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starlifter
05-31-2002, 07:11 AM
It was in New York Times today. I decided to post it for people interested. Here is the hyperlink:

http://www.nytimes.com/2002/05/31/international/asia/31UZBE.html


New U.S. Allies, the Uzbeks: Mired in the Past
By EDMUND L. ANDREWS


TASHKENT, Uzbekistan — Two years ago, Poul Jahn employed 140 people as an importer of products like candy from Germany and Legos from Denmark.

Today, he is all but out of business, because the government stopped allowing him to convert his sales revenue from Uzbek som into dollars.

His difficulties are just one example of how hard it is to foster economic or other development in Uzbekistan and other Central Asian states that have become the newest United States allies because of their proximity to Afghanistan and the usefulness of their bases to American troops.

Under President Islam Karimov, a Soviet-era ruler here who has just extended his term until 2007, Uzbekistan has displayed little appetite for either democracy or open markets. Political repression is intense, corruption is widespread and economic policy owes more to Stalin than George W. Bush.

American leaders are eager to pump economic and military aid into Central Asian states, but the sort of bureaucratic thicket and isolationism encountered by Mr. Jahn makes it difficult to see how the World Bank will dispense the $1 billion earmarked for the region over the next three years.

Yet without economic reform to improve the prospects for people here, the attraction of radical Islamic movements to the poor and disaffected may continue to grow. Mr. Karimov has used the existence of such movements as the pretext for an often brutal clampdown on any expression of Islam, jailing thousands of people in sweeps across the country that have been repeatedly criticized by rights groups.

Every economy in Central Asia is smaller today than it was before the collapse of the Soviet Union in 1990. Poverty is intense, with average annual income of about $610 here and less than half that in neighboring Tajikistan and Kyrgyzstan.

Although leaders like President Karimov have vowed to support economic and administrative reform, the progress is at best uneven.

"Leaders are finding that they are getting a very different reception now than they got on Sept. 10," said James D. Wolfensohn, president of the World Bank, who himself made his first trip to the region only after the Sept. 11 terror attacks transformed the geopolitical realities of formerly forgotten Central Asia.

But, Mr. Wolfensohn added, "If they are going to take advantage of this opportunity for funds and support, then change will be necessary."

Uzbekistan illustrates how hard that change will be. Despite heavy pressure from the International Monetary Fund, it has yet to abandon its currency restrictions. Policy often seems to be set mainly to buttress Mr. Karimov's hold on power.

Meanwhile, a crazy quilt of new borders has disrupted trade and routine travel throughout the region.

Many people are trapped in enclaves, a few square miles of Uzbek or Tajik territory surrounded by Kyrgyzstan. Traders who once roamed freely across borders now need to wait in long lines, show visas and often pay bribes.


-- Continued --

starlifter
05-31-2002, 07:13 AM
-- Continued from previous page --

"People are trapped," said Natalia Ablova, director of the Bureau on Human Rights and Rule of Law, in Bishkek, Kyrgyzstan. "They cannot travel, cannot trade, cannot create business. Just travel through the region, and you will see the intolerable conditions that each country has created for its own citizens."

Uzbekistan is hardly alone. Turkmenistan, which has big oil and gas reserves, has become so autocratic and isolated that World Bank officials have all but stopped offering aid.

Tajikistan, ravaged by civil war through much of the 1990's, remains plagued by organized crime, heroin smuggling and violence. Few foreign companies venture to do business there, and the average yearly income is only about $200.

The new isolationism has greatly increased tensions throughout Central Asia. Uzbekistan is critically short of water, and constantly accuses Kyrgyzstan of hoarding it upstream. Kyrgyzstan says it needs to store water for hydroelectric power, because its neighbors will not supply it with enough electricity.

"You have this shadow play going on between leaders, whether it is about problems in the Aral Sea or about trade," Mr. Wolfensohn said.

The difficulties become abundantly clear on a trip through the Fergana Valley, a region that is just 200 miles long but is home to 10 million people and a big share of Central Asia's industry and agriculture.

A one-hour trip between the Kyrgyz cities of Osh, an ancient trading post, and Jalalabad now takes four hours — the main road cuts through Uzbek territory, and side roads are winding and small.

The enclave of Sokh, claimed by Uzbekistan but surrounded by Kyrgyz territory, is virtually fenced off from the outside world. Uzbek leaders argue that strong borders are essential to preventing attacks by militant Islamic groups, notably the Islamic Movement of Uzbekistan, which has roots in the Fergana Valley and launched several attacks from Tajikistan and Kyrgyzstan in 1999 and 2000.

Economics is also partly a factor in the Uzbek behavior — to keep prices for basic commodities like flour, cotton and gasoline artificially low, the government has imposed a mind-numbingly complex scheme of currency and trade controls.

At a checkpoint near the Uzbek city of Kuvasai, border police put the finishing touches last month on a massive new station that looks like the entrance to a palace.

The new station has multiple rooms for interrogation and searches; animal pens for the guard dogs; the latest in X-ray and bomb-sniffing equipment, and a canteen and recreation room for off-duty guards. Police officials boast that the "Welcome to Uzbekistan" sign can be seen from Kyrgyz mountainsides 50 miles away.

"You can see that there is nothing like this in Kyrgyzstan or even Kazakhstan," boasted the station's director, Col. Alisher Amanbaev. "This has everything you need for a really civilized process."

But not necessarily an easy one. There are no buses or trains that go straight across the border. Anyone driving a car from Kyrgyzstan will have to pay $45 for insurance, prohibitive for people in a country where the average annual income is $270.

