CONTENTSPREFACE ..................................................................................................iii
ABBREVIATIONS...................................................................................... viii
EXECUTIVE SUMMARY ............................................................................. ix
I.  INTRODUCING THE SILK ROAD ...............................................................1
A.  The history of the Silk Road .............................................................................. 1
B.  The present-day Silk Road................................................................................. 2
1. Political and economic developments since 1991 ....................................................................2
2. Increasing economic connection in the region..........................................................................3
C.  Geography and people of the region ................................................................... 4
II. THE SILK ROAD BUSINESS OPERATING ENVIRONMENT ...........................9
A.  Macroeconomic conditions ................................................................................ 9
1. Economic performance...............................................................................................................9
2. Structure of economies.............................................................................................................10
B.  Trade............................................................................................................ 10
1. Intraregional trade .....................................................................................................................10
2. Main trading partners................................................................................................................11
3. Trade arrangements ..................................................................................................................12
C.  Foreign direct investment ............................................................................... 13
1. Foreign direct investment inlows ............................................................................................13
2. The investment environment ....................................................................................................14
3. Bilateral investment treaties and double taxation treaties......................................................15
4. Special economic zones ...........................................................................................................15
5. Openness to FDI and investment promotion ...........................................................................18
D.  Financial sector and taxation .......................................................................... 19
1. Financial institutions and capital markets................................................................................19
2. Taxes ..........................................................................................................................................20
E.  Infrastructure ............................................................................................... 20
1. Roads and highways.................................................................................................................21
2. Railways.....................................................................................................................................21
3. Airports ......................................................................................................................................22
4. Energy ........................................................................................................................................23
5. Telecommunications .................................................................................................................23
F.  Human resources .......................................................................................... 26
1. Working age population ............................................................................................................26
2. Levels of education ...................................................................................................................263. Labour costs..............................................................................................................................26
III. SILK ROAD INVESTMENT PRIORITIES AND OPPORTUNITIES ..................29
A.  Tourism ........................................................................................................ 29
B.  Energy ......................................................................................................... 31
C.  Mining .......................................................................................................... 35
D.  Transportation and logistics............................................................................ 36
E.  Agro-business................................................................................................ 38
F.  Chemicals ..................................................................................................... 40
G.  Machinery..................................................................................................... 41
H.  Information and communication technology....................................................... 42
I.  Summary ...................................................................................................... 44
APPENDICES: THE REGULATORY FRAMEWORK FOR FOREIGN INVESTMENT IN THE SILK ROAD COUNTRIES ...........................................45
A. China............................................................................................................. 45
B. Kazakhstan .................................................................................................... 48
C. Kyrgyzstan..................................................................................................... 51
D. Tajikistan ....................................................................................................... 53
E. Turkmenistan ................................................................................................. 55
F. Uzbekistan......................................................................................................57
REFERENCES..........................................................................................61