Central and Southwest Asian Countries: Trends in U.S. Assistance 
and Key Economic, Governance, and Demographic Characteristics	 
(09-MAY-03, GAO-03-634R).					 
                                                                 
Following the terrorist attacks of September 2001, prosecuting	 
the global war on terrorism became the United States' primary	 
foreign policy priority. The United States focused its initial	 
efforts on Afghanistan in Operation Enduring Freedom because the 
country harbored elements of Al Qaeda and other terrorist groups.
As a result, countries in the region--Pakistan and the five	 
Central Asian republics of Kazakhstan, Kyrgyzstan, Tajikistan,	 
Turkmenistan, and Uzbekistan--became frontline states in the war 
on terrorism, raising the profile of U.S. relations with these	 
countries.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-634R					        
    ACCNO:   A06864						        
  TITLE:     Central and Southwest Asian Countries: Trends in U.S.    
Assistance and Key Economic, Governance, and Demographic	 
Characteristics 						 
     DATE:   05/09/2003 
  SUBJECT:   Counterterrorism					 
	     Federal aid to foreign countries			 
	     Foreign economic assistance			 
	     International relations				 
	     Strategic planning 				 
	     Terrorism						 
	     Afghanistan					 
	     Kazakhstan 					 
	     Kyrgyzstan 					 
	     Operation Enduring Freedom 			 
	     Pakistan						 
	     Tajikistan 					 
	     Turkmenistan					 
	     Uzbekistan 					 

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GAO-03-634R

GAO- 03- 634R Central and Southwest Asia May 9, 2003 The Honorable Richard
G. Lugar Chairman

The Honorable Joseph R. Biden, Jr. Ranking Minority Member Committee on
Foreign Relations United States Senate

The Honorable Henry J. Hyde Chairman The Honorable Tom Lantos Ranking
Minority Member Committee on International Relations House of
Representatives

Subject: Central and Southwest Asian Countries: Trends in U. S. Assistance
and Key Economic, Governance, and Demographic Characteristics Following
the terrorist attacks of September 2001, prosecuting the global war on
terrorism became the United States* primary foreign policy priority. The
United States focused its initial efforts on Afghanistan in Operation
Enduring Freedom because the country harbored elements of Al Qaeda and
other terrorist groups. As a result, countries in the region* Pakistan and
the five Central Asian republics of Kazakhstan, Kyrgyzstan, Tajikistan,
Turkmenistan, and Uzbekistan* became frontline states in the war on
terrorism, raising the profile of U. S. relations with these countries.

We performed this work under the authority of the Comptroller General; we
are sending it to you because of your oversight responsibilities. This
letter with its enclosures provides information on Afghanistan, Pakistan,
and the five Central Asian republics. Specifically, this letter highlights
changes in U. S. priorities, assistance, and presence in Central and
Southwest Asian countries since September 2001, and the economic,
political, and demographic environment in which these changes have
occurred. Additionally, we prepared short profiles for the seven countries
that address these changes and characteristics in more detail. Enclosure I
presents our scope and methodology, and enclosures II through VIII include
the country profiles. Enclosure IX provides the sources used to develop
the country profiles.

Summary

Since the attacks of September 2001, the United States has broadened its
priorities and increased its assistance and presence in Afghanistan,
Pakistan, and the five Central Asian republics* countries with significant
political and economic challenges that may affect the United States*
priorities and programs in the region. While not specific to all countries
in the region, the United States continues to focus on priorities that
were in place prior to September 2001: political and United States General
Accounting Office Washington, DC 20548

Page 2 GAO- 03- 634R Central and Southwest Asia economic reform,
nonproliferation, energy development, counternarcotics, and trafficking.
However, since that time, the United States has emphasized enhanced
security and

counterterrorism relationships accompanied by increased military and
economic assistance and U. S. military presence. For example, in fiscal
year 2001 the United States provided about $342 million in assistance to
Afghanistan, Pakistan, and the five Central Asian republics. In fiscal
year 2002, the United States planned to provide about $1.9 billion in
assistance for these countries, primarily for Afghanistan and Pakistan. 1
Further, since September 2001, the United States has deployed forces to a
number of military facilities in the region to support U. S. operations in
Afghanistan. These expanded activities and investments occur in an
environment generally marked by authoritarian regimes, poor economic
outlooks, and large youth populations vulnerable to the appeal of radical
movements.

Background

U. S. security assistance to these countries is primarily channeled
through the Departments of Defense and State and includes foreign military
financing, international military education and training, drawdowns of U.
S. equipment and services, and cooperative threat reduction funds.
Economic assistance is primarily channeled through the U. S. Agency for
International Development (USAID) and the Department of State, and
includes funds for child survival and disease programs; development
assistance; peacekeeping operations; international narcotics and

law enforcement; economic support; nonproliferation, antiterrorism, and
demining; and assistance provided under the Freedom Support Act. 2
Economic assistance also includes funding for the Peace Corps and food
aid.

The United States Has Expanded Its Priorities, Assistance, and Presence in
a Region Characterized by Significant Challenges

According to Department of State officials, the United States has
generally broadened its priorities in the countries of Central and
Southwest Asia since September 2001. Before that time, U. S. priorities
for the Central Asian republics, Afghanistan, and Pakistan generally
included promoting nonproliferation, limiting narcotics production and
trafficking, promoting economic and political reform, and in the case of
the Central Asian republics, encouraging energy development. Since
September 2001, the United States has continued to pursue these priorities
while enhancing security relationships and emphasizing political and
economic reform and development. In the cases of Afghanistan and Pakistan,
the United States has removed or waived sanctions and restrictions on
assistance to carry out the war on terrorism. U. S. economic and security
assistance to countries in the region has increased since September

2001. As figure 1 shows, for fiscal year 2002, the United States planned
to provide about $1.5 billion more in assistance than it provided in
fiscal year 2001. Most of this increase* about $1.3 billion* went to
Afghanistan and Pakistan. Planned assistance in fiscal year 2002 to the
five Central Asian countries more than doubled from assistance in the
prior year* an increase of about $232 million. Requested assistance for
fiscal years 2003 and 2004 is lower than amounts budgeted in fiscal year
2002, but these amounts are generally higher than assistance provided in
each fiscal year from 1993 through 2001.

1 At the time of our review, obligations data were not available for
fiscal year 2002 assistance to Afghanistan, Pakistan, and the five Central
Asian republics. 2 The Freedom Support Act (P. L. 102- 511) provides
funds, in part, to support freedom and open markets in the independent
states of the former Soviet Union, including Kazakhstan, Kyrgyzstan,
Tajikistan, Turkmenistan, and Uzbekistan.

Page 3 GAO- 03- 634R Central and Southwest Asia Figure 1: U. S. Security
and Economic Assistance to Central and Southwest Asian Countries, Fiscal
Years 1993 through 2004

(Constant fiscal year 2002 dollars in millions) Source: Departments of
Defense and State and U. S. Agency for International Development. a Budget
authority amounts from U. S. Department of State budget documents. b
Requested amounts from U. S. Department of State budget documents.

Notes: GAO analysis of data from the Departments of Defense and State and
the U. S. Agency for International Development. Amounts for fiscal years
1993 through 2001 are taken from U. S. Overseas Loans and Grants, which,
according to USAID, is the complete historical record of all loans and
grants authorized by the U. S. government since 1945. However, in
discussions with Department of State and USAID officials, we learned that
it does not include all assistance to these countries. For example, other
State Department reports show about $386 million in assistance to the
Central Asian states for fiscal years 1992 through 2001, an amount we were
unable to breakdown by year.

