International Journal of Management and Economics Fundamental
35
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VOLUME
Vol.05 Issue 03 2025
PAGE NO.
35-44
10.37547/ijmef/Volume05Issue03-06
Involvement of the Government in Supporting
Bioeconomy Policy in Uzbekistan From An Institutional
and Legal Perspective
Firyuza Galimova
Tashkent State University of Economics, Department of Regional Economics, Uzbekistan
Nilufar Dekhkanova
Tashkent State University of Economics, Department of Regional Economics, Uzbekistan
Rufina Biktimirova
Tashkent State Agrarian University, Uzbekistan
Received:
19 January 2025;
Accepted:
26 February 2025;
Published:
13 March 2025
Abstract:
This article examines the institutional and legal measures supporting bioeconomy policy in Uzbekistan,
fo-cusing on strategies for transitioning to a green economy. The authors highlight key legislative frameworks,
including the Strategy for Agricultural Development (2020
–
2030) and the Strategy for Transition to a Green
Economy (2019
–
2030), as foundations for sustainable economic growth. Additionally, the article explores in-
ternational commitments, such as Uzbekistan's ratification of the Paris Agreement, underscoring its dedica-tion
to climate goals and emission reductions.
The study discusses the main challenges in developing a bioeconomy, including limited financial re-sources, public
awareness, and gaps in technological infrastructure, particularly in rural regions. The authors suggest that
improvements in public administration, development of sectoral statistics, and enhanced inter-national
partnerships can support Uzbekistan’s bioeconomic goals. This research offers insights into Uzbeki
-
stan’s
approach to harmonizing economic growth with environmental sustainability, providing useful per-spectives for
policymakers interested in advancing bioeconomic initiatives in similar developmental contexts.
Keywords:
Bioeconomy, bioeconomy policy, green economy, agriculture, sustainable development, strategy.
Introduction:
In recent decades, the concept of the
bioeconomy has gained widespread recognition amidst
the growing global need for sustainable resource
utilization. The bioeconomy involves using renewable
biological resources to pro-duce goods and services,
promoting not only economic growth but also
enhanced environmental sustainability and social well-
being. This approach emphasizes the integration of
environmental, economic, and social factors to achieve
sustainable development goals and mitigate the
adverse effects of climate change.
For Uzbekistan, transitioning to a bioeconomy and
green economy is a strategic priority, as the country
faces significant environmental and economic
challenges, including vulnerability to climate change
and limited water resources. Uzbekistan’s natural
resource-dependent economy and its largely rural
population make it particularly susceptible to risks like
droughts and declining water availability. The shift
towards sustainable practices is essen-tial for building
resilience and ensuring a stable future for the country.
The government of Uzbekistan has undertaken several
strategic initiatives to support the bioeconomy,
particu-larly within the agricultural sector, which is key
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to the country’s economy. One of the foundational
measures in-cludes the Agriculture Development
Strategy of the Republic of Uzbekistan for 2020-2030,
aimed at improving food security, fostering a favorable
agribusiness environment, and reducing the state's
direct involvement in the sector to boost its investment
attractiveness. Furthermore, Uzbekistan has enacted
pivotal legislative measures such as the Law on the
Rational Use of Energy (1997) and subsequent
presidential decrees focused on advancing renewable
energy and energy efficiency. These laws establish a
framework for environmentally sustainable growth,
laying the groundwork for a comprehensive
bioeconomy.
Additionally, Uzbekistan has taken steps to align its
bioeconomy goals with international standards. By
ratify-ing the Paris Agreement in 2018, the country
committed
to
integrating
climate
change
considerations into its sus-tainable development plans,
fostering collaboration with other nations on green
economy initiatives. This com-mitment highlights
Uzbekistan’s alignment with global standards and its
dedication to reducing greenhouse gas emissions.
