Page 57 - BNE_magazine_11_2019

bne November 2019
Opinion 57
independent business community. The creation of state mandated, and funded, business organizations undermines economic reform efforts by creating an echo chamber that only tells the government how well it is doing and how swell reforms are going. One only needs to look at the Kazakh economy to see the results. Decades of trying to diversify its economy away from natural resources has been largely fruitless.
Independent business organizations, funded by membership dues and services, are a key pillar for constructive dialogue with the government on vital economic reform issues. The membership of these organizations isn’t seeking a revolution, but rather stable progress in reforms that have a tangible effect on the business enabling environment. These are businesses after all with a great deal at stake in the success of the Uzbek economy. As such, these organizations will prove vital to the sustainability of reforms and, more importantly, achieving real results towards creating a better economy
for all Uzbeks. The conversations may be uncomfortable at times, for example when talking about benefits state owned enterprises enjoy that are denied to the private sector, but these are necessary conversations that need to occur to create a brighter future for Uzbekistan.
The Uzbek government has consistently said that it wants to create a more innovative economy and stem the brain and labour drain to neighbouring countries.
Engaging with an echo chamber is not the way to get the growth the Uzbekistan government wants and only the private sector can deliver. As the degree of difficulty in drafting and implanting reforms increases and these reforms begin to encroach on vested interests the government will need partners in the reform process. Through these early efforts to create sustainable independent associations
the Uzbek business community has demonstrated it willingness to engage with government on a professional and constructive manner.
If you want to judge the sustainability and commitment
to reforms in Uzbekistan watch how the government interacts with these fledgling representatives of the business community. The more we see them engaged in the reform process the better the odds that Uzbekistan can achieve what is has set out to do – fundamentally change the relationship between society and government and provide increased economic growth. It’s a gargantuan task, but if done correctly Uzbekistan will quickly become the destination of choice
for business in Central Asia, a region with enormous and underappreciated potential.
Event information:
WWW.RAEX.EU
Media Partner:
International Forum -
Responsible investments in the CIS region Frankfurt am Main 17-18 December 2019
Comparison of RI practices in the CIS countries and Germany:
● Market regulation for RI and green bonds: EU and CIS experience ● Pioneers of issuing green bonds in the CIS countries
● ESG factors in investment strategies
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