Translation
Original language
16.07.2025
BRICS Information and Analytical Exchange Centers and Transport and Logistics Corridors: Enhancing Product Security through Communication
Essay Author:
Mikhail Dmitriyevich Konov, research laboratory assistant at the Laboratory of Studies of Contemporary Central Asia and the Caucasus of the Institute of Ori- ental Studies of the Russian Academy of Sciences, 1st year postgraduate student of the Institute of Oriental Studies of the Russian Academy of Sciences in the field of “World Economy”.
This essay is consistent with the thematic vector “Investments in Communi- cation”, responding to the development of new logistics routes in the Global South, defining approaches to infrastructure development in the 21st century and, of course, touching on the general vector of agricultural digitalization.
PREAMBLE
Today, BRICS countries are facing enormous challenges in development of their infrastructure and economy as a whole. Due to their resources, which are much greater than, for example, those of Europe, BRICS countries still face the
need for sectoral development in order to properly implement the potential of the capital, both resource and intellectual, available to them.
The last several years have shown the importance of food security in the world. Thus, due to geopolitical tensions, the world community had to face changes in the world supply chains, pricing and distribution of resources, primarily food resources, such as grain. Therefore, it was necessary to compose this essay. Due to the access to critical resources and the availability of significant human and other types of capital, BRICS countries face the need to optimize and consolidate their approaches to the development and distribution of food resources. This need is also confirmed by the requirements in the economic development of the countries, as well as the ability to mutually supply the necessary products to each other.
HYPOTHESIS EXPLANATION
Today, in the Russian Federation, farmers have state support and opportuni- ties to develop their business1; however, they still need to sell their products, which means certification, conditioning, transportation, and marketing. Thus, it is very difficult to compete with large suppliers, so the experience of French farmers on this issue suggests the possibility of creating cooperatives and associations2, in other words, exchanges specializing in the certification, storage, and sale of prod- ucts. Such approach not only simplifies the work of farmers but also makes it pos- sible to create new jobs, fr om packers to warehouse directors. The experience of food exchanges can also be applied to Russian realities.
People have the opportunity to sell their “garden” products at fairs, shops, and markets. However, the process fr om production to sale takes a long time, including certification, processing, packaging, conditioning, transportation, and final deliv- ery to the shelves. In general, the current challenges of farming in Russia can be summarized as follows:
1) marketing challenge of farmers;
2) need for high-quality customization in processing, certification, and logistics;
3) inaccessibility of large markets to small farmers;
4) low salability of products as a necessity to improve the welfare of the pop- ulation.
In this regard, there is a necessity to develop information and analytical exchange centers that stimulate and regulate the activity of farms. Establishment of such centers poses the challenge of functioning at different levels of government and their financing. Financial refers to sources of financing and start-up capital for farmers, costs of purchase/lease and maintenance of land plot, costs of purchasing machinery and equipment, personnel costs and etc. This challenge can be resolved through the development of an organization accountable to BRICS and funded either nationally or through the BRICS platform.
However, along with the positive aspects of establishment of information and analytical exchange centers, there are also “pitfalls” that can be resolved in the fol- lowing way:
It is necessary to ensure transparency and accountability of public authorities that manage the industry by reporting on their activities, conducting independent audits, and establishing mechanisms for feedback from the public and consumers.
Governance should take into account the interests of all BRICS members.
Governance should also support competition in the market, by preventing monopoly or oligopoly and providing a competitive playing field for all participants.
Regulation and governance should be flexible and adaptive to changes in the market and industry, by encouraging innovation and the use of new technologies.
ECONOMIC AND SOCIAL IMPACT
Regarding the proposed solutions, it is important to note that the role of the states themselves should be important, but not to disrupt the ecosystem of farms’ activities, thus permitting new farms to safely enter the market and conduct their activities through information and analytical exchange centers. State assistance may include the provision of information, financial, and other types of support through the establishment of an organization that can ensure that farms are not subjected to severe restrictions on their activities.
