PresentationPresentation

““The role of state in conducting reforms in Uzbekistan: The role of state in conducting reforms in Uzbekistan: liberalization of political and judicial systems as a main liberalization of political and judicial systems as a main

direction of formation legal democratic state”direction of formation legal democratic state”

May 30, 2006 May 30, 2006

““Uzbekistan: a model of reforms and Uzbekistan: a model of reforms and democratization”democratization”

Geographical location and bordersGeographical location and borders

- Territory – 447,400 sq. km (53- Territory – 447,400 sq. km (53rdrd place in the world) place in the world) - Length of borders – 6,221 km - Plain area – 78 %- Length of borders – 6,221 km - Plain area – 78 %

- Mountain area – 22 % - Double landlocked country - Mountain area – 22 % - Double landlocked country

UZBEKISTAN

Main priorities outlined by the Constitution Main priorities outlined by the Constitution of the Republic of Uzbekistan adopted in of the Republic of Uzbekistan adopted in

December 1992December 1992

promoting values of democracy and promoting values of democracy and secular civil society, secular civil society,

protection of human rights,protection of human rights,

creation of a socially oriented creation of a socially oriented free market economy. free market economy.

The tasks of paramount importanceThe tasks of paramount importance

Creation of the political, legal and constitutional Creation of the political, legal and constitutional foundations of a new state system;foundations of a new state system;

Consolidation of a new system of economic and social Consolidation of a new system of economic and social relations;relations;

Reform of state bodies, both central and local;Reform of state bodies, both central and local;

Change people’s mentality, Change people’s mentality, strengthen the values of strengthen the values of democracy in their minddemocracy in their mind, statute obedience, to , statute obedience, to achieve the reign of lawsachieve the reign of laws

Difficult starting conditions of Uzbekistan for Difficult starting conditions of Uzbekistan for implementation of reforms:implementation of reforms:

Industries were primarily oriented to provide raw Industries were primarily oriented to provide raw materialsmaterials and intermediate products which were and intermediate products which were concentrated in cities, while rural areas accounted for concentrated in cities, while rural areas accounted for more than 60% of Uzbekistan’s population;more than 60% of Uzbekistan’s population;

The share of small businesses in GDP in 1991 was The share of small businesses in GDP in 1991 was only only 1%;1%;

Growing of the only one agricultural crop - cotton, Growing of the only one agricultural crop - cotton, which which accounted for 75% of arable land;accounted for 75% of arable land;

Arable landArable land in Uzbekistan accounts for only in Uzbekistan accounts for only 10%10% of of the total territory of the republic (447,400 square the total territory of the republic (447,400 square kilometers).kilometers).

Arable land per capita:Arable land per capita:

in Uzbekistan - in Uzbekistan - 0.170.17 hectares; hectares;

in Kazakhstan - 1.54;in Kazakhstan - 1.54;

in Kyrgyzstan - 0.26;in Kyrgyzstan - 0.26;

in the Ukraine - 0.59 in the Ukraine - 0.59

in Russia - 0.67in Russia - 0.67

One of the largest ecological problems in the world – One of the largest ecological problems in the world – the Aral Sea dryingthe Aral Sea drying

The excessive use of pesticides and chemical The excessive use of pesticides and chemical fertilizers leaded to pollution of surface and fertilizers leaded to pollution of surface and underground water. underground water.

Infantile death becomes one of the Infantile death becomes one of the highest in the world.highest in the world.

In former USSR Uzbekistan occupied In former USSR Uzbekistan occupied one of the last one of the last places in terms of living standards. places in terms of living standards.

In 1990 aggregated income of about In 1990 aggregated income of about 70%70% of of population of the republic was lower than minimum of population of the republic was lower than minimum of subsistence.subsistence.

Human Development Index in 1990

0.728

0.736

0.7560.756

0.781

0.8030.8030.8060.809

0.8140.819

0.72

0.73

0.74

0.75

0.76

0.77

0.78

0.79

0.8

0.81

0.82L

ith

ua

nia

Esto

nia

Ru

ssia

Be

laru

s

Hu

ng

ary

La

tvia

Ka

zak

hsta

n

Arm

en

ia

Mo

ldo

va

Ta

jik

ista

n

Uzb

ek

ista

n

Demographic Trends(population in mln.)

