By Daniel Hayward, reviewed by Brent Hierman, Department of International Studies & Political Science, Virginia Military Institute
24 June 2021
The Republic of Uzbekistan is a doubly landlocked country. It is completely surrounded by other landlocked countries, namely Kazakhstan, Tajikistan, Kyrgyzstan, Afghanistan and Turkmenistan1. 80% of land consists of plains, deserts and lowland areas, primarily found in the west. Mountains and foothills comprise the rest of the country in the south and south-east2. The total land area is 447,400km2 3. Since 2019, there are over 33.5 million people, representing around 45% of the total population in Central Asia4. The majority of these people are Uzbek (over 80%), and there are also significant numbers of Russians, Tajiks, Kazaks, Karakalpaks (an autonomous republic within the country) and Tatars5. Uzbekistan is formally a secular state.
Water scarcity threatens production needs, and the country is witness to one of the world’s most severe ecological disasters, namely the drying of the Aral Sea
Ghost ships at the former shore of the Aral Sea in Moynaq, Uzbekistan, photo by Sebastian Kluger, CC Attribution-Share Alike 3.0 Unported license.
The country gained independence from Soviet rule in 1991. However, the subsequent transformation of the economy has been a gradual process6. Classified as a lower middle-income nation at independence, Uzbekistan was momentarily reclassified as a lower income country at the end of the 1990s7. Growth improved in the following decade, at an average of 8.2% per year from 2005-2015. Despite having significant mineral and fossil fuel resources, agriculture remains a major sector, based on cotton and wheat produced for export8. In spite of de-collectivisation, until recently all land remained owned by the state.
In 2016, the first post-independence president, Islam Karimov, died9. Karimov controlled an autocratic system that closely mirrored Soviet-style governance. The election of his successor, Shavkat Mirziyoyev, acts as a clear marker to the end of the post-Soviet transition. The new president has embarked on extensive reform through nearly all spheres of life. The ‘Five Point Development Strategy Plan of Uzbekistan for 2017-2021’ prioritises reform related to economic liberalisation, social protections, national security, foreign policy, and the judicial system10. Reforms in agriculture and land are geared to improve productivity and investor confidence. Adopted in 2019, the Law on Privatisation of Non-Agricultural Plots paves the way for the privatisation of plots with or for residential and industrial construction. A new presidential election is planned for 2021.
Land legislation and regulations
Unlike other Central Asian countries, like Kyrgyzstan, Kazakhstan, and Turkmenistan, the Uzbekistan state retained strong control of land in the post-Soviet era, similar in appearance to the previous system11. Uzbek agriculture remained dominated by large-scale collective and state farms until the end of 1990s12. The process in this period is seen as destatisation, shifting towards private agricultural enterprises rather than changing land ownership13.
The 1992 Constitution stipulates that everyone has the right to own property, but the document does not specify on land ownership. Such a specification is found in the 1990 Property Law, which defines all land as fundamentally belonging to the state. The official reasoning for this approach was to ensure food security, social cohesion, and maintain a vital state-run irrigation system rather than risk a break-down in the system through land privatisation14.
In 1997-8, a set of new laws attempted more comprehensive agricultural reform, opening the state to private farmers and increased provision of leaseholds. The 1998 Land Code reaffirmed state ownership of land, clarifying that state land cannot be sold, exchanged, donated or mortgaged, except where allowed under national legislation15. The code gives details on different types of leaseholds, and recognises three types of farms, namely dehkan (household), private (commercial enterprises), and shirkats (agricultural cooperatives)16. All three farming types received their own laws (see tenure section). In principle the laws gave greater freedom to smallholders over the means of production, but in actuality the state retained much control, particularly for large-scale cultivation of wheat and cotton17.
Under Islam Karimov, the only means of land privatisation involved cases where trade and services facilities were deemed inseparable from the land upon which they sat18. Therefore, the enterprise and plot were privatised as one package. It is also possible for foreign diplomatic missions and international organisations to access private land. However, after the change of presidency in 2016, numerous new laws, presidential decrees and resolutions were promulgated19. In August 2019, the Law on Privatisation of Non-Agricultural Plots was adopted, coming into force in March 2020. The law transfers land rights to citizens and legal entities, focussing on plots containing (under a clear cadastral record) residential, commercial and industrial buildings and facilities, or intended for these purposes20.
