International Review: Republic of Uzbekistan
In new material of International Review series we will focus on a country with a rich culture and history, reserves of rare minerals and a commitment to military and political neutrality. On the territory of this state was the trail of the famous Silk Road that was once laid. Let’s get acquainted with the Republic of Uzbekistan.
The Republic of Uzbekistan is located in Central Asia and borders on Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Afghanistan. The form of government is a presidential republic, the head of state is the President of the Republic of Uzbekistan Shavkat Mirmononovich Mirziyoyev (since December 14, 2016). The republic is administratively subdivided into the city of Tashkent, the Republic of Karakalpakstan and 12 regions. The area of the country is 447.4 thousand km2 (56th place in the world), population - 35 million people (42nd place).
The territory of Uzbekistan is a combination of flat terrain with mountainous terrain. Most of the territory is occupied by plains, approximately 75% of the territory, but this part is made up of deserts, mountains and steppes, which are unsuitable for life. However, the lands of Uzbekistan are rich in minerals. The country is among the top ten states in terms of reserves of important minerals such as copper, potassium, phosphates, etc., and is one of the leading producers of gold, uranium and natural gas.
Interesting fact. Uzbekistan keeps neutrality and pursues a foreign policy of refusing to join any military-political blocs.
Tashkent. The capital of Uzbekistan and one of the largest cities in Central Asia, with a population of more than 2.4 million people. The first mentions of Tashkent are found in chronicles starting from the 2nd century BC, and the current name Tashkent, which means stone city, appeared in the 11th century. The name of the city comes from stone buildings and structures of the city. However, a strong earthquake in 1966 destroyed almost the entire center of the stone city.
Today Tashkent is the center of concentration of state authorities, headquarters of the largest commercial organizations and industry of Uzbekistan, which is more than 2000 years old. The city is a busy aviation, rail and road hub.
Economy of UZBEKISTAN
The economy of Uzbekistan is one of the largest in the Central Asian region. In recent years, it has been actively and steadily developing. GDP in 2021 amounted to $397 billion (62nd in the world). GDP per capita - $9,390 (117th place in the world). In 2021, Uzbekistan's exports increased by $1.3 billion to $16.5 billion compared to 2020. The basis of exports builds manufactured goods (26% of total exports), gold and precious metals (25%), services (15%), food products (8%). Imports: machinery and equipment (32%), finished products (19%), chemical products (14%), food products (10%), services (7%). The main trading partners are Russia (18%), China (18%), Kazakhstan (9%), Turkey (8%), South Korea (5%), Kyrgyzstan (2%) and Turkmenistan (2%). The country's economy is predicted to grow by at least 7% in 2022.
Uzbekistan is an agro-industrial country. In agriculture, the main activities are the cultivation of cotton, cereals (including wheat, corn and rice), fruits and vegetables, gourds and tobacco, sheep and livestock.
Interesting fact. Uzbekistan is one of the five world producers of cotton (China, USA, India, Pakistan, Uzbekistan), most of which is exported.
Agriculture in Uzbekistan is one of the leading industries, which provides more than 28% of the country's gross domestic product. The industry employs about 4.2 million people, which is more than 30% of the total employment in the country. The produced goods provide the population with food and raw materials for industry. The electrical, engineering, metalworking, light, gas, automotive and consumer goods industries are the leading industries. The prospects for the development of these industries directly depend on agriculture, since the country's economy is aimed at using domestic raw materials for the production of goods. In recent years, the textile industry has been actively developing, while much attention is paid to increasing the level of domestic processing of cotton fiber and increasing the export potential.
The light industry of the Republic of Uzbekistan is one of the leading and actively developing industries. The volume of exports of textile products in January-October 2021 exceeded $2 billion, an increase of 56% compared to the same period last year. The main importers of textile products include Russia, China, Turkey, Kyrgyzstan and Pakistan. The country exports about 500 types of textile products to 64 countries of the world. At the same time, cotton yarn became the most popular product in January-October 2021, followed by knitwear and garments, embroidered fabrics, silk and carpets.
