CAREC Institute’s New Report Underscores Need for Inclusive Policies Amidst Green and Digital Transitions

As countries in the CAREC region navigate dual green and digital transitions, a new report by the CAREC Institute underscores the critical need for targeted policies to ensure these shifts promote decent work and reduce socio-economic inequalities. Titled “Addressing Socio-Economic Inequality: Decent Work in CAREC’s Green and Digital Transitions,” the report comprehensively analyzes the interplay between these transitions and their impact on labor markets and socioeconomic equity across Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan.

While the move towards greener economies and the rise of digital technologies offer substantial opportunities for improved productivity, sustainability, and connectivity, the report warns that these transitions could inadvertently widen existing disparities without targeted interventions. Uneven infrastructure development, limited access to quality education and digital skills training, financial constraints, and entrenched inequalities related to gender, geography, and employment status all pose significant hurdles. The research indicates that without conscious policy efforts, there is a risk of leaving behind vulnerable populations, exacerbating rural-urban divides, and failing to realize the full benefits of these shifts for all citizens. Key findings also reveal that despite economic growth, wealth concentration, rural-urban gaps, and uneven access to essential services remain significant challenges. High informality limits social protection, while youth unemployment and migration patterns create vulnerabilities. Political economy factors and vested interests hinder the shift away from fossil fuels, risking a lack of a just transition for vulnerable groups. Furthermore, while digital infrastructure expands, disparities in access, skills, and affordability persist, and the rise of platform economies might bring insecurity.

The report emphasizes that the green and digital transitions are mutually reinforcing. Digital tools can accelerate climate action, while renewable industries can create new employment opportunities. However, without intentional design, both transitions risk deepening existing inequalities. The report calls for decent work to be a cornerstone of transition strategies, ensuring that the pursuit of sustainable development leaves no worker behind. It also outlines policy directions for CAREC countries, focusing on national-level priorities and the potential for regional cooperation. It argues that CAREC nations have a generational opportunity to harness these transitions as engines of inclusive, sustainable development. Success, however, hinges on embedding equity and decent work principles at the heart of transition strategies. Addressing these challenges requires a multi-faceted approach, including prioritizing investments in education and skills training, strengthening social protection systems, promoting formalization of employment, and fostering an enabling environment for green and digital innovation that benefits all segments of society.