GTZ is working in Uzbekistan in the priority area economic reform and development of the market system.

Uzbekistan’s economic liberalisation is making slow progress. Neither the industrial sector nor SMEs are showing any significant growth. Average annual income has fallen since 1997. Agriculture is the most important economic sector, generating 30 percent of GDP. Around 40 percent of all employees work in agriculture. International organisations estimate that some 27 percent of the population live below the poverty level.
GTZ is accordingly supporting the economic transformation process. The goal is to reduce regional differences in income and reduce poverty. The aim is to achieve this through work in the following areas:

Promoting the private sector

GTZ is assisting the Uzbek Government in improving the economic and social conditions for the private sector. The goal is to create new jobs and income opportunities through greater diversification in the economy and developing upstream and downstream areas of the agricultural sector.

Promoting vocational training

The economic transition process and sharp growth in the population of working age – 43 percent of the Uzbek population are under 16 – have also made changes in the educational system necessary.
A national education reform was therefore passed in 1997. Its goal is employment-oriented training which meets the needs of forward-looking sectors of the economy. GTZ is assisting Uzbekistan in reorganising the vocational training system, e.g. through expert advice on developing curricula by vocational colleges.

Economic promotion of structurally weak regions

GTZ is cooperating with its partner organisations on improving the long-term prospects of the population in the disadvantaged regions of Karakalpakstan and Navol, with the help of measures to promote income and employment. Priority areas in work are the introduction of sustainable land use (plant production, extensive beef cattle farming for meat production) and the promotion of SMEs in upstream and downstream areas of the agricultural sector. These also include multi-country measures to stabilise the dried Aral Sea floor in an effort to deal with erosion problems.