Uzbekistan - The Times Of Central Asia

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World Bank Allocates $800 Million to Support Uzbekistan’s Market Economy Transition

The World Bank has allocated $800 million to accelerate Uzbekistan's transition to an inclusive and stable market economy. The government’s reform program, supported by the World Bank, aims to improve Uzbekistan’s business environment, increase agriculture, railways, and energy efficiency, improve public finance management, expand social services, and enhance readiness for environmental risks. Finance provided by the World Bank through highly concessional loans, is reported to offer the government low-cost, long-term repayment options "more favorable than those available in international financial markets." The financial package aims to achieve concrete results in the social protection system, combating gender-based violence, land security for farmers, business environment, public finance management, tackling climate change, water resource management, and environmental and climate assessment. It also includes reforming climate-sensitive investment in the railway and energy sectors. Uzbekistan has received $100 million from the World Bank in May to develop social protections. On 21 June, it was announced that Uzbekistan is the first country worldwide to receive payment from the World Bank for reducing carbon emissions through a policy crediting program and to date, has been awarded a $7.5 million grant for cutting 500,000 tons of carbon emissions.

Central Asia Uzbekistan International Affairs Local Politics Kyrgyzstan Kyrgyzstan International Affairs Business & Economy Kazakhstan Uzbekistan Business & Economy Kazakhstan International Affairs Kyrgyzstan Local Politics Kazakhstan Business & Economy Kyrgyzstan Business & Economy Uzbekistan International Affairs

Kyrgyzstan Returns Four Resorts to Uzbekistan with Additional Conditions Imposed on Kazakhstan

Shavkat Mirziyoyev, President of the Republic of Uzbekistan, has approved an agreement between the governments of Uzbekistan and Kyrgyzstan, to regulate the ownership and continued operation of four spa and recreation centers in the Issyk-Kul region. Kyrgyzstan's transfer of ownership of the four resorts to Uzbekistan determines the authorization for implementing property rights but as cited by one Uzbek publication “The recreational facilities aren’t given, they are returned!” In April 2016, the “Golden Sands of Central Asia” (formerly “Bosteri”), “Rohat-NBU” (formerly “Rakhat”), “Dilorom” (formerly “Enesay”), and the unfinished construction of “Buston", were transferred to the jurisdiction of Kyrgyzstan. Although located on the territory of Kyrgyzstan, the resorts previously belonged to JSC “Tashkent Mechanics Plant,” JSC “National Bank of Foreign Economic Activity,” JSC “Asakabank” and JSC “Uzsanoatkurilishbanki” of Uzbekistan. Back in 2016, the government of the Kyrgyz Republic, under Prime Minister Temir Sariyev, decided to seize recreational facilities from the Republic of Uzbekistan. This led to litigation in international arbitration and the facilities were immediately renamed. In September 2016, the Uzbek owners of resorts applied to the International Center for Settlement of Investment Disputes (ICSID). Uzbekistan considered that the 1992 agreement between the countries of the former Soviet Union, regulating the use of facilities left on the territory of other republics as a result of the collapse of the Union, was violated. According to this document, property belonging to one state but located on the territory of other CIS countries remains the property of its owners. Thus began a long series of arbitration discussions and efforts to settle the matter amicably, leading to the announcement of an agreement between the Kyrgyz government and the Cabinet of Ministers of Uzbekistan in December 2017, whereby the land plots of the resorts would remain the property of Kyrgyzstan whilst other properties would be returned to the ownership of the Uzbek side. After formalizing property rights, Uzbekistan would undertake to upgrade boarding houses to a level of three or four stars and ensure their operation throughout the year. The agreement, however, was not signed, and discussions continued. The dispute resolution review was completed in May 2023 in ICSID. Details of the deal remained confidential until Kyrgyzstan's president Sadyr Japarov, announced that the international court had decided that Kyrgyzstan should pay Uzbekistan more than $40 million. Following negotiations, the parties agreed to lease the facilities for investors from Uzbekistan for 49 years. The president then warned," We cannot invest in their renovation in the next 15-20 years because we have many other critical issues. We cannot talk about recreational facilities until we solve them." Whilst Article 2 of the agreement clearly states that the Kyrgyz side transfers the ownership of buildings and structures to the Uzbek side, the recent agreement does not provide a fixed period for the rental of the recreational facilities. Kazakhstan and Kyrgyzstan have long-standing problems with boarding houses, including those in the former's “University”, “Olympus”, “Samal” and “Kazakhstan”sports and health resorts, in Issyk-Kul. At the end of the 1960s, the USSR declared Issyk-Kul...

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Uzbekistan Ends Forced Labor, But Cotton Industry Faces New Challenges

Global Voices reports that Uzbekistan has succeeded in phasing out forced labor in its cotton industry, but now faces new challenges. The country has made progress in ending forced labor and modernizing its cotton sector, driven by economic and political reasons. Forced labor hurts businesses and the nation’s international image, which the government has aimed to improve since 2016. Cotton production accounts for 12% of GDP. Since 2017, the government has introduced major reforms to modernize Uzbekistan’s cotton industry, led by President Shavkat Mirziyoyev after he took office in 2016. By 2018, labor control was strengthened, and the cotton cluster system, which controls the entire production process, began to take shape. Today, almost all cotton is grown through 142 clusters. Cotton quotas have been abolished by 2020, and the minimum wage will now be negotiated. The same year, the International Labor Organization reported that child labor was no longer a problem, and the international boycott was lifted in 2022. Eradicating forced labor has been hailed as “one of the most significant victories anywhere in the world in the battle against forced labor in the twenty-first century,” said Bennett Freeman, co-founder of the Cotton Campaign in 2022. This achievement was possible thanks to the diligence of organizations such as human rights defenders of Uzbekistan and the Uzbekistan Forum for Human Rights, which monitored the cotton fields and recorded violations, as well as the government's promptness in reviewing these reports. Global Voices writes that despite the progress achieved in Uzbekistan's cotton industry, there are still serious problems. The report states, “Despite abandoning forced labor, the government still continues to exert strong control over cotton production and prevents farmers from fully operating on their own terms.” Farmers receive resources and loans, but the system remains inefficient, with state-set cotton prices often differing from global rates. The government and industry need to address these ongoing issues while pursuing international standards and export opportunities to build trust and transparency.

