Presentation by Economic Counselor Kamol Mukhtarov
1-й слайд (Introduction)
Welcome to our Embassy. Your participation in today's event, we consider as confirmation of interest and willingness of the US business community to develop economic ties with Uzbekistan.
Taking this opportunity, I would like to briefly inform you about the ongoing economic reforms in Uzbekistan and our vision of the priority areas of trade and investment cooperation with the United States.
2-й слайд (Uzbek model of economic development)
Allow me to start with some background information on Uzbekistan’s economic course.
From day one of our Independence, we have prioritized and made an aim to develop economic strategy focused at creating a modern, competitive and diversified market economy, making it attractive for foreign investments.
Taking in to account the historical, socio-economic and national specifics of the state, we developed our own national model of reforms, which is known as "Uzbek model of reforms".
The core of the reforms are five principles:
1- priority of economy over politics,
2- state - the main reformer,
3- rule of law in all spheres of society,
4- implementation of a strong social policy,
5- gradual transition to a market economy.
3-й слайд (Results achieved)
With implementation of those economic reforms, in a historically short period of time, we have managed to achieve
- Macroeconomic stability;
- Maintain sustainable high rates of economic growth by an average of 8% for the past 11 years;
- Balanced domestic and foreign debt;
- Create a stable banking and financial system;
4-й слайд, (Modern Uzbekistan/Diversified economy)
During past 25 years, we have radically changed structure of our economy. Measures have been taken to diversify the economy, to create new industrial facilities aimed at production of high value added goods.
These efforts have helped us to create entirely new industries such as automobile, agricultural machinery, oil and gas engineering, railway engineering, consumer electronics, pharmaceuticals, food processing, textile and others.
5-й слайд, (Modern Uzbekistan/Diversified economy)
Diversification increased competitiveness and strengthened our economy in the global market. Today’s Uzbekistan – is stable, one of the fastest growing countries in the world where all branches of its diversified economy are functioning successfully. We are leader in Central Asia in terms of infrastructure, industrialization and diversification of economy.
6-й слайд, (Priorities of future economic development)
As you can see, we have achieved a lot, however, it is only the initial stages of our path forward. We still have a long way to build a modern and competitive economy to reach the level of developed countries.
For this purpose just a couple of months ago, the Government conducted a deep and serious critical analysis to identify areas where further measures needs to be taken to ensure sustainable development of the country in coming years.
As a result, the following priority actions were identified:
1. Increasing the share of private sector in the economy;
2. Introduction of modern standards of governance;
3. Strengthening entrepreneurship by elimination of barriers and constrains;
4. Further modernization and diversification of industries;
5. Improving energy efficiency of the economy;
6. Modernization of infrastructure;
7. Expansion of localization program;
7-й слайд, (New initiatives)
The Government has already started implementing concrete measures to accomplish these goals. In particular, during the period of September - November this year we adopted:
1) Decree “On free economic zones" which establishes a single legal regime for all three free economic zones in Uzbekistan (Navoi, Angren and Jizzakh). Unification of tax and customs privileges and preferences aimed to create the most favorable conditions for foreign companies.
8-й слайд, (Preferences in FEZ)
From now on companies establishing production in those free zones will be exempt from all taxes and custom duties.
Privileges are provided for a period from 3 to 10 years depending on the amount of investments, from $300 thousand to $3 million – for a term of 3 years; from $3 million to $5 million – for a term of 5 years; from $5 million to $10 million – for a term of 7 years.
9-й слайд, (New initiatives)
2) Government also approved additional measures for further development of entrepreneurship, the full protection of private ownership and improvement of the business climate. In particular, starting from January 1st 2017, all kinds of inspections over the activities of business entities will be abolished.
Furthermore, in order to strengthen the forms of parliamentary control over the fulfilment of laws in protection of rights and interests of businesses, Government initiated to establish Business Ombudsman institution.
Besides Government submitted a draft of the law on combating corruption to the parliament. Adoption of the law will improve the efficiency of anti-corruption measures, create additional legal guarantees to protect the rights and freedoms of citizens.
Also at the drafting stage are laws “On public procurement” and “On public-private partnership”. Those laws drafted taking into account good experience-based case studies of the US, UK, German, South Korea initiatives.
As you can see the Government is taking concrete and effective measures which will lead to a significant increase of business attractiveness of Uzbekistan and make our country more competitive in terms of providing best investment environment for foreign companies.
10-й слайд, (Attractive factors to do business in Uzbekistan)
We are well aware of existing industrial, financial and technological potential of US companies. These advantages fit into the concept of cooperation with Uzbekistan, ready, in turn, offer its own advantages:
This, above all, rich natural resources, skilled workforce, a favorable investment climate, developed transport infrastructure, advantageous geographical location and a huge market.
11-й слайд (Main areas of cooperation with US companies)
In this regard, I would like to emphasize that Uzbekistan is ready to offer US companies, real opportunities and projects that will bring long-term stable income.
Based on economic and industrial potential of our countries, I would like to underline some of the main areas in which we see the further development of our cooperation with the US companies.
First of all, we invite US companies to participate in privatization program.
We have recently adopted a 5-year privatization program which offers for foreign investors assets of more then 1200 companies. The plan is to increase the presence of private sector in the economy by reducing state involvement in the sectors of economy.
Here I would like to note that we are implementing privatization program to attract strategic investors who can bring new technology, equipment and now-how to organize the production of modern competitive products.
12-й слайд (Main areas of cooperation with US companies)
The second major area of our cooperation we see in implementation of new projects and the establishment of modern export-oriented enterprises.
In the next 5 years, we have planned the realization of 900 new investment projects worth 41 billion. in oil and gas, petrochemical, textile, food, pharmaceutical and construction materials industries.
Here, I would like to draw your attention to the fact that Uzbekistan is planning to expand and strengthen its position as the country, which processes its own natural resources.
In this regards we want to attract foreign investment not just because they provide the financial capital. For us the most important is their ability to bring advanced industrial technology, modern management and marketing skills.
13-й слайд (US companies are welcomed in Uzbekistan)
We would like to see US companies as our main partners in the implementation of the new, long-term, deep structural transformation of our economy.
In conclusion, I want to emphasize that such round tables have always been a bridge for establishing new business contacts and development of new forms of cooperation. I am confident that open and constructive dialogue will allow us to identify the areas of mutual interest and projects for joint implementation.