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The Government of Uzbekistan is moving cautiously towards a market-based economy for the Economy of Uzbekistan. Since independence, the government has stated that it is committed to a gradual transition to a free market economy. Although the government has significantly narrowed the gap between the black market and official exchange rate, its restrictive trade regime has crippled the economy. In addition to the urgent need to rescind its draconian trade measures, the government needs to achieve full current account conversion capacity. Substantial structural reform also is needed, particularly in the area of improving the investment climate for foreign investors and in freeing the agricultural sector from smothering state control. Until now, continuing restrictions on currency conversion capacity and other government measures to control economic activity, including the implementation of severe import restrictions and closure of Uzbekistan's borders with Kazakhstan and Kyrgyzstan, have constrained economic growth and led international lending organizations to suspend or scale back credits. The recent closure of the borders with neighboring Kazakhstan and Kyrgyzstan has almost paralyzed Uzbekistan's consumer market. Image File history File links Broom_icon. ... The som (so‘m in Uzbek) is the currency of Uzbekistan in Central Asia. ...  Member state  Associate member Headquarters Minsk, Belarus Working language Russian Type Commonwealth Membership 11 member states 1 associate member Leaders  -  Executive Secretary Viktor Yanukovych Establishment December 21, 1991 Website http://cis. ... Map of the ECO member states The Economic Cooperation Organization (ECO) is an intergovernmental international organization involving ten Asian nations. ... Map of countries showing percentage of population who have an income below the national poverty line The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ... This article does not cite any references or sources. ... This article is about the type of fabric. ... Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. ... A Blacksmith, the father of the modern metallurgist. ... Natural gas is a gaseous fossil fuel consisting primarily of methane but including significant quantities of ethane, butane, propane, carbon dioxide, nitrogen, helium and hydrogen sulfide. ... Chemical tanks in Lillebonne, France Chemical industry includes those industries involved in the production of petrochemicals, agrochemicals, pharmaceuticals, polymers, paints, oleochemicals etc. ... Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from... Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from... Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from... The Government of Uzbekistan takes place in a framework of a presidential republic, whereby the President of Uzbekistan is both head of state and head of government. ... A market economy is a term used to describe an economy where economic decisions, such as pricing of goods and services, are made in a decentralized manner by the economys participants and manifested by trade. ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... It has been suggested that this article or section be merged into underground economy. ...

The government has made some progress in reducing inflation and the budget deficit, but government statistics understate both, while overstating economic growth. There are no reliable statistics on unemployment, which is believed to be high and growing. The economy is based primarily on agriculture and agricultural processing; Uzbekistan is a major producer and exporter of cotton. It also is a major producer of gold with the largest open-pit gold mine in the world and has substantial deposits of copper, strategic minerals, gas, and oil. A budget deficit occurs when an entity (often a government) spends more money than it takes in. ...

GDP and Employment

This is a chart of trend of gross domestic product of Uzbekistan at market prices estimated by the International Monetary Fund with figures in millions of som. The som (so‘m in Uzbek) is the currency of Uzbekistan in Central Asia. ...

For purchasing power parity comparisons, the U.S. dollar is exchanged at 316.19 som only. ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Caicos Islands, and the insular areas of the United States Inflation 2. ...

The government claims that the GDP rose 4.2% in 2002; however, it is believed that it was no greater than 2%. Unemployment and underemployment are very high, but reliable figures are difficult to obtain, as no recent credible surveying has been done. Underemployment in the agricultural sector is particularly high, which is important given the fact that 60% of the population is rural-based. Many observers believe that employment growth and real wage growth has been stagnant, given virtually no growth in output. edit

Labor

Literacy in Uzbekistan is almost universal, and workers are generally well-educated and trained. Most local technical and managerial training does not meet international business standards, but foreign companies engaged in production report that locally hired workers learn quickly and work effectively. Foreign firms generally find that younger workers, untainted by the Soviet system, work well at all levels. The government emphasizes foreign education and each year sends about 50 students to the United States, Europe, and Japan for university degrees, after which they have a commitment to work for the government for 5 years. Reportedly, about 60% of the students who study abroad find employment with foreign companies on their return, despite their 5-year commitment to work in the government. Some American companies offer special training programs in the United States to their local employees. World map showing the location of Europe. ...

