Special Features Of International Financial Centres And Its Establishment In Uzbekistan

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Younas, A., & Turdialiev, M. A. . (2021). Special Features Of International Financial Centres And Its Establishment In Uzbekistan. The American Journal of Political Science Law and Criminology, 3(08), 17–21. https://doi.org/10.37547/tajpslc/Volume03Issue08-04
Ammar Younas, University Of Chinese Academy Of Sciences Beijing

Researcher

Mukhammad Ali Turdialiev, Tashkent State University Of Law,

PhD Candidate 

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Abstract

The most important tasks in the field of economic development are attracting foreign investments into the economy of our country, creating favourable conditions for them, providing legal protection and further improving the investment climate. The article analyzes the basic concepts of the international financial centre and its brief history, the views of several scholars from different countries on international financial centres and their types. Prospects for the establishment of international financial centres in Uzbekistan were also studied. This was demonstrated as a result of the analysis of the legal, financial and other possibilities of establishing an international financial centre based on common law in Uzbekistan.

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The USA Journals Volume 03 Issue 08-2021

17

The American Journal of Political Science Law and Criminology
(ISSN

2693-0803)

Published:

August 25, 2021 |

Pages:

17-21

Doi:

https://doi.org/10.37547/tajpslc/Volume03Issue08-04





















































I

MPACT

F

ACTOR

2021:

5.

952

ABSTRACT

The most important tasks in the field of economic development are attracting foreign investments
into the economy of our country, creating favourable conditions for them, providing legal protection
and further improving the investment climate. The article analyzes the basic concepts of the
international financial centre and its brief history, the views of several scholars from different
countries on international financial centres and their types. Prospects for the establishment of
international financial centres in Uzbekistan were also studied. This was demonstrated as a result of
the analysis of the legal, financial and other possibilities of establishing an international financial centre
based on common law in Uzbekistan.

KEYWORDS

International financial centres, offshore zones, foreign trade and entrepreneurship, economic
potential, legal regime.



INTRODUCTION


The current venture arrangement within the
world and in our nation appears that in an
advertising economy to profoundly change
and fortify outside financial relations, to pull in
more remote venture to the economy of our
country, to contribute more within the
economy of the republic, to contribute within


the republic. In arrange to extend the viability
of integration, it is vital to assist make strides
the legitimate direction of speculations inside
the free financial zones, their fascination,
arrangement of benefits and inclinations.
Nowadays,

the

liberalization

and

modernization of the economy, subsequently

Special Features Of International Financial Centres And Its
Establishment In Uzbekistan


Ammar Younas

Researcher At University Of Chinese Academy Of Sciences Beijing, China

Turdialiev Mukhammad Ali Polatjon Ogli

PhD Candidate At Tashkent State University Of Law, Tashkent, Uzbekistan

Journal

Website:

https://theamericanjou
rnals.com/index.php/ta
jpslc

Copyright:

Original

content from this work
may be used under the
terms of the creative
commons

attributes

4.0 licence.


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The USA Journals Volume 03 Issue 08-2021

18

The American Journal of Political Science Law and Criminology
(ISSN

2693-0803)

Published:

August 25, 2021 |

Pages:

17-21

Doi:

https://doi.org/10.37547/tajpslc/Volume03Issue08-04





















































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2021:

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accomplishing the generation of items that
meet universal measures, requires the creation
of favourable conditions for drawing in the
remote venture, particularly coordinate
venture. Of course, free financial zones play an
imperative part within the execution of such
pressing tasks. The developing drift of free
financial zones within the world in later a long
time, the assist advancement of remote
exchange and speculation relations, the influx
of remote coordinate speculation in these
regions, as well as the improvement of new
high-tech and competitive businesses. The
increment within the level of these structures
makes the requirement for the improvement
of entrepreneurial action and its legitimate
control. At the show, there are more than
4,300 interesting free financial zones around
the world.

MATERIALS AND METHODS

Worldwide money related centres are an
unused frame of free financial zones. Universal
monetary centres can be called an unused era
of free financial zones. Worldwide money
related centres are one of the prospects for
improvement in today's world financial
community. Universal money related centres
are a put where banks and specialized money
related education are locked in in worldwide
cash operations, credit and bank, securities
and gold operations. There are universal
budgetary centres in London, Modern York,
Zurich, Frankfurt is Primary, Luxembourg,
Singapore and other nations around the world.
In specific, within the neighbouring Republic of
Kazakhstan in 2018, the Worldwide Money
related Center "Astana" started its work. This,
in turn, proves the vital part of international
monetary centres within the country's
economy.

