Welcoming Address by President of the Republic of Uzbekistan H.E. Mr. Islam Karimov to the Participants of the International Scientific-Practical Conference “The Global Financial-Economic Crisis, Ways and Measures to Overcome it in the Conditions of Uzbekistan”

Dear participants of the conference!
Distinguished guests!

I cordially welcome you at the capital of Uzbekistan – the city of Tashkent – at the conference dedicated to the problems of the global financial-economic crisis, ways and measures to overcome it in the conditions of Uzbekistan.

At the moment, the global economy experiences one of the most critical stages of its development for over the last decades. The world for the first time came across with the global financial-economic crisis, which has impacted practically all countries.

The Summits of the 20 leading states of the world that took place in November 2008 in Washington and in April 2009 in London have confirmed not only the global scale of the financial-economic crisis, but also the need of the joint search and coordination of the efforts of all countries of the world to address it.

During this process not only the current economic policy is being rethought at many countries, but also on the whole the strategy, concept and principles of reforming and managing the economy.

We must admit that many earlier active principles declared as indisputable truths are now subjected to critical analysis with the search for the new approaches and new decisions being underway.

In the context of such quests, it is being submitted to the discussion of participants of the conference the time-honored model tested in the conditions of Uzbekistan, which embodies, above all, the basic principles on establishing the new socially-oriented market economy in the country, the essence of which lay in the priority of economy over politics, entrusting the state the role of a main reformer, ensuring the rule of law, carrying out the strong social policy and providing for successiveness and consistency of implementing the course of reforms.

These very principles, which had been laid to the foundation of establishing the legislative and institutional systems, have created a reliable barrier and sufficient safety factor to guard against the influence of unmanageable storm and lack of control at the global financial and stock markets, have ensured the sustainable functioning of the financial-economic and banking spheres and the activeness of investment activity.

The dynamic and sustainable growth of Uzbekistan’s economy for over the last years confirms the viability and effectiveness of the model of development we chose. The growth rates of economy for over the last five years alone exceeded on average 8 percent and in the first quarter of 2009 have made up 7,9 percent, and according to the IMF projections on the whole this year the growth rate will account for no less than 7 percent.

The stable and high growth rates of export, investments, surplus of the trade balance, current account, the state budget and the sustainable growth of the official reserves amid moderate level of external borrowings are also characteristic to our economy.

Speaking about the experience of the economic development of Uzbekistan and securing the sustainability in the conditions of the broken out global financial-economic crisis, I would like to note the following conclusions and provisions, which I believe are of an important significance.

First, one should not make a fetish of the market relations, proceeding from the principle that the market (supply and demand) decides everything. The life-long practice has numerously proved that the regulation of economic and financial relations, use of the role of state in choosing the priorities for addressing the extreme situations (if to take into account that the market acts in line with Darwinian principle – the strongest wins), the role of state that represents the interests of majority of population, conducting the strong social policy and long-term national strategy cannot be replaced with anything and anybody.

Second, today it is especially difficult for those countries, which under many circumstances have become during the last 15-20 years the hostages of surge of the world prices for hydrocarbon and on the whole the mineral raw, or as it is said, while not realizing on their own they have found themselves in pervasive dependence on the “price bubbles” artificially fanned by certain speculative circles of the world business.

The problems, which very many countries are experiencing due to the financial and economic global crisis, are now already confirming that, firstly, those countries remain on the win for whom the modernization and diversification of economy, continuous process of renewal of production and introduction of innovative technologies has been and remains a chief priority in the development of the country.

Truly understanding the deep significance of this fact and constant system-based deeply thought-out work to implement this prevailing priority is a key to success at any and most extreme situations.

Third, one of the most important achievements of the G20 meeting in London was that, as we believe, the reasonable approach has prevailed in the discussions, the essence of which could be defined by a simple and comprehensible truth: First one should extinguish the fire brought about by the global financial-economic crisis and only after that establish the models of transition from the obsolete Breton-Wood system and its institutions towards the new financial-banking system, principles of its regulation and adopt the new financial instruments.

Dear participants of the conference!

Allow me express the hope that during the constructive and fruitful discussion at the forum the new ideas and practical ways to overcome the negative consequences of the financial-economic crisis will be proposed, that the results of the conference will allow deepen the vision and comprehension by the international community of the experience of Uzbekistan and other countries, which thanks to consistent and deeply thought-out policy of reforming and modernizing the national economies effectively withstand the challenges brought about by the global financial-economic crisis.

I am confident that the new ideas delivered during the work of the conference will make substantial contribution to the theory and practice of developing and reforming the financial and economic system at the country, regional and global level.

Most Sincerely,

Islam Karimov,
President of the Republic of Uzbekistan