UZBEKISTAN TODAY – II

Address
By
President H.E. Mr. Islam Karimov
at the
Joint Meeting of Oliy Majlis (Parliament),
Cabinet of Ministers and Staff of President of the Republic of Uzbekistan

Dedicated to the 16th Anniversary of the

Independence of Uzbekistan

Dear friends!
In the next few days our country will celebrate the 16th anniversary of Uzbekistan’s Independence. On the eve of celebrations of what is a truly great and dear occasion for all of us and taking a look at the difficult path we have traveled during these years, there is a need for an objective assessment of the results achieved, everything we have accomplished during this period of our independent development, as well as to bring this all to the attention and consciousness of the country’s population.
I am confident that every citizen of the Republic of Uzbekistan has a full right not only to assess what has an been accomplished, but also to express his own critical judgment and opinion on these vitally important issues both for every single person and also the country as a whole. Evaluating the essence, content and significance of the traversed path of the country’s independent development and what has yet to be accomplished, it would be correct to divide the passed road into two independent periods. Each of these periods undoubtedly takes its own and peculiar place in the history of our country.
Now, while assessing all these days, weeks, and months that we have lived through over these years, we may confidently state that the first stage from 1991 to 2000 – the phase of top priority reforms and transformations during the transitional period and establishing the foundations of the national statehood – played a great, lasting and truly historical role in the life of our country and people.
The next stage from 2001 to 2007 – the period of active democratic renewal and modernization of the country, has played an equally important role in ensuring sustainable economic development, and consistent reform of the political, legislative, judicial, social and humanitarian spheres.
From the outset of independence, having rejected the old and obsolete totalitarian Soviet system, we have declared about building an open democratic state with a socially oriented market economy and establishing civil society in the country.
Five principles, which have proven to be fully justified, constituted the foundation for building this new state and society:
The first principle – freeing the economy from ideology, giving it priority over politics. In other words, the economy first, then politics;
The second principle – in the period of transition from the old system to the new one the state must become the principal reformer, i.e. it must undertake the role of initiating reform in the sphere of state, social and economic renewal of the country;
The third principle – the rule of law, or the equality of all citizens before the Law;
The fourth principle – implementation of a strong social policy, the responsibility of the state to support the socially vulnerable layers and groups of population;
The fifth principle – the step-by-step implementation of reform, thus rejecting the various models of shock therapy. In other words, the country must move along an evolutionary rather than revolutionary path of development. Human history testifies to the fact that latter has always brought violence, bloodshed and deprivations to people.
These principles, in the first instance, underlined our full rejection of the communist ideology, reflected the realities of the early 1990s of the 20th century and defined the main targets and tasks of our country’s reforming.
It was these principles based on which we started laying foundation of the new state and public construction.
It was the very need to implement these principles, which gave birth to the following well-known and popular slogans: “do not destroy the old house until you have built a new one”, “reforms are carried out not for their own sake, but for the sake of the people”.
The deep study and adoption of the time-honored world experience in building successful and stably developing modem democratic states while preserving and further consolidating our national values, customs and traditions, together with respecting the existing mentality of the people constituted the cornerstone in implementing the program objectives of the reform and renewal of the country.
The situation in which we found ourselves during the post-Soviet era after the demise of the U.S.S.R. dictated taking the most urgent measures to prevent chaos, maintain law and order, and provide for the immediate needs of population, first and foremost in terms of food.
Nowadays one can hardly imagine a situation in which the reserves of wheat and flour were sufficient only for 10-15 days and when the country was practically on the verge of famine.
The state of affairs in Uzbekistan, along with the vices typical to the entire Soviet system with its centralized planning and distribution mechanism, was most disastrously affected by the one-sided hypertrophic raw material-oriented economic development of the country, by the complete and unconditional cotton production monopoly, which had a destructive impact on the economy, environment and gene pool.
Although the republic possessed enormous natural, mineral, raw, labor and human potential, it occupied one of the lowest places within the former Soviet Union in terms of the living standards of the population, and social and human development. This was proved by data provided by the 1989 census of the U.S.S.R.
In such conditions it was of a vital importance to stop the catastrophic decline of the economy and curb galloping inflation, running into over thousands percent per year, when the old Soviet currency was almost worthless and the new national currency had not yet been introduced.
It was necessary to prevent the complete destruction of the established economic, industrial and financial linkages, and also prevent mass unemployment.
The most serious threat originated from the situation of legal vacuum when the system of maintaining internal and external security collapsed, from the danger of spread and outbreaks of ethnic and religious, regional and clan contradictions, from the growth of radicalism, first of all, amongst the youth. In short, it was necessary to protect the country from internal and external conflicts rooted in the twilight years of the Soviet Union.
It is enough to recall those dark years of lawlessness and arbitrariness, which took place during 1984-1989 and were carried out by those, who were rightly called to the point among people as desantniki (the paratroopers) and sent to Uzbekistan by the decision of the Central Committee of Communist Party with the mission of preventing and stopping the growing resentment of the population of the republic, caused predominantly by the social hardship.
