On the surface, recent economic statistics for Uzbekistan are positive. The country s Gross Domestic Product rose 4.4 percent in 1999. Nevertheless, all sectors of the Uzbek economy are grappling to adapt to market conditions, and millions of citizens wage a constant struggle to stay above the poverty line. In addition, socio-political conditions in Uzbekistan are unstable, especially in the overcrowded Ferghana Valley. The government has reacted to growing social tension by cracking down against Islamic radicalism.
Many observers contend, however, that the state s campaign is fueling instability.
The state retains a high degree of involvement in the Uzbek economy, and heavy government regulation has served to diminish the country s attractiveness to foreign investors. US officials and business executives attending the conference affirmed that Uzbekistan offered significant investment opportunities. Some pointed the cotton sector, others the oil and gas sector. But, Jan Kalicki, a counselor at the US Department of Commerce, described Uzbekistan s investment climate as stagnant. He cited existing currency restrictions as a major obstacle.