Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
Further development of the transport sector is essential to meet growth 
targets. Rail has been the main mode of transporting freight in and out of the 
country, while road transport is the dominant mode for domestic passenger 
and short-haul cargo. Improvements in both, as well as in logistics centers 
and cross-border transport procedures, are needed to allow the growth of 
trade and to take advantage of the country’s geographical position as a key
transit country. 
The energy sector, on the other hand, has played a significant role in the steady 
economic growth of Uzbekistan after the dissolution of the Soviet Union. The 
sector accounted for 26% of total industry output during 1995–2014. Energy 
exports, mainly natural gas, accounted for 13% of total exports during the same 
period, and have been a key source of government finance. The reliability of 
energy supply significantly determines the competitiveness of industry. In 
coming years, the performance of the energy sector will be crucial to sustain 
GDP growth and double GDP by 2030. 
The government acknowledges that an adequate and reliable supply of 
power is vital to sustained economic growth and development. Demand for 
power is projected to grow substantially as industrialization proceeds and 
household incomes increase.
Despite its huge energy endowment, Uzbekistan grapples with energy security 
issues. Unreliable power supply has limited the activity and profitability of 
enterprises. In winter, blackouts are common and usually last for at least 2 
hours. Inefficiency in the sector is an urgent and pressing issue: in 2016, this 
resulted in an annual economic loss of about $1.5 billion (World Bank 2016b). 
In the power sector, inefficiencies have emanated from the use of outdated 
production technologies, especially in industry and agriculture; from old and 
inefficient power generation, transmission, and distribution infrastructure; 
and from inadequate billing and metering systems. The low tariff policy 
exacerbates the situation by encouraging wasteful electricity consumption. 
This policy has also undermined the financial performance of the power 
utility, which has led to limited investments as well as poor operation and 
maintenance of electricity infrastructure. 

---

31