It is enough to recall those alarming days and the lasting wounds left in the hearts of our people as a result of the tragic events in Kuvasai, Ferghana, Kokand, Namangan, Buka, Parkent, Gulistan and Tashkent, the events in Osh, and the incursion of bandit terrorist groups from abroad into the mountainous and foothill areas of Surkhandarya and Tashkent provinces, financed and masterminded by foreign centers.
If these dirty and far-reaching provocative objectives had been realized, the country would have been plunged into the fire of civil war, the consequences of which, without any doubt, would have been explosive for the situation throughout Middle Asia.
In this rather complex and tragic situation, in which our republic found itself, it was of an utmost importance to maintain sell-control and sell-restraint, a firm political will and to elaborate a comprehensively thought-out and verified strategy to tackle the deep crisis in the country and to mobilize the healthiest forces of society for its implementation.
The strategy of political and economic development, state and social construction was defined based on the historically shaped national and cultural peculiarities of our nation, and a sober-minded assessment of the natural, economic, mineral, raw material and human potential of the country, as well as its worthy place, which we are able and must take in the system of world economic relations.
What were the initial steps in implementing this strategy of the country’s reform and establishing the foundation of national statehood?
Within the historically shortest period of time we drafted and adopted the main law – the Constitution of the Republic of Uzbekistan which clearly defines the basic principles of state and public construction in the country. The most important principle is the separation of powers into the legislative, executive and judicial. The priority of human rights over state interests and the primacy of the universally recognized norms of international law stand as the main principles declared by the Constitution. It is defined that no ideology can be declared as the state one, and public and political life are organized based on diversity of political institutions, ideologies, and opinions. The Constitution ensures the priority of private ownership along with the equal rights of all forms of ownership.
Based on these principles we have purposefully and gradually dismantled the totalitarian and centralized system of administering the state and economy, established the foundations of a new political and state system of an independent Uzbekistan, created the integral system of constitutional and legislative bodies at both the central and local levels.
Secondly, in such a difficult transitional period it was important to create an effective system and structures of executive power able to implement in practice the laws adopted, to protect civic rights and freedoms, and to conduct political and economic reforms.
Radical administrative reform has been carried out, including: the strongholds of the centralized-planning, distributive system - Gosp Jan (the State planning committee), Gossnab (the State procurement committee), Goskomtsen (the State committee for prices), Gosagroprom (the State committee for agricultural industry) were abolished; numerous ministries of different sectors of the economy were liquidated; the local bodies of power were reorganized – in provinces, districts and cities of the country the institution of khokims (governors) was introduced. Great attention was paid to developing and strengthening the system of local sell-governance bodies - the institution of the makhalla.
Thirdly, we have set and successfully achieved the goal of creating an integral system of judicial power, aimed at transforming the court from the body which only punished and protected the interests of the state into a body that ensures the rule of law and protection of human rights. The Constitutional Court, general courts, and economic courts were established. Criminal, criminal-procedural and other core laws, which constitute the legislative basis of the court and legal system, were adopted.
Fourthly, in a short period of time we have established the system of national security bodies which reliably secures our sovereignty, constitutional order, territorial integrity, public order, and counters the ever increasing threat of international terrorism, extremism and drug aggression.
Based on a deep analysis of the social and political situation in the region as well as the contemporary challenges and threats to security in the country, we have adopted the legislative acts “On the military doctrine of the Republic of Uzbekistan”, “On the concept of national security of the Republic of Uzbekistan”, and a number of other acts, which lay a firm legal foundation for the operation of the integral security system that promotes peace, tranquility and stability in the country.
Our attention was also focused on issues related to establishing the civil and public institutions, including the parliamentary Ombudsman, the national center for human rights, and some others. The protection of the rights and interests of each individual and family, raising the legal culture and awareness of the population were defined not only as objectives, but also as crucial preconditions in building a truly democratic law-governed state and civil society.
Establishing the national economy and its radical reforming became the most important basis of the independent development of the country.
The republic faced an urgent and crucially important problem in reliable satisfying the country’s demand and the needs of the population first of all for fuel and energy resources, consumer goods and food.
Achieving energy and grain self-sufficiency was placed on the agenda as a pivotal, strategic task.
First of all, it was meant that Uzbekistan though possessing the vast proved industrial reserves of natural gas, oil and gas condensate had to annually import about 6-7 million tons of oil and oil products and spend for this purpose considerable currency reserves to satisfy the demand of branches of economy and the needs of population.
In a short period of time we have elaborated and implemented special programs on the extraction and refining of national hydrocarbon resources, and attracted the required investment, in particular at the expense of inflow of foreign capital, to explore the new oil and gas deposits and to extract oil and natural gas. A new and modem Bukhara oil refinery was built. The Ferghana and Alty-Aryk refineries were modernized and reconstructed, and we ensured their stable and reliable operation.
The unprecedented and unique in its capabilities the Shurtan petrochemical complex was built. It produces the liquefied gas, various types of polyethylene and other products which are on high demand not only in the country, but also abroad.
Today owing to these plants built and reconstructed during the years of independence, the output of oil products has increased three-fold since 1990. Nowadays Uzbekistan not only meets its own, annually increasing, domestic demand, but has also increased exports.
