Uzbekistan: Economy :: essays research papers fc

OverviewUzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives in densely populated rural communities. Uzbekistan is now the worlds second largest cotton exporter, a large manufacturing business of gold and oil, and a regionally significant producer of chemicals and apparatusry. The IMF suspended Uzbekistans $185 million standby arrangement in late 1996 because of government steps to the negative external conditions generated by the Asian and Russian pecuniary export and currency controls within its already largely closed economy. Economic policies that have repelled foreign investment are a major factor in the economys stagnation. A growing debt burden, persistent inflation, and a poor business climate led to disappointing growth in 2001. However, in celestial latitude 2001 the government voiced a renewed interest in economic reform, want advice from the IMF and other financial instit utions (World 7). After independence, Uzbekistan tried to support inefficient conjure enterprises and shield consumers from the shocks of rapid economic reform. These policies eventually led to severe inflation and an economic crisis. Reforms brought inflation down to manageable levels and small businesses began to grow. Larger institutions are seeking joint ventures with international corporations. However, currency and trade restrictions remain too tight to encourage significant foreign investment. Falling global gold, copper, and cotton prices also wound the economy. A privatization program is slowly being implemented with international support. Privatization is necessary to raise hard currency and promote economic development (Republic 4). GDP buying power parity$62 one million million (2001 est.)GDPper capita purchasing power parity$2,500 (2001est.)GDPcomposition by sector agriculture 33% intentness 24% services 43% (2001 est.)Inflation rate (consumer prices) 23% (2001 est. )Labor force 11.9 million (1998 est.) Labor forceby occupation agriculture 44%, industry 20%, services 36% (1995)Unemployment rate 10% plus another 20% underemployed (1999 est.) Budgetrevenues $4billion expenditures $4.1 billion, including capital expenditures of $1.1 billion (1999 est.) Industries textiles, food processing, machine building, metallurgy, natural gas, and chemicalsIndustrial production growth rate 3.5% (2000) Electricityproduction 40.075 billion kWh (2000) Electricityproduction by source fossil fuel 86.95% hydro 13.05% atomic 0% other 0% (2000) Electricityconsumption 4189 billion kWh (2000) Electricityexports 4.1 billion kWh (2000) Electricityimports 5 billion kWh (2000)Agricultureproducts cotton, vegetables, fruits, grain livestock Exports $2.8 billion (2001 est.) Exportscommodities cotton 41.5%, gold 9.6%, energy products 9.6%, mineral fertilizers, ferrous metals, textiles, food products, and automobiles (1998 est.)Exportspartners Russia16.7%, Switzerland 8.3%, UK 7.2%Ukraine, Eastern Europe, Western Europe Imports $4.1 billion (1998)