Assistance funds are shown as obligations for fiscal years 1993 through
2001, as budget authority for fiscal year 2002, and as requests for fiscal
years 2003 and 2004. Exceptions to this include $2 million and $150
million in fiscal years 2002 and 2003, respectively, to Afghanistan, which
are for drawdowns for defense articles, services, education, and training.
In addition to increases in U. S. assistance, U. S. military presence in
the five Central Asian

republics, Afghanistan, and Pakistan has expanded since September 2001.
For instance, to conduct Operation Enduring Freedom, the United States
used military facilities in Afghanistan, Kyrgyzstan, Pakistan, Tajikistan,
and Uzbekistan, and secured overflight rights from these countries, as
well as Kazakhstan and Turkmenistan. 3 Prior to September 2001, the United
States did not have military forces based in these countries. Moreover,
since September 2001, the United States has concluded several agreements
and declarations with countries in the area for the use of military
infrastructure, rights to transit territories, and cooperation on
political, economic, and security issues.

3 According to congressional testimony by a Department of Defense
official, overflight rights granted by Turkmenistan were for humanitarian
assistance in support of Operation Enduring Freedom.

0 500

1,000 1,500

2,000 Pakistan 62.4 57.5 19.4 18.4 46.2 19.4 65.6 4. 0 91.7 1, 050.1 301.4
384.6 Afghanistan 45.0 2. 7 14.1 16.9 30.9 0. 0 20.4 31.3 65.2 401.1 427.8
535.7 Central Asian states 136.8 336.2 184.4 143.9 43.9 93.1 174.9 162.7
184.9 416.7 179.0 201.6

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Total 244.2 396.4 217.9 179.2 121.0 112.5 260.9 198.0 341.8 1, 867.9 908.2
1,121.9

b b a

Page 4 GAO- 03- 634R Central and Southwest Asia These Central and
Southwest Asian countries are characterized by significant economic,
political, and demographic challenges that could affect U. S. efforts in
the area. These countries

generally carry large amounts of debt and have demonstrated uneven
progress in economic reform, despite some positive growth in both gross
domestic product (GDP) and per capita GDP. Furthermore, various monitors
of human rights and political freedoms, including the Department of State,
have identified these countries as politically repressed and corrupt. For
example, Freedom House rates all of these countries as not free for
political rights and civil liberties. In addition, these countries have
large youth populations; about 40 percent of the total population of these
countries are under the age of 15, nearly twice that of the United States.
According to National Intelligence Council documents and testimonies of U.
S. officials, large youth populations, combined with poor economic
prospects in politically repressive environments

provide fertile ground for radical political movements and social unrest.
In addition, China, India, Iran, and Russia have historic and current
interests in these countries, which the United States must consider when
pursuing its objectives.

Scope and Methodology

To obtain information about changes in U. S. priorities, assistance, and
presence, we analyzed documents from the Departments of Defense and State
and USAID, including USAID*s U. S. Overseas Loans and Grants. We also
interviewed officials from these agencies. To obtain information on other
bilateral and multilateral assistance we relied on data from the
Organization for Economic Cooperation and Development. To analyze
economic, governance, and demographic information, we obtained data from
the Central Intelligence Agency, the Library of Congress, the Asian
Development Bank, the United Nations Development Program, Freedom House,
Global Insight, the Heritage Foundation, and Transparency International.

We conducted our work from December 2002 to March 2003 in accordance with
generally accepted government auditing standards.

Agency Comments and our Evaluation

We discussed this report with officials of the Departments of Defense and
State and USAID who generally concurred with the information provided in
this correspondence. They also provided technical comments, which we
incorporated as appropriate. In particular, USAID emphasized its efforts
in humanitarian assistance and social sector reform.

We are sending copies of this report to other committees and Members of
Congress; the Secretaries of Defense and State; the Administrator, U. S.
Agency for International Development; the Director, the Office of
Management and Budget; and other interested parties. Copies will be made
available to others on request. In addition, this report will be available
at no charge on our Web site at http:// www. gao. gov.

Page 5 GAO- 03- 634R Central and Southwest Asia If you have any questions
about this report, please contact me at 202- 512- 8979 or by E- mail at
Christoffj@ gao. gov. John Hutton, Muriel Forster, Michael Rohrback,
Rebecca Gambler, Lynn

Cothern, and Mary Moutsos made major contributions to this report.
Sincerely yours,

Joseph A. Christoff Director, International Affairs and Trade

Enclosures: 9

Enclosure I Page 6 GAO- 03- 634R Central and Southwest Asia Scope and
Methodology

To describe U. S. priorities in these countries, we reviewed congressional
testimonies of U. S. officials from the Departments of Defense and State
and USAID. We also reviewed Department of Defense country profiles and
security cooperation guidance and Department of State congressional budget
justifications, fact sheets, and other informational documents. We
interviewed officials from the Departments of Defense and State and from
USAID.

To describe U. S. presence in these countries, we reviewed information
from Global Security Inc., the Peace Corps, and Department of Defense
country profiles. We also interviewed officials from the Departments of
Defense and State.

To describe U. S. security and economic assistance for fiscal years 1993
through 2001, we analyzed data reported as obligations by USAID in U. S.
Overseas Loans and Grants. 4 According to U. S. Overseas Loans and Grants,
economic assistance includes child survival and disease funds, development
assistance, Freedom Support Act funds, Economic Support Funds, security
supporting assistance, food aid, Peace Corps funds, and international
narcotics control assistance. Security assistance includes foreign
military financing, international military education and training, and
transfers of excess defense articles.

We used U. S. Overseas Loans and Grants because, according to USAID, it is
the complete historical record of all loans and grants authorized by the
U. S. government since 1945, and it provides the most consistent record of
U. S. assistance to all seven countries in terms of obligations. However,
in discussions with Department of State and USAID officials, we learned
that U. S. Overseas Loans and Grants does not include all assistance to
the countries we reviewed. For example, the Department of State*s reports
U. S. Government Assistance to and Cooperative Activities with Eurasia for
fiscal year 2001 and U. S. Government Assistance to and Cooperative
Activities with the New Independent States of the Former Soviet Union for
fiscal year 2000 identifies about $386 million in assistance over a 10-
year period to the five Central Asian republics that is not included in U.
S. Overseas Loans and Grants.

For data on security and economic assistance for fiscal years 2002 through
2004, we reviewed the Department of State*s fiscal year 2004 congressional
budget justification. For fiscal year 2002, we used budget authority
amounts as reported in the fiscal year 2004 budget justification. For
fiscal years 2003 and 2004, we used requested amounts as reported in the
same document. 5 For assistance provided to Afghanistan in fiscal year
2003, State Department officials told us to use assistance provided in
fiscal year 2002 supplemental appropriations as reported in the fiscal
year 2004 budget justification. For security assistance, we also included
data on obligations for cooperative threat reduction

and U. S. equipment and services drawdowns for fiscal years 1993 through
2003, which was not included in U. S. Overseas Loans and Grants nor the
Department of State*s congressional budget justification. We obtained this
data from the Defense Threat Reduction Agency and the Defense Security
Cooperation Agency, respectively. In addition, we discussed and verified
security and economic assistance amounts with State Department and USAID
officials.

4 The President*s budget for fiscal year 2004 defines an obligation as a
binding agreement that will result in the immediate or future payment of
funds. 5 The President*s budget for fiscal year 2004 defines budget
authority as the authority provided by law to incur financial obligations
that will result in outlays.

