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Uzbekistan: Country Report
In September 2015, Uzbekistan celebrated 24 years of independence. Ever
since gaining status of an independent nation, Uzbek government has
continually and cautiously stated its commitment to a gradual transition to a
free market economy. The government has had success in narrowing the
gap between the black market and the official exchange rate, but its
restrictive trade regime has hindered progress. Within the past several
years, Uzbekistan has set a course for towards opening its economy to the
West and doing business with the international community. Currently, some
of the most pressing concerns for the country include abuses of human
rights and democratization, and terrorism by Islamic militants. Uzbekistan
had been ruled by strongman Islam Karimov until his death in September of
2016. He was replaced by long term Prime Minister Shavkat Mirziyoyev.
Fig.1 – Map of Uzbekistan
Fig.2 – The national flag of Uzbekistan
Economic Indicators:
 In 2015, Uzbekistan’s estimated GDP per capita (PPP) is $6100.1 The same
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year, the Uzbek government reported 6.8% of annual growth, attributed
primarily to favorable export environment and state-led investment.2
In 2015, the official unemployment rate was 4.8%, which ranks the
country as 47th in the world.3
Of the whole Central Asian region, Uzbekistan possesses 74% of all
condensed gas, 31% of oil, 40% of natural gas and 55% of coal deposits.
Globally, the country is among the top ten natural gas producers.
Uzbekistan is also a major producer of gold, boasting the world’s largest
open-pit gold mine.4
Growing natural gas and oil industries are among the most prominent
sectors in Uzbekistan. Approximately 40% of the country’s foreign
exchange earnings are generated from exports of hydrocarbons, including
natural gas and petroleum.5
Uzbekistan is also a major agricultural exporter, and is currently the
world’s fifth largest cotton exporter and sixth largest producer.6 In recent
years, rapid increase in cotton price greatly benefited the industry.
Republic of Uzbekistan and the IMF.( http://www.imf.org/external/country/UZB/index.htm)
CIA World Factbook. Economy. (https://www.cia.gov/library/publications/the-world-factbook/geos/uz.html)
Ibid.
Wikipedia: “Economy of Uzbekistan” (http://en.wikipedia.org/wiki/Economy_of_Uzbekistan)
CIA World Factbook, Economy <https://www.cia.gov/library/publications/the-world-factbook/geos/uz.html>
Ibid.
Economic Structure:
 Uzbekistan’s economy is centered on commodity production (natural
resources) such as cotton, gold, natural gas, and petroleum.
 In 2015, 18.8% of the country’s GDP was composed of agriculture, 33.7%
of industry and 47.5% of services.7
 Import substitution is the officially embraced policy of Uzbek government.
Despite economic liberalization, after independence, certain elements of a
planned economic system still remain in place. Uzbekistan has a centrally
planned economic structure since most of its production and employment
are controlled by the state sector. Furthermore, all health, education, and
social welfare services are provided by the government.
 Cotton is Uzbekistan's dominant crop. In 2012, cotton production
accounted for roughly 16% of the country's GDP. Uzbekistan is the world’s
ninth-largest producer of gold; it also produces significant amounts of silk,
fruit, and vegetables. Despite the importance of the agricultural sector,
natural resources, especially natural gas, are becoming most prominent
foreign exchange earner (approx 24% in 2010).8
 Uzbekistan has traditional economic ties with Russia, Ukraine and
Kazakhstan. However, importance of non-CIS partnerships has been on
the rise. South Korea, European Union, China, Germany, Japan and Turkey
are becoming more active in the country.9
Political Considerations:
 Uzbekistan is divided into 12 provinces, 1 autonomous republic
(Karakalpakstan), and 1 independent city of Tashkent - the capital.
Additionally, there are four Uzbek exclaves surrounded by Kyrgyz territory
in the Fergana valley region.
 The governmental structure of Uzbekistanis is comprised of executive,
legislative and judicial branches, with the most power concentrated in the
executive branch. Uzbekistan’s president is elected by a popular vote
every five years. Islom Karimov served as the country’s president ever
since independence. Current governmental type of Uzbekistan is classified
as authoritarian presidential rule.
 The United States and Uzbekistan have begun rebuilding mutual trust
since mid-2007 while focusing on issues relating to security, economy, as
well as political and civil society.10
Ibid.
Department of State, <http://www.state.gov/r/pa/ei/bgn/2924.htm#econ>
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CIA World Factbook, Economy <https://www.cia.gov/library/publications/the-world-factbook/geos/uz.html>
10
Ibid
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Environmental Concerns:
 Unsustainable development practices, utilized during the years of the
Soviet Union, resulted in heavy environmental degradation. Some of the
unsustainable practices, which continue to cause serious health and
environmental problems, include heavy use of agrochemicals, unbalanced
diversion of irrigation water and the chronic lack of water treatment
plants.
 Desiccation and salinization of the Aral Sea, which produced loss of plant
and animal life, is the most prominent example of environmental
degradation caused by Soviet practices.
Demographics and Education:
 Uzbekistan’s population is approximately 29,199,942 as of 2015. It is the
most populous country in Central Asia. Population still remains heavily
rural and relies on farming as the primary source of livelihood. Uzbekistan
has a comparatively low percentage of urban population, only 36.4%. The
estimated annual rate of urbanization is 1.45% (2010-2015). Contrary to
current global trends, Uzbekistan is experiencing a trend of the urban
population moving back into rural areas.
 Approximately 80% Uzbekistan’s population is ethnically Uzbek.
Prominent ethnic minority groups include Russians (who continue to
emigrate), Tajiks, Kazakhs, Karakalpaks, and Tatars.11
 The average life expectancy at birth is 73.55 years. In 2015, the
population growth rate was 0.93%.12
Education:
 In 2015, Uzbekistan’s adult literacy rate was 99.6%.13
 Education through secondary school is mandatory and free. All citizens
enjoy the right to compete for free educational opportunities in the
country’s higher education institutions. On average, all children are
expected to be in school for approximately 11.5 years.14
Acknowledgements:
Research and Data Development Provided by: Meagan Pace and Kateryna Botsu, Research
Assistants, under the supervision and coordination of: Dr. Gerard J. Janco, President,
Eurasia Center/EBC. Updated by research assistant Jared Martin.
Ibid.
Ibid.
13
UNDP. Uzbekistan – Country Profile of human development indicators.
<http://hdrstats.undp.org/en/countries/profiles/UZB.html>
14
Ibid.
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