20 April, 2006

Content:
Politics
Uzbek president receives British politician
CIS to hold exercises on unified air defense system on Tuesday
Eurasian financial watchdog meets Uzbek officials

Economics
Uzbek head signs resolution to boost service sector
In the first quarter of 2006 Uzbekistan had trade surplus for $ 387.1 million
Council of Ministers of Karakalpakstan discuss development of silk industry
UzDaewoo Auto sells 15,273 cars in Russia in 1 quarter 2006, plans produce new model
Uzbek oil and gas exhibition marks its 10th anniversary this year
Commission for Small Business and Private Enterprise Development meets
EASA approves right of UAT to maintenance of western aircrafts
NBU among top 20 banks of CIS

Society
Raising quality of education – among priority tasks in Uzbekistan
Premier Hall to show Russian fantasy films shot by Aleksandr Rou


POLITICS

UZBEK PRESIDENT RECEIVES BRITISH POLITICIAN

President of Uzbekistan Islam Karimov received a representative of the Conservative Party of Great Britain, Lord Robert Salisbury at the Oqsaroy presidential residence on 18 April. Lord Salisbury is a known political figure.

The representative of the Conservative Party of Great Britain, famous politician Lord Robert Salisbury has held various posts in the government for many years. He arrived in Uzbekistan on 10 April and had an opportunity to become directly acquainted with large-scale reforms in the political, social and economic fields, with constructive work being carried out in the country, and with the rich historical heritage of Uzbekistan. Greeting the guest, President Islam Karimov expressed his confidence that Lord Salisbury, during his trip around Uzbekistan, had gained objective information about reforms taking place in the country.

Briton politician tour was very busy and included learning the activities of the Senate and the Legislative Chamber of the Oliy Majlis of Uzbekistan, becoming acquainted with leading educational and cultural centres, and visiting major industrial sectors and joint ventures in the regions of Uzbekistan.

Lord also visited enterprises in Andijan, Navoi and Bukhara regions, as well as ancient cultural monuments and museums in Tashkent, Samarkand, Bukhara and Khiva.

A number of issues of mutual interest were discussed during the conversation between the Uzbek head and British politician.


CIS TO HOLD EXERCISES ON UNIFIED AIR DEFENSE SYSTEM

The Commonwealth of Independent States (CIS) will stage military exercises on an unified air defense system on April 25.

"The exercises are on the plan approved by the Council of CIS Defense Ministers," the press service of the Air Force was quoted by the Rosbalt as saying.

The exercises will involve air force and air defense units of eight CIS member states, namely Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan and Ukraine.

"About 70 aircraft - MiG-31, Su-24, Su-25, Su-27, A-50 airborne radar systems, strategic aircraft, and Mi-8 and Mi-24 helicopters - will be engaged in the exercises," the press service said.


EURASIAN FINANCIAL WATCHDOG MEETS UZBEK OFFICIALS

A delegation of the Eurasian group for countering legalization of criminal income and financing of terrorism led by its chairman Viktor Zubkov is visiting Uzbekistan.

Zubkov also heads the Federal Service for Financial Monitoring of the Russian Federation. The delegation visited the Legislative Chamber (lower house) of Oliy Majlis of Uzbekistan and a number of ministries.

Speaker of lower house of parliament Erkin Khalilov said that relations between the two countries in combating present-day threats and resolving relevant problems had expanded of late.

He also noted the importance for both countries to jointly cooperate in resolving issues related to legislation and international law. Uzbekistan has extensive experience in this field.

In his turn, Viktor Zubkov said that the law against money laundering and funding of terrorism had been adopted in Russia as well. He said that the law was producing good results.

Zubkov said the law adopted in Uzbekistan is very efficient. It would be good if any other country had a similar law. This would be an achievement for any country.

During the talks, the sides concluded that the joint struggle against the threats was the requirement of time.

The delegation met Prosecutor-General of Uzbekistan Rashid Qodirov. Qodirov said the institution for countering legalization of criminal income is coming into being in CIS countries. The issue of setting up a national system for countering these kinds of illegal activities is also topical for Uzbekistan.

