Economic priorities of the Republic of Uzbekistan for 2021 outlined at the Address to the Parliament made by President Mirziyoyev. For the 4 consecutive year, the Addresses of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis outlined key points of the outgoing year and determine goals and objectives for the new one. Our Editor-in-Chief Egor Sharay tells more.
The Address, focused on the results of 2020, the work undertaken within the framework of the State Program “Year of Science, Education and Digital Economy”. A title for the 2021 year was proposed, along with critical tasks for the advancement of the country, priorities of domestic and foreign policy.
“We are well aware that today all of humanity is experiencing a global crisis due to the coronavirus pandemic. This is the biggest global disaster in a century” the President said.
He mentioned that the government has channeled nearly $8 bln to mitigate and eliminate the consequences of the pandemic. Particularly, the newly formed Anti-Crisis Fund has received $1.5 bln from the state budget to support the population and business suffered from COVID-19. The state-owned enterprises and more than 500,000 business entities, as well as 8 mln people were given loan deferrals and financial assistance totaling $6.3 bln.
The President thanked the international organizations that actively collaborated in repatriating Uzbek nationals that stranded abroad due to the global pandemic.
«I would like to express my gratitude to the leaders of the UN, the World Health Organization, international financial institutions, the heads of state – Russia, China, USA, Turkey, UAE, South Korea, Japan, Germany and other countries for the practical assistance provided in the fight against the pandemic. It is my pleasure to express my gratitude and best wishes to the distinguished ambassadors of foreign countries and representatives of international organizations, who make a worthy contribution to strengthening friendship and cooperation with our country» said President Mirziyoyev.
It is worth mentioning that Emirates was mentioned among key strategic allies of Uzbekistan along with big powers
According to the President, the main goal of economic reforms in 2021 will be to reduce poverty and increase the welfare of the population. These strategic goals will be achieved through high rates of economic growth and creation of equal opportunities for all.
During last years, serious steps have been taken to introduce market mechanisms in all sectors of national economy. The challenge now is to lay the foundation for long-term sustainable growth through deep structural transformation. Based on the above, the following areas have been selected as priorities for 2021.
- First, to reduce poverty, integrated approaches and new non-traditional methods will be introduced.
«…we need to clearly understand that the problem of poverty cannot be solved only by providing loans, social benefits or housing. This requires a comprehensive solution to issues related to education, healthcare, vocational training, access to clean drinking water, energy resources and road infrastructure.
The Government is instructed to systematize social guarantees within two months and develop a program of measures for their phased provision at the level of minimum consumer spending.
A new mechanism based on the principle of «motivation, skills and financial support» will be introduced to lift out of poverty everyone who is included in the «iron book». Also, families engaged in agriculture will be allocated 10 acres to 1 hectare of land, depending on the capabilities and specialization of each district» – specified President.
- Second, the transformation of state-owned companies will be accelerated.
«…an important direction of structural reforms is to reduce the presence of the state in the economy».
The implementation of the reform program for all state-owned enterprises has begun. In 2021 the Navoi Mining and Metallurgical Combine, Uzbekneftegaz JSC, Uzbekgidroenergo, Uzavtosanoat will have the opportunity to enter the international financial market and raise funds without state guarantees.
The World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, McKinsey & Company, Boston Consulting Group, Rothschild & Co and other world-famous companies were invited to reform large enterprises in utilities, oil and gas and chemical industries, mechanical engineering, as well as commercial banks.
In 2021, the transformation of 32 large enterprises in industries of strategic importance is to be carried out. In general, the number of enterprises with state participation in the next two years will be reduced by 3 times at least.
- Third, according to the President, the issue of creating a free competitive environment in the commodity and financial markets, as well as providing entrepreneurs with equal opportunities for access to raw materials will be worked out.
In order to expand the presence of the private sector in the liquefied gas market, import duties will be removed. In the field of jewelry production, from March 1, 2021, the procedure for the free sale of silver to manufacturers through the exchange will be established. The number of automobile manufacturers will increase. From 2021, excise taxes on 73 commodity items in the food, oil and electrical industries will be abolished.
- Fourth, economic growth will be ensured primarily through the creation of competitive production chains and increased investment for these purposes.
A special program accelerated development for promising clusters will be developed by April 1, 2021. In 2021, 50 fields and promising areas will be sold to local and foreign investors on the basis of open tenders.
«…In general, for the next year we have set the task of assimilating investments in the amount of 23 billion dollars. As a result, 226 large industrial and infrastructure facilities will be commissioned in 2021» added President.
- Fifth, the key task of the Central Bank and the Government in 2021 will be to keep inflation at a level of no more than 10 percent within the framework of inflation targeting.
In 2021, the share of international bonds issued in national currency should be increased from the current 25 percent to at least 40 percent.
- Sixth, more favorable conditions will be created for the development of entrepreneurship and small business.
During the pandemic, entrepreneurs, along with the state, made a worthy contribution to the sustainable functioning of the economy. For the convenience of entrepreneurs, 105 types of licenses and permits will be canceled, procedures for obtaining 115 types of such documents will also be simplified. It is planned to revise about 5 thousand normative acts regulating entrepreneurial activity, reduce their number, and devise an Entrepreneurial Code.
- Seventh, agricultural productivity and efficiency will be dramatically increased.
The priority task here is to increase the profitability of a hectare of land from the current average of 2 thousand dollars to at least 5 thousand dollars. For this, it is necessary to widely implement in agriculture the most advanced scientific developments and innovations, including agricultural technologies, water-saving technologies, biotechnologies, achievements of seed production.
- Eighth, each village will develop taking into account its specifics, defining growth points. In addition, 100 technoparks, small industrial zones, regional clusters and logistics centers will be created to develop industrial potential in 84 districts and cities.
- Ninth, in 2021, the Uzbekistan Government will further bolster the social protection system. There is a step-by-step transition to the social model of the definition of disability corresponding to world standards.
The scale of work to provide housing for low-income families will expand.
- Tenth, entering new export markets will remain one of the most important tasks of the Government.
In 2021, $100 million will be allocated to exporters from the Export Support Fund for the purchase of raw materials and the production of export-oriented products. Exporters will be reimbursed 50 percent of the costs of opening trading houses and warehouses, advertising costs abroad.
In general, the Government has been tasked to increase the volume of exports of goods and services by at least 20 percent next year. «Full-fledged implementation of the priorities set for 2021 will allow us to achieve the main goal of our reforms, namely to improve the living standard of the ordinary people of Uzbekistan» concluded the President of Uzbekistan. Traditionally, he titled the Year of 2021. This year named as «Year of Supporting Youth and Protecting the Health of the Population».