It is due to the growth of production of oil and oil products, that today we meet the sharply increased requirements of industrial development of the country and population.
At the same time, we have to note that thanks to the creation of the automobile plants in Asaka and Samarkand, the number of automobiles per 100 families has increased more than six-fold during the years of independence. Accordingly, the demand for petrol, fuel and lubricants has also increased.
In the first days of independence there were huge difficulties and problems in supplying the population with bread and grain products. This problem was rooted in the fact that Uzbekistan being the main producer and supplier of raw cotton for the needs of the former U.S.S.R. and the socialist bloc, at the same time covered more than 80% of its demand in grain and flour at the account of their importation from abroad. In addition, one should take into consideration that only about 7% of the raw cotton produced was processed in the country.
The situation was no less complicated with regard to supplying the population with other foodstuffs, such as meat and dairy products, along with sugar which was completely imported from abroad. The most revealing example was the case with potatoes, which we had to annually import from Russia, Belarus, Poland, and other countries at the levels of over 1 million tons. Moreover, in November and December it was mainly frozen potato that was imported. Much of it went to waste and was used as cattle fodder. Today the needs of population in potato are completely covered at the account of our own production.
We have highlighted and successfully resolved the crucially important task of achieving the grain self-sufficiency, in the first instance, thanks to radical reforming agriculture, ending cotton monopoly which caused great damage to the economy and ecology of our country. Today Uzbekistan is not only self-sufficient in grain, but also exports flour and grain to the neighboring countries of the CIS, Afghanistan, Iran, and others. it is also important to note that achieving grain sell-sufficiency allowed, along with sustainable supply the population of the country with flour and bread, to tackle the task of stably satisfying the needs of the population for meat and dairy products by producing locally.
These achievements were only possible thanks to the enormous and selfless labor of our farmers, dekhkans, agricultural workers and all other sectors of the economy who tackled these challenging tasks. It was of fundamental importance for us to reject the centralized-planning. distributive system that was completely discredited with all its faults and which stood as an obstacle to productive labor, initiative and entrepreneurship necessary for producing high quality and competitive goods.
In the first years of independence we laid the foundations of market economy that was new for us, launched the mechanism of market economic relations together with the creation of market infrastructure institutions and shaping the competitive environment. Private ownership was revived and saw its priority development in the country. It was given the reliable constitutional guarantees. As a result of privatization and the complete denationalization of the main branches of the economy, trade enterprises, and services, the multi-structural economy has developed in the country in real terms. The new class of owners and entrepreneurs, which year by year plays an ever increasing role in the country’s life, has emerged.
It was of a great importance to establish an absolutely new financial and banking system that meets the requirements of a market economy, as well as to introduce our own national currency. One should admit that the transition to a national currency and achieving its firm paying capacity was not easy for us, but this did not prevent us to make it freely convertible already by 2003.
With establishing a modem two-level banking system, it became possible for us to have our own independent monetary policy, to clearly separate the spheres of competence of fiscal and monetary policies, to ensure their effective interaction, which provides sustainable and reliable servicing of our economy’s interests. Independence of economic entities and budget—funded organizations in terms of using financial resources has dramatically increased.
In the social sphere, in the initial, the most complicated transitional phase of reforming the economy and society in general an unprecedented effective mechanism of implementing the strong social policies and protection of population was elaborated and successfully put into practice.
The approach when the needy families are materially supported mainly through the unique national communities - makhallas, has fully justified itself. This allowed to openly and transparently render the necessary material and moral assistance on a concrete and targeted basis to the really needy categories of the population and reliably protect them from the difficulties of the transition period.
As a result, we have not only managed to achieve social and political stability in the country, but also gained broad popular support of the ongoing course of reforms and renovation of the country on the part of people.
The formation of Armed Forces was extremely important to strengthen the defense capability, and to maintain stability and security of the country.
In the conditions which followed the collapse of the U.S.S.R., in the situation when the Armed Forces actually lost control, discipline and order, in the circumstances when day by day the threat to internal and external security of the country increased, the establishment of a Ministry of Defense, and its bodies and command units on the ground was both timely and the only right decision. It was extremely important to preserve and consolidate the cadres, particularly, the staff of officers, filling up the Army staff with national cadres, organization of their training and retraining. It was especially important to prevent the military equipment and arms from being taken out of the country.
Later, as a result of the rapidly changing social, political and military situation in the region, we developed the long-term program of reforming the Army based on the new principles of construction and organization of the Armed Forces, and due consideration of outstanding threats and challenges to security.
In implementing these changes the Army has been transformed into a new organizational structure. In a short period of lime, we have established military districts and border regions, reviewed entire Armed Forces command system, as well as the staffing and deployment of formations and units. We have also taken complex measures to enhance material and technical basis, supply the Armed Forces with modern arms and equipment.
On the most important operational areas special operations units and the Counter terrorist corps of the Ministry of Defense were established. The experience of conducting the operations to liquidate the bandit groups of international terrorists, which penetrated the mountainous areas of Surkhandarya, Kashkadarya and Tashkent provinces, demonstrated that these units have become a powerful tool in confronting any aggressive intentions of possible adversaries.