The delegation familiarized with Prosecutor-General's office and work of Department on fight against tax and currency crimes, initiated by Uzbek president in 2001. The department operates under Prosecutor-General's office.

On the same day, chairman of Eurasian group met the chairman of Uzbek Central Bank Fayzullo Mullojonov. The sides considered issues on joint development and implementation of measures to fight legalization of criminal income and financing of terrorism through banking system.

The delegation also held negotiations with representatives of Uzbek Justice Ministry. Federal Service for Financial Monitoring of the Russian Federation founded the Eurasian group for countering legalization of criminal income and financing of terrorism in October 2004 and Uzbekistan has joined the Eurasian group in December 2005.


ECONOMICS

UZBEK HEAD SIGNS RESOLUTION TO BOOST SERVICE SECTOR

During the past several years consistent measures have been taken to develop the service sphere. Improvements are observed in the structure of the services market, with new prospective forms of banking and finance, insurance, ICT, and other services introduced. The expansion of these services was also supported by the increase of families' use of modern household technology, computers and personal vehicles.

However, certain shortcomings in the development of the services market still exist. The market's potential to increase employment rate, raise population's income as well as enrich local budgets is not being fully utilized.

In the developed countries, the share of services in the country's GDP makes up around 60-80%. Nearly 70% of all employed people work in this sphere, and 50-60% of consumer spending goes for services. In Uzbekistan the latter indicator slightly exceeds 10%.

A Resolution of the President of the Republic of Uzbekistan was passed on 17 April 2006 in order to create favourable conditions for the faster development of the services sphere, increase of its share in the country's GDP, increase in the number of people employed in the sphere and growth of population's income on this basis.

The Resolution sets objectives for the development of services sphere in Uzbekistan, including creation of favourable conditions for further expansion of enterprise initiative in the services sphere, remove all bureaucratic barriers, increase the volume of services provided, and raise its share in the country's GDP up to 49% by 2010 and increase the number of people employed in services sphere 1.6 times in 2006-2010.

The document will also focus on further increase the volumes and forms of services provided to residents of rural areas and along with traditional, develop innovative forms of services, raise the level and quality of services provided by domestic companies in the international market and raise export volumes and provide all-round support to the development of specialists employed in the sphere.

The Resolution approves the parameters and measures outlined in the Programme of Services Sphere Development for 2006-2010, and puts the Cabinet of Ministers in charge of the monitoring of the programme implementation by the heads of ministries, departments, khokimiyats of regions and the capital, as well as Chairman of the Ministerial Council of Karakalpakstan.

The document requires the development of the industry-specific programmes of services sphere development for the years 2006-2010. The work is to be performed by the state and economic management bodies in cooperation with the Ministry of Economy and Ministry of Finance.

Ministerial Council of Karakalpakstan, regional, city and district khokimiats are to adopt territorial programmes for 2006-2010 on the development of services sphere and provision of high quality services to the population in the rural areas, envisioning the creation of all the conditions necessary to expand traditional and develop new forms of services.

The Resolution finds the development of specialists in the sphere as unsatisfactory and not corresponding to the modern level and fast-increasing requirements to the development of services sphere. In view of this, it puts the Ministry of Higher and Secondary Specialized Education in charge of developing recommendations on improving the education process of services sphere specialists and submitting them to the higher educational facilities and professional colleges within one-month period.

The Ministry of Economy and State Statistics Committee were entrusted to develop the programme on improvement of the methodology of statistical record-keeping, particularly for certain industries, taking into account regional specificities of population's employment and the system of statistical data collection in the sphere of services.

Together with the UzStandard Agency they are to approve the classifier of services by the types of activity developed in compliance with the international standards of State Statistics and to implement it in practice.

The resolution also exempts legal entities providing services listed in the attached appendix from the income tax and single tax payment.

State Tax Committee was entrusted to exert strict control over the application of this tax benefit.

Prime Minister of the Republic of Uzbekistan Sh. Mirziyoyev was put in charge of the control over the implementation of the resolution.


IN THE FIRST QUARTER OF 2006 UZBEKISTAN HAD TRADE SURPLUS FOR $ 387.1 MILLION

The Cabinet of Ministers of Uzbekistan had a meeting to analyze the economic indicators of the first quarter of 2006. The Prime Minister of Uzbekistan Shavkat Mirziyoyev presided the meeting.

