Uzbekistan Diagnostic Assessing Progress and Challenges in


ANNEX 1 – QUALITIES OF A SUSTAINABLE MARKET ECONOMY



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uzbekistan diagnostic paper

ANNEX 1 – QUALITIES OF A SUSTAINABLE MARKET ECONOMY
 
In the EBRD’s Transition Qualities (ATQs), Uzbekistan’s scores below average in five 
of six transition qualities
(competitive, well-governed, resilient, integrated, green, and 
inclusive). However, the scores are backward looking; the reforms currently under way may 
raise Uzbekistan’s scores in future and help the country catch up on regional comparators.
Uzbekistan’s Transition Qualities 
Source: EBRD calculations
Note: The level of development within each of the qualities is measured from 1 to 10, with 1 meaning little or no progress 
and 10 representing the frontier. 
The following pages provide brief snapshots of each quality.
2.15
4.32
3.20
5.34
3.98
4.20
Competitive
Well-
governed
Green
Inclusive
Resillient
Integrated
Uzbekistan
EBRD
CA


OFFICIAL USE
18 
OFFICIAL USE
COMPETITIVE 
[ATQ = 2.15]

State interference, overregulation and a tax system that disadvantages company growth
over a certain threshold and discourages outsourcing have resulted in suboptimal company 
structures and corporate governance. This has combined with import substitution policies and 
the severe protection of the domestic market to keep competitiveness and innovativeness low. 
Insufficiently developed financial markets are also an obstacle to competitiveness. 
Market structures and institutions: 
The domestic market was strongly protected until recently
. Currency convertibility was 
restricted and a multiple exchange rate regime in place until September 2017. High tariffs and 
excise taxes on various imports have yet to be reformed.
-

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