Uzbekistan: Advancing Uzbekistan Economic and Social Transformation Development Policy Operation

approved

The Operation is proposed to be supported under the COVID-19 Crisis Recovery Facility (the Facility) of the Bank and co-financed with the World Bank (WB) under the WB's Policy on Development Policy Financing (DPF). The Operation is to support Uzbekistan in sustaining the inclusive market transition through reforms in the privatization, insolvency and competition legislations, telecom and non-bank financial sectors, SOE governance, fiscal transparency, and social protection. The reforms to be supported under this Operation are organized under the following three pillars: (1) strengthening market institutions and the environment for private sector growth, (2) Improving state-owned enterprise management, and (3) Increasing social inclusion and resilience. The Operation will help the Government of Uzbekistan (GoU) establish robust legal frameworks for privatization, competition, and insolvency, increase private sector participation, deepen non-bank financial markets, reduce fiscal risks, and improve the effectiveness and efficiency of the social protection system that was greatly expanded as part of COVID-19 response measures.