Uzbekistan

According to the Economist Intelligence Unit, "the government is hostile to allowing the development of an independent private sector, over which it would have no control". Thus, the middle class is marginalised economically and, consequently, politically.

The economic policies have repelled foreign investment, which is the lowest per capita in the CIS. For years, the largest barrier to foreign companies entering the Uzbekistan market has been the difficulty of converting currency. In 2003, the government accepted the obligations of Article VIII under the International Monetary Fund (IMF). providing for full currency convertibility. However, strict currency controls and the tightening of borders have lessened the effect of this measure.

Uzbekistan experienced rampant inflation of around 1000% per year immediately after independence (1992–1994). Stabilisation efforts implemented with guidance from the IMF paid off. The inflation rates were brought down to 50% in 1997 and then to 22% in 2002. Since 2003 annual inflation rates averaged less than 10%. Tight economic policies in 2004 resulted in a drastic reduction of inflation to 3.8% (although alternative estimates based on the price of a true market basket, put it at 15%). The inflation rates moved up to 6.9% in 2006 and 7.6% in 2007 but have remained in the single-digit range.

The government of Uzbekistan restricts foreign imports in many ways, including high import duties. Excise taxes are applied in a highly discriminatory manner to protect locally produced goods. Official tariffs are combined with unofficial, discriminatory charges resulting in total charges amounting to as much as 100 to 150% of the actual value of the product, making imported products virtually unaffordable. Import substitution is an officially declared policy and the government proudly reports a reduction by a factor of two in the volume of consumer goods imported. A number of CIS countries are officially exempt from Uzbekistan import duties.

The Republican Stock Exchange (RSE) opened in 1994. The stocks of all Uzbek joint stock companies (around 1250) are traded on RSE. The number of listed companies as of January 2013 exceeds 110. Securities market volume reached 2 trillion in 2012, and the number is rapidly growing due to the rising interest by companies of attracting necessary resources through the capital market. According to Central Depository as of January 2013 par value of outstanding shares of Uzbek emitters exceeded 9 trillion.

Uzbekistan's external position has been strong since 2003. Thanks in part to the recovery of world market prices of gold and cotton (the country's key export commodities), expanded natural gas and some manufacturing exports, and increasing labour migrant transfers, the current account turned into a large surplus (between 9% and 11% of GDP from 2003 to 2005) and foreign exchange reserves, including gold, more than doubled to around US$3 billion.citation needed

Foreign exchange reserves amounted in 2010 to 13 billion US$.

Uzbekistan is considered one of the fastest growing economies in the world (top 26) in the next decades according to a global bank HSBC survey 

Demographics

Uzbekistan is Central Asia's most populous country. Its 29,559,100 population comprise nearly half the region's total population.

The population of Uzbekistan is very young: 34.1% of its people are younger than 14 (2008 estimate). According to official sources, Uzbeks comprise a majority (80%) of the total population. Other ethnic groups include Russians 5.5%, Tajiks 5% (official estimate and disputed), Kazakhs 3%, Karakalpaks 2.5% and Tatars1.5% (1996 estimates).

There is some controversy about the percentage of the Tajik population. While official state numbers from Uzbekistan put the number at 5%, the number is said to be an understatement and some Western scholars put the number up to 20%–30%. The Uzbeks absorbed, among others, the Sarts, a Turko-Persian population of Central Asian peasants and merchants. According to recent genetic genealogy testing from a University of Oxford study, the genetic admixture of the Uzbeks clusters somewhere between the Mongols and the Iranian peoples.

Uzbekistan has an ethnic Korean population that was forcibly relocated to the region by Stalin from the Soviet Far East in 1937–1938. There are also small groups ofArmenians in Uzbekistan, mostly in Tashkent and Samarkand. The nation is 88% Muslim (mostly Sunni, with a 5% Shi'a minority), 9% Eastern Orthodox and 3% other faiths. The U.S. State Department's International Religious Freedom Report 2004 reports that 0.2% of the population are Buddhist (these being ethnic Koreans). The Bukharan Jews have lived in Central Asia, mostly in Uzbekistan, for thousands of years. There were 94,900 Jews in Uzbekistan in 1989 (about 0.5% of the population according to the 1989 census), but now, since the dissolution of the Soviet Union, most Central Asian Jews left the region for the United States, Germany, or Israel. Fewer than 5,000 Jews remained in Uzbekistan in 2007.

