Independence – the basis of the
economic development achievements of Uzbekistan
During the years of independence, the economy of the
Republic of Uzbekistan has been evolving on basis of the national
model developed by President Islam Karimov, considering such factors
as the social and economic potential of the country, history of the
Uzbek people, national values, as well as the best international
Implementation of five basic principles of transition
to a socially-oriented free market economy during reforms has
enabled the country to achieve desired results, provide sustainable
economic growth and improve national welfare in a short historical
As a result of reforms, the structure of the economy
was radically changed, a reliable legal framework for dynamic
economic development and favourable investment climate were created.
This is supported by such macroeconomic indicators as
increase of the gross national product by 5.5 times during the years
of independence, while GDP per capita (PPP) has risen by 4 times.
Since 2005, state budget execution reached annual surplus
contributing to the strengthening of macroeconomic stability.
Favourable investment climate and stimulating
measures, as well as guaranteed protection of the rights of
investors, contributed to the increase in the volume of accumulated
investments to $190 billion, including $65 billion of foreign
In turn, steady investment flows into industrial
sector in Uzbekistan allow creating entirely new industries, such as
automotive, petrogaschemicals, oil and gas equipment, railway
engineering, production of modern building materials, home
appliances, pharmaceuticals, food and textile, etc. These brunches
produce more than 60% of the total industrial output with high added
value, which is competitive on the world market.
In particular, the automotive industry of the country
today consists of 200 companies employing more than 25,000 people. A
number of joint ventures were created with world famous automakers
like General Motors, MAN, Isuzu, Itochu and successfully operate in
As part of the program to ensure energy independence
and development of oil and gas processing industries, Bukhara Oil
Refinery, Shurtan Gas Chemical Complex, Kungrad Soda Plant,
Dehkanabad Potash Fertilizer Plant and a number of other high-tech
production facilities were built in collaboration with foreign
partners. Currently, the Ustyurt Gas Chemical Complex at Surgil
field is under active construction.
In recent years Uzbekistan is actively implementing
policy measures on modernization and technological renewal of
industries, enhancing their production efficiency. As a result,
labour productivity in the country has increased by 2.2 times during
the period from 2000 to 2014.
Uzbekistan Fund for Reconstruction and Development (UFRD),
created in 2006, plays an important role in the implementation of
modernization and effective investment policy in the Republic. Its
assets reached $25 billion this year.
The active participation of the UFRD in
implementation of new infrastructure projects has been served to
attract more than $10 billion of foreign investment and loans in the
form of co-financing from the World Bank, Asian Development Bank,
Islamic Development Bank, financial institutions of Japan, South
Korea, China and other foreign banks and investors.
On-going measures on to strengthening the country's
export capacity allowed to increase the volume of Uzbek exports by
more than 30 times. Despite different global downturns and
recessions, Uzbekistan has consistently provided trade surplus over
the past 17 years.
The structure of agricultural production has
radically changed during the years of independence. A shift from
administrative planning and distribution system to free market
relations became the most important and fundamental factor for
reforms in this sector.
Implementation of food security measures provided
significant increase in the volume and range of domestic foodstuffs.
As a result, annual grain production has increased from less than 1
million to more than 8 million tons over the years of independence.
Now, Uzbekistan is a wheat exporting country.
Extensive measures on comprehensive support and
development of farmers’ movement, strengthening the
material-technical base of farms, efficiency management of the land,
water and other natural resources resulted in improvement of the
melioration, creation of the high-yielding areas of intensive
gardening and drip irrigation systems. As a result, today the
producing about 17.4 million tons of fruits and
vegetables, in comparison with about 4 million tons in 1991.
Thanks to structural changes in the agricultural
sector, current share of cotton in the total volume of gross
agricultural output does not exceed 9%, while the share of grains is
about 9%, fruits, vegetables and grapes - 30%, potatoes - 11%, and
livestock products exceed 40%.
During the years of
independence, the large-scale projects on modernization and
development of the road transport infrastructure were implemented.
As part of public roads development program, in the last 5 years
almost 2.5 thousand km of roads were built and reconstructed,
including 1.5 thousands km as part of the Uzbek National Highway.
Unique road through
the Kamchik pass, with the construction of two tunnels and
connecting Fergana Valley with the central part of the country, was
put into operation and meets the highest international standards.
New railways were
constructed, including the Navoi-Uchkuduk-Sultanuizdag-Nukus with a
length of 342 km and combined bridge over the Amu-Darya River.
