Japan’s interest in the Central Asian Republics (CAR) has deepened in recent decades. The “Central Asia + Japan Dialogue” has traditionally been held at the foreign minister level. For the first time, it has been elevated to the summit of governments to be held in Astana in August 2024. However, the meeting was canceled unexpectedly because the Japan Meteorological Agency issued a major earthquake warning.
After the collapse of the Soviet Union, Japan established diplomatic relations with the Central African countries. Since then, Japan has taken several steps to explore possibilities for cooperation with the region. 1 In 1996, Prime Minister Ryutaro Hashimoto introduced the Silk Road Action Plan. The initiative aimed to boost the involvement of Japanese companies in Central Asia’s oil- and gas-rich economies. Central Asian countries and Japan also engaged through multilateral institutions to promote Japan’s vision of stability in the Central Asian region.
In 2004, Japan established the Central Asia Plus Japan Initiative to strengthen its involvement in the region.2 Japan provided technical assistance, loans, and grants to support important regional infrastructure projects such as transportation networks, energy initiatives, and connectivity improvements. These efforts aimed to close infrastructure gaps and promote regional economic integration by improving access to trade routes and energy networks. Interestingly, Turkmenistan decided to participate as an observer in the Central Asia Plus Japan Conference while adhering to its neutrality policy3.
How does Central Asia benefit from Japan?
Central Asia receives significant financial support from Japan’s Official Development Assistance (ODA) for various projects, particularly in infrastructure development. These projects include the construction of roads, bridges, and energy facilities aimed at improving regional connectivity and fostering economic growth. For example, in 2016, expenditures to Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan were 1,158.29 million yen, 815.42 million yen, 418.17 million yen, 62.41 million yen, and 3,207.4 million yen, respectively. 4.
Central Asia benefits from Japan’s technological expertise in various sectors such as renewable energy, agriculture, and manufacturing. By collaborating with Japanese companies, CAR leverages cutting-edge technology to increase productivity and innovation. 5 In Uzbekistan, Mitsui & Co. and Komaihartech are deploying AI-powered traffic lights designed to ease congestion and also promote wind power generation. Additionally, Itochu Corporation and Kawasaki Heavy Industries will work with Turkmenistan’s state-owned enterprises to build a plant to produce gasoline from natural gas. It also plans to introduce technology aimed at reducing methane emissions from natural gas production7.
The Japan International Cooperation Agency (JICA) supports human resource development and education initiatives through technical cooperation. By 2022, Japan has accepted approximately 12,100 trainees from Central Asian and Caucasian countries and sent approximately 3,300 experts to these countries to support human resource development efforts8. These initiatives improve local skills in various areas such as health, education, and governance, and promote sustainable development. Developing and empowering communities to effectively address local challenges and improve overall quality of life9.
Furthermore, Japan actively contributes to the development of human resources essential to nation-building through human resource development scholarship programs that allow young government officials and others to study in Japan. Additionally, initiatives such as the Development Research Program and initiatives led by the Japan Human Resources Development Center focus on developing skilled professionals for business and governance. 10
Japan’s interests in Central Asia
Japan has invested in oil and gas infrastructure in Turkmenistan and Uzbekistan11. In 2009, when Turkmen President Gurbanguly Berdymuhamedov visited Tokyo, JGC Corporation, ITOCHU Corporation, Kawasaki Plant Systems Corporation, and Sojitz Several contracts were signed with Japanese companies such as. Corporation, Mitsubishi Heavy Industries, Sojitz Corporation, Asahi Kasei Chemicals Corporation, Expanding Japan’s Participation in Petrochemicals, Gas Processing and Other Related Sectors12 In 2023, the Japan Bank for International Cooperation (JBIC) will establish ENERSOK Foreign Company LLC in Uzbekistan. (ENERSOK) has entered into a financing agreement of up to nearly USD 400 million for a 1,600 MW natural gas-fired combined cycle power plant project. .13
Japan has signed a memorandum of understanding with Kyrgyzstan on joint projects on green energy, and is discussing the development of renewable energy sources and the construction of hydroelectric power plants14. Through the Clean Energy Introduction Project in Tajikistan, Japan also partners with Kazakhstan in mining uranium, a key resource for Japan’s nuclear energy industry. 16
Japan also aims to support sustainable development and green transition in Central Asia. Before former Prime Minister Kishida canceled his visit, it was expected that he would promote initiatives such as decarbonization in Central Asia, advocate low-emissions technologies, and help create value-added exports such as natural gas-derived hydrogen and fertilizers. was. .17
In addition to energy, Tokyo aims to strengthen connectivity between Europe and Asia by investing in transportation networks such as railways and highways and promoting trade and economic integration. One such project is the Tashguzar-Kumkurgan new railway construction project, which received funding from JICA in 200418. Kishida’s visit was expected to include discussions on the Intermediate Corridor, a trade route linking Central Asia and Europe that bypasses Russia, along with a proposed 300-point trade deal. A 1.9 billion yen (US$2.1 billion) economic aid package from Japan.
