Transcript Slide 1

“Uzbekistan: a model of reforms and
democratization”
Presentation
“The role of state in conducting reforms in Uzbekistan:
liberalization of political and judicial systems as a main
direction of formation legal democratic state”
May 30, 2006
Geographical location and borders
UZBEKISTAN
- Territory – 447,400 sq. km (53rd place in the world)
- Length of borders – 6,221 km - Plain area – 78 %
- Mountain area – 22 %
- Double landlocked country
Main priorities outlined by the Constitution
of the Republic of Uzbekistan adopted in
December 1992
 promoting values of democracy and
secular civil society,
 protection of human rights,
 creation of a socially oriented
free market economy.
The tasks of paramount importance
 Creation of the political, legal and constitutional
foundations of a new state system;
 Consolidation of a new system of economic and social
relations;
 Reform of state bodies, both central and local;
 Change people’s mentality, strengthen the values of
democracy in their mind, statute obedience, to
achieve the reign of laws
Difficult starting conditions of Uzbekistan for
implementation of reforms:
 Industries were primarily oriented to provide raw
materials and intermediate products which were
concentrated in cities, while rural areas accounted for
more than 60% of Uzbekistan’s population;
 The share of small businesses in GDP in 1991 was
only 1%;
 Growing of the only one agricultural crop - cotton,
which accounted for 75% of arable land;
 Arable land in Uzbekistan accounts for only 10% of
the total territory of the republic (447,400 square
kilometers).
 Arable land per capita:
in Uzbekistan - 0.17 hectares;
in Kazakhstan - 1.54;
in Kyrgyzstan - 0.26;
in the Ukraine - 0.59
in Russia
- 0.67
One of the largest ecological problems in the world –
the Aral Sea drying
 The excessive use of pesticides and chemical
fertilizers leaded to pollution of surface and
underground water.
 Infantile death becomes one of the
highest in the world.
 In former USSR Uzbekistan occupied one of the last
places in terms of living standards.
 In 1990 aggregated income of about 70% of
population of the republic was lower than minimum of
subsistence.
Human Development Index in 1990
0.82
0.819
0.814
0.81
0.809
0.806
0.803 0.803
0.8
0.79
0.781
0.78
0.77
0.756 0.756
0.76
0.75
0.736
0.74
0.728
0.73
Uzbekistan
Tajikistan
Moldova
Armenia
Kazakhstan
Latvia
Hungary
Belarus
Russia
Estonia
Lithuania
0.72
Demographic Trends
(population in mln.)
49 49,3
44,4
30,7
25,3
2015
15,5 15,3
14,1
14
6,1 7,3
5 5,9
10,5 10 9,3
Ukraine
Uzbekistan
Kazakhstan
Hungary
3,4
3,3
Tajikistan
3,2 2,5
4,7 5,8
Turkmenistan
3,5
Lithuania
3,3
2001
Kyrgyzstan
1975
Double-landlocked position of Uzbekistan
China
Principles of State Development and
Economic Reforms in Uzbekistan
1.
2.
3.
4.
5.
Priority of economy over policy
Government is the major reformer during
transition period to market economy
Superiority of law
Strong social policy is a constituent element of
market economy
Stage-by-stage reformation
Key tasks of economic reforms
during the first years of Independence
 creation of multi-leveled economy through consecutive
implementation of denationalization and privatization;
 stimulation of development of small and private business,
creating a real class of owners in the republic;
 reorganization of state owned farms into individual private
farms, rationalising rent relations and providing land plots
for lifelong use with the right to inheritance;
 strengthening monetary circulation and, hence, of the
national currency, developing financial market;
 structural changes in the economy directed to deeper
processing of agricultural raw materials and mineral
resources, creating modern, technologically equipped base
both for export oriented production and for providing
internal market with domestically produced goods.
Privatisation
realized to private owners in
2000-2005 - 4,660 enterprises.
realized at Zero Redemption
Value during last 3 years - 396
enterprises on total amount of
43.2 bln. soums.