Russians in Uzbekistan represent 5.5% of the total population. During the Soviet period, Russians and Ukrainians constituted more than half the population ofTashkent. The country counted nearly 1.5 million Russians, 12.5% of the population, in the 1970 census. After the dissolution of the Soviet Union, significant emigration of ethnic Russians has taken place, mostly for economic reasons.

In the 1940s, the Crimean Tatars, along with the Germans, Chechens, Greeks, Turks, Kurds and many other nationalities were deported to Central Asia.Approximately 100,000 Crimean Tatars continue to live in Uzbekistan. The number of Greeks in Tashkent has decreased from 35,000 in 1974 to about 12,000 today. The majority of Meskhetian Turks left the country after the pogroms in the Fergana valley in June 1989.

At least 10% of Uzbekistan's labour force works abroad (mostly in Russia and Kazakhstan).

Uzbekistan has a 99.3% literacy rate among adults older than 15 (2003 estimate), which is attributable to the free and universal education system of the Soviet Union.

Jewish community

According to local traditions Jews began to settle in the area 2,000 years ago after the exile from the kingdom of Israel by the Babylonian, other traditions focus on Jewish merchants settling in the area of the silk road and Jews that came to the area after Persian persecutions some 1,500 years ago.

The Jewish community flourished for centuries with occasional hardships during the reign of certain rulers. During the rule of Tamerlane in the 14th century Jews contributed greatly to his efforts to rebuild Samarkand and a great Jewish center was established there. However, after Tamerlane's death Jews endured harsh treatment, strict Muslim authorities enacted humiliating and restrictive rules forbidding Jews from living outside the Jewish quarter, Jewish gates and shops had to be built lower than those of the Muslims. Jews had to wear a black cap and a cord belt, and accounts by Jewish witnesses in court were not valid for Muslims.

After the area came under Russian rule in 1868 Jews were granted equal rights with the local population. In that period some 50,000 Jews lived in Samarkand and 20,000 in Bukhara. After the Russian revolution in 1917 and the establishment of the Soviet regime Jewish religious life was restricted and by 1935 only one synagogue out of 35 left in Samarkand., nevertheless underground community life continued during the Soviet era.

During WW2 tens of thousands of Jews from the European parts of the Soviet Union arrived In Uzbekistan as refugees or were exiled by Stalin and by 1970 there were 103,000 Jews registered in the republic. 

At the late 80's of the 20th century with the rise of nationalistic riots as a result of the dissolution of the Soviet Union, damaging, among others, the Jewish quarter inAndijan, most of the Jews of Uzbekistan immigrated to Israel and to the US. A small community of several thousands remains today in the country- some 7,000 live in Tashkent, 3,000 in Bukhara and 700 in Samarkand.

Largest cities

Religion

Despite its predominance, the practice of Islam is far from monolithic. Many versions of the faith have been practiced in Uzbekistan. The conflict of Islamic tradition with various agendas of reform or secularization throughout the 20th century has left the outside world with a confused notion of Islamic practices in Central Asia.citation needed

The end of Soviet power in Uzbekistan did not bring an upsurge of fundamentalism, as many had predicted, but rather a gradual reacquaintance with the precepts of the faith.

Although constitutionally maintaining rights to freedom of religion, Uzbekistan maintains a ban on all religious activities not approved by that state, with particularly harsh treatment of Protestant Christians being commonplace. See: Human Rights; Freedom of Religion, Uzbekistan

Languages

The Uzbek language is the only official state language, and since 1992 is officially written in the Latin alphabet. The Tajik language is widespread in the cities ofBukhara and Samarkand because of their relatively large population of ethnic Tajiks. It is also found in large pockets in Kasan, Namangan and Khokand in Ferganavalley, as well as in Ahangaran, Baghistan in the middle Syr Darya distrist, and finally in, Shahri Sabz, Kitab and the river valleys of Kafiringan and Chaganian rivers, forming altogether, approximately 25-30% of the population of Uzbekistan

