Uzbekistan International Affairs - The Times Of Central Asia

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Uzbekistan Seeks to Boost its Jewellery Industry

At a government meeting on June 19, plans to further develop Uzbekistan’s jewellery industry, support production and increase exports were presented to President Shavkat Mirziyoyev. Noting the country’s huge potential for increasing the production and export of jewellery, the president said that just 6 percent of the gold mined in Uzbekistan is processed, and exports of finished products from gold amount to only $78 million. He thus emphasized the importance of creating jewellery zones equipped to attract entrepreneurs, a review of supplies of raw materials to the industry, and training specialists in the field. With reference to the above, the head of state issued instructions for a program to be developed to enhance the domestic jewellery industry until 2027. The meeting also discussed piloting special jewellery centres with production, exhibition and trading areas in Tashkent and the Namangan region. The government is considering establishing, until October 1, 2026, a zero rate of customs duty and value added tax on equipment, packaging and labelling materials used, but not produced, in Uzbekistan in the jewellery industry. An additional proposal was mooted to establish a zero-customs duty rate for the export of Uzbek jewellery to the USA. In January-March 2024, Uzbekistan exported gold worth $2.66 billion. In the first quarter of the year, revenues from gold exports comprised 41.7% of the country’s total exports. In 2023, gold exports accounted for 33.4%, or $8.1 billion, of Uzbekistan’s total export volume.

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Malaysian and Chinese Companies to Aid Development of Green Energy in Uzbekistan

A cooperation agreement has been signed between Uzbekistan’s Yashil Energy, Malaysia’s Fabulous Sunview, and China’s Huawei Tech. Investment Tashkent. According to a report by the Uzbek Ministry of Energy, the agreement provides for the joint development of green energy in Uzbekistan and construction of small solar photovoltaic stations with a capacity of 50 MW on the roofs of social facilities, government agencies, and other organizations. The document was signed during the 17th International Conference and Exhibition on “Electricity Production Using Solar Photovoltaic Stations and Smart Energy” held in Shanghai from 13-15 June.

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Kazakhstan and Uzbekistan: A Partnership Born From Rivalry

Kazakhstan and Uzbekistan are the largest countries in Central Asia in terms of their economy, population, and vital infrastructure. In the first decades after the collapse of the USSR, the two republics visibly competed for regional supremacy, but this situation has changed dramatically. A Test of Sovereignty Uzbeks and Kazakhs are related Turkic peoples who have lived side by side for centuries, and, therefore, have experienced many mutual offenses from each other in their shared history. Perhaps this is the semi-official explanation for the rivalry between Tashkent and Astana during the reigns of the first presidents of these republics - Islam Karimov and Nursultan Nazarbayev. Another explanation for the struggle for leadership in Central Asia between Nazarbayev and Karimov lies in an old Kazakh proverb: "Two heads (of sheep) cannot fit in one pot." The implication is that there cannot be two leaders in one region at this level of multiple countries and personalities. Nazarbayev and Karimov, out of rivalry between the Soviet party nomenklatura, to which they both belonged, could not allow either of the other to rise. In the end, Moscow chose closer relations with Astana, which led to Tashkent withdrawing from the Collective Security Treaty Organization. Kazakh political scientist Maxim Kaznacheev has stated that this happened because Kazakhstan participated in various alliances, whilst Uzbekistan refused to do so, an indication that Tashkent had passed the sovereignty test, to the chagrin of Russia. "The ability of the government to pursue a sovereign policy should be put at the top of the list when determining a real regional leader. Uzbekistan has done better on this exam. Over the past decades, officially Tashkent has relied mainly on bilateral arrangements, avoiding active participation in multilateral integration formations," the political scientist stated. The Devil in the Details Despite these characteristics, Tashkent does not appear to have gained any advantages from this strategy, whether forced or chosen, due to a weak diplomatic corps. However, perhaps an Uzbek renaissance is yet to come. In late 2022, the Eurasian Development Bank published a report, "Central Asia's Economy: A New Look," which analyzed the prospects for interaction between Central Asian countries and the potential for the region to become a significant player in the world's economic map. According to this document, Kazakhstan remains the leading Central Asian economy, with its nominal 2021 GDP of $197.1 billion, 1.3 times the combined volume of the other four countries in the region. The report noted that by the end of 2022, Kazakhstan accounted for almost 60% of the total GDP of Central Asia. At the same time, GDP growth at the end of 2022 amounted to 3.2% compared to an average annual growth rate of 3.9% from 2010-2021. Uzbekistan is the next-largest economy in Central Asia after Kazakhstan, with a GDP of $69.2 billion in 2021, and $80.4 billion by the end of 2022. Although its nominal GDP is far smaller than Kazakhstan's, and its annual growth rate ($11 billion vs. $27 billion) does not seem to threaten Kazakhstan's...

