June 20, 2008

Economics:
Uzbek-Lithuanian intergovernmental economic cooperation commission holds session
Exhibitions of Mini Technologies Promote to the Development of Farming
Almalyk Mining and Metallurgical Combine reinvests its profit
Uzbekistan encourages localization
For the protection of NGO interests
Premiere in the Uzbek mobile market
Society:
State program for identifying congenital and hereditary diseases adopted
Study group stepping to future profession
Healthy youth
Genetic diagnostics in blood service

ECONOMY

UZBEK-LITHUANIAN INTERGOVERNMENTAL ECONOMIC COOPERATION COMMISSION HOLDS SESSION

The Uzbek-Lithuanian intergovernmental commission for trade and economic cooperation held a session in Tashkent on June 19.

The forum was attended by representatives of various ministries and departments and companies of both countries operating in foreign economic relations, trade, fuel and energy sector, banking and finance, agriculture and water resources, foodstuffs, chemical and light industry, transport and communications, building materials, metallurgy, tourism, furniture industry and other sectors, UzA reported.

Speaking at the meeting, Deputy Minister for Foreign Economic Relations, Investment and Trade of Uzbekistan, commission co-chairman A.Kamalov noted that the cooperation between the two countries had been expanding in all areas. The visit of the President Islam Karimov in September 2002 to the Republic of Lithuania created new opportunities for raising bilateral relations to a higher level.

Lithuania is one of the important partners of Uzbekistan. Cooperation between the two nations is developing intensively in many areas. Regular meetings of the economic cooperation commission shows that both sides are equally interested in strengthening economic relations. In 2007, the two countries’ mutual trade turnover amounted to USD 72.4 million.

Favorable investment climate and the ongoing process of privatization in Uzbekistan draws the attention of many foreign businessmen, in particular those of Lithuania. More than 20 joint ventures operate in Uzbekistan with participation of Lithuanian investors. They work in such fields as textile, agricultural products processing, building materials, footwear production, electrical engineering, mechanical engineering and others.

Uzbekistan exports to Lithuania plastic products, petrochemical products, mechanical equipment, cotton, black metal and horticultural products. Imports from Lithuania include transport vehicles, dairy products and confectionery, sugar, chemical fiber, rubber, furniture, etc.

EXHIBITIONS OF MINI TECHNOLOGIES PROMOTE TO THE DEVELOPMENT OF FARMING

The reforms of agricultural sector of Uzbekistan are aimed at development of farming and more active implementation of modern technologies, Jahon Information Agency reported.

The decree of President of Uzbekistan “On holding the International specialized trade exhibition of mini technologies and compact equipment for agriculture” from 24 August 2006 has become a significant impetus for this sphere.

A number Uzbek and foreign companies presented their products and services at the third stage of the international specialized trade exhibition of mini technologies and compact equipment for agriculture in May this year in Tashkent.

These traditional exhibitions present to the farmers the state-of-the-art equipment and technology. It allows enhancing farmers’ agricultural capabilities, as well as increasing profitability of labor.

According to the press-service of the Farming Association of Uzbekistan, nearly 7,000 business people have participated at the exhibition. They have obtained about 8,000 agricultural equipment for leasing, as well as more than 3,000 mini equipment for credit to process fruits and vegetables, cereals, meat and milk. As an outcome of the exhibition more than 5,000 new jobs have been created, and UZS 27,8 billion worth of products have been delivered to the Uzbek market.

ALMALYK MINING AND METALLURGICAL COMBINE REINVESTS ITS PROFIT

The stability of many strategic sectors of economy both locally and globally depends on efficient use of super-profits, which metallurgical industries have gained in recent years due to increasing prices for nonferrous metals in the world market.

Here Uzbekistan’s state policy for modernization and technological reequipping of industries is a clear example. If we take into consideration that further prospects of some industries depend on development of others, this policy is farsighted, effective and highly profitable, Uzbekistan Today reported.

We should note, for instance, a great role of nonferrous metallurgy for information and communication companies. It is hard to overestimate the development of economic relations and Uzbek authorities pay special attention to wide introduction and use of information technologies almost in all sectors of economy.