3,4

10,5

14,1

6,1

15,5

5,99,3

30,7

2,5

49

14

3,33,35

49,3

25,3

10

4,73,5

15,3

7,3

44,4

5,83,2

Lit

hu

ania

Tu

rkm

enis

tan

Kyrg

yzst

an

Taj

ikis

tan

Hu

ng

ary

Kaza

kh

sta

n

Uzb

ekis

tan

Ukra

ine

1975 2001 2015

China

Double-landlocked position of Uzbekistan

Principles of State Development and Principles of State Development and Economic Reforms in UzbekistanEconomic Reforms in Uzbekistan

1.1. Priority of economy over policyPriority of economy over policy

2.2. Government is the major reformer during Government is the major reformer during transition period to market economytransition period to market economy

3.3. Superiority of lawSuperiority of law

4.4. Strong social policy is a constituent element of Strong social policy is a constituent element of market economymarket economy

5.5. Stage-by-stage reformationStage-by-stage reformation

Key tasks of economic reforms during the first years of Independence

creation of multi-leveled economy through consecutive implementation of denationalization and privatization;

stimulation of development of small and private business, creating a real class of owners in the republic;

reorganization of state owned farms into individual private farms, rationalising rent relations and providing land plots for lifelong use with the right to inheritance;

strengthening monetary circulation and, hence, of the national currency, developing financial market;

structural changes in the economy directed to deeper processing of agricultural raw materials and mineral resources, creating modern, technologically equipped base both for export oriented production and for providing internal market with domestically produced goods.

realized to private owners in 2000-2005 - 4,660 enterprises.

realized at Zero Redemption Value during last 3 years - 396 enterprises on total amount of 43.2 bln. soums.

Privatisation

Share of State and Non-State Sectors in GDP

58,4%

65,0%

69,2%

74,2% 74,5% 76,0%

24,0%25,5%25,8%

30,8%35,0%

41,6%

1995 1997 1999 2001 2003 2005

State sector Non-State sector

SHARE OF SMALL SHARE OF SMALL ENTERPRISES IN GDPENTERPRISES IN GDP

Number of enterprises Number of enterprises - 310,000

Sum of allocated credits – 419.9 bln. soumSum of allocated credits – 419.9 bln. soum

Number of minibanks – 1,450Number of minibanks – 1,450

Over 65% of total labour force of economyOver 65% of total labour force of economy

Small and Private Businesses in 2005

1.5%

29.1%

33.8%35.5%

38.2%

1992 1999 2001 2003 2005

Total number of private farms exceeds now 190,000 (in 1997 – 19,500).

Private farmers produce more than 66% of cotton and 55% of grains.

In order to develop market infrastructure for farms 268 minibanks, 250 outlets of fertilizer and 320 outlets of lubricants distribution, 624 motor tractor fleets, 278 outlets for storing and distributing agricultural products were established.

Agriculture

Number of commercial banks - 2929, incl. 9 private banks, 5 banks with foreign investment.

Assets of commercial banks - 5.6 trln. soum Assets of commercial banks - 5.6 trln. soum (12.5% increase). (12.5% increase).

Number of issued plastic cards – 2 mln. Number of issued plastic cards – 2 mln. (5-fold increase).(5-fold increase).

10 leasing companies. 10 leasing companies.

23 investment companies. 23 investment companies.

Banking and Financial sector in 2005

Commercial banks' capital growth

(bln. soum)

Commercial banks' capital growth

(bln. soum)

791

824

931

2003 2004 2005

Investments and credits in 2002-2004($ 2406 mln.)

EU 726.6

IFI 391.1

USA 262.8

Turkey 223.3

Israel 203.5

Korea 191.7

Japan 158.3

Switzerland 91

China 59

Middle East 31.3

Russia 27

Cooperation with Russia in sphere of energy (2005-2006): $ 2.5 bln.

May 2005, China: agreements signed on a total amount of $ 1.5 bln.

March 2006, Korea: agreements signed on a total amount of $ 1.8 bln.

Industry of Uzbekistan nowadays consists of more than 100

branches, both extracting and processing ones

Industry of Uzbekistan nowadays consists of more than 100

branches, both extracting and processing ones

During the years of independence, manufacture of more than 900 new kinds

of products has been mastered

During the years of independence, manufacture of more than 900 new kinds

of products has been mastered

Automotive industry

High Technology Industry

UzDaewoo Auto – Uzbek-Korean JV: - set up in 1996 in Andijan produced more than 500,000 cars since its creation; - car production in 2005 – 101,010 cars (44% increase); - the 4th largest foreign car supplier on Russian market after Hyundai, Chevrolet and Ford. - planned production for 2006 – 140,000 cars

SamKocAuto – Uzbek-Turkish JV, established in 1999 to produce midibusses and trucks.

