Changes

Uzbekistan shares borders with [[Kazakhstan]], [[Kyrgyzstan]], [[Turkmenistan]] and [[Afghanistan]].  In the north west tip of Uzbekistan lies the [[Aral Sea]].  The largest city in this area is Nukus which was described in the Lonely Planet guide as the "saddest place on earth" due to the rapidly shrinking water supply of the Aral Sea, as well as its heavy pollution due to weapons testing.  The Ferghana Valley is the most fertile and heavily populated area of Uzbekistan.  Prominent cities include the historical city [[Kokand]] that was once the capital of the Kokand Dynasty and Ferghana.  [[Samarkand]], [[Bukhara]] and [[Khiva]] are famous ancient cities.

Uzbekistan shares borders with [[Kazakhstan]], [[Kyrgyzstan]], [[Turkmenistan]] and [[Afghanistan]].  In the north west tip of Uzbekistan lies the [[Aral Sea]].  The largest city in this area is Nukus which was described in the Lonely Planet guide as the "saddest place on earth" due to the rapidly shrinking water supply of the Aral Sea, as well as its heavy pollution due to weapons testing.  The Ferghana Valley is the most fertile and heavily populated area of Uzbekistan.  Prominent cities include the historical city [[Kokand]] that was once the capital of the Kokand Dynasty and Ferghana.  [[Samarkand]], [[Bukhara]] and [[Khiva]] are famous ancient cities.

*Area: 447,400 sq. km., slightly larger than California.

*Area: 447,400 sq. km., slightly larger than California.

*Major cities: Capital--Tashkent (pop. 2.5 million); Samarkand (600,000); Bukhara (350,000).

*Major cities: Capital—Tashkent (pop. 2.5 million); Samarkand (600,000); Bukhara (350,000).

*Terrain: Flat-to-rolling sandy desert with dunes; broad, flat, intensely irrigated river valleys along Amu Darya, Syr Darya; shrinking Aral Sea; semiarid grasslands surrounded by mountainous Tajikistan and Kyrgyzstan in east.

*Terrain: Flat-to-rolling sandy desert with dunes; broad, flat, intensely irrigated river valleys along Amu Darya, Syr Darya; shrinking Aral Sea; semiarid grasslands surrounded by mountainous Tajikistan and Kyrgyzstan in east.

*Climate: Mid-latitude desert; long, hot summers, mild winters.

*Climate: Mid-latitude desert; long, hot summers, mild winters.

*Religions: Muslim 90% (mostly Sunni), Eastern Orthodox 5%, other 3%.

*Religions: Muslim 90% (mostly Sunni), Eastern Orthodox 5%, other 3%.

*Languages: Uzbek 74.3%, Russian 14.2%, Tajik 4.4%, other 7.1%.

*Languages: Uzbek 74.3%, Russian 14.2%, Tajik 4.4%, other 7.1%.

*Education: Literacy--97% (total population).

*Education: Literacy—97% (total population).

*Health (2005 est.): Life expectancy--60.82 years men; 67.73 years women.

*Health (2005 est.): Life expectancy—60.82 years men; 67.73 years women.

*Work force (11.9 million): Agricultural and forestry--44%, industry--20%; services--36%.

*Work force (11.9 million): Agricultural and forestry—44%, industry—20%; services—36%.

The educational system has achieved 97% literacy, and the mean amount of schooling for both men and women is 11 years. However, due to budget constraints and other transitional problems following the collapse of the Soviet Union, texts and other school supplies, teaching methods, curricula, and educational institutions are outdated, inappropriate, and poorly kept. Additionally, the proportion of school-aged persons enrolled has been dropping. Although the government is concerned about this, budgets remain tight. Similarly, in health care, life expectancy is long, but after the breakup of the Soviet Union, health care resources have declined, reducing health care quality, accessibility, and efficiency.  It is alleged as well that forced sterilization is taking place to prevent overpopulation and political unrest.<ref>http://www.foxnews.com/world/2010/07/17/uzbekistan-haunting-tales-mass-sterilization-drive-curb-population-growth/</ref>

