Translated with AI
The population of Central Asia could exceed 96 million by 2040, placing significant strain on the region's infrastructure, Nikolai Podguzov, Chairman of the Board of the Eurasian Development Bank, stated in an interview with TASS.
According to him, demographic growth should become the driver of economic development. However, to ensure comfortable economic functioning, a breakthrough in energy efficiency, modern mobility, and water resource management is necessary.
Podguzov emphasized that Central Asia remains one of the world's most vulnerable regions to climate change. According to forecasts, water shortages could reach 5 to 12 cubic kilometers per year by 2028.
Significant water losses are occurring due to outdated infrastructure, he noted. The Eurasian Development Bank is already participating in financing projects to modernize irrigation systems, implement water-saving technologies, and digital water metering.
The bank's head also noted the region's geographic distance from ocean ports—more than 3,000 kilometers. According to him, this increases trade costs by 20–40% and reduces annual economic growth by 1.5 percentage points, creating a so-called "distance tax."
Podguzov emphasized that this problem can only be solved by improving transport connectivity. In this regard, the EDB proposed the concept of a Eurasian Transport Framework—a network of corridors designed to reduce logistics costs and expedite trade.
The transport strategy places particular emphasis on north-south routes and a potential Trans-Afghan Corridor, which could open up markets in South Asia and the Persian Gulf to the region. Currently, the main transport routes run primarily east-west.
According to Podguzov, Central Asia is one of the fastest-growing regions in the world. According to EDB forecasts, the economies of the region's five countries could reach $600 billion by 2026. However, further development requires simultaneously addressing key challenges—demographic growth, transport connectivity, and water supply.
According to UNICEF, by 2025, the population of Central Asia will exceed 84 million people, which is already putting pressure on the region's resources and infrastructure.
