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Eldor Aripov: Address of the President of Uzbekistan – stratetic vector of the country’s future development
Eldor Aripov: Address of the President of Uzbekistan – stratetic vector of the country’s future development

The Director of the Institute for Strategic and Regional Studies under the President of Uzbekistan (ISRS) Eldor Aripov, commented to Dunyo IA on President Shavkat Mirziyoyev’s Address to the Oliy Majlis and the people of Uzbekistan:

- The Address of President Shavkat Mirziyoyev to the Oliy Majlis and the people of Uzbekistan goes far beyond the scope of a routine annual political speech in its significance. It constitutes a strategic policy document that marks the country’s transition to a qualitatively new stage of development — the institutional consolidation of reforms and the formation of a sustainable growth model oriented toward the long term.

Over the past decade, Uzbekistan’s economy has undergone an accelerated process of qualitative and systemic transformation. While in the mid-2010s the country’s nominal gross domestic product stood at approximately USD 60–65 billion, it has now reached USD 145 billion, as noted in the President’s Address. In practical terms, this represents more than a twofold expansion of the nation’s economic scale over an unprecedentedly short historical period.

In recent years, average annual economic growth has consistently remained at around six percent. This reflects not only the preservation of positive momentum, but also the economy’s capacity for sustained growth amid external shocks — including the pandemic, disruptions to raw material supplies and logistics chains, and global inflationary pressures.

Sectoral indicators corroborate this assessment. Over the past decade, industrial output has more than doubled, whereas in the early 2010s industry played a largely auxiliary role relative to the commodity-based and agricultural sectors. Today, mechanical engineering, the electrical equipment industry, and the chemical sector make a stable contribution to the economy, while the share of processing and manufacturing activities in the GDP structure has already exceeded 80 percent.

The dynamics of the agricultural sector are equally indicative. Whereas ten years ago production volumes remained the primary benchmark, today — as emphasized in the President’s Address — the priority has shifted toward processing and the export of finished products. The expansion of fruit and vegetable processing and the growth of food exports are shaping a more resilient development model, reducing the economy’s dependence on fluctuations in harvest yields and prices.

Investment dynamics also reflect qualitative change. In recent years, investment in fixed capital has been growing at a rapid pace and has reached levels well above historical averages, whereas in the early 2010s this indicator was significantly lower. At the same time, the composition of investment has shifted: while previously it was concentrated primarily in infrastructure and state-led projects, a substantial share is now being directed toward industry, energy, transport, and digital solutions. As a result, investment is beginning to support not only current growth, but also the formation of the country’s future productive base.

External trade dynamics further reinforce this picture. Over the past decade, Uzbekistan’s export revenues have more than doubled: whereas in the mid-2010s exports of goods and services stood at approximately USD 12–13 billion, in recent years they have consistently exceeded USD 24–25 billion. Crucially, this growth has been driven not only by favorable price conditions, but also by changes in the structure of export supplies.

This transformation is most clearly visible in the manufacturing and processing industries. Over the past decade, exports of textile products have increased more than threefold — from less than $1 billion to around $3 billion and above — reflecting a shift from raw-material exports to finished goods. A similar trajectory can be observed in the electrical engineering, chemical, and food industries, where export volumes have risen several times over as a result of expanded production chains and access to new markets.

Macroeconomic balance warrants particular attention. Economic and investment growth has been accompanied by the maintenance of a controlled level of public debt and overall financial stability. This is especially significant, as recent experience shows that rapid growth without adequate balance often leads to the accumulation of constraints on future development. The Address underscores that Uzbekistan has deliberately chosen a more cautious, yet strategically advantageous, development trajectory.

A comparison of developments over the past decade leads to a key strategic conclusion: the republic has reached a stage at which further progress is determined less by the sheer size of the economy than by its quality. This is why the President’s Address places central emphasis on boosting labor productivity, advancing technological modernization, and deepening industrialization. The achievements to date are viewed as the foundation upon which the economy of the coming decade is to be built.

Compared with the starting point a decade ago, the country’s economy has become larger, more diversified, and more resilient. These changes provide a long-term strategic foundation for improving citizens’ well-being and strengthening Uzbekistan’s position in both regional and global markets.

Another notable aspect of the President’s Address is its clear illustration of the feedback loop between the state and its citizens, particularly in terms of aligning ongoing reforms with the everyday needs of the population.

An analysis of the Address indicates that its priorities fully align with the issues consistently highlighted in public opinion surveys and citizen appeals over recent years. At the center of attention are employment, income levels, access to social services, the quality of education and healthcare, as well as fairness and efficiency in public governance.

Whereas in 2017–2018 poverty in Uzbekistan was measured in double digits (around 35 percent), by 2024 it had fallen to 8.9 percent.

The projected reduction to 5.8 percent in 2025 demonstrates that the country is not only approaching the previously set target — reducing poverty to six percent by the end of the year — but is actually surpassing it.

Moreover, the Address highlights a strategic goal of eradicating extreme poverty by 2030, making the fight against poverty a central pillar of the country’s long-term policy framework. This achievement has been made possible through the effective implementation of a series of social programs and reforms aimed at sustainably increasing household incomes, creating employment opportunities, and strengthening social protection.

For a significant portion of the population, particularly young people and residents of regional areas, access to stable employment and reliable sources of income is the key determinant of social well-being. Support for small and medium-sized enterprises, as well as the development of industry and infrastructure highlighted in the Address, directly responds to these expectations. International organizations, including UNDP and the Asian Development Bank, note in their studies that such a focus on employment is among the most effective tools for social stabilization.

Equally important as an indicator that the state listens to its citizens is its focus on the quality of basic services. In the Address, education, healthcare, and workforce development are presented as strategic priorities rather than secondary concerns. This aligns with the public’s expressed demand for improvements in human capital and social mobility.

The section on public governance also warrants special attention. In recent years, one of the most frequent requests from citizens has been the reduction of bureaucracy and the enhancement of transparency and accountability among officials.

Taken together, the content of the Address suggests that the state demonstrates the ability to listen to its citizens and translate public expectations into elements of strategic policy.

President Shavkat Mirziyoyev plays a particularly important role in this process as the key architect of these reforms. International financial and analytical institutions have repeatedly emphasized that political leadership is a decisive factor in the successful implementation of comprehensive reforms in countries with transitioning economies.

In Uzbekistan’s case, consistency, political will, and a focus on long-term results have made it possible to synchronize macroeconomic stabilization, social policy, and institutional reforms within a single strategic framework. The President’s Address serves both as a concentrated expression of this strategy and as a tool for its further deepening.

Taken together, the President’s Address to the Oliy Majlis and the people of Uzbekistan constitutes not merely an agenda for the next stage of reforms, but a strategic framework for the country’s future development. Supported by empirical data and assessments from leading international organizations, it strengthens domestic consensus and enhances the confidence of the international community. Its key significance lies precisely in its role as a document that defines the sustainability of reforms and the country’s long-term competitiveness.

Dunyo IA

Press and media workers
Press and media workers

Dear friends!

Sincerely, from the bottom of my heart, I congratulate you, devoted representatives of national journalism, who devote their talent, skill and selfless labor to serving the people, respected veterans who have made a worthy contribution to the development of the sphere, on June 27, the Day of Press and Mass Media Workers, and express to you my deepest respect and kindest wishes.
As you know, liberalization of the information sphere and its development are priority tasks in the construction of the New Uzbekistan. Therefore, the new version of the adopted Constitution of the country enshrines the norms and principles of ensuring freedom of mass media activities, and the legal framework of the sphere is being improved.
It should be emphasized that in recent years the country has been opening up broad opportunities for freedom of speech and pluralism of opinion, which have contributed to further strengthening the participation, role and place of media representatives in socio-political processes.
We all know well and highly appreciate the growing influence of journalists in promoting openness and transparency in society, public control over the activities of state bodies and their officials, and the study and resolution of legitimate appeals from citizens.
We should note a significant increase in the number of topical reports on various topics in newspapers, magazines, television and radio channels, social networks, thematic programs, analytical commentaries, discussions on problematic issues with the participation of specialists and experts.
Critical and analytical materials, in particular, about shortcomings in the field of construction, ecology and environmental protection, road safety, as well as in social and economic spheres help to "wake up" some "dormant" managers and local officials, to make them work in a new way, to live the concerns of people.
In a word, our indifferent and noble journalists and active bloggers with their firm position and impartial word make a worthy contribution to solving acute problems of life, increasing the effectiveness of reforms, expanding the views and worldview of their compatriots.
All this undoubtedly testifies to the fact that our national media are already close to the level of the "fourth estate". Still, it will not be easy to achieve such a lofty goal; there are, of course, many obstacles and difficulties along the way.
However, no matter how difficult it may be, we will resolutely continue our work in this direction.

