Area: approx. 278,000 sq. miles, slightly larger than CaliforniaU.S. STRATEGIC INTERESTS
Uzbekistan's relatively large population (which accounts for 50% of the population of Central Asia), strategic location north of Afghanistan, and extensive mineral resources, including gold and uranium, make it a potential force for economic growth and stability in the Central Asia region. Uzbekistan is also the only Central Asian country that borders on all the other nations of the region (Kazakhstan, the Kyrgyz Republic, Tajikistan and Turkmenistan), as well as Afghanistan. Uzbekistan provided critical early support to Operation Enduring Freedom (OEF) by allowing the U.S. Government (USG) to use its Karshi-Khanabad base, which is less than an hour north of Afghanistan. Uzbekistan has lent its political support to U.S. operations in Iraq and was one of the first countries to join the "coalition of the willing." Uzbekistan inherited some unconventional-weapons infrastructure from the Soviet Union and is cooperating fully with the USG to secure, convert or dismantle this infrastructure. It is in U.S. interest to promote democratization, respect for human rights, rule of law, territorial integrity, and the transition to a market-based economy in order to bolster social and political stability in this important Central Asian country.
OVERVIEW OF U.S. GOVERNMENT ASSISTANCE
In FY 2003, the U.S. Government provided an estimated $126.19 million* in assistance to Uzbekistan:
In FY 2003, some 475 Uzbek citizens traveled to the United States on USG-funded training and exchange programs implemented by USAID and the U.S. Departments of Agriculture, Commerce and State, bringing the cumulative number of Uzbek participants to over 2,910.
U.S. ASSISTANCE PRIORITIES
Democratic Reform Programs: In FY 2003, the main priorities for USG democratic reform assistance included promoting human rights, assisting the development of independent political parties, fostering an independent judiciary, and enhancing civic participation through the growth of independent media and a strong non-governmental organization (NGO) sector. USG-funded exchange programs provided Uzbekistan's future political, economic, religious, and civic leaders an opportunity to view how concepts such as the rule of law, transparency, freedom of speech, religious pluralism and market economics are applied on a day-to-day basis in the United States. USG public diplomacy programs sought to expand Uzbek citizens' access to unbiased information by supporting independent television and radio stations and by expanding Internet access and Internet literacy. USG-funded programs promoting civic education, legal reform, NGO development, health reform, the formation of water-users' associations, and a community-based approach to infrastructure improvements not produced real improvements in people's lives, but also provided them with practical experience in how a civil society functions. The USG plans to continue these programs in FY 2004 as part of its long-term strategy of promoting human rights and democratization through development of civil society and a better-informed populace.Economic and Social-Sector Reform Programs: The USG provided technical assistance to the Uzbek Government in identifying and implementing policy reforms designed to move the country's economy from the current centrally and rigidly controlled system to a more open, market-based system. Technical assistance was provided in the areas of macroeconomic policy, tax administration, trade policy, budget reform, financial-sector reform (including bank privatization), and debt management. In addition, the USG launched a new program to support agricultural reform. The USG also devoted considerable resources to supporting Uzbekistan's emerging entrepreneurial sector through training and micro-credit programs, as well as policy analysis and advice aimed at improving the legal environment for small and medium-sized enterprises (SMEs). USG-supported projects also helped improve the delivery of social services, enhancing the quality of life for Uzbek citizens and thereby contributing to political stability. USG-funded programs supported the Uzbek Government's efforts to reform, modernize and streamline the country's health-care system so that it could better serve a growing population; expand the use of new irrigation techniques and the formation of water-users' associations; and improve basic education.
Security, Regional Stability and Law Enforcement Programs: In FY 2003, USG security-related assistance was focused on supporting the Uzbek Government's efforts at military reform, improving Uzbekistan's counter-proliferation capabilities, promoting regional cooperation, and improving border security to help stop the flow of illegal narcotics, weapons of mass destruction (WMD), and other illicit items through Uzbekistan. The USG provided a variety of non-lethal security-related equipment and training to the Uzbek military, thereby ensuring its communications interoperability with U.S. and Western military forces, strengthening its counter-terrorism capabilities, and also promoting military reform and regional stability. The USG helped Uzbekistan dismantle its remaining biological-weapons programs and prevent the proliferation of these weapons, their delivery systems, and related expertise to rogue states. The USG also helped Uzbekistan strengthen its institutional capacity to stop the trafficking of illicit narcotics across its borders. In FY 2003, the USG-supported Sensitive Investigation Unit interdicted several heroin-trafficking operations, identifying and arresting the heroin traffickers involved.