Another one is Tashguzar-Boysun- Kumkurgan with a length of 223 km,
going through the mountain pass at 1,500 meters above sea level. The
electrification of railway lines, connecting Tashkent with regions
of the Republic, was carried out. High-speed passenger train
Afrosiyob was put into operation on the basis of modern and
comfortable locomotives Talgo-250. The new electrified 123 km
railroad Angren-Pap, including 19 km tunnel, is being constructed
and has a vital importance for the development of a transnational
Currently more than
20 international transport corridors are functioning in Uzbekistan,
two of which are the major international roads connecting Western
Europe with East Asia.
As part of
development and updating of the air transport in Uzbekistan, the
state of the art maintenance centre of western produced aircrafts
was created, airports renovated, navigation system on the whole
territory of Uzbekistan is improved and recognized as one of the
best air traffic control systems in the CIS. Today the fleet
consists exclusively of modern aircrafts from the world's leading
manufacturers Boeing and Airbus. Aircrafts, with the flag of
Uzbekistan on fuselage, fly to more than 40 destinations in Europe,
Asia and North America.
structural transformation and diversification of the economy is
supported by steady growth of banks' resource base, expansion of the
share of long-term funding sources and increase of commercial banks
role in these processes. If in 1990 loans exceeding three years
constituted about 24% of the total loan portfolio, now their share
Thanks to the
sustainable growth of aggregated capital of the commercial banks in
Uzbekistan and balanced management policy of assets portfolio,
current capital adequacy ratio is ensured and three times higher
than international standards of the Basel Committee on Banking
For the fifth
consecutive year, Moody's international rating agency assesses the
prospects of the banking system of Uzbekistan as “stable”. Now, all
commercial banks of the Republic are rated with a stable outlook
from leading international rating companies, as Standard & Poor's,
Moody's and Fitch Ratings.
In recent years,
small businesses and private entrepreneurship became the main
vehicle of the economic growth in Uzbekistan. Almost none-existed
before the Independence, currently the small business generate over
56% of the GDP. Today, more than 90% of all enterprises are
represented by small businesses.
implemented in the country for comprehensive support of this sector,
improvement of the business environment, development of reliable
system for protection of the rights and guarantees of private
property, reduction of the tax burden, lead to the expansion of the
SMEs share in the national economy.
During the years of
independence, as a result of steady reduction in tax rates,
broadening of tax base and liberalization of fiscal regime, the
total tax burden on the economy has been reduced from over 45% to
19.5%, while the unified tax rate for small industrial enterprises
decreased by more than 3 times - from 15.2% to 5%.
The services became
the most promising and dynamically developing sector of the economy
of Uzbekistan. If at early 1990s, the share of services in the
economy represented about 33%, currently 54% of GDP is generated by
this sector. Moreover, new types of services were created, with over
21% share out of total volume if the sector. Among them - the
digital ICT, mobile services, computer programming, consulting,
legal and auditing, real estate and brokerage, private medicine, car
insurance, new types of financial services, including leasing,
e-banking and others.
One of the promising
areas of the sector, strengthened by huge potential, is a tourism
industry, development of which is gaining rapid momentum. The rich
historical heritage of the Uzbek people attracts growing interest of
foreign tourists, thanks to the fact that Uzbekistan occupies one of
the leading positions in the world in terms of number of historical
sites - more than 4 thousand ancient monuments. Old traditions and
culture, which are densely intertwined with the history of the Great
Silk Road, are also appealing.
The modern tourist
infrastructure, created in the country in recent years, meets high
international standards and receives positive feedbacks from foreign
visitors. Uzbekistan has a network of world-class luxury hotels and
more than 490 other hotels, motels, camping sites with over 28
thousand beds. They provide services in accordance with the
international standards. There were established over 100 tourist
itineraries covering all regions of Uzbekistan and focusing on
familiarization with the unique historical, architectural ensembles
and monuments, 140 of which are listed as the UNESCO protected
achievements and milestones are widely recognized by the world
community. In particular, our country occupies the 5th place in the
Fast Growing Economies ranking of the World Economic Forum.
According to the “World Happiness Report” conducted by sociologists
at the Columbia University (USA), with the assistance of the United
Nations, Uzbekistan took 44th place out of 158 countries and the
first place among the CIS countries.
achievements, one can note with full of confidence that the
continuation of implementation of the national model of economic
renovations and development will allow reach forthcoming goals, as
well as to complete tasks of further deepening of reforms and
transformations aimed at sustained and steady economic growth,
improving the standard and quality of life of the Uzbek people.
Jahon Information Agency