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Eurasian Connectivity Comes One Step Closer at the 2024 CAMCA Forum in Bishkek

The wider Eurasia region took another step towards cooperation and connectivity last week, as the 10th annual CAMCA Regional Forum was held in Bishkek. CAMCA – standing for Central Asia, Mongolia, the Caucasus and Afghanistan – is an initiative to accelerate dialogue between governments, private enterprises and media figures from these ten nations. Organized by the Washington, D.C.-based Central Asia-Caucasus Institute and the Rumsfeld Foundation, this year’s Forum – the first such event to take place in Kyrgyzstan – featured over 300 delegates across its two days, and presented insights from over 70 speakers. Attendees came from 25 countries in total. Professor Frederick Starr, the Central Asia-Caucasus Institute’s chairman, used his opening address to call on the countries of the region to start preparing for a future within a cohesive international bloc. Dr Starr reasoned that Russia and China, imperial powers that have traditionally had a controlling presence in Central Asia, may see their global influence wane in the coming decade. This would give the countries of Central Asia, and their neighbors, more space to create projects that serve their economies directly. A leading CAMCA regional project is the ‘Middle Corridor’ trade route, which bypasses Russia to transport goods more efficiently between Europe and China. Discussions are also taking place concerning the creation of single business and tourist visas for the whole Central Asia region. The importance of collaboration between countries in the Caucasus and Central Asia to mitigate the impact of climate change has never been so great. Addresses by senior members of the Kyrgyz government highlighted the progress that Kyrgyzstan has made since the administration of president Sadyr Japarov began its work in 2021. The country’s deputy prime minister Edil Baisalov reported that Kyrgyzstan is on track to double its GDP to $30 billion by 2030, while the minister for digital development, Nuria Kutnaeva, spoke about the rapid digitalization of the country’s government services. In a noticeably warm and collaborative atmosphere, the event nonetheless highlighted the barriers that prevent the ten countries from forming a tangible ‘CAMCA’ space in the present. A key goal is the harmonization of their legislation and policy directions; however, no delegates from Tajikistan could travel to Bishkek for the Forum, as otherwise solid relations between Tajikistan and Kyrgyzstan are still strained by a dispute over their common border. Likewise, Armenian voices were also absent this time, in light of several of the sessions featuring Azerbaijani speakers and talking points. The event featured only one guest from Turkmenistan. Even in these conflicts, however, Central Asian diplomacy is at work. The conflict on the Kyrgyz-Tajik border, mainly in Tajikistan’s Vorukh district, is being resolved through negotiations between the two countries’ governments, which would have been unthinkable even five years ago. Meanwhile, Kazakhstan is acting as a mediator between Baku and Yerevan in the aftermath of the war in Nagorno-Karabakh. Other topics on the agenda included security priorities for Central Asia, digital innovation in business, cooperation with Afghanistan, transitions in global energy markets, and infrastructure projects...

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World Bank: Uzbekistan Must Tackle Gender Inequality

The World Bank Uzbekistan has published a new “Country Gender Assessment Report: Uzbekistan” on gender assessment in the country. This report (CGA) was produced with financial support from Great Britain. This report examines gender equality in Uzbekistan in various areas such as education, health, economic activity, protection from gender-based violence, marriage, divorce, and participation in public life. CGA examines social norms, assessing cultural attitudes and practices that affect women’s rights and understandings in Uzbek society. The report makes recommendations to close the gender gap and promote inclusive prosperity. CGA notes that since 2017, significant progress has been made in terms of gender equality in Uzbekistan. Notable achievements include the 2022 Labor Code, which provides for equal pay for women and removes job restrictions. In addition, 2023 amendments to the Criminal Code criminalize domestic violence. Consequently, the “Women, business and Rights” index released annually by the World Bank recognized Uzbekistan as one of the top five countries in terms of gender equality in 2024. Women’s access to education and health services has improved significantly. For example, during the period 2017-2022, the number of admissions to higher education institutions increased significantly, the number of men increased by three times to 29%, and the number of women increased by four times – to 27.4%. Young women face higher unemployment rates than males (15.5% vs 10%), and the share of young women who were not in employment, education, or training (NEET) has reached 42%, compared to 8.8% for males. In addition, the gender pay gap is significant, with women earning 34% less than men, which is more than the global average of 20%. Women’s low wages and employment rates directly hinder economic growth and exacerbate poverty in Uzbekistan. If women participated in the country’s economy on an equal basis with men, the national income in Uzbekistan would increase by 29%. Simply equalizing men’s and women's wages would lift more than 700,000 people out of poverty. However, gender norms, which place women primarily in charge of caregiving and household tasks, hinder progress towards gender equality and inclusive economic growth. The report states that the authorities must address gender inequality to realize Uzbekistan’s full economic potential. These include entrenched social norms that limit women’s economic participation, disparities in access to higher education in STEM fields, health care limitations, deteriorating family planning options, incomplete protection from gender-based violence, and the disparity of women in leadership roles.

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UN Approves Uzbekistan’s Initiative to Develop Global Safe Tourism Code

The initiative to create an intergovernmental commission on the development of the Global Safe Tourism Code within the framework of the participation of the delegation led by the Ambassador of Uzbekistan to Spain, Farrukh Tursunov, in the 121st session of the UN Tourism Executive Council was unanimously approved, as reported by the Dunyo news agency. The initiative was initially announced by the President Mirziyoyev at the 25th session of the UN General Assembly on tourism held in Samarkand in October 2023. As stated in the report, conflicts and instability observed in different parts of the world today hurt the development of tourism. In this regard, there is a need to develop a unified approach to ensure the safety of tourists, and the development of the proposed code is a step towards creating a safer, more sustainable, and fairer tourism ecosystem. It is expected that the code will become one of the tools for the sustainable development of tourism and include measures for environmental protection and the preservation of cultural heritage. In his speech at the session, UN Secretary General of Tourism, Zurab Pololikashvili thanked the government of Uzbekistan for its contribution to the organization’s activities and noted that Uzbekistan is the most active participant of this structure, contributing not only to the development of the global tourism industry, but also to the enhancement of the image of the UN.