Chapter Changes from Planned to Market Economies May Take Place
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7 HUMAN DEVELOPMENT REPORT HUMAN DEVELOPMENT IN UZBEKISTAN: chapter THE CHALLENGE OF TRANSITION 1 Human development is a process of empowerment designed to increase individ- uals life choices by expanding their capabilities. This means ensuring opportuni- ties to lead long, healthy lives, with full access to education and the means to maintain a decent standard of living. Developing these basic choices in the lives of individuals should be the most important goal of any society. Because of their intrinsic value with regard to quality of life, these basic oppor- tunities, involving longevity, education and income are the core indicators upon which the Human Development Index is based. As such they convey important evaluative significance for the analyses undertaken in the annual National Human Development Reports prepared under the aegis of UNDP. Nonetheless, these basic indicators by themselves by no means portray the sum total of human development. To evaluate fully the relative human development of a society it is equally important to consider the degree to which the process of human development is productive, empowering, equitable and sustainable. Successful human development enables individuals to make the greatest contri- Changes from planned bution possible to their society through efficient use of human and other resources. to market economies may It allows for their full participation in political, social and cultural life through free- dom of speech, freedom of press, and democratic electoral systems. Ideally, every- take place faster than one has equal access to these opportunities through the protection of human rights corresponding changes and equal treatment before the law regardless of material wealth, social status, gender or ethnicity. In ensuring this quality of life, the needs of the present gener- in the attitudes and values ation are met without compromising the opportunities of future generations, espe- of individuals cially with regard to the environment. While these principles of human development are accepted by most as essential for true growth in a society, there is far less agreement on what constitutes the most practical strategy for achieving these goals for a specific country. Some argue that a choice must be made at times between human development and economic growth, or that it is better to focus primarily on social capital or spiritual development. Others may choose strategies producing short-term social or political gains, with- out addressing issues of long-term sustainability. The selection and implementation of a comprehensive human development strat- egy is complicated further for countries in transition. These societies, in contrast to many developing countries, have had to address the problems of collapsing educa- tional and healthcare systems at a time when public resources are limited. Changes from planned to market economies may take place faster than corresponding chang- es in the attitudes and values of individuals. This in turn makes maintaining the momentum of reforms more challenging, especially when over the short-term living conditions show little or even negative growth. In addition, countries undergoing transition in the late 1990s must also deal with the pressures of globalization. In such a closely inter-related global society, it is necessary to devise growth strategies that promote the interests of individual citi- zens, while simultaneously not working to the detriment of other societies develop- ment prospects. For these reasons, the specific policies and approaches needed to promote human development in the transition countries may differ from the meth- ods taken in developing countries, as they may differ from the policies pursued by mature market economies. Over the past decade, even among the transition coun- tries themselves, a variety of development paths have been pursued in efforts to achieve the ideal goals of sustainable human development with varying degrees of success. 8 THE CHALLENGE OF TRANSITION In the following sections of this report the process of human development over the past eight years will be explored in more detail taking into consideration the specific development requirements and experiences of the Republic of Uzbekistan. THE CONTEXT OF UZBEKISTAN Since Independence in 1991, Uzbekistan has undergone a process of societal transformation, whose ultimate goal is the promotion of human development. As declared by President Islam Karimov in his 1997 work on Uzbekistan at the Threshold of the XXI Century, «the main target of the reforms is to create the necessary conditions in which every citizen of Uzbekistan, despite his ethnic origin and religion, would have possibilities to