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Uzbekistan: reforms to privatization and commercialization and all the way back to command economy

Uzbekistan's transition to market relations determined the state policy in forming and development the class of real property-owners, but in recent years the government decided that this system doesn’t work for Uzbek society.

On the first stage of reforms the government was working towards the privatization of state housing fund, small and medium trade enterprises, service, light and food industries, transport and construction. All these formed 52268 owners of trade, consumer services, public catering, and consumer cooperation entities.

At the second stage the privatization formed 2 million shareholders of privatized enterprises, 3 million owners of personal household plots, 85 thousand owners of private and small enterprises and 14 thousand of real estate owners.

Last, the privatization of industrial giants such as fuel and energy complex, chemical, metallurgical and machine-building industries is conducted, and it's carried out with wide attraction of foreign capital.

However, the picture drastically changed in recent years. Uzbek government seeks to establish a total state control over all spheres of public life and private enterprises. For example, the state controls private notaries, periodic retesting of lawyers, the issuance of warrants numbered forms, etc. At the moment all the private notaries in the country are closed and the numbers of state ones are limited. This creates big queues and slowing the service for public. There is no any appointment system implemented and people wake up at 5 am to be able to see the lawyer the same day.

The official reason for closures reported serious breach of the laws by private notaries, use of official powers for personal gain.
The issue of concealing private notaries and care of their income from taxes could be solved by tightening fiscal policy. The point here is something else: a private lawyer is independent and is guided only by law and doing what the law is not prohibited. A state notary is guided not only by law but also the guidance of executive power.

Another sphere of public life going towards nationalisation is private medical practice. The government wants to return the country’s health sector under the state control. In late September, the Oliy Majlis, the lower house of Uzbek parliament, adopted a bill to restrict the activities of private practitioners, which in practice means that all medical services will be provided only by the state medical institutions.

The authorities have their explanation of the issue. They believe that there are low qualified doctors working in private clinics and they bring harm to people, rather than provide them with real care. However, the Ministry of Health do not have any specific statistics regarding to medical errors in the private sector.

Thus, at the moment the transition to privatization and commercialisation smoothly leads to nationalisation and back to command economy, which limits competition, decreases efficiency and customer choice.

Comments

Anonymous said…
That's interesting. So why do you think the government changed the policy recently? You know after the economic crisis governments were back to full control over banks just to keep the fragile financial system alive so there was a debate: end of capitalism? Back to communist states? Do you think there is a similar trend in Uzbekistan?
Kubra
Anna Kei said…
they changed it because private notaries and medical centres were making money, but government didnt get anythnig from it. people stopped going to state hospitals and centres, because they are not efficent and service is not too good. Moreover, state hospitals are badly financed, poorly equiped, so by closing private medical services they try to improve the situation with the state health sector.
As an official reason the goverment says that there is too much corruption and illegal activities happening in private sectors right now.
back to communisim... hm.. i am not sure, but definetely not moving toward market economy.
Uzbekistan said…
Uzbekistan is a society controlled by Thugs of SNB and MVD. They can jail any body and they will always find reasons to bring more control. Uzbekistan's Economy will never be free and nor the Private practice. Those Thugs of SNB and MVD will find thousand reasons to change the policy. In Uzbekistan Jalilov Jailing is a just one more tool to make the seniors happy by getting another feather by jailing another innocent. I am a foreigner and lived in Uzbekistan more than 18 years. I was kidnapped by SNB (Uzbekistan Security Agency) and remained in their custody for 124 days. My embassy was told that I am not in Custody. I was never asked any question nor brought in front of any court. Uzbekistan is a country ruled by the Thugs of SNB and MVD. All the citizens are only free when they are lucky.USA is again having its love affair with the government and lest concerned about great abuse of Human Rights and Criminal acts against Humanity by the SNB and MVD officials. Read my story of 124 days www.harleytourism.com/haroonchoudhry.html If some body wants to dare to go to Uzbekistan then he should get Uzbekistan Visa and for me Uzbekistan Visa means Going to jail with out any crime.
Anna Kei said…
I agree, it is totalitarian regime at the moment where everythnig is controlled by MVD and SNB.
Howerver if we talk about people i was quite surprised to see some changes during my last visit to Uzbekistan. There are so many job oportunites opened up for young people, decent salaries etc. Yes, I know those are small things and nothnig will really get better unless the political system itself is changed.
Unknown said…
http://www.ferghana.ru/
check it out.
somebody trying to put up a fight.
Anna Kei said…
Hi Alex. do you mean the fight between the media and government? that article? http://www.ferghana.ru/article.php?id=6700

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