UZBEKISTAN

Republic of Uzbekistan

Uzbekiston Respublikasi

CAPITAL: Tashkent (Toshkent)

FLAG: Horizontal bands of blue (top), white, and green separated by narrow red bands; white crescent moon and twelve stars on the blue band.

ANTHEM: n/a

MONETARY UNIT: The som (som) is the official currency, introduced when Uzbekistan left the ruble zone in November 1993. som1 = $0.00090 (or $1 = som1,114.17) as of 2005.

WEIGHTS AND MEASURES: The metric system is used.

HOLIDAYS: Independence Day, 1 September.

TIME: 5 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Uzbekistan is located in central Asia bordering the Aral Sea, between Kazakhstan and Turkmenistan. Comparatively, it is slightly larger than the state of California, with a total area of 447,400 sq km (172,742 sq mi). Uzbekistan shares boundaries with Kazakhstan on the n, Kyrgyzstan and Tajikistan on the e, Afghanistan on the s, and Turkmenistan on the sw. Uzbekistan's boundary length totals 6,221 km (3,866 mi). Its capital city, Tashkent, is located in the eastern part of the country.

TOPOGRAPHY

Uzbekistan consists of mostly flat to rolling sandy desert with dunes. The Fergana Valley lies in the east surrounded by the Tian Shan mountains of Tajikistan and Kyrgyzstan. The Alai mountains lie to the extreme southeast. The highest point in the country is Adelunga Toghi, at an elevation of 4,301 meters (14,111 feet). The lowest point is Sariqarnish Kuli, which dips to 12 meters (39 feet) below sea level. The country is located in a seismically active region along the Eurasian Tectonic Plate, resulting in frequent earthquakes.

The Kyzyl Kum desert covers most of the interior of the country. With an area of about 297,850 square kilometers (115,000 square miles), it is the largest desert region in Central Asia and the ninth-largest in the world. In the northwest, the Aral Sea is shared with Kazakhstan. Covering area of about 64,500 square kilometers (24,900 square miles), it is the largest lake in the country and the fourth-largest lake in the world. The longest river in the country is the Amu Dar'ya, which has a total length of 2,540 kilometers (1,580 miles), only a portion of which runs through Uzbekistan.

CLIMATE

The climate is mid-latitude climatic desert. Temperatures range from 26° to 32°c (79° to 90°f) in the summer, with much higher figures in the desert. Average winter temperatures are between -6° and 2°c (21° to 36°f). There is very little rainfall in the country. The best watered areas only receive about 30 cm (12 in) annually.

FLORA AND FAUNA

Ecological damage has left much of the country devoid of animal life. Bird species include a variety of warblers, eagles, owls, buzzards, heron, ducks, and larks. Mammals include wolves, elk, hedgehogs, squirrels, and weasels. Leopards and wildcats can be found in some forested areas. As of 2002, there were at least 97 species of mammals, 203 species of birds, and over 4,800 species of plants throughout the country.

ENVIRONMENT

Uzbekistan's main environmental problems are soil salinity, land pollution, and water pollution. In 1992, Uzbekistan had the world's 27th highest level of carbon dioxide emissions, which totaled 123.5 million metric tons, a per capita level of 5.75 metric tons. In 2000, the total of carbon dioxide emissions was at 118.6 million metric tons. Chemicals used in farming, such as DDT, contribute to the pollution of the soil. Desertification is a continuing concern.

The nation's forestlands has also been threatened. Between 1990–1995, deforestation occurred at an annual average rate of 2.65%. However, reforestation efforts have begun as of the late 1990s.

The country's water supply also suffers from toxic chemical pollutants from industrial activity as well as fertilizers and pesticides. Uzbekistan has 16 cu km of renewable water resources, with 94% of annual withdrawals used for farming and 2% used for industrial purposes. The nation's cities produce an average of 45.8 million tons of solid waste per year.

The draining and evaporation of the Aral Sea has been considered one of the worst ecological disasters in the world. Irrigation withdrawals from the Amu Darya and Syr Darya rivers have been a major cause of lake shrinkage. As a result, pesticides and natural salts in its water have become increasingly concentrated so that plant and wildlife habitats have been destroyed. As of 2002, the area of the Aral Sa was reported to cover less than half the size of the original basin.

As of 2003, only 2% of Uzbekistan's total land area is protected. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 7 types of mammals, 16 species of birds, 2 types of reptiles, 4 species of fish, 1 species of invertebrate, and 1 species of plant. Threatened or rare species include the markhor, Central Asia cobra, Aral salmon, slender-billed curlew, and Asiatic wild dog. The Jeseter hladky has become extinct.

POPULATION

The population of Uzbekistan in 2005 was estimated by the United Nations (UN) at 26,444,000, which placed it at number 43 in population among the 193 nations of the world. In 2005, approximately 5% of the population was over 65 years of age, with another 35% of the population under 15 years of age. There were 99 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 1.6%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 33,851,000. The overall population density was 59 per sq km (153 per sq mi), with the population being most dense in the Fergana Valley.

The UN estimated that 37% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.38%. The capital city, Tashkent (Toshkent), had a population of 2,155,000 in that year. Samarqand (Samarkand) had a population of about 374,900.

MIGRATION

Emigration to other former USSR republics exceeded immigration by 328,200 during 1979–90. In 1991, an estimated 400,000 Russians departed from Uzbekistan. As of 1996, 250,000 Crimean Tatars had left Central Asia for the Ukraine; most of these Tatars were from Uzbekistan. In 1999, there were an estimated 30,000 Tajik refugees and 8,000 Afghan refugees living in Uzbekistan; however, only 1,135 refugees and asylum seekers were registered with the United Nations High Commissioner for Refugees (UNHCR). Until 1999, refugees and asylum seekers were assigned no special status and were considered ordinary foreigners. However, in 1999 the government completed a draft of the Migration Law, which passed the Cabinet of Ministers. In 2000 there were 1,367,000 migrants living in Uzbekistan, including the remaining refugees. In 2004 there were 44,455 refugees, mainly from Tajikistan and Afghanistan, and 477 asylum seekers. In that same year, some 450 Uzbekistani sought asylum in Sweden and the United States. In 2005, the net migration rate was estimated as -1.16 migrants per 1,000 population The government views the emigration level as too high, but the immigration level as satisfactory.

ETHNIC GROUPS

According to the last official estimates (1996), about 80% of the population was Uzbek. Russians constituted 5.5%, Tajiks made up 5%, Kazakhs accounted for 3%, Karakalpaks for 2.5%, Tatars 1.5%, and others 2.5%. There are also small numbers of ethnic Koreans, Meskhetian Turks, Germans, and Greeks.

LANGUAGES

Uzbek, the state language, was the most widely spoken non-Slavic tongue in the USSR. It is a Turkic language with six vowels—virtually identical to those of Tajik, which has surely influenced it—rather than the original eight or nine. In 1993, it was decided that the language would be written in the Roman (Latin) alphabet rather than in the Cyrillic alphabet. Uzbek is spoken by about 74.3% of the population in Uzbekistan; Russian is spoken by 14.2%, Tajik by 4.4%, and other various languages by 7.1%.

RELIGIONS

Ethnic Uzbeks are primarily adherents of the Hanafi sect of Sunni Islam, but the Wahhabi sect has flourished as well in recent years. Muslims account for about 88% of the population; Eastern Orthodox Christians account for about 9%; and others for 3%. In 2002 Uzbekistan had a significant Jewish population of about 20,000 Ashkenazi and Bukharan Jews, primarily in the cities of Tashkent, Bukhoro (Bukhara), and Samarqand (Samarkand). Almost 80,000 Jews have emigrated to Israel or the United States since independence. Minority religions listed as "other" include small communities of Korean Christians, Baptists, Roman Catholics, Lutherans, Seventh-Day Adventists, Evangelical and Pentecostal Christians, Buddhists, Baha'is, and Hare Krishnas.