I believe that Uzbekistan should apply English
law in business as well. Before establishing an
international arbitration and international
financial centre in Kazakhstan, we studied the
experience of Qatar and the application of
English law in them. I think that this system has
shown effective results in our country as well.
Thus, Kazakhstan and Uzbekistan have
common goals: to attract investors, to develop
business

internationally.

That

is

why

Uzbekistan will benefit from choosing this
path.

According to the analysis, in the experience of
developed countries (USA, China, South Korea,
the United Arab Emirates, etc.), the
introduction of innovations in free economic
zones is growing. From this point of view, to
create more favourable conditions for
participants in free economic zones, further
simplification of administrative procedures and
permitting rules, improvement of business
regulation, an increase of investment
attractiveness and protection of investors'
rights and legitimacy mechanisms.

During the short period passed by President
Sh.M.Mirziyoev, the decrees and resolutions
issued for the rapid development of
investment activities and the establishment of
new free economic zones, in particular, the
right to apply tax rates and other mandatory
payments in force on the date of transfer" [1].

It is specified in the Action Strategy for the five
priority areas of development of the Republic
of Uzbekistan for 2017-2021, approved by the
Decree of the President of the Republic of
Uzbekistan dated February 7, 2017 PD-4947 “…
Increase the efficiency of free economic zones,
technoparks and small industrial zones
operating in the country, the creation of new


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2021:

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ones…” [2]. It is necessary to create more
opportunities for investment in the free
economic zones operating in the country, to
pay special attention to the promotion of
foreign trade and entrepreneurship in these
areas, and to ensure the proper position of our
country in the world market.

Z/Yen Group Limited, a British financial
company, was the first to try to bridge this gap
between financial centres and international
financial centres. It is worthwhile to briefly
mention Z /Yen Group Limited. Founded in 1994
in London, Z/Yen Group Limited is a company
with high results and many years of experience
in providing risk management advice to
investors and entrepreneurs. At the same time,
this financial company is engaged in strategic
planning,

business

education,

financial

evaluation, liquidation and localization of
companies, as well as research in various
sectors of the economy.

Bank of America, Barclays Capital, HSBC,
McKinsey & Co, PricewaterhouseCoopers,
UBS, London Stock Exchange, Russian Stock
Exchange-MICEX

and

other

financial

institutions, BP Oil International, British
Telecom, Cisco, Hitachi Europe Limited, Shell
International, Siemens companies, non-profit
organizations such as The British Council, the
Global Policy Institute, and government
agencies use the services of Z/Yen Group
Limited.

One of Z/Yen Group Limited's extensive
activities is to compile an annual international
ranking of international financial centres and
intellectual property.

Z/Yen Group Limited lists the following types of
international financial centres by the scope of
activity.

The Global Financial Center is a centre that
reflects the financial institutions of the
world, interconnecting national, regional
and global representatives of the financial
sector.

International financial centres are the
centres that act as coordinators in the
implementation

of

international

agreements

and

open

transactions

between financial sectors located in
different parts of the world.

Specialized financial centres are one of the
most common types of financial centres,
coordinating the world's leading banks,
insurance and financial institutions in a
particular area of the financial market.
These types of financial centres specialize
in one type of financial market.

Financial centres at the national level - the
centre for trade, finance and banking
operations of the host country. These
types of financial centres are also
characterized by the ability of the host
country to conduct international financial
transactions.

Local financial centres are smaller than
other financial centres in terms of
operations and financial transactions, and
these types of financial centres are
radically different from other centres in
that

they

conduct

local

financial

transactions within a country.

It should be noted that the financial centre of
the same category can also perform the
functions of other types of financial centres.
Examples are the financial centres of London
and New York.


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The American Journal of Political Science Law and Criminology
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In some cases, we can also categorize financial
centres according to the language used there.
Currently, there is a category of "English
language centres" in this category. This
category includes financial centres located in
Australia, New Zealand, South Africa and
London. The financial centres of Frankfurt or
Tokyo are the opposite of this category, that is,
we can fall into the category of centres that
operate in their language.

It should be noted that among the leading
financial centres there are also financial
centres included in the list of offshore zones.
These include financial centres such as Hong
Kong, Singapore, the Isles of Maine, Jersey,
Guernsey. At the same time, they are also
called offshore financial centres.

There are currently several types of
international financial centres. The first
classification of international financial centres
into categories was made in the 1980s by the
American economist John Friedman [3]. As a
result of his research, he hierarchically
classified the international financial centres as
follows:

Top financial centres - London, New York,
Tokyo;

Multinational financial centres - Miami, Los
Angeles,

Frankfurt,

Amsterdam,

Singapore;

Important national financial centres - Paris,
Zurich, Madrid, Mexico, Sao Paulo, Seoul,
Sydney.

