On prospects for the development of transit potential of the Republic of Uzbekistan

September 10, 2007

One of the ways to achieve targets such as the formation of a democratic state with developed market economy and to ensure a rise in the population's living standards is to integrate Uzbekistan into the world economic community within the framework of international economic organizations. In the longer run, such interaction will make it possible to improve the country's transit potential.
As is generally known, the development of transit potential, which constitutes an essential component of the national economy, intensifying the role of transport communications and drawing together the geopolitical interests of different states, thus opening the door to active mutually beneficial cooperation between them, should be accompanied by appreciable growth of the national economy. Transport and transport communications, as part and parcel of any country's economic complex, provide a vital link between manufacturers and consumers, between states and continents. What is more, they perform a range of economic, social and strategic functions of paramount importance.

For independent Uzbekistan, integration into the world community through transport communications is one of the top priorities to date. As the President Islam Karimov of the Republic of Uzbekistan underscored in this context: "When speaking about priorities, we mean the development of those production facilities, which could, figuratively speaking, serve as engines for the dynamic development of a whole spectrum of associated industries, create new jobs and improve the population's well-being. Not a single sector can progress successfully enough, unless it is reinforced by a developed network of railway and motor communications."

Broad international cooperation, as well as the participation of Uzbekistan in various communication projects can facilitate the development of the national socio-economic system and ensure the fulfillment of practical measures designed to maximally realize the country's economic potential. In this connection, the EurAsian Economic Community proves to be one of the key mechanisms for integration into both the Central Asian region and the CIS. For now, coordination of steps taken by its members to jointly exploit their transport-communication systems takes central stage.

As an international economic organization, the EurAsian Economic Community (EurAsEC) is tasked with performing a number of fundamental functions such as the formation of common external customs borders of its member states and the development of a single foreign economic policy, tariffs, prices and other components of a common market. By the way, the latter covers the region with a population of some 180 million (to compare, 15 EU countries have the population of about 300 million).

With Uzbekistan's entry into the EurAsEC, opportunities for the rational use of the Commonwealth's transit potential, modernization of transport infrastructure, pursuance of concerted policy in the base economic sectors and wide-ranging cooperation in the sphere of transport increase immeasurably. Meeting these targets will contribute to the creation in the foreseeable future of a common market for goods and services for all EurAsEC members.

Let it noted at this point that the Republic of Uzbekistan is an export-oriented economy. Lavishly endowed with mineral resources and enjoying substantial industrial infrastructure, the country needs access to external markets as the breath of life. In this connection, the necessity to expand its transit potential is growing manifold.

Joining the EurAsian Economic Community, an alliance of 5 CIS member states, opens a vast market for the Republic. At the same time, in Uzbekistan, the CIS countries have a reliable trading partner.

A model of transport union elaborated earlier this year lays down common rules in the field of transport, unifies transit tariffs and furthers the development of all means of transport. Today, a certain disproportion is becoming apparent in the transport sector. Some members of the EurAsEC are busy intensifying the development of motor transport, while others are concentrating instead on railway transport.

A transport policy council set up within the EurAsEC's framework is commissioned to work out concrete measures designed to form a common market for transport services and to ensure the efficient realization of transport potentialities of all its members. The council has to coordinate a long-term plan for the development of railway, motor and water means of transport and civil aviation in the Community's member states. The document will determine concrete steps needed to create a single transport space and a common market for transport services within the EurAsEC.

Additionally, in 2006 there was drafted a concept for the formation of a single transport space within the EurAsEC, which prioritizes a number of key targets in the transport domain. The single transport space covers all means of transport, including 111,000 kilometers of railways, 890,000 kilometers of motor-roads for general use and 110,000 kilometers of waterways. Transportation of passengers and cargo, both within the Community and between its member states and third countries, is carried out through 98 international airports. Its volumes tend to grow year in, year out. Very often, passengers and goods are in transit through the territory of countries adju - to the EurAsEC member states.

At a time when economic processes are increasingly acquiring a global character, economic integration of the world community as a whole and the Central Asian region in particular comes to the fore. The policy followed by the EurAsEC is testimony to the high efficiency of this organization in meeting integration-related objectives.