Development potential of Uzbekistan from the perspectives of international organizations such as OECD and World Bank

Abstract

Uzbekistan, often viewed by international organizations like the OECD and the World Bank, presents a blend of challenges and prospects in its development trajectory. The OECD has acknowledged Uzbekistan's significant economic reforms since 2017, which have been directed towards improving the business environment, liberalizing the foreign exchange market, and bolstering governance in state-owned enterprises. These reforms resonate with the organization's emphasis on creating a conducive environment for private sector development, enhancing productivity, and fostering innovation. Additionally, Uzbekistan's strategic location as a landlocked nation in Central Asia provides it with opportunities to be a key trade and transit hub, linking the major markets of China, Russia, and Europe. The OECD sees potential in leveraging this geographic advantage by improving logistics, transportation infrastructure, and customs procedures, thereby propelling regional integration and trade. The World Bank, on the other hand, has commended Uzbekistan's ambitious transformation agenda and its strides towards becoming a market-oriented economy. Their reports highlight the nation's demographic dividend, with a young and growing population that can be a potent force for economic growth if skilled adequately. The bank also recognizes challenges such as the need for comprehensive judicial and institutional reforms, the importance of water resource management in an agriculturally dominant country, and the requirement for more substantial investments in education and health to enhance human capital. For the World Bank, tapping into Uzbekistan's potential involves a holistic approach, encompassing sustainable resource management, inclusive growth, and bolstering human and social capital, aligning with the bank's broader development goals.