Enclosure I Page 7 GAO- 03- 634R Central and Southwest Asia To describe
foreign and multilateral aid flows to Afghanistan, Pakistan, and the five
Central Asian republics for 1993 through 2001, we reviewed data on
official development assistance from the Organization for Economic
Cooperation and Development. At the time of our review, data on official
development assistance for 2002 were not available. Official development
assistance is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. In contrast to U. S.
security and economic assistance, which is reported as obligations,
official development assistance is reported as net disbursements (actual
payments) and reflects total inflows of grants and loans minus total
outflows of loan repayments.

To describe the economic, political, and demographic characteristics of
these countries, we relied on numerous sources. We obtained maps of the
individual countries from Central Intelligence Agency publications, along
with information about land area, population under the age of 15, life
expectancy, literacy, ethnic groups (with the exception of Pakistan, which
we obtained from a Library of Congress publication), religions, type of
government and legal system, and key transnational issues. We obtained
information on population, population growth rates, and most economic and
trade data from Global Insight and information on Afghanistan*s external
debt from the Asian Development Bank. We obtained data on the percentage
of women holding seats in lower or single houses of governments from the
United Nations Development Program. We obtained information on political
rights and religious freedom from Freedom House and its Center for
Religious Freedom. We compiled information on economic freedom from the
Heritage Foundation, and on corruption from Transparency International. 6
In all cases, we used the most recently available data from these sources.

6 Transparency International*s corruption index is a 10- point numerical
scale with extremes of highly corrupt (0) and highly clean (10), but does
not identify degrees of corruption within that scale. We therefore
identified as corrupt all countries rated with scores of less than 3 on
this 10- point index.

Enclosure II Page 8 GAO- 03- 634R Central and Southwest Asia Afghanistan .
U. S. embassy The U. S. has access to military facilities in Bagram,
Kandahar, Khost, Lwara, Mazar- e Sharif, and Pul- i- Kandahar.
Afghanistan*s land area is about 650,000 square kilometers (slightly
smaller than Texas). The country is landlocked. Afghanistan has been
called the crossroads of

Central Asia and is bordered by China, Iran, Pakistan, Tajikistan,
Turkmenistan, and Uzbekistan. Following U. S. military action, the Taliban
regime fell in Afghanistan in late 2001, and an interim government was
installed to write a new constitution and prepare for national elections.
The United States has removed sanctions affecting Afghanistan that were
placed on the Taliban and Taliban- controlled areas of the country. U. S.
priorities for Afghanistan are focused on conducting the war on terrorism,
building security arrangements, fostering internal governance, and
providing humanitarian and development assistance. Afghanistan*s
population is ethnically diverse. A majority of the population is Sunni
Muslim, but the country has a significant Shi*a minority. Afghanistan*s
literacy rate is less than 50 percent for the total population, and is
even lower among women. More than 40 percent of the population is under
the age of 15. Afghanistan is economically underdeveloped and is the
world*s largest producer of opium.

U. S. Assistance U. S. Security and Economic Assistance, Fiscal Years
1993- 2004

(Total obligations, constant fiscal year 2002 U. S. dollars in millions)

From fiscal year 1993 to 2001, the United States obligated about $226
million in total assistance, about $224 million of which was economic aid.
In fiscal year 2002, budgeted assistance totaled about $401 million.
Requested assistance for fiscal years 2003 and 2004 totals about $964
million.

0 200

400 600

Security Assistance 0.0 0. 0 0.0 0. 0 0.0 0. 0 0.0 0. 0 2.8 9. 3 197.6
146.5 Economic Assistance 45.0 2. 7 14.1 16.9 30.9 0. 0 20.4 31.3 62.4
391.8 230.2 389.2

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sources:
Departments of Defense and State and U. S. Agency for International
Development. Note: Fiscal year 2002 assistance amounts are budget
authority levels and fiscal year 2003 and 2004 amounts are requested
levels from Department of State budget documents. International Aid Flows

Bilateral and Multilateral Official Development Assistance, 1993- 2001
(Net disbursements, constant 2002 U. S. dollars in millions) International
aid flows totaled about $2.1

billion from 1993 to 2001. Aid from the United States and other countries
totaled about $1.3 billion while multilateral aid totaled about $828
million. Primary donors include Germany, the Netherlands, Sweden, Norway,
the United Kingdom, the United States, the European Commission, and the
United Nations. 0

150 300

450 Multilateral ODA 136.6 102.5 122.6 109.7 115.7 70.8 40.7 54.7 74.4
Other countries' ODA 81.2 102.1 117.9 91.5 134.7 95.3 76.6 89.0 325.7 U.
S. ODA 49.6 61.3 2. 3 2.2 0. 0 0.0 34.1 2. 5 7.8

1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Organization for
Economic Cooperation and Development. Note: Official development
assistance (ODA) is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. ODA is reported as
net disbursements and reflects total inflows of grants and loans minus
total outflows of loan repayments.

Enclosure II Page 9 GAO- 03- 634R Central and Southwest Asia Demographics
Key indicators Ethnic groups Religions

Population (millions) 28.0 Growth rate (percentage) 2.6 Under 15 years old
(percentage) 42.0 Life expectancy at birth (years) 46.6 Literacy
(percentage)

male female

36.0 51.0 21.0 Seats in lower or single house held by women (percentage)

N/ A Hazara

10.0% Uzbek

8.0% Tajik

25.0% Other 13.0% Pashtun 44.0% Shi'a Muslim

15.0% Other

1.0% Sunni Muslim

84.0% Sources: Global Insight, CIA, and United Nations Development
Program. Note: N/ A = not available. Governance, Rights, and Freedoms

Type of government Transitional Type of legal system Is in the process of
being rebuilt in accordance with Islamic principles, international

standards, rule of law, and Afghan traditions Source: CIA. Afghanistan was
not rated for religious freedom by Freedom House*s Center for Religious
Freedom. Afghanistan

was also not rated for economic freedom by the Heritage Foundation or for
corruption by Transparency International. Afghanistan was rated for
political rights and civil liberties by Freedom House in its survey,
Freedom in the World, 2001- 2002. However, because of political changes in
Afghanistan over the past year, we did not include the rating.

Economics and Trade Key indicators 1996 1997 1998 1999 2000 2001 2002

Gross domestic product (GDP) (purchasing power parity, 2002 U. S. dollars
in billions) 9.4 10.0 9.6 10.0 9.8 9.1 11.1 Real GDP growth rate (percent)
6.0 6.0 -4.0 4.2 -1.8 -6.5 21.2 GDP per capita (purchasing power parity,
2002 U. S. dollars) 408 413 382 386 369 337 398 Inflation (consumer
prices, percentage) 14.0 14.0 16.0 25.0 45.0 40.0 5.3 Exports (U. S.
dollars in billions) 0.1 0.1 0.1 0.2 0.1 0.1 0.2 Imports (U. S. dollars in
billions) 0.6 0.6 0.5 0.6 0.6 0.7 1.4 External debt/ exports ratio
(percentage) 5,600 5,600 5,600 2,700 5,300 N/ A N/ A Government
expenditures as a percent of GDP N/ A N/ A N/ A N/ A N/ A N/ A N/ A
Sources: Global Insight and Asian Development Bank.

Key Transnational Issues

Major producer of opium and hashish. Political factions profit from the
drug trade.

Close ties with Pashtuns in Pakistan make the long border between
Afghanistan and Pakistan difficult to control. Source: CIA.

