Uzbekistan is a dry, landlocked country of which 11% consists
of intensely cultivated, irrigated river valleys. More than 60% of its population lives in densely
populated rural communities. Uzbekistan is now the world's second-largest cotton exporter, a large
producer of gold and oil, and a regionally significant producer of chemicals and machinery. Following
independence in December 1991, the government sought to prop up its Soviet-style command economy with
subsidies and tight controls on production and prices. Uzbekistan responded to the negative external
conditions generated by the Asian and Russian financial crises by emphasizing import substitute
industrialization and by tightening export and currency controls within its already largely closed
economy. The government, while aware of the need to improve the investment climate, sponsors measures
that often increase, not decrease, the government's control over business decisions. A sharp increase
in the inequality of income distribution has hurt the lower ranks of society since independence.
Gross Domestic Product (GDP) composition by sector:
agriculture 36%, industry 21%, services 43% (2001)
Labor force (by occupation): agriculture 44%, industry 20%, services 36% (1995)
Unemployment rate: 10% plus another 20% underemployed (2001)
Industries: textiles, food processing, machine building, metallurgy, natural
gas, chemicals
Agriculture - products: cotton, vegetables, fruits, grain; livestock
Exports - commodities: cotton, gold, energy products, mineral
fertilizers, ferrous metals, textiles, food products, automobiles (1998)
Exports - partners: Russia 19.9%, Italy 8.6%, Tajikistan 7.7%, South Korea
5.6%, Kazakhstan 5.1%, US 4.7%, Turkey 4.4%, Japan 4.3% (2002)
Imports - commodities: machinery and equipment 49.8%, foodstuffs 16.4%,
chemicals, metals (1998 est.)
Imports - partners: Russia 24%, Germany 10.8%, South Korea 10%, US 7.3%,
China 5.5%, Kazakhstan 5.3%, Turkey 4.9% (2002)