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    Uzbekistan World Economics

    Uzbekistan and Japan aim to boost software exports tenfold by 2026

    Uzbekistan and Japan aim to boost software exports tenfold by 2026

    Uzbekistan regards Japan as an essential ally in technological modernization and digitalization, with goals to increase digitalization to 70% and enhance software exports by ten times by 2026, as it was disclosed in the “Uzbek-Japanese Expert Dialogue: Strategic Partnership in New Conditions” forum that is taking place in Tokyo, Japan on July 11.

    This event is organized by the Information and Analytical Center for International Relations and the Japan Institute of International Relations, with support from the Ministries of Foreign Affairs of both Uzbekistan and Japan. The dialogue aims to further enhance the bilateral relations between Uzbekistan and Japan, focusing on sustainable development and multifaceted interaction.

    Key Participants and Focus Areas

    The event will gathered leading experts from prominent Japanese institutions, including the Japan Institute of International Affairs, the Japan International Cooperation Agency, the Japan External Trade Organization, Sofia University, and the University of Tsukuba. Representing Uzbekistan will be leaders and experts from the Ministry of Foreign Affairs, the Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan, the International Institute of Central Asia, the Institute of Macroeconomic and Regional Studies, and the Center for Economic Research and Reforms.

    The conference primarily focuses on the role of Uzbekistan-Japan relations in the sustainable development of the Central Asian region. Experts explore new growth opportunities and promising areas for interaction. Discussions will cover a wide range of topics, including the current state and potential of bilateral relations, trade relations, environmental sustainability, and cultural and humanitarian cooperation.

    Historical Context and Strategic Importance

    Uzbekistan's strategic geographic location, dynamic demographic potential, and natural resources have positioned it as a key partner for Japan in Central Asia. The transition to a strategic partnership format in 2002 has allowed both countries to focus on long-term goals, creating a foundation for deepening mutually beneficial relations. High-level dialogues, such as the official visit of President Shavkat Mirziyoyev to Japan in December 2019, have notably strengthened the friendship and strategic partnership between the two nations.

    Mechanisms of Interaction and Cooperation

    Photo: Uzbek-Japanese Expert Dialogue
    Source: Information and Analytical Center for International Relations

    The well-developed mechanisms of interaction at various levels are crucial for deepening Uzbek-Japanese relations. Regular interparliamentary dialogue builds trust, facilitates the exchange of views, and coordinates positions on important issues. The Japanese Parliamentary Friendship League with Uzbekistan and the inter-parliamentary group “Oliy Majlis - Parliament of Japan” play vital roles in this context.

    The expert dialogue in the forum also addressed the development of trade relations, especially in light of Uzbekistan’s efforts to join the World Trade Organization. The countries have most favored nation treatment in their trade relations. In 2023, their total trade turnover amounted to $230mn, with exports at $10.6mn and imports at $219.4mn. The first quarter of 2024 saw a total trade turnover of $120.7mn, a 3.3-fold increase compared to the previous period. The Uzbek-Japanese Committee on Economic Cooperation significantly influences the dynamics of bilateral trade.

    Environmental Sustainability and Technological Exchange

    A key area of discussion will be “green” development and measures to promote environmental sustainability. Japan's advanced technologies in ecology and sustainable development present an opportunity for Uzbekistan to modernize its environmental projects. Cooperation in this field will include the exchange of experience and technology, facilitating Uzbekistan's environmental modernization efforts.

    Focus on Human Capital and Quality Growth

    The strategic partnership between Uzbekistan and Japan continues to emphasize “investment in people” and “quality growth.” These principles are essential for strengthening bilateral relations and fostering joint projects and initiatives. Uzbekistan supports the priority areas of practical cooperation in Asia proposed by Japanese Prime Minister Fumio Kishida, aiming for sustainable development and prosperity in the region.

    Cultural and Humanitarian Cooperation

    Photo: Uzbek-Japanese Expert Dialogue
    Source: Information and Analytical Center for International Relations

    Cultural and humanitarian cooperation will also be an important topic at the dialogue, with a focus on enhancing interactions in science and education. The Uzbekistan-Japan Friendship Society, established in 1999, and the Uzbek-Japanese Human Resource Development Center in Tashkent, play pivotal roles in promoting cultural exchange. The center offers courses in the Japanese language, information technology, business management, and more. Additionally, Japanese language training is available in six Uzbek universities, and the Tashkent State Technical University collaborates with several Japanese universities on the “Uzbek-Japanese Youth Innovation Center” project.

