Reforms in Uzbekistan

Reforms in Uzbekistan

January 15, 2020
Reforms in Uzbekistan
Background
to Washington, DC, in May 2018, the first official visit by
Following years of economic and foreign policy
an Uzbek president to the United States since 2002, and
isolationism, Uzbekistan’s government is currently engaged
lauded the “new era of the strategic partnership” between
in a wide-ranging reform effort that is transforming regional
the two countries. According to Trump Administration
dynamics in Central Asia and creating new opportunities
officials, Uzbekistan’s reengagement with its neighbors has
for U.S. engagement across a range of sectors. From 1991
invigorated the U.S.-led C5+1 framework, which provides a
to 2016, Uzbekistan was led by President Islam Karimov, a
high-level forum for discussing regional issues. Uzbekistan
former high-level Soviet official. International observers
has moved to normalize and improve previously strained
considered his rule authoritarian and highly repressive.
relations with its Central Asian neighbors, working to
Karimov’s economic policies emphasized self-sufficiency,
resolve border disputes with Tajikistan and the Kyrgyz
and his government pursued a largely isolationist foreign
Republic and increasing regional outreach. Additionally,
policy. Following Karimov’s September 2016 death, he was
Uzbekistan is increasingly active in the Afghan peace
succeeded as president by then-Prime Minister Shavkat
process, seeking to mediate between the Afghan
Mirziyoyev. Mirziyoyev had a long career as a government
government and the Taliban and to promote stability by
official under Karimov and was widely expected to
developing trade relations.
continue his predecessor’s policies. Yet he embarked on an
ambitious reform program that aims to transform
U.S. foreign assistance to Uzbekistan aims to support the
Uzbekistan by modernizing and liberalizing the economy,
country’s reform efforts, promote the rule of law, and
streamlining the bureaucracy, easing political repression,
further economic development, especially diversification in
addressing human rights concerns, reengaging with the
agriculture through the utilization of U.S. technology. Aid
international community, and attracting increased foreign
is also intended to strengthen border controls in order to
investment. Uzbekistan was once considered one of the
promote security and regional stability. The State
world’s most isolated and repressive countries, but U.S.
Department requested $14.4 million in aid for Uzbekistan
officials and other international observers have noted
for FY2020, up from $10.6 million requested for FY2019.
significant improvement since reforms began. Nevertheless,
Trade between the United States and Uzbekistan more than
some concerns persist, particularly with regard to human
doubled between 2017 and 2018, from approximately $150
rights and political freedoms.
million to over $300 million, and U.S. Secretary of
Commerce Wilbur Ross assesses that “significant
opportunities exist to strengthen commercial and economic
“President [Mirziyoyev] envisions Uzbekistan
ties.” Although Russia and China remain Uzbekistan’s
transformed into a thriving, modern state—an
largest economic partners, the government is pursuing
example for the region—with a government
increased investment from the United States and Europe.
accountable to its citizens and respectful of their
The United States supports Uzbekistan’s efforts to accede
rights, with constructive relationships with its
to the World Trade Organization (WTO), and the Trump
neighbors, and with an open economy that welcomes
Administration has criticized the prospect of Uzbekistan
and protects foreign investment. None of these
joining the Russia-led Eurasian Economic Union as
reforms will be easy, but all of them are essential, and
potentially impeding the WTO accession process.
the United States strongly supports them.”
-Principal Deputy Assistant Secretary of State for
Economic Liberalization
South and Central Asian Affairs Alice Wells
Under President Mirziyoyev, Uzbekistan has implemented
economic reforms aimed at decreasing the role of the state
U.S.-Uzbekistan Relations
in favor of the private sector and attracting large-scale
foreign investment. The government has prioritized
After government forces killed over 100 unarmed civilians
improving the country’s business environment and
during unrest in the eastern city of Andijan in 2005, the
streamlining public administration, and the World Bank has
government of Uzbekistan responded to foreign criticism
commended Uzbekistan’s “strong progress” on economic
by expelling numerous international NGOs and media
reforms. In an important move, in 2017 the government
organizations, as well as ending the Peace Corps program
eased long-standing currency controls and liberalized its
and demanding the withdrawal of U.S. forces stationed at
monetary policy, eliminating a major impediment to foreign
the Karshi-Khanabad Air Base in support of military
investment and privatization. Although economic growth
operations in Afghanistan. U.S. relations with Uzbekistan
remains driven largely by state-funded projects, and state-
have improved since 2016, reflecting the country’s broader
owned enterprises (SOEs) dominate key sectors of the
development of international ties, and the Trump
economy, some SOEs are slated for privatization.
Administration has expressed strong support for
According to the State Department, Uzbekistan’s
Uzbekistan’s reform efforts. President Mirziyoyev traveled
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Reforms in Uzbekistan
