Special Issue On Economy & Sustainable Development in Uzbekistan

International Journal of Economics, Commerce and Management
United Kingdom ISSN 2348 0386

http://ijecm.co.uk/
Special issue on Economy &

Sustainable Development
Uzbekistan
REGIONAL FEATURES OF STRATEGIC DEVELOPMENT OF

TOURISM IN THE REPUBLIC OF UZBEKISTAN
Khasan Turdibekov
Statistics and Management Faculty,
Samarkand Institute of Economics and Service, Samarkand, Uzbekistan
khasant2014@gmail.com
Abstract
The existent article provides current status of competitive analyses of hospitality and tourism sector
deployment on the world market and highlights the problems of tourism infrastructure in Uzbekistan. It was
determined that the factors of the stable tourism development are connected with the national economy policy
priorities, state administration structure, the emerging of environmental problems and man-triggered risks. In
addition, the location of Silk Road Tourism destination with marvellous resources and untapped traditional
perspectives are considered as a vital feature of tourism enhancement in the Central Asian region. On this
way, investigation covers SWOT studies of the destination including suitable suggestions from
comprehensive argument of scrutinizes. It also determines that despite the advantages of the stable tourism
enlargement principles, they are quite difficult to be achieved due to the major social, economic and political
conditions in the region. Uzbekistan has an extraordinary prospective of tourism development which is,
however, used only in its tiny partition. The lack of mechanisms of state support for the travel industry is one
of the major problems that hold the development of the travel business in the country. Consequently, the
formation and development of tourism in Uzbekistan as one of the furthermost dominant social and economic
policies entails the specific regulations of economic relations and measures of investigation.
Keywords: Tourism, Strategic analyses, Uzbekistan, Central Asian Tourism, Silk Road
Licensed under Creative Common Page 1

Special issue
INTRODUCTION
The current stage of development of society is characterized by the dominant position of services. In modern
economic literature, this stage of development is called "post-industrial society" (Bell D., 1973). An important
feature of the postindustrial society is strengthening of the role and importance of the human factor.
Moreover, the world economy is changing the structure of the labor force: decreases the physical and mental
growing share of highly skilled and creative labor. Increases the costs of training the workforce: the cost of
training and education, training and retraining of workers. There is an outflow of labor force from the industrial
sector to the service sector. According to a leading expert on post-industrial society, in the "knowledge
economy" in the United States employs approximately 70% of the workforce (Carnoy M., 1993). If the
development of the country entered a new stage of development, most developing countries are moving in
this stage of development. In these circumstances, it is to develop an operative strategy for the modern
development of the economy with the focus on further service industries. This will help reduce the
unemployment rate, the growth of welfare and quality of life. The study aims to explore the features of the
development strategy in the service industries (
- - I 2014
, 2015.).
Strategic management as a science management in the long run was reflected in all economic
sectors. However, the study of strategic management in the tourism sector in developing countries, taking into
account the transition to a postindustrial society is not fully examined and considered to be an urgent task.
The modern tourism industry is one of the fastest growing areas in international trade in services. According
to UNWTO, hospitality and tourisms contribution to world GDP grew for the fourth consecutive year in 2013,
helped especially by strong demand from international travelers. Visitor exports, the measure of money spent
by these international tourists, rose by 3.9% at a global level year on year, to US$1.3 trillion, and by over 10%
within South East Asia. It is expected that the growth in Travel & Tourism demand from emerging markets
continues with pace, as large rising middle classes, especially from Asia and Latin America, are willing and
more able than ever to travel both within and beyond their borders. To meet the rapidly changing needs of
today, travelers made possible by strengthening integration processes inside of tourism and with the
environment ( |
, 2014.).
In 2013, sectors total contribution to the global economy rose to 9.5% of global GDP (US $7 trillion),
not only outpacing the wider economy, but also growing faster than other significant sectors such as financial
and business services, transport and manufacturing. Totally, nearly 266 million jobs were supported by
hospitality sector in 2013 - 1 in 11 of all jobs in the world. The sustained demand for Travel & Tourism,
together with its aptitude to generate high planes of employment continues to prove the standing and worth of
the sector as a tool for financial development and job creation (Central Asia: Problems and Perspectives of
International Tourism:: Slavomr Hork, 2014).
The sector for traveling in 2014 is also very positive, with Total Travel & Tourism GDP growth
forecast to reach 4.3%. Much of this growth is being driven by higher consumer spending as the recovery

International Journal of Economics, Commerce and Management, United Kingdom
from recession gathers pace and is becoming firmly established. Tourists are expected to devote more per
trip and stay longer on their holidays in 2014, while long haul travel, especially among the European markets,
is also expected to gain a greater share of international tourism demand. Profitability for travel companies
should also start to edge up, bringing opportunities for further job construction in the process (Fifth
International Meeting on the Silk Road., 2014).
However, with the development of tourism arise, develop and actualize the problem of sustainable
tourism development, the solution of which techniques have developed in the past, it is practically impossible,
which leads to a decrease in the competitiveness of this lucrative industry, the inability to best meet the
increasing demand for high quality tourism services. All of this points to the need for a systematic approach to
strategic planning of tourism(Handbook on E-marketing for Tourism Destinations - World Tourism
Organization, 2014).
However, with the development of tourism arise, develop and actualize the problem of sustainable
tourism development, the solution of which techniques have developed in the past, it is practically impossible,
which leads to a decrease in the competitiveness of this lucrative industry, the inability to best meet the
increasing demand for high quality tourism services.
The purpose of the study was:

To explore the features of strategic management and tourism development with system
of regional management adjutancy;
To describe the problems of reproduction of the tourist infrastructure and the direction of their solution
in the strategic planning of tourism as part of the socio-economic system of the region;
To examine methodological foundations of resource support the development of tourism, hotel
management;
To establish the basic features and development tools strategy of development of tourism, hotel
management;
To shape an effective strategy for regional tourism development on the example of the city of
Samarkand.
The paper examined the features and the methodology of the strategic analysis of the external environment
on the example of the tourism industry. In particular, based on a literature review of the strategic analysis of
the peculiarities of the tourism industry and recommendations on strategy. The ways of development of
tourism in some regions of the Republic of Uzbekistan for example, the city of Samarkand.
REVIEW OF THE LITERATURE

The essence of strategic development in a postindustrial society
Called post-industrial countries, usually those which in the service sector accounts for considerably more than
half of GDP (Pilzer PZ, 1990). The term "post-industrialism" was introduced into scientific circulation at the
beginning of the XX century scientist A. Coomaraswamy, who specialized in industrial development to the

Special issue
Asian countries. In the modern sense of the term was first used in the late 1950s, and widely accepted
concept of post-industrial society has received in the result of the work of Professor at Harvard
University Daniel Bell (1973), in particular after the release in 1973 of his book "The coming post-industrial
society" . Similarly, Alvin Toffler identifies three "waves" in the development of society and uses the term
"information society (Alvin Toffler, 1980).
A characteristic feature of post-industrial society is that the cost of corporations in the post-industrial
society due mainly intangible assets - know-how, skilled workers, efficient business structures and so on. In
addition, has been decreasing some lower industries as a result of the mass production that moves to other
regions. The role of the small business and existence of it makes and creates more and more small-scaled
products with a variety of modifications and variations of services to meet the needs of different groups of
consumers. As a result, small businesses are competitive, flexible, not only in the local markets, but also on a
global scale. An important feature of post-industrial society - strengthening the role and importance of the
human factor.
Renowned management guru Peter F. Drucker also includes the further development of the service
sector (Peter F. Drucker, 1999). In the first decade of the XXI century will be observed two phenomena - the
change in the trend of the distribution of disposable income and changes in this trend. In the XX century there
was a steady growth in four sectors: government spending, health care, education and leisure.
In the latter areas, there is a rapid increase in productivity and production volumes, it is comparable to
the other three together sectors. Three remaining growth sectors - health, education, leisure - are the largest
consumers of goods and services, in other words, sectors that should be pushed in Central Asian states as
well. All of these four sectors are not subject to the rules of "free market" and economic laws of supply and
demand, not highly price sensitive, do not fit the standard economic model, and their behavior does not
correspond to economic theory. And yet, they make up more than half of the developed economies, even the
most "capitalist". Therefore, the strategy development should be first and foremost in order to take into
account changing trends in these four sectors, because all four sectors will almost certainly undergo
significant changes in the next few decades(IUTF-2014, 2014).
The concept of strategy in contemporary literature

Strategic management as a new management philosophy diffused widely in the economic
literature especially since the 1970s. Up to the present time in this area were a lot of research. Initially this
theoretical knowledge was applied in military practice, the term is widely used in the modern economy. In the
works of the authors (Steiner G., 1979); Chandler AD, 1962; Mintzberg H., 1987) mainly studied
characteristics of strategic management in enterprises, especially commercial ones, studied individual
enterprises and in particular the impact of their activities on certain industrial sectors.
However, despite all the benefits of information on the nature of Strategic Management, obtained set
of analysis and management has not found a proper listening in the service sector. Review of the literature
some authors showed that fundamental research in the development of strategies in the fields of services,
particularly in the tourism sector is incompletely understood. In general, in many literatures defines strategy

as a tool for long-term management of commercial organizations, and the essence of this approach in terms
of the service industries in general, remains to be defined. In the works of the authors (Porter, M.,
1996; Heene A. and Sanchez R., 1999; Bergman, E., and E. Feser, 1999) describes the features of the
strategy of the country or the industry in general. We give a general direction, but the essence of the strategy
applied service industries are not reflected(UNWTO and Government of Uzbekistan to host 5th International
Meeting on the Silk Road | Tourism-Insider, 2015).
On this basis, ADChandler (1962) gives the following definition in which strategy is the determination
of the basic long-term goals and objectives of the organization, adopting a course of action and the allocation
of resources needed to meet these goals.
Moreover, Henry Mintzberg (1987) who have made investigations on this direction put forward the
idea that in many studies, the term "strategy" is practiced ambiguous and has several meanings. According to
him, the strategy includes the following definitions: plan; ploy; pattern of behavior; position in respect to
others; perspective. Next Mintzberg (1987) argues that there is a strategy for a long time, as the intention of
facing and adapt changing environment. Thus, it can be concluded that it determines the strategy as a certain
position to be achieved by an elaborate plan, a possible outcome and strategies need reflected in the
sequence of decisions and actions in time.
Strategy as a basis for competition determined by Professor Michael Porter (1996) of Harvard
Business School. He argues that the essence of competitive strategy is in its distinctive qualities. This means
consciously selecting set values, achieved a unique combination of value. In general, Porter argues that
strategy as competition position created by the added value the combination of a set of values that
distinguishes it from competitors. At the same time it highlights the strategy of the industry and individual
enterprises (Policy and Practice for Global Tourism - World Tourism Organization, 2014.).
In summary can determine strategies to formulate the concept of relative industries. It is a common
industry strategy for the industry long-term comprehensive program that enables organizations to effectively
adapt to industry changes in the environment.
According to business atmosphere there are lots of beliefs according to purpose and diffusion of them
on various sub-sectors. A number of scientists developed general typology of this term and identified key
areas and competitive strategies which are common to all businesses. Furthermore, Porter (1980) suggested
an approach of explanation how organizations gain a competitive edge and outdo their contenders.
In addition, each strategy reflects the degree of adaptation of the enterprise environment. However,
according to the typologies it is difficult to analyze the industry as a whole. This characteristic is more suitable
to select the strategies of individual companies. So, Garrigos - Simon (2005) used Miles & Snow typology in
Spanish Hospitality Industry and it is identified and compared while analyzing the differences between
the performance indicators. Also, Yeung & Lau (2005) found that hotels in Hong Kong increased their
financial performance by diversifying its portfolio of services in order to apply this strategy typology. The
study of Turkish hotels (Umut Avci, Melih Madanoglu, Fevzi Okumus, 2011) using the strategy of the
methodology Miles & Snow gave an opportunity to improve the financial performance a number of hotels
(Samarkand Crossroad of Cultures - UNESCO World Heritage Centre, 2014.).

Special issue
Considered above definition implies a positioning strategy in the competition and did not take into account the
cooperation and cooperation within the industry. According to the procedures difficult to analyze the overall
situation in the industry.
Thus, strategic management based on resources and to pay special attention to core competencies
to achieve competitive advantage, using different methods of analysis of the competitive
environment. Disadvantages of the traditional models of analysis lies in the fact that they do not consider the
internal and external tests in cooperation (Heene and Sanchez, 1997) originally suggested that companies
are competitive in nature and are not aimed at cooperation, paying more attention to markets of goods and
services than those markets in which the company acquires its resources do not recognize the fact that the
company as a result of their activities by enhancing their competencies and new can change their own
competitive environment, also do not consider that the enhancement of existing and development of new
competences may allow the company to become competitive for outside their existing markets (
| ,
2014.).
Similarly, the concept of competition strategies can be linked to Strategic groups (Bergman, E. and E.
Feser, 1999). The concept of strategic groups has been proposed as the golden mean between sectoral
level analysis borrowed from theory industrial organization and firm level of analysis, the inherent strategic
management (Capps et al., 2002; Phelan et al., 2002; Porter, 1980). While each business performs
qualitatively a unique strategy, focusing on similar symptoms, it allows scientists reveal basic approaches that
may be more appropriate in some industries or the conditions of competition. Strategic group consists of
enterprises using a specific general strategy.
Features Industry Strategy

To study the strategies inherent in the industry need to understand the essence of the term. As a rule, to give
a precise definition of the term "industry" is difficult. Porter (1980) defined the industry as a group of
companies that produce products that replace each other, but that definition may not be sufficient, because
some businesses and industries produce a range of products for different markets. In addition, the enterprise
may be grouped according to similarities in their production processes. The objective industry analysis is to
determine the nature of competition in the industry and the competitive opportunities of the company. Industry
dynamics, in turn, is subject to change under the influence of the Macro(EHL/UNWTO Silk Road Strategy
Initiative | UNWTO Silk Road Programme, 2014.).
Cluster studies have improved the understanding of innovation systems at a reduced scale level,
including systemic imperfections and policy options. Cluster studies have been the corner stone of industrial
policy making in a lot of countries. Cluster studies provide not only an analytic tool to analyze systems of
innovation, but can be used also as a working method for policy making in this area and as an economic
development tool for strategic business development, in industrialized countries as well as in developing
countries ( Ceglie, G. and Dini M., 1999).

- Cluster analysis provides options for recasting the role of the private sector, government, trade associations
and educational, research institutions and brings together business development opportunities of firms of all
sizes and across traditional industry lines.
- Cluster analysis provides a starting point for creating a forum for constructive business-government
dialogue. Not only common problems have been identified, but basically cluster analyses identify common
development opportunities and highlights attractive public and private investment opportunities.
Concluding we can say that the cluster approach focuses on communication and the relationship between the
participants in the value chain in the production of products and services and the creation of innovation.
Clusters are most often between the sectoral integration (vertical and horizontal) and comprise a diverse and
additional companies that specialize around specific suppliers or knowledge base in the value chain(Silk
Road on the map | SILK ROAD, 2015).
The basic tools of strategic analysis

Considered above situation forced us to take a qualitatively different approach to the economic development
of the sector and find new and much more effective strategic management of technology. Based on the
concept of development of the society D. Bell and statements P.Drukera service sector is a priority for the
economy, which is specifically different from the production sector. Based on the characteristics of the tourism
industry, as one of the sectors of services, given the degree of development of the industry is necessary to
define more appropriate methods of analysis.
Bearing in mind these shortcomings, we offer the following tools used to develop the strategy of the
tourism industry in Uzbekistan:
An approach based on strategic scenarios. On the basis of this approach, developed a number of
scenarios, evaluating their results can operate effectively in an uncertain future. The method
consists in the study of the environment organization for the presence of predetermined elements
and key uncertainties and combining them for the formulation of alternative scenarios for the
future (Kees van der Heijden, 2005).
The use of the cluster approach. On this basis, this approach tourism industry will investigate the
relationship with the enterprises of tourist infrastructure. In a globalized world highly competitive
countries cannot provide the individual (even if large and technologically advanced), firms and
clusters of business entities, linked by close economic relationship. A cluster is a form of
cooperation between the companies and organizations that are interconnected by vertical (buyer-
seller) and horizontal (technology, services, knowledge) bonds, concentrated in certain areas. As
part of the cluster to the fore not just the performance of individual companies and organizations,
and their "collective efficacy".
The use of elements of SWOT analysis. On the basis of the strengths, weaknesses, opportunities
and threats will assess the state of tourism in the city of Samarkand under analysis and its
objects.

Special issue
Thus, SWOT-analysis can be applied to objects of all sizes, and not only in areas where there is a focus on
increasing profits, but also in areas where the goals are as following:
Investigations are covered 3 main stages:
Identification of the list of factors that characterize the internal and external environment of the
facility;
Evaluation and ranking of the factors identified;
The formulation of strategies for the development of the object based on the intersections of
pairs of factors.
Hypotheses
As it mentioned above, the strategy of enterprises, industries, individual regions and states are differ. Even
within an organization, there are corporate, business strategy, functional and operational strategy. Due to
these differences, in this study, the task to explore the tourism industry based on the cluster approach.
It internationally shows, the cluster name is most adequately meet the current criteria for tourism
development in the region through effective implementation of the existing potential on them. At the same
time, because the basis of this type of clusters based on various service industries, it is this feature allows you
to flexibly respond to changes in tourism demand by making adjustments to the structure and proportions of
the complex services provided by the cluster. Thus, the determining factor will be the tourism and recreation
specialization, and other components of the composition can be changed during operation.
At the same time based on a strategic analysis of the tourism cluster in Samarkand and make
recommendations for the development of tourism in the region, the authors postulate
the following hypotheses:
H1: There is a correlation in the study of tourism on the basis of cluster approach typology, on the levels of
the cluster. The work involves the separation of cluster members on three levels.
H2: Developing a common strategy for the tourism cluster of Samarkand is very important especially in the
initial development of tourism in the region.
H3: In the strategic analysis of the tourism cluster is the most effective method of analysis SWOT. In the
process of analysis to be used, and other methods of strategic analysis as a method of PEST analysis and
the strategic map, Delphi technique.
H4: There is a difference of the strategies at the state level, industry, region and company. However, these
strategies are interrelated. Thus, the strategy of the tourism cluster in the region directly affects the corporate
strategy of the enterprises included in the tourism cluster.
H5: When choosing a strategy based on the comparison of variants of scenario will be chosen the optimal
strategy. The development of tourism in the city of Samarkand on the basis of this strategy will result in higher
socio-economic level of the region.
H6: The implementation of the overall strategy of the tourism cluster have a positive impact on improving the
quality of services cluster members.

H7: The strategy adopted on the basis of cluster approach will reduce the period of innovation in the tourism
industry of the city of Samarkand.
H8: Strategic management based on the cluster approach has not only economic benefits, but implies a
positive social impact.
METHODOLOGY
Sequence and methods of analysis.
Investigation of this issues has analyzed various studies on the topic and found out consequently different
factors by them:
Formulation of strategic objectives and strategic analysis of tourism

development in the city of Samarkand. Identify the strategic goals of
Step 1 development of tourism in the city of Samarkand. System analysis of
the current state and trends of tourism development; identifying,
structuring and determination to solve the problems in order to
achieve objectives.
Preparation of the consolidated strategic plan of action to implement

the strategic goals and objectives of tourism development in the
Step 2 region. Justification resource maintenance plans for strategic tourism
development. Developing a mechanism for implementing the strategy
of development of tourism.
Monitoring of the implementation of the

strategy. Monitoring and evaluation of tourism
development strategy. Adjustment measures
Step 3 and required resources and mechanisms of
corrective actions. The results (interim and
final) implementation strategies for their
evaluation.
When studying the possibilities of improving strategic management processes tourist complex it is advisable
to use the experience of elaboration of theoretical and methodological recommendations on Building Cluster
under organizational structures. Diffusion of Clusters are being the most effective form of achieving a high
level of competitiveness of the territory, moreover it is considered as organizational form of interaction
between different actors - industrial companies, research and innovation centers, government bodies and
public organizations. All participants in the cluster receive a competitive advantage under the influence
cumulative effect of economies of scale, scope and synergies(David Airey & Myra Shackley, 1997).
Thus, it may be determined the optimal structure build tourism clusters that meet the current level of
development of cooperative relationships between tourist enterprises and includes such structural elements:
Generator cluster - forms an integrated tourist product, determines the strategy of its promotion in the
market as a whole is responsible for the development strategy of the whole cluster structure;
Functional structural units form, performing the function of creating a basic tourist product (transport
carriers, accommodation, restaurants (cafes, bars), Bureau of excursions, spa organizations, etc.;

Special issue
Functional structural units of promotion, responsible for research, sales and marketing of the tourist
product (travel agencies, tour operators who sell the generated product, marketing and advertising
agencies, information and analytical services, etc.);
Functional structural units provide operating support functions necessary additional service for tourists
(cinemas, sports and fitness centers, shopping centers, clubs, health centers, etc.);
Functional structural units of the infrastructure to ensure the dynamic development and integration of
tourism cluster in the regional economy (specialized recruitment agencies, specialized institutions of
higher education, financial institutions, insurance companies, energy, housing and communal services,
etc.).
At the same time as a strategic cluster of the generator it is possible to consider only the largest institutional
structure commensurate with the scale of the entire regional tourist complex, for instance, organs of state and
municipal management in the field of tourism, and at the level of municipalities as a whole, or the combined
structure of economic entities as well as at the municipal level, and among tourism enterprises (unions,
associations, etc.).
Development and testing of the research instrument

The industry of tourism is considered as a fastest growing segment of businesses in the world economy.
Moreover, it is predicted that it will become one the world's leading tourism export industry of the 21st century.
Tourism as one of the largest and fastest growing economic sectors in the world, and has a considerable role
to play in delivering sustainable development in many countries. At the same time it must be well managed so
that it benefits local communities and the natural and cultural environments upon which it depends. It is
believed that tourism, covering employment, decent work and human capital, reflects the fact that tourism is
fundamentally a people-based activity. Careful planning of human resources, involving consultation with
private enterprises and employee representatives, is needed to ensure that tourism can fulfil its employment
creation potential and has a sufficient supply of suitably skilled labour to meet future growth in Central Asian
developing destinations (Samia , 2011)
An ever-increasing number of destinations worldwide have opened up to, and invested in tourism,
turning it into a key driver of socio-economic progress through the conception of jobs and enterprises, export
revenues, and infrastructure expansion.
Despite occasional shocks, tourism has shown virtually uninterrupted growth. International tourist
arrivals have increased from 25 million globally in 1950, to 278 million in 1980, 527 million in 1995, and 1133
million in 2014. Equally, international tourism receipts earned by destinations worldwide have surged from
US$ 2 billion in 1950 to US$ 104 billion in 1980, US$ 415 billion in 1995 and US$ 1245 billion in 2014.
Intercontinental tourist arrivals worldwide are expected to increase by 3.3% a year between 2010 and
2030 to reach 1.8 billion by 2030, according to UNWTOs long term forecast Tourism Towards 2030(National
Company UzbekTourism, 2014).
Coinciding with the independence of five central Asian republics from the former Soviet Union, there
has been a revival of interest in the Silk Road for cultural exchange, trade and tourism. After having

received its independence, Central Asian States (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and
Uzbekistan) have been established the policy and model of tourism development.(Coulibaly et al., 2012).
During these years of independence, mentioned governments and tourism committees have done
great job at a national and local aspect. It is noticeable that, organizational and structural changes
implemented, a new system of state regulation and control was established, preconditions for infrastructure
development were created and mechanism of preservation and restoration of cultural and historical
attractions were ensured. As result of infrastructural improvement of tourism facilities and industry
modernization, made up new job places and established supply chains. Therefore, working with informal
traders and enterprise formation and, more widely, the application and use of tourism charges and collateral
benefit from tourism investment that make easy to launch small business and entrepreneurship facilities in
tourism area (Allison, 2004). This emphasises the need to ensure that local communities are consulted,
engaged and empowered to engage with tourism development and operations that may affect their livelihood
and society in whole.
Based on collaboration team of international experts, has deliberated procedures in which meted out
Strategic Recommendations for Enhancing Tourism with a Special Focus on Central Asia that compiled by
UNTWO as a major measures for Central Asian tourism businesses (2012).
According analyses, yet a number of barriers are hindering tourism development in the Silk Road
countries. Visa and border crossing formalities, transport infrastructure, corporate governance and quality
assurance are just some of the issues that require the attention of stakeholders to ensure positive growth
across the regions (Raballand, Kunth, & Auty, 2005).
Specifically article is designed to:

Outline the different components of the Central Asian countries while demonstrating their
economic features
Identify strategic opportunities for economic growth through tourism sector
Set priority suggestions for developing tourism businesses while investigating challenges and
objectives of the sector
Hence, the tackled issues of tourism area could be mentioned the deployment of small business enterprises
and entrepreneurial founded deployment that may challenge highlighted obstacles.
In this context, the general purpose of this paper is to undertake a review of the small business and
entrepreneurship status on Central Asian tourist destination, with the specific purposes of describing and
comparing the existing structural policy of the sector, and identifying major results and conclusions, as an
approach to better engagement the existing enterprises and suppliers on the development of tourism in listed
counties (The State Committee of the Republic of Uzbekistan on Statistics, 2015.).
In Uzbekistan, tourism is today one of the priorities and future directions of socio-economic
development. There is room for improvement: according to the World Tourism Organization, Uzbekistan could
take a year at least 6 million domestic and foreign tourists.

Special issue
High tourist potential of Samarkand city, and this - the rich historical and cultural heritage, natural and
advantageous geographical location and a unique resource as folk arts and crafts, rightly makes it one of the
most promising regions for tourism development.
Government of the region for several years implementing a set of measures to promote a competitive
tourist industry in the region. Among the measures implemented is the most significant credit and financial
support for projects of tourism.
The concept of development of the tourist cluster involves integrated development of the tourism
industry in the region, that is, and the development of existing enterprises and construction of new tourist
facilities, the introduction of innovative tourism products, development of new tourism destinations, and more.
At the same time one of the most important areas of the cluster, we believe the work with educational
institutions in the region and, consequently, training for the tourism industry, because in itself, even the richest
tourist resources are not able to create comfortable conditions for receiving tourists and providing comfort -
this is primarily a matter of training.
Classification of regulatory tools generator cluster approach in the spheres of their application must
include:
In the legal sphere: improvement of the regulatory framework; development of a methodology for
licensing, standardization, certification in the field of tourism; customs regulations; establishing the rules
of entry, exit and stay on the territory, taking into account the interests of tourism development;
In the economic sphere: stimulating the development of the material base of tourism by attracting extra-
budgetary sources, including foreign investment for renovation and new construction of tourist
facilities; tax regulations; targeted budget funding for the development of tourism; creation of favorable
conditions for investment in tourism.
In the social sphere: ensuring the development of social tourism; ordering of property relations in the
tourism sector, taking into account characteristics of the nature of tourist activities.
In science and education: the development of the tourism industry of science, implementation of a set of
basic scientific research in the field of tourism at the federal and regional level, the creation of
information-analytical database; software professionals for tourist activities.
In the sphere of tourism: the formation of the image of Uzbekistan on the global market
for tourism; advancement in promotion of national tourist product both on local and global markets;
Promoting participation in international tourist programs;
Creation of conditions to multipurpose use of the tourist infrastructure;
Establishment of collaborative investment programs with specific activities which are directed on
private sector.
In the area of information technology: the creation of a single information space; advertising and
information support.
Thus, for the integrated development of the tourism industry needed software and targeted measures to
stimulate the development and management of tourism, including: planning of the development of the tourism

industry, human resources, maintenance of scientific researches of tourism, support for tourism businesses to
ensure protection of the environment, to create a favorable image of the country and the region, control and
supervision of the tourist activity, the creation of a single information space and interacting network of
information tourist centers on the basis of the generator of the cluster approach.
After have been mentioned in UNESCO World Heritage List , Samarkand Crossroads of Cultures
city with its more than 400 unique monuments appear as one of the crucial tourist destination among Silk
Road corridor ones. As history of the Samarkand, located in a large oasis in the valley of the Zerafshan River,
in the north-eastern region of Uzbekistan, is considered the crossroads of world cultures with a history of over
two and a half millennia. Evidence of settlements in the region goes back to more than three thousand and
five hundred years ago, with Samarkand having its most significant development in the Temurid (Amir Temur)
period, from the 14th to the 15th centuries, when it was capital of the powerful Temurid realm. Samarkand
was one of the ancient capital cities which demonstrate lifestyle, culture, tradition, horizon of the nation, as
well as history and distinct sightseeing monument made it more interesting one for travelers who would like to
get real evidence of the past. Moreover it has linked with other famous cities of the ancient East (Samarkand
Crossroad of Cultures - UNESCO World Heritage Centre, 2012).
The historical part of Samarkand consists of three main sections. In the north-east there is the site of
the ancient city of Afrosiab, founded in the 7th century before Christmas and destroyed by great conqueror
Genghis Khan in the 13th century, which is preserved as an archaeological reserve. Archaeological
excavations have revealed the ancient citadel and fortifications, the palace of the ruler (built in the 7th century
displays important wall paintings), and residential and craft quarters. There are also remains of a large
ancient mosque built from the 8th to 12th centuries(UNWTO Silk Road Programme, 2013).
To the south, there are architectural ensembles and the medieval city of the Temurid epoch of the
XIV-XV centuries, which played a seminal role in the development of town planning, architecture, and arts in
the region. The old town still contains substantial areas of historic fabric with typical narrow lanes, articulated
into districts with social centers, mosques, madrasahs, and residential housing. The traditional Uzbek houses
have one or two floors and the spaces are grouped around central courtyards with gardens; built in mud brick,
the houses have painted wooden ceilings and wall decorations.
After the breakdown of the Soviet Union, service sector has developed exponentially in the short
period of time. The policy and infrastructure of tourism, hotels, restaurants, and entertainment places have
established in good way. It has made city and its society to be engaged with tourism activities, to do more
businesses in the hospitality sector. Hence, the rate of lifestyle of people, average income of private sector,
and privileges for entrepreneurs have modified and diversified completely. The further advancement of this
sector in the city could be explored through SWOT analyses by investigating its strengths, weaknesses,
opportunities, and treats.
Given SWOT analyses empirically highlight objective merits and opportunities of tourism
enhancement in Uzbekistan and way of its deployment as well as reveal resemblance of shortcomings and
threats which obstacle tourist potential in state. The main obviously strength of tourist destinations in

