Regions and Countries

	Table of Contents
p. 14 of 19 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Uzbekistan

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IV. Regional Cooperation

75. Regional stability is an important factor, affecting economic outcomes through trade linkages and investment flows in the region. ADB actively supports regional cooperation in Central Asia. The new COS highlights the paramount importance of regional cooperation as an essential condition for sustainable, poverty-reducing growth in Uzbekistan. ADB member countries in the region share a common institutional history and face similar policy and reform challenges. Moreover, the infrastructure inherited upon independence was designed to meet the needs of the former Soviet Union, not the requirements of the present independent countries.

76. Since early 1997, ADB has been providing support for enhanced economic cooperation among the CARs through regional technical assistance. The initiative covers the CARs and neighboring Xinjiang Uygur Autonomous Region of PRC. Activities under Phase I (1997 - 1998) of the initiative concentrated on identifying policy issues and infrastructure needs impeding cross-border cooperation in the areas of energy, trade, and transportation. Activities under Phase II, which began in 1999, have focused on further policy dialogue and developing high priority investment projects. In 1999, the scope of assistance was broadened from the initial three areas (energy, transport, and trade) to include regional workshops on rural finance. Work on regional aspects of education (a sector in which ADB is playing a lead role in the CARs) has been initiated. The latter two areas provide opportunities for the initiative to address more directly poverty reduction issues in a regional manner.

77. During a series of workshops and consultations with the governments, high priority policy reforms and investments were identified (e.g., rehabilitation and improvement of the interconnected electricity grid of Central Asia, and improvement and renovation of gas pipeline). The dialogue has been intensified to support policy reform and sector analysis and implement priority regional infrastructure investments. The first Central Asian Assistance Plan (CAAP) was endorsed by the Board in April 2000. The CAAP includes a tentative loan and technical assistance program for 2000 - 2003. The tentative loan and technical assistance program is generally consistent with the thrust of the new COS and the Uzbekistan government's priority projects; the CAAP initiatives will be integrated more clearly with the operational pipelines

78. These will be formally reviewed during the next country programming exercises to ensure continued relevance and adequate provision in the respective programs for expected TA, loan and economic and sector work activities and internal resources implications. Establishment of the Central Asia Regional Economic Cooperation Unit in April 2000 and strengthening of the functions of Uzbekistan Resident Mission will further contribute to ensuring adequate internal resources, improving coordination, and strengthening regional institutional support.

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