On September 1, the Republic of Uzbekistan will celebrate the 30th anniversary of its independence. Today, Uzbekistan is a stable, dynamically developing state that confidently follows its own path of development and conducts an independent foreign policy.

After being elected President of Uzbekistan in December 2016, Shavkat Mirziyoyev identified the main tasks for the long-term development of the country. They formed the basis of a comprehensive program of large-scale reforms, which were formulated in the Action Strategy for the five priority areas of development of Uzbekistan in the period spanning 2017 to 2021.

The goal of implementing the principles of "human interests are above all" and "not the people serve the state bodies, but the state bodies serve the people" lies at the center of deep, systemic transformations in Uzbekistan. These principles are at the heart of the Uzbek leader's domestic policy, aimed at the systemic reform of the state and the modernization of the society.

Having initiated, in fact, unprecedented reforms, Uzbekistan is becoming a competitive state, ready, on the one hand, to respond effectively to modern challenges and threats, and, on the other hand, to use the opportunities that propel the trends of globalization. In recent years, Uzbekistan has been implementing large-scale reforms and modernization processes in all areas, which have become unstoppable.

Uzbekistan continues to develop confidently and dynamically, despite the fallout of the pandemic and negative trends in the global economy. Thus, Uzbekistan became one of the few countries that completed 2020 with a positive GDP growth, reaching 1.6 percent. It is expected that by the end of 2021, the Uzbek economy will continue to recover its pace of development, and its GDP will increase by approximately 5 percent.

New priorities for economic reforms 

Uzbekistan is one of the few countries in the world with a fast-growing economy. Over the last decade, the nation's GDP growth rate has been steadily exceeding the average rate for the group of leading countries of the Commonwealth of Independent States. Even during the pandemic crisis of 2020, Uzbekistan managed to maintain positive economic growth.

The new reform process, which began in 2017, aims to activate new factors of economic growth—improving the investment climate, expanding export potential, intensifying foreign trade, and strengthening macroeconomic stability. Significant milestones along this path were the liberalization of the foreign exchange market, visa simplification, the transition to a flat income tax scale of 12 percent, reducing a number of administrative costs of doing business, and opening branches of several renowned international universities. With the participation of foreign experts in 2017 alone, the country established 18 free economic zones and 77 small industrial zones, as well as 10 tech parks, all contributing to the accelerated development of the republic's regions.

In the sphere of foreign economic policy, the list of products banned from exports was significantly limited, the requirement for the mandatory sale of foreign currency earnings was abolished, import duty rates were significantly reduced, procedures for the preparation and implementation of export contracts were simplified, and additional favorable conditions for the export of fresh fruits and vegetables were created.

Liberalization of the economy, the top priority of the Uzbek Government, is impossible without a profound modernization of the system of economic management. Its main priorities include reducing the scale of direct government regulation through a transition to the principles of indicative planning, forecasting and economic programming, reducing spending on the state apparatus, optimizing the structure of public administration, and improving the efficiency of functioning. 

Over the past four years, a large number of regulatory documents have been adopted, including the concept of administrative reform and multiple decisions on strengthening personnel policy, executive discipline, expansion of the accessibility to public services, the introduction of the digital economy, as well as the development of public-private partnerships.

Another set of strategic regulations was adopted in the spheres of public administration, annual planning, and budgeting. They included the National Goals and Objectives for Sustainable Development Until 2030, the Strategy for the Transition to a Green Economy in 2019-30, the Environmental Protection Concept Until 2030, and the Agriculture Development Strategy for 2020-30. They gave clear guidelines to businesses about the long-term priorities of the Uzbek Government and created prerequisites for modernizing the management system, expanding the use of indirect economic regulation, and transferring it to the principles of indicative planning.

These, together with other changes in the regulatory and legal framework, economic reforms, and the improvement of the management system in recent years, are reflected in structural and qualitative shifts. There has been an upward trend in the structure of the economy since 2017, with the share of industry rising to nearly 30 percent of GDP in 2019, up from 23.3 percent in 2014, reflecting the implementation of targeted development programs for various industries adopted since 2014.

The acceleration of economic liberalization, which began in 2017, was reflected in the growth of investment and foreign economic activity. However, the liberalization of the foreign exchange market and the subsequent

devaluation of the national currency became one of the main factors of increasing risks to macroeconomic stability.

Uzbekistan's industrial policy previously focused on accelerating the modernization and diversification of industries and ensuring the rapid development of hi-tech manufacturing enterprises, primarily those producing finished products with high added value based on the deep processing of local raw materials. The new policy aims at the in-depth processing of raw materials, the digitalization of industries and enterprises, the transition to a new technological mode with a focus on the introduction of "green technologies," and the formation of resource-saving technological platforms for the growth of basic industries and the "green" economy.