SECTORAL ASSESSMENTS
Democratic Reform
Overall, Uzbekistan's human rights record remained poor in FY 2003. While the Uzbek Government registered a second human-rights organization, a number of others were denied registration. Although the government allowed independent parties to organize, seek supporting signatures, and hold rallies, press conferences, congresses and national conventions, not one independent party was registered. While official censorship has ended and there is greater freedom of speech and freedom of the press than a year ago, media outlets and journalists remained extremely cautious and practiced self-censorship due to the real or perceived risk of retribution. In 2003, the Uzbek Government released nearly 1,000 political prisoners in the second of two large-scale amnesties. In December 2003, the Uzbek Government announced another amnesty, in which many of the most high-profile political prisoners were expected to be released. During FY 2003, arrests on political grounds continued, but less frequently than in previous years. There were significantly more public protests than a year ago, and the Uzbek Government generally allowed them to proceed. The government invited the Special United Nations Rapporteur on Torture to visit Uzbekistan and took immediate steps to develop an action plan to implement his recommendations. The USG plans to provide assistance to help implement the action plan, including training for judges, policemen, advocates, investigators and prosecutors on implementing and complying with the new standards. However, the Uzbek Government has not adequately investigated several deaths that occurred in detention and reportedly involved torture.
USG-funded assistance programs have led to increased freedom for political opposition and human rights organizations. With parliamentary elections scheduled for December 2004, the USG will decide in early 2004 whether or not election-related assistance could have a positive impact. USG-supported human-rights resource centers provide an environment where human-rights defenders and activists are able to access vital information on the Internet, receive training and conduct meetings.
One of the USG's top human-rights priorities in Uzbekistan has been combating trafficking in persons. The USG has funded anti-trafficking initiatives and facilitated a collaborative relationship between the Uzbek Government and local NGOs. Working together, the U.S. and Uzbek Governments and the local Uzbek NGOs have developed innovative public education campaigns on prevention and prosecution of trafficking. The founder of one of the key NGOs involved in this effort and several Uzbek Government officials participated in a USG-sponsored conference on trafficking, as a result of which the Uzbek Government's anti-trafficking efforts and level of cooperation with NGOs increased significantly. The USG also helped the Uzbek Government train consular and law enforcement officials, prosecutors, and employees of other government agencies to recognize and protect victims of trafficking and to combat trafficking rings. The Uzbek Government has made significant progress in combating trafficking in persons, including the development of a national action plan. This progress was reflect in the fact that Uzbekistan was moved from Tier III to Tier II in the State Department's Global Trafficking in Persons report rankings only three months after its initial placement on Tier III.
Another key objective of USG assistance is to build civil society by fostering the growth of local NGOs. In 2003, USAID inaugurated a three-year program that will support a national network of seven NGO resource centers. The organizational mission of these centers is to enhance the quality of NGO advocacy skills, as well as their organizational and financial capacities. With the help of small grants from the U.S. Embassy's Democracy Commission, human-rights groups provided some of the best reporting on human-rights violations going on in the country, specifically in cases relating to religious extremism; conducted seminars on rights of the disabled for family members; and warned people about the risks of trafficking in persons, highlighting the arrests of traffickers by Uzbek law enforcement authorities. A USG-funded legal reform program advised the Uzbek Government on the drafting of important legislation, such as a new law on torture and a draft habeas corpus statute, and helped the Tashkent State Institute of Law establish a human-rights legal clinic that began providing free legal consultations. Graduates of the clinic began organizing a widespread public education campaign.
