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Today: May 15, 2008 Statistics

Central Asia Regional Economic Cooperation (CAREC)

The CAREC Program is an Asian Development Bank (ADB) supported initiative that seeks to encourage economic cooperation among countries in the Central Asia region. The CAREC Program initiated in early 1997 in issue to promote economic growth and raise living standards in the Central Asian region by encouraging economic cooperation.

The CAREC Program covers ADB's member countries in the Central Asia region, namely:

  • Azerbaijan,
  • People's Republic of China, focusing on Xinjiang Uigur Autonomous Region,
  • Kazakhstan,
  • Kyrgyz Republic,
  • Mongolia
  • Tajikistan,
  • Uzbekistan.
  • Afghanistan.

The operational strategy of the Program is to finance infrastructure projects and improve the policy environment for promoting cross-border activities in the areas of transport, trade, and energy. This reflects three underlying strategic concerns:

  • lessening the economic isolation of the region through improved transport systems within Central Asia, and from the region to other parts of the world, particularly East Asia;
  • maximizing benefits from resource complementarity by rationalizing and encouraging regional energy trade based on market principles, and rehabilitating existing infrastructure
  • ensuring a policy environment favorable to trade and traffic within, to, and from the region.

 

To serve as a focal point of coordination within ADB and with other stakeholders, the Central Asia Regional Economic Cooperation Unit - CARECU was established in March 2000.

In response to the global events since the September 11, 2001 terrorists’ attacks, ADB is stepping up its assistance in support of regional cooperation in Central Asia as it is key to the economic stability and prosperity of the region. Projects under this Program to be supported by the envisaged increase in loans and technical assistance include:

  • Transport: projects to continue support for rehabilitating key sections in the regional transport networks, and to explore future opportunities post-Afghan war.
  • Energy/Water: projects to continue support for rationalizing the use of regional energy networks, and to explore initiatives in energy/water nexus as well as potentials in hydropower post-Afghan war.
  • Trade facilitation: projects to continue support for freeing trade especially of non-tariff barriers through cooperation, which would complement ADB support in other areas such as transport.

 

Development of CAREC Program:

The CAREC Program follows a phased approach to ensure:

  • ownership by the participating countries and ADB's role as an honest broker;
  • effective coordination;
  • sustainable implementation.

Phase 1: 1997-1998

Phase 1 of the CAREC Program sought to increase understanding and raise awareness of the importance and potential benefits of regional cooperation.

Specifically, it focused on identifying infrastructure needs and policy issues impeding cross-border trade and traffic. In a series of five workshops in 1998, the findings of those studies were reviewed and policy issues were pursued with the governments.

Phase 2: 1999-present

Phase 2 began in early 1999. Its activities consisted of assessing projects singled out as priority in Phase 1, specifically in the areas of electric energy, trade, and road and rail transport, as well as pursuing the promotion of policy reforms that would remove cross-border barriers to movement of both goods and people.

View the 2002 Status Report on the CAREC Program, which presents the planned program of assistance by the ADB for the Central Asia region covering the period, 2003-2005.

The regional cooperation strategy and program update 2006-2008

(RCSPU) on the Central Asia Regional Economic Cooperation (CAREC) Program reviews its response to changing circumstances and emerging needs. Since 2000, there has been strong economic growth in the region, but more limited improvements in living standards and poverty reduction. Also, several countries have experienced heightened political and social uncertainty. The Program's relevance and effectiveness are being strengthened by a broadening geographic coverage and scope, an enhanced partnership with multilateral institutions, and by organizational changes and capacity building for regional cooperation.

For more information CAREC Program

 

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