A puppet polling organization in Uzbekistan has revealed that 98.9 percent of the population are positively disposed toward the introduction of bank cards.
The figure defies belief considering the intensely cash-based nature of the national economy.
Local media cited slavishly government-loyal polling company Izhtimoy Fikr as stating that cards are increasingly giving way to cash in retail transactions.
“Cards are very convenient, safe and reliable means of payment,” website Nuz.uz quotes 98.9 percent of people as thinking, according to the Izhtimoy Fikr research.
Banks cards were made available to local customers in Uzbekistan in 2004 as a means of reducing the public’s reliance on cash. The payment system was first introduced in the retail and catering sectors, since these are areas of the economy where the grey economy is strongest. Authorities made it mandatory for retail outlets to install payment terminals, which were imported in large quantities from abroad.
Outlets refusing to accept payment by card were subject to substantial fines, which could be as high as the equivalent of 200 times the minimum wage. Advertisements on television and radio stations publicized telephone numbers that members of the public could call to complain about retailers’ failure to accept card payments.
The drive has been largely successful in the capital, Tashkent. But paying by card is hardly convenient, as the Izhtimoy Fikr poll claims.
In a bad year for grain, farmers in Uzbekistan are feeling pressure from all sides as they struggle to meet government-imposed quotas.
The grain harvest reached 8.2 million tons in 2015, a slight increase on the year before, and a similar amount was expected this year. Blights brought on by patches of spring and summer showers may well have put a dent in crop returns this year, however.
To ensure that the plan is fulfilled, officials are applying particularly strong pressure on farmers. Under an agreement between farmers and the government, grain growers are permitted to retain a certain amount of the crop for their own uses. Instead, local official are pressuring farmers into giving up even their own stores.
“Farmers that don’t meet the grain quota need to find the missing tons any way that they can. As a rule, they buy it from farmers with extra supplies or they pay [the government] 750,000 sum ($125) per ton. And that is while the government purchases grain for 500,000 ($84) per ton,” Muhammadasodyk, a farmer from the Ferghana Valley, told EurasiaNet.org.
Things are especially bad in arid southern regions. In the Kashkadarya region, the local government enlists policemen to confiscate grain grown on low-yield, rain-fed lands, which provokes particularly intense dismay and rage.
“All I have is 2 hectares (20,000 square meters) of land and the police brought a combine harvester to take away my crop. And while they’re doing it, they threaten and intimidate us. This is the harvest I am supposed to use to feed my family and cattle. And now are waiting for winter,” Murad, a farmer in the Yakkabagsky district of the Kashkadarya region, told EurasiaNet.org.
Even without official interference, arable farming makes for a tough, hardscrabble life in many parts of Uzbekistan
Uzbekistan is all a-hubbub these days over the case of a prominent businessman facing charges of fraud for his creation of what amounts to a crude pyramid scheme.
State television station Channel One on July 1 aired a second program in quick succession about the arrest of Ahmad Tursunbayev, who went popularly by the name Ahmadbai Chinazsky.
Tursunbayev’s arrest, in the middle of June, came as a major surprise to many.
According to Uzbek TV, 38-year old Tursunbayev and a group of around 30 collaborators duped people into handing over their savings with promises they would provide a minimum 100 percent return within the year.
The scheme appears to have gulled no small number of gullible investors. According to Uzbek state television, around 40,000 people willingly parted with cars, money and gold, apparently against written assurances that their profits would be paid. Curiously though, no guarantee was given that any money would be returned in the event of Tursunbayev’s death, presumably as some crude form of protection. Rumors on the streets of Tashkent put the number of defrauded investors even higher than that offered by Uzbek television, at around 80,000.
The scheme does not in truth appear to have been especially sophisticated. Tursunbayev’s team compiled accounting information in children’s school copybooks. Television footage showed stacks of hundreds of copybooks and huge bags spilling over with Uzbek sum and US dollars. Police reportedly seized a whopping 13.1 billion sum (around $2.1 million at the unofficial rate) and $12 million in hard cash.
In an interview with Channel One, a woman called Halima said that she sold 20 large sheep and handed Tursunbayev around $2,600 dollars in the hope of doubling it within a year. Halima said she is now penniless.
