nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2022‒06‒20
nineteen papers chosen by



  1. Geopolitics of electricity: Grids, space and (political) power By Westphal, Kirsten; Pastukhova, Maria; Pepe, Jacopo Maria
  2. Eurasianism in Turkey By Kınıklıoğlu, Suat
  3. Turkey's Interests And Constructive Eurasianism By Tulun, Teoman Ertuğrul; Tulun, Mehmet Oğuzhan
  4. Special Economic Zones and The State of Pakistan’s Economy By Neelum Nigar; Unbreen Qayyum
  5. LSM – Pakistan Steel Industry Outlook By Uzma Zia; Hafsa Hina
  6. The "axis of resistance": Iran's expansion in the Middle East is hitting a wall By Steinberg, Guido
  7. Turkish-Russian relations in light of recent conflicts: Syria, Libya, and Nagorno-Karabakh By Dalay, Galip
  8. Turkey and Russia: The logic of conflictual cooperation By Isachenko, Daria
  9. Inviting FDI: Is Pakistan an Attractive Destination? By Iftikhar Ahmad; Usman Qadir
  10. Why Do We Have Less Investment Than China and India? By Hafsa Hina
  11. Developing a Policy Solution for Khokhas in Islamabad By Fizza Khalid Butt; Fahd Zulfiqar
  12. Critical Evaluation of the Budget Making Process in Pakistan By Saddam Hussein
  13. Why Pakistan Needs A Car Policy? By Hafeez Ur Rehman Hadi
  14. Unpacking Pakistan’s Film Policy By Fahd Zulfiqar
  15. Pakistan’s Public Procurement Regime By Saddam Hussein; Mohammad Shaaf Najib
  16. Poverty Trend in Pakistan: A Glimpse from Last Two Decades By Hania Afzal; Henna Ahsan
  17. Некоторые вопросы регулирования развития малого предпринимательства в регионе By , AlFerganus
  18. Turkey's presidential system after two and a half years: An overview of institutions and politics By Adar, Sinem; Seufert, Günter
  19. Russlands Einflussmacht im Kaukasus: Konkurrenz und Kooperation mit Regionalmächten und globalen Akteuren By Halbach, Uwe

  1. By: Westphal, Kirsten; Pastukhova, Maria; Pepe, Jacopo Maria
    Abstract: Although electricity grids shape and define both political and economic spaces, the geopolitical significance of electricity remains underestimated. In political communities and beyond, such grids establish new channels for projecting geopolitical influence and new spheres of influence. In the Europe-Asia continental area, integrated electricity grids meet inter­connectors - that is, cross-border transmission lines linking different elec­tric grids. Interconnectors define new, partly competing vectors of integra­tion that extend beyond already integrated electricity grids. In this context, it is attractive for non-EU states to belong to the electricity system of continental Europe. This is because interconnected synchronous systems form 'grid communities' that share a 'common destiny' - not only in terms of electricity supply but also in terms of security and welfare. Germany and the EU must develop an electricity foreign policy in order to optimise, modernise, strengthen and expand the European electricity grid. Above all, however, Germany and the EU should help shape interconnectivity beyond the EU's common integrated electricity grid. China is gaining considerable influence in the electricity sector, setting standards and norms as well as expanding its strategic outreach - to the benefit of its own economy. Its efforts are part of Beijing's larger Belt and Road Initiative (BRI), an attempt to reorient global infrastructure and commercial flows. In the EU's eastern neighbourhood, geopolitical issues have dominated the configuration of electricity grids since the end of the Cold War. There is unmistakable competition over integration between the EU and Russia. The eastern Mediterranean region, the Black Sea and Caspian Sea regions, and Central Asia are, each in their own way, changing from peripheral zones into interconnecting spaces. The EU, China, Russia and - across the Black Sea - Iran and Turkey are competing in these zones to influence the reconfiguration of electricity grids. And in South and Southeast Asia, India's influence is on the rise.
