KNOWLEDGE ECONOMY
BKE 2614.Year 2008
~UZBEKISTAN~
PRESENTED BY:
TAN WENN YIT
MICHELE CHANG YEN LING
BURHAN ADLI BIN YUSOFF
GOH YUE RUI
WONG NGIE JOONG
LOW AI LIN
NIK SAUFI BIN NIK MURAD
MUHAMMAD ZUHRI BIN HAMDAN
CHEE SUET LENG
YIN SHAO HUAY
1061102248
1061102233
1061102507
1061102305
1061102103
1061102202
1061102534
1061102460
1041111312
1041111306
INTRODUCTION
UZBEKISTAN
UZBEKISTAN
Formal Name:
Republic of Uzbekisten
(Ozbekistan Respublikasi)
Capital: Tashkent
A dry, landlocked country
of which 11% consists of
intensely cultivated,
irrigated river valleys.
INTRODUCTION TO
UZBEKISTAN
ECONOMY
Primarily on agriculture
Relies mainly on commodity production :
cotton, gold, uranium, and natural gas.
 Cotton:
- world 2nd largest exporter
- 5th largest producer
- major source of export earnings
 Gold:
- major producer of gold
- largest open-pit gold mine in the world.
 Ranking :
113th out of 177 countries in HDI
(Human Development Index)


INDICATORS
Uzbekistan
UK
Birth rate (per 1000 people)
26.45
10.65
Death rate (per 1000 people)
7.62
10.05
Net migration rate (per 1000 people)
-1.3
2.17
67.78
4.93
65.38 years
78.85
Literacy
(age 15 and over can read and write)
99.3%
99%
Unemployment rate
0.8%
5.4%
Population below poverty line
33%
14%
28,268,440
60,943,912
Socio-Political Indicators
Infant mortality rate
(death per 1000 live births)
Life expectancy at birth
Total population
Uzbekistan
UK
GDP- real growth rate
(total GDP/no of population)
9.5%
3.1%
GDP- per capita
$2300
$35100
GDP Composition by sector
 Agriculture
 Industry
 Services
29.4%
33.1%
37.4%
0.9%
23.4%
75.7%
Inflation rate (consumer prices)
12.3% officially
2.3%
Info-Structural Indicators
Uzbekistan
UK
Telephone- main lines in use
1.793 million
33.602 million
Telephone- mobile cellular
5.8 million
69.657 million
Internet users
1.7 million
33.534 million
Economic Indicators
FEATURES OF
KNOWLEDGE
ECONOMY
ICT
Definition: Includes all technology for the
manipulation and communication of
information
 A revolutionary vehicle or tool
 Communication, information and knowledge
distribution = easier, faster, cheaper
 Global village

Allocation of Resources
Efficient production relies on information and
knowledge components
 Greater importance is placed on knowledge
sector (higher productivity) than agricultural
sector (low productivity)
 Higher productivity = Higher returns

Increasing Return
Knowledge workers as key production factor
 Reducing production costs, increasing
productivity and yields higher return
 Advancement of ICT eliminates distance costs
 Economies of scales (EOS)

Constant Demand for Knowledge
Workers
Firm’s source of competitive advantage
 Essential for the growth of the K-Economy
 Why?

◦
◦
◦
◦
Productivity higher
Reducing costs, increasing return and profit
Adds value and wealth creation
Producing knowledge goods and services
Knowledge Production, Distribution
and Management
Upgraded
Created /
produced
Knowledge
Disseminated
Managed
efficiently &
effectively
Combined
Dominant Role of Service Sector
Service sector drives K-Economy
 Examples: Health, education, business, etc.
 Combination of advancement of ICT and
knowledge components enlarge its size
 New knowledge is generated

Globalization
Emergence of a collaborative and competitive
global economy
 Markets are globalizing rapidly
 No boundaries
 Idea-driven innovation cycles are crucial
 ICT makes all markets interconnected and
more competitive

CHALLENGES
Geography

Topography
◦ Land use– 80% desert
◦ Environmental factors
 Inadequate sewage disposal
 Soil contamination
Transportation &
Telecommunications

Landlocked
◦ Hard to reach high seas

Internet
◦ Prices to access is high
Government & Politics
Lack independence judicial and legal system
 Abuse of power
 Freedom of press refrained

Society

Education & Literacy
◦ Lack of budgetary support
◦ Private school are forbidden

Health
◦ Entitlement to free medical attention affected
by bribery
◦ Insufficient medical supplies
◦ HIV, drug abuse
Economy

Labor Market Risk
◦
◦
◦
◦

Insufficient training
Lowly paid wages
Not able to meet market demands
Limited jobs in private sector
60% rural area
◦ Agriculture cannot develop
National Security

Tension with neighboring countries
◦ Kyrgyzstan
◦ Tajikistan

Terrorist activities
RECOMMENDATIONS

Lean towards a more democratic system
- independent judicial and legal system,
more privatizations,
lesser government control, etc…

Improve network and telecommunication
- Lessen internet and telecommunication control,
increase line of communication,
increase technology, etc…

Improve international connection
- more communication with outsider,
more treaty, etc…
 Improve
education system.
- Reformation,
early education system,
post-graduate education, etc…
 Research
& Development.
- Research old problems,
develop new solutions,
improve service sectors, lands, etc…
CONCLUSION
Need to improve the country system.
 Accept international connection.
 Knowledge must be disseminated throughout
the country.
 To emerge as a knowledge based economy.

THE END
~THANK YOU~