Monday, 25 April 2022 00:00

A New Horizon for the United States-Uzbekistan Relationship Featured

By Mamuka Tsereteli, Ph.D. and Anthony B. Kim

April 25, 2022

https://www.heritage.org/asia/commentary/new-horizon-the-united-states-uzbekistan-relationship

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America’s partnership with Uzbekistan has become more relevant than ever. This former Soviet state is an ally against Russia, has an emerging market-based economy, and possesses significantly undervalued natural assets.

Capital Tashkent’s relationship with Washington entered what has been called “a new era of strategic partnership” during President Shavkat Mirziyoyev’s historic first visit to the White House in 2018.

More recently, during his March 9 meeting with Uzbek Foreign Minister Abdulaziz Komilov, Secretary of State Antony Blinken underscored, “We appreciate the strategic partnership between Uzbekistan and the United States, the work that’s being done through that; very much welcome the strong humanitarian support that you’ve been providing to the Afghans on one hand and now Ukrainians on the other.”

In his recent speech to Uzbeki lawmakers, Komilov said that Uzbekistan does not recognize the pro-Russia separatist-controlled districts in Ukraine’s Donbas region and called for a “peaceful solution” to end Russia’s unprovoked invasion of Ukraine.

Indeed, the U.S.-Uzbekistan relationship has gained greater strategic importance with the passage of time. The United States was among the first countries to recognize Uzbekistan’s independence from the Soviet Union in 1992 and has maintained growing bilateral relations in the 30 years since.

Uzbekistan is strategically located and the most populous country of Central Asia. Though it still has a long way to go, the country has been transitioning from a command-and-control economy to a market-based economy, propelled by a wide range of reforms, particularly since 2017.  

According to The Heritage Foundation’s annual Index of Economic Freedom, the Uzbekistani economy has grown notably over the past five years. Economic freedom has also advanced during the same period. With large increases in scores for investment freedom and financial freedom, Uzbekistan has recorded a 3.4-point overall gain in economic freedom since 2017 and is in the middle ranks of the “Mostly Unfree” countries.

Also notable is that the country, which is the eighth-largest producer and the 11th-largest exporter of cotton in the world, has eradicated systemic forced labor and systemic child labor, according to new findings by the United Nations’ International Labour Organization. That progress has resulted in the end of the international boycott of Uzbek cotton.

Going forward, emerging economic challenges further complicated by an elevated level of uncertainty will require significantly accelerated reform efforts for Uzbekistan to fully realize its economic potential.

The country is making progress in reforming its governance and public services, however, taking steps that are having an impact on the lives of ordinary citizens and making it easier for businesses to operate there.

It is also strategically better positioned than other countries of Central Asia to meet evolving new challenges: It does not share borders with Russia nor is it a member of either the Russian-led Eurasian Economic Union or the Collective Security Treaty Organization, which means it is significantly less dependent on Russia than many other former Soviet states.

But mitigating these emerging risk factors will require a new, even more dynamic economic strategy.

First and foremost, the government needs to further strengthen macro-economic stability and ensure structural reforms by supporting the private sector and reducing the role of the state in the economy. That includes boosting the privatization of state assets in all sectors.

Privatization, as well as tax and regulatory reforms, should be focused on attracting more foreign direct investments from a wide range of countries. Companies with solid investment plans, management, and technological know-how should be given priority. Uzbekistan has significantly undervalued assets, and with the proper packaging and government incentives, it should attract sizable foreign investment.

While the future success of Uzbekistan will rest in large part on the shoulders of Uzbeks themselves, America’s continuing strategic support remains essential for forwarding the reforms Uzbekistan has been charting.

Fundamentally, America’s economic engagement with Uzbekistan will be best exercised through constructive private-sector engagement that can be the catalyst for a sustainable and comprehensive economic transformation for the nation.

As this year marks the 30th anniversary of the establishment of diplomatic relations between the United States and Uzbekistan, it is in America’s interest to push forward this opportunity to enhance practical bilateral trade and investment with this vital partner in Central Asia.

Read 1583 times Last modified on Tuesday, 26 April 2022 15:32

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News

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    Case Studies

    Each study below can be freely downloaded in PDF format.