Freedom of religion is guaranteed under the constitution of 1992 and there is a specific provision prohibiting the establishment of any state religion. However, the government has placed some restrictions on religious freedom. Proselytizing is prohibited by law. All religious groups must register with the government, but the government has placed strict criteria on the registration process and rejects applications on minor technicalities. For instance, a group must have a valid legal address in order to register, yet many smaller groups do not have such an office. Religious services conducted by unregistered groups are considered to be illegal. All religious literature is subject to censor by the government.

TRANSPORTATION

As of 2004, Uzbekistan had some 3,950 km (2,453 mi) of railroad track in common carrier service (not including industrial lines), all of it broad gauge. Separate lines serve eastern and western regions. In 2002, there were also 81,600 km (50,706 mi) of highways, of which 71,237 km (44,227 mi) are hard-surfaced. As a doubly landlocked nation, there is no direct connection to the open sea. The closest route to the sea is to the south through Termiz on the Afghanistan border. Conflict in Afghanistan blocks this route. The Zeravshan River is the largest inland waterway. In 2004, the country had 1,100 km (684 mi) of navigable inland waterways. Uzbekistan had an estimated 226 airports in 2004, of which 33 had paved runways as of 2005. In 2003, a total of 1.466 million passengers were carried on scheduled domestic and international airline flights.

HISTORY

Some parts of present-day Uzbekistan have been inhabited since the Paleolithic era. The first states in the region were Khwarazm, Bactria, Sogdiana, and the Parthian Empire, in the first millennium bc. The territory was consolidated under the Achaemenids in the 6th century bc, until it was conquered by Alexander the Great, 329–327 bc. The Greeks were displaced by the Tochari in the 3rd century bc. From the 1st century bc to the 4th century ad Uzbekistan was part of the Kushana Kingdom. This in turn was replaced by the Ephthalite state.

In the 6th century the area was part of the West Turkic Kaganate, a loose confederation of largely nomadic tribes. By the 8th century the region was conquered by the Arabs, who introduced Islam. The Ummayid dynasty was displaced by the Abbasids in 747–750. In the 9th century the Samanids took control of most of Central Asia, including Uzbekistan. Turkic tribes again began to push into the area from the east in the 10th century, eventually forming the Karakhanid state. A lesser part of that state, Khwarazm, grew more powerful in the 12th century and came to dominate most of Central Asia.

Genghiz Khan's Mongols invaded in 1219, conquering all of Central Asia by 1221. In 1224 Genghiz Khan's son Chagatai was made ruler of this area. As Chingisid influence waned, Timur (Tamerlane, 1336–1405) established an empire in Samarqand (Samarkand). Upon his death it split into Khorasan, ruled by his son Shah Rukh, and Maweranahr, ruled by his grandson, Ulgh Beg. Although Timur is now claimed as the father of the modern Uzbeks, more likely candidates are the Sheibanid, nomadic Uzbeks who fought to take the area in the early 16th century. They settled among the other populations and became farmers, making Bukhoro (Bukhara) their capital.

In the 16th century Khwarazm, Balkh, and Khiva separated from Bukhara, becoming separate principalities. Bukhara was conquered by Persia in 1740, but sovereignty was retaken soon after by the Mangyt dynasty, which ruled until 1920. In the early 19th century the Kokand Khanate grew powerful in the eastern part of present-day Uzbekistan.

Russia had begun trading with Bukhara, Khiva, and Kokand in the 18th century. Concern about British expansion in India and Afghanistan led eventually to Russian conquest, which began in the 1860s and ended in the 1880s, when Uzbekistan became part of Turkestan guberniia, with Bukhara and Khiva administered as separate emirates under Russian protection.

In 1916 Tsar Nicholas II issued a call for Central Asian males to be drafted into labor battalions. This sparked resistance throughout the region, including in Uzbekistan, which was violently repressed. During the conflict from 1917–20, Uzbekistan was the site of competing attempts to create governments; the Bolsheviks announced a short-lived Turkestan Autonomous Republic, while a Muslim Congress also attempted an Autonomous Government of Turkestan. Red Army forces intervened savagely, but armed resistance continued as late as 1924, in the so-called Basmachi Rebellion.

The Uzbek Soviet Socialist Republic was created in 1925. In 1929, Tajikistan, which had been an administrative sub-unit, was elevated to full republic status, changing the boundaries. They were changed once again in 1936.

Under the leadership of long-time leader S. Rashidov, Uzbekistan was politically conservative during the 1970s and early 1980s. The republic was targeted for anticorruption purges in the mid-1980s, when considerable fraud in the cotton industry was discovered. The leader as of 2003, Islam Karimov, was appointed by Moscow in 1989.

In March 1990, Karimov was elected to the newly created post of president by the Uzbek Supreme Soviet. Uzbekistan declared independence on 1 September 1991, in the aftermath of the abortive Moscow coup of 19–21 August. Karimov's presidency was reaffirmed in an election in December 1991. Since then, however, Karimov has been increasingly hostile to even the most basic tenets of democracy. True opposition parties were banned in 1992 and political reformers have been jailed or have fled the country. Parliamentary elections to the 250-seat Majlis were held on 24 December 1994 and 15 January 1995, with 231 seats going to Karimov's People's Democratic Party—the former Uzbek Communist Party. Following the elections, President Karimov held a referendum that extended his presidency until 2000 which was allegedly approved by 99% of voters.

Despite his antidemocratic leanings, Karimov received little criticism from the West or from Russia (which, in fact, supplies him with ample military backing) since he had been seen as a buffer against the fundamentalist Muslim political and revolutionary movements in Central Asia—notably those in Afghanistan and in neighboring Tajikistan. In fact, Uzbekistan had supplied arms to the secular factions in both countries' civil wars.

The Islamic Movement of Uzbekistan (IMU), a radical Islamic organization seeking to establish an Islamic state in Central Asia, has long been operational in Uzbekistan. In February 1999, five car bombs in Tashkent were attributed to the IMU by Karimov, who accused the group of attempting to assassinate him and destabilize the country. The IMU broadcast a declaration of jihad from a radio station in Iran, and demanded the resignation of the Uzbek leadership. That year, IMU fighters operating from mountain hideouts launched a several-year series of engagements with government forces. Militants also took foreigners hostage in 1999 and 2000, including four US citizens who were mountain climbing in August 2000, and four Japanese geologists and eight Kyrgyzstani soldiers in August 1999. IMU military leader Juma Namangani apparently was killed during a US-led air strike in Afghanistan in November 2001. In addition to the IMU, the Hizb-ut-Tahrir ("Freedom Party"), another radical Islamic organization, operates in the country, although, unlike the IMU, it does not use violent tactics to pursue its goals. Following the 11 September 2001 terrorist attacks on the United States, and its subsequent military campaign in Afghanistan to oust the Taliban regime and al-Qaeda forces, all radical Islamic groups in the Central Asian nations were linked by most governments to terrorism.

