According to forecasts, by 2040 the population of Central Asia may increase to 96 million people, which will create significant pressure on the existing infrastructure. To address this issue, the region needs large-scale changes in energy efficiency, water resource management, and modern mobility technologies. These ideas were expressed in an interview with TASS by the Chairman of the Eurasian Development Bank (EDB), Nikolai Podguzov.
He stated that Central Asia is one of the most vulnerable regions on the planet to climate change.
According to forecasts, by 2028, the water deficit could increase to 5-12 cubic kilometers per year, due to outdated water systems and resource losses. In response to this issue, the EDB is financing projects for the modernization of irrigation and the introduction of technologies that allow for water conservation, as well as digital accounting of water resources.
The geographical location of the region also creates certain challenges. Central Asia is located more than 3000 kilometers from ocean ports, which leads to an increase in trade costs by 20-40 percent and deprives the economy of up to 1.5 percent of annual growth. Nikolai Podguzov characterized this as a "tax on distance."
The concept of the Eurasian Transport Framework proposed by the EDB could improve the transport connectivity of the region.
The development of transport corridors will help reduce logistics costs and accelerate trade. Currently, the main routes run from east to west; however, the bank emphasizes the importance of southern and northern directions, as well as the Trans-Afghan corridor, which will provide access for Central Asian markets to South Asia and the Persian Gulf.
Nikolai Podguzov also noted that by 2026, the economy of the five countries in the region could reach $600 billion. Meanwhile, according to UNICEF, by 2025 the population of Central Asia will already exceed 84 million people. Addressing issues related to demographics, transport, and water resources remains critically important for further economic growth.