Touching upon the issues of rational and accurate use of profits gained due to favorable world market situation, we may note that this year the Almalyk Mining and Metallurgical Combine (AMMC) intended to invest over 114.2 billion soums of its own funds in modernization and technical and technological reequipment.

The major capital inflows (66.37 billion soums) will be directed for implementation of a poly-metallic processing project in Khandiza deposit (Surkhandarya region) and Uch-Kulach deposit (Jizzak region) for processing 1.15 million tons of ore a year. The total cost of this work is over 101 billion soums, to be held within 2007 and 2009.

The poly-metallic ore, which the AMMC plans to extract from these sites, contains a wide range of components of nonferrous, rare-earth and precious metals. Considering the current prices in the world market, the estimated reserves of Khandiza cost nearly US$ 4.5 billion. The deposit contains silver, gold, copper and such accompanying rare-earth metals as selenium and cadmium.

But the main target of investment is zinc. The demand for zinc is constantly increasing and accordingly its price. In 2002 the average exchange cost for one ton of zinc was US$ 800; today – US$ 3.3-3.4 thousand. Foreign analysts predict that by 2011 the price is likely to be not less than US$ 2.5 thousand per ton. In this sense the Uzbek zinc producers do not agree with imbalance of Uzbekistan’s zinc reserves and processing capabilities.

In Uzbekistan zinc is produced by AMMC’s zinc plant that recently processed zinc imported as a toll. Here the demand for zinc concentrate is constantly growing. Therefore, the company had to activate development of its own resource basis.

The implementation of zinc concentrate production project will increase the workload of the AMMC’s copper-smelting and zinc plants. Consequently, new workplaces will raise employment. Specialists estimate that the complex will involve more than 1.7 thousand workers. The new railroad Guzar-Baisun-Kumkurgan’s will grow in loading. The freight turnover will increase due to additional annual transportation of 115-120 thousand tons of zinc concentrate to processing location and the complex’s incoming cargo.

The Almalyk MMC public corporation intends to invest in aggregate over 294 billion soums in modernization and technical and technological reequipment, using its own funds in the period of 2007 and 2012 and the country’s investment program included in a presidential resolution.

UZBEKISTAN ENCOURAGES LOCALIZATION

Uzbekistan approved the 2008-2010 Program on localization of production of finished goods, spare parts and materials on the basis of industrial cooperation.

The localization program was developed by the Uzbek Ministry of Economy, the Ministry of Foreign Economic Relations, Investment and Trade, the Ministry of Finance and the Uzbek Chamber of Commerce and Industry cooperatively with national companies, associations and industries.

According to the target parameters of production and localization level of basic industrial products for 2008-2010 the localization program mainly focuses on increase of production of up-to-date import substituting and competitive finished goods, component parts and technical units in such sectors as car industry, agricultural machine building and production of home appliances.

The localization level of production of “Nexia” (N 150, Euro 3) is to increase from current 51.4 to 56.0 % by 2010, “Matiz” (M 150, Euro 3) from 50.7 to 55.0 %, IL 76 and IL 114 airliners from 21.0 to 27.0%, TTZ wheeled tractors from 58.0 to 64%, Case New Holland multipurpose tractor from 34.0 to 36.5%, Sino home refrigerators and freezers from 67.0 to 75.0%, Roison Electronics air conditioners from 35.0 to 45.0%, Roison Electronics color TV sets from 45.0 to 49.0% and Zenith Electronics DVD players from 30.2 to 45.0%.

President Islam Karimov’s Resolution “On 2008-2010 Program on localization of production of finished goods, component parts and materials on the basis of industrial cooperation” releases manufacturers of component parts from customs till January 1, 2011 for imported technological equipment and its spare parts, imported components used in the technological process in manufacturing localized products.

Till January 1, 2011 these manufacturers are released from income tax, single tax payment (for business entities which use simplified taxation scheme) for goods produced under localization projects and property tax on basic production funds invested in manufacturing the localized products.

The restrained funds are directed to launching of new production, development, reconstruction, modernization, technical and technological re-equipment of functioning industries, purchase of raw materials necessary for manufacturing the localized products, encouragement and promotion of technical and engineering staffs of industries involved in the implementation of localization program.

