Transregional Just Transition Governance
With the EU committing €12 billion to Central Asia under its Global Gateway strategy in April 2025— €365 million in investments for sustainable transport, water infrastructure, and climate resilience—and already accounting for over 40% of total FDI in the region, the challenge now lies in ensuring this funding fosters balanced development rather than reproducing dependency-driven models. (EC AC/25/990)
Examining the vital China-Europe land corridor through the lens of Trans-regional Just Transition Governance, this research delves into the complex political and economic inter-dependencies at play. Central Asia’s position offers significant potential for trade and development, benefiting the region and its economic partners in Europe, including Germany. This study focuses on the manner in which international trade patterns and investment strategies can navigate the normative tensions between economic imperatives, climate considerations (implicit in sustainable development and infrastructure choices), and social justice.
The project examines the influence of factors such as industrial organization, infrastructure development, institutional quality, and value chain integration on outcomes in this critical transregional space. Central questions of the study are how development processes can promote convergence and equity to ensure political stability and resilience. Using political and economic perspectives—including theories of development poles, gravity models, and cluster analyses—the project aims to formulate strategies that promote sustainable, stable, and equitable transition. This approach aims to mitigate potential risks and ensure that the benefits of connectivity are distributed fairly.
- How can Central Asia strategically navigate its position to achieve industrial upgrading and higher GVC position?
- How can the states mitigate the environmental costs of rapid industrialization by distinguishing between value-adding foreign direct investment from that create “pollution havens”?
- What is the optimal industrial strategy: large state-owned enterprises (SOEs) on which sector and how to foster the development of small and medium-sized enterprise (SMEs)?
Current Research Focus
Fair Investment in Central Asia: Appropriate level of foreign investment based on the theory of regional economic interaction
Post-COVID FDI strategies: Adapted policies to attract international capital while maintaining national independence
Proposal for a strategic framework: Trade strategy for focusing on transition, development and resilience