June 09, 2008

Politics:
President of Uzbekistan receives UAE minister
President of Uzbekistan participated in CIS summit in St. Petersburg
Islam Karimov, Dmitriy Medvedev Discuss Ties in St. Petersburg
Economics:
Uzbekistan, Italy Take On Path of Extending Relations
Expert Council of Business Forum for improvement of fiscal policy meets
Uzbekistan to strengthen GM’s positions
Society:
Painting Exhibition Unveils Young Talents, To-Be Masters
...And the Best Award Goes For ...A Doctor
Microsoft Windows Vista now available in Uzbek language
Uzbekistan is first team to advance into forth round of preliminaries for 2010 FIFA World Cup South Africa

POLICY

PRESIDENT OF UZBEKISTAN RECEIVES UAE MINISTER

President of Uzbekistan Islam Karimov received minister for Cabinet of Ministers of the United Arab Emirates, executive chairman of Dubai Holding Muhammad Abdulla al-Gargavi on June 9 in Tashkent.

The sides discussed issues of expansion of ties between Uzbekistan and the UAE, particularly in the economy and investments sphere, UzA reported.

The commodity turnover between the two countries made up USD 93.1 million in 2007. Almost 70 joint ventures created with UAE investments operate in Uzbekistan in the areas of foodstuff production, electronics, textile, construction materials and transport services.

Dubai Holding is one of the largest investment companies of the United Arab Emirates and participates in a number of economic projects in Uzbekistan.

PRESIDENT OF UZBEKISTAN PARTICIPATED IN CIS SUMMIT IN ST. PETERSBURG

President of Uzbekistan Islam Karimov participated in the informal meeting of the CIS Council of Heads of States in St. Petersburg, Russia, on June 6.

The presidents discussed issues related to the formation of the draft economic development strategy in the Commonwealth until 2020, the main directions of humanitarian cooperation and the development of the CIS.

The experience of interaction within the Commonwealth over the years shows that every member country has an enormous potential for development of the integration. The economies of the Commonwealth do not compete among themselves, but on the contrary, complement each other in many ways. All member states are interested in developing the cooperation.

Taking this into consideration, all necessary legal and institutional frameworks for development of cooperation in accordance with modern requirements have been set up within the CIS. All member states may provide their further development through the expansion of mutually beneficial ties in trade, economic, sociopolitical, cultural, humanitarian, military-technical and other areas.

When it comes to the ways of developing cooperation within the Commonwealth, President Islam Karimov notes the need to follow the principle “Economy first, policy second”. Nobody doubts that economic ties constitute the basis of interstate relations. When economic cooperation develops, there is economic interest between the nations and the political consent strengthens next.

To achieve these goals, the head of Uzbekistan put forward the initiative to establish the Free Trade Zone within the CIS. Of course, this process will require a lot of efforts, since the economic potential and the level of development of member states are different. Therefore, each country prefers to have its own methods and ways of cooperation and integration. Despite this, the adoption of the Concept of further development of CIS and the Plan of its implementation in 2007 was an important step in this direction. The economic sphere has also been defined as priority in this concept.

The CIS has a possibility to coordinate economic processes. This structure also serves as a source of receiving and exchanging information on the economic potential of member countries. Commonwealth summits create a convenient opportunity for the dialogue. Undoubtedly, each state determines its position regarding the discussed issues, primarily on the basis of its own national interests.

ISLAM KARIMOV, DMITRIY MEDVEDEV DISCUSS TIES IN ST.PETERSBURG

As has been reported earlier, on June 6 the President of the Republic of Uzbekistan Islam Karimov traveled to Saint Petersburg to attend the informal summit of the Commonwealth of Independent States (CIS).

The same day the Uzbek Leader met with the President of Russian Federation Dmitriy Medvedev, Jahon Information Agency reported.

During the meeting the sides have said that the cooperation between Uzbekistan and Russia was gradually developing in the spirit of Allied relations treaty signed in 2005 in Moscow.