Engineering. Uzbekistan is actively implementing a policy of increasing the level of the country's competitiveness. At the moment, the Republic of Uzbekistan is the largest car manufacturer in Central Asia with a high share of localization (45-55%) for cars and about 15-30% for trucks and buses. Through the state company Uzavtosanoat, a number of global brands have already been localized in various segments, including cars and light commercial vehicles (General Motors), trucks (MAN, ISUZU) and buses (ISUZU). However, in almost all joint ventures, the controlling stake is controlled by the state through Uzavtosanoat.
Interesting fact. Most cars in Uzbekistan are white, which protects from the scorching sun.
The state is taking various measures to create a favorable investment environment that will contribute to the creation of competitive enterprises in the automotive industry. So, in 2021-2023, it is planned to launch a number of projects for the production of cars (Navoi-Motors, Manas Avto-sanoat, Namangan Changan Motors, ADM-Jizzakh, Auto Motors Asia, Abbos-Eco Agro, Hyundai Motor Uz Namangan).
Chemical industry. The state company Uzkimyosanoat takes a key position in the development of the chemical industry. In total, there are more than 2,700 enterprises in this area in Uzbekistan. The country's policy is aimed at diversifying exports, and in connection with this, it is increasing the production of soda ash, low-density ammonium nitrate, sodium cyanide, baking soda, sodium nitrate and other types of products. It should be noted that in 2018, Uzbekistan launched the production of automobile and agricultural tires as part of a joint project with the Chinese company Poly Technologies in the Angren special industrial zone.
Construction. Despite various factors, the construction industry continues to develop steadily. Thus, about 12.5 thousand enterprises for the production of building materials operate in Uzbekistan, and the number of types of which exceeded 180. The main part of the production of building materials is cement and slate.
Pharmaceutical industry. This branch of Uzbekistan belongs to the dynamically developing sectors of the national economy. More than 100 enterprises produce medicine and pharmaceutical products, 70 pharmacological groups are produced, including medicine for the treatment of cardiovascular diseases, vitamins, biostimulants, analgesics and anesthetics, antibiotics, anti-tuberculosis drugs, antiparasitic drugs, vaccines, serums, bactericides and etc.
Minerals. Uzbekistan is rich in mineral resources and precious metals, including gold, copper, lead, molybdenum, silver, tungsten and zinc. The most commonly mined minerals are copper, uranium and gold. More than 2,700 deposits and promising ore occurrences of various minerals have been discovered in the bowels, including about 100 types of mineral raw materials.
Uzbekistan hosts the world's largest open-pit gold mine, Muruntau, which, in addition to gold, has huge deposits of turquoise and arsenic. Among the countries with the largest volume of gold mining, Uzbekistan ranks 8th.
In 2021, the World Nuclear Association (WNA) provided a ranking of countries producing natural uranium, where Uzbekistan ranked 5th. At the same time, only one enterprise in the country carries out the extraction and export of uranium - the Navoi Mining and Metallurgical Combine. The republic does not have its own nuclear industry and exports all low-enriched uranium it produces.
Tourism. The tourism industry of Uzbekistan is also actively developing. The number of tourists visiting the country is increasing every year. The country has many monuments of history, architecture and archeology, museums, unique natural landscapes, there are even two ski resorts. The metro in Tashkent, built in 1977, is also one of the sights of Uzbekistan. Each station is lined with marble, gilding and glass.
In terms of the number of historical and architectural monuments, Uzbekistan ranks ninth in the world, and this is not surprising, since the main densely populated cities of Uzbekistan (Tashkent, Samarkand, Bukhara, Khiva, etc.) date back to the 5th-7th centuries BC. E. About 2 million foreign tourists visit Uzbekistan every year.
Interesting fact. Samarkand (8th century BC) and Bukhara (6th century BC) are the oldest cities in the world, which are considered the same age as Rome.
