Development finance assessment

South-South Cooperation
South-South Cooperation (SSC) has only recently started to pick up speed in 
Central Asia, including Uzbekistan. Recently, the UN Office of South-South Cooperation 
(UNOSSC) assessed the water supply and sewage for the city of Chust (in the Fergana 
Valley)
52
. Similarly, in 2019, the Chinese initiated SSC in agriculture
53
. These initiatives are 
part of the Government’s Strategy for South-South Cooperation in Agriculture (2018)
54
. 
In the context of this Strategy Uzbekistan has signed several contracts and agreements 
with several developing (and developed) countries focusing mostly on knowledge 
sharing. With the shifts in foreign policy of Uzbekistan, where regional cooperation and 
rapprochement has an important place, it is reasonable to expect that more regional 
projects will be launched.
51 
See: OECD CRS Microdata for OOF annual data.
52
See: https://www.unsouthsouth.org/2019/12/05/urgent-actions-to-manage-water-supply-and-waste-required-in-
chust-uzbekistan
53
https://www.unsouthsouth.org/2019/07/10/south-south-cooperation-for-agriculture-development-gains-momentum 
54 
See: Стратегия сотрудничества Юг-Юг в области сельского хозяйства
Figure 17 Sectoral Allocation: ODA versus OOF (2002-18)
0
200
400
600
800
1000
1200
1400
Energy
Agriculture, Forestry, Fishing
Transport & Storage
Industry, Mining, Construction
Banking & Financial Services
Other Social Infrastructure & Services
Government & Civil Society
Water Supply & Sanitation
Health
Other Multisector
Business & Other Services
Education
Population Policies/Programmes & Reproductive Health
Trade Policies & Regulations
Communications
General Environment Protection
Trade Policies & Regulations
Tourism
USD Million, current
ODA
OOF
Source: OECD, 2020.

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42
DEVELOPMENT FINANCE ASSESSMENT FOR THE REPUBLIC OF UZBEKISTAN
Uzbekistan is a member of Economic Cooperation Organisation
55
(ECO) and has initiated 
co-operation in the field of agriculture and the Regional Co-ordination Centre (RCC) for 
Food Security has been established (see: FAO, 2019). With the support of FAO, the Seed 
Sector Development has been promoted in ECO region. Similarly, a regional development 
programme on fisheries and aquaculture (supported by Turkey) has been launched targeting 
seven countries in the region.
56
The programme ‘Locust Management in the Caucasus and 
Central Asia (CCA)’, supported by several development partners
57
, facilitates the knowledge 
sharing amongst the participating countries.
58
Uzbekistan has also been active in IT sector 
collaboration with ECO counties. The Iranian Nanotechnology Initiative Council
59
has initiated 
the collaboration with other ECO countries in 2008, to promote research and industrial 
application of nanotechnology in the member countries; and Uzbekistan has been one of 
the participating countries. 
Developing a more systematic approach to SSC would require centralizing all ongoing 
and planned SSC activities in a transparent and comprehensive public register, including 
information on scope, value, partners and alignment with government’s KPIs and nationalized 
SDG targets. Such monitoring of SSC could inform the development of a development 
cooperation strategy as part of an INFF.
PRIVATE FINANCIAL FLOWS
Commercial actors- small and large- are a key part of all advanced economies. Governments 
can only indirectly influence the scope and magnitude of private finance
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in their country. 
Managing the trade-offs between attracting commercial investment, for example with 
incentives or relaxed regulations, while maximizing its sustainable development impact – 
the jobs created, skills developed, innovation spurred on, green growth generated and so 
on – is a challenge. Assessing the scale and nature of available private financing is critical for 
considering the role that different private actors can play and how to bring together existing 
policies and instruments the GoU uses to influence or engage private finance. Subsequently, 
additional partnerships, policies and interventions may be required towards effectively 
harnessing the private sector’s contribution to sustainable development. An INFF could be a 
way of helping the GoU to bring these policy areas and objectives together.