Islam Karimov has said that the cooperation with Russia has always been of priority significance for Uzbekistan. In many respects, Uzbekistan and Russia employ same views on reforming the CIS. President of Uzbekistan proposed to merge the Eurasian Economic Community Organization (EurAsEC) with the Collective Security Treaty Organization (CSTO). It will serve the cause of raising the effectiveness of their activity.

Dmitriy Medvedev named Uzbekistan Russia’s key and strategic partner in Central Asia. He has underscored that the big plans are being elaborated for the future which would serve in perspective for further development the mutual relations.

Regular top-level meetings of heads of the two countries testify to the development of cooperation in all spheres based on principles of mutual trust and respect.

The multilateral relations between the two countries are seeing their active development in the framework of such structures as the UN, SCO, CIS, and EurAsEC. Uzbekistan and Russia are the partners in the struggle against such threats as drug trafficking, terrorism, extremism, and transnational organized crime, among others.

Uzbekistan and Russia closely cooperate practically in all sectors of economy. The volume of trade constantly grows. In 2007 such indicator grew by 48 percent and made up 4.2 billion dollars. The volume of industrial products is increasing, as well. The business forums, exhibitions, and meetings of intergovernmental commissions are held regularly.

Besides, the humanitarian cooperation between the two countries is consistently developing. In particular, the Forum of Culture and Arts of Uzbekistan Fund, the main goal of which is to propagate the rich historical and cultural heritage of the Uzbek people, holds various exhibitions, festivals and creative soirees. The branches of G.Plekhanov Russian Economics Academy, M.Lomonosov Moscow State University, and the I.Gubkin Russian State University of Oil and Gas are operating in Tashkent.

In Saint Petersburg Islam Karimov and Dmitriy Medvedev said they were satisfied with the scale of current relations. They have exchanged views on further development the relations between Uzbekistan and Russia, in particular, expanding and consolidating the trade, economic, scientific, technical, investment and humanitarian cooperation.

ECONOMY

UZBEKISTAN, ITALY TAKE ON PATH OF EXTENDING RELATIONS

From June 9 to June 13 this year the delegation of Italian business circles led by the president of Italian-Uzbek Chamber of Commerce Luigi Iperti will visit Uzbekistan, according to a press-release by the Chamber of Commerce and Industry of the Republic of Uzbekistan, Jahon Information Agency reported.

In keeping with the press-release, the goal of the visit is to extend the economic cooperation between the Uzbek and Italian business circles, establish mutually beneficial contacts with the Uzbek businesspeople and dwell on the prospects of bilateral cooperation.

The delegation staff will include the representatives of 24 Italian companies engaged in construction, textile, furniture and food spheres, as well as in manufacturing equipment, as well as metalworking.

As a part of their stay in Uzbekistan the Italian businesspeople will be joined by the representatives of local ministries and departments, sectoral associations and unions, commercial and industrial enterprises, as well as the small and private businesses of the country that operate in related sectors.

In accordance with the Partnership and Cooperation Agreement (PCA) between the Republic of Uzbekistan and European Union and their member-states, which came into effect starting from July 1, 1999, the most favoring regime has been established between Uzbekistan and Italy.

In 2007 the trade between Uzbekistan and Italy made up 62.4 million dollars. At the same time the exports rose and made up 24.5 million dollars, imports – 37.9 million dollars.

Forty-two enterprises with participation of Italian capital, including 35 joint ventures and 7 enterprises with a 100% Italian capital are now operating in Uzbekistan.

At the moment, seven offices of Italian firms and companies busied in textile production, wholesale trade of construction materials, production and supplies of equipments for food, oil and chemical industries, and others accredited at the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan.

The Uzbek-Italian business-forum, seminar on textile industry and bilateral negotiations between the business circles of Uzbekistan and Italy are going to be held as a part of the visit.

Besides, the bilateral talks between the businesspeople of Italy and Ferghana Valley are due on June 12. On June 13 such meetings will also be held between the business circles of Italy as well as Andijan and Namangan provinces.

