2025-09 Incentivizing Farm Modernization in Uzbekistan: How can land tenure rights stimulate investments?
Authors: Zafar Kurbanov, Dr. Nodir Djanibekov, Prof. Dr. Thomas Herzfeld
KEY MESSAGE
Farmers in Uzbekistan perceive key land rights to be more restricted than what is typical in a market-oriented system, such as in Kazakhstan.
Among Uzbekistan farmers, management rights, such as the freedom to organize production, are more important for motivating investment than land tenure security or land transfer rights.
Use rights and transfer rights currently play a limited role in stimulating investment. In fact, greater freedom in these rights may discourage investment—especially under strategic crop systems like cotton and wheat—possibly because low economic returns reduce the incentive to use land for farming itself.
Land tenure security shows only weak links to machinery investment, likely because such assets are movable and less sensitive to tenure risk. However, perceived expropriation risks may still limit farmers’ willingness to diversify their investments and plan for the long term.
Recommended citation:
Kurbanov, Z., Djanibekov, N., Herzfeld, T. (2025). Incentivizing Farm Modernization in Uzbekistan: How can land tenure rights stimulate investments? CPRO Policy Brief 2025-09. https://doi.org/10.70735/rkyz3944
