Uzbekistan

Geography

Official Name: Republic of Uzbekistan
Capital City: Tashkent
Languages: Uzbek (official),Karakalpak (Recognised regional language)
Official Currency: Uzbekistan som
Government: Presidential republic
Religions: Islam, others
Population: 27,372,000
Land Area: 447,400 sqr km
Land Divisions: 12 provinces, 1 autonomous republic (Karakalpakistan Autonomous Republic) and 1 independent city (Shahar)

History

Тhe territory of Uzbekistan was already populated in the second millennium BC. Early human tools and monuments have been found in the Ferghana, Tashkent, Bukhara, Khorezm (Khwarezm, Chorasmia) and Samarkand regions. Alexander the Great conquered Sogdiana and Bactria in 327 BC, marrying Roxana, daughter of a local Bactrian chieftain. The conquest was supposedly of little help to Alexander as popular resistance was fierce, causing Alexander's army to be bogged down in the region. For many centuries the region of Uzbekistan was ruled by Iranian Empires, including the Parthian and Sassanid Empires. In the fourteenth century AD, Timur, known in the west as Tamerlane, overpowered the Mongols and built an empire. In his military campaigns, Tamerlane reached as far as the Middle East. He defeated Ottoman Sultan Bayezid I, who was captured, and died in captivity. Tamerlane sought to build a capital for his empire in Samarkand. Today Tamerlane is considered to be one of the greatest heroes in Uzbekistan. He plays a significant role in its national identity and history. Following the fall of the Timurid Empire, Uzbek nomads conquered the region. In the nineteenth century, the Russian Empire began to expand, and spread into Central Asia. The "Great Game" period is generally regarded as running from approximately 1813 to the Anglo-Russian Convention of 1907. Following the Bolshevik Revolution of 1917 a second less intensive phase followed. At the start of the 19th century, there were some 2,000 miles (3,200 km) separating British India and the outlying regions of Tsarist Russia. Much of the land in between was unmapped. By the beginning of the twentieth century, Central Asia was firmly in the hands of Russia and despite some early resistance to Bolsheviks, Uzbekistan and the rest of Central Asia became a part of the Soviet Union. On 27 October 1924 the Uzbek Soviet Socialist Republic was created. On August 31, 1991, Uzbekistan declared independence, marking September 1 as a national holiday. The country is now the world's second-largest exporter of cotton – while developing its mineral and petroleum reserves. Facing a multitude of economic challenges upon acquiring independence, the government adopted an evolutionary reform strategy, with an emphasis on state control, reduction of imports, and self-sufficiency in energy. Since 1994, the state controlled media have repeatedly proclaimed the success of this "Uzbekistan Economic Model" and suggested that it is a unique example of a smooth transition to the market economy while avoiding shock, pauperization, and stagnation. The gradualist reform strategy has involved postponing significant macroeconomic and structural reforms. The state in the hands of the bureaucracy has remained a dominant influence in the economy. Corruption permeates the society and grows more rampant over time: Uzbekistan's 2005 Corruption Perception Index was 137 out of 159 countries, whereas in 2007 Uzbekistan is at the very bottom of the ranking, 175 out of 179. A February 2006 report on the country by the International Crisis Group suggests that revenues earned from key exports, especially cotton, gold, corn, and increasingly gas, are distributed among a very small circle of the ruling elite, with little or no benefit for the populace at large.

