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Economic Development Strategies of Major Central Asian Countries and Their Implications for Korea

In recent years, major Central Asian countries such as Kazakhstan, Uzbekistan and Turkmenistan, have been actively implementing a "new economic strategy." First and foremost, they are in need of diversifying their industrial structure and strengthening economic competitiveness. The purpose of this study is to focus on Kazakhstan, Uzbekistan and Turkmenistan, analyzing the new economic development strategies of these countries, and to discover opportunities and demand for economic cooperation. The policy implications based on the analyses are as follows.

Firstly, based on the holding of regular high-level talks, our government should continue strengthening relations with key Central Asian figures, especially through summit diplomacy with key nations in the region. In addition, we should upgrade the Korea-Central Asia Cooperation Forum, which has been held at the vice-ministerial level, to a summit-level meeting. Through this, we can pioneer the "3.0 era of cooperation between Central Asia and Korea" while further strengthening the responsibilities and performances of cooperation.

Secondly, deciding on the main actor of economic cooperation between Central Asia and Korea is highly essential. An organization to formulate short- to mid- and long-term strategies for major Central Asian countries is needed in order to promote deeper economic cooperation. To this end, a Korea-Central Asia economic cooperation committee should be established, under the Korea-Central Asia Cooperation Forum, to coordinate Korea’s economic cooperation with major nations in the region. In principle, the committee should be composed of 1.5 tracks, in which all public organizations and representatives of private enterprises in every country participate. In this way, efforts to establish systematic supportive measures and cooperation policies targeting domestic SMEs can also be made.

Thirdly, we should seriously consider establishing a fund for industrial cooperation between Korea and Central Asia to promote industrial cooperation between countries. It is highly important to reduce investment and cooperation risks for private companies which have limited financial resources. Funds can be sought by national banks in each country and be reviewed to see if our official development assistance (ODA) fund can also be made available to support infrastructure development.

Finally, since the future development of the Central Asian countries will depend on human resources, a systematic supporting system that includes professional technical training, industrial specialists training, academic and technical exchanges, should be provided by establishing a "Korea-Central Asia Future Generation Promotion Committee" under the Korea-Central Asia Cooperation Forum. For example, we should prospectively consider establishing vocational training schools and operating technical education programs in Central Asia, as well as supporting international students from Central Asia through various special programs.  

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