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CAREC 2030

Connecting the Region for Shared 

CONNECTING THE REGION FOR SHARED  and Sustainable Development

AND SUSTAINABLE DEVELOPMENT

October 2017

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CONTENTS

Abbreviations        iv

Executive Summary          v

1. Introduction                  1
2. Rationale for CAREC 2030         2
3. Driving Principles of CAREC 2030             4
4. CAREC 2030Mission Statement                8
5. Renewing CAREC’s Operational Framework          9

A. Economic and Financial Stability Cluster      9

B. Trade, Tourism, and Economic Corridors Cluster 10

C. Infrastructure and Economic Connectivity Cluster 12

D. Agriculture and Water Cluster        14

E. Human Development Cluster          15

6. CAREC 2030: Institutional Framework    16

A Renewed Institutional Framework             16

B. Enhanced Role for the Ministerial Conference and the Senior Officials’ Meeting                17

C. Sector Committees            18

D. Expert Groups             18

E. Development Partners          18

F. CAREC Secretariat     19

G. Private Sector              19

H.      Mobilization of Resources                                                                                         19

7. CAREC 2030: Program Results Framework             20

Appendix                                                                                                                           22

Box: Aligning CAREC 2030to National Strategies 7

Figure:  CAREC 2030Institutional Framework    17

Table:  CAREC 2030Program Results Framework 21

ABBREVIATIONS

ADB                              Asian Development Bank

CAREC                          Central Asia Regional Economic Cooperation (Program)

CI                                   CAREC Institute

COP21                      21st Conference of the Parties to the United Nations Framework Convention on Climate Change

GDP                             gross domestic product

ICT                                information and communication technology

MC                               ministerial conference

PRC                              People’s Republic of China

SDG                             sustainable development goal

SMEs                           small and medium-sized enterprises

SOM                            Senior Officials’ Meeting

SPS                               sanitary and phytosanitary 

WTO                            World Trade Organization

Strategic Directions

CAREC 2030 provides the new long-term strategic framework for the Central Asia Regional 

Economic Cooperation (CAREC) Program leading to 2030. It is inspired by a mission to create an open and inclusive regional cooperation platform that connects people, policies, and projects for shared and sustainable development. CAREC 2030builds on the solid foundation of progress made under CAREC 2020, the strategy that has guided CAREC’s activities since 2011. The strategy is now being revisited to ensure CAREC’s relevance in the fast-changing development landscape of member countries in the region, and in view of the emerging challenges to globalization posed by the stalemate in progressing global trade deals and rising protectionism in various parts of the world. The need and usefulness of regional approaches to cooperation and integration has redoubled in these circumstances. 

CAREC 2030 aligns its activities with national strategies and development plans and with the new international development agenda embodied in the sustainable development goals (SDGs) and the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) global climate agreement. It will support regional actions that must complement national efforts to successfully address the SDGs and climate change. CAREC 2030will embrace such areas as resilient infrastructure development, natural capital and the environment, sustainable urbanization, and inclusive social development. It will also devise sustainable financing plans to support these ambitious goals. 

To align with national and international goals and to increase its relevance and effectiveness, CAREC’s operations will be both deepened in the existing priority areas of transport, energy, and trade; and scaled up to include new areas. Besides project investments, CAREC 2030will promote policy dialogue among members and development partners, and deliver and disseminate quality knowledge services. The CAREC Institute will be central to providing knowledge solutions. CAREC’s reputation as a neutral, honest broker will help it catalyze technically sound and balanced development solutions based on best practice. 

Moreover, CAREC 2030 will promote businessto-business contacts across members. Civil society will be strengthened through promoting people-to-people contacts across borders. 

The CAREC platform will welcome existing and new development partners. Partners will be encouraged to lead dialogue and operations in priority areas using the CAREC platform.  

