Silk Road Regional Project Wojciech Hübner Regional Economic Advisor in Central Asia Outline and main ideas Type: Capacity Building for Regional Cooperation and Development

Silk Road Regional Project Cooperation of UNDP Regional Bureaus: Cooperation of UNDP Regional Bureaus: RBEC - RBAP – initial financing 50/50 Beneficiary countries: China, Beneficiary countries: China, Kazakhstan, Kyrgyzstan, Tajikistan & Uzbekistan National support projects National support projects Candidates to join: Afghanistan, Turkmenistan, Candidates to join: Afghanistan, Turkmenistan, Expression of interest: Pakistan, Korea, Japan Expression of interest: Pakistan, Korea, Japan

Silk Road Regional Project Phase I: Phase I: Silk Road Area Development Programme Phase I established a framework for regional cooperation between the Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and China, through the setting up of National Coordination Mechanisms (NCMs) and through practical working-level activities.

Silk Road Regional Project Phase II Phase II represents the strategic phase which will further consolidate the framework for long-term economic cooperation through the realisation of concrete results in three inter-related target areas: Trade and Transit Trade and Transit project will work towards increased levels of trade and transit in the region, promoting accelerated growth and human development through enhancing capacities and institutions underpinning economic cooperation among member countries within the framework of SCO;

Silk Road Regional Project Investment: Investment: project will work towards promotion of investment in the region and will aim at establishment of a mechanism for facilitating investment in the Silk Road area; Tourism Tourism project will assist countries in developing a regional plan for the sustainable development of tourism including the promotion of Silk Road arts and crafts, and commitments to sustainable levels of tourism development through the establishment of an award for “UN Silk Road Cities”.

Silk Road Regional Project Trade in the region – status : Trade in the region – status : Best known mechanism of integration, only recently being discovered Best known mechanism of integration, only recently being discovered Traditional structure of flows – changes still ahead. Efforts to diversify or promote trade have brought mixed results. Traditional structure of flows – changes still ahead. Efforts to diversify or promote trade have brought mixed results. Since Soviet times - weak inside the region. Unrecorded and illegal Since Soviet times - weak inside the region. Unrecorded and illegal Numerous barriers - mainly non-tariff, also of psychological nature Numerous barriers - mainly non-tariff, also of psychological nature China – new dynamic factor China – new dynamic factor How much of transmission to CA is in place? How much of transmission to CA is in place? WTO membership. WTO membership. Trade pioneering investment flows Trade pioneering investment flows China – global giant interested also in CA China – global giant interested also in CA

Silk Road Regional Project Investment complex – status Progress in recent years after low levels in KYR, UZB, TAJ Progress in recent years after low levels in KYR, UZB, TAJ KAZ – most successful, but traditional pattern KAZ – most successful, but traditional pattern New public – private partnerships New public – private partnerships Marketing effort, Agencies Marketing effort, Agencies China – giant possibilities and untapped potential China – giant possibilities and untapped potential Russian investment in CA Russian investment in CA External perception, governance issues, regional not only national perspective External perception, governance issues, regional not only national perspective

Silk Road Regional Project Tourism sector – status In CA: Limited progress, better regulations – ecotourism, private sector encouraged, but still considerable untapped potential Limited progress, better regulations – ecotourism, private sector encouraged, but still considerable untapped potential New wave of interest by Governments – e.g. in Tajikistan New wave of interest by Governments – e.g. in Tajikistan China – global giant

Silk Road Regional Project Highlights of the whole concept: Facilitate direct contacts among business communities, not only governments like in Phase I Facilitate direct contacts among business communities, not only governments like in Phase I More balance between China and CA, also in the management More balance between China and CA, also in the management Axis Beijing – Tashkent Axis Beijing – Tashkent Cooperation with SCO Cooperation with SCO Important long-term expansion and spin-offs Important long-term expansion and spin-offs National support projects National support projects Ownership issues – shaping of constituency Ownership issues – shaping of constituency

Silk Road Regional Project Key new initiatives Investment and Business Forum – to become regional tradition to be continued Investment and Business Forum – to become regional tradition to be continued Silk Road Mayors’ Forum Silk Road Mayors’ Forum Special awards: UNDP Silk Road Cities – aiming at launching local initiatives, however not only accept what has been achieved, but stimulate further development. Combine old tradition and new urban concepts Special awards: UNDP Silk Road Cities – aiming at launching local initiatives, however not only accept what has been achieved, but stimulate further development. Combine old tradition and new urban concepts