Although Uzbekistan officially abolished censorship of the media in FY 2002, there was only minimal improvement in press freedom in FY 2003. Journalists and editors who reported views contrary to government policy were harassed and intimidated by government officials. Roughly 80% of media in Uzbekistan is state-owned. Throughout the country, privately owned newspapers are typically tabloids that reprint Russian media reports but do not report on Uzbek political issues. In FY 2003, the USG provided training, production support, and equipment grants to media outlets that were striving to produce quality news and information, including an independent radio station in Tashkent and a nationwide network of approximately ten independent television stations.
The USG also provided exchange opportunities for Uzbek journalists (including journalists from Uzbek Television Channel One, which has an estimated 10 million viewers), enabling them to travel to the United States and Iraq to report first-hand on issues such as the war in Iraq and Muslim life in America. After participating in a NATO tour and receiving a Democracy Commission small grant, one editor created a bimonthly supplement covering such issues as human trafficking, civil rights, and the rights of refugees, thereby providing the first frank reporting on issues not commonly addressed by the Uzbek Government. These exchange programs resulted in news reports and feature broadcasts that provided a stark contrast to the negative reporting by Russian media, which continued to be the primary source of international news in Uzbekistan. The USG opened two additional public-access Internet access and training facilities in Kokand and Chirchik, bringing the total to 18 throughout Uzbekistan. These facilities continue to be practically the only public access to the Internet available to the 22 million Uzbeks who live outside of the capital city of Tashkent. Internet access provides many Uzbeks their first exposure to uncensored news and information.
USAID's conflict prevention activities focused on the Ferghana Valley and southern Uzbekistan, where high levels of unemployment, large disparities in wealth distribution, and ethnic groups vying for access to limited resources have created a tense environment. These programs are designed to mobilize communities by providing grants for small-scale infrastructure projects identified and supported by the community through a democratic process that engages local authorities. An equally important objective of these programs is to alleviate the underlying sources of conflict by promoting inter-ethnic cooperation, economic recovery, and the rehabilitation of the areas' social infrastructure. In all, more than 120,000 people have participated in these activities.
A new USG-funded housing reform program in Uzbekistan promoted active participation and control of housing partnerships by residents through training, technical assistance, information dissemination, study tours, grants, and public awareness campaigns. The program is designed to improve living conditions and give residents an opportunity to have a say in how their housing association is managed - an exercise in democratic participation that can reach a large portion of the population and build civil society at the grassroots level.
In FY 2003, USG-funded exchange programs continued to exposed Uzbek citizens to American democratic values and institutions. Upon their return from a five-week exchange program on religious tolerance, ten Islamic religious leaders from the Ferghana Valley (including two women) shared their positive impressions about U.S. religious pluralism with their home communities. The USG also continued to send Uzbek religious and community leaders and educators to the United States to examine religious and cultural pluralism in U.S. communities and institutions of higher learning. In FY 2003, the USG also trained 40 spokespersons from Uzbek Government ministries and independent NGOs to be more effective and responsive in their jobs, while simultaneously familiarizing them with the openness of U.S. society and the responsiveness of U.S. elected officials.
Economic and Social-Sector Reform
Uzbekistan's progress towards achieving a market economy has been disappointing. Some progress has been made in privatizing collective farms, but not state-owned enterprises. Uzbek Government economic policies and reluctance to implement reforms have created a difficult environment for small and medium-sized enterprises (SMEs). USG assistance has made an impact on macroeconomic policy-making by improving the institutional capacities of government policy units and think tanks and assisting the Central Bank of Uzbekistan (CBU) in the adoption of International Accounting Standards (IAS). While these efforts are achieving success at the technical level in the areas of administrative tax law reform, improved tax auditing, an improved budget law, removing impediments to bank privatization, and improving the country's ability to handle its debt, there is little or no movement toward a market economy at the broader policy level.
During summer and fall 2002, the Uzbek Government introduced excessive licensing and certification requirements for retail and wholesale traders, raised customs tariffs as high as 150 percent, and made it very difficult for its citizens to cross the border. Cash circulation and withdrawals were excessively tightened, partly due to the Government's belief that a certain degree of liquidity fuels illegal trade. Although the Uzbek Government managed to unify exchange rates and introduced current-account convertibility in October 2003, the above-mentioned restrictions crippled the informal sector and left many thousands without employment or income. Many fundamental problems remain, including crossborder trade restrictions and low liquidity in the private sector. In addition, predatory tax practices and difficulties in dealing with state-controlled banks have caused many small businesses to operate in the informal sector. The newly introduced and harshly enforced licensing and certification requirements have caused many businesses to go underground or close altogether.