Dear friends!

Today, printing and journalism are becoming not only the "fourth estate", but also a key area comparable in importance to defense and security.
Therefore, the sphere needs more and more people like you, brave, sincere lovers of the Motherland, devoted to the profession, selfless people.
In this regard, our primary task remains the training of modern journalistic personnel with multifaceted professional knowledge and skills, high moral and intellectual qualities.
At the same time, we all realize that today more than ever it is important to fill the information space with high-quality and competitive national content.
I believe it is extremely important to cover the events taking place in the world taking into account our national interests, promptly and on the basis of deep analysis.
At the same time, the increase in the dissemination of false and unfounded information that misleads people poses an urgent task for us to improve the media literacy of the population. All controversial issues and problems arising in the information space should be resolved exclusively within the framework of the law, on the basis of legal norms.
I am sure that you, dear representatives of the media, will take an active part in solving such tasks.
Ensuring the legitimate interests of all employees of the sphere, stimulating their selfless labor will undoubtedly continue to be in the center of our attention.
On this significant day I once again congratulate you on your professional holiday, wish you all health, success in your honorable activity, peace and prosperity to your families.
Taking this opportunity, I cordially congratulate the media workers who have been honored with high state awards on today's holiday.
May the joy of inspiration and creative search always accompany you, my dear ones!

Shavkat Mirziyoyev,
President of the Republic of Uzbekistan

Tashkent hosts the 8th Central Asian Expert Forum
Tashkent hosts the 8th Central Asian Expert Forum

On August 14-15, 2025, the VIII Central Asian Expert Forum (CAEF) will be held in Tashkent under the title “Central Asia – a common space of trust, security and sustainable development”.

Established in 2018, the CAEF is held annually in the country chairing the Consultative Meeting of the Heads of State of Central Asia. The forum serves as an important platform for discussing the current state and prospects of regional cooperation, as well as developing recommendations for the further development of cooperation in Central Asia.

The Forum is organized by the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan (ISRS). Event partners include the Regional Center for Preventive Diplomacy for Central Asia, the European Union Delegation to Uzbekistan and the Organization for Security and Cooperation in Europe (OSCE), and the Konrad Adenauer Foundation.

The Forum will traditionally bring together heads and specialists of strategic institutes, research centers, and academic institutions from across the region. For the first time, prominent experts from the EU, ASEAN, the Nordic Council, as well as researchers from the Russian Federation, the USA, Great Britain, Switzerland and Azerbaijan have been invited to participate in its work in order to exchange experience in regional studies.

The Forum’s program will focus on prospects for deepening regional cooperation and explore specific measures to promote multifaceted collaboration.

In addition, the Forum will feature separate events: a scientific-practical conference on shaping regional identity and a roundtable discussing prospects for partnership between Central Asia and Northern Europe.

 

The upcoming expert dialogue is expected to identify common interests and outline priorities for Central Asia’s future development. The resulting recommendations will enrich the agenda of the forthcoming Consultative Meeting of the Heads of State of Central Asia, scheduled to take place this year in Uzbekistan.

Business Climate Analysis of Uzbekistan – CERR Survey
Business Climate Analysis of Uzbekistan – CERR Survey

In January, growth in the business climate was mainly driven by an outpacing increase in the expectations component. The agricultural sector and services became the key drivers of business confidence.

The Center for Economic Research and Reforms (CERR) presented the results of its business climate analysis based on monthly surveys of entrepreneurs across the republic. Based on the collected data, a composite Business Climate Indicator was formed, reflecting both current assessments of business conditions and expectations for the next 3 months.

Dynamics of Uzbekistan’s Composite Business Climate

In January of the current year, Uzbekistan’s composite Business Climate Index stood at 64 points (on a scale from −100 to +100), which is 23% higher than the level of 2025.

The improvement in the business climate was primarily driven by stronger assessments of the current business situation, which increased by 28%.

An additional contribution came from improved optimism regarding short-term business prospects. In particular, business expectations rose by 20%.

According to the survey, 22% of enterprises increased their number of employees. At the same time, 71% of respondents expect demand for their products to grow over the next three months, compared to about 60% in the same period last year.

The share of enterprises forecasting an increase in employment in the coming quarter rose to 65%, up from 58% a year earlier.

Sectoral Dynamics of the Business Climate Index

In sectoral terms, an improvement in the business climate compared to last year was observed in construction, agriculture, and services.

In agriculture, the Business Climate Index increased by 62% year-on-year and reached 77 points, compared to 48 points in January 2025.

Growth was mainly supported by a significant improvement in assessments of current conditions and more favorable expectations. The current situation indicator in the sector increased 2.7 times from 27 to 72 points, while expectations grew by 17% to reach 82 points.

44% of entrepreneurs assessed the condition of their business in the sector as “good,” compared to 39% a year earlier. Growth in demand for products over the past three months was reported by 46% of enterprises versus 39% in January last year. Expectations for further demand growth in the near term remain high at 71%, compared to 68% a year earlier.

In the services sector, the business climate increased by 25% compared to January last year, reaching 65 points versus 52 points a year earlier.

Growth was driven by a gradual improvement in current business conditions. Current assessments in services rose by 18% to 52 points. At the same time, a more pronounced increase was observed in the expectations component, which grew by 32% to 79 points, indicating a substantial strengthening of companies’ confidence in short-term prospects.

70% of entrepreneurs expect demand for their services to grow over the next three months, compared to 58% in January 2025. The share of enterprises expecting to increase employment in the coming quarter amounted to 61%, up from 54% a year earlier.

In the construction sector, the business climate increased by 13% to 61 points, compared to 54 points a year earlier. The current situation indicator improved by 43% to 57 points. Expectations were formed at the level of 66 points, showing a decline of 4%.

38% of respondents reported that business conditions in construction had improved over the past three months, compared to 35% a year earlier. The share of enterprises reporting workforce growth rose to 38% from 22% a year earlier. Expectations of demand growth over the next three months were expressed by 77% of entrepreneurs, compared to 61% in January last year.

In industry, the business climate slightly declined by 5% compared to last year, while remaining at a sufficiently high level of 54 points.

At the same time, optimism among industrial enterprises remains steadily high. In January, expectations increased by 10%, reaching 78 points, indicating a continued positive outlook regarding development prospects.

According to the survey, the share of respondents reporting an improvement in business conditions over the past three months reached 32%, compared to 30% a year earlier. Demand growth over the same period was noted by 38% of industrial enterprises versus 36% in January last year. Meanwhile, employment expansion plans strengthened — 69% of entrepreneurs expect to increase their workforce in the next three months, compared to 62% a year earlier.

Barriers to Entrepreneurial Activity

According to the survey, more than half (57%) of entrepreneurs see no barriers in their activities. Among the problems cited, the most frequent are taxation (11%), utilities (9%), and access to credit (8%).

 

CERR Sector for the Study of Sectoral Competitiveness and Investment Activity

Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector

Tel: (78) 150 02 02 (417)


 

Uzbekistan has once again reaffirmed its commitment to building a society free of corruption, where integrity, transparency and accountability are the cornerstones of public administration
Uzbekistan has once again reaffirmed its commitment to building a society free of corruption, where integrity, transparency and accountability are the cornerstones of public administration

The Resolution signed by the President of Uzbekistan “On measures to introduce a system of continuous improvement of knowledge of the population and civil servants in the fight against corruption” caused an interested discussion in the international expert community.

Alexander Klishin, adviser at the UN Office of Rule of Law and Security Institutions:

– This initiative marks a significant step in the fight against corruption not only for Uzbekistan, but also on the international arena. The Virtual Anti-Corruption Academy is a leading initiative of the President of Uzbekistan Shavkat Mirziyoyev, aimed at introducing a system of continuous improvement of knowledge among the population and civil servants in the fight against corruption.