The educational system has achieved 97% literacy, and the mean amount of schooling for both men and women is 11 years. However, due to budget constraints and other transitional problems following the collapse of the Soviet Union, texts and other school supplies, teaching methods, curricula, and educational institutions are outdated, inappropriate, and poorly kept. Additionally, the proportion of school-aged persons enrolled has been dropping. Although the government is concerned about this, budgets remain tight. Similarly, in health care, life expectancy is long, but after the breakup of the Soviet Union, health care resources have declined, reducing health care quality, accessibility, and efficiency.  It is alleged as well that forced sterilization is taking place to prevent overpopulation and political unrest.<ref>http://www.foxnews.com/world/2010/07/17/uzbekistan-haunting-tales-mass-sterilization-drive-curb-population-growth/</ref>

==Government and Political Conditions==

==Government and Political Conditions==

Constitutionally, the Government of Uzbekistan provides for separation of powers, freedom of speech, and representative government. In reality, the executive holds almost all power. The judiciary lacks independence, and the legislature--which meets only a few days each year--has little power to shape laws. The president selects and replaces provincial governors. Under terms of a December 1995 referendum, President Karimov's first term was extended. Another national referendum was held January 27, 2002 to again extend Karimov's term. The referendum passed, and Karimov's term was extended to December 2007 by the parliament. Most international observers refused to participate in the process and did not recognize the results, dismissing them as not meeting basic standards. The 2002 referendum also included a plan to create a bicameral parliament.  

Constitutionally, the Government of Uzbekistan provides for separation of powers, freedom of speech, and representative government. In reality, the executive holds almost all power. The judiciary lacks independence, and the legislature—which meets only a few days each year—has little power to shape laws. The president selects and replaces provincial governors. Under terms of a December 1995 referendum, President Karimov's first term was extended. Another national referendum was held January 27, 2002 to again extend Karimov's term. The referendum passed, and Karimov's term was extended to December 2007 by the parliament. Most international observers refused to participate in the process and did not recognize the results, dismissing them as not meeting basic standards. The 2002 referendum also included a plan to create a bicameral parliament.  

Elections for the new bicameral parliament took place on December 26, 2004, but no truly independent opposition candidates or parties were able to take part. Independent political parties were allowed to organize, recruit members, and hold conventions and press conferences, but were denied registration under restrictive registration procedures. The Organization for Security and Cooperation in Europe (OSCE) limited observation mission concluded that the elections fell significantly short of OSCE commitments and other international standards for democratic elections.  

Elections for the new bicameral parliament took place on December 26, 2004, but no truly independent opposition candidates or parties were able to take part. Independent political parties were allowed to organize, recruit members, and hold conventions and press conferences, but were denied registration under restrictive registration procedures. The Organization for Security and Cooperation in Europe (OSCE) limited observation mission concluded that the elections fell significantly short of OSCE commitments and other international standards for democratic elections.  

Several prominent opponents of the government have fled, and others have been arrested. The government severely represses those it suspects of Islamic extremism, particularly those it suspects of membership in the banned Party of Islamic Liberation (Hizb ut-Tahrir). Some 5,300 to 5,800 suspected extremists are incarcerated. This number fluctuates, as hundreds are amnestied periodically. Prison conditions remain very poor, particularly for those convicted of extremist activities, and a number of such prisoners are believed to have died over the past several years from prison disease and abuse. The police force and the intelligence service use torture as a routine investigation technique. Following the visit of the UN Special Rapporteur on Torture, the Government of Uzbekistan in May 2003 drafted an action plan to implement the Special Rapporteur's recommendations. The government began to enact a number of its provisions, but its violent actions in May 2005 in Andijon have been widely condemned by other nations and human rights groups. It continues to reject calls by the international community to allow an international, independent inquiry of the turbulent events.  

