Monday, 25 April 2022 00:00

A New Horizon for the United States-Uzbekistan Relationship Featured

By Mamuka Tsereteli, Ph.D. and Anthony B. Kim

April 25, 2022

https://www.heritage.org/asia/commentary/new-horizon-the-united-states-uzbekistan-relationship

daily signal

America’s partnership with Uzbekistan has become more relevant than ever. This former Soviet state is an ally against Russia, has an emerging market-based economy, and possesses significantly undervalued natural assets.

Capital Tashkent’s relationship with Washington entered what has been called “a new era of strategic partnership” during President Shavkat Mirziyoyev’s historic first visit to the White House in 2018.

More recently, during his March 9 meeting with Uzbek Foreign Minister Abdulaziz Komilov, Secretary of State Antony Blinken underscored, “We appreciate the strategic partnership between Uzbekistan and the United States, the work that’s being done through that; very much welcome the strong humanitarian support that you’ve been providing to the Afghans on one hand and now Ukrainians on the other.”

In his recent speech to Uzbeki lawmakers, Komilov said that Uzbekistan does not recognize the pro-Russia separatist-controlled districts in Ukraine’s Donbas region and called for a “peaceful solution” to end Russia’s unprovoked invasion of Ukraine.

Indeed, the U.S.-Uzbekistan relationship has gained greater strategic importance with the passage of time. The United States was among the first countries to recognize Uzbekistan’s independence from the Soviet Union in 1992 and has maintained growing bilateral relations in the 30 years since.

Uzbekistan is strategically located and the most populous country of Central Asia. Though it still has a long way to go, the country has been transitioning from a command-and-control economy to a market-based economy, propelled by a wide range of reforms, particularly since 2017.  

According to The Heritage Foundation’s annual Index of Economic Freedom, the Uzbekistani economy has grown notably over the past five years. Economic freedom has also advanced during the same period. With large increases in scores for investment freedom and financial freedom, Uzbekistan has recorded a 3.4-point overall gain in economic freedom since 2017 and is in the middle ranks of the “Mostly Unfree” countries.

Also notable is that the country, which is the eighth-largest producer and the 11th-largest exporter of cotton in the world, has eradicated systemic forced labor and systemic child labor, according to new findings by the United Nations’ International Labour Organization. That progress has resulted in the end of the international boycott of Uzbek cotton.

Going forward, emerging economic challenges further complicated by an elevated level of uncertainty will require significantly accelerated reform efforts for Uzbekistan to fully realize its economic potential.

The country is making progress in reforming its governance and public services, however, taking steps that are having an impact on the lives of ordinary citizens and making it easier for businesses to operate there.

It is also strategically better positioned than other countries of Central Asia to meet evolving new challenges: It does not share borders with Russia nor is it a member of either the Russian-led Eurasian Economic Union or the Collective Security Treaty Organization, which means it is significantly less dependent on Russia than many other former Soviet states.

But mitigating these emerging risk factors will require a new, even more dynamic economic strategy.

First and foremost, the government needs to further strengthen macro-economic stability and ensure structural reforms by supporting the private sector and reducing the role of the state in the economy. That includes boosting the privatization of state assets in all sectors.

Privatization, as well as tax and regulatory reforms, should be focused on attracting more foreign direct investments from a wide range of countries. Companies with solid investment plans, management, and technological know-how should be given priority. Uzbekistan has significantly undervalued assets, and with the proper packaging and government incentives, it should attract sizable foreign investment.

While the future success of Uzbekistan will rest in large part on the shoulders of Uzbeks themselves, America’s continuing strategic support remains essential for forwarding the reforms Uzbekistan has been charting.

Fundamentally, America’s economic engagement with Uzbekistan will be best exercised through constructive private-sector engagement that can be the catalyst for a sustainable and comprehensive economic transformation for the nation.

As this year marks the 30th anniversary of the establishment of diplomatic relations between the United States and Uzbekistan, it is in America’s interest to push forward this opportunity to enhance practical bilateral trade and investment with this vital partner in Central Asia.

Read 3251 times Last modified on Tuesday, 26 April 2022 15:32

isdp

AFPC-Full-Logo

 

News

  • CACI Chairman S. Frederick Starr comments on "Preparing Now for a Post-Putin Russia"
    Friday, 03 November 2023 18:30

    Whether Russian President Vladimir Putin dies in office, is ousted in a palace coup, or relinquishes power for some unforeseen reason, the United States and its allies would face a radically different Russia with the Kremlin under new management. The geopolitical stakes mean that policymakers would be negligent not to plan for the consequences of a post-Putin Russia. On November 2, 2023, CACI Chairman S. Frederick Starr joined a panel organized by the Hudson Institute’s Center on Europe and Eurasia for a discussion on how US and allied policymakers can prepare for a Russia after Putin.

    Click here to watch on YouTube or scroll down to watch the full panel discussion.

  • Central Asia Diplomats Call for Closer Ties With US
    Monday, 26 June 2023 00:00

    REPRINTED with permission from Voice of America News
    By Navbahor Imamova

    WASHINGTON -- U.S.-based diplomats from Central Asia, a region long dominated by Russia and more recently China, say they are eager for more engagement with the United States.

    Many American foreign policy experts agree that a more robust relationship would be mutually beneficial, though U.S.-based nongovernmental organizations express deep concerns about human rights and authoritarian rule in the five countries: Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

    Michael Delaney, a former U.S. trade official, argued in favor of greater engagement this week at a webinar organized by the American-Uzbekistan Chamber of Commerce.

