ABSTRACT

The adaption to new post-Soviet conditions of development are reflected in the structure of production and employment. The changes in the proportions of the main macrosectors of the GDP are determined by three factors: the relative share held by sectors; the change in relative prices on goods from these sectors; and the dynamics in the volume of output produced. There were also significant changes in employment in the Central Asian states. Thus, three states—Kazakhstan, Kyrgyzstan, and Uzbekistan—reported a contraction in the proportion of those working in industry; this decrease was particularly pronounced in Kazakhstan and Kyrgyzstan. Moreover, the economic chaos of the late 1980s and early 1990s led to a disorganization and breakdown of the industrial labor force. Although labor costs in Uzbekistan are still relatively low, it is not clear that this will compensate for the inauspicious geographic location and for the many other negative factors, such as the acute shortage of water resources.