July 20, 2007

Economics:
IDB President sends thank you letter to President Karimov
Uzbek government sums up country's socio-economic development in 1H 2007
Uzbek-Afghan intergovernmental commission meets in Tashkent
Uzbekistan Airways reviews performance in 1H 2007
Society:
Over 60,000 graduates receive university diplomas in Uzbekistan
A.Kakhkhar’s House Museum To Be Renovated, Its Displays To Be Enriched
Uzbeks At Asian Cup Overcome Chinese, Move Onto Next Stage
Uzbek Boxers Travel To Ukraine, Demolish Rivals, Earn Medals
Lepchenko won Citibank Challenger Cup in Boston
Kurash Presented In African Continent


ECONOMICS

IDB PRESIDENT SENDS THANK YOU LETTER TO PRESIDENT KARIMOV

Earlier this month the delegation of the Islamic Development Bank (IDB) led by Dr. Ahmad Muhammad Ali, the IDB President, and Arab Coordination Group visited Uzbekistan. Upon his return to his home country, Dr. Ahmad Muhammad Ali sent a thank you message to the President of Uzbekistan Islam Karimov "for the hospitality" shown during the stay in Uzbekistan, Jahon reported.

"I am happy to extend Your Excellency my felicitations in view of the enormous successes in social and economic spheres in the Republic of Uzbekistan achieved under your wise leadership. Islamic Development Bank and the members of the Arab Coordination Group are rightly proud of the establishment of solid cooperation with the Republic of Uzbekistan. At the same time, we are very glad that the ancient city of Tashkent has been announced the capital of Islamic culture in 2007", the letter read.

While dwelling on the state of relations between Uzbekistan and this prestigious Islamic financial institution the IDB President further wrote that the "Islamic Development Bank further stands ready to strengthen cooperation with the government of the Republic of Uzbekistan and resolutely supports the ongoing large-scale economic reforms".

"We highly assess your acts for the sake of flourishing of Uzbekistan and prosperity of its people with a great heritage and centuries-old values. Islamic Development Bank considers Uzbekistan a true and reliable partner, and manifests its readiness to further extend the cooperation," Dr. Ahmad Muhammad Ali further wrote, while sincerely thanking the Uzbek leader for the fruitful talks in Tashkent.

UZBEK GOVERNMENT SUMS UP COUNTRY'S SOCIO-ECONOMIC DEVELOPMENT IN 1H 2007

The results of the country's socio-economic development in first half of this year were summed up during the Government meeting on July 18, 2007. Prime Minister of Uzbekistan Shavkat Mirziyoyev presided at the meeting.

The measures implemented to meet the priority objectives of the socio-economic policy for 2007 outlined by President Karimov during the Government meeting on February 12, 2007 secured stably high rates of economic growth, dynamic development of various sectors of the economy and different territories of the country.

Thus, it was noted, the GDP growth rate for the reporting period made up 9.7%, including the growth of industrial production of 11.6%, consumer goods production – 19%, contract construction works – 20.5%, retail trade – 16.8%, paid services – 25.1%, and agriculture – 5.5%. The exports volume grew by 39%, of which 70% was the export of non-primary goods. The balance of trade was positive, with trade surplus of US$1.7 billion. In the reporting period, Uzbekistan had a budget surplus of 1.9% of the GDP. Inflation rate did not exceed the forecasts and made up 2.7%.

The appropriation of investments saw high growth rates – 140.2% of the figure for the first half of the previous year. The inflow of foreign investments increased 1.9 times, of which about 85% were direct investments. Launched were 154 new large and small production enterprises, including 30 objects in the light and textile industry. Also, 102 kilometers of transmission facilities were installed, and the construction of the railroad connecting Tashguzar, Boysun and Kumkurgan is nearly completed. The opening of communication on the route is planned for September this year.

