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Today's Zaman, Turkey
Aug 25 2013
Regional economic integration and emerging global economy: Central
Asia and Caucasus
by Arthur Bayhan
25 August 2013 /
In the last 10 years, the countries in the Central Asia and Caucasus
region have made tremendous progress forward in terms of economic
growth and institutional development.
The countries in the rich region in natural resources and human
capital have achieved different levels of economic development. Energy
reach countries such as Azerbaijan, Kazakhstan, and Turkmenistan and
to some extent also Uzbekistan have achieved double-digit growth rates
and invested in physical infrastructure. The Kyrgyz Republic and
Tajikistan are mountainous countries with rich water reserves;
Mongolia and Afghanistan with vast untapped mineral deposits as well
as Georgia and Armenia have also made progress in developing state
institutions for economic governance and market economy.
The strategic location and energy, water, minerals and agriculture
endowed region has potential to play an important role in the
globalized economy. To do so, the region has to develop efforts to
realize economic, social and political gains by uniting complementary
strengths among the countries to establish more policy dialogues,
networking and long term regional cooperation.
Competitive advantage of the region's strategic location and
connectivity: Most countries of Central Asia are land-locked but
surrounded by some of the world's fastest-growing economies such
Russia, China, India and Turkey. There are a number of initiatives and
efforts to open up the region for investment and trade. The region's
policy makers have developed a number of the multilateral projects to
connect the region to their fast-growing neighbors. The Central
Asia-China gas pipeline which was launched in 2003 to bring Central
Asian natural gas to China connects Turkmenistan, Uzbekistan,
Kazakhstan and China. This follows with other connections which are:
the oil pipeline across Kazakhstan to China, the Baku /
Azerbaijan-Tbilisi/Georgia-Ceyhan/Turkey pipeline, the second longest
oil pipeline in the world, opened in July 2006, connects the region
via Turkey to Europe. One of the further connections in line with
these efforts is the Trans-Anatolian Gas Pipeline (TANAP). The
Azerbaijani and Turkish governments designed a project to construct
the $6 billion pipeline to carry natural gas from Azerbaijan's Shah
Deniz-II field via Georgia to Turkey and on to Europe, the
Turkmenistan-Afghanistan-Pakistan-India Pipeline is another example
which is proposed and being supported by the Asian Development Bank
to transport Caspian Sea natural gas from Turkmenistan through
Afghanistan into Pakistan and then to India.
The strategic location of the region requires more connectivity
within- and outside of the region. The connectivity is indeed one the
cornerstones for regional economic integration and growth. The
connectivity is viewed as a network of connections which could either
be physical or social in nature. Connectivity facilitates movement of
people, flow of information, goods and services and facilitates social
and human resource.
Further connectivity is undertaken through the so-called `corridor
approach which is the development of transport corridors in order to
boost trade and economic cooperation in the region. Through the
financial support of the Asian Development Bank a section of the
Bishkek-Torugart Road, one of the main transport arteries of the
region, linking the Kyrgyz Republic with China and other Central Asian
countries has been recently upgraded. The European Union's Transport
Corridor linking Europe-Caucasus-Central Asia (TRACECA), launched in
1993. The Gwadar Port which is close to Karachi in Pakistan has access
to Arabian Sea and the Persian Gulf intends to connect Central Asian
republics and Afghanistan to warm-water. There are two corridors to
Central Asia to -and from Gwadar. One is the Karakoram Highway which
connects Central Asia via China to Gwadar. In the last 7 to 8 years
China has invested heavily in Karakoram Highway to stabiles the trade
corridor to open for 12 months a year which working currently up to 5
months a year due to heavy winter conditions. The second is to the
trade corridor between Pakistan via Afghanistan to Central Asia.
China, Kazakhstan, Kyrgyzstan and Pakistan signed a, so called, Quad
Agreement in 1995 to promote traffic in transit amongst the states.
The agreement offers to free transit across their territories for
goods belonging to the Contracting parties.
In view of these developments, China has become one of the economic
forces in Central Asia, with trade between China and the five Central
Asian states rising from $527 million per year in 1992 to $30 billion
annually by 2010. China considers the region as a source of raw
materials and energy, as well as a market for its consumer goods. In
the recent years, China has also provided hundreds of millions of
dollars in aid and invested heavily in Central Asia.
Within the region there is one of the important initiatives supported
by the multilateral institutions and led by the Asian Development
Bank, so called, the Central Asia Regional Economic Cooperation,
(CAREC), program which includes 9 countries in the region and China.
CAREC focused on transport, trade facilitation, trade policy, and
energy sectors. This important regional initiative aims at creating
dialogue, strengthening the partnership among all participating
countries and stakeholders and mobilization of financial resources.
Arthur Bayhan is senior advisor for economic growth and
competitiveness with more than 20 years of project implementation
experience in the areas of investment and trade facilitation, sector
competitiveness, and public-private partnership development. Mr.
Bayhan has worked at the highest levels of governments and the private
sector to improve framework conditions for business enabling
environments and developed of sustainable economic institutions in
Central Asia, Caucasia, Russia and in other transition economies as
well as in South- and Southeast Asia.
http://www.todayszaman.com/news-324511-regional-economic-integration-and-emerging-global-economy-central-asia-and-caucasus-by-arthur-bayhan.html
Aug 25 2013
Regional economic integration and emerging global economy: Central
Asia and Caucasus
by Arthur Bayhan
25 August 2013 /
In the last 10 years, the countries in the Central Asia and Caucasus
region have made tremendous progress forward in terms of economic
growth and institutional development.
