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Central Asia is the top priority of Uzbekistan's foreign policy
About the new feature of cooperation with Central Asian countries, economic interaction, investments and openness policy in the article of Yuri Kotvitadinov, an expert of the Center for Economic Research and Reforms.
Central Asian countries have always treated themselves as one region. The indigenous population in Central Asia has a common history, culture and similar customs, and declares one religion. In the territories of the countries of the region, especially in the border areas, a large number of representatives of the citizenship of the neighboring countries reside, which contributes to the existence of a large number of, including family ties between the residents of Central Asian countries. Uzbekistan has shared borders with all countries of the region and is actually located in the heart of Central Asia.
The total population of Central Asian countries has appointed about 75 million people. In 2019, the total foreign trade cycle of Central Asian countries amounted to $ 168.4 billion, and the GDP of the countries of the region - $ 303 billion worth and $ 918.3 billion worth of buying power (PPP). The pace of development of Central Asian economies also showed high growth rates of 4-7 percent.
As a result of the Coronavirus pandemic in 2020, the rate of GDP growth in all countries has decreased. However, according to the World Bank's predictions in 2021, the economies of Central Asian countries will once again show significant growth. All Central Asian countries, except Turkmenistan, are a side of the Commonwealth Free Trade Zone Agreement, which upholds a non-customs trade regime.
In the speech of the President of the Republic of Uzbekistan to Olei Majlis for 2021, in the foreign policy clause, special attention is dedicated to the issue of cooperation with Central Asian countries. The president called the strengthening of centuries-old friendship, good neighbor relations, strategic partnership and mutual trust with Central Asian countries that prioritize our foreign policy. At the same time, it was pointed out that the difficult conditions of the epidemic proved once again how much Central Asian countries need each other and are connected to each other.
In his speech, the president also said that the International Institute for Central Asia was established last year in Tashkent, which will teach the positive processes happening in the Central Asia region, and this year, important international conferences for the countries of the region will be held in Tashkent city - ′′ Central Asia's relationship with South Asia ′′ and in tribute Central Asia at the intersection of world civilizations ".
It should be pointed out that the importance of the priority of Central Asian countries in our country's foreign policy was determined by President Shavket Mirzayoyev immediately after his election to this position, and came to expression in many strategic documents, as well as initiatives and practical actions.
The foreign policy direction of our Republic leadership, aimed at getting closer and strengthening relations between the countries of the region, friendly and mutually useful with the neighboring countries has created a strong basis for developing and expanding cooperation in the field of trade, economy and investment between Central Asian countries, as well as interaction in the field of transportation. As a result, in the period 2017-2019 whose goal is to get closer to neighboring countries, Uzbekistan's trade cycle against Central Asian countries almost doubled - from $ 2.7 billion to $ 5.2 billion. At the same time, with Kazakhstan the growth was 1.6 times, Kyrgyzstan - 2.3 times, Turkmenistan - 3.1 times and Tajikistan - 2. times the share of Uzbekistan's trade with Central Asian countries, the total trade screen rose from 10.2 To 12.7 %. At the end of the first ten months of 2020, trade with Central Asian countries decreased slightly compared to the parallel period in 2019, due to a general slowdown in economic activity due to the Coronavirus pandemic, but some of Central Asian countries are in the trade return. The nation of Uzbekistan remains unchanged at the level of 12.7 percent.
According to the results of 2020, trade with Central Asian countries has decreased slightly (at a 5.4 percent rate) compared to 2019, related to a general slowdown in economic activity due to the coronavirus pandemic. However, the share of Central Asian countries in the scope of Uzbekistan's commercial cycle rose from 2.4 % to 13.6 %. However, among Central Asian countries Kazakhstan remains the main commercial and economic partner of Uzbekistan. In 2020, Kazakhstan's share of regional trade with Uzbekistan amounted to 61 %, Kyrgyzstan - % 18.2, Turkmenistan - % 10.6, Tajikistan - % 10.2.
It should be mentioned that the extent of the participation of Central Asian countries in interregional trade is different. Thus, according to the results of 2019, the share of Kazakhstan and Turkmenistan in the scope of trade between Central Asian countries was the lowest and amounted to 4.8 percent and 4.1 respectively. At the same time, Tajikistan and Kyrgyzstan's participation in regional trade was the highest-30.6 percent and -% 19.8 respectively. Uzbekistan took a middle position with a 12.4 percent index.
