American Chamber
of Commerce in Uzbekistan
MONTHLY MEETING
Monthly Meeting on April 29, 2010
“It [the disappearance of the Aral Sea] is clearly one of the worst environmental disasters of the world. It really left with me a profound impression, one of sadness that such a mighty sea has disappeared”
- Ban Ki-moon
Secretary General of the United Nations General Assembly
At the edge of the once-vibrant shores of the disappearing Aral Sea in western Uzbekistan sits Karakalpakstan, a region severely devastated by what Ban Ki-moon, secretary general of the United Nations General Assembly, identified as “one of the worst environmental disasters of the world.” Ravaged environmentally, socially and economically, the Karakalpakstan region was recently visited by Ban Ki-moon during his first official tour of Central Asia and its member countries.
Anita Nirody, UN resident coordinator and UNDP resident represenative in Uzbekistan, expanded upon Ban Ki-moon’s observations in her presentation at the April 29 business meeting of the American Chamber of Commerce in Uzbekistan. Nirody’s presentation, “Improving the Living Conditions of the People of Karakalpakstan - Highlights of the UNDP Experience,” outlined the United Nation’s direct response to the Aral Sea disaster in Uzbekistan.
Karakalpakstan, according to Nirody’s report, occupies 37 percent of the total territory of Uzbekistan and makes up approximately 5.5 percent of the total population. However, the region’s GDP represents only 2.4 percent of the national GDP in Uzbekistan, ranking it as the poorest region in the country.
In response to this data, the UNDP has sponsored “Improving Living Standards through Area-Based Development,” which includes local participatory planning, access to basic services, and rural economic development. The UNDP also provides small grants for sustainable land and water management and tries to save unqiue flora and fauna of the area by protecting the Tugai ecosystems and unique species.
Copies of Nirody’s presentation are available at the AmCham office.
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Monthly Meeting on March 17, 2010
The American Chamber of Commerce in Uzbekistan welcomed Bindu N. Lohani, the vice-president of the Asian Development Bank (ADB) to speak at its March business meeting. Lohani was in Uzbekistan in preparation for the annual meeting of the ADB which was held in Tashkent in early May. The monthly AmCham business meeting was held on March 17 at Hotel InterContinental and attracted about 80 AmCham members and visiting guests.
Lohani’s presentation, titled “ADB’s Strategy 2020: Financing Sovereign and Non-Sovereign Operations,” outlined several aspects including a general outlook for Asia, the post-global financial crisis, ADB’s long-term strategic framework, measuring corporate results in 2008-2020, financing sovereign operations, and others.
A significant part of the presentation was dedicated to ADB’s Long-Term Strategic Framework for 2008-2020 or Strategy 2020, which focuses on three strategic agendas: inclusive economic growth, environmentally sustainable growth, and regional integration. Strategy 2020 is based on five drivers of change, according to Lohani. These are private sector development and operations, good governance and capacity development, gender equity, knowledge solutions, and partnerships.
In its strategy for 2010, ADB will focus its operations on five core specializations: infrastructure, environment (including climate change), regional cooperation and integration, finance sector development, and education. A good example of regional cooperation and integration in the Uzbekistan region is the CAREC program which involves seven countries.
Lohani concluded his presentation by speaking about ADB’s structure, its main shareholders, the volume of lending by sectors, main programs, and many other points.
NB Presentation is available at the AmCham office.
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Monthly Meeting on January 28, 2010
The relationship between Uzbekistan and businesses from the United States and around the world has expanded significantly throughout the last two years, AmCham members were told at the Jan. 28, 2010 monthly AmCham meeting. This statement was made by Robert McCutcheon, the Economic Officer of the U.S. Embassy in Tashkent, as he led off the evening with a presentation titled “Uzbekistan, Commercial and Trade Opportunity in 2010.”
Over the last two years, several U.S. companies have joined in this expansion and some have sent representatives to Uzbekistan. He listed General Motors and Honeywell as examples, as well as 3M, General Electric, Hewlett Packard and Microsoft. In 2008 the United States was Uzbekistan’s 10th largest export market and ninth largest source of imports.
McCutcheon also spoke about export/import between the countries and listed the main items of trade. He mentioned the assistance programs for business in Uzbekistan and pointed out the list of international exhibitions that will take place during the first quarter of 2010 in the United States.
Loup J. Brefort, country manager of the World Bank Country Office, followed McCutcheon’s presentation. In his address to the AmCham audience, Brefort gave detailed information about every sphere of the Uzbek economy, prospects for commerce, collaboration in 2010 and threads to the development of the country.
The final presenter was Kazuhiko Higuchi, country director for the Asian Development Bank. In his presentation titled “Opportunities Under Private Sector Operations of the Asian Development Bank,” Higuchi outlined equity investments, loans, guarantees, and B loans (complimentary financing scheme) in the framework of the ADB’s Private Sector Projects. Higuchi explained to the AmCham audience what is necessary for obtaining ADB assistance for a project.