The state benefit in this case is to increase the competitiveness of the national economy in the context of digitalization and international pressure. Furthermore, the described centers can contribute to the fulfillment of a whole list of objectives and goals determined by the national interests of the BRICS member states, such as improvement of product quality and safety, preservation of natural resources, improvement of agricultural competitiveness, support for small farms, improve- ment of agricultural governance, digitalization, improvement of services in the agricultural sector, support for innovation, etc.
GENERAL FINDINGS AND EXPECTED OUTCOME
It is important to note that the issue of technological innovation in agricultural activities is urgently needed by some BRICS member countries. Such a system can contribute to significant economic development in the field of agriculture within these countries.
Moreover, the importance of transit potential between BRICS countries should also be recognized. In this respect, Central Asia, in particular the Eurasian Economic Union (EAEU), is becoming the key region. It should be noted that the digital agenda in the EAEU remains one of the key factors4. Today, we have already established developments on commodity transit between individual BRICS mem- ber countries and Central Asian states. Today, Tajikistan and Iran have already abol- ished visa conditions between the two countries5. Based on existing agreements, Tajikistan expects to carry out cargo transit through the Iranian port of Chabahar6. Considering that in the first ten months of 2024 the volume of road freight transport in Tajikistan increased by 14% YoY7, this decision could be a good opportunity for the development of the transport and logistics industry both in the country and in the region. The agreements contribute not only to the development of Tajikistan’s foreign trade with Iran but also with neighboring countries, including Afghanistan, Kyrgyzstan, and India. It directly demonstrates the positive prospects for the devel- opment of countries as transport and logistics hubs facilitating external regional trade, including such an integration association as the EAEU. Furthermore, the possibility to use this port will theoretically allow Tajikistan, as well as other
Central Asian and Eurasian countries in general, to enter the South Asian market wh ere there are about 2 billion potential consumers.
The completion of border delimitation between Tajikistan and Kyrgyzstan is an important step in facilitating foreign trade between the countries in the region. In early January 2025, a meeting between the Prime Ministers of Uzbekistan, Kyr- gyzstan, and Tajikistan was already held in the Fergana Valley, wh ere trade, logis- tics, cultural, and humanitarian co-operation as well as water and energy were the main issues of the meeting. Moreover, the Agreement on Allied Relations between Uzbekistan and Tajikistan was signed in April 20248, which also provides for increased co-operation in various fields. Tajikistan, in its turn, has also concluded an agreement with Turkmenistan, which implies the introduction of new transit privileges for freight transport. Trucks with a volume of 10 to 40 tones will be able to stay in Turkmenistan’s ports on the Caspian Sea for up to 60 days free of charge9.
Of course, the development of transit opportunities with Turkmenistan directly depends on the policy implemented on the Uzbekistan. It is important to note here that Uzbekistan has simplified freight transport on the basis of the Proto- col, which implies mutual traffic of trucks on the territories of both republics with- out permits, as it was necessary before10.
Due to the railway traffic, Russian Railways has extended the discount for the transportation of fruit and vegetable products by Tajikistan in 20251112. South Korea is launching its first railway investment project in Central Asia, offering Tajikistan assistance in construction of a 51-kilometer-long Jaloliddini Balkhi-Nizhni Pianj railway to the Afghan border13. It will also facilitate trade with South Asian coun- tries.
In the context of transport corridors, it is worth mentioning the Asian Devel- opment Bank’s Central Asia Regional Economic Cooperation (CAREC) Program14, which proposes 6 development corridors. Global dimension in the form of a multi- modal North-South route, which through the eastern direction includes also Tajik- istan in the development of transport and logistics potential15 demonstrates the growing interest in the transit role of Tajikistan.
Moreover, the increasing interest of the European Union (EU) in Central Asia as an element in the circulation of goods, namely the promotion of the Trans-Cas- pian Transport Corridor, also known as the Middle Corridor16, confirms the impor- tance of the region in terms of transport and logistics transit potential.
Thus, the example of Tajikistan and other countries of the region demonstrates that Central Asia has key knowledge in the development of transport and logistics routes and trade between BRICS countries in the context of the implementation of information and analytical exchange centers.