Operational Priorities

CAREC 2030 envisages focus on five operational clusters going forward: (i) economic and financial stability; (ii) trade, tourism, and economic corridors; (iii) infrastructure and economic connectivity; (iv) agriculture and water; and (v) human development. Integrating the use of information and communication technology (ICT) across the spectrum of CAREC operations will be a cross-cutting priority.

(i)For economic and financial stability, CAREC will promote policy dialogue and regional learning on macroeconomic policy coordination, including forging appropriate countercyclical policy responses at the regional level during periods of economic crisis. By setting up a forum to exchange experiences, CAREC will support national banking and capital market regulators vi        Executive Summary

in data exchange, intelligence, and implement agreed common practices. 

(ii)                 For trade, CAREC will help assess the shifting landscape of global and regional trade, and the potential of moving toward free trade agreements in the region, with a focus on trade in services, including tourism. It will assist members with the range of World Trade Organization (WTO)-related commitments, with respect to trade facilitation and policy. Support for national single windows, improved border crossing points, and customs harmonization will be provided. Economic corridor development and related urbanization strategies will be facilitated.   

(iii)               For regional infrastructure development, investments in railways and logistics will be stepped-up, commercial capabilities strengthened, and regulatory frameworks modernized. Aviation priorities will address international aviation agreements, including open skies, and knowledge and capacity consistent with international standards. Priority will be maintained on road safety and road asset management. CAREC 2030will support technology leapfrogging in the use of clean and renewable energy, and promote energy efficiency, besides promoting energy trade.

(iv)               For agriculture, support for sanitary and phytosanitary measures will help CAREC countries integrate into global agricultural value chains. Support can also be considered for transboundary animal disease control. CAREC will use its honest broker role to promote dialogue on water management issues. Irrigation, improved management of rivers to reduce flood risk, and addressing water contamination are some “early harvest” areas for support. Assistance could be provided in basin water management, particularly in transboundary areas.  

(v)                 For human development, CAREC will help develop a regional labor market information system focusing on skills needs, regional job search and placement, and cross-border higher education and technical training offerings. CAREC will help address pandemic risks and control of communicable diseases, and prevention and treatments for noncommunicable diseases.  Institutional Arrangements

A renewed institutional framework will be required to implement CAREC 2030, guided by strong country and development partner ownership and strengthened engagement with the private sector and civil society. The Ministerial Conference will function as a strategy-setting and policy body, and exercise accountability over the results of the CAREC Program. The Senior Officials’ Meeting will monitor overall operational progress and consider complex multisector projects.  

Sector committees will be further strengthened with full operational authorities, and flexible operating arrangements will be introduced, supported by expert groups. Focus group discussions will be required to set agendas for CAREC’s new operational priorities. 

Resources 

Greater financial and other resources will be indispensable to support CAREC 2030. Development partners will need to scale up their financial and technical support for CAREC projects and activities. As public sector financing alone cannot meet the large investment requirements, CAREC 2030will help members obtain private sector financing by deploying public funds for de-risking and leveraging private investments. Member countries may consider more contributions to support and sustain the CAREC Program and its activities.

Results

A program results framework will monitor CAREC’s progress, showing the results chain that leads from program interventions to the expected outputs and the targeted outcomes in each operational cluster. The CAREC Secretariat will support development of cluster-specific results frameworks that will include concrete indicators, baseline data, and data sources. An online system of tracking and updating progress on these indicators with regular intervals will be established.

INTRODUCTION

1. The CAREC Program,^[1]now 16 years in operation, has recorded impressive achievements in regional economic cooperation, particularly in the four priority areas of transport, energy, trade facilitation, and trade policy. Since 2001, investments in member countries under CAREC have amounted to more than $30 billion.^[2]Six international development institutions participate,^[3]buttressing a robust program of project investments and knowledge products (see Appendix). 
2. CAREC operations have been guided by the strategic framework outlined in CAREC 2020,^[4]  that covers the period 2011–2020. The vision articulated in the strategic framework is one of Good Neighbors, Good Partners, and Good Prospects. CAREC 2020envisages development through cooperation, leading to accelerated growth and shared prosperity, based upon trade expansion and improved competitiveness. To support these objectives, CAREC has been promoting cooperation in the four priority areas as well as economic corridors development, “second-tier” areas,^[5]and the CAREC Institute. 