EXPERT COUNCIL OF BUSINESS FORUM FOR IMPROVEMENT OF FISCAL POLICY MEETS

The meeting of the Expert Council of the Business Forum of Uzbekistan and the Chamber of Industry and Commerce of the Republic of Uzbekistan for the Improvement of Fiscal Policy on the new Tax Code of Uzbekistan and its further improvement was held on 6 June at the conference hall of the Poytaht Hotel in Tashkent.

The Business Forum was organized with the aim of assisting the implementation of this monitoring, providing the opportunity for the discussion of the norms and provisions of the new tax code requiring further improvement and correction to eliminate the existing inconsistencies and ambiguities by all parties concerned.

The tax system is one of the key instruments and factors of the state policy affecting both the development of the country in general and the private sector in particular. The main normative document regulating the tax policy is the Tax Code.

Ratified in 1997 the Tax Code did not fully meet the new tasks and priorities of the economic reforms to be implemented in the country. Numerous amendments and addenda have been introduced to the Tax Code since then. A number of regulatory documents were passed covering the field of taxation. As a result the tax legislation has lost its structure, has become vague and unclear. The Tax Code itself has failed to answer many tax-related issues, and could often be interpreted in several different ways.

In light of this, the government of the country developed and put into force as of 1 January 2008 the new Tax Code of the Republic of Uzbekistan. The new Tax Code is the body of law of direct actions reflecting all taxes and mandatory payments to be made to the state, i.e. it covers the whole "taxation field" of Uzbekistan while taking into account the specificity of taxation in different sectors of the economy.

According to the Law on the adoption of the new Tax Code, the Government will monitor and analyse its efficiency in implementation over the course of 2008-2009.

The event was organized by the Chamber of Industry and Commerce of the Republic of Uzbekistan (CICU) and the United Nations Development Programme's Business Forum of Uzbekistan and Public Finance Reform in Uzbekistan Projects.

Among the participants of the business forum were the representatives of the Oliy Majlis (parliament), the Cabinet of Ministers, the Ministry of Finance, the Ministry of Economy, the State Tax Committee, the Chamber of Industry and Commerce, the representatives of the private sector and international organizations, as well as the experts in the field of taxation and tax administration.

Participants discussed the issues concerning the practical application of the norms and provisions of the new Tax Code, as well as some specific issues of taxation of legal entities, the deadlines and the procedure for the payment of taxes. Close attention was paid to the issues concerning the taxation of labour and the Labour Remuneration Fund, including the procedure for the calculation and payment of the income tax, the single social tax, the insurance deductions, as well as the applicability and suitability of various benefits. Particular attention was given to the issues of indirect taxation.

Hot discussions were observed in the sessions on the issues of tax inspections, simplification of the scale of taxes on the income of individuals, the rate and payment procedure of the single social tax and indirect taxes, including the tax on value added.

The sharing of opinions helped participants come up with the specific recommendations and practical suggestions on the improvement of the norms and provisions of the Tax Code that will be submitted for consideration to the special interdepartmental group for comprehensive monitoring and analysis of the practical implementation of the Tax Code of the Republic of Uzbekistan.

UZBEKISTAN TO STRENGTHEN GM’S POSITIONS

This year the JV General Motors Uzbekistan (JV GM Uzbekistan) will reach the capacity of 200 thousand motor cars a year. In future its annual output is to be 250 thousand, Uzbekistan Today reported.

At the press conference in Tashkent the JV GM Uzbekistan’s deputy director-general Hery Weston emphasized in his speech on that.

“The Asaka car factory is to output exclusive car models which are not produced in any General Motors (GM) companies functioning in 35 countries of the world,” H. Weston said. “We should note that the GM has developed car co-production in the CIS and Eastern Europe but the JV GM Uzbekistan has the highest capacity among six similar GM enterprises in Russia, Ukraine, Kazakhstan and Poland.”

