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Central Asian Economies Seek To Re-Establish Regional Links

MANILA, PHILIPPINES (17 August 2001) - Ten years after independence, the Central Asian Republics are seeking to restore some of the regional ties that bound them during the era of the Soviet Union.

Moves to facilitate trade and investment between the countries - Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan and Xinjiang Uygur Autonomous Region (of People's Republic of China) - were spurred by an inaugural meeting on the Central Asia Regional Economic Cooperation Program at the Asian Development Bank last week.

Senior officials from the concerned countries discussed simplifying customs procedures and other ways of facilitating trade as well as joint infrastructure, transport and energy projects that would support economic cooperation, stimulate growth and improve living standards in the region.

The meeting was a preparatory step for the first Ministerial-level Conference on Central Asia Regional Economic Cooperation to be held in Urumqi, People's Republic of China, from 5 to 9 November 2001. The conference, to be hosted by ADB, will decide on sector priorities and institutional arrangements to guide the regional economic cooperation program.

ADB Vice President Joseph Eichenberger highlighted the need for the Central Asian Republics to look broadly for opportunities to deepen their engagement with the global community, especially the full range of countries with which they have historical and cultural ties, and the imperative of building a conducive environment for private sector development. The delegations expressed their commitment to regional economic cooperation. They noted that, while progress has been made over the past ten years in restructuring trade relationships and overcoming problems resulting from the collapse of the Soviet Union, there is much potential for regional cooperation. In addition to closer ties among the Central Asian Republics, links with the PRC - and Xinjiang Uygur Autonomous Region in particular - open opportunities for investment and job creation.

ADB has since 1997 conducted a series of studies, workshops and conferences on economic cooperation and is preparing the groundwork for several regional infrastructure projects. For example, ADB recently approved loans totaling US$70 million to rehabilitate the Almaty-Bishkek road. This project includes an agreement between Kazakhstan and Kyrgyz Republic to facilitate cross-border movements of people and goods. ADB has also provided loans worth US$450 million for transport projects vital to strengthening national integration and intra-regional and transit trade in Central Asia. ADB has also lent $85 million for country-based energy projects in the region. Regional power and gas transmission projects are planned.

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