Tashkent, the capital of Republic of Uzbekistan, was the host to one of the major events in the Central Asian region where experts and diplomats from 36 countries had gathered to exchange views on the region in order to help forming a strong bloc for cooperation.

On February 19, the two-day International Conference “Central Asian connectivity: challenges and new opportunities” kicked off in Tashkent.

The conference was organized by the Ministry of Foreign Affairs of the Republic of Uzbekistan and the UN Regional Center for Preventive Diplomacy for Central Asia (UNRCCA).

The forum started with a plenary session “New dynamics of regional cooperation in Central Asia – a view from the region”.

Then the conference continued in the format of breakout sessions. Foreign experts from 36 countries, as well as representatives of leading analytical, scientific structures of Uzbekistan will exchange views on regional security issues, cooperation in trade-economic, transport-communications, water-environmental, energy, tourism, cultural-humanitarian spheres.

The event, held within the framework of implementation of the main priority areas of foreign policy of the Republic of Uzbekistan designated by the Head of the state, was organized by the Ministry of Foreign Affairs and the UN Regional Center for Preventive Diplomacy for Central Asia.

It is attended by over 100 representatives from analytical centers of Afghanistan, the United States, Belgium, the United Kingdom, Iran, Germany, Georgia, India, Israel, Spain, Kazakhstan, Canada, Egypt, China, Korea, Kuwait, Azerbaijan, Kyrgyzstan, Latvia, Malaysia, the Netherlands, Pakistan, Poland, Russia, Saudi Arabia, Thailand, Turkey, Hungary, Ukraine, Uzbekistan, Finland, France, Sweden, Japan.

The conference also brought together participants of organizations of the European Union and America, regional structures of the Arctic Advisory Board, as well as the World Bank, the World Trade Organization, the European Investment Bank and other international financial institutions.

The international conference is of great importance in discussing current issues, developing common approaches and defining objectives for the future.

Strengthening cooperation in trade, economy, transport, communications, security, ecology, energy, and tourism was discussed at the international conference. Views were exchanged on cooperation in education and science, current initiatives were considered.

It was emphasized that further deepening of trade-economic cooperation in Central Asia is directly related to the effective implementation of free trade order in the region, simplification of customs and border procedures.

 

Participants of the conference gave a positive assessment to consultations of the region’s countries, which took place in a confidential atmosphere, and noted that continuation of activities in this direction will serve to further expand cooperation in trade, economy, transport, cultural-humanitarian, and other spheres.

Views were exchanged on the effective use of capabilities of the United Nations Multi-Partner Human Security Trust Fund for the Aral Sea Region, which was initiated by Uzbekistan in mitigating the consequences of the Aral tragedy, establishing peace, restoring the socio-economic infrastructure in Afghanistan.

Special attention was paid to issues of creation of transport-logistics systems that ensure the access of the region’s countries to river ports and international markets, increasing the share of the tourism sector in the economy through the effective use of existing tourism opportunities.

On the first day of the conference, sectional meetings were held on “Trade-economic cooperation”, “Ensuring regional security”, “Ecology and energy, rational use of water”, “Tourism, cultural-humanitarian relations”. Analytical reports of domestic and foreign scientists and experts were heard and discussed.

On February 20, panel sessions were on “International perception of the new dynamics of regional cooperation: promising areas of cooperation between Central Asia and non-regional countries” and “International experience of regional cooperation and possibilities of its use in Central Asia”.

Uzbek Foreign Minister Abdulaziz Kamilov inaugurated the conference where he welcomed the participants and expressed hope the conference would become a successful event for the benefit of the region.

The Uzbek minister in his inaugural speech pointed to the significance of the Central Asian region, adding that it can be a strong bloc like other economic or political blocs like ASEAN or Mercosur. He reiterated that the region could take inspiration from other regional organizations with sticking to the characteristics of the Central Asia. He went on to say that regionalization is more important than globalization in forming the bloc.

Kamilov asserted that scientific research and study are needed in all sectors for the future of the member states. He admitted that such conferences would lead to finding practical solutions for regional cooperation, adding that security and economy are two major issues for the regional cooperation.

But he reiterated that the region needs a strong bloc rather than organization and all the Central Asian states are trying to boost cooperation together as well as their neighboring countries.

He underlined that mutual cooperation between the regional states plus cooperation with neighboring states are very crucial for strengthening the bloc.

Kamilov also pointed to the meeting of leaders of the Central Asian Countries which was held in Samarkand in 2018, adding that it was a major step for the future of the regional cooperation. He went on to say that Tashkent is to host the leaders of the region as well as Afghanistan in April 2019 where the outcomes of the conference will be discussed in the meeting.

“The rapprochement of the countries in the Central Asian region is not against anyone’s interests,” Kamilov noted.

“Investing in regional cooperation contributes to developing Central Asia into a stable and prosperous region, thus making it a reliable and predictable partner,” he added.

Meanwhile in her opening speech, Natalia Gherman, special representative of the UN secretary-general as well as head of the UNRCCA, said that the conference will produce specific recommendations to the presidents of the Central Asian countries, who will gather in Tashkent to discuss common regional issues in April.