Several prominent opponents of the government have fled, and others have been arrested. The government severely represses those it suspects of Islamic extremism, particularly those it suspects of membership in the banned Party of Islamic Liberation (Hizb ut-Tahrir). Some 5,300 to 5,800 suspected extremists are incarcerated. This number fluctuates, as hundreds are amnestied periodically. Prison conditions remain very poor, particularly for those convicted of extremist activities, and a number of such prisoners are believed to have died over the past several years from prison disease and abuse. The police force and the intelligence service use torture as a routine investigation technique. Following the visit of the UN Special Rapporteur on Torture, the Government of Uzbekistan in May 2003 drafted an action plan to implement the Special Rapporteur's recommendations. The government began to enact a number of its provisions, but its violent actions in May 2005 in Andijon have been widely condemned by other nations and human rights groups. It continues to reject calls by the international community to allow an international, independent inquiry of the turbulent events.  

There have been reports cruel human rights violations, including boiling people alive.<ref>http://web.amnesty.org/report2005/uzb-summary-eng</ref><ref>http://193.194.138.190/Huridocda/Huridoca.nsf/0/29d0f1eaf87cf3eac1256ce9005a0170?Opendocument</ref>.

There have been reports cruel human rights violations, including boiling people alive.<ref>http://web.amnesty.org/report2005/uzb-summary-eng</ref><ref>http://193.194.138.190/Huridocda/Huridoca.nsf/0/29d0f1eaf87cf3eac1256ce9005a0170?Opendocument</ref>

===Principal Government Officials===

===Principal Government Officials===

*President and Chairman of the Cabinet of Ministers--Islam Karimov

*President and Chairman of the Cabinet of Ministers—Islam Karimov

*Prime Minister--Shavkat Mirziyaev  

*Prime Minister—Shavkat Mirziyaev  

====Deputy Prime Ministers====

====Deputy Prime Ministers====

*Economics and Trade/Consumer Market Complex--Rustam Azimov

*Economics and Trade/Consumer Market Complex—Rustam Azimov

*Communications/Informatization--Abdulla Aripov

*Communications/Informatization—Abdulla Aripov

*Energy--Ergash Shaismatov

*Energy—Ergash Shaismatov

*Social Issues--Rustam Kosimov

*Social Issues—Rustam Kosimov

*Transportation and Construction--Nodir Hanov

*Transportation and Construction—Nodir Hanov

*Women's Issues--Svetlana Imanova  

*Women's Issues—Svetlana Imanova  

====Key Ministers====

====Key Ministers====

*Defense--Ruslan Mirzayev

*Defense—Ruslan Mirzayev

*Foreign Affairs--Vladimir Norov

*Foreign Affairs—Vladimir Norov

*Internal Affairs--Bahodir Matlubov

*Internal Affairs—Bahodir Matlubov

*Justice--Foriljon Otakhonov

*Justice—Foriljon Otakhonov

*Public Education--Torobjon Jorayev

*Public Education—Torobjon Jorayev

*Emergency Situations--Kobil Berdiev

*Emergency Situations—Kobil Berdiev

*Finance--Rustam Azimov

*Finance—Rustam Azimov

*Culture--Rustam Kurbonov

*Culture—Rustam Kurbonov

*Health--Feruz Nazirov

*Health—Feruz Nazirov

*Foreign Economic Relations--Elyor Ganiev

*Foreign Economic Relations—Elyor Ganiev

*Labor and Social Protection--Aktam Haitov (Acting)  

*Labor and Social Protection—Aktam Haitov (Acting)  

===Foreign Relations===

===Foreign Relations===

Uzbekistan participated in the CIS peacekeeping force in Tajikistan and in UN-organized groups to help resolve the Tajik and Afghan conflicts, both of which it viewed as posing threats to its own stability. Uzbekistan was an active supporter of U.S. efforts against worldwide terrorism and joined the coalition combating terrorism in Afghanistan. It continues to support coalition anti-terrorist operations in Afghanistan by granting access to Germany to an air base in southern Uzbekistan.  

Uzbekistan participated in the CIS peacekeeping force in Tajikistan and in UN-organized groups to help resolve the Tajik and Afghan conflicts, both of which it viewed as posing threats to its own stability. Uzbekistan was an active supporter of U.S. efforts against worldwide terrorism and joined the coalition combating terrorism in Afghanistan. It continues to support coalition anti-terrorist operations in Afghanistan by granting access to Germany to an air base in southern Uzbekistan.  

