The Project Co-ordinator in Uzbekistan (PCUz) supports the work of the host government as well as the academic and civil society sectors by enhancing government and public awareness of best practices in good governance, and efficient and transparent social and economic policies.

The PCUz helps authorities to analyse various legal instruments found suitable by governments across the OSCE region and facilitates expert advice. Thus the mission supports governmental efforts in implementing international standards in domestic legislation related to economic development.

In January 2009 the PCUz, in close co-operation with the Ministry of Justice and the Legal Problems Research Centre, a local NGO, embarked on a project to draft a commentary to the Civil Code which entered into force in 1997. The commentary is necessary to apply and use the Civil Code and its legal norms in daily life. By regulating property issues, mortgages and deposits, state contracts, intellectual property rights and other items that are necessary for a properly functioning market economy, the commentary will positively influence economic development in Uzbekistan.

At the end of this year a draft of the commentary on the first part of the Civil Code will be ready. Through the publication of materials on the Legal Problems Research Centre's website, regular working group meetings, the organization of two conferences and other public relation tools a broad participatory process within Uzbekistan is ensured.

In all projects that are implemented by the Economic and Environment Office of the PCUz and where it is appropriate, special attention is paid to rural areas, gender mainstreaming and regional transport development.

Recent projects

Anti-money laundering and countering financing of terrorism

Since 2009, The OSCE Project Co-ordinator in Uzbekistan (PCUz) has implemented a comprehensive programme with a number of projects to support the improvement of Uzbekistan’s anti-money laundering structures, including the Financial Intelligence Unit (FIU) within the Prosecutor General’s Office and the Central Bank of Uzbekistan.

The projects supported legislation modernization, training of the anti-money laundering and countering financing of terrorism (AML/CFT) compliance officers within the commercial banks of Uzbekistan, as well as non-banking financial institutions. Further software to detect suspicious transactions and data processing software were provided to the FIU

In September 2010, the PCUz organised a study tour for 12 Uzbek representatives to visit the Financial Transactions and Reports Analysis Centre of Canada, the Office of the Superintendent of Financial Institutions and the Department of Finance. On 22 September the Uzbek delegation handed over an official application letter to the Executive Secretary of the Egmont Group, a worldwide group of financial intelligence units.

In addition, the PCUz supported the accession to the Egmont Group by organising a assessment mission of the two sponsor FIUs from the Russian Federation and the Republic of Serbia. The FIU received OSCE support in becoming a full member of the Egmont Group, which took place in July 2011.

Improved impact of legislation in the economic sphere in Uzbekistan

The concept of regulatory impact assessment (RIA) has been introduced to the ministries of justice, economy and finance. A working group has been established, which will provide empirical data that can clarify options for decision-making processes, and which will identify the best way of adapting RIA in accordance with the needs of the Uzbek government and legislation procedures. Transparency measures, for example the consultation of interested parties, plain-language drafting, and electronic dissemination, were discussed in February 2011.

Training of regional arbitration courts judges in Uzbekistan

After the Law on Arbitration Courts was adopted, applying from 2007, a new basis for the growing number of entrepreneurs to solve conflicts and controversies was established. In general, the establishment of arbitration courts in Uzbekistan was positively received by the government, business enterprises and the international community, since arbitration courts, compared to trials and law suits, are characterised by their efficiency, flexibility and a reduction in costs.

As the number of cases brought to arbitration courts has risen, it became clear that training and enhanced awareness was needed. The PCUz, together with the partner for implementation, the Association of Arbitration Courts of Uzbekistan, organized training seminars for arbitration judges in 2010 and 2011 in a number of regions of Uzbekistan. The PCUz also provided necessary computer equipment to the regional arbitration courts.

Modern legislation on entrepreneurship in Uzbekistan

Small and medium sized businesses play an important role in economic development. In Uzbekistan their importance is increasing, and the government declared 2011 ”The year of small business and entrepreneurship”.

Small industries have specific strengths and weaknesses that require specific policy responses. Some typical challenges that small industries face are the lack of financing, difficulties in the utilisation of technology, constrained managerial capabilities, low productivity, and regulatory burdens.

An adequate government policy would need to improve this situation in order to take advantage of the full potential of such emerging enterprises. The PCUz supports the efforts of the Parliament’s Committee for Industry, Construction and Trade and the Legal Problems Research Centre NGO to draft two new laws on small businesses and trade. The project provides international expertise and facilitates the exchange of best practices. In addition the project includes outreach activities for the parliamentary committee, for example, roundtable discussions and conferences to discuss the draft laws, giving opportunities for stakeholders to contribute to the process.

Organisational development and training of farmers in Uzbekistan

Together with the Farmers’ Association of Uzbekistan the PCUz has, since 2007, supported training and study tours for farmers on the sustainable development of farming and business skills. Six regional centres have been established, and in 2010-2011 these centres were the basis for continued training activities, together with the Israeli Mashav Centre for International Co-operation.

The water shortage over the past several years has created great challenges for agriculture in Uzbekistan. The OSCE, together with the national representative of the International Fund for Saving the Aral Sea, provided training courses for farmers in 2010 on the rational use of water resources, advanced technologies and methodologies of irrigation.

In 2011, the PCUz continued to provide support to Information and Resource Centres, and to give information on alternative crops in order to provide the background for farmers’ decisions on the diversification of products, supplementary to the cotton cultivation which is still the country’s main crop. Horticulture, apiculture and fish farming have been introduced as alternatives during training courses.

The PCUz has been invited to support the organisational development and a training needs assessment of the Farmers’ Association and the Centre of Agro Information-Innovation of Uzbekistan. This activity should serve the development of the organisations to better adapt to the needs of the 50,000 farmers of the country.