Uzbekistan

Uzbekistan is a low-income country suffering from high levels of poverty. On current trends, it is unlikely to meet at least one of the Millennium Development Goals (MDGs) (HIV/AIDS and Tuberculosis (TB) incidence).

The authorities argue that the threat from the growing regional drugs trade and terrorism merits a measured approach to border security. However, the closure has stunted trade, the impact of which is felt both in Uzbekistan and in its neighbouring countries.

Uzbekistan is a strategically important country for regional cooperation in Central Asia. It has significant oil and gas reserves, but the revenues from these natural resources are not being managed to reduce poverty and promote sustainable and equitable growth.

For more information about the political and economic situation in Uzbekistan please see theForeign and Commonwealth Office (FCO) Uzbekistan site.

DFID engagement

The poor environment for reform and policy dialogue in Uzbekistan has meant that DFID's engagement in the country is limited to a few select areas. DFID has committed £1 million (2004-06), and has geared it programme towards:

• Supporting the Poverty Reduction Strategy Paper (PRSP) process through joint working with multilateral donors;
• HIV/AIDS and poverty alleviation, and
• Collection and analysis of livelihoods data.
• DFID has expressed its interest in engaging in Uzbekistan's fairly recent 'Welfare Improvement Strategy, in particular in encouraging wider civil society participation in the dialogue on policy proposals.

As a major shareholder in theEuropean Bank for Reconstruction and Development (EBRD), the UK has been working closely with the Bank and other partners in support of the economic and political benchmarks in the EBRD's country strategy for Uzbekistan.

Other Donors

The Uzbek Government has recently drafted an Interim-PRSP ('Welfare Improvement Strategy Paper of the Republic of Uzbekistan 2005-2010'). An inter-donor group ofThe World Bank,The Asian Development Bank (ADB) andThe United Nations Development Programme (UNDP) have been central in pushing forward support for this Interim-PRSP.

The Global Conflict Prevention Pool (GCPP), which was established in March 2001, funds high impact initiatives in Central Asia to support peace building and conflict prevention activities.

Priorities include working with others to tackle 'frozen' or potential conflict in Georgia, Armenia, Azerbaijan and Moldova, reducing tensions in Central Asia and helping the Russian government develop a foreign policy of constructive engagement on matters of common concern.

Useful Links

• MDGs DFID
• The International Monetary Fund (IMF) and Uzbekistan
• The European Union (EU) and Uzbekistan
• The Organization for Security and Co-operation in Europe (OSCE) Uzbekistan
• The British Embassy in Uzbekistan

Last updated: 12 August 2005