Uzbekistan is a member of the United Nations, the Euro-Atlantic Partnership Council, NATO's Partnership for Peace, and the Organization for Security and Cooperation in Europe (OSCE). It belongs to the Organization of the Islamic Conference (OIC) and the Economic Cooperation Organization--comprised of the five Central Asian countries, Azerbaijan, Turkey, Iran, Afghanistan, and Pakistan. In 1999, Uzbekistan joined the GUAM alliance (Georgia, Ukraine, Azerbaijan, and Moldova), which was formed in 1997 (making it GUUAM), but formally withdrew in 2005. Uzbekistan is also a member of the Shanghai Cooperation Organization (SCO) and hosts the SCO's Regional Anti-Terrorist Structure (RATS) in Tashkent.  

Uzbekistan is a member of the United Nations, the Euro-Atlantic Partnership Council, NATO's Partnership for Peace, and the Organization for Security and Cooperation in Europe (OSCE). It belongs to the Organization of the Islamic Conference (OIC) and the Economic Cooperation Organization—comprised of the five Central Asian countries, Azerbaijan, Turkey, Iran, Afghanistan, and Pakistan. In 1999, Uzbekistan joined the GUAM alliance (Georgia, Ukraine, Azerbaijan, and Moldova), which was formed in 1997 (making it GUUAM), but formally withdrew in 2005. Uzbekistan is also a member of the Shanghai Cooperation Organization (SCO) and hosts the SCO's Regional Anti-Terrorist Structure (RATS) in Tashkent.  

The country is a founding member of and remains involved in the Central Asian Union, formed with Kazakhstan and Kyrgyzstan, joined in March 1998 by Tajikistan. In 2002, Uzbekistan joined the Central Asian Cooperation Organization (CACO), which also includes Tajikistan, Kazakhstan, and Kyrgyzstan. In 2006, Uzbekistan joined the Eurasian Economic Community (EurASEC), comprising Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.  

The country is a founding member of and remains involved in the Central Asian Union, formed with Kazakhstan and Kyrgyzstan, joined in March 1998 by Tajikistan. In 2002, Uzbekistan joined the Central Asian Cooperation Organization (CACO), which also includes Tajikistan, Kazakhstan, and Kyrgyzstan. In 2006, Uzbekistan joined the Eurasian Economic Community (EurASEC), comprising Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.  

The economy is based primarily on agriculture and agricultural processing. Uzbekistan is a major producer and exporter of cotton. It also is a major producer of gold, with the largest open-pit gold mine in the world, and has substantial deposits of copper, uranium, strategic minerals, gas, and oil. Since independence, the government has stated that it is committed to a gradual transition to a free market economy but has been extremely cautious in moving to a market-based economy.  

The economy is based primarily on agriculture and agricultural processing. Uzbekistan is a major producer and exporter of cotton. It also is a major producer of gold, with the largest open-pit gold mine in the world, and has substantial deposits of copper, uranium, strategic minerals, gas, and oil. Since independence, the government has stated that it is committed to a gradual transition to a free market economy but has been extremely cautious in moving to a market-based economy.  

Although it is difficult to make an accurate estimate of economic growth in Uzbekistan--because of the unreliable nature of government statistics, which often serve political rather than economic ends--economic growth is far below potential due to:  

Although it is difficult to make an accurate estimate of economic growth in Uzbekistan—because of the unreliable nature of government statistics, which often serve political rather than economic ends—economic growth is far below potential due to:  

*The country's poor investment climate;  

*The country's poor investment climate;  

*Failure to attract foreign investment;  

*Failure to attract foreign investment;  

The government runs a strict import subsidies regime to control foreign trade and prevent capital outflow. Substantial structural reform is needed, particularly in the area of improving the investment climate for foreign investors and in freeing the agricultural sector from smothering state control. Although the government has committed itself in theory to the provisions of the International Monetary Fund's (IMF) Article VIII regarding currency convertibility for current account operations, in practice firms can wait up to three months for conversion. Convertibility restrictions and other government measures to control economic activity, (e.g., harassment of foreign-owned companies, import and export restrictions, and intermittent border closings) have constrained economic growth and led international lending organizations to suspend or scale back credits. The government has made progress in reducing the budget deficit, due in part to import substitution policies and high excise taxes. However, government statistics understate the budget deficit, while overstating economic growth.  