Large-scale modernization of the economy, technical and technological renewal of its important industries was carried on. Nearly a half of the total volume of capital investments was made to support in the abovementioned aims, including the projects run at the enterprises' own expense – 65%. The programmes of modernization, technical and technological re-equipment of cotton processing, fat-and-oil industries, construction materials production and ferrous metallurgy are in the process of implementation.

As a result of strict compliance with the earlier made decisions on legal protection and support of enterprise, reduction of the tax burden on small businesses and liberalization of the conditions for their operation, the contribution of the small businesses to GDP grew to 38.1%.

In the agricultural sector, the process of reofganization of shirkats (collective farms) into farms is nearly completed. In the reporting period, the production of grain and cereal crops, potatoes, other vegetables, melons and gourds, meat and pods grew.

Measures were taken to raise the level of population's employment and income. As a result, some 314,800 new jobs were created, including over 75,000 – in the services sector, and 40,200 – in the sector of home-based labour. The population's real income grew by 21.3%.

Within the frame of the "Year of Social Protection" State Programme, allowances were issued to 440,000 unemployed mothers caring for children under the age of two, as well as 880,000 needy families with several children under the age of 18. Financial assistance was provided to 44,000 needy families, and 28,500 low-income families and families with several children were granted cattle. Also, 2,049 jobs were created for people with disabilities. Young families were issued loans for some 20.4 billion soums, including preferential micro-credits for business start-up purposes for over 10.6 billion soums.

The reports of the Minister of Economy Botir Hojaev, Acting Minister of Labour and Social Protection of the Population Aktam Haitov, Deputy Minister of Foreign Economic Relations, Investment and Trade Akmal Kamalov, khokims of Andijan and Kashkadarya regions, as well as heads of a number of large shareholding companies and banks of Uzbekistan contained a critical analysis of the efficiency of measures being taken to achieve the macroeconomic targets set for the period and complex programmes on development of industries and sectors of the economy. Attention was paid to the lack of measures on the development of the services sphere, creation of the necessary conditions for the intensification of development of agricultural firms to specialize in the processing of fruit and vegetable products, as well as the attraction of investors to the projects on creation of additional capacities in production of cement and other construction materials. Critical analysis was conducted on the issue of timely appropriation of funds from the Fund to Assist Employment for the financing of objects in the services sphere.

Meeting participants agreed that the shortcomings should be eliminated in the shortest period possible to ensure complete execution of the priority tasks and complex development programmes in accordance with the policy defined for 2007.

The Government meeting also addressed the progress on the Investment Programme of the Republic of Uzbekistan and completion of tasks on construction and reconstruction of motor roads planned for 2007 within the frame of the Motor Road Development Concept. Among those who spoke on this issue were First Deputy Minister of Economy G. Saidov, the Chairman of the Uzbekneftegaz (Uzbek Oil and Gas) National Holding Company N. Ahmedov, Minister of Public Education T. JUraev, khokim (mayor) of Surkhandarya region A. Eshmuradov, the Chairman of the Board of Uzbekyengilsanoat (Uzbekistan Light Industry) State Company R. Rizikulov, the Chairman of the UzAvtoYol (Uzbekistan Motor Roads) State Company M. Abdullaev, and the Director of the Republican Road Fund N. Julibekov. Their reports contained critical analysis of the interim results of the investment projects, construction and reconstruction of motor roads, and specific tasks for timely and unconditional commissioning of objects.

Another issue discussed at the meeting concerned the intensification and expansion of the scale of reforms in the banking and finance system, provision for availability of cash for withdrawals from deposits, and reduction of the off-bank circulation of cash. Reports were delivered by the Chairman of the Central Bank F. Mullajanov, the Chairmen of the National Bank of Uzbekistan for Foreign Economic Activity S. Rahimov, of the Asaka Bank K. Aripov, of the Ipoteka Bank A. Abdullaev, and the khokim of Ferghana region A. Abdullaev.