The initiative is perfectly aligned with global efforts to promote integrity, transparency and accountability across all sectors of the economy. Uzbekistan has once again reaffirmed its commitment to building a society free of corruption, where integrity, transparency and accountability are the cornerstones of public administration. The Anti-Corruption Virtual Academy fully embodies these values and serves as a commendable example for other countries.

 

Anas Fayyad Qarman, UNDP Resident Representative a.i. in Uzbekistan:

– We are pleased to know the adoption of the Resolution of the President of Uzbekistan regarding the Virtual Anti-Corruption Academy. We view this measure as an important step towards further strengthening the anti-corruption ecosystem.

We have been cooperating with the Anti-Corruption Agency in various areas a long while, including the development of a compliance control system in government agencies and organizations. We are also jointly developing various digital solutions to combat corruption in the public sector. In my opinion, a distinctive feature of a new Academy is its availability to both civil servants and ordinary citizens.

 

Antti Karttunen, Head of OSCE Project Coordinator in Uzbekistan:

– The initiative of the President of Uzbekistan to create a Virtual Anti-Corruption Academy is a time requirement and will help find answers to many questions related to this area.

Like the Law ‘On Conflict of Interest’ recently signed by the President, it is another important step in the fight against corruption in Uzbekistan.

We look forward to continuing to support the improvement of legislation in the field of combating corruption, as well as to improve the qualification of employees of government bodies and organizations through the Virtual Academy and support all other efforts of Uzbekistan in this area.

Tuija Brax, Director of the Rule of Law Center, former Minister of Justice (Finland):

– It is my great honor to express a few words about the new Virtual Anti-Corruption Academy in Uzbekistan. We have been cooperating with the Anti-Corruption Agency of Uzbekistan for several years now, and I was greatly impressed by the initiatives of President Shavkat Mirziyoyev to combat corruption in the country, measures to improve legislation in this area and efforts to raise public awareness. The new Virtual Academy is a unique opportunity to raise awareness, develop special courses for different target groups, and also attract young people to study this field, since ultimately it is about the future of Uzbekistan.

Quentin Reed, Professor of Oxford University, INGO Regional Dialogue’s Anti-Corruption Specialist (United Kingdom):

– I am happy to hear about the President signing the Resolution, which provides for the establishment of the Virtual Anti-Corruption Academy. International NGO Regional Dialogue and the Anti-Corruption Agency have been cooperating for several years in developing preventive anti-corruption measures in Uzbekistan. We express our readiness to provide full-fledged support in the development of educational modules and programs within the Virtual Academy, as awareness-raising, education and training are key tools in the prevention of corruption. Appropriate anti-corruption system cannot be established without them. This is particularly important for public servants, especially those in vulnerable situations, but I would also pay particular attention to citizens.

Nuripa Mukanova, Secretary General, the Anti-Corruption Business Council under the President of Kyrgyzstan:

– My congratulations to the people of Uzbekistan and the Anti-Corruption Agency on the establishment of the Virtual Anti-Corruption Academy. The opening of this Academy is important for both Uzbekistan and the countries of Central Asia. This is a very important anti-corruption measure and platform for increasing the capacity of all those directly involved in anti-corruption issues, as well as those who want to increase their capacity, knowledge and skills in the field of combating and preventing corruption. This platform will also allow young people who study and then enter public service to improve their anti-corruption skills.

 

Dunyo IA

Uzbekistan’s Inclusive Turn: Solutions at the Level of Each Mahalla
Uzbekistan’s Inclusive Turn: Solutions at the Level of Each Mahalla

On 23 January, under the chairmanship of the President of the Republic of Uzbekistan, a videoconference meeting was held on the key tasks of poverty reduction and employment provision for 2026. In terms of both substance and the framing of issues, the meeting marked a turning point in the evolution of the country’s social policy.

The relevance of transitioning to a new model

The results of the reforms demonstrate a transition to the next stage of social policy. For the first time, poverty reduction has been placed in direct dependence on outcomes at the level of individual mahallas.

This shift is a consequence of the socio-economic results achieved. By the end of 2025, the national economy grew by 7.7%, significantly above the forecast level of 6.5%. GDP exceeded $147 bn, reaching approximately $3,900 per capita. Growth rates in all sectors surpassed those of 2024. Foreign investment reached $43 bn, while exports amounted to $33.8 bn. Inflation declined from 9.8% to 7.3% in 2025.

Sustained economic growth ensured a significant increase in budget revenues, which were consistently directed toward addressing social issues, reducing poverty, and developing mahallas. As a result, in 2025 income sources were provided for 5.4 mn people, and 330,000 families were lifted out of poverty. Unemployment declined to 4.8%, while the poverty rate fell to 5.8%.

As overall poverty indicators decline, its geography is changing. Poverty is becoming localized, concentrated, and heterogeneous. Nearly one-third of low-income households and around one-fifth of the unemployed are concentrated in a limited number of mahallas, which necessitates a transition to a new model.

Against this backdrop, the primary indicator becomes the outcome achieved at the level of each mahalla. The persistence of poverty or unemployment indicates that measures require further calibration.

Accordingly, for the first time at the national level, a systematic classification of all territories by poverty level was conducted. Based on 20 criteria, 37 “difficult” districts and 903 “difficult” mahallas were identified, home to around 120,000 poor families and approximately 155,000 unemployed citizens. At the same time, work to shape the image of a “New Uzbekistan” has also begun in an additional 33 districts and 330 “difficult” mahallas.

A distinctive feature of the new approach is that “difficult” territories are viewed as points of structural transformation. For each mahalla and district, comparative advantages are assessed, including economic, agricultural, industrial, logistics, or service-related strengths.

Individual development programmes for mahallas are being formulated. Practice shows that even in the most vulnerable areas, ensuring stable access to water and electricity, basic infrastructure, and integration with markets can multiply household incomes.

In the current year, territorially targeted development becomes the main instrument for achieving the stated goals, as clearly articulated by the President.

Infrastructure as an economic asset

A particular emphasis in the new model is placed on revising regional policy priorities. As noted by the President, residents and entrepreneurs in “difficult” districts and mahallas primarily expect improvements in roads, water supply, and electricity provision, rather than an expansion of tax incentives.

Concentrating resources on a limited number of problem territories allows infrastructure investment to be transformed from general budget spending into an instrument of targeted socio-economic impact. In 2026, $1.6 bn will be allocated for regional infrastructure development, of which $990 mn will be directed to “difficult” districts and mahallas.

At the same time, transfers from the republican budget to local budgets will double.

Additionally, allocations of $4.1 mn to each “difficult” district and $165 ths to each “difficult” mahalla are envisaged.

In total, district hokimiyats (district executive administrations) and local kengashes (local representative councils) will receive an additional approximately $330 mn exclusively to support problem territories.

A key element of this model is ensuring stable energy supply for “difficult” districts and mahallas.

In 2026, each of the 903 “difficult” mahallas is expected to host the construction of a small solar power plant with a capacity of 300 kW, with a total investment of around $110 mn. These plants will be transferred to the mahallas free of charge, creating a local energy asset. Through the generation of “green” electricity, each mahalla will gain a sustainable additional income source of $33-41 ths per year.

The proceeds are intended to be used for energy-efficient renovation of housing stock, reducing utility costs, and improving quality of life. Operation of the solar plants will involve members of low-income households, simultaneously addressing employment and infrastructure sustainability objectives.

A separate emphasis is placed on supporting the most vulnerable households. An instruction has been issued to conduct targeted assessments of 6,700 families with a member having a first-degree disability and no able-bodied household members, followed by identification of needs for energy-efficient housing upgrades and the launch of “green” renovation.

Taken together, these measures form a model of territorial and energy resilience. The effectiveness of local authorities’ performance will be subject to public evaluation, reinforcing the transition to results-oriented governance.

Comparative advantages of mahallas

The President clearly defined key socio-economic targets for 2026, including the provision of permanent employment for around 1 mn people, lifting 181,000 families out of poverty, increasing the number of poverty-free mahallas by 2.5 times to 3,500, and reducing the unemployment rate to 4.5%.

Achievement of these targets is expected to be based on the comparative advantages of specific districts and mahallas in industry, agriculture, and services. This approach allows resources to be concentrated where they generate the greatest multiplier effects for employment and household incomes.

As an example of leveraging comparative advantages based on location and specialization of mahallas, the President cited Furqat District. Its advantages include, first, cooperation with neighboring economically active centers; second, deepening specialization among nearby mahallas and combining competencies; and third, increasing value added through the launch of processing activities.