Enclosure III Page 10 GAO- 03- 634R Central and Southwest Asia Kazakhstan
. U. S. embassy. There was an average of 123 Peace Corps volunteers in
Kazakhstan during fiscal year 2002. Kazakhstan*s land area is about 2,
720,000 square kilometers (about four

times the size of Texas). The county is landlocked. Kazakhstan has the
largest landmass of the Central Asian republics and shares its borders
with

China, Kyrgyzstan, Russia, Turkmenistan, Uzbekistan, and the Caspian Sea.
After the September 2001 attacks, Kazakhstan provided overflight rights
and allowed for the transshipment of supplies to U. S. forces based in
Uzbekistan and Kyrgyzstan. U. S. priorities for the country include
promoting security cooperation, nonproliferation, internal reform, and
energy development. Kazakhstan has significant oil and gas reserves. State
Department officials estimate that Kazakhstan has the potential to be one
of the world*s top five oil exporters in 15 years. Kazakhstan*s population
is highly literate and nearly one third are under the age of 15. Most are
Kazakh, though the country has a significant Russian minority. Islam and
Russian Orthodox are the predominant religions. Key transnational issues
include cultivation and trafficking of drugs, border security, and water
and environmental problems.

U. S. Assistance U. S. Security and Economic Assistance, Fiscal Years
1993- 2004

(Total obligations, constant fiscal year 2002 U. S. dollars in millions)

From fiscal year 1993 to 2001, the United States obligated about $586
million in assistance. Of this amount, $193 million was for security
assistance, including

$180 million for cooperative threat reduction. In fiscal year 2002,
budgeted aid totaled about $58 million. Requested assistance for fiscal
years 2003 and 2004 totals $100 million.

0 40

80 120

160 200

Security Assistance 0.2 51.0 81.5 43.2 0. 4 8.8 2. 3 2.2 3. 1 5.6 12.7 4.
1 Economic Assistance 5.9 121.2 45.6 33.0 10.6 29.9 49.7 51.6 46.8 52.2
47.2 36.3

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sources:
Departments of Defense and State and U. S. Agency for International
Development. Note: Fiscal year 2002 assistance amounts are budget
authority levels and fiscal year 2003 and 2004 amounts are requested
levels from Department of State budget documents. International Aid Flows

Bilateral and Multilateral Official Development Assistance, 1993- 2001
(Net disbursements, constant 2002 U. S. dollars in millions) International
aid flows totaled about $1.2

billion from 1993 to 2001. Aid from the United States and other countries
totaled about $1 billion while multilateral aid totaled about $221
million. Primary donors include Germany, Japan, the United States, and the
European

Commission. 0

100 200

300 Multilateral ODA 2.3 21.2 31.6 33.4 38.8 33.0 28.8 15.3 16.5 Other
countries' ODA 8.8 26.7 33.5 35.3 73.9 140.1 109.4 120.4 77.2 U. S. ODA
10.6 13.9 9. 1 70.0 40.3 66.7 47.3 60.5 56.9

1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Organization for
Economic Cooperation and Development. Note: Official development
assistance (ODA) is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. ODA is reported as
net disbursements and reflects total inflows of grants and loans minus
total outflows of loan repayments.

Enclosure III Page 11 GAO- 03- 634R Central and Southwest Asia
Demographics Key indicators Ethnic groups Religions

Population (millions) 14.8 Growth rate (percentage) 0.0 Under 15 years old
(percentage) 26.0 Life expectancy at birth (years) 63.4 Literacy
(percentage)

male female

98.0 99.0 98.0 Seats in lower or single house held by women (percentage)

10.4 Uzbek

2.5% Ukranian

3.7% Other 10.4% Russian

30.0% Kazakh

53.4% Russian

Orthodox 44.0%

Muslim 47.0%

Other 7.0% Protestant

2.0% Sources: Global Insight, CIA, and United Nations Development Program.

Governance, Rights, and Freedoms

Type of government Republic; current president expanded his powers by
decree Type of legal system Based on civil law system Source: CIA.
Political rights and

civil liberties Religious freedom Economic freedom Corruption Sources:
Freedom House, Center for Religious Freedom, Heritage Foundation, and
Transparency International.

Economics and Trade Key indicators 1996 1997 1998 1999 2000 2001 2002

Gross domestic product (GDP) (purchasing power parity, 2002 U. S. dollars
in billions) 44.0 44.8 43.8 45.1 49.4 55.9 60.5 Real GDP growth rate
(percentage) 0.5 1.7 -1.9 2.7 9.6 13.2 8.2 GDP per capita (purchasing
power parity, 2002 U. S. dollars) 2,804 2,888 2,887 3,012 3,314 3,765
4,075 Inflation (consumer prices, percentage) 39.3 17.4 7.1 8.3 13.2 8.4
6.0 Exports (U. S. dollars in billions) 5.9 6.5 5.4 5.6 9.1 8.6 8.4
Imports (U. S. dollars in billions) 4.2 4.3 4.4 3.7 5.1 6.4 6.3 External
debt/ exports ratio (percentage) 98.2 119.3 182.7 215.3 137.7 173.4 210.6
Government expenditures as a percent of GDP 19.8 19.1 15.6 16.2 15.0 15.0
16.8 Source: Global Insight.

Key Transnational Issues

Significant cultivation and trafficking of cannabis; transshipment point
for drugs from Southwest Asia to Russia, Western Europe, and North
America.

Working with China and Russia to settle boundaries, control migration, and
limit illegal activities and trade.

Water and environmental disputes with Tajikistan, Turkmenistan, and
Uzbekistan (as a result of the shrinking of the Aral Sea); dispute with
Kyrgyzstan over water and hydroelectric power. Source: CIA.

5.5 Not free 4.0 Partly free 3.50 Mostly unfree 2.3 Corrupt Not free

7 Unfree 7

Repressed 5

Highly corrupt 0

Free 1

Free 1

Free 1

Highly clean 10 5.5 Not free

4.0 Partly free 3.50 Mostly unfree 2.3 Corrupt Not free

7 Unfree 7

Repressed 5

Highly corrupt 0

Free 1

Free 1

Free 1

Highly clean 10

Enclosure IV Page 12 GAO- 03- 634R Central and Southwest Asia Kyrgyzstan .
U. S. embassy There was an average of 68 Peace Corps volunteers in
Kyrgyzstan during fiscal year 2002. The U. S. has access to military
facilities in Manas and Osh.

Kyrgyzstan*s land area is about 200,000 square kilometers (slightly
smaller than South Dakota). The country is landlocked. Bordered by China,
Kazakhstan, Tajikistan, and

Uzbekistan, Kyrgyzstan has played an important regional role in the war on
terrorism, providing base access and overflight rights for U. S. and
coalition forces. U. S. priorities for Kyrgyzstan have focused on
expanding security relationships and support for political and economic
reform. Kyrgyzstan*s population is highly literate and a majority is
Kyrgyz. More than a third of the population is under the age of 15, and a
majority of the population is Muslim. According to State Department
officials, Kyrgyzstan is more politically advanced than most of its
Central Asian neighbors but still has a poor human rights record.
Kyrgyzstan is the only Central Asian republic to accede to the World Trade
Organization, having done so in 1998. Kyrgyzstan has increasingly become a
transshipment point for drugs; has periodically dealt with Islamic
insurgents from Afghanistan, Tajikistan, and Uzbekistan; and has ongoing
water and territorial disputes with Kazakhstan, Tajikistan, and
Uzbekistan.

U. S. Assistance U. S. Security and Economic Assistance, Fiscal Years
1993- 2004

(Total obligations, constant fiscal year 2002 U. S. dollars in millions)

From fiscal year 1993 to 2001, the United States obligated about $317
million in assistance, about $309

million of which was economic aid. In fiscal year 2002, budgeted
assistance totaled about $85 million. Requested assistance for fiscal
years 2003 and 2004 totals about $92 million.