Russian is an important language for interethnic communication, especially in the cities, including much day-to-day technical, scientific, governmental and business use. Russian is the main language of over 14% of the population and is spoken as a second language by many more. The use of Russian in remote rural areas has always been limited, and today most school children have no proficiency in Russian even in urban centres. However, it was reported in 2003 that over half of the population could speak and understand Russian, and a renewed close political relationship between Russia and Uzbekistan has meant that official discouragement of Russian has dropped off sharply.

Before 1920s, the written language of Uzbeks was called Turki (known to Western scholars as Chagatay) and used the Nastaʿlīq script. In 1926, the Latin alphabet was introduced and went through several revisions in throughout the 1930s. Finally, in 1940, Cyrillic alphabet was abruptly introduced by Soviet authorities and was used until the fall of Soviet Union. In 1993, Uzbekistan shifted back to the Latin script, which was modified in 1996 and is being taught in schools since 2005.Nevertheless, many signs and notices (including official government boards in the streets) are still written in Uzbek Cyrillic scriptcitation needed.

Communications

According to the official source report, as of March 10, 2008, the number of cellular phone users in Uzbekistan reached 7 million, up from 3.7 million on July 1, 2007.The largest mobile operator in terms of number of subscribers is MTS-Uzbekistan (former Uzdunrobita and part of Russian Mobile TeleSystems) and it is followed by Beeline (part of Russia's Beeline) and UCell (ex Coscom) (originally part of the U.S. MCT Corp., now a subsidiary of the Nordic/Baltic telecommunication companyTeliaSonera AB).

As of July 1, 2007, the estimated number of internet users was 1.8 million, according to UzACI.

Transportation

Tashkent, the nation's capital and largest city, has a three-line rapid transit system built in 1977, and expanded in 2001 after ten years' independence from the Soviet Union. Uzbekistan and Kazakhstan are currently the only two countries in Central Asia with a subway system. It is promoted as one of the cleanest systems in the former Soviet Union. The stations are exceedingly ornate. For example, the station Metro Kosmonavtov built in 1984 is decorated using a space travel theme to recognise the achievements of mankind in space exploration and to commemorate the role of Vladimir Dzhanibekov, the Soviet cosmonaut of Uzbek origin. A statue of Vladimir Dzhanibekov stands near one of the station's entrances.

There are government-operated trams and buses running across the city. There are also many taxis, both registered and unregistered. Uzbekistan has car-producing plants which produce modern cars. The car production is supported by the government and the Korean auto company Daewoo. The Uzbek government acquired a 50% stake in Daewoo in 2005citation needed for an undisclosed sum, and in May 2007 UzDaewooAuto, the car maker, signed a strategic agreement with General Motors-Daewoo Auto and Technology (GMDAT, see: GM Uzbekistan also). The government also bought a stake in Turkey's Koc in SamKochAvto, a producer of small buses and lorries. Afterwards, it signed an agreement with Isuzu Motors of Japan to produce Isuzu buses and lorries.

Train links connect many towns within Uzbekistan, as well as neighboring former republics of the Soviet Union. Moreover, after independence two fast-running train systems were established. Uzbekistan has launched first high-speed railway in Central Asia in September 2011 between Tashkent and Samarqand. The new high-speed electric train Talgo 250, called Afrosiyob, was manufactured by Patentes Talgo S.L. (Spain) and carried out its first trip from Tashkent to Samarkand on August 26, 2011.

There is also a large airplane plant that was built during the Soviet era – Tashkent Chkalov Aviation Manufacturing Plant or ТАПОиЧ in Russian. The plant originated during World War II, when production facilities were evacuated south and east to avoid capture by advancing Nazi forces. Until the late 1980s, the plant was one of the leading airplane production centers in the USSR, but with dissolution of the Soviet Union its manufacturing equipment became outdated, and most of the workers were laid off. Now it produces only a few planes a year, but with interest from Russian companies growing in it, there are rumours of production-enhancement plans.

