Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Figure 3.3: Share of Natural Resource Rents in GDP,
Uzbekistan, 1991–2017 
(% of GDP)
Natural gas rents
Mineral rents
0
20
10
30
40
50
1992
1993
1991
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017

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Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
The new development strategy commits the government to double 
Uzbekistan’s GDP by 2030 while increasing the share of industry in the 
economy to 40%. The strategy outlines the key sectors with the greatest 
potential to drive economic growth until 2021: the textile industry (moving 
away from cotton production to cotton processing), industrial and building 
materials production, agricultural and food processing, pharmaceuticals, 
and tourism (Aliyeva 2017, UZAFI 2017). Eight special programs designed 
to develop these sectors and 657 investment projects worth approximately 
$40 billion in total, including projects in the new free economic zones, 
are envisioned to be implemented. The government is also committed to 
increasing the share of the service sector and the role of small and medium-
sized enterprises (SMEs) in the national economy, as outlined in the strategy. 
By 2021, the government plans to achieve full processing of cotton and has 
already taken steps to increase the volume of cotton fiber processing. For 
example, 112 contemporary high-tech factories are planned to be opened, 
rehabilitated, or upgraded, which will enhance the country’s potential for 
exporting processed cotton (aimed at $2.5 billion per year) and generating 
over 25,000 jobs.
Uzbekistan’s public sector alone cannot sustain the demand for jobs, so a well-
functioning private sector and relevant investments are necessary to create 
well-paying, skilled jobs and social security, and to sustain economic growth 
and improve the welfare of the poorest 40% of households. In the last 18 years, 
the role of SMEs and entrepreneurs in sustaining Uzbekistan’s economic 
growth has been increasing, from 30% of GDP in 2000 to 53% in 2017, and the 
SME share of total employment has risen from 10% to 27%. 
3.3. Education and Skill Development
Uzbekistan has a high level of human development, ranking 105th of 189 
countries. This is partly due to education: the average years of schooling have 
increased by 2.4 years since 2000 and the expected years of schooling has risen 
by 0.7 years. The increase is reflected in the country’s Human Development 
Index value growing from 0.595 in 2000 to 0.710 in 2017 (UNDP 2018).
The overall state budget spending on education is one of the highest in the 
world (approximately 8% of GDP), but the share of this spending on tertiary 
education is one of the lowest, at 0.4% of GDP.
3
There is also a misalignment 
3
In comparator countries, about 20% of the state education budget is spent on tertiary education, and in 
some, for example Malaysia, as much as 30% is spent on tertiary education (World Bank 2014).

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