Last week the Vice-President for Europe and Central Asia at the World Bank Cyril Muller paid a two day long visit to Uzbekistan during which he held a meeting with the President of Uzbekistan Shavkat Mirziyoyev.
He also had a meeting with the students of the Westminster International University in Tashkent. While addressing the youth, he touched on the ongoing reforms in Uzbekistan, their necessity, challenges, and offered his vision on the future of transformation process. We present you excerpts from his speech.
On the transformation process
“For people, the economic and social transformation is making a tangible difference in their lives. Some of these changes have created immediate positive effects. For those living in cities, the markets have a wider choice of products and you can see and feel that people are becoming connected to the world.
For farmers, removal of export controls and large increases in the price paid for cotton and wheat have already started to increase farmer incomes.
For businesses, there are fewer rules and regulations – such as restrictive cash surrender rules and licensing requirements - that constrain their ability to thrive and grow. ”
On investments
“Similarly, the government may need to increase public investments during a transition. These investments play an important role during a transition. They help buffer some of the negative costs and impact of the reforms on the most vulnerable.”
“Public investment in infrastructure, when done effectively, can be a major enabler of private sector growth. Early investments in connective infrastructure and in improving services such as electricity and gas can accelerate the competitiveness of businesses by reducing costs and increasing efficiency.”
“Evidence from successful transitions also show the importance of early investments in education and human capital. These investments help equip youth to seize new opportunities and help support existing workers in retraining and reentering the job market. In other words, a deficit itself isn’t good or bad. What matters more is how the Government is investing its money during the transition.”
On the future of reforms
“So, for the millions of citizens of Uzbekistan whose potential has yet to be realized, these changes are historic, and there is no going back.”
“The message that I hear from the leadership of the country is loud and clear – that Uzbekistan’s doors are now permanently open to the world.”
“What is most wonderful about this intense optimism about the future of Uzbekistan is that it is contagious. Just look at what happened two weeks ago in London, when the Government issued Uzbekistan’s first sovereign bond.”
On the necessity to be optimistic
“As you can see, I am very optimistic about the opportunities that await you. Some of these opportunities may take time to materialize – we know from the experience of many other countries that economic transitions are not instantaneous and that more often than not there are bumps on the road.”
“At home, in the region, and abroad, everyone is watching and rooting for Uzbekistan to succeed, because the world will benefit from a former Silk Road giant reconnecting with its rich trading and entrepreneurial history.”