The attention of the heads of commercial banks was turned to the need to activate the efforts of the banks to raise the institutions' capitalization, expand their participation in the investment processes and financing of projects on modernization, technical and technological re-equipment of the key sectors of the economy as stressed by the President in the Resolution "On the measure to further raise the capitalization of banks and activate their participation in investment process on modernization of the economy".

A common line stressed in the speeches of the Prime Minister Kasymov, heads of the Ministry of Healthcare F. Nazirov, Ministry of Labour and Social Protection of the Population B. Alimuhamedov, khokims (mayors) of the regions is the need to take additional measures to fully and efficiently perform the "Year of Social Protection" State Programme.

Minister of Agriculture and Water Management S. Ismailov and regional khokims reported on the performance of the complex of measures to raise the output of cotton. They also outlined the immediate plan of actions, specifically stressing the need to speed up the development and submission of the programmes on improvement of the land-reclamation in 2008-2012, as well as efficient use of water resources in all regions and sectors of economy.

Meeting participants then agreed on further actions within the frame of the priority economic reforms outlined by the President during the meeting on February 12, 2007.

UZBEK-AFGHAN INTERGOVERNMENTAL COMMISSION MEETS IN TASHKENT

Uzbek-Afghan Intergovernmental Commission for Trade-Economic and Scientific-Technical Cooperation held a meeting on July 12 in Tashkent. The delegation of Afghan businessmen headed by the Minister of Commerce and Industry Mir Amin Muhammad Farkhang arrived in Tashkent to participate in the meeting.

The representatives of a number of ministries, agencies, and companies of the energy sector, finance and banking industry, agriculture and water management, transportation and communication, and tourism attended the meeting.

The Co-chairman of the Commission, Vice Premier of Uzbekistan N. Khanov said Uzbekistan was strongly interested in expanding trade and economic cooperation with Afghanistan.

He emphasized that Afghanistan was one of Uzbekistan's important partners, and cooperation between the countries was developing in the areas of trade, economy, social, cultural, and humanitarian spheres, as well as the oil and gas and energy sectors. The legal framework for bilateral relations is provided by the agreements signed during the meetings of the leaders of the two countries.

Cooperation in electrical power sector, road and bridge building holds an important place in Uzbek-Afghan bilateral ties. Uzbekistan is now considering the possibilities of increasing the supply of electric power to Afghanistan, UzA reported.

The head of the delegation, Co-chairman of the Joint Commission Mir Amin Muhammad Farhang expressed his satisfaction about the fact that cooperation built on friendship, mutual respect, trust and interest has been gradually developing in political, trade, economic, social and cultural spheres, and the fact that Uzbekistan has been taking an active part in recovery projects in Afghanistan.

"Having arrived with a visit to Uzbekistan, we would like to once again consider the possibities of further expansion and strengthening of cooperation in the spheres of energy, science, transit, transportation and communication," Afghan Minister said. "We support the development and implementation of mutually beneficial projects."

There is a great potential to further develop Uzbek-Afghan trade relations. In January-May 2007 the volume of trade between the two countries grew by 55.2% compared to the same period last year. Uzbekistan supplies Afghanistan agricultural products, foodstuffs, construction services, etc.

During the meeting the parties exchanged views on the economic potential of Uzbekistan and Afghanistan, discussed the prospects of cooperation in specific sectors of the economy. They also addressed the issues concerning the participation of Uzbek companies in the projects on the recovery of social infrastructure of Afghanistan, improvement of the qualifications and skills of Afghan specialists at higher educational institutions of Uzbekistan, expansion of cooperation in the field of automobile and railroad transportation, and telecommunication.

Within the frame of the meeting, a cooperation exchange was held between the companies of Uzbekistan and the representatives of business circles of Afghanistan. Participants discussed the opening of direct air communication between Kabul and Tashkent, establishment of cooperation in the banking business, oil and gas industry, construction materials production, tourism, trade in foodstuffs, fruit and vegetables, electric equipment, metal and metal ware.