Comparing the first quarter of 2005, GDP of Uzbekistan has increased for 3.6 percents. The value of produced goods and services provided has increased for 6.8 percents. The increase of production in agriculture was equal to 4.5 percents. Increases in construction and transport, communications were 3.6 and 7.3 percent accordingly. External trade surplus amounted $ 387.1 million.

324 out of 484 restructured enterprises and companies improved their financial indicators. Shares of 208 enterprises have been sold to private entities and 142 of them became entirely private.

The amount of capital investments totaled 615.6 billion sums, 67 percent of that was amount was invested in production sectors. Foreign credits and investments totaled $ 86.9 million, the amount of direct investments was $ 57.1 million.


COUNCIL OF MINISTERS OF KARAKALPAKSTAN DISCUSS DEVELOPMENT OF SILK INDUSTRY

Council of Ministers of Karakalpakstan held a meeting to discuss development of silk industry in Aral Sea Basin.

Representatives of district, heads of silk enterprises and specialists of the sphere participated in the event.

The session discussed perspectives and development of industry. The participants noted necessity to strengthen feeding base and increase of mulberry plants and stimulation of labour of silk-breeders.


UZDAEWOO AUTO SELLS 15,273 CARS IN RUSSIA IN 1 QUARTER, PLANS PRODUCE NEW MODEL

UzDaewoo Auto sold 15,273 cars in Russia in the first quarter of 2006 against 15,199 cars in the same period of 2005.

The Uzbek car make is the fourth among top 5 car sellers in Russia after Hyundai, Chevrolet and Ford, autonews.ru reported on 17 April. The report also said that the Uzbek car marker will produce re-styled version of Daewoo Nexia in September 2006.

Queen Group, official distributor of UzDaewoo Auto in Russia, said the European Concept Group is working on design of car. The volume of investments comprises US$10 million in the first stage of the project.

The price of the modernized Nexia will not widely differ from the price of the existing model. External appearance and saloon of the car will be changed. The new model will get new bumpers and headlights, etc.

It is expected that new model will have 16-valve engine with 86 horse powers.


UZBEK OIL AND GAS EXHIBITION MARKS ITS 10TH ANNIVERSARY THIS YEAR

International exhibition and conference Oil and Gas Uzbekistan (OGU-2006), largest event of oil and gas sector of Uzbekistan, will mark its 10th anniversary.

The jubilee exhibition will be held on 16-18 May in Tashkent at Central Pavilion o Uzexpocentre. ITE Group Plc of Great Britain and ITE Uzbekistan are organsers of the event.

Uzbek exhibition is part of series of specialized events, organized by ITE Group Plc in various oil and gas exporter countries, including MIOGE in Moscow, KIOGE in Almaty, TUROGE in Turkey and others.

The exhibition is organised at the support of Uzbekneftegaz national holding company, Tashkent city administration and Chamber of Commerce and Industry of Uzbekistan. Over 700 companies from 35 countries participated in the exhibition since its establishment and over 50,000 people visited it. The exhibition demonstrates achievements of local and foreign companies in oil and gas sector.

This year, the exhibition will be attended by over 120 companies from 15 countries, including Germany, Iran, Kazakhstan, China, Russia, USA, Turkey, Ukraine and others. It is expected that over 800 official delegates will participate in the conference. According to forecasts, over 10,000 people will visit the exhibition this year. The area of the exhibition expands by 30% this year compared to previous year. ITE Uzbekistan said the share of Russian companies make up 40% from total number of participants or increases by 15% compared to last year's exhibition.

The significant place in the expositions will be allocated to modern technologies on intensification of oil and gas mining and processes, as well as use of alternative sources of energy.

Within the exhibition, the conference entitled "Silk Road in 21st century: role of oil and gas sector in integration of Central Asia states" will be held at InterContinental Hotel.


COMMISSION FOR SMALL BUSINESS AND PRIVATE ENTERPRISE DEVELOPMENT MEETS

The meeting of the Commission for Small Business and Private Enterprise Development was held on 12 April at Tashkent City Department of the Chamber of Commerce and Industry of Uzbekistan.