In addition, Uzbekistan subsidizes studies for students at Westminster International University in Tashkent--the only Western-style institution in Uzbekistan. In 2002, the government "Hope" Program is paying for 98 out of 155 students studying at Westminister. For the next academic year, Westminster is expecting to admit 360 students, from which Umid is expecting to pay for 160 students. The education at Westminster costs $4,800 per academic year. Westminster International University in Tashkent (WIUT) is a university in Tashkent in Uzbekistan, founded in 2002. ...

With the closure or downsizing of many foreign firms, it is relatively easy to find qualified, well-trained employees, and salaries are very low by Western standards. Salary caps, which the government implements in an apparent attempt to prevent firms from circumventing restrictions on withdrawal of cash from banks, prevent many foreign firms from paying their workers as much as they would like. Labor market regulations in Uzbekistan are similar to those of the Soviet Union, with all rights guaranteed but some rights unobserved. Unemployment is a growing problem, and the number of people looking for jobs in Russia, Kazakhstan, and Southeast Asia is increasing each year. According to official Ministry of Labor estimates, around 100,000 citizens of Uzbekistan work abroad. Location of Southeast Asia Southeast Asia is a subregion of Asia. ...

Prices and monetary policy

Inflation was approximately 50% in 2002. From 1996 until the spring of 2003, the official and so-called "commercial" exchange rate were highly overvalued. Many businesses and individuals were unable to buy dollars legally at these rates, so a widespread black market developed to meet hard currency demand. However, by mid-2003, the gap between the black market, official, and commercial rates had been reduced to approximately 8%. Currency convertibility is already reached by the government. Liberalization of the trade regime, however, is a prerequisite for Uzbekistan to proceed to an IMF-financed program.

Outstanding external debt reached $4.7 billion at the end of 2002. Tax collection rates remained high, due to the use of the banking system by the government as a collection agency. Technical assistance from the World Bank, Office of Technical Assistance at the Treasury Department, and from the UNDP is being provided in reforming the Central Bank and Ministry of Finance into institutions, which conduct market-oriented fiscal and monetary policy. ... The United Nations Development Programme (UNDP) is the largest multilateral source of grant technical assistance in the world. ...

Agriculture and natural resources

Agriculture and the agroindustrial sector contribute more than 40% to Uzbekistan's GDP. Cotton is Uzbekistan's dominant crop, accounting for roughly 45% of the country's exports. Gold is second at 22%. Uzbekistan also produces significant amounts of silk Uzbek Ikat, fruit, and vegetables. Virtually all agriculture involves heavy irrigation. Farmers and agricultural workers have very low incomes because the government uses the difference between the world prices of cotton and wheat and what it pays the farmers to subsidize highly inefficient capital intensive industrial concerns, such as factories producing automobiles, airplanes, and tractors. It is also the largest jute market in West Asia. Cotton ready for harvest. ... General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Standard atomic weight 196. ... Silk dresses Silk is a natural protein fiber, some forms of which can be woven into textiles. ... To meet Wikipedias quality standards, the lead section of this article may need to be expanded. ... For other uses, see Fruit (disambiguation). ... A plate of vegetables Vegetable is a culinary term which generally refers to an edible part of a plant. ... Irrigation is the artificial application of water to the soil. ... Karl Benzs Velo model (1894) - entered into the first automobile race An automobile or motor car (usually shortened to just car) is a wheeled passenger vehicle that carries its own motor. ... This article needs additional references or sources for verification. ...

Consequently, agricultural productivity is low, with many farmers focusing on producing fruits and vegetables--for which supply and demand determine the price--on small plots of land, as well as smuggling cotton and wheat across the border with Kazakhstan and Kyrgyzstan in order to obtain higher prices. For other uses, see Fruit (disambiguation). ... A plate of vegetables Vegetable is a culinary term which generally refers to an edible part of a plant. ...

