Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth



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Executive Summary


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and technical and vocational education and training (TVET) instructors. 
The government should encourage active participation from the private 
sector, both large companies and SMEs, in TVET curricula development 
and implementation. To create more effective learning pathways between 
TVET and higher education, a system for recognizing prior learning should be 
introduced that assesses each individual’s overall learning experience. 
Tertiary enrollment rates should be increased, especially in science, technology, 
engineering, and mathematics. Special measures need to be introduced to 
encourage and support girls entering such courses. Investments in information 
and communication technology (ICT) infrastructure should be increased, 
including an affordable and functional labor market information system and 
a higher education management information system. The system should also 
integrate ICT-based learning opportunities in education and training.
Boosting Development of the Private Sector and Its Access to Finance 
Uzbekistan’s economic growth has been supported by the expansion of 
private sector businesses, and accelerated by government efforts to transition 
to a market-based economy. Such private sector development is critical for 
a smooth shift from state-driven to private-sector-led economic growth in 
which SMEs play a key role. The present growth pattern of Uzbekistan has been 
led by labor-intensive industries such as in agriculture, manufacturing, and 
construction. Increasingly, the service sector will hold the most potential for 
high-quality job creation. Services-related SMEs, especially tech-based SMEs, 
could boost national productivity through innovation and skills development, 
benefiting from foreign direct investment (FDI) and the Fourth Industrial 
Revolution. 
However, funding constraints limit the innovation capabilities of the private 
sector. A developed financial sector is an essential facilitator of private sector 
development. Growth-oriented SMEs are seeking diversified financing options 
that go beyond traditional bank credit to realize their potential. Financial 
inclusion, especially SME access to various sources of finance, should be high on 
the government’s policy agenda for encouraging private sector development. 
The balanced development of banking and the nonbank finance industry, 
using new digital technologies, is crucial to broaden the financial instruments 
available for viable SMEs, including start-ups and young entrepreneurships. 
The government needs to enhance the business-enabling environment for 
services-related SMEs in the education, health, transport, tourism, and ICT 

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