Paper short abstract:

This paper will provide an analysis of the old and new investment patterns of the major players in the energy sector in Uzbekistan and examine whether such investments enable processes of economic and social transformation.

Paper long abstract:

The energy sector is huge in Central Asia and gas represents a strategic export commodity for Uzbekistan. Many international players are involved, including China, Russia, Middle Eastern countries, and the US. Natural gas is a strategic source of energy worldwide and Uzbekistan ranks 11th in the world for mining and 14th for reserves. That is why the gas and energy sector in Uzbekistan provide good examples of the shifting geo-economic matrix of energy-led accumulation in the region. This paper will provide an analysis of the old and new investment patterns in the major source of energy provided by the major players in Central Asia and examine whether such investments enable processes of sectorial upgrading. Along these lines, it will assess how sich new and old investments affect domestic social inequality. Using the SRA framework, it will develop a relational analysis that inserts old (i.e. Russia), global (i.e. IFIs), and new (i.e. BRI) players into a matrix that challenges path-dependency in relation to structural transformation. It will show that the state holds a crucial role to: first, leveraging international power to improve its bargaining position in financial and commercial agreements. Second, coordinating strategic and co-dependent policies for social and economic objectives linked to energy security, ecological innovation through renewables and gas processing for upgrading. It is argued that a coordinated institutional and industrial strategy coming from the Uzbek state remains a necessary condition for the structural transformations of the sector and of the economy at large.