20 January, 2012
Cabinet of Ministers Revisits Past Year
Cabinet of Ministers Revisits Past Year
Cabinet of Ministers of the Republic of Uzbekistan convened for a session on January 19 to review the socio-economic progress of the nation in 2011 and discuss the critical priorities of sustainable economic development in 2012.
President of Uzbekistan Islam Karimov delivered a speech at the meeting, where the head of state stressed that as a result of steady implementation of our own “Uzbek Model” of development acknowledged across the globe and that of priority dimensions of the adopted Concept of Intensifying the Democratic Reforms and Forming Civil Society in the Country, sustainability of high rates of growth and macroeconomic balance have been secured notwithstanding the continuing crisis trends in world economy.
It was particularly pointed out that the effectiveness of reforms and the anti crisis measures taken in Uzbekistan have been highly appreciated by prominent international financial and economic institutions, including the International Monetary Fund, World Bank, Asian Development Bank. As, for instance, the statement of IMF mission that visited our country in November 2011 reads that Uzbekistan has achieved a dynamic growth and has been coping well with the global financial downturn. The report outlines also a positive forecast on preserving high economic growth rates in the medium term.
The gross domestic product growth in 2011 amounted to 8.3 percent, industrial production expanded by 6.3 percent, agriculture by 6.6 percent, services by 16.1 percent. The state budget has been closed with a surplus of 0.4 percent of GDP. Inflation level has not exceeded the set forecast indicator.
Targeted efforts toward cashing in the competitive advantages of Uzbek exporter enterprises to a full extent, diversification of export structure and energetic entrance into new foreign markets have helped secure the enlargement of exports in 2011 by 15.4 percent, a remarkable positive foreign trade balance, and the rise of gold and currency reserves of the country.
The continuous materialization of complex measures directed at further enhancing the reforms in banking and finance system and raising its financial steadiness has been ensuring the maintenance of high level of capital sufficiency of Uzbekistan’s banking system and expansion of crediting scales. During the year under revision, assets of banks increased by 32.4 percent. The forecast of a stable and positive development of commercial banks in Uzbekistan also is supported by leading international rating agencies.
Pro-active investment policy and implementation of priority investment projects on modernization, technical and technological re-equipment of critical sectors of the economy, advancement of transport and communications infrastructure have facilitated the increase in the volume of assimilated investments by 11.2 percent. 1,006 new production capacities have been introduced; implementation of 144 major investment projects has been completed.
Uzbekistan continued the comprehensive development of new residential areas and creation of modern infrastructure in rural areas. 7.4 thousand houses of model design have been built in 156 rural districts in 2011 for soft loans of Qishloq Qurilish Bank.
The extensive work carried out under the national program “Year of Small Business and Private Entrepreneurship” to create the most favorable business environment for small and private entrepreneurship has helped to increase the share of small businesses in gross domestic product up to 54%, compared with that of 52.5% in 2010.
The measures taken as part of Employment Program in 2011 led to the creation of about one million jobs, more than 68 percent of them in rural areas.
In his report, President Islam Karimov delivered a detailed and comprehensive review of outstanding challenges and expounded on key priorities and areas of socioeconomic development in 2012.
Heads of ministries, agencies, business associations and executive bodies on the ground were tasked with a formulation and implementation of complex measures to ensure the maintenance of high and stable rates of economic growth, macroeconomic stability and competitiveness of the economy through successive reforms, deepening structural transformation and diversification of the economy, accelerated development of new high-tech industries, modernization and technological upgrade of existing facilities.
The meeting identified specific measures to ensure the rapid development of transport and engineering infrastructure, rural housing, address issues of employment and welfare.
Particular attention is drawn to policy measures for the achievement of the current year’s goals set in conjunction with the announcement of the Year of Family, including raising the importance of family in the future development of the intellectual foundations of society, greater attention and care from the state and society in addressing the challenges in increasing financial wellbeing of each family.
The agenda also included reports by heads of ministries, agencies, organizations, and regions of the republic. Following the discussion, the Cabinet of Ministers approved decisions which identified practical measures to ensure implementation of major priorities of socioeconomic development in 2012.