INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 42

February 28, 2017

POLITICS
A monument to Abdulla Oripov will be erected in Karshi

Shavkat Mirziyoyev: mahalla should embody the principles of justice in our society

INVESTMENTS
Asl Oyna company in Sergeli district of the capital has commissioned a new Italian production line

FREE INDUSTRIAL ECONOMIC ZONE
Free economic zones “Urgut”, “Gijduvan”, “Qoqand” and “Hazarasp”

BUSINESS CLIMATE
Present pace of small economy

REFORM
Scientific Advancement

POLITICS

A monument to Abdulla Oripov will be erected in Karshi
The Head of State reviewed the designs of a monument to the people’s poet, Hero of Uzbekistan Abdulla Oripov and reconstruction of the mausoleum of Abul-Muin-Nasafi.
Abdulla Oripov was a person of a unique talent, who has made a great contribution to the development of Uzbek national literature with his dramatic and non-fiction works, poems and translations. His highly artistic, philosophical poetry captured the heart of our people.
In the years of independence, the poet dedicated his talent to chanting the freedom of our homeland, the honor and dignity of our people. For many years as the head of the Union of Writers of Uzbekistan, he was engaged in education and support of young poets and writers. Besides, he worked successfully as a member of the parliament and member of the Senate of Oliy Majlis of Uzbekistan.
Abdulla Oripov, who wrote the lyrics of the National Anthem of the Republic of Uzbekistan, will live forever in the memory of our people.
The monument to the poet will be erected on a street in Karshi and will be a symbol of pride and inspiration to young people.
The President underlined the need to improve the design, to establish a school named after Abdulla Oripov and a museum, dedicated to his life and work.
Abul-Muin Nasafi was a great scholar of the XI century, who made a great contribution to the development of Islamic culture. Today his works have a high scientific value.
The President gave his recommendations for further improving the mausoleum, creating necessary conditions for the pilgrims, organizing a library and translations of the works of the scientist.
(Source: UzA)

Shavkat Mirziyoyev: mahalla should embody the principles of justice in our society
President Shavkat Mirziyoyev visited “Gulshan” mahalla (community) in Karshi and inspected the conditions for effective interaction of workers of the citizens’ assembly and a prevention inspector.
Nowadays, the role and influence of mahalla in society is increasing. On the initiative of President Shavkat Mirziyoev a special attention is attached to improving the institutional framework of mahalla activities, expansion of its tasks and powers, strengthening its role in civil society.
Sustained measures to increase the efficiency of the work of mahalla citizens’ assemblies with the public, create conditions for them, are taken in Karshi. A new building of the citizens’ assembly of "Gulshan" mahalla.
All conditions are created in the contemporary building. Separate rooms with furniture, a computer and necessary literature have been allocated to the chairman of the mahalla, secretary, advisors, prevention inspectors. The room of prevention inspector is equipped with a system of video surveillance over the entire territory of mahalla.
Mahalla should embody the principles of justice in our society, the President said. It should be a place where people can express their views, present proposals, talk about their problems. The chairman of mahalla and the prevention inspector must know the situation and everyday concerns of each family. The main purpose of ongoing reforms in this area is the transformation of mahalla into an effective structure that the takes care of every resident day and night.
The officials were instructed to link together all the police stations in Karshi via broadband connection.
A house for the prevention inspector and his family is built next to the building of the citizens’ assembly of “Gulshan” mahalla. The head of state familiarized with the conditions in this house.
(Source: UzA)

