51350-002: Economic Management Improvement Program | Asian Development Bank

Uzbekistan: Economic Management Improvement Program

Sovereign (Public) Project | 51350-002 Status: Approved

The proposed economic management improvement program aims to strengthen economic management in Uzbekistan and thus support macroeconomic stability and sustained high growth. Macroeconomic stability, in turn, implies stronger resilience to adverse economic shocks. This is of critical importance in Uzbekistan as the country is pursuing regional integration and economic diversification. The program will introduce important fiscal reforms to ensure fiscal sustainability; improve governance in state-owned enterprises (SOEs) to make their operations financially viable; improve access to bank finance by strengthening bank supervision so as to facilitate competitive financing of private sector operations (especially small and medium enterprises); and strengthen economic data collection, analysis, management, and dissemination systems to bolster economic decision making. The programmatic approach and policy-based loan will finance two subprograms to be implemented during 2018 2019.

Project Details

Project Officer
Mukhopadhyay, Hiranya Central and West Asia Department Request for information
Country
  • Uzbekistan
Sector
  • Public sector management
 
Project Name Economic Management Improvement Program
Project Number 51350-002
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA: Economic Management Improvement Program
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Public sector management / Public expenditure and fiscal management

Gender Equity and Mainstreaming No gender elements
Description The proposed economic management improvement program aims to strengthen economic management in Uzbekistan and thus support macroeconomic stability and sustained high growth. Macroeconomic stability, in turn, implies stronger resilience to adverse economic shocks. This is of critical importance in Uzbekistan as the country is pursuing regional integration and economic diversification. The program will introduce important fiscal reforms to ensure fiscal sustainability; improve governance in state-owned enterprises (SOEs) to make their operations financially viable; improve access to bank finance by strengthening bank supervision so as to facilitate competitive financing of private sector operations (especially small and medium enterprises); and strengthen economic data collection, analysis, management, and dissemination systems to bolster economic decision making. The programmatic approach and policy-based loan will finance two subprograms to be implemented during 2018 2019. Attached transaction technical assistance will assist in implementing the program.
Project Rationale and Linkage to Country/Regional Strategy Uzbekistan's economic growth has been strong in the past decade and helped reduce poverty levels. Strong external demand and buoyant export performance of gas, gold, and copper, aided by high commodity prices, generated state budget revenues that financed large-scale public investment in infrastructure development and industrial modernization. The abundant remittances, mainly from Russian Federation, and consistent increases in public sector wages and pensions supported consumption growth. However, from 2013 onwards, declining global commodity prices, subdued growth in the People's Republic of China and, more recently economic downturn in the Russian Federation successively affected Uzbek exports, budget revenues and household incomes. In response, authorities implemented countercyclical fiscal and monetary policies to stimulate domestic demand. Consequently, gross domestic product (GDP) growth slowed only marginally from 8.1% in 2014 to 7.8% in 2016. However, growth is expected to have declined further in 2017, to 5.5%, as economy adjusts to adverse impacts of a significant devaluation of local currency. Rising inflationary pressures from devaluation subdued construction and service activities.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Mukhopadhyay, Hiranya
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
5 Mustaqiliik Square
Tashkent 100008
Republic of Uzbekistan
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 03 Jan 2018
Last Review Mission -
Last PDS Update 12 Mar 2018

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