Developing Infrastructure in Central Asia: Impacts and Financing Mechanisms

Abstract

Infrastructure investment is a key factor for economic development and job creation. Water supply, electricity, road, railways, and airports, among others, will bring in business to the Central Asia and Caucasus region and enhance the welfare of the people. Quality infrastructure refers not only to fiscal quality but also to the new business activities and accompanying employment created along each infrastructure system. In order to increase the economic impact of infrastructure investment, financing for small businesses must accompany infrastructure development. Otherwise, the economic impact only reaches large businesses. Restaurants, small shops, and the agricultural sector gain benefits from the development of infrastructure by making use of the roads and railways to sell their products. Through a diverse collection of studies on seven Central Asia Regional Economic Cooperation (CAREC) member countries, this book discusses the impacts of infrastructure investments.