World Bank Document

11. 
Second-generation agricultural reforms need to focus on factor market efficiency and public institutions in order 
to accelerate growth in agriculture in general and horticulture in particular. This was concurred by the recently adopted 
Strategy for Agricultural Development 2020-2030 (hereafter Agricultural Strategy)
21
. Farmland tenure insecurity and lack 
of a formal land rental market remain significant challenges in the medium to long-term. In addition, the lack of a 
functioning financial sector and the resultant narrow availability of tailored financial products with collateral 
requirements deemed suitable for farmers and exporters are among the most significant short-term factors limiting the 
generation of quick and inclusive wins from the agriculture sector. Human capital in agriculture and technology 
generation and adoption also remain low, due to significant underinvestment in agricultural research and development 
(R&D) and extension/advisory services that are proven globally to drive long-term agricultural growth
22
. Uzbekistan’s 
public investments in agricultural R&D in 2016-2018 averaged 0.02 percent of agricultural value added vis-à-vis the 
average of 1.0 percent in middle-income countries and 2.5 percent in high income countries
23
. In fact, most agricultural 
public goods in Uzbekistan remain severely underfinanced, limiting the growth in agricultural productivity and export. In 
17
WB report. 2019. China/Russia 2030 – Opportunities for Central Asia’s Agriculture. Washington, D.C. 
18
Shifting land to horticulture was one of the prior actions of WB’s first DPO approved in June 2018. In 2015, the cotton sowing area was 1.3 million 
ha, and in 2019 it declined to 1.0 million ha. The wheat sowing area declined from 1.4 million ha in 2015 to 1.3 million in 2019. 
19
In 2018, the US State Department removed Uzbekistan from the list of countries with systematic child labor in cotton harvesting.
20
The International Labor Organization estimated the forced labor to decline to 7 percent in 2018, from 14 percent in 2015 and 13 percent in 2017, 
attributing it to higher wages for cotton pickers, and strong commitment with clear communication from GOU to eradicate the forced labor (2019).
21
Decree of the President of Uzbekistan No. 5853 “On Approval of the Strategy of Agricultural Development of the Republic of Uzbekistan 2020-
2030” dated October 23, 2019.
22
WB report. 2019. Harvesting Prosperity: Technology and Productivity Growth in Agriculture calls for renewed focus on innovations through 
modernizing the agricultural R&D system to drive future agricultural productivity growth, which is key for poverty alleviation.
23
WB report. 2019. Agriculture Public Expenditure Review for Uzbekistan. Washington, D.C.

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