Uzbekistan is famous not only for its ancient cities, but also for its mosques, the number of which exceeded 2,000. The most famous mosques include Minor, built in 2014, which is also known as the White Mosque of the Capital (decorated with white marble). The Bibikhanum Mosque, built in the 15th century, was considered the largest in the Muslim world of that time. The Kalyan Mosque is considered one of the oldest in Central Asia and the largest after the Bibikhanum Mosque in Samarkand. Also, the mosque, along with other cultural monuments of Samarkand and Bukhara, is included in the UNESCO World Heritage List.
Tourist interests of guests of Uzbekistan include active recreation, sports tourism, mountaineering and skiing. It should be noted here that the mountains of Uzbekistan are “warm”. This is an important detail for ski lovers. The mountains of Uzbekistan have a sharply continental climate, and even if there are severe frosts at night, the slope “releases” in the early morning. Traveling to historical and cultural places, which are distinguished by the rich archaeological and religious history of the country, are also popular.
BELARUS and UZBEKISTAN
Over the past five years, trade between the countries has increased sevenfold. In 2020, the volume of trade between the Republic of Belarus and the Republic of Uzbekistan amounted to $280 million (117% compared to 2019), including exports - $238 million (126%), imports - $42 million (84%). The positive balance of foreign trade in goods amounted to $195 million. Belarus supplies tractors, sugar, timber, paper and chemical products to Uzbekistan. Uzbekistan exports cotton yarn, ethylene polymers, combed cotton fiber, dried fruits and nuts.
The Heads of both states have been actively developing cooperation in recent years. The legal basis for bilateral relations is more than 70 intergovernmental, intergovernmental and interdepartmental agreements. In 2018, the official visit of the President of the Republic of Belarus to the Republic of Uzbekistan took place. During the visit, 19 international documents were signed on priority areas of cooperation. A joint business forum of business and interregional cooperation was held, an exhibition of Belarusian manufacturers Made in Belarus was held. In 2019, the return visit of the President of the Republic of Uzbekistan to the Republic of Belarus took place. During the visit, 12 interdepartmental and interdepartmental agreements were signed, the First Forum of the Regions of Belarus and Uzbekistan was organized, in which the leadership of FEZ Grodnoinvest took part, the National Exhibition of Uzbek Goods Made in Uzbekistan and the Days of Culture of Uzbekistan.
FEZ GRODNOINVEST and UZBEKISTAN
FEZ Grodnoinvest actively develops business and trade and economic relations with business circles of Uzbekistan. In 2018, the business forum Partnership of the Grodno region with the Republic of Uzbekistan was held on the basis of FEZ. In the same year, Mr. Yusupov, Ambassador Extraordinary and Plenipotentiary of the Republic of Uzbekistan to the Republic of Belarus, visited FEZ Grodnoinvest. He got acquainted with the business conditions and prospects for interaction with FEZ residents, visited the production facilities of Gronitex and Conte Spa, and discussed areas of cooperation in the markets of Central Asia with the management of the companies. These events have become a driver for increasing the volume of mutual trade.
In 2021, the export of FEZ Grodnoinvest residents to Uzbekistan doubled and amounted to $5.5 million, and the total trade turnover approached $10 million. FEZ residents export polycarboxylic acids, alkyd resins, plywood, hosiery and furniture. At the same time, cotton fiber and cotton yarn are sent to Belarus.
FEZ residents are ready to increase the supply of Belarusian products to Uzbekistan. First of all, we are talking about sanitary and hygienic products made of cotton and linen, wet wipes, medical cotton wool, innovative products for agricultural animals and poultry, drilling and industrial machines, metal building structures, paper, cardboard and furniture.
During the period of activity of FEZ Grodnoinvest from the Republic of Uzbekistan, $6 million of foreign investments were attracted. Since 2016, a company with Uzbek capital Evroplasteks Invest has been successfully operating as a FEZ resident, which is implementing two investment projects:
- creating a vertically integrated complex for the production of cotton yarn and products from it;
- organization of metal processing production (steel pipes and profiles).
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