Car industry

Number of enterprises – more than 100. Share in automotive production of Central Asia – 67%. The largest producer of machinery for all phases of cotton cultivation and processing and irrigation in CIS.

High Technology Industry

Tashkent tractor plant “TTZ” production in 2005 – 3,500 tractors, which are delivered for domestic, Russian, Afghan and Turkish consumers.

UzCaseMash JV – producer of modern agricultural machinery, incl. tractors and cotton harvesters

Agricultural machinery

Technical Services Centre of Western-made aircraft of Uzbekistan Airways Technics is the unique institution in Central Asian region and CIS.

30 IL-114 airplanes produced by TAPOiCh will be supplied to Russia by 2008.

Aircraft industry

47.9

3436

38.619

1992 1996 1998 2000 2005

Share of Cotton Fiber in Total Export (%)

0

50

100

150

200

250

300

350

1997 1999 2001 2002 2005estim.

Domestic Processing of Cotton Fiber (thou.tn)

Index A Cotlook ($/tn)

1272,1

1556,4

2078,9

1887,1

1731,7

1591,7

1298,5

921,7

1299,6

1150,6

1261

1390

1433

1164,0

1505,3

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

*

* - forecast* - forecast

In 2005 GDP: was 30.1% higher than in 2000 was 28.2% higher than in 1991

GDP GROWTH (%)GDP GROWTH (%)

INDUSTRIAL PRODUCTIONINDUSTRIAL PRODUCTION 7.3%7.3%

CONSUMER GOODS PRODUCTIONCONSUMER GOODS PRODUCTION 17.7%17.7%

AGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTION 6.2%6.2%

-11.1

-2.3-0.9

5.24.3 4.2 4.4

7.7 7 7.2

1992 1993 1995 1997 1999 2001 2003 2004 2005 2006*

GDP and Cotton Price Tendencies

2078,94

1591,72

1298,51 1261,03

921,74

1299,61

1164,03

1887,14

1150,58

1505,30

13901432,99

1731,71

1556,45

1272,05

-11,1

-2,3

-5,2

-0,9

4,47

7,7

4,24,23,84,34,35,2

1,7

800

1000

1200

1400

1600

1800

2000

2200

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Index A, $/tn

-12

-8

-4

0

4

8

Annual GDP growth, %

Index A Cotlook ($/tn) Real GDP Growth (in % to prev. year)

Improvement of foreign trade structure and growth of trade balance in 2005

Foreign Trade Balance Foreign Trade Balance (mln. USD)(mln. USD) export growth - 11.5%

import growth - 7.2%

the share of finished goods and services in export exceeded 50%

the share of machinery and equipment in import - 44%

239,5317,3 274

1000

1317,5

760

1998 2000 2002 2003 2004 2005

Mineral Resources Base of Uzbekistan

Estimated volume of the total mineral resources - $11 trln, only 17% reserves of which are discovered

Annual volume of natural gas exports – $ 477.15 mln.

Gas-main pipelines length – 13,000 km

Total revenue for natural gas transit – $ 118 mln.

Estimated uranium reserves - 55,000 tn

Total deposits of natural gas – 7.8 trln. cub. m

May 11, 2006 date of the President’s Decree

Fund’s budget: $ 1 bln. (to be set in 2006-2009)

Main tasks:

- accumulate financial resources for developing crucial economic branches and structural reforms in economy;

- financing implementation of national socially important state programmes and projects, primarily in perspective but not sufficiently developed regions;

- financing modernization of transport and telecommunication infrustructure

Fund of Reconstruction & Development

Due to privatization, strengthening of private Due to privatization, strengthening of private property, stimulation of the establishment of small property, stimulation of the establishment of small enterprises and micro firms, farmers and enterprises and micro firms, farmers and entrepreneurship the entrepreneurship the middle class is getting shape in the middle class is getting shape in the country as a foundation of democratic societycountry as a foundation of democratic society..

Basically private entrepreneurs initiated the Basically private entrepreneurs initiated the creation of new creation of new Liberal Democratic partyLiberal Democratic party, which was , which was very active during elections in December 2004 of new very active during elections in December 2004 of new (two-chamber) Parliament.(two-chamber) Parliament.

These people indeed are the main support of our These people indeed are the main support of our society, its social basis, because they are most society, its social basis, because they are most interested in maintaining and deepening of the reforms, interested in maintaining and deepening of the reforms, stable and sustainable development of the country.stable and sustainable development of the country.

