Reforming Corporate Governance in Uzbekistan in Line with the Global Principles

Abstract

Today Uzbekistan, one of the independent Central Asian countries, has headed for reforming and improvement of corporate governance system, and as a result of implementing the reform program there have been introduced significant improvements in the country’s corporate governance system. Nevertheless, in spite of recent developments and improvements in the sphere of corporate governance we still do not know whether corporate governance practice is implemented in compliance with the global principles of corporate governance. The purpose of this paper is to analyze the compliance of corporate governance system of Uzbekistan, which has been formed out of the recent developments and implementation of current reform program, with the global principles of corporate governance, and work out recommendations and suggestions for further improvement of national corporate governance system in line with the global principles. Specifically, the paper identifies nature and extent of specific strengths and weaknesses in corporate governance of Uzbekistan to determine the further reform priorities leading to the improvement of corporate governance and economic performance in the country. The G20/OECD Principles of Corporate Governance is used as a benchmark for our analysis. At the end, the paper concludes that the country still has some weaknesses in corporate governance, and gives recommendations and suggestions as the measures to be undertaken for further improvement of national corporate governance system in line with the global principles of corporate governance.