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THE IMPACT OF INTERNATIONAL FINANCIAL ORGANIZATIONS ON
UZBEKISTAN’S INVESTMENT POLICY
Mamatkulova Nadira Makkamovna
associate professor of Tashkent university of architecture and civil engineering
Annotation:
This article examines the role of international financial organizations (IFOs) such
as the International Bank for Reconstruction and Development (IBRD), the International Finance
Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), the Asian
Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the
International Monetary Fund (IMF) in shaping Uzbekistan’s investment policy. The study
analyzes key initiatives including legislative reform, the development of green financing,
infrastructure projects, modernization of the banking sector, and improvement of the investment
climate. It demonstrates how IFOs contribute to modernizing the management of state-owned
enterprises, attracting foreign direct investment, and fostering sustainable economic growth in
the context of global and regional challenges.
Keywords:
international financial organizations, investment policy, Uzbekistan, IFC, EBRD,
IBRD, AIIB, ADB, IMF, sustainable development, foreign investment, green financing,
infrastructure projects, privatization, economic reforms.
In recent years, Uzbekistan’s engagement with international financial organizations (IFOs) has
taken on a more systematic and quantitatively significant nature: IFOs not only advise the
government and finance individual projects but also serve as a source of substantial long-term
capital that transforms the energy, infrastructure, financial, and education sectors. Alongside
technical assistance programs aimed at improving macroeconomic statistics and fiscal
transparency, international banks provide substantial credit lines and guarantees, mobilize private
investors, and facilitate the implementation of major projects through co-financing. This
influence manifests itself both in direct investments and loans, as well as in the indirect
improvement of the investment climate—through legislative initiatives, corporate governance
standards, and the introduction of environmental, social, and governance (ESG) practices. At the
same time, the inflow of foreign direct investment (FDI) into Uzbekistan in 2020–2023 has
shown recovery after the pandemic, partly due to the increased activity of IFOs, which supported
infrastructure and energy projects and eased the entry of private capital into the market. Below
are comparable figures on the financial presence of major international institutions and the
dynamics of FDI, illustrating the scale and channels through which IFOs influence the country’s
investment policy.
An important effect is that IFOs often act as a “catalyst” for private investment: their projects
reduce risks for private lenders, increase transparency, and demonstrate the applicability of new
corporate governance standards, which in turn makes the economy more attractive to
international investors. The growth of FDI in 2021–2022 coincided with the rising activity of
international banks and investment agencies; part of the inflows came through energy and
industrial modernization projects in which the role of IFOs was decisive, providing equity/debt
financing and mobilizing private lenders. The decline in FDI in 2023, according to the Balance
of Payments data (see table), does not negate the substantial volume of investment agreements
and government programs (for example, the National Investment Program 2023–2025, with
projects worth billions of dollars), some of which are being implemented in stages and are
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reflected in statistics later or in other forms (guarantees, credit lines, trade and project
agreements). State and multilateral programs supported by IFOs also contribute to expanding
domestic bank lending and issuing local financing instruments, including green bonds and
syndicated loans, thus increasing financing opportunities for the local private sector.
Despite the clearly positive contribution, the influence of IFOs is not always unambiguous:
requirements for structural reforms and privatization sometimes provoke internal debates about
the social dimension and sustainability of reforms; projects require high institutional readiness to
ensure proper use of funds and avoid implementation delays. Almost all major AIIB, EBRD, IFC,
and World Bank programs over the past three years have included technical assistance
components aimed at improving procurement procedures, corporate governance, and monitoring
environmental and social risks — an important channel through which IFOs transform
investment policy not only in quantitative but also in institutional terms.
International financial organizations play a significant role in shaping and implementing
Uzbekistan’s investment policy, influencing it through strategic consulting, financing, legislative
reform, and infrastructure development. The World Bank supports the country in developing a
long-term strategy for attracting foreign direct investment, targeting an annual inflow of around
USD 5 billion. This work emphasizes privatization, expanding private sector participation,
encouraging innovation, and introducing a green economy. In addition, the Bank has approved
several development operations aimed at accelerating the transition to a market model and
strengthening environmental sustainability, and has also facilitated the adoption of a green
strategic framework within the Ministry of Finance.
The International Monetary Fund exerts its influence through regular consultations and
monitoring of macroeconomic stability. In its recommendations, the IMF emphasizes the need to
increase budget transparency, limit external borrowing, strengthen banking supervision, and
accelerate privatization. It also assists in improving foreign exchange reserve management and
debt policy, including the Central Bank’s participation in international asset management
programs.
The International Finance Corporation focuses on reforming investment legislation, including
investor protection, improving access to international dispute resolution mechanisms, and
encouraging private investment in special economic zones. The IFC made a significant
contribution to the privatization of Ipoteka Bank by providing financing, improving corporate
governance, and attracting a strategic investor.
The Asian Infrastructure Investment Bank and the European Bank for Reconstruction and
Development channel resources into infrastructure modernization, energy sector development,
and the implementation of renewable energy projects. The EBRD also actively invests in green
projects and the support of private businesses, increasing the overall volume of investments in
the country’s economy. The Eurasian Development Bank provides technical and analytical
assistance in preparing investment projects, reducing financial and organizational costs for
Uzbekistan, which has become one of the bank’s major shareholders.
In addition to intergovernmental structures, private international funds are involved in the
country’s investment policy, such as Franklin Templeton, which, through the national investment
fund, is preparing to list state assets worth USD 1.7 billion on international markets. Together,
these initiatives contribute to Uzbekistan’s integration into global economic processes, the
improvement of its investment climate, and the attraction of long-term capital, thereby
strengthening the country’s position on the international stage.
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