Evolution of Uzbek ParliamentEvolution of Uzbek Parliament

One Chamber Parliament was created during first One Chamber Parliament was created during first years of Independence while multiparty system was not years of Independence while multiparty system was not developed yet and there was a lack of professional developed yet and there was a lack of professional politicians. politicians.

During the first years of Independence of Uzbekistan During the first years of Independence of Uzbekistan there was a need of mobile Parliament ensuring legal basis there was a need of mobile Parliament ensuring legal basis for large-scale reforms in all spheres of life in the country.for large-scale reforms in all spheres of life in the country.

Oliy Majlis (first convocation elected in 1994 and Oliy Majlis (first convocation elected in 1994 and 1999) adopted 232 laws, 12 Codes, 2 National Programs, 1999) adopted 232 laws, 12 Codes, 2 National Programs, 1445 legislative amendments. Besides, 135 International 1445 legislative amendments. Besides, 135 International Conventions were ratified.Conventions were ratified.

Parliamentary reform started in 2002 Parliamentary reform started in 2002 and important changes it has brought:and important changes it has brought:

Firstly,Firstly, a bicameral Parliament has been formed. a bicameral Parliament has been formed. Lower Lower Legislative professionalLegislative professional Chamber of the parliament consists of Chamber of the parliament consists of 120 deputies120 deputies..

Secondly,Secondly, take over by upper house – Senate of some take over by upper house – Senate of some authorities from the President (authorities from the President (100 senators100 senators).).

ThirdlyThirdly,, the main actors of election process became the main actors of election process became political parties and independent groups of electorate, citizens’ political parties and independent groups of electorate, citizens’ self-governing bodies.self-governing bodies.

Fourthly,Fourthly, introduction of 30% introduction of 30% women quotawomen quota for for candidates from political parties. As a result 18% of elected candidates from political parties. As a result 18% of elected deputies are women. deputies are women. It is 2.5 times more than in previous It is 2.5 times more than in previous Parliament elected in 1999Parliament elected in 1999..

Main objectives of two chambers` ParliamentMain objectives of two chambers` Parliament

First,First, Legislative ChamberLegislative Chamber is carrying out its activities on is carrying out its activities on permanent professional basis permanent professional basis should provide the overall should provide the overall improvement of quality of the lawsimprovement of quality of the laws being adopted to further being adopted to further reform all spheres of the country.reform all spheres of the country.

Second,Second, achievement achievement of balance of state and regional of balance of state and regional interestsinterests, because , because – Senate– Senate is elected from the deputies of is elected from the deputies of local, regional, city and district elective bodies.local, regional, city and district elective bodies.

Third,Third, intensification of activities of political parties in legislative intensification of activities of political parties in legislative work, work, defending interests of electorate while initiating defending interests of electorate while initiating legislative amendments aimed at improvement of legal legislative amendments aimed at improvement of legal environmentenvironment..

Composition of the new ParliamentComposition of the new Parliament

489 candidates participated in elections, 489 candidates participated in elections, including from including from 5 political parties – 435 candidates5 political parties – 435 candidates;;

from independent voter initiative groups - 54from independent voter initiative groups - 54(4-5 candidates for every seat in Legislative chamber).(4-5 candidates for every seat in Legislative chamber).

The seats in Lower Chamber of Oliy Majlis were The seats in Lower Chamber of Oliy Majlis were divided between the following parties and groups:divided between the following parties and groups:

Liberal Democratic PartyLiberal Democratic Party - 34,2% (41);- 34,2% (41); People’s Democratic PartyPeople’s Democratic Party - 23,3% (28);- 23,3% (28); "Fidokorlar“ National Democratic Party"Fidokorlar“ National Democratic Party - 15% (18);- 15% (18); "Milliy Tiklanish" Democratic Party"Milliy Tiklanish" Democratic Party - 9,2% (11);- 9,2% (11); "Adolat" Social Democratic Party"Adolat" Social Democratic Party - 8,3% (10); - 8,3% (10);  Initiative GroupsInitiative Groups - 10% (12).- 10% (12).

““Our main long-term and strategic aim remains the Our main long-term and strategic aim remains the same – firmly, consequently and steadily lead the country same – firmly, consequently and steadily lead the country towards chosen path of democratic development and towards chosen path of democratic development and creation of civil society, deepening of market oriented creation of civil society, deepening of market oriented reforms and strengthening of democratic values in the reforms and strengthening of democratic values in the minds of our people”.minds of our people”.