Special issue
Uzbekistan is a huge amount of historical monuments, which are considered as unique and marvelous and
can be seen only in some cities of the world.
In addition to this feature it also has well organized tourist industry which provides various kinds of
tourism and many advantages, such as low cost packages or exotic tourism for visitors who travelled in this
country. Nevertheless, tourism sphere has also faced with some actual problems, which serve as a barrier for
further advancement. The prior issue which should be tackled is poor quality of marketing and inadequate
brand name of destination and tour products. Besides, another major problem which creates threat among
travelers is visa obstacles and procedure of tourism as well as shortcomings of the sub-sectors which are
recommended to refine.
The analyses of SWOT could determine the main drawbacks of the tourism industry and identify
some solutions for the responsibility officials. Moreover, it could impulse some further researches on the
sector of tourism in this destination with some proposals. Underlined facts and required features of studies
may be addressed to find out more positive result in upcoming years. Threats and weaknesses of the issue
could be tackled and through investigated shortcomings industry could lead to affirmative development in this
economic field.
SWOT analysis of the tourism industry of the city of Samarkand
political stability cost of tourist services (hotel accommodation,

the stability of the national currency food, transportation and other);
the rich cultural and natural resources insufficiently developed tourist infrastructure,
a small number of tourist class hotels;
stability of incomes per capita
high costs and underdeveloped network of
constant demand for tourist services
air and railway transport within the country
development of information technology in the
imperfect visa policy
tourism sector
inflated prices for foreign tourists for the
promotion of the training on qualified specialists
services of state museums
Strength Weakness
Opportunity Threats
preservation of the negative
stereotypes of the image of Uzbekistan,
supported by some foreign media outlets;
insufficiently developed tourist
infrastructure, a small number of tourist
presence of a new facilities and services class hotels;
improvement of the legislative base of high costs and underdeveloped network
tourism of air and railway transport within the
introduction of new services; country
conquest of markets poor quality of roads for tourism
development using vehicles

PREDICTED RESULTS AND DISCUSSIONS

Socio economic analyses of the deployment, Case of Samarkand region.
After the independence, tourism sector in Uzbekistan has developed significantly. On this basis, Samarkand
region has been contributed noticeably by the government and officials. Moreover, it has specific features
while development of the area as a touristic destination as whole:
significant personnel , natural and investment potential ;
a developed manufacturing industries such as food and beverage , building materials and machinery
advantageous geographical position ;
great historical and natural - recreational resources ;
base to development of cultural and ecological tourism ;
advanced research and educational base ;
base to the development of modern business services within production infrastructure ;
advanced - transport system ;
considerable potential to attracting private investment in small business, as in production of goods
and services , so and in rural economy
potential to effective foreign trade cooperation ;
the comparative advantages of food and cotton - processing industries in the region ;
Strategic trade location in Central Asia could turn the region in an important transit point from the provision of
transport and freight services, as well as services by storage products. Moreover, a significant amount of
fertilized land condition on rural economy, pasture land, good climate from a large number of solar days and
acceptable amount of irrigation facilities.
Development of the Samarkand region is limited by the presence of the following factors:
Low-cost national
tour packages which creating suitable
packages
are dedicated on the perspective
traditional facility types
perspective
Lack of activeness in artificial projects

the investigation, attractive modern
major funding amenties
sectors of economy investigation on
and infrastructure infrustructure
High qualified educational

programms
specialists who can collaboration with
push distinguished foreign countries
services and so on service quality

Special issue
Potential risks of the development in Samarkand region are considered by following:
reduction of budget and

making adjustable marketing development of the inner
financing in some subsidized
purposes with the help of markets with the help of the
fields within sectors which
managerial task and open market policy and
could be improved
relationships projects of the government
intentionally
providing facilitated features relieving extra products and

selection of proper
on entrepreneurship and services for both local and
technologies with the help of
other fields as whole while international markets under
the leading tendencies of
improving their the control of the
worldwide
attractiveness government
to make development
projects in the touristic usage of crowd technologies
destinations with the help of and current ICTs on the
neighboring regions as deployment of supply chains
whole
Low-level of technological equipment of the enterprises for processing of raw materials, physical and moral
depreciation of fixed assets (about half of the production base of the industrial enterprises is obsolete).
Poor diffusion and implementation of innovative methods and modern technologies;
Fragile integration and cooperation between sectors and territories, small businesses, research
organizations and universities and synergetic productiveness through them.
Scrawny development of industrial and engineering infrastructure and consequently effect under the
placement of enterprises in rural areas.
Possibilities of regional industrialization:

the development of "regional growth points" in order to accelerate growth areas based on
their competitive advantages;
wide attraction of investments in the development of mechanical engineering, metal-working
and chemical industries;
the development of building materials industry through the effective use of local raw materials
by establishing a production of cluster;
Encourage the establishment of enterprises with foreign investment and creation of new
brands on the basis of development of manufacture of wine, dried fruits, traditional
handicrafts and so on.
Location and set of holy places of the world religion, especially on Islam and Christianity
under the territory of the region ;

Possibility of acquaintance from customs and the traditions of the ancient historical
sightseeing places of World heritage cities of country like Samarkand, Bukhara , Khiva and
so on ;
Unique traditional folk crafts and crafts ;
Availability of expressive masterpiece of the prehistoric times of Samarkand and its inventers
like Amir Temur, Abu Ali ibn Sina, Alisher Navoiy and so on ;
Favorable location from geographical position in the valley of the river Zarafshan with the
consideration of the crossroads on " Great Silk way ";
Investment attractiveness of the city thanks to its labor force and potential development of
tourism sector
Shortcoming of tourism development in Samarkand region:

Lack of touristic development and infrastructure from global point of view ;
Limitation of tour operators in the touristic destination of Samarkand, while establishing direct
contact with tourist companies of foreign countries by the organization of tourist trips and
determining the route , and capacity of services on it;
Scarcity at tourist formation strategy of recreational services by the development
of ecological tourism in region ;
Relative seasonal tour flows in region ;
Insufficiency of entertainment amenities as an extra facility for the organized list of
performances ;
Complex endorsement of current visa regime and policy
Diversifications of touristic connections among destinations and routes while by the
involvement of Samarkand and Bukhara through destinations like Shakhrisabz and Karshi ;
Transport connections of foreign companies within touristic destination and network of tour
operators ;
Legislation of service types and physical appearance of them under the quality control and
so on;
Potential opportunities of the development in the area tourism:

Increased awareness of the historical and cultural heritage of Samarkand through the media,
especially on the Internet by creating a special channel satellite television and other
information systems;
Improvement on technical equipment of tour operators by facilitations on taxes and customs
preferences;
Broad involvement of international organizations to promote the development of tourism;
Using historical and natural features in the nearby cities such as Shahrisabz and Karshi in
order to increase the attractiveness of tourist trips in region.

Special issue
Possible factors deterring the development of the industry:

Direct and indirect effects of the destabilization of the socio-economic and political situation in
the neighboring countries (Tajikistan, Kyrgyzstan, Afghanistan and others.);
The imperfection of the legal framework regulating tourism in the Republic;
strengthening of competing provisions in other tourist cities (the cities of Bukhara and Khiva);
A possible deterioration of the ecological situation in the region and the spread of various
infectious diseases and epidemiology.
Consider the main range of issues to ensure strategic planning of tourism development.
Uzbekistan as one of the touristic destination of the Great Silk Route demonstrates huge opportunity to
contribute significantly on the economy of country. It also believed to enhance the lifestyle of inhabitants while
organizing and advancing facilities. In briefly, the strategic development of country and policy of tourism
infrastructure need modifications and diversifications as whole.
CONCLUSION
As tourism stimulates infrastructure development of the Central Asian countries, has a strong multiplication
effect and helps diversify the economy, supports local culture and crafts and environmental protection, it is
very actual for all Republics of Central Asian region with its transitional economy, especially it is important as
Uzbekistan is a country with vast capabilities in tourism. The most attractive, as well as crossroad of the Silk
Road tourist destination, Samarkand possesses historical, medieval and tradition origin root of that areas. It
represents huge potential to become one of the cities that attract travellers not only from Asian countries but
also from entire world. Besides, the travel and tourism industry is a leading export industry in worldwide,
Central Asian counties could contribute considerable even though they make modifications and
diversifications on their policy of entrepreneurship with comparing and implying in reality.
Moreover, with vast underused capabilities in tourism and diversity of tourist attractions represent the
potential of tourism in these tourism destinations. Accessibility of various tourism types, distinct traditions and
unique cultural background of Central Asia has considered as one of the main key factor tourism and
hospitality businesses.
As brand name of Silk Road unites countries under one destination, the usage of this privilege
promotes to get rid lot of issues. Likewise, some problems could be solved as whole rather than individual
ones. Optimization of Visa facilities could appeal flow of tourists from entire of the world as it has stated by
UNWTO research group is one of the main example of this statement. By giving this chance, tourist could get
visa for different short periods as a result the duration of their stay could be prolonged.
Finally, as one of the main Silk Road tourism destination, Central Asian states have great potential to
advance sector of hospitality and tourism that create a lot of promotions for different spheres. In the other
perspective, tourism sector in Central Asia has already established and its policy has led to some
fundamentals improvements in the last 20 years.

REFERENCES
Allison, R. (2004). Regionalism, regional structures and security management in Central Asia. International Affairs, 80(3),
463483.
Central Asia: Problems and Perspectives of International Tourism:: Slavomr Hork. (2014). Retrieved 24 April 2014, from
http://www.slavomirhorak.net/news/central-asia-problems-and-perspectives-of-international-tourism/
Coulibaly, S., Deichmann, U., Dillinger, W. R., Ionescu-Heroiu, M., Kessides, I. N., Kunaka, C., & Saslavsky, D. (2012).
Eurasian Cities: New Realities along the Silk Road. World Bank Publications.
David Airey, & Myra Shackley. (1997). Tourism development in Uzbekistan. Retrieved 24 April 2014, from http://ac.els-
cdn.com/S0261517703001997/1-s2.0-S0261517703001997-main.pdf?_tid=52d31080-cbc0-11e3-937a-
00000aab0f6c&acdnat=1398351443_ac802891a64f5bf053879f65e012e8a7
EHL/UNWTO Silk Road Strategy Initiative | UNWTO Silk Road Programme. (n.d.). Retrieved 25 April 2014, from
http://silkroad.unwto.org/en/project/ehlunwto-silk-road-strategy-initiative
Fifth International Meeting on the Silk Road. (2014). Retrieved 25 April 2014, from http://silkroad.unwto.org/en/event/fifth-
international-meeting-silk-road-samarkand-republic-uzbekistan
Handbook on E-marketing for Tourism Destinations - World Tourism Organization. (n.d.). Retrieved 15 May 2014, from
http://www.e-unwto.org/content/r02520/?p=7818839427de449d880b57b9cd7459e9&pi=0
IUTF-2014. (n.d.). Retrieved 25 April 2014, from http://www.tourfair.uz/en/component/k2/item/2-mutv2014.html
National Company UzbekTourism. (2014). Retrieved 25 April 2014, from http://www.uzbektourism.uz/index.php/ru/
Policy and Practice for Global Tourism - World Tourism Organization. (n.d.). Retrieved 15 May 2014, from http://www.e-
unwto.org/content/jj25vv/?p=bb96d121a1c1474a95d64048aff500db&pi=0
Raballand, G., Kunth, A., & Auty, R. (2005). Central Asias transport cost burden and its impact on trade. Economic
Systems, 29(1), 631.
Samarkand Crossroad of Cultures - UNESCO World Heritage Centre. (n.d.). Retrieved 27 April 2014, from
http://whc.unesco.org/en/list/603
Samia, N. I., Kausrud, K. L., Heesterbeek, H., Ageyev, V., Begon, M., Chan, K.-S., & Stenseth, N. C. (2011). Dynamics of
the plaguewildlifehuman system in Central Asia are controlled by two epidemiological thresholds. Proceedings of the
National Academy of Sciences, 108(35), 1452714532. http://doi.org/10.1073/pnas.1015946108
Silk Road on the map | SILK ROAD. (2014.). Retrieved 25 April 2014, from https://en.unesco.org/silkroad/interactive-map-
of-the-silk-road
Silk Road Project fact sheet_20130726 - 1_Silk Road Project fact sheet_20130726.pdf. (2014). Retrieved from
http://www.silkroadproject.org/Portals/0/Uploads/Documents/Public/Press_Releases/1_Silk%20Road%20Project%20fact
%20sheet_20130726.pdf
Strategic Recommendations for enhancing Tourism with a Special Focus on Central Asia.pdf. (2012). Retrieved 15 May
2014, from
http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/recommendations_tour_operators_forum_2012_electronic_0.pdf
The State Committee of the Republic of Uzbekistan on Statistics. (2014). Retrieved 11 September 2014, from
http://stat.uz/en/index.php
UNWTO and Government of Uzbekistan to host 5th International Meeting on the Silk Road | Tourism-Insider. (n.d.).
Retrieved 25 April 2014, from http://tourism-insider.com/en/2010/08/english-unwto-and-government-of-uzbekistan-to-host-
5th-international-meeting-on-the-silk-road-2/
UNWTO Silk Road Programme. (2013). Retrieved 25 April 2014, from http://silkroad.unwto.org/publication/developing-
sustainable-tourism-strategy-silk-roads-heritage-corridors
- -
I 2014 . (2014.). Retrieved 11 September 2014, from
http://stat.uz/press/1/8359/?sphrase_id=116365
| .
(2014.). Retrieved 27 April 2014, from http://www.tourprom.ru/news/19902/

Special issue
http://ijecm.co.uk/

Uzbekistan
ISSUES ON SUSTAINABLE DEVELOPMENT

OF UZBEKISTAN
Farhod Ahrorov
Dean of Economic and management faculty, Samarkand Agricultural Institute, Uzbekistan
fahrorov@yahoo.com, fahrorov@mail.ru
Bobur Sobirov
Service and Tourism faculty, Samarkand Institute of Economics and Service, Uzbekistan
mrbobursobirov@gmail.com
Diyor Inoyatov
Westminster International University in Tashkent,
Economic with Finance, Level 5 student, Uzbekistan
diyorsher@gmail.com
Abstract
The paper scrutinizes the conceptual descriptions and evaluation of sustainable development of Uzbekistan
with the status quo of economic analyses and its sectoral overview as whole. As the objectives, descriptions
of the concept of sustainable development are analyzed and classified through current theoretical views.
Furthermore, analysis the systematic view of the dimensions of sustainable development is provided while
methods of systematic scientific literature analysis, general and logical analysis, comparison and
generalization were used for the research. Investigation concludes with sustainability issues with analyzes

and solution on the system levels where they develop and manifest themselves, one can consistently
formulate respective aims of the sustainable development policy for separate dimensions (economic,
ecological, social, and institutional) of sustainable development on each of these levels of economic
development policy, thus obtaining the complex of the aims of sustainability policy.
Keywords: Sustainability, Economy of Uzbekistan, Infrastructure, Central Asia, Economic competitiveness
INTRODUCTION
The term sustainable development is used as a common denominator for positive outcomes of development
efforts, that is, situations where development efforts succeed in maintaining or enhancing the capacity of
environmental, economic, and social systems to evolve and interact in harmony with one another and with a
long-term perspective (Barbier 1987, 1989; WCED 1987; Wiesmann 1998). Consequently, development at
the local, regional, national, and global levels is only sustainable if it meets the requirements of all three
dimensions of sustainability: the social, the economic, and the environmental. It is considered that, many
researchers and policymakers perceive and address the different dimensions of sustainable development as
separate issues and primarily understand sustainable development as an environmental issue. A prominent
example of such a perception is a current global research initiative that claims to be centered on five Grand
Challenges that, if addressed in the next decade, will deliver knowledge to enable sustainable development,
poverty eradication, and environmental protection in the face of global change (ICSU 2010). Three of the five
challenges focus on calculating perceiving, and confining environmental alteration, based on the premise that
humankind has not been able to manage this change so far. Other major scopes of unsustainable
development, particularly the social and economic dimensions, but also the institutional and political ones, are
perceived primarily as a means to advance environmental sustainability, rather than as global change
processes in themselves, and are addressed only in the two outstanding challenges on responding and
innovating. Another prominent example of a one-sided initiative is the Millennium Development Goals
(MDGs), which focus almost exclusively on poverty as a social issue of unsustainability, to be overcome
primarily by means of human development (United Nations 2009). The MDGs and MDG-related research
thus largely neglect both environmental and economic aspects of sustainability, which may be a major reason
why these goals will hardly be fulfilled by 2015(Bank, 2015).
The shortcomings of these two major international initiatives are understandable: Indeed, the goal of
sustainable development always requires a process of finding a balance between the three dimensions of
sustainability, based on negotiated norms. Establishing such a normative balance means making choices and
setting priorities. As a result, initiatives cannot address all dimensions of sustainability in a perfect way, but
they can strive to meet at least the most urgent needs of the stakeholders concerned and the most urgent
requirements identified for biophysical systems, with a view to doing things better in future. A mapping of
sustainable development debates by Hopwood and co-authors (2005) reveals a growing concern for
environmental challenges as well as issues of socio-economic disparities, human wellbeing, and equality that

Special issue
necessitate reform or even transformation. This confirms that all dimensions of sustainable development have
to be addressed (Anonymous, 2014b).
Global change embraces all aspects of global dynamics in the social, cultural, political, ecological,
institutional, and economic spheres. It is discussed that
humankind today is confronted with numerous threats brought about by the speed, scope and
unpredictable interconnectedness of global change dynamics. A concerted and informed approach to
solutions is required to address the magnitude and severity of the numerous crises we are facing, related
to the global economy, climate change and natural resource degradation, food security, poverty and
social exclusion, water and sanitation, and conflict and governance, to name but a few. Generating
shared knowledge and developing the ability to cross multiple borders between understandings of
realities and issues are a key to addressing such global challenges. (Hurni 2010, p 13)
As asserted above, however, global variation should not be perceived as having only negative impressions:
Indeed, some procedures of global change have in many salutations led to greater sustainability. Economic
growth, for example, has enabled people and entire societies to progress their maintenances, which has in
turn led them to pay more attention to their environment. Kuznets (1955) and other authors proved the
correlation between economic growth and environmental superiority.
Indeed, according to Raskin (2008, p 461), sustainability research studies the dynamics and
prospects of co-evolving human and ecological systems, a subject of intrinsic complexity and deep
uncertainty. The authors of the present book undertake that despite such uncertainty, global change can be
governed for sustainable expansion (Bank, 2015). Drawing on theoretical thinking and research experiences
conducted in many regions of the world within the framework of a 12-year partnership-based investigation
program, they are even influenced that (global) change is needed to achieve sustainable expansion; but this
change has to be steered to avoid negative significances. Todays global change problems exist mainly
because local difficulties were overlooked, neglected, not addressed, or not perceived as vital while they were
gradually growing into global issues (Mller & others, 2006). Thus, the question is not whether or not there
should be global change, but to what extent it will be possible to reduce or mitigate its negative impressions
and processes, and find groundbreaking keys while trying not to generate new difficulties.
THEORETICAL BACKGROUND OF SUSTAINABILITY

Establishing an integrative conceptual framework of sustainable development:
The most common definition of sustainable development was established by the World Commission on
Environment and Development (also known as the Brundtland Commission), indicating that sustainable
development is development that meets the needs of the present without negotiating the ability of future
generations to meet their own needs(Egamberdieva et al., 2008) .
According to this notion, human beings at the center of sustainable development and at the same
time implies that all other living beings, that is, plants and animals, as well as other natural resources must not
be depleted if they are to remain available to future human generations for meeting needs at various levels,

reaching from food supply and ecosystem functions to aesthetic and cultural values (Landau & Kellner-
Heinkele, 2001).
In the sustainability debate of the 1990s (see United Nations 1997) three major dimensions of
sustainable development were postulated, namely the social, ecological, and economic dimensions;
moreover, the normative character of sustainable development was put at the forefront of the sustainability
concept (e.g. Wiesmann 1998; see Figure 1).
Figure 1. Conceptual framework combining an analysis of humanenvironment systems and their interaction
with a normative appraisal of sustainable development.
Source: Hurni and Wiesmann 2004;adapted from Wiesmann 1998
The definition of sustainable development presented in mentioned Figure 1 is rooted in a systems approach
that includes a focus on the biophysical system with renewable natural resources, the social system with
political, economic, and institutional characteristics, as well as an interface between the two major systems,
namely a land use system where human use and natural resources are linked in a spatial, that is, landscape
context (Anonymous, 2014a).
Although developed in the context of research on rural areas in mountains, such a systems approach
is capable of including urban areas as well, as long as they are observed in a broader context of urbanperi-
urban systems(Karimov, 1998).
When considering the three dimensions of sustainable expansion we could argue that the economic
dimension is not a basic sustainability dimension with a long-term viewpoint, but a tool to accomplish
sustainable use of natural resources between the ecological and social spheres. This priority of the ecological
and social dimensions over the economic measurement, however, could be counter-argued by the need to
keep goods and services flowing between individuals and societies, requiring a sustainable economy; hence

Special issue
this should be an essential dimension of sustainability. We may further argue that an institutional and political
dimension of sustainable development should be considered as well; these two additional aspects could be
incorporated under the social dimension of sustainability.
Economic sustainability of Uzbekistan

Since the mid-2000s, Uzbekistan has enjoyed robust GDP progression, thanks to favorable trade terms for its
key export commodities like copper, gold, natural gas, cotton, the governments macro-economic
management, and limited exposure to international financial markets that protected it from the economic
downturn. Still, the deployment of economic advancement under the policy and structure of government have
been making diversifications and modernizations as whole. On the other hand, the value of globalization and
up-to-date innovative technologies are vital necessary for the future of country while facing challenges.
Overall, growth for Uzbekistan is projected to endure at around 7 to 8 percent annually during 2014-17,
supported by net exports and a large capital investment program. World prices for Uzbekistans principal
exports were favorable through the first half of the 2012-15 fiscal years (FY) Country Partnership Strategy
(CPS) period.
The impression of recent fall in global food and energy prices is expected to be limited given
Uzbekistans policy of self-reliance in both food grains and energy. Given the governments plans to finance
up to two-thirds of their investment program from external sources, including loans, external debt is expected
to increase gradually.
The country has to contend with a amalgamation of risk factors going forward, including deteriorating
security conditions due to the situation in bordering countries, and increasing tensions between with
neighbors over regional issuesespecially the management and use of trans-boundary energy and water
resources. Domestically, Uzbekistan has to work to minimize its economys vulnerability to external shocks
affecting commodity prices and the predicted inflow of foreign direct investment (FDI) and external loans to
finance the large public investment program.
Uzbekistan, with the goal of becoming an industrialized, high middle-income country by around 2050,
is continuing to transition to a more market-oriented economy to ensure equitable distribution of growth
between regions and to maintain infrastructure and social services. The countrys policy goals and priorities
are: to increase the efficiency of infrastructure, especially of energy, transport, and irrigation; to enhance the
competitiveness of specific industries, such as agro-processing, petrochemicals, and textiles; to diversify the
economy and thereby reduce its reliance on commodity exports; and to improve access to and the quality and
outcomes of education, health and other social services.
Urbanization criteria in each city were not equal in all the cities of the Republic of Uzbekistan.
Therefore, it requires building the future socioeconomic capacity of them. In particular, the development of
small business and private enterprises can be based for strengthening of occupancy of the population and
improvement urbanization. Formed the basis of the social, economic and demographic situation, nowadays it
requires to improve the quality of the population of the republic. The following can be determines main
characteristics of the population:

the rate of health of the population;

the rate of child and maternal mortality;
the average life expectancy of the population;
education level and their structure;
vocational-technical training of the population and their structure;
social structure and social mobilization;
occupancy status of the population and the network structure;
urbanization level of the population;
the regional nature and intensity of the movement of the population;
national values, family and community traditions, folk traditions and their safety;
universal values.
For a major demographic processes birth, death, marriage and divorce levels of the Republic of Uzbekistan
are given assessment. It was based that in the years of independence of the Republic of Uzbekistan in all
regions the birth, death, marriage and divorce rates were decreased and marriage age was extended.
Scientific offers were produced the development of an effective demographic policy and to control
demographic development according of modern demographic condition which was developed in the territories
of the Republic of Uzbekistan. The further development of the national economy during the global financial
and economic crisis, to correspond it to the market economy under the requirements of such aspects as
population, its growth, location, demographic structure has a great importance to study to pass to the
modernization of the economy on the transition period point of view. In addition, a positive solution of the
problems of the population, to improve living conditions and to pay much attention to the quality indicators is
very important. But, the population is seen as well as a manufacturer power and consumer in the society.
The structure and number of the population, to be re-built aspects were reflected to the development
economic processes. Therefore, it was practical importance to analyze the changes in the properties of re-
building them, to solve the problems in incomes and improve the quality of life of the people in the country
and to support the occupancy of population which has been growing. Republic of Uzbekistan is a country with
a high demographic potential. Today, 0.42 per cent of population the Republic of Uzbekistan is accounted for
the world's population (7.2 milliard people). In table-2, it is believed Uzbekistan is the highest of the grow in
population of the Commonwealth of Independent States countries, (Table 2)

Special issue
Table 2. The dynamics of the Commonwealth of Independent States countries mill. Person.
As it can be seen from the table, the number population of countries was increase in 2005-2014 Tajikistan
(27.6%) Uzbekistan (17.1%), Kyrgyzstan (13.7%), Kazakhstan (13.0%), Azerbaijan (10.4%), Turkmenistan
(10.4%) and Moldova (7.8%). Armenia, Belarus, Russia and Ukraine, countries were seen depopulation
(decrease the number of people). The share of the population in Russia and Ukraine, the next place was
taken Uzbekistan among the CIS countries. It consists of 10.9 percent of the total population. The
urbanization rate of the population of the Republic of Uzbekistan was 51 per cent. According to this indicator
Uzbekistan is placed more early place between neighboring countries Kyrgyzstan, Tajikistan and
Turkmenistan. In fact that the urbanization rate of the population of the Republic of Uzbekistan was 35.8
percent by 2009 (Breckle, Veste, & Wucherer, 2012).
In 2009, according to the Decree of 68 "About additional measures to improve the settlements of the
administrative-territorial structure of the Republic of Uzbekistan" of the Cabinet of Ministers of the Republic of
Uzbekistan due to the reorganization of 965 rural villages into the city the urbanization level of the population
was equal to 51 percent. Under the territories of the regions of the Republic of Uzbekistan reorganized into
rural urban area: the Republic of Karakalpakstan - 11, Andijan region - 79, Bukhara region - 59 region, 33,
Kashkadarya region - 117, Navoiy region - 29, Namangan region - 108, Samarkand region 75,
Surkhandarya region - 106, Syrdarya region - 15 Tashkent region - 78, Ferghana region - 198, Khorezm
region 50. The way of policy and structure were accepted by The Decree of 68 About additional measures
to improve the settlements of the administrative territorial structure of the Republic of Uzbekistan, 2009.
According to Table-3, the data of the State Statistics Committee of the Republic of Uzbekistan, the population
is amplified by 48 percent in 1990-2013, the quantity was 30492.8 thousand people on January 1, 2014(Song,
Frostell, & Gadaev, 2013).

Table 3. Permanent changes of the population of the Republic of Uzbekistan, thousand people (to the
beginning of the year)
Some rises in natural movement of the population of the Republic of Uzbekistan were observed at last 15-20
years, they particularly were occurred according to the decrease in the birth and death. In general, the natural
growth was very important in the growth of the population. It develops accordance with the socio-economic
development opportunities. Typically, the high level of natural growth leads to a rapid increase in the number
of people. Such position is depend on fertility and mortality rates(Van Assche & Djanibekov, 2012).
There are significant differences in the age structure of the CIS countries. These differences were
based on specific demographic behavior of the place where people live. Kept the high of birth rate for a long
time in Central Asian republics were remained a large part of the population consisted the young nowadays
(Sievers, 2013).

Special issue
Table 4. The natural development of the population dynamics of CIS countries.
In other CIS countries, namely depopulation process where observed in Belarus, Russia and Ukraine were
different the children and teenagers in Central Asian republics almost two times less (Bekchanov, Bhaduri,
Lenzen, & Lamers, 2014). One of the factors that directly affect the age structure of the population in the
countries of the Commonwealth - which the changes happen in the natural development (Table 4).
On the demand side, increases in wages and pensions, public investment, and commercial lending
were the main sources of growth. Public sector wages rose by 19.1% in 2014, sustaining private
consumption. Gross fixed capital formation was reported rising by 10.9% (Hornidge, Oberkircher, &
Kudryavtseva, 2013). Capital investment reached $14.6 billion, or 24% of GDP, including more than $3.0
billion in foreign investment. Notable projects completed in 2014 include the expansion of the General Motors
Uzbekistan automobile manufacturing plant and the completion of a key branch of the gas pipeline linking
Central Asia to the Peoples Republic of China. Commercial bank lending raised credit to the economy by
31.2%.The government reported average annual inflation at 6.1% in 2014 (Bobojonov et al., 2013). Official
consumer price index data show that inflation slowed primarily because food prices fell in line with global
trends. The International Monetary Fund estimated, using the same data as the government but a different
methodology, that inflation slowed to 8.4% from 11.2% in 2013. Inflation is nevertheless believed to have
risen in the fourth quarter because of rapid currency depreciation against the US dollar (Raupova, Kamahara,
& Goto, 2014).
Broad money is estimated to have grown by 26% in 2014, about the same as in 2013, reflecting
higher domestic credit. Monetary survey data are not available, but net foreign assets in the banking system
may have decreased as domestic credit grew more quickly than broad money.