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Kazakhstan Leads Central Asia in Global Knowledge Index

Kazakhstan performed best among Central Asian countries in the 2024 Global Knowledge Index, conducted by the United Nations Development Program in cooperation with the Mohammed bin Rashid Al Maktoum Knowledge Foundation. The country takes a respectable 74th place out of 133 countries; however, Kazakhstan is 60th out of the 61 countries with very high human development. The index considers seven indicators covering the countries' education, information and communication technology, and economic sectors. Uzbekistan is in 78th place, and the country ranks 14th out of 28 countries with high human development. Kyrgyzstan has a modest knowledge infrastructure. It is 84th in this rating and is a medium indicator of the country's knowledge infrastructure. The country ranks 5th out of 25 countries with medium human development. Tajikistan records the lowest result among the region's countries in the Global Knowledge Index. With 36.1 points, it takes 111th place among the 133 countries. Regarding medium human development, the country shows the same result as Kyrgyzstan.

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Qatar To Help Restore Uzbekistan’s UNESCO World Heritage Site, Bibi-Khanym Mosque

During a recent meeting between the Assistant to the President of Uzbekistan Saida Mirziyoyeva and Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani, bilateral cooperation agreements were signed between the Foundation for the Development of Culture and Arts of Uzbekistan, the Aga Khan Trust, and the Qatar Development Foundation. These agreements envisage not only financial support, but also the exchange of experience in the field of restoration of cultural monuments. In particular, the talks focused on restoring the Bibi-Khanym Mosque, built in the 15th century by Timur and a UNESCO World Heritage Site. According to local media reports, Qatar will actively revitalize this important monument, which attracts tourists from all over the world. Although details of the funding have not yet been disclosed, the work is expected to restore the mosque to its historic appearance, preserving its uniqueness for future generations. The Bibi-Khanym Mosque in Samarkand was built on the orders of Timur (Tamerlane) after his victorious campaign to India in 1399. The construction used 95 elephants to transport materials. Its high tympanum coated in cobalt blue tile-work, the Mosque stands in a grassy courtyard around a large marble carving of the Quran. Named after Timur's Chinese wife, local folklore tells how the architect fell in love with her and stole a kiss. Escaping the wrath of Timur by jumping from the minaret, he sprouted wings and flew to Mecca. At its peak, the mosque could hold up to 10,000 worshipers and became a symbol of Timur's greatness; however, due to its enormous size, the structure began to deteriorate before it was completed. Since then, the building has undergone numerous restorations, especially during the Soviet era.

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Navigating Diplomacy: Central Asia’s Strategic Balancing Act Amid Middle East Tensions

The five Central Asian republics are actively building ties with the outside world, trying to balance the influence of China and Russia in the region. For the former Soviet republics, the Middle East was, until recently, a kind of terra incognita since Moscow carried out all contacts with the area. However, since the nineties, thanks to a growing friendship with Turkey, Kazakhstan, followed by other Central Asian republics, have begun establishing diplomatic, cultural, and trade ties with the Middle East and North African countries. Another escalation in the Middle East has forced the diplomatic departments of the Central Asian countries, whilst avoiding any accusations against either side in the conflict, to inform their citizens about and the address the fate of their compatriots who have found themselves at the epicenter of events. Kazakhstan In Kazakhstan, law enforcement agencies reacted before diplomats. Shyngys Alekeshev, head of the Interior Ministry's Information Policy Department, said in response to journalists' inquiries that police in the republic have brought their patrol routes closer to synagogues and Israeli diplomatic facilities. Later, official representative of the Ministry of Foreign Affairs of Kazakhstan, Aibek Smadiarov, said that no Kazakh citizens were injured as a result of the armed escalation between Iran and Israel, and urged Kazakh citizens in the Middle East to exercise caution. “The Kazakh Foreign Ministry expresses deep concern about the increasing escalation of tensions in the Middle East. We call on all parties involved to exercise restraint and refrain from using forceful methods to avoid civilian casualties and further escalation of the situation in the region, which could provoke a full-scale war. In this regard, we note the importance of taking early measures to resolve differences exclusively through political and diplomatic means within the framework of the principles of the UN Charter and international law,” said Smadiarov. According to the representative, 120 citizens of the Republic of Kazakhstan, including diplomats and their family members, are registered as being present in Israel, 102 in Iran, and 139 in Lebanon. “Communication channels have been created with citizens who are in these countries. Constant communication is maintained with them, and necessary recommendations are given depending on the development of the situation in one country or another. Several times, embassies have announced the need to leave the country due to the aggravation of military and political situations. At the same time, the Ministry and authorized bodies are monitoring the situation to work out possible repatriation flights. The evacuation of our citizens is still under consideration and the special control of the Ministry of Foreign Affairs,” said Smadiarov. Kyrgyzstan The Kyrgyz Foreign Ministry stated on October 2 that it is deeply concerned about events taking place in the Middle East, stating that it is calling on “the conflicting parties to respect the fundamental principles and norms of international law, including refraining from actions leading to an escalation of the situation in the region. The Kyrgyz Republic urges the global community to completely stop military action as soon as possible, and start...