0 30

60 90

Security Assistance 0.0 0. 0 0.1 0. 2 0.3 2. 3 2.0 1. 5 2.2 11.6 5. 0 7.0
Economic Assistance 73.2 49.5 28.5 18.9 5. 8 17.6 43.3 38.8 33.2 73.1 38.0
41.9

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sources:
Departments of Defense and State and U. S. Agency for International
Development. Note: Fiscal year 2002 assistance amounts are budget
authority levels and fiscal year 2003 and 2004 amounts are requested
levels from Department of State budget documents. International Aid Flows

Bilateral and Multilateral Official Development Assistance, 1993- 2001
(Net disbursements, constant 2002 U. S. dollars in millions) Between 1993
and 2001, international aid

flows totaled about $2.1 billion. Aid from the United States and other
countries totaled about $906 million while multilateral assistance totaled
over $1.2 billion. Primary donors include Japan, the United States, the
Asian Development Bank, and the World Bank.

0 200

400 Multilateral ODA 28.5 98.4 210.8 145.4 204.5 162.1 160.5 115.9 113.8
Other countries' ODA 34.0 77.4 90.3 79.7 48.0 63.6 108.2 81.5 48.8 U. S.
ODA 69.7 25.5 21.5 31.1 8. 7 32.3 32.0 25.6 28.5

1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Organization for
Economic Cooperation and Development. Note: Official development
assistance (ODA) is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. ODA is reported as
net disbursements and reflects total inflows of grants and loans minus
total outflows of loan repayments.

Enclosure IV Page 13 GAO- 03- 634R Central and Southwest Asia Demographics
Key indicators Ethnic groups Religions

Population (millions) 5.0 Growth rate (percentage) 1.5 Under 15 years old
(percentage) 34.4 Life expectancy at birth (years) 63.6 Literacy
(percentage)

male female

97.0 99.0 96.0 Seats in lower or single house held by women (percentage)

10.0 Kyrgyz 52.4%

Russian 18.0%

Uzbek 12.9%

Other 14.2%

Ukrainian 2.5%

Other 5.0% Muslim

75. 0% Russian Orthodox

20. 0%

Sources: Global Insight, CIA, and United Nations Development Program.

Governance, Rights, and Freedoms

Type of government Republic Type of legal system Based on civil law system
Source: CIA. Political rights and

civil liberties Religious freedom Economic freedom Corruption Sources:
Freedom House, Center for Religious Freedom, Heritage Foundation, and
Transparency International.

Economics and Trade Key indicators 1996 1997 1998 1999 2000 2001 2002

Gross domestic product (GDP) (purchasing power parity, 2002 U. S. dollars
in billions) 10.5 11.7 11.9 12.3 13.0 13.7 13.4 Real GDP growth rate
(percentage) 7.1 9.9 2.1 3.7 5.4 5.3 -1.8 GDP per capita (purchasing power
parity, 2002 U. S. dollars) 2,290 2,482 2,497 2,549 2,653 2,770 2,699
Inflation (consumer prices, percentage) 31.9 23.5 10.4 35.9 18.7 6.9 2.5
Exports (U. S. dollars in billions) 0.5 0.6 0.5 0.5 0.5 0.5 0.5 Imports
(U. S. dollars in billions) 0.8 0.6 0.8 0.5 0.5 0.4 0.5 External debt/
exports ratio (percentage) 137.9 151.6 250.3 363.9 347.5 368.0 362.6
Government expenditures as a percent of GDP 22.2 21.8 21.4 19.1 17.3 16.6
17.4 Source: Global Insight.

Key Transnational Issues

Increasingly used as a transshipment point for drugs from Southwest Asia
to Russia and Western Europe.

Periodic target of Islamic insurgents from Afghanistan, Tajikistan, and
Uzbekistan.

Water and hydroelectric power disputes with Kazakhstan; territorial
disputes with Tajikistan and Uzbekistan. Source: CIA.

5.5 Not free 4.0 Partly free 3.35 Mostly unfree 2.2 Corrupt Not free

7 Unfree 7

Repressed 5

Highly corrupt 0

Free 1

Free 1

Free 1

Highly clean 10

Enclosure V Page 14 GAO- 03- 634R Central and Southwest Asia Pakistan . U.
S. embassy; | U. S. consulates The U. S. has access to military facilities
in Jacobabad and other locations. Pakistan*s land area is about 800,000
square kilometers (about twice the size of California). Pakistan shares
its borders with Afghanistan,

China, India, and Iran. Pakistan has become an important U. S. partner in
the war on terrorism, providing basing and overflight rights for U. S. and
coalition forces in Operation Enduring Freedom. The United States has
waived sanctions imposed on Pakistan for its development and testing of
nuclear weapons and in response to the 1999 military coup. U. S.
priorities for Pakistan include promoting enhanced security cooperation
and nonproliferation and encouraging political reform and economic
development. Pakistan*s population is predominantly Muslim and nearly 40
percent are under the age of 15. Pakistan has a poor economic outlook and
is highly indebted. Key transitional issues include its continued conflict
with India over Kashmir, drug trafficking, and its long border with
Afghanistan that is difficult to control.

U. S. Assistance U. S. Security and Economic Assistance, Fiscal Years
1993- 2004

(Total obligations, constant fiscal year 2002 U. S. dollars in millions)

From fiscal year 1993 to 2001, the United States obligated about $384
million in total assistance, all of which was economic assistance. In
fiscal

year 2002, budgeted assistance totaled about $1 billion. Requested
assistance for fiscal years 2003 and 2004 totals about $686 million.

0 200

400 600

800 1,000

1,200 Security Assistance 0.0 0. 0 0.0 0. 0 0.0 0. 0 0.0 0. 0 0.0 75.9
50.4 74.2 Economic Assistance 62.4 57.5 19.4 18.3 46.1 19.4 65.6 4. 0 91.7
974.2 251.0 310.4

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sources:
Departments of Defense and State and U. S. Agency for International
Development. Note: Fiscal year 2002 assistance amounts are budget
authority levels and fiscal year 2003 and 2004 amounts are requested
levels from Department of State budget documents. International Aid Flows

Bilateral and Multilateral Official Development Assistance, 1993- 2001
(Net disbursements, constant 2002 U. S. dollars in millions) International
aid flows totaled more than $10

billion from 1993 to 2001. Aid from the United States and other countries
totaled about $4.5 billion while multilateral aid totaled about $5.7
billion. Primary donors include Japan, the Asian Development Bank, the
United Nations, and the World Bank.

-500 0

500 1,000

1,500 2,000

2,500 Multilateral ODA 663.6 1, 285.2 598.7 677.0 577.6 562.2 315.6 235.3
826.5 Other countries' ODA 460.0 633.8 427.5 417.4 155.2 615.8 383.3 402.3
354.6 U. S. ODA 63.8 -61.3 -92.9 -112.2 -82.8 -43.9 79.6 91.8 788.1

1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Organization for
Economic Cooperation and Development. Note: Official development
assistance (ODA) is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. ODA is reported as
net disbursements and reflects total inflows of grants and loans minus
total outflows of loan repayments.

Enclosure V Page 15 GAO- 03- 634R Central and Southwest Asia Demographics
Key indicators Ethnic groups Religions

Population (millions) 144.7 Growth rate (percentage) 2.4 Under 15 years
old (percentage) 39.9 Life expectancy at birth (years) 61.8 Literacy
(percentage)

male female

43.0 55.0 29.0 Seats in lower or single house held by women (percentage)

21.1 Sindhi

12.1% Pashtun

13.8% Punjabi

59.1% Other 3.0%

Muhajir 7.7% Baloch

4.3% Shi'a Muslim

20.0% Other

3.0% Sunni Muslim 77.0% Sources: Global Insight, CIA, Library of Congress,
and United Nations Development Program.