The foreign trade of Kazakhstan and Turkmenistan is less focused on the regional market due to the dominance of carbohydrates in their exports, mainly provided to non-Commonwealth countries (EU, China, Russia), and imports controlled by machines and equipment are mainly related to the excellent countries as well.
However, except for the extent of exporting commodities of mineral and metals, the export share between Central Asian countries is much higher. Hence, in relation to commodities that don't belong to raw materials, there are chances of increasing subregional trade, especially in finished products with added value, that all the countries of the region are interested in. In this context, expanding the mutual access of neighboring countries to their internal markets will contribute greatly to the solution of the tasks to increase the export of finished products, because by mutual trade in many items of non-resource commodities, they may not be competitors, but partners.
In particular, creating regional value networks in Central Asia, including industrial and agricultural clusters, that can provide a compensating effect in reducing transaction costs, can increase the export options of commodity manufacturers. In this context, to develop regional value chains, it is necessary to take measures to increase trade out borders and cross-border investments.
On the importance of the Central Asian market for exporting finished products to Uzbekistan, the following data is especially proven.
In 020, 25.5 percent of the products of all agricultural exports exported to Kazakhstan, and 18.8 percent to Kyrgyzstan. Kyrgyzstan also received 14.7 percent of all textile exports. For certain commodity items in the electricity industry, and in particular household appliances, the main thing is export
Also directed to Central Asian countries.
At the same time, Central Asian countries that carry out trade operations in the region have the shortest distances to deliver goods, which gives them benefits in saving transport costs. For the interests of Central Asian countries, also answer the joint creation of international transport corridors and international transport infrastructure in the region, which will help reduce transportation costs while supplying export products from Central Asian countries to the world markets.
Investments as a mutually beneficial interest
Uzbekistan's cooperation with Central Asian countries is growing at a high rate. Only in the last year the number of factories registered in Uzbekistan with Kazakhstan's capital has risen from 809 to 919 (7.8 percent of the total), Kyrgyzstan from 156 to 187 (1.6), Tajikistan From 161 to 183 (1.6) and Turkmenistan - with from 148 to 162 (1.4) units.
The Uzbek capital is also actively present in Central Asian countries, so, for example, in Tajikistan and Kyrgyzstan, joint ventures to manufacture household appliances exist. A joint venture to assemble cars and a textile factory opened in Kazakhstan. The opening of a factory for the production of home appliances is planned. In total, at the end of 2019, over 1,150 Uzbek capital organizations operated in Kazakhstan (6.6 percent of the total), of which more than 420 joint ventures.
Mutual trips of the citizens of the region countries
As a result of Uzbekistan's openness policy and expanding cooperation (especially with neighboring countries), the number of mutual travels of citizens has increased significantly. Thus, in 2018, 2.3 times more foreigners entered our country and twice as many citizens of Uzbekistan left the Republic than in 2017. and in 2019 1.3 times more foreign citizens entered in 2018. However, more than 2018. 85 percent of the foreigners who entered Uzbekistan were residents of the Central Asian region, and more than 83 percent of our country's citizens who went abroad visited Central Asian countries.
During the nine months of 2020, due to the coronavirus pandemic, the number of citizens entering and leaving Uzbekistan has reduced significantly. However, as in the past, 90 percent entered our country from the Central Asia region and 90 percent of the travel of Uzbek citizens abroad fell on Central Asian countries as well, which indicates
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The policy of openness and mutually beneficial cooperation run by the leadership of our country is specialized by the Central Asian countries, the sales of Uzbekistan's role in creating an atmosphere of trust and good neighbourhood in the region and expressing a willingness to address jointly. The Central Asia region for a space of stability, security, sustainable development and shared prosperity.
Yuri Kotvitadinov, chief investigator
Center for economic research and reforms under the command of the President of the Republic of Uzbekistan
The newspaper ′′ Pravada Vostoka ′′ No. 17 from January 26
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Ministry of Foreign Affairs of the Republic of Uzbekistan -
The stat committee of the Republic of Uzbekistan on statistics -
State Committee on Development of Tourism -
Ministry of Investments and Foreign Trade of The Republic of Uzbekistan