Share of State and Non-State Sectors in GDP
74,2%
76,0%
74,5%
69,2%
65,0%
58,4%
41,6%
35,0%
30,8%
25,8%
1995
1997
State sector
1999
2001
25,5%
24,0%
2003
Non-State sector
2005
Small and Private Businesses in 2005




Number of enterprises - 310,000
Sum of allocated credits – 419.9 bln. soum
Number of minibanks – 1,450
Over 65% of total labour force of economy
38.2%
33.8%
35.5%
29.1%
SHARE OF SMALL
ENTERPRISES IN GDP
1.5%
1992
1999
2001
2003
2005
Agriculture
 Total number of private farms exceeds now
190,000
(in 1997 – 19,500).
 Private farmers produce more than 66% of
cotton and 55% of grains.
 In order to develop market infrastructure for
farms 268 minibanks, 250 outlets of fertilizer
and 320 outlets of lubricants distribution, 624
motor tractor fleets, 278 outlets for storing and
distributing agricultural products were
established.
Banking and Financial sector in 2005
 Number of commercial banks - 29, incl. 9 private banks, 5 banks
with foreign investment.
 Assets of commercial banks - 5.6 trln. soum
(12.5% increase).
 Number of issued plastic cards – 2 mln.
931
(5-fold increase).
 10 leasing companies.
 23 investment companies.
Commercial banks'
capital growth
(bln. soum)
824
791
2003
2004
2005
Investments and credits in 2002-2004
($ 2406 mln.)
EU
726.6
IFI
391.1
USA
262.8
Turkey
223.3
Israel
203.5
Korea
191.7
Japan
158.3
 Cooperation with Russia in
sphere of energy (2005-2006):
$ 2.5 bln.
May 2005, China:
agreements signed on a total
amount of $ 1.5 bln.
Switzerland
91
 March 2006, Korea:
China
59
agreements signed on a total
amount of $ 1.8 bln.
Middle East
Russia
31.3
27
Industry of Uzbekistan nowadays consists
of more than 100 branches, both extracting
and processing ones
During the years of independence,
manufacture of more than 900 new
kinds of products has been
mastered
High Technology Industry
Automotive industry
 Number of enterprises – more than 100.
 Share in automotive production of Central Asia – 67%.
 The largest producer of machinery for all phases of cotton
cultivation and processing and irrigation in CIS.
Car industry
 UzDaewoo Auto – Uzbek-Korean JV:
- set up in 1996 in Andijan produced more than 500,000
cars since its creation;
- car production in 2005 – 101,010 cars (44% increase);
- the 4th largest foreign car supplier on Russian market
after Hyundai, Chevrolet and Ford.
- planned production for 2006 – 140,000 cars
 SamKocAuto – Uzbek-Turkish JV, established in 1999 to
produce midibusses and trucks.
High Technology Industry
Aircraft industry
 Technical Services Centre of Western-made aircraft of
Uzbekistan Airways Technics is the unique institution in
Central Asian region and CIS.
 30 IL-114 airplanes produced by TAPOiCh will be supplied
to Russia by 2008.
Agricultural machinery
 Tashkent tractor plant “TTZ” production in 2005 – 3,500
tractors, which are delivered for domestic, Russian, Afghan
and Turkish consumers.
 UzCaseMash JV – producer of modern agricultural
machinery, incl. tractors and cotton harvesters
Share of Cotton Fiber
in Total Export (%)
47.9
34
36
38.6
19
1992 1996 1998 2000 2005
Domestic Processing
of Cotton Fiber (thou.tn)
350
300
250
200
150
100
50
0
1997
1999
2001
2002
2005
estim.
