Development Strategy Center
We support the Center to bring evidence of local social and environmental impacts to the economic reform agenda
The Partner
The Development Strategy Center (DSC) is a think tank established in February 2017 to conduct research to inform and coordinate the implementation of Uzbekistan’s National Action Strategy 2017-2021. The DSC plays a policy advisor role and has a convening power to engage different stakeholders into dialogues regarding the democratisation and modernisation of the country.
The National Action Strategy is part of a set of ambitious reforms being pursued by President Shavkat Mirziyoyev that include enacting laws to fight corruption, liberalising the currency market and improving the investment climate in Uzbekistan. While these reforms have the potential to drive positive economic and social transformation in Uzbekistan, they also carry significant risks, for example of excluding parts of society from these benefits and thereby increasing inequality and exacerbating ethnic tensions.
Our Support
PeaceNexus received a request from the DSC to help the centre explore how Free Economic Zones (FEZs) could contribute to economic and social transformation in a sustainable way, and without creating the problems that have been observed in FEZs elsewhere.
In 2018 PeaceNexus supported the DSC to design and conduct Participatory Action Research on FEZs, which helped:
- Uzbek authorities understand the contexts in which the FEZs are located
- Consider not only economic aspects but also ecological and social implications of FEZs
- Identify key legislative and policy gaps that could increase the risks related to FEZs
- Sensitise businesses investing in the FEZs for social and environmental impact their activities may have
- Explore options for Uzbek FEZs to contribute more sustainably to social as well as economic development
The Results
Through our support, the DSC developed together with an international consulting company a participatory research methodology which allowed to conduct research in the two FEZs of Angren and Navoi. The jointly developed research process enabled several public discussions of the key findings, which has set a new standard for inclusive dialogue in Uzbekistan.
Through a bottom up approach which included interviews with different stakeholders, the study revealed critical findings which were taken into account by the government and prompted important follow up actions.
The research findings and recommendations informed two official documents: the Decree of the President, “On measures to improve the management and coordination of FEZ,” adopted in December 2018, as well as the Decree of Government on FEZ which simultaneously attracts foreign investors and strengthens the management systems of existing FEZs in order to reduce corruption risks.
The decrees also lay the foundation for more inclusion by taking into account the interest of local communities through the participation in the selection and approval process of new investment projects.
