Uzbekistan Diagnostic Assessing Progress and Challenges in


The authorities have taken measures to ease potential negative social side-effects of



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uzbekistan diagnostic paper

The authorities have taken measures to ease potential negative social side-effects of 
reforms
such as abolishing customs on socially important import goods to prevent a sharp 
rise in prices. A more fundamental approach will be needed to secure the smooth transition to 
a prosperous market economy, including labour market and social security reforms, education 
reform and overhauling the country’s scientific and research institutions.
2. THE CURRENT SHAPE OF THE PRIVATE SECTOR
The private sector has been growing over the past decade despite difficult circumstances, 
highlighting the potential for further development if reforms advance and obstacles are 
eased. The removal of distortions to markets will inevitably affect some businesses 
adversely in the short run and might force some companies out of business. However, this 
process of creative destruction will open the way for the majority of businesses to improve. 
The share of the private sector significantly increased over the past decade. 
According to 
best estimates, the private sector currently generates perhaps 50-60 per cent of GDP.
 
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