Land tenure classifications
With the privatisation of non-agricultural plots a new development in Uzbekistan, most land is held under different types of leaseholds. This is seen in an analysis of agricultural reform in the country. Farming under Soviet rule was based on a dual system, with large collective and state farms nexxt to quasi-private household farming plots21. Following independence, the state introduced long-term leaseholds for farming enterprises22. After a period of relative inaction up the late 1990s, land became fragmented as state farms were broken up and downsized. After 2008, land was then consolidated once more in an attempt to improve productivity and efficiency23.
There are three types of farms, incorporating different types of leaseholds24:
- Dehkan – heritable household farms that are on small plots. They are on average around 0.17 hectares in size, and cannot be larger than 0.35 hectares if irrigated or 1 hectare if not25. Farmers here can choose what to produce and sell.
- Private farms – enterprises here are legal entities who can obtain a land use lease of 30-50 years. They contribute all cotton and most wheat production in Uzbekistan.
- Shirkat farms – former state farms (kolkhoz) which have been reorganised into cooperatives. They now carry little significance in the farming sector.
In the early 2000s, there was an expansion in the number of private farms, with 55,400 by 2002 covering 2.9 million hectares, and then 235,000 by 2008 covering 5.8 million hectares26. As a point of governmental focus in this period, many shirkats were converted into private farms. However, in the post-2008 drive for efficiency, land was consolidated under productive enterprises27. As a result, the number of private farms dropped to 132,356 by 201728. In January 2019, a new cabinet resolution called for further restructuring of the agricultural sector, aiming to double the size of cotton and wheat farms to an average of 100 hectares29. Until recently, these two main crops were subject to state orders. However, since a presidential decree on January 28th 2020, the state has been shifting from state orders on grains to market rules in the agricultural sector, hoping to reduce inefficiency and corruption. In March 2020, quotas on cotton were cancelled altogether, giving farmers the flexibility to plant other cash crops. Overall, the struggle in Uzbekistan continues to find a successful post-Soviet agricultural model.
The State Committee on Land Resources, Geodesy, Cartography and State Cadastre (Goskomzemgeodezkadastr) is a key government body responsible for land use policy, which has unified 20 State Cadastres30. There are four registers, namely for land, residential buildings, non-residential buildings, and mortgages. These are managed through different agencies, which then report to the Goskomzemgeodezkadastr. Housing, particularly in urban areas, is mostly privately owned. The land parcel itself is ‘permanently’ leased, although this will change under the new law to privatise non-agricultural plots. Around 70% of all dwellings are detached houses, and there is a dearth of social housing to support low-income households. Uzbekistan has a highly centralised urban planning system, inherited from Soviet rule.
Tamdybulaq, Uzbekistan, photo by karb, CC 3.0 Unported license
Land use trends
According to figures from FAOSTAT, 58% of the total land area in Uzbekistan was classed as agricultural in 2018, with over 82% of that proportion under permanent meadows or pasture. There is little forest cover, taking up 8.3% of total land in 2018, a small increase from 6.2% in 199231. The country has long been reliant on its agricultural sector, which employs over a quarter of the workforce and provides around 18% of GDP32. However, many agricultural jobs are informal and so may not be accounted for in official figures33. Capital-generating agriculture focusses on cotton and wheat. Cotton production became a priority during collectivisation under Soviet policy, and Uzbekistan was at one point the world’s largest exporter of the crop34. However, following independence the country aims for greater self-sufficiency in agricultural production, through diversification, import substitution, and so a move away from a dependence on cotton. The focus often lies with private farms, so that smallholders suffer from lack of access to government support, for example leading to higher input costs35. The Agricultural Strategy 2020-30 aims to improve land rights and access to credit for smallholder farmers36.