In his speech at the first joint meeting In his speech at the first joint meeting of Legislative Chamber and Senate of Oliy of Legislative Chamber and Senate of Oliy Majlis (Parliament) of Uzbekistan after the Majlis (Parliament) of Uzbekistan after the election in December 2004 of two chamber election in December 2004 of two chamber parliament the President of the Republic of parliament the President of the Republic of Uzbekistan Islam Karimov declared:Uzbekistan Islam Karimov declared:

The priority tasks and directions of The priority tasks and directions of reformsreforms

““From strong state to strong civil society”From strong state to strong civil society”

The administrative reformThe administrative reform is aimed at changing the functions is aimed at changing the functions of administrative structures; of administrative structures;

-elimination and fundamental decrease of their authoritative,elimination and fundamental decrease of their authoritative,regulative and controlling functions;regulative and controlling functions;

-prohibition of direct interference and regulation of activities prohibition of direct interference and regulation of activities of economic enterprises. of economic enterprises.

From 2001 to 2005 the total number of administrative From 2001 to 2005 the total number of administrative personnel reduced by 75 000 people or by 35.5% including: personnel reduced by 75 000 people or by 35.5% including:

in the republican bodies in the republican bodies – by 21%, – by 21%, in local administrative bodies in local administrative bodies – by 63.5%, – by 63.5%, economic organization administrations economic organization administrations – by 30,5%.– by 30,5%.

Share of administrative staff in total employed population

7,1%

4,9%4,5% 4,4%

4,2%4%

3,6%3,4%

2,3%

1,6%

Aze

rbai

jan

Ru

ssia

Ukr

ain

e

Mo

ldo

va

Geo

rgia

Kaz

akh

stan

Kyr

gyz

stan

Bel

aru

s

Arm

enia

Uzb

ekis

tan

Slogan “Less State in Economy”Slogan “Less State in Economy” is becoming more and more popular in the country.is becoming more and more popular in the country.

As of 1 July 2005 the financial sanctions and As of 1 July 2005 the financial sanctions and suspension of operations on current bank accounts suspension of operations on current bank accounts against entrepreneurs could be applied only through against entrepreneurs could be applied only through court procedurescourt procedures. .

In first quarter of 2006 Ministry of Justice of In first quarter of 2006 Ministry of Justice of Uzbekistan considered 3987 complaints from Uzbekistan considered 3987 complaints from entrepreneurs on abuse of their rights and interests. entrepreneurs on abuse of their rights and interests. Accordingly, on the basis of 2880 cases (72.2%) the Accordingly, on the basis of 2880 cases (72.2%) the representatives of governmental and administrative representatives of governmental and administrative bodies have been called to account. bodies have been called to account.

Liberalization of the judicial and legal systemLiberalization of the judicial and legal system

Specialization of courts on criminal, civil and economic Specialization of courts on criminal, civil and economic matters has been carried out.matters has been carried out.

Institutes for appellate and cassation jurisdiction have Institutes for appellate and cassation jurisdiction have been introduced by the Law. been introduced by the Law.

The term of investigation and detaining people in The term of investigation and detaining people in custody has been substantially shortened. custody has been substantially shortened.

Fixed terms of case proceedings have been set up.Fixed terms of case proceedings have been set up.

On January 1, 2008 the Law on transfer to courts On January 1, 2008 the Law on transfer to courts authority of issuing the warrant, taking into custody as authority of issuing the warrant, taking into custody as well as applying other measures of judicial compulsion well as applying other measures of judicial compulsion will enter into force.will enter into force.

Cardinal measures to liberalize the country’s Cardinal measures to liberalize the country’s criminal law:criminal law:

The classification of crimes have been altered with The classification of crimes have been altered with significant extension of corpus delicti falling under the significant extension of corpus delicti falling under the category of less grave crimes that do not represent a category of less grave crimes that do not represent a danger to the public.danger to the public.

As a result persons who committed offences of not great As a result persons who committed offences of not great danger to the public did not loose their freedom but forced danger to the public did not loose their freedom but forced to pay off material damage caused by their crimes.to pay off material damage caused by their crimes.

Sentence serving conditions are essentially improved at Sentence serving conditions are essentially improved at penitentiaries, articles extended providing for early penitentiaries, articles extended providing for early release and significantly mitigate terms and conditions of release and significantly mitigate terms and conditions of keeping in prisons.keeping in prisons.

