April 21, 2008

Politics:
President to Pay Visit to Kazakhstan
Economics:
Industrial fair of chemical industry opened In Tashkent
CICU assists expansion of franchising in Uzbekistan
Uzbekistan develops its infrastructure
Staking on mobility
International conference on digital signature to be held in Tashkent
Society:
Event Discusses Media Role in Raising People’s Legal Awareness
Monuments of Sacred Land’ Workshop Held in Tashkent
Student Spring 2008 festival to be held in Samarkand in May

POLICY

PRESIDENT TO PAY VISIT TO KAZAKHSTAN

On the invitation of President of the Republic of Kazakhstan Nursultan Nazarbaev on April 22-23, 2008 the President of the Republic of Uzbekistan Islam Karimov will pay an official visit to this country.

During the talks the sides will discuss the issues of expanding and deepening the comprehensive cooperation between the Republic of Uzbekistan and Republic of Kazakhstan, as well as the outstanding issues of regional and international nature of mutual interest, according to the agencies.

ECONOMY

INDUSTRIAL FAIR OF CHEMICAL INDUSTRY OPENED IN TASHKENT

Industrial fair of chemical enterprises that constitute State Company “Uzkimyosanoat“opened In Tashkent, Uzreport Business Information Portal reported.

Now enterprises of the “Uzkimyosanoat”, produce rubber products, chemical reagents, various mineral fertilizers, an artificial fibre, polymeric materials, inorganic substances are made for power generating, gold mining and light industry, means of chemical protection of plants; totally more than 250 types of products. About a dozen of them go for export to many countries.

The program of upgrading the enterprises of the chemical industry, their technical and technological re-equipment includes 30 investment projects. After the implementation of the program valued at more than 380 billion sums, the production volume in the enterprises will increase for about 1,4 times. Power consumption of the enterprises will reduce, production for export will increase.

Organizers of the industrial fair are providing information on potential of the chemical enterprises of Uzbekistan.

For example, one of the largest chemical enterprises in Uzbekistan – Open Joint Stock company “Max-Chirchik” produces more than 30 kinds of products, basically various mineral fertilizers, chemical materials.

CICU ASSISTS EXPANSION OF FRANCHISING IN UZBEKISTAN

Taking into account high potential of the franchising business model, the Chamber of Industry and Commerce of the Republic of Uzbekistan jointly with the United Nations Development Programme's "Business Forum of Uzbekistan" Project has initiated a project on the creation of a "manual on franchising for local businessmen."

Franchising is a sale or temporary provision of a trademark or company's technology (organizational methods) to a separate legal entity, an entrepreneur. The majority of people who have heard something about franchising typically associate it with the chain of McDonald's fast food restaurants, according to the report of the Uzreport Business Information portal.

In practice, franchising is quite widespread in other, completely different sectors of the economy: trade in consumer goods (from cosmetics to automobiles), services (fast food, petrol and gas stations, and car service, tourism and hotel business, accounting and insurance, education, business services, municipal services, etc) and in production (commonly the production of beverages, food products, pharmaceutical products, optics).

It will suffice to say that in the United States, the homeland of today's franchising, companies using the franchising business scheme contribute almost a half of the gross national income.

Franchising is first of all an effective organizational form of expanding the most successful entrepreneurial models, which lets the business leaders pass on their polished production and management techniques to other entrepreneurs on mutually profitable basis as well as to expand their spheres of influence.

It should also be noted that franchising does not necessarily envisage the multiplication of foreign brands and technology. Successful local companies that have already established themselves and proved the efficiency of their methods of operation can also become franchisers, i.e. the sellers of franchise licenses. In other words franchising is an excellent instrument for developing the domestic branding and expanding successful local businesses.

It is also important to keep in mind that local franchisers (compared to foreign) may offer several advantages on the territory of Uzbekistan, such as the absence of a language barrier, one common legal space, the knowledge of the peculiarities of doing business in this particular country.

The purpose of the publication is to provide the explanation to the basic concepts of franchising, describe the specificity of the operation of a franchising model in the conditions of Uzbekistan, offer some specific recommendations for active and potential franchisers and franchisees (sellers and buyers of a franchise license). The main purpose of this project is to motivate Uzbek entrepreneurs towards the creation of franchising systems.

The franchising manual being created is to provide information on the existing and potential Uzbek franchising businesses. All entrepreneurs wishing to try and develop their own businesses using a franchising model have an opportunity to place their business proposals on the sale of franchise licenses in this book for free. Moreover, the authors of the manual are prepared to help formulate their business proposals.

