This part of the world is a diverse, complex and dynamic region, combining ancient culture and traditions with forward-looking aspirations. Although all eight countries were part of the USSR just quarter of a century ago, now they are living in diverse political models and different economic realities. There are 85 million people of growing population, of over a hundred ethnicities, tens of languages, diverse in religious confessions, literate, educated and entrepreneurial. This is a tremendous potential that now gets its chance to be realized. In this report, we provide an insight into the dynamic geopolitical context of the region influenced by the neighbor and international powers. We also analyze internal dynamics of the region with the special emphasis on the growing security concerns, promising political transition and demographic trends. Finally, we address one of the major impediments to the economic growth and social development of the region - an infrastructure gap. We overview current state of infrastructure development, as well as discuss key infrastructure development initiatives in the region.