Economic Overview
Uzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. more than 60% of its population lives in densely populated rural communities. uzbekistan is now the world's second-largest cotton exporter and fifth largest producer; it relies heavily on cotton production as the major source of export earnings. other major export earners include gold, natural gas, and oil. following independence in september 1991, the government sought to prop up its soviet-style command economy with subsidies and tight controls on production and prices. while aware of the need to improve the investment climate, the government still sponsors measures that often increase, not decrease, its control over business decisions. a sharp increase in the inequality of income distribution has hurt the lower ranks of society since independence. in 2003, the government accepted article viii obligations under the imf, providing for full currency convertibility. however, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity. the central bank often delays or restricts convertibility, especially for consumer goods. potential investment by russia and china in uzbekistan's gas and oil industry may boost growth prospects. in november 2005, russian president vladimir putin and uzbekistan president karimov signed an "alliance," which included provisions for economic and business cooperation. russian businesses have shown increased interest in uzbekistan, especially in mining, telecom, and oil and gas. in 2006, uzbekistan took steps to rejoin the collective security treaty organization (csto) and the eurasian economic community (eurasec), both organizations dominated by russia. uzbek authorities have accused us and other foreign companies operating in uzbekistan of violating uzbek tax laws and have frozen their assets.
Environmental Issues
Shrinkage of the aral sea is resulting in growing concentrations of chemical pesticides and natural salts; these substances are then blown from the increasingly exposed lake bed and contribute to desertification; water pollution from industrial wastes and the heavy use of fertilizers and pesticides is the cause of many human health disorders; increasing soil salination; soil contamination from buried nuclear processing and agricultural chemicals, including ddt
Government Type
Republic; authoritarian presidential rule, with little power outside the executive branch
Population
27,345,026 (july 2008 est.)
Location
Central asia, north of afghanistan
Area
Total: 447,400 sq km
land: 425,400 sq km
water: 22,000 sq km
Slightly larger than california
Country Aliases
Conventional long form: republic of uzbekistan
conventional short form: uzbekistan
local long form: ozbekiston respublikasi
local short form: ozbekiston
former: uzbek soviet socialist republic
Capital
Name: tashkent (toshkent)
geographic coordinates: 41 20 n, 69 18 e
time difference: utc+5 (10 hours ahead of washington, dc during standard time)
Military Service
18 years of age for compulsory military service; 1-year conscript service obligation; moving toward a professional military, but conscription will continue; the military cannot accomodate everyone who wishes to enlist, and competition for entrance into the military is similar to the competition for admission to universities (2007)
International Disputes
Prolonged drought and cotton monoculture in uzbekistan and turkmenistan creates water-sharing difficulties for amu darya river states; field demarcation of the boundaries with kazakhstan commenced in 2004; border delimitation of 130 km of border with kyrgyzstan is hampered by serious disputes around enclaves and other areas
Sources: Central Intelligence Agency (CIA)