FOR THE PROTECTION OF NGO INTERESTS

A round table on “Taxation of NGO in the Republic of Uzbekistan” took place in the National Association of NGOs of Uzbekistan (NANGO). Institute for the Study of Civil Society and Legal Issues Study Center also participated in the organization of the meeting.

The event was carried out on the occasion of monitoring, which was led under the project “Further strengthening of interaction and cooperation between government bodies and NGO”. Participants of the meeting discussed issues of NGO interaction with rating authorities and simplification of tax accounts, got acquainted with the new order of NGO taxation, types of taxing and privileges.

“A working group has been set up at NANGOUz for preparation of proposals regarding amendments and additions to the taxation legislation and their transfer to the tax committee to solve taxation and tax accounts problems of NGOs,” noted Gulnora Ishankhanova, Deputy Chairman of NANGO for legal issues. “We also plan to organize meetings with representatives of interested ministries and departments as well as NGOs to discuss proposals and develop specific measures to solve pressing issues.”

PREMIERE IN THE UZBEK MOBILE MARKET

Uzbekistan’s mobile communication market experienced a key event: the “Unitel” LLC TM “Beeline” was the country’s first mobile company to launch a tariff plan in national currency.

The authorities of Russian “VimpelCom” OSC controlling the “Unitel” LLC say that it is due to recent rapid socio-economic development in the republic including stability in the Uzbek financial market, strengthening of national currency and controllability of inflation.

Here we should note that the “First Soum” is a second-based tariff plan which is rather a rare thing for mobile companies of Uzbekistan and has no subscriber fee and intra-network roaming.

At present there are five mobile operators in Uzbekistan including three GSM ones. Today the number of their subscribers is nearly 8 million. International experts estimate that the Uzbek market of mobile communication is a most perspective one among European and Central Asian countries. They predict that by 2010 the number of mobile subscribers is to reach 13.2 million and 15.2 million by 2015.

SOCIETY

STATE PROGRAM FOR IDENTIFYING CONGENITAL AND HEREDITARY DISEASES ADOPTED

Since the first days of independence, formation of healthy families and improving the health of women and children has been among the priority policies of Uzbekistan. To meet these challenges, since 1998 specific measures have been implemented for early detection of congenital and other pathologies with pregnant women and newborns to prevent the birth of the disabled since childhood.

The main focus was on creating specialized medical system that provides healthcare-genetic help to the population, screening of expectant mothers and newborn babies, aimed at creating conditions for the birth of healthy children.

During this period, the Ministry of Health in conjunction with the Fund “Soglom avlod uchun” in Tashkent and regional centers have organized and equipped with modern diagnostic equipment 11 centers of screening mothers and children.

As a result of development of the state system of early detection of congenital and hereditary diseases among newborns and pregnant women, examination of newborns increased from 5.3% in 1999 to 83% in 2007, and the birth of children with congenital anomalies decreased by 14% in 2007 compared to 2000.

At the same time, Syrdarya and Jizzakh regions still have no screening centers. Among the problems requiring attention is raising the awareness of the general population, especially the youth, on the importance of primary prevention of congenital and hereditary diseases.

Given the enormous importance of the matter, President of the Republic of Uzbekistan signed a resolution on 18 June 2008, which approved the State program of early detection of congenital and hereditary diseases to prevent the birth of the disabled since childhood for the period of 2008-2012. Its adoption is an important link in the implementation of the state program “Year of the youth”.

Among the wide range of tasks envisaged by the program is improvement of the primary prevention of congenital and hereditary diseases. The awareness raising activities are going to increase, including round tables, conferences and meetings.

The document also envisages equipping the national and regional screening centers with modern equipment. Besides, regional screening centers are going to be set up in Syrdarya and Jizzakh regions.

There are plans to provide the regional screening centers with high-resolution ultrasound scanners, refrigerating and other modern equipment. By the end of this year, all screening centers will be equipped with electronic devices for processing biological material, which should significantly speed up the diagnosis process.

Providing screening centers will special transport will ensure timely delivery of blood samples to screening centers in remote areas, expand the coverage of the population with modern examination methods and ease the work of identifying patients with hereditary diseases.

By 2012, it is expected that the coverage of the newborns with screening will reach 90%, and this will ensure timely identification of the most common hereditary diseases.