This article explores the institutional and legal
measures that facilitate the development of the
bioeconomy in Uzbekistan. Specifically, it examines
strategic initiatives such as the adoption of green
technologies, the estab-lishment of a regulatory
framework for renewable energy, and legislative acts
focused on intellectual property protection in
biotechnology. Through this framework, Uzbekistan
aims to foster innovation, enhance agricultural
sustainability, and advance its green economy in
alignment with national and international goals.
RESEARCH RESULTS AND DISCUSSION
The legislative and legal framework plays a crucial role
in shaping and advancing bioeconomy policy in all
coun-tries including Uzbekistan. The development of
bioeconomy policies requires a solid foundation of laws
and regu-lations to address various aspects of
biotechnology,
agriculture,
and
sustainable
development. In Uzbekistan, the legal framework
supporting bioeconomy policies encompasses a range
of laws related to agriculture, environmen-tal
protection, intellectual property, and biotechnology.
These laws provide a framework for implementing poli-
cies that promote the sustainable and responsible use
of biological resources for economic development. The
Ag-riculture Development Strategy is a key element
that outlines the government's approach to enhancing
agricultural productivity while ensuring environmental
sustainability. This strategy is fundamental to
bioeconomy policies, emphasizing the importance of
adopting
advanced
technologies,
including
biotechnology, to achieve food security and economic
growth.
Uzbekistan has also prioritized legal measures to
protect intellectual property rights in the field of
biotechnolo-gy. Patent laws and regulations aim to
encourage innovation and research by providing legal
protection for new inventions and technologies. This
not only fosters a culture of innovation but also attracts
investments in the bioe-conomy sector. Environmental
laws are an integral part of the bioeconomy framework,
ensuring responsible ex-ploitation of biological
resources. These regulations establish guidelines for
sustainable
agricultural
practices,
biodiversity
conservation, and the mitigation of environmental
impacts associated with bioeconomy activities.
Furthermore, Uzbekistan's legal framework promotes
international cooperation in the field of biotechnology.
The country actively participates in international
agreements and conventions related to biodiversity,
ensuring align-ment with global standards and
fostering collaboration with other nations in research
and development. Since 2017, progress on reforms has
been strong in Uzbekistan. The 2017
–
2021
Development Strategy was ambitious in its intent to
rapidly dismantle barriers to a market-based economy
and shared prosperity. The COVID-19 pandem-ic has
had a significant impact on economic growth in most
countries and has hindered progress towards achieving
the 2030 Agenda for Sustainable Development goals.
The Government of the Republic of Uzbekistan is taking
important steps to address the impact of COVID-19 on
the economy and the health of its population. The
econo-
my’s robust performance in 2019 was largely
due to the first phase of reforms: new firms and jobs
were created, horticultural exports increased, tourism
arrivals reached record levels, and poverty declined.
Foreign direct in-vestment (FDI), which nearly doubled
relative to the prior year, flowed to an unprecedentedly
diverse range of economic sectors. Having just started
the transition process, it is an opportune time for
Uzbekistan to invest early, and at a relatively lower
cost, to build a greener economy. There are clear limits
to Uzbekistan’s current natural resource dependent
growth model. Uzbekistan needs a path that will
increase the efficiency and sustainability of its natural
resources, lower carbon intensity, and ensure that the
benefits of the transition are durable and inclusive for
all its citizens. By following a path that prioritizes green
investments, embraces systematic innovation, and
manages risks and trade-offs, the country can deliver
lasting benefits for its people. This path will increase
the resilience of the country’s economy, which is
acutely vulnerable to a changing climate and declining
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access to water - risks that are no longer distant but
imminent.
Adopting new technologies and processes could also
enable Uzbekistan to increase its competitiveness in
the global marketplace as trading preferences become
more sensitive to environmental impacts. Shifting to an
envi-ronmentally sustainable growth model is
particularly important for a highly natural resource-
dependent country like Uzbekistan for several reasons.
