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COMPARATIVE ANALYSIS OF THE FORMATION AND DEVELOPMENT
OF THE PROPERTY-OWNING CLASS IN UZBEKISTAN AND CHINA
Gulomova Shakhnoza Axmedovna
MASTERS DEGREE IN INTERNATIONAL RELATIONS
AND WORLD POLITICS
UZBEKISTAN UNIVERSITY OF JOURNALISM AND
MASS COMMUNICATIONS
Abstract:
This article compares the history, laws, and institutions of property
ownership in Uzbekistan and China. Based on the experiences of both countries, it
investigates the significant accomplishments and systemic issues in the growth of
property relations. The conclusion and recommendations are intended to find
successful techniques for the development of the property-owning class in Uzbekistan.
Аннотация:
В данной статье проводится сравнительный анализ истории,
законодательства и институтов собственности в Узбекистане и Китае.
Основываясь на опыте обеих стран, исследуются значительные достижения и
системные проблемы в развитии имущественных отношений. Заключение и
рекомендации направлены на выявление успешных методов формирования
класса собственников в Узбекистане.
Keywords
: property ownership, property-owning class, private sector, reforms,
state policy, property rights, economic growth
In a market economy, the establishment and active participation of a property-
owning class is a critical aspect in long-term development. Property owners are a
significant socioeconomic force capable of boosting economic activity, creating new
jobs, and fostering innovation. Since the 1990s, Uzbekistan has prioritised the
development of its private sector. Similarly, with the fall of Mao's rule, economic
reforms implemented in 1978 resulted in the formation of a powerful class of property
owners. As a result, this article examines the obstacles and options of establishing and
developing a property-owning class, drawing on the experiences of both Uzbekistan
and China.
The group of property holders in China emerged as a result of Deng Xiaoping's
reform and opening-up strategy, which began in 1978. The implementation of the
household contract system in agriculture, the reform of state-owned companies, and
the legalisation of private commercial activity provided an economic and legal climate
conducive to the expansion of this class. The passage of the “Property Law” in 2007
gave legal protection for private ownership. Today, SMEs in China account for more
than 60% of total economic activity.
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Uzbekistan's privatisation process, which began in the 1990s, resulted in the
development of an initial class of property owners. Nevertheless, this procedure was
limited to major firms and hampered by poor institutional structures, slowing the class's
overall development. In recent years, the “New Uzbekistan” policy has emphasised
the development of the private sector. The 2022-2026 Development Strategy aims to
boost the private sector's proportion of GDP to 80%. Measures include the creation of
free economic zones, entrepreneurial support programs, and a simplified tax structure.
However, issues remain.
Uzbekistan: Weak judicial system, uncertainty in land ownership, and limited
access to financial resources
China: Restrictions on the political activity of property owners and the
dominance of state capitalism
The state's engagement in the economy has a significant impact on the creation of
a property-owning class. In China, the state initially maintained close control over the
economy until progressively allowing for market mechanisms. The process was
meticulously planned, phased, and closely monitored. Deng Xiaoping's policy of
letting some people get rich first was crucial in establishing the property-owning class.
In Uzbekistan, the state first played a strong role in the economy, which hindered the
growth of property owners. However, recent reforms—such as the 2022-2026
Development Strategy and the simplification of business registration and licensing
procedures through the “one-stop shop” system—have achieved significant results by
establishing a more favourable environment for enterprise and economic growth of a
new class of property owners.
The rise of a property-owning class not only boosts economic progress but also
promotes social stability. In China, the rise of the property-owning class has coincided
with the expansion of the middle class, increasing domestic demand and lowering
poverty rates. China was officially recognised in 2021 as having “eradicated extreme
poverty.”
In Uzbekistan, the property-owning sector is weak, particularly in rural areas,
which may worsen economic inequality. Without complete legal protections for
property rights, public scepticism of reforms may grow. As a result, in addition to
measures aimed at developing the property-owning class, social protection and
education must be strengthened. Innovation is enthusiastically embraced by small and
medium-sized property owners in China. Collaboration with research institutes,
technology parks, and business incubators has led to the emergence of numerous
technical startups. The private sector is still expanding in advanced sectors under the
“Made in China 2025” initiative. Additionally, Uzbekistan is building its infrastructure
for innovation. However, to increase the activities of the private sector, it is imperative
to develop the interaction between science and industry. Property owners need to have
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better financial management abilities, legal literacy, and business education. In this
context, organisations like the Ministry of Innovative Development and the Public
Service Development Agency are essential.
Conclusion
The effective establishment of a property-owning class depends on a well-
organised and consistent set of institutional, legal, and economic policies, according to
a comparison of China and Uzbekistan. Dynamic private enterprise emerged in China
as a result of long-term strategic planning, gradual liberalisation, and strong legal
protection of private property. Despite early institutional limitations, Uzbekistan is
currently making significant strides thanks to specific changes implemented as part of
the "New Uzbekistan" plan. The Chinese experience shows that promoting private
initiative and ownership requires establishing legal security, extending economic
liberties, and fostering confidence in state institutions. By strengthening judicial
reforms, increasing court independence, developing business support infrastructure,
and encouraging equitable economic involvement across sectors and regions,
Uzbekistan can gain from this model. In the end, creating a robust and accountable
property-owning class in Uzbekistan necessitates an integrated strategy that strikes a
balance between social justice and growth, entrepreneurship and responsibility, and
innovation and equity. This goes beyond economic liberalisation.
References
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China’s Hukou System. The China Quarterly, No. 139, pp. 136–137.
2. Pei, M. (2006). China’s Trapped Transition: The Limits of Developmental
Autocracy. Harvard University Press.
3. O‘zbekiston Respublikasi Prezidentining 2022–2026 yillarga mo‘ljallangan
Taraqqiyot strategiyasi.
4. O‘zbekiston Respublikasi Konstitutsiyasi. (1992).
5. Xitoy Xalq Respublikasining “Mulk to‘g‘risidagi qonuni”, 2007-yil.
