State-led cotton deregulation in Uzbekistan: Reforms and effects

Abstract

Uzbekistan’s cotton supply chain experienced a wave of deregulation reforms in the last five years. This paper attempts to assess the process and results of the State-driven transition from the centrally planned cotton sector to private cotton-textile clusters. The article employs secondary data sources to analyse the effects of the deregulation policies descriptively. The study reveals that the deregulation reforms increased productivity in the sector. The reform initiatives also vertically integrated the cotton supply chain from production to marketing. However, the reforms failed to transparently incorporate and harmonise the needs of cotton farmers that grow and sell raw cotton. Consequently, the promises of the State-led deregulation reforms and initiatives are eroded. The article highlights the emerging risks and tensions in the current cotton liberalisation and privatisation reforms in Uzbekistan..