Economy

What Happened: In 2013, businesswoman Bakhyt Nurmuhambetova bought a slice of land facing the planned site for the main pavilion of the 2017 Astana Expo. She paid over $600,000 for a 350 square meter plot, where she planned to build a shop to capitalize on the wave of tourists expected for the Expo. But the Expo came and went, and by 2020 construction still hadn’t started. The original developer went bankrupt and fled the country, leaving investors in his various real estate projects out of $100 million. A new developer has bought the rights to the Expo City project, but is demanding that Nurmuhambetova pay an additional $90,000 for a less desirable plot, no longer facing the street. Her front-facing site has been sold to other investors, with the new developer netting another $750,000 in the process.

Our Focus: Nurmuhambetova’s story is indicative of deep problems in Kazakhstan’s property market. As real estate prices soared, particularly in the large cities of Almaty and Astana, unscrupulous developers found that they could make huge profits by selling shares in big-ticket real estate projects – sometimes without ever actually beginning construction. One developer sold out six housing developments, but never built any of them – the money was instead put into restaurants and a factory. Even on projects that are built, corruption is rife, with contractors and subcontractors often double-billing for the same work. In one contract examined by journalist Rustem Amangeldi, developers said they needed $6 million for underground parking – after the lot had already been built.

What Comes Next: After tens of thousands of cases of fraud, Kazakhstan implemented a new law that requires developers to “demonstrate ownership of the land for their proposed project, have the relevant permits from government agencies, and secure bank guarantees before attracting buyers.” But enforcement is nearly non-existent. Meanwhile, both investors like Nurmuhambetova and those simply hoping to buy a home to live in are left facing escalating costs and drawn-out legal battles just to get the real estate they have already paid for.

INTERVIEW

Dr. Shafiqur Rahman, emir of the Bangladesh Jamaat-e-Islami (JI), on Bangladesh-India relations: “The sentiments of the people of our country regarding India reflect our own… Overall, we aim to maintain good relations with everyone while prioritizing our country’s interests. However, we will not bow down to anyone or become subservient.”

Northeast Asia

Last week, China’s central bank and the Politburo, in two separate meetings, unveiled a massive round of fiscal stimulus. Many analysts took it as a sign that China’s government has finally realized the severity of the country’s economic problems, and is taking steps to address issues like the flagging real estate market and high household debt. But the timing was not a coincidence: The new policy roll-outs resulted in a major stock bump just in time for China’s National Day on October 1. The real question, then, is whether the policies actually signal a long-term shift in Beijing’s economic management, or are just another attempt to manage perceptions without addressing the basic issues.

South Asia

On October 1, Jammu and Kashmir held the final round of voting in its three-phase assembly elections – the first in a decade, and the first since J&K lost its autonomy and was downgraded from a state to a union territory. The voting on Tuesday set a record for turnout, with over 65 percent of voters casting a ballot. That’s yet another indication of the high interest in the polls, which are seen as a rare chance for locals to weigh in on the Modi government’s complete reshaping of J&K. Results from all three phases of voting will be announced on October 8.

Southeast Asia

Cambodian police arrested an award-winning freelance journalist who has reported extensively on the country’s online scam industry and its links to prominent tycoons and political figures. Mech Dara was detained in Koh Kong province on Monday afternoon, according to reports from local rights groups. A former reporter for the Cambodia Daily, Phnom Penh Post, and VOD English – all three of which have been closed or silenced by the Cambodian government – Dara has been internationally recognized for his work on scam syndicates, including receiving the annual Trafficking In Persons Hero award by the U.S. State Department. Dara’s arrest came after the U.S. government’s recent sanctioning of the powerful tycoon Ly Yong Phat for his connections to scam operations, a link that Dara's reporting helped to expose.

Central Asia

Alisher Qodirov, head of one of Uzbekistan's political parties, has been vocal about Russia’s attempts to insert itself into domestic matters in Uzbekistan. “Lately we hear nothing but chauvinistic statements in Russian,” he said in response to recent comments from nationalist Russian historian Mikhail Smolin. That Qodirov is speaking so openly in Uzbekistan, where the political arena is tightly controlled, suggests Tashkent's tacit agreement with his frustrations.

Source: UNIFIL

As Israel steps up its attacks on Lebanon, thousands of troops from Indo-Pacific countries deployed to the United Nations’ peacekeeping mission in Lebanon risk being caught in the crossfire.

Economy

Amrit Kaal, the label in Hindi given to the period leading up to 2047 – supposedly an auspicious era marking India’s march to prosperity.