Republic of Uzbekistan : Country Economic Memorandum

Uzbekistan adopted upon independence in 1991, an import substitution development strategy, intended to transform the economy from heavy dependence on agriculture and natural resources, to a modern industrial economy, helping achieve some objectives...

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Bibliographic Details
Main Author:	World Bank
Format:	Country Economic Memorandum
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCOUNTING AGRICULTURE ALLOCATION OF RESOURCES AUDITS AUTONOMY BALANCE OF PAYMENTS BANK PRIVATIZATION BANK PROFITS BANK RESTRUCTURING BANKING REFORM BANKING SYSTEM BORROWING POLICIES BUDGET CONSTRAINTS BUDGET DEFICITS CABINET OF MINISTERS CAPITAL FLIGHT CAPITAL GOODS CENTRAL BANK CENTRAL PLANNING CLOSED ECONOMY COMPETITIVENESS CONSENSUS CONSUMER PRICE INDEX CONSUMERS CORPORATE GOVERNANCE CPI DEBT DECISION-MAKING DEMAND FOR MONEY DEPOSITS DEVALUATION DEVELOPED COUNTRIES DEVELOPMENT BANKING DEVELOPMENT STRATEGY ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC INFORMATION ECONOMIC REFORM ECONOMIC RELATIONS ECONOMIC RESOURCES ECONOMIC SITUATION EMPLOYMENT GENERATION ENACTMENT ENTERPRISE RESTRUCTURING ENTREPRENEURSHIP EXCHANGE RATE EXCHANGE RATE DEVALUATION EXCHANGE RATES EXPANSIONARY FISCAL EXPENDITURE EXPORT EARNINGS EXPORTS FARMS FINANCIAL AUTONOMY FINANCIAL CRISIS FINANCIAL DISCIPLINE FINANCIAL SUPPORT FISCAL FISCAL ADJUSTMENT FISCAL DEFICIT FISCAL STANCE FOREIGN BORROWING FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE REGIME FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN TRADE FORMAL EMPLOYMENT FORMAL SECTOR FORMAL SECTOR EMPLOYMENT GDP GDP DEFLATOR GDP PER CAPITA GOVERNMENT BUDGET GOVERNMENT POLICIES GOVERNMENT'S DEVELOPMENT STRATEGY GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HARD BUDGET CONSTRAINTS IMPORT SUBSTITUTION IMPORT TARIFFS IMPORTS INCOME INDUSTRIALIZATION INFLATION INFORMATION DISCLOSURE INFORMATION DISSEMINATION INSTITUTIONAL REFORMS INSURANCE INTEREST RATE INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL MONETARY FUND INTERNATIONAL RESERVES LABOR MARKETS LABOR REDEPLOYMENT LEGISLATION LIVING STANDARDS LOAN COMMITMENTS LOW INTEREST RATES MACROECONOMIC CONTEXT MACROECONOMIC POLICIES MARKET DISTORTIONS MARKET PRICES MINISTRY OF FINANCE MONETARY POLICIES NATURAL MONOPOLIES NATURAL RESOURCES OIL OIL REFINERIES OPPORTUNITY COST OPPORTUNITY COSTS OVERVALUATION PENSION FUND PENSIONS POPULATION GROWTH POVERTY LINE PRICE CONTROLS PRIVATIZATION AGENCY PUBLIC INFORMATION PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SECTOR DEFICITS PURCHASING POWER REAL EXCHANGE RATE REAL GDP REAL INTEREST RATES RELATIVE PRICES RESOURCE ALLOCATION SHORT-TERM DEBT SOCIAL ASSISTANCE SOCIAL PROTECTION SOCIAL PROTECTION SYSTEM SOCIAL SECTOR STATE BANKS STATE BUDGET STATE ENTERPRISE STATE PROCUREMENT TARIFF BARRIERS TAX AUTHORITIES TAX LIABILITIES TAXATION TELECOMMUNICATIONS TERMS OF TRADE TRANSITION ECONOMIES TRANSPARENCY TRANSPORT UNEMPLOYMENT WAGES COUNTRY ECONOMIC WORK DEVELOPMENT STRATEGIES AGRICULTURAL ECONOMY NATURAL RESOURCE UTILIZATION INDUSTRIAL ECONOMICS ENERGY FLOW FOOD SECURITY RISK MANAGEMENT REFORM POLICY PRICING REFORMS LIBERALIZATION BUDGET ADMINISTRATION PRODUCTIVITY GROWTH INSTITUTIONAL REFORM BANKING REFORMS ENERGY SECTOR REFORM FOREIGN EXCHANGE RISK MANAGEMENT FISCAL CONTRACTION MONETARY POLICY INTEREST RATE INCREASES TRADE BARRIERS TARIFF POLICY EXPORT RESTRICTIONS IMPORT PAYMENTS MARKET PROJECTIONS COMMERCIAL PERFORMANCE INDICATORS SOCIAL PROTECTION SYSTEMS
Online Access:	http://documents.worldbank.org/curated/en/2003/04/2329591/uzbekistan-country-economic-memorandum http://hdl.handle.net/10986/14763

Description
Summary:	Uzbekistan adopted upon independence in 1991, an import substitution development strategy, intended to transform the economy from heavy dependence on agriculture and natural resources, to a modern industrial economy, helping achieve some objectives, notably energy and food self-sufficiency, having sustained growth for the past six years. However, this report argues that important goals have not been met, and there are still significant opportunity costs, and risks to the development strategy. Priority reforms should be a decisive move to liberalize prices, production, marketing and distribution, coupled with the imposition of hard budget constraints. Given the need for a robust supply response, reforms need to be sufficiently comprehensive, and deep to allow for rapid re-alignment of productive factors. The initial liberalization would be followed by further institutional reforms, and restructuring in enterprise, banking, and energy sectors. Recommendations suggest the liberalization of the foreign exchange regime in conjunction with tight fiscal, and monetary policies, in order to raise bank interest rates to positive real levels. This leads to the necessary removal of barriers to foreign trade, by eliminating non-tariff barriers, and advance payment restrictions on imports, replacing export prepayment requirements with time limits on repatriation of exports earnings by domestic enterprises. Subsequently, the VAT should be refunded on all exports, and imports duty exemptions on inputs for exports, uniformly applied. Moreover, it is suggested to enhance price and market flexibility, to reduce significantly material balances, and phase-out completely the cash, and mandatory crop plans, to ensure that farms, and firms can respond to market price signals. Overall, this would foster an active commercial behavior by enterprises, strengthen social protection, and increase transparency.

Republic of Uzbekistan : Country Economic Memorandum

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