Paper short abstract:

This paper looks at the role of international soft policies in telecommunication services and questions whether they play a role in structural transformation. Challenges linked to investment in technology-intensive digital infrastructure are explored in relation to state capacity.

Paper long abstract:

Following the Chinese mantra of 'let the small go and the big stay' Telecommunications was one of the first sectors to be liberalised in Uzbekistan. It is one of the most dynamic sectors and it covers a wide range of economic activities from smart cities to banking, from agriculture to radio to the internet. Yet, there is still a gap in the way citizens access these services. This paper will look at the role of international soft policies in telecommunication services and question whether they play a role in structural transformation. Soft power policies are defined here as the set of cultural, educational, and divulgation activities that the private and public players implement in a field in order to exercise power, build affiliation and expand markets. Telecommunications can be of crucial support to the process of structural transformation: first, the industry is a relevant source of employment in urban areas; second; are linked to sensitive political objectives in relation to data and security; third, are a source of forward linkages for agriculture and manufacturing. Looking at the main players in the market, including local, Turkish, and the main Chinese providers, it will show that such services have become the vehicle to establish multiple political, cultural, and material channels between international investors and the host country. Challenges linked to national infrastructure and investment in technology-intensive sectors will be explored in relation to state capacity and foreign capital inflow.