Designing the Turkic States Sustainable Finance Index (TS-SFI): A Measurement Framework

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Abstract
This article develops the Turkic States Sustainable Finance Index (TSSFI), a region-specific composite framework for benchmarking sustainable finance readiness across the five members of the Organization of Turkic States (OTS): Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye, and Uzbekistan. Global indices seldom capture, within a single architecture, the joint constraints that shape these economies: post-Soviet institutional transition, hydrocarbon dependence, energy-transition pressure, Islamic finance potential, and external financial vulnerability. TS-SFI is organised into five dimensions: green finance capacity, institutional and regulatory framework, Islamic finance potential, energy-transition readiness, and external finance dependency and macro-financial buffers. To avoid rewarding economic size, all market-size indicators enter as ratios to GDP, and governance is measured with four Worldwide Governance Indicators. Indicators are min–max normalised and aggregated with equal weights, and the index is read as a five-dimensional readiness profile rather than a league table. Türkiye leads the composite in all main specifications, anchored in participation-finance depth and transition readiness, while Uzbekistan—whose labelled issuance relative to GDP is the deepest in the sample—is the robust runner-up; the remaining members cluster closely and their ordering is sensitive to measurement choices. TS-SFI is proposed as a diagnostic and coordination tool supporting the Turkic Green Vision.

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