Jacob McCarter
Middle-Asian countries are Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan and others. Briefly about economy of these countries.
Uzbekistan
Uzbekistan is a post-soviet republic state-controlled economy.When country became independent, the government continued using soviet-style command economy with strict control of production and prices. Though ongoing attempts to diversify economy, Uzbekistan agriculture is largely concentrated on cotton. Uzbekistan is the fifth largest exporter of cotton and sixth largest producer in the world.
Uzbekistan has difficult economic situation.It is difficult for people to find a job, so mostly they work on state jobs. Government do not pay salaries for a long time. They are doing it to keep inflation rate. Instead of it government use force labour of people who works on state jobs, pensioners and children. The average salary in country is about 100-150$ per month.That is why many citizens of Uzbekistan work abroad and help relatives by money transfers.
Country has difficulties with currency exchange. Currency rate of dollar: 1 dollar is about 7000 soms(local currency). However, it is difficult to change money. There are 4 kinds of currency exchange:
-state, which is given by country authorities;
-stock rate (also is given by country authorities);
-commercial stock, established for trade operations between companies;
-black market, exchange rate to change money illegally.
Government want to implement non-cash settlement. But, when people pay by credit cards, bank charges about 15% of commission.So, cash is mostly absent.
Uzbekistan’s increase has been resulted mostly by state-led investments, and export of natural gas, gold, and cotton. The last one gives a large part of foreign exchange incomes.
Last year Russia’s Gazprom announced it would diminish its natural gas imports from Uzbekistan but Tashkent keeps on to export natural gas to China and Chinese investments in the country have basically expanded.
In 2003, the administration initiated Article VIII obligations under the IMF. It provides for full currency convertibility. Though, strong currency controls and tightening of limits have lessened the results of convertibility. It also led to shortages that have further stifled economic activity. Now, lower world product prices and economic slowdown in neighboring states of Russia and China have been hurting Uzbekistan’s transactions and investment and worsening its question of currency deficit.
Turkmenistan
Turkmenistan describes itself as a secular democracy and a presidential republic.
Actually, country’s government represents by authoritarian presidential regulation with power concentrated within the presidential control.
Turkmenistan is mostly a desert territory with intensive agriculture in irrigated oases and large natural gas and oil resources. This country mostly produce two kind of crops. It is cotton, which is producing for export, and wheat, which they use for own needs.
Though, agriculture consist about roughly 14% of GDP, it continues to use approximately half of the country’s workforce. Hydrocarbon exports (primarily natural gas) draw up 31% of Turkmenistan GDP. 60% of gas exports to China; Russia and Iran purchasing the remainder.
Ashgabat has investigated two initiatives to sell gas to more markets: a trans-Caspian pipeline that would carry gas to Europe and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. Both encounter large sponsoring and security challenges. These problems will not be solved soon.
Turkmenistan autocratic administration headed by presidents NIYAZOV (1991-2006) and BERDIMUHAMEDOW (since 2007) have made not big progress on developing the business climate, privatizing state-owned industries, and dealing with corruption, limiting economic progress outside the energy area. High energy prices in the mid-2000’s admitted the administration of country to launch extensive progress and social costs, including providing heavy utility subventions.
Republic of Tajikistan
Tajikistan is a poor, mountainous region with an economy depressed by minerals extraction, metals processing, agriculture, and supported by money transfers from citizens who work abroad.
This country has one of the lowest per capita GDPs among the 15 post-soviet republics. About 7% of the land area is plow. Cotton is the most important plant. Tajikistan imports about 60% of its food. Mineral resources include silver, gold, uranium, and tungsten. Industry mostly consists of small obsolete factories in food processing and light industry, substantial hydropower facilities, and a large aluminum plant – now operating well below its capacity.
Many people from Tajikistan work abroad because they can not find work.It is more than one million Tajik citizens: roughly 90% work in Russia – helping families back home through money transfers. Remittances has equivalente to nearly 50% of GDP. Some experts say that the value of narcotics transferring Tajikistan is about 30-50% of GDP.
Kyrgyz Republic
Kyrgyzstan also is a poor, mountainous region. Economy of this country mostly presented minerals recovery, agriculture and money transfers from citizens who works abroad. Cotton, tobacco, wool, and meat are the basic farm products. However, they export mostly tobacco and cotton. Other kinds of minerals to export are gold, mercury, uranium, natural gas.
The government of country wants to engage external investment to widen its export, including building of hydroelectric dams, but a tough investment climate scare off possible investors.