October 09, 2013

Politics and Foreign Policy:
Ambassadors Present Credentials
Economics:
A few words about the production sphere, intensification of localization processes and extension of industrial cooperation
Tourism: important sphere of economic and cultural cooperation
Society:
Uzbekistan to observe Eid al Adha on 15 October

POLICY and FOREIGN POLICY

AMBASSADORS PRESENT CREDENTIALS

At the Oqsaroy on October 8, President Islam Karimov received credentials from the newly appointed Ambassadors Extraordinary and Plenipotentiary in the Republic of Uzbekistan – Pavol Ivan of the Slovak Republic, Mohammad Abdullah Tarshahani of Palestine, Carmela Shamir of the State of Israel, Masud Mannan of the People’s Republic of Bangladesh, and Jacques-Henry Heuls of the French Republic.

The head of our state, warmly greeting the chiefs of diplomatic missions in our country, stressed that Uzbekistan attaches a crucial significance to the enhancement of bilateral relations with the nations they represent, and wished them every success in the further advancement of cooperation between our countries and peoples.

At the conversation ceremony that took place with Ambassador Pavol Ivan in particular, it was stated with delight that for the twenty years from the day the diplomatic ties between Uzbekistan and Slovakia were established, the bilateral interaction has been developing in a positive vein along with an accumulation of considerable practice of cooperation across a variety of areas, facilitating a confident construction of an enduring and mutually advantageous dialogue.

The Slovak ambassador noted that he considers the principal objective of his mission in Uzbekistan in the expansion of traditionally friendly bonds between our two nations in the political, trade-economic, cultural-humanitarian and other spheres.

The full-scale relations between Uzbekistan and Palestine are built on the trade and cultural-humanitarian ties formed throughout centuries between our two peoples, and which have currently attained new content and shape.

The head of the Palestinian embassy pointed out that he feels hugely honored to represent his nation in Uzbekistan that enjoys a high standing not merely in the region, but also beyond it, and which has been home to great thinkers and scholars whose works were laid on the foundations of human progress.

Today, the Uzbek-Israeli dialogue is designed to facilitate a constructive cooperation, primarily to realize the available considerable potential of the trade-economic and investment interaction, to run joint projects with the help of advanced Israeli technologies in agriculture, water saving and energy sectors.

Carmela Shamir noted that she sees her mission to Uzbekistan as a real opportunity for the enlargement of contacts between our two countries across all spheres of shared interest.

The key role in the consolidation of Uzbek-Bangladeshi relations is played by the mutual trade, whose steadfast expansion is equally desired by both sides. The existing mechanisms of bilateral cooperation allow for joint identification of promising dimensions in economic and investment partnership.

As it was stated, the regular cultural and humanitarian exchanges between Uzbekistan and Bangladesh constitute an important part of the multifaceted dialogue.

Ambassador Masud Mannan assured that he will apply his every effort and diplomatic experience to help further enhance the mutually advantageous and long-term ties between the two countries. And this prospect, as he believes, has a compelling viability.

France is considered in Uzbekistan as one of its key foreign policy partners, the relations with which have been evolving consistently in all areas of cooperation without exception.

Currently, a constructive political dialogue has been established building on mutual understanding and the account of one another’s interests. The normative and agreement base is being cemented, so are the trade-economic and cultural-humanitarian bonds as well as contacts among civil society representatives. The two sides have also been actively partnering in issues related to providing for regional security and addressing contemporary challenges and threats.

The French diplomat stressed the commitment of his country’s leadership to the joint work with the Uzbek side to build enduring and mutually beneficial relations.

(Source: Press service of the President of the Republic of Uzbekistan)


ECONOMY

A FEW WORDS ABOUT THE PRODUCTION SPHERE, INTENSIFICATION OF LOCALIZATION PROCESSES AND EXTENSION OF INDUSTRIAL COOPERATION

The goal-directed structural remaking of the national economy and the stage-by-stage development of its real sector form a solid foundation for the country's long-term socio-economic growth.

Over the years of its development as an independent, sovereign state, the Republic of Uzbekistan managed to demonstrate the stable high rates of growth of its GDP and production volumes in manufacturing and agriculture.

