May 19, 2008

Economics:
The outcomes of social and economic development of the Republic of Uzbekistan during the first quarter of 2008
Head of Russian Lukoil notes Uzbekistan's high potential
Avtooyna enhances output
Society:
Seminar discusses mechanisms of women's rights protection
UWED Legal Clinic holds round table with journalists
Republican "Barkamol avlod-2008" sport games started
Success of young Uzbek musicians
Six stood on the pedestal
The 44th Olympian

ECONOMY

THE OUTCOMES OF SOCIAL AND ECONOMIC DEVELOPMENT OF THE REPUBLIC OF UZBEKISTAN DURING THE FIRST QUARTER OF 2008

During the first quarter of 2008 the measures taken by the government and bodies of state power at the local levels were aimed at providing for implementation of the most important priorities of social and economic development of the country for 2008 set by President in his address on February 8 this year, the most important range of programs, as well as the development programs, technical and technological renewal of strategic sectors of economy.

I. Providing for macroeconomic stability, sustainable and balanced economic growth rates. Despite the severe climatic conditions and lasting cold weather in January and February this year, the stable economic growth rate was maintained at the first quarter 2008. It has made up 8.1%. The structural reconstruction of economy thanks to active investment and foreign economic policy, modernization, technical and technological re-equipment of the leading industrial sectors of economy, as well as sustaining the favorable business climate for private entrepreneurship have served as main factors for such economic growth.

As a result, the volumes of industrial production grew by 10.6%, including the consumer goods – by 17.2%, agriculture – 4.8%, construction works – 5%, retail trade – 12.7%, paid services – 19.8%.

During the said period the State budget has been observed to have been balanced and sustainable. Given the implementation of forecast parameters of the State budget profits by 100.3% for over the first quarter this year its surplus made up 1.7%. Despite the tax burden has been decreased for small businesses the Budget saw the rise in revenues from single tax payments for micro-firms and small companies by 40.2% against the same period last year, as well as from the income taxation of legal entities – by 49.3%.

The volume of money supply did not exceed the forecast parameters. Thanks to expanding the payments on accounts and increasing the trust in banking system the deposits in cash by people to banks grew by 25%, from trade and services – by 35%.

The high grown rates of exports of goods and services which in comparison to the first quarter 2007 grew by 56.1% have strengthened the sustainability of the country’s balance of payments. The most dynamic growth saw the exports of energy resources and oil products (by two times), machines and equipment (120.3%), chemical products (127.1%), and services (115.5%).

II. Continuing the structural reforms, modernization and renewal of leading branches of economy by way of attracting foreign investments, and firstly, the foreign direct investments. The investment policy during the said period promoted the deepening of structural reforms and was aimed at creating the favorable conditions for implementing the large projects to technically modernize the industrial enterprises. The volumes of assimilated capital investments with taking into consideration all sources of financing made up UZS 1622.8 billion, or grew by 41% against the first quarter 2007.

The main growth of assimilated investments was provided for thanks to increasing the volumes of foreign investments and loans by 46.5% compare to the same period 2007, including the direct foreign investments – by 56.8%, own funds of companies – by 78.2%. In this, the share of funds of companies in the total volume of investments rose from 43.5% to 54.3% compare to the same period 2007, and the direct foreign investments and loans –up to 10% against 11.4%.

105 industrial sites were commissioned in the first quarter of this year. The co-financing of projects at the account of funds of Reconstruction and Development Fund launched in 2007 is going on. The implementation of a new project on procuring 200 Mercedes Benz busses is started which aims to renovate the current fleet of Toshshahartranshizmat Association.

During the said period the implementation of programs on modernizing, technically and technologically reequipping the most important branches and large enterprises of industry has been continued. 12 sites were commissioned, including 6 – in the light industry, 3 – in the sphere of production of construction materials, 2 – in automobile industry, and 1 – in chemical industry.

The implementation of those projects resulted in mastering the new model of Nexia-2 (N150), as well as production of big size polyethylene pipes was launched at the Jizzakh plasstmassa Open Joint-Stock Company. The Kuvasay kurulish LLC began to produce slates. The three new joint ventures on producing yarn and knitwear goods based on existing textile plants were established.

As a part of the Program of localization in January-March this year 1.3 times more products was manufactured compare to the same period last year. The calculated effect of import-substitution made up 464 million dollars.

In the structure of industrial production the net share of products of fuel industry grew from 17.8% to 19.1%, food industry – from 8% to 9.4%, machinery and metal processing – from 14.0% to 14.3%, and production of construction materials – from 3.8% to 5%. The highest growth rates were maintained in the food industry (131.6%), wood processing and pulp and paper industry (128.1%), machinery and metal processing (122.8%), as well as fuel production (116.6%).

