Project Detail |
The proposed Economic Management Improvement Program, Phase 2 (EMIP II) supports transformation of Uzbekistans state-dominated economy by strengthening fiscal management,
improving governance and operations of state-owned enterprises (SOEs), and enhancing public sector accountability. The program is aligned with the Asian Development Bank (ADB) country
partnership strategy for Uzbekistan, 2019-2023 and operational priorities of ADBs Strategy 2030 that are (i) strengthening governance, quality, and capacity of public institutions to undertake
policy reforms and promote private sector development; (ii) accelerating progress in gender equality; (iii) addressing remaining poverty and reducing inequalities; and (iv) tackling climate
change, building climate and disaster resilience, and enhancing environmental sustainability.
Project Name Economic Management Improvement Program, Phase 2 (Subprogram 1)
Project Number 51350-004
Country / Economy Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4292-UZB: Economic Management Improvement Program, Phase 2 (Subprogram 1)
Ordinary capital resources US$ 150.00 million
TA 10092-UZB: Supporting Economic Management Improvement Program, Phase 2
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector
Public sector management / Public administration - Public expenditure and fiscal management - Reforms of state owned enterprises - Social protection initiatives
Gender Equity and Mainstreaming Effective gender mainstreaming
Description
The proposed Economic Management Improvement Program, Phase 2 (EMIP II) supports transformation of Uzbekistans state-dominated economy by strengthening fiscal management,
improving governance and operations of state-owned enterprises (SOEs), and enhancing public sector accountability. The program is aligned with the Asian Development Bank (ADB) country
partnership strategy for Uzbekistan, 2019-2023 and operational priorities of ADBs Strategy 2030 that are (i) strengthening governance, quality, and capacity of public institutions to undertake
policy reforms and promote private sector development; (ii) accelerating progress in gender equality; (iii) addressing remaining poverty and reducing inequalities; and (iv) tackling climate
change, building climate and disaster resilience, and enhancing environmental sustainability.
The program is designed under a policy-based lending modality with two subprograms. While subprogram 1 focuses on improving the legal, regulatory, and institutional framework, subprogram 2 supports measures for effective and transparent fiscal management; SOE transformation, including strengthening of the competitive environment; and improving anticorruption and audit systems. The programmatic approach allows for comprehensive policy dialogue and flexibility in implementing logically sequenced structural reforms in a multiyear framework. The attached technical assistance (TA) of $250,000 supports the implementation.
Project Rationale and Linkage to Country/Regional Strategy Since independence in 1991, Uzbekistan has pursued an import substitution model under a state-dominated economy, driven by commodity exports. Since 2017, Uzbekistan has undertaken structural reforms to facilitate transition towards a market-based economy under its National Development Strategy, 2017-2021 and Roadmap of Reforms, 2019-2021. A set of fundamental macroeconomic and public financial management reforms have been undertaken with support from development partners, including ADBs Economic Management Improvement Program (EMIP). Uzbekistan has maintained sound macroeconomic policies with low risk of debt stress and ample foreign exchange reserves, achieving average gross domestic product (GDP) growth of 6.8% during 2010-2019. Amid the coronavirus disease (COVID-19) pandemic, Uzbekistan had a GDP growth rate of 1.9% in 2020 and 7.4% in 2021 with effective countercyclical response. However, long-standing development constraints prevail. |