3. CAREC 2020 notes that the strategic framework is expected to undergo refinement during the strategy period. A Midterm Reviewof CAREC 2020, completed in 2016, acknowledged the significant progress in addressing the agenda set out in CAREC 2020. It also recognized the need to review the strategic coherence and the relevance of CAREC. This was with the backdrop of the unexpected and significant changes in the international economic environment that had a major impact on several CAREC countries. Development priorities of CAREC countries have been also shifting. The Midterm Review thus recommended:

• completing the CAREC 2020 agenda, sharpening the focus on expanding trade and competitiveness of its members;  
• revisiting CAREC’s objectives to ensure these are strategically coherent, aimed at serving the highest development priorities;
• broadening the CAREC agenda beyond energy and transport through consultations with members with possible new areas being private sector development, information and communication technology (ICT), agriculture, food security, education, health, and tourism; and 
• preparing a new long-term strategy for CAREC to include an updated partnership structure reflecting growing regional and financial initiatives among its members, and the emergence of new financial institutions. 

4. CAREC 2030 was prepared in a thoroughly consultative and participatory manner. During the first half of 2017, consultations were conducted in all CAREC member countries, involving more than 350 government officials, multilateral and bilateral development partners, think tanks, academia, the private sector, and business associations. The valuable guidance and inputs received through these consultations are reflected in this strategy paper. 

RATIONALE FOR CAREC 2030

deals exemplified in the stalemate in the WTO post-Doha rounds⁹and the lack of progress on the Trans-Pacific Partnership agreement may provide an opportunity to seek greater progress in regional trade agreements. CAREC 2030 will consider these developments to reposition itself as a catalyst for trade expansion and economic diversification in the region.

•Emerging regional players

10. Multilateral and bilateral mechanisms for regional economic cooperation have multiplied over time. The scope for establishing constructive regional partnerships has increased, and so have the risks posed by lack of coordination and overlapping mandates. This underscores the need for CAREC to carefully assess emerging Rationale for 

opportunities of partnerships and strengthen coordination with such regional frameworks and institutions to effectively respond to the region’s contemporary challenges. 

•New development goals

11. All CAREC countries are signatories to the 2030 global development agenda, including the sustainable development goals (SDGs) and the Paris agreement reached at the 21st Conference of Parties of UN Framework Convention on Climate Change (COP21). CAREC needs to consider the implications of the international development goals and the expectations from member countries for support from regional cooperation programs to achieve these goals. 

Eurasian information super-highway (TASIM)                   •Integrating the role of the private sector and civil project represents an example of on-going efforts      society

to promote digital connectivity within the region 

and beyond.   22. Fourth, private sector’s participation and investment in the CAREC region to promote •Deepening policy dialogue based on CAREC’seconomic stability, sustain growth, and create standing and ability to deliver quality knowledge jobs is crucial and needs to be promoted. In the CAREC context, the private sector can take a  lead role in transforming transport corridors

19. Third, CAREC’s 16-year history of operations, its convening power, and its role as a neutral into economic corridors, expanding trade honest broker lend it credibility in moderating and investment, supporting agricultural value regional discussions and negotiations. Its informal chains, developing cross-border tourism, and structure facilitates policy dialogue, especially on spearheading regional education and health 

CAREC will complex and sensitive development issues. These initiatives. Thus, business-to-business contacts among member CAREC 2030will promote strengthen strengths will be preserved and emphasized under CAREC 2030as the program deepens its countries for embedding regional cooperation in engagement footprint in existing areas and expands into new national plans and priorities. Mutually beneficial with all areas requiring intensive inter-country dialogue. regional opportunities will be promoted through 

stakeholders 20. Development dialogues facilitated by CAREC business and investment forums, bringing the public and private sectors together, and through policy will be grounded in knowledge work member strengthening linkages between them. 

