"UZBEK MODEL" OF DEVELOPMENT A MODEL FOR OTHER COUNTRIES

From the first days of independence, thanks to the wise policy of President Islam Karimov, Uzbekistan adhering to its own model of development is steadily following the path of building a democratic state and strong civil society, modernization and renewal of the economy, raise living standards.

As a result of undertaken reforms annually a lot of industrial and commercial facilities come into commission, housing facilities are being increased, operating businesses are being upd ated. Republic advance to protect themselves from the effects of significant global economic shocks, does not allow the crisis to its own economy, rising unemployment, that we can observe in other countries.

Promptly responding to various challenges of the time, our country on the basis of consistently constructed its own model of reforms effectively cooperates with many countries, creating a favorable investment climate, business environment and, at the same time with all of this, increasing its industrial and production and economic potential. As a result, just in 2015, as noted in a recent report by the President at the enlarged meeting of the Cabinet of Ministers, they have carried out a huge scale and in-depth work on renewal and reform of the country achieve stability and sustainable growth and macroeconomic balance of economy.

Instead of forced - evolutionary

The era of independence in Uzbekistan was marked by transition to a market that has become the most important stage of development.

Market motivates to be receptive to innovation, the head of our state stressed, to implement boldly and vigorously the latest achievements of science and technology, to appreciate the professionalism, that is, to achieve what could not be done in a centralized management of the economy. Thanks to the market a kind of crystallization of cultural traditions is carried out, when the greatest development get those who are able to provide the country with a comparative advantage in a particular area. Market relations can provide, on the one hand, the effective use of the enormous potential that are inherent in the productive forces of the republic, and on the other - to overcome dependency, to develop initiative and enterprise, to restore incentives and lost sense of ownership finally break the dictate of the manufacturer and the subordinate manufacturing to interests of consumer.

The transition to a market economy, as international experience demonstrates, can be carried out in two main ways: forced or evolutionary. The first requires a radical reform, a complete renunciation of the current economic relations. This so-called "shock therapy" at that time was strongly recommended to the young republic by different "experts". However, rejecting an unacceptable way for national economy, Uzbekistan has chosen the second, evolutionary one. This allowed gradual transforming into a market economy with a minimum of social upheaval.

Formed own model of incremental transformation of the economy based on market relations, has been recognized by the international community as the "Uzbek model". Foreign business circles, analysts note that the government of Uzbekistan has pursued a wise and far-sighted policy, implemented a set of reforms is not only effective, but also is practical and capable of becoming a good example for individual countries who have chosen as Uzbekistan market development path. In support this is evidenced by the fact that over last 11 years the GDP growth rate did not fall below 8 percent.

At the same time before gaining independence Uzbekistan has been a cotton base, the main supplier of cotton to other regions. Not only the economy is limping, and had a low standard of living. Thus, in 1990, total income is below the subsistence level was about 70 percent of the population, while in other republics - about 30 percent. With the potential to provide itself with energy resources, Uzbekistan imported over 10 million tons of oil. Enterprises for the most part did not work on the reproduction of the goods for the domestic market and for export. It operated a huge natural and human potential of the country, settled revenues far beyond its borders.

Modern Uzbekistan is not only integrated into the global community, the global economic and financial market, but also is a member of many international organizations, the UN is working with financial institutions, it has on its territory of the embassy, diplomatic and other representative offices of many countries. There are more than four thousand of joint ventures established in our country on the basis of partnership and mutual benefit.

Since independence, Uzbekistan’s economy grew by almost six times, per capita income has increased more than nine times, while the population increased by half. Radically changed the appearance of towns and villages, rethinking the principles and methods of urban planning and regional planning, architectural and design improved flavor constructed buildings, there was a modern industrial and non-industrial infrastructure. Earlier in the rural areas most people live mainly in mud houses, the villagers are now living conditions which are not inferior to the city.

As a result of the former republic of Uzbekistan became an agrarian into an industrial country, has achieved not only fuel, but also the grain self-sufficiency, has created his own automobile, other modern industries. Much better to live for the people, increased life expectancy and infant and maternal mortality receded. Repeatedly increased state attention to the development of healthy and comprehensively developed young generation. If in the early 90-s only 7.4 percent of young people were involved in sports, at present time - more than 40 percent.

According to report issued last year in ranking "World happiness index", compiled on the basis of sociological research with the participation of experts of the United Nations, World Bank, World Health Organization and others, Uzbekistan took 44th place among 158 countries and the first among the CIS countries. These and other achievements in 24 years, thinking about the question posed "who we were and who we have become today?" today we can confidently answer: we do not exactly the same as they were before believing in their own forces, to successfully follow the chosen path construction of the new economy, a new life.

Feel free to invest in Uzbekistan!

Sustained development of the economy, the problems of employment is usually achieved in two ways: inclusion in the economic turnover of unused, the so-called hidden reserves and opportunities for industries, businesses, and by attracting investments.

In practice, the economic and the other way, of course, have the right to exist. And if the first is considered to be a relatively low-cost and reduces to some extent the burden on the budget, the second allows you to upgrade old and introduce new capital assets and production capacity, making the modern economy, with the rate of innovation. Investing in this approach are the foundation of resource development, to achieve the necessary structural changes and proportions of employment growth.

In Uzbekistan, the investment policy is implemented on the basis of the legal framework formed by: a number of laws, decrees and resolutions of the President, the government. It is constantly being improved, based on the requirements of today’s realities. Thus, in accordance with the presidential decree "On the Program of measures for structural reforms, modernization and diversification of production in the years 2015-2019" provides for implementation on a national scale 846 investment projects worth more than 40 billion dollars, which can be considered a continuation of the course on the creation of innovative and competitive economy.