Index A Cotlook ($/tn)
2078,9
1887,1
1731,7
1591,7
1556,4
1505,3
1433
1390
1298,5
1272,1
1299,6
1261
1150,6
1164,0
2005*
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
921,7
INDUSTRIAL PRODUCTION
7.3%
CONSUMER GOODS PRODUCTION
17.7%
AGRICULTURAL PRODUCTION
6.2%
7.7
5.2
GDP GROWTH (%)
-2.3
4.3
7
7.2
4.2 4.4
-0.9
In 2005 GDP:
 was 30.1% higher than in 2000
 was 28.2% higher than in 1991
-11.1
1992
1993
1995
1997
1999
2001
2003
2004
2005 2006*
* - forecast
GDP and Cotton Price Tendencies
Annual GDP
growth, %
Index A, $/tn
2200
7,7
2078,94
2000
5,2
1887,14
1800
1556,45
1400
4,4
-0,9
1505,30
-2,3
1390
4
0
1591,72
1432,99
-4
1298,51
-5,2
1200
7
4,2 4,2
1,7
1731,71
1600
4,3 4,3
3,8
8
1261,03
1299,61
1272,05
1150,58 -8
1164,03
1000
921,74
Index A Cotlook ($/tn)
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
-12
1994
1992
1991
800
1993
-11,1
Real GDP Growth (in % to prev. year)
Improvement of foreign trade structure
and growth of trade balance in 2005
Foreign Trade Balance
(mln. USD)
 export growth - 11.5%
 import growth - 7.2%
 the share of finished goods and
1317,5
services in export exceeded 50%
1000
 the share of machinery and
equipment in import - 44%
239,5
1998
317,3
2000
760
274
2002
2003
2004
2005
Mineral Resources Base of Uzbekistan
 Estimated volume of the total mineral resources - $11 trln,
only 17% reserves of which are discovered
 Estimated uranium reserves - 55,000 tn
 Total deposits of natural gas – 7.8 trln. cub. m
 Annual volume of natural gas exports – $ 477.15 mln.
 Gas-main pipelines length – 13,000 km
 Total revenue for natural gas transit – $ 118 mln.
Fund of Reconstruction & Development
 May 11, 2006 date of the President’s Decree
 Fund’s budget: $ 1 bln. (to be set in 2006-2009)
 Main tasks:
- accumulate financial resources for developing crucial
economic branches and structural reforms in economy;
- financing implementation of national socially important
state programmes and projects, primarily in perspective but
not sufficiently developed regions;
- financing modernization of transport and
telecommunication infrustructure
Due to privatization, strengthening of private
property, stimulation of the establishment of small
enterprises
and
micro
firms,
farmers
and
entrepreneurship the middle class is getting shape in the
country as a foundation of democratic society.
Basically private entrepreneurs initiated the
creation of new Liberal Democratic party, which was
very active during elections in December 2004 of new
(two-chamber) Parliament.
These people indeed are the main support of our
society, its social basis, because they are most interested
in maintaining and deepening of the reforms, stable and
sustainable development of the country.
Evolution of Uzbek Parliament
One Chamber Parliament was created during first
years of Independence while multiparty system was not
developed yet and there was a lack of professional
politicians.
During the first years of Independence of Uzbekistan
there was a need of mobile Parliament ensuring legal basis
for large-scale reforms in all spheres of life in the country.
Oliy Majlis (first convocation elected in 1994 and
1999) adopted 232 laws, 12 Codes, 2 National Programs,
1445 legislative amendments. Besides, 135 International
Conventions were ratified.
Parliamentary reform started in 2002
and important changes it has brought:
Firstly, a bicameral Parliament has been formed. Lower
Legislative professional Chamber of the parliament consists of
120 deputies.
Secondly, take over by upper house – Senate of some
authorities from the President (100 senators).
Thirdly, the main actors of election process became
political parties and independent groups of electorate, citizens’
self-governing bodies.
Fourthly, introduction of 30% women quota for
candidates from political parties. As a result 18% of elected
deputies are women. It is 2.5 times more than in previous
Parliament elected in 1999.
Main objectives of two chambers` Parliament
First, Legislative Chamber is carrying out its activities on
permanent professional basis should provide the overall
improvement of quality of the laws being adopted to further
reform all spheres of the country.
Second, achievement of balance of state and regional
interests, because – Senate is elected from the deputies of
local, regional, city and district elective bodies.
Third, intensification of activities of political parties in legislative
work, defending interests of electorate while initiating
legislative amendments aimed at improvement of legal
environment.