INVESTMENTS

Asl Oyna company in Sergeli district of the capital has commissioned a new Italian production line
Today, the company produces 130 types of glass products to the German technology. The goods are manufactured from local raw materials - sand, dolomite, lime, calcium soda and others. Automated process control helps to ensure high quality of products.
The new production line will increase the production volumes of glass containers of various designs.
“Crucially, we will provide 150 boys and girls with jobs. Prior to handling sophisticated technologies, which envisage heating of the raw material to 1,450 degrees, the workers had undergone three-month training. The line will allow producing 120 tons of glass mass per day. The containers will be used for packaging processed fruit and vegetable products, as well as packaging and canning of oil and fat products,” said Husniddin Nurmuhamedov, CEO at Asl Oyna.
The 11 million euros technology was purchased through a Kapitalbank loan. Its main advantages include a ten percent higher energy efficiency against the existing ones. Experts say that the new line will increase the quality of glass making, grading and shaping. It is distinguished by high productivity and efficiency.
Today, Asl Oyna is considering the opportunity of expanding its presence in foreign markets. Last year, the company exported goods for $2.5 million, and is planning to scale up the index to $4 million in the current year. It is planned to produce a total of 120 million items of glass containers of various sizes in the current year.
“Previously, our company covered a certain part of the needs in glass by imports. There is no longer need in that. We are satisfied with the Asl Oyna products for their high quality and cheap price,” said Toshkentvino quality manager Dinora Kosimkhujayeva.
(Source: «Uzbekistan Today» newspaper)

FREE INDUSTRIAL ECONOMIC ZONE

Free economic zones “Urgut”, “Gijduvan”, “Qoqand” and “Hazarasp”
Free economic zones “Urgut”, “Gijduvan”, “Qoqand” and “Hazarasp” have been established by President Decree dated 12 January 2017.
According to the decree, Uzbekistan plans to create free economic zone “Urgut” (Samarkand region), free economic zone “Gijduvan” (Bukhara region), free economic zone “Qoqand” (Ferghana region) and free economic zone “Hazarasp” (Khorezm region).
The main tasks and directions of the activities of the new zones will be attraction of foreign direct investments of foreign and local investors to create modern capacities on production of demanded goods in foreign markets and import-replacing products with high added value.
New zones also ensure complex and efficient use of production and resource potentials of Samarkand, Bukhara, Ferghana and Khorezm regions.
The zones will also create modern production capacities in the sphere of deep processing, storage and packaging of fruits, vegetables and agriculture goods, textile, carpet, footwear and leather products, ecologic secure chemical, pharmaceutical, foods, electrotechnical industry, machinery and automobile, construction materials, and other directions.
Among the tasks of the zone is also deepening processing of localized production of high technological goods on the base of local raw materials and products via establishing close cooperation relations and development of industrial cooperation.
The document said that new SEZs will function during 30 years with opportunity to prolong. The special tax and custom preferences will be in force during this time.
State Committee of Uzbekistan on land resources, geodesy, cartography and state cadastre in cooperation with the Ministry of Economy and regional administrations will determine concrete borders of the new zones.
(Source: “Uzbekistan profile” - Information bulletin of Embassy of Uzbekistan in Belgium)