Uzbekistan offered its airbases to the US-led coalition for its campaign in Afghanistan beginning in October 2001. In response, the United States provided the country with $60 million for 2002, in addition to a one-time contribution of $100 million. In March 2002, the United States and Uzbekistan signed a Declaration on Strategic Partnership and Cooperation Framework, in which both countries agreed to cooperate on economic, legal, humanitarian, and nuclear proliferation matters. In April 2004, the European Bank for Reconstruction and Development announced its decision to limit investment in Uzbekistan, citing the government's lack of progress on democratic and economic reform benchmarks established one year earlier. Similarly, in July, the United States suspended $18 million of the $55 million originally earmarked for Uzbekistan in 2004. The decision was based on the 2002 Strategic Partnership and Cooperation Framework, which makes US assistance to the Uzbek government conditional on Tashkent's introduction of meaningful political reforms and curbs in human rights abuses.

On 27 January 2002, Karimov held another referendum to prolong his presidential term from 5 to 7 years, effectively keeping himself in power until 2007. The US Department of State refused to send election observers, arguing there had to be a "free and fair" presidential election before a referendum was valid.

In April 2003, parliament adopted legislation providing former presidents immunity from prosecution and lifelong state-funded security for them and their immediate family. Parliamentary elections in 2004, consisting of only parties which support the Karimov, resulted in the Liberal Democratic Party of Uzbekistan taking 41 seats, the People's Democratic Party with 32 seats, the Fidokorlar National Democratic Party with 17 seats, Democratic National Rebirth Party with 11 seats, the Adolat Social Democratic Party with 9 seats and 10 seats given to independents. The next parliamentary elections were scheduled for December 2009.

On 13 May 2005, unrest in Uzbekistan resulted in Uzbek troops firing on a crowd of protestors in the city of Anjian, killing between 500 to 1000 people. Although protests had been growing in size throughout 2004–05, never before had so many been killed. This incident has become known as the Anjian Massacre. The government, including president Karimov, stated it had acted in defense of its citizens as the protestors had stormed a military garrison and prison in the city seizing weapons and releasing around 4,000 prisoners on 12 May.

GOVERNMENT

The state constitution adopted on 8 December 1992 mandates a civil democratic society. The executive branch consists of the president and his appointed prime minister and Cabinet of Ministers. During the Soviet years, the legislative branch consisted of a unicameral Supreme Soviet of 150 seats. The judicial branch is appointed by the president, subject to legislative confirmation, for 5- and 10-year terms. The Supreme Assembly is now bicameral. It consists of an Upper House or Senate with 100 seats and a Lower House or Legislative Chamber with 120 seats. The last elections were held on 26 December 2004 and 9 January 2005 with the next elections scheduled for 2009. Not all of the seats in the Supreme Assembly election were contested, and all parties in the Assembly support President Islam Karimov. In 1992, President Karimov banned opposition parties. The president is the head of state and has responsibility for the functioning of the other branches of government as well as for making sure the constitution is observed. He essentially rules by decree. Karimov held referendums extending his presidency in 1995 and 2002, taking 92% of the vote in 2002. The president is elected for a seven-year term. The next presidential election was to be held in 2007.

POLITICAL PARTIES

In the Soviet period, the only legal political party was the Communist Party. As Soviet control began to disintegrate in 1989–90, a number of mass-based "informal organizations" appeared which grew to be the equivalents of parties, although not all were legally registered. The largest, claiming as many as 100,000 members, was Birlik (Unity), founded by Abdurakhim Pulatov in 1989. Erk (Freedom) was founded in 1990 by Muhammad Solih, who split away from Birlik; in 1991, Solih was a candidate for president, drawing approximately 12% of the vote. Another group, never legally registered, was the Islamic Renaissance Party.

After independence President Islam Karimov began to establish strong authoritarian control. Political opposition was forbidden. Opposition leaders have been beaten, jailed, and exiled. There were five registered parties as of 2003, but their platforms are essentially identical, and all parties with seats in parliament support the president. The People's Democratic Party (CDP) is the renamed Communist Party. Also registered were the Fatherland Progress Party (VTP); the Adolat (Justice) Social Democratic Party; the Democratic National Rebirth Party; and the Self-Sacrificers Party (the Fatherland Progress Party merged with Self-Sacrificers Party).

A political pressure group, the Erk (Freedom) Democratic Party, was reformed as a pro-Karimov party after repudiating its founder, Muhammad Solih, who was forced into political exile. Another pressure group, the Birlik (Unity) Movement was officially banned in mid-1993, but continued to exist.

LOCAL GOVERNMENT

The republic is divided into 12 oblasts, or provinces. There is also the autonomous Republic of Karakalpakstan, which has the right of legal secession, though is unlikely to exercise it. Administration is performed by locally elected councils, overseen by presidential appointees.

An April 1999 decree by Karimov granted mahallas, the smallest communal or neighborhood units in Uzbekistan, a greater level of autonomy than they previously had. The mahallas are traditional institutions charged by law with regulating communal life, and carrying out many state functions, such as community policing, political surveillance, and distributing social welfare payments. This increase in decentralization for the mahallas has been welcomed by nongovernmental organizations (NGOs) attempting to provide assistance to the mahallas and to strengthen the participation of communities in political, economic, and social matters.

JUDICIAL SYSTEM

The Soviet judiciary system, featuring trials by panels of three judges, still prevails. There are three levels of courts: district courts (people's courts) at the lowest level, regional courts, and the Supreme Court. District court decisions may be appealed through the higher levels. Under the constitution, the president appoints judges for five-year terms. There are also town, city, Tashkent city courts and arbitration courts appointed for five-year terms.

The judicial system also consists of a constitutional court, higher economic court, and economic court of the republic. The constitutional court judges the constitutionality of laws and acts passed by the Supreme Assembly, the decrees issued by the president, government enactments and ordinances of local authorities. It is also responsible for interpreting the constitution.

The Supreme Court's rulings are final and binding. It is the highest judicial body of civil, criminal, and administrative law. Defendants have the right to an attorney and most trials are open to the public. In political cases, the judiciary may experience pressure from the government. Prisons suffer from severe overcrowding and shortages of food and medicine. An estimated 5,000 to 6,000 political prisoners are being held in Uzbekistan's penal institutions.

The government officially abolished censorship in 2002, although the government controls major media outlets and newspaper printing and distribution facilities. Internet access is available but the government has blocked a number of non-Uzbek news Web sites. Homosexuality is a criminal offense in Uzbekistan and prominent human rights activist Ruslan Sharipov, was sentenced in 2005 to five and one-half years for the charge. In March 2004 he was transferred from prison to house arrest.

The 1998 Law on Freedom of Conscience and Religious Organizations prohibits activities including proselytizing and private religious instruction, requires groups to register and provides strict criteria for their registration. There are restrictions on foreign travel, including the use of a system of exit visas; under Uzbek law, a citizen must obtain a five-year exit visa to travel to countries with which Uzbekistan operates a visa regime. The ability to move to a new city is limited as permission is required from local authorities, and the authorities rarely grant permission to those wishing to move to Tashkent.

Crimes perpetrated against women, such as domestic violence or rape are rarely prosecuted as women are discouraged from pressing charges. Trafficking of women and children remains a serious problem. Human Rights Watch reports that local authorities frequently use children as free or cheap labor for agricultural harvests, particularly cotton which the primary export of Uzbekistan.

Uzbekistan is a member of many international organizations including the United Nations and is an observer at the World Trade Organization.

ARMED FORCES

As of 2005, Uzbekistan's armed forces numbered 55,000 active personnel. The Army numbered 40,000 active members and were armed with 340 main battle tanks, 13 reconnaissance vehicles, 405 armored infantry fighting vehicles, 309 armored personnel carriers, and over 487 artillery pieces. The Air Force had between 10,000 and 15,000 personnel and operated 136 combat capable aircraft, including 75 fighters and 50 fighter ground attack aircraft. The service also had 29 attack helicopters. In addition, there were up to 20,000 paramilitary personnel, under the Ministry of Interior, of which up to 19,000 were internal security troops, and another 1,000 comprised the National Guard. The defense budget for 2005 was $60 million.