Further measures were outlined within the framework of a differentiated approach to developing problem territories.

Deepening mahalla specialization

Primary attention will be focused on deepening mahalla specialization, as welfare levels are significantly higher in mahallas with deep specialization. Practice shows that in such mahallas, welfare levels are noticeably higher, while the number of recipients of social assistance is half as large, at around 7 people per 10,000 population.

Currently, the 903 “difficult” mahallas encompass around 90,000 hectares of household and leased land. To transform this resource into a source of sustainable income, a new mechanism of a “social contract” between the state and the mahalla has been proposed. Mahallas that, by leveraging residents’ skills and rational land use, manage to increase household incomes by three to four times will receive additional financing of $165 ths for the development of road, water, and irrigation infrastructure. Implementation of this model is planned to begin with “difficult” mahallas.

To support deeper specialization, banks will allocate a total of $1.4 bn in loans. For production projects, 4% of the loan will be compensated, while for processing projects the compensation will amount to 6%.

Comparative advantages of mahallas

In 2026, $11.5 bn in credit resources are earmarked for the development of small and medium-sized businesses in mahallas, compared to $10.7 bn a year earlier. At the same time, banks have been tasked with strengthening entrepreneurship financing: alongside a planned $6 bn from external sources, the total volume of funds directed to mahalla-level projects should reach $8 bn.

Not only the scale but also the principle of credit allocation is changing. The model under which loans within the “Family Entrepreneurship” programme were issued on uniform terms at a 17.5% rate across all districts and cities is giving way to territorial differentiation. In particular, for the 37 “difficult” districts, the rate is reduced to 12%. This step transforms lending into an instrument for accelerating the development of problem territories.

In parallel, programme limits and target areas are being expanded. In all districts, the maximum size of concessional loans is increased by 1.5 times, from $2.7 ths to $4.1 ths. To support this decision, an additional $165 mn is added to the planned $297 mn.

Overall, the 2026 credit policy is shaped as a targeted development mechanism, a managed conversion of credit into employment, income, and local growth.

Institutional changes in system governance

A number of institutional changes are also envisaged to enhance the effectiveness of all governance levels involved in mahalla development.

Work in mahallas is moving away from an administrative-intermediary model and is being structured around specific projects. In this framework, the hokim’s assistant acts as a territorial development manager responsible for implementing project solutions.

To ensure integrated project governance, multi-level coordination is being introduced. Initiatives proposed by hokims’ assistants are paired with regional bankers; the first deputy hokim of the region provides operational oversight; and the “Reform Headquarters” supervises issues requiring inter-agency solutions. From February, a system of training hokims’ assistants in project management will be launched, starting with “difficult” mahallas. Each district will form a project portfolio followed by a transition to practical implementation.

One hundred “difficult” mahallas that demonstrate the best performance in job creation, income growth, and poverty reduction will receive an additional $82.5 ths each. Hokims’ assistants from these mahallas will be able to upgrade their qualifications in China, Turkiye, South Korea, and Malaysia.

In this context, work on developing mahalla master plans is being intensified. International experts are being engaged, alongside the potential of domestic universities. Final-year students in architecture programmes will be able to participate in the development of “difficult” mahallas, with the best projects being supported by state grants.

Overall, the institutional changes formalize a shift from a universal approach to a differentiated territorial policy.

Resource redistribution is justified by the structure of the economy: 62% of industrial production and 57% of services are concentrated in 50 districts and cities with high entrepreneurial potential. Growth in their budget revenues creates an opportunity to concentrate state efforts on problem territories.

This is evident from revenue dynamics: three years ago, additional local budget revenues in these 50 territories amounted to $72.2 mn, while in the current year they are expected to increase 8.5 times, to $610.5 mn.

As a result, greater attention can be directed to “difficult” districts and mahallas, where poverty and unemployment are territorially concentrated.

Conclusion

The decisions and instruments for 2026 demonstrate that Uzbekistan’s social policy is moving beyond traditional resource redistribution toward a model of managed territorial development. The new model rests on three interlinked pillars.

First, the concentration of infrastructure resources in “difficult” districts and mahallas, with the creation of long-term local assets, reduced household costs, and enhanced energy resilience.

Second, the expansion of employment based on comparative advantages and deeper territorial specialization, supported by financial incentives, access to credit, and solutions along value chains.

Third, institutional recalibration of governance, where a project-based approach and multi-level coordination align resources, responsibility, and measurable outcomes.

The essence of the current phase is that targeting becomes a technology focused on “difficult” territories. Exiting poverty is understood as an individual household trajectory, in which local conditions, skills, and infrastructure are decisive. The “Mahalla Seven” and the institution of hokims’ assistants serve as the connecting link, ensuring coordination and feedback until results are achieved.

 

Khurshed Asadov,
Deputy Director of Center for Economic Research and Reforms

Navruz – A symbol of national tradition and new life
Navruz – A symbol of national tradition and new life

Navruz is considered one of the ancient and widely celebrated traditional holidays, embodying values such as humanity, kindness, generosity and diligence.

This holiday holds a significant place in the culture of the peoples of Central Asia, Iran, the Caucasus, the Near East and South Asia, reflecting the continuity of centuries-old civilizational traditions.

According to historical sources, the tradition of Navruz dates back at least three thousand years. Detailed information on this subject was provided by Abu Rayhan Beruni in his work “The Remaining Signs of Past Ages” (Athar al-Baqiya).

Navruz is closely linked to the calendar systems of ancient Iranian and Turkic peoples and is celebrated during the vernal equinox. The origins of Navruz are directly connected to astronomical events: during the equinox, the Sun moves along the ecliptic and enters the sign of Aries, making day and night equal in length. Ancient peoples interpreted this natural phenomenon as the beginning of a new year. Consequently, since antiquity, Navruz has been regarded as a symbol of nature's awakening, fertility and the renewal of life.

Today, Navruz is recognized as a cultural tradition celebrated across a vast geographical area. The holiday is observed in various forms in countries such as Uzbekistan, Iran, Afghanistan, Azerbaijan, Tajikistan, Kazakhstan, Kyrgyzstan, Türkiye, India and Pakistan. Its shared core philosophy is centered on harmony with nature, fostering friendship between people and strengthening unity within society.

The international significance of Navruz has received special recognition. In 2009, UNESCO inscribed Navruz on the Representative List of the Intangible Cultural Heritage of Humanity. Subsequently, the United Nations General Assembly proclaimed March 21 as International Nowruz Day, highlighting the holiday's role in strengthening cultural ties and mutual respect among nations.

The traditional festive table (dasturkhon) plays a central role in Navruz ceremonies. Various dishes prepared from spring bounties, including Uzbek national specialties such as kuk somsa (green somsa), kuk chuchvara (herb dumplings), halim and sumalak, are considered symbolic elements of the holiday. In particular, ceremony of preparing sumalak represents a centuries-old communal tradition. Made from wheat sprouts, this dish is interpreted as a symbol of abundance and prosperity.

Historical sources record that ceremonies associated with sumalak were held in the form of ancient communal festivities. Some researchers note that these traditions continued through the Middle Ages. In particular, historical records from the Timurid era contain information about spring festivals and public celebrations. These ceremonies were often organized in open fields, gardens, or city centers, featuring various traditional folk games.

Another ancient tradition associated with Navruz is the spring festival. Events such as the Tulip Festival (Lola Sayli) or the Red Flower Festival (Guli Surkh Sayli) are dedicated to celebrating the awakening of nature. These festivities were primarily held in mountain and foothill regions, evolving as ceremonies linked to the blooming of spring flowers.

Cultural scholars explain the significance of Navruz in society through several key aspects. First and foremost, it ensures the continuity of centuries-old traditions and values. Secondly, the holiday strengthens social virtues such as collectivism, generosity, and tolerance. Thirdly, Navruz serves as an important platform for promoting cultural dialogue and mutual understanding among diverse peoples.

From this perspective, Navruz is regarded not only as a spring holiday but as a unique cultural phenomenon shaped throughout the history of human civilization. Its ancient customs, ceremonies and symbolic meaning continue to play a vital role today in strengthening social harmony, preserving historical heritage, and passing it on to future generations.