The government runs a strict import subsidies regime to control foreign trade and prevent capital outflow. Substantial structural reform is needed, particularly in the area of improving the investment climate for foreign investors and in freeing the agricultural sector from smothering state control. Although the government has committed itself in theory to the provisions of the International Monetary Fund's (IMF) Article VIII regarding currency convertibility for current account operations, in practice firms can wait up to three months for conversion. Convertibility restrictions and other government measures to control economic activity, (e.g., harassment of foreign-owned companies, import and export restrictions, and intermittent border closings) have constrained economic growth and led international lending organizations to suspend or scale back credits. The government has made progress in reducing the budget deficit, due in part to import substitution policies and high excise taxes. However, government statistics understate the budget deficit, while overstating economic growth.  

GDP and Employment

GDP and Employment

The Uzbek Government claims that the GDP rose 7.2% in 2006; however, the U.S Government assesses GDP growth in 2006 as close to zero. Unemployment and underemployment are very high, but reliable figures are difficult to obtain, as no recent credible surveying has been done. Unofficially, unemployment is estimated around 10% and underemployment around 20%. Underemployment in the agricultural sector is particularly high--which is important given the fact that 60% of the population is rural-based. Many observers believe that employment growth and real wage growth have been stagnant, given virtually no growth in output.  

The Uzbek Government claims that the GDP rose 7.2% in 2006; however, the U.S Government assesses GDP growth in 2006 as close to zero. Unemployment and underemployment are very high, but reliable figures are difficult to obtain, as no recent credible surveying has been done. Unofficially, unemployment is estimated around 10% and underemployment around 20%. Underemployment in the agricultural sector is particularly high—which is important given the fact that 60% of the population is rural-based. Many observers believe that employment growth and real wage growth have been stagnant, given virtually no growth in output.  

*GDP: The Uzbek Government states the real GDP growth in 2006 was 7.2%; the U.S. Government believes actual real GDP growth was close to flat.

*GDP: The Uzbek Government states the real GDP growth in 2006 was 7.2%; the U.S. Government believes actual real GDP growth was close to flat.

*Inflation: Although reliable figures are scarce, international institutions estimate inflation reached 25-30% in 2005 and 2006.

*Inflation: Although reliable figures are scarce, international institutions estimate inflation reached 25-30% in 2005 and 2006.

*Per capita GDP: U.S. Government analysts believe that per capita GDP in 2009 was about $1,026 (purchasing power parity).

*Per capita GDP: U.S. Government analysts believe that per capita GDP in 2009 was about $1,026 (purchasing power parity).

*Natural resources: Natural gas, petroleum, gold, coal, uranium, silver, copper, lead, zinc, tungsten, molybdenum. Natural gas production in 2006 was 62.5 billion cubic meters (bcm). In 2006, the U.S. Government estimates 48.4 bcm of natural gas was consumed in Uzbekistan and 12.5 bcm was exported. Oil production in 2006 was 3,450,000 tons.

*Natural resources: Natural gas, petroleum, gold, coal, uranium, silver, copper, lead, zinc, tungsten, molybdenum. Natural gas production in 2006 was 62.5 billion cubic meters (bcm). In 2006, the U.S. Government estimates 48.4 bcm of natural gas was consumed in Uzbekistan and 12.5 bcm was exported. Oil production in 2006 was 3,450,000 tons.

*Agriculture: Products--cotton, fourth-largest producer worldwide; vegetables, fruits, grain, livestock.

*Agriculture: Products—cotton, fourth-largest producer worldwide; vegetables, fruits, grain, livestock.

*Industry: Types--textiles, food processing, machine building, metallurgy, natural gas. The industrial production growth rate was estimated at 10.8% in 2006; electricity production was 49 billion kilowatt hours (estimate).

*Industry: Types—textiles, food processing, machine building, metallurgy, natural gas. The industrial production growth rate was estimated at 10.8% in 2006; electricity production was 49 billion kilowatt hours (estimate).

*Budget (2006 estimates): Revenues--$3.22 billion; expenditures--$3.4 billion.