Even amid the dire consequences of the global financial crisis, the country has succeeded not only in sticking to the policy of economic and structural reforms that was launched at the dawn of independence, but also in continuing the processes of modernization and technical re-equipment at enterprises.

The results of the Republic's socio-economic development in the past decade, when the annual growth rate of its GDP reached more than 8 per cent, speak volumes of the utmost significance of such factors as a complex approach and the balanced development of all economic sectors.

The steps taken by Uzbekistan in the manufacturing industry to intensify its cooperation and interaction with other sectors of the national economy not only ensure that the country's financial-economic, budgetary and banking-crediting systems operate steadily and uninterruptedly, but are also conducive to the creation of all conditions needed for the further development of industrial sectors, small business and private entrepreneurship.

The development of manufacturing is aimed at organizing new, high-tech production facilities, diversifying the structure of production by drawing enterprises into the processing of local mineral resources and turning up, on this basis, goods that are much in demand at home and abroad.

The last few years have seen the construction of several big industrial enterprises in the oil-and-gas sector, mechanical engineering, electro-technical and chemical industries, metallurgy and the textile sector.

The development of the automobile construction industry, which was viewed as a new sector not long ago, has been given a further boost. At present, the sector not only masters the production of output on the basis of assembly operations, but it is now confidently going over to the full-scale manufacture of automobiles, their parts and components. Cooperating with such world-famous car-building giants as General Motors, Isuzu, MAN etc., Uzbekistan makes as many as 8 models of motor cars, two models of town buses and 9 models of special cargo motor vehicles, including heavy-load prime movers. In the last 3 years alone, the national automobile industry has launched the production of highly promising models of internal combustion engines, generators, compressors, speedometers, lighting appliances and suchlike.

The electro-technical sector has organized the production of a full complex of low-voltage equipment for industrial use, including cables, conductors, transformers, switchboards, automation boards, transformer substations, as well as a wide selection of consumer electronics, such as micro-wave stoves, refrigerators, vacuum-cleaners, washing machines, LCD TV sets, mobile telephone sets and tablet PCs.

Other pillars of the Uzbek economy, including mining, metallurgy, power engineering, transport, construction etc. are also well-positioned to advance at a fast clip.

The metallurgical industry, for instance, has inculcated a method of high-pressure casting and production of pipes and shut-off fittings; the chemical sector is now in a position to turn out complex mineral fertilizers and a variety of chemicals, polymers and articles made thereof; the transport sector has organized the construction and repairs of railroad rolling-stock etc.

Speaking about the current development of the real sector of the national economy, one cannot help pointing out the fact that Uzbekistan is the first country in the Central Asian region, where a high-speed railway has been built and is efficiently functioning, renewable power resources are used with great efficacy, solar power engineering is on a rise, intensification of localization processes goes on, with priority given to Group A produce (means of production - lathes, processing centers, mining pumping equipment and the like).

Remarkably, small business is increasingly supplementing the basic industries, by entering the sphere of industrial production. In 2012 alone, upwards of 1,400 new production facilities have come on-stream. They specialize in the production of components, different types of units, textiles, foodstuffs and building materials.

At the same time, it should be accentuated that domestic small enterprises are penetrating more and more complex spheres of material production, using highly efficient foreign equipment and modern technologies and ensuring the production of competitive goods, which are in general request in foreign markets. To compare, in the first years after the acquisition of independence, indigenous small enterprises usually manufactured simple, in terms of technology, output, confining their production cycles to simple technological operations.

Analysis shows, however, that neither available mineral and manpower resources nor industrial potential created in Uzbekistan are utilized in full.

Taking into consideration the country's stupendous reserves of minerals, qualified labour resources and an auspicious investment climate, many product categories and components may be made at domestic enterprises. However, they are still imported to the Republic, with high transport and currency expenses borne.

The development of industrial production and, first and foremost, science-intensive and technologically complicated sectors, requires the adequate development of attendant production capacities, such as production of new polymers, alloys, chemicals, materials, thousands of types of units, machinery, components etc.

Although any raw stuff used in production can now be easily bought on the commodity-raw material exchange, to find a supplier of a wide assortment of components and parts (and at the same time, a reliable partner) is tricky enough. And the complexity of such a search is growing year in, year out.

