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THEALMATY–BISHKEK ECONOMIC CORRIDOR ABEC and Kyrgyz Republic are Strategic Border following a bold vision in the heart of Planning Mar ABEC Crossings: Central : to see the potential of Meeting: No. who crossed Implementation the dense economic centers—Bishkek Feb Plan formulation Kazakhstan (KAZ)– and and the area around them, (, Kyrgyz Republic when considering them as one economic ) Jan 2017 KAZ–KGZ (KGZ) border: around space. The two cities are only 240 Intergovernmental 30,000 per day kilometers apart but, at the moment, Dec Council at Prime (2016) traveling from one city to the other Minister level agree Nov Trade: takes around five hours, including a to form ABEC Subcommittee exports in cumbersome border crossing in between. Oct ABCI $ millions This makes exchange difficult and renders trade below potential. First Steering KAZKGZ: 376 Sep Committee Meeting: KGZKAZ: 151 ABCI Investment The concept is straightforward. The (2016, UN Aug Framework two city regions can achieve far more endorsed (Almaty, Comtrade) together than what can be achieved Jul Kazakhstan) by either alone. The Almaty-Bishkek 4th Joint Economic Corridor (ABEC), which Jun Working Group Agriculture (JWG4): Investment emanated from the Almaty-Bishkek Exports in May Framework Corridor Initiative (ABCI), transforms $ millions finalized (Almaty, the area into a single space where Kazakhstan) Apr Workshops KAZKYR: 39.2 cereals, exchange of ideas, movement of goods on Agro- 0.15 vegetables, 2.7 dairy food Value and meeting people is fast, easy, and Mar KYRKAZ: free of barriers. The cross-border Chains Cluster 0.98 live animals, and e-Agriculture agglomeration will allow businesses Feb (Almaty, Bishkek, 10.5 dairy (2016, to specialize more, operate at a larger and ) Jan JWG3: UN Comtrade) scale and achieve greater diversification 2016 Sector studies and competitiveness with the purpose reviewed, study Dec of exporting goods and services to the tour on urban planning Tourism: world. and management, international Nov partnership with arrivals UNWTO (Madrid, ABEC gives both countries the chance Oct Spain) KAZ: 21% from KGZ to design cooperation and coordinate JWG2: ICT KGZ: 70% from KAZ the steps toward each other—a process Sep applications in (2014, UNWTO) that is guided by growing mutual trust Economic Corridor in the benefits for both sides. They Aug Development explored; committed to integrate further under IT sector, disaster risk Jul management, identified Education: the umbrella of the Eurasian Economic as additional focus Union which offers greater access to No. of Jun areas (Bangalore, universities markets resulting in opportunities but ) Almaty: 40 also more competition. To begin the May Health: implementation of the corridor, both JWG1: Urban Bishkek: 39 planning, agriculture No. of tertiary countries have agreed to coordinate Apr (2016) and food security, hospitals ABEC at the highest level through the health services, education Almaty: 45 Intergovernmental Council, which is Mar services, tourism, and trade chaired by the two Prime Ministers. and logistics infrastructure ICT: Bishkek: 28 With continuous support from the Asian Feb identified as priority areas (2016) for analysis (, internet Development Bank, sectoral working Jan ) penetration groups are being formed to implement 2015 KAZ: 73% pilot projects in agriculture and tourism ABCI Dec Memorandum KGZ: 30% sectors, while the institutional setup (2015, World of Understanding and projects in other sectors like Nov between Almaty and Bank) health, education, and transport are in 2014 Bishkek signed preparation. (More on carecprogram.org) (Bishkek, Kyrgyz Republic) Economic What is needed to develop an economic corridor? Corridor (i) Economic potential. An economic corridor cannot develop from nothing; rather, it magnifies and builds on Development underlying economic potential, which can subsequently The myriad examples of successful corridors in attract private investment. The starting point for other countries, especially in Asia, show the power economic corridor development is selecting and of such an instrument in mobilizing both private prioritizing a target geographical area based on identified and public investments, in promoting high-quality economic potential. growth and jobs, raising the knowledge-intensity (ii) Economic and technical analysis to identify ways of exports, and setting an example to the rest of Petropavlovskof building on economic potential and prioritize where the country. Corridors have also proven to be and how resources should be allocated; and identify powerful vehicles for sophisticated infrastructure business opportunities, infrastructure needs, and policy development. Kostanai and regulatory prerequisites. ECD is concerned with the spatial organization (iii) Political commitmentKokshetau and coordination among of economic activities. It brings together existing multiple stakeholders at various levels of government, and new infrastructure, policies, and institutions Siletiteniz Lake diverse government agencies at each level, and to attract private investment that will create jobs countries (for cross-border economic corridor and encourage growth. Infrastructure requirements development). encompass transport networks (primary and secondary roads, railways, ports, airports), energy, (iv) Sustained commitment over a decadePavlodar or more. Since ASTANA information and communication technology, urban economic corridor development typically requires public RUSSIAN FEDERATION infrastructure, and economic zones. and private investment in infrastructure, completing projects will take substantial time and resources. The Corridor is an important pilot for regional Tengiz Lake cooperation and economic corridors under the References: Region Economic Cooperation Asian Development Bank. 2016. Growing Together: Almaty-Bishkek (CAREC) program. The Almaty-Bishkek Economic Corridor Initiative Investment Framework. . http://www. carecprogram.org/uploads/docs/CAREC-Publications/2016-ABCI- Corridor is envisioned as a flagship of regional Karaghandy Semey integration within the , Investment-Framework.pdf and the potential of an integrated economic space Asian Development Bank. 2014. Operationalizing Economic Corridors in Central Asia: A Case Study of the Almaty–Bishkek Corridor. Manila. represented by the Corridor is explicitly recognized http://www.carecprogram.org/uploads/docs/CAREC-Publications/ Oskemen in the EEU treaty. CAREC-ECD-study.pdf Ulgii Economic Densities* in Almaty, Bishkek, and Nearby Cities

Aral Sea $ Millions Khovd Uliastai 70 60 50 Kyzyl Orda 40 Nukus 30 20 Altai K A Z A K H S T A N 10 Taldykorgan 0 Bars proportional in size to Urgench city’s regional product per square kilometer of area

National Capital Shymkent Provincial Capital Taraz City Almaty Urumqi Road BISHKEK This map was produced by the cartography unit of Issyk-Kul theBukhara Asian Development Bank. The boundaries, Navoi colors, denominations, and any other information N shown on this map do not imply, on the part of the Namangan KYRGYZ REPUBLIC Asian Development Bank, any judgment on the 17-1598 legal status of any territory, or any endorsement or 0 100 200 acceptance of such boundaries, colors, Samarkand

denominations, or information. Andijan Jalal-Abad ABV Djizzak Kilometers Mary Fergana *EconomicOsh density is the ratio of city gross regional product over area.

DUSHANBE PEOPLE'S REPUBLIC OF (PRC)

XINJIANG UYGUR AUTONOMOUS REGION, PRC

Mazar-e-Sharif Kunduz

Herat

AFGHANISTAN Jalalabad