The chief executive of JSC Uzavtosanoat Ulugbek Rozukulov informs the UT that technical results, analytical works as well as statistical rates witness the GM Uzbekistan’s opportunity to reach high production capacity in 2008. For instance, between January and April this year the Asaka car factory’s output grew 23.3% in comparison with that of 2007 and was over 61 thousand cars. This output growth rate is to keep on because at the moment the company is optimizing its production. Particularly, it is constructing a new punching shop.

We should mention that the JV GM Uzbekistan was set up last autumn to produce three Chevrolet car models: Captiva, Epica and Tacuma. Its founders are JSC Uzavtosanoat having shareholding of 75% in the chartered capital and the world’s biggest corporation, leading car manufacturer General Motors whose share in the JV GM Uzbekistan is 25% that may reach 40% in future.

Today the Asaka car factory assembles Captica, Epica and Tacuma and in near three years it will get full production due to further production localization which was 60% last year. The press conference noted that localization rate would rapidly grow and Uzbek spare part manufacturers would have an opportunity to enter the world market. It promises good profits to both manufacturers and country in whole, said top managers of General Motors and JV GM Uzbekistan at the press conference. For instance, last year Uzbekistan’s output of spare parts increased 24.6% and this year it kept such a positive growth rate.

It was mentioned above that in near time the JV GM Uzbekistan plans to make its annual output 250 thousand off-roads and sedans including Cadillac. Now experts are estimating the necessary investment inflow. In addition, the company’s management should pay more attention to the problem of improving efficiency and productivity by practicing five principles of GM. It is involvement of people, standardization, built-in quality, effective functioning and constant improvement.

The General Motors’ authorities focus on the fact that the Uzbek government realizes the role of automobile industry in the development of national economy in whole and the country has properly-focused industrial policy, H. Weston stressed. Uzbekistan having vast personnel capacity assures that the GM Uzbekistan is to have a significant impact on strengthening of General Motors’ positions in the world market, especially, Europe.

The company’s analysts predict that the export of Uzbek sedans and off-roads to CIS countries is to grow 1.7 times by 2012. If last year the Uzbek market’s demand for GM motor cars was nearly 100 thousand, by 2012, experts evaluate, the ratio is to reach 2 million. One of the representatives of GM’s top management notes that these figures show increasing welfare of Uzbek citizens in this period.

SOCIETY

PAINTING EXHIBITION UNVEILS YOUNG TALENTS, TO-BE MASTERS

Last week the nationwide exhibition of young painters was launched at the Central Exhibition Hall of Academy of Arts of Uzbekistan. It is quite symbolic that such exhibition is held this year – the Year of Youth, Nasiba Sabirova of the Information Agency “Jahon” reported.

Many young painters from all around Uzbekistan took part at the event. They are the debutants – the pupils and graduates of art lyceums, colleges and institutes, students of design faculty as well as those who are already known to be among the amateurs of applied arts.

According to organizers, the exhibition of young painters is quite an interesting event. After all, it gives an opportunity to comprehend the daily life needs and thoughts of young generation, its interests and concerns, as well as which path it chooses in terms of unveiling its talents and skills to develop. Somebody is interested in classic forms and self-expression genres and yet another one chooses something new and modern.

“This exhibition gives us a fine opportunity to manifest ourselves, and as if to speak our way say in the art”, Nigora Sharafkhojaeva, the graduate of Kamoliddin Behzod National Institute of Arts and Design, said.

Over 600 works were presented in the said exhibition. They include the paintings, graphics, sculpture, tapestry, design items, as well as the exhibits of modern art such as installation, video art, and performance that allows to showcase all variety of talents of the Uzbek youth.

...AND THE BEST AWARD GOES FOR ...A DOCTOR

In Uzbekistan the protection of motherhood and childhood is raised to a rank of state policy. From the early days of independence the Government of Uzbekistan has been taking very resolute measures to enhance the level of medical services and decrease the female and child mortality rate, Jahon Information Agency quoting the Narodnoye slovo newspaper.

As the Uzbek Leader has said while speaking at the sitting of Cabinet of Ministers on the outcomes of social and economic development of the country in 2007 and the most important priorities of deepening of economic reforms in 2008, as a result of gradual improvement of people’s living standards for over the past 10 years the infant mortality rate per 1000 newborns in the country decreased from 23 to 13 cases.

