An Economic Miracle in the Post-Soviet Space HOW UZBEKISTAN MANAGED TO ACHIEVE WHAT NO OTHER POST-SOVIET STATE HAS

Uzbekistan is not usually considered an economic success story, but in fact it is: its
GDP increased since 1989 more than in any other post-communist country, except for
China, Vietnam and Turkmenistan. The success of Uzbekistan is very much similar to
the Chinese – gradual economic reforms with the preservation of the capacity of state
institutions, good macroeconomic policy and export oriented industrial policy. What
makes Uzbekistan unique is that no other former Soviet republic managed to follow this
route. There are countries with healthy state finances and low inflation (most FSU
states), there are some countries with reasonable state capacity (Baltics, Belarus,
Azerbaijan, Turkmenistan, Kazakhstan), but there are no countries that keep
undervalued exchange rate together with strong tax stimuli for export of manufactures.
Uzbek example shows that such a policy pays off.