UZBEKISTAN:

EBRD issues Uzbekistan with reform ultimatum

The European Bank for Reconstruction and Development yesterday attacked political and economic conditions in Uzbekistan, the country which will host the bank's annual meeting in May.

It warned that unless it saw an improvement in a year it would have little scope to continue lending to the country.

In its latest review of Uzbekistan, the bank raises concerns over human rights abuses, arbitrary arrest and torture, and pervasive corruption. It says the economy remains closed to competition, with a high degree of state control.

The EBRD, which was set up to help former Soviet bloc countries make the transition to market-based democracies, is demanding reforms.

"The first clear message is that Uzbekistan's ability to grow its economy and reduce poverty will be directly dependent on progress on the political front and economic reforms," the EBRD president, Jean Lemierre, said.

The decision to hold the annual meeting in Tashkent has been controversial. The bank believes that the move will give it increased leverage with the Uzbekistan government to improve political and economic conditions in a country it regards ascrucial in the development of trade within the central Asia region.

In its report, the bank says the September 11 terrorist attacks in the US resulted in the international community renewing its interest in central Asia. "This focal position presented a good opportunity for the country to accelerate political and economic reforms which the government has so far failed to use effectively."

It acknowledges that some progress has been made with the government abolishing censorship, allowing the registration of human rights groups and jailing officials found guilty of using torture. There have also been changes to the law aimed at reducing the number of cases leading to the death penalty.

It warns: "There are serious concerns regarding the development of genuine multi-party democracy and pluralistic society and the situation with the rule of law and respect for human rights remains difficult."

On the economic front, it said living standards had not improved over the last two years and criticised new trade barriers and the decision to close its borders with some of its neighbours.

The bank said it wanted to see greater press freedom, an opening of the political process, improved human rights, moves towards greater competition within the economy, abolition of subsidies and reform of the financial sector.

(source: The Guardian)/halperin