Economy

Along with many Commonwealth of Independent States economies, Uzbekistan's economy declined during the first years of transition and then recovered after 1995, as the cumulative effect of policy reforms began to be felt. It has shown robust growth, rising by 4% per year between 1998 and 2003 and accelerating thereafter to 7%-8% per year. According to IMF estimates, the GDP in 2008 will be almost double its value in 1995 (in constant prices). Since 2003 annual inflation rates averaged less than 10%. Uzbekistan has a very low GNI per capita (US$610 in current dollars in 2006, giving a PPP equivalent of US$2,250). By GNI per capita in PPP equivalents Uzbekistan ranks 169 among 209 countries; among the 12 CIS countries, only Kyrgyzstan and Tajikistan had lower GNI per capita in 2006. Economic production is concentrated in commodities: Uzbekistan is now the world's sixth-largest producer and second-largest exporter of cotton, as well as the seventh largest world producer of gold. It is also a regionally significant producer of natural gas, coal, copper, oil, silver, and uranium. Agriculture employs 28% of Uzbekistan's labor force and contributes 24% of its GDP (2006 data). While official unemployment is very low, underemployment - especially in rural areas - is estimated to be at least 20%.Still, at cotton-harvest time, all students and teachers are mobilized as unpaid labour to help in the fields. The use of child labor in Uzbekistan has led several companies, including Tesco, C&A, Marks & Spencer, Gap, and H&M, to boycott Uzbek cotton.According to the Economist Intelligence Unit, "the government is hostile to allowing the development of an independent private sector, over which it would have no control". Thus, the national bourgeoisie in general, and the middle class in particular, are marginalized economically, and, consequently, politically.The economic policies have repelled foreign investment, which is the lowest per capita in the CIS. For years, the largest barrier to foreign companies entering the Uzbekistani market has been the difficulty of converting currency. In 2003, the government accepted the obligations of Article VIII under the International Monetary Fund. providing for full currency convertibility. However, strict currency controls and the tightening of borders have lessened the effect of this measure.Uzbekistan experienced galloping inflation of around 1000% per year immediately after independence (1992-1994). Stabilization efforts implemented with active guidance from the IMF rapidly paid off, as inflation rates were brought down to 50% in 1997 and then to 22% in 2002. Since 2003 annual inflation rates averaged less than 10%. Tight economic policies in 2004 resulted in a drastic reduction of inflation to 3.8% (although alternative estimates based on the price of a true market basket, put it at 15%). The inflation rates moved up to 6.9% in 2006 and 7.6% in 2007, but have remained in the single-digit range. The government of Uzbekistan restricts foreign imports in many ways, including high import duties. Excise taxes are applied in a highly discriminatory manner to protect locally produced goods. Official tariffs are combined with unofficial, discriminatory charges resulting in total charges amounting to as much as 100 to 150% of the actual value of the product, making imported products virtually unaffordable. Import substitution is an officially declared policy and the government proudly reports a reduction by a factor of two in the volume of consumer goods imported. A number of CIS countries are officially exempt from Uzbekistan import duties.The Republican Stock Exchange (RSE) 'Tashkent' opened in 1994. It houses a securities exchange, real estate traders, the national investment fund and the national securities depositary. It does not trade all joint-stock companies each month and therefore market capitalisation varies widely. Uzbekistan's external position has been strong since 2003. Thanks in part to the recovery of world market prices of gold and cotton, the country's key export commodities, expanded natural gas and some manufacturing exports, and increasing labour migrant transfers the current account turned into a large surplus – of between 9 and 11 per cent of GDP in 2003-05 – and foreign exchange reserves, including gold, more than doubled to around US$3 billion.

Culture

Uzbekistan has a wide mix of ethnic groups and cultures, with the Uzbek being the majority group. In 1995 about 71% of Uzbekistan's population was Uzbek. The chief minority groups were Russians (8%), Tajiks (5%), Kazaks (4%), Tatars (2.5%), and Karakalpaks (2%). It is said however that the number of non-Uzbek people living in Uzbekistan is decreasing as Russians and other minority groups slowly leave and Uzbeks return from other parts of the former Soviet Union.When Uzbekistan gained independence in 1991, there was concern that Muslim fundamentalism would spread across the region. The expectation was that a country long denied freedom of religious practice would undergo a very rapid increase in the expression of its dominant faith. As of 1994, well over half of Uzbekistan's population was said to be Muslim, though in an official survey few of that number had any real knowledge of the religion or knew how to practice it. However, Islamic observance is increasing in the region.Uzbekistan has a high literacy rate, with about 99.3% of adults above the age of 15 being able to read and write. However with only 88% of the under 15 population currently enrolled in education this figure may drop in the future[citation needed] . Uzbekistan has encountered severe budgeting shortfalls in its education program. The education law of 1992 began the process of theoretical reform, but the physical base has deteriorated, and curriculum revision has been slow.Uzbekistan's universities churn out almost 600,000 graduates annually.

Political system, law and government

Constitutionally, the Government of Uzbekistan provides for democracy. The executive holds a great deal of power and the legislature and judiciary has little power to shape laws. Under terms of a December 27,1995 referendum, Islom Karimov's first term was extended. Another national referendum was held January 27, 2002 to extend Constitutional Presidential term from 5 years to 7 years. The referendum passed and Karimov's term was extended by act of the parliament to December 2007. Most international observers refused to participate in the process and did not recognize the results, dismissing them as not meeting basic standards. The 2002 referendum also included a plan to create a bicameral parliament, consisting of a lower house (the Oliy Majlis) and an upper house (Senate). Members of the lower house are to be "full time" legislators. Elections for the new bicameral parliament took place on December 26, but no truly independent opposition candidates or parties were able to take part. The OSCE limited observation mission concluded that the elections fell significantly short of OSCE commitments and other international standards for democratic elections. Several political parties have been formed with government approval. Similarly, although multiple media outlets (radio, TV, newspaper) have been established, these either remain under government control or rarely broach political topics. Independent political parties were allowed to organize, recruit members, and hold conventions and press conferences, but have been denied registration under restrictive registration procedures. Terrorist bombings were carried out March 28–April 1, 2004 in Tashkent and Bukhara.