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CM December 2021

THE CICM MAGAZINE FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS

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COUNTRY FOCUS<br />

Uzbekistan is on a<br />

path to liberalisation<br />

and growth.<br />

Cotton on to<br />

Uzbekistan<br />

AUTHOR – Adam Bernstein<br />

UZBEKISTAN has just celebrated<br />

its 13th anniversary. Thirty<br />

doesn’t make the doubly landlocked<br />

country seem very old,<br />

but it is, nevertheless, riddled<br />

with history given its proximity<br />

to the Old Silk Road and three key cities that<br />

sit along the route – Samarkand, Bukhara, and<br />

Khiva. With a capital revamped with Soviet architectural<br />

influences following a 1966 earthquake,<br />

Uzbekistan is said to be a wonderful mix of the<br />

utilitarian and stunningly historical.<br />

Not terribly large or small, the Muslim-majority,<br />

but “staunchly secular nation” – as Euractiv.com<br />

recently described it – has an area of 447,400 sq.<br />

km and is the world’s 56th largest nation. It’s a tad<br />

smaller than Sweden which has 450,295 sq. km and<br />

a hair’s width larger than Morocco that occupies<br />

446,500 sq. km. And it’s not far off being twice the<br />

size of the UK which measures, in comparison, a<br />

paltry 242,495 sq. km.<br />

A former Soviet outlier, it’s now one of nine<br />

members of the Commonwealth of Independent<br />

States which formed when the USSR dissolved. It’s<br />

surrounded by a series of ‘stan’s’ – Kazakhstan to<br />

the north, Kyrgyzstan and Tajikistan to the east,<br />

Afghanistan to the south and Turkmenistan to the<br />

west.<br />

Its only sea is – was – a rather large lake, the<br />

Aral Sea. But that, being an ecological disaster, is<br />

another story that can be traced back to the 1960s<br />

when irrigation systems were put in place by the<br />

Soviets to serve the cotton industry.<br />

The country is dry and sees relatively little<br />

rainfall – 100 to 200mm annually (the UK receives<br />

around 1150mm a year) and has a variance in<br />

temperature that ranges from an average low of<br />

-6oC to a high of 36oC.<br />

Before progressing, it should be noted that data<br />

outlined below should be taken with a pinch of<br />

salt; much is inconsistent if not sketchy. Even the<br />

Uzbek government’s own website quotes data that<br />

harks back to 2016.<br />

THE PEOPLE<br />

World Population Review, based on current United<br />

Nations data, puts the Uzbek population at 34m.<br />

This figure is expected to grow to a peak of 44.4m<br />

in 2070 after which it’s likely that it will decline.<br />

At a rate of 1.48 percent, Uzbekistan’s population<br />

growth is 79th in the world. This is down from<br />

According to<br />

Britannica.com,<br />

a combination<br />

of good sunlight,<br />

short mild<br />

winters, fertile<br />

irrigated soil, and<br />

good pastures,<br />

makes Uzbekistan<br />

well suited to<br />

cattle, sheep and<br />

cotton.<br />

1.66 percent in 2016. The population is young with<br />

a median age of 27.8 years versus 38.1 in the US<br />

and 40.5 in the UK. Specifically, 39.8 percent of<br />

the populace are under 24 years and 45.6 percent<br />

are aged 25 to 54 years. Just 14.5 percent are over<br />

55 years of age.<br />

Overall population density is very low at 80<br />

people per sq. km. Again, for comparison, the<br />

UK has 281 people per sq. km. 2018 data from the<br />

State Committee of the Republic of Uzbekistan<br />

on Statistics reckons that 2.57m live in the capital<br />

Tashkent, 597,000 in Namangan, 530,000 in<br />

Samarkand, 417,000 in Andijan, 310,000 in Nukus<br />

and around a quarter of a million in each of the<br />

next five largest towns and cities in the country.<br />

Fundamentally though, the country is not<br />

urbanised – UN data, albeit from 2010, reckoned<br />

that just 37 percent of the population live in an<br />

urbanised area. Now compare that to the UK with<br />

83.9 percent living in urban areas.<br />

And as for the demographic makeup of the<br />

country, Indexmundi cites data that suggests that<br />

Uzbekistan is ethnically 83.8 percent Uzbek, 4.8<br />

percent Tajik, 2.5 percent Kazakh, 2.3 percent<br />

Russian, 2.2 percent Karakalpak, 1.5 percent<br />

Tatar, and 4.4 percent other.<br />

Uzbek is the official language with 74.3 percent<br />

speaking it, Russian is next with 14.2 percent, and<br />

Tajik is in third place with 4.4 percent. English<br />

might combined under ‘other’.<br />

THE ECONOMY<br />

The economy of Uzbekistan is small but<br />

growing. The founding president of modern-day<br />

Uzbekistan, Islam Karimov, died in 2016. While he<br />

aligned the country with the Russian government,<br />

he also permitted US forces base rights post 9-11<br />

in exchange for military and economic assistance.<br />

His successor, Shavkat Mirziyoyev, is considered<br />

by most to be pursuing a less autocratic path. The<br />

World Bank commented as such when it published<br />

a short briefing which noted that “Uzbekistan has<br />

achieved substantial progress in transforming its<br />

economy and society since 2017. The Government<br />

is now moving on to the next stage of economic<br />

reforms to address structural constraints, such<br />

as the absence of factor markets and the state’s<br />

economic dominance in the economy.”<br />

And to make the point, Mirziyoyev told a<br />

large event in August, as detailed on Euronews.<br />

com, “that an overhaul of economic policy<br />

Brave | Curious | Resilient / www.cicm.com / <strong>December</strong> <strong>2021</strong> / PAGE 24

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