The government reported a budget surplus of 0.2% of GDP in 2014. Factoring in the surplus of the
Uzbekistan Fund for Reconstruction and Development, the countrys sovereign wealth fund, the augmented
budget balance is estimated to have shown a surplus equal to 2.4% of GDP, down from 2.7% in 2013.
Budget revenues are estimated to have slipped from 36.2% of GDP in 2013 to 36.1% in 2014, in line
with declining international prices for key export commodities. Higher government spendingnotably for
wages, pensions, health care, and educationraised budget expenditures from 33.5% of GDP in 2013 to
33.7% in 2014. Total government debt edged up from 8.5% of GDP in 2013 to 8.7% in 2014 as foreign
lending for infrastructure increased. The current account surplus is estimated to have narrowed to 1.2% of
GDP from 1.6% in 2013, reflecting a smaller trade surplus and lower remittances (Figure 5). External demand
stayed weak, and international prices for Uzbekistans key export commodities declined from historic highs.
Much of the narrowing in the trade extra reflected lower earnings from energy, which accounts for about 30%
of all exports (Hornidge et al., 2013).
Earnings from energy exports have been declining since the third quarter of 2014 in line with
retreating global oil prices. Total exports are estimated to have declined by 2.0%. Developments in the
economy of the Russian Federation during late 2014 profoundly affected Uzbekistans exports and
remittances. Weak consumer demand there, coupled with rapid nominal appreciation of the Uzbek sum
against the ruble, hurt bilateral trade. Diminished labor demand in construction and logisticsthe main
employers of Uzbek migrantshelped cut remittances from the Russian Federation by an estimated 10%, to
about $5.0 billion. Quarter by quarter, bilateral trade and remittances were both lower than in 2013. Imports of
goods and services rose by 1.1%, driven mainly by imports of consumer goods and chemicals. Despite
declining by about 10% from 2013, machinery and equipment remained the largest import items, accounting
for 40% of imports. This reflects continued but moderating demand for capital goods from state-led
infrastructure development and industrial modernization programs scheduled to end in 2015. With the decline
in exports, the trade balance is estimated to have moved into deficit by the end of 2014. Public and private
external debt is estimated to have increased to 13.4% of GDP in 2014 from 13.0% in 2013. Gross official
reserves were estimated at $23.9 billion, equivalent to 2 years of merchandise imports (Dubovyk et al., 2013).
GDP growth is forecast at 7.0% in 2015 and 7.2% in 2016, reflecting projected due to new-born services
arrival and diversification on the area. To limit the growth slowdown, the government is expected to boost
spending further, particularly for public investment. Gradual recovery in external demand should begin in
2016, but industry will persist the key supply-side driver of growth, with output supported by higher lending.
Large industrial enterprises in strategic sectorsmining, oil and gas, and manufacturing are expected to
receive the bulk of additional lending from both the government and commercial banks. Planned wage and
pension increases that exceed the inflation rate should support private consumption and request for services.
Agriculture is projected to grow by 6.0% in line with stable production of the key agricultural crops: cotton and
wheat. The government is expected to complete its large modernization investment program in 2015
(Raupova et al., 2014).
Public investment should increase substantially to achieve the goal of raising industrys share of GDP
to 28%, with most investment financed by the Uzbekistan Fund for Reconstruction and Development. Gross

Special issue
fixed capital formation is forecast to increase by 11.0% in 2015 and 12.0% in 2016. In response to growing
external risks and global uncertainties, the government announced in January 2015 reforms to be
implemented over 20152019 for economic diversification, private sector development, a smaller state
presence in the economy, and better corporate governance. In early March 2015, the government adopted a
comprehensive structural transformation, modernization, and diversification program for 20152019.
The program visualizes a $19.6 billion investment package to be financed through foreign
investments and loans, the Uzbekistan Fund for Reconstruction and Development, and commercial bank
lending. As in 2013 and 2014, the government will carry on to stimulate domestic consumption in 2015 and
2016, most likely by raising public sector wages, welfare payments, and pensions. With presidential elections
in 2015, additional measures are expected to sustain household spending, including expanded consumer
lending. Reflecting these developments, private consumption is forecast to rise by 2.0% in 2015 and 3.0% in
2016. Inflation is projected at 9.5% in 2015 and 10.0% in 2016. Inflationary pressures will emanate from
higher government spending and continued depreciation of the local currency. Estimated drops in global food
prices and lower import costs could partly offset these pressures. Nevertheless, containing inflation will
remain a key challenge over the medium term.
CASE OF SUSTAINABLE UZBEKISTAN

Uzbekistan is a country striving for wide-ranging economic progression and a narrowing of gaps in
infrastructure quality between rural and urban areas. As one of the most important international organization,
the Asian Development Bank (ADB) has been supporting the Government of Uzbekistan since 1995, and has
provided more loans to Uzbekistan than to any other emerging member country in the Central Asia region. As
of 31 December 2014, Uzbekistan has received 54 loans totaling $4.1 billion, including two private sector
loans totaling $225.0 million, and $61.7 million in technical assistance grants(Is regional economic integration
in Central Asia a doomed vision or a promising future? | Asia Pathways, 2014.). In September 2012, ADB
approved the country partnership strategy (CPS), 20122016 for Uzbekistan. The CPS is aligned with
Uzbekistans Welfare Improvement Strategy, 20132015, which guides Uzbekistans pursuit of business
innovation and infrastructure development. The CPS focuses on transport and announcement, energy, water
supply, municipal infrastructure and services, and access to financial services. In 2014, ADB provided a loan
of $300 million to support energy-efficient power generation that will meet rising electricity demand in
Uzbekistan. Cumulative disbursements to Uzbekistan for lending and grants financed by ordinary capital
resources, the Asian Development Fund, and other special funds amounted to $2.01 billion. ADB assistance
continues to help bridge gaps in economic opportunity and reduce disparities in public services through
Uzbekistan. Water management and agriculture projects are helping to generate jobs and increase incomes
in rural areas, with the Amu Bukhara Irrigation System Rehabilitation Project expected to benefit 1.8 million
rural residents. Meanwhile, ADB commitments to clean water supply and sanitation should improve the lives
of 3 million people, with the Solid Waste Management Improvement Project serving about 645,500
households by 2019. The Education Sector Development Program introduced an globally aligned education
model to improve learning consequences for vulnerable students, while the Woman and Child Health

Development Project has helped to reduce national maternal and infant mortality rates. Roads, railways, and
housing in Uzbekistan have also been revitalized. Five projects were approved under the two Central Asia
Regional Economic Cooperation (CAREC) Corridor 2 Road Investment programs, and 660 kilometers (km) of
track were upgraded under two railway modernization projects in key regional areas. The first project of the
Housing for Integrated Rural Development Investment Program provided 8,500 rural families with new homes,
while the second project will finance 21,000 homes for families with moderate to low incomes (Handbook on
Tourism Destination Branding - World Tourism Organization, 2014.).
With a need for jobs evolution, and to improve the livelihoods of rural residents, a key development
priority for Uzbekistan in the medium term is economic expansion through industrial development. To attract
private sector investment and expand access to financial resources for entrepreneurial purposes, support for
infrastructure development will remain a priority area for ADB assistance. Direct private sector support will
also continue. ADB will seek to underpin the sustainability of Uzbekistans strong economic growth by further
deepening and broadening its knowledge products and services. ADB operations in Uzbekistan over the
longer term will be guided by the countrys evolving development needs, and by Strategy 2020, ADBs
longstanding strategic framework, 20082020.
On this basis, the above four major research frameworks provide guidance in designing research
components. However, a research program that seeks to address issues of global change with the aim of
promoting sustainable development worldwide faces challenges at an entirely different level as well, namely
the sustainable context. As mentioned in the introduction, undesirable processes of global change occur
around the globe and affect all parts of the Earth, but many of them are felt most dramatically in the
developing countries of the Commonwealth Independent States (CIS), where they tend to aggravate existing
disparities and hamper sustainable development. An understanding of these global processes and
diminuendos can only be achieved through combined research efforts in global scale, in broad collaboration
among researchers from the diverse world regions affected (Bradley 2008; Soete 2008).
According to Figure 2, it is considered that conceptual elements of sustainable synergy has its vital
necessity on the development of area. For instance, contextualization is believed as the direction taken in
research aimed at achieving more sustainable development in concrete situations, as this requires contextual
differentiation and, in most cases, transdisciplinary dialogue. These feature needs cooperation and synergy in
order to make better efficiency and illustrate relevant productivity.
Generalisation is needed to achieve research results that are valid for as broad a research context as
possible. It means dealing with sustainable development in an integrative and transdisciplinary manner by
applying a syndrome mitigation approach (Hurni et al 2004). This implies looking at patterns of problems and
potentials of sustainable development.

Special issue
Figure 2. Synergy of sustainability, Case of Uzbekistan
Contextualisation
Specilialisation Application
Generalisation
Research findings from specific case studies and selected contexts are generalized and the overall
theoretical, conceptual, and methodological foundations of the program developed, with a view to gaining
more systems knowledge and to some extent also transformation and target knowledge. In terms of program
components, regional research projects as a cooperative and integrative functionality, usually work towards
contextualization of their (inter)disciplinary specialization. Conversely, thematic and integrative research
projects work from regional specialization towards global generalization (Hurni et al 2010).
Figure 3. Case of sustainable development in Uzbekistan
Regional
deployment
Cooparation
Sustainable Policy and
and
Development Strcuture
Collaboration
Integration
and
Innovation

Sustainability deployment of the Republic of Uzbekistan is illustrated in the Figure 3, according to analyses of
the globe investigations and studies on this context. It could be illustrated that, regional development, policy
and structure, integration and innovation, cooperation and collaboration are considered as vital elements of
this development. Through this advancement, region will enrich its sustainable enhancement, the way of life
and facilities as whole. Life standard and income of people will increase step by step with market oriented
democracy of sub sectors and the view of the entrepreneurs. Therefore, it is believed that, synergy among
companies and individuals will strength the concept of development and according this country make its
status in the global market of services and production.
CONCLUSION
Development at the local, regional, national, and global levels is only sustainable if it meets the requirements
of the social, the economic, and the environmental dimensions of sustainability. Globally, changes embraces
all aspects of global dynamics in the social, cultural, political, ecological, institutional, and economic spheres.
Current trends in global food and energy prices to decline is expected to be limited given Uzbekistans policy
of self-reliance in both food grains and energy. With GDP growth forecasted at 7.0% in 2015 and 7.2% in
2016, it is projected diversification of economy. Agriculture is projected to grow by 6.0% in line with stable
production of the key agricultural cash crops: cotton and wheat. The government is expected to complete its
large modernization investment program in 2015.
Uzbekistan has to work to minimize its economys vulnerability to external shocks affecting
commodity prices and the predicted inflow of foreign direct investment (FDI) and external loans to finance the
large public investment programs. With the goal of becoming an industrialized, high middle-income country by
around 2050, country is continuing to transition to a more market-oriented economy to ensure equitable
distribution of growth between regions and to maintain infrastructure and social services. With a need for jobs
evolution, and to improve the livelihoods of rural residents, a key development priority for Uzbekistan in the
medium term is economic expansion through industrial development. Regional development, policy and
structure, integration and innovation, cooperation and collaboration are considered as vital elements of this
development.
REFERENCES
Anonymous. (2014a, August 12). Uzbekistan and ADB [Text]. Retrieved 16 September 2015, from
http://www.adb.org/countries/uzbekistan/main
Anonymous. (2014b, August 12). Uzbekistan: Publications and Documents [Text]. Retrieved 16 September 2015, from
http://www.adb.org/countries/uzbekistan/publications
Bank, A. D. (2015). Asian Development Bank and Uzbekistan: Fact Sheet. Asian Development Bank. Retrieved from
http://www.adb.org/publications/uzbekistan-fact-sheet
Bekchanov, M., Bhaduri, A., Lenzen, M., & Lamers, J. P. (2014). Integrating input-output modeling with multi-criteria
analysis to assess options for sustainable economic transformation: the case of Uzbekistan. In The Global Water System
in the Anthropocene (pp. 229245). Springer. Retrieved from http://link.springer.com/chapter/10.1007/978-3-319-07548-
8_16
Bobojonov, I., Lamers, J. P., Bekchanov, M., Djanibekov, N., Franz-Vasdeki, J., Ruzimov, J., & Martius, C. (2013).
Options and constraints for crop diversification: a case study in sustainable agriculture in Uzbekistan. Agroecology and
Sustainable Food Systems, 37(7), 788811.

Special issue
Breckle, S.-W., Veste, M., & Wucherer, W. (2012). Sustainable land use in deserts. Springer Science & Business Media.
Retrieved from
https://books.google.com/books?hl=en&lr=&id=EvfsCAAAQBAJ&oi=fnd&pg=PA3&dq=sustanaible+development+of+uzbe
kistan&ots=5gpFlBR2J2&sig=ICXUDmGN94h4XlSvdM3kJNvnH8M
Dubovyk, O., Menz, G., Conrad, C., Lamers, J. P., Lee, A., & Khamzina, A. (2013). Spatial targeting of land rehabilitation:
A relational analysis of cropland productivity decline in arid Uzbekistan. Erdkunde, 167181.
Egamberdieva, D., Kamilova, F., Validov, S., Gafurova, L., Kucharova, Z., & Lugtenberg, B. (2008). High incidence of
plant growth-stimulating bacteria associated with the rhizosphere of wheat grown on salinated soil in Uzbekistan.
Environmental Microbiology, 10(1), 19.
Handbook on Tourism Destination Branding - World Tourism Organization. (n.d.). Retrieved 15 May 2014, from
http://www.e-unwto.org/content/pv8055/?p=72fd8fc85b3f462bba2838061cbb6e99&pi=0
Hornidge, A.-K., Oberkircher, L., & Kudryavtseva, A. (2013). Boundary management and the discursive sphere
Negotiating realities in Khorezm, Uzbekistan. Geoforum, 45, 266274.
Is regional economic integration in Central Asia a doomed vision or a promising future? | Asia Pathways. (n.d.). Retrieved
21 May 2014, from http://www.asiapathways-adbi.org/2014/04/is-regional-economic-integration-in-central-asia-a-doomed-
vision-or-a-promising-future/
Karimov, I. A. Uzbekistan on the Threshold of the Twenty-first Century: Challenges to Stability and Progress. Macmillan.
Landau, J. M., & Kellner-Heinkele, B. (2001). Politics of language in the ex-Soviet muslim states: Azerbayjan, Uzbekistan,
Kazakhstan, Kyrgyzstan, Turkmenistan, and Tajikistan. University of Michigan Press.
Mller, M., & others. (2006). A general equilibrium approach to modeling water and land use reforms in Uzbekistan.
Universitts-und Landesbibliothek Bonn. Retrieved from http://hss.ulb.uni-bonn.de/2006/0801/0801.htm
Raupova, O., Kamahara, H., & Goto, N. (2014). Assessment of physical economy through economy-wide material flow
analysis in developing Uzbekistan. Resources, Conservation and Recycling, 89, 7685.
Sievers, E. W. (2013). The post-Soviet decline of Central Asia: sustainable development and comprehensive capital.
Routledge. Retrieved from
https://books.google.com/books?hl=en&lr=&id=J4lEAgAAQBAJ&oi=fnd&pg=PP1&dq=sustanaible+development+of+uzbe
kistan&ots=pXE-SYIYzz&sig=rKXKyPI2nlsH2XW6FU5Xc84H4yg
Song, X., Frostell, B., & Gadaev, A. (2013). UZWATER Tempus project: The study visit to KTH, Royal Institute of
Technology, with focus on Master Thesis Work. Retrieved from http://www.diva-
portal.org/smash/record.jsf?pid=diva2:758745
Van Assche, K., & Djanibekov, N. (2012). Spatial planning as policy integration: The need for an evolutionary perspective.
Lessons from Uzbekistan. Land Use Policy, 29(1), 179186.

http://ijecm.co.uk/

Uzbekistan
SYSTEM PERFORMANCE SERVICES FOR THE STORAGE AND

SALE OF PRODUCTS, THEIR CLASSIFICATION AND
DEFINITION OF THE WAY
Olim Pardaev
Senior researcher, Statistics and Management faculty,
Samarkand Institute of Economics and Service, Samarkand, Uzbekistan
mrolimpardaev@gmail.com
Abstract
In the sustainable development of developing countries such as Uzbekistan, economic integration among
individuals considered as a principle factor to acquire better results. In the way of deployment, economic
efficiency of the enterprises could be increased with better results. The article describes the system
performance services for the storage and sale of products, providing the subjects, their classification and
definition of the way. On this basis, synergy of storage procedures with its fundamental basis is investigated
on this study. Moreover, it is given formulation of the content with the definition of each indicator. Gained
analytical conclusions and outcomes of the research identifies the way of the further studies and socio-
economic development.
Keywords: Performance, system performance, classification performance, efficiency, storage services,

services for the implementation, the effectiveness of services

Special issue
INTRODUCTION
At present, agricultural products, especially fruit and vegetables in order to increase the work carried out on
the establishment of new orchards and vineyards separately. "During the years 2010-2014, about 50
thousand hectares of new parks, more than 14 thousand hectares, including 23 hectares of intensive
orchards, vineyards were created. For the establishment of intensive orchards, Poland, Serbia and other
countries brought more than 6 million seedlings. These parks have many advantages that is reflected today in
practice. For example, a simple fruit tree planting gave the first harvest usually takes 4-5 years. Intensive
horticulture as early as the second or third crop from the trees (FAO - detail: International Conference - The
most important reserves of implementing the Food Program in Uzbekistan).
In 2011, the gardens created at the 2014 average of 300 quintals per hectare yield and productivity is
increasing every year proves it. It shows that the population of the country provide them with fruits and
vegetables throughout the year to supply environmentally friendly products and is rich in vitamins and
microelements for the sale of agricultural products and services requires a high level of organization.
The implementation of the above-mentioned tasks, and agricultural products to improve the quality of
life of the population, it is also important to improve the efficiency of care and services to sell. For this
purpose, requires the assessment of the effectiveness of the protector and supplier of products enterprises.
To do so, they cover all aspects of the effectiveness of many indicators that will be used. When many
indicators will require them to use them properly structured implementation (Food Independence Important
Factor of Wellbeing, Stability, Prosperity, 2014).
Systematize the indicators say is the classification of certain marks on them. After the completion of
this system is divided into indicators. System of indicators say certain groups, and each group with its own
means instead of clearly formulated indicators.
The effectiveness of this article is to sell products and services to these companies to advice on the
content of the indicators characterizing the economic classification limits.
Research, sales of products and services in accordance with the following groups of indicators
characterizing the effectiveness of the targets, found that:
the overall efficiency of the enterprises representing the common indicators;
indicators characterizing the efficiency of the assets of the enterprises;
the main indicators characterizing the efficiency of enterprises;
indicators of intangible assets representing the efficiency of enterprises;
indicators effectiveness of current assets of enterprises;
indicators effectiveness of own funds of enterprises;
obligations of the indicators characterizing the efficiency of enterprises.
This series of indicators representing the efficiency of enterprises engaged in the storage and sale of products
not determined a different approach. Because of this freezer warehouse filled with two source in the
enterprise. The first of these products to farmers and other business owners in cash and money transfer

through one of the drawbacks. The second is to rent one of the empty areas of the rest of the freezer. The
other allows people to keep their products on a contract basis for a requested period of time. It is considered
only to save money and economical expenses(Song, Frostell, & Gadaev, 2013).
After the first case, the company sold products made by the owner will benefit. In the latter case, do
not care how the owner of the refrigerators sold. Nevertheless, is committed to preserve for the further
purposes. As a result, the definition of performance indicators to take into account these features of the
products stored and sold separately will need to identify specific indicators (FAO Director General considers
the Food Conference in Uzbekistan as a landmark event in the expansion of agricultural production -
Uzbekistan News - UzReport.uz, 2014).
This is another reason, part of the time they bought the business owner will be considered separately.
Sales target is expected to benefit more than prepared for it. In this regard ready total size of the total volume
of sales of the product are different from each other. It is this difference in the effectiveness and efficiency of
health services for the sale of services to take into account separately found that the purpose of the
calculation (Raupova, Kamahara, & Goto, 2014).
The following products Protective Services is a separate system of indicators characterizing the
efficiency of enterprises. The total revenue taken into account rather than the volume of products. The content
of the ways to identify them, and the names of these indicators are presented in the table below.
Table-1. System of indicators of efficiency and the way of their identifying in the food storage enterprises
The name of indicators Formula What they identify
Indicators of total efficiency the food storage enterprises
Prepare and maintain, the 100 Storage of product sold is
profitability of sold products = pure profit in 100 UZS

() product sold in the amount
of net income riders;
Q the volume of production (total
sales);
Cost effectiveness () cost of many products in 1

=
UZS
Q - the volume of production (total
sales); Amount of spending.
Profitability of expenses 100 storage costs

() = corresponding to the

product sold in the amount product sold is pure profit
of net income riders; Amount in 100 UZS
of spending.
Applied productivity () 1 employees

=
corresponding to the
Q - the volume of production (total production, storage
sales); The average number product sold
of employees who are engaged
with work in company.

Special issue
The indicators representing the effectiveness of the assets of the food storage
enterprises
The effectiveness of assets Total revenues
=
() corresponding to the
Q - the volume of production (total value of assets in 1 UZS
sales); The average value of
assets.
Return on assets () 100 Rate of return on assets
= (net profit corresponding

product sold in the amount of to the value of the assets
net income riders; The average in 100 UZS)
value of assets.
The main indicators characterizing the efficiency of the food storage enterprises
The effectiveness of the Total revenues
=
basic tools () corresponding to the
Q - the volume of production (total basic tools in 1 UZS
sales);); the average value of
fixed assets.
The main instruments 100 Fixed rate (fixed assets
profitability () = corresponding to the

product sold in the amount of amount of net profit in 100
net income riders; the average UZS)
value of fixed assets.
The indicators representing the effectiveness of the intangible assets of the food storage
enterprises
The effectiveness of Intangible assets
=
intangible assets () corresponding to the total
Q - the volume of production (total revenues in 1 UZS
sales); - the fair value of
intangible assets.
The profitability of intangible 100 Intangible assets rate (the
assets () = amount of intangible

product sold in the amount of assets corresponding to
net income riders; the average the value of net profit in
value of fixed assets. 100 UZS)
Indicators effectiveness of current assets of food storage enterprises
The effectiveness of current Current assets
=
assets () corresponding to the total
Q - the volume of production (total revenues in 1 UZS
sales); the average value of the
current assets.
The profitability of current 100 Change of current assets
assets () = (current assets

product sold in the amount of corresponding to the
net income riders; the amount of net profit in 100
average value of the current assets. UZS )
Business indicators characterizing the efficiency of its own funds in food storage
enterprises
The effectiveness of its own funds corresponding to
=
funds () the total revenues in 1
Q - the volume of production (total UZS
sales); the average value of
their own funds.

Profitability of own funds 100 Own funds of change (the

() = amount of the net profit

product sold in the amount of from its own funds in 100
net income riders; the average UZS)
value of their own funds.
Indicators of storage companies and with the indexes of their productivity while
considering duties.
The effectiveness of the Liabilities corresponding
=
liabilities () to the total revenues in 1
Q - the volume of production (total UZS
sales); Average value of
liabilities .
The profitability of the 100 The liabilities of change
liabilities () = (the amount of liabilities

the amount of net income ; corresponding to the net
Average value of liabilities. profit of 100 soums)
It is vivid from the given data that, while recognizing productivity of storage and products all suggested
mathematical formulas. Moreover, the way of the categorizing of productivity and efficiency are similarly
mentioned relevantly as whole. It is whispered that each of the above-mentioned directions possible to
advance economic efficiency (Dubovyk et al., 2013).
Changes on results derives conception of joint impression in efficiency. Assumptions and conventions
are conducted in the article, proves integration of companies with the request of the collaboration. As it is
obvious, providers of the services have different type of property and activity type of them is various, that
proves complexion of this stages (Ministry of Foreign Affairs of the Republic of Uzbekistan Uzbekistan and
international organizations, 2015).
Implementation of the interaction is integrated in dissimilar areas of the industries. Yet, the way of its
transmission could show better results with further investments. Outcome of our research indicates following
proposals on storing and selling researches settled with scientific and theoritical suggestions.
1. Identified evaluation companent of effective storing and selling. Measurement of this trend
calculated with following formula :
W
= ;
Q
In this formula
the rate of efficiency of storage products ;
W the benefit gained from food storage;
Q the natural quantity of storage products .
2. Sum of the profit (W) gained through storing of products also identified under investigations. Following
mathematical measurement measures it.
= {(( F) Ph) (Q Pb)};

Special issue
In the above formula

Q the natural quantity of storage products.
F the natural reduction of products during storage and selling proccess ;
Ph the price of product after storage;
Pb the price of product in time of storage.
3. Storing effeciency was chosen in order to identify effeciency. But from another persective, transport
expenditures should be calculated too. Nevertheless, strict system was not orginized to calculate this feature.
Carring stored apple could be calculated by following including transtport services.
W
u = ;
Q
In this formula
Ccu Overall rate of efficiency of storage food in term of storage;
the total quantity of spending of carrying apple from garden to storage, and from storage to distribution
destination.
Total efficiency (Wu) identified in the following stage with the diffusion of previous equitation
Wu = {(( F) Ph) (Q Pb)} Tx
Sequence of this mathematic formula could be calculated in a diverse excessively:
{((Q F) Ph) (Q Pb)}
= = ;
Q Q
In the practical diffusion, these formulas could be calculated in order to classify rate of efficiency, which
consequently lead to managerial decisions.
CONCLUSION
In the sustainable development of developing countries such as Uzbekistan, economic integtration among
individuals considered as a principle factor to acquire better results. In the way of deployment, economic
effeciency of the enterprises could be increased with better results. Conducted analitical and theritical
investigations conluded various possibility of theoritical definitions with real samples.
Analytical definitions and their implecations on rural regions of Uzbekistan have diffused on the
paper. Better storage cycle through synergetic collaboration have applied as in previous studies was
investigated on the mentioned case under From garden to tablemate methodological concept. The way of
planting in agricultural sphere and process of distributing to consumers could be orginized with better
effeciency while using synergetic integration among individuals and enterprises(John Jay Hall, 2014).
Methods and mathematical equatations of the definition prove the need of this technique on
economics. Further investigations of this technique may easyly identify the ways of it in a various sub-sectors
of economy. Outcomes of this paper anylyses could open new doors of opportunities for the further
deployment of From garden to tablemate through academic perspective, that cover totally in all branches of

economics. Suggestions may serve further investigation of this term with better diffusion on economic life of
individuals (Bobojonov et al., 2013).
REFERENCES
Sustainable Food Systems, 37(7), 788811
Cost Synergy Definition. (2015.). Retrieved 18 March 2015, from http://www.investopedia.com/terms/c/costsynergy.asp
Dubovyk, O., Menz, G., Conrad, C., Lamers, J. P., Lee, A., & Khamzina, A. (2013). Spatial targeting of land rehabilitation:
A relational analysis of cropland productivity decline in arid Uzbekistan. Erdkunde, 167181
FAO - detail: International Conference - The most important reserves of implementing the Food Program in Uzbekistan.
(2014). Retrieved 19 March 2015, from http://www.fao.org/about/who-we-are/director-gen/faodg-
statements/detail/en/c/234037/
FAO Director General considers the Food Conference in Uzbekistan as a landmark event in the expansion of agricultural
production - Uzbekistan News - UzReport.uz. (2014.). Retrieved 19 March 2015, from
http://news.uzreport.uz/news_4_e_120826.html
Fuller, R. B., (1975), Synergetics: Explorations In The Geometry Of Thinking, in collaboration with E.J. Applewhite.
Introduction and contribution by Arthur L. Loeb. Macmillan Publishing Company, Inc., New York.
Food Independence Important Factor of Wellbeing, Stability, Prosperity (2014). Retrieved 19 March 2015, from
http://www.press-service.uz/en/document/4967/
Goffee,R. & Jones, G. (2013). Creating the best workplace on the earth. Harvard Business Review, 99-106.
Hertzberg, R. C., and MacDonell, M. M. (2002). Synergy and other ineffective mixture risk definitions. Sci Total Environ
288, 31-42.
Information Agency Jahon. (2014). Retrieved 19 March 2015, from
http://www.jahonnews.uz/eng/sections/economy/international_exhibitions_in_the_food_production_and_agricultural_indus
tries_took_place_in_tashkent-46565.mgr
John Jay Hall. (2014, December 4). In Wikipedia, the free encyclopedia. Retrieved from
http://en.wikipedia.org/w/index.php?title=John_Jay_Hall&oldid=636672819
Ministry of Foreign Affairs of the Republic of Uzbekistan Uzbekistan and international organizations. (2014.). Retrieved
19 March 2015, from http://mfa.uz/en/cooperation/international/1226/
Media Synergy see Linden Dalecki's article in Northwestern's Journal of Integrated Marketing Communications (2008)
Peter A. Corning, The Synergism Hypothesis: A Theory of Progressive Evolution, New York, McGraw Hill 1983 ISBN 0-
07-013166-X; Peter A. Corning, Holistic Darwinism: Synergy, Cybernetics and the Bio economics of Evolution,
Chicago,University of Chicago Press 2005 ISBN 0-226-11613-1;Synergy and self-organization in the evolution of complex
systems.
President Karimov Meets with FAO Chief. (2014). Retrieved 19 March 2015, from http://press-service.uz/en/news/4966/
R. Buckminster Fullers Synergetics. Retrieved 18 March 2015, from
http://www.rwgrayprojects.com/synergetics/toc/status.html
Raupova, O., Kamahara, H., & Goto, N. (2014). Assessment of physical economy through economy-wide material flow
analysis in developing Uzbekistan. Resources, Conservation and Recycling, 89, 7685.
Song, X., Frostell, B., & Gadaev, A. (2013). UZWATER Tempus project: The study visit to KTH, Royal Institute of
Technology, with focus on Master Thesis Work. Retrieved from http://www.diva-
portal.org/smash/record.jsf?pid=diva2:758745
Search results. (2015, March 14). In Wikipedia, the free encyclopedia. Retrieved from
http://en.wikipedia.org/w/index.php?search=synergy+in+economics&title=Special%3ASearch&go=Go
Stan Laura-Melinda, The Necessity to Exploit the Economic Network's Synergistic Potential, LAP LAMBERT Academic
Publishing, Saarbrcken, Germany, 2011, p. 3-4
... // . , 1999. p. 906
. Retrieved 18 March 2015, from
http://www.encyclopedia.ru/cat/books/book/9176/
.. .
. .: - ,
2008. p. 27

Special issue
http://ijecm.co.uk/

Uzbekistan
SOCIAL POLICY AND FOUNDATION OF FAVORABLE SOCIAL

CLIMATE SECURITY IN UZBEKISTAN
Zaynalov Djahongir
Professor, The chief of Financial and Insurance services department,
Samarkand Institute of Economics and Service, Uzbekistan
dz50@mail.ru
Khusanov Bakhodir
Professor at Financial and Insurance services department,
baxodir.sh@mail.ru
Rasulov Zokir
Professor at Financial and Insurance services department,
zokir033@mail.ru
Abstract
Uzbekistan as one of the developing country has been revealing significantly in order to enhance economic
diversity of its sectors throughout its socio-economical points. Policy of society and climate of its security is
considered as a vital feature of economic deployment in the country. On this basis, paper investigates

structural and political foundation of social layers with its current status as whole. In Uzbekistan, a number of
government measures provides the solution to this problem, among which an important place belongs to the
guardianship. Strategic steps promoting Uzbekistan as a dynamically developing country should be seen in
the dynamic development of society, a society in which are surrounded by care and attention of the people,
society, which provides a high quality of life. Furthermore, it demonstrates analyses of economy as whole,
which may serve as a further instruction for investigations.
Keywords: Social security, Finance, Economy of Uzbekistan, Structural deployment
INTRODUCTION
Social policy is reliant on many factors, including either external or internal factors to the country's
environment that is considered as a key indicator of balance and economic development. The current stage of
formation and development of social policy is characterized by the increase of resources allocated to social
security of the population ( -
).
Politics, due to social security is the policy of the state that its actions to mitigate the negative consequences
of individual and social inequality, social and economic upheavals in society.
Problems of social security remain relevant at all times, regardless of the level of socio-economic
development of a society, because the social security system must guarantee the stability of its
development(Schwarz, 2003).
However, on the path of market transformation of social security of the population is a key objective of
social policy which is the most important factor in quality growth and in living standards(Asadov & Aripov,
2009).
The aim of employment policy is to promote full, productive and freely chosen employment through
training, professional development, expanding the scope of public employment services and the
implementation of other measures aimed at ensuring the social protection of the population. All social
processes of social policy in a single national economy that may affect by global environmental conditions in
connection with the progressive globalization(Cox & Mason, 1999).
POLICY OF SOCIAL SECURITY: CASE OF UZBEKISTAN

Today it is difficult to overestimate the importance of social security policy, wherever this policy was carried
out in this area. Social policy is dependent on many factors, including by factors external to the country's
environment is a key indicator of balance and economic development. Thus, the current stage of formation
and development of social policy is characterized by the increase of resources allocated to social security of
the population. Social policies should ensure a high quality of life and high levels of income (Mukhamedov,
2002).
However, social security is the policy of the state that its actions to mitigate the negative
consequences of individual and social inequality, social and economic upheavals in society. Problems of

Special issue
social security remain relevant at all times, regardless of the level of socio-economic development of a
society, because the social security system must guarantee the stability of its development(Van Assche &
Djanibekov, 2012).
However, on the path of market transformation of social security of the population is a key objective of
social policy - the most important factor in quality growth in living standards. We need to rethink the fact that
the task of qualitative growth of welfare of the population can only be solved taking into account the efficient
use of resources of the budget (including off-budget special funds) to social security (see. Fig 1) and is
determined by the system as a set of measures, including:
Figure 1. Security components of Uzbekistan
Stable stimulation, paid employment ;
Preventation and payment of the income ;
Providing social assistance intended for

vulnerable groups not party to the social security
system;
Access citizens to education and health care
As it is mentioned above, stable stimulation on employment, income and its security, various types of
programs provided by both public and private groups with access for basic need such as education and
health care is considered as vital feature of development from economic perspective. Moreover, have been
done a numerous steps for the enrichment of citizens in places. Contractions and new small business
enterprises, entertainment facilities and amenities on different areas, health checkups in regions and others
are obvious on this way. This is revealed on the statistic demonstration of economy as whole. Table-1
indicates implementation of state budget in Uzbekistan with overall digit analyzes of sub-sectors.

