The seizure of power and the formation of oligarchs occur at two critical stages in the reform process, says a report released by the World Bank In April 2022,
Toward a Prosperous and Inclusive Future: The Second Systematic Country Diagnostic for Uzbekistan says the experience of transformations in other countries in the post-Soviet space, including Russia and Ukraine, shows that state capture and the formation of oligarchs most often occur at two critical stages of the reform process: 1) reduction of state control and denationalization of lands; and 2) privatization of state-owned enterprises.
Both of these stages are the most important priorities identified by the government and based on the results of the WB report for the next five years.
Lessons learned in transition economies in the post-Soviet space also show that there are usually two kinds of vested interests: 1) the desire to seize control over new resources emerging as a result of privatization (those who joined the process in the early and middle stages win); and 2) persons in an advantageous position today and interested in hindering the reform process.
Information received from all stakeholder groups during the consultations reportedly confirms that the level of both risks in Uzbekistan is high, and that there is high concern in connection with the privatization of land and state-owned enterprises.
The World Bank/s Systematic Country Diagnostic (SCD) report for Uzbekistan analyzes key challenges and opportunities for the country’s development. The SCD contains policy recommendations for removing barriers to private sector growth, reducing the state’s role in the economy, focusing on people and their human capital, and transitioning to a green economy. The report provides the foundation for selecting priority areas for the World Bank Group’s cooperation with the Government of Uzbekistan throughout the 2022-2026 period.