Minerals and mining also are important to Uzbekistan's economy. Gold is Uzbekistan's second most important foreign exchange earner at 22%. Uzbekistan is the world's seventh-largest producer, at about 80 tons p.a., and holds the fourth-largest reserves. Uzbekistan has an abundance of natural gas, used both for domestic consumption and export; oil almost sufficient for domestic needs; and significant reserves of copper, lead, zinc, tungsten, and uranium. Inefficiency in energy use is extremely high, given the failure to use realistic price signals to cause users to conserve energy. A mineral is a naturally occurring substance formed through geological processes that has a characteristic chemical composition, a highly ordered atomic structure and specific physical properties. ... Chuquicamata, the second largest open pit copper mine in the world, Chile. ... Natural gas is a gaseous fossil fuel consisting primarily of methane but including significant quantities of ethane, butane, propane, carbon dioxide, nitrogen, helium and hydrogen sulfide. ... Pumpjack pumping an oil well near Lubbock, Texas Ignacy Łukasiewicz - inventor of the refining of kerosene from crude oil. ... General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11, 4, d Appearance metallic pinkish red Standard atomic weight 63. ... For Pb as an abbreviation, see PB. General Name, Symbol, Number lead, Pb, 82 Chemical series Post-transition metals or poor metals Group, Period, Block 14, 6, p Appearance bluish gray Standard atomic weight 207. ... General Name, Symbol, Number zinc, Zn, 30 Chemical series transition metals Group, Period, Block 12, 4, d Appearance bluish pale gray Standard atomic weight 65. ... General Name, Symbol, Number tungsten, W, 74 Chemical series transition metals Group, Period, Block 6, 6, d Appearance grayish white, lustrous Standard atomic weight 183. ... General Name, Symbol, Number uranium, U, 92 Chemical series actinides Group, Period, Block n/a, 7, f Appearance silvery gray metallic; corrodes to a spalling black oxide coat in air Standard atomic weight 238. ...

Trade and investment

Uzbekistan has adopted a policy of import substitution. The multiple exchange rate system and the highly over-regulated trade regime has led to both import and export declines since 1996, although imports have declined more than exports, as the government squeezed imports to maintain hard currency reserves. Draconian tariffs and border closures imposed in the summer and fall of 2002 led to massive decreases in imports of both consumer products and capital equipment. Uzbekistan's traditional "trade" partners are NIS states, notably Russia, Ukraine, Kazakhstan, and the other Central Asian countries. Non-NIS partners have been increasing in importance in recent years, with the U.S., Korea, Germany, Japan, and Turkey being the most active. Central Asia is a region of Asia. ... Korea (Korean: 한국 in South Korea or 조선 in North Korea, see below) is a geographic area, civilization, and former state situated on the Korean Peninsula in East Asia. ...

Uzbekistan is a member of the IMF, World Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development. It has observer status at the World Trade Organization, is a member of the World Intellectual Property Organization, and has publicly stated its intention to accede to the World Trade Organization. It is a signatory to the Convention on Settlement of Investment Disputes Between States and Nationals of Other States, the Paris Convention for the Protection of Industrial Property, the Madrid Agreement on Trademarks Protection, and the Patent Cooperation Treaty. In 2002, Uzbekistan was again placed on the special "301" Watch List for lack of intellectual copyright protection. The flag of the International Monetary Fund (IMF) The International Monetary Fund (IMF) is the international organization entrusted with overseeing the global financial system by monitoring foreign exchange rates and balance of payments, as well as offering technical and financial assistance when asked. ... The Asian Development Bank (ADB) is a regional development bank established in 1966 to promote economic and social development in Asian and Pacific countries through loans and technical assistance. ... Founded in 1991, the European Bank for Reconstruction and Development (EBRD) uses the tools of investment to help build market economies and democracies in 27 countries from central Europe to central Asia. ... The World Trade Organization (WTO), (OMC - Spanish: , French: ), is an international organization designed to supervise and liberalize international trade. ... The World Intellectual Property Organization (WIPO) (French: Organisation mondiale de la propriété intellectuelle or OMPI) is one of the specialized agencies of the United Nations. ... The Paris Convention for the Protection of Industrial Property, signed in Paris, France, on March 20, 1883, is an important and one of the first intellectual property treaties. ... The Patent Cooperation Treaty (PCT) provides a unified procedure for filing patent applications to protect inventions internationally. ...