The reduction of conscription terms to one year, introducing qualitative changes in staffing, changes in the order of filling up the staff, in combat equipment supply of troops, introduction of the mobilization conscription reserve service, and practical completion of transition to contract-based military service, have principally altered the form, essence, content and combat capabilities of our Army.
We have created an effective system of sergeant and officer training, based on the use of information and computer technologies, the latest achievements in science and technology.
A lot has been done in the sphere of social protection and providing the necessary housing conditions for the military arid their families. Just within the last five years, there was more than two-fold increase of salaries paid for the military rank, and retirement allowances for the military service.
Today one may confidently say that the security of our Homeland is reliably ensured by our Armed Forces, and that military service, without exaggeration, has become not only a constitutional duty of an Uzbekistan citizen, but also one of the most prestigious professions in the country. The young people who have joined the Army are not only mastering the military professions - in the Army our children are getting matured both physically and spiritually, the integrity of their character, the firm living positions, and readiness to rise anytime to defend Homeland are cultivated.
While summing up the results of this past period of our history, we cannot but to say about the extensive work that was accomplished to develop the foreign policy and establish the diplomatic service. It should be emphasized that before gaining the independence, the Ministry of Foreign Affairs of the republic, which was staffed only with 10-15 employees, performed mainly nominal representative functions which were limited to protocol duties and participation at different events, especially, related to reception of foreign guests.
Since the early days of independence, we have had to tackle the most important foreign policy issues and to find the most optimal ways in the sphere of international political and economic relations. In the shortest period of time, the Ministry of Foreign Affairs, the Committee and later the Ministry of Foreign Economic Relations and some other bodies of state governance in this sphere were set up. We have developed the system of training and retraining of diplomatic staff.
Before gaining the independence, there was no foreign embassy in Uzbekistan. And yet now our country has established 48 diplomatic missions abroad. 86 embassies and foreign trade offices are accredited in Uzbekistan.
The particular geopolitical position of Uzbekistan, its comprehensively balanced, independent and consistent foreign policy, in the first instance with due consideration of its national interests, have ensured for Uzbekistan recognition and growing authority in the world community. Today Uzbekistan takes an active part in the work of such high-profile international organizations as the UN, OIC, OSCE, Eurasian Economic Community, Shanghai Cooperation Organization, Collective Security Treaty Organization, CIS, and a number of other specialized international institutions, making a significant contribution to resolving the problems of ensuring regional security; establishing a Nuclear-Weapon-Free Zone in Central Asia; combating drug trafficking, and other issues challenging the international community.

Dear friends!
It goes without saying that to fulfill the tasks of construction of a new state, it was principally important to train the cadres of a new formation brought up on national and universal values and able to tackle in practice the uneasy and large-scale tasks on modernizing the country and building a modern democratic society. The country acutely needed the cadres with independent thinking and a modern mentality, who deeply comprehend their responsibility for the present and the future of the country, with a sense of responsibility for the destiny of their Homeland.
With these targets in mind, the National program of cadres training, to be implemented by 2009 was adopted in 1997.
This Program, unique in its essence and content, envisaging transition to a twelve-year education, constitutes an integral continuous system of education. The program provides for a nine-year secondary school education and a three-year secondary vocational training in colleges and academic lyceums.
The academic lyceums set up at the higher educational institutions of the country give the young people an opportunity to master deeper knowledge in order to continue with higher education according to their chosen specialty. And the colleges, as well as providing an opportunity to continue with education in specific disciplines, gives the chance to obtain a medium level professional qualification in two to three specialties so that every young person entering life could use their skills and find their niche in society.
Within the framework of the National program on cadres training a nationwide program on secondary school education development is also being implemented to be completed by 2009.
Since the launch of the national educational programs we have built and fully refurbished about 1,140 academic lyceums and professional colleges, and more than 4,680 secondary schools, equipped with modern furniture, study and laboratory equipment, computer and language learning classes.
We have radically improved the content of the educational process by developing and introducing the new national educational standards and publishing a new generation of textbooks and manuals. And what is particularly important is that we have organized training of the teaching staff of a new generation for colleges and academic lyceums at the specialized higher education institutions.
Radical reforms were carried out in the sphere of higher specialized education and the two-level European system of bachelor’s and master’s degrees has been introduced. At present, about 300 thousand students attend 65 higher educational institutions of the country specializing in 850 areas.
Within this period, more than 5 billion dollars of budget and non-budget funds have been channeled into building modern and well-equipped educational institutions.
Today expenditure on education is more than 12% of the country’s GDP, while in the world practice this index does not exceed 3-5%.
The Academy of Sciences and the associated 43 academic institutes with huge scientific potential are successfully operating in Uzbekistan. Much promising research is being undertaken in many spheres of the natural and exact sciences including the nuclear physics, thermal physics, astrophysics, helium-material studies, biology and micro-biology, chemistry and chemistry of natural compounds, seismology, and others.
There is no doubt that the resources allocated today to the sphere of education and science make up the very capital that lays a solid foundation to develop the high intellectual society in the country, to which the future belongs.

