Uzbekistan was defined with priorities

The first vice-premier of the government of Uzbekistan, the Minister of Finance of the republic Rustam Azimov has addressed to the international conference “The concept of the further deepening of democratic reforms and formation of a civil society in Uzbekistan” with the story about today and tomorrow of the republic. The record of his performance which was given by the Russian journalist Andrey Chelnokov, we publish with reductions:

- The president of Uzbekistan Islam Karimov has named the creation of modern competitive market economy as the major problem from the moment of independence achievement. And he constantly holds these questions in the centre of the attention throughout all twenty years of building of new Uzbekistan.

The Uzbek model of transition to socially focused market economy is oriented on five principles, developed by the president Islam Karimov: the priority of economy over politics; the state is the main reformer; the leadership of the law in all spheres of society life; the carrying out of strong social politics; the transition to market relations by an evolutionary way – all these principles are actual today the same as they were actual in 1992 when our country was in the beginning of the way.

I would point especial attention at the second principle: “the state is the main reformer”. Those, who remember well the logic of our reforms, remember also that exactly this principle was a subject of the most rigid criticism from, in particular, the experts of the international currency fund and other international financial institutions.

Then, at the beginning of 90th, the certain euphoric concept prevailed that the state should leave the economy completely and the invisible and as it still named as magic, hand of the market will balance all and will lead to harmony. The global financial and economic crisis which has begun in 2008 has demonstrated that it is not so, to put it mildly, and that crisis did not come to the end by our estimations till now. It is, despite bravura statements sounding here and there for its termination.

We have achieved the impressing results. The first - the macroeconomic stability, the equation of internal and external sectors of economy are provided.

The moderately rigid monetary and credit policy providing inflation, not exceeding 7-8 percent per year is carried out in our country. The balanced state budget is provided and as consequence - since 2005, the state budget of Uzbekistan is executed with proficiency. It is very important indicator. Especially if to consider, that the USA and the majority of the European Union countries live beyond the means: the expenses of their state budgets are inadequate to those incomes which they collect.

When the governments of these states don't have the courage enough to admit and moderate the appetites, so, unfortunately, it becomes a domestic concern not only of these countries, but internationalizes a problem which leaves far beyond the given states.

We have managed to provide the balanced foreign trade and have provided the steady positive balance and growth of gold and exchange currency reserves more than 6 times. You perfectly know that according to the classification of IMF, the reserves should be equal to the volumes not less than three-monthly import. Our reserves exceed the requirements of the country for import more than for 2 years! It means that Uzbekistan is very reliably provided by gold and exchange currency reserves.

Moreover, I can say that the proficiency of the state budget together with proficiency of trading balance and the balance of payments allow us to begin the formation of Fund of reconstruction and development of Uzbekistan since 2007. But I want to declare that the sense of fund doesn't consist in placing this money in the American or English banks and to look, how these dollars depreciate before our eyes. The sense of this fund which was created by the president Islam Karimov, consists in that to construct the advanced manufacture on this money, to transform these dollars into a component of national process industry of Uzbekistan.

One more important result of the development of our reforms is steadily high rates of economic growth. We are included into number of five most dynamically developing economy of the world according to the estimations of the International Monetary Fund on rates of increase of economic development. The gross national product for years of independence has grown 3, 4 times according to parity of consumer ability, according to industrial output volume - 3times. The growth of agriculture production has increased by 100 percent. The rates of increase of investments make about 25 percent to gross national product, mainly at the expense of internal sources.

And the most important thing is a stable growth of monetary incomes of the population. We estimate the real growth of incomes of the population at level of 22-24 percent at the average.

The third global result is the realization of scale structural reforms and a diversification of branches of economy. It is not a secret that when we became the independent state, Uzbekistan was completely the agrarian country. The industry in structure of the Uzbek economy made only 9 percent at that moment. And today the industry share in our nation-wide manufacture makes 24 percent. We have achieved the grain independence. To 6 million tons of grain was delivered to Uzbekistan in 90th …

The export structure has the major value. We are against the growth of export at the expense of sale of the commodities. At least to take such characteristic product for Uzbekistan as cotton. One kilogram of cotton fiber makes about one and a half dollar at the present prices.

There is a question: to sell the cotton for export – is it correct or wrong? We think that it is wrong. If to process the cotton in a yarn in the country, so there would be a considerable quantity of workplaces and one kilogram of the yarn will already cost three dollars. If further to transform this yarn into a fabric and to paint it, it will already cost 4, 5 dollars for kg. And it is enough to transform our yarn into finished commodity and kilogram will cost 7 dollars if it is the simple production. If it is the brand production, the kilogram can cost and 25 and 50 dollars.

If in 1991 we exported only 1 percent from all volume of a crop in the processed kind, so today we export 38 percent of the processed cotton. Also we plan to carry these indicators to 55-60 percent. Such economic policy concerns not only the cotton. We try to extend it to other commodities of our country.