*Budget (2006 estimates): Revenues--$3.22 billion; expenditures--$3.4 billion.

*Trade: Total exports--(2006 est. $5.51 billion f.o.b.): largest contribution from cotton, gold, natural gas, mineral fertilizers, ferrous metals, textiles, food products, automobiles. Major export markets (IMF 2005)--Russia 25.2%, EU 18.6%, China 12.6%, Turkey 6.7%, Ukraine 5.7%. Total imports--(2006 est. $3.99 billion f.o.b.): machinery and equipment, chemicals, metals, foodstuffs. Primary import partners (IMF 2005)--Russia 26.9%, EU 21.9%, South Korea 15.4%, China 7.2%, Kazakhstan 6.5%.

*Trade: Total exports--(2006 est. $5.51 billion f.o.b.): largest contribution from cotton, gold, natural gas, mineral fertilizers, ferrous metals, textiles, food products, automobiles. Major export markets (IMF 2005)--Russia 25.2%, EU 18.6%, China 12.6%, Turkey 6.7%, Ukraine 5.7%. Total imports--(2006 est. $3.99 billion f.o.b.): machinery and equipment, chemicals, metals, foodstuffs. Primary import partners (IMF 2005)--Russia 26.9%, EU 21.9%, South Korea 15.4%, China 7.2%, Kazakhstan 6.5%.

====Labor====

====Labor====

Literacy in Uzbekistan is almost universal, and workers are generally well-educated and well-trained. However, worsening corruption in the country's education system in the past few years has begun to erode Uzbekistan's advantage in terms of its human capital, as grades and degrees are routinely purchased. Most local technical and managerial training does not meet international business standards, but foreign companies engaged in production report that locally hired workers learn quickly and work effectively. Foreign firms generally find that younger workers, untainted by the Soviet system, work well at all levels. The government has significantly curbed a long-time program emphasizing foreign education, which in past years annually sent about 50 students to the United States, Europe, and Japan for university degrees, after which they have a commitment to work for the government for 5 years. Reportedly, about 60% of the students who studied abroad found employment with foreign companies upon their return, despite their 5-year commitment to work in the government. In addition, Uzbekistan subsidizes studies for students at Westminster University--the only Western-style institution in Uzbekistan. In 2003, Westminster admitted about 360 students, and the government funded about half of the students' education. Education at Westminster costs $4,800 per academic year.  

Literacy in Uzbekistan is almost universal, and workers are generally well-educated and well-trained. However, worsening corruption in the country's education system in the past few years has begun to erode Uzbekistan's advantage in terms of its human capital, as grades and degrees are routinely purchased. Most local technical and managerial training does not meet international business standards, but foreign companies engaged in production report that locally hired workers learn quickly and work effectively. Foreign firms generally find that younger workers, untainted by the Soviet system, work well at all levels. The government has significantly curbed a long-time program emphasizing foreign education, which in past years annually sent about 50 students to the United States, Europe, and Japan for university degrees, after which they have a commitment to work for the government for 5 years. Reportedly, about 60% of the students who studied abroad found employment with foreign companies upon their return, despite their 5-year commitment to work in the government. In addition, Uzbekistan subsidizes studies for students at Westminster University—the only Western-style institution in Uzbekistan. In 2003, Westminster admitted about 360 students, and the government funded about half of the students' education. Education at Westminster costs $4,800 per academic year.  

With the closure or downsizing of many foreign firms, it is relatively easy to find qualified, well-trained employees, and salaries are very low by Western standards. The government has implemented salary caps in an attempt to prevent firms from circumventing restrictions on the withdrawal of cash from banks. Some firms had tried in the past to evade these limits on withdrawals by inflating salaries of employees, allowing firms to withdraw more money. These salary caps prevent many foreign firms from paying their workers as much as they would like. Labor market regulations in Uzbekistan are similar to those once used in the Soviet Union, with all rights guaranteed but some rights unobserved. Unemployment is a growing problem, and the number of people looking for jobs in Russia, Kazakhstan, and Southeast Asia is increasing each year. Business analysts estimate that a high number of Uzbek citizens are working abroad. Estimates range from lows of 3 million to highs of 5 million Uzbek citizens of working age living outside Uzbekistan, most in neighboring countries or Russia. However, the government does not acknowledge these unofficial reports.  

