The level of business development assessed in the regions of Uzbekistan

Since May of this year, a rating assessment system of socio-economic development of regions was introduced in Uzbekistan. For the first time economic indicators, business support environment, infrastructure and the usage of available resources in districts and cities were studied.

In accordance with the Government Decree "On Measures to Implement a System for Assessing the Level of Entrepreneurship Development in the Regions of the Republic" (No. 8, 01/08/2020), from 2020, the Ministry of Economic Development and Poverty Reduction and the Ministry of Justice put into operation an automated information online system "Business indicator".

The online system for calculating and assessing entrepreneurship development indicators is a 25-point indicator provided by responsible organizations and surveys of entrepreneurs in 4 areas.

The assessing level of development of entrepreneurship in the regions is carried out regularly based on the results of half a year and a year.

Results of a study to assess the level of entrepreneurship development in the regions of Uzbekistan at the end of 2020.

Compare to 2016, Uzbekistan made a sharp breakthrough to improve the economic conditions for doing business. State (regional) support has become one of the factors in the development of entrepreneurship.

As a result of the measures taken to develop entrepreneurship, for example provided benefits for taxes, loans and utility bills, a moratorium on inspections of business entities, expansion of financial support, positive trends were revealed in the following areas in 2020:

The number of damage cases to real estate owned by entrepreneurs decreased 13 times (96 cases, in 2019 - 1260);

The amount of compensation for interest payments on loans to entrepreneurs increased 3 times (2.8 trillion soums, in 2019 - 855 billion soums);

The analysis showed an increase in the number of entrepreneurs in continuous activities over the past three years, their number increased by 32.5% and amounted to 26% of the total number of entrepreneurs (in 2019 - 21%). At the same time, the number of people employed in business increased by 12% (2.0 million people, in 2019 - 1.8 million people);

In addition, disagreements with the participation of entrepreneurs decreased by 44% (97.6 thousand, in 2019 - 173.3 thousand), and the number of inspections of business entities decreased by 8.5% (52, 3 thousand, in 2019 - 57.2 thousand).

Business development during the coronavirus pandemic

Due to the quarantine, many enterprises were forced to temporarily close, there was a decrease in aggregate demand and an increase in the proportion of the unemployed. Travel restrictions, social distancing and imposed lockdowns had an impact on the economy.

Thus, the compulsory debt of entrepreneurs to the state increased by 3.4 times (690 billion soums, in 2019 - 206 billion soums).

At the same time, the amount of overdue loans to entrepreneurs increased by 63% (4.8 trillion soums, in 2019 - 3.0 trillion soums), and the number of bank accounts of entrepreneurs increased by 50% (in 2019 - 37%).

The analysis revealed a decrease in the level of effective use of vacant land from 72% to 37%.

According to the survey, more than 25 thousand entrepreneurs in 2020 noted an improvement in the quality of banking services, infrastructure and business confidence in government agencies compared to 2019.

At the same time, 44% of respondents were engaged in compulsory sponsorship and 40% doubted the fairness of court decisions.

Based on the results of the study, a rating of cities in regions and districts of the republic was compiled.

According to the assessment results, the highest level of business development was recorded in Tashkent (7.8 points). The lowest rates were recorded in Kashkadarya (4.5 points), Surkhandarya (4.5 points) and Samarkand (4.6 points) regions.

The leaders were Bektemir (9.0 points), Muynak (8.9 points), Kurgantepa, Yakkasaray and Karmana (8.4 points) districts. Moreover Bakhmal (6.3 points), Buvayda (6.4 points), Toprak-kala, Uchkuprik, Samarkand, Bekabad and Yangiyul districts (6.5 points) took the last places in the ranking.

You can get acquainted with the results of this research in more detail in the analytical article, which is being prepared for publication in the journal "Economic Review".

CERR Public Relations Service