First, Uzbekistan has a significant comparative
advantage in natural resources and is highly dependent
on them for exports, government revenue, and
perhaps most importantly, as a source of livelihood for
most of its rural population. Second, this reliance on
natural resources, coupled with significant sensitivity to
climate
change,
exacerbates
the
country’s
vulnerability. Third, with the country undergoing rapid
structural, spatial, and social transformation, it is at a
stage where policies and investment choices can
substantial-ly shape its development trajectory. While
the drivers of green growth are clear and the benefits
are tangible, some key ingredients are required for
implementing the green transition. A green growth
strategy will require multi-sectoral reforms under a
unified direction. This calls for central coordination of
economic policy among multiple government and
nongovernment actors and an institutional and
regulatory framework that cuts across sectors. Many
aspects, such as decarbonization, have an extended
time horizon and require effective long- term planning,
implementation, and a credible commitment to
ambitious policies over multiple political cycles.
Green policies may be debated and contested, and
tradeoffs may have to be made between sectors and
constitu-encies. Strong political commitment is
needed, and this must be supported by technically
informed and objective recommendations. Finally,
there will be technical and resource needs. There will
be data gaps that need to be filled to support modeling
and options analysis. The government needs to be
adequately staffed and knowledgeable about green
growth. Pursuing a long-term low-carbon development
strategy is consistent with sound economic growth.
Building a sustainable growth model now
–
at the
earlier stages of the transition to a full market economy
–
is a smart insurance strategy for avoiding higher and
costlier risks in the future and for advancing more
expedi-tiously on policies and the adoption of
innovative technologies. However, there is no ‘one
-
size-fits-
all’ prescrip
-tion for fostering greener growth.
Uzbekistan will have to chart its path based on its policy
and institutional set-tings, level of development, social
structures, resource endowments, and environmental
pressure points. Con-sistent with good international
practice, Uzbekistan’s green transformation priorities
should be anchored by a long-term (for example, to
2050) low-carbon development strategy. Table 1 and 2
below summarizes the main legal acts adopted since
the beginning of independence. It is worth noting that
the government started to consider the use of
renewable energy sources in 2017. Monitoring systems
to control energy consumption were established from
that year, and favorable conditions for attracting
investments and promoting innovative development
have been created for the period from 2019 to 2021.
Unlike traditional economics, which aims primarily to
increase gross domestic product (GDP) or gross
national income (GNI), a green economy promotes
three objectives: main-taining and enhancing
economic, environmental, and social well-being.
The green economy can also be an effective means of
achieving the Sustainable Development Goals (SDGs).
Green economy measures can be incorporated into
many targets due to the multi-directional nature of the
SDGs, as shown below. The pandemic experience
highlights the importance of planned green recovery as
the means to achieve the goals of the National Green
Economy Strategy of Uzbekistan.
Additionally, in 2019, the Strategy of Agricultural
Development of the Republic of Uzbekistan for 2020-
2030 was adopted. The primary aim of this strategy is
to enhance the state policy that focuses on ongoing
reforms to increase the competitiveness of the agri-
food sector.
The strategy covers the following strategic priorities:
ensuring food security for the population, creating a fa-
vorable climate for agribusiness and value chains, and
reducing the state's role in managing the sector while
in-creasing its investment attractiveness. To promote
the rational use of natural resources and safeguard the
envi-ronment, it is recommended that modern public
administration systems be developed. It is suggested
that public expenditures be diversified to support the
sector in a phased manner. It is also recommended that
science, educa-tion, information, and consulting
services in agriculture be developed, along with rural
territories. Furthermore, it is advisable to establish a
transparent system of sectoral statistics.
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Table 1. Laws of the Republic of Uzbekistan on development of green economy.
Date of Adoption Title
Main purpose
25.04.1997
№ 412-I
Law of the Republic of Uzbekistan “On the
Rational Use of Energy”
The purpose of this Law is to establish a general legal
framework to ensure the conservation of national energy
resources, efficient utilization of energy and production
potential.
01.06.2017
№ ЗРУ-432
Law of the Republic of Uzbekistan “On
ratification of the charter of the international
agency for renewable energy” (Bonn, 26
January 2009)
The purpose of this Law is Ratification of the Statutes of
the International Renewable Energy Agency.
