Eurasian Cities: New Realities along the Silk Road

Faced with changing economic circumstances and a reorientation of trade toward Europe and Asia, will Eurasia’s cities be able to adjust? Will some cities be granted the flexible regulations and supportive policies necessary for growth? And will some be permitted to shrink and their people assisted in finding prosperity elsewhere in the region? This report responds to these pressing questions for policymakers in Eurasian cities and national governments.

Even as Eurasian cities diverge, they face shared challenges. Policymakers have a key role in assisting spatial restructuring, particularly in addressing imperfect information and coordination failures. They can do so by rethinking cities, better planning them, better connecting them, greening them and finding new ways to finance these changes. Eurasian cities will also have to find the right balance between markets and institutions to become sustainable.

As the World Development Report 2009: Reshaping Economic Geography illustrates, Eurasia (excluding Russia) is a 3D region - a region with low density, long distance, and many divisions. Securing accessibility to leading regional markets such as China, India, and Russia is thus critical. This will require key institutions to be developed to unite the countries, key connective infrastructures to be established between domestic and regional markets, and targeted interventions to be undertaken to compensate countries for short-term losses from this deepened economic integration. Policymakers at the highest levels in these countries should put accessibility at the top of their agendas.

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