Uzbekistan

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Development Challenge The USAID Program Other Program Elements Other Donors Program Data Sheets Summary Tables USAID Search: Uzbekistan Previous Years' Activities 2002, 2001, 2000, 1999, 1998, 1997 Last updated: 32     (text taken from the FY 2003 Congressional Budget Justification) THE DEVELOPMENT CHALLENGE: Uzbekistan is the most populous of the Central Asian Republics (CARs) and is situated in the geographic heart of the region, bordered by the four other Central Asian countries, as well as Afghanistan. Uzbekistan has suddenly found itself on the frontline of the War on Terrorism and has assumed increased strategic importance to the stability of Central Asia. With its central location, fast growing population, a variety of natural resources, and a potential for a diversified economy, an open, prosperous Uzbekistan is central to economic growth in the region. Uzbekistan aspires to regional leadership and continues to be key in maintaining security in Central Asia. However, its leadership remains entrenched in a closed and stagnant political and economic system. The overall development challenge in Uzbekistan is to help build constituencies for political, economic and social change. The unwillingness of the Government of Uzbekistan (GOU) to introduce market-oriented reforms in the financial sector continues to constrain economic development. In 2000, GDP grew by a mere 1.5%. The GDP per capita income is $488. Ten percent of the population is estimated to be unemployed, with another 20% underemployed. Inflation rose from 25% in 2000 to 35.5% in 2001. According to World Bank estimates, one-third of annual profits from small private enterprises is channeled as protection and bribes. The economy and infrastructure have declined each year since independence and will continue to do so without economic reform and new investment. As 2001 ends with the signing of a Staff Monitoring Agreement with the International Monetary Fund, there is guarded hope that the GOU may be ready to take steps toward market liberalization. Its authoritarian politics and state-controlled economy stymie meaningful transition, contribute to human rights violations and limit foreign investment. Authoritarianism and vested interests make reform a long-term effort in Uzbekistan. Given its strategic importance and deteriorating situation, USAID programs are expanding to pursue reform over the long term. Newly appreciative of the vital role small enterprises play in the economy, the country's leadership is calling for greater growth of the small business sector. Nonetheless, citizens remain poorly informed and their participation in economic and political life restricted. Political opposition is not tolerated and interference with the independent media persists. Despite public statements from the highest levels of the GOU, promising legal and judicial reform and protection of the independent media, there is little tangible achievement. Freedom House has consistently ranked Uzbekistan as "not free", with the lowest degree of political freedom possible on the Freedom House scale. Nevertheless, progress does continue in building a vocal and effective NGO community, particularly at local levels. Uzbekistan inherited Soviet-style water management systems, for which it has neither the financial resources nor management experience to adequately maintain or replace. Two successive years of drought have focused the need for improved water management in the upstream areas, as well as the need for new investments in providing potable water in order to have a positive impact on health and social conditions. The GOU shows considerable eagerness to cooperate with USAID and others to modernize this system as a first and essential step toward modernizing its state-controlled agricultural sector. Uzbekistan's population is growing at 1.6%, and the infant mortality rate is 71.92 deaths per 1,000 live births. In Ferghana oblast,for example, 78% of women and children suffer from anemia. The GOU is committed to providing quality health services and is working with USAID and other donors to gradually shift the focus of the health care system from curative to preventive. Investment in education appears skewed to universities and technical schools, while primary education is impoverished. THE USAID PROGRAM: FY 2002 Estimate: $28.89 million $40.5 million FY 02 FSA Supplemental: Emergency Response Fund FY 2003 Request: $31.50 million To meet these challenges, the goal of USAID in Uzbekistan is to expand opportunities for citizens to participate, to increase their livelihoods and to improve quality of life. The Program Data Sheets provided below cover the four objectives for which USAID is requesting funds: primary health care, water resource management, democratic culture, and small enterprise, with cross cutting objectives in conflict mitigation, youth and education, gender, anti-corruption and rule of law. Supplemental funding from the War on Terrorism will be used for conflict mitigation by strengthening community development and improving access to health, water and employment opportunities especially in southern Uzbekistan. USAID will also advance conflict prevention and mitigation through media, education and public advocacy. The specific activities to be funded in FY 2002 and FY 2003 are described in more detail in the following Program Data Sheets. On-going Programs for Which No FY 2002 or FY 2003 Funding is Requested: USAID is not requesting new funds, but is continuing to expend funds already appropriated for the following: Number: Title: Last Notified: Planned Completion: 122-0410 Special Initiatives FY 02 CBJ. P. 768 FY 2002 OTHER PROGRAM ELEMENTS: In addition, USAID supports a number of institutional partnerships that seek to build lasting relationships between the U.S. and Uzbekistan. USAID takes advantage of several centrally-managed programs, including the agreement with the Centers for Disease Control and the Monitoring and Evaluation to Assess and Use Results (M EASURE)/Evaluation Program. The Office of Foreign Disaster Assistance has had a presence in Uzbekistan since October 2001. The Farmer-to-Farmer program managed by USAID's Bureau for Democracy, Conflict and Humanitarian Assistance is also active. The Eurasia Foundation has an active small grants program in education, small business, local government and civil society. The Departments of Commerce, Defense, Energy, Agriculture, and State also manage programs complementary to USAID field activities in various sectors. OTHER DONORS: USAID is the largest bilateral donor and continues to strengthen its coordination with other donors through joint activities. The World Bank follows the U.S. lead, and is renewing attention to the Ferghana Valley and to the education sector. The World Bank continues its support to natural resource management issues through the Global Environmental facility and its large health sector reform loan, the latter implemented in conjunction with USAID's health care project. The Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD) are also large donors. The ADB supports programs in infrastructure and education and anticipates beginning a new program to establish credit unions. ADB invited USAID to join this effort through the provision of technical assistance, and is also initiating a micronutrient program aimed at addressing iodine and iron deficiencies. The EBRD has made loans for textile plants, energy, and small enterprise development. Several smaller but still significant donors have effective programs. The European Union focuses on agriculture, private business development, and training and is launching a social infrastructure program in the Surhandarya region. The United Nations, the Soros Foundation, and the Organization for Security and Cooperation in Europe (OSCE) fund training to improve civil society and collaborate well with USAID. The World Health Organization is providing support for tuberculosis control, also in cooperation with USAID and Project Hope. The Japan International Cooperation Agency is examining the feasibility of providing health and medical equipment to Karakalpakstan. The United Nations Development Program continues to work on microcredit and poverty alleviation. Program Data Sheets 122-0131  An Improved Environment for the Growth of Small and Medium Sized Enterprises 122-0161 & 122-016X  Improved Management of Critical Natural Resources, including Energy 122-0211  Strengthened Democratic Culture Among Citizens and Targeted Institutions 122-0320 & 122-032X  Improved Utilization of Quality Primary Health Care for Select Populations 122-0420 & 122-042X  Cross-cutting Programs Country Background Information Resources     CIA Factbook Library of Congress National Geographic Country Maps State Dept. Country Information

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