Improving the forms and mechanisms of regional economic integration, deepening the mutual understanding on the formation of an economically and politically secure integrated space, expanding trade and economic relations, elaborating joint actions to maintain regional peace and stability, creating a single information space are among the key areas that have become the basis of cooperation among the Central Asian region (CAR) states. The authors reveal the positive aspects of cooperation among the CAR countries—Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, and Tajikistan. First and foremost, these include common historical roots, linguistic and cultural similarity, convenient geographical location and established economic ties, which allow the states of Central Asia (CA) to establish a deeper and more active understanding of each other, to solve economic and political problems related to finding and realizing domestic investment potential and expanding regional trade and economic ties. The joint establishment of international transport corridors and infrastructure will help reduce the transport costs for Central Asian countries that supply export products to external markets, which is an important area of cooperation in Central Asia. In addition, the economic problems that exist among the regional countries largely determine the nature of relations between them. Future solution of problems determines the subsequent viability of the Central Asian Regional Economic Cooperation (CAREC) and the regional development prospects. Based on the use of economic research tools, the authors examine the problems caused by the COVID-19 pandemic and their impact on the state of trade and economic relations between the regional states. Post-crisis plans for economic recovery in the Central Asian countries will be developed and implemented in the context of the need to solve the present-day problems associated with the gradual lifting of quarantine measures. In this regard, the quickest possible transition of economies to an upward growth trajectory should launch the expansion of trade and economic cooperation and ties among the Central Asian countries. The authors emphasize the fact that another important problem within CAREC is the fact that CAR economies are dominated by raw materials, which does not solve the problems of reducing social inequality and improving the welfare of the regional population. For this reason, Kazakhstan, like other Central Asian countries, is currently in search of a new economic model. The transformation is crucial because the country needs to overcome its excessive long-term dependence on the export of oil and raw materials. The new economic model should be focused on further industrialization and diversification of the economy, on the search for new innovative approaches and development strategies.
Exchange rate pass-through in the Caucasus and Central Asia