Table 1. Implementation of state budget of Uzbekistan for 2011-2014
Indexes (Milliard sums) 2011 2012 2013 2014

I. INCOME (without any funds) TOTAL 17061,3 21295,7 26223,2 31730,5
1. Direct taxes 4497,0 5414,2 6353,7 7433,0
1.1 Advance corporation tax 861,6 1001,1 1038,8 1120,2
Contributions to the state budget from the single tax
1.2 561,4 645,9 832,6 954,4
payment for trade and public catering
Contributions to the state budget from the single
1.3 480,2 588,2 755,0 967,9
tax payment, including micro and small enterprises
1.4 Income tax on individuals 1919,1 2301,8 2717,3 3261,7
1.5 Fixed tax on certain types of business 225,0 317,3 415,6 553,1
The tax on improvement and development of
1.6 449,6 559,9 594,4 575,7
social infrastructure
2. Indirect taxes 8225,0 10434,5 13398,6 16852,3
2.1 Value added tax 4761,4 5966,6 7552,5 9476,1
2.2 Excise tax 2541,8 3175,9 4168,2 4941,1
2.3 Customs 516,3 759,7 1007,4 1350,0
Income tax from individuals on consumption of
2.4 405,4 532,4 670,5 1085,1
gasoline, diesel fuel and gas for vehicles
3. Resource payments and property tax 2626,2 3312,5 3888,2 4311,5
3.1 Property tax 571,5 736,1 1011,6 1273,7
3.2 Land tax 437,2 486,3 583,4 647,5
3.3 The tax for the use of mineral resources 1555,0 2016,3 2190,9 2275,6
3.4 The tax for the use of water resources 62,4 73,9 102,4 114,7
4. Other income 1713,1 2134,4 2582,7 3133,7
. EXPENSES (without the any funds) - TOTAL 16726,0 20882,0 25833,7 31425,4
Expenditure on social sphere and social support of
1. 9704,9 12299,9 15167,8 18493,7
the population - all
of them:
1.1 Education 5582,9 7130,4 8803,3 10673,5
1.2 health care 2226,7 3024,9 3709,9 4507,2
1.3 Culture and sport 185,3 223,4 287,4 361,5
1.4 Science 108,8 137,4 164,7 187,0
1.5 Social Security 72,2 86,9 106,4 126,2
Social benefits for families, including those
1.6 with children 1378,4 1617,2 1611,3 1805,0
The credit line for financing the program of
1.7 374,7 706,7
individual housing construction in rural areas
Funds and grants for the development of NGOs,
2. 5,0 6,0 7,0 8,2
NGOs and civil society institutions

Special issue
3. Expenses on economy 1931,6 2317,0 2756,7 3363,3

4. Expenses for financing of centralized investments 1096,1 1131,7 1439,5 1616,5
The content of public authorities, and court
5. 629,6 852,8 1150,7 1414,2
administration and self-government bodies
6. Other expenses 3358,7 4274,6 5312,1 6529,4
Deficit (-), Surplus (+) State budget 335,3 413,6 389,5 305,1
It is believed that in Uzbekistan, welfare and development of its financial instruments is not without
interference from the state, which is in a crisis the nature of their activities is both an element of market
mechanisms, and the stabilizing factor of social development(Crosa, Stefani, Bianchi, & Fumagalli, 2006).
Considering the social priority, the President of the Republic of Uzbekistan drew attention to the
social indicators of economic events occurring in the world. Therefore, amid the unprecedented wealth holds
poverty. Nearly half of the world's population is forced to live in poverty, receiving $ 2. US per day, and 1.2
million people survive on less than $ 1 US dollars a day. From the total workforce in the world (about 3
billion.) - 40 million workers do not have jobs.
We have to admit that the dynamic development of the economy of the Republic of Uzbekistan has
created a stable ground for the transparent development of standards and quality of life of the population.
Salaries of employees of budgetary institutions, pensions and scholarships for 2014 increased by 23.2%, real
income per capita increased by 10.2%.
STATUS OF SOCIAL POLICY IN UZBEKISTAN

The country is not a sharp stratification of the population by income level. The level of diversification in the
income of the population from 2000 to the present time decreased from 53.3 times to 7.8 times at the
threshold of 10, which is the criterion of social stability. It should be noted that the rate of the Gini index in
Uzbekistan for years of independence has decreased from 0.40 to 0.296, that in terms of international
standards threshold located, on the recommendation of the United Nations, within 0,35-0,37 indicates steadily
growing social welfare of the population (Bank, 2015).
All of this points to the need to solve the problem, having the character of law:
simplicity or reduction of state control over the activities of small businesses and
entrepreneurship, the abolition of mandatory state order, full liberalization of prices;
changing nature of government property by passing on the various conditions the economic
operators, who use it in further economic activity and have full financial responsibility for its
results;
establishing innovative mechanisms of economic relations;
increasing competition;

modernizing the internal structure of the social sphere in the direction of advancing the
development of products and services that are in demand in domestic and foreign markets;
extension of targeted social support system, both from the government and enterprises, the
stabilization of the financial system to ensure social and transition to the micromanagement of
its branches.
Referring to this, President Islam Karimov noted, "The focus has always been and still are the issues related
to the steady growth of prosperity, living standards and quality of life." I must admit that the task is a natural
character, dependent on the expansion of targeted social support of the population(Fumagalli, 2007).
Annex 2. Social security systems

The largely quantitative measures of social
protection are determined by the level of
State economic development. Based on the
benefits
analysis of market experience of developed
Social Social countries, we can conclude that the most

assistance insurance effective and comprehensive social security
systems usually include the basic elements
(see Figure 2.) Social security in the
Republic of Uzbekistan organized a
disability, survivor, and social protection of
Social
Pensions unemployed persons in age.
protection
Citizens of the Republic, foreigners and stateless persons permanently residing in the territory of the
Republic, upon the occurrence of risky cases, according to the current statute, obtain government benefits at
the same level, regardless of labor force participation and contributions, unless otherwise provided by laws
and international treaties. Now, because of the lack of standards developed by the calculus of social benefits,
the relationship with the system of wages lost an adequate connection between the income of the working
population and receive social benefits(Anonymous, 2014b).
As a result, some of the elements of social security has become a subsidy, in particular, the pension
fund each year is supplemented from other sources (from the budget, the Employment Fund and others.). An
important element of the social security system becomes the social protection of the population. The
implementation of the program of employment and re-training of the participating States and entrepreneurs.
For example, in America, the company spent annually on these measures 30 billion US dollars. The state is
spending for programs of retraining most of the money. By the end of the 90s in the US were retrained and

Special issue
trained about 50 million people. In order to create new jobs State assumed as the performance of such public
works as roads, sewage systems, etc. During the economic crisis, the government increases investment in
state-owned enterprises. Employment programs are also being implemented by the preferential tax treatment
of companies that create jobs. Nationally, the modern state to reduce the army of unemployed trying to
regulate fees at such a level that its growth rate was lower than the growth in labor productivity. For this,
"incomes policy", an active monetary policy, etc. Private firms, trying to make sure that the level of labor
productivity outpaced the growth of labor payment and the greatest success achieved in the United States,
use this policy.
In social policy, special attention should be problems of employment and social protection of the
unemployed. The aim of employment policy is to promote full, productive and freely chosen employment
through training, professional development, expanding the scope of public employment services and the
implementation of other measures aimed at ensuring the social protection of the population(Abramson, 1999).
Important in a system of social protection of the unemployed are active and passive measures. The
former include the training and retraining of the unemployed, organization of public works and the creation of
new jobs. Regarding the latter, it is noted that, in Uzbekistan, as of January 1, 2015 were registered 273.6
thousand legal entities. From which operating - 246.7 thousand units or 90.2 percent of the total number of
registered legal entities (see. Table 2).
Sector-wise, the highest number of enterprises and institutions was registered in trade and catering (
28,1 percent of total registered), industry (17.3 percent), construction (8.9 percent), agriculture and forestry
(8.3 percent).
Table 2. The distribution of registered and operating enterprises and organizations by branches of economy,
as of January 1, 20151
Registered Operating
thousand thousand
units In total % units In total %
Total 273,6 100,0 246,7 100,0
From them:
Industry 47,4 17,3 42,8 17,3
Construction 24,4 8,9 21,3 8,6
Agriculture & Foresting 22,6 8,3 19,9 8,1
Transport & Connection 11,0 4,0 9,8 4,0
Other types of industry 22,7 8,3 20,0 8,1
Trade & catering 76,9 28,1 67,2 27,2
Non manufactured types of domestic service 3,8 1,4 3,4 1,4
1
2014

Registered Operating
thousand thousand
units In total % units In total %
Healthcare, sport, physical training 11,1 4,1 10,7 4,3
Education, culture, science and scientific service 21,9 8,0 21,4 8,7
Other excluded industries 31,8 11,6 30,2 12,3
The total number of registered enterprises and organizations of non-state ownership share of 85.6 percent,
including 33.1 percent - private enterprises, 1,8 percent - enterprises with participation of foreign capital, 50,7
percent - other enterprises.
In January-December 2014 newly registered 26.9 thousand enterprises and organizations (including
26.0 thousand. - Small businesses). A significant number of newly established enterprises and organizations
of the city of Tashkent (24,4 percent of total registered enterprises in the republic), Tashkent (9.9 percent),
Fergana (8.6 percent) and Samarkand (7.5 percent) regions. In the sectoral structure of newly registered
enterprises and organizations in the share of trade and catering 28.3 percent, industry - 24.0 percent,
construction - 11.7 percent (- , 2015).
In the reporting period was eliminated 20.0 thousand. Companies and organizations, including 5.8
thousand using the procedures of voluntary liquidation. Of course, this phenomenon is not passed in vain.
This led to a slight reduction of jobs, influence social segments are temporarily exempt from the work of
individuals, although the gaps were offset by newly created small innovative enterprises, enterprises with
foreign capital (MacDonald, 2013).
The second includes employment assistance, benefits, and providing financial assistance to the
unemployed. I would also like to note that the number of employed in the economy amounted to 12 million
818.4 thousand people and increased by 2.4% compared with 2013 year. Significant growth of employment
was observed in agriculture (3.9%), trade, catering, sales and procurement (by 3.8%), housing and communal
services and non-productive types of public services (3.7%), transport and communication (3.6%),
construction (3.4%). The employment rate of the economically active population (the ratio of the number of
employed in the economy of the economically active population) was 94.9%. The share of employment in the
private sector reached 81.9%, against 81.3% in 2013. The number of citizens registered through labor
agencies as job seekers in 2014 was 3,400 people, which is 36.6% less than in 2013 (5,400).
The number of unemployed at the end of the year amounted to 687 thousand people, the
unemployment rate - 5.1% of the economically active population. All this gives grounds to take decisive action
to increase more jobs with decent wages. It is of great social importance for the life of the population as a
whole ((Uzbekistan), 1995).

Special issue
FUNDAMENTALS OF SOCIAL SECURITY

The transition from the first to the second, of course, dictated by financial considerations. Employment and
unemployment rates are controlled by the state. Much easier is to suspend the activities of the company and
free up working without pay, than to establish the company in the normal operation mode. For instance,
reduction of wage arrears to workers is one of the prove on this basis. Lack of motivation and revenues at the
main place of work shall be compensated state compensation(Abdullaev, Konya, & others, 2014).
The Law of the Republic of Uzbekistan "On the State Fund for Employment" is more clearly defined
the status of unemployed, which is related to the working population, the basic principles of employment
policy and state guarantees. In addition, the law says about securing additional government guarantees for
citizens who need social protection, rights and responsibilities in employment, registration and accounting,
control and reporting. The Law "On Employment" provides assistance in job placement, vocational training,
skills development; retraining and public works for the unemployed; pay the unemployed engaged in public
works; the provision of targeted social assistance to the unemployed among the poor citizens in accordance
with the legislation. Nevertheless, this law does not say about the hidden unemployment and measures of its
regulation, is not provided unemployment benefit, although in many countries they exist ( Karimov, 1998).
In the social policy of the Republic of Uzbekistan occupies an important place public pension, which is
regulated by the state. It is also considered as a part of social security. The size of the pension depends on
the level of socio-economic regime and legislation.
Since 1998, pension system in Uzbekistan has moved from the distribution on cumulative
performance. The pension fund held 25% of payroll employees. When pension system establishes a
connection between the individual contribution and pension payments. Accumulative Pension Fund could
become a major source of investment. The size of the labor pension is linked to employment, it depends on
the length of employment and the size of the salary before retirement. The source of financing is a system of
social insurance (Kandiyoti, 1998).
Pensions are designed to ensure a minimum means of subsistence and are paid from the Pension
Fund and the Road Fund. In addition, the state budget at a low value of per capita income, not the occurrence
of the Pension Fund deficit ( -
).
According to the degree of social protection in Uzbekistan pensioners are better off segments of the
population, in spite of this, now the existing methods of renovation pensions are imperfect, so that their sizes
are citizens of the same qualifications, who have made equal labor contribution, but emerged at different
times of retirement, are very different. This person receives a fixed income, were at a disadvantage.
With the retirement of people, tend to live by themselves, or lower standards of living than before
retirement. Previously, in order to fill up the budget, many retirees hired again. At the present time, because of
unemployment it has become problematic. Even while maintaining the work, regardless of the size of salaries
and pensions reduced by 50%.
By disadvantaged population are children without parental care. In our country, a number of public
events provides the solution of this problem, among which an important place belongs to the guardianship.

The goal of both institutions is the safety and protection of the rights of children deprived of parental care and
upbringing in a family environment.
Concerning this, it should be noted that the assistance provided to children in need of care, diverse. It
is carried out through an extensive network of governmental and public childcare centers, where the
necessary conditions for the education of comprehensively developed and active members of society. Here
are important laws related to the targeted social assistance, the main principle of which should be providing it
in the form of cash payments(Egamberdieva et al., 2008).
The system of targeted social assistance should include four types of benefits:
Housing assistance;
Disabled children who are educated at home

Allowances to unemployed mothers with four or more
children up to 7 years
Extra cash to the features of the minimum wage
Targeted social assistance should be aimed at certain specific groups of citizens according to their necessity
social help need to be actually provided. For instance, in education, the government introduced a system of
study grants. College had the opportunity to train students on a contract basis, also operate private
institutions whose activities, although it is under the control of the State, to undertake specific targeted
assistance to vulnerable groups. There was a change in the health sector, which is believed as a main
indicator for inhabitants. They open and operate private clinics that provide paid medical services to the
population, in some cases it is organized free of charge.
PROPOSALS AND ANALYTICAL SUGGESTIONS

In the Republic of Uzbekistan in the social protection system acts as an important element of social
insurance, which includes medical and industrial accidents. Nevertheless, it is required to legalize the
unemployment insurance. Social insurance and other social features are focused as an objective necessity.
At a certain stage of development of society takes up the defense of individuals who for some reason cannot
work and receive pay for work.

Special issue
A sound social security system - one of the prerequisites for social justice, establishing and maintaining social
stability. It should be noted the particular importance of social security and its impact on social processes. The
government in many countries creates a system of compulsory state social insurance, enabling a significant
concentration of resources in a single fund and thus provides a reliable social protection of the population. In
a special social support for vulnerable people in need: people with disabilities, mothers with many children,
orphans (Anonymous, 2014a).
In Uzbekistan, there is currently no system of compulsory social insurance, which would include the
implementation of additional security employees in the event of social risks. Social risk - occurrence of the
event and (or) loss of job, loss of a breadwinner, which resulted in the party system of compulsory social
insurance for whom social contributions, or in the event of the death of family members, his dependents, will
acquire the right to receive social benefits in According to the current legislative act.
However, the list of persons subject to mandatory social insurance include employees (except for
working pensioners) and self-employed persons, including foreigners and stateless persons permanently
residing in the territory of the Republic of Uzbekistan and implementing income-generating activities in the
territory of the Republic of Uzbekistan.
Health and pension insurance in developed Western countries is carried out by deductions from
wages and profit in the same amount. VSSHA, for example, for this purpose from the wages of employees
held 7.5%. In Sweden, the social funds are formed entirely by the state. In Japan, the payments for social,
health and pension insurance is 7% of the average salary of the employee. Means quiet funds accumulated
by special means, which include representatives of workers and employers. Unemployment insurance is
available from a special insurance fund. The amount of payments depends, first, on the duration of
unemployment, and secondly, the specific conditions of a country. In the first case, the maximum payout
(from 50 to 70% of the average wage) are paid in the first months of unemployment for a certain period.
Further, the amount of payments reduced. In the second case are taken into account the period of
employment, work experience, physical fitness for employment, while providing aid and others. For example,
in Germany, work experience must be at least 6 months for three years and at least 10 weeks during the last
year of loss operation. In France, such a condition is to work for 150 days a year and 91 days of insurance. In
the UK, it is taken into account only the payment of contributions to the insurance fund: within a year, there
should be 26(Smit & Pilifosova, 2003).

Figure 3. Social insurance
Activities to Health
prevent insurance
accidents
Insurance
againts Unemployment
accidents at insurance
work
Social insurance as a special form of social protection of citizens is used as an independent mechanism for
the accumulation of funds (for example, for the individual functions of social protection). It includes mentioned
categories as whole (see Fig 3).
In this regard, Uzbekistan state compulsory social insurance should be submitted three funds:
- Pension;
- Required Health insurance;
- Social security.
From our point of view, the formation of these funds can be carried out by special contributions to extra-
budgetary funds by means of the unified social tax.
CONCLUSION
Social priority should be marked as one of the key, the practical implementation of which will allow Uzbekistan
to qualify for a place in the group of countries belonging to the top of the world rankings table. At the same
time, special attention should also be paid to the problems of strengthening care and attention, providing
material and moral support to the people of the older generation, the solution of the existing problems
concerning the life of the elderly. As is known, in 2015 in Uzbekistan has been declared the Republic of
Uzbekistan Islam Karimov the President of the "Year of attention and care for the older generation(-
, )."
In this regard, the state program implemented measures to provide adequate attention and
comprehensive support to older people, increase the level and quality of health and social services,

Special issue
supporting software needs and technical means and rehabilitation, etc. in order to ensure their well-being and
dignity of older people, surround them with care and attention.
At the same time, the strategic steps of promotion of Uzbekistan as a dynamically developing country
should be seen in the dynamic development of society, a society in which are surrounded by care and
attention of the people, society, which provides a high quality of life.
Finally, as an independent country Uzbekistan has been retrieving significantly in the development of
the country as whole. These directed measures need to be analyzed in the further way of the investigations in
order to provide deep and suitable conclusions.
REFERENCE
Abdullaev, B., Konya, L., & others. (2014). Growth Maximizing Tax Rate for Uzbekistan. Applied Econometrics and
International Development, 14(1), 5972.
Abramson, D. (1999). A critical look at NGOs and civil society as means to an end in Uzbekistan. Human Organization,
58(3), 240250.
Anonymous. (2014a, August 12). Uzbekistan and ADB [Text]. Retrieved 16 September 2015, from
http://www.adb.org/countries/uzbekistan/main
Anonymous. (2014b, August 12). Uzbekistan: Publications and Documents [Text]. Retrieved 16 September 2015, from
Asadov, D. A., & Aripov, T. Y. (2009). The quality of care in post-soviet Uzbekistan: are health reforms and international
efforts succeeding? Public Health, 123(11), 725728.
Cox, T., & Mason, B. (1999). Social and Economic Transformation in East Central Europe: Institutions, Property
Relations, and Social Interests. E. Elgar. Retrieved from
http://www.unrisd.org/__80256b3c005bccf9.nsf/0/13b89f13d7e6ac8180256b670065ee7d?OpenDocument&cntxt=4158E&
cookielang=fr&Click=
Crosa, G., Stefani, F., Bianchi, C., & Fumagalli, A. (2006). Water security in Uzbekistan: implication of return waters on
the Amu Darya Water Quality. Environmental Science and Pollution Research, 13(1), 3742.
Egamberdieva, D., Kamilova, F., Validov, S., Gafurova, L., Kucharova, Z., & Lugtenberg, B. (2008). High incidence of
plant growth-stimulating bacteria associated with the rhizosphere of wheat grown on salinated soil in Uzbekistan.
Environmental Microbiology, 10(1), 19.
Fumagalli, M. (2007). Ethnicity, state formation and foreign policy: Uzbekistan and Uzbeks abroad. Central Asian Survey,
26(1), 105122.
Kandiyoti, D. (1998). Rural livelihoods and social networks in Uzbekistan: perspectives from Andijan. Central Asian
Survey, 17(4), 561578.
Karimov, I. A. (1998). Uzbekistan on the Threshold of the Twenty-first Century: Challenges to Stability and Progress.
Macmillan.
MacDonald, S. (2013). Economic Policy and Cotton in Uzbekistan. BiblioGov. Retrieved from
http://162.79.45.195/media/935015/cws12h01.pdf
Mukhamedov, R. (2002). Geopolitical Approaches: Gas Policy of Uzbekistan toward Kyrgyzstan. Biweekly Briefing from
Central AsiaCaucasus Analyst, 24. Retrieved from http://www.cacianalyst.org/publications/field-reports/item/7300-field-
reports-caci-analyst-2002-4-24-art-7300.html
Schwarz, A. (2003). Old age security and social pensions. Unpublished Report. Washington, DC: World Bank, Social
Protection Unit. Retrieved from
http://info.worldbank.org/etools/docs/library/78330/3rd%20workshop/srmafrica/paristwo/pdf/readings/oldage.pdf
Smit, B., & Pilifosova, O. (2003). Adaptation to climate change in the context of sustainable development and equity.
Sustainable Development, 8(9), 9.
(Uzbekistan), U. (1995). Uzbekistan Human Development Report. UNDP.

Van Assche, K., & Djanibekov, N. (2012). Spatial planning as policy integration: The need for an evolutionary perspective.
Lessons from Uzbekistan. Land Use Policy, 29(1), 179186.
- . (2014.-a). Retrieved 16 September
2015, from http://parliament.gov.uz/ru/constitution.php
- . (2014.-b). Retrieved 16 September
- :
. (2014.). Retrieved 16 September 2015, from http://mfa.uz/ru/press/elections/2014/12/3145/

Special issue
http://ijecm.co.uk/

Uzbekistan
DEPLOYMENT OF ECO-TOURISM IN CENTRAL ASIAN

TOURISTIC DESTINATION AND RATES OF SUSTAINABLE
TOURISM: A CASE OF UZBEKISTAN
Obidjon Khamidov
Service (Tourism) chair, International Tourism Faculty,
Tashkent State University of Economics, Uzbekistan
obidjon2006@yahoo.com
Ulugbek Hudayberdiev
Samarkand Institute of Economics and Service,
Universidad de Las Palmas de Gran Canaria, Spain
ulugbek.hudayberdiev-sies@rambler.ru
Abstract
Sector of tourism, which considered as an exponential growing branch of economy has improved the lifestyle
of people, make them to travel and expand new horizons. However, in the rise new century it has been
changed dramatically due to establishing new forms of tourism like eco-tourism in addition to already existing
traditional forms of sightseeing. This tendency increased by great interest of scientists and researchers who
dedicate their endeavors. This investigation scrutinizes this debate and specifically analyses the role of
leisure and tourism in globalization processes. These processes will be analyzed on a theoretical, empirical

as well as normative level. Central themes are transformations in leisure and tourism places; and the socio-
economic, technological, ecological and cultural determinants of change in Central Asia.
Keywords: Eco-tourism, Tourism in Uzbekistan, Green tourism, Central Asia, Sustainable development
INTRODUCTION
In recent years tourism has experienced continued advance and increased diversification becoming one of
the fastest evolving economic sectors in the world. Tourism is a main activity supporting an economic sector
that is responsible for 9% of global GDP. In recent years, it has seen noteworthy progress that is forecasted
to continue, especially in developing countries, which have seen a rate of increase in visitor arrivals that
considerably exceeds the world average. Tourism accounts for 29% of exports in services worldwide and for
many developing countries, it provides a remarkable, and sometimes the primary, source of foreign exchange
earnings(EHL/UNWTO Silk Road Strategy Initiative | UNWTO Silk Road Programme, 2013.).
Over the past six decades, tourism has continued to enlarge and diversify; it is now one of the leading
and fastest-growing economic sectors in the world. These dynamics have turned it into a key driver for socio-
economic progress in countries worldwide. For the last twenty years, the idea settled in that in all aspects of
contemporary life worldwide interconnectedness has amplified. Globalization has become one of the
catchwords of the late 20th and early 21st Century(IUTF-2014, 2014).
Tourism and leisure are seen as imperative causes as well as consequences of global
transformations. Tourism and leisure as a cause is supposed to induce global flows of people, ideas, images
and capital. Tourism and leisure as an effect result from an increasing global interconnectedness of
economic, technological and socio-cultural transformations. Global flows of capital, information and values
with accelerating developments in technology have intensified and prolonged the global distribution of
tourism, but also enmeshed the global and the local(Fifth International Meeting on the Silk Road., 2014).
However, beyond a general recognition of a real or perceived intensification of global
interconnectedness, there is a substantial disagreement as to how globalization is best conceptualized, how
one should think about its causal dynamics, and how one should characterize its structural consequences, if
any.
Currently, tourism is one of the major sectors in global trade and one of the main wealth creators for
many developing countries, especially in Asia, Uzbekistan as well. Deployment of tourism means jobs,
poverty eradication, gender equality, and the protection and promotion of our natural and cultural heritage.
The recognition of the significance and potential influence of tourism in regional expansion strategies and in
the global enlargement agenda is also charming an actuality.
In addition, tourism has been identified by the United Nations (UN) as one of the ten sectors to drive
the modification towards a Green Economy and was involved in the Rio+20. Furthermore, the Outcome
Document, as one of the sectors capable of making a significant contribution to the three dimensions of
sustainable development, has close linkages to other sectors, and can create decent jobs and generate trade
opportunities (UNWTO Annual Report 2013 | World Tourism Organization UNWTO, 2013).

Special issue
Tour potential of untapped destinations, Uzbekistan in particular can be key drivers in this process by
supporting Central Asian countries implementing tourism in an integrated manner, by providing guidance,
monitoring progress and mobilizing the necessary resources. Uzbekistan possesses many ancient
monuments that attracts flow of tourists from all over the world, especially eco-tourism is one of the attractive
segment. In particular, it flourishes on assets, such as the natural environment, a warm climate, rich cultural
heritage and plentiful human resources, in which regions have a comparative advantage(Abramson, 1999).
However, tourism can also be a source of environmental damage and pollution, a heavy user of scarce
resources and a cause of negative change in society. For these reasons, it is imperative for it to be well
planned and managed, embracing the principles of sustainable tourism, defined as tourism that takes full
account of its present and future economic, social and environmental impacts, addressing the needs of
visitors, the industry, the environment and host communities(Bank, 2015).
Sustaining the natural and socio-cultural resource base of destinations while the tourist numbers are
constantly rising and tourism facilities are being expanded to all regions of the world is a major challenge. At
the same time, the concept of sustainable development has become widely accepted as the way to a better,
more human and socially responsible future. There is a growing belief that eco-tourism can play a significant
role in sustainable development in the tourism industry of Uzbekistan. As well as, ecotourism is considered to
be one of the fastest increasing fragments of the tourism industry in Central Asian region. UNWTO and
officials of Uzbektourism national company that administrates countries tourism industry have claimed that
ecotourism is growing by 25% to 30% a year (Hassan, 2000; Jones, 2005; Pforr, 2001; Sharpley, 2006;
Wood, 2002) and most tourism forecasters predict ecotourism to raise further over the upcoming years, driven
by consumer concerns over environmental and climate changes. On this basis, sustainable tourism is tourism
that biases on nature, environment and heritages of Central Asian states (Mller & others, 2006).
Sustainability principles refer to the environmental, economic and socio-cultural aspects of tourism
development in the region, and a suitable guarantee of its long-term sustainability should be established
within subsequent features according governmental policy of Uzbekistan:
make optimal use of environmental resources that constitute a key element in tourism enlargement,
maintaining essential ecological processes and helping to conserve natural resources and
biodiversity;
respect the socio-cultural authenticity of host communities, conserve their built and living cultural
heritage and traditional values, and contribute to inter-cultural understanding and tolerance;
ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders
that are fairly distributed, including stable employment and income-earning opportunities and social
services to host communities, and contributing to poverty alleviation.
Sustainable tourism should also maintain a high level of tourist satisfaction and ensure a meaningful
experience to the tourists, raising their awareness about sustainability issues and promoting sustainable
tourism practices amongst them. A clear distinction should be made between the concepts of ecotourism and
sustainable tourism: The term ecotourism itself refers to a segment within the tourism sector with focus on
environmental sustainability, while the sustainability principles should apply to all types of tourism activities,

operations, establishments and projects, including conventional and alternative forms (Landau & Kellner-
Heinkele, 2001). The term sustainable tourism describes policies, practices and programs that take into
account not only the expectations of tourists about responsible natural resource management (demand), but
also the needs of communities that support or are affected by tourist projects and the environment (supply).
Sustainable tourism thus aspires to be more energy efficient and more climate sound (for example by using
renewable energy); consume less water; minimize waste; conserve biodiversity, cultural heritage and
traditional values; support intercultural understanding and tolerance; generate local income and integrate local
communities with a view to improving livelihoods and reducing poverty. Making tourism businesses more
sustainable benefits local communities, and raises awareness and support for the sustainable use of natural
resources(Anonymous, 2014).
ROLE OF SUSTAINABLE TOURISM AND CASE OF ECO-UZBEKISTAN

The Government of Uzbekistan has identified tourism as a priority sector for deployment. With the support of
global organizations, it decided to seek UNWTOs technical assistance in the formulation of a long term
National Strategy for the Sustainable Development of Tourism in Silk Road tourism destination. The Strategy
was approved in April 2011 and formally launched in September that year. On this way, nature based tourism
facilities have derived as a main facility source on tour packages of country. Role of ecotourism have
identified and considered as an untapped resource of tourism potential, which provide extraordinary and
attractive service types.
In 99th session of UNWTO, which was held in Samarkand on October 1-3, 2014, was observed
tourism potential of Uzbekistan both theatrically proved and practically advised. According to officials, the
main recommendations related to following features:
the need for a strengthened institutional and regulatory framework;
the creation of a consolidated and diversified tourism offer;
the strategic positioning of Uzbekistan within Silk Road tourism;
quality tourism services and enhanced tourism management;
creating an enabling environment for tourism investment in the country.
Concept also implemented the formulation of a new Eco-tourism Law for Uzbekistan, created a
national platform for the harmonization of tourism statistics and formulated pilot demonstration projects that
included a coastal management plan for Central Asian states. In order to guide implementation, detailed
methods identified priority actions for the recent years, possible sources of funding, lead implementation
agencies and a coordination, monitoring and evaluation framework for the implementation process (Karimov,
1998). All of the above negative aspects underline the need for tourism to be very carefully planned and
managed in developing countries. This requires governments to establish and implement clear policies on the
control and management of the sector, in conjunction with all tourism stakeholders (
- , 2014.). In order to progress the tourism
sector in a sustainable manner and enhance the local socio-economic impact from tourism, many Silk Road
tourist destinations have made tourism a priority in their national development policies, and are trying, with the

Special issue
support of donors and improvement organizations, to formulate and implement interventions to proliferation
tourisms impact to poverty reduction. According UNWTOs Definition of Sustainable Tourism: Tourism that
takes full account of its current and future economic, social and environmental influences, addressing the
needs of visitors, the industry, and the environment and host communities. Sustainability principles refer to
the environmental, economic, and socio-cultural aspects of tourism development, and a suitable balance must
be established among these three dimensions to guarantee long-term sustainability. Hence, sustainable
tourism should:
1. Efficient use of environmental resources that constitute a key element in tourism development, maintaining
essential ecological processes and helping to conserve natural heritage and biodiversity.
2. Respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage
and traditional values, and contribute to intercultural understanding and tolerance.
3. Ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that
are fairly distributed, including stable employment and income-earning opportunities and social services to
host communities, and contributing to poverty alleviation.
Sustainable tourism development requires the informed participation of all relevant stakeholders, as
well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable
tourism is a continuous process and requires constant monitoring of impacts, introducing the necessary
preventive and/or corrective measures whenever necessary.
Sustainable tourism should also maintain a high level of tourist satisfaction and ensure a meaningful
experience for tourists, raising their awareness about sustainability issues and promoting relevant sustainable
practices. (Source: UNEP and UNWTO, 2005.)
A fundamental characteristic of the tourism sector is its ability to link the economic, social, cultural
and environmental aspects of sustainability and to act as a driving force for their mutual enrichment. This is
because tourism as an economic activity is highly dependent on the presence of intact environments, rich
cultures and welcoming multitude communities. The opportunity that tourism brings to deliver income and jobs
from cultural experiences is just one example of this. In turn, this places a heavy responsibility on the sector
to address the social, cultural and environmental impacts of its own enlargements and operations (-
, 2014.).
Key Issues for Sustainable Tourism have been identified by UNWTO from many years of experience
in working on the sustainable deployment of the tourism sector. Recognized pillars cover the thematic areas,
which, could be addressed through future projects and interventions.
1. Tourism policy and governance that concerns the recognition of tourism in sustainable improvement
policies and the presence and implementation of a clear tourism strategy that embraces sustainability
principles. It looks at tourism governance structures, including tourism ministries and institutions. As
well as, their affiliations to other areas of government that affect its sustainability and performance. It
also deliberates the presence of structures and mechanisms for engaging public, private and third
sector stakeholders, including local communities, at diverse levels.

