Patten Speech on 'The EU and Central Asia'

It was put to me recently that we in Europe, and the wider world, are in the midst of rediscovering Central Asia. In some ways this is a fair comment and a reflection of the way in which global events can suddenly change our perspectives. Events have affected not only the profile but the very existence of the countries of this region as independent states. The collapse of the Soviet Union, predictable in hindsight, but sudden when it came a dozen years ago, permitted the re-emergence of autonomous states. More recently, the massive international intervention in Afghanistan, which began two and half years ago, has laid the ground for the rebirth of that nation, simultaneously emphasising Central Asia as a zone of the highest geo-strategic importance.

I shall come back to the contemporary world in a moment, but first a little history.

Europe and Central Asia share two and a half millennia of common history and mutual interest. Both of them ancient areas of civilization, their contacts over the years have been rich and colourful. There were dramatic and bloody conquests, of course. Alexander the Great came to Central Asia and the Greek influence remains visible even 2300 years later. Amir Timur and his successors penetrated into Europe as far as Poland. He remains, in Europe, the best known Central Asian warrior nearly 600 years after his death.

We also share a history of trade relations - above all at the time of the Silk Road, when most of the silk, jewels and spices from the East came by caravan across Central Asia to the amazement and delight of Europe. And there has been a constant traffic of culture, religion and peoples too numerous to mention. It still amazes me that inhabitants of Central Asia have successively or even simultaneously been, Zoroastrian, Christian, Buddhist, Jewish and Muslim. Finally, Central Asia has given birth to some of the greatest scientists in history - we are still using the discoveries of your forebears in domains with which I struggled as a schoolboy, from algebra to astronomy and medicine.

This pattern of common interests between the European Union and Central Asia will be further strengthened very soon as we take in new member countries with whom you have close historical links - Poland, Hungary, the Czech Republic, the Slovak Republic and the Baltic States which are going to join the EU in 6 weeks. And of course Turkey is a candidate for membership too, demonstrating that European-oriented reform can be married successfully with a powerful sense of national pride.

The independence gained in the early 1990s by the five Central Asian former Soviet Republics and the end of the Taliban regime in Afghanistan offer us a unique opportunity to work together again, to build up our dialogue and co-operation in all sorts of areas where we share common interests. In addressing you today, I should like to set these interests in their wider international context, to explain why we need to work on them together and how the success of our co-operation depends on consolidating shared values between the EU and countries of the region.

I should also add that in my remarks I am excessively generalising. Of course the histories, cultures and traditions of the Central Asian States are in many respects different. But they also share many historical experiences, both ancient and modern, that have helped to shape and condition them in similar ways.

The EU has many interests in Central Asia. Your huge natural resources include some of the most promising energy reserves in the world, which we have a joint interest in developing, in a well managed and sustainable way.

On the commercial side, this immense territory has the potential to produce agriculture goods such as cereals, fruits, vegetables and cotton, and to boost its trade with the EU in these and many other areas.

The huge growth in flows of goods and services from all corners of the modern planet - the commercial side of globalization - offers tremendous opportunities. No one can dispute the benefits we can derive from the rapid worldwide spread of modern science, medicine and communication, and the prosperity that may be driven by the engine of open trade. But there is a dark side to globalisation, which we have to work together to mitigate.

All of us have to contend with the international drugs trade, trans-national crime syndicates, communicable diseases like AIDS, international terrorism, the proliferation of weapons of mass destruction, and so on. An adequate response to all these challenges can only be achieved if nations act together in pursuit of interests that transcend their boundaries. Most of the illicit drugs used in Europe come through Central Asia in the form of heroin, on their way from Afghanistan. They are exported westwards and northwards through a number of routes, and end their journey in Europe. Drugs threaten our civilisations, both in Europe and here - they create interconnected circles of crime from the individual, desperate for their next fix, through the street pushers to the international criminal organisations which run the trade. We need to work together, at both ends, cutting the demand and stopping the supply.

Another destabilising aspect of the current process of globalisation is its potential to create economic turbulence and dislocation, both within and between nations. The simple fact is that much of the world is desperately poor. More than a billion people subsist on less than a dollar a day. In 1999, the revenue of General Motors - with 340,000 employees worldwide - exceeded the combined GNP of 45 African countries with a population of about 600 million. And with modern communications and the aggressive marketing of western culture, the poor everywhere are now much better informed about how the other half live. It is hardly surprising that there is widespread hostility to globalisation as a Western imposition. I believe that view is wrong. Far from generating world poverty, globalisation - if we can learn to manage it better - contains the seeds of international prosperity. But globalisation is a juggernaut which does not slow down to let people jump on - we in the rich world must do more to extend our hands to the people who are left behind. Hence the importance of careful consideration of the impact of our trade policies, and well designed and executed technical and development assistance.