16.04.2019
№ 2445-III
Resolution of the Legislative Chamber of the
Oliy Majlis of the Republic of Uzbekistan “On
the Law of the Republic of Uzbekistan on the
Use of Renewable Energy Sources”
The purpose is improve and increase the use of renewable
energy sources.
21.05.2019
№ ЗРУ-539
Law of the Republic of Uzbekistan “On the use
of renewable energy sources”
The purpose of this Law is to regulate relations in the
field of utilization of renewable energy sources.
Source: Created by authors based on https://lex.uz/en/
In 2018, Uzbekistan ratified the Paris Agreement,
thereby assuming a quantitative commitment
determined at the national level. The radical
transformation of the use of natural and energy
resources contributes to the solution of several
problems. The strategy adopted in 2019 is based on
principles that correspond to the transition to a green
economy in the long term. The development of this
strategy is of particular importance, as it is aimed at
integrat-ing climate change issues into the sustainable
development of the national economy. Achieving
sustainable eco-nomic progress contributes to social
development. The strategy itself is based on six main
tasks:
─
increasing the energy efficiency of the
economy and rational consumption of natural
resources through techno-logical modernization and
development of financial mechanisms.
─
inclusion of “green” criteria based on advanced
international standards in priority areas of public
investment and expenditure.
─
assistance in the implementation of pilot
projects in the areas of
transition to a “green” economy
through the development of government incentive
mechanisms,
public-private
partnerships
and
intensified cooperation with international financial
institutions.
─
development of a system of training and
retraining of personnel related to the labor market in
the “green” econ
-omy, by stimulating investment in
education, strengthening cooperation with leading
foreign educational insti-tutions and research centers.
─
taking measures to mitigate the negative
impact of the environmental crisis in the Aral Sea
region.
─
strengthening international cooperation in the
field of green economy, including through the
conclusion of bi-lateral and multilateral agreements.
Table 2. By-laws of the Republic of Uzbekistan on development of green economy.
Date of Adoption Title
Main purpose
18.01.2017
№ ПП-2731
Resolution of the President of the Republic of Uzbekistan
“On the state Program for the development of the Aral Sea
region for 2017-2021”
The purpose is development of the Aral
Sea region
30.05.2017
№ ПП-3012
Resolution of the President of the republic of Uzbekistan “On
the Program of measures for further development of
renewable energy, increasing energy efficiency in economic
sectors and social sphere for 2017-2021”
The purpose is further development of
renewable energy
14.11.2017
№ 908
Decision of the Cabinet of Ministers of the Republic of
Uzbekistan “On approval of the regulation on the mechanism
of identification of an organization as specializing in the
production of renewable energy production facilities”
The purpose is further development of
renewable energy
09.11.2017
№ ПП-3379
Resolution of the President of the Republic of Uzbekistan
“On measures to ensure rational use of energy resources”
The purpose is measures to ensure
rational use of energy resources
30.04.2018
№ ПП-3687
Resolution of the President of the Republic of Uzbekistan
“On additional measures for the implementation of
investment projects in the field of renewable energy sources”
The purpose is development of investment
projects in responsible energy sources
21.05.2018
№ 365
Decision of the cabinet of Ministers of the Republic of
Uzbekistan “On measures to Organize the activity of the free
tourist zone "Charvak"”
The purpose is development tourist zone
"Charvak"
22.09.2018
№ УП-5544
Decree of the President of the Republic of Uzbekistan “On
approval of the Strategy of innovative development of the
a) the main objective of the Strategy is to
develop human capital as the main factor
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republic of Uzbekistan for 2019-2021”
determining the level of the country's
competitiveness in the world arena and its
innovative progress.
b) the main objectives of the Strategy to
achieve the main goal are:
entering the Republic of Uzbekistan by
2030 into the 50 advanced countries of the
world according to the Global Innovation
Index rating.
