Uzbekistan's Economic Transformation: Currency Reform and Private Sector Growth

Abstract

This study examines the economic transformation of Uzbekistan under President Shavkat Mirziyoyev, focusing on the significant reforms initiated since 2017. These reforms, particularly the liberalization of the foreign exchange market and efforts to reduce state control represent a critical shift from the previously centralized economic model. Despite these changes, there is a knowledge gap regarding the long-term sustainability of these reforms and their broader socio-economic impacts. This research employs a mixed-methods approach, combining qualitative analysis of policy documents and quantitative assessment of economic indicators, such as GDP growth, foreign direct investment (FDI), and the expanding role of the private sector. The findings indicate a substantial increase in FDI and a growing contribution of the private sector to the national economy, suggesting positive trends in market liberalization and economic diversification. However, challenges remain in fully transitioning key sectors and ensuring equitable distribution of economic benefits. The results have significant implications for policymakers in Uzbekistan and other transitional economies, highlighting the need for continued governance reforms and further liberalization to achieve sustained economic growth. Future research should focus on the long-term effects of these reforms on social equity and the structural transformation of Uzbekistan's economy.