By Emil Souleimanov (5/11/2011 issue of the CACI Analyst)

A territorial dispute has recently worsened the relationship between Moscow and its committed ally in the South Caucasus, Georgia’s separatist republic of Abkhazia, whose independence was recognized by the Russian authorities less than three years ago. In an attempt to delimitate its state borders with Abkhazia, Moscow recently came up with a plan envisaging the de facto annexation of ca 160 square kilometers of Abkhaz soil, an initiative fiercely opposed by official Sukhumi. While Moscow would benefit from such territorial expansion ahead of the Sochi Olympics, forcing Abkhazia to cede territory could damage Moscow’s relations to Abkhazia as well as its other allies in the South Caucasus.

By Stephen Blank (5/11/2011 issue of the CACI Analyst)

With the Russian Federation nearing the finish line in its marathon race to join the World Trade Organization, Moscow has restarted negotiations with Georgia. They will have a full agenda stemming from Russian actions before and during the war with Georgia in 2008. These talks are taking place because the Georgia is in a position to use its veto as a member of the WTO to blackball Russia’s membership.

By Rafis Abazov and Dilara Istybayeva (5/11/2011 issue of the CACI Analyst)

The recently announced “People's IPO”, a new round of public offerings by Kazakhstan's largest and most profitable corporations and companies was designed to address one of the country’s most divisive and contentious issues – the rise of extreme inequality between the very small class of nouveau riches who acquired former state companies for a song, and the large class (up to 70–80 percent) of impoverished citizens. The new ‘People's IPO’ immediately became the center of heated public debate in Kazakhstan. The main question is whether this bold and innovative act by Kazakhstan's government can address the fundamental problem of social inequality.