BUSINESS CLIMATE

Present pace of small economy
Having embarked on the path to independence and adhering to own model of economic development, Uzbekistan for historically short term has achieved great success which cause admiration and never ceases to amaze the world community. It became an integral part of world community and the global financial and economic market, the member of the UN, cooperates successfully with many international institutes and the organizations, it has on its territory of the embassy, diplomatic and other representative offices of many countries. takes necessary measures for improving level and quality of population’s life.
Official statistics shows that over the years of independence the population of Uzbekistan has increased by almost 11 million, maternal and child mortality has decreased more than by 3 times, average life expectancy of the population has grown from 68 to 75 years. Such fatal changes as not the statistics, but international experience testifies now, occur or can occur only in those countries where everything is being done to grow economy and for the human benefit, but not vice versa in any way. Uzbekistan, fortunately, is among such countries where interests of people are put in the first place.
Important result of economic reforms and institutional transformations is reinstating and transferring property to its true owners in the order established by the legislation, strengthening of non-state sector, developing the sphere of small business and private entrepreneurship which is called "small" economy today. The main production subjects of this sphere are small enterprises and micro firms. They are considered to be maneuverable, rather manageable, less capital-intensive and reacting quickly to market condition. Showing very productive work, small enterprises and micro firms often and to some extent act as competitors for the large enterprises. It is especially noticeable in such spheres as processing of agricultural production, secondary resources, manufacturing of furniture, various types of construction materials, footwear, clothe and other products.
Another remarkable feature of small enterprises is ability to adapt quickly to local conditions, customs and traditions. This quality allows them to find the wide field of activity in the sphere of goods and services the local population has traditionally got used. These are, for example, such spheres as handicraft, decorative art production, production of knives, stamping products, articles of needlework and embroidery, agricultural and house tools, as well as manufacturing of national food products. Subjects of "small" economy can be created and function on the basis of all existing forms of ownership, such as state, private, collective and other forms, and their founders may be not one, but several legal entities and individuals. They have the right to establish independently volumes and the range of production, to sell it at their discretion, to price goods, works and services, to define forms and size of hired workers salary, profit (income) allocation, etc. The "small" economy forming powerful layer of owners in the country and being the main source of growth of the income and employment of the population, increases the pace year by year. So, the share of small business has increased over the period from 2000 to 2015 in the industry from 12,9 to 40,6%, construction from 38,4 to 66,7, investments from 15,4 to 35,8, export from 10,2 to 27,8%.
Nowdays the enterprises of "small" economy make up to 45% industrial products, 98% of agricultural products and about 57% of the gross domestic product (GDP) of the country. The number of the employees in this sphere has reached about 78% of the general employment in economy. If in the early 90-s of the previous century the share of the income from business activity in structure of the population income made about 10%, nowadays its specific weight has increased up to 52% that considerably exceeds a similar indicator in the CIS countries. Great opportunities for development of business and entrepreneurship are opened by transfer of the state objects at "zero" value to private owners provided they undertake certain investment commitments. In 2015 the state-owned assets invested in the private sector exceeded 3 times assets allocated in 2014. For 570 state-owned assets realized at "zero" redemption value, investors have taken commitments worth 971,5 billion Soums (currency rates of CB RU from 28.02.2017, 1$= 3404.35 soums) and $49,3 million . Thanks to it the production potential of economy has increased to a certain extent, on the basis of the idle facilities advanced hi-tech productions appeared, new jobs were created. This positive process continued to occur in past 2016. Within nine months the private sector has purchased 373 state-owned assets with investment commitments for almost 314 billion Soums. 