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INFORMATION DIGEST OF
PRESS OF UZBEKISTAN # 151
July 30, 2014
ECONOMY
Assessing the results of the social and economic development of Uzbekistan for the first half of 2014
The global economy is changing its trends. The time when people purchased goods solely because of
their brand is over. Consumers are getting more exacting, they seek for new kinds of services, require
quality service and the utmost attention to their wishes. The solution is in the enhancement of productivity
and efficiency of business. Uzbekistan is actively moving along this way. As a result, the GDP growth rates
have made 8.1 % in the first half of 2014.
THE ROADS WE CHOOSE
Today, the world's most companies seek for new ways to optimize their production. The reduction of
production costs is likely the most obvious solution. This is the major challenge for the business.
Entrepreneurs have to make a critical choice just like epic characters. A way to the right is a simple solution
of reducing costs through attrition. However, in the future, when the market goes up, this will undoubtedly
affect a company, which will hardly deal with competitors due to the lack of staff and hence the diversity of
development strategies. Another way is more complicated and risky in financial terms, but in the future it
promises more dividends. It implies investing in human capital, search for new directions for growth,
enhancing the performance of the staff and all business units. Uzbekistan has chosen this way.
The country has refused the policy of closing bankrupt enterprises and mass discharge. Experts of
various fields, including financiers, economists, industrialists, businessmen, tax experts and researchers
jointly developed several mechanisms to support bankrupts. For example, the republic has intensified a well
proven practice of using special 'road maps' for financial recovery of each specific company and industry as
a whole.
The progress in this direction was mentioned at the last week's session of the government on its
performance in the first six months of 2014. Such maps helped 109 out of 144 unprofitable, marginally
profitable and economically insolvent enterprises out of the critical state. It was a scaled and complicated
mission with the support of the national banking sector. Banks have provided a substantial funding for
upgrade and re-equipment of above listed enterprises. Having got a 'second wind', they have manufactured
and rendered services worth 3.1 trillion soums, and exported goods worth $118 million from the start of
2014 alone. (Currency rates of CB from 30.07.2014 1$= 2332.24 soums)
Hundreds of ongoing projects in Uzbekistan are aimed at technical and technological extension of
the manufactures that are well embedded in the overall system development of the national economy. It is
important to not just upgrade a company to enable the manufacture of new articles, but approach this
holistically through developing the related industries that provide raw materials, components, establish
localization, create transport and logistics infrastructure. With this purpose Uzbekistan is running an
equipment monitoring system in different fields of the real sector. As a result, in the first six months of 2014
big industrial enterprises have updated 1,330 items of depreciated equipment, and reduced the production
costs by an average of 8.9%.
Foreign excellence and investment play a special role in these processes. Active investment policy
and measures on accelerated commissioning of pivotal modern high-tech facilities and capacities,
intensification of modernization, technical and technological extension of industries and economic sectors in
the first half of 2014 have contributed to the growth in investments by 10.8%, including direct foreign
investments - by 28.8%. 64 projects worth a total of $680 million have been completed under the
Investment Program for 2014, and 1,651 new production facilities have been commissioned as of the
beginning of the current year.
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Press Service of the MFA of the Republic of Uzbekistan
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The ongoing measures on stimulation of the domestic demand, drastic increase of the production of
consumer goods and the rapid development of the service sector has provided the increase in the production
of consumer goods by 10.8%, retail trade - 13.7% and services - by 9.7%. The share of services in gross
domestic product rose to 52.7% against 52.4% in the first half of 2013.
Export performance is one of the key indicators of progress in any real economy sector. This is
conditioned by the fact that the fight for positions in foreign markets is much more uncompromising than
inside of the country: the success is feasible only for those who draw energy efficient manufacturable
equipment, quality management systems, advanced management solutions, the right promotion strategy, and
much more.
It is the synthesis of these factors that bears the key to success - a unique combination of price and
quality that attracts customers. Uzbekistan works hard to support export initiatives of domestic enterprises.
The support is comprehensive; it allows industrialists to get assistance at various stages of the process of
delivering goods to foreign countries. For instance, the businessmen seeking to develop a foreign economic
activity are supported by specialized consulting centers with document processing, banks assist with the
replenishment of the working capital and financial guarantees, various foundations help with passing an
international certification.
