New economic agenda of the Turkic world: Uzbekistan sets a strategic vector for the development of the Turkic world

New economic agenda of the Turkic world: Uzbekistan sets a strategic vector for the development of the Turkic world

 The modern world economy is in a state of profound transformation. Global competition for markets is intensifying, shifts in logistics routes are taking place, and new growth centers are being formed. Against this background, risks and uncertainties are increasing, which requires countries to be flexible and able to act in a coordinated manner. In such conditions, regional associations are becoming increasingly important. They are becoming not only political platforms, but also important economic pillars capable of ensuring sustainable development in conditions of instability. A striking example of the evolution of such an association is the Organization of Turkic States (OTG). Initially focused on cultural and humanitarian cooperation, today it is rapidly transforming into a full-fledged economic community. This is confirmed by the macroeconomic indicators of OTG. The combined GDP of the member countries reached $2.1 trillion in 2024, and domestic trade increased from $30.9 billion in 2022 to $45 billion in 2024. The increase of 45% in two years is significantly higher than the global average and indicates increasing economic integration. The Central Asian region is making a particularly significant contribution to this growth. Despite the fact that Turkey remains the largest economy in the region, it is Central Asia, and especially Uzbekistan, that demonstrates the most dynamic development. In 2024, Uzbekistan's economy demonstrated steady growth, increasing by 6%. Moreover, in the first quarter of this year, the country's GDP grew by 6.8% compared to the same period last year. The largest contribution to growth was made by key sectors: the service sector increased by 7%, construction – by 10.7%, industry – by 6.5%. These indicators underline the growing role of Uzbekistan as an engine of economic growth within the framework of the TG and confirm its readiness not only to demonstrate its own successes, but also forms the strategic agenda of the entire Turkic world, offering initiatives that can set a long-term development vector for the entire association. At the informal OTG summit held in Budapest on May 21 this year, President of Uzbekistan Sh.M. Mirziyoyev proposed the creation of a Single Investment Portal, a digital platform that would accumulate information on priority industries, investment projects and available investment opportunities. Such a system will provide transparent and understandable conditions for both domestic and international investors, thereby increasing the overall investment attractiveness of the region. Developing the topic of investment integration, the Head of State noted that the next step would be the establishment of a joint venture company focused on supporting startups and high-tech projects. This initiative is particularly relevant for Central Asian countries, where access to long-term capital remains limited. Venture capital mechanisms not only help to share risks, but also stimulate innovative development – a necessary condition for the transition to the economy of the future. The growing attractiveness of the region for investors is also confirmed by the figures: foreign direct investment in the CIS countries in 2023 reached $50 billion, which is 66% higher than in 2017. At the same time, the number of joint ventures has almost doubled, from 53,000 to 92,000, which indicates an increase in trust and closer economic cooperation between the countries. These positive trends are particularly noticeable in Uzbekistan: since the beginning of 2024, over 500 new enterprises with capital from the member countries of the OTG have been established here, and their total number has reached 4 thousand, which is 28.8% of all enterprises with foreign participation in the republic. Industrial cooperation is becoming a logical continuation of the investment agenda. Uzbekistan has proposed to develop an industrial cooperation program to create large-scale production facilities in the chemical, energy, mining, light, pharmaceutical, leather and footwear, food and construction industries. This will make it possible to build cross-border production chains, optimizing costs and speeding up project implementation. According to the UN, cooperative models can reduce preproduction time by 14-20 months and reduce costs by up to 70% compared to offline implementation. This creates not only economic benefits, but also a powerful social effect: new jobs are created, and the region's export potential is increased. The pharmaceutical industry looks particularly promising, where joint ventures will be able not only to meet domestic needs, but also to enter foreign markets, including the Middle East and Africa. The development of industrial cooperation between the two countries has been identified as one of the priorities in the Strategy for the Development of the Turkic World until 2040. An important tool for this is the Turkic Chamber of Commerce and Industry, which effectively promotes cooperation between entrepreneurs. However, without the development of modern infrastructure, it is impossible to ensure sustainable industrial and trade cooperation. Therefore, the creation of efficient East–West and North–South transport corridors is becoming a strategic priority for OTG. At the same time, it is important to accelerate the implementation of simplified customs procedures that eliminate excessive administrative barriers.

 In the context of addressing these challenges, the President of Uzbekistan has taken the initiative to hold an international forum on Multimodal Transport and Logistics of the Turkic States in Tashkent in November this year, which will become an important platform for developing coordinated approaches and strengthening sectoral partnership. The holding of the forum is especially relevant, given that today cargo transportation between the countries of the Trans–Pacific Rim is facing a number of serious problems, from congestion of existing routes to a shortage of modern logistics hubs and service infrastructure. According to Western experts, reducing customs clearance time by just one day can increase trade turnover by 3-5%. Thus, investments in infrastructure are not just trade support, but also the key to accelerated growth of the entire region's economy. Among the key initiatives announced by the Head of Uzbekistan, the proposal to adopt a practical program to expand trade deserves special attention. Its implementation is capable of significantly activating the economic dynamics within the TG, creating additional incentives for expanding trade turnover between the participating states. An important element of the successful implementation of this program is the development of modern digital tools that facilitate and accelerate foreign economic activity. In this context, the initiative of the President of Uzbekistan to create the online platform Turk-Trade, a single digital platform for intra-group trade participants, plays a key role. Its goal is to unite producers, investors and buyers into a common ecosystem where transactions can be concluded in real time, logistics can be monitored and information can be exchanged. Such a system is of particular importance for small and medium–sized businesses (SMEs), which are the foundations of the economies of the Turkic countries. Thanks to digital solutions, SMEs gain access to new markets at no significant cost, which increases competitiveness and stimulates entrepreneurial activity. In general, the proposals voiced by the Head of Uzbekistan can be considered as the starting point of a large-scale institutional transformation of the Organization. The country assumes the role of not just an active participant, but the initiator of systemic changes that form a new architecture of regional cooperation. The key elements of this new agenda are becoming a digital-based economy, co-production, logistics modernization, and investment cooperation. All this creates a solid foundation for sustainable, competitive and mutually beneficial growth in the Turkic world. The upcoming OTG summit, which will be held in Baku in early October this year, will confirm the importance and relevance of these initiatives. Here, the heads of state will discuss priority areas of regional cooperation, and this will be a special opportunity for Uzbekistan to promote key initiatives in the fields of the digital economy, joint ventures and investment cooperation.

Shavkat Alimbekov,

Leading Researcher The International Institute of Central Asia