Foreign experts from 36 countries and representatives of leading analytical and scientific organizations in Uzbekistan exchanged views on regional security issues, as well as cooperation in trade, economic, transport, communications, environmental, humanitarian and other areas.

The idea for establishing a regional bloc was raised when the Central Asian states gathered in Samarkand, Uzbekistan, to discuss violence and terrorism in Afghanistan.

Uzbekistan played its effective role in Samarkand meeting and paved the way for further meetings and the idea for regional cooperation bloc. Of course UNRCCA was also behind the idea for pushing  security in the Central Asian region.

A comparative examination of the structures for regional cooperation in the Nordic Council, ASEAN, Mercosur and the Visegrád Group leads to a very specific and highly significant conclusion, namely, that institutions matter. The relative weakness and ineffectiveness of Mercosur and the Visegrád group is a direct consequence of their weak institutional structures. ASEAN and the Nordic Council, by contrast, derive their effectiveness from the fact that over more than half a century they have focused serious attention on strengthening their institutional structures.

Central Asia stretches from the Caspian Sea in the west to China in the east and from Afghanistan in the south to Russia in the north. The region consists of the former Soviet republics of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. But countries like Afghanistan and China can help the region to accelerate their economies.

The region with over 70m population needs to work on mutual basis first and then collectively. Because of its vast area and land, security is the major issue for the countries.

Uzbekistan as one of the two leading countries of the region has accelerated in establishing the bloc by hosting meetings and conferences. Since Shavkat Mirziyoyev took office as president in Uzbekistan, the country has begun a new era and the policies shifted to interaction with the regional states and the world. Alluring foreign investors for the development in the country was prioritized. To attract foreign investments, the country decided to give incentives for investors and industry in the country is progressing fast.

Recently Moody’s Investors Service (Moody’s) has assigned a first-time long-term issuer rating to the Government of Uzbekistan at B1.

Uzbekistan, which has already been assigned BB- rating by Fitch and S&P, now holds three major global agencies’ ratings ahead of its debut eurobond issue in London, Britain, this week.

Moody’s B1 rating means that the country is vulnerable, but now it can fulfill its financial obligations.

In addition, Moody’s has also assigned a provisional rating of (P) B1 to the Government of Uzbekistan’s forthcoming medium-term note program and a B1 rating to the planned drawdown from the program.

Moody’s rated Uzbekistan’s economic, fiscal strength and susceptibility to event risk as “moderate,” but noting that the country’s institutional strength was “very low” based on economic growth, demographic trends, implementation of new policy tools that would pave the way for a transition to a market-based economy and other factors.

“The stable outlook reflects Moody’s expectations for balanced risks both over the near and medium term. Upside and downside risks mainly relate to the credit implications of the reforms now under way,” Moody’s said.

Uzbekistan’s reform program could strengthen its credit profile if it leads to a sustained increase in productivity growth and competitiveness and if it improves government and policy effectiveness, according to the rating agency.

The Gross Domestic Product (GDP) in Uzbekistan expanded 5.2 percent year-on-year in the first nine months of 2018. GDP Annual Growth Rate in Uzbekistan averaged 7.72 percent from 2006 until 2018, reaching an all-time high of 9.80 percent in the third quarter of 2007 and a record low of 3.60 percent in the first quarter of 2006.

GDP Annual Growth Rate in Uzbekistan is expected to be 5.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, it is expected GDP Annual Growth Rate in Uzbekistan to stand at 4.80 in 12 months-time. In the long-term, the Uzbekistan GDP Annual Growth Rate is projected to trend around 5.20 percent in 2020, according to the econometric models.

Meanwhile Uzbekistan granted visa-free entry to citizens of 45 countries to boost tourism, which the government views as vital for economic growth.

The countries benefiting from a 30-day visa waiver that went into force include the majority of European countries including Britain as well as Australia, Canada, Argentina and Chile. The United States is a notable exception.

The country has made tourism a priority to reduce its dependence on commodity exports.

The government is keen to show off the lavish Silk Road heritage of ancient cities such as Bukhara, Khiva and Samarkand.

Earlier, Uzbekistan granted a 30-day visa waiver to Germany while France became the first European Union country to benefit from the measure last year.

Uzbekistan’s tourism committee said last month that annual visitor numbers for 2018 were 5.3 million, double the figure for 2017.

President Mirziyoyev has reversed a number of policies that hampered tourism under his late predecessor Islam Karimov.

Uzbekistan already offers visa-free entry to visitors from Turkey, Israel, Indonesia, South Korea, Malaysia, Singapore and Japan, in addition to long-standing reciprocal visa-free entry for citizens of most former Soviet countries.

Uzbekistan is working to join the World Trade Organization and it is currently an observer in the body. In case the country completes joining the WTO, it can flourish its economy because of its huge potentials.

The country with almost 33m population has good labor force which can set bright future for its economy.

By: F. Taherpour Asl