IMG
03-04-2003, 03:02 PM
IMF: Uzbekistan not moving closer to restoring relations despite U.S. pressure
Fri Feb 28, 2:33 PM ET
By BURT HERMAN, Associated Press Writer
TASHKENT, Uzbekistan - Uzbekistan has moved no closer to signing an agreement with the International Monetary Fund despite pressure from the United States, and shows no signs of wanting to reverse punishing trade taxes that have emptied the country's bazaars, the head of an IMF mission to the country said Friday.
"They're very hesitant to give up real control of the economy and provide real economic freedom," J. Erik De Vrijer said of government officials at the end of a two-week trip to the Central Asian nation as part of an annual checkup on its economy.
The IMF withdrew from the country in 2001 over frustration with reforms, but returned last year for another look under U.S. pressure because of Uzbekistan's key help in providing an air base for use in operations in neighboring Afghanistan.
But even U.S. officials have recently been stronger in their criticism. In December, Alan Larson, U.S. under secretary of state for economic, business and agricultural affairs, said more cooperation with the IMF was essential for Uzbekistan to bolster investor confidence and that high trade tariffs had caused concern.
"There is a serious lack of knowledge and realism in the government in assessing the situation," De Vrijer said Friday evening at a meeting with international journalists. The Uzbek government asked him to cancel a news conference that was to be held at the end of his trip, De Vrijer said, apparently out of fears of the negative news that might be presented there.
Still, De Vrijer noted that there had been some positive developments in the Uzbek economy, such as low inflation and a closing of the gap between black market and official currency exchange rates along with limited measures to allow greater convertibility, a key international concern. There have also been positive reforms in the agricultural sector with fairer prices being paid to farmers for some crops, he said.
"We still think there is a momentum of reform but there is a very powerful current the other way," he said.
De Vrijer said the country's economic growth was slowing and was only 3 percent last year or possibly even lower — a figure that contradicts the government's claim last week of 4.2 percent growth. That could drop to 2 percent for this year if no reforms are made. Wages have gone down from an average of US$57 a month in 1998 to just US$29 a month last year, he said.
The lack of progress in signing an agreement with the IMF comes as Uzbekistan is set in May to host the annual meeting of the European Bank for Reconstruction and Development — where the country's economy will come under worldwide scrutiny.
Fri Feb 28, 2:33 PM ET
By BURT HERMAN, Associated Press Writer
TASHKENT, Uzbekistan - Uzbekistan has moved no closer to signing an agreement with the International Monetary Fund despite pressure from the United States, and shows no signs of wanting to reverse punishing trade taxes that have emptied the country's bazaars, the head of an IMF mission to the country said Friday.
"They're very hesitant to give up real control of the economy and provide real economic freedom," J. Erik De Vrijer said of government officials at the end of a two-week trip to the Central Asian nation as part of an annual checkup on its economy.
The IMF withdrew from the country in 2001 over frustration with reforms, but returned last year for another look under U.S. pressure because of Uzbekistan's key help in providing an air base for use in operations in neighboring Afghanistan.
But even U.S. officials have recently been stronger in their criticism. In December, Alan Larson, U.S. under secretary of state for economic, business and agricultural affairs, said more cooperation with the IMF was essential for Uzbekistan to bolster investor confidence and that high trade tariffs had caused concern.
"There is a serious lack of knowledge and realism in the government in assessing the situation," De Vrijer said Friday evening at a meeting with international journalists. The Uzbek government asked him to cancel a news conference that was to be held at the end of his trip, De Vrijer said, apparently out of fears of the negative news that might be presented there.
Still, De Vrijer noted that there had been some positive developments in the Uzbek economy, such as low inflation and a closing of the gap between black market and official currency exchange rates along with limited measures to allow greater convertibility, a key international concern. There have also been positive reforms in the agricultural sector with fairer prices being paid to farmers for some crops, he said.
"We still think there is a momentum of reform but there is a very powerful current the other way," he said.
De Vrijer said the country's economic growth was slowing and was only 3 percent last year or possibly even lower — a figure that contradicts the government's claim last week of 4.2 percent growth. That could drop to 2 percent for this year if no reforms are made. Wages have gone down from an average of US$57 a month in 1998 to just US$29 a month last year, he said.
The lack of progress in signing an agreement with the IMF comes as Uzbekistan is set in May to host the annual meeting of the European Bank for Reconstruction and Development — where the country's economy will come under worldwide scrutiny.