The Ukraine conflict and resulting sanctions have disrupted traditional trade routes, making the Intermediate Corridor, also known as the Trans-Caspian International Transport Route (TITR), a valuable option to diversify transport routes.20 . The Intermediate Corridor would enhance economic security, access to resources, and diplomatic engagement with Central Asian and Caucasus countries.
A stable region is crucial to Japan’s economic interests as mentioned above, as it facilitates access to trade routes and valuable resources. Additionally, ensuring regional security is also important, as instability can lead to conflicts that affect neighboring countries and create broader geopolitical tensions. Japan emphasized that
The cooperative relationship between Central Asian countries and Japan contributes to peace and stability not only in the Central Asian region but also in the entire international community.21
Cultural and educational exchanges are also important aspects of Japan’s involvement. Historically, Japan has promoted education and leadership development through the Japan Center and JICA programs with the aim of promoting goodwill and mutual understanding between its own people and the peoples of Central Asia. Amid Western sanctions against Russia, Japan recognizes the need to diversify the destinations of its Central Asian workforce, so it can benefit from the skilled Central Asian workforce and alleviate labor shortages. Possibly 22.
Challenges and future prospects
From a Central Asian perspective, Japan’s relationship with the region offers opportunities for economic growth, strategic partnerships, and cultural engagement. Engagement with Japan not only brings significant benefits to the region, but also advances Japan’s own strategic and economic ambitions. However, there are some challenges to engagement with Japan, mainly due to the geopolitical dynamics of Central Asia.
Central Asia’s efforts to deepen ties with Japan are hampered by the dominant influence of China and Russia. Through the Belt and Road Initiative (BRI), China has invested heavily in infrastructure and trade, establishing itself as the region’s largest economic partner. Because of the geopolitical proximity of the Central African countries and their historical and security ties with Russia, the former often tend to prioritize relations with the latter. This complex scenario makes it difficult for Central Asian countries to fully assert their presence as they seek to maintain balanced relations with both regional powers Russia and China.
Japan’s relations with Central Asia have developed in the midst of the Ukraine war, highlighting both geopolitical and economic considerations. The conflict prompted Japan to focus on energy security and diversification of supply routes, and to strengthen its partnership in Central Asia. Japan has increased investment in infrastructure and energy projects in Central Asia in recent years. Japan itself is also trying to reduce its dependence on Russia. Overall, the Ukraine war strengthened Japan’s strategic interests in Central Asia and positioned the region as an important player in Japan’s broader economic and security framework.
conclusion
Prospects for enhanced cooperation between Central Asia and Japan remain promising. As Central Asian countries seek to diversify their external partnerships, Japan can play an important role in promoting regional stability and economic diversification and fostering mutually beneficial relationships. Through continued diplomatic engagement and cooperation in areas such as education, trade and technology, Japan has the potential to become an important partner in shaping Central Asia’s future growth and integration into the global economy.
The views expressed are those of the author and do not necessarily reflect the views of Manohar Parrikar IDSA or the Government of India.
Keywords: Central Asia, Japan