For over the years of reforming the domestic healthcare the diverse network of screening-centers has been established nationwide. Thus, in 1996 the children’s hospital was founded in Navoi Province. Since last year it obtained the status of regional children’s multi-field center.

At the moment, 35 experienced doctors of various practices and 77 hospital nurses are working at the Center. Besides, the Center is the place for raising the level of skills of medical workers from the related establishments in the province.

Children are the most cherished value in life for the sake of whom we are building our great state. We are doing our utmost so that the forthcoming generation grows up happily, joyous, educated, morally and spiritually rich, as well as physically strong. For a doctor the healthy child is the highest award which he can get for his work, the newspaper report has concluded.

MICROSOFT WINDOWS VISTA NOW AVAILABLE IN UZBEK LANGUAGE

The Microsoft Corporation's office in Central Asia officially announced the release of the Uzbek language version of the Microsoft Windows Vista on 6 June this year.

Now this product will be available in the state language with the help of the Language Interface Pack (LIP). LIP is an external installable on any language version of Windows Vista, which makes it possible to use Windows desktop, Internet browser, media player in the Uzbek language, Uzreport Business Information Portal reported.

Today this is the first and the only localized product of Miscrosoft Corporation's on the territory of Uzbekistan. The Uzbek language version of the Windows Vista will be available for free to the users of licensed operational system on the Miscrosoft's official website. The localization fo the Microsoft Windows Vista is not only a contribution to the development of the local IT sector, but also a weighty support in the improvement of the computer literacy of the population as this problem is particularly acute in the countries of Central Asian region.

The new language version of the Windows Vista will undoubtedly simplify the operation of the information technology both for individuals and corporate users. In particular the Uzbek language version will allow experienced users make more efficient use of the PC in their native language, and for some it may become a strong support in gaining the basic computer skills.

The launch of the Microsoft Windows Vista LIP was implemented with the support of the Uzbek Agency for Communication and Information (UzACI) in cooperation with the Microsoft's partner in Uzbekistan, Spells Company. The work on this initiative has run for about one year after the launch of the Windows Vista. Apart from the development and production, time was taken for the approval of the special glossary consisting of the professional terms in the Uzbek language.

"The growth of the scale of IT use in the economy of the country is one Microsoft Company's priorities. We hope that in the future the number of localized Microsoft software solutions in Uzbekistan will grow, as their use in the economy, particularly in the fields of education and social sphere not only secures fast growth of the IT sector, but also assists the economic growth of the country in general," Aydar Dauletov, the Director General of the Microsoft Office in Kazakhstan and Central Asia said.

Right now one of the priority tasks of the Microsoft in Central Asia is to strengthen the development of the information technologies market, as well as to integrate and localize the most popular software products in the region. Miscrosoft intends to continue to put efforts to adapt its products in Uzbekistan and within the shortest period it plans to launch the Uzbek version of the Microsoft Office 2007.

UZBEKISTAN IS FIRST TEAM TO ADVANCE INTO FORTH ROUND OF PRELIMINARIES FOR 2010 FIFA WORLD CUP SOUTH AFRICA

Uzbekistan became the first and only team to storm into the forth round of preliminaries for the 2010 FIFA World Cup South Africa, Asia’s final ten-team round. Uzbekistan has two games to spare it picked up the fourth straight win, 1-0 over Singapore at Tashkent on Saturday, June 7.

Uzbekistan played an attacking football and Shatskikh, Djeparov and Zayniddin Tajiev had good chances to score, however only second half substitute Alexander Geynrikh scored the only goal with ten minutes to go.

Sixteen minutes after he was sent on, Geynrikh eased the home crowd’s worries by netting the winner. An onrushing Server Djeparov was tackled by Singapore forward Shi Jiayi but the loose ball fell into the path of Geynrikh, whose blistering shot from the edge of the area gave goalkeeper Lewis Lionel no chance.