INTERNATIONAL COOPERATION

Uzbekistan was admitted to the United Nations on 2 March 1992; it participates in ESCAP and several nonregional specialized agencies, such as the IAEA, FAO, the World Bank, UNCTAD, UNESCO, and the WHO. It is also a member of the Asian Development Bank, OSCE, the Commonwealth of Independent States, the Euro-Atlantic Partnership Council, the European Bank for Reconstruction and Development, the Islamic Development Bank, OSCE, and the Organization of the Islamic Conference (OIC).

In June 2001, leaders of Uzbekistan, China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan met in China to launch the Shanghai Cooperation Organization (SCO) and sign an agreement to fight ethnic and religious militancy while promoting trade. Also in 2001, Georgia, Uzbekistan, Ukraine, Azerbaijan, and Moldova formed a social and economic development union known as GUAAM; however, Uzbekistan withdrew from the partnership in 2005. Uzbekistan is also a partner in the Central Asian Cooperation Organization (CACO) and the Central Asian Union, both of which consist of Uzbekistan, Tajikistan, Kazakhstan, and Kyrgyzstan. Uzbekistan is part of the Nonaligned Movement and the NATO Partnership for Peace.

In environmental cooperation, Uzbekistan is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the Kyoto Protocol, the Montréal Protocol, and the UN Conventions on Climate Change and Desertification.

ECONOMY

Although characterized by one of the lowest per capita incomes in the Central Asian and other post-Soviet republics, Uzbekistan's rich reserves of gold, oil, natural gas, coal, silver, and copper provide a promising endowment for future development. As a major source of cotton for the textile industry in the former USSR, and, as of 2006, the world's fifth-largest cotton producer and second-largest cotton exporter, Uzbekistan has a predominantly agricultural economy. In addition, much of the industrial production is linked to agriculture, including cotton harvesting equipment, textiles, and chemical fertilizers and pesticides. Only 12% of Uzbekistan's total cotton production and 60% of its silk cocoons were processed locally in the early 1990s, reflecting the country's principal role as supplier of raw material goods for downstream manufacturing elsewhere in the former USSR. In 2003, agriculture accounted for 38% of GDP, followed by services at 35.7% and industry at 26.3%.

Uzbekistan has a centrally planned economic structure in which most production and employment remains in the state sector, and all health, education, social security, and welfare services are provided by the government. Measures taken toward establishing a greater market orientation within the economy have been more cautious than in many other post-Soviet countries. A differentiated process of price control liberalization was applied to the wholesale and retail sectors in 1991 in an attempt to avoid socially destabilizing surges in consumer prices. Nevertheless, inflation ran 790% in retail prices and 2,700% in wholesale prices in 1992; by the end of the year, real wage earnings had declined by 56%. The disruption of trading arrangements with former Soviet republics and the cessation of transfers from the Union's central government is evident in the erosion of other major economic indicators in the 1990s. In addition to a seriously deteriorating fiscal balance, estimated GDP shrank by 17% between 1991 and 1994. Following a breakdown in agreements over the conditions of a new ruble zone with Russia and other CIS countries, Uzbekistan adopted its own currency, the som, in late 1993.

When it became apparent that the slow pace of economic reform was not working, the government increased efforts to move from a command-driven to a market-oriented economy. Reforms included tighter monetary policies, cooperation with international financial institutions, increased privatization of state-owned enterprises, and an improved environment for foreign investors. In response, the economy slowed its decline to 1% in 1996 and the inflation rate dropped to 35%, down from 1,300% in 1994. Additional reforms announced in 1996 aimed at increasing the private sector's share of GDP to 60%.

By 1999, the state continued to dominate the economy, however. GDP grew by 2.5% in 1997, and 4.4% in 1998, despite the Russian and Asian financial crises. Inflation was at 71% in 1997, but fell to 29% in 1998. In 1999 growth was 4.1% and in 2000, 4%, while inflation persisted at annual rates of 29% and 26% respectively. Continued inflation and a growing debt burden combined with the global economic slowdown in 2001 to reduce real growth to 3%. By 2005, the GDP growth rate had reached an estimated 5.4%, and the inflation rate had been tamed, to an estimated 7.1%.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Uzbekistan's gross domestic product (GDP) was estimated at $52.2 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $1,900. The annual growth rate of GDP was estimated at 5.4%. The average inflation rate in 2005 was 7.1%. It was estimated that agriculture accounted for 38% of GDP, industry 26.3%, and services 35.7%.

Foreign aid receipts amounted to $194 million or about $8 per capita and accounted for approximately 2.0% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Uzbekistan totaled $5.45 billion or about $213 per capita based on a GDP of $10.1 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings.

Approximately 34% of household consumption was spent on food, 13% on fuel, 4% on health care, and 7% on education. It was estimated that in 2004 about 28% of the population had incomes below the poverty line.

LABOR

Uzbekistan's labor force was estimated at 14.26 million in 2005. As of 2000 (the latest year for which data was available), occupational breakdown data for the country's workforce was incomplete. Agriculture that year, accounted for 34.4% of the labor force, with industry at 20.3%. However data on the services sector was unavailable. The undefined occupation category was put at 32.7% for that year. Although unemployment in 2005 was officially put at 0.7%, another 20% of the workforce was estimated to be underemployed.

The labor code adopted in 1992 recognizes the right for all workers to voluntarily create and join unions, which may in turn associate with international affiliations. Unions also were granted independence from government administrative and economic bodies (except where provided by law), and were encouraged to develop their own charters, structure, and executive bodies. However, as of 2002, the union structure remained the same as under Soviet rule. There were no independent unions.

The standard workweek is 41 hours, and minimum wages are set by the Ministry of Finance. As of 2002, the minimum wage was about $3.00 per month. Some factories have reduced work hours to avoid layoffs, and overtime pay is rarely given. The minimum working age is 16, although 15-year-olds may work a shorter workday. The Labor Ministry has an inspection service to enforce compliance with this requirement. The Labor Ministry also inconsistently enforces occupational health and safely regulations, many industrial plants continue to be hazardous, and most workers lack protective clothing and equipment.

AGRICULTURE

Uzbekistan was the former Soviet Union's largest producer of fruits and vegetables. About 12% of the total area is crop land. In 2004, about 35% of GDP and 17% of exports came from agriculture.

During the Soviet era, cotton was grown on almost half of all sown land. Cotton is grown in the crescent beginning in the Fergana Valley and extending south along the Tien Shan Mountains to Samarqand (Samarkand) and Bukhoro (Bukhara), and then west along the Amu Darya River. All cotton is flood irrigated. Plantings are generally in April, with the harvest coming in late August or early September. Fields are usually planted with alfalfa or corn every four or five years, but many fields are planted without rotation, leading to declining yields. Since independence, Uzbekistan has embarked on a policy to diversify agriculture; annual cotton lint production was over 1.1 million tons in 2004/05. Almost 40% of the gross value of agricultural production is derived from cotton; Uzbekistan was the world's fifth-largest producer of cotton lint in 2004/05 (after China, the United States, India, and Pakistan), accounting for 4% of world supply. In 2004, Uzbekistan's agricultural trade surplus was $668.3 million.

Rice, wheat, barley, and corn are important grain crops. Rice is produced on 48 specialized state farms, and about 85% of the rice crop comes from the southwestern part of Karakalpakistan and the Khorezm region. In 2004, over five million tons of cereals were produced. Sesame, tobacco, onions, flax, and various fruits are also grown.

