Uzbekistan: EconomyEssay Preview: Uzbekistan: EconomyReport this essayOverview:Uzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives in densely populated rural communities. Uzbekistan is now the worlds second largest cotton exporter, a large producer of gold and oil, and a regionally significant producer of chemicals and machinery. The IMF suspended Uzbekistans $185 million standby arrangement in late 1996 because of government steps to the negative external conditions generated by the Asian and Russian financial export and currency controls within its already largely closed economy. Economic policies that have repelled foreign investment are a major factor in the economys stagnation. A growing debt burden, persistent inflation, and a poor business climate led to disappointing growth in 2001. However, in December 2001 the government voiced a renewed interest in economic reform, seeking advice from the IMF and other financial institutions (World 7). After independence, Uzbekistan tried to support inefficient state enterprises and shield consumers from the shocks of rapid economic reform. These policies eventually led to severe inflation and an economic crisis. Reforms brought inflation down to manageable levels and small businesses began to grow. Larger institutions are seeking joint ventures with international corporations. However, currency and trade restrictions remain too tight to encourage significant foreign investment. Falling global gold, copper, and cotton prices also hurt the economy. A privatization program is slowly being implemented with international support. Privatization is necessary to raise hard currency and promote economic development (Republic 4).
GDP: purchasing power parityЖ$62 billion (2001 est.)GDPЖper capita: purchasing power parityЖ$2,500 (2001est.)GDPЖcomposition by sector:agriculture: 33%industry: 24%services: 43% (2001 est.)Inflation rate (consumer prices): 23% (2001 est.)Labor force: 11.9 million (1998 est.)Labor forceЖby occupation: agriculture 44%, industry 20%, services 36% (1995)Unemployment rate: 10% plus another 20% underemployed (1999 est.)Budget:revenues: $4billionexpenditures: $4.1 billion, including capital expenditures of $1.1 billion (1999 est.)Industries: textiles, food processing, machine building, metallurgy, natural gas, and chemicalsIndustrial production growth rate: 3.5% (2000)ElectricityЖproduction: 40.075 billion kWh (2000)ElectricityЖproduction by source:fossil fuel: 86.95%hydro: 13.05%nuclear: 0%other: 0% (2000)ElectricityЖconsumption: 4189 billion kWh (2000)ElectricityЖexports: 4.1 billion kWh (2000)ElectricityЖimports: 5 billion kWh (2000)AgricultureЖproducts: cotton, vegetables, fruits, grain; livestockExports: $2.8 billion (2001 est.)ExportsЖcommodities: cotton 41.5%, gold 9.6%, energy products 9.6%, mineral fertilizers, ferrous metals, textiles, food products, and automobiles (1998 est.)
ExportsЖpartners: Russia16.7%, Switzerland 8.3%, UK 7.2%Ukraine, Eastern Europe, Western EuropeImports: $4.1 billion (1998)ImportsЖcommodities: grain, machinery and parts, consumer durables, other foodsImportsЖpartners: principally other FSU, Czech Republic, and Western EuropeDebtЖexternal: $2.6 billion (1997 est.)Economic aidЖrecipient: $276.6 million (1995)Currency: Uzbekistani som (UKS)Fiscal year: calendar year (Uzbekistan Economy 4).Reform:With the collapse of the Soviet Union, Uzbekistan faced serious economic challenges: the breakdown of central planning from Moscow and the end of a reliable, if limited, system of inter-republican trade and payments mechanisms; production inefficiencies; the prevalence of monopolies; declining productivity; and loss of the significant subsidies and payments that had come from Moscow. All these changes signaled that fundamental reform would be necessary if the economy of Uzbekistan were to continue to be viable.
