Economic and Environmental Challenges and Options for Central Asia: A Pragmatic Approach

Abstract

Central Asia occupies a strategically important position between Europe and Asia, yet the region continues to face deep-rooted economic and environmental challenges that hinder long-term sustainable development. Heavy reliance on water-intensive agriculture, fossil fuel extraction, and aging infrastructure inherited from the Soviet era has increased vulnerability to climate change, environmental degradation, and external economic shocks. This review draws on contemporary empirical studies to examine the region’s key challenges and to assess practical, integrated policy options. Particular attention is given to sustainable water governance, economic diversification, renewable energy development, and regional cooperation as interconnected strategies for building resilience and inclusive growth. The analysis also highlights the water–energy–food (WEF) nexus, demonstrating how coordinated, cross-sectoral approaches can improve resource efficiency and reduce trade-offs among water, energy, and food systems. By bringing together economic, environmental, and policy perspectives, this paper offers a clear and pragmatic roadmap for policymakers, researchers, and regional stakeholders seeking to strengthen sustainability and resilience in Central Asia.

Keywords:

Central Asia; Water Scarcity; Climate Change; Economic Diversification; Sustainable Development; Regional Cooperation; Water–Energy–Food Nexus; Renewable Energy