 

Dunyo IA

The principle of “New Uzbekistan - a social state” implies comprehensive support for the population
The principle of “New Uzbekistan - a social state” implies comprehensive support for the population

Social policy in our country contains a wide range of issues on poverty alleviation, job creation, and support for socially vulnerable groups of the population. Investments in human capital are both a contribution to the social and economic sectors of the country's development. Moreover, according to a study by the Institute of Macroeconomic and Regional Studies under the Cabinet of Ministers of Uzbekistan, improving the quality of human capital leads to an increase in the inflow of foreign direct investment by 0.51 percent.
Article 1 of the Constitution of the Republic of Uzbekistan in the new wording, adopted following the results of the national referendum, once again confirmed the commitment and orientation of the state to care for its citizens from the first days of their birth, regardless of their social status. It should be noted that the state did not come to this principle immediately, as the domestic social policy was formed step by step, i.e. in the process of long negotiations, permanent compromises and economic opportunities.
The enshrinement in the Constitution of the statement that Uzbekistan is a sovereign, democratic, law-based, social and secular State increases its social obligations.
It should be noted that a social state in the general sense guarantees quality education, qualified medical care, comprehensive support for families, children, women, the elderly and persons with disabilities, provides housing and employment for those in need, creates safe working conditions and reduces poverty.
All of the above-mentioned state guarantees began to be reflected in the last decade of our country, which entered the world history as New Uzbekistan.
First, the Strategy of Action on Five Priority Areas of Development of the Republic of Uzbekistan in 2017-2021 and the Strategy for the Development of New Uzbekistan for 2022-2026 identify as priority tasks: building a humane state by elevating human honor and dignity and further developing a free civil society; turning the principles of justice and the rule of law into a fundamental and necessary condition for the country's development; accelerating the development of the national economy and ensuring high growth rates; carrying out the development of the country's economy; and ensuring the development of the national economy.

Secondly, the Ministry of Employment and Poverty Reduction has been established, the Ishga Markhamat monocenters have been launched, the “iron” “women's” and “youth” notebook systems have been set up, one hundred percent pensions are paid to working pensioners, the Social Protection Strategy of the Republic of Uzbekistan has been approved, and the problem of poverty in the country has been recognized. Moreover, the post of assistant khokims has been introduced, who are responsible for poverty reduction, developing entrepreneurship, organizing jobs and increasing the incomes of citizens. Most importantly, a new system of caring for the population has been created.
President Shavkat Mirziyoyev chaired a video conference call on May 15, 2023 to discuss measures to reduce poverty and provide employment. Following the recognition of the existence of poverty in the country, a system to reduce it was introduced. At the beginning of last year, all districts in Uzbekistan were divided into five categories and given differentiated benefits based on the pace of socio-economic development. As a result, one million people have been lifted out of poverty.
Thirdly, education and medicine are the most important and comprehensive social spheres. In order to accelerate reforms and improve efficiency in these sectors, relevant project offices have been established.
Undoubtedly, investment in human capital is the best contribution to the future. In this regard, unprecedented reforms have been carried out in the area of continuous improvement of the system of continuous quality education and training of qualified personnel. As a result, preschool education coverage has increased from 27 to 74 percent, 11-year compulsory schooling has been resumed, the workload of school teachers has been optimized, and forced labor has been abolished.
Changes in the higher education system in recent years have also shown significant positive results. As a result, enrollment in higher education has increased from nine to 42 per cent, and the number of higher education institutions has grown from 77 to 212.

Our country pays great attention to the medical sphere, which directly affects the quality of life. Over the past seven years, the financing of the health care system has increased from 5.9 trillion to 33.5 trillion soums, i.e. six times. Hospitals are being equipped with modern equipment and new facilities are being built. In order to bring medicine closer to the people, on-site screening examinations are being conducted.
It should be noted that Uzbekistan is working on targeted support for socially vulnerable segments of the population. This is evidenced by the addition of a new wording to article 57 of the Constitution on State measures aimed at improving the quality of life of socially vulnerable categories, creating conditions for their equal participation in public and State life with other citizens, and expanding their opportunities to independently provide for their basic living needs.
One of the main innovations is article 42 of the Basic Law, which states that the minimum wage shall be determined taking into account the need to ensure a decent standard of living. From December 1, 2023, the minimum wage is equal to 1.05 million soums, while the cost of consumer expenditures is set at 568 thousand soums per person per month.
In addition, according to the Presidential Decision “On measures to further improve the system of social services and assistance to the population” of September 28, 2023, a new system of social assistance by the employees of the social service centers “Inson” of the National Agency for Social Protection has been introduced in 28 districts (cities) on a pilot basis since October 15 last year. The employees are responsible for keeping records and register of lonely, elderly and disabled persons in need of care, which helps to develop a plan of individualized social services by taking into account the degree of need for care. At the same time, assistance to the lonely elderly included in the Unified Register of Social Protection is provided on the basis of a contract.

Sardor Zhakbarov
leading researcher
Institute of Legislation and Legal Policy under the President of the Republic of Uzbekistan

IF YOU WANT PEACE, BE FRIENDS WITH YOUR NEIGHBORS
IF YOU WANT PEACE, BE FRIENDS WITH YOUR NEIGHBORS

Experts often use the Latin phrase “si vis pacem, para bellum”, which translates as “if you want peace, prepare for war”. They emphasis that only force can guarantee peace.

The processes observed in Central Asia in recent years suggest the opposite. Against the backdrop of geopolitical turbulence, countries in the region regularly pursue policies based primarily on the principles of dialogue and good neighborliness.

In a short period of time, the face of the region has changed dramatically, common points of growth are forming, and mutual trust is becoming an important condition for stability. Common triggers for development are being identified: the formation of a common economic space, active attraction of investment, and the strengthening of cultural and humanitarian ties. A spirit of unity and solidarity has formed in the region.

As Uzbekistan's leader Shavkat Mirziyoyev noted at the 80th session of the UN General Assembly, “Today, Central Asia is different - it is united and strong, open to dialogue and full-scale partnership”.

The political transformation of the region is underpinned by steady economic growth, demonstrating the region's growing power. In particular, over the last 10  years, Central Asia's GDP has grown by more than 6% annually — twice as fast as the global average.

Due to political will and joint efforts of the leaders of the states, significant results have been achieved in resolving border issues. An important milestone on this path was the trilateral meeting of the presidents of Uzbekistan, Tajikistan and Kyrgyzstan, held on 31 March 2025 in Khujand.

As a result, an agreement was signed on the junction point of the state borders of the three countries, which is clear evidence that the governments of our states place peace and harmony above all else.

All this confirms the idea that peace can only be achieved through mutual understanding, support and cooperation, which are the basis of friendly relations. We are guided by the principle: “If you want peace, be friends with your neighbors” This approach reflects the essence of the integration processes taking place in the region and certainly deserves the attention of the international community as a “exemplary model” for resolving even the most complex conflicts of our time.

How has humanity understood the world over the centuries?

Throughout human history, peace has been regarded as one of the highest spiritual and social values. Even in ancient times, thinkers in Ancient Greece sought to understand the phenomenon of Eirene – a state of harmony, the cessation of hostility and stable order in society.

In Eastern philosophical thought, the concept of peace also occupied a special place. It was understood, first and foremost, as the inner harmony of a person with themselves and the surrounding world, as a path to spiritual balance and moral perfection.

The great thinkers of Central Asia continued to develop the idea of peace, giving it philosophical and humanistic content. Thus, Abu Nasr Farabi regarded peace and harmony as an indispensable condition for the existence of a “Virtuous City”, where justice, reason, and mutual understanding between people become the basis of social well-being. Alisher Navoi, in his poetic works, presented peace as the highest form of spiritual and moral perfection of man, the basis of creation and mutual respect between peoples.

Thus, over the centuries, the idea of peace has evolved from an understanding of it as the absence of war to an awareness of spiritual and moral harmony between people and nations.

Why was Fergana chosen as the venue for the Forum?

The choice of Fergana as the venue for the forum is no coincidence.

The Fergana Valley is a unique geographical area where peoples speaking different languages and practicing different religions have coexisted peacefully for centuries. The Great Silk Road passed through the valley, and its inhabitants were engaged in crafts, trade and science, always striving for mutual understanding and dialogue. Conflict is a foreign concept to the region.

