1. Rebuilding the Silk Road: Encouraging Regional Economic Cooperation in Central Asia ADB Approach
February 2002

2. Regional Economic Cooperation
contributes to harmonious and sustainable growth.
enhances private sector development.
is complementary to national development strategies.
is an important means to achieving stability.
By focusing on key regional issues that require joint efforts of countries,
economic cooperation generates additional gains to participating
countries beyond national development efforts.
In particular, hard infrastructure (e.g. road link between two countries)
and policy improvements will directly facilitate development of the private
sector, which is the engine of growth in the long run.
As such, economic cooperation adds momentum to growth and
development, thus contributing to stability of the region.
e.g. while no direct link is made, poverty and mistrust provide
fermenting ground for extremism.

3. Development Constraints in Central Asia
land-locked and remote location
small domestic markets
need for rational use of resources especially energy and water

4. Challenges of Regional Cooperation in Central Asia
Nationhood building and transition
Need to enhance understanding of potentials of regional cooperation
Premise of consensus building among countries

5. The Phased and Pragmatic Approach
Phased: increasing awareness, fostering trust and building consensus
Results-oriented: concrete progress in investments and policy improvements as building blocks in the process

6. Sectoral Focus Transport
To lessen the economic isolation of the region
Energy
To support efficient and rational use of energy
Trade
To promote trade, traffic, and transit within, and to/from, the region

7. Transport Almaty Transport Conference (2000)
Almaty-Bishkek Regional Road Rehabilitation Project (2000)
Other priority transport projects (e.g. Kyrgyz Transport Corridor)

8. Energy Regional Power Transmission Modernization Project (2002)
Regional Gas Transmission System Improvement (TA feasibility study in 2002)
Energy and Water Nexus Study (formulation of action plan)

9. Trade Facilitation Customs Sector Study (2001)
Central Asia Customs Cooperation Meeting (January 2002)
Customs modernization in TAJ and KGZ (2002)

10. Economic Cooperation Central Asia and Afghanistan
Reconstruction of Afghanistan in the sub-regional context
Cooperation between Central Asia and Afghanistan, and South Asia through Afghanistan

11. ADB Approach To develop concrete subregional projects that will
improve the life of Afghan refugees.
make supplies and services available to Afghan people.
restore trade links between subregions.
provide transit outlets for Central Asia’s natural resources.

12. Forthcoming Ministerial Conference
25-26 March 2002 at ADB headquarters in Manila, Philippines
Objectives
prioritize and mobilize financing for investment projects
explore cooperation prospects in the context of Afghan reconstruction
strengthen coordination among the international community