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USAID Information:
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Uzbekistan
The Development Challenge
The Government of Uzbekistan (GOU) remains a key partner in the war against terrorism. It is beginning to make progress toward economic policy reform, but much remains to be done. In early 2002, the government began implementing a program of foreign exchange liberalization that culminated in October 2003 with acceptance of the currency convertibility obligations of the International Monetary Fund Agreement (Article Eight). However, this was achieved by restricting trade, which has had negative impacts on the economy. More significant advances included "privatization" of some large collective farms through land lease arrangements, legislation that devolved control of irrigation systems to private water user associations, a Presidential decree in March 2003 that committed the government to further agricultural reform, and government cooperation with Uzbek NGOs on Trafficking in Persons initiatives.
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High expectations for increased opportunities for independent political activity and reduced state control of the economy have, however, remained largely unmet. Governance in Uzbekistan remains autocratic. Corruption is endemic. GOU unwillingness to open borders and liberalize trade has resulted in adverse political as well as economic effects. Arrearages on wages combined with gas and electricity shortages are causing social tension to increase. While the government did register a second human rights organization in 2003 and is developing an action plan to implement recommendations of the U.N. Rapporteur on Torture, its overall human rights record remained poor, with three suspicious deaths in detention in 2003 that have not been satisfactorily investigated. A government crackdown on human rights activities and activists continued last year.
Uzbekistan also is plagued by widespread unemployment, poor social infrastructure, and weak educational and health facilities. Nearly one-third of Uzbeks live below the national poverty line. At current growth rates of 2.3% to 3% per annum, Uzbekistan's population of approximately 25 million is expected to double over the next 50 years, placing greater pressure on the country's poor infrastructure and health care and educations systems. Inefficient water management and deteriorating irrigation systems have contributed to the drying up of the Aral Sea, and increased salinity of the soil.
USAID and the USG 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 that historically has played a leading role in trade and enterprise, Uzbekistan's development and stability are critical for the region and the U.S.
The USAID Program: Continuing with the momentum created by robust supplemental funding in 2002, USAID's activities in 2003 have laid the groundwork for democratic reform and market transition. USAID and the State Department's Bureau of Democracy, Human Rights, and Labor launched a new human rights defenders program, and opened a human rights clinic at Tashkent State Law Institute. New programs were also launched in civil society, media, judicial reform, housing reform, civic advocacy, and anti-trafficking. USAID is working in 110 communities at risk for conflict in the volatile Ferghana Valley and southern Uzbekistan. Important achievements have been made in microfinance, conflict prevention, health care reform, press freedom, judicial reform, and natural resource management. USAID is helping to expand economic opportunities, foster democratic values and practices, support natural resource management, and improve health care services. The Program Data Sheets cover the objectives for which USAID is requesting funds: primary health care, infectious diseases, natural resource management, democratic transition, and small enterprise and macro-economic reform, with cross-cutting objectives in gender equity, anti-corruption, and rule of law. Specific activities to be funded in FY 2004 and FY 2005 are described in greater detail in the Program Data Sheets.
Other Program Elements: USAID also supports institutional partnerships that seek to build lasting relationships between the United States and Uzbekistan. USAID/Washington has agreements with the U.S. Centers for Disease Control and Prevention, Project HOPE, Counterpart International, and the Monitoring and Evaluation to Assess and Use Results (MEASURE)/Evaluation Program. The Farmer-to-Farmer Program managed by USAID's Bureau for Economic Growth, Agriculture, and Trade is also active. The Eurasia Foundation manages small grants in education, small business, local government, and civil society that reinforce USAID's strategic objectives. The Departments of Commerce, Defense, Energy, Treasury, Agriculture, and State also manage programs complementary to USAID field activities in various sectors. 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: The United States is the largest bilateral donor, and the third largest overall donor to Uzbekistan. The largest overall donor is the Asian Development Bank, followed by the European Bank for Reconstruction and Development. The World Bank 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) and the Government of China. Other important bilateral donors include the Government of Switzerland and the Government of Germany (through the German Society for Technical Cooperation). Other important multilateral donors include the United Nations Development Program and 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 and treasury system reform activities. USAID has a cooperative agreement with the International Finance Corporation to develop the legislative framework for microfinance. USAID assistance to credit unions is coordinated with the Asian Development Bank, and our 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.
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