Though geographically distant from Central Asia, Israel is playing an increasingly significant economic role in the region. In early July, Israel's Minister of Infrastructure Avigdor Lieberman led a delegation of business leaders on a seven-day visit to Kazakhstan, Kyrgyzstan and Uzbekistan. The Israeli delegation explored ways to expand trade, and laid the groundwork for a November visit of Israel's Premier Ariel Sharon to Kazakhstan.
Israeli officials and business leaders find Central Asia attractive as an investment opportunity for a variety of reasons, including the region's abundant natural resources, and its large pool of relatively cheap but skilled labor. The region also represents a potentially important market for specialized goods, such as machinery, chemicals and plastics. And in helping to build local economic opportunities, Israel additionally hopes to reduce the desire for Jews in Central Asia to emigrate. At the same time, Israel can offer Central Asian officials a unique trade conduit to world markets. Israel has free trade relationships with the United States and the European Union, as well as with Canada, the Czech Republic, Slovakia, Poland, Jordan and Turkey.
Israeli-Kazakhstani trade ties have grown exponentially in recent years. Trade turnover in 2001 totaled about $17 million, double the amount registered in 1999. Officials have moved in 2001 to facilitate commerce, especially in agriculture, medicine, telecommunications and technology. On April 3, a joint Israeli-Kazakhstani committee was established to examine trade issues. Earlier, officials from both countries agreed to simplify customs procedures.
Israel's trade relationship with Uzbekistan is complicated by Tashkent's strict oversight of economic activity, including tight currency controls. Such controls have discouraged foreign investment. However, in recent months Uzbek leaders have taken tentative steps to loosen their grip on the economy, hoping to spur investment. On July 6, Lieberman and Uzbek Premier Utkir Sultanov signed a joint declaration on prospects for trade and economic cooperation. The Israeli delegation discussed possible joint power-engineering projects, focusing primarily on technologies that encourage environmentally clean sources of power, and more efficient use of land resources. Since Uzbekistan gained independence in 1991, Israeli firms have established 45 joint ventures. Trade turnover between the two countries was $27 million in 2000.
Lieberman's visit to Kyrgyzstan sought to establish parameters for trade. The two sides discussed the establishment of direct air links between the two states, as well as the possible opening of a Kyrgyz Embassy in Israel. Israeli delegation members explored potential deals in transport communication and tourism.
Israel's relations with Central Asian states continue to focus on conditions for Jews living in the region, including the Jewish community in Bukhara, Uzbekistan. [For additional information see the Eurasia Insight archives]. Since the 1991 Soviet collapse and subsequent economic upheaval, many Central Asian Jews have emigrated. Israel was among the first states to recognize the independence of the Central Asian states. Kyrgyzstani President Askar Akayev was the first Central Asian leader to visit Israel in 1993. Kazakhstani President Nursultan Nazarbayev has visited Israel twice, most recently in April.
As part of the effort to discourage Jewish emigration, Israel each year sponsors hundreds of educational exchanges, bringing Central Asian experts in a variety of fields to Israel for study at the Center for International Cooperation of the Ministry of Foreign Affairs, known as MASHAV.
There is also a geopolitical consideration involved in Israeli cooperation with Central Asia. Given the threat posed by Islamic fundamentalism in the region, Israel is keen to keep Central Asian states secular, and to prevent their alignment with Iran. To this end, Israel has sought to promote security ties with Central Asian governments. In Kazakhstan during his recent tour, for example, Lieberman suggested that Israel and Kazakhstan could engage in information exchanges on combating terrorism.
Editor's note:
Antoine Blua is a freelance writer who specializes on Central Asian affairs.