dialogue,     countries and development partners undertake, 

and project and coordinated with other knowledge providers to multiply the range of available knowledge 23investment requirements of the CAREC region . Without private sector financing, the large incubation and solutions, and minimize duplication and overlap. cannot be met. The SDGs themselves require implementation 21. The CAREC Institute (CI) will be central to financing in amounts that significantly exceed volumes of official development assistance; providing knowledge solutions. The CI will play a consideration must be given to tapping pools key role in developing knowledge and analytical of domestic and international private capital.^[10]underpinnings for policy dialogue at the CAREC’s CAREC 2030will help member countries leverage Ministerial Conference (MC), Senior Officials’ private sector financing solutionsby deploying Meeting (SOM), and sector coordinating public funds for de-risking and leveraging up committees. By building formal links with private investments. Due attention needs academia and think tanks in the region, the CI to be paid to creating incentive structures, will make best use of local knowledge. The CI will institutions, and the public interface to attract be a repository of knowledge, build international such investments.

best practices drawn from the available global 

knowledge base, and provide cutting-edge

24. CAREC 2030 will strengthen engagement capacity building and training services to help with civil society to seek its support in promoting uplift policy development, governance, and people-to-people contacts, including among service standards across member countries. border communities with strong traditional ties across countries. Student exchange programs, medical patients’ visits to tertiary health care facilities in neighboring countries, and opening of bilateral and regional tourism opportunities can help bring people together and confer direct and tangible benefits to cross-border populations at large. More attention will be paid to gender equality as a cross-cutting issue in the above areas.

•Building an open, inclusive CAREC platform

25. Finally, CAREC should become an open and inclusive platform to maximize its development partners’ resources and expertise to support regional cooperation. To this end, the CAREC platform will welcome both existing and new international development partners to contribute to the program on an equal footing. Development partners will be encouraged to lead dialogue and operations in CAREC 2030’s priority areas and channel their support using the CAREC platform.

26. CAREC will seek to strengthen coordination with other international and regional cooperation mechanisms active in the region including the Belt and Road Initiative, Shanghai Cooperation Organization and Economic Cooperation Organization. In addition, CAREC will recognize the importance of economic ties with non-CAREC neighboring countries and will coordinate activities with relevant entities, especially in the commercial and academic spheres. 

27. A robust communications strategy will be developed to demonstrate CAREC’s drive for transparency and sharing of information, as well as enhancing public awareness of its role in member countries and beyond. Stronger publicity from governments, greater visibility and recognition in the development world, and a higher public profile would add to CAREC’s legitimacy and aid its effectiveness.  

CAREC 2030 MISSION STATEMENT

IV

28. CAREC 2030will retain the overarching CAREC vision of Good Neighbors, Good Partners, and Good Prospects. To achieve this vision, the proposed mission statement of CAREC 2030is 

A Regional Cooperation Platform to Connect People, Policies, and Projects for Shared and Sustainable Development

29. The mission statement signifies important directional changes in CAREC’s approach going forward. First, it envisages CAREC as an open and inclusive “platform” where member countries and development partners come together to plan regional cooperation initiatives. As stated in para. 25, in addition to the six existing official development partners, the new CAREC will be open to new partners willing to contribute to its mission and objectives. 

30. Second, the mission statement cements the intent for CAREC to pursue a “projects++” approach. Under this approach, CAREC’s historical emphasis on regional projects will be complemented with a framework for policy dialogue and knowledge cooperation on the one hand, and promoting people-to-people contacts on the other, as part of a holistic and encompassing strategy to deepen regional integration. 

31. And, third, the quest for shared and sustainable development in the mission statement shows the resolve to align closely with member countries’ national strategies, and with the SDGs and COP21 climate agreement, that also pursue the same objectives.

V. RENEWING CAREC’S 

OPERATIONAL 

FRAMEWORK

32. CAREC 2030prioritizes five operational clusters, encompassing existing and proposed areas. In addition, it supports the use of ICT to promote productivity and efficiency gains in all operational clusters. 