ANIMAL HUSBANDRY

Sheep are the main livestock product, with Karakyl sheep (noted for their black wool) raised in the Bukhara region. The livestock population in 2005 included 9.5 million sheep, 5.4 million head of cattle, 1,000,000 goats, 90,000 pigs, 150,000 donkeys, 145,000 horses, 25,000 camels, and about 14.5 million chickens. Meat production that year totaled 551,000 tons, of which 82% was beef, 13% was mutton, 2% was pork, and 3% was poultry. Wool (greasy) production in 2005 was estimated at 16,000 tons. Mulberry trees have been grown for silkworm breeding since the 4th century; some 1,200 tons of silk were produced in 2005.

FISHING

Fishing occurs mainly in the Fergana Valley. The Aral Sea in the north (the world's fourth-largest lake) is too saline and becoming more so, especially since its water surface area has decreased by 33% since 1960. The total catch in 2003 was 7,112 tons, primarily carp.

FORESTRY

Forests make up 4.8% of the total land area, mostly in the Fergana Valley and Zeravshan regions. Commercial forestry is not a significant part of the economy. Uzbekistan imported $37.2 million in forestry products during 2004.

MINING

The mineral sector remained one of the chief contributors to the country's economic development. Along with natural gas and uranium, in which Uzbekistan was a world leader, and crude oil, in which it was self-sufficient, the country was significant to world mineral markets as a gold producer—it has, at times, been a world leader. Gold was the second-leading export commodity in 2002, providing 22% of export earnings. Production of fertilizers was an important part of the domestic chemical industry, as fertilizers were used for the production of cotton. In 2002, cotton was the leading export, accounting for 45% of Uzbekistan's exports.

Uzbekistan produced an estimated 80,000 kg of gold in 2002. Uzbekistan also mined copper (65,000 metric tons in 2002), molybdenum, silver, and tungsten. Copper, molybdenum, and lead-zinc were mined at the Almalyk mining and metallurgical complex, Uzbekistan's major nonferrous-metals-producing enterprise, northeast of Tashkent. No bismuth, cadmium, lead, palladium, tin, or zinc has been mined from 1997 through 2002. It appears that mining operations have been curtailed sharply or have ceased. Control of one of the main lead-mining deposits, Altyn-Topkan, in the Kurama mountain range, was transferred to Tajikistan in 1999. Uzbekistan also produced cement, kaolin clays (an estimated 5.5 million metric tons in 2002), feldspar, graphite, iodine, mineral fertilizer, nitrogen, phosphate rock, and sulfur. No fluorspar output has been reported from 1999 through 2002. Uzbekistan also manufactured copper, gold, lead, molybdenum, silver, steel, tungsten, and zinc metals.

Uzbekistan's explored resources of gold were 5,300 tons. The main reserves, amounting to 3,200 tons, were in the central Kyzylkum region, containing the Muruntau deposit (2,230 tons), the largest gold deposit in Eurasia and among the largest in the world; Muruntau's milling operation, near Zarafshan, processed more than 22 million tons per year of ore. Zeravshan—a 50–50 joint venture of an Uzbeck government conglomerate and Newmont Corp., of the United States, the leading foreign investor in Uzbekistan's gold industry—produced 15.4 tons in 2000, from gold-bearing tailings from the Muruntau operation, down from 16.7 in 1999. The drop was a result of lower gold content in the material received by the plant.

ENERGY AND POWER

Uzbekistan is one of the 10 largest producers of natural gas in the world. According to an analysis by the Energy Information Administration (EIA), updated as of September 2005, Uzbekistan had natural gas reserves estimated at 66.2 trillion cu ft. In 2003, according to the EIA, natural gas production totaled 2.03 trillion cu ft, and according to preliminary data for 2004, natural gas output totaled 2.07 trillion cu ft. Dry natural gas consumption in 2002 totaled 1.6 trillion cu ft. Exports that year totaled 395.53 billion cu ft.

According to the EIA analysis, the Oil and Gas Journal estimates that Uzbekistan's proven reserves of oil total 594 million barrels. Uzbekistan's output of all petroleum liquids in 2003 totaled 155,000 barrels per day. In 2004, production was estimated at 150,000 barrels per day.

In 2002, Uzbekistan's electric power generating capacity totaled 11.631 million kW, of which conventional fossil fuel generating plants accounted for b9.921 million kW of capacity, with hydroelectric plants at 1.710 million kW. Electricity output in 2002 came to 46.942 billion kWh of which 86.5% was from fossil fuels and 13.5% from hydropower. Consumption of electricity in 2002 was 44.983 billion kWh.

INDUSTRY

Growth of Uzbekistan's industrial production averaged 3.2% in the 1980s, although on a per capita basis, the republic's industrial output remained less than half that of the USSR average by the end of the decade. Most industry was based on the processing of local agricultural products. Soft goods (mainly cotton, wool, and silk fiber) and processed foods (including cottonseed oil, meat, dried fruit, wines, and tobacco) accounted for about 39% and 13% of industrial production respectively in 1990; their manufacture was concentrated in Tashkent and the Fergana Valley.

Uzbeklegprom, the state association for the production of light industry goods, produces about 90% of Uzbekistan's textiles. In the late 1990s, Uzbeklegprom sought to boost capacity with the assistance of several joint venture partners. Investment projects such as the $194 million investment Korean Kabul Textiles and those by Turkish firms Astop and Tekfen began to modernize cotton processing, although most textile mills continue to use out-dated machinery with technology from the 1970s. The investment cost of updating the entire industry was estimated at between $500 million and $1 billion.

Food processing is Uzbekistan's second-largest industry, based on the country's abundant production of fruits and vegetables. The sector is also in need of investment to modernize its processing and packaging equipment.

Uzbekistan's machinery industry is the primary producer of machines and heavy equipment in Central Asia. Uzavtosanoat is the cornerstone of the country's automotive industry; it has developed joint ventures with Daimler-Benz (Germany) and Daewoo (ROK). The UzDaewoo-Avto plant in Andizhan began production in 1996 and produced about 200,000 units annually. Two models of cars, the Nexia and the Tico, and a microbus, the Damas, are the main models produced.

The aerospace industry centers around the Chkalov Tashkent Aircraft Production Co., a government-controlled enterprise that is one of the largest and most significant aircraft assembly plants in Central Asia. Equipment used on the Salyut and Mir space stations were among its products. Of more practical use have been developments in satellite imaging and communications.

Metal processing industries are clustered in the Olmaliq-Oharangan (Almalyk-Akhangaran) complex, southeast of Tashkent. Metal alloys, wire, rods and sheet and gas-based nitrogen are manufactured in Chirchiq, close to the Kazakhstan border in the northeast. Chemical fertilizers used mainly in cotton production are also produced in the Chirchiq.

Uzbekistan has three oil refineries, at Fergana, Alty-Arik, and Bukhoro (Bukhara), with a total capacity of 220,000 barrels per day. The 50,000-barrels-per-day-capacity facility at Bukhoro (Bukhara) was built after the breakup of the Soviet Union at a cost in excess of $400 million; it was expected to be expanded to a capacity of 100,000 barrels per day with the ability to handle both crude oil and gas condensate. In 2006, however, the refineries were operating well below capacity because of the decline in the Uzbekistan's oil production.

With estimated natural gas reserves of 66.2 trillion cu ft (Tcf), Uzbekistan is the second-largest producer of natural gas in the Commonwealth of Independent States (after Russia), and one of the top 10 natural gas-producing states in the world. Since becoming independent, Uzbekistan increased its natural gas production by over 30%, from 1.51 Tcf in 1992 to an estimated 2.07 Tcf in 2004.

