Regional cooperation essential to economic growth in Central Asia: ADB
By Asad Cheema

ISLAMABAD—Central Asian countries must work together to remove barriers hampering trade and improve roads and other infrastructure if the region is to maintain its rapid economic growth, a senior Asian Development Bank (ADB) official said.
The comment by Juan Miranda, Director General of ADB’s Central and West Asia Department, came ahead of the 6th Ministerial Conference of the Central Asia Regional Economic Cooperation (CAREC) Program in Dushanbe, Tajikistan, on November 2 and 3, said an ADB press release received here on Monday.
“Improved cooperation on trade and transport challenges currently facing Central Asia will ensure its people and goods can move freely and efficiently across borders, providing a firm foundation for sustained growth,” Miranda said. Economies in the region are growing rapidly. However, the boom is taking a heavy toll on infrastructure. In parts of the region, aging roads are deteriorating faster than rehabilitation works can compensate. The rail networks are also being strained. The issue is due to be addressed at the Dushanbe meeting, where Ministers from CAREC’s eight participating countries are expected to discuss a proposed strategy calling for about $19 billion in investment in new transport corridors.
They would link Europe with southern and eastern Asia, as well as Russia with the Arabian Sea and Persian Gulf, the press release added. “This could lead to the construction of the modern-day equivalent to the ancient Silk Road,” said Miranda. “Historically the region was braided by multiple routes linking east and west. It can do this again.” Trade flows through Central Asia are growing, but the region so far only captures a small portion of the potential. Less than 1 per cent of trade between Europe and China, for example, travels through Central Asia. The preferred route is by sea.
“Central Asia lies at the geographic center of the Eurasian continent, but it has been unable to capitalize on this advantage because of the lack of transport links,” said Miranda. The strategy to be discussed at the meeting in Dushanbe also calls for the reform and modernization of procedures at border crossings, which are often bottlenecks for trade flows, the press release added.