Dear compatriots!
The enormous purposeful work carried out since the early days of independence in strengthening the interethnic and inter-religious peace and accord in the country, enhancing the role of spiritual and moral upbringing, returning to our national roots, upgrading the political awareness and legal culture of the population were of crucial importance to reach our goals, maintain stability and implement broad-scale reforms on renovation of the IA country.
The climate created in the society has a wholesome affect on the minds of people. It is when such human features typical to our nation since the ancient times – mutual understanding, mutual tolerance, openness, kindness, hospitality, and heartfelt generosity – have fully manifested themselves.
In the modern conditions of building a new life, we all have to realize that the vacuum or emptiness in society following the rejection of the communist ideology and morale may rather rapidly be filled with an alien and imported so-called mass culture with its unacceptable spiritual and moral vices and perversions.
This expansion, which pursues the far-reaching goals and is generously funded by various foreign centers, may well lead to serious and unpredictable consequences. And we have to always remember this.

Dear friends!
Summarizing the outcomes of the reform and renewal of the country during the period 1991-2000, today we have all grounds to say that this stage has laid a. solid foundation for the national statehood and sustainable growth of the country.
During what is historically a very short period of time we have dismantled the old administrative-command Soviet system, managed to create the dependable legislative basis to build up the national state and establish the structures of state governance – the legislative, executive and judicial branches of power. The foundations for public and civil society organizations have been laid.
We have carried out the transition to a free market economy.
A radical change in the minds of people has also occurred. The way of thinking and worldview of people, who for several generations were brought up in line with the principles of communist and Soviet ideology, has changed. A new generation of people is beginning their lives. They have a new way of thinking and see their future in strengthening democratic values and integrating the country into the world community, and this fact is a reliable guarantee of the irreversibility of the fundamental political, economic, spiritual and moral changes in the country.
In a word, in this critical period in the history of our tiation, we have accomplished fundamental changes, laid the foundation of a new independent democratic state which has become a fully-fledged member of international relations, and taken a deserving and authoritative place in the world community.
On this very solid foundation the next natural phase of development is being built, which can be characterized as the period of the active reforming and modernization of the country.
The most important program objectives of this phase are as follows: further democratization and liberalization of all aspects of political and economic life, state and public construction, enhancement of independent judicial system, protection of human rights and freedoms, raising the political and economic activeness of citizens, and developing the basis of civil society.
The main task of this period of reforming our state system must be a consistent and step-by-step transition from a strong state, which was objectively necessary in conditions of transition period and establishing the national statehood, to a strong civil society.
In the course of democratic reforms being conducted at this very period in the sphere of state and public construction the supreme legislative body of the country has been reorganized into bicameral Oliy Majlis of the Republic of Uzbekistan.
The main tasks that we have fulfilled in this context are as follows: to turn the lower Legislative Chamber into a permanently functioning professional body and to create an upper chamber – the Senate – as a body of territorial representation, which expresses the interests of the regions. By this, along with improvement in the quality and validity of the adopted legislative acts, we are creating an effective system of checks and balances, providing a balance between national and regional interests, and considerably expanding the involvement of the population in the social and political life of the country.
Delegating part of the powers of the President to the upper house of Parliament – the Senate – and enhancing the rights and powers of the Prime Minister were profoundly important in resolving the issues related to expanding the rights and powers of the bicameral Parliament of the country and providing greater balance of powers between the legislative and executive branches of power.
The exclusion from the Constitution of the Republic of Uzbekistan of the norms stipulating that President of the country is simultaneously the head of the executive branch of power. has become very important political and legal act. Today, the Constitution defines the President of the Republic of Uzbekistan as the head of state and ensures the concerted functioning and interaction of the bodies of state power.
The adoption of the Law “On strengthening the role of political parties in the renewal and further democratization of state governance and modernization of the country” has played a key and vital role in the course of deepening of democratic reforms. Today, political parties are called upon to become the most important instrument in making citizens more politically and socially active, expressing the will and opinion of the population, and most importantly, in implementing the election processes and establishing the bodies of state power in the center and at local level. In order to fulfill this task we have taken organizational and legal measures to define in law the status of the parliamentary majority and parliamentary opposition, as well as the election of the leaders of factions as Deputy Speakers of the Legislative Chamber of Parliament. The legal mechanisms adopted have principally changed the role and weight of political parties in terms in organizing the activity of the country’s Parliament, as well as in establishing the bodies of representative and executive branches of power and controlling their activity.
The introduction, in particular, of mandatory consultations with factions of political parties concerning the candidature for the post of Prime Minister, and the strictly regulated procedure and mechanism for his approval by Parliament is the most important step in deepening democratic reforms in the sphere of state construction.
It is of a great importance that the Constitutional law gives to the factions of political parties in the Legislative Chamber the right to initiate the resignation of the Prime Minister, and to party groups at local Kengashs (Councils) the right to initiate the resignation of klzokims (governors) of provinces. This by itself is concrete evidence of the increasing role of political parties in the country’s life.
A number of powers and functions are consistently being delegated from central bodies of power to local ones, particularly, to the bodies of citizen’s self-governance, makhoJlas, allowing them to resolve economic and social issues, financing budget organizations, utilities, employment, and protection of people’s interests.
