13:46 / 27.05.2022

WB experts forecast high risk of forming an oligarchy in Uzbekistan

The seizure of power and the formation of oligarchs occur at two critical stages in the reform process.

Photo: Kun.uz

As the World Bank (WB) report states, the experience of transformations in other countries in the post-Soviet space, including Russia and Ukraine, shows that state capture and the formation of oligarchs most often occur at two critical stages of the reform process:

- reduction of state control and denationalization of lands;
- privatization of state-owned enterprises.

Both of these stages are the most important priorities identified by the government and based on the results of the WB report for the next five years.

Lessons learned in transition economies in the post-Soviet space also show that there are usually two kinds of vested interests:

- the desire to seize control over new resources emerging as a result of privatization (those who joined the process in the early and middle stages win);
- persons in an advantageous position today and interested in hindering the reform process.

Information received from all stakeholder groups during the consultations confirms that the level of both risks in Uzbekistan is high, and that there is high concern in connection with the privatization of land and state-owned enterprises.

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