2. Economic performance, investment and competitiveness reflects the business and investment
environment and the position of trade liberalization in the tourism sector, including the consequences
for the local economy, small businesses and sustainability in general. It looks specifically at issues of
market access, product quality and the resilience of the sector. It recognizes the need for sound data
to inform tourism planning and management.
3. Employment, decent work and human capital. The role of tourism as a generator of employment is a
key aspect of its contribution to sustainable development. This pillar is concerned partly with the
planning of human resources to meet the needs of the sector and partly with the quality of jobs
provided, including conditions of employment. Skills assessment and provision of relevant training
and capacity building is covered as a definite theme.
4. Poverty reduction and social inclusion that focuses on the impact of tourism to poverty reduction. It
deliberates a strategic approach to pro-poor tourism at a destination level, employing methods such
as value chain analysis. It then considers specific initiatives to gain more benefit for the poor, based
on seven mechanisms identified by UNWTO, including strengthening local supply chains, working
with the informal sector, developing community-based initiatives and securing collateral benefits from
tourism.
5. Sustainability of the natural and cultural environment. The critically important relationship between
tourism and natural and cultural heritage is a key theme of this feature, considering policies and
actions to conserve the asset base, to manage tourism in sensitive areas and secure benefits from it.
Specific attention is paid to mitigation and adaptation of the tourism sector to climate change. Finally,
the use of mechanisms to improve the sustainability of tourism development and operations, and to
monitor impacts, is assessed.
In addition, key materials that are biased on the deployment of sustainable tourism especially eco-tourism.
While integrating features of the natural tourism in a whole following documents are believed as pivotal ones:
Development policies and strategies

Tourism policies, strategies and master plans
Policy and strategy documents relating to: Trade and investment; Human Resources,
including education and training; Environment and Natural Resources, including climate
change; Culture.
Tourism legislation (Tourism Bills, Acts, Laws etc.)
Other primary legislation affecting the sector: Labor; Planning/Environment
Annual Reports from Ministry of Tourism and tourism bodies (NTO, Associations)
Published statistics on the performance of the tourism sector
Promotional material and websites for the country.

Special issue
In addition to looking at the above documentation, the main process for undertaking the implication will
be through a series of officials. This will involve list of main stakeholder groups including in Uzbekistan:
Ministry of Tourism ( Uzbektourism Administrative Organization)

Official tourism bodies, e.g. National Tourism Organization
Other key Ministries including those responsible for development, finance, trade, employment,
environment, natural heritage and culture
Relevant government agencies, e.g. Environment Agency, Investment Promotion Agency etc.
Regional Authorities
Private sector tourism associations
Key NGOs working in the field of development, poverty, communities and environment
Universities and institutions engaged in tourism research and teaching.
Moreover, according to UNWTOs provided practical guidance on sustainable tourism to policy makers ,
included a summary of the priority issues for an agenda for sustainable tourism in relation to the economic,
social and environmental impacts of tourism. This provides a framework to assist the development of policies
for more sustainable tourism based on:
minimizing the negative impacts of tourism on society and the environment;
maximizing tourisms positive and creative contribution to local economies, the conservation of natural and
cultural heritage, and the quality of life of hosts and visitors.
Furthermore, Uzbekistan as a destination, which has not been untapped, retrieves great potential of
green tourism development. On this case, research concludes mentioned categories of sustainable tourism.
The twelve aims for an agenda for sustainable tourism are:
1) Economic viability
2) Local prosperity
3) Employment quality
4) Social equity
5) Visitor fulfillment
6) Local control
7) Community well-being
8) Cultural richness
9) Physical integrity
10) Biological diversity
11) Resource efficiency
12) Environmental purity
Source: UNEP & UNWTO, 2005.

It should be considered that the order in which these twelve aims are listed does not imply any order of
priority, what it reveals is each of this feature equals to vital relevancy. According company of Uzbektourism
defines ecotourism as:
Nature-based forms of tourism in which the main motivation of the tourists is the observation and
appreciation of nature as well as the traditional cultures prevailing in natural areas.
Containing educational and interpretation features.
Generally, but not exclusively, organized for small groups by specialized and small locally owned
businesses. Foreign operators of varying sizes also organize, operate and/or market ecotourism
tours, generally for small groups.
Minimizing negative impacts on the natural and socio-cultural environment.
Supporting the protection of natural areas by:
Generating economic benefits for host communities, organizations and authorities that are
responsible for conserving natural areas;
Creating jobs and income opportunities for local communities; and increasing awareness both among
locals and tourists of the need to conserve natural and cultural assets.
A precarious requirement of tourism policy in the context of tourisms role as an expansion tool is that it
should fully embrace the philosophies of sustainable tourism. This is defined as tourism that takes full
account of its current and future economic, social and environmental impacts, addressing the needs of
visitors, the industry, the environment and host communities. More specifically, pursuit of sustainable tourism
involves the following outline.
Many aspects of the sustainability agenda relate to ethical issues for tourism, concerning the rights
and responsibilities of all stakeholders participating in and affected by the activity of tourism(Fifth
International Meeting on the Silk Road (Samarkand, Republic of Uzbekistan) | UNWTO Silk Road
Programme).
Global ecotourism problems and its reflection on Uzbekistan Ecotourism
Local ecotourism problems
Strengths and treats of natural resources in order to become one of the eco-tourism destination in
Central Asia.
Moreover, ecotourism is considered as one of the vital one in order to develop both tourism and economy as
well. In this way, article provides benefits of green tourism in the following way:

Special issue
Economic viability
Local prosperity
Employment quality
Social equity
Visitor fulfilment
Local control
Community wellbeing
Cultural richness
Physical integrity
Biological diversity
Resource efficiency
Environmental purity
All in all taking into account of all the persuasive factors aforementioned, Uzbekistan as a major partner of
Silk Road tourist destination program could tackle various issues with the support of some international and
non-governmental organizations. In consequence, some shortcomings of tourism industry will be prevented
and some privileges could be provided for small businesses and entrepreneurship(EHL/UNWTO Silk Road
Strategy Initiative | UNWTO Silk Road Programme, 2014).
CONCLUSION
As tourism encourages infrastructure growth of the country, has a strong multiplication influence and helps
diversify the economy, supports local culture and crafts and environmental protection, which is actual for the
Republic of Uzbekistan with its transitional economy, whats more it is important as Uzbekistan is a country
with huge proficiencies in tourism. The travel and tourism industry is a principal export industry in worldwide,
Central Asian counties could contribute considerable as well.
Additionally, with enormous underused capabilities in tourism and diversity of tourist attractions
represent the potential of tourism in these tourism destinations. Location of the area, corridors on the Great
Silk Road, with cities, which were main points of trade, make destination attractive one for the flow of tourists

internationally. Accessibility of several tourism types, different traditions and unique cultural background of
Central Asia has considered as one of the leading key factor tourism and hospitality businesses.
After have been establishing and implying global experience, the attractiveness of tourism assessed
to become as one of the essential one in the Central Asian destination. Likewise, the optimization of visa
facilities has listed as one of the main development of tourism policy by the UNWTO research group.
As one of the main Silk Road tourism destination, Central Asian states have great potential to
advance sector of hospitality and tourism that create many promotions for different fields. In the other
perspective, tourism sector in Central Asia has already established and its policy has led to some
fundamentals enhancements in the last 20 years. Further investigations and explorations may be addressed
to recognize problems of the industry by learning all its sub-sectors.
In briefly, Central Asian states, including Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, and
Uzbekistan have great potential of tourism deployment as whole. Traditional policies and directed
measurements in counties have made already its results. Forthcoming diversifications and modernizations in
the industry may contribute exponentially for the economies of the Central Asian counties. Nonetheless,
tourism can be an important source of income and improved standards of life only if; economic, social and
ecological goals are maintained in balance. Henceforth, conventional mass tourism approaches has yield its
place to community based role tourism strategies in order to minimize harmful effects while generating profits
to local communities. Maintainable community tourism should object to improving quality of life for the host
community by producing social and economic benefits, as well as, by defending natural environment. In order
to manage sustainable tourism development, destination management organizations should respect the local
needs; thus, they need to engage with local communities decisions. In other words, ecotourism observations
and weaknesses should be taken into account by policy makers in order to develop tourism in a sustainable
manner. Community based tourism methods have succeeded throughout the globe in protection and
promotion of natural environment together with development of communities standards of living. The notion
of community-based tourism was identified through sustainable community tourism, which certainly
constitutes the base of community-based tourism. As a final point, community based ecotourism was
estimated in agreement with its key principles and challenges in the non-developed world.
REFERENCE
Abramson, D. (1999). A critical look at NGOs and civil society as means to an end in Uzbekistan. Human Organization,
58(3), 240250.
Anonymous. (2014, August 12). Uzbekistan: Publications and Documents [Text]. Retrieved 16 September 2015, from
EHL/UNWTO Silk Road Strategy Initiative | UNWTO Silk Road Programme. (2014.). Retrieved 25 April 2014, from
http://silkroad.unwto.org/en/project/ehlunwto-silk-road-strategy-initiative
Fifth International Meeting on the Silk Road. (2014). Retrieved 25 April 2014, from http://silkroad.unwto.org/en/event/fifth-
international-meeting-silk-road-samarkand-republic-uzbekistan
Fifth International Meeting on the Silk Road (Samarkand, Republic of Uzbekistan) | UNWTO Silk Road Programme.
(2014.). Retrieved from http://silkroad.unwto.org/en/event/fifth-international-meeting-silk-road-samarkand-republic-
uzbekistan

Special issue
IUTF-2014. (2014). Retrieved 24 April 2014, from http://www.tourfair.uz/en/component/k2/item/2-mutv2014.html

Karimov, I. A. (1998). Uzbekistan on the Threshold of the Twenty-first Century: Challenges to Stability and Progress.
Macmillan.
Landau, J. M., & Kellner-Heinkele, B. (2001). Politics of language in the ex-Soviet muslim states: Azerbayjan, Uzbekistan,
Kazakhstan, Kyrgyzstan, Turkmenistan, and Tajikistan. University of Michigan Press.
Mller, M., & others. (2006). A general equilibrium approach to modeling water and land use reforms in Uzbekistan.
Universitts-und Landesbibliothek Bonn. Retrieved from http://hss.ulb.uni-bonn.de/2006/0801/0801.htm
UNWTO Annual Report 2013 | World Tourism Organization UNWTO. (n.d.). Retrieved from
http://www2.unwto.org/publication/unwto-annual-report-2013
- . (2014.). Retrieved 16 September
- :
. (2014). Retrieved 16 September 2015, from http://mfa.uz/ru/press/elections/2014/12/3145/

http://ijecm.co.uk/

Uzbekistan
THE DEVELOPMENT OF TRANSPORT LOGISTICS CLUSTERS

IN UZBEKISTAN
Uzakova Vazira
Independent researcher, Samarkand Institute of Economics and Service, Uzbekistan
vazirka_88@mail.ru
Dilbar Aslanova
Scientific vice-rector of Samarkand Institute of Economic and Service, Uzbekistan
aslanova_d@rambler.ru
Zuhra Sattarova
Senior teacher, Finance faculty, Samarkand Institute of Economics and Service, Uzbekistan
Abstract
The deployment of economy in Uzbekistan has been increasing at noticeable rates in recent years. The
spatial expansion of economy and the growing diversification of its sectors in the country create opportunities
for regions and communities to seek new concepts of development. On this case, transportation is considered
as a major specific element of economy, which could be enhanced with the diffusion of clusters in order to
make better synergies as whole. It makes the exchange of information and technology possible, encouraging
different ways of co-ordination and collaboration within chains and service suppliers. Hence, clusters are
considered as being efficient management and marketing tools for local economies of Central Asian region.

Special issue
These tools could be diffused in appropriate manner in order to contribute at achieving competitive
advantages through local development while establishing sustainable development basis for the transport
logistics.
Keywords: Transport, Economics, Uzbekistan, Clusters, Competitiveness of country, Central Asia
INTRODUCTION
As a belt of main cross corridors, Uzbekistan is considered as a vital destination for transportation of Central
Asian area. Realizing infrastructure as a qualification for social and economic expansion, the government
contributes highly to the development of the transport infrastructure and the related industry. Moreover, the
infrastructure currently remains a priority direction of expenditures of budgetary funds, state non-budgetary
funds, and external loans guaranteed by the government. As Uzbekistan is dynamically, developing state and
progressive growth of its economy requires anticipatory development of its transportation and communication
network.
Main directions of transport policy of Uzbekistan are integration into international transport
communications, development of efficient international routes for transportation of foreign trade and transit
goods, modernization of transport complex and raising of transit potential in order to push facilities and
services as whole (Romanov & Romanova, 2015).
Lying on the ancient trade routes between Asia and Europe, Uzbekistan has been the center of
commerce and trade in Central Asia for many centuries. Its territory covers 447,400 square kilometers, the
third largest among the five Central Asian republics with which it shares its borders: Kazakhstan, the Kyrgyz
Republic, Tajikistan, and Turkmenistan, as well as Afghanistan (Lu & Koufteros, 2014). Its capital Tashkent,
with 2.1 million residents, is the largest city in Central Asia. Uzbeks are hardworking and successful in
business. They form the core of the legendary group of traders along the ancient Silk Road. With a young and
literate population in excess of 28 million, Uzbekistan enjoys a vibrant and fast-growing economy. Agriculture
is its most important economic sector, accounting for nearly 29% of gross domestic product (GDP). Its other
major exports include gold (its second largest export), natural gas, minerals, and fertilizer. In 2007, its GDP
grew by 9.5%. From 2006 to 2007, its trade surged by 27.4%, driven by a 40.7% increase in exports (Lun,
Lai, Ng, Wong, & Cheng, 2011).
So far, the country is underway to establish a modern road transport network. Furthermore, an air
communication system has been created in the country, the power system is developing, and other sectors
and facilities of infrastructure are being modernized and diversified. Yet, successes of the economic policy,
directed on development of private sector, also favorable market conditions, have naturally led to increase of
burden on infrastructure capacities. There is a strong need to establish new infrastructure capacities for
maintaining economic growth, but also to modernize or replace existing capacities, as well as to adjust
infrastructure in order to respond to changing needs of the economy and the society (Romanov & Romanova,
2015).

Today, Uzbekistan is faced by a shortage of infrastructure capacities and an insufficient efficiency of the
infrastructure. In order to tackle the infrastructure shortfalls, the Resolution of the President of the Republic of
Uzbekistan -1446 December 21, 2010 "On the acceleration of infrastructure development, transport
and communication development in 2011-2015 approved the main parameters of capital investments and
investment program's of the Republic and address a program of projects implemented with foreign credits
guaranteed by the Government of the Republic of Uzbekistan.
Furthermore, the Resolution of the President of the Republic of Uzbekistan -927 dated on
24.07.2008 "On measures to improve the process of attracting foreign investments and loans" was given the
task of extensive notifying foreign investors and international financial institutions about promising investment
climate and potential investment opportunities in the economy created the Republic of Uzbekistan. Special
attention to ensure coordination of the activities of governmental and economic management were focused on
the document. The tasks are to provide comprehensive assistance and support to foreign investors. Annually,
the President of the Republic Uzbekistan declares by resolution the investment program for the coming year.
Pursuant to Presidential Decision, the executive body of the Cabinet of Ministers shall issue special
regulations to implement the investment policy (Singh & Bodh, 2014). Supplementary structure of motor and
railroads, renewal of rolling stock and electrifying of railways is of great importance for the development of
transportation in Uzbekistan. In December 2010, the President of Uzbekistan issued Resolution on Rapid
Development of Infrastructure of Transport and Communication Construction for 2011-2015, which will serve
as a strong impact for further facilitation of development of transport sector of the country. The total amount of
investments to be disbursed by 2015 is US$ 6.9 billion (Karimov, 2012b). In addition, document foresees large
scale creation and transformation of motor and rail roads, bridges, renewal of the fleet of the vehicles, railway
locomotives and carriage fleet, purchase of new mid and long distance passenger air fleet manufactured by
Boeing and Airbus. Besides, the country have established two Spanish high-speed trains Talgo-250 which
travels specially among historical cities of Uzbekistan, in some sections reaching the speed of 250
km/h(Lagarde, Miglio, Eggenberger, Montalbn, & Bossini, 2015).
Uzbekistan is a land-locked country providing crucial transit for the centuries-old silk route. Roads
and railways carry the bulk of the passenger and freight traffic. With the country having emerged from the
post-Soviet planned economy, it is gradually progressing toward a market economy. As with other landlocked
developing countries, Uzbekistan faces several challenges in connectivity, logistics, and access to
sustainable modes of transport. The public sector agencies managing the transport sector are
(i) the Republican Road Fund (RRF);
(ii) Uzbekistan Railways (Uzbekistan TemirYollari, or UTY);
(iii) Uzbekistan Airways; (iv) Uzavtoyul (road construction and maintenance); and
(iv) Automobile and River Transport. Although no single government entity is charged with the
transport sector as a whole, the Cabinet of Ministers coordinates the sector.
The market of transport services is a separate sphere of the economy. The current situation in the world
economy, which is characterized, in particular, the rapid development of integration processes, varying
economic environment in the territorial context, differences in the degree of development of national

Special issue
economies and their openness to participation in international economic relations, intensification of

commodity flows on different levels of interaction between economic agents, increasing tourist flows (Stein,
2012).
On the one hand, and the insufficient development of the economic-theoretical framework, a small
amount of modern research of methodological bases of functioning of transport and logistics complex in
modern science. On the other hand, this determines the objective necessity of determining the place, role and
importance of transport services as an important economic category. Structural changes that characterize the
processes of global production and international trade, is largely predetermined by the changes occurring in
the global transport sector.
Without service differentiation in the number of species and quality, that is, without sufficiently
rigorous classification of transport services, and then the appropriate identification is not possible to solve the
various problems of the efficient functioning of the markets for these services. In particular, it is difficult to
determine the degree of competitiveness of services addressing technical, technological, organizational,
commercial and legal interaction between the various participants in the various markets for transport
services, informed certain segments of the consumer market of transport services for the effective
implementation of the transport organizations of their specific functions such as marketing, production,
innovation , finance and personnel management, difficulties in pricing and others (Baldacchino, Ferreira, &
others, 2013).
THE CONCEPT OF TRANSPORT SERVICES AND ITS MAIN TYPES

Transport Service Market is a manifestation of the scope of economic relations between transport
organizations and consumers of transport services between the cost and value of transport services. The kind
of mechanism for coordinating the interests of transport and cargo. The transport market can be seen as part
of the commercial market space, or as part of the delivering and transportation. It is considered that, the effect
of the movement of goods and passengers by private mail (the point of departure - destination). Transport
products are characterized by the following parameters: mail transport; kind of cargo; qualitative parameters.
As with any product, the main products of transportation (transportation and delivery of goods to the final
destination) and auxiliary transport services (freight forwarding operations) have on the transport market
certain value (exchange and the consumer) that occurs during transportation and is included in the price
goods at the place of consumption.
The price of transport products to the market of transport services should be determined by supply
and demand, taking into account the socially necessary cost of "living" labor and consumer properties of
transport (Lun et al., 2011).
The transport market in the narrow sense is part of the product market, but it has a number of distinctive
features:
Transportation services, as well as other services are immaterial in nature (they can not save, create
a reserve);

Coincidences production processes of transport services and their implementation not interoperability
of transport services (restricts competition on one mode of transport between its divisions);
Space disunity transport services;
Generality and mass transport market;
It is the natural monopoly on certain types of Transportation, regions.
By the end of the 20 the century, the concept of "transport service" is not used in the organization and
management of transport. Under the transportation, services are understood directly as a mean of transport,
measured by such gross figures, the volume of loading and unloading of cargo turnover, and so on. However,
this method of assessment took into account only the quantitative aspect of transport. In a market economy,
the concept of "service" in addition to the volumes necessary to include the implementation and the level of
quality and service, accompanying the implementation of services ( Pikalov, 2014).
Transport services, as such, belongs to the sphere of material production. Not directly converting raw
materials, transportation creates use-value. The transport service is the final process of material production
and at the same time the initial stage of the production or final consumption. Transport services market is a
separate sphere of the economy. The quality of infrastructure and a set of services Uzbekistan lags behind
the level of the leading countries of the world, however, the market is rapidly developing transport services in
the whole country, and in some regions (Hussain, 2014).
A distinctive feature of the transport complex of the republic from other sectors of the economy in the
transition to a market economy is the relative break-even and profitability. In addition, the country has a well-
developed network of major transport routes, and the availability of highly qualified specialists. The branches
of the transport complex a purposeful and consistent policy of creating a real competitive market of different
transport services (Tolipov & Warikoo, 2012).
The goods in the transport sector can only be what it produces and sells. The object of the purchase
and sale of transport, including road, is the transportation - the movement of people and goods in space and
time. Move and have a beneficial effect, the result of the production of the transport system and transport
organizations. Carriage performed by a vehicle is both the manufacturing process and products - goods
transport. This product, according to modern terminology, are called of carriage or transportation services.
However, the process of transportation except direct load handling motor vehicle includes operation
and co-operation, such as warehousing, preparing cargo for shipment, loading, unloading, etc. Individual
operations or group of operations that accompany the main transportation process is a motor transport
services. It should distinguish between transport and road transport services: transport - a basic service,
goods transport operator, while road transport services in terms of marketing also serves as services (Alam,
2014).
Railways
Uzbekistan has 4,014 route-kilometers (km) of rail track, of which 430 km is double-tracked. Continuous
welded rail has been installed on 2,300 track-km, with 3,700 track km of reinforced concrete sleepers. The
investment focus in railways, since independence in 1991, has been on constructing new lines to avoid transit

Special issue
through neighboring countries. This process was largely completed with the opening of the Tashguzar
Kumkurgan line in southern Uzbekistan, bypassing Turkmenistan. The only missing line is from Angren to
Pap, to link the Ferghana Valley network In transport complex of Uzbekistan, special role belongs to cargo by
which total transportations through railways comprises about 70 million tons p.a. with more than 35% to be
export-import and transit cargoes including various destinations of the world.
Moreover, the total length of railways is more than 7,000 km, with 4,600 km to be the main trunk. For
further development of railway complex, with phased approach, the country is constructing new railway
sections, modernizing existing trunks, electrifying of railway lines, and renewal of carriage fleet. For the last
several years, projects on construction of railway sections Navoi-Uchquduq-Sultanuizdag- Nukus with the
total length of 341 km and Toshguzar-Boysun-Qumqurghon with total length of 220 km have been
implemented systematic. These sections are supposed to ensure continual railway communication among
Northern, Southern and Central regions of Uzbekistan.
Furthermore, railway Toshguzar-Boysun-Qumqurghon provided direct access to Afghanistan which is
border neighbor country according its territorial location. Stabilizing of situation in Afghanistan would create
realistic prerequisites for forming of entirely new Trans-Afghan transport route with access to the Iranian ports
Bandar Abbas and Chakhbakhor, as well as to the Pakistani port Guadar. Beginning for this was put by the
construction and launch of the railway Khairaton-Mazari Sharif, which is the first in Afghanistan (Malashenko,
2014). Under the ADB financing, the State Joint Stock Railways Company Uzbekiston Temiryullari acted as
contractor for construction works of this road with length of 75km. Nowadays, UzbekistonTemirYullari is
considered as one of the strong railway companies in CIS. The fleet of locomotives, cargo and passenger
carriages, special construction machines and laboratory equipment, scientific base, labor potential and
experience of construction works in various climate and geodesic environments allow the Company to
perform as contractor on implementation on infrastructure projects not only within Uzbekistan, but also is quiet
competitive for participation in international projects.
According to ADB experts, project on construction of Khairaton-Mazari Sharif railway appeared to be
the most successful in the ADB history in co-relation of costs, implementation terms and the quality of the
works. It should be noted, that the progress of construction was monitored by the international independent
experts, which gave high evaluation to the quality of the work eastern Uzbekistan with the rest of the system.
Roads
Uzbekistan has more than 183,000 km of roads, 42,530 km of which are highways. Highways are classified
as international (3,626 km), regional (21,995 km), and national (16,909 km). While the road network is
adequate, providing access throughout the country, it suffers from a backlog of rehabilitation work.As of
today, the total length of the motor roads of Uzbekistan is 183,000 km (with 42,500 km of regular highways,
including 3,200 km of international motorways). Motor transport covers about 10% of foreign trade and 88% of
domestic passenger and cargo transportations. An annual growth rate of volumes of motor transport services
is 20%. With aim at creation of unified national transport system through construction and renovation of
motorways meeting international requirements and standards, in 2009, Uzbekistan issued National Highway

Development Program, 2009-2014, implementation of which started beforehand. In the context of large scale
program of construction of national highway, it's intended to renovate and construct motorways with total
length of 1,501 km, including Uzbek section of trans-European highway -40, passing towards Beineu -
Kungrad - Bukhoro - Navoi - Samarqand - Tashkent - Andijon, with total length of 1,139 km. Inland waterway
traffic is concentrated on the Amu River, which flows eastwest from Tajikistan and Afghanistan at the
UzbekAfghan border, turning northwest toward the Aral Sea, bordering Turkmenistan. The only navigable
section in regular use is from Termez to the Afghan port of Hayraton, 26 km upstream (Akimov & others,
2015).
Uzbekistans road transport sector has undergone significant changes since 2003, yet the sector is
still in a state of transition. Reform gains have emerged from improvement in road sector governancethe
separation of the RRF from Uzavtoyul, and its institutional development to become a corporate entity with an
appropriate organizational structure. The RRF has attained a quasi-autonomous status, which may be the first
stage toward the evolution of a full-fledged road asset management system. An additional requirement would
be to provide the RRF with a sustainable source of income to meet the demand for road construction and
maintenance(Tolipov & Warikoo, 2012).
On this basis, the way of development economically analyses noticeable on road contraction and
modification as whole. By the way of its current existence the collaborative implementation has to make great
importance on lifestyle of people(Karimov, 2012a).
To improve the efficiency of passenger transportation in the city of Samarkand, in which the number
of population for 2014 is already more than 2.5 million need push for the services of transportation.
Inhabitants of Samarkand branch of the Uzbek Agency for Automobile and River Transport organized 13
public tender projects, in which entrepreneurs were, invited 23 passenger routes.
They are conducted on the basis of resolutions of the Cabinet of Ministers "On organization and
holding open tenders for urban passenger transport-sky" of 17 August 1998 "On organization and holding
open access tenders for commuter, intercity and international passenger transport" from July 29th, 1999 in
the Republic of Uzbekistan held a tender for the deployment of passenger ways (Schaefer & Whitney, 2015).
In Samarkand region, currently operates 316 passenger routes, which operate 205 buses "Isuzu" (data buses
equipped with engines, which by their environmental feature refers to the Euro-2 standard and it is
characterized as being particularly green and safe). These buses are well proven both in comfort for
passengers and reliability of the design.), 67 vehicles and 198 minibuses "Damas" .Total length of motorways
area - 4678.8 km. The quality of road coverage area divided into cement and concrete - 62 km, c concrete -
2065 km, Black - 1576 km, gravel - 351 km, ground - 64 km(Karimov, 2012a).
In Samarkand region in 2013, the number of licensed cars involved in the provision of transport
services increased by nearly 1 thousand. Units or 11.4% compared with 2012. These data were presented
during a visiting session of the Uzbek Agency for Automobile and River transportation weight of transportation
services, a set of transport has been increased. So in 2012 the share of road transport accounted for nearly
98.5% of passenger transportation and 90.5% - cargo. At the same time in the service sector the share of
non-state actors are almost 100% in passenger traffic and 98% - in cargo transportation. The largest share in

Special issue
the transportation of passengers and passenger turnover in 2014 accounted for road transport - 94.7 percent
(3.2941 billion. People) and - 81.1 percent (32.5 billion. Passenger-km).
In general, the volume of passenger transport shared of private carriers was 56.7 percent, passenger
turnover - 70.6 percentage. The volume of passengers this category of carriers increased by 24.9 percent,
and passenger turnover increased by 25.7 percent.
The analysis shows that in 2014 was the increase in the carriage of passengers compared with 2013
to 14.8 million/people with the growth rate of 141.3 percent. Compared with 2010, this change is 6.3 million
persons or 114.2%, compared with the 2011 and from 2012-year period of change it is also positive, amounts
to an increase compared to 2011 to 10.2 million. Passengers or 125.2 % and compared to 2012 is 13.7
million passengers or 137.1%. From this table, one can observe that public passenger buses in 2014
increased significantly compared to the previous year by 49.8 million/ passenger km or 112.2%. In 2010, this
figure increased to 81.4 million Passenger-km.
The growth rate was 121.6%, compared to 2011 and from 2012 years of change also showed high
numbers of 36.3 and 60.3 million passenger km respectively. The growth rate was 108.6 and 115.2%,
respectively. This suggests reducing the number of passengers using buses and reducing the number of
routes, thereby increasing passenger public buses. According to table 1, it is illustrated the number of
passenger buses for public in Samarkand region.
Table 1. Transportation of passengers & passenger buses for public Samarkand region for the yrs 2010- 2014
Indicators 2010 2011 2012 2013 2014
Carried passengers 44,3 40,4 36,9 35,8 50,6
(million persons.)
Difference (+,-), (million - -3,9 -3,5 -1,1 14,8
persons.)
Increase rate,% - 91.1 91.3 97 141,3
Passenger turnover of 375,2 420,3 396,3 406,8 456,6
public buses
(million, passengers-km).
Difference (+,-), (million - 45,1 -24 10,5 49,8
passengers-km).
Increase rate,% - 112 94.2 102.6 112,2
Road funding and sustainability

Government contributes significantly on transportation development, while spending of 1% of its gross
domestic product on roads is low by international standards. The RRF is responsible for financing about 25%
of the entire network. However, its budget remains inadequate to meet the reconstruction and maintenance
requirements of the network. This has resulted in about 60% of public roads having cracks on more than 10%
of the surface area as well as having 10 potholes, on average, per kilometer. The RRF needs to tap the
potential of publicprivate partnerships, restructure its revenue system, and introduce road user charges to
improve maintenance and develop the network.

