Paper abstract:

This paper is based on field research conducted in Uzbekistan in 2021, which aimed to study the informality that exists in Uzbekistan and how it serves as a buffer for the continuity and safety of the regime in this country. The research found that in Uzbekistan even though there are laws that regulate the business environment in this country, they are implemented selectively and arbitrarily depending on the cultural and political sensitivities of the people and the interests of the ruling elite.

This situation creates a gap between the written laws and their actual implementation, which can be used by the ruling elite to maintain their power and control over the country. This informality provides them a wide space to take and develop new positions to adjust themselves.

Turkish businessman seems as if smoothly floating with this informal business environment even though as a late comer they would be influenced by these informalities in a very harsh way in times of crisis. An important portion of Turkish business in Uzbekistan was subject to harsh treatment during the time of the previous president. However, many Turkish businessmen decided to stay or come back to Uzbekistan after the normalization.

The paper also tries to understand why and how those business actors prefer to stay in this country and what kind of exit strategies they developed.