Uzbekistan

B

Mining

Uzbekistan has abundant mineral wealth, and developing the country’s mining industry is an economic priority. The export of metals is now second only to cotton. Uzbekistan is among the world’s leaders in gold production, extracting 93 metric tons in 2004. Almost all of the gold is exported. Uzbekistan’s Muruntau gold mine, located in the Qyzylqum desert, is one of the world’s largest open-pit gold mines. The country also produces quantities of copper, silver, tungsten, molybdenum, and uranium.

Uzbekistan has major reserves of fossil fuels. The country produces large quantities of natural gas, some of which it exports. The country’s petroleum reserves produce enough for domestic consumption. Unlike some other countries in Central Asia, Uzbekistan has not sought to become an exporter of oil. Government subsidies keep domestic prices for oil and gas low. Uzbekistan also has significant reserves of coal, about one-third of which is highly valued anthracite.

C

Manufacturing

Little industrial development occurred in Uzbekistan under Soviet rule besides that related to the cotton industry, such as fertilizer production and ginning. Since independence, however, Uzbekistan has begun to develop its industrial base. Textile manufacturing, which was limited in the Soviet era, is expanding. Automobiles and trucks are assembled through agreements formed in the mid-1990s with German and South Korean manufacturers. Transport and passenger aircraft are produced near Toshkent. Industry, including mining, manufacturing, and construction, employs 20 percent of the workforce.

D

Energy

Some 84 percent of Uzbekistan’s electricity is generated in thermal plants burning natural gas or, to a lesser extent, coal. Hydroelectric facilities produce the remaining 16 percent. The country is an important component of the electrical supply system in Central Asia, both importing and exporting large quantities of electricity.

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E

Currency and Trade

The currency of Uzbekistan is the som, which was first issued in 1994. The government has maintained a fixed exchange rate on the som, rather than allowing its value to be determined by market forces.

Uzbekistan maintains strong economic ties with many former Soviet republics, including its Central Asian neighbors. Russia is by far its largest trading partner, as during the Soviet period. However, an increasing share of Uzbekistan’s trade is with nations beyond former Soviet borders, including European countries, Turkey, Japan, and China. Chief exports are cotton, light industrial goods, natural gas, and electricity. In 1994 Uzbekistan formed a trilateral economic and defense union with Kazakhstan and Kyrgyzstan; with the addition of Tajikistan in 1998, the four nations formed the Central Asian Economic Union (renamed the Central Asian Economic Forum in 2001).

VI

Government

Uzbekistan promulgated its first constitution as an independent republic in 1992, replacing the constitution of the Soviet period. The constitution declares Uzbekistan to be a secular and democratic republic and guarantees basic human rights. All citizens aged 18 and older may vote.

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