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:zbw:swprps:62022&r=
  2. By: Kınıklıoğlu, Suat
    Abstract: Turkey's neo-Eurasianist ideologues describe themselves as 'Kemalist Eurasianists'. They argue that 'Eurasianism calls for a cultural, military, political and commercial alliance with Turkey's eastern neighbors, notably Russia, Iran, the Turkic countries of Central Asia, and even Pakistan, India and China' and is 'hostile towards any type of pro-Western policy in the Eurasian space. Turkey's neo-Eurasianists transformed from incarcerated villains to coalition partners in government and the bureaucracy. This spectacular reversal of fortunes could only materialize due to the special circumstances that arose from the ruthless power struggle between Turkey's Islamists. Nationalist-Islamism and Eurasianism overlap as they both despise West­ern dominance in the international order, feel threatened by the liberal cultural-civilizational siege of the West and thus have a common counter-hegemonic view of the world. Turkish Islamists and Eurasianists believe that a post-Western world is in the making. They argue that the unipolarity of the 1990s is over and that the West is essentially in an unstoppable decline - not least because of its degeneration in values. The true significance of Turkish 'Eurasianism' does not lie in its capacity to shape foreign and security policy although that cannot be totally dis­regarded; rather, its real contribution to the current regime comes from its critical role in widening and solidifying consent to authoritarian rule in Turkey.
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:zbw:swprps:72022&r=
  3. By: Tulun, Teoman Ertuğrul; Tulun, Mehmet Oğuzhan
    Abstract: Western countries and Russia are locked into an ideological conflict and dangerous brinkmanship over the future of Ukraine, NATO-member and EU-candidate Turkey has drawn attention due to its efforts to maintain a delicate balance in its relations with its Western allies, Russia, and Ukraine. Such a stance has highlighted Turkey's foreign policy and its place in its region and, in fact, the world. Antiquated Cold War-era mindsets view Turkey as a mere frontline asset of the Western world and that Turkey's deviation from such a role is inherently threatening for the West. Turkey's best interest lays in adopting Constructive Eurasianism that on the one hand values Turkey's institutionalized connections with the West, and on the other hand looks into the potential offered by increased ties with Turkey's east. Constructive Eurasianism values and respects Turkey's NATO membership and supports its EU candidacy, even though the latter promises the Turkish people an improbable future. However, it also recognizes that some of the florid language employed by Western countries with emphasis on democracy, pluralism, the rule of law, and the "value-based relationship" rhetoric masks centuries-old imperialistic ambitions and an arrogant attempt to intervene in the domestic politics of other countries. Considering all these issues, Constructive Eurasianism, unlike other forms of Eurasianism advocated, "will benefit Turkey because it rejects creating new rivalries and antagonisms, and instead seeks to create new avenues for cooperation so that Turkey can position itself properly in a changing world." As such, Constructive Eurasianism will allow Turkey to continue to be an integrated part of the West and at the same time to function as a true nexus between the West and the East.
    Date: 2022–05–04
    URL: http://d.repec.org/n?u=RePEc:osf:osfxxx:72c8d&r=
  4. By: Neelum Nigar (Pakistan Institute of Development Economics); Unbreen Qayyum (Pakistan Institute of Development Economics)
    Abstract: Pakistan has initiated various economic reforms aimed at enhancing growth of the economy under China-Pakistan Economic Corridor (CPEC). One of the major components under this collaboration is industrial cooperation under which Special Economic Zones (SEZs) have been planned along the CPEC routes across the country.
    Keywords: Special Economic Zones, Pakistan's Economy
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:27&r=
  5. By: Uzma Zia (Pakistan Institute of Development Economics); Hafsa Hina (Pakistan Institute of Development Economics)
    Abstract: The steel industry delivers essential inputs for the country’s industrial economic growth and development. Steel’s importance in other sectors, such as construction, transportation, machinery, metal products, energy & electrical equipment, and domestic appliances, cannot be overstated.