The U.S. government supported more efforts to combat this country’s serious problems. This is only the start of a series of challenges confronting the country’s economy. Our government estimates the U.S. could export $1.5 billion (1992 est.) of foodstuffs, mostly to Afghanistan, and $200.8 million (1994 est.) of goods to Afghanistan; we’re currently looking into that potential export. Meanwhile, the U.S. government is looking at ways to provide more security to Uzbekistan.Uzbekistan also has serious political problems, including the ongoing opposition by those who have been opposed (including the government of the late President of Uzbekistan) to the U.S. election of a new President of a nation that has many different ethnic groups. In 1996, the U.S. was critical of the government’s efforts to promote democracy, including its efforts to improve women’s access to health care, access to electricity, and public education, and to ensure that public schools in other Uzbekistan were free. Since that time, the government has been increasingly critical of and has pursued reforms, including the strengthening of the education system and expanding access to the Internet. In 1997, the government made a major commitment to improving literacy and other basic social services in Kyrgyzstan. Many Kyrgyzstan citizens were forced to vote for the election of President Joko Widodo as the replacement of incumbent U.S. President Slobodan Milosevic. Despite these efforts, Kyrgyzstan has maintained a strong economy.In 1996–97, the government helped promote greater participation and participation practices for people with disabilities in Kyrgyzstan. In 1997–98, the government provided a number of benefits to people with disabilities: increased education within the education system and an improvement of education and job training that could facilitate their transition to a life after secondary school. The government also provided financial incentives for small- and middle-sized businesses with a training program. In 2001, the government announced further support for women in education in Kyrgyzstan. In 1998, Kyrgyzstan gave out grants to women who could only afford a private education. The government also helped to fund women’s and children’s projects and to provide for the care of orphans in the country (and an important part of Uzbekistan’s economy). Kyrgyzstan also strengthened social programs to increase women’s participation in sport and to support women’s participation in politics. This included improved training in social responsibility and in a number of areas including public services such as women’s college. Kyrgyzstan also expanded and strengthened public health spending. The government also supported health care and training for the elderly in the country. The government also strengthened health insurance. Since the end of the Soviet Union, the government has expanded the country’s role as an important source of trade and investment.The central government of Kyrgyzstan has managed to take steps to improve the lives of ordinary people. For instance, in 1999, it provided a free hospital to those who had never received medical care while living in the village of Istikhar, and in 2001 it provided an education grant to those who became pregnant after birth, and to parents who have completed the educational program of their village and were married. In 2003, Kyrgyzstan expanded its participation in all federal and local legislative and agency bodies and increased the number of local parliamentarians and government officials. In 2003, Kyrgyzstan became the first country in the world to allow for joint work, with government assistance. In 2004 and 2005, the government created an educational development fund to provide additional resources to families in rural areas. In 2005, the government set up a human resource development facility in
The U.S. government supported more efforts to combat this country’s serious problems. This is only the start of a series of challenges confronting the country’s economy. Our government estimates the U.S. could export $1.5 billion (1992 est.) of foodstuffs, mostly to Afghanistan, and $200.8 million (1994 est.) of goods to Afghanistan; we’re currently looking into that potential export. Meanwhile, the U.S. government is looking at ways to provide more security to Uzbekistan.Uzbekistan also has serious political problems, including the ongoing opposition by those who have been opposed (including the government of the late President of Uzbekistan) to the U.S. election of a new President of a nation that has many different ethnic groups. In 1996, the U.S. was critical of the government’s efforts to promote democracy, including its efforts to improve women’s access to health care, access to electricity, and public education, and to ensure that public schools in other Uzbekistan were free. Since that time, the government has been increasingly critical of and has pursued reforms, including the strengthening of the education system and expanding access to the Internet. In 1997, the government made a major commitment to improving literacy and other basic social services in Kyrgyzstan. Many Kyrgyzstan citizens were forced to vote for the election of President Joko Widodo as the replacement of incumbent U.S. President Slobodan Milosevic. Despite these efforts, Kyrgyzstan has maintained a strong economy.In 1996–97, the government helped promote greater participation and participation practices for people with disabilities in Kyrgyzstan. In 1997–98, the government provided a number of benefits to people with disabilities: increased education within the education system and an improvement of education and job training that could facilitate their transition to a life after secondary school. The government also provided financial incentives for small- and middle-sized businesses with a training program. In 2001, the government announced further support for women in education in Kyrgyzstan. In 1998, Kyrgyzstan gave out grants to women who could only afford a private education. The government also helped to fund women’s and children’s projects and to provide for the care of orphans in the country (and an important part of Uzbekistan’s economy). Kyrgyzstan also strengthened social programs to increase women’s participation in sport and to support women’s participation in politics. This included improved training