Why this is important to Wisconsin businesses: The countries are turning their attention away from China and Russia as trading partners and are pursuing alliances with Europe and the U.S. instead.
It has been more than 30 years since five Central Asian nations declared independence from the Soviet Union in 1991, and in recent years, their economies have improved substantially.
In 2023, the combined gross domestic product of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan was $453 billion, nearly 10 times as much as in 2000, when it was $46.4, according to the Times of Central Asia, in a May 2024 article.
Energy was a significant factor, as the countries traded their oil, natural gas, coal, chemicals, and other raw materials primarily with China and Russia.
But the five countries are now seeking alliances with alternatives to China and Russia—namely, the U.S. and the European Union, and each country is trying to diversify its economy and to move toward sustainable energy.
Kazakhstan, Uzbekistan, and Turkmenistan have committed to the United Nations-led Global Methane Pledge, which aims to reduce methane emissions by at least 30% by 2030 compared to 2020 levels.
Kazakhstan also initiated a Joint Energy Transition Partnership program in late 2023 that will make the country a major global supplier of the critical minerals used in green technologies. They include lithium, cobalt, and nickel used to produce electric batteries; rare elements used in magnets in wind turbines and electric vehicles; and silver, a key component for solar panel manufacturing, the Times of Central Asia said.
Meanwhile, the Central Asian nations are working with the World Bank to better manage water and energy resources. The Central Asia Water and Energy Program (CAWEP) is trying to help the countries upgrade and innovate irrigation and drainage systems that have become outdated as a result of population increases and the effects of climate change. It is also trying to improve electric generation and transmission systems to meet the demands of the growing economies and to keep the lights and heat on for the population. As many as 2 million households across the region have been affected by annual winter heat and power shortages, the World Bank said.
A multi-donor trust fund, managed by the World Bank, was established in 2009 to help pay for CAWEP projects and held its third phase of financing from 2018 through 2022.
With Wisconsin’s specialization in water technology and its experience in green energy, companies may find markets for their products and services in Central Asia.