In a market environment, only a few enterprises are in a position to run a developed marketing service, in order to supply goods in the most efficient way, to forge promising industrial ties and to orientate their production to concrete customers. Moreover, the latter frequently are poorly informed that the goods they import from abroad are now manufactured domestically. They spend much time and energy to find a suitable foreign supplier, not suspecting that similar produce is made at a neighboring enterprise.

Production processes these days are so complex that manufacturing all components independently is beyond any enterprise's powers. And there is no necessity whatsoever to do so under the current system of labour division and specialization in the sphere of material production. International experience suggests that manufacturers usually achieve good results only if their production facilities specialize particularly in concrete operations. At the same time, there are specialized firms and companies that are involved in providing complex production facilities with all the required materials, parts, units and components.

Pursuant to the November 12, 2007 Presidential Decree, "On measures to further strengthen infra-sectoral and inter-sectoral industrial cooperation" No ??-3937, the Republican Industrial Fair and Cooperation Exchange were staged in order to assist domestic manufacturers in optimizing their production, reinforcing and developing cooperation within and between sectors of the national economy.

The first large-scale event of the kind ever held in Uzbekistan, the fair actually aimed to develop linkages and interaction between indigenous enterprises operating in different industries, as well as to draw into production processes small enterprises, taking into account their ability to quickly respond to the market requirements and organize facilities needed for the production of different types of commodities of required quality.

The results of the Industrial Fair and Cooperation Exchange proved very promising. 1 trillion Soum (Currency rates of CB from 09.10.2013 1$=2158.36 soums) worth of contracts were signed for the delivery of home-made produce, which was equivalent to US $1 billion worth of imports in that period.

Since then, staging an industrial fair and cooperation exchange annually in October has become a tradition.

Combining the functions of exhibition and commodity exchange, the event, as a matter of fact, has turned into a kind of manufacturers' club, where they showcase their output and production facilities, acquaint themselves with the accomplishments of co-operating sectors and enterprises, size up future demand for materials and components, see technical innovations and novelties, find mutually beneficial partners in the field of industrial cooperation, conclude contracts and form a portfolio of orders for the supply of their produce.

In 2009, the Republican Industrial Fair and Cooperation Exchange was conferred international status, a factor that cardinally expanded the scope of the event's functions and powers.

On the one hand, participation of foreign partners raises the level of requirements laid on commodities on view at the exhibition, while, on the other hand, allowing domestic enterprises to realize their potentialities in setting up joint ventures to localize the processing of raw materials and to develop industrial cooperation, as well as in exporting their output.

The event's characteristic feature is that it is held on a continued basis. And success of its participators in materializing their plans and intentions to develop their production facilities depends, to a considerable extent, on efficient spade-work.

The entire period of preparation and conduct of the International Industrial Fair and Cooperation Exchange can be conditionally divided into several stages.

At the first stage, covering the beginning of a year, where regional and sectoral industrial fairs are held, enterprises thoroughly study a range of issues relating to cooperation development and sign agreements of intention for the delivery and organization of production of new types of commodities. This work is preceded by in-detail imports analysis and selection of goods, whose production is technically feasible at their production facilities.

At the second stage, in the course of the International Industrial Fair and Cooperation Exchange, agreements of intention turn into delivery contracts, which will then form a producer's portfolio of orders for next year. In between these two stages, enterprises master the production of new types of output, make experimental batches, coordinate their technical parameters with customers and bring their quality to the required level.

Over the short period of its existence, the fair has acquired a well-deserved reputation among domestic and foreign partners.

For the time being, the volume of contracts signed during the fair has grown 4.5-fold, with more than 80 per cent of prognosticated annual production volumes being covered by export contracts.

At the same time, together with traditional produce, contracts are concluded for the exportation of commodities, whose production has been organized under localization projects. These include: ISUZU buses and trucks, MAN trucks, internal-combustion engines, oil-and-gas and turbo-compressor equipment, consumer electronics, aluminum fittings, a wide selection of textiles, fruit-and-vegetables, household chemical goods etc.

