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USAID Information:
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Uzbekistan
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Small and Medium Sized Enterprises |
122-0131 |
6,412 |
5,190 |
4,509 |
| Energy and Water |
122-0161 | 3,478 |
2,530 |
2,198 |
| Democratic Culture and Institutions |
122-0211 | 7,297 |
5,900 |
5,127 |
| Conflict Prevention |
122-0240 | 1,935 |
1,080 |
938 |
| Health and Population |
122-0320 |
7,361 |
6,060 |
5,265 |
| Improved Quality of and Basic Access to
Basic Education |
122-0340 |
250 |
430 |
468 |
| Cross-Cutting Programs |
122-0420 |
3,131 |
2,780 |
1,965 |
| Transfers |
|
6,024 |
9,530 |
9,530 |
| Total (in thousands of dollars) |
35,888 |
33,500 |
30,000 |
|
The Development Challenge:
The United States' strategic partnership with the Government of Uzbekistan remains of utmost importance, first as a supporter of the war against terrorism and secondly due to its central location within the region and its border with Afghanistan. Following the "Rose Revolution" in Georgia, Uzbekistan implemented new registration and monitoring requirements for international technical assistance organizations in an effort to control their activities and prevent a similar scenario in Uzbekistan. In particular, organizations working to develop democratic principles and rule of law have been affected. Bureaucratic obstacles and the Government's subsequent refusal to reregister the Open Society Institute, along with its failure to register any true opposition political parties in advance of the December 2004 parliamentary elections, resulted in the Secretary of State not certifying Uzbekistan as required by Section 568(a) of the FY 2004 Foreign Operations Appropriations Act. As a result of non-certification, approximately $18 million of FY 2004 assistance to the central government of Uzbekistan was affected. USAID assistance to economic think tanks and the Central Bank on bank accounting were suspended. As part of non-certification, however, the Secretary of State agreed that available notwithstanding authority be used to allow FY 2004 Freedom Support Act funding to continue to certain USAID programs that work with the central Government such as World Trade Organization (WTO) assistance, health care reform, and anti-torture projects.
Governance in Uzbekistan remains autocratic. Corruption is endemic. According to the Government, gross domestic product (GDP) growth remains relatively unchanged at 4.4%; however, other key economic indicators are on a definite downward trend, and external debt grew by about $250 million in 2003. Uzbekistan is plagued by widespread underlying grievances, including unemployment, poor social infrastructure, weak educational and health facilities, and pervasive human rights abuses. Nearly one-third of Uzbeks live below the national poverty line. Fearing unrestricted trade, the Government is making it difficult, if not impossible, for citizens to cross borders. A shortage of cash in circulation, arguably a result of IMF negotiation, has nearly crippled the informal sector despite its intended effect on stabilizing the currency. The most recent round of excessive import controls led to several public outbreaks of unrest between traders and government officials. With approximately 50% of the population below the age of 30, and youth unemployment estimated as high as 30%, the risk of instability is significant.
The development of civil society and democracy strengthening programs are overburdened with new bureaucratic procedures for registration of international NGOs. Highly restrictive banking control measures for granting funds to local organizations are affecting all sectors. These restrictions have resulted in significant delays in approving grants to NGOs, independent media, and Civil Society Support Centers. On the other hand, work with the Government has been promising in such areas as human rights, health care reform, anti-trafficking in persons, water resources management, and WTO accession. Since non-certification, Uzbekistan has taken some very positive steps in human rights, including opening dialogue between the Ministry of Interior and human rights defenders and inviting Freedom House, Human Rights Watch, and the U.S. Embassy to participate in an investigation into a death-in-custody.
Uzbekistan's population of about 26 million is expected to double over the next 50 years. Current growth rates of about 2.8% remain stable. The result of this growth will be even greater demand on social services, especially in the health and education sectors. Tuberculosis (TB) cure rates remain low and infectious diseases impact a significant percentage of the population. Infant mortality remains high by international standards due to inadequate nutrition, acute respiratory diseases, and diarrhea. HIV infection rates are still increasing and may be as high as 10% among intravenous drug users. The education sector remains severely under-funded. Teacher salaries, educational facilities, and materials fall short of minimal international standards. Low salaries in both sectors force health care providers and teachers to establish informal payment systems that, in turn, change treatment and education priorities from a need-based to a payment-based response system.