As a result of measures undertaken to develop the ICT by April 1 this year, the number of economic entities rendering data transfer services, including access to Internet achieved 797 (growth at 2%), and the total number of Internet subscribers exceeded 2 million 132 thousand and rose by 5.8%. The volume of rendering the mobile services is also rapidly growing.

III. Deepening the reforms and further liberalizing the economy, priority development of market infrastructure. During the implementation of the Privatization program for the first quarter of 2008, 97 (138.3% towards the set task) state companies, entities and packages of shares were realized. In the said period 120 state companies, of which 97.5% were fully bought off by private entrepreneurs.

During the first quarter of 2008 the market infrastructure saw its further development thanks to the implementation of the Program of reforming the financial and banking system, accomplishment of measures to promote the activity of insurance, audit, leasing and appraisal firms, credit unions and commercial banks, as well as introduction of market mechanisms of realizing the material resources.

Compare to the same period of 2007 the authorized capital of commercial banks grew two-fold, while the total capital and credit investments to economy grew by 39.0% and 22.2%, respectively. The growth of people’s deposits with commercial banks made up 49%. The volumes of loans allotted by banks for a financial support of small businesses and private entrepreneurships rose by 39.8%, as well as the volumes of micro-credits for entrepreneurs and physical entities – by 40.5%.

Compare to the first quarter of 2007 the volumes of leasing operations increased to three times. The total volume of insurance payments on all types of insurance rose by 31%. As a whole, the financial services including the allocation of micro-credits grew by 30.1%.

IV. Supporting and stimulating the development of small businesses and private entrepreneurship, sphere of services and home-based labor as the most important direction of providing for employment of population as well as increasing its prosperity. As a result of measures undertaken to support and stimulate the development of small businesses and private entrepreneurship the total number of small businesses in the country increased by 1.8% compare to the early 2008 and made up 429.7 thousand.

As an outcome of gradual implementation of Program on developing the sphere of services the volumes of services in the first quarter of this year rose by 21.7% as a whole, their net share in GDP accounted for 44.4% against 43.5% of the same period of 2007. Over 217 new retail trade and public catering companies began operating. More than hundred transport routes were launched. The transportations along the newly built railroad line Tashguzar-Baysun-Kumkurgan are being extended. That has allowed for the growth of volume of transport services by 14.8%. The number of digital Automatic Telephone Stations and mobile communication services saw its rise. In its turn, it has provided for the growth in services of communication and information by 45.7%.

During the first quarter of 2008 the measures on further reforming the housing and communal services were undertaken. 288 residential houses were overhauled.

For over the course of implementing the territorial programs of people’s employment in the first quarter of this year about 170 thousand new jobs were created, including in the sphere of small business and private entrepreneurship – 97.9 thousand. Over 67.4 thousand new jobs were established in the sphere of services. As a result of active work to extend the home-based labor 55 thousand jobs were created, including 27.3 thousand established jointly with companies. The active policies in the labor market promoted the growth of employment by 3% and the number of employed rose up to 309.7 thousand by making up 10.7 million people.

V. Providing for land-improvement and increasing the fertility of irrigated land, results of reforms in agriculture. In the framework of State Program for land-improvement of irrigated lands for 2008-2012 Uzbekistan took measures to better the reclamation condition of irrigated lands. For over the first quarter of this year the growth GDP of agriculture made up 104.8% compare to the same period of 2007. More milk (105.1%), meat (106.2%), eggs (107.6%) and vegetables (105.1%) were produced this year compare to 2007.

By April 1, 2008 the total number of farms accounted for 222 thousand. At the same time, one farm owns on average 26.2 hectares of land. Reorganization of shirkats into farms was completed.

Uzbekistan actively continues the work to implement the Program to stimulate cattle at private subsidiary, dekhkan entities and farms. By April 1, 2008 the commercial banks and Employment assistance fund at the Ministry of Labor and Social Protection allotted micro-credits worth in total UZS 7.2 billion to population to procure cattle.

VI. Developing the social sphere and increasing the well being of population. The high rates of economic growth and employment of population and the measures aimed at raising the efficiency of social protection ensured the growth of people’s well being. As a result of measures undertaken to increase salaries and extend private businesses the real money incomes compare to the first quarter of last year rose by 23%.

In the first quarter of this year the country commissioned 3 academic lyceums for 1980 students in the Tashkent, Khorezm provinces and Yakkasaroy district of Tashkent city, as well as one professional college for 720 students in Namangan Province. Besides, Uzbekistan began constructing 70 new schools, 156 professional colleges and 14 academic lyceums with total number of student attendance at 137965, 18 rural medical stations and ambulatory polyclinics with attendance of 985 patients per shift.

