He names several problems that hinder export development.
On August 19, President of Uzbekistan Shavkat Mirziyoyev signed a decree "On additional measures to develop the export and investment potential of the republic". This fact became a reason for the CentralAsia.news to ask the expert about the export potential of the state.
Recently our news agency has published an article on the economy of Uzbekistan. It slightly touched upon the relevant topic. However, several readers considered publication politicized. The economy of Uzbekistan is not as good as in the Benelux countries, but the government has taken effective steps to develop it.
Taking into account the public opinion, the editorial office asked the independent expert Yevgeny Kudryats to assess the export potential of Uzbekistan.
The official path towards export
The interviewee spoke about not only the corresponding decree but also about the intention of the Uzbek authorities to optimize domestic legislation to eliminate obstacles and solve issues in the export direction.
Kudryats also noted that high-ranking officials will tighter control the implementation of roadmaps by the authorities of the regions and cities of Uzbekistan.
- The government commission will also monitor the implementation of protocols and roadmaps adopted following the president's visits to the regions, signed during high-level visits, as well as a part of cooperation with international financial institutions, - said the expert.
He added that such acts of the republic's leadership demonstrate a confident intention to increase exports not only to the CIS countries but also to non-CIS countries.
What makes Uzbekistan attractive to other states?
The main trading partner of the republic is China. The volume of trade turnover in 2019 increased and amounted to 7.6 billion dollars. The second main partner is Russia with 6.6 billion dollars. Kazakhstan is in third place - 3.3 billion dollars.
According to the expert, goods occupy 80.1% of the export structure.
- The first place is occupied by precious metals, including silver - 28.2%. Then it is energy carriers and oil products - 14.1%, textiles - 9.1%, food products - 8.5%, - noted Kudryats.
He highlighted that some analysts strongly believe that the republic has macroeconomic stability, which, with ongoing reforms, creates opportunities in various sectors of the economy, in particular in financial services, construction, or tourism.
The expert named the main factors that increase the interest of potential investors in the republic:
- rich and diversified natural resources (gas, gold, cotton, hydropower resource basis);
- socio-political, macroeconomic and financial stability;
- relatively low level of public debt and comfortable foreign exchange reserves;
- ambitious state investment program;
- large capacity of the domestic market with a population of 34 million;
- strategic geographic location between China and Europe.
From the point of the whole picture, the investment climate in the country becomes more attractive, said the expert. In his opinion, the authorities understand the existing problems and try to eliminate them. Moreover, that attracts foreign investors.
"Disinterested" officials
The president's meetings are always full of reproaches to officials about their unwillingness to increase export potential. The expert marks that the strategic tasks set by the head of the republic are fulfilled extremely slowly. Officials seem not to have any interest in such work.
- This problem exists not only in Uzbekistan but also in other Post-Soviet states. All the officials should be interested in the effective implementation of the assigned tasks, and stop just sitting around, - Kudryats described the situation.
According to the expert, the second problem that hinders the process of export development and destroys society is corruption. Kudryats underlined that the anti-corruption battle is not carried out very effectively and regularly.
Yevgeny Kudryats emphasized that the authorities need to change their approach to work. Activities should not be based on fear of the head of the state. Officials should be guided by a sense of responsibility and decency. However, there are still few such state workers in the republic, marked the interviewee.