45 joint-stock companies (JSC) have sold state shares of over 15% of authorized capital of these companies to foreign investors that, among other things, has significantly reduced the number of the joint-stock companies with the state share in authorized capitals. It demonstrates another not less important change which happens in the republic today: the state really seeks to reduce its presence at economy, to develop and bring democratic foundations and the vital principles of society to new level, to joint faster the ranks of high developed countries of the world. The sphere of business and entrepreneurship is supported by many institutes, in particular, commercial banks. So, for example, last year only Ipoteka-bank of the country has allocated the credits worth over 993 billion Soums to small business and private entrepreneurship, and total volume of micro credits made 241,2 billion Soums. The bank has financed projects of 76 enterprises producing construction materials and tools worth 30,1 billion Soums. As a result, the enterprises of "small" economy, besides progress in production of goods and services, their sale, have increased the potential due to creating 17 thousand new jobs. Other banks also grant the similar support to small business. Thus, the "Microcreditbank" Joint stock bank this year intends to allocate the credits worth 1 trillion and 260 billion Soums for development of small business and private entrepreneurship , creation of new jobs, granting the bigger volume of banking services to population , especially to women and college graduates. At the same time the bank assumes to bring the volume of the loan portfolio up to 1 trillion and 370 billion Soums.
The first President of the republic Islam Karimov paid much attention to small business and private entrepreneurship and considered that neither society nor the state could successfully develop without them. One of his books "Strengthening spirit of Business in Society is the Guarantee of Progress" stresses: "We have to consider small business, private entrepreneurship as the factor providing the accelerated economic development of our republic. With the private, non-state sector manufacturing the main part of the production output, we can say safely that the economy became originally free and had found its future". The present country leadership, continuing and improving the chosen economic course, gives to development of "small" economy not less but more attention. The evidence is the Decree of the current President of Uzbekistan Shavkat Mirziyoev of October 5, 2016 "On additional measures to ensure the accelerated development of entrepreneurial activity, comprehensive protection of private property and substantial improvement of business climate". The measures provided in this document open the new horizons for business and entrepreneurship, counteract manifestation of any kind of bureaucracy and obstacles in this sphere, provide various privileges and preferences. It means that the state supports any positive aspirations of the existing and especially beginning businessmen if they don’t contradict the current legislation and are aimed not only at the personal benefit, but also wellbeing of a family, society and state.
In conclusion, today, especially the context of the goals set by the President Shavkat Mirziyoev at the enlarged meeting of the government dedicated to the socio-economic development of the country in 2016 and the most important priority directions of the economic program for 2017 requires, first of all, high-quality shifts in economy including in "small" one. For this purpose it is important to enhance a role of local authorities, first of all, the hokimiyat which are responsible for developing economy in regions, including for developing small business and private entrepreneurship. Business has to develop in regions not by the residual principle, but on an equal basis with development of the industry, construction, transport and other branches and industries or in the context of the latter.
Both large manufacturing enterprises and associations which shouldn’t become isolated within the departmental or corporate interests have to tell "word" here, and open the wide road to creation of small enterprises, including those in form of branches, subsidiaries and other acceptable structures as it is widely practiced in many developed countries. Undoubtedly, there are other opportunities for our domestic business to gain a civilized basis, to develop and increase the pace successfully. A framework of article doesn’t allow to cover and describe all opportunities. But, it would be desirable to tell about one aspect of this important issue which the President at the above meeting of the government has paid special attention to. It is firstly, personal responsibility of leaders of all ranks for the end results of work, secondly, general providing an accurate order and strong discipline and, thirdly eradiation of negative effects in the work. Implementation of these requirements is an important condition not only for increasing potential of "small" business, but also realizing tasks defined for 2017 and the subsequent periods.
(Source: «Business partner.uz» newspaper)

