National Strategy Needed for Korea to Turn Central Asia into a Land
of Opportunity
Looking to the 30th anniversary of the establishment of diplomatic
relations between the Republic of Korea and the Central Asian
regionspan
Oh Eunkyung, professor, Dongduk Women's University
The international political landscape has changed rapidly since the
Biden administration took office amid a struggle for hegemony between
superpowers. Both conflict between the US and Russia and the US-China
rivalry continue to escalate. A growing fault line, with the US and
the EU on one side and Russia, China, and North Korea on the other, is
fueling concerns that the world is approaching a new cold war. At the
same time, as the US rejoined the Paris Agreement and pledged to
achieve carbon neutrality, the introduction of a carbon border
adjustment mechanism, also known as a carbon tax, took a step closer
to reality. Against this backdrop, reconfiguring existing production
lines is a must for businesses to survive. Additionally, the outbreak
of the COVID-19 pandemic in early 2020 has made realigning economic
structures inevitable for countries around the world.
As recent developments in international politics and the global
economy highlight a need for restructuring, Central Asia’s
significance and importance also deserve a fresh look. Notably, the US
has been working to expand its influence in Central Asia to guard
against China and Russia. Over the past decade, Central Asia has not
ranked high on the US government’s agenda, particularly since it
pulled military forces from Kyrgyzstan and Uzbekistan in 2014.
However, as the role of the C5+1 forum, comprised of the US and the
five Central Asian countries, comes to the fore, the US is likely to
solidify its presence in the region for economic and security reasons.
While the US may use potential threats from Taliban forces in
Afghanistan to justify its return to Central Asia, its hidden agenda
is likely to use the region as a counterweight against China.
The return of the US may be welcome news to Central Asian countries
that are increasingly concerned about their growing reliance on Russia
and China in economic and military spaces. In particular, Central
Asian countries that participated in China’s Belt and Road initiative
have become vigilant against China due to worries that its investment
in Central Asian infrastructure will be used for military purposes.
Previously, Central Asian countries that desperately needed aid to
support infrastructure such as highways, railroads, seaports, and dams
had no choice but to accept China’s intervention. Recognizing such
pressing issues, the US is expected to make compelling offers to
Central Asian countries such as economic collaboration projects and
investments in infrastructure. In particular, with the launch of the
Mirziyoyev administration, Uzbekistan has been pursuing drastic reform
policies, opening up its economy to foreign investors in an effort to
join the World Trade Organization (WTO) and warming up its
relationship with the US.
With the collapse of the Soviet Union in 1991 and the resulting
formation of new states in Central Asia, Turkey emerged as a
considerable force in the region. Turkey has since expanded its
presence in Central Asia and has become the largest economic and
investment partner of the Central Asian countries following Russia and
China. Since the establishment of the Cooperation Council of
Turkic-Speaking States (Turkic Council) in 2010, Turkey has notably
increased its influence in the region. Excluding Tajikistan, four out
of the five Central Asian countries (Kazakhstan, Kyrgyzstan,
Turkmenistan, and Uzbekistan) are considered Turkic countries. As the
Turkic Council also includes Azerbaijan and Turkey itself, the
Turkic-speaking population on the Eurasian continent is estimated to
range between 200 million and 250 million people. The group of
countries that form the Turkic Belt are building a cooperative
solidarity system that covers a wide range of areas, such as politics,
economics, commerce, logistics, culture, transportation, education,
and tourism. Uzbekistan was the last to join the Turkic Council as a
full member in 2019, and Turkmenistan remains an associate member
state in order to maintain its UN-recognized international neutrality
status. In light of this, it is difficult to predict how the profile
of Turkic-speaking states will evolve over the next 10 years.
Central Asia is a key economic partner and component of South Korea’s
New Northern Policy, which involves engaging with countries situated
north of the Korean Peninsula. While the region has often been
overshadowed by Russia and China in Korean foreign policy, US-Russian
conflicts and the US-China rivalry over global hegemony underline
Central Asia’s strategic importance and potential for Korea. Ahead of
the 30th anniversary of the establishment of diplomatic relations with
Central Asian countries, Korea should revisit the past decades to
develop a future-oriented plan for bilateral economic collaboration.
Most importantly, carbon neutrality, pandemic-driven digitalization,
and the transition to domestic or regional value chains present
opportunities that Korea cannot afford to miss.