Military

With close to 65,000 servicemen, Uzbekistan possesses the largest armed forces in Central Asia. The military structure is largely inherited from the Turkestan Military District of the Soviet Army, although it is going through a reform to be based mainly on motorized infantry with some light and special forcescitation needed. The Uzbek Armed Forces' equipment is not modern, and training, while improving, is neither uniform nor adequate for its new mission of territorial securitycitation needed.

The government has accepted the arms control obligations of the former Soviet Union, acceded to the Nuclear Non-Proliferation Treaty (as a non-nuclear state), and supported an active program by the U.S. Defense Threat Reduction Agency (DTRA) in western Uzbekistan (Nukus and Vozrozhdeniye Island). The Government of Uzbekistan spends about 3.7% of GDP on the military but has received a growing infusion of Foreign Military Financing (FMF) and other security assistance funds since 1998.

Following the September 11, 2001 terrorist attacks in the U.S., Uzbekistan approved the U.S. Central Command's request for access to an air base, the Karshi-Khanabad airfield, in southern Uzbekistan. However, Uzbekistan demanded that the U.S. withdraw from the airbases after the Andijan massacre and the U.S. reaction to this massacre. The last US troops left Uzbekistan in November 2005.

On 23 June 2006, Uzbekistan became a full participant in the Collective Security Treaty Organization (CSTO), but informed the CSTO to suspend its membership in June 2012.

Foreign relations

Uzbekistan joined the Commonwealth of Independent States in December 1991. However, it is opposed to reintegration and withdrew from the CIS collective security arrangement in 1999. Since that time, Uzbekistan has participated in the CIS peacekeeping force in Tajikistan and in UN-organized groups to help resolve the Tajikistan and Afghanistan conflicts, both of which it sees as posing threats to its own stability.

Previously close to Washington (which gave Uzbekistan half a billion dollars in aid in 2004, about a quarter of its military budget), the government of Uzbekistan has recently restricted American military use of the airbase at Karshi-Khanabad for air operations in neighboring Afghanistan. Uzbekistan was an active supporter of U.S. efforts against worldwide terrorism and joined the coalitions that have dealt with both Afghanistan and Iraq.

The relationship between Uzbekistan and the United States began to deteriorate after the so-called "colour revolutions" in Georgia and Ukraine (and to a lesser extent Kyrgyzstan). When the U.S. joined in a call for an independent international investigation of the bloody events at Andijan, the relationship further declined, and President Islam Karimov changed the political alignment of the country to bring it closer to Russia and China.

In late July 2005, the government of Uzbekistan ordered the United States to vacate an air base in Karshi-Kanabad (near Uzbekistan's border with Afghanistan) within 180 days. Karimov had offered use of the base to the U.S. shortly after 9/11. It is also believed by some Uzbeks that the protests in Andijan were brought about by the U.K. and U.S. influences in the area of Andijan. This is another reason for the hostility between Uzbekistan and the West.

Uzbekistan is a member of the United Nations (UN) (since March 2, 1992), the Euro-Atlantic Partnership Council (EAPC), Partnership for Peace (PfP), and theOrganisation for Security and Cooperation in Europe (OSCE). It belongs to the Organisation of Islamic Cooperation (OIC) and the Economic Cooperation Organisation (ECO) (comprising the five Central Asian countries, Azerbaijan, Turkey, Iran, Afghanistan, and Pakistan). In 1999, Uzbekistan joined the GUAM alliance (Georgia, Ukraine, Azerbaijan and Moldova), which was formed in 1997 (making it GUUAM), but pulled out of the organization in 2005.

Uzbekistan is also a member of the Shanghai Cooperation Organisation (SCO) and hosts the SCO’s Regional Anti-Terrorist Structure (RATS) in Tashkent. Uzbekistan joined the new Central Asian Cooperation Organisation (CACO) in 2002. The CACO consists of Uzbekistan, Tajikistan, Kazakhstan and Kyrgyzstan. It is a founding member of, and remains involved in, the Central Asian Union, formed with Kazakhstan and Kyrgyzstan, and joined in March 1998 by Tajikistan.