The same day the members of Afghan delegation visited the State Museum of History of Temurids. They have also visited the Khazrati Imam Complex in Tashkent. The guests highly appraised the development work conducted at the complex on the initiative of President Karimov. It was noted that the reconstruction of the complex was the result of the large-scale work on the recovery of national values, preservation and popularization of the Uzbek heritage.

"I had visited Uzbekistan eight years ago," Mir Amin Mohammad Farhang said. "I now see the enormous work carried out within this relatively short period of time. We were very pleased to learn that the ISESCO pronounced Tashkent as the capital of Islamic culture in 2007. This is the result of a wise policy of the head of Uzbekistan, aimed at the recovery and preservation of the spiritual heritage of the ancestors for the future generations."

UZBEKISTAN AIRWAYS REVIEWS PERFORMANCE IN 1H 2007

Coming to the 21st century world civil aviation grew into a huge industry – its network covered the globe like a spider's web. Today over 750 airline companies operate in CIS alone.

Not to get lost, to find a niche in the world of aviation, to withstand tough competition is not a simple task. Uzbekiston Havo Yullari (Uzbekistan Airways) National Airline Company has been successfully overcoming the difficulties and obstacles for 15 years.

This year is special for the national airline company of Uzbekistan, not only because it is an anniversary year. In May-June, the company signed orders two Dreamliners with Boeing Corporation, and for six A320s with Airbus Industry. A step has been taken within the frame of the programme on unification of the aircraft fleet of the company. Along from the western aircrafts, however, the company also intends to rely on IL-114-100 airplanes.

"The exploitation of the fuel-efficient aircrafts, high level of safety and the regularity of flights, increasing volume of transportation, clear performance of the obligations to the passengers and business partners – all these factors contribute to the Uzbek company's advancement in the world market," said at a press briefing Director-General of Uzbekistan Airways Valeriy Tyan. "Thanks to the support of the Government and personally President Karimov, Uzbekistan Airways has implemented substantial reforms in the industry, and took it to the quality new level. Moreover, it has modernized airports in the capital of Uzbekistan, Tashkent city, and tourist centres – Samarkand, Bukhara and Urgench, after which they received the status of international airports. An important element of the modern civil aviation of the country is full modernization of the system of air traffic navigation, allowing to control the air space of Uzbekistan from the centre in Tashkent. Also, a strategic step was the establishment of the Technical Service Centre for the western aircrafts, which allowed reducing foreign currency expenses and increasing the export potential of the company."

Today the company offers its clients a wide range of internal routes to all large cities of Uzbekistan and over 40 international destinations. The Company aims at constant improvement of its activity, and strives to learn from the world best practices, while being cost-effective, efficient, competitive and technically advanced company. The company's press service said in the first six months of the year, Uzbekistan Airways conducted 11,069 flights – 409 more flights than in first half of 2006. In total 878,643 passengers were transported. The commercial utilisation in general increased by 6.9 points, and the occupancy of seats by 7.2 points. Passenger conveyance has grown by 16% and cargo conveyance – by 19.4%. This growth is largely the result of the optimization of flight schedule planning, improvements in the flight safety, promotion, improvements in service, and other factors.

The company continues to work on opening new destinations around the world. Thus, in the first half of 2007, the company opened regular flights to Sochi and Cairo. The frequency of flights to New York was increased to twice a week, to Tel-Aviv –to four times a week, to Bangkok – to five times, to Bishkek – to four times, and to Saint Petersburg – to three times. Flights from Samarkand to Saint Petersburg and Moscow were also made more frequent – three times a week. A new flight was opened from Termez to Moscow. The company is now considering increasing the frequency of flights en route Tashkent-Ashhabad and Tashkent-Kiev to twice a week, Tashkent-Simferopol – four times a week. The first flight from Tashkent to Milan (Italy) is scheduled for July 20.