    Since the establishment of diplomatic relations, the dynamic and multifaceted cooperation between Uzbekistan and Japan has strengthened at all levels. This interaction has been characterized by mutual respect and consideration of each other's interests, with active engagement in political, economic, cultural, and educational spheres, thereby deepening mutual understanding and cooperation.

    Strategic Partnership and High-Level Visits

    The elevation of bilateral relations to a strategic partnership level in 2002 marked a pivotal point, allowing both countries to focus on long-term goals and creating a solid foundation for mutually beneficial relations. High-level visits, including those by Japanese Prime Ministers Junichiro Koizumi in August 2006 and Shinzo Abe in October 2015, as well as the official visit of Uzbek President Shavkat Mirziyoyev to Japan in 2019, have significantly advanced cooperation in various fields.

    Economic and Trade Relations

    Economic cooperation between Uzbekistan and Japan has been bolstered by Japan's powerful economic, financial, investment, industrial, and scientific-technological potential. Japan, with a GDP of $4.21 trillion and foreign trade turnover exceeding $1.4 trillion, is the world's fourth-largest economy, leading in IT, robotics, electronics, automotive industry, green technologies, and artificial intelligence. 

    Investment and Business Cooperation

    The summit talks in 2019 catalyzed increased interest from Japanese companies in collaborating with Uzbekistan. Consequently, 66 joint ventures, including 50 with 100% Japanese capital, operate in Uzbekistan. Representative offices of 15 leading Japanese companies, such as JOGMEC, Mitsubishi, Itochu, Sumitomo, Marubeni, and Isuzu, are also present. The Uzbek-Japanese Committee on Economic Cooperation, which has held 16 meetings, plays a significant role in developing bilateral trade. In April 2024, the Uzbek-Japanese trading house was inaugurated in Nagoya.

    Technological and Environmental Collaboration

    Uzbekistan values Japan as a crucial partner for technological modernization and digitalization, aiming to raise digitalization levels to 70% and boost software exports tenfold by the end of 2026. Environmental cooperation is also pivotal, with the Japan International Cooperation Agency (JICA) implementing numerous projects in the Aral Sea region.

    Humanitarian Cooperation and Historical Ties

    The historical and humanitarian connection between Uzbekistan and Japan is exemplified by the internment of around 25,000 Japanese in Uzbekistan, who contributed to significant infrastructure projects post-World War II. This shared history remains a symbol of the enduring bond between the two nations. Japan is considered a key partner in the tourism sector of Uzbekistan, with visa-free entry for Japanese citizens since March 2020 enhancing tourist flows.

    Photo: Uzbek-Japanese Expert Dialogue
    Source: Information and Analytical Center for International Relations

    Regional Cooperation and Future Prospects

    Regionally, Japan was the first to introduce the "Central Asia plus Japan" dialogue in 2004, aimed at fostering regional cooperation and providing technical and financial assistance. This dialogue has held 15 Senior Officials' Meetings and nine Foreign Ministers' Meetings, with the latest in December 2022 in Tokyo. The 20th anniversary summit in August 2023 will mark a new chapter, focusing on human resource development, quality growth, and people-to-people exchanges.

    Infrastructure and Development Projects

    Japan has significantly contributed to infrastructure projects in Central Asia, including building a bridge across the Irtysh River in Kazakhstan, modernizing railways in Kazakhstan, Turkmenistan, and Uzbekistan, and rehabilitating roads in Kyrgyzstan and Tajikistan. The region's healthcare and education sectors have also benefited from Japanese assistance.

    Decarbonization and Green Growth

    Future cooperation will emphasize decarbonization and green growth, with Japan's Joint Credit Mechanism (JCM) providing a platform for collaboration. Transport and logistics, digitalization of transport, development of port infrastructure, and modernization of railway infrastructure are priority areas.

    Follow Daryo's official Instagram and Twitter pages to keep current on world news.

     
    11.07.2024, 20:05   Comments (0)   1938
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