UZBEKISTAN DEVELOPS ITS INFRASTRUCTURE

Uzbekistan as a rapidly growing country has adopted a conception on developing motor roads of public use worth nearly US$ 600 million for 2007-2010.

The republic plans to reconstruct and build motor roads of 679 kilometers including 489 kilometers of parts of international transport routes and state roads of 190 kilometers under the development program. Here Uzbekistan finances these projects, using its own funds and credits of international finance institutions. To reconstruct two parts of the Guzar-Bukhara-Nukus-Beineu (A 380) the country attracted credit worth US$ 75.3 million of the Asian Development Bank (ADB).

The credit agreement was signed this Monday by Hong Wai, head of ADB Office in Uzbekistan and Rustam Azimov, First Deputy Prime Minister and Minister of Finance of Uzbekistan, Uzbekistan Today reported.

The credit will be invested in construction works, purchase of road construction equipment and project management.

The project totally costs US$ 173.5 million. It ensures to reconstruct aggregate superhighway of 131 kilometers long, particularly, two parts: 90 and 41 kilometers in Karakalpakstan in north-west of Uzbekistan. The project duration is 4 years.

Last December the ADB Advisory Board agreed to offer its credit for the project implementation. The Uzbek government is to finance the project, using its own funds of US$ 98.2 million as well.

Since 1995 the ADB has offered Uzbekistan total credits of more than US$ 1 billion to implement project in education, agriculture, modernization of transport communications and power engineering and 69 grants of technical assistance worth US$ 37.24 million.

The A 380 highway of 1.204 thousand kilometers long is a part of transit corridor connecting Uzbekistan with Afghanistan and Turkmenistan in south and with Kazakhstan in north.

STAKING ON MOBILITY

Not only players but also technologists compete in the communication market of Uzbekistan. The East Telecom plans to launch this September a WiMax network in Tashkent.

During a visit of the Korea Telecom’s (KT Corp) to Tashkent its executive vice president, Kim Khan Sook stated at a meeting in the Communication and Information Agency of Uzbekistan that the commercial launching of WiMax network would be this September and specialists had analyzed the location and radio planning. Thus, Uzbekistan will be in the list of a few countries having WiMax networks with Wave 2 most up-to-date technology.

The WiMax is a new technology for wireless Internet access with 280 Mb/s theoretical speed for each base station that is 25 times faster than Wi-Fi and thousand times than GPRS (GPRS is a packet oriented Mobile Data Service available to users of Global System for Mobile Communications (GSM). In addition, the WiMax ensures to offer mobile services. The WiMax is also set up as a mobile network by covering territories via base stations. The range of the WiMax base station coverage is 6 kilometres.

Last autumn South Korea’s biggest communication operator KT Corp purchased 51% and the Japanese Sumitomo 34% of the JV East Telecom, largest alternative operator of trunk channels in Uzbekistan. The two companies also bought 60% (KT Corp) and 40% (Sumitomo) shareholding of the SuperiMax LLC, WiMax wideband Internet provider. The company as global operator will offer wireless access services and set trunk communication channels. The rest 15% is owned by the Uzbek national communication operator, JSC Uzbektelecom.

Experts believe that the segment of WiMax market which is worth special attention is to connect “fixed” users (they do not change their location but use equipment for wireless access, primarily to the Internet). The fixed wireless Internet access is useful when cable-based connection is possible but less rational. For instance, networks of automatic cash and payment terminals and cellular shops – location of such service providers are not permanent and may alter because of changes in market opportunities. Another factor –difficulties in installation of cable networks –cause interest of operators in the development of wireless access.

INTERNATIONAL CONFERENCE ON DIGITAL SIGNATURE TO BE HELD IN TASHKENT

International conference on “Development of infrastructure and services of the electronic document circulation and important problems of use of electronic digital signature” will be held in Tashkent on April 23-25.

The forum is being organized by the Uzbek Agency for Communication and Information (UzACI). Specialists from the Russian Federal Agency for Information Technologies will participate in the event, UzA reported.

“The goal of the conference is to boost introduction of electronic document circulation with use of digital signature, identification of existing problems and exchange of experience,” head of software industry department of UzACI Faizulla Agzamov told UzA.

