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The post-pandemic outlook



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Spotlight-on-Uzbekistan

The post-pandemic outlook 
Just as with the reform programme, President Mirziyoyev and his government have demonstrated a 
high degree of resolve in dealing with the public-health challenge posed by the coronavirus 
pandemic. In April, the ratings agencies’ affirmation of Uzbekistan’s Long-Term Foreign Currency 
Issuer Default Rating at BB– with a stable outlook highlights the country’s resilience against the 
impact of the health crisis and lower energy prices through its strong fiscal and external buffers, its 
diversified commodity export base and access to external official financing.
285
 In addition, significant 
steps have been taken to further improve fiscal transparency. But whether the president and 
government can maintain their reform momentum while navigating the pandemic and its aftermath 
in the longer term is yet to be seen. 
 
The current global economic crisis and coronavirus pandemic will test the durability of the recent 
reform process in Uzbekistan. Although the Uzbek population has largely been behind the reform 
programme, the negative impact on already challenging socioeconomic conditions in Uzbekistan 
could push latent disaffection and high expectations of Mirziyoyev to the surface. Alongside the 
thornier reforms of privatisation and capital markets, the Uzbek government urgently needs to 
prioritise educational reforms synchronised with the job market to ensure that the over a half a 
million young people entering the job market each year, are an asset not a liability. In addition, the 
government needs to continue to make Uzbekistan a hub both for tourists but also for cargo, 
meaning additional investment and reforms to develop both soft and physical infrastructure.  
 
 
 
 
                                                           
285
 Fitch Ratings, Fitch Affirms Uzbekistan at 'BB-'; Outlook Stable, April 2020, https://www.fitchratings.com/research/sovereigns/fitch-
affirms-uzbekistan-at-bb-outlook-stable-10-04-2020 


Spotlight on Uzbekistan 
66 
 
 
4. Corruption and reform in Uzbekistan: The elephant is 
still in the room 
…………………………………………………………………………………………………………………………………………………………...
 
By Professor Kristian Lasslett
286
 
 
When Uzbekistan’s first post-Soviet President, Islam Karimov, passed away in September 2016, he 
left behind a complex legacy. Uzbekistan had not suffered prolonged instability, armed conflict, or 
state-failure, like in certain other post-Soviet spaces. On the other hand, life had become 
increasingly choreographed by an authoritarian state, buttressed by an expansive surveillance 
apparatus, and arbitrary forms of violence.
287
 Behind the state lay opaque cliques of security chiefs, 
politicians, mandarins, businessmen, and select organised crime figures, who built personal 
alliances, and leveraged unchecked state power, to administer rackets and protect economic 
territory. In the academic literature neo-patrimonialism and clientelism have been employed to 
describe these dynamics.
288
 Victims interviewed by the author have used the more visceral phrase, 
mafia-state (this denotes the state operates like a mafia organisation, not that the state has been 
captured by an outside crime group). Each term, in their own way, depict how power to make 
                                                           
286
 Kristian Lasslett is Professor of Criminology at Ulster University, sits on the Board of the International State Crime Initiative and is Co-
Director of Uz Investigations. He is an investigative researcher who works on corruption and kleptocracy in Central Asia, Europe and the 
South Pacific. Professor Lasslett’s work focuses on new ways data science, open source intelligence gathering, digital analytics, and 
traditional investigative methodologies, can be synthesised to help build theoretically rich understandings of how grand corruption shapes 
national and international political economy. His most recent book, Uncovering the Crimes of Urbanisation, was published by Routledge in 
2018; Photo by Tashkent City Park, https://creativecommons.org/licenses/by-sa/4.0/deed.en 
287
 Cooley, Alexander and Heathershaw, John. 2017. Dictators without borders. London: Yale University Press; David G. Lewis, Tackling 
corruption in Uzbekistan: A white paper, Open Society Foundations, June 2016, 
https://www.opensocietyfoundations.org/uploads/ff271daf-1f43-449d-a6a2-d95031e1247a/tackling-corruption-uzbekistan-
20160524.pdf; Alexey Malashenko, Exploring Uzbekistan's potential political transition, Carnegie Moscow Center, July 2014, 
https://carnegieendowment.org/files/CP_Uzbekistan_web_Eng2014.pdf;  
288
 See for example: Ceccarelli, Alessandra. Clans, politics and organized crime in Central Asia. Trends in Organized Crime 10(3): 19–36; 
Ilkhamov, Alisher. 2007. Neopatrimonialism, interest groups and patronage networks: the impasses of the governance system in 
Uzbekistan. Central Asia Survey 26(1): 65–84; Walker, Justine. 2009. Drug trafficking and terrorism in Central Asia: An anatomy of 
Relationships. Phd Thesis: University of St Andrews. 


Spotlight on Uzbekistan 
67 
 
political and economic decisions in Uzbekistan, with profound implications for the distribution of 
wealth and the enjoyment of human rights, has been captured by closed, elite networks and 
frequently used for improper ends. 
 
Islam Karimov’s Presidential successor, Shavkat Mirziyoyev, has attempted to shed some of these 
legacies by framing himself as an ambitious moderniser with an appetite for greater levels of 
transparency and accountability.
289
 This has presaged a raft of pro-business reforms, and some 
market liberalisation measures. These reforms have met cautious enthusiasm at home and at times 
rapturous applause from abroad. In a context marked by hope and goodwill, pointing to the 
enduring challenge of corruption and kleptocracy triggers the risk of being labelled a ‘spoiler’. Yet it 
is an issue that is difficult to avoid. Deeply entrenched political-economic structures, and the 
institutional and social cultures they are syncopated with, are difficult to shift, especially in a top-
down manner where those in power have excelled because of their ability to navigate this particular 
environment.  
 
It is important, therefore, that the enduring spectre of grand corruption is considered and calculated 
into any analysis of the reform process in Uzbekistan.
290
 Even as this essay is being edited, reports 
are emerging in Uzbekistan that may tie the Sardoba dam collapse, and emergency COVID-19 
spending, to corruption.
291
 Accordingly, understanding and challenging the practices, processes, 
relationships and structures that systemically reproduce grand corruption remains an important 
task.  
 
The documentation and clinical analysis of such practices trigger challenges. Processes captured 
under the rubric of corruption, are frequently understood in quantitative terms using different 
measurement tools. It is exceedingly difficult, given the secretive nature of such transactions and the 
often unchecked power enjoyed by practitioners, to qualitatively document them, at least at a grand 
level. Without qualitative documentation based on representative and robust samples, it is difficult 
in turn to produce sophisticated and reliable forms of analysis that can guide policy and practice. 
Against this challenging backdrop the following essay takes an inductive approach, working off 
investigative data-sets pertaining to a number of cases in order to formulate a series of evidence 
based hypotheses on the structures and drivers that stimulate grand corruption in Uzbekistan.  
 
The first part of this essay deals with a classic case study on corruption in Uzbekistan, looking at the 
underpinning structures its content points to. Then the analysis turns to two contemporary case 
studies relating to the Mirziyoyev era, where serious governance concerns have been raised, in 
order to consider whether they exhibit similar traits to this classic case. The conclusions that follow 
from this will then be employed to deduce how the underpinning system these cases are outward 
evidence of, may mediate reform process outcomes.  
 

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