Improving the quality and coverage of
education at all levels, developing a
system of lifelong learning, and ensuring
the flexibility of the training system based
on the needs of the economy.
Strengthening scientific potential and the
effectiveness of research and
development, creating effective
mechanisms for the integration of
education, science and entrepreneurship
for the widespread implementation of the
results of research, development and
technological work.
Increasing public and private investment
in innovation, research, development and
technology, and introducing modern and
effective forms of financing in these
areas.
Improving the efficiency of public
authorities through the introduction of
modern management methods and tools.
Ensuring the protection of property rights,
creating competitive markets and equal
conditions for doing business, and
developing public-private partnerships.
Creation of a sustainably functioning
socio-economic infrastructure.
19.01.2019
№ 48
Decision of the Cabinet of Ministers of the Republic of
Uzbekistan “On approval of the concept of implementation
of "smart city" technologies in the Republic of Uzbekistan”
The main objective of this Concept is to
implement a set of measures aimed at
creating modern engineering and
communication infrastructures in cities
through the introduction of Smart City
technologies, in particular:
-ensuring sustainable growth of the
quality of life and formation of a
comfortable urban environment for
residents and visitors, favorable
conditions for doing business.
-increasing the efficiency of public
expenditures, including through the
introduction of public-private partnership.
-systematic introduction of all Smart City
technologies corresponding to foreign
analogues.
-improving the efficiency of city services
and road transport infrastructure through
the introduction of innovative solutions.
28.03.2019
№ ПП-4249
Resolution of the President of the Republic of Uzbekistan
“On the Strategy for further development and reform of the
electric power industry of the Republic of Uzbekistan”
The purpose is development and reform
of the electric power industry.
18.04.2019
№ ПП-4291
Decree of the President of the Republic of Uzbekistan “On
Approval of the Strategy for Solid Waste Management in the
Republic of Uzbekistan for the period 2019-2028”
The purpose is approval and development
of the Strategy for Solid Waste
Management
22.07.2019
№ 610
Decision of the Cabinet of Ministers of the Republic of
Uzbekistan “On approval of the regulations on connection to
the unified electric power system of business entities
producing electric energy, including from renewable energy
sources”
The purpose is further development of
renewable energy
23.08.2019
№ ПП-4422
Decree of the President of the Republic of Uzbekistan “On
accelerated measures to improve energy efficiency in
economic and social sectors, introduction of energy-saving
technologies and development of renewable energy sources”
The purpose is further development of
renewable energy
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05.10.2019
№ ПП-4477
Decree of the President of the Republic of Uzbekistan “On
Approval of the Strategy for the Transition of the Republic of
Uzbekistan to a Green Economy for the Period 2019-2030”
The main objective of the Strategy is to
achieve sustainable economic progress
that contributes to social development,
reduction of greenhouse gas emissions,
climate and environmental sustainability
by integrating green economy principles
into the structural reforms being
implemented.
24.10.2019
№ УП-5853
Decree of the President of the Republic of Uzbekistan “On
Approval of the Strategy of Development of Agriculture of
the Republic of Uzbekistan for 2020-2030 years”
The main objective of this Strategy is to
radically improve the state policy aimed at
deepening the ongoing reforms aimed at
improving the competitiveness of the agri-
food sector, and covers the following
strategic priorities:
Ensuring food security of the population;
creating a favorable agribusiness climate
and value chains;
reducing the role of the state in the
management of the sector and increasing
its investment attractiveness;
ensuring rational use of natural resources
and environmental protection;
development of modern public
administration systems;
phased diversification of public
expenditures in support of the sector;
development of science, education,
information and consulting services in
agriculture;
development of rural areas;
development of a transparent system of
sectoral statistics.
