Uzbekistan’s path to a market economy. Chapter V review

After gaining independence in 1991, Uzbekistan began the move from a centrally planned to a market economy. The transition rested on five principles: the primacy of the economy over politics, the state as the chief reformer, the rule of law, a strong social policy and a gradual transition. The reforms went in several directions. In property, some state enterprises were privatised. In agriculture, farmer and household farms were formed and household plots enlarged. In finance and credit, the national currency (the so‘m) was fully introduced in 1994, and commercial banks and a securities market were set up. Foreign economic ties were gradually liberalised, and in the social sphere measures were taken to protect people from the hardships of the transition. From 2017, currency exchange was liberalised, the tax and customs systems were updated, and more attention went to reducing barriers to business. The Strategy of Actions (2017–2021), then the Development Strategy for 2022–2026 and, in 2023, the “Uzbekistan – 2030” strategy were adopted; their economic parts aim to continue reforms and develop investment and the digital economy.