Thanks to structural reforms and the implementation of measures to support sustainable development and the modernization of the agricultural sector, the gross agricultural output of Uzbekistan grew almost 7.2 percent in 2016-20. The average annual growth rate of agricultural, forestry and fishery production during the analyzed period was about 2.6 percent.

Uzbekistan occupies a leading position in the world for the production and export of a number of crops. For example, in production of apricots, the country takes second place among 71 producing countries, carrots—second place among 137 countries, quinces—third place among 56 countries, and cherries—third place among 70 countries and others.

Over the past four years, Uzbekistan made significant breakthroughs in various areas of reform and economic liberalization. Unlike the vast majority of countries in the world during the difficult period of the pandemic, Uzbekistan managed to maintain the positive dynamics of economic growth and prevent a large-scale increase in unemployment. 

The government of Uzbekistan has adopted a large-scale post-crisis economic recovery program for 2020-21. The action plan's implementation comes in two stages, the first one covering stabilization and recovery of growth until the end of 2020. The second includes the continuation of systemic reforms that will ensure a stable economic growth rate of 5-5.5 percent from 2021 onward.

The program aims to achieve three key goals. They comprise the elimination of the negative impact of the pandemic on the socio-economic development of the country, the restoration of investment and foreign economic activity of business entities, and the creation of conditions for a further deepening of economic reforms. This roadmap consists of 163 programs. It presents in detail the measures, implementation mechanisms, costs and sources of funding, expected results and deadlines for the implementation of measures to restore and continue structural reforms of the economy for 2020-21.

Reforming the educational system 

One of the priorities of the reforms in Uzbekistan is to further improve the system of continuing education, increase the availability of high-quality educational services, and train highly qualified personnel in accordance with the current needs of the labor market. The development of improving the competitiveness of the country's education in the national and international labor markets is included in the concept of integrated socio-economic development of Uzbekistan until 2030.

The reforms in this area started with preschool education, with the establishment of the Ministry of Preschool Education. The coverage of children in this form of education in 2017 was 27 percent, but by the end of 2019 it had already increased to 44.5 percent. During this period, the number of public preschool institutions increased from 4,940 to 7,500, and private preschool institutions from 269 to 783. The number of teachers in the preschool education system increased from 51,000 to over 80,000 by the end of 2019.

Much attention went to the training of personnel for preschool education. In order to improve the quality of the work, 97 teacher training colleges have completely come under the Ministry of Preschool Education's jurisdiction. In all pedagogical universities, the quotas for preschool education went up. The Institute for Retraining and Advanced Training of Managers and Specialists of Preschool Educational Institutions, too, has been established under this department.

In order to organize healthy and safe nutrition in kindergartens, conditions have been created for the purchasing of food for preschool students directly from manufacturing enterprises, and catering services have been launched through a pilot order.

Reforms in vocational education are executed based on the presidential decree on additional measures to improve the system of vocational education, adopted on September 6, 2019. According to this decree, a new system of continuing professional education introduced primary, secondary, and secondary specialized vocational education. Vocational training centers were organized for adults and unemployed citizens. At present, a network of educational institutions has been established in the field of vocational education, consisting of 340 vocational schools, 147 colleges and 143 technical schools.

On April 20, 2017, the program of comprehensive development of the higher education system for 2017-21 was approved. The document included measures for the significant improvement of the level of higher education. Starting from the 2018/19 academic year, leading higher educational institutions have been authorized to independently develop curricula and programs in the relevant areas and specialties of education. In 2020, Uzbekistan joined the European Association for Quality Assurance of Higher Education in an observing capacity.

In October 2019, the presidential decree on approval of the concept of development of the higher education system for the period up to 2030 was issued. The document provided guidelines for a gradual transition to the introduction of advanced standards of higher education. It also directed a gradual transfer of the educational process to a credit-modular system, which should be implemented in 16 percent of higher educational institutions by 2023, in 57 percent by 2025 and in 85 percent by 2030. The shift to this system has already begun.

New trends in foreign policy 

Thanks to the open, proactive, and constructive policy of President Mirziyoyev, an active and productive dialogue between Uzbekistan and its neighboring countries has developed in a short time on the basis of the principles of good neighborliness, mutual trust and respect, as well as the consideration of mutual interests. Mutually beneficial solutions have been achieved on the most important issues: water use, border demarcation and delineation, transport links, trade and economic relations, and inter-regional cooperation.