31.10.2019
№ УП-5863
Decree of the President of the Republic of Uzbekistan “On
Approval of the Concept of Environmental Protection of the
Republic of Uzbekistan until 2030”
The purpose is ensuring environmentally
safe use of toxic chemical and radioactive
substances
10.07.2020
№ ПП-4779
Decree of the President of the Republic of Uzbekistan “On
additional measures to reduce the dependence of economic
sectors on fuel and energy products by increasing the energy
efficiency of the economy and utilizing available resources”
The document is aimed at stimulating
efficient and rational use of fuel and
energy resources, broad introduction of
renewable energy sources in the country's
economy and ensuring stable supply of
electricity and oil and gas products to
economic sectors and the population.
24.07.2020
№ 452
Resolution of the Cabinet of Ministers of the Republic of
Uzbekistan “On measures to keep state records of renewable
energy installations and the energy produced by them”
The purpose is further development of
renewable energy
30.09.2020
№ ПП-4845
Decree of the President of the Republic of Uzbekistan “On
measures to further improve the system of management of
activities in the sphere of household and construction waste
management”
The purpose is improving the system of
management of activities in the sphere of
household and construction waste
management
30.07.2021
№ ПП-5202
Decree of the President of the Republic of Uzbekistan “On
measures to implement the special resolution of the United
Nations General Assembly of 18 May 2021 "on declaring the
Aral Sea region as a zone of environmental innovation and
technology"
The purpose is development of the Aral
Sea region
10.09.2022
№ УП-220
Decree of the President of the Republic of Uzbekistan “On
additional measures on introduction of energy-saving
technologies and development of renewable energy sources
of small capacity”
The purpose is further development of
renewable energy
03.12.2022
ПП-436
Decree of the President of the Republic of Uzbekistan “On
measures to improve the effectiveness of reforms aimed at
transitioning the Republic of Uzbekistan to a green economy
by 2023”
The purpose is further development of
Green Economy
Source: Created by authors based on https://lex.uz/en/
The Fig. 1 presents a schematic representation of the structure of the adopted strategy. What challenges does
Uz-bekistan face in transitioning to a green economy?
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Source:
own study based on Resolution President of The Republic of Uzbekistan on approval of The Strategy for
the transition of The Republic of Uzbekistan to a “Green” Eco
nomy for The Period 2019 - 2030
Fig. 1. The structure of the adopted strategy.
It is important to note that the lack of financing can
slow down the process of transition. Furthermore,
Uzbekistan may face the challenge of imperfect
legislation and a lack of mechanisms to regulate
environmental activities, which could hinder progress
towards a greener economy. It is possible that some
Uzbek citizens may not be fully aware of environmental
issues and may not be willing to participate in
environmental
protection
measures.
The
implementation of green economy transition program
may face challenges due to insufficient control over
envi-ronmental protection. This may be attributed to
issues related to public awareness and difficulties in
retraining the labor force. Furthermore, the
development of green technologies and industries may
require the retraining of the labor force. It is possible
that an underdeveloped education and training system
could hinder this process. It is important to consider
that the transition to a green economy may have an
adverse effect on the profits of some sectors and the
economic situation of certain population groups.
Therefore, it is necessary to carefully analyze the
consequences of the transition and develop measures
to mitigate any negative impacts.
The transition to a green economy depends on the
implementation of a well-defined strategy and
effective leg-islative instruments. A green economy
strategy usually involves measures to promote
investment in renewable energy, enhance energy
efficiency, decrease greenhouse gas emissions, and
reduce the use of fossil fuels. The strategy and
legislation are closely intertwined, and without a clear
action plan, legislation may not achieve its intended
goals. Legislative documents establish the legal
framework and obligations for businesses and govern-
ments to achieve environmentally sustainable
development.
An experimental approach to policymaking also entails
policy goals being established in interaction with the
affected stakeholders, and that they have a significant
degree of autonomy in pursuing different programs or
pro-jects - ideally through a portfolio of projects or
programs. This is linked with the well-established
notion of a quadruple helix framework, whereby STI
policies are shaped not just by public actors, but by
close and repeated interactions between government,
industry, academia and civil society (Figure 2).