Cross-border facilities
Despite significant enhancements and boosts, trade simplification and the cross-border regime in Uzbekistan
remains complex and time-consuming. Transit traffic is constrained by poorly maintained infrastructure and
traffic safety concerns. Border infrastructure needs to be modernized and made view that is more efficient
globally. Recently approved projects linking borders include components to strengthen cross-border facilities
and shorten cross-border processing times(Hanks, 2013).
Private sector participation

The ongoing ADB-assisted Regional Road Project4 and the two-multitranche financing facilities (MFFs) for
the Central Asia Regional Economic Cooperation (CAREC) Corridor 2 Road Investment Programs 5 have
stimulated private sector development by introducing international competitive bidding for some road works.
Yet, the potential impact on private sector development is limited as the contracts for periodic maintenance of
international and national roads are still a captive market for UzAvtoYul and its subsidiaries. However, some
private contractors have been awarded construction and repair works by the RRF based on recognized
competitive procedures; these needs to be expanded to all other works. Legal and regulatory frameworks for
publicprivate partnerships in the transport sector also need to be finalized (Smal & Janasz, 2013).
Road safety
Road safety has become a growing concern in Uzbekistan with the rapid increase in the fleet of motorized
vehicles. Road accidents are a leading cause of death, especially among men. Traffic accidents average two
fatalities for every 10 accidents. Uzbekistan records 1,430 fatalities per million means of transportation, which
is high by international standards. Poor road conditions with inadequate infrastructure and weak speed
control aremajor causes of the high fatal accidents rate.
Rail reforms and restructuring

UTY has benefited from technical assistance focused on reforming railways to serve the countrys emerging
market economy better. The government and UTY need to consider major policy issues to promote policy and
regulatory conditions that will advance the three important and mutually reinforcing restructuring objectives
competition, productivity, and accountabilityfor moving UTY toward a market-oriented rail company.
Financing of recurrent costs

UTY finances its operating expenses partly through tariffs on freight and passenger services. Under the ADB-
financed railway projects, UTY was to evaluation tariffs commonly and ensure they cover the cost of service.
Although UTY has reviewed tariffs, they do not yet reflect the full cost of service, especially for domestic
customers.

Special issue
Logistics centers
Over the past 5 years, the growth rate in Uzbekistan averaged 8.5%, which is higher than the average growth
in Central Asia. The GDP growth rate in 2011 actually amounted to 8.5% and for the period 2000-2010, the
volume of GDP increased by 2.1 times, and thus indicators of Uzbekistan to be among the fastest growing
economies in the world. Steadily growing rapidly in the past year, industrial production - 6.3%, agricultural
production - 6.6%, the volume of retail trade turnover - 16.4%. The volume of consumer goods in 2011 grew
by 11.2 per cent. The volume of exports in 2011 increased against 2010 by almost 15.4% and amounted to
over 15 billion. US dollars or increased against 2000 by 4.6 times. The positive balance of foreign trade
turnover exceeded 4.5 billion. US dollars(House, 2014).
Given annually increasing volumes of trade between the countries of Southeast Asia and Europe, as
well as the prospects of the use of transport and transit potential of Uzbekistan, is the need to improve
transport and trade infrastructure, which include the creation of modern storage facilities for the storage,
processing, storage and distribution of export import cargoes. Undoubtedly, these storage terminals could
serve as internal loads and loads passing through Uzbekistan. Logistics centers functions and all appropriate
infrastructure "dry port" might be a good solution for the optimization of international freight(Rakhimov, 2014).
Currently existing in Uzbekistan storage terminals, only a small number meets the modern
requirements for such complexes, and they tend to be specialized and focused on exports (such as cotton
terminals) or created for freight and service specialist free trade and industrial zones (FIEZ "Navoi" and PPE
"Angren").The geographical location of Uzbekistan is a strategically important aspect of motivation and
development of a network of modern warehouses and logistics centers of trade infrastructure, which would
minimize the logistics costs of manufacturing and trading companies for the delivery of goods.
A study conducted with technical assistance from ADB and prepared on the basis of its strategy in the
transport sector in Uzbekistan have shown the need for the development of logistics centers and warehouse
terminals as the main components of the transport infrastructure.
Currently, in addition to the problems existing in the system of rail and road transport in Uzbekistan
there is insufficient development of infrastructure of logistics and communications, which can be used to
organize the storage, processing and packaging of export-import cargoes. For example, Uzbekistan produces
a significant amount of agricultural products (fruits, vegetables) but due to lack of appropriate logistics centers
for processing, packaging and storage, more than 50% of products are becoming uncompetitive in foreign
markets. Recently, in Uzbekistan was created a modern intermodal logistics center, which serves mainly
international air cargo (cargo consolidation and layout) is the aviation hub in Navoi.
In mid-2009, established JSC logistics center Angren is one of the largest logistics centers for
maintenance of road and rail transport in Uzbekistan. Now, international logistics center "Angren" has
warehouses combined terminal, access roads and maneuvering sites, hotel and security structures. Area
transit-cargo terminal covers an area of 8.6 hectares on which there are rail travel line for loading and
unloading of railway cars. The capacity of the terminal can overload up to 22 containers to the storage and
processing of 60 containers of up to 1,500 tons storage space. The volume of traffic through the pass

"Kamchik" ZAO "Angren Logistics Center" in 2011 amounted to 4.2 million tons of cargo, which is 1.3 times
more than in 2010.
According database on international transport corridors, their extent, the technical state of road
infrastructure, settlements and rules for crossing of vehicles, the list and amount of payment for the entry and
transit prohibitions and restrictions on entry to a particular territory, etc., Ltd. " Association for Development of
Business Logistics "was created Transport and Logistics Information Portal www.logistika.uz.
Availability of timely information on storage terminals would allow better plan production and
transportation process, improve profitability, and reduce the cost of goods. Logistics has created a single
portal available to all transport companies and entrepreneurs of the Central Asian region information
database of a storage terminal, their specialization, the free areas, and tariffs, the availability of rolling stock
and cargo, as well as statistical base cargo flows. Correspondingly, this active realized another major
investment project that provides JV UzVneshTrans. This is the first and only logistics center in the capital.
ILC "Tashkent" will provide a full range of services for the processing, storage, customs clearance, shipping,
including work will be organized on the principle "from door to door".
ANALYSIS OF TRANSPORT LOGISTICS SERVICES: CASE OF SAMARKAND

Uzbekistan is among the countries with high logistics costs that consequence reduces the efficiency of
production and trade, adversely affects the competitiveness of companies and the country as a whole. Total
logistics cost in Uzbekistan in 2011 amounted-Wylie $ 212 million, the amount of the actual transport and
logistics market (including services for transportation of oil and gas pipelines).The basis of logistics
outsourcing services comprise transportation and freight forwarding. At present, market structure has
changed related to the increase in the proportion of storage services. This is due to an increase in tariffs and
revenue growth in the segment of transportation.
For the segment of the transportation of goods, reflecting the level of development of the outsourcing
market freight refers transport activities of the specialized organizations and entrepreneurs (natural persons).
The Russian statistical reporting such activities are included in the commercial freight transportation,
organizing the sector "Transport" by road, rail, inland waterways, sea and air modes, "public transport". In
Samarkand region, trans-logistics services are in the process of 150 companies, 8 of them are now on the
verge of bankruptcy. Analysis of the companies involved in logistical transport services shows strong
performance. If you compare with other regions, the Samarkand region is located on the 2nd place after
Tashkent region. Conducted survey among consumers indicates that professional services are engaged
within 35 enterprises in the city. The enterprise has its warehouses 33 companies, rent another 12
enterprises. Services provided by these companies include warehousing, freight forwarding, and
transportation. Following Table - 2, illustrates analysis of the number of enterprises engaged in transport
logistics services in Samarkand region.

Special issue
Table 2. An analysis of the number of enterprises engaged in transport logistics services

in Samarkand region (In percentages)
Indicators 2010 2011 2012 2013 Increase rate of 2013 year
to 2010 y. to 2011 y. to 2012 y.
Total area 112 124 141 150 133.9 120 106,3
Samarkand 75 82 85 89 118,6 108,5 104,7
Kattakurgan 4 5 7 8 200 160 114,2
Districts of Samarkand
region
Akdarya 1 2 2 2 200 100 100
Bulungur 1 1 1 2 200 200 200
Djambay 2 3 3 4 200 133,3 133,3
Ishtixan 2 3 3 4 200 133,3 133,3
District of Kattakurgan 1 1 2 2 200 200 100
Koshrabad - - - - - - -
Narpay 2 2 3 3 150 150 100
Payarik 2 2 3 3 150 150 100
District of Pastdargom 4 4 5 6 150 150 120
Paxtachi 2 2 4 4 200 200 100
Samarkand 6 7 10 10 166,6 142,8 100
Nurabad 6 6 8 8 133,3 133,3 100
Urgut 3 3 4 4 133,3 133,3 100
Taylyak 1 1 1 1 100 100 100
An analysis of the number of enterprises engaged in transport logistics services in the Samarkand region
showed the growth rate in 2013 to 2010, 2011 and 2012, years in the cities of Samarkand and Kattakurgan,
as well as areas of Samarkand region. In all areas of the Samarkand region is growth in the number of
companies engaged in transport logistics services.
A survey among companies showed interest in this type of service, but inadequate skills, lack of
personnel in this area. No relationship works with the governing bodies. There is no information about
suppliers exporting goods from Samarkand region.
Table 3. Analysis of the structure of enterprises by type of transport involved in the logistics of transport
services Samarkand region for 2010-2013(In percentages).
Indicators 2010 2011 2012 2013 Increase rate of 2013 year to
2010 2011 2012
Rail public transport 29 29,5 29,9 30,2 104,1 102,3 101
Road 21,5 21,5 21.5 21,7 100 100 100
Air 49 48,5 48,6 47,7 97.3 98.3 98.1
Pipeline 0,5 0,5 0,5 0,4 80 80 80
Analysis of the structure of enterprises by type of transport involved in the logistics of transport services by rail
public transport has increased by an insignificant figure. In 2010 compared with 2013 year increased by

104.1% as compared with 2011 and the years from 2012 increased by 102.3 and 101%, respectively.
Regarding the road and pipeline services growth rate in 2013 compared to previous years increased by 100
% and 80%, respectively. In addition, the rate of growth of air services in 2013 increased by 97.3 and 98.3%
respectively compared to 2010 and 2011, while a comparison with 2012 it showed 98.1%.
As a double landlocked country, transportation in Uzbekistan is an economic driver and supply chain
logistics play a critical role. Uzbekistan has two logistics centers at Angren (70 miles east of Tashkent) and
Navoi (a free industrial economic zone) in southwest Uzbekistan. Developing the necessary infrastructure for
multimodal logistics centers, labor and management training, and market access to private entrepreneurs, are
critical to the growth of the logistics industry(Karimov, 2012b).
This factor became one of the key factors, laying basis for the project of creation of large hub with
international intermodal logistic centre on the base of the Navoi airport, which is located in the centre of the
country, on the crossroads of international inland and air corridors. Such location, which provides optimum
access to the customers and partners, equal distance from large airports of the region creates environment
for transforming Navoi airport into large regional hub for international cargo transportations. The objective
prerequisites for achieving this goal are sufficient. Projections state that by 2015, transportations within
Eurasian area will increase 2.4 times vs 2006, while transit of cargo transportations will increase 4 times.
In 2001-2006, air transport carried 3 million tons cargoes through Eurasian route p.a., which is 17% of
all international air cargoes and 30 million people or 6% of all international passenger flow. Attraction of only
5% of cargo flows between Europe and Asia to the Navoi Airport could turn it into sub-regional hub.
Use of air routes with landing in Navoi provides tangible saving in time and costs for transportation of
cargoes. Thus, the distance from South-East Asia to Europe through Navoi is 1,000 km shorter than from
Dubai. While time saving in air flight comprises 1.5 hour, fuel - 15 tons per airplane(Novickis & Mitasiunas,
2015).
The most tangible benefit from using advantages of location of the Navoi airport could be received by
Japan, South Korea, Vietnam, Indonesia, Malaysia, Singapore, Thailand and Southern part of China, as well
as the United Kingdom, Germany, Italy, France and other European countries.
In direct proximity from airport pass international transport routes - Trans-European Highway E-40,
connecting Paris with Beijing, railway with access in Western direction through Turkmenistan to the markets
of the Middle East, Caucasus and Europe, in Eastern direction through Kazakhstan to China and other
countries of Southeast Asia, in Northern direction through Kazakhstan and Russia to European countries, in
Southern direction through Afghanistan to Pakistan and India.
Now, the National Air Company Uzbekistan Airways is flying from Navoi airport cargo flights to
Bangkok (Thailand), Deli, Mumbai (India), Dakka (Bangladesh), Dubai (UAE), Istanbul (Turkey). In 2010, the
Company launched flights of cargoes through the route Navoi-Frankfurt-Navoi, Navoi-Dubai- Navoi, Navoi-
Istanbul-Navoi and Navoi-Bishkek-Navoi. In addition, through this airport the aircompanyKoreanAir is
transporting cargoes through the routes Seoul-Navoi-Brussels, Seoul-Navoi-Vienna (Milano), Seoul-Shanghai
Seoul-Shanghai-Navoi-Vienna and back.

Special issue
Creation of intermodal logistic center on the base of Navoi airport is practical example of organizing efficient
mechanism of distribution of cargoes and services for the region based on advanced international experience.
In 2009, in Angren, there was established Angren Logistic Centre. The main goal of the centre is accepting
and handling of cargoes, as well as their delivery by trucks to Andijon, Namangan and Farghona provinces
through mountain pass Qamchiq, thus providing reliable transport communication of Farghona valley with
other regions of the country.In 2010, through mountain pass Qamchiq was transported more than 4 million
tons of cargoes, out of which 467,000 tons of cargoes was processed by the logistic center.
Assessment of the Transport and Logistics Sectors

Taking full advantage of its geographical position as a key transit country through which trade and people
cross between Europe and Asia requires that Uzbekistan offer efficient and reliable transport and logistics
services at reasonable costs. Unfortunately, its logistics performance index (LPI) rank is a disappointing 129th
out of the 150 countries surveyed in the 2007 World Bank report: Connecting to Compete: Trade Logistics in
the Global Economy. The LPI measures a countrys trade logistics performance using a number of
parameters. Countries with high LPI scores have lower trade costs and are better connected to the global
value chain.
Transport Networks
At the heart of The Great Silk Road, Uzbekistan encompasses the shortest transport corridors between the
west and east, and the north and south, connecting Europe to Asia. These routes are the Transport Corridor
EuropeCaucasusAsia (TRACECA) corridor and three of the six Central Asia Regional Economic
Cooperation (CAREC) corridors. The three CAREC corridors are (i) Corridor 2-a, 2-b (MediterraneanEast
Asia), (ii) Corridor 3-a, 3-b (Russian FederationMiddle East and South Asia), and (iii) Corridor 6-a, 6-b, 6-c
(EuropeMiddle East and South Asia). Traffic Trends Uzbekistans current traffic pattern is imbalanced, with
substantially more traffic coming into the country than going out. This imbalance is partly caused by
Uzbekistans importexport imbalance and partly by the importexport patterns of neighbors that route their
goods through it. Most of Uzbekistans inbound traffic consists of high value goods, while its outbound traffic
consists mostly of raw materials.
Road Transport
Uzbekistans road transport system moves 10% of the international cargo that passes through the country. It
also moves 88% of Uzbekistans domestic passenger and short haul cargo traffic. Uzbekistans 83,000-
kilometer (km) highway system, about 90% of which is paved, is strategically important to its neighbors as
transit routes for interregional and intra-regional transport. As an example, Uzbek roads provide a year-round
linkage between northern and southern Tajikistan. Most of the 1,500 km of highways the consultant traveled
in are in fairly good condition and can be classified as Class 1 or Class 2 under Asian highway standards.
However, roads in the country are constructed based on former Soviet Union (FSU) standards and thus may
not be able to handle large amounts of heavy truck traffic. Many

highway sections traversed regularly by heavy trucks have crumbled pavements and a substantial number of
potholes. Also, arterial roads and city streets are generally in poor condition. This is mainly the result of
insufficient maintenance work, with the budget for maintaining primary roads remaining inadequate. The
Uzbek trucking industry is underdeveloped. It is estimated that there are fewer than 2,000 Uzbek trucks, most
consisting of old Russian equipment. Meanwhile, foreign-owned trucks, mostly those from Turkey, Iran, and
the Russian Federation, are in much better condition. Large numbers of foreign competitors are taking
business away from local trucking companies in Uzbekistan(Faramani & Moradi, 2014).
Rail Transport
Uzbekistans rail network has over 4,400 km of 1.52-meter broad-gauge tracks capable of handling 120
km/hour trains in most sections. It handles 65 million tons of cargo each year, transporting 20 million ton-km
of goods. It transports 86% of international cargo and 66% of domestic freight in the country, mainly in
wagons and containers that are old and in poor condition. Rail traffic in the country grew by 19% in 2007 and
by around 15% per annum in recent years. The countrys railways are run by the state-owned joint stock
company, Uzbekistan TemirYollari (Uzbekistan Railways), which, with a labor force of 33,500, is one of the
largest of such companies in Central Asia. Uzbekistan, along with the Russian Federation and Ukraine, are
the only three FSU countries with wagon construction and rehabilitation capabilities. In 2007, Uzbekistan
Railways began to repair passenger wagons for the railways of the Kyrgyz Republic, Kazakhstan, and
Tajikistan.
Air Transport
Since Uzbekistan is a double-landlocked country, aviation plays an important role in icargo transported by air
includes high-value fruits and vegetables to the Russian Federation, equipment and parts from Europe, and
consumer goods from the Peoples Republic of China (PRC), the Republic of Korea, and Japan. Uzbekistans
air network is among the best in Central Asia. Its state-owned airline, Uzbekistan Airways, formed in 1992 out
of the Uzbekistan Division of Aeroflot, is a reliable airline with one of the best safety records in the region.
With 15,000 employees, Uzbekistan Airways is a huge enterprise that also runs the countrys air sector. Its
modern fleet includes Boeing 757- 200, Boeing 767-300-ER, A 310-300, and RJ85 planes. It operates
scheduled international flights to cities in the United States, Europe, Middle East, Southeast Asia, Central
Asia, and the Commonwealth of Independent States (CIS). Uzbekistan is also well served by a significant
number of foreign passenger and cargo carriers. The countrys network of airports is one of the best in the
region. The Tashkent Airport has been certified by the International Civil Aviation Organization as an all-
weather airport. The Navoi Airport is being upgraded into an international air hub that can serve as a stopover
for longdistance intercontinental flights. An international logistics center is also planned for the airport.

Special issue
Figure 1: Example of investment program in the rail sector of Uzbekistan
1-Project
The project "Improvement of passenger railway transport" of the Cabinet Council of the Republic of Uzbekistan dated 04.06.1996, 229-.
Credit of the Japanese Bank for International Cooperation in the amount of 65 mill USD to build a plant for overhauling of coaches.
2-Project
The project "Reconstruction of the railway," The Cabinet Council of the Republic of Uzbekistan dated on 28.10.1998, 456. Asian
Development Bank loan in the amount of 70 mill USD to repair the railway from Tashkent to Samarkand 320 km.
3-Project
The project "Renewal of locomotives" RMB Uzbekistan dated on 26.11.1999, 510. Loan from the European Bank for Reconstruction and
Development in the amount of 40 mill USD for the purchase of 12 locomotives
4-Project
The project "Modernization of railways of Uzbekistan" Uzbekistan RMB dated on 20.03.2001, 136. Asian Development Bank loan in the
amount of 70 mill USD and OPEC loan 5 mill USD to overhaul the railway route from Samarkand to Bukhara, 340 km.
5-Project
The project "Modernization of diesel locomotives and reconstruction of foundries' RMB Uzbekistan dated on 26.12.2002, 451. Loan from
the European Bank for Reconstruction and Development in the amount of 68 mill USD for the purchase of 90 diesel engines for locomotives
and the construction of the foundry.
6-Project
The project "Construction of new railway line Tashguzar-Baysun-Kumkurgan RMB Uzbekistan dated on 04.10.2004 458. Credit from
Japan Bank of International Cooperation in the amount of 151 mill USD for the construction of five steel bridges.
7-Project
The project "Electrification of the railway section Tukumachi-Angren" by the resolution of President dated on 19.02.2007, -582.
German bank KfW loan in the amount of 35 mill USD and Kuwait Fund of Arab Economic Development KFAED to 22 mill USD for the
electrification of the railway line between Tashkent (Tukumachi) and Angren.
8-Project
The project "Upgrading of passenger locomotives," Resolution of the President dated on 05.11.2008, -993. Credit of
the Government of China in the amount of 70 mill USD for the purchase of 15 main line passenger locomotives.

Water Transport
As it is far from the ocean, with its closest access point to open sea being 2,950 km away, Uzbekistan has
only a small volume of water traffic, mostly ferry traffic moving on its two major rivers: the Syr Darya and the
Amu Darya. Over the long term, water transport in the country will decline as more bridges spanning these
two rivers are built.
Multimodal Transport
Multimodal transport in Uzbekistan is not well-developed, as elsewhere in Central Asia. The countrys rail
intermodal terminals are generally antiquated, inefficient, and handle a small amount of traffic. Container
trains are short and single-stacked and frequently mixed with general wagon traffic, which leads to slower
service and higher costs to the shipper. Moreover, Uzbekistan Railways carries containers in old box wagons
that had been converted into flat wagons by stripping off the box. It also moves containers in whatever wagon
can accommodate a container. Inappropriate loading of containers and the use of equipment not designed for
container carriage can damage the container and its cargo, and the rail wagon. Almost all of the containers
used for transporting goods in and out of Uzbekistan are owned by shippers, foreign railways, foreign freight
forwarders, foreign logistics companies, and foreign container-leasing companies.
CONCLUSION
Development in the Republic network of railways and highways of international and national importance as
well as flight connections allows transportation of goods almost throughout the country, serving the industrial
clusters, industrial and agricultural enterprises, as well as the majority of business entities of the country.
Today in Uzbekistan accepted multifaceted measures for the further development of transport and
communication complex, creation of favorable conditions for cargo, national and international carriers, as well
as improving control over the order of goods, their handling and processing.
Special attention is paid to ensuring appropriate conditions for entrepreneurs engaged in production
and investment activities in the country. Currently, measures are being taken for the construction and
reconstruction of highways of national and international importance, the renewal and modernization of the rail
and the car park, the creation of integrated logistics centers and the improvement of the regulatory
framework, the establishment of a flexible system of tariffs for transportation of goods, simplifying customs
procedures, reducing travel time customs checkpoints and the electronic exchange of documents. Measures
are being taken to establish a mechanism for the effective use of information technology, transport and
transport infrastructure. However, the rate of introduction of modern methods and techniques in the practice
of the organization of logistics and cargo management still insufficient. On this case, paper concludes that
deployment on this way could be conducted systematically by diversifications and modifications as whole.
Moreover, country has great potential as a corridor for various routes, which may lead to better economic
prosperity. Further researches on transport logistics is favorably conducted on the fundamentals of the
country with the help of its relevant sub sectors.

Special issue
REFERENCE
Akimov, A., & others. (2015). Political economy of financial reforms in authoritarian transition economies. The case of
Kazakhstan and Uzbekistan. Griffith University, Department of Accounting, Finance and Economics. Retrieved from
https://www120.secure.griffith.edu.au/research/file/e3bf6521-5a62-4668-8a8a-0c7f22f69adf/1/2015-01-political-economy-
of-financial-reforms-in-authoritarian-transition-economies.pdf
Alam, M. M. (2014). CHINAS CHANGING STRATEGIC ENGAGEMENTS IN CENTRAL ASIA. Journal of Central Asian
Studies, 21(1). Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=0975086X&AN=10
2595798&h=Cbv4U1WwIlDNZWpE9BDQfHqgUm6qZCg0eFIxFf5ZueSqNMcvE83aHpgXzFT%2FvUKWyISByadlkhucf%2
B9haTBE0Q%3D%3D&crl=c
Baldacchino, G., Ferreira, E. C. D., & others. (2013). Competing notions of diversity in archipelago tourism: transport
logistics, official rhetoric and inter-island rivalry in the Azores. Island Studies Journal, 8(1), 84104.
Faramani, R. R., & Moradi, H. (2014). UZBEKISTAN: A REGIONAL POWER IN CENTRAL ASIA? REALITY OR
DILEMMA? Central Asia & the Caucasus (14046091), 15(2). Retrieved from http://www.ca-
c.org/online/2014/journal_eng/cac-02/06.shtml
Hanks, R. R. (2013). A Global Crossroads Reemerges in the Twenty-first Century. EDUCATION ABOUT ASIA, 18(3).
Retrieved from http://www.asian-studies.org/eaa/Hanks-18-3.pdf
House, F. (2014). Nations in Transit 2014-Uzbekistan. Retrieved from
http://www.ecoi.net/local_link/277858/411167_de.html
Hussain, S. N. (2014). Geo-political importance of Central Asian republics: an Indian perspective. Retrieved from
http://ir.inflibnet.ac.in:8080/jspui/handle/10603/19313
Karimov, I. (2012a). THE CONCEPT OF FURTHER DEEPENING THE DEMOCRATIC REFORMS AND ESTABLISHING
THE CIVIL SOCIETY IN UZBEKISTAN. Himalayan and Central Asian Studies, 16(3/4), 194.
Karimov, I. (2012b). The speech of the President of the Republic of Uzbekistan devoted to the 21st Anniversary of the
Republic of Uzbekistan. Narodnoe Slovo, September, 1.
Lagarde, N., Miglio, A., Eggenberger, P., Montalbn, J., & Bossini, D. (2015). Constraining angular momentum transport
processes in stellar interiors with red-giant stars in the open cluster NGC6819. arXiv Preprint arXiv:1502.02918. Retrieved
from http://arxiv.org/abs/1502.02918
Lu, G., & Koufteros, X. A. (2014). Adopting security practices for transport logistics: institutional effects and performance
drivers. International Journal of Shipping and Transport Logistics, 6(6), 611631.
Lun, Y. H., Lai, K., Ng, C. T., Wong, C. W., & Cheng, T. C. (2011). Editorial: research in shipping and transport logistics.
INDERSCIENCE ENTERPRISES LTD WORLD TRADE CENTER BLDG, 29 ROUTE DE PRE-BOIS, CASE POSTALE
896, CH-1215 GENEVA, SWITZERLAND.
Malashenko, A. (2014). Exploring Uzbekistans Potential Political Transition. Nd): N. Pag, 31. Retrieved from
http://liportal.giz.de/fileadmin/user_upload/oeffentlich/Usbekistan/20_geschichte-staat/nachfolge_usb.pdf
Novickis, L., & Mitasiunas, A. (2015). eINTERASIA Project: IT Transfer Concept for Adaptation and Dissemination of
Innovative European Research Results in Central Asian Countries. Applied Computer Systems, 17(1), 711.
Pikalov, A. (2014). Uzbekistan between the great powers: a balancing act or a multi-vectorial approach? Central Asian
Survey, 33(3), 297311.
Rakhimov, M. (2014). Central Asia and Japan: Bilateral & multilateral relations. Journal of Eurasian Studies, 5(1), 7787.
Romanov, M. T., & Romanova, I. M. (2015). About Eurasian Transcontinental Transport Corridors and Economic Axes.
Mediterranean Journal of Social Sciences, 6(5 S2), 328.
Schaefer, R., & Whitney, A. (2015). The Uzbek Wild Card in the New Great Game in Central Asia. Region: Regional
Studies of Russia, Eastern Europe, and Central Asia, 4(2), 291308.
Singh, K., & Bodh, S. (2014). POLITICS OF ISLAMISATION IN UZBEKISTAN. The Journal of Central Asian Studies,
19(1). Retrieved from http://ojs.uok.edu.in/ojs/index.php/jcas/article/view/240
Smal, T., & Janasz, D. (2013). Modelling of Polish Military Contingent Redeployment from ISAF Operation in Afghanistan.
Logistics and Transport, 20(4), 107112.
Stein, M. (2012). Uzbekistans View of Security in Afghanistan after 2014. Military Review, 92(3), 75.
Tolipov, F., & Warikoo, K. (2012). SPIRIT AND LETTER OF STRATEGIC PARTNERSHIP BETWEEN INDIA AND
UZBEKISTAN. Himalayan and Central Asian Studies, 16(3/4), 161.

http://ijecm.co.uk/

Uzbekistan
ANALYSIS OF PROMOTION EFFICIENCY FACTORS

IN FAMILY BUSINESS
Ozoda Pardayeva
Economy and Management department, Samarkand Agricultural Institute, Uzbekistan
Mamayunusova Mehrangiz Olimovna

Faculty of finance, Samarkand Institute of Economics, Uzbekistan
mrolimpardaev@gmail.com
Abstract
As Uzbekistan is considered as one of the dynamically developing country in the Asia, its economic
perspective is believed to develop with the help of entrepreneurship and small business enterprises. Paper
determines five considerably nucleus factors that impact on the promoting efficiency of family
entrepreneurships as well as creation of model highlighting the results of finding. Moreover, individual
assessment methods of guidance were devised and plausible finding of inner facilities were designed
according competitive scrutiny. Investigation covers socio-economic analyses of Uzbekistan with the current
sub-sectors status.
Keywords.
Family venture, family business, efficiency, promotion foundation, efficiency of promotion foundation, inner
facilities, factor analysis