USAID and the U.S. Government continue to encourage Uzbekistan to achieve key development objectives in the areas of economic liberalization, political pluralism, and regional stability. As the most populous country in Central Asia, and one which historically has played a leading role in trade, enterprise, and culture, Uzbekistan's development is critical for the region.
The USAID Program:
Continuing with the momentum created by the substantial increase in supplemental funding in 2002, USAID's activities in 2004 have further encouraged democratic reform, market transition, and education in a difficult environment. The program in 2006 will build on important achievements in financial intermediation, conflict prevention, health care reform, press freedom, judicial reform, and natural resource management. USAID is expanding economic opportunities, fostering democratic values and practices, supporting natural resource management, and improved health care services. USAID's seven strategic objectives are: primary health care and infectious diseases; natural resource management; democratic culture; small enterprise development and macro-economic reform; primary education; conflict mitigation; and cross-cutting issues such as gender, anti-corruption, and rule of law. The majority of the programs in civil society, agriculture, microfinance, and health are implemented by local non-governmental organizations (NGOs). Activities related to water resource management at national and local levels contribute to the Water for the Poor Presidential Initiative.
Other Program Elements:
USAID also supports a variety of other institutional partnerships that seek to build lasting relationships between the United States and Uzbekistan. USAID utilizes several USAID/Washington-managed programs, including agreements with the U.S. Centers for Disease Control and Prevention, Project HOPE, and Counterpart International to address key issues in the health sector. The Farmer-to-Farmer Program, managed by USAID's Bureau for Democracy, Conflict, and Humanitarian Assistance, is helping to upgrade the technical skills of local farmers. The Eurasia Foundation manages small grants in education, small business, local government, and civil society which reinforce USAID's strategic objectives. Additionally, USAID's Office of Foreign Disaster Assistance is undertaking a new regional earthquake preparedness project that targets Tashkent, Uzbekistan. The Departments of Commerce, Defense, Energy, Agriculture, and State also manage programs complementary to USAID field activities in technical training, social infrastructure, and democracy. The Department of State's Bureau of Democracy, Human Rights, and Labor funds human rights and democracy programs, many of which are managed by USAID.
Other Donors:
USAID remains by far the largest bilateral donor, and the third largest overall donor to Uzbekistan. According to official Uzbekistan reporting, the largest overall donor is the Asian Development Bank (with programs in education, microfinance, and irrigation/agriculture), followed by the International Bank for Reconstruction and Development (with programs in health, community development, and irrigation rehabilitation) and the European Bank for Reconstruction and Development (with programs in SME development, transportation, and energy). Kreditanstalt fur Wiederaufbau Bank (KfW) (Germany) is the fourth largest donor, followed by the Government of Japan (including the Japanese International Cooperation Agency, the Japanese Bank for International Cooperation, and the Japan External Trade Organization). There is also significant investment by the Government of China. Other important bilateral donors include the Government of Switzerland (through the Swiss Agency for Development and Cooperation, Swiss Economic and Cooperation Organization, and the Government of Germany (through the German Society for Technical Cooperation). Other important multilateral donors include the United Nations Development Program and Europa House (the European Union). USAID continues to strengthen its ties with these and other donors through joint activities and coordination. The Government and donor community are currently engaged in a joint national effort to reform primary health care by improving the quality of management and service delivery. USAID is coordinating with the World Bank on accounting reform activities. USAID has a cooperative agreement with the International Finance Corporation to develop a legislative framework for microfinance. USAID assistance to credit unions is coordinated with the Asian Development Bank, and business advisory services are closely coordinated with those of the European Bank for Reconstruction and Development. In natural resources management, USAID activities are complemented by World Bank and Asian Development Bank loans to support improved management of agriculture and water, and regional power trade.
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