Like many new independent states, Uzbekistan is faced with various issues and trying to solve them. These include terrorism, which is now a major problem for countries the world over. The Central Asian republic, north of Afghanistan, which celebrated its 13th anniversary of independence on Sept. 1, has become an active participant of international affairs. In fact, the international community has highly appreciated the initiatives of the country’s leadership such as setting up of an international center to combat terrorism under the UN Security Council in 2001, bringing peace and stability to Afghanistan, and establishing a nuclear free zone in Central Asia. These follow a number of initiatives taken and proposals put forward to provide for regional and global security.
Uzbekistan has not limited itself to initiatives, but also has taken an active part in implementing progressive ideas, which include the international center to combat terrorism.
The country has also become one of the closest allies of the coalition forces during the military operations in Afghanistan that aimed to eradicate international terror cells, religious extremism and fundamentalism. The country provided the coalition forces its military bases for search and rescue operations and gave permission for over-flights.
During that time, the West, the United States in particular, came to realize the importance of Uzbekistan in regional security framework and secured a treaty on strategic partnership with it. At the same time, Uzbekistan had its presence in the Shanghai Cooperation Organization (SCO) and is known to have played a vital role in ensuring regional security and fostering multilateral cooperation among participating countries.
During the chairmanship of Uzbekistan in SCO from May 2003 to June 2004, the Beijing-based executive committee of the organization and regional antiterror center in Tashkent began to operate long before the supposed date of their launch. Many issues within the framework of the organization were resolved. As Zhang Deguang, Chinese diplomat and chairman of the SCO executive committee put it, the chairmanship of Uzbekistan’s spirit of initiatives and creativity enabled to conclude the establishment phase of the SCO and move toward the phase of practical activities.
During the chairmanship of Uzbekistan, the SCO international relations have tangibly grown. Mongolia has secured the observer status. Afghanistan President Hamid Karzai participated in the SCO Tashkent Summit. It was Uzbekistan President Islam Karimov who initiated the participation of the Afghan leader in the forum. The two regional players and powerful states such as Russia and China duly appreciated the efforts of the Uzbek government to foster the regional integration and promote security.
In this context, in 2004, within the framework of the SCO Tashkent Summit, the leaders of Uzbekistan and Russian Federation signed a treaty on strategic partnership. During the Uzbekistan-China summit, the two countries agreed to take bilateral relations to a new level.
As for the intense pace of development in Central Asia, several analysts have made superficial and premature conclusions as to maintain that Uzbekistan had sidelined the strategic cooperation with the West and embraced the new strategic partners.
But these conclusions are baseless. The strategic cooperation with the United States is still one of the priority areas of Uzbek foreign policy. At the same time, the close relations with Europe, Japan and other leading countries are no less important.
The single main logic with such foreign policy is that international terrorism, religious extremism and drug trade appear to be the main threats to world stability, and the only way to address them is to tighten and broaden international cooperation.
Since Central Asia is located on the frontline of the fight against international terror, it should turn into the venue of international collaboration and not one of competition. So, the ultimate goal of Uzbekistan is to unite the efforts of all countries to establish a stable and prosperous environment in the region, with developments aimed at common goals and objectives.
On the economic front, Uzbekistan is pursuing stable reforms. This is because it was beset with the one-sided economy it inherited from the previous Soviet regime. Rich in raw materials including “white gold” (cotton), and other agricultural products, and mineral resources, the country chose its own way of development that has come to be known as the Uzbek Model. The cornerstone of such a model has become the economic policy, aimed to radically restructure the industry, establish and master the new and progressive methods of production, equipped with the latest technologies as well as raising the share of readymade products for exports.
During the Soviet era, intensive production of cotton and grain led to overuse of agrochemicals and the depletion of water supplies, which have left the land poisoned and the Aral Sea and certain rivers half dry. Since its independence in 1991, the country has been seeking to lessen its dependence on agriculture while developing its mineral and petroleum reserves.
It is a country with ancient history that was once regarded as a pearl of the Great Silk Road. Even though the decades-long subjugation deprived it of many opportunities, the achievements and successes of the past several years of independence outweigh the centuries by their essence.
Five principles, elaborated by the Uzbek president, serve as the basis for political, social and economic reforms. The guiding principles are: The state as the main reformer, the supremacy of the economy over politics, the superiority of law, the gradual process of reformation, and the strong social protection of population.
Today, Uzbekistan is marching ahead with a well-balanced economic policy, which has ensured self-sufficiency in grain and energy resources, growth of industrial production, and rapid development of a host of sectors including machineries, aviation, mining and automobile manufacturing. Also, projects related to oil, gas and coal mining are being well implemented. Goods of import substitution have changed the face of its economy. It is now the fourth in the world in terms of gold reserves, 11th in copper and eighth in uranium. It also has vast natural gas and oil resources.
The role of foreign investments in the economic recovery of the country is equally significant. It has created the most favorable investment environment among the CIS states, mainly because of the measures taken, like ensuring legal guarantees and privileges to overseas investors. At the moment, many joint ventures are successfully operating in the country.
The state investment program for 2004 envisions the realization of 107 projects totaling $4.2 billion in the exploration and mining of hydrocarbon resources, energy, as well as several other spheres of both light and heavy industries. The expansion of foreign economic relations and successful integration into the world economic community is another important factor that has spurred the economy. The country has established trade and economic relations with more than 140 countries around the world.
Its performance in the first half of 2004 shows a sharp growth in both the domestic and overseas markets. Its foreign trade turnover totaled $4.2 billion during the period, marking a 24.5 percent growth over the same period last year. Its exports grew by 25.2 percent to $2.4 billion. The foreign trade balance remains in its favor totaling more than $689 million.
The introduction of national currency convertibility on international current accounts in October 2003 has added a new impetus for its economic growth, particularly resulting in the growth of the role of small and medium businesses. The country’s economic reforms are going on and are not irreversible, as evident from its overall performance in the first half of 2004. Guiding its progress on the domestic scene is its visionary reformist policy and on the international level is its active participation in world affairs making its voice heard and seek changes in the interest of all-round security and prosperity.
