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THE ROLE OF TRANSIT POLICY IN AFGHANISTAN’S ECONOMIC GROWTH
Saydaliyeva Jumagul
a second-year master’s student
International Relations and Foreign Policy.
Tashkent State University of Oriental Studies
Tashkent, Uzbekistan
Abstract:
This research explores transit policy's role in Afghanistan's economic growth,
emphasizing corridor diplomacy's impact on regional cooperation, connectivity, and trade.
Employing a mixed-methods approach, the study analyzes transportation corridors as instruments
of diplomacy, considering both economic and geopolitical advantages. It examines Afghanistan's
potential as a transit hub, leveraging theories of comparative advantage, trade, and growth. The
discussion highlights corridor diplomacy's role in promoting economic integration, political
stability, and regional security. It also stresses the importance of the Trans-Afghan Transport
Corridor for trade and development, addressing challenges like infrastructure gaps and corruption.
Key words:
Corridor diplomacy, Transit policy, Economic growth, Regional cooperation,
Connectivity, Trade, Afghanistan, Trans-Afghan Transport Corridor
Introduction
Afghanistan, situated at the crossroads of Central and South Asia, is strategically crucial. Corridor
diplomacy in Afghanistan may be viewed as an attempt to influence and control transit routes
across this strategic region. Countries can affect regional security dynamics and commercial flows
by building and regulating transit corridors. This perspective may be used to examine corridor
diplomacy, namely how transportation agreements and infrastructure investments maintain
dependency or encourage economic sovereignty. Strategic corridor relationships may either
strengthen Afghanistan’s reliance on neighboring nations or increase its economic independence.
Afghanistan has historically been an important transit route along the old Silk Road, allowing
commerce between the East and West. The country’s strategic position has considerable potential
to become a transit center once more. However, decades of violence, political instability, and poor
infrastructure have hampered its potential.
Methods
The aim of this research is to explore the concept of corridor diplomacy and its implications for
regional cooperation and economic development. The study seeks to analyze the strategic
importance of transportation corridors and investigate how corridor diplomacy contributes to
fostering connectivity, enhancing trade, and promoting peacebuilding efforts in the context of
Afghanistan. This research employs a mixed-methods approach to comprehensively analyze the
role of transport and logistics development in Afghanistan’s economy. The research design
integrates both qualitative and quantitative methods to provide a holistic understanding of the topic.
Theoretical framework
Corridor diplomacy
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Corridor diplomacy refers to the strategic use of transportation corridors as instruments of
diplomacy and international relations. It involves the negotiation, coordination, and management
of transportation routes, such as highways, railways, and pipelines, to achieve political, economic,
and security objectives among nations sharing common corridors. In corridor diplomacy,
transportation infrastructure serves as more than mere conduits for the movement of goods and
people- they become channels for diplomatic engagement, cooperation, and conflict resolution.
This concept recognizes the geopolitical significance of transportation routes, particularly in
regions where countries are interconnected by land or maritime corridors.
Maria Papadimitriou’s work [1] lays the foundational framework for understanding corridor
diplomacy as a strategic tool. She emphasizes the dual economic and geopolitical advantages that
nations seek to leverage by establishing and maintaining transportation corridors. According to
Papadimitriou, corridor diplomacy is not merely about physical infrastructure but also involves
strategic negotiations and alliances. This conceptual framework helps delineate the multifaceted
roles of corridors in contemporary international relations, highlighting how they serve as platforms
for achieving broader strategic objectives, including economic growth, regional stability, and
geopolitical influence.
Key aspects of Afghanistan’s transit policy include:
1.
National Transit Regime
:
Afghanistan has established laws like the 2012 Law on Transit
Duty and the 2018 Road Transport Law to regulate transit and transport matters. These laws aim to
provide non-discriminatory access and ensure smooth transit operations.
2.
International Agreements: Afghanistan is part of agreements like the Afghanistan-Pakistan
Transit Trade Agreement (APTTA) and the Chabahar Agreement, which facilitate its access to
seaports and enhance regional connectivity.
3.
Challenges: Despite its strategic location, Afghanistan faces significant obstacles, including
political instability, inadequate infrastructure, and strained relations with neighboring countries.
These issues often disrupt transit operations and trade3.
4.