The Uzbek Government announced an ambitious plan for reforms in four key areas: de-collectivization of agriculture, administrative/governance reform, large-scale privatization, and reform of capital construction. The Government stated that it intended to privatize all remaining collective farms by 2006 and requested USG assistance in several key areas, including business-skill training for farmers and the development of financial instruments. Administrative reform efforts are aimed at reducing government interference in the economy, which could lead to a 25% cut in government staff (40,000 employees) over three years. The government sold several hundred state-owned enterprises in 2003 and plans to sell over 2,000 more in 2004. Following Russian and British models, the Uzbek Government is transferring the liquidation and restructuring of bankrupt enterprises to licensed private businesses, and has asked the USG to help train court receivers.
The USG-funded private-enterprise development program focused primarily on micro-finance, SME support, and improving policy analysis and advice. USAID's business and trade advisory services assisted 148 SMEs in Tashkent and Ferghana City, helping them achieve a 25% increase in sales, a 26% increase in productivity, and 52 USG-facilitated trade deals with a total value of over $3.7 million. The project also helped a client obtain a $900,000 loan from a local bank. In order to promote transparent banking practices, corporate governance in the banking sector and long-term sustainable financial intermediation and growth, the USG provided technical assistance to the CBU and to commercial banks in implementing bank accounting reform, particularly the full adoption of IAS.
Despite currency restrictions, USG-funded micro-finance activities have managed to make substantial progress and have offered financial services in areas where they were previously unavailable. Three savings and credit unions established with USG assistance in 2002 have grown to a network of eight institutions with a total membership exceeding 4,000 and combined loan portfolio of approximately $700,000. By providing training and technical support to key economic ministries and policy think tanks, the USG has been able to influence the policy dialogue and decision-making while simultaneously strengthening the capacity of local institutions to offer sound economic analysis and policy advice. The success of this assistance led to a request for additional USG assistance in improving tax policy.
The USG is helping the Uzbek Government to reform, modernize and streamline its healthcare system so that it can serve the country's growing population more effectively and efficiently. Health-care reforms in pilot areas have already benefited more than five million citizens and have allowed clinics to address their own priority needs and make their own decisions. The Uzbek Government has recognized the value of these changes and has decided to apply nationwide the reforms developed in the pilot program. The Uzbek Government is pressing ahead with the national expansion of rural primary health-care reforms and is making strides in tuberculosis (TB) control. Primary health-care facilities now reach 20% (5.16 million) of the population. The reform models will be expanded in urban areas and in central district hospitals. In FY 2004, the USG will expand its programs to address Uzbekistan's HIV/AIDS challenge. A new comprehensive HIV/AIDS prevention activity will help Uzbek NGOs expand their service coverage, targeting high-risk groups in particular. The USG is also helping the Uzbek Government implement a $24.5 million grant from the Global Fund to Fight AIDS, Tuberculosis and Malaria.
In response to the Uzbek Government's interest and political will to undertake agricultural reforms, the USG developed a program to assist the Ministry of Agriculture in moving farmers off large collective farms onto individual land parcels leased on a long-term basis. The Uzbek Government has created 100 private associations of irrigation water-users that are now allocating water on a more equitable basis. Under a cooperative arrangement with the Ministry of Agriculture, the USG increased support to the water-user associations, which were created on former state farms. This more efficient system promises to increase food production, crop yields, rural incomes and employment. In the extensive Surkhandarya Canal System, which is located near the Afghan border, the USG is rehabilitating key structures and making other improvements that will bring irrigation water to 250,000 hectares and approximately one million farmers, which should in turn increase agricultural productivity and rural incomes.
In the area of education, reforms are giving parents a stronger voice over the use of scarce education funds and are reorienting teachers' approaches towards increased student participation. A new USG-funded basic education program will address in-service teacher training, the development of learning materials and textbooks, promoting parent and community involvement in education, increasing management and technical capacity in the education system, and rehabilitating school infrastructure in nine pilot schools.
