Regions and Countries

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p. 4 of 19 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance E. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Uzbekistan : I. Country Performance Assessment

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C. Assessment of Socio-Environmental Performance

1. Gender Issues

17. As in most former Soviet Union states, women in Uzbekistan are well-educated and well-represented in most occupations and have equal access to education and employment opportunities. However, there is some anecdotal evidence that independence has brought a renewed interest in religion and the traditional relations between men and women that have had some confining effect on women. After independence, the Constitution confirmed, and the legal framework secured, equal rights and access to economic, social, and political activities between men and women. The general approach of the Government is to promote gender equity by encouraging women to play an active role in all spheres of life. The Government has carried out its gender policy through a number of programs and decrees. A Presidential decree on Enhancing Women's Role in Social and Government Development of Uzbekistan was introduced in 1993 as was the position of Deputy Prime Minister on Women's Issues. The Government has declared 1999 as a Year of Women, adopting the National Policy on Enhancing the Status of Women in Economic, Social, Political and Moral Spheres.

18. The participation of girls in the education system is high and, except in higher education, the system does not show any major gender bias. While maternal and infant mortality rates remain relatively high, the trend since independence has been improving substantially. The birth rate has fallen, and the mortality rate has improved. Nevertheless, there are significant inter-regional disparities in women's welfare between the richer and poor regions, as well as between the urban and the rural areas. For example, while infant mortality in 1991 - 1998 improved for the nation as a whole, it still remains high in the poor regions of Karakalpakstan and Surkhandarya. In some regions, such as those near the Aral Sea, deterioration in the ecological situation over the last two decades has had an impact on women's health.

19. The payment for labor does not discriminate against gender and age. Rather, it is determined in accordance with the occupied position. Traditionally women are employed in the social and service sectors such as education and health sectors where salaries are comparatively low. Gender-positive development is mostly visible in large cities. In the urban areas, especially Tashkent, the services and financial sectors offer employment opportunities to women as well as to men. Maternity leave and special allowances are provided for female employees. However, the restructuring and privatization of state enterprises has caused weakening of the social benefits provided to employees, including women. About half of the workers officially registered in 1999 as unemployed were women.

2. Human Development

20. In terms of human development indicators, Uzbekistan compares favorably with other countries at similar levels of per capita income. During the Soviet socialist regime, health and education coverage was expanded to virtually all the population. The Government continues to place a very high priority on human development and social protection. Uzbekistan has been in a position to substantially protect expenditures in the social sectors as it has not had to face the drastic decline in economic activity experienced by some of its neighbors. Human development indexes (HDIs) by the United Nations Development Programme (UNDP) demonstrate relatively high achievements. Despite difficult economic and social situations, HDI ranking remained in the 100 to 104 range during 1994 - 1998. However, substantial challenges confront the Government with respect to improving human development through the provision of social services. There is a need to (i) maintain the quality and delivery of basic services in the face of resource constraints, and (ii) improve management and efficiency in resource utilization.

21. Uzbekistan's well-developed human skills base is a major asset for the future development of the country. Educational attainment is high. Basic education coverage is comprehensive, with a low level of disparity between rural and urban areas and between genders. By the labor code and corresponding legislation, child labor under 14 years of age is strictly prohibited. The new education law and the National Program for the Personnel Training System extends the duration of compulsory education from nine to 12 years. All the children are obliged to go to primary and senior secondary education schools. However, enrollment in other levels of education declined. Particularly preschool enrollment was most severely hit. The main cause is the rationalization and privatization of state enterprises, resulting in closures of the preschools that used to be attached to and supported by those enterprises. The higher education and technical and vocational subsectors also require substantial review, restructuring and reorientation. The Government recognizes that the transformation to a market-oriented economy requires new skills that are not widely available in the present work force. The social and economic transition accentuates the need for further reforms in education, particularly in its role as facilitator in the efficient provision of market-oriented skills.

