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U4 Expert Answer U4 Expert Answer Overview of corruption and anti-corruption: Uzbekistan Query What is the present corruption situation in Uzbekistan? Content Summary 1. Overview of corruption in Uzbekistan Reports from various sources consulted for this 2. Legal and institutional anti-corruption expert answer describe Uzbekistan as an framework oligarch-authoritarian state where public 3. References resources are misused to sustain power to the benefit of those in or close to the ruling elite. While there is limited information regarding the extent and forms of corruption in the country, available evidence suggests that corruption is widespread and affects the daily lives of citizens. Corruption allows the elite to illegally appropriate the country`s natural resources and acts as a facilitator of human rights violations in cotton plantations. The government’s response to widespread and systemic corruption has been weak, with extensive emphasis given to anti-corruption training. Legal and institutional reform is needed to ensure meaningful separation of powers and adequate public accountability of government bodies. Author: Maíra Martini, Transparency International, [email protected] Reviewed by: Marie Chêne, [email protected] Date: 18 September 2015 Number:2015:18 U4 is a resource centre for development practitioners who wish to effectively address corruption challenges in their work. Expert Answers are produced by the U4 Helpdesk – operated by Transparency International – as quick responses to operational and policy questions from U4 Partner Agency staff. Overview of corruption and anti-corruption: Uzbekistan 1. Overview of corruption in Extent of corruption Uzbekistan Major international governance indicators point to widespread and endemic corruption in Uzbekistan. Background In 2014, the country ranked 166th of the 175 Uzbekistan is a resource rich, doubly landlocked countries assessed in the Transparency country in Central Asia. One of the world’s largest International Corruption Perceptions Index (CPI), cotton producers and endowed with natural gas, scoring 18 on a scale of zero (highly corrupt) to uranium and gold, among other minerals, the 100 (highly clean). The country is the second country still struggles to achieve sustainable worst performer in the region after Turkmenistan economic and social development. with 17 points. While there are limited reliable independent These findings are consistent with the World statistics related to the country’s social-economic Bank’s 2013 Worldwide governance Indicators in context, at least 16% of the population is thought which Uzbekistan performs poorly on all the six to live below the poverty line, 75% of whom live in dimensions of governance assessed (voice and rural areas (UNDP 2014). The country’s unequal accountability, political stability and absence of distribution of resources particularly affects violence, government effectiveness, regulatory women and children (Bertelsmann Foundation quality, rule of law and control of corruption). In 2014). fact, the country has systematically scored poorly on the control of corruption indicator with a Since 1991, Islam Karimov has governed percentile rank of eight in 2013 (where zero Uzbekistan. Under his rule, opposition groups, corresponds to the lowest rank and 100 to the civil society activists and the media have been highest). banned or brutally suppressed (Bertelsmann Foundation 2014). Currently, only a limited Moreover, 20% of Uzbek respondents say anti- number of political parties connected to the ruling corruption measures as the most important government are allowed to operate. Opposition development priority in Uzbekistan (World Bank, parties operate illegally, mainly from outside the 2013). Close to 20% also believe that anti- country (Freedom House 2014). corruption measures would contribute greatly to fighting poverty and to generating economic Elections are neither free nor fair and the growth. president exercises control over all branches of government, using public resources to punish or reward individuals and political groups Forms of corruption (Bertelsmann Foundation 2014). In addition, the government has an extensive track record of Bribery and extortion human rights violations. In spite of this, Western Corruption permeates all levels of the state governments continue doing business and apparatus. While there is limited research engaging with the president and his close available regarding companies’ and citizens’ associates (Follath 2015), as many Western experience with corruption, available evidence nations see him as an ally in the fight against suggests that often citizens and businesses are terrorism and a prospective business partner expected to pay bribes to assess public services. given the country’s extensive natural resources The 2013 Enterprises Survey reported that about (OCCRP 2015). 12% of respondents expected to give gifts to get an operating licence. This particularly affected Within this framework, substantial governance small and medium size enterprises, with close to and anti-corruption reforms are needed to improve 16% of respondents expecting to give gifts in the country’s checks and balance mechanisms, exchange for operating licences (World Bank and transparency, and accountability of government International Financial Corporation 2013). These bodies (UNDP 2014). This answer provides an numbers are relatively low in comparison to the overview of corruption and anti-corruption world average, but given the high level of measures in the country. censorship in the country, they may not reflect the reality. www.U4.no U4 EXPERT ANSWER 2 Overview of corruption and anti-corruption: Uzbekistan Illegal payments are also expected in the The request for bribes and extortion also happens recruitment processes in both the public and in an inconsistent manner, and non-influential private sectors (Bertelsmann Foundation 2014). businesses usually find themselves at a Bribes have also become rather common in the disadvantage (Bertelsmann Foundation 2014). education sector and it is not unusual to have According to the Financial Times, the favouritism students “purchasing” higher grades or even of oligarch groups has resulted in harassment of entrance to universities. Teachers and university western investors. Companies such as Oxus professors, who receive low salaries, have Gold of the UK, Newmont Mining of the US supposedly also been extorting money from and Wimm-Bill-Dann of Russia have all allegedly students (Bertelsmann Foundation 2014). suffered from illegal raids, tax audits and arrests of employees (Weaver & Buckley 2013). Extortion by public officials also seems to be a common issue with corrupt local governments and Favouritism and patronage also affect the hiring law enforcement authorities extorting bribes and and selection of public officials. Uzbekistan still informal duties from local businesses. These needs to introduce a transparent, merit-based informal duties include “donations” to local football competitive recruitment system (OECD 2015). clubs, music festivals, among others (Bertelsmann Foundation 2014). Local authorities have also Electoral corruption forced companies to send employees to the The constitution provides for universal and equal cotton harvest (Uzbek-German Forum for Human suffrage in free, fair and periodic elections Rights 2015). conducted by secret ballot. Parliamentary and presidential elections are held every five years, There have also been reports of the use of torture, but in practice those are not consider free nor fair particularly by the police and security forces, to (Freedom House 2015; OSCE 2014; OSCE extract bribes from businesses and citizens. 2015). According to Amnesty International, the most common forms of torture include beatings, According to Freedom House, the competitive asphyxiation, rape and sexual assault (Amnesty nature of elections in Uzbekistan is “entirely International 2015). staged” as the regime does not allow for real opposition and only parties supported by the Favouritism and patronage government are allowed to participate (Freedom Favouritism in decision-making is common in House 2015). Opposition political parties are Uzbekistan (Markowitz 2012). There is a very banned (Bertelsmann Foundation 2014). strong patron-client relationship between the president and political elites and access to public Constitutional and electoral laws are often resources is only given to those closely connected circumvented or ignored. For instance, according to individuals in power. In fact, the president often to existing laws, the president can only serve a makes use of his powers and control over public maximum of two terms, but the current president resources to reward individuals and maintain his has been in power since 1991. The government support-base (Markowitz 2012). has made use of different manoeuvres to ensure the current president maintains power (OSCE The economy is closed and controlled by oligarch 2015; Freedom House 2015). groups. It is therefore difficult for new entrepreneurs to invest in the country without Throughout these years, the government adopted connections with the ruling family or partnerships a series of reforms aimed at bringing more with local well-related companies (Bertelsmann legitimacy to the electoral process. In 2014, for Foundation 2014; Weaver & Buckley 2013). example, a Central Electoral Commission (CEC) composed of parliamentary deputies was The government constantly amends laws and established to manage,
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