Security, Regional Stability, and Law Enforcement
Uzbekistan agreed to eliminate its weapons-grade nuclear material following the collapse of the Soviet Union, but is still dealing with the legacy of its nuclear past: remnants of biological and chemical WMD and their delivery systems, as well as the potential proliferation of WMD expertise. In FY 2003, the USG helped Uzbekistan eliminate stores of anthrax and provided security upgrades to the Institute of Virology and the Center for Prophylaxis and Quarantine of the Most Hazardous Infections.
Assessments and border visits conducted under the Export Control and Related Border Security (EXBS) Assistance Program have confirmed that EXBS-provided equipment is being widely distributed by Uzbek officials and has played a key role in many recent interdictions of illicit materials. USG-funded training is also having a positive impact and is significantly changing the way Uzbek border security officials perform their duties. As result of the emphasis placed by the EXBS program on legal reforms, the long-awaited Uzbek Law on Export Control is reported to be nearing adoption. In addition, the Uzbek Government has indicated its willingness to sign a regional transit agreement.
In FY 2003, the Uzbek Ministry of Defense used Foreign Military Financing (FMF) to establish a world-class modeling and simulation center that will help incorporate exercise simulations into the National Defense Academy's curriculum, conduct staff training exercises to improve overall military interoperability, and provide opportunities for participation in other internationally distributed simulation training activities. Given Uzbekistan's active participation in the Viking '03 exercise, USG observers believe the Uzbek Government will be ready to host such an exercise within two to three years.
A total of 34 Uzbek defense and security specialists participated in a wide range of resident and non-resident professional development courses and seminars at the U.S. Defense Department's George C. Marshall Center in Germany, including a leadership course and conferences on topics such as counter-terrorism strategy, economic war on terrorism, and force reduction/defense conversion. Many graduates of these programs are now holding positions of increased responsibility in the Uzbek Government, including the Chief of the Americas Department at the Ministry of Foreign Affairs and the Commander of the Tashkent Military District.
The Ministry of Defense was an active participant in Partnership for Peace Program (PfP) activities that helped improve interoperability with NATO forces and provided professional development opportunities for the Uzbek military. USG Warsaw Initiative Funds supported the participation of over 150 Uzbek service members in a variety of exercises, seminars and other PfP events.
Although Uzbekistan has started to reform its criminal justice system in recent years, the system's institutional infrastructure continues to suffer from low salaries, insufficient training and equipment, and widespread corruption. The Federal Bureau of Investigation (FBI) and U.S. Department of Justice have been working closely with senior Uzbek officials, including the Minister of Justice and the General Prosecutor, to develop an anti-money laundering law and a regulatory framework that meets international standards.
The U.S. Drug Enforcement Administration (DEA) and the Uzbek Ministry of Internal Affairs (MVD) have jointly established a counter-narcotics Sensitive Investigative Unit (SIU), which became operational in FY 2003. The DEA and the Uzbek Government worked with other Central Asian law enforcement agencies to promote regional coordination on counter-narcotics efforts. The DEA-sponsored SIU has conducted a number of counter-narcotics operations resulting in total seizures to date exceeding 25 kilograms of heroin and over 60 arrests. In a joint operation conducted by the SIU and Moscow law enforcement authorities, an Afghan national based in Moscow was arrested with over three kilograms of heroin in his possession. The Uzbek Government has also been actively sharing regional intelligence on narcotics.
Humanitarian Assistance
In FY 2003, the U.S. Department of Agriculture provided approximately $10 million in food assistance to the Government of Uzbekistan. In addition, the U.S. Department of State funded seven airlifts of critical medicines and medical supplies and 102 containers of surface shipped medical equipment and supplies, clothing, food, and emergency shelter items. A total of $42 million in commodities was transported at a cost to the USG of $1.43 million. These commodities were targeted at the neediest segments of Uzbek society.
COUNTRY PERFORMANCE MEASURES
Uzbekistan's human rights record remains poor, but in FY 2003 the government did register some NGOs, permit public activities by the political opposition (although it did not register political parties) and somewhat ease conditions for independent media. The government made progress in developing an action plan for ending torture. While positive steps in economic reform were achieved with the unification of the exchange rate, tight restrictions on border trade have crippled legitimate retail and wholesale trade.
