Taking the First Step: Since
independence, the economy of Uzbekistan has had a lot of changes. Before
that it had a totally different economy. Present day Uzbekistan has a free
market economy. Even though the government has narrowed the gap between
the black market and the official exchange rate, its trade regime has crippled
the economy. Uzbekistan has the lowest economic growth rate in the world,
but still it's developing and finding ways to improve its economy. The state
continues to be a dominating influence in the economy and has so far failed
to bring about much-needed structural changes.
Uzbekistan is heavily dependent on foreign trade and has had good
economic ties with the former U.S.S.R. and other countries including
Germany, the U.S., Great Britain, Japan, France, Italy, Korea, Turkey,
The industries are mainly located in the capital Tashkent,
and the following cities including Khiva, Bukhara, and Samarkand.
The industries do food processing, machine building, metallurgy,
natural gas production, and making elaborate textiles.
Relying on Others: Uzbekistan exports cotton, gold, natural gas, mineral
fertilizers, ferrous metals, textiles, food products, and automobiles.
Its export partners are Russia, Switzerland, the United Kingdom, Belgium,
Kazakhstan, and Tajikistan.
It imports machinery and equipment, chemicals, metals, and foodstuffs.
Its import partners are Russia, South Korea, Germany, the United
States, Turkey, and Kazakhstan.
The local currency of Uzbekistan is known as "Soum" The exchange rate in 1995 was 30.2:US$1 and is presently 998:US$1.
Uzbekistan has also started to produce its own cars having signed a contract with Daewoo from South Korea. By seeing the new developments happening
we are looking forward to a better future for the country.
Getting on with Others: Regarding foreign Relationships, Uzbeksitan
has really good relationships with India which is why it was decided to have
an Indo-Uzbek commision when Prime Minister Narasimha visited Uzbekistan.
Follow-up meetings were held in New Delhi in 1999. You can tell
that it's having good relationships with India because a lot of stuff in
the market today is from India. Uzbekistan also has stable trade with
the Czech Republic, Turkey, and South Korea.
Uzbeksitan joined the Commonweath of Independent States in 1991. Uzbekistan
is an active supporter of the U.S. and is strictly against worlwide terorism
that is now hapening in the world. It is a member of the United Nations,
the Euro-Atlantic Partnership Council, Partnership for Peace, and the
Organization on Security and Cooperation in Europe. It is also part of
the organization called Islamic Organization that is made of countries
including Pakistan, Afghanistan, Iran, Azherbaijan, and Turkey.
My conclusion is that Uzbekistan has totally changed after independence
and it will keep changing until it is a well developed country. It has
unique features in its economy which even I was shocked to see. It shows
us how it changed from Communism to Democracy. Let's see how this country
progresses and hope that it gets whatever it needs to maintain itself
as such a wonderful nation.