Over the last decade just over half of the population has been residing in urban areas. According to the World Urbanisation Prospects 2018, this proportion will slowly grow, surpassing 60% by 205037. Yet despite being rich in mineral sources (including gold, lead, and copper), and with significant reserves in oil and natural gas, Uzbekistan remains a predominantly agrarian society38. Food security remains a concern. Water scarcity threatens production needs, and the country is witness to one of the world’s most severe ecological disasters, namely the drying of the Aral Sea39. Uzbekistan has the largest area of irrigated land in the region. Over half of this area has become degraded through salinisation, mostly attributed to mismanagement40. There is also evidence of soil erosion and desertification, with overgrazing and climate change seen as significant causes41.
Cotton field in Tashkent region, Uzbekistan, photo by Shuhrat Ahmedov, CC 3.0 Unported licence
Land investments
Uzbekistan has demonstrated a strong economic performance in recent years, from 2005-2015 maintaining an average growth rate of 8.2% per year42. However, there has been a negative impact of slowed global growth, particularly from Russia and China43. Economic development has further been limited due to monopolised access to resources by a few select companies, limited competition, and foreign exchange controls44. State land ownership can be seen as a hindrance here, where a lack of ability to transfer or mortgage land leases makes farming only quasi-private45. There is no functioning land market with which to create adaptability and aid production output and efficiency. A process of land consolidation has not instilled trust in farmers, who perceive land being retaken for state purposes. As a largely authoritarian state since independence, there is little means for land users to question acquisitions, such as in the post-2008 reform period of consolidation46.
Placing high priority on agriculture and rural development, Uzbekistan is undergoing reform to move from a state-led to market-oriented agriculture47. Post-2016 reforms aim for a large-scale transformation, to liberalise the economy and unlock investment potential. The first legal enactment by the new president was a law on corruption48. There are new means to speed up land allocation for commercial ventures, with a reduction of tariff burdens. Regional authorities in Uzbekistan are being increasingly involved to help provide land to foreign investors. There are now 22 Free Economic Zones (FEZs), first started in 2008 and including 15 new zones set up between 2017 and 2019. They are classified to attract foreign investment in industry, pharmaceuticals, agriculture, and tourism49. In May 2019, the whole of Navoi, the largest region in the country, was declared an FEZ. This opens potential to increase investment for mining in a mineral-rich area of the country50.
Uzbekistan has also been singled out by human rights campaigners for forced labour in the cotton sector51. In an attempt to eradicate abuses, the Mirziyoyev government has initiated a vertically-integrated cluster system in a rapid privatisation of the sector. It is hoped that this will wipe out the drivers of forced labour and attract foreign investment. As of February 2021, 96 clusters had been approved by the government, covering a cotton cultivation area of nearly one million hectares52.
Women’s land rights
Gender equality is formally established in Uzbek law, with Article 46 of the constitution stating that men and women have equal rights. The Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) was adopted on 18th December 1979. Yet formal stipulations do not match practices on the ground. Indeed, independence saw a surge in cultural stereotypes, where emphasis is placed on a patrilineal kinship structure, to the detriment of women and their ability to hold positions of power and responsibility53. They have limited access to higher education and a limited status in the labour force54. Women lack access to financial resources, and there is a high gender wage gap. Since 2018 there is draft legislation to prevent domestic violence and counter sexual discrimination, but progress to promulgation is slow55.
Women play a significant role in agriculture. However, they are overrepresented in informal agricultural work without any legal or welfare protections, and little opportunity to access credit and financing56. They have been excluded from the benefits of agricultural reform programmes57. In 2013, they made up only 4.1% of heads of private farming enterprises, although there was a disproportionately high percentage of female heads in Khorezm region (17.7%) compared to the rest of the country58. Shirkat restructuring has not favoured women, leading to loss of employment for many who then rely on unpaid household farming. However, the AgriculturalStrategy 2020-30 targets women and youth-led enterprises as part of an aim to stimulate rural development and food security goals59. There is an aim to establish a gender strategy for agricultural development.
Women have equal rights to control and use land under law, but in practice they are rarely the registered land use rights holder60. Due to the patrilineal kinship structure, any heritable rights are generally passed down to sons. Married women normally reside with their husband, thereby relinquishing their own family rights to their brothers, and are unlikely to regain them in the case of a divorce.