Uzbekistan is currently implementing the Program of computerization and ICT development until 2010, which outlines the main directions of state policy in this field. They include extensive use of ICT by state bodies, creation of automated information systems and resources, interaction of state bodies and citizens and businesses through ICT, introduction of e-commerce and development of e-payment mechanisms.

During 2003-2004, laws on digital signature and electronic document circulation were passed, which laid a foundation for the development of the sector in the country. These documents give the legal power to the e-documents having the e-signature.

“To ensure practical implementation of the e-signature, UzACI developed corresponding legal acts, rules and standards regulating technical aspects of e-signature infrastructure,” Agzamov said.

There are currently three e-signature keys registration centers in Uzbekistan, two of which are state centers and one is private. The total number of issued e-signature keys certificates makes up more than 10,000.

“Use of e-document circulation in state management will increase the efficiency of working with documents, as well as reduce costs,” Agzamov added.

Among the currently implemented projects in the e-document sphere are projects of submission of reports by statistics and tax bodies.

SOCIETY

EVENT DISCUSSES MEDIA ROLE IN RAISING PEOPLE’S LEGAL AWARENESS

While taking a floor at the first joint session of Legislative Chamber and Senate of Oliy Majlis of the Republic of Uzbekistan President Islam Karimov spoke on the most important conditions of deepening the processes of renewal of society and providing for the freedoms of citizens of Uzbekistan. He has named the implementation of specific and gradual measures to introduce the democratic principles of mass media development as among such very conditions.

The atmosphere of competition in the mass media promotes the journalistic wit and intelligence of reporting the events. In its turn, this is an important step in development of reporting and reacting to the news, Jahon Information Agency reported.

At the moment, over 1000 newspapers and hundreds of magazines are being published in the country with various television channels and radio studios operating. The stories on raising the legal awareness of population are actively going for print.

The seminar which took place at the Ministry of Justice of Uzbekistan on the mass media role in raising the people’s legal awareness saw the discussion of the aforesaid, the report by Uzbekistan National News Agency has indicated.

Those who spoke at the seminar have said that the mass media were profoundly contributing to the establishment of democratic state and civil society in Uzbekistan, as much as increasing the legal awareness of people.

Enhancing the democratic principles now requires the reporters and journalists of high mastery, responsibility and patriotism, according to the delegates to the seminar.

MONUMENTS OF SACRED LAND’ WORKSHOP HELD IN TASHKENT

The Khazrati Imam Complex in Tashkent hosted the seminar workshop “Monuments of sacred land” dedicated to the World monuments and historical places day, Jahon Information Agency quoting the Uzbekistan National News Agency website.

The members of Social-Democratic Party of Uzbekistan Adolat’s faction at the Legislative Chamber of Uzbekistan’s national parliament of Oliy Majlis, staff members of Board of Muslims of Uzbekistan, as well as the teachers and students are reported to have participated in the workshop.

Those who spoke in the seminar workshop have said that the considerable work was underway in Uzbekistan to preserve the rich spiritual heritage, better the sacred places of worship related to the lives and work of great ancestors. According to delegates to the workshop, it would promote the nurturing respect among the young men and women of the nation towards national values.

The tangible work accomplished to protect and reconstruct the historical monuments – the pearls of Oriental architecture in the ancient venues of Samarkand, Bukhara, Khiva, Shakhrisabz, Karshi, and Marghilan – vividly confirms the aforesaid.

The Resolution of President “On preparation and holding the 2200th anniversary jubilee of the city of Tashkent” of April 2, 2008 has become yet another significant impetus in such undertaking.

The seminar workshop in Tashkent also saw the delegates speaking about the need to enhance the youth activeness in preserving the architectural monuments and in-depth studying history.

STUDENT SPRING 2008 FESTIVAL TO BE HELD IN SAMARKAND IN MAY

Student Spring 2008 festival will be held in Samarkand in May among the students of the universities of Uzbekistan, UzA reported.

The event is being organized by the Kamolot youth movement, Ministry of higher and specialized secondary education, Ministry of culture and sports, Professional unions federation and Samarkand regional administration.

“The opening ceremony will be held at the famous Registan square,” Azamat Pardayev, chairman of council of Kamolot regional branch, told UzA.

A number of activities will be held during the festival, including meetings and discussions on sociopolitical, cultural and sports topics.

Conferences on the role of the youth in forming the civil society and on the youth’s participation in globalization are also scheduled.

Other planned events include the national talented youth contest, student theatres contest and a sports marathon.