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ADB highlights four key areas that can help Uzbekistan to recover its economy

Business Materials 3 August 2020 12:45 (UTC +04:00)
ADB highlights four key areas that can help Uzbekistan to recover its economy

BAKU, Azerbaijan, Aug. 3

By Ilkin Seyfaddini - Trend:

Revitalizing four key areas can help Uzbekistan and other Central Asian countries to find a path to economic recovery after pandemic, Trend reports with the reference to insights of Asian Development Bank (ADB) Vice President Shixin Chen.

“First, the countries should revitalize the health sector. Due to the lack of long overdue investment, there is a significant gap not only in hospital infrastructure, but also at the primary care level including human resources necessary to staff effective health systems. In response to the pandemic, Uzbekistan has made record investments in strengthening the health sector. There is also a sizable gap in health-related sectors such as pharmaceuticals and health insurance,” Shixin Chen said.

According to Shixin Chen, the health sector has huge growth potential.

“Second, [it is needed to] revitalize the social protection sector which remains fragile and underfunded in developing Asia. In response to COVID-19, great efforts have been made to ensure that affected populations are covered by social safety nets,” Shixin Chen said.

According to Shixin Chen, more than $70 million has been allocated to expand the social safety net for the poor and vulnerable, in Uzbekistan. Yet, social protection schemes require long-term efforts to develop, including establishing disaggregated databases, registration and monitoring systems, and strong budget support. The development of the social security sector will help promote economic inclusion and sustainable growth.

"Third, revitalize digital technology. Web-based collaboration and sharing platforms have been widely recognized for their effectiveness in facilitating remote collaboration and co-working, while webinars are successfully replacing physical seminars,” Shixin Chen said.

Shixin Chen believes that strategically developing digital technology will have a huge impact on the quality of growth.

“Fourth, revitalize the global supply chain. During the great lockdown, the global supply chain virtually came to a standstill, resulting in incalculable job losses and economic damage around the world. Uzbekistan were largely suspended due to the interruption of raw materials supply,” Shixin Chen said.

According to Shixin Chen, the pandemic has highlighted the need for urgent reform of the global supply chain.

“The Central Asian countries must pursue high-level multimodal transport, more effective trade facilitation, and stronger trade and supply chain financing mechanisms. In addition, further enhancing the international network of global supply chains, including redistribution of the subsidiaries of major suppliers, will help to ensure that goods continue to flow in the face of disruptions,” Shixin Chen said.

Shixin Chen believes that the global supply chain is the main artery of the world economy and its smooth flow is the basis of economic recovery.

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