    Keywords: LSM, Pakistan, Steel Industry, Outlook
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:43&r=
  6. By: Steinberg, Guido
    Abstract: Since 2011 the Islamic Republic of Iran has significantly extended its influence in the Middle East. The expansion reached its apex in 2018. It has since entered a new phase in which Tehran, despite not suffering any strategic military setbacks, is hitting a wall. Iran's biggest fundamental problem is that a majority of its allies in Lebanon, Syria, Iraq and Yemen are primarily military and terrorist actors. They frequently succeed in armed confrontations. Yet they are subsequently incapable of ensuring political and economic stability. The best option for German and European policymakers is a strategy of containment so as to put an end to Iran's expansion in the four countries mentioned above, but also to acknowledge in the short term that Tehran and its allies are in a position of strength. Part of such a containment strategy would be to impose the most far-reaching isolation and sanctions possible on Iran's armed partners. This includes adding Lebanese Hezbollah, the Hezbollah Battalions, Asa'ib Ahl al-Haqq and other militias loyal to Iran, including their leaders, to all. Should Iranian institutions and actors involved in its policy of expansion in the Middle East also be listed as terrorists? The close ties between the Quds Corps - which is in charge of Iran's policy towards its Arab neighbours - and unequivocally terrorist organisations such as Lebanese Hezbollah suggest that this step is necessary.
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:swprps:62021&r=
  7. By: Dalay, Galip
    Abstract: Syria is central to the current shape of Turkey-Russia relations. It offers a model of partnership for both countries in a context where their interests are competitive. However, the Syrian-centric cooperation between Turkey and Russia is also special and is thus unlikely to be replicated elsewhere due to structural constraints and contextual nuances. The limits of the Syrian-style model of cooperation between Ankara and Moscow can be observed in Libya as well as Nagorno-Karabakh. Even though the institutional and elite ownership of Turkey's Western relations has weakened, no similar institutional basis exists in Turkey's relations with Russia. As such, the current Ankara-Moscow axis is to a great extent defined by the personal ties between the countries' leaders and geopolitical imperatives. However, if the current shape of relations endures much longer, these personalised relations will gain structural foundations. A major problem for Turkey in its relations with Russia remains the asymmetry, even if interdependent, in favour of Moscow. Yet, the nature of asymmetry is dynamic and subject to change, as Turkey has engaged in what can be termed dependency reduction on Russia, both geopolitically and structurally (energy-wise). Developments at the broader international level, a new administration in the US, and rising tension between Ukraine and Russia indicate that Turkey would face more constraints and higher costs for its hitherto geopolitical balancing act between the West and Russia. The close relations in recent years between Ankara and Moscow also point to the need for Turkey and the West to redefine the nature of their relations, as the Cold War framework of Turkey-US relations and the accession framework of Turkish-European relations increasingly appear to be ill-suited to the present realities.
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:swprps:52021&r=
  8. By: Isachenko, Daria
    Abstract: Relations between Turkey and Russia are a puzzle to many in the West. How sustainable is the relationship? What is it grounded on? And what can the West learn from it? Central to the relationship is its bilateral nature. Relations between Ankara and Moscow are based on the mutual recognition of security interests. The resulting dynamics have shaped Turkish-Russian cooperation since the 1990s and can be observed in the current partnership in Syria. Mutual regard for the other's security concerns is facilitated by the prospect of collaborative projects that promise greater advantages than continued conflict. Trust is of secondary importance, as is the quality of personal relations between the Turkish and Russian presidents. More important is the interdependence between Russia and Turkey. The potential for confrontation or cooperation between Ankara and Moscow in regional conflicts depends on current priorities rather than past rivalries. The form and extent of their collaboration are determined not by which side of the conflict they are on, but by their respective motives.
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:swprps:72021&r=
  9. By: Iftikhar Ahmad (Pakistan Institute of Development Economics); Usman Qadir (Pakistan Institute of Development Economics)
    Abstract: Is Pakistan an attractive destination for foreign investment in the region? To put it bluntly, the answer is, No. The reason why is simple: Pakistan has had volatile and episodic growth since the 1950s, and we: have low rates of local investment, lag in innovation and suffer from low productivity. We need strong efforts to come out of this vicious circle of low investment, low innovation and low productivity.
