Uzbekistan today
In Middle Ages Uzbekistan was the cultural and economic center of the enormous empire stretched through the Central Asia to India and Iran, and a key site of trading crossroads between China and the West. Today it is the most industrialized republic in Central Asia, which promises to become the economic center connecting Europe with the Western China, the Central and Southern Asia.
It has everything for that. Uzbekistan possesses an extensive transport network and the large urban population. Its capital, Tashkent, is the biggest city in the Central Asia with the population of 2.1 million people and the only city having system of underground in Central Asia. The national transport airline, Uzbek Air Ways, connects Tashkent with the largest cities and capitals of Europe, Asia and USA.
After the declaration of the independence September, 1, 1991 Uzbekistan is quickly gaining its place on a world scene. It is a member of the United Nations Organization, the International Currency Fund, the World Bank, the European Bank of Reconstruction and Development, the Asian Development Bank; has concluded bilateral agreements with leading world powers. Already more than thirty countries have opened the embassies in Tashkent.
Uzbekistan started coordinated program of political liberalization and economic reforms. With the purpose of stage-by-stage transition to market economy the program is guided by several paramount priorities. The basic among them is maintenance of social stability and minimizing economic declines at the transition to market system.
Diversified economy
The agriculture constitutes almost half of the production of net material product of Uzbekistan. Uzbekistan is the fourth, largest producer of cotton, but only 16 % of a crop of a cotton is domestically processed. The target is to increase this parameter up to 40 % in the near future. At the same time, improvements in efficiency of cultivation of a cotton will allow growing wider range of foodstuff.
Uzbekistan has significant industrial potential, it is the main producer of textiles, fertilizers, machines, planes and the aviation equipment in the Central Asia. Among the youngest industries are petrochemical substances, energy, metallurgy and construction materials, and the big centers of the chemical industry on production and processing of a cotton. There are huge opportunities for investment in these areas.
Services
Recently privatized branches of retail trade and services represent interesting prospects for commercial development. Bakeries; public catering; construction; the enterprises producing carpets and processing a leather, among others, are also privatized. Licensing, franchise and conclusion of subcontracts might provide foreign business by a basis for expansion of operations whole country before modernization of local production and opportunities of marketing.
There are also many opportunities for foreign investments in development of the tourism industry. Uzbekistan is the native land of some of the world’s famous monuments of medieval Islamic architecture. On east mountains of Tjan’-Shan provides an opportunity for winter kinds of sports and skiing.
Conditions of investments
Investors may repatriate profit to their countries, import and sell the goods in the local market, rent the ground and buy buildings and the equipment. They are protected from nationalization, for these purpose Fund of insurance of investments is created. Foreign firms may buy securities and shares of the Uzbek enterprises by direct contracts or on the Tashkent stock exchange through commercial banks and the broker companies.
Geography and resources
Uzbekistan is situated in the center of the Central – Asian steppe which was native land of Amir Temur (Tamerlane). Uzbekistan borders with Kazakhstan, Afghanistan, Turkmenistan, Tajikistan, and Kyrgyzstan. Despite that Uzbekistan has no common borders with China, Pakistan and India, these large markets are at distance less than 600 kilometers. The area of Uzbekistan equals to 447,400 sq. kilometers. Syr-Darya and Amu Darya – two biggest rivers of the Central Asia – form borders in the north and the south. In their fertile valleys the cotton, fruits and vegetables are grown. About 3/5 of the countries constitute deserts. The mountains of Tjan’-Shan separating the Central Asia from China, and fertile Fergana valley are situated in the east. Aral Sea forms a part of the western border.
Uzbekistan possesses richest mineral resources, including precious metals. There are huge deposits of gold in desert Kyzyl – Kum that makes the country seventh biggest manufacturer of gold. Copper, zinc, lead, aluminum and molybdenum were found in the area Kuramina. There are also large deposits of feldspar, fluorine, clay, phosphate, asbestos and kaolin in the area. These deposits are significant, and development of deposits of minerals is not completed yet. Hence, there are huge potential for expansion, modernizations and export.
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