Mr. Mike Pfister
Division on Investment, Technology and Enterprise Development
UNCTAD
Palais des Nations, CH-1211 Geneva 10, Switzerland
e-mail: SilkRoadForum@unctad.org
18.05.07
The Silk Road Investment Forum
The second regional Silk Road Investment Forum is in the planning stages and will be held 26-27 October 2007 in Bishkek, Kyrgyz' Republic. More information about it will be available closer to that date. In the meantime, please see the account below of the first Investment Forum held in June 2006.
The first regional Silk Road Investment Forum took place in the ancient city of Xi'an on June 7-9. Aimed at revitalizing old Silk Road trade traditions, the forum brought together, for the first time, public and private sector representatives, primarily from China and Central Asia, but also from neighbouring countries and beyond, for discussions on regional investment opportunities.
Gate to the Convention Centre Compound, Renmin Square in Xi'an
Background and organization
The conference was organized under the Silk Road Initiative (SRI); a regional UNDP program in association with UN Conference on Trade and Development (UNCTAD) and UN World Tourism Organization (UNWTO), which aims to enhance regional cooperation and integration among Silk Road countries in trade, investment and tourism (current member countries include China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan).
The conference was co-sponsored and co-organized by the City of Xi'an, BOAO Forum for Asia, Shanghai Cooperation Organization (SCO), China Group Companies Promotion Association (CGCPA) and China International Centre for Economic and Technical Exchange (CICETE).
Contents
In addition to plenary sessions with key note speakers from the Chinese and Central Asian governments, private sector CEOs and high-level delegates from international organisations (including three UN agencies), the conference boasted individual presentations of the Central Asian countries, national investment advice and regional financing possibilities. Opportunities in the following selected sectors were explored:
- Agro-based industries
- Tourism development
- Energy and mining
- Transportation, transit and IT
The conference also provided an ideal backdrop to officially launch the UNDP Central Asian Human Development Report in China. The report and an accompanying video were presented to participants, as well as prospects for creative industries in the region. Furthermore, participants were treated to a wide variety of cultural performances from both China and Central Asia.
Tang Dynasty Performance
Significance
The completion of the Investment Forum marks an essential milestone for the Silk Road Initiative. A new regional tradition has now been established where the Investment Forum will be held annually on a rotating basis in Silk Road countries. The SRI believes regional cooperation is key to further growth and development in the area, just like the cooperative spirit that ensured prosperity along the ancient Silk Road trade route.
The Silk Road Investment Forum provides a platform from where such cooperation can be launched. It is an important first step in establishing networks, encouraging dialogue, bridging cultural divides and promoting awareness of a resourceful and exciting region. Furthermore, it signifies an opportunity to learn about each others' needs and capacities; realities and potentials; and to identify realistic ways of collaboration.
Central Asian Performance
Challenges
Realizing a conference at this level is not an easy task and the inaugural nature of the Forum presented a series of organizational challenges. Three official languages (English, Chinese and Russian) and participants from all over the world made for complex logistical arrangements. Juggling bookings, visas, and registrations all the while trying to confirm participation (especially of key speakers) and content, made the last month of preparations entertaining to say the least.
This is however nothing compared to the challenges ahead for many Silk Road countries to become equal players in the global arena. On the one hand there are physical barriers to trade such as poor infrastructure for roads, communication, energy, and health. On the other hand are less tangible obstacles; making them all the more difficult to surmount. Certain countries in the region still suffer from political instability which affects domestic and foreign policies. Complex tariffs and customs procedures make it plain difficult to conduct business. Tedious and expensive visa regulations coupled with ignorance of the region, keep tourists from visiting.
Khalid Malik speaking at the opening ceremony
To overcome organizational challenges, SRI together with the city of Xi'an relied on UNDP country offices in Central Asia, as well as on its many international partner organizations. Indeed, the SRI was specifically designed to implement the ideals it promotes by acting according to those very ideals. Thus, through multilateral cooperation and organizational integration, SRI may harness and allocate resources in the most effective way, while involving relevant stakeholders. The idea is for these stakeholders to assume ownership of the Silk Road concept and sustain it until the Silk Road, once again, can sustain itself.
In order to reduce barriers to trade, investment and tourism, it is not enough for the UNDP to simply build a new road, construct a tourist resort, or invest in a local company. To meet the Millenium Development Goals of reducing poverty and creating environmentally friendly, sustainable economies it takes a more concerted effort: It means multilateral dialogue, policy integration and corporate cooperation. It will take patience, determination, and understanding.
Results
The Investment Forum has established a new, long-term mechanism for capacity building with a regional focus. It resulted in a symbolic Declaration confirming stakeholders' continued dedication to, and interest in, development along Silk Road, and in an announcement by the Kyrgyz Republic's Finance and Economy Minister, Mr. Japarov, to host next year's Forum in the capital of Bishkek.
The Forum also produced some business partnerships with the Chinese computer company Lenovo signing a letter of intent with the Ministry of Communications in Kazakhstan leading to a contract for 500 sets of computers (with the final agreement to be signed shortly after the Forum). Lenovo will set up a representative office in Kazakhstan. A tractor producer from China started discussions on possible cooperation with an Uzbek partner, and another Chinese company opened talks on real estate cooperation with a prospective partner from Kazakhstan. An Uzbek private sector company identified a partner in Xi'an that will cooperate in retail packaging and distribution of Uzbek products in China.
To facilitate investment and to disseminate information about the Silk Road area, the SRI commissioned an external investment expert, Mr. Peter Brimble to write an Investor's Guide to the Silk Road Region, the first draft of which was distributed among forum participants. The final version of the guide with forum discussions taken into account will later be published in the three languages of SRI (English, Chinese and Russian). Furthermore, a paper on branding of the region prepared by UNCTAD was distributed in three languages at the Forum.
In addition, SRI hired a publishing house to produce a Silk Road map (distributed in mini format at the Forum), including an old map showing the variety of routes from China to Europe, and a contemporary map depicting the four central Asian countries and western China, for easy reference of the area.
Opening session
Beyond the Forum
For some participants, the Forum extended into a two-day trip to Xinjiang Province to continue discussions and solidify new friendships. Staying in a Silk Road theme hotel, at the gracious invitation of Silk Road entrepreneur Mr. Peter Wong, the delegation was awed by the fascinating landscape of Turpan and surprised at the uncanny resemblances in culture between China's western province and Central Asia.
The wide participation at the Forum demonstrates the broad interest in exploring and developing the Silk Road region. Mayors from different Silk Road cities met during the event and prepared for further discussions at the SRI's Mayors' Forum scheduled to be held in Tashkent, Uzbekistan in October. They also suggested launching a Silk Road Cultural Month in spring of next year, and preparations for this is already underway.
The next Silk Road Investment Forum is scheduled for June 2007 in Bishkek, Kyrgyz Republic. We look forward to an even greater success and hope you will join us!
Turpan Mosque
The Summer Edition of the SRI Newsletter was a special issue dedicated to the Investment Forum. You can download the Newsletter along with other documents from the Forum on the 'Documents' page.
Gate to the Convention Centre Compound, Renmin Square in Xi'an
