Grup:134 Student: Inatova Zoxida - Agriculture and Natural Resources
- Agriculture and the agroindustrial sector contribute more than 40% to Uzbekistan's GDP. Cotton is Uzbekistan's dominant crop, accounting for roughly 45% of the country's exports (gold is second at 22%). It also produces significant amounts of silk, fruits, and vegetables. Virtually all agriculture involves heavy irrigation. Agricultural workers receive very low wages, because the government uses the difference between the world prices of cotton and wheat and what they pay the farmers to subsidize highly inefficient capital intensive industrial concerns, such as factories producing automobiles, airplanes, and tractors.
Consequently, agricultural productivity is low, with many farmers focusing on producing fruits and vegetables--for which supply and demand determine the price--on small plots of land, as well as smuggling cotton and wheat across the border with Kazakhstan and Kyrgyzstan in order to obtain higher prices. - Consequently, agricultural productivity is low, with many farmers focusing on producing fruits and vegetables--for which supply and demand determine the price--on small plots of land, as well as smuggling cotton and wheat across the border with Kazakhstan and Kyrgyzstan in order to obtain higher prices.
- Minerals and mining also are important to Uzbekistan's economy. Gold is most prominent; Uzbekistan is the world's seventh-largest producer, about 80 tons p.a., and holds the fourth-largest reserves. Uzbekistan has an abundance of natural gas, used both for domestic consumption and export; oil almost sufficient for domestic needs; and Uzbekistan has significant reserves of copper, lead, zinc, tungsten, and uranium. Inefficiency in energy use is extremely high, given the failure to use realistic price signals (tariffs) to cause users to conserve energy and failure of domestic producers and the government to reap potential revenues from the energy sector.
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