The meeting was dedicated to the problems entrepreneurs face when dealing with the financial and banking facilities, as well as issues relating to the development of the wholesale and retail trade system development aiming at creation of favourable conditions for the activity of enterprise entities, both legal entities and individual entrepreneurs. Also, the candidate of economic sciences S. A. Voronin made a presentation on the "Factors of formation of balanced prices in the production segment of the economy". The aim of the report is to demonstrate the negative aspects of the mechanisms of regulating price-formation and to suggest on the possible ways of their improvement.

In order to establish constructive and continuous dialogue between the state bodies, representatives of private sector and international financial institutions, the Chamber of Commerce and Industry created nine business-forum commissions intended to serve as an effective mechanism of joint elaboration of recommendations on improvement of the economic legislation, formation of favourable investment and business climate, and expansion of opportunities to attract foreign investments and develop private sector of the country.

Commissions were created in the following key areas: small and private enterprise development; intensification of denationalization and privatization processes and activation of stock market; improvement of banking and finance sector; improvement of the system for coordination of the controlling bodies' activity; development of export and stimulation of foreign investments; simplification of the procedures entrepreneurial structures' access to raw materials; improvement of fiscal policy; development of information technology and entrepreneurs access to information resources; improvement of the system of preparation and improvement of private sector specialists' professional skills.

In line with the approved schedule, organizational meetings of the corresponding commissions were held, their membership ascertained, working secretariats formed. Over 400 people participated in the early meetings of the commissions, including representatives government (39) and business management (15), private sector (140), diplomatic corps (43), international organisations (59), banks (20) and mass media (24).

At this time, commissions are functioning on constant basis, and their activity is coordinated by the corresponding secretariats consisting of the representatives of both state and non-government sectors.

EASA APPROVES RIGHT OF UAT TO MAINTENANCE OF WESTERN AIRCRAFTS

The European Aviation Safety Agency (EASA) approved right of Uzbekistan Airways Technics for linear and base maintenance service of all series of A-310 and Boeing 757/767 aircrafts.

Uzbekistan Airways Technics (UAT) received the termless certificate of EASA, which confirms the right on linear and base maintenance service of A-310 and Boeing 757/767 aircrafts.

Uzbekistan Airways Technics also carries out the maintenance of plane components. This perspective and intensively mastered direction includes repair of wheels, brakes, windows, and electric equipment, power elements of airframe and elements made from composite materials.

The right of Uzbekistan Airways Technics on aircraft inspection by six various methods of NDT is also approved. Up to date, EASA gave to Uzbek company the certificate for a year and later for two years. This year, the European agency issued termless certificate, which testifies high professional level of Uzbek experts.



NBU AMONG TOP 20 BANKS OF CIS

Largest Uzbek commercial bank - National Bank of Uzbekistan for Foreign Economic Activities was among top 20 banks of the Commonwealth of Independent States (CIS) at the rating of TOP 1000 largest banks, published by Russian Kommersant.


SOCIETY

RAISING QUALITY OF EDUCATION – AMONG PRIORITY TASKS IN UZBEKISTAN

Increasing the quality of education in Uzbekistan is the priority task of the National Staff Training Programme. The programme envisages realisation of a complex of measures on introduction into higher institutions' educational process of pedagogical techniques, development of students' critical thinking and use of interactive teaching methods.
Training of specialists with higher education is being realized in Uzbekistan in 63 higher educational institutions – universities, institutes and others. In all, the country has 20 universities and 43 institutes, including 14 technical, 3 economic, 15 humanitarian, 6 pedagogical, 7 medical, as well as 4 agrarian (agricultural) and 12 specialized. Russian Economic Academy named after Plekhanov and International Westminster University have their branches in Uzbekistan.

Some 46,000 people are occupied in the sphere of science, including 2,800 doctors and nearly 16,100 candidates of science. There is Higher Certification Commission of Uzbekistan which trains young scientific staff, and currently this education is being carried out on 20 sectors of science. Uzbek scientists conduct fundamental and applied researches on many directions of the modern science.