There is a well proven practice of arrangement of a unified national stand at the world's largest
specialized international exhibitions, where companies can present their products to foreign consumers, find
new partners and customers. This comprehensive work has been paying off. In the first half of 2014, the
measures on stimulation of the export capacity support of enterprises, and involvement of new entities
which have not previously exported their products, have increased exports by 8% and provided a significant
positive trade balance.
PROMISING PLANS
As experts note, Uzbekistan has achieved much by means or its own model of economic
development. Meanwhile, in order not to lose its positions the country needs to maximally accelerate the
process of liberalization, especially in regard of business and government, as well as introduce market
mechanisms. First of all, this pertains to the improvement of the business environment and business
conditions. Many international organizations have avowed the country's success in this direction. For
example, according to the latest rating of the World Bank's Doing Business, the positions of Uzbekistan
have raised significantly in business and ownership registration, obtaining of building permits, loaning and
international trade. Today the country works hard on implementation of a strategic objective on maximizing
its position in this ranking.
In the first half of 2014 alone, 22 licensing procedures have been canceled, the terms of obtaining 21
licensing procedures have been reduced by 2.1 times, and license and permit processing fees for 11 kinds of
activities have been reduced by an average four times. Document processing for 31 licensing procedures has
been simplified through the cancellation of unnecessary requirements on provision of documents or
endorsement of the competent authorities. By the end of 2014 it is envisaged to shift 23 most popular kinds
of state services into online form.
It is worth to mention the role of small business in the national economy. Improved business
environment has significantly increased the contribution of entrepreneurship to the gross domestic product
growth, to the stability at the internal market, to addressing employment problems and raising people's
welfare, especially in rural areas. From January to June, the share of small business in the industry grew
from 27 to 28.4%, employment - from 75.8 to 76.4%. Small businesses bought 86 state-owned assets
totaling 25.5 billion soums, and leased 19.4 thousand idle state-owned facilities to establish small
enterprises. Banks granted 4.8 trillion soums of loans, which is 1.3 times more YOY.
The progress in the agricultural sector has played an equally important role in the country's
development: in a short time it has ensured food safety, and brought the country to foreign markets. The
progress was chiefly conditioned by modern equipment and constant urge forward in all directions - in
breeding, production of mineral fertilizers, introduction of international experience and advances in
agricultural technologies, the use of compact equipment for establishment of processing plants and much
more. In the first half of 2014, the sector ensured increase in agricultural production by 6.9%, and harvested
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Press Service of the MFA of the Republic of Uzbekistan
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a record amount of grain - more than 8 million tons. Most importantly, the country does not stop at what has
been achieved, but sets yet more ambitious plans, involving reputable international organizations. In
particular, the World Bank alone is to allocate about $460 million for projects on modernization of
horticulture in seven regions of the country, as well as restoration of degraded lands and establishment of
highly mechanized food crop production in Karakalpakstan.
In today's globalization it is sometimes hard to imagine that a single enterprise or farmer can
influence on the economic situation in the country, but as the saying goes, the great always starts with the
small. Despite thousands of entrepreneurs, hundreds of modern industries and a developed transport
infrastructure, it is important to realize that it all started with a few dozens of the initiative and the
enterprising, who decided to turn the world and ensure a worthy present and future for Uzbekistan. That is
why thousands of new jobs are annually established across the country. For instance, 506.4 thousand vacant
positions have been established as of the start of 2014, of which more than 303.2 thousand or 59.9% are
provided in rural areas. Much is being done to create comfortable living conditions. In the first half of 2014,
4,486 standard design houses have been commissioned in new rural housing arrays out of 11,000 houses
scheduled for the current year. Financed by over 3.1 trillion soums from all sources under the national
program the Year of the Healthy Child, certain measures are being taken to ensure the protection of
motherhood and childhood, improve the quality of education, intensify the involvement of young people in
physical education and sports.
Most importantly, the progress of the development strategy of the country's economy has been built
not by faceless figures, but by hundreds of thousands of human lives. Today, many people across the
country are happy to be able to build a house, buy a car, get married, find a new job. The purchase of longterm things demonstrates that the population believes in the future of its country, and is ready to contribute
to its present, experts say.
