Search results

This research article examines the state and prospects of economic cooperation among the countries of Central Asia (CA). As history would have it, economic cooperation within the CA region was previously limited, and investments in Central Asia were mainly concentrated in the mining sector of the economy. Demographic and economic trends in the region have led to an expansion of the internal market; most Central Asian states have implemented wide-ranging reforms, which have improved the overall investment climate; and the CA states have stepped up the development of multilateral trade and economic relations, laying the groundwork for broader cooperation. The article also covers recent problems related to the economic situation in the region. For example, the current situation associated with COVID-19 has had an impact on economic relations between the CA countries. In the view of international experts, this crisis has not provided any new reasons for integration in the region. The quarantine measures taken in various Central Asian countries have had a negative effect on their foreign trade and thus on intra-regional trade and economic cooperation in general. The authors also examine other problems, such as those caused by the CA countries' economic dependence on other countries, namely their dependence on imports from outside the region. These problems also affect the prospects of economic cooperation in Central Asia. All countries, including those rich in natural resources, want to produce and export finished goods with high value added. The production of high value added products and services enables a country to earn more revenue and reduce its dependence on primary commodity exports. The Central Asian countries are no exception. But for many reasons their finished products are often insufficiently competitive in countries outside the region. Despite the existence of economic problems connected with the need to improve the economic aspects of cooperation, there is a clear trend towards diversification of the economy of the CA countries caused by a desire to develop various specializations. These include agricultural processing, production of consumer goods for the population, development of the service sector, and other areas. Thus, the choice of a new model for the development of multilateral relations and the emerging trend towards economic growth in the region have made it possible to lay the foundation for long-term cooperation among the Central Asian states. Keywords: regional cooperation, Central Asia region, diversification of the economy, trade regimes, external economic policy, region, Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan, Kyrgyzstan.

Improving the forms and mechanisms of regional economic integration, deepening the mutual understanding on the formation of an economically and politically secure integrated space, expanding trade and economic relations, elaborating joint actions to maintain regional peace and stability, creating a single information space are among the key areas that have become the basis of cooperation among the Central Asian region (CAR) states. The authors reveal the positive aspects of cooperation among the CAR countries—Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, and Tajikistan. First and foremost, these include common historical roots, linguistic and cultural similarity, convenient geographical location and established economic ties, which allow the states of Central Asia (CA) to establish a deeper and more active understanding of each other, to solve economic and political problems related to finding and realizing domestic investment potential and expanding regional trade and economic ties. The joint establishment of international transport corridors and infrastructure will help reduce the transport costs for Central Asian countries that supply export products to external markets, which is an important area of ​​cooperation in Central Asia. In addition, the economic problems that exist among the regional countries largely determine the nature of relations between them. Future solution of problems determines the subsequent viability of the Central Asian Regional Economic Cooperation (CAREC) and the regional development prospects. Based on the use of economic research tools, the authors examine the problems caused by the COVID-19 pandemic and their impact on the state of trade and economic relations between the regional states. Post-crisis plans for economic recovery in the Central Asian countries will be developed and implemented in the context of the need to solve the present-day problems associated with the gradual lifting of quarantine measures. In this regard, the quickest possible transition of economies to an upward growth trajectory should launch the expansion of trade and economic cooperation and ties among the Central Asian countries. The authors emphasize the fact that another important problem within CAREC is the fact that CAR economies are dominated by raw materials, which does not solve the problems of reducing social inequality and improving the welfare of the regional population. For this reason, Kazakhstan, like other Central Asian countries, is currently in search of a new economic model. The transformation is crucial because the country needs to overcome its excessive long-term dependence on the export of oil and raw materials. The new economic model should be focused on further industrialization and diversification of the economy, on the search for new innovative approaches and development strategies.