Uzbek Model of Re­forms Pro­vides a Rapid De­vel­op­ment of the Coun­try

The Diplomatic Insight - - Independence Day of Uzbekistan -

The dy­namic of eco­nomic de­vel­op­ment of Uzbek­istan dur­ing the years of in­de­pen­dence demon­strates the ef­fi­ciency, ac­cu­racy and con­sis­tency of the “Uzbek model” of tran­si­tion from cen­trally planned to free and so­cially ori­ented mar­ket econ­omy, the­mod­el­which was­worked out by the coun­try's lead­er­ship.The ma­jor dif­fer­ence of adopted model of eco­nomic de­vel­op­ment in Uzbek­istan was a deep fore­thought of ex­ter­nal bor­row­ing pol­icy, re­jec­tion of spec­u­la­tive short-term loans that can set the coun­try to de­pen­dence on the ex­ter­nal fac­tors. Thanks to the con­sis­tent im­ple­men­ta­tion of this model, our coun­try has achieved high eco­nomic growth rates. For ex­am­ple, in 1997-2003 the econ­omy of Uzbek­istan de­vel­oped at a mod­er­ate rate of 3.8-5.2% per year. Since 2004, as a re­sult of deep­en­ing of the eco­nomic re­forms, aimed at cre­at­ing a favourable busi­ness en­vi­ron­ment, mod­ern­iza­tion, tech­ni­cal and tech­no­log­i­cal re­newal of pro­duc­tion, a high and sus­tain­able rate of eco­nomic growth of 7-9% per year was achieved. The GDP at pur­chas­ing power par­ity in 2011 in­creased in com­pare­with 1990 by 3.6 times, from 27.1 to 101.4 bil­lionUS dol­lars. An im­por­tant fac­tor in growth of the lead­ing sec­tors of the econ­omy was the cre­ation of a favourable busi­ness en­vi­ron­ment, in­creas­ing in­vest­ments, which have pro­vided im­por­tant qual­i­ta­tive changes in the struc­ture of the econ­omy. Thus, dur­ing 2000-2011, the share of agri­cul­ture in GDP de­clined from 30.1 to 17.6%, while the share of in­dus­try in­creased from 14.2 to 24% and the share of ser­vices – from37 to 50.5%. While in 1990, ex­ports ex­ceeded im­ports by 79.8 mil­lion US dol­lars, then in 2011, the trade sur­plus amounted to 4246.6 mil­lionUS dol­lars. Adopted in 2000-2011 mea­sures of in­dus­tri­al­iza­tion, mod­ern­iza­tion, tech­ni­cal and tech­no­log­i­cal re-equip­ment branches of the econ­omy, the cre­ation of new in­dus­tries like au­to­mo­tive, oil and gas chem­i­cal, rail­way engi­neer­ing en­sured the growth of the to­tal vol­ume of in­dus­trial pro­duc­tion and the share of man­u­fac­tur­ing in­GDPto24% by 2011. An­other char­ac­ter­is­tic fea­ture of the qual­i­ta­tive changes tak­ing place in the econ­omy - the rapid de­vel­op­ment of the ser­vice sec­tor, which be­came the most promis­ing and fast grow­ing sec­tor of the econ­omy. An im­por­tant stage of ac­cel­er­ated growth was the adoption of the Pro­gramme of de­vel­op­ment of the ser­vice sec­tor in the years 2006-2010, as well as pro­grams to build in­fra­struc­ture in the area of ser­vices.Dur­ing the years of in­de­pen­dence, Uzbek­istan has man­aged to de­velop and im­ple­ment a pro­duc­tive in­vest­ment pol­icy. Favourable busi­ness en­vi­ron­ment, broad sys­tem of le­gal guar­an­tees and priv­i­leges for for­eign in­vestors, in­te­gral sys­tem of mea­sures to stim­u­late the ac­tiv­ity of the en­ter­prises with for­eign part­ners con­trib­uted to a sig­nif­i­cant in­crease in for­eign di­rect in­vest­ments in the coun­try. As a re­sult, in 2010 the share of for­eign in­vest­ment in the to­tal cap­i­tal in­vest­ment amounted to 25.1%, in­clud­ing for­eign di­rect in­vest­ment - 21.2%. The main part­ners in the im­ple­men­ta­tion of in­vest­ment projects on pro­duc­tion of high-tech prod­ucts with high added value are large and world­wide well known com­pa­nies from the United States («GM», «Tex­aco»), Ger­many («MAN», «Daim­ler-Benz», «KLAAS»), South Africa («Sa­sol»), Spain («Ma­hat»), Ja­pan («ISUZU», « I TOCHU » , « M I T S U B I S H I » ) , M a l a y s i a («PETRONAS»), Korea («Korean air», «CNOC», «LG»), China («CNPC»), Rus­sia («Lukoil», «Gazprom»), as well as such ma­jor in­ter­na­tional fi­nan­cial in­sti­tu­tions like the World Bank, Asian De­vel­op­ment Bank, Is­lamic De­vel­op­ment Bank, in­vest­ment banks of South Korea, Ja­pan and other coun­tries. Over the past pe­riod for­eign trade turnover in­creased by 31.2 times, in­clud­ing ex­port - 34 times, im­port - 27.7 times. Here­with a pos­i­tive bal­ance of trade has in­creased by more than 50 times, en­sur­ing the rapid growth of gold and for­eign ex­change re­serves and the sta­bil­ity of the na­tional cur­rency. Di­ver­si­fi­ca­tion of the com­mod­ity struc­ture of ex­ports has elim­i­nated de­pen­dence of the coun­try on ex­port of crop and cot­ton, share of which fell from 59.7% in 1990 to 9% in 2011. In the struc­ture of ex­ports, the share of non-pri­mary goods in to­tal ex­ports are now more than 70% ver­sus less than30% in 1990. Cho­sen “Uzbek model” of eco­nomic de­vel­op­ment, in com­bi­na­tion with mea­sures to fur­ther deep­en­ing of the demo­cratic mar­ket re­forms and lib­er­al­iza­tion of the econ­omy, well-thought and con­sis­tently im­ple­mented pri­or­i­ties of po­lit­i­cal, eco­nomic and so­cial changes have cre­ated a solid and re­li­able foun­da­tion on the ba­sis ofwhich are build­ing a sus­tain­able and dy­namic de­vel­op­ment of the na­tional econ­omy, pro­vides con­sis­tent im­prove­ment of liv­ing stan­dards.

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