contact with violent groups, apparently including Osama bin Laden's Al Qaeda network. A State Department official testified before Congress in July that such repression "is actually radicalizing Uzbekistan's disaffected and disenfranchised youth and driving them into the arms of the Islamic Movement of Uzbekistan and its radical allies." There is little question that Washington needs to use bases and airspace in the three Central Asian states. But Washington should not be rewarding these nations in ways that encourage further repression. America's battle against terrorism is best served in Central Asia by encouraging governments there to arrest those genuinely involved in violent acts and leaving others free to worship and think as they please. Copyright 2001 The New York Times Company | Privacy Information IHT Article Print Page Copyright © 2001 The International Herald Tribune | www.iht.com Focus on Struggling Central Asia International Herald Tribune International Herald Tribune Thursday, October 11, 2001 The U.S.-led attacks on Afghanistan have focused attention on other countries in the region that are aiding the coalition against terrorism, including the five countries of the former Soviet Union in Central Asia. Though better off than Afghanistan, the countries in the region remain poor. The largest investor in the region is the European Bank for Reconstruction and Development. Willem Buiter, chief economist for the EBRD, spoke with Eric Pfanner of the International Herald Tribune about the economic implications of the battle against terrorism. 17 Q. Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan and Tajikistan are hardly household words in the West. Suddenly they find themselves in the front lines of the battle against terrorism. What are the implications for the region? A. These countries are now on the map in the political eye in a way that they weren't before. I'm not saying this war is good for them. But in addition to the disruption and dislocation that they will undoubtedly suffer - the refugee problem, the interruption of normal trading patterns, the possible damage to infrastructure, the conflict spilling over physically - there is the possibility that the opportunities and problems of these nations will be taken on in a way that didn't happen before. When the dust settles and people try to reconstruct Afghanistan, they'll also look at ways of strengthening the institutions and economies of these five countries. Q. Is there a possibility of a Marshall Plan for the region after the shooting stops? A. I don't know if the Marshall Plan is the right analogy. Afghanistan is in quite a different situation. It has already been bombed back to the Stone Age. Its infrastructure is rubble. It does not have the human infrastructure that our countries have. What these countries will need is debt relief, additional humanitarian aid and development aid. The infrastructure has to be renewed and retargeted on viable economic links with the world - with the modern, the market world. What they have in infrastructure tends to be oriented toward the former Soviet Union. The private sector has to be given a chance. In Turkmenistan, the private sector is 25 percent of GDP. But the best thing we can do for them is make sure we don't discriminate against their exports. There is no point in putting in aid and assistance on the one hand but slapping down markets with anti-dumping penalties on the other hand. Q. How great will the economic effects of the refugee problem be? A. Most of the refugees so far have gone to Pakistan and Iran. There are some refugees in Tajikistan, which has a long and largely uncontrolled border with Afghanistan, and there could be a sizable inflow, which could be disruptive. But presumably, humanitarian assistance would come quite quickly. Q. Did the Central Asian countries extract any quid pro quos for allowing an American military presence on their soil or in their airspace? A. I don't think anybody sits down and says, "You can use our bases if you provide us with a large jar full of money," but clearly friends are treated better than enemies, and if a country incurs costs or takes risks it will not hurt them. Q. How can outside financing help the region develop? A. Look at Kyrgyzstan. It's one of the most beautiful countries in the world. In fact, before this conflict started, they were developing a real ecotourism niche. Of course, at the moment, nobody 18 is going to fly to a country that is 60 miles (100 kilometers) north of Afghanistan. But if you could put in the infrastructure - it's magically beautiful. Both Kyrgyzstan and Tajikistan, the two poorest countries in the region, have a natural resource that in the long run is more valuable than oil - fresh water. In this arid part of the world, it's a tradable good. In Turkmenistan, it's gas. The only limit is their ability to export it. Kazakhstan has large amounts of oil and gas deposits. Uzbekistan, while not a major producer, has quite a bit of the stuff, and they have every other mineral in the world. Q. Does the decade of EBRD involvement in these countries hold any lessons for the possible reconstruction of Afghanistan? A. The one key lesson is that you have to reconstruct the role of the public sector. They have to become a limited but competent state instead of an all-intrusive, leviathan state. They have the enormous disadvantage that they have not even the trace of the apparatus of the state, the institutions of law and order. Copyright © 2001 The International Herald Tribune WSJ.com October 18, 2001 International Commentary The End Game in Central Asia By Kathleen Collins. Ms. Collins is an assistant professor of government and Central Asian studies at the University of Notre Dame. In the war against terrorism, the Bush administration has so far focused on Osama bin Laden, his al Qaeda terrorist organization and the Taliban in Afghanistan. But the U.S. must now begin preparing for a potentially larger problem. Afghanistan is surrounded by weak states, and a durable peace in Central Asia must contain not only the conflict within Afghanistan but also bolster that country's faltering neighbors, Uzbekistan and Tajikistan. The U.S. end game must therefore include long-term policies that promote stable democracies and economic prosperity. Uzbekistan and Tajikistan are fragile, authoritarian states long plagued by Islamic opposition groups, guerrilla insurgencies, Taliban threats and dubious Russian interventions. These states are fertile ground