In the framework of programs being implemented in the system of education Uzbekistan elaborates the measures to implement the State program on strengthening the material and technical base of children’s music schools and schools of arts and further bettering their activity for 2009-2014.

The country took active measures to undertake measures set in the State program of Year of Youth aimed at materially supporting the youth, creating the new jobs for it, bettering living and housing conditions of young families, and increasing the quality of youth education. Uzbekistan plans to channel UZS 1.5 trillion this year to finance the aforesaid tasks. With an aim to support the young families 2 housing apartments with 32 flats were commissioned. The mortgage credits worth UZS 6.7 billion as well as consumer credits worth 4.5 billion were allotted. The soft loans worth UZS 1.4 billion were allotted for the young families to procure cattle. 3.2 thousand young men who have completed the active duty service in the Armed Forces were employed.

Based on materials of Ministry of Economy of the Republic of Uzbekistan and State Statistics Committee of the Republic of Uzbekistan by the Information Agency "Jahon" in English

HEAD OF RUSSIAN LUKOIL NOTES UZBEKISTAN'S HIGH POTENTIAL

"We believe in Uzbekistan's potential," Vagit Alekperov, president of Lukoil open joint-stock company, says.

The leaderships of several Uzbek ministries, agencies and Uzbekneftgaz national holding company took part in an away meeting of Lukoil company's board of directors which was held in April this year, according to a report by Xalq Sozi newspaper on May 15.

The meeting considered the results of the implementation of projects in Uzbekistan and the issues of making preparations for holding the annual meeting of the oil company's shareholders.

"Our company's net profit was particularly considerable in 2007," Alekperov said. "It would not be wrong to say that of course, in many respects it was achieved as a result of the successful implementation of projects in Uzbekistan".

The company's representative office is operating in Tashkent. Lukoil Overseas Uzbekistan Ltd subsidiary company was set up. It is engaged in the implementation of Qandim-Hauzak-Shodi-Qongirot mega project signed with Uzbekneftgaz in line with the terms of the production sharing agreement (PSA). The agreement is worth nearly US$580 million. The PSA was signed for 36 years on 23 January 2007, and came into force on 23 April last year.

"We believe in Uzbekistan's high potential," the head of Lukoil noted. "This enables us to expand our activity. Thus, it is planned to build a modern gas and chemical complex at Qandim deposits with the capacity of 8 billion cubic metres of gas a year. I hope its first line will be put into operation in 2011".

Apart from the Qandim-Hauzak-Shodi-Qongirot project, Lukoil is taking part in the implementation of the biggest and fundamental project - the Aral project. This involves prospecting and developing hydrocarbon deposits in the Uzbek part of Aral Sea as stipulated in the PSA's terms.

Actually, a project on geological prospecting of the Aral Sea's water area for oil and gas began on 30 September 2006. An international consortium of investors was set up to implement the project.

So far, Lukoil has allocated US$500 million for the implementation of projects in Uzbekistan. It is planned to invest US$5.5 billion by 2015.

AVTOOYNA ENHANCES OUTPUT

By late 2010 the JSC “Avtooyna” a manufacturer of safe car glasses, will increase its output 1.75 times, up to 350 thousand sets of car glass per year.

The company will implement the investment project under the car industry localization program, using credits of “Asaka” Bank and funds of the JSC “O’zavtosanoat,” whose subsidiary is the “Avtooyna.”

The company’s technical deputy director, Shavkat Tursunov states that the launching of the second production line will allow the “Avtooyna” to increase the range of its products and output by developing the production of new types of geometrically complicated car glasses and to cut down its production price by computerizing a number of technological processes. Particularly, the “Avtooyna” plans to install glass laminating, cutting and processing lines, glass tempering furnace as well as glass stenciling, washing and drying lines.

The “Avtooyna” was established in 2002 and specialized in manufacturing multilayered wind screens (triplex) and wing and rear tempered windows (stalinite). The company began manufacturing the products in March 2004 after launching its technological lines, where the company installed equipment of the world’s best manufacturers such as Italian Tekna and Mario Argiro, Finnish Pilkington Engineering Group and Swiss Bystonic.

The “Avtooyna” delivers its products to the Asaka automobile plant in Andijan region and to the “Samavto” in Samarkand and to the open market of spare parts. The Uzbek “Kvartz” (flat glass), Swiss DuPont de Nemours, German Ferro GmbH (black and silver paste) and Korean UzautoSan Trading Co. Ltd. (terminals and plate holders) deliver materials to the company.