    Keywords: Inviting FDI, Pakistan, Attractive, Destination
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:34&r=
  10. By: Hafsa Hina (Pakistan Institute of Development Economics)
    Abstract: Pakistan has experienced macroeconomic instability since the early seventies. Because of the country’s persistent macroeconomic uncertainty, savings and private investment have been discouraged, resulting in low aggregate investment and volatile output levels. It has one of the lowest investment-to-GDP ratios that is 15 percent, about half of the South Asian average of 30 percent. Here we will review the evidence from Pakistan to inform policymaking and local research about.
    Keywords: Public Investment, Foreign Direct Investment, Saving
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:36&r=
  11. By: Fizza Khalid Butt (Pakistan Institute of Development Economics); Fahd Zulfiqar (Pakistan Institute of Development Economics)
    Abstract: The process of development leads to large scale rural-urban migration as the poor seek opportunities in cities. We have seen Pakistan has now become the most urbanised society in South Asia.[1] Yet, Pakistani city planning remained clueless about this important fact about development.
    Keywords: Developing, Policy, Khokhas
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:23&r=
  12. By: Saddam Hussein (Pakistan Institute of Development Economics)
    Abstract: The budget of a country depicts the picture of its financial, fiscal, economic, and social and welfare objectives. It also gauges the policies of the government; both in domestic arena and international domain. It projects a vision for the future of its people. The decisions made in the budget and their allocations accordingly have a strong impact on the socio-economic outlook of the society.
    Keywords: Critical Evaluation, Budget, Pakistan
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:28&r=
  13. By: Hafeez Ur Rehman Hadi (Pakistan Institute of Development Economics)
    Abstract: Cities are the people, their activities, and the mobility people exercise. These cities, in themselves, provide the engines of growth for countries. Cities need to allow freedom and facilitate mobility; and not restrict. Equitable service delivery and access to city services ensure a robust economic activity and city growth; and, contrary, clique access to these facilities hinders growth. Mobility in Pakistan is one such exercise that has been usurped by the car-owners in the garb of gentrification, road infrastructure development, and converting public spaces into parking spaces.
    Keywords: Pakistan, Car Policy
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:22&r=
  14. By: Fahd Zulfiqar (Pakistan Institute of Development Economics)
    Abstract: A wide array of what cultural policy can encapsulate and as detailed in the verbatim above, there are critical roles to be fulfilled by various stakeholders such as cultural ministries, policymakers, broadcasting media houses, filmmakers, and civil societies. Hence, a sectoral approach impinging upon ‘what choices have to be made, structures imposed, boundaries drawn’ (Bell and Oakley, 2015:8) is necessary for the survival of Creative and Cultural Industries (CCIs) and for effective framing as well as implementation of country’s cultural policy.
    Keywords: Unpacking, Pakistan, Film Policy
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:32&r=
  15. By: Saddam Hussein (Pakistan Institute of Development Economics); Mohammad Shaaf Najib (Pakistan Institute of Development Economics)
    Abstract: Governments across the globe are spending a significant portion of their budgets on procurement. Public procurement spending is estimated to account for 15 percent of the world’s GDP. Procurement is predominantly visible in developing countries with active infrastructure and social programs. Any attempt, therefore, to bring fiscal discipline by efficient allocation of resources and then pragmatically spending must consider procurement to be a fundamental part.
    Keywords: Pakistan, Public Procurement, Regime
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:24&r=
  16. By: Hania Afzal (Pakistan Institute of Development Economics); Henna Ahsan (Pakistan Institute of Development Economics)
    Abstract: Poverty reduction is one of the most important sustainable development goals set by the UN in 2015. According to this goal, Pakistan must reduce its poverty level to half by 2030 from 24.3 percent to 12 percent. Pakistan is making hard efforts to achieve this target although the COVID-19 pandemic has made it difficult to achieve this goal due to severe macroeconomic imbalances in the economy.
    Keywords: Poverty Trend, Pakistan
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:pid:kbrief:2021:26&r=
  17. By: , AlFerganus
    Abstract: В статье рассматриваются некоторые вопросы регулирования малого предпринимательства в стране и регионе, на материалах Ферганской области Республики Узбекистан. Предложены направления реформирования в административной и налоговой сферах. The article discusses some issues of regulation of small business in the country and the region, based on the materials of the Ferghana region of the Republic of Uzbekistan. The directions of reform in the administrative and tax spheres are proposed.