The regional policy of President Mirziyoyev has created a strategic turning point in Central Asia. Uzbekistan, together with other countries in the region, is actively participating, not in words but in deeds, in laying the solid foundations for turning the region into a zone of stability, development and good neighborliness.

This is indicated by the figures. For example, from 2016 to 2020, the volume of trade turnover between Uzbekistan and other Central Asian countries increased more than two times, amounting to $5 billion.

At the same time, the number of joint ventures in Uzbekistan, created with the participation of capital from other Central Asian states, increased from 312 to 1,451.

Uzbekistan, under the leadership of President Mirziyoyev, has begun to play an active role in the peaceful settlement of the Afghanistan issue. It has initiated the involvement of Afghanistan in the system of regional and inter-regional relations with neighboring countries to improve the lives of the Afghan people, without which it is impossible to talk about the normalization of the situation in Afghanistan.

Thanks to the intensification of practical cooperation between Uzbekistan and Afghanistan, there is a breakthrough in bilateral trade and economic relations. The volume of trade between the two countries in 2020, compared to 2015, increased 74.4 percent and amounted to some $777 million.

Prospects of Uzbekistan-China relations 

The reformist course of President Mirziyoyev and an open foreign policy have strengthened the position of Uzbekistan as the most attractive, responsible, and long-term partner for countries around the world as well as for reputable international organizations. The systemic changes in Uzbekistan have also had a positive impact on the Uzbekistan-China comprehensive strategic partnership and active cooperation between the two countries within the frameworks of the Shanghai Cooperation Organization (SCO) and the Belt and Road Initiative.

Thanks to the political will and efforts of President Mirziyoyev and President Xi Jinping, Uzbekistan and China have become close and reliable partners, and their friendship, cooperation and mutual support have become stronger. The dynamics of mutual visits at the highest levels are accumulating, and cultural and people-to-people exchanges are strengthening. The strategic partnership is filled with more and more new practical content.

In recent years, there has been a trend of deepening multifaceted cooperation in all areas, such as trade, investment, energy, and transportation. Despite the consequences of the pandemic, both countries have not only managed to consolidate their comprehensive strategic partnership, but also jointly identified new areas of practical cooperation.

A key factor in this dynamic development of bilateral cooperation is an active political dialogue at the highest level. During the recent telephone talks on April 29, the leaders of Uzbekistan and China thoroughly discussed a wide range of practical issues on the bilateral agenda. Agreements were reached on active cooperation in the fight against COVID-19 and on intensifying cooperation in the areas of trade, investment, and the economy in the context of the pandemic.

In order to implement the agreements reached at the highest level, a number of bilateral negotiations took place at the intergovernmental level. All conditions have been created for the promotion of inter-parliamentary relations between the two states. Practical cooperation between the foreign ministries has become active.

In recent years, the economic foundation of common development has significantly strengthened. The implementation of the agreements reached at the highest level allowed us to maintain the high dynamics of cooperation in the areas of trade, the economy, and investment.

First, over the past four years, China has maintained its position as Uzbekistan's largest trading partner. In addition, China remains the largest export market for Uzbekistan. Against this background, there is not only a quantitative, but also a qualitative change in the structure of the trade turnover. This trend is primarily due to an increase in the volume of Uzbek finished products and agricultural goods supplied to Chinese markets.

Second, cooperation between Uzbekistan and China in the field of investment is becoming increasingly intensive. Both countries share huge potential for cooperation in the areas of investment and advanced technologies. This is conducive to promoting technological modernization and structural diversification of the Uzbek economy, and increasing its export potential.

Third, in 2020, new areas of bilateral cooperation in the field of health and poverty reduction were outlined. The successful experience of China in the fight against COVID-19 has created objective conditions for the development of fruitful cooperation between the two countries in this area. The Chinese people, under the leadership of President Xi, not only successfully coped with the epidemic, but also became the first major economy to enter the economic growth trajectory by the end of 2020.

In Uzbekistan, special attention goes to healthcare. Continuing the fight against the epidemic will remain among the most important challenges in 2021. Efforts are being made to improve the material and technical base of the sanitary and epidemiological service, and to create new laboratories. 

Uzbekistan plans to expand the scale of digitalization in the medical sphere, including remote services and the introduction of electronic office work in polyclinics and hospitals. Communication between specialized centers and their local branches is being established based on telemedicine technologies, and opportunities for diagnosis and treatment in various regions are being increased.