government has achieved “notable improvement” in fiscal
registration, but both local and international organizations
transparency and has increased engagement with
still face bureaucratic obstacles.
international experts. The U.S. Department of Commerce
identifies insufficient protection of intellectual property
Democratization
rights, an overregulated banking sector, and the domination
Some analysts express skepticism as to whether the reform
of SOEs as among the challenges facing foreign businesses
effort will extend to genuine democratization. Uzbekistan’s
operating in Uzbekistan. However, U.S. authorities note
centralized government structure grants the executive
progress in these areas.
branch extensive powers, with the president exercising a
significant degree of control over the legislature and the
Figure 1. Map of Uzbekistan
judiciary. The bicameral legislature (Oliy Majlis) has
historically provided neither an effective check on the
executive nor a venue for substantive political debate.
Parliament’s role has expanded somewhat under President
Mirziyoyev, who has criticized the legislative branch for
failing to exercise oversight over the executive and urged
greater initiative and accountability from parliament.
Nevertheless, all five parties currently present in the 150-
seat lower chamber are considered pro-government, and
Uzbekistan has no effective political opposition. The
country’s first post-Karimov parliamentary elections were
held on December 22, 2019, under the slogan “New
Uzbekistan—New Elections,” with runoff votes held in 25
constituencies on January 5, 2020. According to
international experts, the elections took place in an
atmosphere of unprecedented openness and engagement
with voters. Nevertheless, the composition of parliament
remains largely unchanged. Although no party has an
outright majority, Mirziyoyev’s Liberal Democratic Party
Source: CRS
received the highest number of seats (53) and thus the right
to nominate a candidate for prime minister. More than half
Human Rights and Civil Society
of the incoming deputies were elected for the first time, and
Although international organizations have lauded
they are on average younger than their predecessors. The
Uzbekistan’s progress on human rights, concerns persist
number of women in parliament has doubled to 48.
among some observers. Human rights activists have long
criticized Uzbekistan for its use of forced labor in
Outlook and Issues for Congress
harvesting cotton, the country’s primary cash crop. Under
Uzbek government officials consistently describe the
Karimov, the government annually forced millions of
reform process as “irreversible.” Longtime observers
people to pick cotton, a practice that dated to the Soviet
describe the overall changes taking place in Uzbekistan as
period. In its 2019 Trafficking in Persons report, the State
“remarkable,” particularly with regard to increased
Department assessed that Mirziyoyev’s government has
openness, improved governance, and decreased repression.
taken “substantive actions” to combat forced labor.
Nevertheless, reform remains a top-down, centralized
Mirziyoyev has received recognition for releasing dozens of
process, leading to skepticism among some analysts as to
political prisoners, including two journalists who had been
whether the government will implement true
jailed for almost 20 years. Nevertheless, according to the
democratization. Freedom House continues to classify
U.N. Committee Against Torture, there are reports that
Uzbekistan as “not free,” citing the country’s “consolidated
torture and ill-treatment of prisoners in Uzbekistan’s
authoritarian regime.”
prisons remain “widespread” and “routine.” Although it has
eased some restrictions, the government still regulates
Uzbekistan’s reform program has drawn interest and
religious activities, and the State Department places
support from Congress, because the effort improves the
Uzbekistan on its Special Watch List for countries that have
country’s human rights situation, opens up new economic
engaged in or tolerated severe violations of religious
opportunities, and positions Uzbekistan as a U.S. partner in
freedom. Uzbekistan’s media and civil society are now able
furthering regional cooperation and regional security.
to operate more freely than under Karimov, but still face
Uzbekistan’s reengagement with its neighbors is
constraints. Local media have begun covering previously
reconfiguring regional dynamics and advancing Central
taboo topics such as forced labor and corruption, but self-
Asian connectivity, a U.S. policy priority. The first U.S.
censorship persists. Journalists representing international
Department of Commerce Certified Trade Mission visited
media outlets have received accreditation, and independent
Uzbekistan in June 2019 and included representatives from
news, social media, and human rights-related websites that
major U.S. companies such as GE, Procter & Gamble, and
had long been blocked in the country are now accessible.
John Deere. Tashkent is also conducting outreach at the
The Uzbek service of the congressionally-funded Radio
state level, seeking to attract investment from U.S.
Free Europe/Radio Liberty remains blocked, however, and
companies and to establish cooperation with state-level
its journalists have been refused accreditation. The
entities in areas such as higher education and agricultural
Mirziyoyev government has eased barriers to NGO
research.
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Reforms in Uzbekistan

IF11408
Maria A. Blackwood, Analyst in Asian Policy

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