TIR System
:
Afghanistan reintroduced the TIR (Transports Internationaux Routiers) system
in 2010 to streamline customs transit procedures and boost trade.
The Taliban takeover in August 2021 significantly altered Afghanistan’s transit policy, impacting
both domestic and international trade dynamics.
1.
Centralization of Revenue Collection: The Taliban moved quickly to centralize revenue
collection from cross-border trade through the Ministry of Finance. This involved replacing senior
officials at Border Crossing Points (BCPs) and enforcing government regulatory frameworks to
reduce corruption.
2.
Dismantling of Checkpoints: The Taliban dismantled roadside checkpoints that previously
collected rents for powerbrokers and themselves, reducing corruption and altering the political
landscape.
3.
Closure of Smuggling Routes: Smuggling routes were closed to channel trade through
official BCPs, where taxes are collected by central ministries. This has significantly reduced
corruption and changed the distribution of benefits among neighboring countries.
4.
Impact on Regional Trade: The Taliban's policies have led to a decrease in trade with Central
Asian Republics and Iran, partly due to an 80% drop in fuel imports.
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Ahmed Khan [2] explores corridor diplomacy in Central Asia, emphasising on its potential to
improve regional economic and political connections. Khan’s research highlights the transformative
power of transport infrastructure on regional wealth, connection, and peace. He contends that
corridor diplomacy’s success stems from its capacity to convert infrastructural expenditures into
broader socioeconomic benefits such as improved regional commerce networks, more political
discourse, and long-term peace efforts. Khan’s research provides a thorough examination of various
corridor projects in Central Asia, highlighting their importance in fostering regional growth and
integration.[3]
Prof. Emily Chen’s [4] research delves into the delicate balance required in corridor diplomacy
between national interests, regional collaboration, and international alliances to achieve sustainable
development goals. Her work provides a comprehensive analysis of the intricacies and challenges
involved in maintaining such corridors, addressing geopolitical rivalry, economic disparities, and
governance issues. Chen's research also explores the opportunities that corridor diplomacy offers,
such as fostering inclusive economic growth, enhancing regional connectivity, and promoting
sustainable development. Her study offers a thorough understanding of the strategic and practical
problems that governments encounter while undertaking corridor diplomacy projects. Chen
highlights the need for successful corridor diplomacy to balance national interests with regional
cooperation and international partnerships, while addressing geopolitical rivalries that can hinder the
development and maintenance of transportation corridors. Chen's research highlights the impact of
economic disparities on corridor diplomacy, highlighting the need to address governance issues
like corruption and lack of transparency. Despite these challenges, well-planned transportation
corridors can support inclusive economic growth by providing access to new markets, creating
jobs, and stimulating investment. Corridor diplomacy also enhances regional connectivity by
improving transportation infrastructure, reducing travel times, lowering costs, and increasing trade
efficiency, benefiting all involved countries.
Prof. Jane Smith's [5] study looks at the peacebuilding possibilities of corridor diplomacy. She
believes that transportation corridors may promote multilateral cooperation by offering shared
venues for conversation, negotiation, and conflict resolution amongst neighbouring nations.
Smith’s study is essential because it demonstrates how infrastructure projects, which are frequently
seen only in economic terms, may also serve important diplomatic and peacebuilding tasks. Her
case studies show how shared transit initiatives have helped to alleviate tensions and create trust in
conflict-prone areas, changing problematic boundaries into zones of collaboration and engagement.
Among the researchers in this topic , Suhrob Buranov’s paper presents an in-depth analysis of
Afghanistan’s transit policy framework, focusing on both the country’s issues and prospects.
According to Buranov [6], Afghanistan’s strategic location as a landlocked country between
Central Asia, South Asia, and the Middle East makes it an ideal transportation centre. His research
looks at the delicate balance required to use this position for economic growth while navigating
complex regional dynamics and internal problems. Buranov’s work underscores the importance of
regional cooperation and transit agreements with neighboring countries like Pakistan, Iran,
and the Central Asian republics. He analyzes existing agreements and proposes frameworks for
new ones that could streamline transit procedures and reduce bureaucratic hurdles
The theoretical framework for comprehending the impact of transit policy in economic growth
incorporates fundamental concepts from comparative advantage, new trade theory, endogenous
growth theory, and big push theory. Empirical research backs up these arguments by proving the
benefits of effective transit policy and infrastructure for trade facilitation, regional integration, and
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economic growth. Leveraging these theoretical insights can help Afghanistan establish successful
transportation strategies that will foster economic growth and development.
