1. Promoting East – East Cooperation UZBEKISTAN Bratislava July 2003

2. Uzbekistan Development Indicators  Population 25 million  Young population: 50% under 18 years  HDI rank down from 95 in 2002 GHDR to 101 in 2003 GHDR  GDP per capita (PPP 2001) US$ 2,460  Life expectancy at birth (2001) 69.3 years  Adult literacy rate (2001) 99.2  Poverty (WB LAS 2002) 27%  Unemployment rate 5.8% officially, but estimated much higher because of under-employment and hidden employment

3. Uzbekistan – Development Challenges  Growing disparities (Decrease in incomes and increase in income disparities)  Educational achievements may not be sustained (Higher education enrolment ratios are going down (15.2 in 1990, 6.6 in 2000)  Inefficient social sector, declining quality of services and decreasing access to public services among vulnerable groups

4. Uzbekistan – Development Challenges  Slow economic reform (inward looking, import substitution policy, no liberalization of the exchange rate and trade, non-diversified export sector, limited investments, including FDIs)  Slow democratic reform (gaps in public accountability, centralized/authoritarian government, weak civil society, non-independent judiciary)  Human rights violations  Environmental problems (degradation of water resources, desertification, loss of ecosystem services, increased vulnerability to natural/man- made disasters)

5. Uzbekistan Development Challenges  Reforms and Government priorities –Commitment to introduce currency convertibility by November 2003 –Public Administration reform –Working with international community to implement recommendations of Special Rapporteur on Torture –ADB and Government working on strategy to improve living standards Momentum to bring knowledge and experience from Central and Eastern Europe

6. Uzbekistan UNDP Programme  Support to economic reform and poverty alleviation  Support to environmental management reform  Support to democratic reform

7. UNDP Programme Highlights  Economic reform and poverty reduction –Promotion of micro-finance sector through support to development of micro-finance schemes managed by non-banking institutions and development of micro-finance institutions, as a tool for poverty alleviation in rural areas –Promotion of SME sector through support to establishment of a network of business incubators

8. UNDP Programme Highlights  Environmental management reform –Provision of long-term policy and advisory support, to enhance Uzbekistan’s capacity to negotiate and implement international environmental conventions and agreements and to participate in international environmental initiatives. –Promotion of renewable energy through support to the development of the solar energy sector and piloting solar energy for electricity production in rural households –Support to drought mitigation through policy advise, emergency relief, development of water supply infrastructure, and raising policy and community awareness on water consumption and usage.

9. Programme Highlights  Democratic reform –Building policy advisory capacities for economic reform through support to establishment of Uzbekistan’s first think tank (Center for Economic Research) –Promotion of ICT through support to development of a policy and regulatory framework and support to development of e-governance –Promotion and protection of human rights through support to preparation of action plans for implementation of international treaties and combat of torture and strengthening of civil society –Building capacities for effective coordination of external assistance through support to development of a donor assistance database and institutional strengthening

10. UNDP Uzbekistan What Can We Offer  Country office in Tashkent since 1993  30 staff members in operations and programme  Expertise in economic development and poverty reduction, human development, human rights, gender, governance and environment  Development support services to partners (World Bank, NGOs)  Access to local networks and partnerships  Trust with Government as a neutral partner

11. UNDP Uzbekistan Resources  Financial resources provide seed funds for new initiatives and innovations  Top-up resources and impact by joining forces

12. East – East Cooperation Partnership with Central and Eastern European countries brings value-added for Uzbekistan  knowledge and experience with transition process which is beneficial for CIS countries  good understanding of development situation and transition problems/challenges in CIS countries

13. East – East Cooperation CEE - Uzbekistan – UNDP Cooperation  SME development  Energy efficiency and energy sector reform  Usage of ICT as a tool and resource  Protection of human rights  Civil society development and community development  Public administration reform  Decentralization and local governance  Statistical capacities  Regional trade and cooperation

14. East – East Cooperation  Mechanisms –Twinning arrangements between institutions –Study tours and training –Expertise and policy advice –JPO/JPC, UNV and intern schemes