33. Three criteria were used in selecting the operational clusters and their constituent sectors. First, the clusters show high returns to regional approaches, transcending the returns to individual country efforts. Second, the clusters are aligned with the priorities of national development strategies and the international development goals. And, third, CAREC’s development partners enjoy strong comparative advantages in these clusters, or can build up their expertise rapidly to support member countries in these.

A.         Economic and Financial Stability Cluster

i.        Macroeconomic Policy Coordination

34. With the region’s susceptibility to external economic shocks, CAREC will help support stable macroeconomic conditions and sound banking systems and capital markets as vital ingredients for economic growth and poverty reduction. CAREC will assist with policy dialogue and regional learning to design and implement appropriate countercyclical policy responses in periods of economic downturns. The MC could lead this dialogue. CAREC will particularly focus its expertise to illustrate sector linkages with macroeconomic performance; for example, the impact of energy pricing reforms on fiscal balance and economic stability in member countries. 

35. To facilitate regional dialogue and minimize negative spillover effects under the CAREC umbrella, development partners will work together to support consistency of policy approaches in member countries. At a future stage, such cooperation dialogue could evolve into mutually supportive arrangements to deal with external shocks; for example, countries benefiting from an oil price rise could find ways of cushioning the effects on those adversely affected to support demand, not least for their non-oil exports. Another example could be arrangements on currency swaps between central banks based on lessons learned from the Chiang Mai Initiative.^[11]

36. CAREC development partners can continue to provide medium-term lending to countries affected by economic shocks and those needing financing for economic adjustment, while promoting cross-country coordination and learning to improve the designs of subsequent interventions.

and the potential of moving toward free trade ii.Tourism agreements in the region. Opportunities for the 

CAREC countries in the context of trade treaties^[13]

44. A continued focus on trade in services, given the region’s rich natural endowments. particularly in e-commerce, and cross-border With the member countries’ binding cultural labor placements can yield rich dividends. ties and their arresting natural attributes, such Prerequisites for success are investments in as areas and routes rich in history or nature backbone services such as telecommunications parks, and mountains and forests that traverse 

Regional or financial services, and freer movement of labor.  national boundaries, CAREC will promote a regional approach to tourism development cooperation 

45. A special task for CAREC 2030 is to to maximize economic opportunities and to will benefit help members with obligations on post safeguard ecosystems. Common services, such from enhanced WTO-accession commitments, embracing as mountain rescue services, tour guides, and trade openness, difficult areas of trade adjustment where hiking can be developed to realize economies of joint tourism international agreements come into effect, scale.

initiatives, such as the agreement on technical barriers to trade, the agreement on the application of SPS

46. Regional cooperation in the implementation of the WTO–Trade Facilitation Agreement will be promoted through both knowledge and project solutions. Efforts on customs and integrated trade facilitation will be deepened through (i) establishment of national single windows, (ii) improvement of border crossing points, (iii) customs simplification and harmonization, including alignment with the  Revised Kyoto Convention;^[15](iv) establishment of a regional transit regime; and (v) development of logistics centers. Furthermore, the CAREC advanced transit system will be scaled up, the information common exchange across customs will be extended to all members and cover all trade and transit transactions, and new border service improvements projects will be undertaken. 

47. Trade in one category of services—tourism— under discussion need to be understood and enjoys high potential among the CAREC taken advantage of. CAREC will produce analyses membership. Sustainable tourism, including for its members, outlining new opportunities, and community-based and urban tourism, and help devise trade promotion strategies. nature and ecotourism (often cross-boundary) provide particularly important opportunities.

