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Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
136
ChApTER 4
Private Sector Development
and Access to Finance
Shigehiro Shinozaki
Uzbekistan has experienced relatively stable growth since its independence 
from the former Soviet Union, with limited influence from the 2007–2008 
global financial crisis and the 2014–2015 Russian financial crisis. The country’s 
economic growth has been supported by the expansion of private sector 
businesses, and has been accelerated by government efforts to transition to 
a market-based economy. The liberalization of foreign exchange markets in 
September 2017 brought increased opportunities for private businesses in 
Uzbekistan, which will encourage more foreign investment. Also, ongoing tax 
reforms, including unified tax payments, will reduce the administrative burden 
for private sector activities.
However, several remaining concerns affect the country’s economic growth. 
In general, economic development entails structural change (McMillan and 
Rodrik 2011), but the sectoral and employment structures of Uzbekistan’s 
economic activities have not changed for more than a decade. Labor mobility 
between low and high productive activities has stagnated, and the country’s 
economy still relies on labor-intensive agriculture, industry, and construction. 
This raises the question of how Uzbekistan could develop a sustainable 
economic growth model.
Private sector development acts as an engine of growth. However, strategically 
important sectors such as banking, mining, gas, electricity, water supply, and 
transport are still controlled by state-owned enterprises (SOEs). Uzbekistan 
classifies SOEs as enterprises that are directly state owned or are 100% state 
owned through direct plus indirect state shares. All other enterprises are 
classified as privately owned, even if the state has a majority share.
Some goods 
and services are not yet subject to market-based pricing but instead use prices 
set by the Ministry of Finance. Privatization of SOEs is ongoing, but privatized 

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