Asia

Uzbekistan Economy

According to a2zcamerablog, Uzbekistan is a country located in Asia. In the aftermath of independence, the country was in a situation of recession (sharp decline in GDP, backwardness and precarious living conditions of the population), the standard of which did not substantially change in the early years of the new millennium. The economic and geopolitical choices made by the government worried the powerful neighboring states and foreign observers, as they highlighted Uzbekistan’s difficulties in setting aside the Soviet-style economic approach and at the same time signaled a propensity to further increase state control over all sectors.. In recent years, the International Monetary Fund he criticized above all the too timid reform policy (the privatization process is proceeding very slowly), granting minimal aid (the program started in 1995 was suspended the following year due to the changes made by the authorities in the allocation of funds). In the meantime, some of the most important macroeconomic indicators have remained negative. § The agricultural sector, thanks to which the country has achieved food self-sufficiency, employs a third of the workforce. The main product is cotton, which accounts for almost half of the total agricultural production. Uzbekistan is the fifth largest producer of cotton fibers in the world and one of the largest in the world for processing yarns and related fabrics. However, the massive irrigation of desert areas destined for an increasingly widespread cultivation of cotton has led to serious environmental problems, of which the most urgent to be solved is that relating to the decreased water level of the Aral Sea. Other products are wheat (of which it is the sixth Asian producer), potatoes, vegetables (tomatoes, cabbage, onions) and fruit (grapes, apples, watermelons).

§ The other traditional resource of the primary sector, considering that more than half of the territory is grassland, is breeding, especially sheep (the variety onions) and fruits (grapes, apples, watermelons). § The other traditional resource of the primary sector, considering that more than half of the territory is grassland, is breeding, especially sheep (the variety onions) and fruits (grapes, apples, watermelons). § The other traditional resource of the primary sector, considering that more than half of the territory is grassland, is breeding, especially sheep (the variety karakul gives a fine quality wool), cattle and goats, thanks to which moderate quantities of meat and milk are produced. The silk sector is also relevant. In 2003, under the supervision of the IMF, regulations concerning the primary sector were enacted, with the opening of the export of wheat and cotton and with the approximation of sales prices to those in force on the world market, and encouragement was given to opening of small private enterprises.

§ In the secondary sector many of the industries have been excluded from technological development, with the mechanical (which produces cars and televisions), textile (cotton and wool yarn), chemical (sulfuric acid, nitrogen and phosphate fertilizers) and food (beer, cotton oil, wine) that struggle to recover. The mining sector remains active with copper, tungsten, zinc, molybdenum as well as rare metals such as uranium (of which it is the seventh producer in the world, the second in the continent), gold (third Asian) and silver (fourth Asian). Uzbekistan is above all rich in coal, oil and natural gas, the fields of which have not yet been fully explored. The good mineral resources and the presence on the territory of hydroelectric plants allow the country energy independence even if the infrastructures are outdated. The interest of the Russian Federation in the richness of Uzbek fields has led, since 2005, to a series of agreements between the two countries for the enhancement of trade and cooperation for security. The agreement (2007) for the supply of gas to Russia at a higher price also allowed to increase revenues. Other agreements have been signed with Asian companies (from China, South Korea and other countries) for the exploration and exploitation of the fields. Since the early 2000s, the country has initiated a series of reforms aimed at loosening state control over the productive sectors and a 2005 decree sought to boost foreign investment. The GDP recorded in 2008 was US $ 27,918 million, while the GDP per capita was just US $ 1,027. The trade balance is active thanks to the increase in the export of hydrocarbons; other exported goods are cotton, finished textiles and other minerals (gold, metals). The main imports concern machinery, chemicals and food. A quarter of commercial exchanges take place with Russia and then with China, Kazakhstan and Ukraine; other countries to which Uzbek products are directed are Poland, Turkey and Bangladesh, while imports also come from South Korea and Germany. The 81,000 km of roads (1999) are almost all asphalted and the railway network covers about 4000 km but overall the system appears inefficient. Tashkent International Airport is the largest in the country, which has no direct access to the sea.

Uzbekistan Economy