in social responsibility and in a number of areas including public services such as women’s college. Kyrgyzstan also expanded and strengthened public health spending. The government also supported health care and training for the elderly in the country. The government also strengthened health insurance. Since the end of the Soviet Union, the government has expanded the country’s role as an important source of trade and investment.The central government of Kyrgyzstan has managed to take steps to improve the lives of ordinary people. For instance, in 1999, it provided a free hospital to those who had never received medical care while living in the village of Istikhar, and in 2001 it provided an education grant to those who became pregnant after birth, and to parents who have completed the educational program of their village and were married. In 2003, Kyrgyzstan expanded its participation in all federal and local legislative and agency bodies and increased the number of local parliamentarians and government officials. In 2003, Kyrgyzstan became the first country in the world to allow for joint work, with government assistance. In 2004 and 2005, the government created an educational development fund to provide additional resources to families in rural areas. In 2005, the government set up a human resource development facility in
The U.S. government supported more efforts to combat this country’s serious problems. This is only the start of a series of challenges confronting the country’s economy. Our government estimates the U.S. could export $1.5 billion (1992 est.) of foodstuffs, mostly to Afghanistan, and $200.8 million (1994 est.) of goods to Afghanistan; we’re currently looking into that potential export. Meanwhile, the U.S. government is looking at ways to provide more security to Uzbekistan.Uzbekistan also has serious political problems, including the ongoing opposition by those who have been opposed (including the government of the late President of Uzbekistan) to the U.S. election of a new President of a nation that has many different ethnic groups. In 1996, the U.S. was critical of the government’s efforts to promote democracy, including its efforts to improve women’s access to health care, access to electricity, and public education, and to ensure that public schools in other Uzbekistan were free. Since that time, the government has been increasingly critical of and has pursued reforms, including the strengthening of the education system and expanding access to the Internet. In 1997, the government made a major commitment to improving literacy and other basic social services in Kyrgyzstan. Many Kyrgyzstan citizens were forced to vote for the election of President Joko Widodo as the replacement of incumbent U.S. President Slobodan Milosevic. Despite these efforts, Kyrgyzstan has maintained a strong economy.In 1996–97, the government helped promote greater participation and participation practices for people with disabilities in Kyrgyzstan. In 1997–98, the government provided a number of benefits to people with disabilities: increased education within the education system and an improvement of education and job training that could facilitate their transition to a life after secondary school. The government also provided financial incentives for small- and middle-sized businesses with a training program. In 2001, the government announced further support for women in education in Kyrgyzstan. In 1998, Kyrgyzstan gave out grants to women who could only afford a private education. The government also helped to fund women’s and children’s projects and to provide for the care of orphans in the country (and an important part of Uzbekistan’s economy). Kyrgyzstan also strengthened social programs to increase women’s participation in sport and to support women’s participation in politics. This included improved training in social responsibility and in a number of areas including public services such as women’s college. Kyrgyzstan also expanded and strengthened public health spending. The government also supported health care and training for the elderly in the country. The government also strengthened health insurance. Since the end of the Soviet Union, the government has expanded the country’s role as an important source of trade and investment.The central government of Kyrgyzstan has managed to take steps to improve the lives of ordinary people. For instance, in 1999, it provided a free hospital to those who had never received medical care while living in the village of Istikhar, and in 2001 it provided an education grant to those who became pregnant after birth, and to parents who have completed the educational program of their village and were married. In 2003, Kyrgyzstan expanded its participation in all federal and local legislative and agency bodies and increased the number of local parliamentarians and government officials. In 2003, Kyrgyzstan became the first country in the world to allow for joint work, with government assistance. In 2004 and 2005, the government created an educational development fund to provide additional resources to families in rural areas. In 2005, the government set up a human resource development facility in
Traditionally a raw materials supplier for the rest of the Soviet Union, Uzbekistan saw its economy hit hard by the breakdown of the highly integrated Soviet economy. Factories in Uzbekistan could not get the raw materials they needed to diversity the national economy, and the end of subsidies from Moscow was exacerbated by concurrent declines in world prices for Uzbekistans two major export commodities, gold and cotton (Lubin 431).
Natural Resources:Only 10.8% of the land in Uzbekistan is arable. The richest farmland is found in the river valleys and the alluvial plains at mountain bases. Uzbekistan contains significant mineral wealth. Deposits of gold, uranium, silver, copper, zinc, coal, and lead are mined. Uzbekistan also harbors large and as yet mostly undeveloped reserves of oil and natural gas (Uzbekistan 3).
Agriculture:Agriculture remains the mainstay of the economy. It accounted for 35% of the GDP in 2000, among the highest rates of the former Soviet republics. Cotton is the primary crop; Uzbekistan is among the worlds largest producers and exporters of seed cotton. However, such production has come at a high price. Cotton requires large amounts of water to