Developing the Services Sector for Economic Diversification in CAREC Countries

This study underscores the potential for greater economic diversification through robust development of seven key services subsectors and industries in members of the Central Asia Regional Economic Cooperation (CAREC) Program. The services sector is becoming a key driver of economic development in most CAREC members. The economies in the region also need to adopt a coherent and comprehensive approach to the balanced development of these interdependent services subsectors. Enabling conditions such as good governance, competitive markets, strong regional cooperation and integration, efficient labor markets, and high quality physical and digital infrastructure are crucial.