Akylbek Zhaparov: Role of Central Asia in global market will only increase in future

Bishkek, Dec. 1, 2022 / Kabar/. In the future, the role of Central Asia in the global market will only increase, Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek Zhaparov told speaking at the Central Asian Investment Forum held in Tokyo (Japan). “Today we are witnessing a period of crisis after crisis, when the development of the Sustainable Development Goals, the green economy and integration processes are under threat. Our world, our country is on the threshold of global transformations. Changes in the equilibrium of the world economy lead to a shift in its "center of gravity" from the West to Southeast Asia,” he said. Zhaparov noted that Asia has become the world's economic leader in terms of nominal GDP at purchasing power parity.“The geography of Asia's trade turnover began to far exceed the foreign trade presence of the United States. The region is dynamically developing and has significant human and natural resources. More than 60% of the world's population lives in Asia. 21 of the 30 largest cities in the world are located on this continent. Exactly two weeks ago, the world's population reached 8 billion people. According to the UN, this figure was achieved thanks to the growth dynamics of the Asian region. Against this general background, the strategic role and importance of Central Asia is growing. Today Central Asia ceases to be a periphery in the global market. The combined gross domestic product of the Central Asian countries is USD 347 billion. Its role in the regional and world economy has increased significantly. Over the past 20 years, the GDP of the Central Asian countries has increased by 7.5 times, and the average growth rate was 6.2%. This is higher than the indicators of developing countries, and in comparison with the world economy as a whole, growth is more than 2 times higher. I believe that the role of Central Asia in the global market will only increase: trade routes and supply chains of goods are moving to our region. Already today, land and rail routes through Central Asia are becoming more attractive, and the delivery of goods to the West is becoming cheaper and faster. Under these conditions, new opportunities open up for the countries of Central Asia, in particular for the Kyrgyz Republic. In order to gain a new round of development, it is necessary to carry out infrastructural integration. For countries like ours, which do not have access to the sea, it is necessary to develop road and rail infrastructure. We need new rail routes that will connect us with other countries and allow us to integrate our economy into the global supply chain. So, in the near future, the construction of the China-Kyrgyzstan-Uzbekistan railway will begin, the cost of which is currently estimated at USD 6 billion. Climate change, a growing population and the planet's economy are redefining the issue of clean and sustainable energy. In this regard, the Central Asian region has enormous potential as a source of renewable energy. We are currently using about 10% of the available hydropower potential. Given this, the prospects for the development of hydropower in the Kyrgyz Republic and in the region as a whole are very significant. The Central Asian region, including the Kyrgyz Republic, offers a wide range of areas and opportunities that may be of interest to Japanese investment. I invite Japanese partners to actively invest in the Kyrgyz economy, especially since a commercial bank is already operating in the Kyrgyz Republic, 52.9% of whose shares are owned by the Japanese public company Sawada Holdings Co. Ltd,” he said.