Governance, Rights, and Freedoms

Type of government Federal republic Type of legal system Based on English
common law with certain added provisions to accommodate its status as

an Islamic state Source: CIA. Political rights and

civil liberties Religious freedom Economic freedom Corruption Sources:
Freedom House, Center for Religious Freedom, Heritage Foundation, and
Transparency International.

Economics and Trade Key indicators 1996 1997 1998 1999 2000 2001 2002

Gross domestic product (GDP) (purchasing power parity, 2002 U. S. dollars
in billions) 308.5 311.7 319.7 331.3 346.1 354.8 367.5 Real GDP growth
rate (percentage) 3.9 1.0 2.6 3.7 4.4 2.5 3.6 GDP per capita (purchasing
power parity, 2002 U. S. dollars) 2,460 2,426 2,429 2,458 2,506 2,509
2,540 Inflation (consumer prices, percentage) 10.4 11.4 6.2 4.1 4.4 3.1
4.0 Exports (U. S. dollars in billions) 9.3 9.3 9.6 9.0 9.2 8.9 10.5
Imports (U. S. dollars in billions) 14.1 13.6 12.2 12.0 11.3 12.0 14.4
External debt/ exports ratio (percentage) 320.4 323.7 336.5 376.7 372.8
389.9 310.5 Government expenditures as a percent of GDP 24.3 22.6 23.1
22.7 23.4 23.6 24.4 Source: Global Insight.

Key Transnational Issues

Key transshipment point for heroin from Southwest Asia to western markets.

Continuing armed dispute with India over the status and sovereignty of
Kashmir and disputes with India over maritime boundaries and Indus River
water sharing.

Close ties between Pashtuns in Afghanistan and Pakistan make long border
difficult to control. Source: CIA.

5.5 Not free 6.0 Unfree

3.30 Mostly unfree 2.6 Corrupt Not free

7 Unfree 7

Repressed 5

Highly corrupt 0

Free 1

Free 1

Free 1

Highly clean 10

Enclosure VI Page 16 GAO- 03- 634R Central and Southwest Asia Tajikistan .
U. S. embassy

The U. S. has access to military facilities in Dushanbe, Khujand, Kulyab,
and Kurgan- Tyube.

Tajikistan*s land area is about 140,000 square kilometers (slightly
smaller than Wisconsin). The country is landlocked. Tajikistan shares its
borders with Afghanistan,

China, Kyrgyzstan, and Uzbekistan. Tajikistan provided access to bases for
U. S. forces in the war on terrorism. U. S. priorities for Tajikistan
include expanding security cooperation and encouraging political and
economic reform. The country*s 5- year civil war ended with a powersharing
peace accord implemented in 2000. As a result, Tajikistan is the only
Central Asian country in which a religiously affiliated political party is
represented in parliament. Tajikistan is the poorest of the former Soviet
republics, and international aid flows are an important source of

economic support for the country. Like the other Central Asian republics,
Tajikistan*s population is highly literate, and a large percentage is
under the age of 15. Majorities of the population are Tajik and Muslim.
Tajikistan is a major transshipment point for drugs and has been used as a
staging ground for Islamic insurgents into Uzbekistan.

U. S. Assistance U. S. Security and Economic Assistance, Fiscal Years
1993- 2004

(Total obligations, constant fiscal year 2002 U. S. dollars in millions)

From fiscal year 1993 to 2001, the U. S. obligated about $195 million in
total assistance, of which about $193 million was economic assistance. In
fiscal year 2002, budgeted assistance totaled about $94 million. Requested
assistance for fiscal years 2003 and 2004 totals about $68 million.

0 40

80 120

Security Assistance 0.0 0. 0 0.0 0. 0 0.0 1. 6 0.0 0. 0 0.0 4. 0 0.3 1. 1
Economic Assistance 17.2 53.5 9. 5 3.8 11.6 10.9 27.4 21.9 37.5 90.1 22.3
44.5

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sources:
Departments of Defense and State and U. S. Agency for International
Development. Note: Fiscal year 2002 assistance amounts are budget
authority levels and fiscal year 2003 and 2004 amounts are requested
levels from Department of State budget documents. International Aid Flows

Bilateral and Multilateral Official Development Assistance, 1993- 2001
(Net disbursements, constant 2002 U. S. dollars in millions) Between 1993
and 2001, international aid

totaled about $1 billion. Aid from the United States and other countries
totaled about $382 million. Multilateral assistance totaled about $621
million. Primary donors include Germany, the Netherlands, Switzerland, the
United Kingdom, the United States, the European Commission, and the World
Bank.

0 100

200 Multilateral ODA 4.8 44.4 29.0 65.3 53.8 129.0 92.3 107.5 95.1 Other
countries' ODA 5.8 12.0 24.7 26.2 25.7 16.8 17.1 16.7 25.6 U. S. ODA 20.1
20.8 20.4 23.3 14.2 27.2 20.8 23.5 41.1

1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Organization for
Economic Cooperation and Development. Note: Official development
assistance (ODA) is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. ODA is reported as
net disbursements and reflects total inflows of grants and loans minus
total outflows of loan repayments.

Enclosure VI Page 17 GAO- 03- 634R Central and Southwest Asia Demographics
Key indicators Ethnic groups Religions

Population (millions) 6.6 Growth rate (percentage) 2.1 Under 15 years old
(percentage) 40.4 Life expectancy at birth (years) 64.3 Literacy
(percentage)

male female

98.0 99.0 97.0 Seats in lower or single house held by women (percentage)

12.7 Tajik 64.9% Other

6.6% Russian

3.5% Uzbek

25.0% Sunni Muslim 85.0%

Shi'a Muslim 5.0%

Other 10.0%

Sources: Global Insight, CIA, and United Nations Development Program.

Governance, Rights, and Freedoms

Type of government Republic Type of legal system Based on civil law system
Source: CIA. Political rights and

civil liberties Religious freedom Not rated

Economic freedom Corruption Not rated

Sources: Freedom House, Center for Religious Freedom, Heritage Foundation,
and Transparency International.

Economics and Trade Key indicators 1996 1997 1998 1999 2000 2001 2002

Gross domestic product (GDP) (purchasing power parity, 2002 U. S. dollars
in billions) 5.6 5.7 5.9 6.1 6.7 7.4 8.0 Real GDP growth rate (percentage)
-4.4 1.7 5.3 3.7 8.3 10.2 9.8 GDP per capita (purchasing power parity,
2002 U. S. dollars) 944 946 980 1,000 1,058 1,142 1,228 Inflation
(consumer prices, percentage) 502.4 88.0 43.2 27.5 32.9 38.6 10.6 Exports
(U. S. dollars in billions) 0.8 0.7 0.6 0.7 0.8 0.7 0.7 Imports (U. S.
dollars in billions) 0.8 0.8 0.7 0.7 0.8 0.8 0.9 External debt/ exports
ratio (percentage) 112.6 148.3 201.2 182.4 152.1 196.3 233.0 Government
expenditures as a percent of GDP 17.9 15.9 17.4 17.6 14.5 15.0 15.3
Source: Global Insight.

Key Transnational Issues

Major transshipment point for drugs from Afghanistan to Russia and Western
Europe.