The Women’s Committee of Uzbekistan was set up in 1991 to protect the rights of women around the country, working both within and outside of government61. A Gender in Development (GID) Unit was set up in 1997 to support national capacity building, later making way for gender departments within each ministry. There is a quota of 30% women in the parliament, but the civil service and Mahalla (neighbourhood) committees remains dominated by men62. In 2020, the Women’s Committee was abolished, making way for the new Mahalla (neighbourhood) and Family Support Ministry63.
Voluntary Guidelines on Responsible Tenure (VGGT)
Since the initial launch of the VGGT in 2012, a series of awareness-raising workshops have been held around Central Asia. This includes a workshop held in Budapest in December 2016, and organised by FAO REU (FAO Regional Office for Europe and Central Asia) together with colleagues from central headquarters in Rome.
FAO is heavily involved with the World Bank-funded Modernization of the Real Property Registration and Cadastre project in Uzbekistan, supporting implementation by the regional investment centre (CFIC), and running from 2016-21. As with all their tenure work, the VGGT is used as a standard point of reference. In 2021 FAO commences with new projects in Central Asia supporting the implementation of VGGT. In Uzbekistan, they will be part of a Turkish funded land banking project, assessing land tenure and land administration system with a focus on the development of an agricultural land market.
Samarkand, Uzbekistan, photo by Henrik Berger Jørgensen, CC 2.0 license
Timeline - milestones in land governance
1990 – Property Law promulgated
All land defined as fundamentally belonging to the state.
1991 – Independence from Soviet rule
1992 – Constitution adopted
Everyone has the right to own property, although the document does not specify on land ownership.
1998 – Land Code promulgated
Clarifies state ownership of land, and gives details on different types of leaseholds.
2008 – Reform to consolidate farmland
Particularly focussing on private farms, this approach follows a period of fragmentation.
2013 – Women make up only 4.1% of heads of private farming enterprises
2016 – Shavkat Mirziyoyev becomes president
This follows the death of the first post-independence president, Islam Karimov.
2017-2019 – 15 new Free Economic Zones (FEZs) are established
There are now 22 FEZs in total, including mineral-rich Navoi, the largest region in the country.
2019 – Adoption of the Law on Privatisation of Non-Agricultural Plots
The law paves the way for land privatisation of plots with residential and industrial purposes.
2020 – Transition from state orders on wheat and cotton to market mechanisms
Quotas on cotton were cancelled and wheat orders reduced in new presidential decrees.
Where to go next?
The author’s suggestion for further reading
There are many studies looking at reform in the agricultural sector since independence in Uzbekistan. Djanibekov et al. provide an important analysis of different periods of reform, moving through inertia to fragmentation, and then consolidation of agricultural land64. Melnikovová and Havrland look at the tenure system, in the context of looking at the effectiveness of state ownership of land65. For a view of the housing and land management system in Uzbekistan, the reader is advised to consult a country profile by UNECE (United Nations Economic Commission For Europe)66. Finally, a recent World Bank report maps out some of the latest changes under the new presidency of Shavkat Mirziyoyev67.
