Fanil Kadyrov, Deputy Director of the International Institute of Central Asia
In accordance with the decision of the Constitutional Court of the Republic of Uzbekistan, on April 30 this year, a nationwide referendum on the draft Constitutional Law of the Republic of Uzbekistan “On the Constitution of the Republic of Uzbekistan” will be held.
The issue of the need for constitutional reform was first raised by President Shavkat Mirziyoyev in his inaugural speech on November 6, 2021. Later, in his congratulations on Constitution Day (December 2021) and in the Address to the Oliy Majlis and the people of Uzbekistan (December 2022), the Head of State in more detail outlined the proposed changes.
The key essence of the constitutional reform is the need to harmonize the Basic Law with the modern realities of society, consistently implemented reforms, and, most importantly, create a solid legal foundation for building New Uzbekistan.
Speaking with a message to the parliament, Shavkat Mirziyoyev noted: “We need to develop a modern Constitution, imbued with the goal of ensuring the interests of a person, respecting his honor and dignity as the highest value, such a Basic Law that will fully comply with the tasks of building a New Uzbekistan, will serve future generations.”
An analysis of the transformations and reforms carried out in recent years testifies to their decisiveness, scale and irreversibility.
A direct dialogue between the state and society has been established, the situation in the field of freedom of speech, religion and movement has changed dramatically.
An important element of the process of structural transformation was the improvement of social protection of citizens and the reduction of poverty. It is the well-being and prosperity of the people that are the main goal of the ongoing reforms.
So, if in 2017 500 thousand low-income families received social assistance, today there are more than 2 million.
Another top priority was the fight against corruption, shadow money flows, prevention of conflicts of interest and illicit enrichment. For the purpose of systematic coordination of work in this direction, a specialized Agency has been created.
Liberal reforms have been carried out in the economy of Uzbekistan aimed at ensuring the openness of the national economy and creating the necessary conditions for its integration into world economic relations.
Key reforms include the liberalization of the foreign exchange market, the reduction of import duties, the expansion of private investors’ access to such industries as energy, exploration, chemistry and petrochemistry, medicine and education. All industries received system support and development programs.
Improving the business environment and supporting entrepreneurship, which is the driver of the modern economy, has become another top priority of the ongoing reforms.
More than 200 types of licenses and permit procedures have been canceled in this area. The total number of taxes has been reduced from 13 to 9, the rates for some of them have been reduced by 2 times. The VAT rate has been gradually reduced from 20 to 12 percent.
“We all need to understand one thing: supporting entrepreneurship is the most effective way to improve the well-being of citizens, our people, the ultimate goal of building a New Uzbekistan,” the head of state said in an interview with the Yangi Uzbekiston newspaper.
Entrepreneurship development has begun to show impressive pace. So, if in 2016 the number of operating enterprises totaled 258 thousand, then by the beginning of 2023 – 592.4 thousand (an increase of 2.3 times). If in 2016 the number of newly created enterprises was about 33 thousand, then in 2022 there were more than 93.6 thousand of them (an increase of 2.8 times).
For the period 2016-2022, according to the World Bank, the average annual GDP growth in Uzbekistan amounted to 5.2%, while in the whole world it was only 2.3%. Even in 2020, when the coronavirus pandemic swept the whole world, Uzbekistan’s GDP increased by 1.9%, while global GDP collapsed by 3.3%.
During the same period, Uzbekistan’s foreign trade turnover more than doubled, from $24.2 billion. USA (2016) up to 50.0 billion dollars USA (2022). Exports grew by 60%, from 12.1 billion dollars. USA (2016) to 19.3 billion dollars USA (2022).
As a result of reforms to create a favorable investment climate, the volume of foreign investment in the economy over the past 5 years has increased 10 times, amounting to 40 billion US dollars.
Relations with the countries of the region and the image of Uzbekistan in the international arena have significantly improved. The new regional course of President Shavkat Mirziyoyev was able to actually reset relations within the region. With the support of other countries of Central Asia, unprecedented progress has been achieved in resolving such sensitive issues as borders, water, and the energy problem.