Composition of the new Parliament
489 candidates participated in elections,
including from 5 political parties – 435 candidates;
from independent voter initiative groups - 54
(4-5 candidates for every seat in Legislative chamber).
The seats in Lower Chamber of Oliy Majlis were
divided between the following parties and groups:
 Liberal Democratic Party
 People’s Democratic Party
 "Fidokorlar“ National Democratic Party
 "Milliy Tiklanish" Democratic Party
 "Adolat" Social Democratic Party
 Initiative Groups
- 34,2%
- 23,3%
- 15%
- 9,2%
- 8,3%
- 10%
(41);
(28);
(18);
(11);
(10);
(12).
The priority tasks and directions
of reforms
In his speech at the first joint meeting
of Legislative Chamber and Senate of Oliy
Majlis (Parliament) of Uzbekistan after the
election in December 2004 of two chamber
parliament the President of the Republic of
Uzbekistan Islam Karimov declared:
“Our main long-term and strategic aim remains the
same – firmly, consequently and steadily lead the country
towards chosen path of democratic development and
creation of civil society, deepening of market oriented
reforms and strengthening of democratic values in the
minds of our people”.
“From strong state to strong civil society”
The administrative reform is aimed at changing the functions
of administrative structures;
-elimination and fundamental decrease of their authoritative,
regulative and controlling functions;
-prohibition of direct interference and regulation of activities
of economic enterprises.
From 2001 to 2005 the total number of administrative
personnel reduced by 75 000 people or by 35.5% including:
in the republican bodies
in local administrative bodies
economic organization administrations
– by 21%,
– by 63.5%,
– by 30,5%.
Share of administrative staff in
7,1%
total employed population
4,9%
4,5%
4,4%
4,2%
4%
3,6%
3,4%
2,3%
Uzbekistan
Armenia
Belarus
Kyrgyzstan
Kazakhstan
Georgia
Moldova
Ukraine
Russia
Azerbaijan
1,6%
Slogan “Less State in Economy”
is becoming more and more popular in the country.
As of 1 July 2005 the financial sanctions and
suspension of operations on current bank accounts
against entrepreneurs could be applied only through
court procedures.
In first quarter of 2006 Ministry of Justice of
Uzbekistan
considered
3987
complaints
from
entrepreneurs on abuse of their rights and interests.
Accordingly, on the basis of 2880 cases (72.2%) the
representatives of governmental and administrative
bodies have been called to account.
Liberalization of the judicial and legal system
 Specialization of courts on criminal, civil and economic
matters has been carried out.
 Institutes for appellate and cassation jurisdiction have
been introduced by the Law.
 The term of investigation and detaining people in
custody has been substantially shortened.
 Fixed terms of case proceedings have been set up.
On January 1, 2008 the Law on transfer to courts
authority of issuing the warrant, taking into custody as
well as applying other measures of judicial compulsion
will enter into force.
Cardinal measures to liberalize the country’s
criminal law:
 The classification of crimes have been altered with
significant extension of corpus delicti falling under the
category of less grave crimes that do not represent a
danger to the public.
 As a result persons who committed offences of not great
danger to the public did not loose their freedom but forced
to pay off material damage caused by their crimes.
 Sentence serving conditions are essentially improved at
penitentiaries, articles extended providing for early
release and significantly mitigate terms and conditions of
keeping in prisons.
The Institute of Conciliation is introduced into legislation
as a form of administering justice.
Employing this institute made it possible to relieve from
criminal punishment over 26 thousand people.
 As a result of the liberalization, the ratio of persons
serving sentences decreased by more than 2 times.
 Today the number of inmates per 100 thousand people
in Uzbekistan is
in the US
in Russia
in Ukraine
in Kazakhstan
in Kyrgyzstan
in Estonia
158, whereas
– 715,
– 584,
– 416,
– 386,
– 390,
(International Center
- 389.
of prison studies)
Exclusion of death penalty
from the category of punishments from
January 1, 2008
The number of crimes, for which death penalty would
be passed, was curtailed :
from 33 to 13 in 1994;
from 13 to 4 in 2001;
from 4 to 2 in 2003 including terrorism and
premeditated murder under an aggravating circumstances.
