1. Michael Bohnet German Development Cooperation with Central Asia

2. A. Central Asia: Transformation continues to be difficult The Central Asian Republics Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan have changed their geopolitical positions. The most pressing problems are poverty and unemployment and their related phenomena: growing crime rates, trafficking in2 human beings and prostitution, growing consumption of hard drugs (opium, heroin) Erosion of the education and health sectors, increase in poverty-induced infectious diseases, especially HIV/Aids and tuberculosis. Ecological degradation, especially salinization of soil, waters infected with pesticides and radioactive substances. Autocratic power and decision-making structures, corruption and monopolisation of resources. Civil society pressure groups have no standing, NGO activities are often obstructed. Private sector activities are rigidly controlled.

3. B. Targets of German development cooperation with Central Asia Overarching goal: poverty reduction and regional cooperation as crucial components of crisis prevention in line with the strategy papers on poverty reduction (PRSP), namely of Kyrgyzstan, Tajikistan and Uzbekistan. Support for economic and social reforms. Assist those people living in rural areas and strengthening the positon of women.

4. C. Priority areas of German development cooperation with Central Asia C.1. Support of democratisation process, enforcing the rule of law and civil competition. Legal reforms and empowerment of civil society supported by German political foundations. Counselling and training of journalists and people responsible in the media. Reforms of the economic and administration laws supported by technical assistance. Codification and consolidation of civil law codes ensuring regional harmonization. Advanced training of judges. One result: court decisions are meanwhile being publicized in some of the partner countries (Kazahkstan and Kyrgyzstan).

5. C. 2. Support of socially and environmentally acceptable economic reforms Focus on the structurally weak rural regions. Development of the finance sector: Counselling services for existing banks in Kazahkstan and Uzbekistan, establishment of new banks in the still rather underdeveloped finance markets in Kyrgyzstan and Tajikistan. Establishment of micro financing services through loan cooperatives, especially in Tajikistan, together with the Aga-Khan-Foundation. Promotion of small and medium enterprises (SME). Support of the reform of the vocational training system. A trans-boundary pilot project to recultivate dried-out Aral sea soils.

6. C. 3. Securing basic social services Improving basic education by supporting the reconstruction of the school infrastructure, mainly in rural areas and providing training for teachers, especially in Tajikistan. Fight against tuberculosis in Uzbekistan, Tajikistan, Kazakhstan and Kyrgyzstan, in cooperation with the World Health Organisation and the World Bank. Improvement of the efficiency of the health system as a whole within the scope of a joint sector programme supported by serveral donors, especially in Kyrgyzstan.

7. C. 4. Supra-regional programmes German development policy complements its bilateral cooperation with single countries by means of supra-regional programmes. Transnational networking in the programmes on legal and judiciary reforms. Transnational networking in the programmes on vocational training. Transnational networking in the programmes on tuberculosis control.

8. D. Overview of the German development cooperation with Central Asian States Germany acts according to the EU strategy with Central Asia adopted in 2007. German development cooperation focuses on Kyrgyzstan, Tajikistan and Uzbekistan. These three countries have been particularly hard hit by the after-effects of poverty. Kyrgyzstan and Tajikistan because of their lack of resources, Uzbekistan because of the generally adverse political environment. The bilateral cooperation with Turkmenistan has broken down in the wake of the country‘s self-isolation. Kazakhstan has overcome the status of a „classical developing country“, its wealth of raw materials and a state-monitored liberal economic policy is producing high growth rates. The official bilateral German development cooperation with Kazakhstan ended therefore in 2008. German development cooperation with Kyrgyzstan: a total of € 275 million since 1992. Sectoral priorities: vocational training, microfinancing, HIV-Aids, tuberculosis. Germany participates at the „Joint Country Support Strategy“ in line with the Paris Declaration.

9. D. Overview cont‘d. German development cooperation with Tajikistan: a total of € 173 million since 1993. Sectoral priorities: Microfinancing, small and medium enterprises, agriculture, renewable energy, vocational training, rehabilitation of hydroelectric power stations, tuberculosis. Joint country support strategy in preparation. German development cooperation with Uzbekistan: € 264 million since 1992. Sectoral priorities: civil society, private sector, especially small and medium enterprises, very small-scale enterprises in rural areas, vocational training, tuberculosis. German development cooperation with Kazakhstan: € 115 million since 1992 (cooperation ended in 2008). Sectoral priorities: sustainable economic development, vocational training, rehabilitation of hydroelectric power stations.