Economic Policy Reforms and Democratic Reforms in Uzbekistan, 1991-2002 
Democratic Reforms
Ratings of democratic freedoms are from Freedom House, Nations in Transit 2003 (2003) and cover events through December 2002. Economic policy reform ratings are from EBRD, Transition Report 2002 (November 2002), and cover events through September 2002. Economic policy reforms include price liberalization, trade and foreign exchange, privatization, legal, banking and capital markets, enterprise restructuring (credit and subsidy policy), and infrastructure reforms. Democratic freedoms include political rights (free and fair elections; openness of the political system to competing political parties and to minority group representation; governance and public administration) and civil liberties (free media and judiciary; freedom to develop NGOs and trade unions; equality of opportunity and freedom from corruption). Ratings are based on a scale of 1 to 5, with 5 representing the most advanced.
Little progress has been made in broadening and deepening the private sector in Uzbekistan, as privatization of state-owned enterprises has been slow and the environment for small and medium enterprises remains difficult. While the quality of life is still poor for the majority of the population, the government has begun to move forward in modernizing its health care system to better serve the population.
Economic Structure and Human Development in Uzbekistan, 1991-2002 
Human Development Index
The Human Development Index (HDI) is based on three indicators using 2001 data: longevity, as measured by life expectancy; educational attainment, as measured by a combination of adult literacy and combined primary, secondary and tertiary enrollment ratios; and standard of living, as measured by real per capita GDP ($PPP). The HDI ranges from 0 to 1, with higher values representing greater human development. UNDP, Human Development Report 2003 (July 2003). Private-sector share of GDP is from EBRD, Transition Report Update (May 2003).
SECTORAL PERFORMANCE MEASURES
DEMOCRATIC REFORM
Performance Indicator: Freedom House Nations in Transit Independent Media rating
(1 = highest, 7 = lowest; data based on previous calendar year)
|
FY 2002 Baseline |
FY 2003 Target |
FY 2003 Actual |
|
6.75 |
N/A |
6.75
|
FY 2003 Results: FY 2003 saw only minimal improvement in press freedom and the continued existence of widespread self-censorship among all media. The greatest progress could be seen in radio news broadcasts that have been the most successful in broaching quasi-political issues and faced minimal monitoring by the government. Eighty percent of media in Uzbekistan is state-owned. Nearly all of the privately owned newspapers (the remaining 20%) throughout the country are merely tabloid press that mainly print Russian media reports and do not report on Uzbek political issues. With the abolition of state censorship, editors have been tasked with enforcing government standards of reporting. Journalists or editors who have attempted to report a viewpoint that did not mirror the "party line" have faced harassment and intimidation by government officials.
Performance Indicator: USAID NGO Sustainability Index (1 = highest; 7 = lowest)
|
FY 2002 Baseline |
FY 2003 Target |
FY 2003 Actual |
|
4.7 |
5 |
4.7 |
FY 2003 Results: In 2003, Uzbek NGOs for the first time were involved in advocacy campaigns on national-level issues, such as Uzbek Government economic policies toward small entrepreneurs, the right to an education for handicapped children, handicapped-accessibility of new or renovated public buildings, women's rights and domestic violence, and promoting the rights of apartment dwellers. Indigenous NGOs are reporting on the human rights situation in Uzbekistan. Local NGO participation side-by-side with the Uzbek Government in an action committee to combat trafficking in persons marked a milestone in Uzbekistan's civil society development.
ECONOMIC AND SOCIAL REFORM PROGRAMS
Performance Indicator: HIV/AIDS and TB - World Bank Human Capital Index (1 = lowest; 7 highest)
|
FY 2002 Baseline |
FY 2003 Target |
FY 2003 Actual |
|
2 |
3 |
3 |
FY 2003 Results: In FY 2003, Uzbekistan increased cooperation with the USG in HIV/AIDS and TB prevention and treatment. Despite this, Uzbekistan's HIV/AIDS and TB infection curves indicate exponential growth of both diseases: in 2002, 800 HIV-positive cases were officially registered with Uzbekistan's Ministry of Health, while in 2003, 3,200 cases were registered. These figures are merely indicative, however, due to poor epidemiological methods.
