Tuesday, February 16, 2010

Uzbekistan's Successful Economic Development Plan

From Terry McKinley's study, published by the Center for Development Policy and Research at the School of Oriental and African Studies (UK) (ht BrettonWoodsProject.Org). Conclusion:
In general, Uzbekistan’s heterodox policies have served it fairly well. It was able to successfully moderate the hardships of its early transition, resume credible rates of economic growth by the late 1990s, and substantially restructure its economy to be more self-sufficient in such critical items as energy and food.

Its restructuring has enabled it to avoid some of the worst effects of the food and fuel crisis of mid-1998 and the global financial crisis and recession of 1998-1999. Aspects of Uzbekistan’s development model could certainly be criticized (see McKinley and Weeks 2009). Employment growth has consistently lagged behind economic growth and poverty reduction has been slow.

Yet by any standard barometers of economic performance—as well as by comparison with other low-income countries—Uzbekistan has been relatively successful over two decades of transition and development, though its achievements appear to remain a frustrating puzzle to many orthodox economists.