IMPROVING THE ASSESSMENT OF THE INVESTMENT CLIMATE IN UZBEKISTAN THROUGH THE USE OF FOREIGN EXPERIENCE

Аннотация

This article examines the possibilities for improving the methodology of investment climate assessment in Uzbekistan by integrating international experience and analytical approaches. It identifies key theoretical foundations, analyzes existing foreign and domestic models, and proposes a modernized framework that reflects the institutional, infrastructural, and innovation dimensions of the investment environment. The results highlight the importance of adopting comprehensive, multifactor methods and international comparability to enhance the objectivity and transparency of investment assessments in Uzbekistan. Keywords: investment climate, investment potential, methodology, international experience, multifactor model, Uzbekistan. The investment climate plays a crucial role in determining a country’s ability to attract and retain capital, stimulate economic growth, and ensure long-term sustainable development. In the context of Uzbekistan’s ongoing economic reforms, improving the methodology for assessing the investment climate has become an essential component of the national investment policy. Traditional approaches in Uzbekistan have primarily focused on macroeconomic indicators, such as GDP growth, inflation, and foreign direct investment inflows. However, these indicators alone do not provide a comprehensive understanding of the investment environment. A more advanced methodology should integrate institutional, infrastructural, and innovation-related aspects, as well as take into account global best practices and international rating systems such as Moody’s, Standard & Poor’s, and Fitch Ratings. The integration of international experience can enhance the analytical capacity of domestic institutions, promote transparency, and increase investor confidence. This paper aims to explore modern approaches to investment climate assessment and outline practical recommendations for improving the methodological framework in Uzbekistan. The analysis of international experience shows that modern investment climate assessment models are multidimensional and dynamic. For instance, Moody’s and Fitch emphasize creditworthiness and risk management, while the World Bank’s Doing Business index measures regulatory efficiency. Adapting such approaches to Uzbekistan would allow more accurate assessment of regional disparities and economic potential. Several generalized approaches (models) are distinguished in assessing the investment climate and investment attractiveness of a region, which serve as the basis for developing specific assessment methods. The schematic representation of these approaches to evaluating regional investment attractiveness is shown in Figure 1. Vol. 5, No. 11 – Special Issue (EJMTCS) 191 ISSN: 2181-2861 Methodologiesfor Conducting Investment Climate Assessments Macroeconomicmodel Multifactorial model Factor model Assessment of Assessment of the main macroeconomic indicators Assessment of the set of indicators of the content of (GDP, national income, factors influencing the the investment climate, inflation, public debt, investment climate investment potential and budget deficit, etc.) investment risk Methods of the magazines “Euromoney”, “Fortune”, Methodologies of “The Economist”, international rating Russian rating agency methodology of UNIDO, agencies: Moody’s, “Expert” methodology of the Standard & Poor’s Agency for Strategic Initiatives Figure 1. Methodologies for Conducting Investment Climate Assessments [1] Existing approaches to assessing the investment climate vary depending on: - the purpose of the research; - the number and nature of analyzed indicators; - the selection criteria for those indicators. Let us consider these approaches in more detail. 1. Macroeconomic Model This approach is based on the assessment of the dynamics and structure of key macroeconomic parameters – gross domestic product (GDP), gross regional product (GRP), national income, public debt, budget deficit, and the condition of investment and financial markets. Financial or credit ratings published by international analytical agencies such as Moody’s, Standard & Poor’s, and Fitch are primarily formed on the basis of this model [2]. 2. Multifactor Model This approach is of great interest to both private and corporate investors and is based on evaluating a set of factors that influence the investment climate and investment attractiveness [3]. By summarizing these factors, researchers calculate an Integral Importance Index (III), which is determined either by expert evaluation or by analytical calculation. This index is regularly published in reputable economic journals such as Euromoney, Fortune, and The Economist. The methodological basis and Vol. 5, No. 11 – Special Issue (EJMTCS) 192 ISSN: 2181-2861 indicator composition of these rankings are periodically revised depending on changes in the global economic environment. 3. Factor Model This approach focuses on two key components of the investment climate – investment po