Indicators have also improved in the irregular flights schedule of the airline company. In the past six months, the total of 342 such flights were conducted (up by 83, or 32% against 1H 2006). Cargo transportation totaled 2,000 tonnes, which also exceeds the previous year's results (by 1,100 tonne).

The company has also increase the number of charter flights. In the first half of this year, it conducted 161 charter flights (up by 30).

In response to the request of the Committee for Religion Affairs of Uzbekistan and the offices of Uzbekistan Airways abroad, the company fulfilled the special passenger transportation programme Hajj-2007. In line with the programme the company conducted 50 flights to Medina and Jeddah. In total it has transported 5,000 pilgrims.


SOCIETY

OVER 60,000 GRADUATES RECEIVE UNIVERSITY DIPLOMAS IN UZBEKISTAN

This year more than 60,000 young men and women are reported to have graduated from the higher educational institutions in Uzbekistan. The graduates are now receiving the diplomas of bachelor's and master's degrees, Jahon quoted Narodnoye Slovo.

For example, over 1,800 young men and women have earned their bachelor's, while 556 – their master's at the Tashkent State Technical University. They have majored in such areas as economics, oil and gas sector, electronics and automatics, radio technology, and other.

Many of them had combined their studies with a science activity at the "lesser academy", where they had been led by titans and renowned scientists in their endeavors to get used to a complex, but at the same time very interesting research work, the newspaper report further said.

The diplomas were presented in a special ceremony, as has been case at other universities and institutes with participation of teaching faculty, famous scientists, as well as parents.

The graduates of the Namangan Engineering and Economics Institute, one of the leading educational institutions in Ferghana Valley, radiated with joy and happiness of getting the much-awaited diplomas of graduation. Six hundred and seventy-three students are reported to have earned their bachelor's and master's degrees in management, accounting, finances, and other.

Similar ceremonies are now taking place at all 64 higher educational institutions nationwide, according to the newspaper.

A.KAKHKHAR’S HOUSE MUSEUM TO BE RENOVATED, ITS DISPLAYS TO BE ENRICHED

Uzbekistan pays a special attention to the development of the national culture, literature and arts. Preserving the unique spiritual heritage of the Uzbek nation, delivering to the masses especially, to the representatives of the young generation is considered to be of a significant importance for the country.

The Decree by the President of the Republic of Uzbekistan “On celebrating the 100th anniversary of Abdulla Kakhkhar” of January 8 this year can serve as a bright evidence of such profound attention, the report by Uzbekistan National News Agency has said.

The document envisages enriching the exposition of the writer’s house-museum and renovating its building. The restoration works are on full swing these days.

According to Ms. Nodira Jalolova, the director of Abdulla Kakhkhar’s house-museum, the number of displays at the museum exceeds more than 4,500 items. They include personal stuff, manuscripts, photos, historical documents related to the writer’s life and activity.

It is expected that the books of the modern authors, as well as magazines, which were published in the 20s and were dedicated to the writer, a number of photo albums will be added to the enriched exhibition.

Within the framework of celebrations the new website http://www.qahhor.edunet.uz has been launched. The web surfers can find there all the necessary information about the writer’s life, his works and meetings, held in his honor.

UZBEKS AT ASIAN CUP OVERCOME CHINESE, MOVE ONTO NEXT STAGE

The national football team of Uzbekistan, which is currently in the Group “C” of the Asian Cup football tournament, held its last match of the tour against the Chinese national team to pass onto the quarter finals of the Asian Cup and embraced a vital victory, the agencies reported July 18.

The first half of the standoff saw several dangerous moments for both goalkeepers – of Uzbeks and Chinese. Finally, at the 70th minute of the match the captain of the Uzbeks’ Maxim Shatskikh scored a fine first goal – 1:0.

Then Temur Kopadze and Alexander Geinrikh, who had done well at several near-goal-moments, scored next two goals thus bringing the scoreboard at 3 to nothing.

Thus, the Uzbek national team secured the second place in its group and moved onto the next stage. On July 22 in Jakarta in Indonesia the national team is schedules to face the one of Saudi Arabia, according to reports.