Legislation bans to administer a capital punishment
with regard to women, under aged persons and persons aged
over 60.
Development and support of NGOs
 The rights and guarantees of NGOs activity are
secured by Constitution and Laws “On Public
Organizations”, “On Public Funds”, “On NonGovernmental Non-Commercial Organizations” and
others.
 More than 5.000 NGOs are registered.
 The main areas of activity – protection of Human
Rights, Healthcare, Education, Physical and Spiritual
Training, assistance to socially vulnerable groups of
population,
Protection
of
Environment,
Social
Infrastructure Development etc.
 50% of NGOs are involved in the spheres dealing with
women’s interests and rights.
Literacy level
99,53%
99,2%
98,89%
both genders
male
female
Sweden
Uzbekistan
Czech Republic
Kazakhstan
Kyrgyzstan
59,2 59,5
Moldova
Norway
57,6 58,1
Russia
Tajikistan
Lithuania
Ukraine
United Kingdom
Turkey
Netherlands
India
38,6
Belgium
Italy
Pakistan
Egypt
Female economic activity rate
(% age 15 and above)
61,2 62,5 62,6
61,1
60,3 61,0
55,5
53,0
50,3
45,6
42,2
39,9
35,4 35,8
Non-governmental, non-profit organisations (NNOs)
Two new structures were created in 2005:
 National Association of nongovernmental, nonprofit organizations of
Uzbekistan (NANNOUz) and
 Fund for support of nongovernmental, nonprofit organizations of
Uzbekistan (NNO Support Fund).
The main objectives of them are:
 thorough support of NNOs;
 participation in further liberalization processes and strengthening
democratic values;
 increasing activities in political, economic, social and cultural life;
 reinforcement of basis for legal state and protection of human rights;
 stimulation of institutes of civil society and promotion of inter-national,
inter-religion, inter-cultural tolerance.
In March 2005 during the first contest of NANNOUz within NNO
Support Fund over 80 projects of the national NNOs were considered, 19
of which with the total budget of 73 mln. soums have been approved.
Increasing the role of bodies of self-governance
(Makhalla)
Makhalla has big historical experience of development as
association uniting people by the place of residence and
carries out following activities:
 distributing state and other assistance to families in need;
 organizes accomplishment of streets, sport tournaments;
 secures prevention of crimes and protecting the rights
and interests of family, women and followers of different
religions.
The governing authorities of Makhalla are elected from the
most prominent and respected people.
The number of Makhalla in Uzbekistan reaches about 10
thousand.
Makhalla as a self-governing body should become a basis
of civil society thus providing path to strong democratic
state.
Freedom of religion and belief

number of representatives of religious confessions - 16;

number of registered religious organizations - 2,202,
incl. 1,918 Islamic and 186 other non Islamic
organizations;

over 45,000 people have been granted assistance to
make Hajj pilgrimages to Saudi Arabia;

over 150 have been granted assistance to make
pilgrimages to Christian and Jewish holy sites in
Russia, Greece and Israel;

system of religious education includes the Tashkent
Islamic Institute, Tashkent Islamic University, 10
madrassas, as well as Orthodox and Protestant
seminaries.
The secular state attitude towards religious
beliefs and convictions is guided by the
following principles:
 recognition that religious convictions are the private practice
of citizens or their communities;
 recognition of the inadmissibility of using religion for
destructive purposes.
This final principle corresponds to Article 18 of the
International Convention on Civil and Political Rights, which
upholds the right of every human being to freedom of thought
and of faith, and adds that:
“Freedom to profess a faith or believe may be limited
pursuant to the provisions of the Law to provide social
security and safety, public order, health, and to protect the
moral and major rights and freedoms of other people”.
Uzbekistan support the idea that religion should
accomplish its role in introducing the highest spiritual,
moral and ethical values, and in forming a part of the
historical and cultural heritage among the population.
But it is not admissible to put religious slogans on
the banner in the struggle for power - a pretext for
intervention in politics, economy and legislation because it is considered as serious potential threat to
the stability and security of the state.