Special issue
INTRODUCTION
As it is known, family business is the most widespread form of enterprise activity in the world based on
centuries-old traditions. Family firms form a basis of well-being and expansion of the society in countries with
developed market economy; a considerable part of produced goods and services is related to them.
Moreover, development of family business has not only economic, but also social and political significance for
the country. Family that has its own business has something to aspire and bring up their children and pass in
inheritance. Thus, there will be gradually generated a middle class of proprietors in the country, who are able
to work on itself and at the same time create a great profit to the state. Middle class is a basis of social and
political stability of the society. It is well recognized that Uzbekistan after gaining its independence in 1991,
while rejecting the obsolete totalitarian, administrative-command and planning-distributive system chose its
own Uzbek model of development. The essence and substance of the model, which was elaborated and is
being put into practice today, are important to fundamental change and renewal of the state and constitutional
order, also implementing political, economic and social reforms based on such principles as deideologization
of economy and its priority over politics, giving the state the role of a major reformer. Moreover, the functions
of an initiator and coordinator of reforms, ensuring rule of law, providing strong social policy and prosperious
lifestyle (Malashenko, 2014).
The country experienced sustained economic expansion over the last decade, with real growth rate
averaging 8.3 % annually in the 2005-2012 period. Evolution is expected to continue at around 7-7.5 % over
the medium term, supported by government spending and investment. Uzbekistan also has strong
development potential (STEBLYAKOVA & UVAKASOVA, 2013). Business and family influence mutually on
each other, common issue and purpose which is necessary to achieve, general work unites family relations
and makes family stronger not for a year or two, but decades. Family firm is a unique business form where
long-term strategic planning firm development linked inseparably with planning of family development and
future of all its members. Family enterprises have a great importance for training youths life in the conditions
of market economy and practical business and accustom members of the family to useful activity from
youthful years which area major element of their occurrence in independent life.
Consummation of Law of the Republic of Uzbekistan About family business (law became effective
on April 27, 2012) produced a legal basis for family business expansion in Uzbekistan. According to various
estimations, from 65 to 80% of all business units in the world are family property. Actually, even joint-stock
companies, controlling interest of which is a property of one family, can be classified as family business in
international practice family firm is assumed as a firm in which ownership control and right to make basic
administrative decisions are at hands of one family - group of people, connected with relationships or relations
that follow from marriage.
Terms family business, "family enterprise", family firm, family company, business which is family
ownership and company supervised by family have the same meaning from substantial point of view.
Family firms have many compensations in some branches allowing them to advance companies with other
proprietors structure of the same size on sales volume, profit and other indicators. Their main advantages are
interest, knowledge continuity, reputation value, obtaining all family profit, personnel presence with common

values and interests, high degree of trust and frankness, education and professional orientation of young
generation etc.
The country is rich in natural resources (gold, copper, natural gas, oil and uranium) and has a strong
agricultural base. Its size and population (as the most populous Central Asia nation), its large workforce and
its position (the country shares a common border with all other former Central Asia republics) makes the
country a natural regional leader in both political and economic terms (Ergueshev, 2012).
On the other hand, country also suffers from some evident and some less evident disadvantages.
From geographical point of view, Uzbekistan lacks an access to the sea and is a 'doubly landlocked' (i.e. a
country surrounded by landlocked countries) a distinction it shares only with Liechtenstein. Economically,
this handicap makes external trade both more difficult and more expensive(Clem, 2011).
More generally, the country's strong potential is far from fully exploited. Despite its GDP growth
even during the global economic recession Uzbekistan still needs to diversificate and modificate as its
incomplete transition to a fully market oriented system. The country is excessively reliant upon a handful of
commodities (gold, oil and gas and cotton), which represent more than 60 % of its exports as well as a
significant share of the country's GDP (Dronzina & Houdaigui, 2012).
FAMILY BUSINESS PROSPERITY AND ITS COMPETITIVENESS

On this way, family has always been perceived as sacred place and of high importance with occupation of
main moments of ones life. Strengthen of the family is, in the first place, main contributor of sustainable
development of each country. Given this fact, as the newborn state, government realized the importance of
families by widely supporting and making endeavor toward family units thriving. The constitution of the
republic issued in 1992 has been placed with section about ''Family'' and with 63rd statute declaring the
next:'' Family is one of the central constituents of society and thus has right to be protected by
government''(Almatova & S Gulamov, 2014). Another prominent point is announcement of 1998 as The year
of family, thereby increasing the position and importance of cellules of community by inaugurating the
special policy that would support family units. During the realisation of the policy there were myriad measures
taken in order to maintain prosperity, peace and equilibrium in homes (Karimov, 2012).
Moreover, it was perceived as matter of high magnitude throughout the whole period of existence. In
addition, the official meeting held on 7th of December 2011, which was mainly dedicated toward celebration
of 19th anniversary of republics constitution was threshold of president Islam Karimovs proposal to name the
ensuing year as the year of strengthen family. Consequently, legislation that involves execution of numerous
actions for 2012 and small businesses have been emerged, this is to say even more flow of steps being taken
currently. As the following milestone, the law concerning Family enterprise was legislated by Legislature
Chamber of Oliy Majlis (the Parliament) of the republic of Uzbekistan in March 8th, 2012 and was
corroborated by senate on 23rd. An abundance of opportunities were created in favour of family enterprises,
likewise the rest aspects. Domain has seen a considerable development thanks to establishment of various
reductions and preferences(Khudayberganov, 2014).

Special issue
The major focus here is mainly raising the sense of possession in the hearts of dwellers ,which would form
another mid-layer of society composed of owner, moreover as family ventures are considered to be of high
economical importance, they have potential to accelerate and strike maintenance in economy of the state.
Taking into account aforementioned virtues it could be obvious that these businesses are one that act as
central engine force,which without certain attention and fund-raising will fade. And if the promotion would halt
the remedy for not only economical, but also social isues are put under severe risk (Almatova & S Gulamov,
2014).
ECONOMIC POTENTIAL OF UZBEKISTAN

Since the mid-2000s, Uzbekistan has enjoyed robust GDP growth, thanks to favorable trade terms for its key
export commodities like copper, gold, natural gas, cotton, the governments macro-economic management,
and limited exposure to international financial markets that protected it from the economic downturn. Still, the
future is not without challenges (McGlinchey, 2011).
Overall growth for Uzbekistan is projected to continue at around 7 to 8 percent annually during 2011-
14, supported by net exports and a large capital investment program. World prices for Uzbekistans principal
exports are projected to remain favorable at least through the first half of the 2012-15 fiscal year (FY) Country
Partnership Strategy (CPS) period (Shenin, 2014).
The impact of recent increases in global food and energy prices is expected to be limited given
Uzbekistans policy of self sufficiency in both food grains and energy. Given the governments plans to finance
up to two-thirds of their investment program from external sources, including loans, external debt is expected
to increase gradually (Almatova & S Gulamov, 2014).
The country has to contend with a combination of risk factors going forward, including deteriorating
security conditions due to the situation in Afghanistan, and increasing tensions between with neighbors over
regional issuesespecially the management and use of trans-boundary energy and water resources.
Domestically, Uzbekistan has to work to minimize its economys vulnerability to possible external shocks
affecting commodity prices and the anticipated inflow of foreign direct investment (FDI) and external loans to
finance the large public investment program (Ambrosio, 2015).
Uzbekistan, with the goal of becoming an industrialized, high middle-income country by around 2050,
is continuing to transition to a more market-oriented economy to ensure equitable distribution of growth
between regions and to maintain infrastructure and social services. The countrys policy goals and priorities
are: to increase the efficiency of infrastructure, especially of energy, transport, and irrigation; to enhance the
competitiveness of specific industries, such as agro-processing, petrochemicals, and textiles; to diversify the
economy and thereby reduce its reliance on commodity exports; and to improve access to and the quality and
outcomes of education, health and other social services (Turker, 2014).
One of indexes of efficiency in family enterprises, promotion efficacy has been chosen as a topic for
given article, due to the fact that in order to prosper efficiently, company should firstly address the efficient
promotion of workers. In addition, the aimed target is to attain if taking into consideration the efficacy of
promotion itself.

It was discovery to find that in the way of increasing the promotion efficiency of workers its very useful to
implement promotion foundation properly, as the achievement of enterprise is majorly dependant on workers
and personnel. And investigation of them is perceived to be of high importance. Notwithstanding, being
threshold to revealing of promotion efficiency, article has not been seen to divulge the ways that affect given
efficiency in workplaces. Its essential that pivotal magnitude of the concern and improper investigation on
efficiency of promotion made reporting article to pose significant trace in current society. Since, Uzbekistan
joined the World Bank in 1992, the Bank has provided commitments for 24 projects financed by the
International Bank for Reconstruction and Development (IBRD) and the International Development
Association (IDA). Of these, 14 projects have been completed. Currently, the World Bank Group aims to
support Uzbekistans policy goals and priorities with a two-track approach under the previous Country
Assistance Strategy (CAS) full or limited engagement depending on the extent of agreement with the
government. This means that CPS support for increasing the efficiency of infrastructure and for human
development and social inclusion will broaden and deepen the operational involvement and related policy
dialogue already in place from the previous CAS (Malashenko, 2014). Conversely, support for the
governments industrial competitiveness and economic diversification agenda, where government and Bank
perspectives differ, will be limited initially to analytical and advisory services.
ANALYTICAL REVIEW OF ISSUE

Over the 4-year period of fiscal years 2012 to 2015, the Banks provisional lending program comprises fifteen
operations, of which eleven will support reforms and investments for achieving sustainable growth, including
more efficient energy use and diversification of exports. The total financial commitment will be about US$1.3
billion, i.e. commitments averaging about US$325 million annually.
Besides new lending, the existing portfolio of investment projects will support the infrastructure
efficiency and social inclusion elements of the governments strategy. Proposed analytical and advisory
services will cover the governments growth and development strategy. In addition, the provisional list of
analytical and advisory services includes a proposed joint strategy report Uzbekistan Vision 2030. This will
lay out roadmaps to facilitate implementation of the authorities industrial development, competitiveness and
diversification agenda (Shenin, 2014).
The International Finance Corporation (IFC) will maintain its focus on private sector development
through a combined investment and advisory approach, by focusing on direct investments in the real sectors,
such as general manufacturing, services, and agribusiness; strengthening access to finance for private sector
through banks, especially by strengthening privately owned banks; and encouraging private sector
participation in infrastructure (Almatova & S Gulamov, 2014).
Throughout the research there were numerous factors that impact upon production efficiency.
Aspects like cutting-edge technologies and techniques, investment, innovations, modernisation, diversification
are classic examples, though human involvement is still major contributor as well as human labour is ground
for achievement and lose. Given these facts, the contemporary workplace dedidate endeavour toward
maintaining workers importance. The more employees are promoted for work accomplished, the more

Special issue
efficiency they bring to company. This is owing to unique features of every member of personnel that when
integrated pose a great power (Shenin, 2014).
The promotion foundation for workers has been chosen as field of study. The options below are
factors contributing to change and if composed able to correlate with each other:
Work efficacy of main worker in relevant manufacturing or service(We);
Proportion of main workers to overall quantity of personnel;
The work virtue of non tangible resources;
Proportion of non tangible resources to entire actives;
Provision of promotion-directed funds to integral base;
THEORETICAL ANALYSES OF FAMILY BUSINESSES

The afterwards of above stated factors have been subjected to have pertinence between each other. From
these results, there was emerge of economic-mathematical chain demonstrated as the next:
= * * * * ;
Its clear from equation above that for influence sake one should take five necessary steps. During the
discussion its of prime importance to take into account impact of various factors,in this respect one of the
conventional approaches- the method with change in chains would work as intended.
To facilitate account the result of the "it" factor can identify with xi. In that case, the above formula will have
the following form:
5
= 1 * 2 * 3 * 4 * 5 = xi ;
n=i
Now the calculation of the five factors listed above can be changed as a result. One of the traditional methods
of economic analysis for which we recommend the use of chain sharing method. It is a factor to take into
account the impact of the series.
The first factor, the result (the effectiveness of the Fund to encourage staff) o'zgarishigabevosita key staff
involved in the production or service labor productivity (x1) impact (1) with the result of the first to identify
the factors taken into account (1 * 2 * 3 * 4 * 5) and the amount of results against planned or period
(1 * 2 * 3 * 4 * 5) loses:
1= (1 * 2 * 3 * 4 * 5) (1 * 2 * 3 * 4 * 5) ;
The second factor is the effectiveness of the Fund to encourage employees to changes in the main share of
the total staff (x2) the impact of changes (2) to determine the impact on the result of the first and second
factors are taken into account (1 * 2 * 3 * 4 * 5) and results in the first factors changecalculates the
amount (1 * 2 * 3 * 4 * 5) loses:
2= (1 * 2 * 3 * 4 * 5) (1 * 2 * 3 * 4 * 5) ;

To encourage staff to change the effectiveness of the Fund The third factor, that is, non tangible assets
mehnatliligi (x3) impact ((3) to determine the outcome of the first, second and third factors are taken into
account (1 * 2 * 3 * 4 * 5) and resultsand the second factor is a change in the amount of (1 * 2 *
3 * 4 * 5) loses:
3= (1 * 2 * 3 * 4 * 5) (1 * 2 * 3 * 4 * 5) ;
The result is an indicator of the effectiveness of the Fund to encourage staff to change in the fourth factor, the
share of the total assets of the non tangible assets change (x4), impact (4) to determine the outcome of
the first, second, third and fourth factors are taken into account (1 * 2 * 3 * 4 * 5) and results in the
first, second and third factors, calculates the amount of change (1 * 2 * 3 * 4 * 5) loses:
4= (1 * 2 * 3 * 4 * 5) (1 * 2 * 3 * 4 * 5) ;
The result, a change in the effectiveness of the Fund to encourage the staff of the fifth factor, the total assets
of the funds allocated to stimulate the provision of (x5) impact (5) to determine the outcome of the first,
second, third, fourth and fifth factors are taken into account (1 * 2 * 3 * 4 * 5) and results in the first,
second, third and fourth factors, calculates the amount of change (1 * 2 * 3 * 44 * 5) loses:
5= (1 * 2 * 3 * 4 * 5) (1 * 2 * 3 * 4 * 5) ;
All features need to be conluded with draw of staff's rewarding funds against productivity. It should be used
following:
1 = 1 2 3 4 5 ;
CASE STUDY OF FAMILY BUSINESS STRUCTURE

By putting abovementioned methods into practice, the potential force that can create a change in promotion
efficiency reveals in detailed features. The salient example used in demonstration of given words is family
venture ''Bek''. Two tables given below would divulge this view. The former highlights practical information
toward index results and factors contributing to alternation, while the latter accentuates on individual change
aftermath of each factor.
It can be observed that, ''Bek'' family business venture has seen myriad vicissitudes in terms of
promotion efficacy of workers within the company, which befell in accounting factors of it as well. The main
advances were in the aspect of sold items and service numbers when growth exceeded the point of 113%,
113,3 to be more precise. In the same vein, the increasing demand for non tangible resources emerged great
clamours for it,which thereby increased as much as 113% in magnitude.

Special issue
Table 1.The aftermath of calculations of worker promotion efficiency and factors influencing on efficacy in the
private enterpreneurship Bek based on family business structure
No. Name of aspects Last year In Difference Change
calculation (+,-) pace, %
year
1. Sold product,whole price of service, 1345,4 1497,4 +44,0 113,3
millionUZS
2. All workers number, person 122 128 +6 104,9
3. Number of main bodies,person 113 118 +5 104,4
4. The average cost of non tangible 32,3 36,5 +4,1 113,0
sources,millionUZS
5. The average cost of all 1282,6 1388,4 +106,0 108,2
sources,millionUZS
6. The promotion of workers foundation 118,5 127,9 +9,4 107,9
overall amount,millionUZS
7. The labour efficiency of main 11,91 12,69 +0,78 106,5
bodies,millionUZS
8. Proportion of main bodies to all 92,5 92,2 -0,3 99,7
workers number,%
9. Labour factor of non tangible 3,777 3,507 -0,270 92,9
resources, person
10. Quantum of non tangible actives to 2,52 2,63 +0,11 104,4
overall base,%
11. Distribution of promotion based UZSs 10,82 10,86 +0,04 100,4
to integral resource, thousand UZS
12. Efficiency of promotion foundation for 11,35 11,71 +1,12 103,2
personnel, million UZS
Expansion in personnel quantity reached 104.9%,104,4% of which are main bodies. Currently, likewise to
many enterprises family entrepreneurships are also suffering workforce boom and proportion of them in crew.
The average growth of entire resources of the family venture has grown up to 108,2%,while the size of
foundation concerning promotion efficiency of worker and labour productivity of main representatives
elaborated to 107,9% and 106,5% respectively, which can be seen as guarantee label for sustainable
development of this aspect.
However, there were two considerable downsizes in this company:
1. Reduction in proportion of main workers to the rest personnel by 0,3%.
2. Labour capability of non-tangible resources that curtailed to tremendous 7,1%

Given instances are indeed hindrances in the way of attaining stable rates in respect of productivity and
efficiency. The table above has done emphasis on various contributive factors that potentially create changes
and different growth rates.
According to the Law of the Republic of Uzbekistan About family business, family enterprise has right to
involve credits to form initial (starting) capital. The most popular way of external business financing is
commercial banks credits. Some of them provide special credit lines to open credit small-scale business. For
example, "Microcreditbank" of the Republic of Uzbekistan grants loan to form initial capital for the term up to
18 months at 50-fold size rate of minimum salary for entrepreneurship subjects without formation of entity and
100-fold size of minimum salary for entities. National bank of the Republic of Uzbekistan, Orient finance
bank and some other commercial banks has the same program. Amounts, terms and interest rates differ.
Common thing for such credits is that they grant loans to newly created entrepreneurship subjects
(microfirms, small enterprises, peasant and farms, and sometimes-individual executives), in time no later than
six months from the date of their state registration.
One of the distinctive domains of analytical analysis is to explore each change mergers result, below is
one of the classic instances for it explaining all step by step.
Table-2. Analysis of the factors contributing to change of efficiency rate of workers promotion in Bek
private company based on family venture structure
factors (i) Last First factor Second factor Third factor Fourth factor Fifth factor
and result year with result with result with result with result with result
(R)
1 11,91 12,69 12,69 12,69 12,69 12,69
2 92,5 92,5 92,2 92,2 92,2 92,2
3 3,777 3,777 3,777 3,507 3,507 3,507
4 2,52 2,52 2,52 2,52 2,63 2,63
5 10,82 10,82 10,82 10,82 10,82 10,86
R 11,35 12,09 12,05 11,19 11,68 11,71
The information provided by 2nd table explains makes it obvious that the efficiency in the rate of workers
promotion has been enlarged by 0,36 million UZS, mainly due to 5 reported factors manifested by 2nd table.
The influence can be measured using the chain change approach.
Initially factor standing behind increase of foundation directed to elevate promotion efficiency
that grown labour efficacy of main workers up to 0,78 million UZS or 0,74 million UZS in
competency.
Creation of change was also on the behalf of decrease of proportion of cornerstone crew
members to overall number of workers by 0,3% or 0,04% million UZS fall in the foundation of
promoting efficiency of workers.

Special issue
Another major contributor was the capability of non tangible resources, which ultimately abated
by 0,270 persons and reduction in 0, 86 million UZS afterwards in result.
One of the prominent points that accounts for vicissitude mould was supplementation in the
proportion of non tangible resources to all sources 0, 11% overall or 0, 49 million UZS in
financial respect.
The final point extension in provision of promotion-dedicated funds to integral source base by 0,
04 million UZS or 0, 03 million UZS in index.
All in all, following calculation is derived from analysis performed above:
0,74 0,04 0,86 + 0,49 + 0,03 = +0,36 million UZS.
Reported assessment method was one instance for enrichment of promotion efficiency. Reduction in
proportion of main workers to the rest personnel by 0,3% and Labor capability of non tangible resources that
diminished to enormous 7,1% were two bad affected factors without which efficiency and labor productivity
could be rose in insurmountable rates. The fatal repercussions would have never been occurred if rates were
slightly increased at the beginning, giving not 103,2% in efficacy as its now but 111,1% after feasible change
in quantities (Fedorov, 2012).
The following conclusion can be drawn after discussing all things, factor analysis is not harnessing in
family enterprises at all, which considerable minimizes discovery of inner possibilities. Several methods
pointed in given article would be key point for those have not used ways of development. After all, they are
expected to bring giant benefits to society and thriving of business, itself, thus addressing elevation of living
standards and maintaining equilibrium within families(Dronzina & Houdaigui, 2012).
CONCLUSION AND SUGGESTION

Family business should correspond to following important criteria in order to receive external fi- nuancing on
formation of initial capital from commercial institutions or structures, which are engaged in business support:
possess high potential growth;
have industrialized staff, capable to work hard in order to achieve goals of the enterprise
its profitableness growth;
head of family business is capable to convince potential creditors/investors in interest and full readiness of
the family to start its business and achieve success in competitive struggle;
family firm confidently positions itself in the market, knowing its strengths and weaknesses of potential
competitors, etc.;
Thus, what way family firm would choose to obtain initial capital, its heads should formulate and
organize its activity so that as a result of commercial operations this capital was not simply compensated, but
also make profit. Second task of planning is to co-ordinate incomes and expenses (inflow and outflow of
monetary funds) so that enterprise has always money to fulfill current obligations: payment of invoices for
delivered goods and services, credits repayments, payments of taxes and obligatory payments, payments of
employees salary.

REFERENCE
Almatova, D. G., & S Gulamov, S. (2014). Regional Economy Of Uzbekistan Modernization The Regional Economy Of
Uzbekistan. , (3), 1518.
Ambrosio, T. (2015). Leadership Succession in Kazakhstan and Uzbekistan: Regime Survival after Nazarbayev and
Karimov. Journal of Balkan and Near Eastern Studies, 17(1), 4967.
Clem, R. S. (2011). From the Arab Street to the Silk road: implications of the unrest in North Africa for the central Asian
States. Eurasian Geography and Economics, 52(2), 228241.
Dronzina, T., & Houdaigui, R. El. (2012). Criminal Groups, Terrorist Organizations and Drug Trade and Trafficking in
Kyrgyzstan. Contemporary Suicide Terrorism: Origins, Trends and Ways of Tackling It, 101, 158.
Ergueshev, Z. (2012). Criminal Groups, Terrorist Organizations and Drug Trade and Trafficking in Kyrgyzstan.
Contemporary Suicide Terrorism: Origins, Trends and Ways of Tackling It, 101, 158.
Fedorov, Y. (2012). Uzbekistan: clans, succession, and stability. Security Index: A Russian Journal on International
Security, 18(2), 3954.
Karimov, I. (2012). THE CONCEPT OF FURTHER DEEPENING THE DEMOCRATIC REFORMS AND ESTABLISHING
THE CIVIL SOCIETY IN UZBEKISTAN. Himalayan and Central Asian Studies, 16(3/4), 194.
Khudayberganov, D. (2014). THE ROLE OF SPECIAL ECONOMIC ZONES IN THE ECONOMIC DEVELOPMENT.
Retrieved from http://dspace.wul.waseda.ac.jp/dspace/handle/2065/44430
Malashenko, A. (2014). Exploring Uzbekistans Potential Political Transition. Nd): N. Pag, 31. Retrieved from
http://liportal.giz.de/fileadmin/user_upload/oeffentlich/Usbekistan/20_geschichte-staat/nachfolge_usb.pdf
McGlinchey, E. (2011). Blood, chaos, and dynasty: Islam and patronage politics in Central Asia. Pittsburgh: University of
Pittsburgh Press. Retrieved from http://mason.gmu.edu/~emcglinc/McGlinchey_Intro_Blood_Chaos_Dynasty.pdf
Shenin, S. Y. (2014). The Transfer of Power in Central Asia and Threats to Regional Stability. Connections: The Quarterly
Journal, 14(1), 137.
STEBLYAKOVA, A., & UVAKASOVA, G. (2013). ETHICS OF BUSINESS COMMUNICATION IN MODERN
MANAGEMENT. , (12). Retrieved from
http://cyberleninka.ru/article/n/ethics-of-business-communication-in-modern-management
Turker, A. T. (2014). Explaining Authoritarian Regime Variations in Post-Communist Central Asia. REVISTA DE TIINE
POLITICE. REVUE DES SCIENCES POLITIQUES, 28.

Special issue
http://ijecm.co.uk/

Uzbekistan
INNOVATIVE ASPECTS OF DEVELOPMENT OF THE ROLE

AND VALUE OF INVESTMENT FUNDS ON
THE SECURITIES MARKET
Zaynalov Djahongir
Professor, the chief of Financial and Insurance services department,
dz50@mail.ru
L. A. Talimova
Karaganda Economic University, Karaganda, Republic of Kazakhstan
S. S. Alieva
Professor, Samarkand Institute of Economics and Service, Uzbekistan
Khodjimetov Akmal Ashurovich

khodjimamedov@rambler.ru
Farrukh Tolibov Furkatzoda

Master, Samarkand Institute of Economics and Services, Uzbekistan
mrfarruxtolibov@gmail.com

Abstract
In this article importance of investment funds in development of a securities market, modernization of
economy, and activity of participants of a securities market is considered. The special attention is given
consideration of the difficulties arising in the course of increase of the investment funds importance and
investment capitals on a securities market, their role in distribution sphere, trade, the organization of export-
import transactions and other types of service.
Keywords: Investment, Innovative competitiveness, Investment funds, Economy of Uzbekistan
INTRODUCTION
As all subjects, institutes of investment funds affected to exactly economic sphere, which has decisive
influences on functioning all participators of the securities market. In this, even so inverted influence of
investment funds on this sphere is could not be ignored due to its narrow character. That is why subjects of
investment funds need to adapt to economic sphere, which had surrounded it and affect within the framework
of opening them opportunities. This totally concerned also to operations with securities (Abbas, 2013).
Before proceeding to directly consideration innovative aspects of development of the role and value
of investment funds on the securities market, it is necessary shortly characterize the modern economic
situation, trends and directions to development of the securities market. From variety flows of real moment in
economical processes, it is necessary to isolate those, who take a great role on organizations of operations
with securities. To exact directs and mechanisms such kind of influences lets understand the role and
meaning of investment funds of developing securities market and formulate rate of positions relatively
dictating the economic sphere with importance participation of local investment funds on securities market.
So, considering an important role of investment funds inside of market, The Republic of Uzbekistan
holds to big works about activating role of financial institutes of commercial banks, as main level of investment
process (Macroeconomic indicators of the Republic of Uzbekistan, 2014).
The last epoch have seen an incredibly successful to one of the largest economies of Central Asian
region-Uzbekistan dynamic growth of GDP around 8%, negligible amount of domestic and international
debt, underestimated exchange rate and even more interestingly relatively distribution of income. (Vladimir
Popov, 2014) Moreover the foreign direct investments, which is considered as a vital factor of growth in many
newly developing countries, is developed one of the primary part of national investment policy of states with
transition economy like Uzbekistan. On this basis, the government has done successful implementation the
notion of free investment climate into legislature by inaugurating different acts and laws, which regulate flow
of sources and simultaneously help foreign investors by providing various forms of information. (B. B. Valiev,
2014)
Unadventurously, it is widely held perception that oil and gas industry are the main sectors of
economy and paramount source of peoples welfare. The lions share of national economy, such as heavy
and light industry excessively rely on fuel industry. Equally importantly, Uzbekistan proclaimed and currently
is working under executing national program called On the priorities of industrial development for 20112015

Special issue
which accumulates more than 500 most-promising invest-projects, which assessed approximately 50 Billion
USD. (Parpiev, 2014) Summarizing the annual results for 9 month 2014, the implementation of the State
Investment Program approved by government in the share of attraction of foreign investments extended
102,7% over the yearly prognosis. Main part of foreign investments was put into the following sectors of
economy:
oil and gas 64,8%
power generation 6,6%
telecommunication and IT-technology 4,7%
credit lines for the development of small business entities 4,7%
road construction 4,4%
drinking water supply and sewage 3,8%
construction and construction materials 3,1%
agriculture and water management 2,1%
textile 1,9%
The majority of investment projects have been established in the association with more than 30 countries all
over the world such as China, Germany, South Korea, Japan, Netherlands, Great Britain, Malaysia, and
Russia etc. (MFERIT - Statistics investing activities)
BACKGROUND OF UZBEK INVESTMENT POTENTIAL

As one of the Central Asian countries Uzbekistan possesses a range amount of natural and mineral
resources as well as pleasing weather, extraordinary background, hospitality, multiculturalism, tourism and
recreation infrastructure like hotels and international class airports which highlight economic potential of state.
It is also one of the few and unique countries which combines the high living standards, comprehensive
medical care and sophisticated education system and minimum cost of living. In addition, Uzbekistan is the
country that is well known for the greatest towns with hundreds of architectural monuments of different
epochs. Samarkand, Tashkent, Bukhara, Khiva and other cities is regarded as the main industrial trade
centers of country and architectural heritages of the world as well (Macroeconomic indicators of the Republic
of Uzbekistan, 2014).
According to statistics given by states in 2014, there was a remarkable increase by 8.1% (Table 1),
making it in marginal advantage over the results that demonstrated in 2013. Strike encountered in Russian
federation has directly exerted on lesser growth owing to fact that Russia represents as one of the major trade
companions as well as big contributor of finance transmission. As a result, depletion occurred in both external
and internal scales in trade and remittance. Moreover, lower income from export expedited devaluation of the
Uzbek sum toward the US Dollar. States, however, in order to keep interior demand, augmented expenditures
to public and commercial loaning. In balance, two deployment industry and services benefited most, while
industrys rate revealed slight decrease from 8.8% in 2013 to 8.3% in following year with eliminating from
construction, from 13.7% in 2013 to 15.4 has increased the percentage of services. Due to current condition
of modernization program that is implementing in industry by tremendous assistance of public investment,

there was a huge contribution in production of machinery, metals and chemical, thereby surged to 10.2% and
made approximately 40% of entire production. As regard to services, nucleus output has seen in information
and communication technology with 24.1% and finance strongly backed from demand as well as local lending
(Macroeconomic indicators of the Republic of Uzbekistan, 2014).
Table 1. Macroeconomic indicators in January-September 2014

Billion. UZS Annual growth
comparing with previous
year
Gross domestic product 100309,5 8,1%
Industrial output 54401,3 8,4%
Agricultural output 28094,5 6,8%
Investments in fixed capital 23831,2 10,7%
Construction work 15034,6 18,9%
Retail trade turnover 41664,3 4,2%
Services, total 57197,2 4,7%
Source: The State Committee of the Republic of Uzbekistan on Statistics
Distinguishing peculiarity investment funds of last times appears increasing portion innovations in technical
rearmament and reconstruction of acting business (products) directions of investment principally on basic
industry machinery, agriculture.
Figure 2. The growth of investment in capital investments in the domestic economy
Series1
160
128.3 124.8
122.9
109.1 113.6 111.2 109.8 109.6 117
120 107
101 Anticipation
80
40
0
2000. 2005. 2006. 2007. 2008. 2009. 2010. 2011. 2013. 2014. 2015.
% Calculated according to the State Statistics Committee of Uzbekistan for 1999-2015 years.
Hence, if in 2000 growth of investment in economic Uzbekistan comparing with 1999 amounted in all 1,0%,
that in 2014 this mark had already get 9,6% (or 33,715 trillion sums), (see figure 2). Moreover, in 2015,
according to forecasts parameters, exacted governmental Program contracted building works in 2015, size of

Special issue
capital investments to economic of Uzbekistan overreached to 40,6 trillion sums with increasing to 17% mark
of 2014.
Economics of transition period makes all necessary chances for activating value of investment funds
on the securities market, but also gives an opportunity for concentration in our hands considerable portion of
this market and affair the monopolistic situation in it.
It is clear, that investment funds aimed for its resources, to begin with, on that branches, where its
guaranteed strong(unless it is no monopolistic) positions on market, or where it could be provided, having
bought several connected among itself the stocks of native enterprises.
Nowadays investment funds, as section of economic modernization, to set goals get strong positions
in reason of holding social-economical actions. For that having felt sharp native investment of funds, business
hang on no only having had peculiar funds, which accounts meaning of native economics, local and
branches characteristics but also availability of business connections, entrepreneurial ability (MFERIT -
Statistics investing activities, 2014).
Trade and catering that are considered as an important subsector has amplified with 17.5%. Awful
weather condition, though, was not impediment for yielding a positive account in agriculture, which
demonstrated a better output assimilating to production of 2013 owing to healthy vegetable yields and
enhancement of livestock goods. Complements in emoluments and pensions, public investment mercantile
loaning were main assistance in growth of demand indoors country. Private intake has remained because of
19.1% escalation in public sector salaries.
Table 2. Index of External Trade Turnover

Amount ( in million USD) Annual growth comparing with
previous year
External trade turnover. 21277,0 0,6%
Exports 11096,9 0,2%
Imports 10180,1 0,9%
Balance 916,8
Total trade turnover of country which calculated by adding quantity of exports and imports of state reached
21,2 billion USD with the 0,6% growth in comparison with analog period of previous year. The balance of
export and import is positive, about 916 million USD with 11,1 billion USD against 10,1 billion USD
respectively. But annual growth of imports is more than export rise, 0,9% versus 0,2%.
Therefore, governmental actions carried out activate value of investments funds on the securities
market gives its positive results, making unnecessary technical-economic conditions for scaled developing of
securities market. Especial attention in this is pay for formation and activation market mechanism and
investment funds institutions, contributing to formation of favorable investment climate on the securities
market (Almatova & S Gulamov, 2014).