The countries in the rich region in natural resources and human
capital have achieved different levels of economic development. Energy
reach countries such as Azerbaijan, Kazakhstan, and Turkmenistan and
to some extent also Uzbekistan have achieved double-digit growth rates
and invested in physical infrastructure. The Kyrgyz Republic and
Tajikistan are mountainous countries with rich water reserves;
Mongolia and Afghanistan with vast untapped mineral deposits as well
as Georgia and Armenia have also made progress in developing state
institutions for economic governance and market economy.
The strategic location and energy, water, minerals and agriculture
endowed region has potential to play an important role in the
globalized economy. To do so, the region has to develop efforts to
realize economic, social and political gains by uniting complementary
strengths among the countries to establish more policy dialogues,
networking and long term regional cooperation.
Competitive advantage of the region's strategic location and
connectivity: Most countries of Central Asia are land-locked but
surrounded by some of the world's fastest-growing economies such
Russia, China, India and Turkey. There are a number of initiatives and
efforts to open up the region for investment and trade. The region's
policy makers have developed a number of the multilateral projects to
connect the region to their fast-growing neighbors. The Central
Asia-China gas pipeline which was launched in 2003 to bring Central
Asian natural gas to China connects Turkmenistan, Uzbekistan,
Kazakhstan and China. This follows with other connections which are:
the oil pipeline across Kazakhstan to China, the Baku /
Azerbaijan-Tbilisi/Georgia-Ceyhan/Turkey pipeline, the second longest
oil pipeline in the world, opened in July 2006, connects the region
via Turkey to Europe. One of the further connections in line with
these efforts is the Trans-Anatolian Gas Pipeline (TANAP). The
Azerbaijani and Turkish governments designed a project to construct
the $6 billion pipeline to carry natural gas from Azerbaijan's Shah
Deniz-II field via Georgia to Turkey and on to Europe, the
Turkmenistan-Afghanistan-Pakistan-India Pipeline is another example
which is proposed and being supported by the Asian Development Bank
to transport Caspian Sea natural gas from Turkmenistan through
Afghanistan into Pakistan and then to India.
The strategic location of the region requires more connectivity
within- and outside of the region. The connectivity is indeed one the
cornerstones for regional economic integration and growth. The
connectivity is viewed as a network of connections which could either
be physical or social in nature. Connectivity facilitates movement of
people, flow of information, goods and services and facilitates social
and human resource.
Further connectivity is undertaken through the so-called `corridor
approach which is the development of transport corridors in order to
boost trade and economic cooperation in the region. Through the
financial support of the Asian Development Bank a section of the
Bishkek-Torugart Road, one of the main transport arteries of the
region, linking the Kyrgyz Republic with China and other Central Asian
countries has been recently upgraded. The European Union's Transport
Corridor linking Europe-Caucasus-Central Asia (TRACECA), launched in
1993. The Gwadar Port which is close to Karachi in Pakistan has access
to Arabian Sea and the Persian Gulf intends to connect Central Asian
republics and Afghanistan to warm-water. There are two corridors to
Central Asia to -and from Gwadar. One is the Karakoram Highway which
connects Central Asia via China to Gwadar. In the last 7 to 8 years
China has invested heavily in Karakoram Highway to stabiles the trade
corridor to open for 12 months a year which working currently up to 5
months a year due to heavy winter conditions. The second is to the
trade corridor between Pakistan via Afghanistan to Central Asia.
China, Kazakhstan, Kyrgyzstan and Pakistan signed a, so called, Quad
Agreement in 1995 to promote traffic in transit amongst the states.
The agreement offers to free transit across their territories for
goods belonging to the Contracting parties.
In view of these developments, China has become one of the economic
forces in Central Asia, with trade between China and the five Central
Asian states rising from $527 million per year in 1992 to $30 billion
annually by 2010. China considers the region as a source of raw
materials and energy, as well as a market for its consumer goods. In
the recent years, China has also provided hundreds of millions of
dollars in aid and invested heavily in Central Asia.
Within the region there is one of the important initiatives supported
by the multilateral institutions and led by the Asian Development
Bank, so called, the Central Asia Regional Economic Cooperation,
(CAREC), program which includes 9 countries in the region and China.
CAREC focused on transport, trade facilitation, trade policy, and
energy sectors. This important regional initiative aims at creating
dialogue, strengthening the partnership among all participating
countries and stakeholders and mobilization of financial resources.
Arthur Bayhan is senior advisor for economic growth and
competitiveness with more than 20 years of project implementation
experience in the areas of investment and trade facilitation, sector
competitiveness, and public-private partnership development. Mr.
Bayhan has worked at the highest levels of governments and the private
sector to improve framework conditions for business enabling
environments and developed of sustainable economic institutions in
Central Asia, Caucasia, Russia and in other transition economies as
well as in South- and Southeast Asia.
http://www.todayszaman.com/news-324511-regional-economic-integration-and-emerging-global-economy-central-asia-and-caucasus-by-arthur-bayhan.html