The monthly AmCham meeting began with a welcome from Donald Nicholson II, AmCham president. Nicholson promised the guests that AmCham will work even harder in 2010 for its members. A certificate of appreciation was given to McCutchen for his support to the business community in Uzbekistan. On behalf of the international business community, Tatyana Bystrushkina and Nicholson wished McCutcheon good luck in his new assignment in Moscow.
NB Some material from the January AmCham Monthly Meeting is available at AmCham office.
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General Assembly, December 10, 2009
The annual General Assembly of AmCham in Uzbekistan gathered on Dec. 10, 2009. Tatyana Bystrushkina, AmCham Executive Director, opened the meeting with a presentation of Amcham activities in 2009. Bystrushkina shared the encouraging news that AmCham had received its 100th member in December - Carlsberg Company. As the 100th member, Carlsberg Company was awarded a Certificate of Appreciation and the invitation to enjoy Sunday brunch at the Hotel Dedeman.
Bystrushkina briefed AmCham members on the various membership dynamics and events in 2009. She noted that 24 new members joined AmCham last year. She also stressed that AmCham would not be able to fulfill its mission statement without the involvement of its various committees. Because of this importance, the chairmen of the committees were each awarded certificates of appreciation for their support of AmCham in Uzbekistan.
Certificates were given to: Alexey Kirilov, co-chairman of the AmCham Trade and Investment Committee; Oybek Khalilov, chairman of the AmCham Membership Committee; and Ludmila Park, chairman of the newly-established Social and Corporate Responsibility Committee. Denis Karasyov, publisher of the AmCham quarterly newsletter “Business Connections,” was also recognized with a certificate of appreciation for the high quality of work his agency has given to the publication.
Hugo Minderhoud, AmCham treasurer, reviewed the financial results of the year 2009. According to the results, AmCham managed to reduce its expenses and increase the amount of membership dues received, Minderhoud reported.
The year 2009 was positive in terms of membership growth, reported Khalilov, AmCham vice-president and chairman of the AmCham Membership Committee. Khalilov also mentioned the remarkable business mixers held in 2009 and thanked those who sponsored the events. He went on to ask other companies interested in sponsoring future business mixers to contact the AmCham office.
Bystrushkina thanked the members of the AmCham Board of Directors who had dedicated significant time to AmCham in Uzbekistan. Along with scheduled board meetings, the directors had also attended more than 30 extra meetings with representatives of international organizations and foreign companies, had visited areas throughout Uzbekistan, and had participated in many other events.
The final part of the meeting’s agenda included the election of the 2010 Board of Directors. As the tradition, Robert McCutcheon, Political/Economic Officer of the U.S. Embassy in Tashkent, supervised the tabulation procedure.
We wish the new AmCham Board of Directors initiative and success in reaching the new goals of AmCham in 2010!
NB: The Financial Statement and Annual Presentation for 2009 are available at the AmCham office.
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Monthly Meeting on November 25, 2009
The economic development of Uzbekistan in 2009 was the focus of a presentation given by Alisher E. Shaykhov, chairman of the Chamber of Commerce and In dustry of Uzbekistan at the November Amcham monthly meeting. It has become an AmCham tradition to invite Shaykhov to the give the November key presentation to finalize the year’s results and highlight the work completed over the past year.
In his presentation titled “Social-Economic Development of the Republic of Uzbekistan,” Shaykhov reminded AmCham members about the Uzbek model of transition to a socially-oriented market economy based on five principles developed by Uzbekistan President Islam Karimov. Shaykov then went on to give an overview of the main economic indicators, showing positive figures of Uzbekistan development of IMF including an 8.2 percent GDP growth; a 7 percent inflation rate; a 9.1 percent industry growth; and foreign trade development in the first half of 2009.
Uzbekistan’s external debt in 2008 was only 14.8 percent to its GDP, Shaykhov explained. He also spoke about the government’s anti-crisis measures which have enabled Uzbekistan to escape the international financial crisis. Shaykhov added that he expects Uzbekistan will be able to attract new foreign investors while also helping the work of businesses already in country through significant new legal documents.
Following Shaykhov’s presentation, Nafisa Abdullaeva, director of the law firm Lex Mark Advokat, and Aziza Umarova, head of the Good Governance Unit of the UNDP, presented a program sponsored by the Central Asia-Caucasus Institute at SAIS, JHU and the Rumsfeld Foundation for Young Professionals.
The November monthly meeting was held at the Hotel InterContinental and was very well attended by members of AmCham and the diplomatic corps. The presentation was followed by cocktails and refreshments.
Copies of the November presentations are available in the AmCham office.
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Consul Outlines Visa Services at AmCham Meeting (10/29/2009)
Consul David Mico spoke to more than 100 people at a meeting of the American Chamber of Commerce in Uzbekistan, where he outlined the visa services available to business travelers who want to visit the United States.
“Supporting the business relationship between the United States and Uzbekistan is an important mission of the Embassy. It is a mission that the Consular Section sees very much as its own,” he said. “We sincerely want to do our best to facilitate travel for qualified business applicants.”
Mico and U.S. Ambassador Richard Norland addressed a standing-room-only crowd Oct. 29 at a meeting of the American Chamber of Commerce (AmCham). Ambassador Norland’s remarks can be found here.
