Russia conquered Uzbekistan in the late 19th century. Stiff resistance to the Red Army after World War I was eventually suppressed and a socialist republic set up in 1924. During the Soviet era, intensive production of "white gold" (cotton) and grain led to overuse of agrochemicals and the depletion of water supplies, which have left the land poisoned and the Aral Sea and certain rivers half dry. Independent since 1991, the country seeks to gradually lessen its dependence on agriculture while developing its mineral and petroleum reserves. Current concerns include terrorism by Islamic militants, economic stagnation, and the curtailment of human rights and democratization.
chief of state: President Islom KARIMOV (since 24 March 1990, when he was elected president by the then Supreme Soviet)
head of government: Prime Minister Shavkat MIRZIYOYEV (since 11 December 2003); First Deputy Prime Minister Rustam AZIMOV (since 2 January 2008)
cabinet: Cabinet of Ministers appointed by the president with approval of the Supreme Assembly
elections: president elected by popular vote for a seven-year term (eligible for a second term; previously was a five-year term, extended by constitutional amendment in 2002); election last held 23 December 2007 (next to be held in 2014); prime minister, ministers, and deputy ministers appointed by the president
election results: Islom KARIMOV reelected president; percent of vote - Islom KARIMOV 88.1%, Asliddin RUSTAMOV 3.2%, Dilorom T0SHMUHAMEDOVA 2.9%, Akmal SAIDOV 2.6%
Uzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives in densely populated rural communities. Uzbekistan is now the world's second-largest cotton exporter and fifth largest producer; it relies heavily on cotton production as the major source of export earnings and has come under increasing international criticism for the use of child labor in its annual cotton harvest. Other major export earners include gold, natural gas, and oil. Following independence in September 1991, the government sought to prop up its Soviet-style command economy with subsidies and tight controls on production and prices. While aware of the need to improve the investment climate, the government still sponsors measures that often increase, not decrease, its control over business decisions. A sharp increase in the inequality of income distribution has hurt the lower ranks of society since independence. In 2003, the government accepted Article VIII obligations under the IMF, providing for full currency convertibility. However, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity. The Central Bank often delays or restricts convertibility, especially for consumer goods. Potential investment by Russia and China in Uzbekistan's gas and oil industry, as well as increased cooperation with South Korea in the realm of civil aviation, may boost growth prospects. In November 2005, Russian President Vladimir PUTIN and Uzbekistan President KARIMOV signed an "alliance," which included provisions for economic and business cooperation. Russian businesses have shown increased interest in Uzbekistan, especially in mining, telecom, and oil and gas. In 2006, Uzbekistan took steps to rejoin the Collective Security Treaty Organization (CSTO) and the Eurasian Economic Community (EurASEC), which it subsequently left in 2008, both organizations dominated by Russia. Uzbek authorities have accused US and other foreign companies operating in Uzbekistan of violating Uzbek tax laws and have frozen their assets.