The The Institute of ConciliationInstitute of Conciliation is introduced into legislation is introduced into legislation as a form of administering justice.as a form of administering justice. Employing this institute made it possible to relieve from Employing this institute made it possible to relieve from criminal punishment over 26 thousand people.criminal punishment over 26 thousand people.

As a result of the liberalization, the ratio of persons As a result of the liberalization, the ratio of persons serving sentences decreased by more than 2 times.serving sentences decreased by more than 2 times.

Today the number of inmates per 100 thousand people Today the number of inmates per 100 thousand people in Uzbekistan is 158in Uzbekistan is 158, whereas , whereas

in the US in the US – 715, – 715, in Russia in Russia – 584, – 584, in Ukraine in Ukraine – 416, – 416, in Kazakhstan in Kazakhstan – 386, – 386, in Kyrgyzstan in Kyrgyzstan – 390, – 390, (International Center(International Center

in Estonia in Estonia - 389. - 389. of prison studies)of prison studies)

Exclusion of death penaltyExclusion of death penalty

from the category of punishments from January 1, from the category of punishments from January 1, 20082008

The number of crimes, for which death penalty would The number of crimes, for which death penalty would be passed, was curtailed :be passed, was curtailed :

from from 3333 toto 1313 in 1994; in 1994;

from from 1313 toto 44 in 2001; in 2001;

from from 44 toto 22 in 2003 including terrorism and in 2003 including terrorism and premeditated murder under an aggravating circumstances.premeditated murder under an aggravating circumstances.

Legislation bans to administer a capital punishment with Legislation bans to administer a capital punishment with regard to women, under aged persons and persons aged over regard to women, under aged persons and persons aged over 60.60.

Development and support of NGOs

The rights and guarantees of NGOs activity are secured by Constitution and Laws “On Public Organizations”, “On Public Funds”, “On Non-Governmental Non-Commercial Organizations” and others.

More than 5.000 NGOs are registered.

The main areas of activity – protection of Human Rights, Healthcare, Education, Physical and Spiritual Training, assistance to socially vulnerable groups of population, Protection of Environment, Social Infrastructure Development etc.

50% of NGOs are involved in the spheres dealing with women’s interests and rights.

Literacy level

99,53%

98,89%99,2%

both genders male female

Female economic activity rate (% age 15 and above)

62,662,561,261,161,060,359,559,258,157,655,5

53,0

50,3

45,6

42,2

39,938,6

35,835,4

Eg

ypt

Pak

ista

n

Ital

y

Bel

giu

m

Ind

ia

Net

her

lan

ds

Tu

rkey

Un

ited

Kin

gd

om

Ukr

ain

e

Lit

hu

ania

Taj

ikis

tan

Ru

ssia

No

rway

Mo

ldo

va

Kyr

gyz

stan

Kaz

akh

stan

Cze

ch R

epu

bli

c

Uzb

ekis

tan

Sw

eden

Non-governmental, non-profit organisations (NNOs)

Two new structures were created in 2005: National Association of nongovernmental, nonprofit organizations of Uzbekistan (NANNOUz) and Fund for support of nongovernmental, nonprofit organizations of Uzbekistan (NNO Support Fund).

The main objectives of them are: thorough support of NNOs; participation in further liberalization processes and strengthening democratic values; increasing activities in political, economic, social and cultural life; reinforcement of basis for legal state and protection of human rights; stimulation of institutes of civil society and promotion of inter-national, inter-religion, inter-cultural tolerance.

In March 2005 during the first contest of NANNOUz within NNO Support Fund over 80 projects of the national NNOs were considered, 19 of which with the total budget of 73 mln. soums have been approved.

Increasing the role of bodies of self-governance Increasing the role of bodies of self-governance ((MakhallaMakhalla))

MakhallaMakhalla has big historical experience of development as has big historical experience of development as association uniting people by the place of residence and association uniting people by the place of residence and carries out following activities: carries out following activities:

distributing state and other assistance to families in distributing state and other assistance to families in need; need;

organizes accomplishment of streets, sport organizes accomplishment of streets, sport tournaments;tournaments;

secures prevention of crimes and protecting the rights secures prevention of crimes and protecting the rights and interests of family, women and followers of different and interests of family, women and followers of different religions. religions.

The governing authorities of Makhalla are elected from The governing authorities of Makhalla are elected from the most prominent and respected people. the most prominent and respected people.

The number of Makhalla in Uzbekistan reaches about 10 The number of Makhalla in Uzbekistan reaches about 10 thousandthousand. .