In 2004, the industrial production growth rate was estimated at 9.4%.

SCIENCE AND TECHNOLOGY

The Uzbek Academy of Sciences, headquartered in Tashkent, has departments of physical-mathematical sciences; mechanics; control processes; informatics; chemical-technological and earth sciences; and biological sciences. Uzbekistan has 45 research institutes conducting research in agriculture and veterinary sciences, technology, natural sciences, and medicine. Twenty-three colleges and universities offer scientific and technical training. In the period 1990–2001, there were 1,754 scientists and engineers, and 312 technicians engaged in research and development per million people.

DOMESTIC TRADE

Although dominated by state-owned stores and distribution channels under the Soviet economy, retailing has seen a marked shift toward private business. Since 1992, thousands of small businesses have been privatized or leased to worker collectives, with the most progress in retail trade, consumer services, public catering, and local industry. However, the shift from state control to a free-market economy continued to move at a very slow pace. Urban markets provide an important outlet for the sale of vegetables and other foodstuffs. Government restrictions on trade and foreign investment have hindered the economy. Black market trade was still available as of early 2006.

Business hours are 9 am to 6 pm, Monday to Friday, and banks are open from 9 am to 4 pm. Department stores are open from 10 am to 6 pm, Monday through Saturday.

Advertising by print and television is popular. Other forms of advertising include billboards, radio, and transportation (buses, trams) advertisements. Many affluent Uzbeks subscribe to Kamalak wireless cable television service.

FOREIGN TRADE

While supplying the former USSR with light industry goods (mainly cotton fiber) and basic equipment related to agriculture and agricultural processing, Uzbekistan has been highly dependent on the other former Soviet republics for critically needed grain, food, machinery, and other industrial inputs. Uzbekistan is a net exporter of natural gas, but had begun importing oil in the early 2000s.

In 2006, exports included cotton, gold, natural gas, fertilizers, ferrous metals, textiles, food products, and automobiles. Imports included grain, machinery and parts, consumer durables, and foods.

BALANCE OF PAYMENTS

Uzbekistan was extremely reliant on cotton exports as a means of trade throughout its association with the former USSR, but earnings fluctuated widely from year to year depending on the performance of the agricultural sector. Exports of natural gas and petroleum generated much needed hard currency reserves within the next several years. Uzbekistan received substantial financial support from the World Bank, IMF, and other multilateral lending institutions. Proceeds were used to finance the cotton industry and oil and gas development, to provide a social safety net, to maintain the water supply, and to further privatization efforts.

The country lost almost half of its foreign exchange reserves in 1996, after the government imposed strict currency controls. As of the early 2000s, Uzbekistan was able to maintain reserve levels at or close to $1.2 billion, in large measure by restricting imports. Exports dropped as well, and as a result of this decline in trade, Uzbekistan managed to achieve a modest balance of payments surplus of $359 million in 1999. The country's external debt stood at $5.1 billion in 2001. Many creditors reassessed their lending to Uzbekistan due to this high debt burden, and foreign investment declined.

The estimated current account balance in 2003 was $270 million. By the end of that year, the country's total debt stock amounted to $4.6 billion. Trade volumes have fallen sharply since 1997, due in part to Uzbekistan's currency convertibility restrictions, which still continue for consumer goods, significant administration barriers for licensing and certification, and very high customs duties. However, high prices for gold and cotton, two of Uzbekistan's primary export commodities, resulted in a slight increase in trade revenues in the mid-2000s.

BANKING AND SECURITIES

After 1993, the banking system was headed by the now-defunct National Bank of Uzbekistan, the former local branch of the Soviet Gosbank. The NBU attempted to increase its supervision over Uzbekistan's banks, the most important of which are state-owned. In 2002, the Central Bank of Uzbekistan (CBU) was in charge of the country's two-tier banking system, and had the responsibility of issuing soms, the country's currency unit, and regulating the commercial banks by setting reserve requirements and the discount rate. The other important state bank was the Uzbek National Bank of Foreign Economic Activities (NBU), which dealt exclusively with the foreign exchange rate.

There were increasing hints from the government that the banking sector is in trouble. The first indicator of a banking crisis came with the sudden and unpublicized sacking in January 1997 of Ahmat Ibotov, the head of Promstroi Bank, the second-largest bank in Uzbekistan after the NBU. Then, on 26 February 1997, President Karimov launched a scathing attack on the country's banks, accusing them of being corrupt and bureaucratic. The president also blamed the banks for maintaining excessively high interest rates. The CBU has also criticized the banks for poor credit risk evaluation and poor procedures over the issuing of bank guarantees. Commercial banks in the country include the Uzbek Commercial Bank and the Uzbek Joint-Stock Innovation Bank. The country does not have a security market, but the trading of commodities is widely practiced in the country.

In 1996, the authorities closed three banks, all supposedly for breaching lending limits set by the CBU. One of the main problems in the banking sector is over-concentration. The three largest banks, all of which are state-owned, control 86% of commercial banks' assets. The main culprit is the NBU, which accounts for 45% of assets.

INSURANCE

Among the insurance companies doing business in Uzbekistan in 1997 were: GOSSTRAKH State Insurance Company of the Republic of Uzbekistan; JV, UMID Joint-Stock Insurance Co.; MADAD Joint-Stock Insurance Agency; and Uzbekinvest National Insurance Co. of the Republic of Uzbekistan, which is government-owned.

PUBLIC FINANCE

Uzbekistan's spiraling inflation as a member of the ruble zone necessitated the introduction of a transition currency after it left the ruble zone in November 1993. In 1994, the government undertook economic reforms, but privatization efforts have fallen short of expectations. Subsidies for basic consumer goods (except some food staples and energy products) and subsidized credit to industrial enterprises were substantially reduced during 1994 and 1995. The external debt, $1.5 billion at the end of 1994, more than doubled to $3.3 billion by 1997. By 2005, it had exceeded $5 billion. An enterprise profit tax, a value-added tax, and an excise tax on cotton supply the bulk of government revenues. The government is officially committed to a gradual transition to a free-market economy, but is cautious in the actions it takes toward that goal. The restrictive trade regime has crippled the economy and currency convertibility is essentially unheard of.

The US Central Intelligence Agency (CIA) estimated that in 2005 Uzbekistan's central government took in revenues of approximately $2.8 billion and had expenditures of $2.9 billion. Revenues minus expenditures totaled approximately -$102 million. Public debt in 2005 amounted to 39% of GDP. Total external debt was $5.184 billion.

TAXATION

As of 2005, Uzbekistan had a standard corporate tax rate of 18%. Capital gains are treated as taxable profits and are taxed at the corporate rate. Dividends and interest paid to resident companies and individuals, and to nonresident foreign companies without a permanent presence in the country, are subject to a 15% withholding tax. Royalties are subject to a 20% withholding tax, if paid to nonresident firms without a permanent presence in Uzbekistan.

Uzbekistan has a maximum personal income tax rate of 33%. The official minimum monthly wage rate in Uzbekistan is 3,430 soms, which is worth about $2 in the black market. People who earn less than 15,720 soms (about $9) a month pay 13%. On the increment between 15,720 soms and 31,140 soms ($18) per month the rate is 23%, and on income above 31,140, the new maximum rate is 33%. At the same time the government introduced a 20-som tax on each liter of gas.

Also levied is a 20% value-added tax (VAT) on all goods and services, although some are zero-rated or exempt. Other taxes include excise taxes, property taxes, an ecology tax, a subsurface use tax (imposed on natural resource extraction, road use taxes and social and pension fund contributions.