reveal his capabilities and gifts, to make his life better and spiritually richer». The initial years In comparison with other transition countries, especially the neighboring re- of transition saw publics of Central Asia, Uzbekistan has been forced to meet the challenges of transition with both inherent advantages and disadvantages. These various pecu- the emergence of several liarities specific to the republic have had a significant influence on the type of path new social problems along which reforms can be pursued, as well as the development results that can be in the republic achieved. Sector Advantages Disadvantages Population High proportion of youth, which Significant amount of resources strengthen economic production required to meet educational and potential. Lack of problems associated training requirements of youth. with an aging society. Industry Limited disruption caused by An industrial base smaller than dissolution of USSR due to relatively that of most of the other low integration in production systems republics. Outdated technology. of the fSU. Low of industrial diversity. Trade Significant resources in the form of Industry and consumption are cotton and gold that can be sold highly dependent on imports. easily in world markets for hard currency Agriculture Large potential for both domestic and Inefficient, outdated system of foreign markets. production. Macroeconomics Strong economy, low level of foreign Lack of convertibility, strict debt. currency regime. Human potential Relatively high levels of life expectancy Healthcare and educational and literacy in comparison with other facilities are inadequate, require countries having similar average levels repairs, and face insufficient of income. funding levels. The initial years of transition saw the emergence of several new social problems in the republic. Real spending in education, healthcare and science fell as a result of budget cuts and falling output levels. Living standards declined sharply due to falling wages, social security payments; and depreciating savings. With industrial collapse came greater income disparity and increased unemployment. At the same time, the threat of crime, drug trafficking, terrorism, extremism and corruption among civil servants grew. These intense challenges have led Uzbekistan to choose its own way of reform, preferring a gradual transition to sudden and complete liberalization. Instead of abolishing the states role in managing the economy, the states role has been strengthened in reforming all aspects of social and economic life. The tables below show the performance of all five Central Asian republics in terms of their HDI at the start of transition and then in 1997. Since the methodology for computing the global HDI changed between 1991 and 1997, the absolute values for the HDI are not comparable. Nonetheless, their relative rankings still offer a good statistical comparison of what has happened in Central Asia over the past several years with respect to HDI and individual HDI core indicators. 9 HUMAN DEVELOPMENT REPORT Human Development Indicators in Central Asian countries, 1991 HDI Country Life expectancy Adult literacy Average income rank at birth (years) (%) per capita, (PPP$) 1 Kazakhstan 69 97.5 4490 2 Turkmenistan 66 97.7 3540 3 Kyrgyzstan 68 97.0 3683 4 Uzbekistan 69 97.2 2790 5 Tajikistan 70 96.7 2180 Source: Central Asia 2010, UNDP, 1999 Human Development Indicators in 1997 a picture of change in Central Asia HDI Country Global Life Adult School Average rank HDI rank expectancy at literacy enrolments income per birth, years % % capita PPP$ 1 Kazakhstan 76 68 99 76 3,560 2 Uzbekistan 92 68 99 76 2,670 3 Turkmenistan 96 65 98 90 2,109 4 Kyrgyzstan 97 68 97 69 2,250 5 Tajikistan 108 67 99 69 1,126 Source: Global HDR 99 WHERE DOES UZBEKISTAN STAND TODAY? The following table shows the position of the republic relative to the global community in terms of a range of basic quality of life indicators. The table provides statistical comparisons of Uzbekistan to Eastern Europe and the CIS, the industrial countries of Europe and North America, and also to the world as a whole. Indicators Uzbekistan Eastern Europe Industrialized World and CIS countries Life expectancy at birth (years), 1997 67.5 68.6 77.7 66,7 Adult literacy rate (%), 1997 99 98.7 98.7 78.0 Real GDP per capita (PPP$), 1997 2,670 4,243 23,741 6,332 Seats in parliament held by women (as % of total) 9.4 9.1 19 12 People not expected to survive to age 60 (as % of total 25.1 24.7 10.6 25.3 population), 1997 Maternal mortality rate (per 100,000 live births), 1990 55 62 13 437 Infant mortality rate (per 1,000 live births), 1997 22.8 26 6 58 Tuberculosis cases (per 100,000 people), 1997 52.2 61.3 14.8 68.5 Doctors (per 100,000 people), 1993 335 356 253 122 R&D scientists and technicians (per 1,000 people),