***References
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[46] RFE/RL. (2008, November 14). Uzbekistan’s Small Farmers Unhappy With Land Reforms. RadioFreeEurope/RadioLiberty. https://www.rferl.org/a/Uzbekistans_Small_Farmers_Unhappy_With_Land_Reforms/1349325.html
[47] Kovach, H. (2020). External finance for rural development. Country case study: Uzbekistan. Overseas Development Institute (ODI). https://landportal.org/library/resources/external-finance-rural-development
[48] Bertelsmann Stiftung. (2020). BTI 2020 Country Report Uzbekistan. Bertelsmann Stiftung. https://landportal.org/library/resources/bti-2020-country-report-uzbekistan
[49] Investment Promotion Agency. (2021). FEZ and SIZ. Investment Portal of Uzbekistan. https://invest.gov.uz/investor/sez-i-mpz/
[50] Dentons. (2019, May 28). Uzbekistan has declared its largest region a free economic zone. Dentons. https://www.dentons.com/en/insights/alerts/2019/may/28/uzbekistan-has-declared-its-largest-region-a-free-economic-zone
[51] Lasslett, K., and Uzbek Forum for Human Rights. (2020). Out of the Cauldron, Into the Fire? Risk and the Privatisation of Uzbekistan’s Cotton Sector. Newtownabbey: UzInvestigations. https://landportal.org/library/resources/power-briefs-no-2/out-cauldron-fire
[52] Schweisfurth, L. (2021, February 19). Land-Grabs - the New Red Flag for Uzbek Cotton Sector. Apparel Insider. https://landportal.org/blog-post/2021/05/land-grabs-%E2%80%93-new-red-flag-uzbek-cotton-sector
[53] FAO. (2020). Gender and Land Rights Database Country Profiles. Food and Agriculture Organization of the United Nations. http://www.fao.org/gender-landrights-database/country-profiles/en/
[54] FAO. (2019). Gender, agriculture and rural development in Uzbekistan. Food and Agriculture Organisation of the United Nations. https://landportal.org/library/resources/isbn-978-92-5-131458-6/gender-agriculture-and-rural-development-uzbekistan
[55] Solod, D. (2019, July 4). In Uzbekistan, women’s rights are changing—But not fast enough. OpenDemocracy. https://www.opendemocracy.net/en/odr/uzbekistan-gender-ineaulity-violence-en/
[56] ibid
[57] Azizova, N., Tursunova, Z., & Azizova, L. (2017). Social Policy and Empowerment of Women in the Agricultural Sector in Uzbekistan. 44, 29–35. https://landportal.org/library/resources/social-policy-and-empowerment-women-agricultural-sector-uzbekistan
[58] FAO. (2019). Gender, agriculture and rural development in Uzbekistan. Food and Agriculture Organisation of the United Nations. https://landportal.org/library/resources/isbn-978-92-5-131458-6/gender-agriculture-and-rural-development-uzbekistan
[59] Kovach, H. (2020). External finance for rural development. Country case study: Uzbekistan. Overseas Development Institute (ODI). https://landportal.org/library/resources/external-finance-rural-development
[60] FAO. (2019). Gender, agriculture and rural development in Uzbekistan. Food and Agriculture Organisation of the United Nations. https://landportal.org/library/resources/isbn-978-92-5-131458-6/gender-agriculture-and-rural-development-uzbekistan
[61] FAO. (2020). Gender and Land Rights Database Country Profiles. Food and Agriculture Organization of the United Nations. http://www.fao.org/gender-landrights-database/country-profiles/en/
[62] Bertelsmann Stiftung. (2020). BTI 2020 Country Report Uzbekistan. Bertelsmann Stiftung. https://landportal.org/library/resources/bti-2020-country-report-uzbekistan
[63]Samarkand regional government. (2020, February 24). A new ministry was established. The Women’s committee and the Neighborhood council were abolished. Samarkand Regional Government. https://samarkand.uz/en/press/news/yangi-vazirlik-tashkil-etildi-xotin-qizlar-qomitasi-va-mahalla-kengashi-tugatildi
[64] Djanibekov, N., Assche, K. van, Bobojonov, I., & Lamers, J. P. A. (2012). Farm Restructuring and Land Consolidation in Uzbekistan: New Farms with Old Barriers. Europe-Asia Studies, 64(6), 1101–1126. https://landportal.org/library/resources/issn-0966-8136-print-issn-1465-3427-online12061101-26/farm-restructuring-and-land
[65] Melnikovová, L., & Havrland, B. (2016). State Ownership of Land in Uzbekistan – an Impediment to Further Agricultural Growth? Agricultura Tropica et Subtropica, 49(1–4), 5–11. https://landportal.org/library/resources/doi-101515ats-2016-0001/state-ownership-land-uzbekistan-%E2%80%93-impediment-further
[66] UNECE. (2015). Country Profiles on Housing and Land Management: Uzbekistan. United Nations Economic Commission for Europe. https://landportal.org/library/resources/ecehbp185-eisbn-978-92-057840-0/country-profiles-housing-and-land-management
[67] Zorya, S., Djanibekov, N., & Petrick, M. (2019). Farm Restructuring in Uzbekistan: How Did It Go and What is Next? World Bank Group. https://landportal.org/library/resources/farm-restructuring-uzbekistan-how-did-it-go-and-what-next