CUSTOMS AND DUTIES

Uzbekistan is a member of the Economic Cooperation Organization, together with Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Iran, Pakistan, and Turkey. Uzbekistan has also formed an economic union with Kazakhstan and Kyrgyzstan. Imports are subject to customs duties at rates ranging from 1–4%. However, excise taxes have been much higher, as much as 90% for imported liquor.

FOREIGN INVESTMENT

While Uzbekistan's store of valuable natural resources is likely to provide a strong basis for covering the costs of long-term economic development, significant amounts of external funding will be needed to support its short-term development plans over the next decade. To stimulate foreign direct investment, legislation adopted in mid-1991 provides tax incentives and guarantees against expropriation, though falling short of securing the right to repatriate profits and third-party dispute arbitration. By the end of 1992, 450 joint ventures were registered in the country but only 135 were actually operating. The largest of these is with the US-based Newmont Mining Corp. Negotiations over further Western participation in the exploitation of a major oil field discovered in the Fergana Valley in early 1992 followed. Fourteen bilateral agreements with China were signed in 1992.

In 1994, British-American Tobacco, one of the world's largest cigarette manufacturers, announced a $200 million deal to acquire 51% of state-owned Uztobacco. That same year, a Coca-Cola joint venture began operations in Uzbekistan. In August 1996, South Korea's Daewoo Group announced the planned investment of $2.5 billion in Uzbekistan to build telecommunications networks. Daewoo has invested $658 million to produce cars in Uzbekistan. In 2000 Uzbekistan and Israel announced plans to cooperate on the development of solar power technology.

The Uzbek government reported foreign direct investment (FDI) of $298 million in 1998 and $188 million in 1999. In 2003, FDI inflows were estimated at $70 million by the Economist Intelligence Unit; government figures listed FDI inflows at $167 million. Despite Uzbekistan's strategic location and considerable economic potential, the poor investment and business climate has caused the country to attract less FDI than any other CIS country. The largest percentage of FDI in 2003 originated from Russia (15.8%), South Korea (9.8%), and the United States (8.7%).

ECONOMIC DEVELOPMENT

Under centralized Soviet economic planning, Uzbekistan's economic growth was fueled by expanded agricultural production, as extensive stretches of land were brought under irrigation particularly for cultivation of cotton. While highly critical of the former Soviet's government emphasis on promoting cotton monoculture in the republic, the country's new government has found that the country's economic fortunes are closely tied to cotton production, which has fallen steadily since the Soviet era.

Since independence the government has aimed at facilitating a greater market orientation in the economy, though the steps taken toward this goal have been smaller and slower-paced than in other parts of the former USSR. A series of basic laws and new policies have been adopted regarding property ownership, land, privatization, foreign investment, price controls, trade, taxes, and banking. In 1995 the government announced a mass privatization program with the objective of increasing the private sector's share of GDP from 40% to 60%. Although nearly 60,000 small businesses (96% of the total) and 14,000 farms (accounting for 11% of arable land) had been privatized by 1997, only 20% of Uzbekistan's medium and large-sized enterprises were in private hands.

Developing the country's oil and natural gas fields, bolstering cotton exports through productivity enhancement, and sustaining gold exports are likely to be key strategies for procuring some of the necessary financing to support economic development. In 1992, Uzbekistan signed an agreement with Russia, transferring its share of the former Soviet Union's debt to the latter in exchange for relinquishing all claims on Soviet assets. One area of serious concern for the government is the increasing threat to public health and economic productivity posed by the environmental damage resulting from past development strategies. Addressing growing water shortages, severe river and lake pollution caused by the heavy use of chemical inputs in agriculture, the desiccation of the Aral Sea due to massive irrigation, and high levels of both air and water pollution in the country's industrial centers are among the country's most pressing environmental management problems.

In 2002 the government and the Central Bank embarked on an IMF staff monitored program (SMP) primarily designed to convince the IMF to approve a financial program. The SMP was aimed at accelerating the transition to a market economy and achieving macroeconomic stability. The main policies pursued were reducing the role of the state through progressive lifting of restrictions on private activity, as well as accelerated privatization state enterprises, plus tight monetary and fiscal policies to bring down inflation and reduce debt. As of 2002, World Bank commitments to Uzbekistan amounted to $463 million: a three-year Country Assistance Strategy (CAS) was aimed to prepare the country and its decision-makers for currency and trade liberalization. At the same time, it provided for investments in projects contributing to poverty reduction, public health, ecological disaster prevention, regional environmental degradation, and institution building.

The European Bank for Reconstruction and Development (EBRD) has traditionally been one of the largest investors in Uzbekistan's economy. From 1993–2003, the EBRD signed 25 projects in the country, and its total financial assistance amounted to $727.9 million. These projects included the rehabilitation of the oil refineries and power plants, building of new production facilities, development of gold mines, assistance to small and medium enterprises (SMEs), and others.

Uzbekistan became a member of the Asian Development Bank (ADB) in 1995 and by 2003 had received 10 loans from it. ADB assistance was directed to transportation and communications, social infrastructure, agriculture and natural resources, and finance.

SOCIAL DEVELOPMENT

The social security system includes old age, disability and survivor's pensions, in addition to sickness, maternity, work injury, and unemployment benefits. Pensions are provided at age 60 for men and age 55 for women. The program is financed by a 33% contribution from employers and a 2.5% contribution by employees. Women are entitled to 126 days of maternity benefits plus three years unpaid maternity leave. Unemployment benefits are funded entirely by employers, with subsidies as needed from the government. All residents are have medical benefits, and maternity befits amount to 100% of wages for up to 140 days. Mothers with children under two years of age are entitles to paid leave. Family allowances cover all needy residents.

Violence against women and spousal abuse continues to be a common problem with little or no governmental intervention. Although nominally equal under the law, women hold few high-level positions. Traditional customs decree that women generally marry young, bear many children, and confine their activities to the home. This is particularly evident in rural areas. There is a reported increase in the incidence of suicide by self-immolation by women. Sexual harassment is not proscribed by law, and societal norms and lack of recourse make it difficult to assess the scope of the problem.

Human rights violations are prevalent. Security forces arbitrarily arrest and detain individuals, torture and beat prisoners, and confine them to unsafe prisons and labor camps. Freedom of speech and press are tightly restricted. Religious groups are closely monitored. The activities of human rights organizations are restricted, and human rights activists are frequently harassed.

HEALTH

The system of health care in Uzbekistan is comprehensive and services are provided mainly free of charge. Yet the overall efficacy of the Uzbek system was still relatively low as of 2000. The public often used hospitals for primary care. Health care reform objectives as of 2000 included improved quality of services overall and specifically in the areas of maternal and child health; promotion of privatization; and cost containment. Primary health care in rural areas is still provided by health posts staffed by physicians' assistants and midwives. Approximately 85% of the population had access to safe drinking water and 100% had adequate sanitation. As of 2004, there were an estimated 289 physicians, 997 nurses, 21 dentists, and 3 pharmacists per 100,000 people. Total health care expenditure was estimated at 4.1% of GDP.

The infant mortality rate was 71.10 per 1,000 live births in 2005. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 26.1 and 8 per 1,000 people. The average life expectancy was 64.19 years in 2005. It was estimated that 93% of children up to one year old were immunized against tuberculosis; 65% against diphtheria, pertussis, and tetanus; 79% against polio; and 71% against measles. The rates for DPT and measles were, respectively, 99% and 96%.

The heart disease rates were well above the countries classified as "medium human development" by the World Health Organization. The likelihood of dying after age 65 of heart disease was 508 for males and 538 for females per 1,000 adults.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 11,000 people living with HIV/AIDS in the country. There were an estimated 500 deaths from AIDS in 2003.