Performance Indicator: Export Share of GDP - World Bank Structural Change Indicator
|
FY 2002 Baseline |
FY 2003 Target |
FY 2003 Actual |
|
3.5 |
4.5 |
4.5 |
FY 2003 Results: As a result of Uzbekistan's program to eliminate the gap between the black market and official exchange rates, which was as high as 150% in January 2002, the implied tax on exports was abolished, lowering the disincentives to export. As expected, this led to a large increase in exports, which shot up 40% in the first half of 2003, according to official statistics. The export share of GDP increased from 30% in FY 2002 to 37% in 2003. Continuation of Uzbekistan's policy of full current-account convertibility, adopted in October 2003, will be critical to maintaining incentives for exports. In addition, Uzbekistan does not tax exports, which also promotes exports as a share of GDP.
Performance Indicator: European Bank for Reconstruction and Development (EBRD) Trade and Foreign Exchange System indicator
|
FY 2002 Baseline |
FY 2003 Target |
FY 2003 Actual |
|
1 |
2 |
2 |
FY 2003 Results: Uzbekistan eliminated its import registration system, which had required importers to register all import contracts with the Agency for Foreign Economic Relations and wait for approval before being granted the right to purchase hard currency. This positive step also greatly expanded legitimate access to foreign exchange by eliminating individual limits on amounts of foreign exchange that can be purchased by Uzbek citizens. Uzbekistan almost qualifies for the EBRD's Category Three, except that ministries and state-owned trading companies are still directly involved in exports and imports, and Uzbekistan maintains distinctions between small traders, companies, and individuals regarding customs duties. A major impediment to trade is Uzbekistan's de facto practice of sharply limiting the amount of goods an individual can import from neighboring countries by limiting citizens' abilities to cross land borders carrying more than $50 worth of goods. As Uzbekistan's long-term goal is to accede to the World Trade Organization (WTO), it will have to stop making distinctions among traders and provide a uniform tariff structure for small traders, individuals, private companies, and state-owned companies for most goods and services.
SECURITY, REGIONAL STABILITY AND LAW ENFORCEMENT
Performance Indicator: State Department Global Trafficking in Persons Report
|
FY 2002 Baseline |
FY 2003 Target |
FY 2003 Actual |
|
Not ranked |
Tier 2 |
Tier 2
|
FY 2003 Results: During FY 2003, and particularly between May and September 2003, the Uzbek Government made an impressive effort and devoted significant energy to resolving the problem of Trafficking in Persons. The Ministry of Internal Affairs, National Security Service, Prosecutor's Office, Interpol, and the Ministry of Foreign Affairs have worked on an interagency basis to coordinate efforts to combat trafficking in persons. With USG assistance, the Uzbek Government greatly improved prevention, prosecution, and victim protection, and conducted a wide-scale briefing of consular officers in Tashkent and at diplomatic missions abroad. The Uzbek Government also carried out a massive public information campaign aimed at potential victims that highlighted the stepped-up prosecution of traffickers. As a result of these impressive efforts, in September 2003, Uzbekistan was moved from Tier 3 to Tier 2.
Performance Indicator: Non-proliferation actions taken
|
FY 2002 Baseline |
FY 2003 Target |
FY 2003 Actual |
Nukus cleanup complete. Vozrozhdeniye Island biological weapons cleanup launched and completed. Institute of Nuclear Physics project completed. |
Develop and begin implementation of projects for securing biological weapons institutes; install radiological isotope storage facility at Institute of Nuclear Physics (INP); conclude Portal Monitoring Agreement |
Biological Weapons Proliferation Prevention Program (BWPPP) began with active Uzbek Government cooperation; security upgrades installed at two biological institutions; radiological isotope facility at INP completed; Portal Monitoring Agreement signed. |
FY 2003 Results: Although quantitative indicators for progress in this area are unavailable, considerable progress was made in FY 2003 on non-proliferation issues, with active cooperation between the Uzbek Government and the USG, including the Departments of Defense and Energy. Several projects to install security upgrades at government facilities where potential unconventional warfare and nuclear material are stored were completed in FY 2003, thereby bringing Uzbekistan into compliance with the International Atomic Energy Agency's (IAEA) revised 1999 guidelines. These projects aim to prevent biological, chemical, and radiological materials from being stolen and used by terrorists or criminals. In 2003, the Uzbek Government signed a Portal Monitoring Agreement, which provides for the installation of monitors at many border checkpoints to screen for the transportation of radiological materials.