The new concept of deep reform and liberalization of the judicial system which has been introduced in the country is the most important component in building a law-governed state. The specialization of courts has been implemented – the courts on civil and criminal cases are established. The courts have been relieved of certain inappropriate functions such as executing courts’ decisions. The measures taken to liberalize the system of criminal punishment were of a great social and political importance. As a result of these measures, about 75% of crimes which previously belonged to the category of grave and heinous crimes have been transferred to the category of crimes which do not represent serious danger to society, and are less grave. There was a significant increase in the number of norms, which do not allow courts to decide on punishment in the form of imprisonment, if the person who has committed the crime provides full compensation for the damage. With introduction of these changes there was almost 20% decrease of court decisions on imprisonment in 2006 in comparison with 2000. The institute of reconciliation has been introduced.
The Law of the Republic of Uzbekistan on abolishing the death penalty from January 1,2008 in the country, as well as the Law on transferring the right to issue the arrest warrants from prosecutor’s office to courts adopted in 2007 gained huge resonance around the whole world.
From now on, the death penalty is replaced with a life imprisonment, which is assigned only for two types of crimes: murder in aggravated circumstances and terrorism. Moreover, this type of punishment cannot be applied to women and persons under 18 and over 60 years of age.
One can say without exaggeration that with the introduction of these measures one of the most humane and liberal systems of criminal punishment in the world has been created in Uzbekistan. It is suffice to note that in such countries as Germany and Poland life imprisonment can be applied for 5 types of crimes, in Belgium and the Russian Federation – 6, in France – 18, the Netherlands – 19, etc.
Delegating to the courts the right to issue arrest warrants and defining a precise procedural and legal mechanism for its implementation will become an important guarantee for the effective protection of the rights and lawful interests of citizens under criminal prosecution, at the pre-trial stage of the legal process. This measure will facilitate enhancing the responsibility of investigators and prosecutors in choosing the type of preventive punishment in the form of imprisonment, raising the authority and independence of judicial power providing reliable protection of the constitutional rights of people to freedom.
An open and strong civil society cannot be imagined today without a developed system of independent and stable non-governmental non-profit organizations, free mass media, and other civil society institutions representing the interests of different social groups and broad layers of the population.
At the moment, there are, in particular, about 5,000 non-governmental non-profit organizations, over 870 newspapers and magazines, and about 100 state and non ­state television and radio studios in the country. The necessary normative and legal basis, economic and legal guarantees have been created to promote the free development of civil society institutions, and to raise efficiency of their activities aimed at satisfying and protecting the interests of citizens, addressing socially significant programs.

Dear friends!
Speaking about the achievements, which we have secured during the years of independence, first of all, we assess them in terms of the level of development of the economy, its growth rates, the balanced nature of macroeconomic indices, low inflation indicators, stability and purchasing capacity of the national currency, and growth of exports and gold-currency reserves, in a word, its sustainable development.
As a natural result of the wide-scale and radical reforms and transformations, the growth rates of economy of the country in recent years have gained a stable character. Vivid evidence of this is the fact that in the last four years the annual growth rate has exceeded 7%. In comparison with 1990 the GDP of Uzbekistan has increased 1,3-fold, meanwhile in many CIS countries it hasn’t yet reached the pre-reform level.
Moreover, sustainable economic growth is being achieved in Uzbekistan not because of extensive growth and unrestrained extraction of hydrocarbon resources at a time when the price of oil and gas in the world markets is high, as is the case in a number of countries, but because of the purposeful implementation of market reforms, deep structural changes in the economy, modernization and technical re-equipment of branches and enterprises, creation of new competitive export-oriented industries, and the development of small business and private entrepreneurship.
Once again I would like to underscore that the dynamic growth of the economy of Uzbekistan is based on implementation of the deep economic reforms in all economic branches and spheres. At every stage of reform of the economy a special attention is given to determining clear priorities. To achieve these priorities the necessary financial, material and human resources are being mobilized.
The key directions of deepening the reforms are as follows: further liberalization of the economy, promotion of the freedom and economic independence of entities, establishing a diversified market infrastructure, cardinal decrease of controlling and regulating functions of the state, limiting its interference into economic activities of enterprises, and lifting the barriers for the development of entrepreneurship.
It is extraordinarily important to implement deep structural transformations in the economy, the basis of which is the priority growth of industrial sectors based on processing local raw materials and producing finished goods which are competitive in world markets, as well as the accelerated development of services. It is worth noting that in the years of independence the share of industry in the structure of the GDP has increased from 11% to 25%, and that of the services sector from 18% to 42%, or more than two-fold.
Priority is given to the implementation of an active investment policy aimed at providing accelerated modernization, technical re-equipment of the operating enterprises and setting up new, updated and high-tech industries, such as automobile production, petrochemical, electro-technical, textiles, food, pharmaceutical, IT, telecommunications, etc. A favorable, and to a large extent unprecedented, investment climate for foreign and local investors has been established. As an outcome, during the years of independent development investments worth over 100 billion dollars have been attracted to the country’s economy. Out of this amount over 25 billion dollars were foreign investments.