UZBEK BOXERS TRAVEL TO UKRAINE, DEMOLISH RIVALS, EARN MEDALS

The International traditional tournament on boxing in the Ukrainian city of Mariupol is reported to have hosted sportsmen from Uzbekistan, Israel, Ireland, Azerbaijan, Russia, Turkey and Philippines, according to local agencies.

The Uzbek boxers Tulashboy Daniyarov and Dilshod Makhmudov in their weight categories had demolished other strongmen and earned gold medals. Abdugafur Umarov, Bakhodir Mamajanov and Sherzod Abdurakhmonov secured silver medals. Another Uzbek sportsman Olimjon Nazarov was awarded bronze.

In overall team result Uzbekistan earned the second place, the reports have added.

LEPCHENKO WON CITIBANK CHALLENGER CUP IN BOSTON

The winner and the runner-up were lined up on the court for a postmatch picture, holding glass trophy vases and smiling for a photographer, when champion Varvara Lepchenko jumped out of the picture, ran to her equipment bag, and pulled out a small camera. She handed it to runner-up Kelly Liggan`s coach, Bill Belser, who obliged and snapped some souvenirs for the 21-year-old from Uzbekistan.

The greater tennis world keeps track of what goes on in the United States Tennis Association pro circuit, a proving ground for players from around the world, and both finalists will move up when the weekly world rankings are released today.

Lepchenko and Liggan each plowed through four matches to reach the final of the Citibank 50,000 USD Challenger Event at the Sportsmen`s Tennis Club in Dorchester. The top-seeded Lepchenko, a 5-foot-11-inch lefthander with a dangerous spin on her shots, did not lose a set, dropping more points to herself with moments of distraction than to her intimidated opponents. The unseeded Liggan, a 28-year-old Irishwoman who got a late start in competitive tennis, was pushed to a third set in the quarterfinals and semis and was playing her first final at the K level. She was not intimidated but she was, ultimately, overwhelmed.

Lepchenko dominated the first set, but suffered one of her lapses in the second. Liggan clambered back and took the set even as Lepchenko was running her ragged. But when Liggan hurt her left knee stretching for a return of serve in the third set, she needed a medical timeout. She returned to play one more game before conceding the title to Lepchenko, 6-4, 4-6, 5-0 retired.

Their histories informed their expectations, as Lepchenko, No. 2 in prize money last year on this circuit, expected to win the match, even when she lost focus and dropped the second set. Liggan didn`t expect anything. She never has.

"I was still better, I knew from the beginning I would be winning," said Lepchenko, who has been ranked as high as 84th in the world, and sits at 130 before today`s new rankings.

Despite the strong noontime sun, swirling wind gusts dipped onto the court with inconsistent frequency, and judging the effect was difficult. Lepchenko used an abbreviated toss on her serve, bringing her arm in front of her as she took the racket up, and then punched a low serve. "It was very hard to adjust to the wind," said Lepchenko. "I kept trying. In the first, I was all right, and then the wind got bigger."

KURASH PRESENTED IN AFRICAN CONTINENT

In Uzbekistan under the leadership of President Islam Karimov along with all types of sports a profound attention is now paid to the development of Kurash. A number of fans of Kurash has been on the rise around the world day by day, according to the report by Uzbekistan National News Agency.

According to the press service of the International Kurash Association, presentation of Kurash has been held in Algiers in the African Games.

More than 40 representatives of the Olympics Committee and citizens of the country have participated in it. The wrestlers from a number of states of the African continent got acquainted with the rules, techniques and tactics of Kurash. Then film “Kurash” which told about the homeland of Kurash – Uzbekistan was demonstrated to the participants of the event.

The International Kurash Association rewarded the president of the African Olympic Association and honorable president of the African confederation of Kurash Lasanno Palenfo a gold order for his worthy contribution to the development of this type of sports at the continent.