TITLE:
Revealing the Market Hegemony: Automobile Monopoly in Post-Soviet Uzbekistan through Economic Analysis and Policy Perspectives
AUTHORS:
Khadiyatilla Juraboev
KEYWORDS:
Automobile Monopoly, Post-Soviet Uzbekistan, Market Restriction, Monopolistic Industries
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.14 No.2,
February
27,
2024
ABSTRACT: Uzbekistan
is regarded as an attractive destination for foreign investors due to its rich
natural and human resources. However, the country’s economic system has yet to
fully transition into a free market economy, largely because of the dominance
of monopolies and oligopolies. These large market players hinder the open flow
of the market, creating challenges for economic development. Also, the dependence
on a single entity stifles competition, while limiting consumer choice and
hindering the country’s internal market efficiency. One industry that has been
at the center of controversy in post-Soviet Uzbekistan is the car manufacturing
sector, which has been monopolized for more than two decades. The present
research argues the economic gain and the role of government as the key factors
for the retention of the automotive monopoly in Post Soviet Uzbekistan. As seen
by the statistics provided by national authorities,
the car manufacturing sector brought a massive amount of taxes for the
government. Moreover, there is enough evidence that high rates of employment in
this industry also contribute to its retention. Next, the nationalization from
private to governmental ownership, which is the direct influence of Soviet
policies, and the government’s role in supporting and nurturing big monopolists
have contributed to the continuation of this system. The gained insights from
this study will be vital for policymakers, economists, and stakeholders seeking
to navigate the complexities of the monopolistic automobile industry in
Uzbekistan.