The successful experience of the Chinese people in the fight against poverty cannot but cause sincere admiration. Addressing the Uzbek Parliament in December 2020, President Mirziyoyev stressed that the main goal of economic reforms in 2021 will be to reduce poverty and increase the wellbeing of the population. In this regard, the implementation of integrated approaches and new methods has begun, including not only social security, but also covering the areas of education and health, vocational training, access to clean drinking water, energy resources, and road infrastructure.

New accents in cooperation within the SCO 

Uzbekistan and China, along with other SCO founding states, have played an important role in its institutional development, and strengthening of cooperation in priority areas of activity. The speeches of the leaders of the two countries at the summits of the organization in 2018 and 2020 once again confirmed the proximity or similarity of their positions to the current problems of ensuring security and development in the vast region.

In his address to the Uzbek Parliament in December 2020, President Mirziyoyev stressed that the development of relations with the SCO will remain an important direction of the foreign policy of Uzbekistan.

In this context, it should be particularly noted that in recent years, Uzbekistan's participation in SCO activities has become characterized by initiative, pragmatism, and constructivism.

For example, Uzbekistan initiated the launch of new platforms and mechanisms for practical cooperation within the SCO framework. Among them are the SCO People's Diplomacy Center in Tashkent, the mechanism of meetings of heads of railway administrations of SCO members, and the Silk Road International Tourism Institute in Samarkand.

In general, since 2017, Uzbekistan has put forward more than 30 initiatives. These include, first of all, the creation of inter-regional transport and transit corridors, innovative and digital development, the search for "new points" of economic growth, and the consolidation of the efforts of SCO member states in the fight against climate and environmental threats.

It is obvious that the SCO is at a fundamentally new stage of its development and must effectively respond to today's challenges and threats. The pandemic has led to an unprecedented reduction in trade and economic ties, a decline in production, and an increase in unemployment. On the other hand, in some regions of the world, the military-political situation is becoming more acute, and contradictions on an inter-ethnic and inter-religious basis are increasing. 

In these circumstances, it is more important than ever to uphold the Shanghai Spirit of mutual trust, mutual benefit, equality, consultation, respect for the diversity of civilizations and pursuit of common development. The SCO is strong only when each of its members is strong. This is essential to ensure the security and sustainable development in the vast region of Eurasia.

Reviving tourism along the Silk Road 

Uzbekistan is a country with a long history, rich culture and ancient traditions, where modern buildings are successfully combined with the architectural masterpieces of our ancestors. Today, Uzbekistan ranks ninth in the world in terms of the number of historical and architectural monuments.

The passage of the Silk Road through the country in the past centuries gives the appearance of Uzbekistan a special mystery and attractiveness. Along with this, we can highlight such important factors as security, world-famous cities, the unique taste of national cuisine, picturesque nature, the availability of direct flights, as well as the preserved identity of the people, their traditions, customs, mentality, friendliness and hospitality.

China has long been at the forefront of outbound tourism in the world. Before the pandemic, Chinese citizens made more than 150 million overseas visits every year. In this regard, it is no secret that today Uzbekistan, actively forming a new tourist brand, pays special attention to attracting Chinese travelers.

Active measures have been taken, which provide for easier and shorter processing time for issuing visas for groups of Chinese tourists. In 2018, Uzbekistan introduced a simplified procedure for issuing tourist visas to Chinese citizens. From January 1, 2020, a visa-free regime for Chinese citizens to enter Uzbekistan for a period of seven days has been established, and from March 1, 2021, the period of stay of Chinese tourists extended to 10 days.

Historically, the Silk Road has made a great contribution not only to trade and economic relations between Eastern and Western civilizations, but also to the development of religious and cultural dialogue. Today, Uzbekistan is becoming exceedingly popular among Chinese tourists. Among the favorite places to visit for Chinese tourists are Registan Square and the Bibi-Khanym Mosque in Samarkand, the Kalyan Arch and Minaret in Bukhara, and, of course, Ichan-Kala in Khiva.

There are many rare Buddhist relics in the Museum of the History of Uzbekistan. Ancient Buddhist monuments such as the Kara-Tepe Monastery, Fayaz-tepe Temple, Dalverzin-tepe, and Erkurgan monastery are of great interest among the Chinese who profess Buddhism. The relevant work is carried out jointly with the Buddhist Association of China.

Uzbekistan is able to confirm its status as an attractive tourist destination for Chinese tourists. Cooperation in the field of tourism is identified as one of the priorities of the Belt and Road Initiative. Uzbekistan, as a country that has historically been at the crossroads of the Silk Road, plans to take full advantage of its unique position under the initiative and cooperate with China to become an active participant in the international tourism market.

This article is provided and sponsored by the Embassy of Uzbekistan in China

Copyedited by Elsbeth van Paridon