Today, the Fergana Valley unites the territories of three independent states, whose relations are based on the principles of good neighborliness, mutual respect, sovereignty and territorial integrity.

The Fergana Valley is the most populous region in Central Asia. According to data, the Andijan, Namangan and Fergana regions of Uzbekistan alone are home to about 11 million people, which is almost a third of the country's population. If we take into account the population of the territories of neighboring states that are geographically part of the region, the total figure is about 17 million.

With this in mind, the countries of Central Asia are striving to deepen regional integration, viewing it as an important condition for sustainable development. Strengthening mutual trust and partnership is becoming one of the key areas of their foreign policy. To discuss specific steps and exchange experiences, platforms are needed that promote open dialogue and coordination of positions.

One such platform will be the Fergana Peace Forum, which will be held on 15–16 October at Fergana State University. It will be attended by representatives of government agencies and business circles of Uzbekistan, Kyrgyzstan and Tajikistan, experts from scientific, analytical and research centers, as well as delegates from the CIS, SCO, OSCE, UNDP, EU and other international organizations.

In addition, the Fergana Valley is a multinational region where representatives of all peoples and ethnic groups live in peace and harmony.

In this regard, the attention that the government pays to strengthening interethnic friendship and creating conditions for all citizens to receive education in their native language and study their national culture is of great importance.

Today, there are more than 250 schools in the Fergana, Namangan and Andijan regions where instruction is conducted in Kyrgyz, Russian and Tajik.

It is important to emphasize the important role of regional branches of national cultural centers, which are involved in ensuring inter-ethnic harmony, developing intercultural dialogue and tolerance, and strengthening good-neighborly relations with neighboring states.

Various activities are carried out in this area by 17 national cultural centers (8 in Fergana, 5 in Andijan and 4 in Namangan regions), including Russian, Slavic, Korean, Jewish, German, Tatar, Kyrgyz, Uyghur, Tajik and Turkish.

Special mention should be made of the activities of public associations, foundations and NGOs implementing socially significant projects, both with funding from domestic donors and with the support of international organizations and foreign partners such as the World Bank, UNDP, the United Nations Population Fund, the UN Women, the European Union, the International Organization for Migration, Saferworld, DVV International, Fair and Sustainable Development Solutions, DIA International and others.

The implementation of such projects contributes to ensuring access to social protection, developing entrepreneurial skills, increasing the participation of women and young people in public affairs, and strengthening mutual understanding and friendship between residents of border areas.

Overall, the first Fergana Peace Forum opens a new page in the development of good neighborly relations and partnership between the countries of the region.

In this case, the choice of the Fergana Valley as the venue reflects its historical role as a space for mutual understanding and harmony. Undoubtedly, this forum will provide an additional stimulus for further strengthening stability and expanding cooperation in Central Asia.

Abror Yusupov,

PhD in Political Science,

Associate Professor,

Deputy Director of the

Center for Analysis of Democratic Processes

The development of Uzbek-Azerbaijani cooperation
The development of Uzbek-Azerbaijani cooperation

   Azerbaijan is located at the crossroads of East-West and North-South transport corridors and has a favorable geostrategic position.
   Reconstruction of roads and railroads, construction of international airports in Baku and regions, Baku International Sea Trade Port, development of East-West and North-South transport corridors have played an important role in the development of transport infrastructure not only in Azerbaijan, but also in the entire region.
   In turn, relations between Uzbekistan and Azerbaijan are rapidly developing in all spheres - from politics to economy. One of the key areas of bilateral interaction is transportation and logistics. This cooperation plays an important role not only for the two countries, but also for the whole Eurasia, opening new transit corridors between East and West.
   For Uzbekistan, as a landlocked country, access to international transportation routes is vital.
   In this regard, Azerbaijan is becoming a key partner, providing access to the Caucasus and further to Europe, while the free trade regime, which has been in force between our countries since 1996, opens up the possibility of unimpeded entry of domestic products into the markets of partners.
   Thus, the volume of cargo transportation between Uzbekistan and Azerbaijan by the end of 2024 was more than 100 thousand tons, with an increase of 5% in relation to the previous year.
   It is gratifying that our two countries have established fruitful work in the field of aviation. In turn, Uzbek-Azerbaijani relations in the field of aviation are regulated by the Agreement on air communication and cooperation in the field of air transport dated 27.05.1996, as well as memorandums and protocols of consultations signed between the aviation authorities of the two countries. It should be noted that during the past period Uzbekistan's air navigation service provider has joined the Regional Platform on Air Navigation Safety Coordination for Europe and Asia, and since December 21, 2023 Uzbekistan has officially become a member of the association established by air navigation service providers of Turkey and Azerbaijan.
   Over the past 2 years, the number of flights between Uzbekistan and Azerbaijan has increased 2 times per week. Currently on the Tashkent-Baku route regularly operates 8 flights per week.
   In addition, the Parties attach great importance to the joint development of logistics infrastructure. In particular, the Baku International Sea Port in Alyat and the free economic zone located there open new opportunities for Uzbek companies.
   In order to significantly develop cargo transportation in this direction in the interests of Uzbekistan, the issue of acquiring 2 vessels for transportation on the Caspian Sea is being worked out.

   Cooperation with colleagues from Azerbaijan is underway in this direction.
   “Uzbekiston Railways” and Azerbaijan Railways are intensifying cooperation in the field of container transportation, increasing throughput capacity and introduction of digital solutions in logistics. In turn, Uzbek-Azerbaijani relations in the field of railway transport are regulated by the Agreement on mutual relations in the field of international railway communication of 27.05.1996, the Agreement on measures to further deepen cooperation in the field of railway transport and development of combined transportation of 11.09.2008.
   Speaking of cooperation in this direction, it is important to mention the Protocol signed during the meeting of the heads of railroads of five countries - Azerbaijan, Georgia, Kyrgyzstan, Turkmenistan and Uzbekistan on the formation of an international multimodal route “Asia-Pacific Countries - China-Kyrgyzstan - Uzbekistan - Turkmenistan - Azerbaijan - Georgia - Turkey - Europe” (CASCA+). On December 17, 2021 Turkey joined this Protocol, and the Protocol of the six-party meeting was signed between the parties.
   These documents provide for the organization of multimodal transportation of container block-train from China to Europe along the Trans-Caspian route with the provision of discounts for railway transportation in the amount of up to 70%.
   In 2024 through the port of Baku (Middle Corridor) the total volume of cargo transportation of Uzbekistan amounted to more than 1 million tons with an increase of 26 % in relation to the previous year.
   In the implementation of the above projects, the time requirement is to strengthen the introduction of digital technologies in the process of international freight transportation.
   In December 2022, the first transportation under the E-TIR system in full compliance with the 11th Annex to the TIR Convention between Uzbekistan and Azerbaijan took place.
   Starting from March 2025, fully switched to electronic exchange of E-PERMIT permit forms.
 
   New directions of possible interaction between Uzbekistan and Azerbaijan.
   1. In the current geopolitical situation, there is a tendency of transition from traditional transportation routes to alternative, more reliable, involving the use of different modes of transport, which contributes to the growing attractiveness of multimodal transportation.
   Despite the limited access to the main world ports, Uzbekistan can fully develop the transport and logistics industry through the formation of land transport corridors, developing them throughout the Eurasian region.
   There are promising transportation projects that could become a huge impetus in the integration of the transportation system of Central Asia, the Caucasus, Europe and Asia.
   Among such projects are the China-Kyrgyzstan-Uzbekistan and Uzbekistan-Afghanistan-Pakistan railroad projects.
   The development of the above two projects will lead to an increase in the transit potential of the countries of the Central Asian region, the Caucasus and the formation of new multimodal transport and transit digital corridors:
   “APR countries - China - Kyrgyzstan - Uzbekistan - Turkmenistan - Azerbaijan - Georgia - Turkey - EU”;
   “SEA countries - Pakistan - Afghanistan - Uzbekistan - Kazakhstan - Azerbaijan - Georgia (Black Sea ports) - EU”.
   2. Uzbekistan's cooperation with Azerbaijan is strengthened
   Within such international platforms as CIS, Organization of Turkic States, Economic Cooperation Organization, TRACECA and others.
   Thus, transport and logistics cooperation between Uzbekistan and Azerbaijan goes beyond bilateral relations - it becomes an important link in the formation of a new Eurasian transport map. Given the geographical location of both countries, their interaction plays a key role in ensuring sustainable and diversified routes between the East and the West.
 
