SOCIAL AND ECONOMIC DEVELOPMENT OF UZBEKISTAN
Uzbekistan as a country with great potential, unique natural resources and promising development prospects. Nearly 2,800 mineral deposits were identified through Uzbek territory. The total potential of raw materials and Uzbekistan minerals is estimated at $ 3.5 trillion. In most industries, metallic minerals or agricultural products Uzbekistan is among the top global players. It is notably the 11th World holder of copper reserves, the 9th largest gold producer, the 8th of uranium and the 5th of cotton fiber. Uzbekistan is also among the top ten countries holders of gas, coal and uranium.
Uzbekistan is particularly positioned as a leader in the production of rare metals and raw materials for the construction industry. Its vast energy resources, however, can not conceal his infinite spiritual wealth and that of his ancient craft traditions, its trade and agriculture. Uzbekistan is a great country for its tourist qualities.
The Uzbek economy has successfully completed a transition period. “The Uzbek model” of transition to a market economy is based on five fundamental principles, developed by the country’s President Islam Karimov:
– The ideologization, pragmatism of economic policy,
– The priority of economics over politics,
– The tax to the State of the role of the main reformer, ensuring the rule of law,
– The implementation of a strong social policy,
– Achieving the reforms step by step and gradually.
Through following these principles, Uzbekistan was able to achieve impressive results in the implementation of socio-economic reforms in the following key:
– The last six years, GDP growth is between 7 and 9%;
– The rate of inflation – 7-8% per year;
– The stability of the national currency was strengthened by increased gold reserves, which the last five years has increased 6 times;
– From 2002 the deficit of the state budget does not exceed 1% of the volume of GDP, the 2005 state budget was fulfilled with the proficit;
– The country’s external debt is 14.8% of GDP and is characterized by the main criteria of the World Bank as “less than moderate”.
Today Uzbekistan produces more than 7 min tons of wheat (in 1991 to 0.5 mln tonnes) and about 7 mln tons of oil (in 1991 to 2.8 mln tonnes).
In the republic were created new high-tech industries such as: Automotive, sectors of gas and chemical, pharmaceutical, textile, food, production of building materials etc.
During the years 2009-2014 is planned realize 500 investment projects in the real sector of the economy for a sum more than 50 bln dollars. The realization of these projects through the development in the production of new kinds of products and innovative technology application and energy efficient helps ensure additional annual production of goods and services.
In 2006 the reconstruction of Foundation and the Republic of Uzbekistan development with the statutory capital of $ 5 bln was created. It is intended for the organization of the project financing of strategic investments in key priority sectors of industry and infrastructure. Currently the fund’s capital amounted to 10 bln dollars.
In Uzbekistan the process of privatization is carried out consecutively step by step forwarding companies to real property, which makes the investment commitments ensuring the modernization and development of privatized companies.
The share of private sector in GDP structure is 79.4% in industrial production – 81.3% in the agricultural production and services – 100%.
More than 100,000 private farms and about 4.7 mln households of Peasants were created. 100% cotton and cereals purchased for state needs, and the entire volume of fruit and vegetables, livestock and other agricultural products are produced by private farms and households Peasants.
The progress achieved in the implementation of economic reforms enabled Uzbekistan to start the first among the CIS countries the implementation of major social programs. 62% of the national budget for social needs, particularly in medicine and education. The education budget represents more than 12% of Uzbek GDP, while in the international index of only 3 to 5%.
During the years of independence was drawn to the country’s economy more than $ 100 billion of investment, of which $ 27 billion is foreign investment;
To attract foreign investment, creating favorable conditions for them, as well as effective use of the great economic and investment potential of Uzbekistan, in the territory of the region Navoi was created an industrial-economic free zone (EPZ). EPZ, the first real free zone created in the CIS (of Independent States) will contribute to economic development, not only in Uzbekistan but the whole Central Asian region as a whole.
The most important factor in the success of the free zone is its proximity to the transcontinental and intermodal hub in Navoi airport, managed since 1 January 2009 by the world’s leading airline Korean Air. Located at the crossroads of rail, air and roads, the airport of Navoi will connect the countries of Southeast Asia with Central Asia and South Asia, the Middle East and Europe. The first scheduled flights are already in place, this airport is already bound by the airways with major Asian and European cities such as Singapore, Delhi, Bangkok, Frankfurt, Milan, Brussels and Moscow.
Thanks to the success of the experience of the creation of the Free Economic Zone in Navoi, in 2010, created the special economic zone “Angren” and 2013 Special Industrial Zone “Djizzak”.