To improve cooperation across different stakeholders
in the broad ecosystem, however, public authorities
should get their governance right with various
ministries, agencies and implementation bodies
exchanging infor-mation and coordinating their policy
approach, ideally through formal mechanisms.
Source:
https://unece.org/info/publications/pub/387452
Fig. 2. Quadruple helix of innovation policy- the new innovation policy approach.
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Often, innovation policy in developing economies is
entrusted to a dedicated ministry which, due to the
limited resources at its disposal, has only limited
political weight, and therefore adopts a linear,
research-driven approach to innovation in relative
isolation from other policies and other public bodies
that have an impact on innovation ecosystems.
Effective governance and policy coordination should
ensure that ministries, agencies and implemen-tation
bodies exchange information and coordinate their
policy approaches. This crucially includes public initia-
tives at the regional and local levels of government.
Governments at the subnational level often have a
better un-derstanding of the local business community
and innovation ecosystem, which may have
idiosyncratic characteris-tics. As a result, they may be
better able to interact with innovation partners and
address needs that are specific to the region. As one
example, they may be better able to identify firms with
growth potential, and well placed to set up
experimental schemes that, in case of success, could be
scaled up across the country and even beyond.
By embracing innovation and establishing a robust
management mechanism, Uzbekistan can unlock the
full po-tential of its agricultural sector. This will not only
guarantee food security for its growing population but
also propel the nation towards a future defined by
sustainable and competitive agriculture. The journey
requires a col-lective effort from all stakeholders. With
unwavering commitment and collaborative action,
Uzbekistan can trans-form its agricultural landscape,
cultivating a future brimming with prosperity and
innovation.
Decisions about specific policy instruments are more
successful when they are based on a careful
assessment of institutional capacities for their design,
implementation, monitoring and evaluation. It is
important to ensure that only those actions with a good
match between policy intention and policy
implementation capacity are promoted. There is a risk
of policy overreach when adopting policies from high-
income countries, whose performance may crucially
depend on advanced implementation capabilities,
including human and financial resources.
Source:
World Development Indicators. 2020.
*Note: -2.5 weak; 2.5 strong. Malaysia is included as an upper-middle-income comparator and Singapore as a
high-income best practice case.
Fig. 3. Government effectiveness and regulatory quality in SPECA and comparator countries, 2021.
The SPECA subregion is not characterized by strong
implementation capacities as reflected, for example, in
the government effectiveness index1 and the
regulatory quality index (Figure 3). As a case in point,
countries in the subregion have established business
incubators, accelerators and science and technology
parks in recent years to promote innovative businesses,
but these institutions have not seen the same success
as their peers in Europe and the United States.
Decisions about specific policy instruments are more
successful when they are based on a care-ful
assessment of institutional capacities for their design,
implementation, monitoring and evaluation.
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Table 3 collates and presents a synopsis of potential solutions to the issues that have been identified.
Table 3. Proposals for the resolution of the identified issues.
№ CHALLENGES
POSSIBLE SOLUTIONS
1 A lack of coordination of STI policy
design and implementation
Assess areas where different
responsibilities overlap to simplify and
rationalize innovation governance
Consider establishing national innovation councils to strategically
coordinate innovation policymaking.
2 The culture of monitoring and evaluation
is weak
Establish a dedicated unit responsible for M&E that would also provide
a critical mass of expertise to ensure more evidence-based
policymaking.
Conduct RIAs on a regular basis and following international guidelines.
Boost capacities for M&E through international donor support.
3 Insufficient private sector involvement in
the identification of policy priorities, and
the design and implementation of public
initiatives
Consider setting up online consultation platforms or other mechanisms
(e.g., councils, committees) to facilitate exchange between the public
and private sectors.
Engage with international donor initiatives focused on strengthening the
capacities of intermediary structures and organizations, such as
chambers of commerce and business associations, to better advocate and
raise concerns.
