Source: Asia Development Bank
The geopolitical tensions and economic disruptions unleashed by the Russian invasion of Ukraine in February 2022 created new opportunities and challenges for transport corridors through the Caucasus and Central Asia. The transit complications through routes via the Russian Federation fostered renewed attention to the Middle Corridor and redirected trade flows through many countries of the Central Asia Regional Economic Cooperation (CAREC) region. However, infrastructural hurdles, supply chain difficulties, gaps in regional integration and connectivity, complex geographies, and high transport costs continue to limit CAREC countries’ ability to fully unlock the potential of a sustained increase in trade and development.
Unlocking Transport Connectivity in the Caucasus and Central Asia addresses these constraints and explores ways to enhance the efficiency of transport through the Middle Corridor, offering significant economic benefits for the CAREC region. These benefits include boosting cross-border trade, gross domestic product, investment, and employment while reducing transportation costs. However, there are major barriers to infrastructural investment, including the availability and costs of long-term financing, high initial costs, investment shortfalls, high risks, and uncertain benefits.
The book discusses key developments in transport and trade through the Middle Corridor, focusing on CAREC transport corridor growth, its trade and economic impacts, and the digital, regulatory, infrastructural, and logistical dynamics.