July 09, 2007
Economics:
ICT complex executives review first half-year results
Uzbekistan open to cooperation with Chinese businessmen
Tashkent hosts meeting on oil and gas taxation in Uzbekistan
Uzbekistan Airways conducts first regular passenger flight to Cairo
Society:
Tashkent Law Institute students train on legal clinical education
UNFPA supports Uzbek Health Ministry in training medical workers
ECONOMICS
ICT COMPLEX EXECUTIVES REVIEW FIRST HALF-YEAR RESULTS
Information Systems and Telecommunication Complex of the Cabinet of Ministers held a meeting on the results of socio-economic development in the first half of 2007.
The executives of the complex discussed the course of implementation of the tasks outlined in President Karimov's report titled "The guarantee of our wellbeing - building a democratic juridical state, liberal economy and foundations of civil society" and the program of socio-economic reforms in the field of ICT.
It was noted that during the reporting period, major work was carried out to improve the regulatory-legal groundwork, strengthen socio-economic reforms, democratise and liberalise mass media, denationalise and privatise the enterprises of the industry, attract foreign investments, strengthen the financial and executive disciplines, expand the range of service provided in the sphere, modernise and develop the telecommunication networks and information systems.
In the reporting half-year, the enterprises, agencies and organisations of the complex produced goods and services for some 388.8 billion soums. The industry's output grew by 48.3% compared to the first half of the year 2006.
It was noted that in the reporting period the number of mobile network subscribers reached 3.7 million people, and the number of Internet users exceeded 1.8 million.
The representatives of Uzbekistan's ICT complex carried out a comprehensive analysis of the implementation of the investment programme and reviewed export figures. They emphasized the need to further raise the responsibility of the executive officers for meeting the targets and increase the share of direct investments in the total volume of foreign investments in the sector.
Special attention was given to the efforts being given to the protection of copyright and intellectual property rights in the country. Meeting participants said the use of world best practices and cooperation with international organisations should be expanded.
Responsible officials were tasked to speed up the development of services provision in the sphere of ICT and polygraphy, small business and private enterprise, particularly to encourage the expansion of private entrepreneurship in the field of communication in rural areas.
Meeting also addressed the creation of additional conveniences for the population, the integration of new technology and the development of the system of accounts settlement based on plastic cards at the Aloka Bank. These efforts are intended to intensify and increase the scale of reforms in the banking and finance sphere.
Tasks were assigned to strengthen the executive discipline, to raise personal responsibility of the management of agencies of the complex, to develop the preparation and training of staff, and to ensure proper execution of the priority state programmes.
UZBEKISTAN OPEN TO COOPERATION WITH CHINESE BUSINESSMEN
An additional delegation of Chinese businessmen headed by the Minister of Finance of China Mr. Jin Renqing visited Uzbekistan on July 6-9.
The visit of the delegation of the People's Republic of China (PRC) illustrates the interest of the Chinese business circles in the expansion of mutually beneficial business contacts with Uzbek partners. Among the members of the delegation are the presidents of large companies, associations, corporations, heads of largest industrial enterprises of the electrical, construction, food, light industries, agricultural machinery building, and others.
According to the trade and economic agreement signed by Uzbekistan and the PRC in January 1992, the two countries have created most favourable for the development of bilateral cooperation. The PRC holds the leading position among Uzbekistan's trade partners. This visit was organised by the Chamber of Industry and Commerce of Uzbekistan for the purpose of further development of bilateral relations between Uzbek and Chinese entrepreneurs, and attraction of Chinese investments for the development of the production at small and private enterprises in Uzbekistan.
Currently 136 enterprises fully or partially based on Chinese capital operate on the territory of Uzbekistan (105 - joint ventures, 31 – foreign enterprises). They mainly operate in light industry, agricultural product processing, provision of services, and other spheres. Over 26 offices of Chinese companies are accredited in Uzbekistan.