4 A lack of data to underpin robust,
evidence-based innovation policies
tailored to regional strengths
Conduct a data collection exercise to gather statistical data at a sufficient
level of disaggregation through a task force involving national and
international experts, potentially with international donor support.
Conduct a mapping exercise including an assessment of the potential for
economic and innovative development of different subnational entities.
5 The business environment requires
improvement, especially in terms of
public sector transparency and
accountability
Ensure a transparent system of public administration and governance
through efforts on e-Government and digitalization.
Ensure expert support and overall assistance from international
organizations for the design and implementation stages of e-Government
strategies.
6 Access to finance, especially to equity-
type finance, is a major barrier to the set-
up and scale up of innovative firms, and
to innovation in established firms
Design additional measures to facilitate access to fi nance for
innovation, including through introduction of equity-type instruments,
innovation vouchers, and tax instruments for equity investors.
Use pilots to identify what works for potential scale up.
7 Global value chains are insufficiently
exploited to drive innovation and
knowledge imports into the SPECA
subregion
Continue efforts to align trade practices with international standards,
including in the areas of metrology, standardization, and conformity
assessment to allow for better integration into GVCs.
Enable export promotion agencies to provide sophisticated services to
boost exports, including matchmaking services between local and
foreign companies, export credits, export insurance products, etc.
Incentivize foreign companies to involve local suppliers in their value
chains or otherwise establish links with the local business community to
ensure knowledge and innovation spillovers for the entire economy.
8 Managerial capabilities of innovative
business owners are weak, with limited
policies to enhance adult education and
training
Strengthen programs to foster adult training and education (both
vocational and non-vocational) and monitor skills needs, e.g. through a
National Skills Council.
Provide management training programs to increase private sector
absorptive capacity
9 A disconnect between publicly funded
research and the market
Incentivize industry-science linkages through innovation vouchers.
Ensure voucher schemes are accompanied by support services, such as
match-making, information and guidance to companies and research
organizations.
Source: Created by author based on report https://unece.org/info/publications/pub/387452
While there is considerable potential to adapt existing
technologies and practices, unlocking this potential
requires significant investment in human capital and
the development of robust innovation systems.
CONCLUSIONS AND RECOMMENDATIONS
Uzbekistan, with its significant potential in the
agricultural sector and natural resources, is actively
moving to-ward sustainable development, aiming to
transition to a green economy. Through the adoption
of several legisla-tive acts and strategies, such as the
Agricultural Development Strategy for 2020
–
2030 and
the Green Economy Transition Strategy for 2019
–
2030,
the country has laid the foundation for environmentally
sustainable growth. A notable step was also the
ratification of the Paris Agreement, underscoring
Uzbekistan’s commitment to meeting international
environmental
standards
and
contributing
to
greenhouse gas reduction.
The main challenges to achieving these goals include
limited funding, insufficient public awareness, and lim-
ited opportunities for using innovative technologies,
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
especially in rural areas. Further improvements in the
legal and institutional environment, strengthened
interaction between government bodies and the
private sector, as well as the development of
monitoring and evaluation systems, are also required.
Agriculture plays a crucial role in transitioning to a
sustainable economic model. By 2030, Uzbekistan
plans to reduce water use in agriculture by 10%
through the introduction of precision farming
technologies and drip irriga-tion, which will help
mitigate the consequences of water scarcity. Given the
increasing threats posed by climate change, sustainable
agricultural practices can reduce risks and help mitigate
crop yield losses, which is especially important for the
country’s agricultural sector.
To achieve sustainable progress in the green economy,
it is recommended to continue efforts to improve
energy efficiency, implement renewable energy
sources, and develop educational programs aimed at
training
specialists
in
sustainable
agriculture.
Strengthening
partnerships
with
international
organizations and investing in R&D can also help
overcome existing barriers and enhance the country's
innovation potential.
Thus, Uzbekistan is on the path to a sustainable future,
but further successful advancement requires not only
political will but also targeted efforts to develop
institutional support, improve coordination among
various sec-tors, and adapt to climate change
challenges.
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