Economy of Uzbekistan
News •
Uzbekistan is among the world’s leading cotton producers. It is known for its orchards and vineyards and is also important for raising Karakul sheep and silkworms. Uzbekistan’s mineral and oil and gas reserves are substantial. The country produces and exports a large volume of natural gas. The central bank issues the national currency, the sum.
Resources
The country’s resources include metallic ores; in the Olmaliq (Almalyk) mining belt in the Kurama Range, copper, zinc, lead, tungsten, and molybdenum are extracted. Uzbekistan possesses substantial reserves of natural gas, oil, and coal. The country consumes large amounts of its natural gas, and gas pipelines link its cities and stretch from Bukhara to the Ural region in Russia as well. Surveys show petroleum resources in the Fergana Valley (including major reserves in the Namangan area), in the vicinity of Bukhara, and in Karakalpakstan. The modern extraction of coal began to gain importance, especially in the Angren fields, only during World War II. Hydroelectric dams on the Syr Darya, the Naryn, and the Chirchiq rivers help augment the country’s nuclear-, coal-, and petroleum-powered generation of electricity.
Centuries-old rumours of extensive gold deposits in Uzbekistan evidently arose from a basis in fact. Rich polymetallic ores have been found in the Ohangaron (Akhangaran) field southeast of Tashkent. Miners there extract copper, some gold, lead, molybdenum, tungsten, and zinc. A plant for heat-leaching gold from low-grade ore was built in the mid-1990s by a subsidiary of the Newmont Mining Corporation in the Muruntau field in the Kyzylkum Desert of north-central Uzbekistan. It was intended to be a joint venture with the government, but Newmont Mining Corporation’s share was forfeited in a legal battle in 2007.
Uzbekistan requires greater water resources. By the early 1980s the government considered the shortage of water desperate. Officials in Moscow and Tashkent developed a plan to divert substantial amounts of water out of the Irtysh River far to the north into a pumped system that would aid in watering parts of lower Russia, Kazakhstan, and Uzbekistan. The project was killed, however, before it began, leaving Uzbekistan with chronic water shortages.
Agriculture
Ample sunlight, mild winters of short duration, fertile irrigated soil, and good pastures make Uzbekistan suitable for cattle raising and the cultivation of cotton. Irrigation has fallen into disfavour owing to the depletion of the great rivers, and the construction of new irrigation systems has been prohibited or curtailed. Already existing grand canals include the Great Fergana, Northern Fergana, Southern Fergana, and Tashkent. Several large artificial lakes and reservoirs have been created on the Zeravshan and other rivers.
In addition to the high and stable cotton yield in this most northerly of the great cotton regions of the world, growers have raised silkworms systematically since the 4th century. The silkworms are fed mulberry leaves from the many trees planted along streets and ditches. The Fergana Valley is especially noted for silk production.
Varieties of melons, apricots, pomegranates, berries, apples, pears, cherries, and figs grow abundantly, as do vegetables such as carrots, cucumbers, onions, tomatoes, and greens. Uzbekistan’s grapes are made into wine or raisins or are eaten fresh. Fruits and vegetables are sold both in the bazaars of Tashkent, Samarkand, Fergana, and other localities and in trade with neighbouring states. Korean agriculturalists cultivate rice along the middle Syr Darya. Sheep are the principal livestock.
Industry
Uzbekistan is the main producer of machinery and heavy equipment in Central Asia. The republic manufactures machines and equipment for cotton cultivation, harvesting, and processing and for use in the textile industry, irrigation, and road construction. This emphasis on making machinery also makes ferrous and nonferrous metallurgy important. The first metallurgical plant began operation at Bekobod in 1946.
Light industry includes tea-packing plants and factories for garment making.
Trade
The leading exports from Uzbekistan consist largely of extracted natural resources or raw materials—cotton, natural gas, oil, coal, silk, fruit, and Karakul pelts. Some fresh produce reaches Moscow and other northern markets. Manufactured goods such as machines, cement, textiles, and fertilizer are also exported. Uzbekistan’s largest sources of imports are China, Russia, South Korea, and Kazakhstan. Its main export destinations are Switzerland, China, Turkey, and Kazakhstan.
Transportation
The great obstacle to further development of markets for Uzbekistan’s copious truck gardening and fruit growing remains the antiquated means of distribution. Neither the surface nor air transport now available can efficiently or with adequate refrigeration handle the volume produced in Uzbekistan and needed by the Baltic states, Russia, Belarus, and Ukraine.
Old railways connect the republic’s major urban centres with other Central Asian republics and extend to Moscow and Siberia. Uzbekistan never had a domestic airline of its own until after independence in 1991, when former Soviet Aeroflot airplanes and their pilots were chartered to fly rather infrequently from such cities as Samarkand and Tashkent to nearby cities. Air service now connects Tashkent with London, New York, and other international cities.
Trucks transport most of the freight carried, and the roadways, like other facilities, require much repair—virtual reconstruction—and widening before they can support the modernizing economies that their builders once hoped to link with each other. The Great Uzbek Tashkent-Termiz Highway runs south almost to the border with Afghanistan. Termiz remains virtually a dead end in terms of trade, however, especially since the Soviet intervention (1979–89) in the Afghan War. A second road, the Zeravshan Highway, connects Samarkand with Chärjew, Turkmenistan, in the west. The Fergana Ring links the main settlements within the populous Fergana Valley.
