Development of Uzbekistan's economy and high growth rates: an integrated approach

According to the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan, over the past few years our country has undergone an accelerated transformation of the economy and increasingly appears in the international community as one of the symbols of openness, innovation and determination in removing various barriers to business and investment. At the same time, world practice and experience show that the problems hindering the investment and innovation activity of business can no longer be solved by simple tools - the granting of preferences or the publication of new declarative norms.

Taking into account the fact that the investment climate affects almost all spheres of activity of the country, the range of reforms covered all areas, including economic, institutional, educational, healthcare, agriculture, water supply, energy, transport and others.
On April 30, 2023, a referendum was held on the adoption of the Constitution of the Republic of Uzbekistan in a new edition.  One of the innovations of this important document is that the state provides a favorable investment and business climate (Article 67). This means that the state acts as a guarantor in ensuring a favorable investment and business climate in the country. 
Last December, President Shavkat Mirziyoyev's Message to the Oliy Majlis and the People of Uzbekistan stated that "this year alone, eight billion dollars of foreign direct investment was attracted to our economy... Over the past six years, we have managed to increase the inflow of investments to a level exceeding 30 percent of GDP. Next year, about $30 billion of investments will be attracted, of which $25 billion will be private investments. In particular, we will launch over 300 projects with a total value of eight billion dollars, and we will start implementing another 40 new major projects."
It was also stressed that "starting from the new year, each khokim will have to attract $ 40-50 million of private investment to his district... Therefore, from now on, state investment programs will be formed in the context of mahallas... Both ministers and khokims should clearly understand one truth: in Uzbekistan, the defender of property and investment is not any khokim or minister, but only the Constitution, the law and the court."
At the meeting on investment, export and international cooperation, held under the chairmanship of the head of state on March 27, 2023, it was emphasized that thanks to the favorable business environment in our country, the number of foreign enterprises has increased from 5,000 to 16,000 in recent years. Foreign direct investment is attracted to almost every district and city.
In continuation of this work, it is planned to master about $ 11 billion of foreign direct investment this year. 12 thousand projects worth $ 23 billion will be launched in the regions, including more than three thousand large and medium-sized production facilities.
Over the past period, a modern investment legislative framework has been formed, providing comprehensive regulation of investment activities in the country. In particular, the laws "On investment and mutual funds", "On investments and investment activities", more than 100 documents of the President of the Republic of Uzbekistan, more than 300 government resolutions, about a thousand other regulatory legal acts have been adopted.
Investment strategy: significant trends
In a World Bank report published in June 2022, one of the recommendations for the National Strategy for Foreign Direct Investment with a roadmap for Uzbekistan indicated the adoption of a new investment strategy.
In particular, in order to increase the industrial and production potential of the republic, the widespread introduction of high technologies in the economy, the creation of new production capacities, export development, employment and poverty reduction in the regions by expanding the attraction of foreign direct investment, as well as systematic investment planning and effective management of investment projects, the Investment Program of the Republic of Uzbekistan for 2022-2026 was adopted years, providing for the development of foreign investments in the amount of $ 70 billion in the next five years. In order to accelerate the development of economic sectors, expand and modernize production capacities, widely introduce modern technologies in industry, services and agriculture, increase the production of export-oriented products with high added value, accelerate investment processes and actively attract foreign direct investment to the regions, as well as create high-paying jobs and ensure local employment The Investment Program of the Republic of Uzbekistan for 2023-2025 has been adopted.
Reliable market and legislative framework
When financing certain projects in the country, an investor chooses a reliable market that ensures the development of market relations with a solid legislative framework that interprets all ambiguities and contradictions only in favor of his interests.
As a result of the improvement of the business environment over the past year, entrepreneurs have built more than 55 thousand business buildings. The number of business entities with revenues of more than a million dollars increased by five thousand to 26 thousand. Another thousand subjects brought the trade turnover from one to 10 million dollars, and the revenue of 220 enterprises reached 100 million. 
In order to improve the system of working with the problems of business entities through digital technologies, as well as to further strengthen the mechanisms for protecting their rights and legitimate interests, a single interactive portal business.gov.uz transformed into the information portal "Virtual office of the entrepreneur", which has the following features:
- round-the-clock reception, solving appeals of business entities and monitoring these processes;
- identification of systemic problems that hinder entrepreneurial activity, the formation of proposals for their elimination through thematic online discussions and surveys among government agencies and organizations, as well as business entities;
- acceptance of collective appeals of business entities to improve legislation;
- connection to information systems that allow business entities to receive the necessary services, including obtaining licenses and permits, loans, subsidies, compensations and guarantees, tax and customs administration.
The Basic Law is the guarantor of transformations
In recent years, there have been cases when entrepreneurs have started their own business, faced with various bureaucratic barriers that prevent independent activity. In this regard, the new version of the Constitution creates appropriate legal guarantees so that such situations do not recur and our entrepreneurs can work safely and freely, which confirms the legal and social orientation of Uzbekistan.
Given the great economic importance of this issue, the new version of the Basic Law establishes the obligation of the state to provide favorable investment and business conditions for the development of entrepreneurship.
Thus, the new version of the Constitution establishes that entrepreneurs have the right to carry out any activity not prohibited by law. 
Such constitutional guarantees will help us achieve a higher goal of increasing per capita income to four thousand dollars by 2030 by further supporting entrepreneurship, improving the investment environment, reducing the tax burden and creating a free and competitive business environment.
The Constitution establishes mechanisms for protecting State bodies and their officials from unlawful decisions. In particular, article 55 of the Basic Law in the new edition establishes the right of everyone to compensation by the State for damage caused by illegal decisions, actions or inaction of state bodies or their officials.
Achieving targets is a priority task
In order to ensure the will of the people to build a free and prosperous New Uzbekistan, to create opportunities for every citizen to develop potential, to educate a healthy, educated and spiritually developed generation, to form a strong economy that has become an important link in global production, as well as to guarantee justice, the rule of law, security and stability, the Strategy "Uzbekistan - 2030" was approved.
In particular, this strategy provides for:
- doubling the volume of the economy by 2030 and joining a number of countries with above-average incomes by consistently continuing transformation and institutional reforms in the economy, ensuring a favorable investment and business climate in the country, as well as implementing a balanced monetary policy and ensuring an increase in the volume of investments annually invested in fixed assets, on average by seven percent (target 45);
- effective use of the local raw material base and the development of an industry based on advanced technologies by increasing the volume of copper processing in the electrical industry by 300 thousand tons and attracting $ 1.5 billion in investments in the localization of the production of all household appliances (goal 47);
- further increase of the country's investment attractiveness and accelerated development of the securities market by:
 - the development of $ 250 billion of investments in the country, in particular, the attraction of 110 billion foreign investments and 30 billion - within the framework of public-private partnership;
- maintaining an investment rating of regions, further increasing the attractiveness of each territory for investors based on their capabilities;
 - doubling the volume of portfolio investments by establishing the activities of mutual and venture funds (goal 49);