Water and environmental disputes with Kazakhstan, Turkmenistan, and
Uzbekistan (as a result of the shrinking of the Aral Sea). Unresolved
border and territorial disputes with China, Kyrgyzstan, and Uzbekistan.

Source: CIA. 6.0 Not free

3.95 Mostly unfree Not free

7 Unfree 7

Repressed 5

Highly corrupt 0

Free 1

Free 1

Free 1

Highly clean 10

Enclosure VII Page 18 GAO- 03- 634R Central and Southwest Asia
Turkmenistan . U. S. embassy

There was an average of 54 Peace Corps volunteers in Turkmenistan during
fiscal year 2002. Turkmenistan*s land area is about 490,000 square
kilometers (slightly larger than California). The country is landlocked.
Turkmenistan borders Afghanistan, Iran,

Kazakhstan, Uzbekistan, and the Caspian Sea. A former Soviet republic,
Turkmenistan has declared itself as permanently neutral and has not
provided formal military assistance in the war on terrorism. However, it
aided the international community in transporting humanitarian relief to
Afghanistan. U. S. priorities for Turkmenistan are focused on encouraging
internal reform, strengthening security relationships, and promoting
energy development. Turkmenistan has the world*s fifth largest natural gas
reserves, and it is the world*s tenth largest producer of cotton. The
country*s population is highly literate. More than one- third of the
population is under age 15, and more than three- quarters are Turkmen and
Muslim. The country is not politically free* independent and opposition
political activity are prohibited* and corruption is pervasive. It faces
problems with drug trafficking and environmental disputes with its
neighbors.

U. S. Assistance U. S. Security and Economic Assistance, Fiscal Years
1993- 2004

(Total obligations, constant fiscal year 2002 U. S. dollars in millions)

From fiscal year 1993 to 2001, the United States obligated about $153
million in assistance, about $149 million of which was economic aid. In
fiscal year 2002, budgeted assistance totaled about $20 million. Requested
assistance for fiscal years 2003 and 2004 totals about $20 million.

0 20

40 Security Assistance 0.0 0. 1 0.1 0. 2 0.3 0. 9 1.0 0. 9 1.0 0. 4 1.1 1.
1 Economic Assistance 38.6 32.3 6. 0 32.2 3. 3 4.8 12.3 10.6 8. 5 19.3 8.
4 9.7

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sources:
Departments of Defense and State and U. S. Agency for International
Development. Note: Fiscal year 2002 assistance amounts are budget
authority levels and fiscal year 2003 and 2004 amounts are requested
levels from Department of State budget documents. International Aid Flows

Bilateral and Multilateral Official Development Assistance, 1993- 2001
(Net disbursements, constant 2002 U. S. dollars in millions) International
aid flows totaled about $294

million from 1993 to 2001. Aid from the United States and other countries
totaled about $218 million while multilateral flows totaled about $76
million. Primary donors include Japan, Turkey, the United States, the
European Commission, and the United Nations.

0 40

80 Multilateral ODA 0.5 13.3 10.3 11.1 9. 0 9.0 9. 6 5.9 7. 3 Other
countries' ODA 7.1 1. 3 3.3 2. 0 4.4 14.2 7. 0 19.0 51.3 U. S. ODA 28.3
15.0 18.1 13.3 0. 0 2.6 8. 8 7.8 14.3

1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Organization for
Economic Cooperation and Development. Note: Official development
assistance (ODA) is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. ODA is reported as
net disbursements and reflects total inflows of grants and loans minus
total outflows of loan repayments.

Enclosure VII Page 19 GAO- 03- 634R Central and Southwest Asia
Demographics Key indicators Ethnic groups Religions

Population (millions) 4.9 Growth rate (percentage) 1.9 Under 15 years old
(percentage) 37.3 Life expectancy at birth (years) 61.1 Literacy
(percentage)

male female

98.0 99.0 97.0 Seats in lower or single house held by women (percentage)

26.0 Turkmen

77.0% Uzbek

9.2% Russian

6.7% Other

7.1% Muslim

89.0% Other

2.0% Eastern

Orthodox 9.0%

Sources: Global Insight, CIA, and United Nations Development Program.

Governance, Rights, and Freedoms

Type of government Republic Type of legal system Based on civil law system
Source: CIA. Political rights and

civil liberties Religious freedom Economic freedom Corruption Not rated

Sources: Freedom House, Center for Religious Freedom, Heritage Foundation,
and Transparency International.

Economics and Trade Key indicators 1996 1997 1998 1999 2000 2001 2002

Gross domestic product (GDP) (purchasing power parity, 2002 U. S. dollars
in billions) 15.9 14.0 14.7 17.1 20.2 24.2 28.1 Real GDP growth rate
(percentage) -6.7 -11.3 5.0 16.0 17.6 20.5 15.7 GDP per capita (purchasing
power parity, 2002 U. S. dollars) 3,499 3,051 3,152 3,612 4,202 5,006
5,685 Inflation (consumer prices, percentage) 992.4 83.6 16.7 19.7 14.0
14.9 10.8 Exports (U. S. dollars in billions) 1.7 0.8 0.6 1.2 2.5 2.6 3.0
Imports (U. S. dollars in billions) 1.4 1.0 1.1 1.5 1.8 2.3 2.3 External
debt/ exports ratio (percentage) 39.5 175.2 284.9 172.7 64.1 68.7 66.0
Government expenditures as a percent of GDP 21.4 26.6 25.9 19.8 25.3 24.2
30.3 Source: Global Insight.

Key Transnational Issues

Increasing transshipment point for drugs from Southwest Asia to Russia and
Western Europe.

Water and environmental disputes with Kazakhstan, Tajikistan, and
Uzbekistan (as a result of the shrinking of the Aral Sea).

Dispute with Iran about seabed and maritime boundaries in the Caspian Sea.
Source: CIA.

4.15 Repressed Not free

7 Unfree 7

Repressed 5

Highly corrupt 0

Free 1

Free 1

Free 1

Highly clean 10

Enclosure VIII Page 20 GAO- 03- 634R Central and Southwest Asia Uzbekistan
. U. S. embassy There was an average of 54 Peace Corps volunteers in
Uzbekistan during

fiscal year 2002. The U. S. has access to military facilities in Chirchik,
Khanabad, and Tuzel. Uzbekistan*s land area is about 450,000 square
kilometers (slightly larger than California). The country is landlocked.
Uzbekistan is Central Asia*s most populated

country and borders Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, and
Turkmenistan. After the September 2001 attacks, it became an important U.
S. strategic partner in the war on terrorism, allowing the U. S. to base
forces at its military facilities. In March 2002, the United States and
Uzbekistan signed the Declaration

on the Strategic Partnership and Cooperation Framework, which affirms a
joint commitment to establish stability and security in Central Asia. U.
S. priorities for Uzbekistan include enhancing security cooperation and
encouraging political and economic reform. A former Soviet republic,
Uzbekistan is strategically placed but politically repressed. The country
carries a large amount of debt. Uzbekistan*s population is highly
literate, predominantly Uzbek and Muslim, and more than a third of the
population is under age 15. Key transnational issues include increased
drug trafficking, radical Islamic groups, and severe water and
environmental problems.

U. S. Assistance U. S. Security and Economic Assistance, Fiscal Years
1993- 2004

(Total obligations, constant fiscal year 2002 U. S. dollars in millions)

From fiscal year 1993 to 2001, the United States obligated about $208
million in assistance, about $188 million of this in economic aid. In
fiscal year 2002, budgeted assistance totaled about $160 million.
Requested assistance for fiscal years 2003 and 2004 totals about $100
million.