Borders have opened, trade has normalized, and all countries in the region have begun to receive significant economic benefits from closer cooperation.
The trade turnover of Uzbekistan with the states of Central Asia has increased 3 times since 2016 (from 2.5 billion to 7.5 billion US dollars).
Trade with Kyrgyzstan increased by 7.5 times, with Turkmenistan by 4.4 times, with Tajikistan by 3.4 times, and with Kazakhstan by almost 2.4 times.
For the first time since the early 90s. In the region, there is close cooperation in the field of industrial cooperation in priority sectors of the economy, border trade zones are being created, transport and logistics issues are being resolved.
World Bank Vice President Anna Bjerde writes in her article for Gazeta.uz, “We see quite impressive results of the implemented market reforms in Uzbekistan.
Further reforms are needed to withstand global shocks and build an inclusive market economy.”
Obviously, in order to strengthen the results achieved and consistently continue the initiated reforms, the very logic of rapidly changing life suggests the need to create a solid legal framework that determines the current and future development of Uzbekistan.
According to foreign experts, constitutional changes should become a kind of face of those large-scale reforms that are being carried out under the leadership of President Shavkat Mirziyoyev.
Despite the successes achieved, there is a demand from society for the continuation of fundamental changes aimed at building a state developed in all respects.
According to experts’ forecasts, by 2030 the population of Uzbekistan will reach more than 40 million people, and by 2040 – already 50 million people.
Our country is becoming a large state, where soon more than half of the population will be young people. Creating worthy conditions for it requires the presence of: a steadily developing economy; sustainable security; effective management; social guarantees and much more.
Therefore, an ambitious task is set within five years to increase the country’s GDP to 100 billion US dollars, to bring annual exports to 30 billion US dollars, to raise the share of the private sector in GDP to 80%, to bring the volume of investments to 120 billion US dollars , including attracting at least 70 billion US dollars of foreign investment.
All this will allow Uzbekistan to become by 2030 one of the countries in the world with an above-average income level.
To this end, it is planned to bring Uzbekistan to a leading position in the global Index of Economic Freedom, significantly improve the efficiency of the judicial system, anti-corruption measures and protection of property rights.
In addition, the task was set to raise the level of investment and financial freedom. By 2030, it is planned to make the republic a leader in terms of logistics efficiency.
For these purposes, there is a firm intention to accelerate the process of joining the World Trade Organization, which will allow establishing a system of non-discriminatory trade with more than 160 countries and gaining stable markets.
Another important goal is to use digitalization as the main “driver” of economic transformations. It is planned to increase the volume of the digital economy by at least 2.5 times.
All of this requires a solid legal basis, which indicates that the New Uzbekistan needs an update of the Constitution.
In the context of the economic dimension, the draft law “On the Constitution of the Republic of Uzbekistan” includes articles related to ensuring the freedom of entrepreneurial activity, the inviolability of private property, and a favorable investment and business climate.
In particular, direct action norms are being introduced aimed at developing market relations and fair competition, protecting private property, ensuring a favorable business and investment climate and conditions for the development of entrepreneurship, legislative regulation and limiting monopolistic activities.
All these and other changes should become the basis for building a strong economy in New Uzbekistan.
At the same time, as President Shavkat Mirziyoyev noted, “The construction of New Uzbekistan is not a subjective desire, not a PR campaign, but an objective necessity that has fundamental historical foundations.”
For the systematic implementation of this ambitious task in all respects, the Development Strategy for 2022-2026 was adopted, which in its essence is a powerful roadmap for achieving the goals set.
On the one hand, this is a policy document covering all spheres of the life of the state and society, on the other hand, it is a long-term plan, clearly adjusted to our real capabilities.
Today, more than ever, it is important to consolidate society around the idea of building a New Uzbekistan, put forward by President Shavkat Mirziyoyev. Our common task is to properly take advantage of the opportunities that are opening up, to unite efforts for the benefit of the development and prosperity of Uzbekistan. ///nCa, April 23, 2023 (in cooperation with the Embassy of Uzbekistan in Turkmenistan)