Uzbekistan is one of the fastest growing economies in the world. Structural changes have been occurring during the last two decades since its independence in 1991. In this paper we analyze the structure of the economy of Uzbekistan to measure the influence of agricultural sector on it. By reviewing the dynamic changes in agricultural development in Uzbekistan for the last 20 years, including share of agriculture in GDP, population, employment in agriculture, etc., we argue that growth in agricultural productivity is central to development, a message that also appears prominently in the traditional development literature.

1. AGRICULTURE AND ECONOMIC
DEVELOPMENT IN UZBEKISTAN
Numonjon Malikov – PhD student
UNIVERSITY OF WORLD ECONOMY AND
DIPLOMACY

2. Content:
• Background
• Trends in economic development of Uzbekistan
• Contribution of agriculture to the economic development
• Role of labor force in agricultural sector
• Agricultural challenges in Uzbekistan
• Conclusion

3. Background
• Agriculture has multifunctional role to play in economies
• Supply with food and provides food security to majority of population
• Provision of employment of population
• Supply foreign earnings through export of agricultural production
• Supply with raw materials to agro-industries and other sectors of
economy

4. A review of agriculture in Uzbekistan
Agriculture is extremely important for
social-economic development of Uzbekistan
•More than 60% of population are living in
rural areas;
•Around 30% of population are employed in
agricultural sector;
•Around 17% of GDP produces in agriculture;
•Only 10% of land in Uzbekistan is arable
land;
•53% of arable land suffers from soil salinity
•the population is increasing about 1,5%
annually (31,5 mln. - 2016);
•divergence on the use of transboundary
waters in Central Asia;
•indirect impact of Russian economic
sanctions to the country.

5. Agricultural development in Uzbekistan
Uzbekistan is one of the major countries in the region producing agricultural products, the first
place in agricultural production in Central Asia. Total volume of fruits collection makes about 4/5 of
total production in the region.
In recent years, Uzbekistan has become a major exporter of high quality and competitive fruit and
vegetable products. Over the past 10 years
•the volume of processing of vegetables and grapes increased by 3.5 times,
•including the canned fruits and vegetables by 2.5 times,
•dried fruits – 4 times,
•natural juices – 7 times.
•More than 16% of total production of vegetables and grapes are processed.
Currently, more than 180 types of fresh and processed fruit and vegetable products are exported.
Its share in the structure of exports is 73% from agricultural production.

6. Source: World Bank 2015

7. Source: World Bank 2015

8. Source: World Bank 2015

9. Source: World Bank 2014

10. Agricultural policy of Uzbekistan
• From the first days of independence of the Republic of Uzbekistan was clearly
defined strategy of development of agriculture, which was based on
a) the diversification of agriculture,
b) a departure from a focus on the monoculture of cotton,
c) the self-sufficiency in food products in the first place, the provision of
grain and overall food sovereignty.
• Agrarian reform was aimed at the widespread introduction of market relations
and development of private ownership.
• Unprofitable and inefficient collective and cooperative farms were liquidated,
and their lands are rented to private individual farmers and dekhans for long
term possession (till 50 years).

11. Agricultural challenges in Uzbekistan
• Imbalance in the production, distribution, storage, purchase of agricultural
products
• The long chain of intermediaries and dealers to the end user, reducing profit
margins of farmers and dekhkan farms, lost to waste and do not reach the
customer.
• Need to improve agricultural productivity, processing, reduction of losses from
spoilage at the stage of production and sale to the final consumer (construction
of vegetable stores and industrial refrigerators).
• Increase employment in rural areas through the creation of new jobs, additional
handling and processing, storage of horticultural products, the expansion of
services.
• Technical and technological lag in updating the fixed assets and technological
equipment, poor implementation of information and communication
technologies in the industry.

12. Conclusion
For a number of agricultural issues notes the complexity of the
distribution and implementation of national and international scientific
developments in farming, and in general agriculture.
The increase of economic efficiency of agricultural production and
depends on many factors, in particular
•the access to new technologies and
•equipment of agricultural production,
•training, knowledge, skills,
•strengthen information flows, etc.