Makhalla as a self-governing body should become a basis Makhalla as a self-governing body should become a basis of civil society thus providing path to strong democratic of civil society thus providing path to strong democratic state.state.

Freedom of religion and beliefFreedom of religion and belief

number of representatives of religious confessions - number of representatives of religious confessions - 1616;;

number of number of registered religious organizations registered religious organizations - - 2,2022,202, , incl. incl. 1,918 Islamic and 186 other non Islamic 1,918 Islamic and 186 other non Islamic organizationsorganizations;;

over over 45,00045,000 people people have been have been grantedgranted assistance to assistance to make make HHajj pilgrimages to Saudi Arabiaajj pilgrimages to Saudi Arabia;;

over 150 have been over 150 have been granted granted assistance to make assistance to make pilgrimages to Christian and Jewish holy sites in pilgrimages to Christian and Jewish holy sites in Russia, Greece and IsraelRussia, Greece and Israel;;

system of religious education includes the Tashkent system of religious education includes the Tashkent Islamic Institute,Islamic Institute, Tashkent Islamic University, Tashkent Islamic University, 10 10 madrassasmadrassas,, a as well ass well as Orthodox and Protestant Orthodox and Protestant seminariesseminaries..

The secular state attitude towards religious beliefs The secular state attitude towards religious beliefs and convictions is guided by the following and convictions is guided by the following

principles:principles:

recognition that religious convictions are the private practice recognition that religious convictions are the private practice of citizens or their communities; of citizens or their communities;

recognition of the inadmissibility of using religion for recognition of the inadmissibility of using religion for destructive purposesdestructive purposes. .

This final principle corresponds to This final principle corresponds to Article 18 of the Article 18 of the International Convention on Civil and Political RightsInternational Convention on Civil and Political Rights, which , which upholds the right of every human being to freedom of thought upholds the right of every human being to freedom of thought

and of faith, and adds that:and of faith, and adds that:

“ “Freedom to profess a faith or believe may be limited Freedom to profess a faith or believe may be limited pursuant to the provisions of the Law to provide social pursuant to the provisions of the Law to provide social security and safety, public order, health, and to protect the security and safety, public order, health, and to protect the moral and major rights and freedoms of other people”.moral and major rights and freedoms of other people”.

Uzbekistan support the idea that religion should Uzbekistan support the idea that religion should accomplish its role in introducing the highest spiritual, accomplish its role in introducing the highest spiritual, moral and ethical values, and in forming a part of the moral and ethical values, and in forming a part of the historical and cultural heritage among the population. historical and cultural heritage among the population.

But it is not admissible to put religious slogans on But it is not admissible to put religious slogans on the banner in the struggle for power - a pretext for the banner in the struggle for power - a pretext for intervention in politics, economy and legislation - intervention in politics, economy and legislation - because it is considered as serious potential threat to because it is considered as serious potential threat to the stability and security of the state.the stability and security of the state.

Liberalization of mass-media and accelerated Liberalization of mass-media and accelerated development of information societydevelopment of information society

597 newspapers, 145 magazines, 43 TV studios, 12 radio 597 newspapers, 145 magazines, 43 TV studios, 12 radio stations, 93 electronic editors and 4 information agencies stations, 93 electronic editors and 4 information agencies registered in the country.registered in the country.

The audience of the republican TV and radio broadcast The audience of the republican TV and radio broadcast consists of consists of 30 million people30 million people including some close including some close territories of neighboring countries.territories of neighboring countries.

The audience of The audience of 60 non-state TV and Radio60 non-state TV and Radio studios studios consists of consists of 18 million18 million people, and the area of their people, and the area of their broadcast covers broadcast covers 70%70% of the territory of the country. of the territory of the country.

There are There are 62 foreign journalists62 foreign journalists accredited in Uzbekistan accredited in Uzbekistan representing representing 43 leading world mass-media43 leading world mass-media..

Indicators of information infrastructure development

400348

590

463

640

855

125

235 211,8

394,5

526

1149,9

number of publicInternet access

points

number ofcomputers (thou.)

regular internetusers (thou.)

cellularcommunicationabonents (thou.)