FY 2003 FUNDS BUDGETED FOR U.S. GOVERNMENT ASSISTANCE TO UZBEKISTAN
TOTAL USG FUNDS BUDGETED: $83.46
VALUE OF DONATED HUMANITARIAN COMMODITIES: $41.99
TOTAL FY 2003 USG ASSISTANCE: $125.45
(IN MILLIONS, AS OF 12/31/03)
FSA FUNDS BUDGETED: $39.43
USAID - Democratic Reform - $5.20
USAID - Environmental Management - $2.30
USAID - Parking Fine Withholding - $0.00
USAID - Private-Sector Initiatives - $6.27
USAID - Social-Sector Reform - $6.40
USAID - Special/Cross Cutting Initiatives - $2.53
USAID - x Eurasia Foundation - $1.24
USAID TOTAL - $23.95
Dept. of Agriculture (USDA) - Cochran Fellowship Program - $0.15
Dept. of Agriculture (USDA) - Faculty Exchange Program (FEP) - $0.13
DEPT. OF AGRICULTURE (USDA) TOTAL - $0.28
Dept. of Commerce - BISNIS Business Info. Service - $0.20
Dept. of Commerce - SABIT Business Internships/Training - $0.50
DEPT. OF COMMERCE TOTAL - $0.70
Dept. of State - ECA Public Diplomacy Exchanges - $5.12
Dept. of State - EUR Democracy Programs (incl.Dem.Comms.& NED) - $0.54
Dept. of State - EUR/ACE Humanitarian Transport - $2.50
Dept. of State - Export Control & Related Border Security (EXBS) - $1.25
Dept. of State - INL Law Enforcement - $2.08
Dept. of State - International Information Programs (IIP) - $0.05
DEPT. OF STATE TOTAL - $11.55
Dept. of the Treasury - Technical Advisors - $2.31
DEPT. OF THE TREASURY TOTAL - $2.31
NSF - Civilian R&D Foundation (CRDF) - $0.65
OTHER FUNDS BUDGETED: - $44.03
USAID - P.L. 480, Title II Food Assistance - $0.10
USAID TOTAL - $0.10
Dept. of Agriculture (USDA) - Bio-Chem Redirect - $1.79
Dept. of Agriculture (USDA) - Emerging Markets Program (EMP) - $0.07
Dept. of Agriculture (USDA) - P.L. 480 Govt.-to-Govt. Food Aid - $10.08
DEPT. OF AGRICULTURE (USDA) TOTAL - $11.94
Dept. of State - DRL Human Rights & Democracy Fund - $2.55
Dept. of State - ECA Public Diplomacy Exchanges - $0.87
Dept. of State - Export Control & Related Border Security (EXBS) - $1.93
Dept. of State - Foreign Military Financing (FMF) - $8.60
Dept. of State - International Information Programs (IIP) - $0.02
Dept. of State - Internatl. Military Educ. & Training (IMET) - $1.10
Dept. of State - Science Centers - $1.00
DEPT. OF STATE TOTAL $16.07
Dept. of Defense - Destruction and Dismantlement $9.90
Dept. of Defense - International Counterproliferation - $1.19
DEPT. OF DEFENSE TOTAL - $11.09
Center for Russian Ldrshp. Dev. - Open World Program (fomerly RLP) - $0.33
Dept. of Education - Fulbright-Hays Exchange Programs - $0.03
Dept. of Energy - Materials Protection, Control & Acct. (MPC&A) - $1.00
Dept. of Energy - Nonproliferation & Internat'l. Security - $1.00
Dept. of Energy - Nuclear Reactor Safety - $0.60
Peace Corps - Volunteers - $1.87
