Advantages of Working in Uzbekistan
While Uzbekistan has one of the lowest minimum wages among CIS countries, it still offers some benefits, such as universal health care. Listed below are the advantages of working in Uzbekistan. The government is currently raising the minimum wage to cover the increased costs. The country’s median salary is also one of the highest in the region, but it is still far from being adequate for living in Uzbekistan.
Uzbekistan has one of the lowest minimum wages among all CIS countries
Despite the state of the economy, Uzbekistan continues to attract investors from around the world. The country’s central bank has predicted that agriculture will play a large part in the country’s economic development in the coming years. Agriculture in Uzbekistan employs two-thirds of its workforce and contributes nearly two-fourths of its GDP. Processing domestic agricultural output is another important source of income, contributing about eight percent of the country’s GDP. Cotton was once the main cash crop, but wheat has gradually taken its place as the country’s most lucrative crop.
While Uzbekistan has a large labor force – up to 19 million people – it also has one of the lowest minimum wages in the region. Workers are relatively well-educated, although the country does not have international business standards for technical training. However, foreign companies that produce in Uzbekistan say that local employees can learn quickly. Moreover, the Uzbek government places a strong emphasis on foreign education and sends Uzbek students to the United States and Europe to pursue their university education. After graduation, 60% of these students find employment with a foreign company. Some American companies even provide special training programs for local workers to obtain the necessary skills and knowledge.
Foreign governments have provided business facilitation and export financing support in Uzbekistan. China provided trade financing through its institutions. South Korea’s Export-Import Bank and Korean Development Bank also provide export financing to Korean companies operating in Uzbekistan. The Korean International Cooperation Agency has an active presence in Uzbekistan. Japanese companies operating in Uzbekistan are supported by the Japan External Trade Organization and the Japan Bank for International Cooperation.
It has one of the lowest median salaries
Gender bias in Uzbekistan is the leading factor for the country’s low median salaries. This underlying gender inequality is so strong that it has led to the segregation of labor markets into men’s and women’s occupations. The government has been trying to combat this in the country by introducing new laws aimed at addressing gender imbalances in the workforce. These laws are slated to come into effect very soon.
While there are many disadvantages, Uzbekistan has high levels of literacy and skilled labor. Technical training is typically not up to international standards, although foreign companies report that the local staff learns fast. The government stresses foreign education and sends students abroad to study at universities in the United States and Europe. Upon graduation, most students find jobs with foreign companies. Many American companies offer special training for Uzbek employees.
The country’s economic growth has been sluggish during the transition period, but it began to rebound after the revolution in 1995. The country’s GDP has experienced robust growth since then, increasing 4% annually between 1998 and 2003. The rate of growth has increased to 7%-8% per year since 2003 and reached 9% in 2011.
The Central Bank of the Republic of Uzbekistan has projected that agriculture would be the country’s main source of economic growth. While agriculture accounts for over a quarter of its GDP, it contributes a significant portion of the economy. In 2006, food products made up nearly eight percent of the nation’s total exports. While cotton was once the country’s most important cash crop, wheat is now the top crop.
It has one of the lowest minimum wages among all CIS countries
In the early 1990s, Uzbekistan escaped from the ruble zone and adopted its own currency. Despite these difficulties, it managed to keep its reserves near $1.2 billion by the early 2000s. It imposed strict currency controls and reduced subsidies for industrial enterprises and basic consumer goods. However, the government’s external debt more than doubled by 1997, and it reached $5 billion by 2005. The government’s primary sources of income are the enterprise profit tax, value-added tax, and excise tax.
The country’s constitution was ratified in 1992, and the President is elected by direct election. President Islam Karimov is the third successive president of Uzbekistan. The government consists of three branches: legislative, executive, and judicial. Despite its poor economic conditions, Uzbekistan has one of the lowest minimum wages of all CIS countries.
Uzbekistan is a member of the Asian Development Bank. The Asian Development Bank is its main donor, and the European Bank for Reconstruction and Development has signed 25 projects in the country between 1993 and 2003, involving a total of $727 million. Projects included the rehabilitation of oil refineries and the construction of new production facilities. Uzbekistan joined the Asian Development Bank in 1995 and its financial assistance to Uzbekistan has been mainly directed to finance and agriculture.
The population of Uzbekistan is estimated to be around twenty-four million, making it the most populous country in Central Asia. There are primarily Uzbek people – with Tajiks, Kazakhs, and other ethnic groups making up the remaining 2.5 percent. The country is 80 percent Sunni Moslem and the official language is Uzbek. Russian is the de facto language of interethnic communication.
It offers universal health care
The minimum wage in Uzbekistan is one of the highest in the world, and the country’s government has put special efforts into making it more attractive to young people. Its Labour Code bans discrimination against women, but there is still a gender pay gap and disparities across sectors. The government is working to address these issues by supporting vocational training and improving occupational health and safety for migrant workers. Moreover, it offers special benefits to about 18000 people who have disabilities or need help with their daily life.
As for other improvements, the country has a strong human rights structure. There are a number of government agencies that have a mandate to protect the rights of businesspeople and the economy. The Business Ombudsman, for example, conducts inspections electronically and through a mandatory reporting system. The Business Ombudsman has inspected 149 businesses and 2,000 individuals in over 230 reports. A total of 10 million US dollars have been fined due to violations. There are also nine acts designed to improve legal procedures and help small businesses. As of the beginning of 2016, Uzbekistan has reopened over 500 businesses.
The government has implemented several reforms, including establishing a national anti-corruption agency and drafting the Anti-Corruption Act. The government has also begun investigating and prosecuting corruption cases. Towards this end, Uzbekistan’s government has also adopted a strategy to move toward a green economy by 2030. The Uzbek government has been working towards this goal, and is committed to making sure it meets this goal as well.
It has a low minimum wage
Uzbekistan has a low labor force and is home to some of the world’s lowest minimum wages. The minimum wage is 747 300 Uzbekistani Som (USD), a fraction of the prevailing rate in the United States. The country’s labor force is largely non-agricultural, with four out of every five employed individuals in low-productivity positions. While the country’s economy is booming, wages are low compared to Western standards. Uzbekistan is also one of the most prolific suppliers of labor migration among former Soviet Union countries.
In January 2019, the government voted to end the state quota system for cotton production. In order to dismantle this complex system, the government introduced the cluster system, which is a system of vertically integrated, privately operated farms. Private businesses own clusters, ensuring that the country’s cotton production is not forced on workers. With increased privatization of the industry, the amount of land being cultivated by private businesses has also increased. This has meant more freedom of decision making and reduced forced labor.
Additionally, the government has not implemented asset declaration requirements for government officials. However, in May 2020, the country published a new draft of the State Civil Service Law, which requires all civil servants to make a mandatory asset and income declaration. This includes judges and other government officials. In the meantime, Uzbekistan’s minimum wage remains low. If the government is serious about the issue, they should introduce legislation requiring the public sector to increase the minimum wage.
Foreign participation is allowed in Uzbekistan. Foreign participation means that an enterprise has at least 40% of its capital coming from outside of the country. Foreign companies can register as permanent establishments if they have a minimum charter capital of 400 million s’om, which equates to about $38,000 as of March 2020. These entities may have their own bank accounts. The government is working to implement legislation that will bring Uzbekistan in line with international IPR Treaties.