Last September the quality management system of the “Avtooyna” was certified by the TUV Thuringen on the DIN EN ISO 9001:2000 requirements.

The car industry of Uzbekistan is a complex of enterprises equipped with up-to-date technological lines and equipment. Their products enjoy high demand of home and foreign markets. A clear example is s contract signed last year with the world’s biggest corporation, General Motors to manufacture three Chevrolet models: Captiva, Epica and Tacumu.

SOCIETY

SEMINAR DISCUSSES MECHANISMS OF WOMEN'S RIGHTS PROTECTION

Regional representatives of Women's Committee, Hokimiyat and Makhalla committees got acquainted with the UN Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) and other gender-related issues, Uzreport Business Information Portal reported.

About 20 representatives of the regional branches of the Women's Committee of Uzbekistan, Hokimiyat and Makhalla committees participated at the seminar entitled "Gender Awareness and CEDAW", which took place on May 15-16.

The event was organized within the joint project of UNDP and the Women's Committee of Uzbekistan "Legislative and Institutional Capacity Development for Women's Empowerment in Uzbekistan". The project is directed at supporting and building the capacity of the government, civil society and mass media in reducing the gender gaps via raising awareness of and implementing the recommendations of the Committee on the Elimination of Discrimination against Women (CEDAW Committee) to Uzbekistan.

During the training course participants was involved in presentations, case studies and discussions directed on promotion of the ideas of the CEDAW, including gender equality, elimination of discrimination and stereotypes, as well as violence against women.

Khilola Badriddinova, Education and training specialist of the project "Legislative and Institutional Capacity Development for Women's Empowerment in Uzbekistan", said: "The representatives of Women's Committee, Khokimiyats and Mahalla committees work with people in all regions and it is important to enhance their knowledge on international and national mechanisms on protection of women's rights. We hope that the participants will contribute to improvement of women's rights protection in places."

The CEDAW Convention adopted in 1979 by the UN General Assembly, is an international document on the rights of women. Uzbekistan was the first Central Asian country to ratify the convention in 1995 and has reported twice to the CEDAW Committee on its implementation. The country will present its next report in August 2008.

UWED LEGAL CLINIC HOLDS ROUND TABLE WITH JOURNALISTS

Legal Clinic under the University of World Economy and Diplomacy (UWED) in cooperation with newspaper Molodej Uzbekistana (Youth of Uzbekistan) held a round table on the cooperation of the Legal Clinic with mass media to discuss key issues on youth rights and promotion of legal knowledge among youth.

The round table was held within the framework of UNDP project "Legal Aid and Legal Literacy for Better Access to Justice". The project is directed at improving access to justice for people who cannot afford or have limited access to legal services, including women, children, the poor, the elderly and people with disabilities and increasing quality of legal services through training of law students.

The event, which was held at the Legal Clinic of the UWED on 15 May, was dedicated to the Year of Youth in Uzbekistan. It was aimed at youth rights, improve their legal knowledge, discussion of the legislation, regulating their rights and responsibilities through cooperation with the mass media.

The topic for the roundtable meeting was selected based on the interest of the newspaper journalists in these sphere and increasing number of request for legal trainings for school and college students.

REPUBLICAN "BARKAMOL AVLOD-2008" SPORT GAMES STARTED

Students of lyceums and secondary special and professional educational institutions gathered in Karakalpakstan’s capital, Nukus to participate in Republican “Barkamol avlod-2008” sports games. It is a component of the National program on training specialists, UzA reported.

This system, directed to educate harmoniously developed person, includes “Universiada” among students of higher educational institutions. Students of secondary special and professional educational institutions gather to participate in “Barkamol avlod” sports games. “Umid nihollari” is the first part of the three-stage continuous sports system developed on the initiative of President Islam Karimov.

The given three-stage system has completely justified itself and has been constantly improved.

The great ceremony was opened by the chairman of Jokargi Kenes of Karakalpakstan M. Erniyazov.

State adviser of the President of Uzbekistan H.Sultanov read the greeting of President Islam Karimov to participants of “Barkamol avlod-2008” sports games.
The Prime Minister of Uzbekistan Sh.Mirziyoyev participated in the opening ceremony.

SUCCESS OF YOUNG UZBEK MUSICIANS

The success of young Uzbek musicians in international competitions is a usual thing. At the same time, every new success of children is pleasant and stirs up pride for their talents and hardworking and desire to be always the first and for progress of Uzbek music school. The Ninth International Competition of Nikolai Rubenstein in Paris and “Blue Bird” in Simferopol rewarded the Uzbek schoolchildren with gold and silver medals.