22. While the health care system is comprehensive, with services being widely accessible and provided mainly free of charge, there are issues related to the low quality and inefficiency of the state system of health care. To enhance the efficient use of scarce resources and to improve cost effectiveness, the Government has initiated a reform program, which includes the reorganization of health financing, the improvement of the quality of services, a shift to primary care, and the targeting of vulnerable groups.

3. Environment

23. Uzbekistan faces several environmental problems. Key environmental concerns relate to poor management of water resources (due largely to inherited Soviet era's agriculture practices) and the ecological disaster of the Aral Sea Basin. The extensive irrigation coverage, together with the deteriorating drainage system, and an excessive use of pesticides and chemical fertilizers in agriculture have resulted in severe soil damage. In addition, industrial and communal discharges have polluted surface and underground water resources in a number of industrial areas where inefficient heavy industries are located.

24. The Aral Sea, shared with Kazakhstan and once the world's fourth largest inland body of water, has shrunk to less than half its former size since the 1960s because of the overuse of water from the two main rivers that feed the sea. The desiccation of the Aral Sea has resulted in desertification of the surrounding land, which has given rise to serious health problems and destroyed livelihoods in the region. With assistance from the World Bank, UNDP, and bilateral aid agencies, an extensive program was adopted to address the Aral Sea crisis. The Aral Sea Basin Program aims at stabilizing the environment of the Aral Sea Basin, rehabilitating the disaster zone around the sea, improving the management of the basin, and developing the capacity of the regional institutions. The Government has identified the environmental problems and prioritized a program of action in the context of a National Environmental Action Plan which is ready for implementation. Remedying the problems will require strict water conservation, supported by water pricing and farm restructuring, and sustainable investment in rehabilitation of irrigation and drainage. The resolution of industrial pollution problems is linked to industrial restructuring and modernization, along with strengthening the framework for environmental regulation.

4. Governance

25. The structural reforms undertaken by the Government have addressed various facets of governance. The Government has taken initiatives to improve governance standards in the areas of accountability, predictability, participation, and transparency. To improve accountability, the Government has taken a number of important measures to enhance the efficiency of public sector management. In the area of public finance management, a new tax code was enacted in 1999, and the Government continues its efforts to improve tax administration and to rationalize public expenditures and subsidies. Effective 1 January 1999, the Government initiated civil service reform including staff downsizing by 25 percent, reflecting general budgetary affordability and reorientation and restructuring of ministries and agencies to make the civil service more merit-based and its operations more efficient and result-oriented. The Government also initiated a program to improve auditing standards and financial management in the Government and public and private entities. The Government's efforts to fight corruption and fraud, include the arrests of corrupt senior government officials and local governors and a nationwide anti-corruption campaign initiative. Further institutional and administrative reforms in the civil service would have to figure prominently in the attempt to make the system more accountable.

26. The Government has launched legal and judicial system reforms through its commitment to (i) create a strong mechanism of checks and balances including the independence of the judiciary, and (ii) reinforce the legal basis for reforms. Developing legal and regulatory frameworks are essential to enhance predictability and transparency of the system. The Government has taken measures to strengthen the legal and regulatory framework in some key sectors (e.g., financial sector, construction, private sector development, and foreign direct investment). The Government attaches great importance to developing legal information systems and enhancing information disclosures (e.g., financial disclosures in the banking system) to make a better access and wider dissemination of the information to the public.

27. To enhance participation in the development process, the Government is gradually moving away from the centralized allocation and control of resources. Some progress has been achieved in initiating enterprise reforms and privatization and corporatization of the state-owned enterprises, improving corporate governance and management, and in dismantling the state order systems for agricultural production for cotton and grain by replacement of the state procurement system. Trade and foreign exchange regime-related reforms are crucial to ensure sustainable macroeconomic stabilization and to improve greater market efficiency and resources allocation. Basic social services (such as health, education, and communal services) are being gradually decentralized from central to local governments. The ongoing process of decentralization requires special attention calling for institutional strengthening at the local level. Bolder attempts at policy reforms and a more participatory system within the Government apparatus could further enhance the development process and strengthen civil society.

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