The Consular Section is working to enhance the efficiency, predictability and transparency of the visa process. Regardless of the decision on whether to approve a visa, the process of applying for a U.S. visa “should not be another adventure,” Mico said.
Mico noted that the visa application forms and appointment system are now online, along with full information about how to apply, at the U.S. Embassy website. The electronic system has reduced errors and allows prospective travelers to choose the most convenient appointment times among those available, he said. The current wait time is about 13 days. However, expedited appointments are available for AmCham members traveling for business or for emergency travel.
Mico led the audience through what they can expect on the day of the interview: going through security screening at the Embassy; paying the cashier; and the short interview with a consular officer, including fingerprinting, questions about the purpose of travel and family situation, the possible review of documents, and what is usually an immediate yes-or-no decision on the visa request.
He noted that the Consular Section issues thousands of business travel visas each year, and he said that, regardless of the decision, all applicants will be treated with respect.
Mico also reminded the audience that the Consular Section is available to help with U.S. passports, notary services, voter assistance, help with federal benefits and other American Citizen Services.
U.S. Embassy in Uzbekistan web-site
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Ambassador Addresses American Chamber of Commerce (10/29/2009)
U.S. Ambassador Richard Norland highlighted economic expansion projects and the strengthening bilateral relations between the U.S. and Uzbekistan during a speech Oct. 29 at the American Chamber of Commerce in Uzbekistan.
Norland spoke about the expansion of the Navoi airport into an international cargo hub, construction of the Navoi Free Industrial Economic Zone, and plans to extend rail links from the Uzbekistan-Afghanistan border to Mazar-e-sharif, where goods can be transferred to roads leading to other parts of Afghanistan and South Asia.
Norland also pointed out that talks under the Trade and Investment Framework Agreement with Uzbekistan and other Central Asian nations took place in Washington in October. And as a further sign of improving relations, Norland noted that Assistant Secretary of State Robert Blake proposed a bilateral consultation mechanism be set in motion to discuss a range of issues between Uzbekistan and the U.S.
During his visit to Uzbekistan on Oct. 11, Blake invited a high-level Uzbek delegation to Washington to launch the process.
“I expect this process to take our relationship forward in each of the key dimensions – political, security, economic and human,” Norland said, adding that rebuilding trust between the two nations was critical. “I believe we are making real progress in restoring that trust. There will continue to be differences of approach, but we are finding ways to discuss these on the basis of mutual interest and mutual respect. I am convinced that engagement is the best, and indeed the only, way to establish a common understanding on those issues each side values most.”
Ambassador Norland meets regularly with the American Chamber of Commerce in Uzbekistan (AmCham), a group of about 80 members representing the international business community in Uzbekistan. The hard work these business people have put in has been an integral part of Uzbekistan’s economic growth, he said.
There was a standing-room-only crowd of more than 100 people Thursday, when Norland and Consul David Mico addressed the AmCham members. You can read the full text of Norland’s speech here.
Donald Nicholson II, the president of AmCham, said he agreed that many factors were coming together to help improve the business environment in Uzbekistan. The Uzbek economy has weathered the global financial crisis well and is seeing continued growth, gold prices are strong, and natural gas production and transportation infrastructure is expanding, he noted.
“There’s real growth here, and most people are very encouraged,” Nicholson said.
Ambassador Norland said he has seen signs that some large American companies are renewing their interest in Uzbekistan, and that it is important to ensure that small- and medium-sized companies – which make up more than 60 percent of Uzbekistan’s gross domestic product – also have opportunities to do business here.
“Our job at the Embassy is to get them to give Uzbekistan a fair look. The job of the Uzbek authorities is to create and sustain conditions that make it a sound place to invest,” Norland said.
U.S. Embassy in Uzbekistan web-site
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AmCham Monthly Meeting on September 17, 2009
The changing insurance laws in Uzbekistan were the topic of discussion at the September monthly meeting of the American Chamber of Commerce on Sept. 17. The event’s main speaker, Mirodil Abdullaevich Mirsadikov, director of the Association of Professional Participants of the Insurance Market of Uzbekistan, spoke directly to this subject in a presentation titled “Current State of the Insurance Market of Uzbekistan and Principal Points of Civil Liability Insurance of Employers.”
The government of Uzbekistan recently adopted a new law on “Compulsory Civil Liability of the Employer,” which went into effect on Oct. 18, 2009. In his presentation, Mirsadikov explained in detail the purpose of the new law, the procedure of its implementation, as well as details and definitions of the insurance premiums. He also outlined the main characteristics of the insurance market in Uzbekistan, along with the industry’s development and problems.
Through this presentation, the AmCham community was given the unique opportunity to receive a wide range of information on the recent amendments to Uzbek insurance legislation. Mirsadikov encouraged all AmCham members to contact his assocation if they have any questions about insurance or if they need consultation on the subject.
Copies of the September presentation are available in the AmCham office.
The monthly meeting was held at the Hotel InterContinental and attended by many AmCham members and guests. Oybek Khalilov, vice-president of AmCham, welcomed the attendees back from the summer break and introduced Mirsadikov, the main speaker.
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