Skip to Main Navigation

Borderless bazaars and regional integration in Central Asia emerging patterns of trade and cross-border cooperation (English)

Local populations' economic opportunities can be enhanced through special arrangements governing movement of people and goods in neighboring areas. For instance, in the Tajikistan-Uzbekistan border-crossing points (BCPs), preferential treatment accorded to residents in contiguous regions varies from one BCP to another, even within one borderline, restricting the distance allowed for travel into the territory of another country to the closest large city or marketplace. When governments impose restrictions on the movements of individuals, vehicles, or goods or close BCPs or bazaars, they may do so on public policy grounds. Security is often cited as a factor for imposing controls, as is prevention of contraband trade. Such government imposed obstacles are a blunt and expensive instrument to attain such public policy aims. The income and welfare costs levied on poor communities of such public policies may be disproportionate to achieve stated public policy goals. Instead, BCPs and bazaars could be opened but made subject to strict and effective policing, ideally using risk-based criteria; similarly, risk-based surveillance or vehicle searches could take the place of an outright ban. Moreover, a government may find that the security benefits of stronger community ties across borders may be considerable; after all, in conditions of growing trade that obviously contributes to the prosperity of a border community, all parties have a stake in suppressing criminal behavior and public disorder and in promoting orderly conditions that minimize the likelihood of the need for security services to intervene. In summary, support for border trade is a win-win strategy for any pair of countries. Government-imposed restrictions may constrict trade and raise its cost, but they do not necessarily eliminate local trade, especially among countries with established cultural, ethnic, and economic ties, which is the case of the former Soviet republics in Central Asia. Such restrictions raise transaction costs and incentivize smuggling. They greatly reduce the beneficial impact on income and employment that can arise from border trade, leading to large welfare losses for communities. The most significant effect of growth in border trade is likely to be poverty reduction in communities in contiguous regions.

Details

  • Author

    Kaminski, Bartlomiej, Mitra,Saumya

  • Document Date

    2012/01/01

  • Document Type

    Publication

  • Report Number

    69311

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Central Asia,

  • Region

    Europe and Central Asia,

  • Disclosure Date

    2012/05/25

  • Disclosure Status

    Disclosed

  • Doc Name

    Borderless bazaars and regional integration in Central Asia emerging patterns of trade and cross-border cooperation

  • Keywords

    border trade;pattern of trade;provision of infrastructure service;scientific and technical information;production editor;Cost of Doing Business;flow of good;border cooperation;movement of people;source of employment;movement of good;creating employment opportunity;means of transportation;Water and Energy;trade in goods;information and communication;level of movement;array of service;opportunities for development;point of departure;central government official;competitive international environment;bank of england;foreign trade statistic;international development partner;governments of country;strong bargaining position;provision of service;regulation of security;movement of vehicle;Rule of Law;foreign trade regime;flow of information;rates of return;economies of scale;second world war;source income;simplified customs procedure;clocks and watches;price of good;source of income;exchange of knowledge;degree of competition;fruit and vegetable;degree of decentralization;border area;border regions;positive externality;trade flow;consumer goods;cross-border cooperation;border trading;import good;price differential;trading partner;agricultural product;income effect;public policy;official statistic;border activities;transport cost;construction material;International Trade;employment opportunities;goods export;government intervention;regional hub;industrial product;total trade;regional cooperation;public order;small trader;land border;local initiative;border arrangements;border movement;import product;cultural exchange;national border;regular meetings;mountainous region;foreign entity;income gap;local condition;rural area;border cities;preferential treatment;local demand;non-governmental organization;mutual benefits;trade links;legal arrangement;customs regulation;Public Services;ad valorem;auxiliary services;property right;flat rate;taxi driver;clothing exports;efficient production;supply response;welfare gains;fiscal burden;local economy;visa requirements;motorized vehicles;consumer protection;regional body;information exchange;entry visa;foreign tourist;tourist area;small-scale trade;regulatory practice;light vehicle;agricultural producer;traded goods;remote community;scale effect;subsistence farming;land area;gross margin;income generation;welfare effect;utility service;dependency ratio;geographic reach;Business Climate;customs fee;subsidiary right;community ties;commercial purpose;economic integration;trade channels;institutional model;institutional framework;cooperative agreement;noncommercial purposes;economic efficiency;growth policy;security benefit;trade datum;formal statistics;product flow;foreign resident;age-old tradition;national network;shopping mall;international client;state authority;trade effect;entrepreneurial skill;large business;customs practice;criminal behavior;commercial ties;internal trade;independent country;beneficial impact;economic welfare;moving goods;institutional aspect;european integration;security risk;aral sea;wholesale market;regional initiative;legal framework;investment need;political will;local actors;tourist infrastructure;domestic producer;spatial development;legal structure;international donor;deep integration;marketing skills;contiguous area;employment effect;goods trade;effective policing;administrative barrier;trade turnover;consumer product;automotive part;comparative advantage;integration effort;transmission channel;apparel industry;profit margin;civil society;logistics performance;intimate knowledge;potential buyers;economic reform;central planning;competitive market;contiguous borders;creating markets;health facility;local market;bulk product;natural history;customs union;small-scale irrigation;development cooperation;

Downloads

COMPLETE REPORT

Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Kaminski, Bartlomiej Mitra,Saumya

Borderless bazaars and regional integration in Central Asia emerging patterns of trade and cross-border cooperation (English). Directions in development ; trade Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/108461468016850647/Borderless-bazaars-and-regional-integration-in-Central-Asia-emerging-patterns-of-trade-and-cross-border-cooperation