Uzbekistan

Uzbekistan is one of the Central Asian civilizations that has possessed a rich culture and heritage for centuries. This civilization has made numerous contributions not only to Central Asia but to world civilization, and has produced many thinkers, poets, scientists and statesmen who have left countless and significant works. In particular, the Uzbek national consciousness that flourishes among all segments of society is one of the important factors effective in preserving this historical heritage that has reached from the past to the present day. Uzbekistan borders Kazakhstan, Tajikistan, Afghanistan, Kyrgyzstan and Turkmenistan. Following its declaration of independence from the Union of Soviet Socialist Republics on 1 September 1991, it also confirmed the declaration of independence through a referendum held on 29 December 1991. After confirming its independence, Uzbekistan, particularly by establishing economic relations with strong countries, managed to become one of the most powerful countries in Central Asia in a short period of time. Today it is in fierce competition with Kyrgyzstan for Central Asian leadership. During the period of the Soviet Union's collapse, Uzbekistan was operating under an economic policy based solely on raw material production and dependent on the Soviets. In the periods before independence, Uzbekistan, which was among the countries with the lowest per capita national income among Soviet States, achieved economic momentum following its declaration of independence through economic policies of its own making. The Republic of Uzbekistan is implementing important policies to increase the participation of foreign investors. At this stage, priority has been given to sectors arising from necessity. Leading these sectors are pharmaceutical and medical equipment manufacturing, establishment of modern telecommunications systems, R&D investments, tourism, textiles and light industry. When we look at the period of the Soviet collapse, while it was a state that maintained commercial relations only with former Soviet countries, today it has developed economic relations with 180 countries. In particular, stable policies in banking and finance played an important role in raising economic growth to 8.5% in 2010.

The Most Natural Element Determining the Economy: "Natural Resources"

Due to its geographic advantage, Uzbekistan possesses very important natural resources. While currently holding 171 petroleum and natural gas reserves, natural gas in particular holds a very important place in the country's economic growth. With natural gas reserves equivalent to 1.58 trillion m³, 40% of the produced natural gas is exported. Uzbekistan meets its own natural gas needs while exporting the surplus. Russia and China lead the countries to which it exports, followed by Tajikistan and Kyrgyzstan. Approximately 18 billion m³ of natural gas exports are realized to these countries. 60% of the country's oil and natural gas deposits are concentrated in the Bukhara-Khiva region, with the remainder spread across the Ustyurt, South-West Hissar, Surkhandarya and Fergana regions. The operation of Uzbekistan's first natural gas field dates back to the 1956. Today there are 108 natural gas fields. Uzbekistan has three important pipelines that carry its natural gas to the international arena. These are the Central Asia-Center, Central Asia-China and Bukhara-Ural pipelines. However, as three pipelines proved insufficient, the Uzbek Government launched project work for new pipelines. One of these is the Tashkent-Bishkek-Almaty Pipeline. Holding considerable importance for the region, this pipeline has taken time to complete due to payment delays by Kazakhstan and Kyrgyzstan and unauthorized usage occurring in the section of the pipeline passing through Kyrgyzstan's border. According to information provided by the Uzbek Government, the natural gas export volume is targeted to reach approximately 66 billion cubic meters by the 2020s. Recent regional and international platforms in the energy sector have witnessed many positive developments. Foreign investment in the oil and natural gas sector proceeds at 60%. Thus, developments in the oil and petrochemical industry bring incentives along with them.

The state has placed cotton trade under its guarantee. Farmers are obliged to deliver all the cotton they produce to the state. Furthermore, cotton trading in the country is illegal.

The most important mineral resource in Uzbekistan is gold. Total gold reserves are around 3,350 tons. Of the 41 gold mines opened, only 9 are currently operational. In recent years, 87 tons of gold have been produced from operational gold mines. While British and American companies are active in gold production, the Uzbekistan Council of Ministers has also approved a project to establish a joint venture with an Australian company for gold exploration. According to the Uzbekistan State Committee for Geology and Mineral Resources, with the gradual opening of new mines in the country, an increase in the country's gold reserves is expected. Uzbekistan possesses numerous salt deposits, marble, aluminum and raw materials for construction materials. In addition, a metallurgical plant has been established in Bekabad to process flint, porcelain minerals, iron, manganese and chromium deposits. Uzbekistan is also rich in coal deposits and possesses 3 major coal fields. Moreover, since producing much greater yield from coal by converting it to gas and liquid form is very important, an underground gas operating station has been established in the Angren Coal Mine and 59.9 billion m³ of gas is produced annually.

Uzbekistan: The Land of White Gold

One of Uzbekistan's most important sources of livelihood is cotton. Among other Central Asian republics, Uzbekistan, which has the most irrigated land, is the highest quality cotton producer in an area of approximately 40,000 km². With annual cotton production exceeding 10 million tons, it ranks among the world's largest cotton-producing countries. Three-quarters of the exported cotton is processed within the country. The state has placed cotton trade under its guarantee. Farmers are obliged to deliver all the cotton they produce to the state. Furthermore, cotton trading in the country is illegal.

Turkey-Uzbekistan Economic Relations

The Republic of Uzbekistan is implementing important policies to increase the participation of foreign investors. At this stage, priority has been given to sectors arising from necessity. Leading these sectors are pharmaceutical and medical equipment manufacturing, establishment of modern telecommunications systems, R&D investments, tourism, textiles and light industry. With an 8% economic growth rate, Uzbekistan has been identified by the International Monetary Fund (IMF) as one of the world's fastest-growing economies. Targeting the EU, Middle East, South East and East Asian and African markets, Uzbekistan has further strengthened its economic ties with Turkey in recent years. Looking at past years, we see that mining products led the sectoral distribution of Turkey's imports from Uzbekistan. If we categorize the industrial products that follow, textiles rank high. In the sectoral distribution of Turkey's exports to Uzbekistan, machinery and transport vehicles, textile products, chemicals and plastics, metal and furniture items, and paper-cardboard and paper-based products are the main categories.