(Source: “Uzbekistan Today” newspaper)
Chemical industry of Uzbekistan since the beginning of the year manufactured products worth 995.3
billion Soums
Today chemical industry of Uzbekistan is one of the fastest growing industries. Produced chemicals,
such as nitric, phosphoric and potash fertilizers, soda ash, acetic acid, sodium chlorate, sodium cyanide,
nitric acid and others cover the needs of domestic market and the markets of neighboring Central Asian
countries.
According to SJSC "Uzkimyosanoat", during the first half of 2014 the enterprises of the company
manufactured products worth 995,3 billion Soums, the growth rate against the same period of 2013 made up
103,6%. The volume of produced consumer goods made up 91.3 billion Soums. (Currency rates of CB from
30.07.2014 1$= 2332.24 soums)
In addition the production of mineral fertilizers reached 589.68 thousand tons, including:
- nitric fertilizers – 466.87 thousand tons;
- phosphoric fertilizers – 76.44 thousand tons;
- potash fertilizers – 46.37 thousand tons.
According to the Localization Program, produced goods in January-June 2014 reached 69.7 billion
Soums while the forecast was 14.8 billion Soums.
Within the scope of Investment program, the enterprises of Uzkimyosanoat have realized
investments worth $35.56 million.
During the six months of the reporting period 321 new working places have been created.
(Source: UzReport.uz)
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SOCIETY
Uzbekistan post has issued a new series of stamps
New series of "Sports on stamps of Uzbekistan” was prepared and put into circulation in July 2014,
Uzbekistan post said.
The Release of postage stamps with the picture of Taekwondo fighting athletes is dedicated to the
XVII Summer Asian games in Korea.
The print of stamp is multicolor with perforation comb, and 42x33 mm size.
The JSC Uzbekistan post is authorized to issue the stamps, and the State Committee on
Communication, Informatization and Information Technologies will deal with their circulation.
(Source: UzReport.uz)
EXHIBITIONS
What Lies Beneath the Ancient Civilization
An exhibition titled 'Material Culture of the 6th-9th centuries CE of Karshaultepa' is staged at the
Ikuo Hirayama International Caravan Serai of Culture (ICSC in Tashkent) of the Academy of Arts of
Uzbekistan.
Several dozen artifacts found during the 2014 Spring-Summer field season excavations of the ICSC
archaeological expedition, including the discoveries of previous years, were presented at the exhibition.
Karshaultepa Hillfort is located 40 km off Tashkent, in Chinoz District of Tashkent Region, within
the land of Dustlik farm. Its square is over six hectares. Numismatic and other artifacts found here show that
main and latest settlement in Karshaultepa dates back to the 6th to 9th centuries. It may happen that there
were earlier settlements. Finds from the nearest ancient necropolis is the circumstantial evidence of this fact.
In it arrowheads dating back to the 2 and 3 centuries are found.
Among the discoveries there are coins with the name of the ruler Tarnavcha featuring a camel, horse
and a predator. ,
Nestorian pectoral cross and a ceramic jug with crosses scratched on the handles have become
sensational fids. Such facts are rare and at the Tashkent Region have not seen before. One may suggest that
Karshaul might have been the residence of Nestorian Christians' community, as well as representatives of
the Zoroastrian community, as it is known by other artifacts.
Among other unique finds, there are coins and seal with the inscription of the name of 'Bago-Farn' in
the Sogdian language. Apparently, this region was at that period in the confederation that stretched over vast
territories in which the Sogdian language was the language of communication.
In the cultural layers discovered silver Dirham dating back to the reign of Amir Temur and the
Temurids during the 14th-15th centuries, which appeared here, when the settlement ceased to exist.
"In the last field season we focused on architectural monuments," says the archaeologist Konstantin
Sheiko, head of the museum department and leader of the expedition and excavation of the ICSC. “This was
a gate, tower, hill outside settlements, where we continued the excavation of the necropolis. Perhaps,
identified architectural structures represent the ruins of a temple of ancestral worship.”
Similar excavations were made by the archaeologist M.Filanovich in city of Tashkent, stating in her
writings on the existence of such facilities in Tashkent Region as well.
Archaeological Expedition of International Caravan Serai of Culture conducts excavations on the
Karshaultepa site for third field season.
This monument has become a basic for master classes also, which are held with the participation of
Uzbek and Japanese experts.
(Source: “Uzbekistan Today” newspaper)
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Press Service of the MFA of the Republic of Uzbekistan
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