Because the ultimate consequence of such persistent poverty, the feuding and civil disarray it can generate, is the failed state. Afghanistan provided perhaps the most vivid and telling example and one that I know weighs heavily in this part of the world, but there are others. In the past, developed countries perhaps fooled themselves that they could remain insulated from the problems of the world. If a country collapsed into penury and civil war that was sad for its people, and we might offer them loans and grant assistance. We might lecture them about the benefits of open trade, good government and so on. But ultimately it was their problem if they could not dig themselves out of their hole. Now we know that failed states or failed societies quickly become the breeding ground for terror. They matter imminently, urgently to us. I spoke earlier about our common history being marked by the passage of conquering allies. Nowadays, the biggest threats to our peoples come more from failing states, from the initial misery and resentment that repression and economic decline can breed, than from conquering ones.

So the challenges are enormous. By working better together, we can meet them more efficiently. Reinforced contributions from the EU, both in terms of aid and private investment, can and should play their part in the development of the countries of Central Asia. We are providing technical assistance to help develop the human capital of Central Asia so that core values to which we all, in theory, subscribe, such as good governance and the rule of law, respect of Human Rights, a pluralistic democracy and a market economy can flourish as never before. Reinforced dialogue at the political level will help diversify the international relations of the countries in the region. Europe stands, even now, for a balanced, multicultural and regionally integrated approach to both economic growth and social development. Moreover the EU stands as the prime example of how a serious political commitment to interstate co-operation can contribute to both prosperity and peace.

We are not starting from scratch, of course. Over the past 13 years we have laid the foundations for an active and comprehensive long-term partnership. In particular, the EU has provided substantial assistance to the region. For the last dozen years European Community assistance to Central Asian countries amounted to well over €1 billion - mainly in grant aid through the Tacis programme. In 2002 the Commission decided to double its Tacis technical assistance to the 5 countries of Central Asia. At the same time we decided to launch a regional strategy for our assistance emphasising our belief drawn from our experience - that more co-operation is good for this region. In addition to this Community effort, EU Member States provide substantial bilateral assistance, making Europe, as a whole, the most important donor of grant assistance for development to Central Asia. And the EU is an increasingly important source of the Foreign Direct Investment that can really power wholesale economic growth. Over the past two years, for example, it has become the largest single external investor in Kazakhstan

On top of this, in January 2002 in Tokyo, the European Commission pledged €1 billion for the Afghan peace and reconstruction process for the period to 2006. This pledge is being fulfilled with rapid distribution of the funds, and assistance is available for vital basic relief and physical and social investment. We shall be providing similar levels of support in the next few years. Nevertheless, my impression over the last two years is that the international community is still not doing enough in Afghanistan - especially on the security side, but also to combat the drugs problem there.

The common challenge for the countries of Central Asia is to build improved democracies and effective States, using their own national resources. At the same time there is a need to open up the society and the economy to the outside. It is a huge task. We are committed to helping, not just each country individually, but also the region as a whole, by promoting interstate co-operation through our programmes such as Traceca in the field of transport, Inogate in the field of energy or in the area of border management, helping to build relations and trust between neighbouring law enforcement agencies.

Our institutional bilateral relationship - non-existent before independence - started with the endorsement of the Trade and Cooperation Agreement signed with the USSR. But it was soon obvious that the EU had to propose something more elaborate, and tailored to the needs of the re-emerging nations.

We have since negotiated Partnership and Cooperation Agreements (PCAs) with the five Central Asian countries (Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan and Tajikistan. In addition to dialogue on trade and economic issues, the PCAs have led to a thorough political dialogue on democracy, human rights issues, regional co-operation and international issues.

Throughout these years our bilateral trade has grown rapidly. Europe is already a major, in some cases the major, trading partner of the countries in Central Asia. With the 10 new EU Member States, bilateral trade between the EU and Central Asia will increase by more than 20%, reinforcing the importance of bilateral links. We are improving the transportation to and within the region. I hope that one day we will see a new Silk Road, offering the full and steady flow of goods and ideas that our ancestors were able to enjoy.

But building a mature, stable relationship is about much more than increasing trade. In joining the OSCE, in signing Partnership and Co-operation Agreements with us, the countries of Central Asia have given their recognition to the overriding importance of a shared set of values. They are the values underpinning our process of integration in Europe - democracy, human rights and the development of an inclusive and sustainable market economy. These values should be an integral part of every modern state, and it is in our common interest that they take root in Central Asia, not only on your rules of law, but also in everyday life.

Human Rights issues in Central Asia are a growing concern. We recognise that it is difficult to move overnight from a system characterised by the absence of freedom, or of the rule of law, to an entirely new system. In the past we have seen steps in the right direction. But a number of impartial and respected commentators have expressed concern about recent developments. They tell us that things have slipped backwards in certain areas. There are an increasing number of examples where free media and political opposition are being stifled, if they are still able to operate at all. Regrettably, physical torture seems to be accepted practice in certain countries. There are important and serious question marks as to the freedom and fairness of elections. If not reversed, these worrying trends would of course significantly limit our ability to work for closer co-operation. But they also, even more urgently, have serious consequences for the economic future and political stability of the region. This is a central message of my visit.