Dicussion
Corridor diplomacy can play a vital role in promoting economic integration in Afghanistan and the
wider region. By establishing trade corridors through Afghanistan, neighboring countries can gain
access to new markets and reduce their dependence on traditional trade routes. This can foster
economic growth and create new opportunities for businesses and entrepreneurs. Corridor
diplomacy can also contribute to political stability in Afghanistan and the region. By creating
shared economic interests and interdependencies, corridors can reduce tensions between states and
encourage cooperation. This can help to build trust and create a more stable political environment.
Afghanistan is located at a strategic crossroads connecting regions with vast natural resources,
including oil, gas, uranium, and other strategic materials. This makes Afghanistan a crucial hub for
trade and transportation corridors. Major powers such as the United States, Russia, China, and India
have significant geo-economic interests in the country due to its potential for economic
development. Apart from that, Afghanistan plays a vital role in regional and international security.
Its strategic location makes it a key link for military and security issues. Influential organizations
such as NATO, CSTO, SCO, and CIS have identified Afghanistan as a priority for their security
and military-strategic objectives.
Afghanistan is geographically an integral part of Central Asia. In our perspective, it is scientifically
logical to call it an alternative to the term AfSouthAsia with the term AfCentAsia. This concept is
a term that defines Afghanistan and Central Asia as a single region. Central Asia could create and
negotiate a number of transit routes, including such important pipelines for the export of energy
through Russian for 10 years. Moreover, for transit transportation by rail and road, they can use the
territory of China and the Islamic Republic Iran. Ferry crossings across the Caspian Sea allow
transit by rail and road, and to the south through China to Pakistan and India by road. These main
transport corridors have already created good opportunities for the development of trade for
landlocked Central Asian countries, although much remains to be done, especially in terms of
maintaining, modernizing and restoring infrastructure, which is a top priority for numerous transport
assistance projects in transport development implemented by the support of international
agencies.[7] It is necessary to accelerate the construction and implementation of the Trans-Afghan
Transport Corridor, which is one of the most important factors in expanding rapprochement and
cooperation in Central and South Asia. The Afghanistan Government has emphasized the
importance of regional cooperation to its reconstruction efforts, private sector development, and
peace building. The opening of Afghanistan’s borders and reconstruction efforts provide new
opportunities for the region, with the country potentially forming a land bridge connecting South
and Central Asia. However, trade is limited to imports to, and exports from, third countries via ports
in Pakistan or Iran, as well as to a lesser degree via the Central Asian republics. There is therefore
almost no transit trade through Afghanistan. Afghanistan faces several constraints to boosting trade,
including customs issues, trade policies, permits, visa regulations, and endemic corruption.
Physical infrastructure such as link roads, ports, and border crossings are inadequate and their
operation inefficient. There are also wider considerations holding the country back, such as
Afghanistan’s distance from world markets, weak investment laws, lack of private sector
investment, and absence of key services such as banking, finance, and telecommunications. The
Trans-Afghan Railway project, which aims to connect Uzbekistan and Pakistan via Afghanistan,
has recently received interest and discussion. This railway line will be an expansion of the
currently existing and functioning Termez-Mazar-i-Sharif railway line connecting Uzbekistan and
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Afghanistan. The Trans-Afghan Railway is a proposed railway line that would connect
Afghanistan to its neighboring countries, Pakistan, Iran, and Turkmenistan. The project has been
discussed for decades, but its implementation has been hindered by conflict and instability in
Afghanistan. After the fall of the Taliban regime in 2001, there was renewed interest in the Trans-
Afghan Railway project. The Afghan government, with the support of international donors, began
to explore the feasibility of the project and conduct preliminary studies. In 2010, Afghanistan
signed a memorandum of understanding with Turkmenistan to construct a railway line connecting
the two countries. In 2011, Uzbekistan completed a 75-kilometer rail link between Hairatan on the
Uzbekistan-Afghanistan border and Mazar-e-Sharif in northern Afghanistan. However, because to
high costs and operational concerns, the segment from Hairatan to Mazar-e- Sharif is underutilised.