Liberalization of mass-media and accelerated
development of information society
 597 newspapers, 145 magazines, 43 TV studios, 12 radio
stations, 93 electronic editors and 4 information agencies
registered in the country.
 The audience of the republican TV and radio broadcast
consists of 30 million people including some close
territories of neighboring countries.
 The audience of 60 non-state TV and Radio studios
consists of 18 million people, and the area of their
broadcast covers 70% of the territory of the country.
 There are 62 foreign journalists accredited in Uzbekistan
representing 43 leading world mass-media.
Indicators of information infrastructure development
1149,9
2003
2004
2005
855
590
640
526
463
400
394,5
348
235
211,8
125
number of public
Internet access
points
number of
computers (thou.)
regular internet
users (thou.)
cellular
communication
abonents (thou.)
Average cost of Internet access
(UZS/hour)
1000
700
550
440
2002
2003
2004
2005
Electronic Government
Share of Government Institutions with websites
96,70%
87,30%
76,90%
2003
2004
2005
EDUCATION OF NEW GENERATION





The State Program for Development of School and
professional Education is adopted;
9% of GDP is allocated for implementation of the
National Program for the development of school and
professional education;
839 professional colleges are established (planned
number till 2009 is 1600);
9,800 schools with education in 7 languages: Uzbek –
8,671, Russian – 762, Kazakh – 581, Karakalpak – 376,
Tajik – 318, Turkmen – 64, Kyrgyz – 56.
the measures are taken to increase an educational level
up to the international standards.
Number of students
684,000
545,900
446,100
324,100
183,600
2000
207,200
2001
232,300
2002
254,400
2003
students of secondary specialised education institutions
students of higher education institutions
SOCIAL REFORMS AND HEALTHCARE






programs and measures on rendering concrete practical aid
and moral support to socially vulnerable layers of the
population are realized;
2006 is announced as «Year of Charity and Medical Staff»;
263,000 of medical personnel including 81,000 professional
doctors;
167 polyclinics, 11 large hospitals in Tashkent and 13
regional hospitals;
205 emergency aid services, 98 clinics on treatment of
tuberculosis, 20 clinics and the centers of treatment of
oncology diseases are established;
5 research centers and 11 high medical educational
institutions are functioning in Uzbekistan.
Life expectancy index in 2003
0,7
0,70
0,69
0,69
0,68
0,68
1995
0,67
0,67
0,66
0,65
0,64
0,64
0,64
Kazakhstan
Tajikistan
0,63
0,62
0,62
0,61
0,6
Turkmenistan
Russian
Federation
Kyrgyzstan
Uzbekistan
International aid ($ per capita)
62,04
60
1992
50
1999
2001
2002
2003
39,12
40
30
27,27
22,85
18,04
20
10
1995
15,22
7,60
5,59
5,24
2,13
0,7
2,22
2,88
0
Kyrgyzstan
Tajikistan
Kazakhstan
Turkmenistan
Uzbekistan
Official Development Assistance Received
by Landlocked Countries in 2001
(as % of GNI)
20,6%
19,3%
15,7%
15,5%
12,9%
9,7%
4,3%
Uzbekistan
Azerbaijan
Armenia
Kyrgyzstan
Tajikistan
Burkina
Faso
Burundi
Mongolia
1,4%
Distribution of TACIS funds in 1991-2006
(euro per capita)
33,2
26,3 25,3
21,05
19,6
18,4
14,9 14,4
7,1 6,2
Tajikistan
Uzbekistan
7,5
Belarus
Kazakhstan
Turkmenistan
Russia
Mongolia
Kyrgyzstan
Azerbaijan
Ukraine
Moldova
Georgia
Armenia
11,2 10,9
Human Development Index Trends
0,824
0,819
0,84
0,83
0,81
0,809 0,806
0,80
1990
0,81
2001
0,80
0,804
0,781
0,779
0,765
0,756
0,756
0,729
0,74
0,729
0,728
0,7
Uzbekistan
Tajikistan
Moldova
Armenia
Kazakhstan
Latvia
Hungary
Belarus
Russia
Estonia
Lithuania
0,68
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