There is such position as cars export in the national economy. When our president has set the task of building of automobile factory, very few people trusted in the success of this project. Moreover, when the factory has started to work and left on capacity in 200 thousand cars per year, hardly16 thousand cars could be sold in Uzbekistan.

Why? Because of very low consumer ability of the population. Today we produce 250 thousand cars per year at this factory and there is a big problem before us – whether to send the cars for export or to leave in home market. It is caused by that the export markets of such countries as Russia, Kazakhstan, Ukraine, other CIS countries and also Afghanistan, Iran demand an order of 160 thousand cars per year and at the same time the home market of Uzbekistan demands now approximately 180 thousand cars.

We were proud of the Tashkent aviation factory in the Soviet period. It was the world's largest aircraft constructing enterprise – the larger than the factory “Boeing” in Seattle. But, unfortunately, by our estimations, today this enterprise of has no prospects, as its production is noncompetitive in the international market.

Unconditional the subject of pride of our economy is the automobile factory in Asaka. It makes seven models of cars now though under the international standards one factory shouldn't make more than two models of automobile cars.

I will say for those who don't know: 25 percent of shares of this factory belong to the company “General Motors” and 75 percent to the government of Uzbekistan. Less than year ago we have put new model of car “Spark” on the conveyor which has won the first place in a class of city cars.

Together with the Japanese company “Isuzu” we produce small trucks and small-sized buses. Together with company “MAN” we produce the big trucks. I want to inform that the building of new automobile factory together with company “MAN” has begun more recently in suburb of Samarkand.
The capacity of that, stage by stage placed in operation enterprise will make to 20 thousand trucks per year. We now steadfastly work over the joint venture creation with "Daimler-Benz" on manufacture of city buses. And this factory will start to work already in the second half of 2011.
Some large automobile concerns of world level also carry on negotiations with us now for the creation of joint production on release of automobile equipment.

For these years we have built Bukhara oil -refining factory, Shurtan gas and chemical complex, Kungrad soda factory, Dekhkanabad potash fertilizers plant… The potash fertilizers plant we started in September of last year and it is necessary to say that 90 percent of production of this enterprise leaves for export from first day. The huge turn was already built behind the production of this factory.

The very important infrastructural projects are realized in republic. We have connected by the railway communication the Surkhandarya and Kashkadarya regions of the country and the uniqueness of this building consists that the railway in length of 250 kilometers goes through a mountain site in height of 1500 meters. Should notice with pride that this building has been carried out exclusively by our forces – there weren’t any foreign worker or the engineer on this building, no less than any dollar from outside. Henceforth, thus, Uzbekistan has a through railway service to the border with Afghanistan.

At the instance of the Asian bank of development we will already continue the building of this railway line on the territory of Afghanistan to the city Mazari-Sharif. It is a small site – only 75 kilometers from frontier. But it will be the first railway in the Republic of Afghanistan! It can be astonishing for someone: there is a country in the XXI century which doesn't have any kilometer of railway communication! But it is a reality in Afghanistan. The more responsible will be our mission. The Uzbek builders won't stop in Mazari-Sharif.

We will build the railway line on the territory of Afghanistan further to the West – to Herat and it will be divided into two beams from Herat: one beam will go to Iran and will incorporate to a network of the railways of Iran that will allow the Afghans to receive a railway exit to the ports Bandar -Abbas and Chah Bahar in Persian gulf. The second beam of the railway will go from Herat to Kandahar and leaves to the city Zaranj on the Afghan-Pakistan border.

Here there will be a railway exit on two ports in Pakistan – Gvadar and Karachi. The value of these tracks is difficult for overestimating, as, thus there will be the shortest way from the Central Asia to the seaports in Indian Ocean. I will say more that a question of building of this railway is not far prospect. It will be constructed within three-four years.

We have created a free industrially-economic zone in the city Navoi within the limits of the anti-recessionary program. Nearby the industrial logistical center on the basis of airport Navoi is created. Today it is one of the hubs largest in the Central Asia. The government of Uzbekistan has given the airport Navoi to the company Korean Air management.

It is the largest air carrier in the world. And already now the regular cargo flights to Frankfurt, Brussels, Milan, Istanbul, Dubai, New Delhi, Bombay, Bangkok, Seoul, Shanghai and many other cities of the world are made from this airport. Simultaneously the airport of Navoi works as a regional logistical hub –we fly to Bishkek, Alma-Ata and other regional centers from here.

I will notice that the geographical point, in which the airport Navoi is located, is unique – it is the center between Europe and South East Asia. Is it necessary to be surprised in this case to that the role of this airport increases every day! For example, when we were with official delegation in China, the chairman of the Chinese National Republic Hu Jintao has suggested to introduce the new aviation routes “East China – airport Navoi – the Western Europe”.

What does it mean? It means that the planes which are taking off from the largest port cities of China ,Shanghai, Shenzhen, Guangzhou, Tjanzhin, will sit down at the airport Navoi in Uzbekistan and already to fly away in the largest European cities from there