All in 2014 was signed 893 exchanging business (in 2013-941 business) in reason which is realized 178
339,8 thousand shares 120 incorporated shares to general sum 89,3 milliard sum and 7,7 thousand
obligations of four elements in 8,3 milliard sum.
Moreover, Gross fixed finance foundation has enlarged by 10.9%. Investment taken by foreign
executives has comprised just under $3.0 billion, from total $14.6 billion capital investment. There were
perceptible assignments that aid to escalate the economy of Uzbekistan. First, project of extension of the
General Motors Uzbekistan car manufacturing that has perfected in 2014. In order to supply gas to the
Peoples Republic of China gas pipeline has launched and already terminated(Macroeconomic indicators of
the Republic of Uzbekistan, 2014).
This gas channel will bond Central Asia with the Republic of China. Furthermore, the serious
considerable upturns were seen in pecuniary lending by commercial banks elevated to 31.2%, while by official
report that has done by the state there was 6.1% as average per annum in inflation rate in last year.
Depletion in price of food in a global scale eventuated slow inflation in official consumer price. According to
certified information presented by the International Monetary Fund, there were quiet different ratios with
lessening in inflation rate from 11.2% in 2013 to 8.4% currently. It is expected to have a rise in fourth quarter
as a result of devaluation of Uzbek sum to US dollar(B. B. Valiev, 2014).
As regard to informal restraint market ratio, national currency lose its worth in one fifth in previous
year with last quarter being poised as a high point of acceleration, though owing to reduction in price of global
fuel. However, the Central Bank of Uzbekistan responded by expediting official depreciation of currency to US
dollar and legislated a strict regulation related to import controls. (Asian Development Outlook 2015:
Financing Asias Future Growth | Asian Development Bank)
The main reason of reducing rotations in primitive market RFB Tashkent last year appeared lower
activity of commercial banks on exposing extra emissions its securities, so that placing the biggest part
(more than 90%) issued in 2014, extra emissions of shares was realized by the way closed signing.
Accounting year is observed significant falling rates of the secondary exchanging securities market.
Specific weight of size of the secondary placing securities was made up 33% or 32,2 milliard sum,
that rather to 65 lower level of 2013 (34,3 mlrd.sum), from those -1,25 milliard sum, business with corporative
obligations and 1,0 milliard sum business REPO (look at picture 4). One of the reasons of reducing of
commercial activity on the secondary market is the deficit of suggestions to the secondary market of large
shares, financial stable companies, distinguished with relatively more higher liquidity and investment able
attractive, for that shares, most of it is found ownership of government and is not found as resource for the
secondary market.

Special issue
Figure 2. The structure of the exchange of the securities market for 2010-2014.
Republic stock market Tashkent is one of the trading squares, in which carried out placing and circulation
corporative obligations of republic. However, also here is found a significant reducing of market activity.
So, if exchange transaction with obligations in 2013 was made up 36,0 milliard sum, that for 2014 this mark
decreased rather in 4 times and was 8.3 milliard sum.
ECONOMIC PERSPECTIVES AND TENDENCIES

The similar rise has encountered in percentage of 2013-2014 years broad money with 26% in both years,
thus accentuating greater domestic credit. Questionnaire made to calculate finance as broad money is not
accessible, though quota of foreign tenures within banking system might fall in quantity as a result of
overcoming in rate of domestic credit over broad money.
As to 2014, budget surplus in GDP of country was at level of 0.2% relying on data proliferated by
government. It has been computed that advanced budget balance have comprised 2.4% surplus of GDP in
2014, making it barely less than results of 2013 with 2.7%. Annual income to budget has seen depletion in
0.1% in 2014 year comparing to rate of 2013 year with 36.1% and 36.2% respectively. Similarly, prices for
international major export goods was in minus as well (see fig 3).

Figure 3. Structure of the import for the year 2014
Consecrating funds to escalate the compartments of wages, pensions, health care as well as education have
composed a great bulk from entire budget making enhancement in allocation of expenditure from 33.5% of
GDP in 2013 and 33.7% of GDP in following year (Asian Development Outlook 2015: Financing Asias Future
Growth | Asian Development Bank, 2014.). Moreover, as a result of enlargement in the share of loaning
finance from external sources the sheer governmental debt has increased in this account. Ongoing states
surplus assessed to comprise smaller percentage to last year repercussions, thereby portraying lesser trade
surplus as well as minor remittances. Exterior markets requirement for local commodities from Uzbekistan
was frail as usual, while key export goods have crossed margin of debilitation as it have been ever before.
This phenomenon emerged after presenting reduction in output from energy that compiles almost 30% of
exports. Detailed looking at the number of exports, it will be apparent that exhaustion in price for energy has
followed the identical trend in global oil prices.
The key two commodities that account for lions share of importing goods were consumer goods and
chemicals. The whole trend of imports went up by 1.1%, in contempt of reduction in quantum of machinery
and equipment to about 10% assimilating to 2013, these aspects held a nucleus position counting for 40% of
entire import rate. If we look in details of import goods (Figure 4), it could be noticed the prevalent role of
machinery and chemical industries which occupy more than half part of total. In contrary, Figure 4, which
reveals the share of various industries into total export goods of country, is predominated by raw materials-
based industries and energy resources. In addition, machinery equipment and chemical production have
significant contribution to export consistency of state.

Special issue
Figure 4. Structure of the export for the year 2014
POLICY OF INVESTMENT
Objective factor restraining of rising the role of investment funds on developing securities market in country
stands as prolonged process of financial stabilization and eliminating factors of arising from world financial-
economic crisis. That was marked by President of Republic of Uzbekistan I.A. Karimov in opening ceremony
of International conference About role of small business and private enterprise in realization social-
economical politics in Uzbekistan at all elected model by us about reformation and modernization of country
played a decisive role in Uzbekistan for warning and neutralization negatives and destructive consequences
of global financial-economic crisis, out broken in 2008. Crisis, which today unfortunately, had deepening of
tendency (Almatova & S Gulamov, 2014; B. B. Valiev, 2014; Vladimir Popov, 2014).
For eliminating factors, preventing increased role of investment funds on securities market
unnecessary finances participators securities market, facilitate increasing issues investment projects for level,
increasing yield riskless operations of financial market. Main difficulties in the way of increasing meaning of
investment funds and investment capitals in securities market are due:
changing of foreign economic conditions, which can be added to the numbers of beginning world
financial- economic crisis, and then tendency decreasing of world prices in raw resources and
particularly nonferrous metals, that promoted shortening income currency from export;
limiting size of conversion received profits of investors from participating in cooperative businesses,
investment projects, also from operations with securities;
fast reformation activity of investment funds institutions, miscounts in organization of cooperative
securities market;
Unlimited methods of governmental regulation of investment funds institution activities without
complaining inclusion in general mechanism of regulation elements of own regulation;

Therefore, directs of investment funds in real sectors of economy, shows, that budgetary resources until plays
significant role in Uzbekistan, at one time when portion in extra-budgetary origins, share investment of lend
origins financing investments stays low.
As the developing role and meaning of investment funds must be increased and piece of foreign investments
at the expense of progressive financial equipment and increasing attraction of native economics.
For fairness it should be marked, that, despite the increasing specific weight of foreign investments,
dynamic increasing its absolute parameters stays unclearly. Beside it, should not forget about, that in big
problems, which market developing countries in connection with unfounded attraction of foreign capitals had
already faced.
Herewith it should notice, that foreign capitals invests in native economics unlimited or disposable (in
buying or creation production), that time when repatriation happens constantly.
Even so in more accidences the capital invests to the branches of economy, where might be
maximum benefit, and it can call disproportioned developing individual spheres of native economics.
Unconditional, if at investment funds stays the aim to develop its activity in securities market, than
they should give priority productivity social-meaningful, agriculture, food industry, machinery, medication and
etc. If the primary task of government-not lets increasing of social intensity, than it needs to place
investments in building dwellings, production construct equipment, developing branches, connected with
creation of a large number of working places.
Therefore, investment funds institutions should formulate exact determination of priority in securities
market, allocation sphere, commerce, export-import operation organizations and other types of services.
Moreover, it must be not forget about its interest to put resources in securities that subjects of
production of goods and services, which is competitive in world market (Akimov & others, 2015).
Narrow segment of the securities market objectively services as a factor, limitation tributary of foreign
investment, even in priority sphere of economics.
Therefore, actions of government regulation investment funds must be directed, firstly, to creating
conditions for investing in that having potential businesses, products which yet not complies to demands of
world market in its train moral or physical uselessness will be used here technologies and equipment (Asadov
& Aripov, 2009; Faramani & Moradi, 2014).
To summarize above mentioned, it should be marked, that current situation in conditions post crisis
period, had influenced in role and meaning of investment funds and developing securities can characterize
with following qualities:
recession products;
deficiency liquid resources, expressed with destabilized (or low stabilized) defaults;
variability level of inflation;
the massed adoption government in funds market by means of securities;
formation of investment economical structure in base of equity possessions.
Beside this, the main influence to role and meaning of investment funds in operations with securities provides
specificity organizations systems of investment funds, and especially, their number, level of concentration,

Special issue
structure of ownership, and, of course, normative installations of organs, regulating activity of participators
securities market.
All above-mentioned conditions could be realized effectively only by domain of investment funds
considerable piece (unnecessarily with control packets) it could be enough 40% voted shares of business
debtor, which gives their contacts necessary stabilization and predictability.
All institutes of investment funds, connected in one system, can introduce ourselves professional
infrastructure of fund market generally, particularly investments. Including this trying had done by us to look
through role and meaning of investment funds in securities market in context of investment aspects.
Clearness of business action results are unnecessary to all subjects of market contacts. In this connection
appears necessity thorough analyze developing of the securities market (Bohr, 1998).
Especially it is actual at problems on sphere business actions of investment funds as separated
organizations etc. shares forms property carried out cultural business only in emission form property of
securities and deals with alien securities. This means, that in funds market they act at the same time and as
investors, and as elements.
The developing shares business of companies originated necessity in new rules regulation of
securities market and changes in acting inadequate inquiries of participators securities market (Fedorov,
2012; Haidar, 2014).
From here it should note, that problems of regulation securities market consist of keeping this order of
implementation operations with securities, which present situation in the most level may they answered
interests of country. Availability diversified financial instruments, committing operation with them and several
participators of securities market causes necessity in making this financial m mechanism of regulation market,
which could look difficult, always developing organ, normal work which allows effectively reacted, as real
demands of securities market, so and real inquires its participators, that may let provide balance interests of
participators.
Discrepancy among needs for maintaining stability principles of behavior in the market and demands
their corrections including dynamic changing inside and outside situations engenders problems of perfection
financial mechanism of regulation the securities market according to needs of real life and demands for
market, its participators at general. In necessity changes of financial mechanism regulation and choice
optimal forms of correction this mechanism, which at the same time saved its stabilization and succession,
consists on basic problem, standing before any organs of regulation funds business.
Touching the securities market, located on dynamic changed stage, problems of regulation
transformation in problems inventing completed innovation mechanism.
This requires from government producing weighed approaches and creating innovation system of
regulation activity its participators, which in most time dependent on stability of the securities market in
condition of dynamic changing inside and outside situation.
In this situation, formation of above-mentioned approaches must base on weighed accounting
limitations and difficulties, in which will functioned participators of native the securities market.

LEGAL PROCEDURE OF REGISTRATION INVESTMENT ACTIVITY IN UZBEKISTAN

The main licit document, which provides information about guarantees and privileges in each particular case,
is - investment agreement, which is concluded between the Government of the Republic of Uzbekistan and
foreign investor (Figure 5). This legal act instructs rights, duties and responsibility of entrepreneurships with
regard to their investment activity. The responsible body, which represents the country and conclude
investment is - Ministry of foreign economic relations, investments and trade of the Republic of Uzbekistan.
Moreover, the negotiation can also include list of other measures and protections to those requires by the
legislation, for instance, creation special custom, reducing the burden of tax and payments regime, forming
the state monitoring on execution of investment projects.(Procedure of investment agreements conclusion
and fulfillment UZINFOINVEST the Information Support & Foreign Investments Promotion Agency)
Figure 5. Process of making investment agreement
Having at real moment several segments forming funds market of Uzbekistan it is necessary secure from
possible desalinization factors, caused to necessity creating flexible financial mechanism of controlling the
possibility its participators, as from government side, so and from side of professional its participators. It is
clear, that securities market needs to regulation. Especially now, when increasing demands in formation
effective financial mechanism of regulation the securities market is due as objective reasons, leaving its roots
for economical inwardness and nature fictitious capital, so and subjective preconditions, connected with
features of model of economics of Uzbekistan.
Therefore, the current at real stage of time objective tendency developing of the securities market
exact organizations process conducting operations with securities and proper orders behavior of all
participators of market. Organization process holding operations in the securities market do not tolerates
dilettantisms and anarchy. High complexity and dramatic changes status the securities market in condition
dynamic changing situation, presence in it a large number of professional participators, size of business and
information can create condition for abuses , decreasing trust to market from the side of interests, in
conclude capable lead to decreasing its effectives. That is why in this given situation of developing the
securities market and its innovation model the basic meaning (Bohr, 1998; Djanibekov, Sommer, &
Djanibekov, 2013).
Therefore, the current at this point of time is an objective trend of development of the securities
market requires a clear organization of the process of operations with securities and orderly behavior of all
market participants. Organization of operations on the securities market does not tolerate amateurism and
anarchy. High complexity and rapid change in the state securities market in a rapidly changing situation, the

Special issue
presence of a large number of professional participants, the volume of transactions and information could
create conditions for abuse, reduce confidence in the market by investors, eventually could lead to a drop in
efficiency. Therefore, at this stage of development of the securities market and its innovative model especially
important to the timely formation of an effective financial mechanism of regulation of the securities market,
ensuring the implementation of common standards and rules while providing safeguards for the protection of
investors' rights, whether by public regulatory bodies, and of his professional participants (Bobojonov et al.,
2013; House, 2014).
In terms of crisis management made attempts to form an innovative mechanism of regulation has not
yet come to fruition, as the initial prerequisite for the formation of the financial mechanism of regulation of the
securities market remains opaque system reform of property relations. Practice of the first phase of the crisis
in Uzbekistan (2008-2009) Showed that an incorrect attitude to the activities of economic entities, particularly
joint, capable of changing the methods of formation of a securities market, without changing the economic
and legal foundation of their dealings in the stock market. It should be noted that subsequent stages in the
formation of innovative models of development of the stock market indicate the need for timely formation of
the financial mechanism of control, coordination and supervision of the stock space in a dynamic internal and
external situation, including as a method of clear government regulation, and the methods self-regulation by
the professional participants of the securities market.
Consequently, in terms of crisis management the need for effective state regulation of securities
market strengthened more than ever it possible, as in these circumstances, the domestic economy faced the
task of not only rapid innovation development of the securities market, and to ensure its sustainable operation
in order to ensure stable inflow into the domestic economy of investment resources of domestic and foreign
investors (Almatova & S Gulamov, 2014).
The introduction of a financial mechanism, namely, the additional investment on the part of various
financial creditors (i.e. commercial banks, pension funds, accumulative pension funds, etc.) in the
modernization of production, financial recovery, the introduction of new innovative products and management
practices, as well as the recovery and job creation, has an important place in the process of revitalization of
the securities market in the post-crisis period.
Moreover, as we know, the result will be a positive change in the activities of financial institutions in
the securities market. Qualitative changes may occur in the structure of the securities portfolio of commercial
entities.
The President approved the program "On the priorities of industrial development of Uzbekistan in
2011-2015". To fulfill the requirements of this program, commercial business entities have now begun to
conduct a large-scale work on the financing of projects aimed at the diversification of production, production
of high-tech products with high benefit based on the rational use of the country's potential financial resources
by issuing shares and bonds. For the creation of new innovative enterprises and the implementation of new
investment projects, the most preferred source of financing acts equity. The issue of ordinary and preference
shares attract the share capital. Their potential buyers even in a high-risk customers are interested in
products (goods, services, etc.) produced as a result of the commissioning of the investments and foreign

investors interested in return on investment, profit or gains core capital. Of course, the role of the state should
be a priority(Almatova & S Gulamov, 2014).
This approach to the regulation of the securities market can provide a range of policies not only
control - supervision of securities, but also increase the financing of innovative investment projects and
optimize the structure of their sources and the role.
State management bodies under the effect, firstly, to create a powerful and priority legal framework
that takes into account not only the market conditions and the interests of the corporate members of the stock
market, but also the public interest relating to the need to establish a flexible system of capital flow into the
most competitive and vital areas the economy while maintaining the competitiveness of the securities market
participants.
Secondly, state regulation authorities could monitor the implementation of securities market
participants and the application of uniform rules of tough sanctions against those who violate them.
Third, the state would have had the opportunity to do more for the interest of economic entities in the
formation of the modern institutional infrastructure of the domestic stock market, which unites local markets
into a single system through the use of preferences, preferential credit guarantee system for investments in
infrastructure, direct state investments in key infrastructure (Asadov & Aripov, 2009; Haidar, 2014; Minazzi &
Lagrosen, 2013).
Thus, the innovative model of development of the securities market caused by the increasing demand
for the creation of an effective financial mechanism of regulation of the domestic securities market and, above
all, the growing need of the economy for investment, which is essential for modernization, technical and
technological renewal, the introduction of new products, consistent build-up export-import capacity and raise
living standards through the creation of new jobs.
The state today has logistical and resource base, financial, economic and professional human
resources. "Today there is no need," - said the President of the Republic of Uzbekistan - "to persuade or to
prove to someone that only educated and modern-minded, intellectually developed and professionally trained
young people can be the most important condition and guarantee high-quality, dynamic and innovative
development can provide decent future countries". State in particular, should take all necessary measures to
transform them into the most capable members of the securities market that can not only monitor the activities
of the stock in the country, but also make a significant contribution to the qualitative development of the
securities market (Kantarci, 2007; MFERIT - Statistics investing activities, 2014.).
Fourth, the scale-up of the securities market needs to be improved both institutional and functional
mechanism for regulating not only the issue, circulation or service stock tools, but also address the
supervision of the establishment and functioning of specialized institutions of the stock market, designed to
serve the innovative segments of the securities securities.
Formation of an effective financial mechanism of regulation of the securities market is a necessary
condition, including, and for increasing the engagement of the securities market of personal savings of the
population, ie, in his absence or slow the formation of depositors, experiencing the fear of financial fraud on
the part of individual investment institutions may direct them to the informal sector or abroad. Unfortunately, in

Special issue
many countries with economies in transition in the post-crisis period, can be traced not only positive, but also
negative consequences in the process of placement of investment capital and the associated free cash
securities market participants.
CONCLUSION
The analysis showed that for the financial systems of the countries with economies in transition is
characterized by super-concentration of ownership and concentration of market liquidity, essentially only in
stocks - blue chips. This is one of the characteristics of the securities market, which leads to the possible
risks. The lack of broad market listed shares of domestic corporate enterprises - gray chips - does not create
market stability and leads to increased volatility. The problem may be exacerbated and in connection with the
diversion of financial resources of the countries with economies in transition abroad, in the example of market
in the developed countries.
Of course, there are innovative proposals, and to address these problems should be through the
establishment of international financial centers, in particular in the city of Moscow. This proposal deserves
attention because such innovative events can create the necessary conditions for recovery of finance that
could eventually accommodate investment resources in socially important sectors of the economy and thus
on the one hand, to guarantee the rights of ownership of securities holders, and on the other - to improve the
liquidity of the securities, mitigate risks, reduce transaction costs in the distribution of securities and to make
an effective flow of financial resources towards innovative consumers. Thus, the main factors to strengthen
the role of the financial mechanism of regulation of the securities market are:
unstable institutional development of the securities market, as well as the existing backlog of forms
and methods of control over their development;
Increase the scope of the securities market in the country and an increase in direct proportion to the
degree of risk of various categories of investors;
intensify and increase the scale of the needs of individuals to attract savings in securities and its
effective regulation through financial mechanisms;
increase the requirements for quality innovative level oversight of the securities market participants;
Decrease in the yield on government securities, stimulating expansion of the range of innovative instruments
traded in the securities market;
appearance innovative securities transactions that require a differentiated approach to the
assessment of their effectiveness and improve the effectiveness of effective state regulation through
effective forms of control of the securities market;
Improving the interest of foreign issuers to the expansion of international speculative capital, which
might be caused by the global financial and economic crisis;
Lessening of existing regulatory framework of corporate law and taxation from the real needs of the
participants of the securities market and generally accepted international standards;

appearance need to improve accountability of officials for ensuring market transparency and
preventing violations of shareholder rights.
The presence of the above prerequisites makes the issue of formation of an effective financial mechanism,
control, coordination and supervision of the securities market participants in one of the key questions of the
further institutional development of the securities market of Uzbekistan to ensure its stability, transparency
and the availability of foreign investors to attract personal savings (Abdullaev, Konya, & others, 2014).
Accounting factors hindering the development of the securities market in a rapidly changing internal
and external situation provide a range of effective policies of securities market regulation, placing on
enterprises and optimize the structure of the sources of its formation.
Therefore, by doing all the proposed requirements, joint-stock companies can ensure the effective
and successful management of its own financial assets, whose role in the operation of the subject is large
enough, as they are the liquid part of all of the assets of the company. While all types of financial assets in
varying degrees are the most liquid (except for bad debts), the overall level of their emergency liquidity should
provide the necessary level of solvency of the company at the current (particularly urgent) financial liabilities,
which in turn will enhance the role of and the value of investment funds in the development of the securities
market. To conclude with, Uzbekistan has been establishing the investment atmosphere while organizing
contemporary facilities.
REFERENCE
Abbas, S. T. (2013). INDUSTRIAL FREE TRADE ZONE IN UZBEKISTAN. In 2013 11th KALM International Conference
(pp. 163168). Retrieved from http://www.dbpia.co.kr/Journal/ArticleDetail/3194672
Abdullaev, B., Konya, L., & others. (2014). Growth Maximizing Tax Rate for Uzbekistan. Applied Econometrics and
International Development, 14(1), 5972.
Akimov, A., & others. (2015). Political economy of financial reforms in authoritarian transition economies. The case of
Kazakhstan and Uzbekistan. Griffith University, Department of Accounting, Finance and Economics. Retrieved from
https://www120.secure.griffith.edu.au/research/file/e3bf6521-5a62-4668-8a8a-0c7f22f69adf/1/2015-01-political-economy-
of-financial-reforms-in-authoritarian-transition-economies.pdf
Almatova, D. G., & S Gulamov, S. (2014). Regional Economy Of Uzbekistan Modernization The Regional Economy Of
Uzbekistan. , (3), 1518.
Asadov, D. A., & Aripov, T. Y. (2009). The quality of care in post-soviet Uzbekistan: are health reforms and international
efforts succeeding? Public Health, 123(11), 725728.
Asian Development Outlook 2015: Financing Asias Future Growth | Asian Development Bank. (n.d.). Retrieved 11 May
2015, from http://www.adb.org/publications/asian-development-outlook-2015-financing-asias-future-growth
B. B. Valiev. (2014). FOREIGN DIRECT INVESTMENT POLICY AND TRENDS IN UZBEKISTAN. Vdecko Vydavatelsk
Centrum Sociosfra-CZ, S.r.o., 2014., pp. 9397.
Sustainable Food Systems, 37(7), 788811.
Bohr, A. (1998). Uzbekistan: politics and foreign policy. Royal Institute of International Affairs, Russia and Eurasia
Programme. Retrieved from http://www.opengrey.eu/item/display/10068/376439
Djanibekov, N., Sommer, R., & Djanibekov, U. (2013). Evaluation of effects of cotton policy changes on land and water
use in Uzbekistan: Application of a bio-economic farm model at the level of a water users association. Agricultural
Systems, 118, 113.

Special issue
Faramani, R. R., & Moradi, H. (2014). UZBEKISTAN: A REGIONAL POWER IN CENTRAL ASIA? REALITY OR
DILEMMA? Central Asia & the Caucasus (14046091), 15(2). Retrieved from http://www.ca-
c.org/online/2014/journal_eng/cac-02/06.shtml
Fedorov, Y. (2012). Uzbekistan: clans, succession, and stability. Security Index: A Russian Journal on International
Security, 18(2), 3954.
Haidar, M. (2014). INFORMATION DIGEST OF PRESS OF UZBEKISTAN# 145. POLICY. Retrieved from
http://www.uzembassy.org.tr/files/Press_releases/Press_en/21072014_145_eng.doc
House, F. (2014). Nations in Transit 2014-Uzbekistan. Retrieved from
http://www.ecoi.net/local_link/277858/411167_de.html
Kantarci, K. (2007). Perceptions of foreign investors on the tourism market in central Asia including Kyrgyzstan,
Kazakhstan, Uzbekistan, Turkmenistan. Tourism Management, 28(3), 820829.
Macroeconomic indicators of the Republic of Uzbekistan. (n.d.). Retrieved 26 April 2015, from
http://stat.uz/en/index.php/88-interaktivnye-uslugi/773-macroeconomic-indicators-of-the-republic-of-uzbekistan
MFERIT - Statistics investing activities. (n.d.). Retrieved 26 April 2015, from http://www.mfer.uz/en/investments/statistics/
Minazzi, R., & Lagrosen, S. (2013). Investigating Social Media Marketing in the Hospitality Industry: Facebook and
European Hotels. In Information and Communication Technologies in Tourism 2014 (pp. 145157). Springer. Retrieved
from http://link.springer.com/chapter/10.1007/978-3-319-03973-2_11
Parpiev. (2014). New horizons in the development of oil and gas industry: Case of Uzbekistan. .
Retrieved from http://www.moluch.ru/archive/76/13000/
Procedure of investment agreements conclusion and fulfillment | UZINFOINVEST the Information Support & Foreign
Investments Promotion Agency. (n.d.). Retrieved from
http://www.uzinfoinvest.uz/eng/investment_guide/procedure_of_investment_agreements_conclusion_and_fulfillment/
Vladimir Popov. (2014, December). CAN UZBEKISTAN ECONOMY RETAIN ITS HIGH GROWTH RATE? SCENARIOS
OF ECONOMIC DEVELOPMENT IN 2015-30. New Economic School. Moscow.

-
http: //www.prezident.uz -
14.09.2012 .

2011 2015 . , 2010 ., 50, . 472; 2011
., 50, . 512.
.. //
: : IV -
24 2012 .: 3 . .1 : . .. , 2012. . 196.

Special Issue On Economy & Sustainable Development in Uzbekistan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Special Issue On Economy & Sustainable Development in Uzbekistan

Uploaded by

Copyright:

Available Formats

International Journal of Economics, Commerce and Management

United Kingdom ISSN 2348 0386

Special issue on Economy &

REGIONAL FEATURES OF STRATEGIC DEVELOPMENT OF

Licensed under Creative Common Page 1

Licensed under Creative Common Page 2

The purpose of the study was:

REVIEW OF THE LITERATURE

Licensed under Creative Common Page 3

The concept of strategy in contemporary literature

Licensed under Creative Common Page 4

Licensed under Creative Common Page 5

Features Industry Strategy

Licensed under Creative Common Page 6

The basic tools of strategic analysis

Licensed under Creative Common Page 7

Licensed under Creative Common Page 8

Formulation of strategic objectives and strategic analysis of tourism

Preparation of the consolidated strategic plan of action to implement

Monitoring of the implementation of the

Licensed under Creative Common Page 9

Development and testing of the research instrument

Licensed under Creative Common Page 10

Specifically article is designed to:

Licensed under Creative Common Page 11

Licensed under Creative Common Page 12

Licensed under Creative Common Page 13

SWOT analysis of the tourism industry of the city of Samarkand

political stability cost of tourist services (hotel accommodation,

Licensed under Creative Common Page 14

PREDICTED RESULTS AND DISCUSSIONS

Lack of activeness in artificial projects

High qualified educational

Licensed under Creative Common Page 15

Potential risks of the development in Samarkand region are considered by following:

reduction of budget and

providing facilitated features relieving extra products and

Possibilities of regional industrialization:

Licensed under Creative Common Page 16

Shortcoming of tourism development in Samarkand region:

Potential opportunities of the development in the area tourism:

Licensed under Creative Common Page 17

Possible factors deterring the development of the industry:

Licensed under Creative Common Page 18

Licensed under Creative Common Page 19

Special issue on Economy &

ISSUES ON SUSTAINABLE DEVELOPMENT

Licensed under Creative Common Page 20

Keywords: Sustainability, Economy of Uzbekistan, Infrastructure, Central Asia, Economic competitiveness

Licensed under Creative Common Page 21

THEORETICAL BACKGROUND OF SUSTAINABILITY

Licensed under Creative Common Page 22

Source: Hurni and Wiesmann 2004;adapted from Wiesmann 1998

Licensed under Creative Common Page 23

Economic sustainability of Uzbekistan

Licensed under Creative Common Page 24

the rate of health of the population;

Licensed under Creative Common Page 25

Licensed under Creative Common Page 26

Licensed under Creative Common Page 27

Table 4. The natural development of the population dynamics of CIS countries.

Licensed under Creative Common Page 28

Licensed under Creative Common Page 29