for Islamic extremism and region-wide instability. And they will feel the tremors of U.S. action in Afghanistan in at least three ways. First, in the covert movement of Taliban or pro-Taliban terrorist groups, such as the Islamic Movement of Uzbekistan (IMU), north across the Uzbek and Tajik borders, and their positioning for future terrorist acts against those governments. Second, via attacks by Taliban fighters on the Afghan-Uzbek border in retaliation for Uzbek support of U.S. military forces. And third, in a massive flow of refugees into Tajikistan and from there to Uzbekistan or Kyrgyzstan. These strongly secular Central Asian regimes have battled periodic IMU military incursions and terrorist attacks for more than five years. The Taliban has threatened Uzbekistan's borders since coming to power in 1996, and Uzbek President Islam Karimov has long accused the Taliban of harboring IMU terrorists. Although Uzbekistan has built the strongest military in former Soviet Central Asia, it is not clear that its untried troops could effectively suppress a larger, more organized guerrilla insurgency. 19 Emerging from a five-year civil war, Tajikistan's army is fragmented, poorly supplied and ineffective. Tajikistan therefore relies on an estimated 20,000 Russian guards to secure its Afghan border, and thousands more to curb insurgencies inside Tajikistan. Russian President Vladimir Putin recently claimed that Russia might support the war against terrorism by sending troops from Chechnya to fortify the former Soviet region. Yet Uzbekistan is unlikely to cede such power to Russian troops, which have been a double-edged sword in Tajikistan. Minimal stability for Tajikistan has come at the price of sovereignty. Moreover, Russian troops, demoralized by a second war against the Chechen "jihad," are unlikely to prove an adequate match for Taliban forces. The U.S. and its European allies should be skeptical of Russian intentions. The anti-Taliban forces of the Northern Alliance may be the beneficiary of Western support and will no doubt move quickly to retake strategic regions south of the Uzbek border. But it is not clear the Alliance's fractured, out-numbered and ill-equipped army will be able to either invade or hold Taliban-controlled territory. Even if they can, it is doubtful they can prevent members of Osama bin Laden's al Qaeda terrorist network from scattering into the neighboring Central Asian republics, where they could go underground and continue carrying out their operations. Nor should the Northern Alliance be expected to prevent a flood of hungry and potentially armed refugees to the north. A few thousand of the estimated tens of thousands of refugees displaced by war could lead to social unrest in already economically strained Uzbekistan and Tajikistan. In the face of such a recipe for further conflict, how can the U.S. ensure stability in Central Asia? First, the U.S. should provide Uzbekistan with military aid. The Uzbek government has complained for several years about the U.S.'s lack of interest in regional security and in Uzbekistan's strategic importance. The U.S. should increase military-to-military collaboration that will help Uzbekistan fortify its borders and become a stronger, more independent ally. Second, the U.S. needs nothing less than a Marshall Plan to spur economic growth in Central Asia. Not just Afghanistan, but all the Central Asian states have experienced a precipitous and devastating economic and social decline since the collapse of the Soviet Union. In 1991, this predominately Muslim region boasted decent standards of living and a 99% literacy rate. Now more than 80% of the population lives in poverty, of which increasing numbers are young men with no opportunities for education or employment. Many of the villages of Tajikistan are no better provisioned than their Afghan counterparts. The entire region has suffered four years of drought, and several million Tajik, Uzbek and Kyrgyz citizens are now facing food shortages or famine. However, military support and economic aid must come with clear political conditions. These should include strengthening democracy, implementing free-market economic reforms and improvements in human rights. Indeed, the U.S. must use every lever to pry open Central Asia's increasingly autocratic but brittle regimes. Despite Mr. Karimov's emergence as a crucial ally in the U.S. fight against international terrorism, he is an infamous hard-liner who has stifled dissent, driven political rivals into exile and locked up thousands of Islamic activists, of whom only a tiny minority have engaged in terrorism. It is this kind of relentless state repression that is radicalizing some Muslims in Uzbekistan, Tajikistan and, to a lesser extent, Kyrgyzstan. The IMU is but one such group. Only by tackling the underlying political causes of disaffection and extremism can the U.S. and its allies prevent the Afghanization of the rest of Central Asia. For a decade, U.S. policies in Central Asia have been inconsistent and self-defeating; Washington's focus has been the balance of power and Caspian Sea oil rather than the causes of the region's civil wars, human rights abuses and economic crises. The Bush administration now has a historic opportunity to reverse these policies. What does the U.S. get in return? The preemption of conflict, humanitarian 20 crises and potential state collapse bodes well for better relations with Muslims in Central Asia and the larger Islamic world. Constraining Russian hegemony should continue to be a U.S. strategic objective. Moreover, a stable, economically open Central Asia, which contains one of the world's fastest-growing populations, offers the promise of large markets for U.S. goods and services. The U.S. war against terrorism in Afghanistan, and the humanitarian assistance that will accompany it, is a crucial first phase in the construction of a stable Central Asia. The U.S. left much unfinished business in Afghanistan during and after the 1979-1989 Soviet-Afghan war. This time America must be prepared for a long and relentless campaign, not only against terrorism but for peace and democracy as well. -- From The Asian Wall Street Journal URL for this Article: http://interactive.wsj.com/archive/retrieve.cgi?id=SB100335609098875560.djm Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved. Printing, distribution, and use of this material is governed by your Subscription Agreement and copyright laws. For information about subscribing, go to http://wsj.com 21