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SUNSHINE COALITION

TERMS OF REFERENCE FOR

ECONOMIC ADVISORY COUNCIL

Background

The Sunshine Coalition is sponsoring the development of a set of policy directives under the working name of “The Road Map to Prosperity.” The Road Map will serve as the action plan for a Government of National Unity (GNU) empowered to jump-start Uzbekistan’s economy. The general principals of the Road Map
include:

• Policy objective No. 1 is improving the quality of life in Uzbekistan’s countryside.
• The cotton monopoly and other similar administrative controls cause rural poverty.
• Private enterprise is Uzbekistan’s best job provider.
• The cure for government corruption = regulatory relief + tariff and tax reduction.
• A workable stabilization and growth policy will require effective support from the international financial community.

Terms of Reference

The Economic Advisory Council will provide the Sunshine Coalition with the outlines of a comprehensive reform program that will effectively stimulate domestic economic growth while maintaining the support of the international financial community. No options are to be considered off the table, so long as the majority of Uzbekistan’s citizens and the international financial community can support the resulting comprehensive plan. In formulating their recommendations, the Council is directed to:

A. Make maximum use of existing policy analysis, recommendations, white papers and other resources available through US and other governmental and nongovernmental agencies, international lending and development agencies;

B. Also accept and consider input from the broadest possible cross-section of individuals, groups, businesses, governmental and non-governmental agencies dedicated to improving Uzbekistan’s future;

C. Be mindful that the reform program’s implementation must be politically feasible.

Policy Recommendations

The Reform Program Recommendation should include specific recommendations addressing each major category outlined below. Recommendations should be prioritized and include a summary cost / benefit analysis (or other suitable analysis tool) for use by the Coalition in evaluating the proposed policy recommendation.

1) Agricultural Reform

a) Sources of finance for agricultural reform.
b) Land reform and de-monopolization.
c) Agricultural finance schemes.
d) Farmer assistance programs.
e) Other agricultural reforms.

2) Industrial and Trade Reform

a) The reform of the mineral resource sector and the State’s role in it.
b) SME development
c) International trade and tariff policies.
d) Other.

3) Social sphere

a) Sources of finance for social sphere reforms.
b) Education and child care.
c) Medical and other social services.
d) Other.

4) Macro-economic Stabilization

a) A critical overview of current fiscal and monetary policies.
b) An analysis of the GOU’s and the state banking system’s liquidity position.
c) Realistic growth, government revenue and expenditure estimates.
d) Top level reform budget guidelines.
e) Sources and uses of “stabilization fund”.
f) Policy recommendation for financial and banking reforms.

Report Delivery

A Final Recommendations Report is expected within 90 days of the Council’s first meeting. Recommendations are expected to be succinct and written in easily understandable, standard English. Each specific recommendation will also reference the source documentation used in its development. In addition to a final report, members of the Council may find it expedient to provide the Coalition with interim reports for feedback on draft recommendations.

 

 

Highlights of Sunshine Uzbekistan's Reform Agenda

Almost all of Uzbekistan's economy is still subject to Soviet-style control by corrupt government bureaucracies. As a result, the citizens of Uzbekistan have never been free to develop their country's rich agricultural and natural resources. Rather, Uzbekistan's current economic system has driven its citizens to despair for the future. Sunshine Uzbekistan is committed to implementing liberal, free-market economic reforms that will provide Uzbekistan citizens with the ability support their families and build a better future.

Agricultural Reforms

Uzbekistan is primarily an agrarian nation with over 80% of the population dependant on farming. As a result, Sunshine Uzbekistan's reform program emphasizes immediate and practical reforms to stimulate economic growth in Uzbekistan's countryside. Reforms include:

Industrial and Trade Reforms

Uzbekistan is blessed with abundant natural resources, including gold, uranium, cooper,oil and gas, which are now controlled by corrupt government bureaucracies for the benefit of a chosen few. Sunshine Uzbekistan's industrial reform program embraces private enterprise and envisions the rapid and transparent privatization of all sectors of industry. Similarly, Sunshine Uzbekistan's reform program will radically liberalize domestic and international trade by eliminating tariff and other administrative restrictions that serve only to feed corruption and starve citizens.

Macroeconomic Reforms

Uzbekistan's Government finances and its state-owned banking system are on the verge of collapse. Years of disastrous economic policy have created mountains of bad debt that have crippled the economy. Economic stagnation has, in turn, aggravated the Government's dismal financial position. Rather than undertaking cardinal macro-economic reforms necessary to fundamentally improve its financial position, the Government has responded with ever more onerous taxes and regulations that are killing private business. Sunshine Uzbekistan's reform program will revive Uzbekistan's economy through the implementation of sound, growth oriented macro-economic policies that will revive private business and restore financial stability.

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