This wonderful game is once again held in Central Asia but with a different name and rules. Economics, not politics, are determining the terms of the current superpower competition for regional influence. According to a report by a Kazakh research institute. There are crucial differences that define the global conflict in Central Asia in the 19th and 21st centuries. Regional states, rather than outsiders. Now exercise greater influence over the possible outcomes of economic policy, according to a report titled 

Advancing Multivectorism

Road to Central Asia. This report was published by the Tarap Applied Research Center.” A region that was once the setting for the Great Game of Superpower Showdown is now becoming a zone of opportunity,”. The report states. Russia’s unprovoked attack on Ukraine in 2022. Also, the imposition of Western sanctions to punish Russia’s aggression will revive US and European Union. Interests in the region and also change the geopolitical dynamics of Central Asia. Furthermore, Russia’s actions promoted trade and investment diversification and changed East-West trade patterns between China and Europe. The sanctions reduced the benefits of the Northern Corridor to the Trans-Siberian Railway. While promoting the growth of the Central Corridor to Central Asia.

These changes have shifted the geoeconomic center of gravity of Central Asia. Although China has overtaken Russia as the region’s largest trading partner. The overall trend is for trading partners to become more diverse. Given the current dynamics, the share of Western countries in Central Asian trade will continue to increase.

Trade and Investment Trends 

In the region show significant diversification changes in non-traditional markets in Europe, North America, South Asia, and the also Middle East from 2022 onwards,” the Tarap report states. “This has been made possible by the region’s traditional multisectoral policies, which, under pressure from escalating conflicts, have shifted to a policy emphasizing non-alignment, with a firm refusal to engage in any conflict.

The report notes that contacts between the European Union and Central Asian countries have “gained particular momentum” since the start of the Russo-Ukrainian war. It has also been noted that public opinion in the region suggests that the majority of the region’s residents do not want to be drawn into a conflict between China-backed Western countries and Russia.

The current situation has meant that the Central Asian countries are “surrounded by Iran, Afghanistan, China, and Russia, countries that have had and continue to have tense relations with  the West but are unable to truly develop their relations with the Western world.” “I have to maintain interest.” relationship.” the report says.

Maximizing the Multi-Vectorism 

The economy will require some effort by Central Asian governments to increase the predictability of the region’s business environment. Vaguely defined trade rules and property rights, as well as unreliable regional justice systems, remain major obstacles to Western investment. In addition to strengthening the independence of the judiciary, the Tarap report said a lack of mechanisms to enforce contracts and resolve corporate disputes also remains a barrier to investment while creating a more “fair business environment.” It recommends reforming local tax laws to promote this.

“Central Asia’s investment climate reflects the difficult balance between governments’ determination to benefit from growing interest in the region and the inertia of institutional barriers,” the report states. “To seize these opportunities,  countries in the region must remove existing institutional and regulatory barriers to domestic and foreign companies and investors, strengthen the rule of law, implement fair and open competition, and promote business. We must introduce friendly tax systems, adjust trade and customs,” and logistics standards. “