Own way of the development of the Republic of Uzbekistan

With the proclamation of state independence in the Republic of Uzbekistan, a course was taken to form market relations. A proprietary model of transition to market relations was developed, based on the full consideration of the specific conditions and characteristics of the republic, traditions, customs, way of life, as well as taking into account the experience of foreign countries that have undergone market reform. This model is called the «Uzbekistan model», which is based on five principles:

• 1.    Complete deideologization of the economy. The economy should take precedence over politics;

• 2.    In a complex transition period, the main reformer should be the state;

• 3.    The whole process of renewal and progress must be based on a legal framework;

• 4.    The transition to market relations should be accompanied by the implementation of measures for the social protection of the population;

• 5.    The formation of market relations should be carried out in stages.

The first stage of the implementation of economic reforms (from 1991 to mid-1994) was mainly aimed at creating the legal foundations of the new economic system, the formation and strengthening of statehood, the elimination of stereotypes of old thinking. The main result of the initial stage of the ongoing radical reforms in the Republic of Uzbekistan is that we managed to develop and implement in practice our model of forming a strategy and course of reforms. As the President of our republic I.Karimov noted in his work «Uzbekistan on the Way of Deepening Economic Reforms», at the first stage, two defining tasks had to be solved simultaneously:

• -    to overcome the heavy consequences of the administrative-command system, to reverse the crisis, to stabilize the economy;

• -    to form the foundations of market relations taking into account the specific conditions and features of the republic.

With the introduction of the national currency in the Republic of Uzbekistan on July 1 1994, a qualitatively new stage began in the implementation of economic reforms. The second stage is designed to complete the formation of market structures, it provides for further improvement of tax, financial and monetary policy, liberalization of all foreign economic activities. It is aimed at strengthening the economic system and achieving economic independence of our republic.

Our own model of transition to market relations was based on the full consideration of the specific conditions and features of the republic, traditions, customs, way of life, eradicating the heavy heritage of one-sided, hypertrophic development of the economy in the past.

At the same time, the model absorbed all the best that has been accumulated by world experience, by those countries that have passed this difficult path of renovation and transformation of the country and society. They are known as the five principles of the President of the Republic of Uzbekistan, I.A. Karimov. They were recognized not only in our country, but also in other states.

These five principles, and were used as the basis for their own path of renewal, development and progress, forming the supporting structures of the concept of the transition period. The implementation of these principles has ensured social and political stability in the republic, and most importantly a consistent movement towards the introduction of market relations.

The socio-oriented market economy was chosen as the economic basis of the state sovereignty of Uzbekistan, which most closely corresponded to the stage of social development and the specific conditions of the republic.

The market economy of this type was designed to provide:

• - constitutional, legislative and legal guarantees for the development of entrepreneurial activities of legal entities and individuals, stimulation of the free market;

• -    legal equality of all types of property and forms of management, maximum freedom of activity of economic entities;

• -    the full responsibility of economic entities for the results of their economic activities;

• -    the priority of universal values and the most complete consideration in the economic relations of national traditions, customs, the way of life of the people;

• -    Worthy conditions for human life and development, reliable social guarantees, steady increase of living standards of the population;

• -    Uzbekistan's acquisition of a worthy place in the world community, active participation in the international division of labor on equal and mutually beneficial terms.

As a result of ongoing reforms in Uzbekistan, most of its own and borrowed funds are, first of all, for investment, the importation of new technologies and equipment into the republic.

The laws adopted in the republic create an integral system of tax incentives and incentives, guarantees against political and commercial risks, favorable conditions for the active participation of foreign firms and companies in the markets of Uzbekistan.

First, the priority of the economy over politics and the economy should be de-ideologized;

Secondly, the main reformer is the state;

Thirdly, the rule of law;

Fourth, strong social policy;

Fifth, the transition to the market should be phased.

These five principles, and were used as the basis for their own path of renewal, development and progress, forming the supporting structures of the concept of the transition period. The implementation of these principles has ensured social and political stability in the republic, and most importantly a consistent movement towards the introduction of market relations.

The socio-oriented market economy was chosen as the economic basis of the state sovereignty of Uzbekistan, which most closely corresponded to the stage of social development and the specific conditions of the republic.

As a result of ongoing reforms in Uzbekistan, most of its own and borrowed funds are, first of all, for investment, the importation of new technologies and equipment into the republic.

The laws adopted in the republic create an integral system of tax incentives and incentives, guarantees against political and commercial risks, favorable conditions for the active participation of foreign firms and companies in the markets of Uzbekistan.

During the transformation of the economy and the transition to market relations, special attention was paid to social policy. During the years of independence, a new mechanism for social protection of the population was created in Uzbekistan, taking into account the real economic situation, available resources and opportunities. At each stage of the reform, a corresponding social policy was carried out.

In the initial period of transition to the market, Uzbekistan was following the path of pre-emptive social protection of the entire population. The subsidies and benefits extended equally to the entire population, without taking into account the degree of need for them. This played an important role in preventing a sharp decline in people's living standards, was a factor in maintaining calm and stability in the republic, but at the same time, these poor families benefited from these subsidies and benefits.

Therefore, with the deepening of reforms, the development of market relations in social policy, significant adjustments have been made - emphasis is placed on providing assistance to truly needy families. In this connection, the mechanism of targeted social protection of the population was developed and implemented. The main strategic goal of Uzbekistan is the construction of an open democratic state with a market economy, the formation of the foundations of civil society. In connection with this strategic goal, liberalization and deepening of economic reforms in all spheres and sectors of the economy were identified as one of the reform priorities in the first years of the XX century.

The main task of liberalization in the economy is, above all, reducing the control and regulatory functions of the state, limiting its interference in the economic activities of enterprises, in the activities of private business. World experience shows that the presence of a predominant class of real owners serves as a guarantee of stability and well-being in society.

Source used:

• 1.    I. Karimov. Uzbekistan: its path of renewal and progress // vol. 1. - P. 3681.

• 2.    Karimov I.A. Uzbekistan - own model of transition to market relations // vol. 1. - P. 263-343.

• 3.    Karimov I.A. Uzbekistan on the path of deepening economic reforms // vol. 3. - P. 164-348.