LONDON, Nov 9: Central Asian states, cast into the spotlight by the war on Afghanistan, have an opportunity to lure foreign investment but only if they press on with democratic and economic reform, the EBRD said on Friday.

European Bank for Reconstruction and Development President Jean Lemierre, who begins a week-long visit to Uzbekistan, Kyrgyzstan and Tajikistan on Monday, said the current crisis was giving the world a better understanding of the region.

“This is an opportunity for these countries to make a breakthrough and there is a way to make progress,” he told reporters.

The EBRD, set up to help countries of Eastern Europe and the former Soviet Union in the transition to market economies also has a political mandate to promote the transition to democracy.

“First of all, I shall remind everywhere that there is no economic progress if there is no democratic progress.”

Three central Asian states - Uzbekistan, Tajikistan and Turkmenistan, have taken on increased geopolitical significance since they offered the United States use of their air bases for the campaign in Afghanistan.

Analysts say leaders of these countries are making it clear they expect rewards for backing the US-led coalition.

However, concern has been raised over the pace of political reforms in several countries in the region, including Uzbekistan.

The EBRD issued a warning at its annual meeting this year to Turkmenistan and said in July that if there were no democratic or economic reforms there in the coming 12 months, it would ask its board to review all operations in the country.

Lemierre said in answer to questions there had been no political pressure on the bank to aid the region and that the bank’s criteria were unchanged.

“The EBRD is consistent. We have always said the same thing and there is no reason to say a different thing today,” he said.

Lemierre said he had decided earlier this year to make the trip. “It is not related with the recent events.”

During his visit, Lemierre will meet the heads of state of the three countries, representatives of international organisations and business leaders. The bank said he would pledge the EBRD’s support for strengthening ties between Central Asia and the world economy.

Excluding the oil and gas sector, the EBRD is the biggest private sector investor in the region and will have invested 1.6 billion euros ($1.4 billion) by the end of the year.

The bank said it was looking to expand its activities in Central Asia, whose five republics, which also include Kazakhstan, were part of the Soviet Union until 1991.—Reuters