In 1999, the Globalization and World Cities
Study Group and a joint working group set up
by the University of Luffbo in the United
Kingdom

to

study

globalization

and

international centres were divided into the

following groups. In allocating them to these
groups, financial centres were assessed on a 12-
point scale based on their level of
development.

1.

Alpha category - London, New York, Paris,
Tokyo - 12 points, Chicago, Frankfurt, Hong
Kong, Los Angeles, Milan, Singapore - 10
points;

2.

Beta category - San Francisco, Sydney,
Toronto, Zurich - 9 points, Brussels, Madrid,
Mexico City, Sao Paulo - 8 points, Moscow,
Seoul - 7 points;

3.

Gamma category - Amsterdam, Boston,
Caracas, Dallas, Düsseldorf, Geneva,
Houston,

Jakarta,

Johannesburg,

Melbourne, Osaka, Prague, Santiago,
Taipei, Washington - 6 points, Bangkok,
Beijing,

Bicolcol,

Beijing,

Montreal,

Montreal, Atlanta, Barcelona, Berlin,
Buenos Aires, Budapest, Copenhagen,
Hamburg, Istanbul, Kuala Lumpur, Manila,
Miami, Minneapolis, Munich, Shanghai - 4
points.

RESULTS AND CONCLUSION

Based on the above, we would like to suggest
that it is necessary to establish the
International Financial Center and launch a
separate legal regime in the Tashkent city
international business centre with all the
essential facilities and infrastructure for global
financial centres.

First, it is necessary to develop the legal
framework and corporate governance system
of the Tashkent International Financial Center.
The transformation of the Tashkent city
international business centre into a global
financial centre will require about $ 60-70


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The USA Journals Volume 03 Issue 08-2021

21

The American Journal of Political Science Law and Criminology
(ISSN

2693-0803)

Published:

August 25, 2021 |

Pages:

17-21

Doi:

https://doi.org/10.37547/tajpslc/Volume03Issue08-04





















































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F

ACTOR

2021:

5.

952

million. This amount is calculated based on
international experience.

There are several strategic goals for the
creation of the Tashkent International Financial
Center, which should be designated as the
strategic

directions

of

the

Tashkent

International Financial Center:

Development of the capital market;

Development of asset management;

The attraction of Islamic finance;

Improving the quality of property
management;

Development of financial technologies;

Based on the experience of the international
financial centres of Astana and Dubai, the
gradual creation of the Tashkent International
Financial Center in the Tashkent International
Business Center and the introduction of English
law in it will take about five years. It will take
about ten years for this international financial
centre to become financially independent.

Based on the international experience of
creating those mentioned above global
financial centres, we can say that Uzbekistan's
current economic potential is sufficient to
meet these requirements. In conclusion, we
can positively assess the current prospects for
creating the International Financial Center of
Uzbekistan and the present British legislation.

REFERENCES

1.

№4848 decree of President of the
Republic of Uzbekistan on “On
additional measures to ensure the
rapid

development

of

the

entrepreneurial

activity,

comprehensive protection of private

property and improving the quality of
the business environment”, 2016.

2.

№4917 decree of President of the
Republic of Uzbekistan on “National
Action Strategy for Five Priority
Development Areas in 2017-2021”, 2017.

3.

Drobyshevskiy S.M., Khudko E.V.,
Velikova E.E. (2010). Perspectives on
the creation of an international
financial centre in the Russian
Federation.

Moscow.

Gaydara

Institute. 28 p.

4.

Zayniddinov,

R.

(2020).

Socio-

economic development with foreign
trade (trio of emerging markets,
transition economy and investment
attractiveness).

Архив

научных

исследований, (22).

References

№4848 decree of President of the Republic of Uzbekistan on “On additional measures to ensure the rapid development of the entrepreneurial activity, comprehensive protection of private property and improving the quality of the business environment”, 2016.

№4917 decree of President of the Republic of Uzbekistan on “National Action Strategy for Five Priority Development Areas in 2017-2021”, 2017.

Drobyshevskiy S.M., Khudko E.V., Velikova E.E. (2010). Perspectives on the creation of an international financial centre in the Russian Federation. Moscow. Gaydara Institute. 28 p.

Zayniddinov, R. (2020). Socio-economic development with foreign trade (trio of emerging markets, transition economy and investment attractiveness). Архив научных исследований, (22).

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