A policy of tax burden reduction has been consistently carried out. During the period of 2000-2007 alone the income (profit) tax rate was cut from 38% to 10%, the single social payment - from 40% to 24%, and the single tax on small businesses and agricultural producers was reduced to 10%. There were significant income tax cuts on physical entities. As a result of these measures over the last seven years the general tax burden has been reduced from 40% to 27%.
In recent years agriculture has radically changed. Instead of the forms of economic relations which were inherited since the Soviet times and discredited themselves, we have established universally accepted private farms, which in fact have become the main form of agricultural production, the principal locomotive for ensuring its sustainable and effective development.
An essentially new market infrastructure has been created. The organization and stimulation of agricultural production is being developed according to qualitatively new principles.
At the present time, over 76% of GDP, almost 80% of industrial products, and all agricultural goods are produced in the non-state sector of the economy. The entire retail trade also falls to the share of the non-state sector. Along with this, over 90% of enterprises are privately and corporately owned, and provide employment for 77% of the national workforce.
Small and private business, which now accounts for more than 45% of GDP has not only taken a central place in the country’s economy, but has also become the main means of supplying the market with necessary goods and services, increasing the incomes and well being of the population, and the most important factor in tackling the problems of employment.
Considerable attention is being paid to the development of transport communications as a decisive factor in the dynamic development of the country. One can hardly overestimate the role and importance of the 633 km-long Navoi-Nukus railroad, the 223 km-long Tashguzar­Baysun- Kumkurghan railroad, high- speed automobile road through the Kamchik mountain pass, which were constructed in recent years and reliably link all regions of the country into a single transport network, as well as opened a broad access to developing the richest mineral and natural resources in these regions.
The tangible results of economic reforms have allowed the steady increase of incomes and well being of the people and successful implementation of large-scale social programs.
The most illustrative fact is the growth rate in people’s salaries and incomes. In comparison with 2000 the real incomes of the population in 2006 increased 2,5-fold, and against to 1992 - 12-fold on average. By the end of this year the average salary in the republic is to increase to 200 dollars.
A strategically important task is put forward, i.e. to increase salary 2-2,5-fold every three years so that already in the years to come, taking into consideration the purchasing capacity of population, we will reach the level of those countries which provide high standards of income and well being for their citizens.
A modern labor market has been established. During the years of independence more than 5 million new jobs have been created and over 70% of them fall to the share of industrial production and services sector. Home based work in cooperation with large industrial enterprises has been actively developed. First and foremost, this allows the use of women’s labor power in cities and rural areas.
Considerable attention to and purposeful work on the problems of employment has allowed to change radically the situation in this sphere and reduce the unemployment rate in the country to 5,3% in 2006.
The conditions and quality of life of our population are consistently improving, particularly, in rural area. During the years of independence 36 thousand kin-long water supply and 72 thousand km-long gas supply networks were commissioned, which are accordingly 2 and 4 times more than the actual availability of these networks in 1991. As a result, provision of drinking water for the population supply has increased to 84%, including up to 77% in rural areas, and the provision of natural gas is up to 82%, with a figure of 78% in rural areas.
Public health and the protection of people’s health take an important place in the system of measures on improving the quality of life of population.
The system of medical servicing has been almost fully reconsidered during these years in Uzbekistan. At the moment, one of the main stages of its reforming is being completed. The creation of a specialized network of hospitals and medical units, which meet the highest requirements, in rendering free emergency and high qualified medical aid to the population is the most important and concrete result of this stage. Their activities are administered and coordinated by the Republican center.
Serious changes have taken place in the primary chain of public healthcare, especially in rural areas. Over 3,000 rural medical units supplied with modem diagnostic and therapeutic equipment have been established, replacing less effective midwifery centers and rural out­patients’ clinics.
The thorough reconsideration of the system of remuneration and incentives for medical workers has led to a considerable qualitative improvement in the medical services available to the population. As a result, within the last two to three years alone their salaries have increased more than two-fold.
Specialized clinics supplied with high-tech equipment and where the highly-skilled specialists perform the unique world-class surgery, saving and prolonging the people’s lives, now play a significant role in the system of public healthcare.
It is difficult to overestimate the role and importance of the extensive network of screening centers, which carry out systematic monitoring of the state of health of mothers-to-be and promote the birth of healthy children. Today the death rate of women in childbirth per 100,000 childbirths is 24 while in 1991 it was 65. The infant mortality rate has decreased during this period from 35 to 14 per 1000 babies.
Significantly, today such infectious diseases as smallpox, enteric fever, malignant anthrax, bubonic plague, and cholera have been completely eradicated in Uzbekistan.
The increase of life expectancy from 67 in 1990 to 72,5 in 2006, including for men – from 66 to 70, and women – from 70 to 74,6 is a concrete and illustrative result of measures taken to protect people’s health and improve their living standards.

Dear compatriots!
It goes without saying that Uzbekistan like other countries, which strive to occupy a worthy place in the world community and maintain peace and prosperity for their people, should have a clear, precise and deeply thought out strategy and program of actions that can fully meet the requirements and challenges of today’s rapidly changing world.