In September 2006, UNESCO presented Islam Karimov an award for Uzbekistan's preservation of its rich culture and traditions. Despite criticism, this seems to be a sign of improving relationships between Uzbekistan and the West.

The month of October 2006 also saw a decrease in the isolation of Uzbekistan from the West. The EU announced that it was planning to send a delegation to Uzbekistan to talk about human rights and liberties, after a long period of hostile relations between the two. Although it is equivocal about whether the official or unofficial version of the Andijan Massacre is true, the EU is evidently willing to ease its economic sanctions against Uzbekistan. Nevertheless, it is generally assumed among Uzbekistan's population that the government will stand firm in maintaining its close ties with the Russian Federation and in its theory that the 2004–2005 protests in Uzbekistan were promoted by the USA and UK.

Culture

Uzbekistan has a wide mix of ethnic groups and cultures, with the Uzbek being the majority group. In 1995 about 71% of Uzbekistan's population was Uzbek. The chief minority groups were Russians (8%), Tajiks (5–30%), Kazaks (4%), Tatars (2.5%) and Karakalpaks (2%). It is said, however, that the number of non-Uzbek people living in Uzbekistan is decreasing as Russians and other minority groups slowly leave and Uzbeks return from other parts of the former Soviet Union.

When Uzbekistan gained independence in 1991, there was concern that Muslim fundamentalism would spread across the region. The expectation was that a country long denied freedom of religious practice would undergo a very rapid increase in the expression of its dominant faith. As of 1994, over half of Uzbekistan's population was said to be Muslim, though in an official survey few of that number had any real knowledge of the religion or knew how to practice it. However, Islamic observance is increasing in the region.

Uzbekistan has a high literacy rate, with about 99.3% of adults above the age of 15 being able to read and write. However with only 76% of the under-15 population currently enrolled in education (and only 20% of the 3-6 year olds attending pre-school), this figure may drop in the future. Students attend school Monday through Saturday during the school year,with official education concluding at the end of the 9th grade. Post secondary school, students routinely attend trade or technical colleges. There are two international schools operating in Uzbekistan, both in Tashkent: The British School catering for elementary students only, and Tashkent International School, a K-12 international curriculum school.

Uzbekistan has encountered severe budget shortfalls in its education program. The education law of 1992 began the process of theoretical reform, but the physical base has deteriorated and curriculum revision has been slow. A large contributor to this decline is the low level of wages received by teachers and the lack of spending on infrastructure, buildings and resources on behalf of the government. Corruption within the education system is also rampant, with students from wealthier families routinely bribing teachers and school executives to achieve high grades without attending school, or undertaking official examinations.

Uzbekistan's universities create almost 600,000 graduates annually, though the general standard of university graduates, and the overall level of education within the tertiary system is low. Westminster University maintains a campus in Tashkent offering English language courses across several disciplines.

Music

Central Asian classical music is called Shashmaqam, which arose in Bukhara in the late 16th century when that city was a regional capital. Shashmaqam is closely related to Azerbaijani Mugam and Uyghur muqam. The name, which translates as six maqams refers to the structure of the music, which contains six sections in six different Musical modes, similar to classical Persian traditional music. Interludes of spoken Sufi poetry interrupt the music, typically beginning at a lower register and gradually ascending to a climax before calming back down to the beginning tone.

Endurance of listening and continual audiences that attend events, such as Bazms or Weddings, is what makes the Folk-pop style of music so popular. The classical music in Uzbekistan is very different than that of the pop music. Mostly men listen to Solo or Duo shows during a morning or evening meeting amongst men. Shash maqam, which is the main component of the classical genre of music. The large support of the musicians from high class families, which meant the Patronage was to be paid to the Shash maqam above all things. Poetry is where some of the music is drawn from. In some instances of the music, the 2 languages are even mixed in the same song. In the 1950s, the folk music became less popular, and the genre was barred from the radio stations. They did not completely dispel the music all together, although the name changed to Feudal music. Although banned, the folk musical groups continued to play their music in their own ways and spread it individually as well. Many say that it was the most liberated musical experience in their lives.citation needed