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January 15, 2020
Reforms in Uzbekistan
Following years of economic and foreign policy
isolationism, Uzbekistan's government is currently engaged
in a wide-ranging reform effort that is transforming regional
dynamics in Central Asia and creating new opportunities
for U.S. engagement across a range of sectors. From 1991
to 2016, Uzbekistan was led by President Islam Karimov, a
former high-level Soviet official. International observers
considered his rule authoritarian and highly repressive.
Karimov's economic policies emphasized self-sufficiency,
and his government pursued a largely isolationist foreign
policy. Following Karimov's September 2016 death, he was
succeeded as president by then-Prime Minister Shavkat
Mirziyoyev. Mirziyoyev had a long career as a government
official under Karimov and was widely expected to
continue his predecessor's policies. Yet he embarked on an
ambitious reform program that aims to transform
Uzbekistan by modernizing and liberalizing the economy,
streamlining the bureaucracy, easing political repression,
addressing human rights concerns, reengaging with the
international community, and attracting increased foreign
investment. Uzbekistan was once considered one of the
world's most isolated and repressive countries, but U.S.
officials and other international observers have noted
significant improvement since reforms began. Nevertheless,
some concerns persist, particularly with regard to human
rights and political freedoms.
President [Mirziyoyev] envisions Uzbekistan
transformed into a thriving, modern state-an
example for the region-with a government
accountable to its citizens and respectful of their
rights, with constructive relationships with its
neighbors, and with an open economy that welcomes
and protects foreign investment. None of these
reforms will be easy, but all of them are essential, and
the United States strongly supports them.
- Principal Deputy Assistant Secretary of State for
South and Central Asian Affairs Alice Wells
After government forces killed over 100 unarmed civilians
during unrest in the eastern city of Andijan in 2005, the
government of Uzbekistan responded to foreign criticism
by expelling numerous international NGOs and media
organizations, as well as ending the Peace Corps program
and demanding the withdrawal of U.S. forces stationed at
the Karshi-Khanabad Air Base in support of military
operations in Afghanistan. U.S. relations with Uzbekistan
have improved since 2016, reflecting the country's broader
development of international ties, and the Trump
Administration has expressed strong support for
Uzbekistan's reform efforts. President Mirziyoyev traveled
to Washington, DC, in May 2018, the first official visit by
an Uzbek president to the United States since 2002, and
lauded the new era of the strategic partnership between
the two countries. According to Trump Administration
officials, Uzbekistan's reengagement with its neighbors has
invigorated the U.S.-led C5+1 framework, which provides a
high-level forum for discussing regional issues. Uzbekistan
has moved to normalize and improve previously strained
relations with its Central Asian neighbors, working to
resolve border disputes with Tajikistan and the Kyrgyz
Republic and increasing regional outreach. Additionally,
Uzbekistan is increasingly active in the Afghan peace
process, seeking to mediate between the Afghan
government and the Taliban and to promote stability by
developing trade relations.
U.S. foreign assistance to Uzbekistan aims to support the
country's reform efforts, promote the rule of law, and
further economic development, especially diversification in
agriculture through the utilization of U.S. technology. Aid
is also intended to strengthen border controls in order to
promote security and regional stability. The State
Department requested $14.4 million in aid for Uzbekistan
for FY2020, up from $10.6 million requested for FY2019.
Trade between the United States and Uzbekistan more than
doubled between 2017 and 2018, from approximately $150
million to over $300 million, and U.S. Secretary of
Commerce Wilbur Ross assesses that significant
opportunities exist to strengthen commercial and economic
ties. Although Russia and China remain Uzbekistan's
largest economic partners, the government is pursuing
increased investment from the United States and Europe.
The United States supports Uzbekistan's efforts to accede
to the World Trade Organization (WTO), and the Trump
Administration has criticized the prospect of Uzbekistan
joining the Russia-led Eurasian Economic Union as
potentially impeding the WTO accession process.
Under President Mirziyoyev, Uzbekistan has implemented
economic reforms aimed at decreasing the role of the state
in favor of the private sector and attracting large-scale
foreign investment. The government has prioritized
improving the country's business environment and
streamlining public administration, and the World Bank has
commended Uzbekistan's strong progress on economic
reforms. In an important move, in 2017 the government
eased long-standing currency controls and liberalized its
monetary policy, eliminating a major impediment to foreign
investment and privatization. Although economic growth
remains driven largely by state-funded projects, and state-
owned enterprises (SOEs) dominate key sectors of the
economy, some SOEs are slated for privatization.
According to the State Department, Uzbekistan's
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