48 untapped tourism potential through advertising . CAREC can support the region’s large and economic measures, and the trade facilitation agreement,^[14]and branding, investing in tourism services and corridor all of them under the WTO’s aegis. CAREC 2030critical infrastructure, jointly developing tourist development will continue to support accession process for products, and advocating harmonization and member countries that are not WTO members. relaxation of visa regimes. 

iii.Economic Corridors Support Urbanization 

49. Economic corridors exploit the strong  growth effects of agglomeration that  accompanies urbanization; these effects are amplified if resilient infrastructure linkages  exist and conditions are propitious for private  sector investments. The integrated space within  economic corridors relies upon free movements of labor and capital, and trade and investment  flows. Successful corridors require economic  density, as well as corridor-wide energy and  transport linkages. Economic corridors can boost competitiveness enormously, through improved  logistics, lowered costs of production of both goods and services, and enabling policies and investments for urbanization.

among countries in the region is a current major freight and passenger operations, and driver visa constraint. Other limiting factors are lack of facilitation will remain priority tasks for CAREC. institutional capacity, tough challenges to air 60. Logistics infrastructure.CAREC 2030 will safety in harsh climates, and financial constraints support investments in logistics infrastructure for aviation infrastructure development. In all along the CAREC corridors. Greater attention these areas, CAREC 2030can play a facilitating will be given to those investments that create role.  economic clusters and corridors by combining 

57. CAREC will explore fostering aviation trade, production, and logistic functionalities agreements, including open skies, and building within one facility. One such endeavor is the knowledge and capacity consistent with envisaged Trans-Caspian Multimodal Transport international standards. Aviation agreements will Corridor. Another example of such an investment drive a surge in traffic, not least by encouraging is the Khorgos land port on the border between 

Regional low-cost carriers, code sharing, and joint ventures; and generate resources for infrastructure and PRC and Kazakhstan, where the respective governments set up a center of regional trade approaches human capital development. A notable example and economic cooperation that has, over to technology is provided by the Association of Southeast time, attracted private sector investments adoption will Asian Nations single aviation market with its in production, trade, services, logistics, and create scale incremental implementation of liberalization over a decade that led to a strong growth in transport. The creation of other similar land ports could be explored. Development of economies traffic, rise in exports, among others, by greater such investment projects will require strong to make low-cost carrier penetration. CAREC will also partnerships among the governments and private 

clean energy explore the possibilities and potential of regional sector investors through innovative public– investments collaboration on aviation through in-depth private partnership institutional and financial 

viable analyses, regional stakeholder consultations, and capacity development activities.    arrangements.

ii.     Energy

58. Road Transport. CAREC 2030 will continue to assist in completing road corridor investments,

61. Clean energy. CAREC 2030will support paying more attention to sustainability of road technology leapfrogging in the use of clean and infrastructure. There will be an increased focus renewable energy to help curb carbon emissions on road safety and road asset management. to support sustainability and reduce carbon Institutional and financial reforms in the footprints of member countries. The emergence road transport sector will help improve road of new energy technologies together with the maintenance practices and enhance road asset sharp drop in the cost of renewable energy life cycles. generation are helping countries deliver on 

59. Regional cross-border transport will continue national commitments under climate change under CAREC with an aim to reduce transport agreements, but require the integration of new and trade costs. CAREC 2030 is also well tooled options into national energy policies and into to support the implementation of the TIR regional trade arrangements. CAREC’s value Convention,^[17]by strengthening partnerships addition will be on promoting cross-country among national governments, the International learning and introducing regional approaches to Road Transport Association, national transport technology adoption to help create economies associations, and development partners. Other of scale to make investments in clean energy cross-border transport facilitation mechanisms, viable. Such investments have the potential to such as the universal customs guarantee, cross- add greatly to the current electricity generating border transport agreements for commercial capacity in the region. In addition to investments, 

as the World Bank Group and the United

71. Promoting greater labor mobility to match Nations Educational, Scientific and Cultural employment opportunities in the region is Organization’s International Hydrological important. CAREC 2030can help develop an integrated regional labor market information system focusing on providing information on current and future skill needs, and regional job search and placement services. 

Programme.  

