<p>Uzbekistan is one of the closest countries to Korea in view of geographical and economic manner. Compared to other CIS countries, Uzbekistan’s economic performance was relatively strong with a modest decline in output by transition economy standards. In the early 1990s, the decline in GDP was estimated to be only half the average of the Baltic states and former Soviet republics. Since 1996 Uzbekistan has experienced steady economic recovery, averaging around 4% of annual growth rate in the following years and 7.7% in 2004. In spite of the above achievements, Uzbekistan is facing challenges that the Uzbekistan government should deal with for a sustainable economic growth and industrial development.</p>
<p>Through the ‘knowledge sharing project with the Republic of Uzbekistan, the Korean government has engaged in collaboration with the Uzbek government by offering policy guidance for strategies of developing the manufacturing sector and export promotion in Uzbekistan. With support from the Ministry of Finance and Economy of the Republic of Korea, Korea Development Institute (KDI) has conducted a research work in cooperation with the Center for Effective Economic Policy (hereafter CEEP) of the Ministry of Economy of Uzbekistan.</p>