is bound to impact an economy in one way or another. In conflicts
between nations one country suffer
large losses, while another may gain from the economic opportunities
presented by the
conflict. In the conflict in Uzbekistan the economy has indeed changed.
After gaining their independence in 1991 from the Soviet Union,
what continues to be a very strong market in growing cotton. Cotton,
as it is sometimes called, “white gold,” which is able
to guarantee a steady income in exports. The
country is mostly self-sufficient
for its energy
needs, and is
able to supply its own grain and produce needs.
The economics of Uzbekistan affects its citizens to a large degree.
Because Uzbekistan for the most part can control the economy of
their country, the decisions that are made by the leaders are directly
proportional for the most part to how the citizens are able to fair
economically. While the Uzbekistani government is not completely
responsible for every economic incident, they are responsible for
governing their people.
Rate of Uzbekistan sums (UKS) to U.S. Dollar
Recently Uzbekistan allowed for U.S. troops to be stationed in
their country in war on terror in Afghanistan. This has allowed
Uzbekistan to get triple their normal aid from the U.S., totaling
some $160 million per year. This stationing of troops has also allowed
local merchants, including carpenters who wanted to build a bathhouse
on the U.S. complex, as well as prostitutes hoping to relieve the
troops of some of their money. This money mostly goes to training
and equipping Uzbek law enforcement and border security forces trying
to stop the flow illegal drugs, nuclear material and other smuggled
goods across Uzbekistan territory, but Uzbekistan still has a mostly
poor economic showing.
This poor showing can be attributed to the heavy security around
the region, where in other places security is often a rare thing.
As shown by the chart near the top, the exchange rate of Uzbekistan
Sums to U.S. dollar shows that while Uzbekistan has not been doing
as well as it could. This exchange rate though is controlled by
the government though, in order to make imports less attractive
to consumers, and help keep their local economy going. This sets
Uzbekistan in an odd position though. President Islam Karimov uses
the threat of instability from neighboring states to justify rigid
internal policy that tolerates no opposition. In having no opposition,
this leads to high costs of running the government, along with the
President Islam Karimov has put his people in a position of high
security, but the low economy goes against that. In a poll taken
by a public center in Tashkent in 2002 it is said that 80% of Uzbeks
have trouble making ends meet. The current conflict concerns a lot
of how the Uzbek government is run, with a good portion devoted
solely to security of the government.