This paper discusses the need for a set of policies encouraging economic co-operation within the former Soviet Union states of Central Asia. Central Asia is the focus of this report; however, the argument emphasizing the need for international assistance to support regional cooperation is valid for the countries of the Caucuses and in some of Eastern Europe, especially the Balkan states. Regional co-operation is seen as a means to mitigate the difficulties of managing a transition from Soviet-command economies to market-based institutions given especially the extreme distances to industrialized marketplaces. Co-operation will not be a natural consequence of existing tendencies that encourage a lack of trust and inward looking national policies. Policy commitments are needed to develop transport, trade and transit within and to the region from foreign markets. The international community must encourage economic cooperation that reduces cross-border political insecurity and provides scope for sustainable economic growth. These efforts may require subsuming bilateral relations under coordinated regional programmes. Copyright © 2001 John Wiley & Sons, Ltd.