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    2018-04-Kazakhstan-SecularismReligion and the Secular State in Kazakhstan
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    1806-UZ-coverReligion and the Secular State in Uzbekistan
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    Articles and Analyses

    Svante E. Cornell, "Religion and the State in Central Asia," in Ilan Berman, ed., Wars of Ideas: Theology, Interpretation and Power in the Muslim World, Lanham, MD: Rowman & Littlefield, 2021.

    Svante E. Cornell, "Central Asia: Where Did Islamic Radicalization Go?" in Religion, Conflict and Stability in the Former Soviet Union, eds. Katya Migacheva and Bryan Frederick, Arlington, VA: RAND Corporation, 2018.

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    ------------------

    Develop a substantial and prolonged Western initiative on the Armenian-Azerbaijani conflict.

    o This initiative must be led by the United States, in close consultation with its European partners – primarily the EU Commission and External Action Service, and France. Barring some process to reinvigorate the Minsk Process – a doubtful proposition given Western-Russian relations in the foreseeable future – Western leaders must be prepared to bypass that process, utilizing it where appropriate but focusing their initiative on developing direct negotiations between the Armenian and Azerbaijani leaders.

    o The U.S. and its European partners must abandon the practice of relying solely on the Minsk Group co-chairs to resolve the Karabakh conflict. These diplomats have contributed greatly to formulating a workable framework agreement. However, strong and sustained U.S. Government leadership from the top level is needed to complement or, failing that, to replace the Minsk Process. In practice, this means the expressed support of the President, involvement of the White House, and leadership manifested in the appointment of a distinguished citizen as Special Envoy for the resolution of the conflict.

    o The EU must take a more clearly defined and substantial role in the process, by integrating to the highest degree possible the French co-chairmanship of the Minsk Group with EU institutions. While Washington will need to take the lead on the political side, it would be natural for the EU to take the lead in organizing an international development program for the currently occupied Azerbaijani provinces and Karabakh itself. That effort, too, would need to be led by a senior EU figure.

    --------------------------------------------

    In 2011, CACI & SRSP helped launch an extensive study of the steps needed for the post-conflict rehabilitation of Azerbaijan's occupied territories, in cooperation with Eldar Ismailov and Nazim Muzaffarli of the Institute for Strategic Studies of the Caucasus. The monograph "Basic Principles for the Rehabilitation of Azerbaijan's Post-Conflict Territories" can be accessed here

     

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    Svante E. Cornell, "Can America Stop a Wider War Between Armenia and Azerbaijan?", The National Interest, October 2020

    Brenda Shaffer and Svante E. Cornell, Occupied Elsewhere: Selective Policies on Occupation, Foundation For Defense of Democracies, January 2020. 

    Brenda Shaffer and Svante E. Cornell, "The U.S. Needs to Declare War on Proxies", Foreign Policy, January 27, 2020

    Svante E. Cornell, “The Raucous Caucasus”, American Interest, May 2017

    Svante E. Cornell, Small Nations and Great Powers: A Study of Ethnopolitical Conflict in the Caucasus, RoutledgeCurzon, 2001.

    Svante E. Cornell, The Nagorno-Karabakh Conflict, Uppsala University, 1999

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     “Cross-Border Escalation between Armenia and Azerbaijan,” Central Asia-Caucasus Analyst, 9/25/20, Natalia Konarzewska

    Russia and Turkey: Behind the Armenia-Azerbaijan Clashes?”, Central Asia-Caucasus Analyst, 8/31/20, Avinoam Idan

    Armenia and the U.S.: Time for New Thinking?”, Central Asia-Caucasus Analyst, 10/2/19, Eduard Abrahamyan.

    Why Washington Must Re-Engage the CaucasusCentral Asia-Caucasus Analyst, 7/8/19, Stephen Blank

    Azerbaijan’s Defense Industry Reform”, Central Asia-Caucasus Analyst, 5/7/19, Tamerlan Vahabov.

    Military Procurements on Armenia's and Azerbaijan's Defense Agendas”, Central Asia-Caucasus Analyst, 3/27/19, Ilgar Gurbanov

    Armenia's New Government Struggles with Domestic and External Opposition,” Central Asia-Caucasus Analyst, 3/20/19, Armen Grigorian.

    Bolton's Caucasian Tour and Russia's Reaction”, Central Asia-Caucasus Analyst, 12/17/18, Eduard Abrahamyan.