With the closure or downsizing of many foreign firms, it is relatively easy to find qualified, well-trained employees, and salaries are very low by Western standards. The government has implemented salary caps in an attempt to prevent firms from circumventing restrictions on the withdrawal of cash from banks. Some firms had tried in the past to evade these limits on withdrawals by inflating salaries of employees, allowing firms to withdraw more money. These salary caps prevent many foreign firms from paying their workers as much as they would like. Labor market regulations in Uzbekistan are similar to those once used in the Soviet Union, with all rights guaranteed but some rights unobserved. Unemployment is a growing problem, and the number of people looking for jobs in Russia, Kazakhstan, and Southeast Asia is increasing each year. Business analysts estimate that a high number of Uzbek citizens are working abroad. Estimates range from lows of 3 million to highs of 5 million Uzbek citizens of working age living outside Uzbekistan, most in neighboring countries or Russia. However, the government does not acknowledge these unofficial reports.  

Agriculture and the agro-industrial sector contribute more than 40% to Uzbekistan's GDP. Cotton is Uzbekistan's dominant crop, accounting for roughly 20% of the country's exports in 2005. Uzbekistan also produces significant amounts of silk, fruit, and vegetables. Virtually all agriculture involves heavy irrigation. Farmers and agricultural workers have very low incomes because the government uses the difference between the world prices of cotton and wheat and what it pays the farmers to subsidize highly inefficient capital-intensive industrial concerns, such as factories producing automobiles, airplanes, and tractors.  

Agriculture and the agro-industrial sector contribute more than 40% to Uzbekistan's GDP. Cotton is Uzbekistan's dominant crop, accounting for roughly 20% of the country's exports in 2005. Uzbekistan also produces significant amounts of silk, fruit, and vegetables. Virtually all agriculture involves heavy irrigation. Farmers and agricultural workers have very low incomes because the government uses the difference between the world prices of cotton and wheat and what it pays the farmers to subsidize highly inefficient capital-intensive industrial concerns, such as factories producing automobiles, airplanes, and tractors.  

Consequently, agricultural productivity is low, with many farmers focusing on producing fruits and vegetables--for which supply and demand determine the price--on small plots of land, as well as smuggling cotton and wheat across the border with Kazakhstan and Kyrgyzstan in order to obtain higher prices.  

Consequently, agricultural productivity is low, with many farmers focusing on producing fruits and vegetables—for which supply and demand determine the price—on small plots of land, as well as smuggling cotton and wheat across the border with Kazakhstan and Kyrgyzstan in order to obtain higher prices.  

Minerals and mining also are important to Uzbekistan's economy. Gold is Uzbekistan's second most important foreign exchange earner, unofficially estimated at around 20%. Uzbekistan is the world's seventh-largest producer, mining about 80 tons per year, and holds the fourth-largest reserves in the world. Uzbekistan has an abundance of natural gas, used both for domestic consumption and export; oil almost sufficient for domestic needs; and significant reserves of copper, lead, zinc, tungsten, and uranium. Inefficiency in energy use is extremely high, given the failure to use realistic price signals to cause consumers to conserve energy.  

Minerals and mining also are important to Uzbekistan's economy. Gold is Uzbekistan's second most important foreign exchange earner, unofficially estimated at around 20%. Uzbekistan is the world's seventh-largest producer, mining about 80 tons per year, and holds the fourth-largest reserves in the world. Uzbekistan has an abundance of natural gas, used both for domestic consumption and export; oil almost sufficient for domestic needs; and significant reserves of copper, lead, zinc, tungsten, and uranium. Inefficiency in energy use is extremely high, given the failure to use realistic price signals to cause consumers to conserve energy.  

==See Also==

==See also==

* [[Islamic republic]]

* [[Islamic republic]]

* [[Big government]] [[Welfare state]] leads to [[Nanny state]], leads to [[Police state]]

* [[Big government]] [[Welfare state]] leads to [[Nanny state]], leads to [[Police state]]

==References==

==References==

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