Harnessing Wealth of Eurasia: Advocating for the Trans-Caspian Development Bank Establishment
Getting the Middle Corridor Rolling:
With Central Asia and the South Caucasus region gaining strategic significance, it's high time we ponder over this question: Can we transform the Middle Corridor from a promising idea into a tangible reality?
Now, the keys to unlocking this potential could be hidden within the creation of something innovative - an institution that brings together existing efforts, instead of replacing them. A Trans-Caspian Development Bank (TCDB) could be that key, focused on addressing the unique infrastructure, trade, and logistics needs of the region.
At this year's Astana International Gathering, during a panel Debate: Tomorrow's Influencers: Middle Powers in a Multipolar World, moderator Darren Spinck sparked a conversation about setting up such a bank, which received a nod of approval from panelists. They emphasized its potential to bolster Kazakhstan's growth as a transport hub and, more broadly, to actualize the Middle Corridor's strategic potential.
The Middle Corridor, popularly known as the Trans-Caspian International Transport Route, has been gaining traction over the last couple of years among strategists around the world. Spanning from China through Central Asia, across the Caspian Sea, and to the South Caucasus and Türkiye, the route offers a politically neutral alternative to routes primarily controlled by Russia or Iran.
Trade volumes have skyrocketed, international investments have risen, and governments across the region, from Tashkent to Tbilisi, have embarked on projects to upgrade ports, railways, and digital systems.
Still, success demands more than piecemeal improvements. A dedicated financing mechanism, capable of pooling resources, aligning priorities, and offering consistent financing over the long term, is needed. And that's where the idea of a Trans-Caspian Development Bank (TCDB) comes into play.
If established, the TCDB would be a bank tailored to support infrastructure, logistics, and connectivity within the Middle Corridor. Its purpose isn't to replicate the jobs of existing development banks or donors but to work alongside them by focusing squarely on the cross-border needs of the corridor itself. It would provide financing for high-impact projects - modernized rail segments, intermodal ports, digital customs platforms, renewable energy upgrades - while also backing the technical and institutional reforms required to make the corridor competitive in the long run.
Importantly, the TCDB would be led by the region. Potential founding members could include the five Central Asian republics, Azerbaijan, Georgia, and Türkiye - countries that collectively encase and anchor the corridor. External allies, such as the EU, Japan, Gulf sovereign wealth funds, and the United States, could also be invited to contribute as non-governing stakeholders, preserving regional ownership while attracting the capital and expertise needed to succeed.
Kazakhstan, as the most influential economy in the region and one of its most focus-driven in terms of logistics and infrastructure development, could spearhead this initiative. The government has already taken bold strides to improve rail capacity, expand port throughput, and digitalize customs operations. The Port of Aktau, the Almaty-Shu railway junction, and the Digital Trade Corridor platform are only a few examples of Kazakhstan's dedication to regional connectivity.
But single national endeavors are insufficient. The Middle Corridor spans multiple borders, jurisdictions, and institutional systems. Without coordination, even the best plans risk inefficiency or underutilization. A bank like the TCDB would tackle this challenge by offering a common platform for investment, governance, and technical assistance.
In a nutshell, the TCDB would signal that the region is stepping up from being a mere transit zone between other powers to becoming a cohesive, self-sufficient hub of Eurasian commerce. It would institutionalize cooperation in a way that mirrors the growing agency of regional states - a trend Kazakhstan has made substantial efforts to cultivate.
While setting up a development bank isn't a walk in the park, the public discussion of the TCDB at the Astana International Gathering marks an important first step. The next move involves sustained political will and technical engagement to breathe life into this initially sparked idea, turning it into a long-term strategic asset for the region.
There is a precedent for this type of leadership. Kazakhstan has led initiatives on nuclear non-proliferation, energy security, and multilateral diplomacy. Creating the conditions for a regional development bank would be a continuation of that legacy. And while a Trans-Caspian Development Bank wouldn't solve every problem, it would provide a much-needed framework for solving them together.
And what better place to imagine this concept than in Astana, at a forum dedicated to the future of our shared region?
The authors are Carlos Roa, the head of the Keystone Initiative at the Danube Institute (Hungary) and a former Associate Washington Fellow at the Institute for Peace and Diplomacy; Charles Yockey, a legal policy analyst at the Manhattan Institute; and Ibrahim Mammadov, a researcher at the Danube Institute. Their views are their own.
- The Trans-Caspian Development Bank (TCDB), proposed during the Astana International Gathering, could play a significant role in finance and business by focusing on infrastructure, logistics, and connectivity within the Middle Corridor, providing consistent financing for high-impact projects and institutional reforms.
- The potential establishment of the TCDB, with regional members like Kazakhstan and external allies, could serve as a stepping stone for the Middle Corridor to transition from being a mere transit zone to a self-sufficient hub of Eurasian commerce, while bolstering Kazakhstan's growth as a transport hub and actualizing the strategic potential of the Middle Corridor.
