Uzbekistan VNR 2023 - Built capacity of the private sector and civil society

the SDGs, stimulate the activity of implementing public-private partnership projects and blended financing, mainstream the transition from the traditional concept of financing to the concept of result-oriented financing, and the introduction of the principles of responsible investment and impact investing. According to the Convergence initiative, the amount of investment in the framework of blended financing in 2011-2022 increased to 172 billion USD. Strengthening the ability of the state to efficiently manage the available resources will allow it to be more actively involved in this market.

Along with this, important areas of mobilizing resources to finance the SDGs include creating conditions for the development of private business by reforming the legal and regulatory

framework; creating conditions for the inflow of SDG-oriented investments, including through the revision of the system of tax and non-tax incentives and preferences; creating conditions for the emergence of new markets (for example, ecotourism, eco-building, etc.); and enhancing the attraction of targeted investments (climate finance, green finance) and new innovative instruments (diaspora bonds, sukuk, etc.).

The key goal of development finance policy should be to mobilize more private and public flows from internal and external sources, as well as to achieve higher development results based on resources that are already being spent through strategic planning and changing approaches to evaluating results.

2.3. Built capacity of the private sector and civil society

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In 2017-2021, a lot of work was done in Uzbekistan to stimulate and support the private sector. In order to create a favorable business environment for private entrepreneurs and stimulate their activities, about a thousand legislative acts, Decrees and Resolutions of the President of Uzbekistan, official documents of the Government have been adopted over the past five years.

• cancellation of 114 types of licenses and permits required in the field of entrepreneurship, and a notification procedure has been introduced instead of 33 of them;

Specific measures to support small business and private entrepreneurship are as follows:

• cancellation of unscheduled inspec­ tions of activities (strictly according to a pre-approved schedule);

• reduction of the procedure for official registration and authorization of activities for business entities by 2 times;

VOLUNTARY NATIONAL REVIEW OF THE THE REPUBLIC OF UZBEKISTAN 2023

Figure 2.3.1. Dynamics of changes in the number of private entrepreneurs in Uzbekistan (thousand) 533,3 445,7 297,9

283,4

2017 г.

Registered

315,9

375,8 300,6

2018 г.

358,8

2019 г.

501,7

419,6

2020 г.

2021 г.

Acting

Source: Statistical data of the Statistics Agency of the Republic of Uzbekistan

• reduction in the number of types of taxes from 13 to 9, as well as reduction in the rate of value added tax and social tax; • introduction of a mechanism for allocating microloans without establishing a legal entity for newly registered individual and family entrepreneurs; • creation of a special state financial assistance fund; • Creation of an independent institute for protecting legislative and legal interests of business entities under the Administration of the President of the Republic of Uzbekistan.

In 2021, active state support made it possible to increase the share of small and private businesses in GDP to 55.0%, in construction to 72.4%, and in employment to 74.4%. Private business is becoming an important source of sustainable socio-economic development of the country.

In a short period of three years (2019-2021), the number of active entrepreneurs increased from 358.8 thousand to 501.7 thousand, or by

1.4 times Along with the private sector, much attention is paid to the formation and expansion of civil society actors. In accordance with the political transformations, civil society institutions have received support, as well as public control mechanisms have been expanded.

In 2018-2021, more than 1270 projects of non-governmental organizations and other civil society institutions received support. More than 1UZS17.0 billion of financial resources have been allocated from the budget for the implementation of these projects.

As a result of the measures taken, the number of non-governmental and non-profit organizations has increased by 20.7% over the past 4 years (Figure 2.3.2.).

187 large civil society organizations have started their work. A perma-

VOLUNTARY NATIONAL REVIEW OF THE THE REPUBLIC OF UZBEKISTAN 2023

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Figure 2.3.2. Dynamics of growth in the number of non-governmental and non-profit organizations in Uzbekistan 9204 8700 5100

6400

2585 95

1991 г.

2000 г.

2010 г.

2013 г.

2017 г.

2021 г.

Source: Nationwide Movement "Yuksalish"" – Factbook (Results of the implementation of the Action Strategy for the Five Priority Areas of Development of the Republic of Uzbekistan in 2017-2021)

nent representation of civil society has been established under the Legislative Chamber of the Oliy Majlis. In eight regions of the country, offices of non-governmental and non-profit organizations have been established using budget funds.

In the period of 2016-2020, the cash flow of non-governmental and nonprofit organizations increased by more than 12 times.

In addition, citizens volunteered in activities to achieve the most impor-

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tant SDGs for them. Thus, volunteering was almost ubiquitous with a rate of 92% among the population in 20202021. Most volunteer work is done by helping friends and neighbors and participating in a government program or campaign.2In general, there is an active process of efficient development of civil society, the functioning of which requires further improvement of the legislative and legal framework.

2

VOLUNTARY NATIONAL REVIEW OF THE THE REPUBLIC OF UZBEKISTAN 2023

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