The fight against terrorism is a common challenge in all five countries plus Afghanistan - and here things look more positive. The international coalition which built up in the aftermath of September 11, 2001 received the backing of all the countries I am visiting on this trip. Thanks to the governments of some countries in the region, some EU Member States are have active troop commitments in Central Asia, and can count on logistical support for safe transit to Afghanistan. This fight against terrorism will continue in Afghanistan, in Central Asia and in Europe. But let us be absolutely clear. This fight has to be carried forward in line with our common principles, and the principles of international law. Torture and other Human Rights violations, the restriction of fundamental freedoms do not and cannot help eradicate terrorism. On the contrary, they are precisely the conditions which breed and nurture the hate and grievance that underlie terrorism.

It may sound prosaic, but the creation of a well-functioning market economy, governed by a clear and properly enforced regulatory framework, is another key to establishing lasting, shared values. You cannot of course move overnight from a centrally planned economy or a war economy to an open market economy, ready to become an active member of the WTO. Following Kyrgyzstan's accession, we are keen to help with the accession of the other countries of Central Asia. But again, the rule of law is essential here. Ultimately, corruption only stifles growth and undermines its vital ingredient, entrepreneurship.

Some Central Asian countries have of course enjoyed impressive growth rates in recent years. Massive flows of foreign direct investment have been attracted, in particular from the EU. EU companies are involved in strategic oil and gas projects, but also in the processing industry, agriculture and agro-business, and a large number of services sectors. We want to strengthen and increase these economic ties, which help to build stable market economies, through transfers of technology and know-how, training of the workforce, and dissemination of new business practices. We will continue to co-operate with the region's governments to help address issues that continue to militate against a good business environment. We are convinced that institutional reforms, good governance, transparency, and the adoption of modern principles of public regulation of the economy will make the countries of Central Asia more attractive for European investors, and therefore wealthier.

Economic growth is the best solution to combat poverty and to provide the more equitable distribution of wealth which underpins stability. Our assistance will be increasingly geared towards poverty alleviation. I am glad that some countries in Central Asia have already adopted, with the support of the International Financing Institutions, a clear strategy for poverty reduction, including thorough reform of health care and education. Just as we are engaged together in the international coalition against terrorism, I hope that we can also join forces in fighting its root causes.

The lessons from around the world on how to do this are clear. Political, economic and institutional reform must be stepped up. The forces of law, from the police to the judiciary, must be independent from politics. Politics itself must be founded on the principle of pluralism, genuine rights to free expression, governed by a parliamentary system with teeth, and an administration capable of managing a country under different leaders - indeed capable of overseeing smooth transition from one elected leadership to another. A vibrant media and civil society are central to such pluralism, and must be supported, not suppressed - especially during times of transition.

Democracy, respect for Human Rights, and liberalisation of the economy are inextricably linked. The key to attracting valuable foreign investment is to present an attractive base, where firms can be confident of their rights as well as their obligations. In short, free, democratic countries make the best neighbours. And the best countries in which to invest and do business are those which treat their own citizens most decently. Nothing is further from the truth than the suggestion that you throw away commercial prospects by dwelling too much on Human Rights and civil liberties.

I want to signal clearly now that the EU will give greater, not less, priority to these issues in the future. The Partnership and Cooperation Agreements with countries in Central Asia will provide the basis for an extended dialogue - in the field of justice and home affairs - for example, where this is not adequately developed.

And in the years ahead, the EU will be pressing for more concrete results and more measurable progress in the implementation of the provisions of our Agreement. In return we will make good on the rediscovery of Central Asia, increasing financial assistance in line with our Central Asia Strategy adopted in October 2002.

And the structures which support our dialogue can and will grow in the coming years. Already we have Commission Delegations in Almaty (and in Kabul), the Commission is opening regionalised Delegation in Bishkek and in Dushanbe, a Europa House is operating in Tashkent. Our Member States are also reinforcing their presence and our new Member States' active involvement in Central Asia is an asset. For example on 1 May 2004 the number of EU Member States embassies in Tashkent will double as a result of enlargement. This year is of great importance for Europe and its future. It also offers new opportunities to many of our partners, including in Central Asia.

Each country will clearly tread its own path towards better reform. But these paths should not each be isolated from the other. Co-operation at the regional level will be central to lasting improvements in stability and security as well as economic prosperity. It is an encouraging sign that some new regional groupings have been created recently, but they have yet to demonstrate their capacity to generate a genuine co-operative environment. The region is still fraught with potential tensions. Energy, water, the environment and the fight against drug trafficking are key issues which must be addressed jointly, and in which we too stand ready to engage.

Co-operation is inevitable - a fact brought home daily as we witness the proliferation of any number of threats - environmental degradation including poor management of scarce resources such as water, disease, migration of people - that repeatedly transcend state borders. Put all these things together and you see that no nation state, however mighty, is sufficient into itself. In the modern world, co-operation between partners in a region as well as co-operation between regions such as the EU and Central Asia is a basic requirement, not mere idealism. We are still laying the foundations required for that co-operation to reach its full potential - but if those foundations are solid, I am convinced that we can build great things together.

Thank you for your attention.

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