    Date: 2022–03–31
    URL: http://d.repec.org/n?u=RePEc:osf:osfxxx:5yg29&r=
  18. By: Adar, Sinem; Seufert, Günter
    Abstract: Turkey's new Presidential System has failed to realise the goals that it was said to achieve with its introduction despite the disapproval of half the population. Contrary to the ruling party's claims in favour of the new governance system, two and a half years after its introduction, parliament is weaker, separation of powers is undermined, the judiciary is politicised, institutions are crippled, economic woes are mounting and authoritarian practices prevail. Despite the almost unlimited and unchecked power that the new system grants to the President over institutions, his space for political manoeuvre is, surprisingly, narrower than it was in the parliamentary system. Providing the otherwise divided opposition a joint anchor of resistance, the Presidential System unintentionally breathed life into the inertia of Turkey's political party setting. The formation of splinter parties from the ruling party, primarily addressing the same conservative electorate, alongside the changing electoral logic with the need to form alliances to win an election, poses a serious challenge to the ruling party and its leader - the President. Despite the oppositional alliance's electoral victory in 2019 local elections, it is at the moment unclear whether the forming parties share a common vision for steps towards democratic repair. Together with the institutional havoc caused by the Presidential System, the blurry outlook of the opposition requires caution about an easy and rapid positive transformation. While the European Union should be realistic in regard to expectations towards democratic reform, it should also strike a balance between cooperation in areas of mutual benefit and confronting Ankara when necessary to protect the interests of the European Union and its member states.
    Keywords: Bilateral international relations
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:swprps:22021&r=
  19. By: Halbach, Uwe
    Abstract: Im zweiten Karabach-Krieg vom Herbst 2020 vermittelte Russland einen Waffenstillstand und erweiterte seine militärische Präsenz im Südkaukasus, indem es eine Friedenstruppe im restlichen Berg-Karabach stationierte. In diesem Krieg hatten aserbaidschanische Streitkräfte die Südprovinz Karabachs und die zuvor von armenischen Truppen kontrollierten Territorien in dessen Umgebung eingenommen. Laut internationalen Beobachtern hat die Dominanz Russlands und der Türkei bewirkt, dass sich die geopolitischen Koordinaten im Kaukasus auf Kosten westlicher und globaler Akteure verlagerten. In Moskaus Perspektive besteht der Kaukasus aus Russlands Föderationssubjekten im Nordteil und seinem "nahen Ausland" im Südteil der Region. Für seine Politik im Südkaukasus nutzte der Kreml ungelöste Territorialkonflikte als machtpolitische Hebel. Mit seiner Unterstützung für die von Georgien abtrünnigen Landesteile Abchasien und Südossetien will Moskau das am stärksten nach Westen ausgerichtete "nahe Ausland" bestrafen. Im Karabach-Konflikt dagegen war Russland trotz enger sicherheitspolitischer Verbindung mit Armenien auf Neutralität bedacht und stellte sich nicht grundsätzlich gegen westliche Konfliktmediatoren im Verhandlungsrahmen der OSZE. Russlands Ordnungsmacht im Südkaukasus wird durch die enge militärische Allianz der Türkei mit Aserbaidschan eingeschränkt. Auch Iran tritt verstärkt als Akteur in der Region auf. Das geopolitische Gewicht dort verschiebt sich zu den historischen Regional- und Großmächten. Globale und westliche Akteure sind aber noch nicht aus der Region verbannt. Der Karabach-Konflikt bleibt im Brennpunkt internationaler Politik. Das wurde sechs Monate nach Kriegsende offenbar, als die Grenzkonflikte zwischen Armenien und Aserbaidschan sich im Mai 2021 erneut zuspitzten.
    Keywords: Nordkaukasien (Russische Föderation),Nahes Ausland (Russische Außenpolitik),Regionalmacht
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:swpstu:102021&r=

General information on the NEP project can be found at https://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.