Bekzod Kholmatov
Director of the Center for the Study of Transport Problems
 
Shokhjakhon Shikhnazarov
Chief Specialist of the Center for the Study of Transport Problems

By the end of the year, 50 thousand people will be covered by the dual education system in Uzbekistan
By the end of the year, 50 thousand people will be covered by the dual education system in Uzbekistan

Starting from the 2021/2022 academic year, the dual education system, which has proven effective in the German education system, was introduced in Uzbekistan. This new form of education allows young people to apply theoretical knowledge obtained in educational institutions in practice simultaneously.
Initially, the legal basis for introducing and improving this form of education in Uzbekistan was created. The Law of the Republic of Uzbekistan "On Education" (No. ORQ-637) dated September 23, 2020, Article 15, specifies dual education as a separate form of education. Article 17 of the same law defines dual education as follows:
"Dual education is aimed at providing learners with the necessary knowledge, skills, and competencies, with the theoretical part taking place in educational institutions and the practical part at the learner's workplace."
Additionally, the President of the Republic of Uzbekistan has paid attention to the systematic development of the dual education system based on German experience. In particular, the Decree of the President of the Republic of Uzbekistan "On Measures for the Development of Education, Science, and Innovation in the New Period of Development of Uzbekistan" (No. PF-6108) dated November 6, 2020, stipulated the introduction of practice-oriented educational programs in vocational educational institutions starting from the 2021/2022 academic year.
As a result, new mechanisms for training competitive personnel have been introduced in Uzbekistan by organizing education in harmony with labor activities for specific job positions in the economic sectors and companies (organizations), based on the real needs of the labor market.
In collaboration with experts from the German Society for International Cooperation (GIZ), specific rules and procedures for organizing dual education have been developed. The Cabinet of Ministers' Resolution No. 163 dated March 29, 2021, "On Measures to Organize Dual Education in the Vocational Education System," was adopted.
This resolution approved the regulation on organizing dual education in the vocational education system, consisting of four chapters. Currently, students are admitted to dual education programs based on the requirements of this regulation. In the initial year, more than 2,000 students were admitted to colleges and technical schools for dual education in fields such as preschool education, railways, and construction. The demand for mid-level specialists prepared through this form of education has led to the expansion of dual education.
Employers now have the opportunity to select and hire the best specialists in this education system. In the 2022/2023 academic year, nearly 45,000 young people were admitted to vocational educational institutions for dual education. In addition to the previously mentioned fields, dual education has been introduced in information technology, light industry, agriculture, and services.
Currently, about 13,000 students are receiving dual education in 234 vocational educational institutions across Uzbekistan. These students are supervised by 3,144 qualified mentors from companies and organizations, who develop their practical skills directly at the workplace.
Moreover, dual education is particularly prominent in areas such as automotive technical service, agriculture, preschool education, light industry, and services. Over 3,600 companies and organizations in Uzbekistan participate in dual education.
For instance, the Asaka Agrotechnology Technical School in Andijan region has established cooperation with "UzAvto Motors" JSC, a major automobile manufacturer in Uzbekistan, for training mid-level specialists through dual education. As a result, more than 500 students are being trained in specialties such as "Welding Technology and Equipment," "Automobile Assembly and Testing," "Mechanical Engineering Technology," and "Automobile Technical Service and Repair."
In recent years, significant work has been done to develop the vocational education system in Uzbekistan with foreign partners such as the European Union, German Society for International Cooperation (GIZ), UNESCO, and the Swiss Embassy in Uzbekistan.
For example, two technical schools in the agricultural sector received four tractors, 42 relevant technical equipment, 72 computers, and two refrigerators for storing agricultural products, with a total value of $700,000.
Additionally, 15 pilot educational institutions selected by GIZ were equipped with sewing machine sets (21 sewing machines, 6 overlocks, 6 interlocks, 3 zigzags, 3 embroidery machines), 9 cutting tables, ironing equipment, and 3 multifunctional digital "smartboards." The Almazor Light Industry College was equipped with modern equipment for a practice room in the "Computer-Aided Design" (CAD) direction, including 12 special tablets for designing and modeling, 12 computers, 1 presentation screen, and 1 plotter.
Furthermore, 109 pedagogical staff members were trained in Germany and Switzerland. Additionally, 750 teachers were trained in entrepreneurial skills based on German methodology with the support of German foreign donors.
Under the GIZ "Vocational Education for Economic Growth in Central Asia (PECA V)" grant project, six pilot educational institutions were selected for training mid-level specialists in the fields of bread, bakery, confectionery, and pasta production, as well as logistics.
Within this project, the material and technical base of the Yangiyul Agrotechnology Technical School, Samarkand Tourism and Service Technical School, Tashkent State Agrarian University, and Bukhara Engineering Technology Institute were strengthened.
Equipment for 34 items was delivered to the Yangiyul Agrotechnology and Samarkand Tourism and Service Technical Schools.
In collaboration with Germany, 70 modular education programs for dual education have been developed. Additionally, the "Concept for the Introduction and Further Development of Dual Education in Uzbekistan" and a "Guide for Developing Educational Standards Based on Professional Standards for Dual Education" were prepared.
To ensure that graduates of vocational educational institutions are self-employed in the future, i.e., set up their own businesses, it is crucial to teach them and introduce new methodologies into the educational process. In this regard, the "Basics of Business" subject was developed in collaboration with the German "German Sparkassenstiftung for International Cooperation" organization and introduced into practice.
Moreover, to increase the attractiveness of the vocational education system in Uzbekistan and to provide students with in-depth foreign language training, one of the priority directions is to ensure the competitiveness of mid-level specialists in the domestic and foreign labor markets.
In particular, one-year special German language courses were organized in 33 vocational educational institutions. Currently, 773 students in technical schools in the medical field are being taught in these German language courses.
A one-year program for teaching German was developed and introduced into these courses based on advanced German experience and methodologies. To provide students with educational materials, 6,000 copies of modern textbooks for levels A1, A2, B1, and B2 were purchased from Germany and delivered to educational institutions based on the recommendations of the Goethe Institute.
The system for training professional and qualified mid-level specialists for state-significant sectors and industrial enterprises is being systematically improved by providing the labor market in Uzbekistan with mid-level specialists with modern professional skills.
The Presidential Decree No. PQ-200 dated July 3, 2023, "On Measures for the Effective Organization of State Management in Higher Education, Science, and Innovation within the Framework of Administrative Reforms," stipulated the introduction of a system for year-round admission of students to dual education in vocational educational institutions based on the orders of companies and organizations. This has given a significant impetus to the development of this form of education.
Additionally, due to the increasing demand for mid-level specialists in job positions created based on regional socio-economic development programs, the need arose to organize year-round dual education in vocational educational institutions based on the orders of organizations.
The Cabinet of Ministers' Resolution No. 647 dated December 7, 2023, "On Amendments and Additions to Certain Resolutions of the Government of the Republic of Uzbekistan in Connection with the Introduction of a System for Year-Round Admission of Students to Dual Education in Vocational Educational Institutions," created the opportunity to organize year-round dual education in vocational educational institutions based on the orders of organizations.
Despite the fact that only two months have passed since the adoption of this resolution, more than 750 students have already been admitted to dual education based on the existing needs of over 20 companies.
Furthermore, from now on, free short-term advanced training courses will be organized annually for the voluntary improvement of the pedagogical skills of mentors assigned from organizations to dual education.
Additionally, by the 2024/2025 academic year, an electronic platform will be created to determine the current and prospective needs of the labor market for mid-level specialists. An electronic system for signing contracts between organizations willing to train mid-level specialists and vocational educational institutions will be introduced.
As a result of the reforms implemented to develop the dual education system in Uzbekistan, the coverage of dual education will reach 50,000 students by the end of this year. Furthermore, by the beginning of the new academic year, 100 professions will be selected, and professional standards will be developed based on the experiences of Germany, Switzerland, and Great Britain. The demand for professions will be aligned with the needs of employers.

Utkirjon Alijonov
Head of the Department for the Development
of the Vocational Education System,
Ministry of Higher Education, Science, and Innovation

Partnership for Future Generations
Partnership for Future Generations

Despite the 6,000-kilometer distance between Tashkent and Tokyo, the official visit of President of Uzbekistan Shavkat Mirziyoyev to Japan on December 18-20 elevated Uzbek-Japanese relations to a qualitatively new level of expanded strategic partnership for future generations.

