HUMAN RIGHTS CONCERNS GROW AS UZBEKISTAN’S ECONOMY FALTERS
Mark Berniker: 3/26/03

Human rights advocates objected when the European Bank for Reconstruction and Development (EBRD) announced plans to hold its annual meeting in Uzbekistan in May. Some of these same advocates are now praising the EBRD after it warned Uzbek President Islam Karimov that it might limit loans if Tashkent does not take aggressive steps to promote democratic and economic reforms.

The EBRD issued a stern assessment March 16 of Uzbekistan’s record of domestic repression. The bank castigated the Karimov administration, saying "several deadlines for currency convertibility have lapsed, and new trade barriers have been erected." The bank also expressed "serious concerns" about the government’s commitment to democratic principles and human rights. The EBRD statement comes just weeks after an International Monetary Fund (IMF) mission raised concerns about the Uzbek reform process. [For background see the Eurasia Insight archive].

By linking economic development to Uzbekistan’s political and social progress, the EBRD validated complaints that other organizations, such as the International Crisis Group, have long made. [For background, see the Eurasia Insight archives].

Human rights groups quickly applauded the EBRD statement. In a letter of support, Elizabeth Anderson, head of Human Rights Watch’s (HRW) Europe and Central Asia division, wrote: "The Bank has made it clear that it expects reform in exchange for engagement. The ball is now in Karimov’s court, and the international community is watching closely what steps are taken as a result."

So far, Karimov has appeared impervious to international pressure. State-controlled Uzbek media largely ignored the criticisms raised by both the IMF and EBRD. Uzbek television, in a March 19 report, even hailed the EBRD’s commitment to cooperation with Uzbekistan. "The forthcoming annual meeting of the Board of Governors of the EBRD will be held in Tashkent. This fact is further proof that Uzbekistan’s prestige on the international arena is growing all the more," the report said.

While the government seems intent on keeping Uzbek citizens in the dark about criticism, Karimov is taking steps to satisfy the concerns of international lenders. On March 25, for example, Karimov ordered sweeping changes in the country’s agricultural sector designed to spur individual initiative. The decree seeks to abolish "administrative-command" controls over the agricultural sector and grants farmers decision-making powers over what crops to grow. It also seeks to permit farmers to establish their own channels for selling their produce. Approximately 45 percent of Uzbeks are employed in the agricultural sector.

Given the fact that Karimov’s administration has repeatedly reneged on commitments to liberalize the country’s currency, international experts are taking a cautious approach on the announced agricultural sector reforms. In any event, overhauling agriculture will not be sufficient to place Uzbekistan on a sound economic development course.

"The real purchasing power of the population has been declining and we’d like to help them design policies," says J. Erik de Vrijer, Uzbekistan mission chief for the IMF. "It is very difficult for private enterprise to operate with the restrictions on both domestic and foreign trade. New trade restrictions need to be removed, as trade activity is declining."

The EBRD has echoed de Vrijer’s reform ideas. In addition, EBRD and IMF experts continue to urge Karimov’s administration to introduce currency convertibility and to hasten the privatization process. In his February 17 speech, Karimov acknowledged that private businesses comprised 35 percent of 2002 output, but he added that a so-called "non-state" sector contributed an additional 38 percent.

Editor’s Note: Mark Berniker is a freelance journalist specializing on Eurasian affairs. This is part five of an eight part series on political risk in Eurasia.

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Posted March 26, 2003 © Eurasianet
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