Over 80 pianists from Armenia, Azerbaijan, France, Georgia, Germany, Italy, Kazakhstan, Rumania, Russia, Ukraine, United States, Uzbekistan and other countries of the world participated in Paris competition. The Uzbek pianists had strong rivals. The competition terms state that competitors are to show their talent of playing extremely complicated classic compositions, to demonstrate their excellent playing technique and express emotional philosophy of compositions. We should note that the Uzbek team was successful in all stages and reached impressive progress. Eight of nine representatives of Uzbekistan took top places in pianist competition and a girl was awarded an incentive prize.

“I have participated in such competitions several times,” says Shahnoza Dadabaeva, seventh-grade student of the Uspensky Republican Specialized Music Lyceum. “I have already taken part in international competitions in Greece and Italy where I won the first prizes. In Paris I was awarded the second prize, I have known lots of new things and realized that perfection has no boundaries.”

“I am much pleased with this competition. Now I feel freer on stage and I have increased in endurance. The Paris competition was the second one in my life and I hope that it is not the last one because I have big plans and aspire to realize them,” noted Agatha Kim, gold medal winner in this competition.

French music experts think that this year the Nikolai Rubenstein International Pianist Competition differed in extremely high level of its participants most of whom were quite known as masters and laureates of other international music competitions. The members of international jury noted that the competition was a key music event in cultural life of Paris where talented and gifted pianists almost from all parts of the world played classic compositions.

“We are pleased that our children have a great success here. They gained good results, taking into consideration that it was the first international competition abroad for most of them,” stressed Larisa Muhitdinova, piano teacher and deputy director (education) of the Republican Specialized Music Lyceum.

Another competition that was a great success for Uzbek schoolchildren was the “Blue Bird”, international competition in Ukraine. There four students of the lyceum represented Uzbekistan and three of them took the first places Muhriddin Saifiddinov (violin), Jamshid Saidkarimov (violoncello) and Elena Kann (piano). The majority of participants noted that the competition did not expect talented rivals from Uzbekistan. Musicians from Baltic countries, Russia, South Korea, Ukraine and Uzbekistan participated in it.

“I like deep sounding of violoncello,” Jamshid Saidkarimov says. “I have taken part in several music competitions such as “Sanat g’unchalari” republican music competition and Glazunov’s competition in Paris where I won grand prix last year. This competition was very important for me but I did my best and won it.”

Teachers of the competitors were also awarded diplomas upon the end of both competitions. It was Lidia Florentyeva, Larisa Muhitdinova, Masuda Ahmedova and Madina Galiulina who taught children playing and thinking and who were worth the highest title, “Teacher”.

SIX STOOD ON THE PEDESTAL

Six Uzbek boxers participated in the international tournament in Finland during preparation to the main start – the 29th Summer Olympic Games. And all of them stood on the pedestal.

Little pigeons can carry great messages. These words surely can be addressed to Rafik Sultanov from Qoqand, who took the first place in the lightest weight category (up to 48 kg), and Tulyashbay Daniyarov from Namangan, who won the gold in the weight up to 51 kg. Dilshod Makhmudov (up to 69) from Ferghana went through the tournament without defeats. Experienced Bahodir Sultanov (57) from Andijan, who came back with an Olympic bronze medal from Athens four years ago, won the silver in Helsinki. And world champion of 2007 Abbos Atoev (81) from Bukhara and Hurshid Tajibaev (54) from Jizzakh became the bronze winners. Head trainer of the national team of Uzbekistan Sharaf Hudayberdiev gave a break to the seventh Uzbek Olympian Elshod Rasulov (75).

THE 44TH OLYMPIAN

Another athlete joined the Olympian squad of Uzbekistan, which is preparing to go to Beijing: Dilshod Aripov from Tashkent won a license on the qualification tournament of Greco-Roman style wrestling in Italy in up to 60 kg weight category.

It was a matter of honor to get the Beijing license for highly experienced Dilshod, who participated in the Olympic Games in Sydney in 2000, and a year after won the world champion’s title in Greece. And he pulled it off by winning a silver medal of the tournament.

“Achilov is our third Olympian among Greco-Roman style wrestlers,” Konstantin Mikhailov, secretary general of the Wrestling Association of Uzbekistan. “Before him there were Ildar Hafizov in up to 55 kg weight category and David Soladze in the category up to 120 kg. And Ravshan Ruzikulov (66), Djahongir Muminov (74), Denis Zdorikov (84) and Genadiy Chkhaidze (96) will try to use their chance on the last qualification tournament, which will take place on 23-25 of May in Serbia.