E.     Human Development Cluster                    

i. Education      

69. CAREC countries have established networks

ii Health

72. Addressing pandemic risks and control of of national and regional tertiary education and communicable diseases are critical regional public technical and vocational education and training goods with significant positive externalities. 

                                     institutions, consisting of universities, research              CAREC 2030 can support a common framework 

Cross-border institutes and think tanks, and vocational training schools. There are significant opportunities for for addressing pandemics, given the likely regional nature of future outbreaks. The framework could educationregional trade in education services that expand include enhancing regional capacities to assess services and supply and choice and enhance quality. The and respond to pandemic risks, and building control of private sector can play an important role in this. preparedness to address regional health risks, communicable

70. Collaboration can encompass instructional including the development of early warning diseases will delivery initiatives such as student exchanges, systems and regional surveillance centers. help improve development of branch campuses, and

73. There is also considerable room for making quality of introduction of dual and joint degree or diploma programs, including e-learning programs. advances in the region for noncommunicable diseases. CAREC can facilitate common human capital CAREC 2030 can also support non-instructional approaches and cross-learning in prevention initiatives such as faculty exchanges, research and treatment protocols, help modernize service collaborations, cross-border accreditation, delivery and regulations, and develop sustainable program and degree or diploma harmonization, financing models. CAREC can also facilitate mutual recognition of skills and qualifications, private sector-driven trade in health services and development of higher education and technical e-medicine in the region. 

and vocational education and training institutions networks, and institutional twinning arrangements.   

CAREC 2030: INSTITUTIONAL 

FRAMEWORK

A.      A Renewed Institutional Framework

74. CAREC 2030 will be implemented through a renewed institutional structure that promotes member countries’ active and sustained participation in CAREC at both policy and project levels (see Figure). By providing an open platform for regional collaborative action, the renewed structure will enable and provide incentives to CAREC member countries and development partners to lead and facilitate initiatives in their respective areas of comparative advantage.    

75. The renewed institutional framework is guided by the following elements: 

• Building strong ownership and stakes of countries in CAREC at both senior and technical working levels;
• Enhancing the role of development partners, including capitalizing on their areas of expertise and resources to maximize their contribution to the expanded CAREC agenda;
• Establishing integrated groupings to activate cross-linkages between sectors, and create synergies;
• Introducing an incremental approach to building up implementation modalities in the new areas and fine-tuning these modalities over time based on progress; 
• Retaining flexibility and pragmatism by allowing two or more CAREC countries to implement regional projects and initiatives agreed on by all members; and 
• Strengthening engagement with the private sector and civil society at all levels. 

76. The institutional arrangements for each of the five clusters will be defined based on the specific implementation requirements in each cluster. As a general approach, where clarity on the actual scope of work needs to be further developed, particularly in the new areas of operations (such as tourism, water, education, health, and others), a series of group discussions and workshops will be conducted. Such discussions could help develop a consensus on the key issues to be addressed, in what sequence, and the type of institutional structures that might be needed for successful implementation in the cluster or sector. Based on the outcomes of such discussions, expert groups in each area may be convened to kick off topical discussions, converge interest of member countries, identify concrete scope of activities and key issues of regional relevance, and conduct dialogue with key development partners (see para. 84). Ultimately, fully empowered sector committees, including necessary subworking groups, could be established as needed to develop and implement strategic action plans to move forward on the identified initiatives.

Figure:    CAREC 2030 Institutional Framework

Source: CAREC Secretariat. 

B. Enhanced Role for the Ministerial Conference and the Senior Officials’ Meeting

77. The MC will function as a high-level strategysetting and policy body. It will serve as a platform to discuss and debate important policy and strategic issues of regional relevance, including measures to promote regional economic stability and macroeconomic policy linkages of CAREC operational sectors. It will also provide overall strategic guidance on issues of regional and supranational nature and advise on CAREC’s external linkages with other regional cooperation bodies and multilateral institutions. The MC will exercise overall accountability over the results of the CAREC Program. Ministers will represent member countries at the MC, empowered with full decision-making rights, to help build highlevel ownership and facilitate the achievement of results under the program.  

