Regions and Countries

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p. 16 of 22 BACK | NEXT I. Summary II. Background and Rationale III. The ADB Initiative Towards Economic Cooperation in Central Asia IV. Sector Priorities and the Proposed Program 2001-2003 V. Addressing Poverty and Governance and other Cross-Cutting Concerns A. Encouraging Poverty-Reducing Growth B. Addressing Governance Issues and Other Cross-Cutting Issues C. Supporting for and Involvement of the Private Sector VI. Issues and Challenges

Central Asian Regional Economic Cooperation : V. Addressing Poverty and Governance and other Cross-Cutting Concerns

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B. Addressing Governance Issues and Other Cross-Cutting Issues

43. As discussed, the trade aspects of the ADB’s Central Asian regional cooperation activities directly address key governance issues. Especially reducing the potential for and the incidence of corruption related to cross-border trade and traffic are formidable tasks. The series of workshops in the region and publications sponsored by the ADB have raised the issues and sought understanding by Government officials of the costs of hindering trade and transit. The recent suggestion by the PRC Government for the ADB to sponsor a high-level regional Trade Conference in early 2001 in Urumqi, Xinjiang, PRC (Appendix 4) offers an important venue to further this work. With ADB assistance, this Conference would be a forum for the concerned Governments to consider and adopt an action plan to begin to address some of these issues.⁹ In addition, it could be a venue for establishing an institutional arrangement that would facilitate high-level policy dialogue and consensus building among the participating countries.

44. Transition economies face particularly deep needs for institution building, institutions that reflect the increasing role of the private sector in the economies. The ADB’s work in regional transport and energy offer avenues for assisting in this process. The prospective regional road project offers a model in transportation whereby investment in infrastructure rehabilitation is supported by policy reform directly related to the utility of the investments. In this case, a cross-border agreement that addresses physical and non-physical cross-border barriers, aims at improved coordination and management of road safety initiatives and continued maintenance of the road. After a recent workshop which focused on the investment needs of the CARs electricity grid, a review will be undertaken on policy, particularly with respect to establishing transparent mechanisms for price determination and depoliticizing energy trade.

45. Not all activities supported by the ADB will address all facets of development needs. The ADB’s initiative in support of economic cooperation in Central Asia addresses squarely the overarching goal of poverty reduction by targeting critical aspects hindering poverty-reducing growth. Supporting the enabling environment for the private sector is also central to ongoing and proposed work in energy, trade, and transportation. Regional cooperation is, of course, a goal in itself, as well as the tool for addressing poverty reduction and other issues. While it can be argued that the needs of women in Central Asia are not as pressing as in other developing member countries, some significant gender issues will be addressed by easing the barriers and burdens facing small traders who are often women. Moreover, the historic family responsibilities borne by women could be eased by improved service environments in transportation and energy. Some environmental issues will also be addressed by rationalizing energy. Particularly the increased regional use of hydroelectricity and natural gas would potentially reduce urban pollution due to the use of coal.

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