0 40

80 120

160 200

Security Assistance 0.0 0. 0 0.1 0. 3 6.8 2. 2 2.3 2. 4 5.9 37.1 9. 8 11.3
Economic Assistance 1.7 28.6 13.0 12.1 4. 8 14.1 34.6 32.8 46.7 123.3 34.2
44.6

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sources:
Departments of Defense and State and U. S. Agency for International
Development. Note: Fiscal year 2002 assistance amounts are budget
authority levels and fiscal year 2003 and 2004 amounts are requested
levels from Department of State budget documents. International Aid Flows

Bilateral and Multilateral Official Development Assistance, 1993- 2001
(Net disbursements, constant 2002 U. S. dollars in millions) Between 1993
and 2001, international aid

to Uzbekistan totaled about $1.1 billion. Aid from the United States and
other countries totaled about $975 million and multilateral aid totaled
about $161 million. Primary donors include Germany, Japan, the United
States, the European Commission, and the United Nations.

0 100

200 300

Multilateral ODA 4.4 18.4 16.7 24.5 18.6 21.2 22.2 17.7 17.1 Other
countries' ODA 68.4 9. 6 77.2 66.5 131.5 144.7 124.2 138.3 87.5 U. S. ODA
1.2 4. 6 1.1 6. 7 2.2 4. 7 18.6 37.0 51.0

1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Organization for
Economic Cooperation and Development. Note: Official development
assistance (ODA) is defined as aid flows to a country provided by official
agencies to promote economic development and welfare. ODA is reported as
net disbursements and reflects total inflows of grants and loans minus
total outflows of loan repayments.

Enclosure VIII Page 21 GAO- 03- 634R Central and Southwest Asia
Demographics Key indicators Ethnic groups Religions

Population (millions) 25.8 Growth rate (percentage) 1.6 Under 15 years old
(percentage) 35.5 Life expectancy at birth (years) 63.9 Literacy
(percentage)

male female

99.0 99.0 99.0 Seats in lower or single house held by women (percentage)

7.2 Other

6.6% Kazakh

3.0% Tajik

5.0% Russian

5.5% Uzbek 80.0%

Muslim 88.0%

Eastern Orthodox

9.0% Other

3.0% Sources: Global Insight, CIA, and United Nations Development Program.

Governance, Rights, and Freedoms

Type of government Republic Type of legal system Evolution of Soviet civil
law Source: CIA. Political rights and

civil liberties Religious freedom Economic freedom Corruption

Sources: Freedom House, Center for Religious Freedom, Heritage Foundation,
and Transparency International.

Economics and Trade Key indicators 1996 1997 1998 1999 2000 2001 2002

Gross domestic product (GDP) (purchasing power parity, 2002 U. S. dollars
in billions) 61.9 63.4 66.3 69.1 71.8 75.1 79.3 Real GDP growth rate
(percentage) 1.6 2.5 4.4 4.3 4.0 4.5 5.7 GDP per capita (purchasing power
parity, 2002 U. S. dollars) 2,701 2,717 2,786 2,862 2,933 3,013 3,129
Inflation (consumer prices, percentage) 54.0 71.0 29.0 29.1 24.9 27.3 25.1
Exports (U. S. dollars in billions) 3.5 3.7 2.9 2.7 2.7 3.3 3.0 Imports
(U. S. dollars in billions) 4.2 3.8 2.7 2.6 2.5 3.1 2.8 External debt/
exports ratio (percentage) 67.4 70.2 120.6 157.7 170.1 154.7 175.6
Government expenditures as a percent of GDP 39.9 32.5 33.1 31.0 29.5 27.0
25.6 Source: Global Insight.

Key Transnational Issues

Increasing transshipment point for drugs from Afghanistan to Russia and
Western Europe.

Periodic incursions by radical Islamic groups based in Tajikistan and
Afghanistan.

Water and environmental disputes with Kazakhstan, Tajikistan, and
Turkmenistan (as a result of the shrinking of the Aral Sea); border
disputes with Kazakhstan and Kyrgyzstan. Source: CIA.

6.5 Not free 6.0 Unfree 4.25 Repressed

2.9 Corrupt Not free

7 Unfree 7

Repressed 5

Highly corrupt 0

Free 1

Free 1

Free 1

Highly clean 10

Enclosure IX Page 22 GAO- 03- 634R Central and Southwest Asia Sources Map
and land area: CIA World Factbook 2002, http:// www. cia. gov/ cia/
publications/ factbook/ index. html.

Peace Corps volunteers: http:// www. peacecorps. gov/ indexf. cfm.

U. S. access to military facilities: http:// www. globalsecurity. org/
military/ facility/ centcom. htm. U. S. Assistance U. S. security and
economic assistance: U. S. Overseas Loans and Grants Online (the
Greenbook), http:// qesdb. cdie. org/ gbk/ index. html, Department of
State Congressional Budget Justifications for fiscal years 2003 and 2004,
http:// www. state. gov/ m/ rm/ c6112.htm, and the Department of Defense.

International Aid Flows U. S., other countries*, and multilateral official
development assistance (ODA): Organization for Economic Cooperation and
Development, net disbursements of official development assistance and
official aid, http:// www. oecd. org/ htm/ M00005000/ M00005347. htm.

Demographics Population and growth rate: Global Insight, international
online analysis, detailed forecast files, 2002, http:// www.
globalinsight. com.

Percent of population under 15 years old, life expectancy at birth, and
literacy rates: CIA World Factbook 2002, http:// www. cia. gov/ cia/
publications/ factbook/ index. html.

Percent of seats in lower or single house held by women: UNDP Human
Development Indicators 2002, http:// hdr. undp. org/ reports/ global/
2002/ en/ indicator/ indicator. cfm? File= indic_ 513_ 1_ 1. html.

Major ethnic groups: CIA World Factbook 2002, http:// www. cia. gov/ cia/
publications/ factbook/ index. html.

Pakistan: Pakistan: A Country Study, Library of Congress, 1994, http://
lcweb2. loc. gov/ frd/ cs/ pktoc. html.

Major religions: CIA World Factbook 2002, http:// www. cia. gov/ cia/
publications/ factbook/ index. html. Governance, Rights, and Freedoms Type
of government and legal system: CIA World Factbook 2002, http:// www. cia.
gov/ cia/ publications/ factbook/ index. html.

Political rights and civil liberties: Freedom House Freedom in the World
2001- 2002,

http:// www. freedomhouse. org/ research/ freeworld/ 2002/ countries. htm.

Religious freedom: Freedom House Center for Religious Freedom, Religious
Freedom in the World: A Global Report on Freedom and Persecution, 2002,
http:// www. freedomhouse. org/ religion/ publications/ rfiw/ fig1. htm.

Economic freedom: The Heritage Foundation, Index of Economic Freedom, 2003
http:// www. heritage. org/ research/ features/ index.

Corruption: Transparency International, Corruption Perceptions Index 2002,
http:// www. transparency. org/ cpi/ index. html# cpi.

Kyrgyzstan: Transparency International, Corruption Perceptions Index 1999,
http:// www. transparency. org/ cpi/ index. html# cpi. Economics and Trade

Economic and trade data: Global Insight, international online analysis,
detailed forecast files, http:// www. globalinsight. com. Afghanistan
external debt: Asian Development Bank, Key Indicators of Developing Asian
and Pacific

Countries, 2002, http:// www. adb. org/ Documents/ Books/ Key_ Indicators/
2002/ default. asp.

Key Transnational Issues

CIA World Factbook 2002, http:// www. cia. gov/ cia/ publications/
factbook/ index. html. (320169)

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