Mikhail Dmitriyevich Konov, research laboratory assistant at the Laboratory of Studies of Contemporary Central Asia and the Caucasus of the Institute of Ori- ental Studies of the Russian Academy of Sciences, 1st year postgraduate student of the Institute of Oriental Studies of the Russian Academy of Sciences in the field of “World Economy”.
This essay is consistent with the thematic vector “Investments in Communi- cation”, responding to the development of new logistics routes in the Global South, defining approaches to infrastructure development in the 21st century and, of course, touching on the general vector of agricultural digitalization.
PREAMBLE
Today, BRICS countries are facing enormous challenges in development of their infrastructure and economy as a whole. Due to their resources, which are much greater than, for example, those of Europe, BRICS countries still face the
need for sectoral development in order to properly implement the potential of the capital, both resource and intellectual, available to them.
The last several years have shown the importance of food security in the world. Thus, due to geopolitical tensions, the world community had to face changes in the world supply chains, pricing and distribution of resources, primarily food resources, such as grain. Therefore, it was necessary to compose this essay. Due to the access to critical resources and the availability of significant human and other types of capital, BRICS countries face the need to optimize and consolidate their approaches to the development and distribution of food resources. This need is also confirmed by the requirements in the economic development of the countries, as well as the ability to mutually supply the necessary products to each other.
HYPOTHESIS EXPLANATION
Today, in the Russian Federation, farmers have state support and opportuni- ties to develop their business1; however, they still need to sell their products, which means certification, conditioning, transportation, and marketing. Thus, it is very difficult to compete with large suppliers, so the experience of French farmers on this issue suggests the possibility of creating cooperatives and associations2, in other words, exchanges specializing in the certification, storage, and sale of prod- ucts. Such approach not only simplifies the work of farmers but also makes it pos- sible to create new jobs, fr om packers to warehouse directors. The experience of food exchanges can also be applied to Russian realities.
People have the opportunity to sell their “garden” products at fairs, shops, and markets. However, the process fr om production to sale takes a long time, including certification, processing, packaging, conditioning, transportation, and final deliv- ery to the shelves. In general, the current challenges of farming in Russia can be summarized as follows:
1) marketing challenge of farmers;
2) need for high-quality customization in processing, certification, and logistics;
3) inaccessibility of large markets to small farmers;
4) low salability of products as a necessity to improve the welfare of the pop- ulation.
In this regard, there is a necessity to develop information and analytical exchange centers that stimulate and regulate the activity of farms. Establishment of such centers poses the challenge of functioning at different levels of government and their financing. Financial refers to sources of financing and start-up capital for farmers, costs of purchase/lease and maintenance of land plot, costs of purchasing machinery and equipment, personnel costs and etc. This challenge can be resolved through the development of an organization accountable to BRICS and funded either nationally or through the BRICS platform.
However, along with the positive aspects of establishment of information and analytical exchange centers, there are also “pitfalls” that can be resolved in the fol- lowing way:
It is necessary to ensure transparency and accountability of public authorities that manage the industry by reporting on their activities, conducting independent audits, and establishing mechanisms for feedback from the public and consumers.
Governance should take into account the interests of all BRICS members.
Governance should also support competition in the market, by preventing monopoly or oligopoly and providing a competitive playing field for all participants.
Regulation and governance should be flexible and adaptive to changes in the market and industry, by encouraging innovation and the use of new technologies.
ECONOMIC AND SOCIAL IMPACT
Regarding the proposed solutions, it is important to note that the role of the states themselves should be important, but not to disrupt the ecosystem of farms’ activities, thus permitting new farms to safely enter the market and conduct their activities through information and analytical exchange centers. State assistance may include the provision of information, financial, and other types of support through the establishment of an organization that can ensure that farms are not subjected to severe restrictions on their activities.