2003 2004 2005

Average cost of Internet access (UZS/hour)

2002 2003 2004 2005

1000

440

550

700

Electronic GovernmentShare of Government Institutions with websites

76,90%

87,30%

96,70%

2003 2004 2005

EDUCATION OF NEW GENERATIONEDUCATION OF NEW GENERATION

The State Program for Development of School and The State Program for Development of School and professional Education is adopted;professional Education is adopted;

9% of GDP9% of GDP is allocated for implementation of the is allocated for implementation of the National Program for the development of school and National Program for the development of school and professional education; professional education;

839839 professional colleges are established (planned professional colleges are established (planned number till 2009 is number till 2009 is 16001600); );

9,8009,800 schools with education in 7 languages: Uzbek – schools with education in 7 languages: Uzbek – 8,671, Russian – 762, Kazakh – 581, Karakalpak – 376, 8,671, Russian – 762, Kazakh – 581, Karakalpak – 376, Tajik – 318, Turkmen – 64, Kyrgyz – 56.Tajik – 318, Turkmen – 64, Kyrgyz – 56.

the measures are taken to increase an educational level the measures are taken to increase an educational level up to the international standards.up to the international standards.

Number of students

446,100

545,900

684,000

324,100

254,400232,300

207,200183,600

2000 2001 2002 2003

students of secondary specialised education institutionsstudents of higher education institutions

SOCIAL REFORMS AND HEALTHCARESOCIAL REFORMS AND HEALTHCARE

programs and measures on rendering concrete practical aid programs and measures on rendering concrete practical aid and moral support to socially vulnerable layers of the and moral support to socially vulnerable layers of the populationpopulation are realized; are realized;

2006 is announced as «Year of Charity and Medical Staff»;2006 is announced as «Year of Charity and Medical Staff»; 263,000263,000 of medical personnel including of medical personnel including 81,000 81,000 professional professional

doctors;doctors; 167 polyclinics, 11 large hospitals in Tashkent and 13 167 polyclinics, 11 large hospitals in Tashkent and 13

regional hospitals;regional hospitals; 205 emergency aid services, 98 clinics on treatment of 205 emergency aid services, 98 clinics on treatment of

tuberculosis, 20 clinics and the centers of treatment of tuberculosis, 20 clinics and the centers of treatment of oncology diseases are established;oncology diseases are established;

5 research centers and 11 high medical educational 5 research centers and 11 high medical educational institutions are functioning in Uzbekistan.institutions are functioning in Uzbekistan.

Life expectancy index in 2003

0,70

0,69

0,67

0,640,64

0,62

0,6

0,61

0,62

0,63

0,64

0,65

0,66

0,67

0,68

0,69

0,7

Turkmenistan Kazakhstan Tajikistan RussianFederation

Kyrgyzstan Uzbekistan

0,68

1995

0,70

0,69

0,67

0,640,64

0,62

0,6

0,61

0,62

0,63

0,64

0,65

0,66

0,67

0,68

0,69

0,7

Turkmenistan Kazakhstan Tajikistan RussianFederation

Kyrgyzstan Uzbekistan

0,68

1995

International aid ($ per capita)

2,882,220,72,13

5,24

62,04

15,22

27,27

7,605,59

18,04

39,12

22,85

0

10

20

30

40

50

60

Kyrgyzstan Tajikistan Kazakhstan Turkmenistan Uzbekistan

1992 1995 1999 2001 2002 2003

Official Development Assistance Received by Landlocked Countries in 2001

(as % of GNI)

20,6%19,3%

15,7% 15,5%

12,9%

9,7%

4,3%

1,4%

Mo

ng

oli

a

Bu

run

di

Bu

rkin

aF

as

o

Ta

jik

ista

n

Ky

rgy

zsta

n

Arm

en

ia

Aze

rba

ija

n

Uzb

ek

ista

n

Distribution of TACIS funds in 1991-2006(euro per capita)

6,27,17,510,911,2

14,414,9

18,419,621,05

25,326,3

33,2

Arm

en

ia

Ge

org

ia

Mo

ldo

va

Uk

rain

e

Aze

rba

ija

n

Ky

rgy

zsta

n

Mo

ng

oli

a

Ru

ss

ia

Tu

rkm

en

ista

n

Ka

zak

hs

tan

Be

laru

s

Ta

jik

ista

n

Uzb

ek

ista

n

Human Development Index Trends

0,781

0,74

0,7560,756

0,809 0,806

0,728

0,800,80

0,810,819

0,84

0,81

0,824

0,7

0,83

0,804

0,729

0,765

0,729

0,68

0,779

Lit

hu

ania

Est

on

ia

Ru

ssia

Bel

aru

s

Hu

ng

ary

Lat

via

Kaz

akh

stan

Arm

enia

Mo

ldo

va

Taj

ikis

tan

Uzb

ekis

tan

1990 2001

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