Uzbekistan’s relations with Japan have deep historical roots. For centuries, Samarkand served as one of the key centers of the Great Silk Road, while Nara, the ancient capital of Japan, was its eastern gateway. Trade and the exchange of knowledge along the Great Silk Road, including between Uzbekistan and Japan, played a significant role in the development of international commerce and cultural interaction, forming lasting cultural bridges between civilizations. Today, Samarkand and Nara are twin cities.

Since Uzbekistan gained independence, reliable and stable relations of mutually beneficial cooperation have developed between Uzbekistan and Japan. Since the establishment of diplomatic relations, Japan has been one of Uzbekistan’s key technological and investment partners.

Economic cooperation dynamics

The most dynamic growth in economic cooperation has taken place in recent years, following the launch of comprehensive economic reforms in Uzbekistan. The Japan External Trade Organization (JETRO), the Japan International Cooperation Agency (JICA), and the Japan Bank for International Cooperation (JBIC) play an important role in advancing Uzbek-Japanese economic cooperation.

Cooperation with JICA has, in recent years, reached the level of strategic partnership. The value of the project portfolio has exceeded $8 billion, and additional initiatives worth more than $3 billion are under consideration in areas such as healthcare, energy, transport, education, industry, and other sectors. During the visit, new agreements were signed with JICA concerning the development of economic zones, agriculture, supply of medical equipment, and support for entrepreneurship, as well as the launch of a special economic zone for Japanese investors, to be developed in line with Japanese models and standards.

Cooperation with JBIC is also developing dynamically. Today, the total project portfolio with the bank exceeds $5 billion in sectors such as petrochemicals, energy, telecommunications, infrastructure, and light industry. During the visit, discussions focused on preparing new projects and improving the effectiveness of existing initiatives worth over $10 billion.

Trade relations are also growing dynamically. Between 2017 and 2024, Uzbekistan’s trade turnover with Japan more than doubled, increasing from $166.2 million to $388.5 million. In 2024, growth accelerated, rising by 64.1% compared with 2023, from $236.8 million to $388.6 million. More than 90% of imports from Japan consist of machinery and equipment, while Uzbekistan’s exports to Japan are dominated by services and chemical fertilizers, as well as fruit and vegetable products, textiles, radioactive elements, and jet fuel.

Investment cooperation is expanding as well. Over the past eight years, the number of Japanese enterprises operating in Uzbekistan has increased tenfold, while the combined project portfolio has exceeded $20 billion. Leading Japanese companies such as Sojitz, Toyota Tsusho, Sumitomo, Itochu, Kyoto Plaza, Balcom, and Shikoku Electric are actively operating in Uzbekistan, implementing major projects in energy, geology, tourism, infrastructure development, IT, and other sectors.

For example, Sojitz Corporation is implementing projects including the construction of a combined-cycle power plant in Syrdarya region, a multidisciplinary hospital, a new international airport in Tashkent, and a wind power plant. During the visit, support was expressed for the company’s plans to modernize medical clinics and educational facilities, create a transboundary “green” energy corridor, upgrade gas compressor stations, and participate in establishing a special economic zone for Japanese investors.

Sumitomo Corporation is constructing two solar power plants and energy storage systems in Samarkand region, with a similar wind-power-based project also planned in the Republic of Karakalpakstan. During the visit, the President of Uzbekistan proposed adopting a Cooperation Program with the corporation through 2030.

Uzbekistan has longstanding cooperation with ITOCHU Corporation in mechanical engineering, geology, and infrastructure. Long-term agreements have been reached on the export of critical minerals to Japan. During the visit, new areas of cooperation were discussed, including water purification, automotive manufacturing, modernization of air traffic control systems, as well as implementation of public-private partnership projects in the social sphere.

JOGMEC, together with ITOCHU Corporation, is developing uranium deposits in Navoi and Kashkadarya regions. During the visit, plans by these companies to develop precious-metal deposits at promising sites in Uzbekistan were also reviewed and approved.

Negotiations and outcomes of the visit

During the negotiations, the sides discussed further deepening of the strategic partnership between Uzbekistan and Japan, covering all areas of interstate cooperation. The importance of strengthening existing cooperation formats, including parliamentary friendship groups, economic cooperation committees, and sectoral mechanisms in priority areas, was emphasized.

During the talks between President Shavkat Mirziyoyev and Prime Minister Sanae Takaichi, a number of priority areas for advancing strategic partnership were identified, including green energy and industrial decarbonization, information technology, critical minerals, cooperation in mechanical engineering, modernization of healthcare, and tourism infrastructure.

To implement more than $12 billion worth of new cooperation projects prepared for the visit, the President of Uzbekistan proposed establishing a joint investment platform. Plans were also announced to create a special economic zone in Samarkand region based on Japanese standards and practices, as well as to scale up the “One Village – One Product” program implemented jointly with Japanese partners. It was proposed to hold the first Uzbekistan-Japan Regional Forum in Samarkand next year.

At the meeting between the President of Uzbekistan and Japan’s Minister of Economy, Trade and Industry Ryosei Akazawa, an agreement was reached to develop an action plan to further strengthen business cooperation with the active involvement of JETRO and the Japan Association for Trade with Russia and NIS (ROTOBO).

A key element of the visit was the President’s meeting with leading representatives of Japanese business. The President emphasized that in recent years cooperation between Uzbekistan and Japan has acquired a qualitatively new character. Whereas Japanese companies previously mainly participated as contractors, today they are actively investing in Uzbekistan’s economy, establishing joint ventures, participating in management, transferring technologies, and contributing to human capital development. “As a result of these qualitative shifts, Japan has become one of Uzbekistan’s key economic and technological partners,” the President stressed.

Based on these assessments, priority areas for further cooperation with Japanese business were outlined. These include ensuring energy resilience and advancing the green transition, development of renewable energy sources and storage systems, and reducing the carbon intensity of Uzbekistan’s economy. Particular emphasis was placed on deep processing of critical minerals and establishing full value chains.

Promising areas also include the development of mechanical engineering and industrial equipment to build a modern high-tech industrial economy. Special focus was placed on advancing information technologies, including the implementation of artificial intelligence and digitalization programs.

Another important direction is the creation of modern special economic zones designed to become centers for high-tech, export-oriented industries and platforms for industrial cooperation through automation and digital control systems.

Concluding his speech to the business community, President Mirziyoyev emphasized that Uzbekistan regards Japan not only as an investor, but as a strategic partner in building the industry of the future.

The main outcome of the visit was the signing by President Shavkat Mirziyoyev and Prime Minister Sanae Takaichi of the Joint Statement on Expanded Strategic Partnership for Future Generations, which elevates Uzbek-Japanese relations to a fundamentally new level. A wide package of agreements was also adopted in education, healthcare, environmental protection, water management, transport, urban development, tourism, agriculture, and disaster-risk reduction.

Expanding cooperation potential

Against the backdrop of Uzbekistan’s ongoing technological transformation and innovative development, there is substantial potential to further expand economic cooperation with Japan in trade, investment, and scientific-technical exchange. The agreements reached during the visit form a solid foundation for advancing cooperation to a qualitatively new level.

According to the Center for Economic Research and Reforms, Uzbekistan has significant untapped export potential with respect to Japan. Promising export categories include copper and copper products, textile and apparel goods including home textiles, aluminum and aluminum products, fruits and nuts, as well as electrical equipment and devices.

Japan’s experience in developing innovation clusters may serve as a valuable model for Uzbekistan. In this context, promising areas include the creation of joint venture funds and startup accelerators, support for technology transfer, and commercialization of scientific developments.

Japan’s experience in smart agriculture and agricultural education is also highly relevant for Uzbekistan. Cooperation in this area offers opportunities to modernize agriculture, increase water efficiency, boost productivity, and implement sustainable farming practices.

Thus, the President’s visit to Japan has already become an important driver in deepening and expanding economic cooperation between our two countries, contributing to fuller realization of partnership potential, modernization of Uzbekistan’s economy, and strengthening the presence of Japanese business in Uzbekistan. The strengthened strategic partnership will improve quality of life and broaden opportunities for future generations.

 

Nozimjon Ortikov,

Center for Economic Research and Reforms