Uzbek President Criticizes Lack of Success in Attaining Expected Export Growth
Expanding Uzbekistan's exports is no laughing matter for President Shavkat Mirziyoyev. He's put his foot down, setting a 30% yearly increase target for exports. The reasons? Well, the economic fluctuations in traditional markets like Russia, China, Kazakhstan, and Turkey have taken their toll.
According to Mirziyoyev, these countries' currencies have devalued, conflicts around the world have stirred up uncertainty, and logistics have been a headache. Time to shake things up!
Enter Jamshid Khodjayev, the deputy prime minister in charge of investment and foreign trade. The countdown's on - if he doesn't make changes by the end of the quarter, he might find himself switching to a new job. Ouch!
Mirziyoyev's not one to mince words. He slashed the deputy Investment, Industry and Trade Minister, Badriddin Abidov, from his team on Jan 18. Not because Abidov was a slacker, but apparently, shortcomings in his work sealed his fate.
Mirziyoyev also gave the boot to numerous local officials who he believed had allowed foreign trade in their regions to decline. Harsh, but fair, some might think.
The numbers told the story. Data for January-November 2023 showed that Uzbekistan's trade turnover increased by 26.2 percent, up to $57.3 billion, compared to the same period the year before. Of that total, $23.2 billion were exports.
But China, a significant player, saw its exports from Uzbekistan drop by 9.6 percent (to $2.3 billion) during this 11-month period. This trend can be largely attributed to reduced amounts of natural gas Uzbekistan could sell abroad.
Mirziyoyev pins the failure to advance the export agenda on inefficiencies in the system. He says $200 million have been set aside as export credits, but the folks responsible for overseeing the allocation of these resources have been less than impressive.
Meanwhile, prospective exporters have been falling flat on their faces. There were 31 enterprises that received a total of 4.5 billion sums ($360,000) of financial support last year to help implement international certification protocols, but they failed to export any goods! Wow!
In another administrative shake-up, the Export Promotion Agency (often dismissed as a bean-counter handing out money arbitrarily) will be replaced by something called the Trade Development Company. This new entity will operate within the framework of World Trade Organization requirements.
Uzbekistan's currently working on accession to the WTO. The new Trade Development Company's shtick? Only exporters who can prove they plan to hit foreign markets with high-value goods will be eligible for support. This includes subsidies, loans, and other forms of help from the trade company.
In short, Uzbekistan's pushing hard to get its goods to far-off lands. The strategy? A mix of high-value manufacturing, export diversification, stabilizing relationships with its major partners, and welcoming new ones on the world stage. Game on!
Oh, and if you're curious, Uzbekistan's game plan also includes a massive push for renewable energy, climate-resilient agriculture, and green industrial zones. Sustainability's a big deal these days, right?
In light of the economic challenges in traditional markets and President Mirziyoyev's target for a 30% yearly increase in exports, the deputy prime minister, Jamshid Khodjayev, is under pressure to make changes in Uzbekistan's foreign trade by the end of the quarter. The president's new strategy for exports includes focusing on high-value manufacturing, diversifying business, strengthening partnerships, and seeking out new opportunities in the finance, industry, and news sectors. The Trade Development Company, replacing the Export Promotion Agency, will prioritize supporting exporters with high-value goods to boost Uzbekistan's exports on the global stage.
