By 2040, the population of Central Asia could rise to 96 million, which will put significant pressure on the existing infrastructure. In this regard, the region urgently needs large-scale progress in energy efficiency, water resource management, and modern transportation systems. This opinion was expressed in an interview with TASS by Nikolai Podguzov, head of the Eurasian Development Bank (EDB).
According to him, Central Asia is one of the most vulnerable regions in the world to climate change.
It is expected that by 2028, the water shortage in the region could amount to between 5 and 12 cubic kilometers per year, with a significant portion of resources lost due to outdated infrastructure. To address this issue, the bank is financing projects aimed at modernizing irrigation systems, implementing water-saving technologies, and digital accounting of water resources.
The geographical features of the region also pose a challenge. Central Asia is located more than 3,000 kilometers from ocean ports, leading to an increase in trade costs by 20-40 percent, which results in losses of up to 1.5 percent of annual economic growth. Podguzov described this as a "distance tax."
To enhance transportation connectivity, the concept of the Eurasian Transport Framework has been proposed, developed by the EDB.
This network of corridors will help reduce logistics costs and accelerate trade. While the main routes are currently oriented from east to west, the bank emphasizes the importance of north-south routes and the Trans-Afghan corridor, which will provide Central Asia access to the markets of South Asia and the Persian Gulf.
Nikolai Podguzov noted that the economy of the five Central Asian countries could reach $600 billion by 2026. Meanwhile, according to UNICEF data, by 2025, the population of the region will already exceed 84 million. Addressing issues related to demographics, transportation, and water resources remains a crucial condition for further economic growth.
