Some of the factors brought about by the globalizing world system have pushed states to constantly adapt through reforms and increased their mobility in general. The economy has also experienced changes under the influence of globalization and has shaped world trade. In this context, active and rapidly progressing trading activities affect the policies and powers of states in terms of economic power.
The increase in consumption creates a great opportunity for countries that increase their production. Especially the Asian continent is at the forefront of international trade. China is an important actor here and has increased its cooperation with neighbouring countries. While the Belt and Road Initiative also contributes to this, the Organization of Turkic States provides serious trade cooperation with its member countries. The Organization of Turkic States, which has been making a name for itself in Asia and the world, has experienced vision and mission changes since its establishment and has also created unity in the field of economic cooperation.
The 2040 Vision of the Organization of Turkic States sets out a series of joint projects and cooperation frameworks in the economic field.[i] In this context, the harmonization of economic development policies as well as green economy and digitalization were emphasized. The use of national currencies in trade between member states is also on the agenda.
The Central Corridor is seen as a modern version of the ancient Silk Road, connecting markets in China and East Asia to Europe through the territories of the Organization of Turkic States member states. Compared to the 10,000-kilometer Northern Corridor, this corridor provides more cost-effective and faster trade on a 7,000-kilometer route.[ii] By utilizing the Central Corridor, Turkic republics are cooperating to provide more production capacity in different sectors, build the future knowledge economy, generate opportunities and develop infrastructure.
Capacity building with strategic partners is also in the plans. Concrete evidence of this is the increase in trade between the members of the Organization of Turkic States from 33 billion dollars in 2022 to 42 billion dollars in 2023.[iii] In this context, work under the “TuranSEZ Project” is also ongoing. On this issue, Minister of Trade of the Republic of Turkey Omer Bolat stated after the Astana Summit held on November 3, 2023 that the TuranSEZ Industrial Zone in Kazakhstan is a major project involving joint economic initiatives of the countries of the Turkic World.[iv] The “Turan” financial application, which will serve only the member states of the Organization of Turkic States and was established in Turkey, is one of the remarkable steps. The Turan application, which increases its impact with investments, can be seen as a banking initiative in the Turkic World.
In March 2023, the Turkish Investment Fund was officially established two months later. The fund, which aims to free the Turkic states from the dominant position of international financial institutions and strengthen the strategic autonomy of the region, is headquartered in Istanbul. Bagdad Amrayev, former Secretary General of the Organization of Turkic States, was appointed as its chairman. The fund will promote economic development, increase trade and entrepreneurial projects. The initial capital of the Turkic Investment Fund, which is expected to be an alternative to the International Monetary Fund (IMF) for long-term goals, is 500 million dollars.[v] There is no hierarchical system among countries in this fund where each member has an equal share. Apart from the Turkish Investment Fund, which contributes to economic independence, other efforts are underway to develop this cooperation.
Thanks to the Zengezur Corridor planned to be opened between Turkey and Azerbaijan, it is planned to increase the railroad trade between Turkic States. This corridor is also important for world trade as it is a transit route between Asia and Europe. Abdulkadir Uraloğlu, Turkey’s Minister of Transport and Infrastructure, said that Turkey is very focused on increasing rail transport between the members of the Organization of Turkic States and is in the final stages of signing agreements with many of them, cooperating with Azerbaijan for the Zengezur Corridor and also trying to reopen the rail corridor from Turkey to Basra Port in Iraq.[vi] The Organization of Turkic States countries, whose exports have accelerated upward, exported 5.6 billion dollars in the first 10 months of 2023.[vii] Azerbaijan accounted for 1.8 billion dollars of this. With this data, an increase of 16.3% was observed compared to 2022, and Kazakhstan was the country with the highest increase. In total, Azerbaijan has invested more than $20 billion in the economy of the Organization of Turkic States.[viii]
Looking at the current steps taken in the field of economic cooperation, we can say that the Organization of Turkic States will undertake major projects in the coming years. The Organization of Turkic States, which plays an important role in Eurasian politics, is increasing its commercial targets outside the union. The region, which connects Asia and Europe, is also a complement to the Belt and Road Initiative. In this context, it is expected to bring about major developments in the short term. The Turkish Investment Fund, which opens the door to development and new projects, creates an area open to development in every field. In addition to the fund, these states continue their policy of increasing the trade volume among themselves and minimizing dependency. In general, trade cooperation will contribute significantly to the rapid rise of the Organization of Turkic States in the world arena.
[i] “Turkic States Meet To Promote Middle Corridor Rail Freight Route”, Middle East Monitor, https://www.middleeastmonitor.com/20231006-turkic-states-meet-to-promote-middle-corridor-rail-freight-route/ (Date of Accession: 20.01.2024).
[ii] “President Aliyev Highlights Role of Interstate Transport for OTS Members”, Caspian News, https://caspiannews.com/news-detail/president-aliyev-highlights-role-of-interstate-transport-for-ots-members-2023-11-4-39/, (Date of Accession: 20.01.2024).
[iii] “President: Azerbaijan invested more than 20 billion US dollars in economy of Turkic states”, Azertag, https://azertag.az/en/xeber/president_azerbaijan_invested_more_than_20_billion_us_dollars_in_economy_of_turkic_states-2812147, (Date of Accession: 20.01.2024).
[iv] “Turansez – Major Project Covering Turkic States’ Joint Economic İnitiatives, Minister Says”, Trend, https://en.trend.az/business/3840366.html, (Date of Accession: 20.01.2024).
[v] “Erdogan’s Dream of a Turkic Fund Is Now a Reality. Here’s How It Works”, Trt World, https://www.trtworld.com/turkiye/erdogans-dream-of-a-turkic-fund-is-now-a-reality-heres-how-it-works-13539930, (Date of Accession: 20.01.2024).
[vi] “Turkic States Meet to Promote Middle Corridor Rail Freight Route”, Middle East Monitor, https://www.middleeastmonitor.com/20231006-turkic-states-meet-to-promote-middle-corridor-rail-freight-route/, (Date of Accession: 20.01.2024).
[vii] “Türk Devletleri Teşkilatı ülkelerine ihracat 10 ayda 5,6 milyar dolara ulaştı”, AA, https://www.aa.com.tr/tr/ekonomi/turk-devletleri-teskilati-ulkelerine-ihracat-10-ayda-5-6-milyar-dolara-ulasti/3066680, (Date of Accession: 20.01.2024).
[viii] “President: Azerbaijan invested more than 20 billion US dollars in economy of Turkic states”, a.g.e., , (Date of Accession: 20.01.2024).