Most of all, as carbon neutrality is now critical for businesses and
countries to address in order to stay relevant and competitive,
Central Asia is well-positioned to offer opportunities in the energy
and automotive sectors. Energy infrastructures warrant attention as a
promising investment target, and Central Asia has an excellent
environment for new renewable energy industries, such as solar
photovoltaic and wind power. In the automotive industry, General
Motors and Hyundai Motor Company face a pressing need to convert their
assembly lines in Uzbekistan and Kazakhstan to electric vehicle
production lines. The COVID-19 outbreak prompted Central Asian
countries to ramp up their efforts toward establishing domestic or
regional value chains that would enable local sourcing by fostering
manufacturing industries. One such example is the commitment by Uzbek
President Mirziyoyev to making Uzbekistan capable of independently
manufacturing auto parts. It is also notable that Central Asian
countries fully embrace digitalization as a new reality.
A thorough, systematic entry strategy is needed for Korea to take
advantage of Central Asia’s transformative economic and industrial
changes and turn them into opportunities. The Korean government should
lead efforts to establish strategies to enter Central Asian countries
and collaborate with them from a comprehensive perspective that
encompasses politics, diplomacy, economics, and culture to gain a full
understanding of regional characteristics and proper responses.
First of all, Central Asia has a state-led economic structure. That
is, without the government’s support, it is difficult for private
sector businesses to make progress, no matter how well they may have
started out. There are too many obstacles to overcome, while
bureaucracy, corruption, and institutional differences present too
large a challenge for these private businesses to navigate.
Accordingly, public-private partnership (PPP) projects in the region
are often derailed when businesses fail to get financial guarantees
from the government. As Central Asia remains an untapped market for
Korean investors, Korea trails behind China in expanding economic
partnerships with the region. For Korean businesses to win large-scale
projects in Central Asia, such as the Surgil Project, a landmark
integrated gas-to-petrochemicals endeavor, it is necessary for the
Korean government to take the initiative in identifying and developing
new projects. Additionally, a special task organization dedicated to
addressing challenges and issues facing Korean businesses needs to be
established in all five Central Asian countries as well as Korea. This
organization must have a direct reporting line to each country’s
ministerial offices in order to be fully functional.
Second, extensive research in Central Asia is needed for the Korean
government to proactively identify projects and spearhead economic
partnerships. Despite the need for comprehensive humanities and
regional studies research, there is a dearth of Korean researchers
specializing in Central Asia due to the absence of a system that would
foster related experts and researchers. The government should
establish such a system to support both industrial and academic
researchers in the various fields needed for businesses to expand to
Central Asia, including logistics, transportation, construction, law,
artificial intelligence, agriculture, blockchain, and energy. That
said, it is difficult to expect universities to step up, given that
the very survival of many of these institutions is in danger in the
face of Korea’s demographic cliff. Accordingly, the government needs
to take the lead in establishing a support plan through collaboration
with the private sector and academia at large.
Third, a low level of awareness about Central Asian countries also
weighs on Korea’s economic collaboration with the region. As the
consumption of foreign cultures in Korea is dominated by content from
the US and Europe, there are few opportunities to learn about
non-Western cultures. With the 30th anniversary of the establishment
of diplomatic relations with the five Central Asian countries drawing
near, this is a prime time to establish a center to introduce and
promote Central Asian cultures. Ideally, establishing individual
centers organized by language and cultural group (for example, a
Turkic cultural center, Persian cultural center, and Mongolian
cultural center) would be preferable to grouping all these
demographics within a single Central Asia center. A Turkic cultural
center could be supported by various organizations such as the
International Turkic Culture and Heritage Foundation or the
International Organization of Turkic Culture (TURKSOY) under the
Turkic Council. As most Central Asian countries are Turkic, forming a
trans-Eurasian network spanning from Azerbaijan to Turkey would
present many opportunities. As Turkmenistan, Uzbekistan, Kazakhstan,
and Kyrgyzstan are individual nation-states with different
ethnicities, there are differences in their historical and cultural
backgrounds. However, if both differences and similarities are
skillfully presented, they can become advantages in terms of
diversity. A Persian cultural center would be also meaningful given
the absence of spaces that represent Persian history, culture, and
countries such as Iran and Tajikistan in Korea. As for a Mongolian
cultural center, although there are organizations and institutions in
Korea that offer opportunities to learn more about Mongolian culture,
there is still a need to put these historical and cultural resources
into a more organized context.
The year 2021 marks the 30th anniversary of the independence of
Central Asia from the former Soviet Union. Next year, in 2022, Korea
and the five Central Asian countries will celebrate the 30th
anniversary of the establishment of their bilateral diplomatic
relations. In many societies, a person’s 30th year is often referred
to as a point at which they know where they stand in life. And
according to The Analects of Confucius, 30-year-olds are well-equipped
to stand on their own two feet and lead their own way. In other words,
reaching the milestone of 30 years means having the ability to develop
a long-term plan by fully understanding one’s identity and being able
to focus selectively. In this context, it is time for Korea to reflect
on the past three decades and chart its path forward with a clear
blueprint of its role as Central Asia’s partner. It is up to Korea to
turn Central Asia into a land of opportunity.