HOUSING

In 1989, 31.9% of all privately owned urban housing had running water, 11.3% had sewer lines, 21.1% had central heating, and 1.5% had hot water. In 1990, Uzbekistan had 12.1 sq m of housing space per capita and, as of 1 January 1991, 204,000 households (or 11.5%) were on waiting lists for urban housing. In 1996, it was estimated that about 90% of all households owned their own apartments or houses.

EDUCATION

For centuries, Uzbekistan was a noted Muslim educational center. Muslim schools in the cities of Bukhoro (Bukhara), Samarqand (Samarkand), Tashkent, and Khiva attracted students from other Muslim countries. In 1920, after the Soviet Union took control of the region, schools and mosques were closed down, and a secular state-funded educational system was established. In recent years, there has been an increased emphasis on Uzbek literature, culture, and history.

Nine years of schooling is compulsory. Primary school lasts for four years, followed by general secondary school of five years. Students than have several options for continuing their upper secondary education, including general studies, technical or vocational programs, and specialized academic programs. Upper secondary courses usually cover two years of study. The academic year runs from September to June.

In 2001, primary schools enrolled 2,559,000 students. In the same year, secondary schools had 4,237,000 students. It has been estimated that nearly all students complete their primary education.

There are three universities in Uzbekistan: Tashkent State University; Nukus State University; and Samarkand Alisher Naroi State University. There are several other institutions offering specialized training. In 2003, it was estimated that about 16% of the tertiary age population were enrolled in tertiary education programs. The adult literacy rate for 2004 was estimated at about 99.3%.

LIBRARIES AND MUSEUMS

The largest library in the country is the Alisher Navoi State Public Library of Uzbekistan in Tashkent, which serves as the national library and holds over 10 million items. The Central State Archive of Uzbekistan is also in Tashkent, as are the Republic Library for Science and Technology (two million volumes), the Foundation Library of the Uzbek Academy of Sciences (1.5 million), the Pedagogical Institute (808,000), Tashkent State University (2.46 million), and the Polytechnic Institute (808,000). Samarqand (Samarkand) State University's library holds 1.6 million volumes, and the Pedagogical Institute Ulugbek in Fergana holds 295,000 volumes.

The Museum of Fine Arts, the Museum of History, the National Nature Museum, and the Sergey Yesenin Literary Museum are in Tashkent, as are the Central Museum of the Armed Forces and the Museum of Olympic Glory. The Museum of Culture and Art History and the International Museum of Peace and Solidarity are in Samarqand (Samarkand). The Termez Archaeological Museum was established in 2001.

MEDIA

Telephone links to other former Soviet Republics are provided by land link or microwave and to other countries through Moscow. In 2003, there were an estimated 67 mainline telephones for every 1,000 people; about 38,900 people were on a waiting list for telephone service installation. The same year, there were approximately 13 mobile phones in use for every 1,000 people.

Radio Tashkent, established in 1947, broadcasts in Uzbek, English, Urdu, Hindi, Farsi, Arabic, and Uighur. There is also a television station in Tashkent, and satellite earth stations receive Orbita and INTELSAT. In 2004, the government owned four television channels and two radio stations. There were about 30 to 40 privately owned local television stations and 7 privately owned radio stations. In 2003, there were an estimated 456 radios and 280 television sets for every 1,000 people. The same year, 19 of every 1,000 people had access to the Internet. There was one secure Internet server in the country in 2004.

Though there are privately-owned newspapers, the government owns the entire publishing house and must grant approval for all publications printed. The most widely read dailies include Khalk Suzi (2002 circulation 52,000), Pravda Vostoka (35,000), and Sovet Uzbekistoni. The weekly Narodnoye Slovo has a circulation of 21,000.

Though the constitution provides for freedom of expression, the government is said to restrict those rights severely, controlling all information flow. A 1991 law prohibits offending the president. Though a 2002 law allowing for prepublication censorship has been eliminated, many media sources continue to practice self-censorship.

ORGANIZATIONS

The Uzbekistan Chamber of Commerce and Industry promotes the country's exports in world markets. An umbrella organization, the Federation of Trade Unions of Uzbekistan, coordinates the activities of the country's trade unions.

The Academy of Sciences was established in 1943 to promote public interest in science while encouraging the work of scientific researchers and educators. The Physicians Association of Uzbekistan serves as a professional networking group and promotes research and education on public health issues.

National youth organizations include the Ulugbek Foundation for the Support of Talented Youth, the Youth of the Union of the Republic of Uzbekistan, and Soglom Ovlun Uchun, an organization focusing on health and development for children and youth. There are many active sports associations promoting amateur competition for athletes of all ages.

Women's organizations include the Center for Women Leaders (in Tashkent) and the Women's Committee of Uzbekistan. The Society for Human Rights is an important political association. Several social action groups formed in the 1990s, many, such as Real Action (1994), the ECO Initiative Group (1999) and Ecopolis Cultural and Ecological Movement (1995), are focused on environmental and developmental issues. The Red Crescent Society is also active.

TOURISM, TRAVEL, AND RECREATION

Uzbekistan tourist attractions include the Islamic cities of Samarqand (Samarkand), Bukhoro (Bukhara), Khiva, and Kokand. Muslims from Pakistan, Iran, and the Middle East have been drawn to these sites with their palaces, mosques, madrasses (religious colleges), and pre-Islamic remains.

In an effort to increase tourism in recent years, several hotels have been built in Uzbekistan, and historical monuments were reconstructed. In 2003, there were 231,000 visitors who arrived in Uzbekistan. Hotel rooms numbered 7,332 with 15,670 beds and an occupancy rate of 31%. The average length of stay was three nights. That same year, tourism expenditure receipts totaled $48 million.

According to 2004 US Department of State estimates, the cost of staying in Tashkent was $178 per day.

FAMOUS UZBEKISTANIS

Islam A. Karimov (b.1938) has been president of Uzbekistan since 1991. A famous 20th century writer is Abdullah Quaisi, who wrote the historical novels Days Gone By and the Scorpion from the Pulpit, published in the 1920s. Quaisi was killed in the 1930s during Stalin's purges. Ilyas Malayev (b.1936) is a popular poet and musician.

DEPENDENCIES

Uzbekistan has no territories or colonies.

BIBLIOGRAPHY

Craumer, Peter. Rural and Agricultural Development in Uzbekistan. London: Royal Institute of International Affairs, Russian and CIS Programme; distributed by the Brookings Institution, 1995.

Ferguson, Robert W. The Devil and the Disappearing Sea: A True Story about the Aral Sea Catastrophe. Vancouver, B.C.: Raincoast Books, 2003.

Human Rights and Democratization in Uzbekistan and Turkmenistan. Washington, D.C.: Commission on Security and Cooperation in Europe, 2000.

Kort, Michael. Central Asian Republics. New York: Facts On File, 2004.

Malcomson, Scott L. Borderlands—Nation and Empire. Boston: Faber and Faber, 1994.

Melvin, Neil. Uzbekistan: Transition to Authoritarianism on the Silk Road. Amsterdam: Harwood Academic, 2000.

Nazarov, Bakhtiyar A. and Denis Sinor (eds.). Essays on Uzbek History, Culture, and Language. Bloomington, Ind.: Indiana University, 1993.

Northrop, Douglas Taylor. Veiled Empire: Gender and Power in Stalinist Central Asia. Ithaca: Cornell University Press, 2004.

Seddon, David (ed.). A Political and Economic Dictionary of the Middle East. Philadelphia: Routledge/Taylor and Francis, 2004.