Tashkent, Uzbekistan (UzDaily.com) —  Industrial cooperation is a key factor in the economic cooperation of the turkic states organization. This was stated by Bakhtiyor Mustafayev, Deputy Director of the Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan (ISMI), during the 10th meeting of official foreign policy research centers of the member and observer countries of the Turkic States Organization (TSO), held on 26 September in Cholpon-Ata, on the theme “The Turkic World – One World.”

As noted by the expert, the TSO has already become an effective international structure contributing to the development of practical partnerships in all priority areas.

In this context, Mustafayev emphasized the positive dynamics of economic indicators. To date, the combined GDP of TSO states is US$1.6 trillion, and by the end of 2024, it is expected that the economy of the Turkic countries will reach US$1.9 trillion, with a population of 178 million.

Amidst this growth, foreign investors are showing increasing interest in the TSO space. In 2023, the volume of foreign direct investment (FDI) into the economies of TSO member states reached US$50 billion, a 1.5-fold increase from 2017 (about US$30 billion). Over the past five years, the number of joint ventures with foreign capital has grown from 53,000 to 92,000.

In 2023, trade turnover among TSO member states increased by 27% compared to 2022, reaching US$42 billion. Tourism exchanges and mutual investments are also on the rise. As a result, the TSO is strengthening its position as a dynamically developing space of new economic opportunities.

According to Mustafayev, industrial cooperation is seen as a promising direction for the future. According to the UN, interstate cooperation in this field reduces production preparation time by 14-20 months and cuts costs by 50-70% compared to independent organization.

Today, the TSO has created all the necessary conditions to foster cooperation in this direction.

Firstly, the legal and institutional framework is being strengthened. In particular, the -Strategy for the Development of the Turkic World until 2040 identifies industrial cooperation among TSO countries as a priority area.

The Turkic Chamber of Commerce and Industry is actively working to strengthen cooperation between entrepreneurs.

Starting from 1 November 2023, applications for joint projects under the Turkic Investment Fund will be accepted.

The upcoming first meeting of ministers of science, technology, innovation, and industry, planned for late September 2023 in Istanbul, will undoubtedly give a new impetus to the development of industrial cooperation within the TSO.

Secondly, according to Mustafayev, the geographic location of TSO countries positions them as key players in international trade and new global supply chains. Their participation in economic unions and strategic positioning opens opportunities to access third-country markets. Kazakhstan and Kyrgyzstan are members of the Eurasian Economic Union (EAEU), Uzbekistan has infrastructure to cooperate with South Asia, Azerbaijan has ports on the Caspian Sea, and Hungary is a member of the European Union. Turkey, though not an EU member, has been part of the European Customs Union since 1995.

Thirdly, the TSO already has successful examples of industrial cooperation. For instance, UzAuto Motors, in partnership with companies from Kazakhstan, Kyrgyzstan, and Azerbaijan, has established enterprises producing Chevrolet cars. Uzbek textile companies manufacture clothing for Turkish brands such as LC Waikiki and DeFacto. Soon, the Uzbek company Global Textile plans to build a textile cluster in Azerbaijan, covering the entire production cycle from cotton growing to finished goods.

To further develop industrial cooperation, and based on proposals from the President of Uzbekistan, Mustafayev called for the following measures:

1. Development of a system of credit and financial institutions.

In this regard, the creation of a TSO Development Bank is of particular importance.

2. Formation of core production assets and technologies, modernization and automation of equipment, and the introduction of modern scientific and technological advancements.

3. Accelerating the launch of the TSO Trade Cooperation Research Center, which will work to develop practical proposals for creating favorable conditions to expand economic ties.

In conclusion, Mustafayev emphasized that industrial cooperation is a key factor in the economic cooperation of TSO countries, contributing not only to strengthening mutual ties and technology exchange but also to creating sustainable conditions for joint growth and development, ultimately enhancing the region’s global competitiveness.

The event, organized by the National Institute of Strategic Initiatives under the President of the Kyrgyz Republic, was attended by prominent representatives of leading think tanks from Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, Turkey, Hungary, the TSO, and ECO.

Participants discussed the prospects for developing multifaceted cooperation within the TSO in political, economic, scientific-innovative, and cultural-humanitarian spheres.