Impacts of Various Connectivity Processes in Central Asia on Sustainable Development of Kyrgyzstan

Abstract

Kyrgyzstan is facing a strategically important period in its history. The government’s ambition of reindustrializing is affecting its engagement with various international organizations and donors. As these plans will lead to societal transition and affect such areas as social development, national economy, and environment, a careful consideration of their impacts is required, especially given the country’s need to achieve sustainable development. At the same time, the geographical position of Kyrgyzstan puts it at the cross-roads of three distinct regional economic connectivity processes: the Eurasian Economic Union (EAEU), the China-led Belt and Road Initiative (BRI), and various connectivity initiatives and projects taking place under the umbrella of the European Union (EU). A major issue is the extent to which Kyrgyzstan can leverage these processes to boost its economic revitalization plans and decarbonize its economy in line with international climate change mitigation and energy security policies, while ensuring a reliable energy supply. As a result, novel governance mechanisms need to be established that address the possible impacts of these economic connectivity processes; this is especially important given the frequently diverging perceptions and opinions of the various Kyrgyz and foreign stakeholders involved in industrial policymaking. Perceptual heterogeneity influences the development of solutions based on compromise and participatory governance that are crucial to implementing different industrial policy options; it also impacts the nature of the economic relationship between Kyrgyzstan and other countries in the Central Asian region. The aim of this paper is to understand the implications of perceptual heterogeneity for the various connectivity processes in Kyrgyzstan, their benefits, and their impacts. The methodology of this paper includes a variety of methods such as surveys and interviews with key stakeholders, scenario development, and participatory workshops in various regions of the country.