"It would be good if we could just drive across," said Micha, a Kyrgyz hairstylist who waited along the railroad for a ride to Kuvasai. "Before, we would just go up to the border, stop and then drive through."

Economic life has been disrupted in scores of places. At a brick factory in Kuvasai, managers were told they would have to pay steep new tariffs on clay from a quarry just over the border in Kyrgyzstan. Factory managers located another source on their side of the border, but the land belonged to a collective farm. Local Uzbek authorities then ordered the farm collective to hand over the quarry land on a 50-year lease at no cost.

Although factory managers say they are selling more bricks than before, they are not selling any at all in Kyrgyzstan. A rival Kyrgyz brick factory is not selling anything here, either.

Uzbek attempts to control exchange rates have created an even bigger set of barriers. A handful of privileged companies, like the Daewoo automobile assembly plant, are allowed to purchase dollars at about 700 som to the dollar. Individuals are allowed to change limited amounts of money at 1,450 som to the dollar. The real exchange rate, available on the black market, is about 1,500 som to the dollar.

The effect is to wreak havoc in trade, swamping neighboring countries with artificially cheap Uzbek products and making most exports to Uzbekistan artificially expensive.

"We are a country with a majority of the population living below the poverty line," complained one top Kyrgyz official. "But trade with our Eurasian neighbors dropped 20 percent last year."

Mr. Jahn, owner of an importing company called Jahn International, built a thriving business here through much of the 1990's. But then the Uzbek government cut in half the amount of Uzbek som he could convert to dollars.

Then it reduced him to a quarter, and then it cut off his "allocation" entirely.

To stop him from changing money on the black market, Uzbek authorities limited bank withdrawals to little more than the amount needed for wages. To make sure Mr. Jahn did not cheat by selling products out the back door, they sent inspectors to check his warehouse inventories.

"I don't want to do business illegally," Mr. Jahn said. "Right now, I am basically out of business."

Under pressure from the International Monetary Fund, change may be under way. Last month, Uzbek authorities announced that citizens would no longer have to show them airline tickets and travel documents in order to exchange Uzbek som for dollars. It was a limited offer — no more than $1,000 per person every three months.

By Uzbek standards, it is a major reform.

stud
05-31-2002, 03:45 PM
it's really good that such a respectable NT focuses on Uzbekistan.

The article shows necessity of fostering economic development in Uzbekistan, which became a new US ally.

The article is critical, it stresses major problems of UZ. Nevertheless it does not provide for in-depth analysis of problems, in some places gives misleading interpretation of events. e.g.
"...Under President Islam Karimov, a Soviet-era ruler here who has just extended his term until 2007, Uzbekistan has displayed little appetite for either democracy or open markets. Political repression is intense, corruption is widespread and economic policy owes more to Stalin than George W. Bush..."
or
By Uzbek standards, it is a major reform.

Here the author seems to be not well-informed about recent developments occuring in UZ, in particular:

1. the term of the president I.Karimov was extended by the Parliament, based on results of nationswide referendum from Februar 2002, one should have been more precise and selective in making claims, that "somebody himself did smth. for his own";
2. during the visit of uzbek president to the US it was proclaimed, that UZ will foster both economic and democratic reforms, as well as improve human rights protection in the republic. Fisrt moves have been done, which were widely lithened in mass-media eg removing media censorship, legal cases, where abusive police officers were punished for crimes etc;
The authour is likely not aware of this.
3. comparison of current uzbek economic policy to the one of Stalin or Bush does not make any sence.

and second quote on "major reform by Uzbek standards" should be considered as a private opinion of the author or his understanding of "Uzbek standards", but not necessarily as a "major reform by Uzbek standards".
:) regards

Freestyler
06-06-2002, 11:27 AM
it's really good that such a respectable NT focuses on Uzbekistan...

Eto napomnilo mne aforizm Oscara Wilda:
There is one thing worse than being spoken badly about, and that is NOT being spoken about!
:-D

Mol, horosho, chto na nas obratili vnimaniye, nu i chto chto kritikuyut. :)

stud
06-08-2002, 09:19 AM
Freestyler (Jun 06, 2002 11:27):
it's really good that such a respectable NT focuses on Uzbekistan...

Eto napomnilo mne aforizm Oscara Wilda:
There is one thing worse than being spoken badly about, and that is NOT being spoken about!
:-D

Mol, horosho, chto na nas obratili vnimaniye, nu i chto chto kritikuyut. :)

to chto eto napomnilo tebe aforizm Oscara Wilda ili basnyu Krilova ili skazku babushki mozhesh ostavit pri sebe,

ti luchshe viskazhis po teme :)

Freestyler
06-10-2002, 11:07 AM
stud, ti mne ne ukazivay chto pisat', a chto net, vsyo ravno ne poslushayu :) !

A po teme ya uje viskazivalsya, v drugom topike, ili i eto mimo glaz tvoih proletelo? :) Ne udivitel'no. :)

stud
06-15-2002, 09:59 AM
U.S. Sees Some Progress on Human Rights in Uzbekistan

(State Dept.'s Lorne Craner media roundtable in Tashkent June 7)
(2420)

The United States is pleased with signs of progress on human rights
issues in Uzbekistan and wants to see continued improvement, said
State Department official Lorne Craner, who recently made his second
visit to Uzbekistan this year.

http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=02061403.wlt&t=/products/washfile/newsitem.shtml