Uzbekistan: Karimov’s Model of Economy; Dynamic or Paradox. A Critical Study.

Abstract

The liquidation of seven decades communist rule in central Asia in 1991, has witnessed an unprecedented politico-economic experiment. The shift from Planned Economy to the revolutionary transition of market economy is complicated process for newly installed governments. Uzbek Economic transition in the post- Barrack-type of Socialist economic system was deemed as unique. The transition policy as proposed by neo-classical economists was based on the so-called Washington Consensus focusing on liberalization, privatization macro-economic stabilization and opening of post-socialist economies. In order to handle the abrupt transition, the new nation-states adopted different approaches, Uzbekistan the exceptional and extraordinary in its approach of gradualism. The approach proved more or less progressive for the Republic in making its robust economic performance in regional and international markets. Uzbekistan experienced relatively low output decline compared to other countries in the region as President Islam Karimov adopted a state-led approach, and devised its own model of economy as ‘Road-Map’ its mild economic stabilization measures have played a vital role in maintaining foreign exchange inflows and growth. In the mid of 1990’s Uzbekistan join its hands with many international organizations in order to have an economic stability. According to many statistical reports of Asian Development Bank (ADB) and International Monetary Fund (IMF) Uzbekistan has achieved miraculous socio-economic development since independence. Today Uzbekistan is an integral part of the world community and global financial-economic market.

Keywords: Islam Karimov, Uzbekistan, Gradualism, Economy, Approach.