DM Monitoring
TASHKENT: The World Bank’s Board of Executive Directors approved a $500 million Development Policy Operation (DPO) to support further reforms to strengthen the transparency and inclusiveness of Uzbekistan’s ambitious economic and social transformation, local media reported on Thursday.
The World Bank’s support under this Development Policy Operation has helped the Government of Uzbekistan mitigate the negative economic and social impacts of the COVID-19 crisis while also supporting the continued implementation of Uzbekistan’s 2017-2021 Development Strategy. In addition to launching a large anti-crisis program, the Government has also enacted several important reforms over the last year to accelerate Uzbekistan’s transition to an open, competitive, and more inclusive market economy, the World Bank said.
Several major reforms implemented by the Government under this Development Policy Operation include: (i) the transformation of the previously restrictive propiska (local residence permit) system into an efficient electronic residency registration process; (ii) the cancellation of state production targets and mandatory procurement of cotton; (iii) the reduction of subsidized state bank lending to state-owned enterprises (SOEs); (iv) the acceleration of reforms to improve the performance, and reduce the number, of state-owned enterprises; (v) increased accountability by the Parliament and kengashes (local elected bodies) of central and regional government budgets; (vi) the implementation of laws to reduce gender-based violence and create equal access to jobs and access to public services for women; and (vii) the expansion of COVID-19 social assistance and the nationwide launch of the Government’s new Unified Social Registry system.
“The Development Policy Operation approved today helps cement important reforms that have been enacted since 2017 and creates a strong and transparent foundation for more complex reforms that will reduce the state’s control over resources and its role in the economy,” said Marco Mantovanelli, World Bank Country Manager for Uzbekistan. “The operation also supports the Government’s focus on ensuring that the transition creates tangible benefits for citizens from an early stage.
