Fourth session of the Regional Advisory
Committee of the United Nations Special Programme for the Economies of Central
Asia (SPECA)
(Bishkek, 29 November 2002)
Statement by Mrs. Brigita Schmögnerová,
Executive Secretary,
United Nations Economic Commission for Europe (UNECE)
Mr. Chairman,
Excellencies, Distinguished Delegates, Ladies and Gentlemen,
It is my first opportunity in my new capacity as Executive Secretary of
the UNECE to address the supreme body of SPECA: the Regional Advisory Committee.
It is also an honour and a pleasure for me.
The United Nations Special Programme for the Economies of Central Asia came
into existence in 1998. The Programme is aimed at strengthening cooperation
between participating countries, promoting economic development and stimulating
their integration into the economy of Europe and Asia.
Since 1998 the importance of SPECA has not diminished. On the contrary:
the war in Afghanistan had a great impact on the region and the need for reconciliation
calls for urgent action. The region is far from reaching prosperity and, unless
this is attained, we cannot achieve stability and peace. The United Nations
and its Secretary-General therefore look with attention at the Central Asian
countries.
In addition, in the process of EU enlargement, when ten more European States
will join the EU in 2004, there will be a need for a close look at the future
cooperation between the enlarged EU and non-acceding countries in South Eastern
Europe, Eastern Europe, Caucasus, and Central Asia. The UNECE – whose role
is to promote economic cooperation and integration in this region – will therefore
focus more on South-Eastern Europe and CIS including Central Asia. We will
provide more advisory assistance to member States at their request, including
SPECA. Having said this we will have to generate new resources which will
allow us to extend our activities in Central Asia. The Energy project there
is financed by the United Nations Development account; this account will terminate
in 2003 and new funding is so far not available.
In promoting cooperation in post-enlargement Europe our focus will be on
the development of transport infrastructure (like Euro-Asian transport links),
trade facilitation, cooperation in the fields of energy and environment. The
programme of SPECA has achieved considerable results in some of its areas.
Its achievements are indicative of the potential of the Programme and of the
fact that it belongs to the participating States.
It has been recognised that rational and effective use of energy and water
resources in Central Asia is the key issue for the region and therefore represents
one of the key priority fields in cooperation. Progress has been achieved
which includes preparation of diagnostic reports and recently a common strategy.
The current session should give guidance on the further process. I am sure
that in the atmosphere of goodwill and cooperation your deliberations will
ensure the success of your work. I would like to congratulate you on this
achievement. But there are areas where progress must advance:
In the field of energy it is: (a) energy saving to stimulate growth and prevent
environmental degradation. General potential of energy saving in the region
represents about 30% of total energy use; (b) energy legislation; (c) appropriate
pricing policies and other aspects of a friendly investment climate for water-energy
and energy investments; (d) development of water-energy markets, and (e) development
of interstate water division.
In the areas of transport and border-crossing we also note progress, for
example the preparation of a MoU on road transport of goods in Central Asia
and border-crossing facilitation between Kazakhstan and Kyrgyzstan, etc. However,
the full benefits of the transport and border crossing facilitation project
funded from the UN DA have not been achieved. More efforts have to be made
to solve transit issues and achieve further progress in trade facilitation.
At the same time, the experience of using the PWG Transport to expose practical
difficulties and barriers and to negotiate their decrease has been quite impressive.
The Tajikistan conference will provide an opportunity to discuss the economic
and social developments in Central Asia and the role of economic cooperation
in the region. The strategy of how to prevent the existing gap between Central
Asia and the developed economies from deepening, and how to reduce poverty
within Central Asian countries, should also be addressed.
The lack of FDI in the region represents an important impediment to economic
growth, to reducing unemployment, and to higher incomes. The Tajikistan conference
will address the issue of best practices in how to attract FDI. FDI’s greatest
requirement is political stability, positive macroeconomic developments progress
in transition and a friendly business climate. If this is not achieved, efforts
to mobilize foreign investments for funding investment projects in water,
energy, transport, etc. and other sectors will be wasted. It is also important
that investors are properly informed on achievements in the countries. The
organization of regular Investors’ Forums under SPECA could therefore be considered
as part of the follow-up to the Tajikistan conference. Prior to the Tajikistan
conference, UNECE will assist in the preparation of the key documents. The
UNECE would like to organise a workshop in Geneva on the Perspectives of SPECA
with relevant UN and non-UN organizations and Permanent Missions of UNECE
member States in Geneva. We would like (a) to stimulate discussions on stage
II of SPECA (b) to raise awareness of other UN organizations, (c) and to attract
more interest of FDI and donor member States.
In stage II of SPECA, extending issues like restructuring and diversification
of production, improving investment climate, preferential trade regime, could
be addressed.
This would further stimulate economic cooperation, economic and social development
and stability in this part of the region.
As SPECA plays a consolidating role in the region we welcome the new member
State Azerbaijan in SPECA and call for the full involvement of Uzbekistan
and Turkmenistan in the Programme.
I note the progress in developing new structures in SPECA, like the Business
Advisory Council. The involvement of the business sector in all fields of
SPECA will further support the efforts of Governments.
In conclusion I would like to wish you success in your deliberations.
Thank you for your attention.