Last year, the volume of bilateral trade totaled US$596.5 million. In January-May this year, trade between Uzbekistan and China comprised US$300.76 million (up 92% against the same period of 2006).
Within the frame of the visit, the delegation met with the managers of the largest enterprises and companies of Samarkand, Bukhara, and Tashkent. Presentations of the local enterprises' exporting and investment potential were made. The parties discussed the prospects of cooperation and further development of trade and economic relations.
On July 9, a business forum was held at InterContinental Hotel in Tashkent. Uzbek and Chinese businessmen discussed the prospects of cooperation, and the possibilities of attracting foreign investments for the establishment of joint ventures in Uzbekistan.
TASHKENT HOSTS MEETING ON OIL AND GAS TAXATION IN UZBEKISTAN
A meeting of the Expert Council of the Business Forum for Improving Fiscal Policy of the Chamber of Commerce and Industry of the Republic of Uzbekistan dedicated to the subject "Oil and Gas Taxation in Uzbekistan" was held on July 5 in Tashkent.
The resource extraction industry, which includes the oil and gas sector, is a priority in developing the Uzbek economy. The taxation system is an important factor determining development and competitiveness of extraction sectors.
Currently, 190 hydrocarbon deposits have been found in Uzbekistan. Majority of these deposits, particularly oil deposits, have low daily oil production indicators. Yet the existing extraction companies' taxation system, including general and specific taxes, does not take these factors into account and creates a high tax burden, which substantially increases when production factors worsen.
Many oil-producing countries encountered reduced oil production at high operating costs. Hence, creating a flexible and differentiated tax regime that can react to changes in economic and natural conditions of developing deposits is becoming ever more relevant.
Business Forum has been arranged in order to identify issues of taxing extraction companies and develop proposals aimed at increasing the taxation system's effectiveness through dialogue with representatives of government institutions and resource extracting companies, and through discussion of the UNDP Policy Paper titled "Improving Taxation System for Resource-Extraction Companies".
At the same time, Business Forum has set an objective to develop necessary preconditions for further tax reforms of resource-extracting companies.
The Chamber of Commerce and Industry of the Republic of Uzbekistan, the United Nations Development Programme "Public Finance Reform" and "Business Forum of Uzbekistan" Projects jointly hosted this event.
Ministry of Finance, State Tax Committee, and Chamber of Commerce and Industry officials, domestic oil and gas industry officials, and taxation and tax administration specialists participated in the Business Forum.
Issues related to taxing resource-extracting companies were discussed and general and specific taxes typical for the oil and gas sector were considered during the course of the event. Special focus was put on the following issues: tax administration, improving the resource extraction tax, the feasibility of differentiated rates or the introduction of a flat tax rate on resources, and coefficients used in differentiating these rates.
Hot debates unfolded during the discussion of squaring out taxation terms for foreign and local companies and abolishing benefits for foreign investors.
The exchange of opinions and ideas that took place during the event led to the development of specific recommendations and proposals for taxing resource-extraction companies, which will be reflected in the UNDP Policy Brief on Improving Taxation of Resource Extracting Companies.
UZBEKISTAN AIRWAYS CONDUCTS FIRST REGULAR PASSENGER FLIGHT TO CAIRO
Uzbekiston Havo Yollari (Uzbekistan Airways) National Airline Company has conducted the first regular passenger flight to Cairo (Egypt).
During President Karimov's official visit to the Arab Republic of Egypt in April this year, among the issues discussed was the activation of economic and humanitarian cooperation between the countries.
As a result of the talks between the Presidents of the two states, the negotiations of the official delegations of Uzbekistan and Egypt, and meetings of the Uzbek-Egyptian business forum important agreements were made and several documents were signed envisaging further expansion and intensification of bilateral relations.
The opening of direct flights between the two countries is intended to contribute to this process.