REFORM

Scientific Advancement
Last week, President Shavkat Mirziyoyev has signed a number of decrees aimed at the development of science management system in Uzbekistan, as well as the perfection of the structure and activities of the Academy of Sciences. Read more in the review of our correspondent.
It was kick started as the improvement in the performance of the Academy of Sciences, followed by the establishment of a state commission and agency for science and technology as well as a foundation to support and advance scientific and technological activities.
Agency in the Lead
In accordance with the Decree, the State Commission for Science and Technology headed by the Prime Minister of the Republic of Uzbekistan has been set up, tasked with elaborating and introducing for consideration an integrated government policy in the field of scientific and technical activity, in the identification of priority directions for innovation programs.
As the working body of the Commission, the Agency for Science and Technology of the Republic of Uzbekistan is being established on the basis of the terminated Coordinating Committee for Science and Technology Development under the Cabinet of Ministers. The agency is entrusted with forming a government mission for the provision of scientific and technical services in terms of the implementation of fundamental, applied and innovative research for sectors of the economy and social sphere.
These measures will contribute to elevate the organization system of scientific research activities to a new level which will consolidate the existing intellectual potential, eliminate narrow subjects and inefficient themes of research, as well as avoid duplication.
Another important issue to be resolved by this decree is the creation of Fund for support and development of scientific and technological activities in the form of a legal entity under the State Committee for Science and Technology.
Academy of Sciences Gains Momentum
The Decree on measures to further improve the activity of the Academy of Sciences, the organization, management and financing of research activities, signed by the President of the country, defines the main goals and priorities of its activity on the basis of modern requirements. In addition, to further bolster up the research infrastructure as part of the Academy of Sciences it is created a number of research institutions, as well as individual institutions will be back in its management. These measures will allow carrying out wide-range studies, concentrating the available scientific potential in various fields of science and forwarding it to the solution of actual problems of the socio-economic sphere.
The document focuses on the further betterment of the organizational structure of the Academy of Sciences via forming of branches of physical and mathematical and technical, chemical and biological, social and human sciences in it, as well as the creation of a new department of Navoi. This will allow for providing the systemic coordination of scientific researches in these areas, and will contribute to the efficient use of capacities of academic science in the comprehensive advancement of the Navoi region’s industry.
In addition, equating the chairmen’s status of Karakalpakstan and Navoi departments of the Academy of Sciences, as well as the Khorezm Academy of Mamun with the status of vice-president of the Academy of Sciences is a clear confirmation of the importance for the revival of the potential and status enhancement of the science in the regions.
A number of institutions were returned to the structure of the Academy of Sciences that were previously transferred to the system of institutions of the Ministry of Higher and Secondary Special Education. Thus, under the Academy there will be created the Vladimir Romanovsky Institute of Mathematics, the Institute of Nuclear Physics, the Institute of Ion-plasma and Laser Technologies named after U. Arifov, among others.
In the Decree special significance was also placed on the promotion of effective science. To this end, the government is to create a fund of material incentives for scientific workers of the Academy of Sciences who have achieved considerable results in scientific research.
Back to the Two-Level System
Less than four years ago Uzbekistan abandoned a two-tier system for training scientific and scientific-pedagogical specialists, but a recent decision envisages its return, admittedly with new notions and rules.
It follows from the 16 February Decree of the President of the country which stresses that the pace of socio-economic development of Uzbekistan necessitates rethinking of experience accumulated as part of single-stage system of postgraduate education, taking into consideration the best practices of some foreign countries in this sphere.
From July 1 this year, Uzbekistan will introduce a two-level system of postgraduate education. The new scheme is to include basic doctorate (with defending of a dissertation and conferment of the degree of Doctor of Philosophy, PhD, in various branches of sciences) and doctorate (with with defending of a dissertation and conferment of the degree of Doctor of Science, ScD).
In accordance with the Decree, the PhD degree can be awarded to individuals who have a master’s degree or higher education (a degree program) or have completed clinical residency (for medical sciences), and have defended the thesis. ScD degree will be awarded to individuals who have a degree of candidate of science or a PhD, or other equivalent degrees obtained in foreign countries, and have defended the thesis.
To the basic doctoral candidacy institution it shall be accepted the persons who have a master’s degree or higher education or completed clinical studies (residency), and a doctorate - persons with a degree of candidate of science or PhD or other equivalent degrees obtained abroad.
Persons who have attained aforementioned degrees and were assigned as an independent researcher shall also be permitted to defend doctoral theses for the degree of PhD and ScD.
A Separate Program
Another Decree of the head of state was dedicated to the creation of the eponymous Center on the basis of the current Genomics and Bioinformatics Center of the Academy of Sciences in the form of a government institution, as well as the approval of the program of measures for the advancement of this field in 2017-2020.
The activity of the center will be based on the program of measures for the development of fundamental and applied researches, as well as innovative works in the field of genomics and bioinformatics, bolstering scientific potential and material-technical base for the conduct of relevant researches for the period 2017-2020.
It is also planned to equip the center with modern scientific, technological and laboratory equipment, reagents and consumables required for scientific researches.
Scientific center employees will regularly participate in international conferences and seminars with the aim of further training and learning of scientific knowledge and technologies, and four young specialists will be sent annually to the six-month training at leading US research laboratories.
(Source: «Uzbekistan Today» newspaper)

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