    He noted that three of the five republics are World Trade Organization members and the other two are in the accession process — a goal actively encouraged by the U.S. government.

    "I've always believed that this is a geographically disadvantaged area. There are relatively small national economies," he said. But, he said, collectively the region represents a potentially more connected market, about 80 million people.

    Key issues

    In this virtual gathering, all five Central Asian ambassadors to Washington expressed eagerness to work on issues the U.S. has long pushed for, such as water and energy sustainability, security cooperation, environmental protection and climate, and connectivity.

    Kazakhstan's Ambassador Yerzhan Ashikbayev said that despite all factors, the United States does not want to leave the field to China, its global competitor, which actively invests in the region.

    "Recent visit by 20 companies to Kazakhstan as a part of certified U.S. trade mission, including technology giants like Apple, Microsoft, Google, but also other partners like Boeing, have shown a growing interest," Ashikbayev said.

    The Kazakh diplomat described a "synergy" of economies and diplomatic efforts. All Central Asian states are committed to dialogue, trade and multilateralism, he said. "As we are witnessing the return of the divisive bloc mentalities almost unseen for 30 years, it's in our best interest to prevent Central Asia from turning into another battleground of global powers."

    During his first tour of Central Asia earlier this year, Secretary of State Antony Blinken visited Kazakhstan and Uzbekistan, meeting separately with the foreign ministers of all five countries.

    That was deeply appreciated, said Meret Orazov, Turkmenistan's longtime ambassador, who also praised the regular bilateral consultations the U.S. holds with these countries.

    Uzbek Ambassador Furqat Sidiqov sees the U.S. as an important partner, with "long-standing friendship and cooperation which have only grown stronger over the years."

    "The U.S. has played a significant role in promoting dialogue and cooperation among the Central Asian nations through initiatives such as the C5+1," he said, referring to a diplomatic platform comprising Washington and the region's five governments.

    "This is where we address common concerns and enhance integration," said Sidiqov. "We encourage the U.S. to bolster this mechanism."

    Tashkent regards Afghanistan as key to Central Asia's development, potentially linking the landlocked region to the markets and seaports of South Asia. Sidiqov said his country counts on American assistance.

    'Possibility of positive change'

    Fred Starr, chairman of the Central Asia-Caucasus Institute in Washington, ardently advocates for the U.S. to adopt closer political, economic and people-to-people ties with the region.

    In a recent paper, he wrote that among dozens of officials, diplomats, entrepreneurs, experts, journalists and civil society leaders interviewed in Central Asia, "even those most critical of American positions saw the possibility of positive change and … all acknowledged that the need for change is on both sides, theirs as well as ours."

    This is the only region that doesn't have its own organization, said Starr, arguing that the U.S. could support this effort. "We have not done so, probably because we think that this is somehow going to interfere with their relations with their other big neighbors, the north and east, but it's not going to. It's not against anyone."

    "Easy to do, low cost, very big outcome," he added, also underscoring that "there is a feeling the U.S. should be much more attentive to security."

    "Japan, the European Union, Russia, China, their top leaders have visited. … No U.S. president has ever set foot in Central Asia," he said. He added that regional officials are left to wonder, "Are we so insignificant that they can't take the time to visit?"

    Starr urges U.S. President Joe Biden to convene the C5+1 in New York during the 78th session of the U.N. General Assembly in September. "This would not be a big drain on the president's time, but it would be symbolically extremely important," he said. "All of them want this to happen."

    Read at VOA News

  • Read CACI Chairman S. Frederick Starr's recent interview on the resurgence of Imperial Russia with The American Purpose
    Tuesday, 23 May 2023 00:00

    Why Russians Support the War: Jeffrey Gedmin interviews S. Frederick Starr on the resurgence of Imperial Russia.

    The American Purpose, May 23, 2023

    Jeffrey Gedmin: Do we have a Putin problem or a Russia problem today?

    S. Frederick Starr: We have a Putin problem because we have a Russia problem. Bluntly, the mass of Russians are passive and easily manipulated—down to the moment they aren’t. Two decades ago they made a deal with Vladimir Putin, as they have done with many of his predecessors: You give us a basic income, prospects for a better future, and a country we can take pride in, and we will give you a free hand. This is the same formula for autocracy that prevailed in Soviet times, and, before that, under the czars. The difference is that this time Russia’s leader—Putin—and his entourage have adopted a bizarre and dangerous ideology, “Eurasianism,” that empowers them to expand Russian power at will over the entire former territory of the USSR and even beyond. It is a grand and awful vision that puffs up ruler and ruled alike.

    What do most Russians think of this deal? It leaves them bereft of the normal rights of citizenship but free from its day-to-day responsibilities. So instead of debating, voting, and demonstrating, Russians store up their frustrations and then release them in elemental, often destructive, and usually futile acts of rebellion. This “Russia problem” leaves the prospect of change in Russia today in the hands of alienated members of Putin’s immediate entourage, many of whom share his vision of Russia’s destiny and are anyway subject to Putin’s ample levers for control. Thus, our “Putin problem” arises from our “Russia problem.”

    Click to continue reading...

  • CACI director Svante Cornell's interviewed on the 'John Batchelor Show' podcast regarding Turkey's 2023 presidential election
    Friday, 19 May 2023 00:00

    Listen to CACI director Svante Cornell's recent interview on the 'John Batchelor Show' podcast regarding Turkey's 2023 presidential election. Click here!

  • New Article Series on Changing Geopolitics of Central Asia and the Caucasus
    Wednesday, 24 November 2021 11:53

    Eurasia