Government and society
Constitutional framework
In 1992 Uzbekistan adopted a new constitution to replace the Soviet-era constitution that had been in effect since 1978. The new constitution, which was substantially revised in 2023, establishes the country as a republic and provides for legislative, executive, and judicial branches of government, dominated by a strong executive. Personal liberties generally are protected, but the government is given the right to restrict some of these liberties in certain circumstances. Nationalist or religious political parties are prohibited.
The country’s bicameral legislature (the Oliy Majlis, or Supreme Assembly) consists of a Legislative Chamber and a Senate. Legislative Chamber members are elected to five-year terms; most of the members of the Senate are indirectly elected, but some are appointed by the president. The legislature has the authority to amend the constitution, enact legislation, approve the budget, and confirm presidential appointees.
The president is the head of state and government (with the assistance of the prime minister) and is elected for a maximum of two consecutive seven-year terms, though the term can be extended by referendum. The president appoints the prime minister and cabinet, subject to parliamentary approval, and has the authority to issue binding decrees and repeal legislation passed by local administrative bodies.
Justice
The highest courts are the Constitutional Court, the Supreme Court, and the Higher Economic Court (for commercial cases), in addition to two high courts for the autonomous republic of Karakalpakstan. Judges are elected by the Senate from a set of candidates selected by the president..
Health and welfare
Hospital care for Uzbeks improved after 1924. Death rates at first fell markedly, but new problems later arose in public health because of environmental contamination, especially around the Aral Sea (see above Drainage), and maternal and infant morbidity and mortality rates now rank among the highest in the former Soviet states. The longevity of adult males also continues to lag behind rates elsewhere in the former Soviet republics. The poor quality of health care in Uzbekistan is attributable to discriminatory allocations for health care during the Soviet period and to a lack of sufficient attention to environmental problems by public health officials.
Housing
Good public housing continued to be in short supply into the 21st century, despite large outlays by the government in this sector. Efforts since independence to increase private home ownership have proceeded slowly due in part to low availability of affordable housing. Many citizens have erected their own houses—usually simple low structures, like those in the past, built around courtyards planted with fruit trees and gardens open to the skies but closed off from the streets—on suburban plots around Tashkent and other cities that have become available in large numbers.
Uzbekistan made concerted efforts in the 21st century toward developing its rural housing sector with assistance from the Asian Development Bank. The Housing for Integrated Rural Development (HIRD) program, a multisector strategy launched in 2009, sought to build infrastructure that would improve and diversify the housing market in rural areas. While the program increased the availability of rural housing, it fell short in improving affordability. In 2019 Uzbekistan undertook an initiative designed to improve the accessibility of market-based mortgage credit. In the constitutional reform of 2023, a right to housing was included.
Education
The famed medieval seminaries (madrasahs) of Bukhara, Khiva, Samarkand, and the Fergana Valley, long in decline, underwent a revival in the late 18th and again in the late 19th century that prepared new generations for carrying on Muslim education throughout Central Asia. Thousands of seminarians had flocked to those great institutions from inside and outside the region. Owing to both the renewed concern for education in the 1890s and the models offered by sudden activism among modernizers in Egypt, India, Turkey, and Tatarstan, Central Asia instituted its own educational reform movement known as the New Method (usul-i jadid) during the first two decades of the 20th century. The leaders of the Jadids, as they called themselves, included Munawwar Qari in Tashkent, Mahmud Khoja Behbudiy in Samarkand, Sadriddin Ayniy in Bukhara, and ʿAshur ʿAli Zahiriy in Kokand (Qŭqon). They exerted a strong influence on education during the initial decades of the Soviet period, and their methods and aims have reemerged since independence.
After the Soviet leader Mikhail Gorbachev instituted policies of glasnost (“openness”) and perestroika (“restructuring”) in the mid-1980s, Uzbekistan’s school administrators and teachers acknowledged openly the inadequacies of public education and began intensive efforts to modernize primary and secondary education; among other measures, Uzbek replaced Russian as the primary language of instruction. These efforts rendered most schoolbooks, which were written in Russian, unusable. The new language emphasis and the change in ideology created a need for hundreds of thousands of copies of entirely new instructional materials in Uzbekistan’s elementary and secondary school system. In response to that need, several histories of Uzbekistan—somewhat liberated from communist ideological strictures but still showing Marxist influence—appeared soon after independence, written by scholars experienced in Soviet historiography. Higher education, too, began the massive switch from Russian-language instruction and teaching materials to a curriculum and classroom procedure based entirely on Uzbek.
After the destruction of the informal Jadid system by communist authorities in the early 1920s, higher research shifted to such newer educational institutions as Tashkent State University and, after 1942, to the Uzbek S.S.R. branch of Moscow’s Academy of Sciences. At its zenith, the latter academic complex supported some 200 scholarly institutes and centres. After independence, and to some extent starting even earlier, the Academy of Sciences of Uzbekistan declined in prestige and suffered large losses in subsidies. By 1992 many institutes had closed or combined with others, and competing institutions with funding from various state agencies arose to operate in the same field.
Most educational institutions, except for the emerging Islamic centres with their maktabs (primary schools) and madrasahs organized and supported by Muslim religious educators and their followers, continued to depend on the state for their budgets and therefore must follow the dictates of Uzbekistan’s authoritarian leaders. In contrast, the network of Islamic institutions—centred in the Fergana Valley—has attracted to religious instruction thousands of young people, of whom about half remain outside the public schools.