The state program also envisages wider provision of children with special nutrition and medicines. If in 2003-2007, USD 951,100 was spent for these purposes, the new program stipulates spending of some USD 1.7 million in 2008-2012.

Measures have been outlined also to raise the qualification of the professionals working at screening centers, including their training abroad and holding seminars and conferences with visiting foreign specialists.

In general, to implement the program, UZS 710.3 million and USD 15 million will be allocated.

STUDY GROUP STEPPING TO FUTURE PROFESSION

Ministry of Public Education, Ministry of Finance, Ministry of Economy, State Test Center, and “Hayot” (Life) Non-governmental Organization developed action plan to provide next school year an opportunity for many schoolchildren having desire to attend study groups during school year but having no such opportunity because of remote distance between their homes and children’s creation centers.

“Next school year all secondary schools intend to set up various study groups to create worthy conditions for children,” said departmental chief Daniyor Uralov of infant educational institutions. “School teachers will be trainers of study groups. For instance, physics teachers can teach bases of radio mechanics after regular classes. Methodic manuals for the new study groups will be developed by experienced specialists from republican centers for technical creation, students’ art, “Bioecosan” and children’s tourism and study of local lore.”

The Uzbek Ministry of Public Education says that children’s creation centers having their offices in each district will develop and strengthen their resource bases.

“The increasing number of study groups will involve more children in extracurricular education. It will have a positive impact on professional diagnostics of students because children choose their favorite study group, basing on their personal interests and future professions,” said a leading specialist Dilbar Haitova at Psychological-Pedagogical Diagnosing Center.

HEALTHY YOUTH

It is the name of the project of Social Initiatives Support Fund (SISF), in the framework of which “We chose a healthy way of life, we have no time for something else!” action was held in the Babur Park in Tashkent.

This action of SISF, which was carried out together with the “Kelajak ovozi” youth initiatives center, Population Services International (PSI) and “UNAIDS” UN Development Program Agency, is directed at development of a healthy way of life of youth, prevention of HIV/AIDS and protection of the environment.

Contests of children’s posters, armature drama shows, contests, games and quizzes took place in the most beautiful park of Tashkent. Performances of extreme sports were entertaining. Most active participants received presents from the organizers.

“Soon the similar actions will be held in Fergana, Andijan, Namangan, Kokand, Samarkand and Karshi,” said director of SISF programs Elyor Abbosov. \

GENETIC DIAGNOSTICS IN BLOOD SERVICE

The further introduction of genetic diagnostics in haematologic service were discussed on the meeting of Uzbek and Russian haematologists, which took place in the Scientific Research Institute of Haematology and Blood Transfusion of the Ministry of Health of Uzbekistan.

Specialists of the Genetics and Plants Institute of the Academy of Science of Uzbekistan, Scientific Research Institute of the Haematology and Blood Transfusion of the Ministry of Health of Uzbekistan told their Russian colleagues about their achievements in genetic diagnostics of blood diseases. Representatives of the Russian Federal Medical Genetics Center, the Scientific Research Institute of Haematology and Transfusiology of the Russian Federation and Inter-Lab Service of St. Petersburg shared their experience. Perinatal diagnostics of hemophilia and Willebrand disease, application of molecular diagnostics of hematopoietic system diseases, leukemia in particular, virus and bacterial infections were discussed in detail.

“We have considerable achievements in scientific researches of molecular and genetic diagnostics since Uzbekistan was the first to conduct such researches in Central Asia,” said Hamid Karimov, director of the Haematology and Blood Transfusion Institute of the Ministry of Health of Uzbekistan. “Ten years ago only the Scientific Research Institute of Immunology and Scientific Research Institute of Genetics and Experimental Phytobiology were engaged in genetic diagnostics on a scientific level, today we have laboratories which solve these issues in separate disease groups. In particular, for some years the Republican Specialized Center of Cardiology is engaged in genetic diagnostics, and last year a laboratory of genetic diagnostics of blood diseases opened under the Scientific Research Institute of Blood Transfusion.”

Russian specialists were especially attracted by organization of a screening centers network, where parents can detect possible problems of future children. In Uzbekistan such network was the first in the CIS, and many countries including Russia intend to create similar ones. As almost all serious blood diseases are detected at this stage doctors have time to help the parents to bear healthy children.