78. A summit-level meeting of CAREC heads of states and/or governments may be considered on a periodic basis, every 3 to 5 years, to keep the political leadership informed and to reinforce high-level country ownership of the CAREC program. Such summit-level meetings could provide the opportunity for decision making on complex policy and coordination issues related to regional cooperation that require political consideration at the top levels of government.

79. With the MC focused on policy and strategy issues, the SOM will be empowered to monitor progress at the cluster and sector levels. The SOM could recommend operational improvements, and be vested with the authority to consider and endorse complex multi-country and multisector projects. The SOM will also serve as a mechanism to ensure the effective implementation of the policy and strategic decisions made at the MC level. 

CAREC 2030: Connecting the Region for Shared and Sustainable Development

active engagement in CAREC. In addition, a G. Private Sector CAREC Development Partners’ Forum could be 

convened from time to time to have a dialogue

90. Mechanisms to promote private sector among development partners on strategic and participation and investment, and foster public– operational matters related to the CAREC private dialogue and interaction at CAREC forums 

Program. will be promoted. Business and investment forums will continue to be convened to attract

87. Development partners shall also be invited the private sector’s attention and finances to to second staff to the CAREC Secretariat on support CAREC’s projects and activities. Bilateral short-term and long-term assignments to and regional business-to-business contacts will support CAREC 2030. Greater transparency be encouraged. and enhanced information sharing among 

development partners will be ensured.                                                

91. The CAREC Federation of Carrier and 

Forwarder Associations, the first private sector 

CAREC 2030 F. CAREC Secretariat mechanism established under CAREC to support requires greater 

88. The CAREC Secretariat will continue transport and trade facilitation, will continue its activities and functions. Other similar initiatives financial, to provide technical, administrative, and of this nature could be considered to leverage the 

technical coordinating support for the implementation private sector’s role inCAREC 2030.and human ofCAREC 2030. The capacity of the Secretariat 

             resources       will be further strengthened to assist with the              H. Mobilization of Resources

to achieve widened scope of CAREC’s operations and activities going forward.

92. With the expanded scope ofCAREC 2030, tangible results greater financial, technical, and human resources 

89. The role of the regional cooperation will be indispensable to support and implement coordinators and the advisors to the national its key directions. ADB and other development focal points based in member countries will be partners will need to scale up their financial and streamlined and improved. They will be tasked to technical support for CAREC’s projects and provide effective on-the-ground support for the activities. Joint efforts also need to be devoted implementation of CAREC 2030. They will also to mobilize and generate more private sector be expected to raise visibility and awareness of interest and financing. Member countries may CAREC by reaching out to national stakeholders, also consider more contributions to support and including think tanks, academia, civil society, and sustain the CAREC Program and its activities in the private sector. the long run.

CAREC 2030: PROGRAM RESULTS 

FRAMEWORK

93. The CAREC 2030 program results framework demonstrates the results chain, leading from CAREC interventions to the expected outputs, and the targeted outcomes in each operational cluster that will contribute to the impact of “Sustainable economic development and shared prosperity in the CAREC region.” (see Table) The results framework will help member countries and the CAREC Secretariat monitor progress on CAREC 2030. 

94. No target indicators are provided at this stage in the results framework. The CAREC Secretariat will work closely with the sector committees and working groups to develop cluster and sector-specific results frameworks with concrete indicators, baseline data, and data sources at outcome and output levels. An online system of tracking and updating progress on these indicators with regular intervals will be established. The CAREC Secretariat staff will lead this work with active inputs from sector committees and working groups. Every 3 years, the CAREC Secretariat will prepare a consolidated progress report by taking stock of progress on the program results framework and cluster and sector level indicators supporting the framework. Progress reports will also be made available online. 

CAREC 2030: Program Results Framework Table:    CAREC 2030Program Results Framework

Source: CAREC Secretariat.

APPENDIX