The state benefit in this case is to increase the competitiveness of the national economy in the context of digitalization and international pressure. Furthermore, the described centers can contribute to the fulfillment of a whole list of objectives and goals determined by the national interests of the BRICS member states, such as improvement of product quality and safety, preservation of natural resources, improvement of agricultural competitiveness, support for small farms, improve- ment of agricultural governance, digitalization, improvement of services in the agricultural sector, support for innovation, etc.
GENERAL FINDINGS AND EXPECTED OUTCOME
It is important to note that the issue of technological innovation in agricultural activities is urgently needed by some BRICS member countries. Such a system can contribute to significant economic development in the field of agriculture within these countries.
Moreover, the importance of transit potential between BRICS countries should also be recognized. In this respect, Central Asia, in particular the Eurasian Economic Union (EAEU), is becoming the key region. It should be noted that the digital agenda in the EAEU remains one of the key factors4. Today, we have already established developments on commodity transit between individual BRICS mem- ber countries and Central Asian states. Today, Tajikistan and Iran have already abol- ished visa conditions between the two countries5. Based on existing agreements, Tajikistan expects to carry out cargo transit through the Iranian port of Chabahar6. Considering that in the first ten months of 2024 the volume of road freight transport in Tajikistan increased by 14% YoY7, this decision could be a good opportunity for the development of the transport and logistics industry both in the country and in the region. The agreements contribute not only to the development of Tajikistan’s foreign trade with Iran but also with neighboring countries, including Afghanistan, Kyrgyzstan, and India. It directly demonstrates the positive prospects for the devel- opment of countries as transport and logistics hubs facilitating external regional trade, including such an integration association as the EAEU. Furthermore, the possibility to use this port will theoretically allow Tajikistan, as well as other
Central Asian and Eurasian countries in general, to enter the South Asian market wh ere there are about 2 billion potential consumers.
The completion of border delimitation between Tajikistan and Kyrgyzstan is an important step in facilitating foreign trade between the countries in the region. In early January 2025, a meeting between the Prime Ministers of Uzbekistan, Kyr- gyzstan, and Tajikistan was already held in the Fergana Valley, wh ere trade, logis- tics, cultural, and humanitarian co-operation as well as water and energy were the main issues of the meeting. Moreover, the Agreement on Allied Relations between Uzbekistan and Tajikistan was signed in April 20248, which also provides for increased co-operation in various fields. Tajikistan, in its turn, has also concluded an agreement with Turkmenistan, which implies the introduction of new transit privileges for freight transport. Trucks with a volume of 10 to 40 tones will be able to stay in Turkmenistan’s ports on the Caspian Sea for up to 60 days free of charge9.
Of course, the development of transit opportunities with Turkmenistan directly depends on the policy implemented on the Uzbekistan. It is important to note here that Uzbekistan has simplified freight transport on the basis of the Proto- col, which implies mutual traffic of trucks on the territories of both republics with- out permits, as it was necessary before10.
Due to the railway traffic, Russian Railways has extended the discount for the transportation of fruit and vegetable products by Tajikistan in 20251112. South Korea is launching its first railway investment project in Central Asia, offering Tajikistan assistance in construction of a 51-kilometer-long Jaloliddini Balkhi-Nizhni Pianj railway to the Afghan border13. It will also facilitate trade with South Asian coun- tries.
In the context of transport corridors, it is worth mentioning the Asian Devel- opment Bank’s Central Asia Regional Economic Cooperation (CAREC) Program14, which proposes 6 development corridors. Global dimension in the form of a multi- modal North-South route, which through the eastern direction includes also Tajik- istan in the development of transport and logistics potential15 demonstrates the growing interest in the transit role of Tajikistan.
Moreover, the increasing interest of the European Union (EU) in Central Asia as an element in the circulation of goods, namely the promotion of the Trans-Cas- pian Transport Corridor, also known as the Middle Corridor16, confirms the impor- tance of the region in terms of transport and logistics transit potential.
Thus, the example of Tajikistan and other countries of the region demonstrates that Central Asia has key knowledge in the development of transport and logistics routes and trade between BRICS countries in the context of the implementation of information and analytical exchange centers.
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