Why Uzbekistan’s New Move Matters
Uzbekistan doesn’t often make headlines, but a recent decision could change how the country gets money for big projects. President Shavkat Mirziyoyev signed a law that lets Uzbekistan join the New Development Bank (NDB), a lending group started by the BRICS nations in 2015.
What Is the New Development Bank?
- Founded by: Brazil, Russia, India, China, South Africa (the BRICS)
- Goal: Offer loans for infrastructure and development, especially for countries in the Global South
- Track record: Since 2015, the NDB has approved 139 projects worth almost $42 billion
Joining the NDB adds another source of funding to Uzbekistan’s toolbox, alongside the World Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development (EBRD).
Why Uzbekistan Needs More Money
- Massive building plan: 782 industrial and infrastructure projects slated for 2026, totaling about $52 billion
- Strong growth: Economy grew 7.7 % in 2025 and is expected to stay around 6.7 % in 2026
- Key sectors: Irrigation, mining, and transport need upgrades fast
The country’s irrigation system is still based on old Soviet designs. Water shortages threaten agriculture, which employs many Uzbek families. Fixing these systems isn’t just “development talk”—it’s essential for survival, especially after the Aral Sea disaster showed what happens when water management fails.
What the NDB Brings to the Table
- Speed: Approval processes tend to be faster than those at Western lenders
- Fewer strings attached: While accountability matters, the NDB’s conditions are often seen as less restrictive
- Credibility: Each new member boosts the bank’s reputation and reach
For Uzbekistan, this means it can get money for urgent projects without waiting months for lengthy negotiations or adjusting domestic policies to meet tough external conditions.
Uzbekistan’s Balancing Act
Since Mirziyoyev took office in 2016, Uzbekistan has pursued a “pro‑Uzbekistan” foreign policy:
- Normalized relations with all Central Asian neighbors
- Deepened ties with China through Belt & Road initiatives
- Kept good relations with Russia while welcoming European and American investors
- Pushing hard to join the World Trade Organization (WTO), which requires aligning with Western trade standards
Joining the NDB fits this strategy. It doesn’t mean turning away from Western banks; instead, it adds another option so no single partner can dominate Uzbekistan’s financial decisions.
The Bigger Picture: Optionality Over Alignment
Many developing countries are learning that the best way to grow is not to pick a side but to collect several useful partnerships. A smart strategy might include:
- Chinese infrastructure money
- Access to IMF or World Bank loans when needed
- Strong regional trade deals
- Membership in BRICS‑linked institutions like the NDB
- Ongoing dialogue with European partners
By keeping all these doors open, a nation can negotiate better terms, avoid over‑reliance on any one lender, and tailor financing to each project’s needs.
Uzbekistan is already doing this: it has World Bank and EBRD support, is courting Chinese investment, is deepening regional ties, and now has NDB membership—all while pursuing WTO accession.
Conclusion
Uzbekistan’s decision to join the New Development Bank is more than a technical paperwork step. It reflects a thoughtful, teen‑friendly approach to development: gather many funding sources, keep policies flexible, and focus on what the country truly needs—like modern water systems and industrial growth.
As the NDB continues to add members and fund real projects, Uzbekistan’s move shows a growing trend: the world of development finance is shifting from a Western monopoly to a more diverse marketplace where countries can choose the best tools for their future.
Written by:
Dr. Iqbal Surve – Former Chairman of the BRICS Business Council
Chloe Maluleke – Specialist for Russia and the Middle East, BRICS+ Consulting Group
The views expressed are the authors’ own and do not necessarily represent those of Independent Media or IOL.
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