The experience amassed during the past years confirms the correctness of the chosen path of stage-by-stage consistent development from simple - to complex, from the processing of raw materials - to the production of high-tech, science-intensive output, from the performance of easy assembly operations - to the organization of a full-scale production process, interaction and provision of different industries with a variety of locally-made commodities on the basis of industrial cooperation.

In that way, estimating the past experience, a set of currently implemented measures and future plans, it is safe to say that the further development of the nation's industry and its efficient integration with the system of economic relations constitute both the objective reality and historical inevitability of the road chosen by the Republic of Uzbekistan for its progress and prosperity

(Source: “Business partner.uz” newspaper)

TOURISM: IMPORTANT SPHERE OF ECONOMIC AND CULTURAL COOPERATION

Tashkent International Tourism Fair “Tourism on the Silk Road” (TITF) will start its work in capital city of Uzbekistan on 8 October 2013.

The fair was organized at the official support of the UN World Tourism Organization (UNWTO). The TITF was included to calendar of international tourism exhibitions of the UNWTO.

Speaking at the press conference in Tashkent, chairperson of Uzbektourism national company Farrukh Rizaev said the exhibition will occupy 10,000 square meters. According to organizers, some 655 companies will attend the event, including 65 foreign companies.

Farrukh Rizaev said that the Government of Uzbekistan pays great attention to development of tourism in the country. He added that the Government adopted the programmes on developing tourism in Khorezm and Tashkent regions this year.

He underlined that similar programme will be also adopted for Kashkadarya region soon. He said that the programmes are directed at developing tourism infrastructure and diversification of tourism products.

Uzbektourism chief said that over 2 million people visit Uzbekistan annually, of which 600,000 are tourists. He said that these are mainly educated people, who are interested in history. Rizaev said that tourism sector of Uzbekistan should develop active and extreme tourism to attract more young tourists as well.

He also stated that the country should increase number of hotels as there is shortage of rooms in some regions of Uzbekistan. He noted that the country is addressing the problem within the approved programmes.

Rizaev said that Uzbekistan should also develop internal tourism. He added that internal tourism plays key role in economies of many countries.

Speaking about fair, Farangiz Abdullaev, director of advertisement agency Great Silk Road, noted that the fair will include national and international pavilions.

Promotion of inbound and internal tourism is one of key priorities of TITF. The fair presents national pavilion called “Travel to Uzbekistan”. The pavilion provides information about development of tourism in Uzbekistan, stands of regional administrations, tourism companies, educational and health centers, theatres, museums, etc.

International pavilion attracted representatives of foreign tourism businesses. Farangiz Abdullaev said that Romania and Slovakia will participate in the fair for the first time this year.

Abdullaev underlined that the fair will have medical and gastronomy sections as well. It is also planned to hold conferences, presentations, seminars, and other events, she said.

Currently, Uzbekistan has 800 tourism companies, including 500 hotels, tourism bases and campings, and 300 tour operators.

Uzbekistan joined the UNWTO in 1993 and it is actively participant in transcontinental project “Great Silk Road”.

Tashkent International Tourism Fair “Tourism on the Silk Road” has been organized annually since 1994 within the transcontinental project “Great Silk Road”.

(Source:UzDaily.com)


SOCIETY

UZBEKISTAN TO OBSERVE EID AL ADHA ON 15 OCTOBER

First day of Eid al-Adha (Festival of Sacrifice) was announced as day-off in Uzbekistan and will be marked widely as holiday in the country. The first day of Eid al-Adha falls to 15 October 2013.

President of Uzbekistan Islam Karimov signed a resolution “On celebrating Kurban-hait (Eid al-Adha)” on 8 October 2012. The resolution said taking into consideration the proposal of the Muslims’ Board of Uzbekistan, the first day of Eid al-Adha, 15 October 2013, is announced as day-off and will be marked as a holiday in Uzbekistan.

Eid al-Adha is a religious festival celebrated by Muslims worldwide as a commemoration of Ibrahim’s (Abraham’s) willingness to sacrifice his son Ismael for Allah. It is one of two Eid festivals that Muslims celebrate. Like Eid ul-Fitr, Eid ul-Adha begins with a short prayer followed by a sermon (khuṬba). It is also called the bigger Eid because it lasts a day longer than Eid ul-Fitr.

(Source:UzDaily.com)