Instead, most rail freight from Uzbekistan to Afghanistan is now shifted to road transit near the
border at Termez or Hairatan. The railway would have a planned capacity of up to 20 million tons
of cargo per annum, and once operational it would slice the travel time for goods transiting from
Uzbekistan to Pakistan from 35 days to just 3 to 5 days. The railway line is planned to be 573 km
and will be built with a 1,520 mm Russian gauge at an estimated cost of $4.8 billion. The time
frame for the construction is approximately five years. ‘‘Trans-Afghan will become the economic
corridor between Central Asia and South Asia,’’ said Mohammad Shafiq Mahmood, head of the
Balkh railway authority in Mazar-i-Sharif. In 2013, Afghanistan and Uzbekistan signed a similar
agreement to build a railway line between Mazar-e-Sharif and Termez. In September 2021,
Uzbekistan announced that it was suspending work on the Mazar-e-Sharif to Termez railway line
due to the political situation in Afghanistan. In October 2021, Pakistan’s foreign minister stated
that the Trans-Afghan Railway project was still under consideration, but that it would depend on
the security situation in Afghanistan. In March 2022, the Taliban announced that they had signed
an agreement with a Chinese company to build a railway line from Kabul to Peshawar, Pakistan.
However, there have been no further updates on this project. The Trans-Afghan railway project has
enormous potential to boost trade, facilitate the flow of goods and people, and develop regional
collaboration. The railway, which would run across Afghanistan, is intended to connect significant
towns and act as an important artery for regional economic growth. Furthermore, it is expected to
provide a much-needed lifeline for landlocked Afghanistan, allowing access to global markets
while reducing reliance on existing transportation routes. The Trans-Afghan railway is valued at $5
billion and has a transit capacity of up to 20 million tons of cargo, according to preliminary
estimates. Its implementation is crucial for advancing transportation and trade relations in both
Central Asia and South Asia.[8]
In February 2023, Uzbekistan and Pakistan announced plans to speed up the building of the Trans-
Afghan railway, demonstrating a shared commitment to improving regional connectivity.
Uzbekistan’s “Boshtransloyiha” institute estimated the cost of road construction at $4.6 billion,
Pakistan – at $8.2 billion. According to media reports, the project is estimated at $4.8 billion to $6
billion. It envisages the construction of a highway with a length of 573 km and a capacity of up to
20 million tons of cargo per year. The new transport corridor should connect the European Union,
Russia, Uzbekistan, Afghanistan, Pakistan, India and further Southeast Asian countries.[9]
This concept gathered traction, culminating in a quadrilateral meeting on December 7, 2024, where
transport ministries from Uzbekistan, Afghanistan, Pakistan, and Qatar met with railway
administration authorities to discuss strategies for implementing the railway construction project.
Further strengthening their bilateral relations, on December 27, Uzbekistan’s Minister of Transport,
Ilhom Mahkamov, engaged in talks with a delegation headed by Hamidullah Akhundzada, the
acting Minister of Transport and Civil Aviation of Afghanistan. Various aspects of collaboration in
transportation and logistics were addressed, including toll collection mechanisms, transit
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development through Afghanistan, and tariff concessions for railway transportation. Additionally,
both sides explored strategies to expedite the construction of the Uzbekistan-Afghanistan-Pakistan
railway project.
Corridor diplomacy, as represented by the Trans-Afghan Railway project, provides considerable
advantages to Afghanistan. This type of diplomacy uses geographic and infrastructure corridors to
promote international collaboration, economic development, and political stability. Here are some
significant benefits specifically for Afghanistan. The Trans- Afghan Railway would connect
Central Asia and South Asia, improving trade lines and opening up new markets for Afghan goods.
This can lead to higher exports and imports, so strengthening the national economy. The railway’s
construction and maintenance will provide jobs for Afghans, both directly and indirectly, in
associated businesses such as construction, logistics, and services. Investment Attraction:
Improved infrastructure may attract foreign direct investment (FDI) into Afghanistan, as
companies seek to capitalise on increased connectivity and trade possibilities. The railway would
improve connectivity between Afghanistan and other countries, leading to greater regional
integration. This can result in better political ties and regional stability. Infrastructure
Development: Developing such a large infrastructure project can lead to advances in other sectors
such as transportation, energy, and telecommunications, so contributing to overall development.