This strategy in the first instance should provide consistent continuation and deepening of the course of democratic, political, and economic reforms, social transformations that justify themselves, as well as ensure the strengthening of peace and accord in society. The strategy should provide implementation of a peaceful foreign policy and integration into the global economy. It is only this kind of policy that may create the appropriate conditions and a solid foundation to reach the long-term objective which we have set for ourselves – to join the ranks of the developed countries of the world.
The most important priority for us was and will be full implementation of the principle – “All for the sake of humanity and for the sake of its future”. All our reforms in the economic, political, state and legal spheres must ultimately be directed at creating decent living conditions, the steady increase of incomes and well being of our people, as well as establishing essential opportunities for people to develop their professional, intellectual and spiritual potential.

Dear compatriots!
In addressing and sincerely congratulating you on what is truly our greatest holiday – the Independence Day of the Republic of Uzbekistan – my heart is overflowing with a feeling of immense gratitude and pride for our country, for our nation, for everything that we have accomplished together with you during these years, and for the bright future which we will certainly build.

Thank you.

August 30, 2007

On the Session of the Cabinet of Ministers of the Republic of Uzbekistan

Session of the Cabinet of Ministers of the Republic of Uzbekistan took place on October 16, 2007 in Tashkent dedicated to the discussion of outcomes of social and economic development of the country for over the past of nine months, as well as elaboration of additional measures in terms of accomplishing the objectives of intensifying the economic reforms set by President Islam Karimov at the government session of February 12, 2007.
It has been noted that the systemic measures now underway to implement the seven most important priorities of economic program for 2007 provide for the dynamic achievement of the country’s macroeconomic development indicators, as well as successful realization of the main directions of the tax and budget policies, and timely execution of the State budget for 2007.
According to the Ministry of Economy, State Statistics Committee and Ministry of Finance of Uzbekistan for over the January-September 2007 the gross domestic product (GDP) growth has accounted for 9,8%. The economic growth has been secured thanks to the increase of the industrial production volume by 11,9%, agriculture — 3,5%, contractual construction works — 20,4%, retail trade — 18,4%, and paid services — 25,2%. The foreign trade circulation saw the high growth rates, above all, thanks to the growth of exports at the level of 41,8%. The State budget has been executed with a surplus.
Thanks to the favorable investment climate and conditions for attracting the investment, which have been created in the country, the investment volume has increased by 31,3%, including the direct foreign investments — more than twofold. A number of large industrial productions, the railroad line “Tashguzar-Baysun­Kumkurghan”, the booster station at the deposit of “Zevardy”, and other sites have been commissioned. Besides, the implementation of large investment projects to master the Tyubegatan deposit of potash fertilizers and deposit of polymetallic ores “Khandiza” has been started.
The measures to support the entrepreneurship, liberalize the conditions for their operations and curb the tax burden have served to increase the net share of the small business in GDP to 43,1% against 39% in the same period of last year.
The participants of the session have underscored that the adoption and implementation of a number of important decrees by President of the Republic of Uzbekistan for over the past time have significantly provided for further strengthening of targeted measures to socially support various layers of population, consistently undertaking the purposeful national programs in the sphere of education, cadres training, and healthcare. Thus, starting August 1, 2007 the amounts of salaries, pensions, stipends and allowances were increased by 25%. Within the framework of the State program “Year of social protection” alone UZS 370 billion have been channeled to the accomplishment of measures of social significance, including UZS 153 billion of the budget funds.
Besides, the session has paid a particular attention to the discussion of implementation of the key objectives defined at the joint session of chambers of Oliy Majlis, Cabinet of Ministers and Staff of President of the Republic of Uzbekistan on August 30 this year.
Also, the participants of the session have tackled the issues of further rational use of labor resources and raising the population’s life standards. They have also comprehensively analyzed the state of implementation of purposeful complex programs of expanding the home labor, sphere of services and development of cattle breeding at the personal subsidiary and farming entities. In line with territorial programs of employment nearly 490,000 jobs were created this year, including 82,000 — on the work contracts with enterprises, and 120,000 —in the sphere of services. 275,000 citizens engaged in the stockbreeding have received the workbooks.
The delegates to the session have underlined that the timely and quality preparation to the fall and winter period is the basis of successful work of all branches of economy, full functioning of housing resources, and social sphere facilities.
The session also saw the comprehensive discussion of efficiency of economic reforms being carried out in the agriculture. The cotton growers of the country harvested over 3,6 million tons of raw cotton, and harvesting is still underway in Uzbekistan. The countryside workers grew the good harvest of fruit and vegetable products, and vine. The network of agricultural firms on the processing of such products is on the rise. The systemic implementation of the purposeful complex programs provide for the consistent growth of the level and quality of life of the countryside population.
On the discussed issues the Cabinet of Ministers adopted a protocol resolution. According to the document, the main objective of heads of the Cabinet complexes, central economic agencies, all bodies of state and economic governance is to unconditionally implement the most important priorities set for 2007, as well as create the reliable guarantees for the sustainable development of economy with the early start of the next year.