The trail of the terrorist attack on Istanbul airport that killed 42 people looks now to be leading inexorably to the former Soviet Union, and Central Asia in particular.
The New York Times cited Turkish officials as saying on June 30 that the three suicide bombers that mounted the attack were citizens of Kyrgyzstan, Russia and Uzbekistan.
Turkey has already linked this to the Islamic State militant group, which is known to have large groups of Central Asian and Russian citizens among its ranks. Estimates on the exact number of Central Asians in the group vary, however, from the low hundreds into the thousands.
Turkey has said that 13 people, including three foreigners, have been detained in connection with the attack on Istanbul’s main airport on June 28. No group has yet claimed responsibility for the attack, which also claimed victims among Uzbek citizens, according to Turkish media.
Kyrgyzstan’s Foreign Ministry cast some confusion over proceedings by telling media that it could not confirm that one of its citizens had been linked the bombings.
“Employees from the Kyrgyz consulate met with representatives from the anti-terrorism department in Istanbul. They did not confirm the information. According to them, the identity of the suicide bombers is still being established,” the ministry said.
That statement appeared to have been superseded by events, however.
The heads of state of the SCO member states at their 2016 summit in Tashkent. (photo: president.uz)
The Shanghai Cooperation Organization's summit concluded with few concrete results and plenty of reminders that the group's members have different visions for where the would-be non-Western bloc should be heading.
At the SCO's 15th anniversary summit in Tashkent, there were plenty of vague declarations about the desirability of greater economic cooperation and stepping up the fight against terrorism, but no new initiatives as to how that might be achieved.
The concrete results of the summit were so meager that Russian President Vladimir Putin was reduced to touting the new SCO Youth Card, "which would offer students discounts on travel, accommodation, and visits to museums and other cultural and historical sites in the member countries."
The much-discussed accession of India and Pakistan as full members of the SCO progressed with the signing of a memorandum of obligation. "We hope that our partners will complete these steps as soon as possible, in time for our next meeting in Kazakhstan," Putin said in his speech. Putin also pushed for Iranian membership: "We think that now that the Iranian nuclear issue has been settled and the UN sanctions lifted, there are no obstacles in the way of a positive assessment of Tehran’s membership application."
Authorities in Uzbekistan have arrested the acting general director of part US-owned carmaker GM Uzbekistan on suspicion of embezzlement, RFE/RL’s Uzbek service has reported.
Ozodlik cited an unnamed source on June 23 as saying that Rustam Rajabov is suspected of appropriating large amounts of money through “an illegal scheme during the export of cars to Russia.”
The company’s previous general director, Tohirjon Jalilov, was detained in late April over what was rumored at the time to be suspicions of a scheme to resell Ravon models intended for export on the local market. Since the vehicles sell for higher prices in Uzbekistan than in Russia, where the GM Uzbekistan exports much of its goods, it is believed the management were pocketing the difference.
Rajabov was appointed acting general director on May 10.
A Tashkent-based reporter familiar with the details of the case told EurasiaNet.org that investigators say they traced 10,900 vehicles intended for export being stored in the city of Shymkent, just across the border in Kazakhstan. The thinking is that the cars were to be brought back into Uzbekistan.
“The preliminary assessment of damages in $285 million,” the reporter told EurasiaNet.org.
GM Uzbekistan’s Ravon Gentra model retails for $6,500 in Russia and Kazakhstan, but costs $12,500 to buy in Uzbekistan, where demand is high and waiting lists to buy cars long. Another popular model, the Ravon Cobalt, costs $6,000 abroad and $12,000 on the domestic market.
GM Uzbekistan, a company with a 25,000-strong staff and an annual turnover estimated at around $4 billion, consists of a joint venture between Uzbekistan's UzAvtosanoat (75 percent) and US giant General Motors (25 percent).
Uzbekistan President Islam Karimov greets his Chinese counterpart Xi Jinping upon the latter's arrival to Uzbekistan for the SCO summit. (photo: president.uz)
As the 15th summit of the Shanghai Cooperation Organization is set to start on Thursday in Tashkent, the group is poised to continue its growth, with two new members and five new partners. The group's purpose, however, remains unclear, with its diverse members apparently unable to agree on a consistent agenda.
