Revealing the Market Hegemony: Automobile Monopoly in Post-Soviet Uzbekistan through Economic Analysis and Policy Perspectives

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.