Uzbekistan's lack of currency convertibility has caused foreign investment inflows to dwindle to a trickle. In fact, Uzbekistan has the lowest level of FDI per capita in the Commonwealth of Independent States. Since Uzbekistan's independence, U.S. firms have invested roughly $500 million in Uzbekistan. Large U.S. investors include Newmont Mining Corporation, reprocessing tailings from the Muruntau gold mine; Case Corporation (now Case IH), manufacturing and servicing cotton harvesters and tractors; Coca Cola, with bottling plants in Tashkent, Namangan, and Samarkand; Texaco, producing lubricants for sale in the Uzbek market; and Baker Hughes, in oil and gas development. No large new investments have taken place from the United States in the last five years. Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. ...  Member state  Associate member Headquarters Minsk, Belarus Working language Russian Type Commonwealth Membership 11 member states 1 associate member Leaders  -  Executive Secretary Viktor Yanukovych Establishment December 21, 1991 Website http://cis. ... Newmont Mining Corporation NYSE: NEM, based in Denver, Colorado, USA, is the worlds largest producer of gold, with active mines in Canada, Bolivia, Australia, Indonesia, New Zealand, Turkey, Peru and Uzbekistan. ... Gold mining consists of the processes and techniques employed in the removal of gold from the ground. ... 2005 Case IH windrower Case Corporation (formerly J.I. Case Company) was a manufacturer of construction and agricultural equipment. ... Case IH (for International Harvester) is an international manufacturer and marketer of agriculture, or farm equipment products. ... Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. ... Tashkent (Uzbek: , Russian: ) is the capital of Uzbekistan and also of the Tashkent Province. ... Namangan (Russian:Наманган), is a city (1994 pop. ... Samarkand (Tajik: Самарқанд, Persian: ‎ , Uzbek: , Russian: ), population 412,300 in 2005, is the second-largest city in Uzbekistan and the capital of Samarqand Province. ... Texaco is the name of an American oil company that was merged into Chevron Corporation in 2001. ... Baker Hughes NYSE: BHI is the worlds third-largest oil-services company behind Schlumberger and Halliburton . ...

Miscellaneous data

Household income or consumption by percentage share:

• lowest 10%: 3.6%
• highest 10%: 22% (2000)

Distribution of family income - Gini index: 44.7 (1998) The Gini coefficient is a measure of inequality developed by the Italian statistician Corrado Gini and published in his 1912 paper Variabilità e mutabilità. It is usually used to measure income inequality, but can be used to measure any form of uneven distribution. ...

Agriculture - products: cotton, vegetables, fruits, grain; livestock

Industrial production growth rate: 6.2% (2003 est.) fdgredgeru3jjjie4ir tgnjirgh Electricity:

• production: 47.7 TWh (2002)
• consumption: 46.66 TWh (2002)
• exports: 4.5 TWh (2002)
• imports: 6.8 TWh (2002)

Electricity - production by source: The terawatt hour (TW·h) is a unit for measuring energy. ...

• fossil fuel: 88.2%
• hydro: 11.8%
• other: 0% (2001)
• nuclear: 0%

Oil:

• production: 143,300 barrel/day (2004 est.)
• consumption: 142,000 barrel/day (2001 est.)
• exports: NA
• imports: NA
• proved reserves: 297 million barrel (1 January 2002)

Natural gas:

• production: 63.1 billion m³ (2001 est.)
• consumption: 45.2 billion m³ (2001 est.)
• exports: 17.9 billion m³ (2001 est.)
• imports: 0 m³ (2001 est.)
• proved reserves: 937.3 billion m³ (1 January 2002)

Current account balance: $461.9 million (2004 est.)

Exports - commodities: cotton 41.5%, gold 9.6%, energy products 9.6%, mineral fertilizers, ferrous metals, textiles, food products, automobiles (1998 est.)

Imports - commodities: machinery and equipment 49.8%, foodstuffs 16.4%, chemicals, metals (1998 est.)

Reserves of foreign exchange & gold: $1.603 billion (2004 est.)

Debt - external: $4.351 billion (2004 est.)

Exchange rates: Uzbekistani som per US dollar - 1,021.67 (2004), 115.9 (2003), NA (2001), 236.608 (2001), 236.608 (2000)

See also

• Uzbekistan
• Uzbekistani Som

The som (so‘m in Uzbek) is the currency of Uzbekistan in Central Asia. ...

External links

• Uzbekistan's trade surplus widens 33% in 9 mths