Uzbekistan has scientific schools of world class which successfully conduct lessons on the following directions: studies in the field of mathematics, probability theory, mathematical modeling of natural and social processes, information science and computer engineering.

Also, there is an astronomic school in Uzbekistan which was initiated by ancient scientists – Beruni, Ulugbek and Giyasiddin Djamshid. The school conducts researches connected with studying the rules of geological processes resulting in formation mineral and raw material resources suitable for industrial use, as well as in the field of tectonics, geophysics, seismology and other spheres of Earth science, researches in molecular genetics, genetic-cellular engineering, biotechnologies being the necessary base of ensuring scientific and technological progress in agriculture, microbiology industry, environmental protection.

A two-level study of specialists with higher education – bachelor and master's degrees – has been applied in Uzbekistan since 1998 in line with the Law "On education". Students study in higher educational institutions on the basis of state grants and paid-contract form. The government has provided educational credits for studies in the institutes of higher education since 2001. Lessons in Uzbek universities and institutes pass in Uzbek, Russian, Karakalpak, and on some specialities – in Kazakh, Tajik and Turkmen languages.

The share of state budget expenditure for education is growing steadily. According to forecasts, over 248 billion soums of budget assignments were directed on satisfaction of education needs in 2005. International organisations and financial institutions, governments of different countries render financial and technical assistance to the educational reforms pursued in Uzbekistan. Among them are the World Bank, Asian Development Bank, OECF, GTZ, TACIS, USAID, ACCELS, etc.).

Versatile assistance is rendered in the form of investments, projects and grants. Foreign investments worth nearly US$5.8 million were attracted in 2002 alone. 20 places are given every year in Japanese universities. 20 students from Uzbekistan study in China annually at the expense of the Chinese government. Uzbekistan and Russia have reached agreement on annual granting 50 places for study in Russian institutes to students, postgraduates, those working for doctor's degree.


PREMIER HALL TO SHOW RUSSIAN FANTASY FILMS SHOT BY ALEKSANDR ROU

"Russian tales in cinematography" film festival with a retrospective of Aleksandr Rou's fantasy films will be held at Premier Hall cinema on 24 April.

The festival is devoted to the 100th anniversary of the famous film director. The festival of children's films has been organized by the representative office of Roszarubejcentre (Russian foreign centre) in Uzbekistan.

Rou is called the main film-story-teller of the country. He debuted with "By the Pike's will" film in 1938. It is considered that he was the first to entrust the fairy plot to actors. Before that directors used animated cartoons. In the absence of computers the Soviet directors had to extricate in some way or other.

The outstanding director died in 1973 in Moscow, and the Fund of children's movie named after Aleksandr Rou was founded only 20 years later.

The following are brief descriptions of Aleksandr Rou's films:

"Barbara the Fair with the Silken Hair" (1969). Based on elements from Russian folk tales, this appealing feature involves the title character (actually named Varvara in the original Russian) in a magical adventure that starts when a tsar named Yeremey takes a long journey to survey all he owns. The underwater tsar, Chudo-Yudo, kidnaps him and demands a ransom from his family. Intrigue, treachery and plenty of fun follow.

"Father Frost" (1965). Director Aleksandr Rou's fairy tales for the screen have been praised by Steven Spielberg and scores of other filmmakers who recognize his mastery with film fantasy. In this film, based on a popular Russian folk story, a girl mistreated by her wicked stepmother is banished to a winter forest. There she meets and falls in love with a handsome lad, but he is turned into a bear for his constant boasting. The girl and her new love turn to Father Frost to set things right.

"The Kingdom of Crooked Mirrors" (1963). Another visually imaginative and enchanting children's fantasy film from the underrated Aleksander Rou. Through an old magic mirror, young Olya meets her own reflection, Yalo. Together they embark on a journey into a kingdom of crooked mirrors, where normal mirrors are outlawed because evil and dishonest people cannot face their true selves.

"Vassilisa the Beautiful" (1939). This early film from Aleksandr Rou (Father Frost) is a spirited, costumed fairy tale about the power of love. Monsters, witches and dragons populate the land where the young Ivanushka finds a special frog. He soon learns that the frog is actually the beautiful Vassilisa, who was transformed when she refused to marry the evil Gorynych the Serpent.