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Regional Trade and People Movement in Central and South Asia

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The concept of regional trade and people movement across China, Russia, Pakistan, India, Iran, Afghanistan, Turkey, and the Central Asian states has been increasingly recognized as a potential driver of economic growth and stability.[1] Together, this region is home to nearly two-thirds of the world’s population, making it one of the largest concentrations of consumers, labor, and resources in the world.

Economic Potential

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The participating states collectively bring diverse economic strengths:

  • Russia, Iran, and Central Asia provide vast reserves of oil, gas, and minerals.[2]
  • China contributes its industrial and manufacturing capacity.[3]
  • India is a hub for information technology and services.[4]
  • Pakistan has a significant textile and agricultural base, alongside rich deposits of minerals such as copper, gold, coal, gemstones, and salt.[5]
  • Turkey functions as a strategic gateway between Asia and Europe.[6]

The combination of these factors provides unmatched opportunities for economic integration.

Corridors of Connectivity

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Several international transport corridors already exist or are under development:

  • China–Pakistan Economic Corridor (CPEC): Linking Kashgar in Xinjiang to Gwadar Port,[7] providing western China direct access to the Arabian Sea.
  • Xinjiang–Gulf & Africa Corridor via Pakistan: A proposed route enabling China to access the Gulf and African markets through Pakistani ports. This reduces dependence on longer maritime routes via the South China Sea and the Strait of Malacca. Benefits include shorter transit times and faster financial cycles, as capital turnover is improved.[8]
  • International North–South Transport Corridor (INSTC): Connecting India to Russia through Iran, reducing shipment times compared to traditional sea routes.[9]
  • Eurasian Rail Routes: Linking China to Europe through Kazakhstan and Russia.[10]
  • Pakistan–Afghanistan–Central Asia Link: A potential network connecting Pakistan’s ports to landlocked Central Asian countries.[11]
  • Turkey’s Position: Acting as a key transit hub between Eurasia and Europe.[12]

Movement of People

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In addition to trade, people movement plays a central role in regional integration:

  • Labor migration from South Asia and Central Asia fills workforce gaps in Russia, Turkey, and other economies.
  • Educational exchanges bring students from South Asia to China and Turkey, who later return with new skills.
  • Tourism and religious travel strengthen cultural ties, especially along the historic Silk Road routes.

For these exchanges to flourish, reliable and affordable transport systems — including trucks, buses, railways, and airlines — are essential.

Benefits

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The anticipated benefits of improved regional connectivity include:

  • The development of regional value chains in textiles, IT, energy, and agriculture.
  • Lower transport costs and reduced delivery times.[13]
  • Secure energy and resource corridors.
  • Job creation across transport, logistics, and supporting industries.
  • Poverty reduction through expanded market access and economic opportunities.[14]
  • The emergence of stronger, globally competitive economies.
  • A substantial increase in regional GDP, as money circulates within neighboring countries just as it does state-to-state in the United States or across European Union member states.[15]

Challenges

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Despite the potential, significant challenges remain:

  • Geopolitical tensions among certain states hinder cooperation.[16]
  • Infrastructure gaps require large-scale investment.[17]
  • Customs and bureaucratic barriers slow down the movement of goods and people.[18]

Conclusion

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Regional trade and people movement in this part of the world has the potential to generate substantial economic, social, and cultural benefits. The Xinjiang–to–Gulf & Africa corridor via Pakistan is of particular strategic importance to China and Pakistan, offering shorter transit routes and improved financial efficiency. With sustained investment in transport infrastructure and cooperative policies, the region could experience one of the largest economic transformations of the 21st century.[19]

References

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  1. ^ World Bank – Regional Integration Overview
  2. ^ Asian Development Bank – CAREC 2030 Framework
  3. ^ UNCTAD – China’s Industrial Policy
  4. ^ India Brand Equity Foundation – IT & ITeS Industry in India
  5. ^ State Bank of Pakistan – Economic Review 2022
  6. ^ OECD – Turkey Economic Snapshot
  7. ^ CPEC Official Website
  8. ^ UNESCAP – Transport and Trade Connectivity
  9. ^ The Diplomat
  10. ^ RailFreight
  11. ^ ADB CAREC Transport Projects
  12. ^ Carnegie Europe
  13. ^ UNCTAD – Transport Costs
  14. ^ ADB – Poverty Reduction in South Asia
  15. ^ European Commission – Intra-EU Trade
  16. ^ International Crisis Group
  17. ^ World Bank – LPI
  18. ^ UNCTAD – Trade Facilitation
  19. ^ UNESCAP – Regional Integration Work