The Republic of Uzbekistan’s free economic zones’ institutional and legislative framework was discussed at a working meeting between the Agency for Strategic Development (ASR) and the International Finance Corporation (IFC). The IFC consultant was briefed on the tasks that need to be completed to further develop the nation’s FEZ by representatives of the Central Bank, MIVT, the Ministry of Finance, AUGA, the Export Promotion Agency, the Center for Integrated Examination of Projects, and Import Contracts under the Ministry of Economic Development and Poverty Reduction, “Uztrade” JSC, and “Uzsanoateskport” JSC.
A project to better optimize the operations of free economic zones is now being worked on by the IFC, the Government of the Republic of Uzbekistan, and the SDA. The emphasis is on a thorough examination of the FEZ directorates’ work in preparation for the following creation of methodological development documents.
International Finance Corporation consultant ARMAN JUBAEV: This week, there were successful travels to the regions where ASR experts and the travelers examined the operations of the Angren, Khozarasp, and Urgut FEZs.
Instead of focusing on the zones as a whole, we examined the directorate’s activities, including its institutional organizational structure, senior staff selection procedures, the foundations for training and motivation, as well as long-term planning, and the FEZ’s financial stability. And we discovered that not all FEZs operate as effectively as others.
There are certain working moments, the majority of which are, in one way or another, related to the existence of specific real conditions that the zone administration, in theory, cannot regulate. In order to boost the financial and marketing aspects of the FEZ, the IFC will offer a number of methodological recommendations.
I should also mention that the regions are experiencing a severe lack of service quality. Regarding the construction of roads and the delivery of gas and electricity. The issue of FEZs paying for some of the infrastructure expenditures themselves will also need to be taken into consideration, and there will need to be some interaction with local authorities.
We raised several inquiries on the relationship between FEZ and other sectoral ministries and departments during the working session alongside SDA representatives. For instance, bank representatives discussed their interactions with potential FEZ partners. The choice of the management staff for the directorates was another topic that was covered by the MIVT members.
In order to improve cooperation, we also advise establishing a formal structure for exchanging expertise, first inside the FEZ itself. Second, we are aware that research into the finest methods around the world has already been done, but regrettably, not all nations are in the same circumstances. If some countries want to develop their exports, others must focus on job creation. The fundamental suggestion is to broaden the planned horizon, after all. Unfortunately, up until recently, budgetary priorities and planning techniques have changed somewhat frequently.
FEZs were under the control of some organizations, then under the control of others. And probably a significant step will be the creation of a five-decade development plan. To make it clear who and what does not have enough money, what is needed to create an additional 10, 20, and 30 thousand jobs.
It is conceivable to use the FEZ experiences of nations like Turkey, China, and South Korea in Uzbekistan. They resemble one another a much. In this case, FEZs have some autonomy in deciding which participants will offer their services. customs, trading in particular. As a result, the businesses that run and offer these services are also members of economic zones, which is critical from a management perspective to maintain the required level of service quality.
Strategic Development Agency’s Press Office