About notable results pursued by the Republic of the active and targeted investment policy and indicate the following figures: last year invested in our economy about 16 billion dollars. These figures - evidence that the foreign investors and businessmen safely invest in the economy of Uzbekistan, opened his business here.

This situation is due not only to the established in the country a favorable investment climate and business environment. Uzbekistan has been and remains the country’s ability to pay, strictly and promptly fulfill its investment and other commitments. As a result, foreign states, international financial institutions are confided to us to be involved in the implementation of investment projects in different areas.

Enormous choice for a buyer

As historical experience shows, countries are developing successfully, and society became more civilized largely due to the development of the industry. It is this sphere of equipping all branches of modern production tools, the material acts as a base of technical progress.

... A quarter of a century ago in the country industry, by and large, was represented only by agricultural machinery, which was due to purely agrarian economy oriented allotted role and specialization in the existing division of labor. But even at the enterprises of the industry that were considered advanced, the technology used is poor. According to official statistics, by the beginning of 1991, depreciation of fixed assets in the industry as a whole accounted for almost 40 percent, and in the context of individual sectors was even higher. Thus, the level of deterioration of assets in the energy sector reached 43.3 percent, chemical and petrochemical industry - 52.3 percent, metallurgical complex - 45.8 percent, production of construction materials - 50.5 percent. Material and energy intensity of industrial production in 6-7 times higher than in developed countries. In such circumstances the quality of products, especially consumer goods, was appropriate. A paradoxical situation: the industry in the country seems to have been, but at the same time and have minimal potential impact on consumer demand, the needs of ordinary people.

Implementation of the "Uzbek model" of reforms have changed a lot, the industry itself has acquired qualitatively new features, increased its production potential in the share of GDP. Unused established automotive, oil and gas engineering, oil-gas, railway engineering, arranged production of modern building materials, consumer electronics, pharmaceuticals and other products. Domestic production in many ways today is not inferior to foreign analogues. Our customers in the stores increasingly difficult to choose between, say, Dutch cheese, Polish sausage and similar products of our companies, which are not inferior in quality, much more accessible. At the same time more and more foreign customers wallet "voice" for the production of automotive, textile, food and other industries, exported labeled "Made in Uzbekistan".

Efficiency of economic zones

One of the ways to give an impetus to the progressive economic processes is the creation of free economic zones, representing the territory allocated to joint ventures with foreign partners. Here, as a rule, introduced a special tax regime, as well as rent, obtaining visas, labor recruitment, customs rates. According to reports, the world has more than 700 free economic zones of various kinds, through which 30 percent of world trade.

In Uzbekistan in the framework of global trends in 1996 it adopted the Law "On free economic zones", which created the most favorable conditions for foreign investors, industrial and commercial sphere, zeroing in on the growth of employment.

In the initial stages in this direction were taken decisions aimed at testing such new approach for the country. It is about establishing partnerships aimed at improving the business climate, encourage the development of private businesses. After the testing of new forms and methods of management at the initiative of President Islam Karimov on the territory of Navoi region it was created free industrial economic zone "Navoi". In the following set up special industrial zone "Jizzakh" and "Angren".

In the science and practice of the concept of economic efficiency - efficiency - characterizes the level of efficiency of use of equipment, raw materials, investment and other resources. Companies industrial zones of Uzbekistan on the se t of parameters shown steadily increasing rates. There has been a surge of foreign investment, the creation of high-tech industries, jobs and competitive products, the formation of effective management, the strengthening of external economic relations, the growth of exports. That is, the efficiency of the functioning of these economic zones today is quite high.

Of course, in comparison with some of the leading economic powers considered zones are only the initial stage of development, accumulating an important experience. However, in the short term there has been significant economic turnover, the focus of investors, significantly expanding business ties that promises their expansion in the near future.

Green light to small business and entrepreneurship

One of the major achievements of the independence and economic reforms in Uzbekistan was the strengthening of the status of private property.

It was a step of truly historic significance. After all, first, as noted in the book by President Islam Karimov "Economic reform: crucial stage," we were afraid even to words on private property. People wishing to become owners of such property, lived in constant anxiety. At any time, every police officer could confiscate the property acquired by hard work. Over the past period, change the psychology, people’s worldview. The attitude toward work. It has become obvious to all that private property and personal interest do not constitute a "great sin", as is asserted, we ideologues of the former regime.

In modern Uzbekistan status and inviolability of private property in the Constitution. With each year is gaining momentum in small business and private entrepreneurship. This trend, which provides everyone a chance to show the individual talents and abilities, is one of the most important priorities of development of the national economy.

As part of the implemented reforms are implemented and constantly improved the rules and regulations designed to ensure reliable protection of private property, strengthening the rights and guarantees for small business and entrepreneurship, reduction of bureaucracy in business activities, expansion and improvement of the mechanism to support the development of the sphere. Thanks to state support creates different forms of organization of the private sector, increased employment and incomes.

If at the dawn of independence, the share of small business in GDP did not reach two per cent, at the present time, it was 56.7 percent. In the last five years due to the introduction of new and modernization of existing facilities, the advanced development of small business and private entrepreneurship created five million jobs.

The basis for the above achievements are not only available in the country the huge resource potential, growth initiatives and entrepreneurial population, but also marked the desire of the state to reduce the level of its presence in the economy. Confirmation of this - the decision of the President of 28 April 2015 "On measures to increase the proportion of the value of private property and the economy." The document approved measures to implement at public auction to private ownership of state blocks of shares and interests of companies, as well as empty and unused objects, including objects - "zero" redemption value under investment obligations.

Wide road to small businesses and strengthened the position of the private sector has been opened by Presidential Resolution "On measures to ensure reliable protection of private property, small business and private entrepreneurship, the removal of barriers to their rapid development" adopted on May 15, 2015.

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