The biggest headline after last year's summit was that India and Pakistan were invited to join the organization as full members, the first expansion since the group was founded. (The SCO currently consists of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.)
But on the eve of this year's summit, it's not clear what the timetable for their accession is. Their final accession should take place next year, Yuriy Ushakov, a senior adviser to Russian President Vladimir Putin, said. "The process of accepting India and Pakistan into the SCO will enter the final stage and we expect that at the next summit in Kazakhstan, India and Pakistan will be finally admitted into the SCO ranks," he said.
A senior Indian diplomat suggested that the timetable may be looser and hinted that it is dependent on the desires of current member states. “We need to work out what we need to do … As far as India’s pace of accession at the SCO being a function of Russia, China and the four countries of Central Asia, I would say we see ourselves as following fairly flexible multilateralism. So we are quite happy to engage in multiple processes. We have been working with other members of SCO on several other fields,” said the diplomat, Sujata Mehta, at a press conference Wednesday.
Uzbekistan is reportedly closing its borders to all citizens from neighboring Central Asian countries in the most drastic measure adopted to date to enhance security for the Shanghai Cooperation Organization summit this month.
The plan was reported in local media on June 15 and partly confirmed by authorities in Tashkent.
“From June 15 to June 25, Uzbekistan will be halting the passage of people, transportation and cargo entering the country from Kyrgyzstan, Tajikistan, Kazakhstan and Turkmenistan,” KyrTAG news agency reported.
KyrTAG reported that an exception is being made for residents of the Kyrgyz enclave of Barak, which lies fully within Uzbek territory.
Closing borders has long become a customary practice in Uzbekistan ahead of major public events, such as the Nowruz holidays.
There had been rumors earlier this week that authorities in Tashkent would close the city off to all public transport from outside the capital from June 16 onward. Law enforcement officials denied that claim, however. (A report about the claimed transport ban on Nuz.uz has since been pulled).
The U.S.'s primary interests in Central Asia are making sure the region doesn't become a terrorist sanctuary and protecting it from Russian influence, a senior State Department official has testified. The statement suggests a shift in Washington (rhetorically, at least) toward a Central Asia policy oriented toward security and away from political reforms and human rights.
U.S. official statements about Central Asia policy usually describe Washington's interests as threefold: promoting political and economic reform, developing the region's oil and gas resources, and improving security. The introduction to the testimony of Deputy Assistant Secretary of State for South and Central Asian Affairs Daniel Rosenblum at a congressional hearing last year was typical:
Since the fall of the Soviet Union nearly 25 years ago, the United States has supported the sovereignty, territorial integrity, and independence of the states of Central Asia, while also promoting the political and economic reforms that can ensure their long-term stability and prosperity. U.S. security is directly tied to a stable Central Asia. Central Asia’s energy resources and transport corridors can help drive regional and global economic growth in the decades to come. And some of Central Asia’s most serious challenges – such as transnational crime, terrorism, violent extremism, and climate change – affect our national interests as well, and require us to work closely together with them.
For the first time in Uzbekistan’s post-Soviet history, the customary of breaking fast at sundown during the Ramadan period is being banned from mosques and restaurants.
Radio Free Europe/Radio Liberty’s Uzbek service, Ozodlik, reported this week that the ban was introduced not by the government itself, however, but by the state-run Spiritual Administration of Muslims of Uzbekistan.
“The ban on performing iftar in cafes, restaurants and mosques is not government policy. We have gone down this road bearing in mind the history of Islam. At the time of the Prophet Muhammed, iftar was organized solely for those who had little or nothing to eat. But now iftar, which had always been a manifestation of the need to care for the needy, has become another display of waste and ostentatious celebration,” Abdulaziz Mansur, the deputy head of the Spiritual Administration of Muslims of Uzbekistan, told Ozodlik in an interview.
Accordingly, the Spiritual Administration of Muslims of Uzbekistan is inviting people to invite small groups of people home instead of gathering in large groups in public places.
“In Mecca people perform iftar because people (pilgrims) do not have their own home there. Our citizens have their own home. They should have iftar at their place, within their family circle,” Mansur said.
The holy month of Ramadan began this year on June 6.
This period is typically a considerable money-spinner for cafes and restaurants in the old part of the capital, Tashkent, which would put on special menus to celebrate the daily breaking of the fast.