"The lack of regular passenger flights between Uzbekistan and Egypt to a certain degree hampered the development of fruitful and mutually beneficial cooperation," said Deputy Director-General of the Airline Company Javdat Ahmedov.
"That is why up until now to get from Tashkent to Cairo and from Cairo to Tashkent passengers had to travel to a third country, such as the United Arab Emirates, or Turkey, or even Russia. This of course held back the expansion of relations, particularly in the spheres such as tourism and business, both of which have a great development potential. Now, we have opened the shortest way for, for instance, tourists. Egyptians know a lot about the sights of our country, the monuments of Samarkand, Bukhara, Khiva, Tashkent. They are interested in the unique culture and history of the Uzbek nation, our customs and traditions. Uzbek citizens in turn are interested in Egyptian pyramids, and many would like to spend their vacations on wonderful resorts so popular among the tourists from different countries," he added.
SOCIETY
TASHKENT LAW INSTITUTE STUDENTS TRAIN ON LEGAL CLINICAL EDUCATION
Students of Tashkent State Institute of Law (TSIL) and its Legal Clinic participated in training on legal clinical education on July 5-6, supported by UNDP Country Office in Uzbekistan.
The training covered such issues as history of legal clinical education, competence of the legal clinic, work with clients and others. Students cemented newly obtained knowledge through role plays.
As it is known, legal clinical education provides opportunity to students to improve their skills through rendering legal services to population, who has no means to turn to legal firms. Currently, several legal clinics operate in Uzbekistan, which allows lawyer students to practice, while population receives free legal services.
The event was supported by UNDP's Project "Development of Capacities of the National Human Rights Institutions in Uzbekistan". The main objective of the project is to strengthen capacities of the national human rights institutions and relevant bodies to effectively fulfil their mandates for promotion and protection of human rights in Uzbekistan.
The project focuses primarily on activities relating to human rights matters that form part of the mandate and day-to-day work of operational national human rights institutions, which would consequently improve the promotion and protection of human rights.
Opening the training, Professor Mirzayusuf Rustambaev, Rector of TSIL and Senator of Oliy Majlis of Uzbekistan, underlined an importance of legal clinic education in context of judicial reform in Uzbekistan.
Gulnara Ishankhanova, head of Tashkent branch of Uzbekistan Bar Association, sharing this view said: "Students will have opportunity to meet people, who need legal aid, and help them to solve their problems."
UNDP in Uzbekistan has further plans to support Legal Clinic education in the country that will contribute to better access to justice and rule of law. Currently, UNDP supports Legal Clinic under the UWED through its project "Legal Aid and Legal Literacy for Better Access to Justice".
The main objectives of the project are to improve access to justice for people who cannot afford or have limited access to legal services, such as women, the poor, the elderly and people with disabilities and to increase quality of legal services through training of law students.
UNFPA SUPPORTS UZBEK HEALTH MINISTRY IN TRAINING MEDICAL WORKERS
On July 9-25 UNFPA in close cooperation with the Ministry of Health of Uzbekistan conduct training for trainers (ToT) on building up and upgrading skills of health care providers involved in Emergency Obstetric Care from Andijan, Jizzakh, Ferghana, Kashkadarya regions and Tashkent city.
The training course aims at discussing ways of improving the management of obstetrical urgencies and emergencies which may help standardize the skills of practicing maternity care providers and review the importance of utilizing regional maternity care services as well as identifying possible barriers which might limit access to them.
This ToT will help preparing a group of national trainers in building up and upgrading skills of health care providers involved in Emergency Obstetric Care. It is planned that upon completion of the TOT these trainers will be employed for delivering cascade training for health care providers in the province and potentially nationwide.
"Overall aim of this training programme is to enhance knowledge and procedural skills of health care professionals to help them manage obstetrical emergencies," commented Mr. Fuad Aliev, UNFPA Uzbekistan Assistant representative. "We believe that this activity is a significant contribution in the efforts of the Ministry of Health on further improving maternal health in the country."