Afghanistan may exploit its strategic location as a transit hub to achieve political clout in regional
and
international
affairs,
therefore
improving
its
diplomatic
status. violence
Reduction: The railway’s economic connectivity can help to regional stability and lower the chance
of violence as countries become more involved in mutual success.
Social Development
1.
Community Benefits
: Improved transportation infrastructure can enhance access to
education, healthcare, and other social services for Afghan communities along the railway
route.
2.
Cultural Exchange
: Increased movement of people and goods can lead to greater
cultural exchange and understanding, fostering a more cohesive and informed society.
Security Enhancements
1.
Security Infrastructure
: The need to protect the railway infrastructure can lead to
improved security measures and capabilities in the region, benefiting overall national security.
2.
Counter-Narcotics
: Enhanced transportation infrastructure can help in more efficient
monitoring and control of illicit activities, including drug trafficking, which is a significant
issue in Afghanistan.
3.
Bilateral and multilateral cooperation:
The Trans-Afghan Railway project necessitates
collaboration with several nations and international organisations, assisting Afghanistan in forging
stronger ties and partnerships.
Corridor diplomacy, through initiatives such as the Trans-Afghan Railway, has the potential to
transform Afghanistan by boosting economic growth, improving regional integration, promoting
political stability, fostering social development, increasing security, and encouraging
environmental sustainability. This multifaceted strategy can assist Afghanistan in leveraging its
geographical location to achieve long-term peace and development.
In summary, corridor diplomacy holds transformative potential for Afghanistan. By fostering
economic growth, improving regional integration, and promoting political stability, Afghanistan
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can leverage its strategic location to achieve sustainable development. The effective completion of
the Trans-Afghan Railway project and other corridor efforts is critical to developing Afghanistan's
transport and commerce links. Recent promises by Uzbekistan and Pakistan to hasten railway
projects show a common commitment to boosting regional connectivity. These initiatives have the
potential to greatly increase Afghanistan's position as a transit hub, enabling the flow of
commodities and people while also boosting regional collaboration. Corridor diplomacy
encourages similar economic interests and interdependence among neighbouring nations, lowering
geopolitical tensions and encouraging collaboration. By establishing similar economic goals, these
corridors help foster trust and a more stable political climate in the region. This stability is
bolstered by improved regional integration, which draws countries together via mutually beneficial
initiatives and cooperative efforts.
Conclusion.
To sum up, transit policy plays a crucial role in Afghanistan's economic growth by
enhancing regional cooperation, connectivity, and trade. Corridor diplomacy, leveraging
Afghanistan's strategic location, fosters economic integration and political stability. The Trans-
Afghan Transport Corridor is particularly important for trade and development, though challenges
such as infrastructure gaps and corruption must be addressed. Overcoming these obstacles and
capitalizing on regional cooperation will unlock Afghanistan's potential as a key transit hub,
promoting economic growth and stability in the region.
References
1.
Maria Papadimitriou, ‘‘Corridor Diplomacy: A Conceptual Framework’’ (2018). The
Hague Journal of Diplomacy. Volume 13, issue 3, on pages 203-230.
2.
Khan, A. (2019). Corridor diplomacy: Enhancing economic and political relations in
Central Asia. Journal of International Affairs, 73(2), 123-145.
3.
Khan, A. (2019). Corridor diplomacy: Enhancing economic and political relations in
Central Asia. Journal of International Affairs, 73(2), 123-145.
4.
Chen, E. (2017). Corridor diplomacy in the 21st century: Challenges and opportunities.
Journal of Global Affairs, 15(4), 78-102.
5.
Smith, J. (2020). Diplomacy on wheels: The role of transportation corridors in
peacebuilding. International Journal of Peace Studies, 28(3), 45-67.
6.
Suhrob Buranov, (2022). Afghanistan as a Bridge Connecting Central and South Asia" .
International Journal of Multicultural and Multireligious Understanding (IJMMU)
7.
Lean HH, Huang W, Hong J (2014) Logistics and economic development: experience from
China. Transit policy. 32:96–104.
8.
Ozod Tanbayev , (2024) Qatar’s Critical Contribution to the Success of the Trans-Afghan
Rail link. Center for progressive reforms.
9.
Kun.uz (2023) Construction of Trans-Afghan railway to be accelerated. Ministry of
Transport of Uzbekistan.
