Introduction of a new mechanism in creating a favorable investment climate: problems and solutions

This article provides a practical analysis of the evaluation, legal examination and monitoring of investment projects, the requirements for investment projects, the content and legal aspects of investment projects based on applicable law and the mechanism of their operation. The scope of reforms implemented by the Republic of Uzbekistan to improve the investment climate is also discussed. In addition, this article highlights the urgency of introducing a new mechanism for monitoring investment projects, as well as fully emphasizes the importance of monitoring investment projects to ensure the stability of the national economy.

VOLUME 2 ISSUE №2 E-ISSN: 2181-1024 O CTO Volume BER 2, Issue 2021 2 (2021) TSUL Legal Report 1

12.00.02 – CONSTITUTIONAL LAW. ADMINISTRATIVE LAW. FINANCE AND CUSTOMS LAW

Khakimov Rahim Rasuljonovich – First Deputy Minister of Higher and Secondary Special Education, Doctor of Law, Professor

Salaev Nodirbek Saparbayevich – Deputy Rector on Scientific Work and Innovation of Tashkent State University of Law, Doctor of Law, Professor

Rustambekov Islambek Rustambekovich – Deputy Rector on Academic Affairs of Tashkent State University of Law, Doctor of Law, Professor

Nematov Jasur Aminjonovich – Professor of the Tashkent branch of the Russian University of Economics named after GV Plekhanov

Latipov Samir Ildusovich – Director of the Center for Legal Initiatives and Innovations of the Tashkent State University of Law

Kurbanov Maruf Mamadaminovich – Head of Criminalists and Forensic Examination Department of Tashkent State University of Law, Doctor of Philosophy in Law

Narziev Otabek Sadiyevich – Head of International Private Law Department of Tashkent State University of Law, Doctor of Philosophy in Law

Khodzhaev Shakhzhakhon Akmalzhon ugli – Head of Intellectual Property Department of Tashkent State University of Law, Doctor of Philosophy in Law

Uzakova Gozal Sharipovna – Head of Environmental Law Department of Tashkent State University of Law, Doctor of Philosophy in Law

Musaev Bekzod Tursunboyevich – Head of the Constitutional Law Department of Tashkent State University of Law, Doctor of Philosophy in Law

Gafurova Nozimakhon Eldarovna – Head of the Department of International Law and Human Rights of the Tashkent State University of Law, Doctor of Law

Nematov Jurabek Nematulloyevich – Associate Professor of Administrative and Financial Law Department of Tashkent State University of Law, Doctor of Law

Yakubova Iroda Baxramovna – Associate Professor of Intellectual Property Department of Tashkent State University of Law, Doctor of Philosophy in Law

Abzalova Khurshida Mirziyatovna – Associate Professor of Department of Criminal Law, Criminology and Anti-corruption, Doctor of Law

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Akhmedova Guzalkhon Utkurovna – Associate Professor of Criminalistics and Forensic Examination Department of Tashkent State University of Law, Doctor of Law

Abulkosimova Saodatkhon Khasan kizi – Editor of “TSUL Legal Report” international electronic scientific journal of Tashkent State University, Master of Arts degree in Editing and Publishing specialty

Contacts Editorial office address: Tashkent, st. Sayilgoh, 35. Index 100047. Principal Contact Tel.: ([phone number hidden] Fax: ([phone number hidden] E-mail: info@legalreport.tsul.uz

© 2020. TSUL – Tashkent State University of Law. All rights reserved.

4 TSUL Legal Report Volume 2, Issue 2 (2021) E-ISSN: 2181-1024

12.00.02 – CONSTITUTIONAL LAW. ADMINISTRATIVE LAW. FINANCE AND CUSTOMS LAW

ABZALOVA XURSHIDA, RUZIYEV BEKHRUZ, GAFUROV ULUGBEK Anti-corruption is the demand of the present time! . .............................................................6

KHOJIYEVA RUZIGUL Issues of applying foreign experience in combating corruption to the national legal system ..........................................................................................................11

12.00.03 – CIVIL LAW. EMPLOYING LAW. FAMILY RIGHT. INTERNATIONAL PRIVATE LAW

BAKHRAMOVA MOKHINUR Jurisdictional decisions and consequences of their adoption: best practices and case analyses ..................................................................................... 16

BOBONAZAROV ALISHER Issues of privileges and immunities of international organizations and their officials in international law . ...................................................................................... 29

MAMASOLIYEVA SHAKHRIZODA Introduction of a new mechanism in creating a favorable investment climate: problems and solutions ..................................................................................................... 34

12.00.08 – CRIMINAL LAW. CRIMINOLOGY. CRIMINAL-EXECUTIVE LAW

ABULKOSIMOVA SAODATKHON The portrayal of the serial killer in in the true crime drama “The Serpent” and the problems of sympathy for serial murderers in television series . .......................... 43

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INTRODUCTION OF A NEW MECHANISM IN CREATING A FAVORABLE INVESTMENT CLIMATE: PROBLEMS AND SOLUTIONS

UDC: 330.322(042)(575.1) ORCID: 0000-0002-1828-4625

Mamasoliyeva Shakhrizoda Student of the Faculty of International Law and Comparative Law of

Keywords: investment projects, evaluation of investment projects, legal examination, monitoring of investment projects, investment climate, private property security, pure competition, international cooperation and periodic analysis, economic efficiency, investment policy, infrastructure, Entrepreneurship Code.

Tashkent State University of Law e-mail: shakhrizoda0812.yurist@gmail.com

This article provides a practical analysis of the evaluation, legal examination and monitoring of investment projects, the requirements for investment projects, the content and legal aspects of investment projects based on applicable law and the mechanism of their operation. The scope of reforms implemented by the Republic of Uzbekistan to improve the investment climate is also discussed. In addition, this article highlights the urgency of introducing a new mechanism for monitoring investment projects, as well as fully emphasizes the importance of monitoring investment projects to ensure the stability of the national economy.

Over the past ten years, the Republic of Uzbekistan has taken a number of measures to create an investment climate and attract foreign investors to Uzbekistan, all of which undoubtedly contribute to the development of the country’s economic potential. According to statistics of Uzbekistan investment activities for January-September 2020 by the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan, the total amount of investments in foreign currency in Uzbekistan was 7.2 billion US dollars, which is a direct result of reforms implemented by the government. Modern market relations, in turn, have proved the importance of attracting investment projects to the domestic and international markets, in this context, the assessment of investment projects; their legal examination and monitoring require special legal regulation by the state. Accordingly, in order to create the most favorable investment

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climate for attracting direct investment in the country, and to ensure free access to products (works and services), as well as to create the necessary infrastructure in the regions, large-scale of measures were taken: liberalization of the economy, public administration reform, limitations of interference in the activities of business entities, reduction and simplification of licensing and permission procedures. It should be noted that the Decree of the President of the Republic of Uzbekistan dated August 1, 2018 No. PD-5495 “On measures for cardinal improvement of investment climate in the Republic of Uzbekistan” is an integral continuation of reforms in this area [1]. Therefore, it is expedient to first determine the scope of requirements to the investment project, the content of the project and the issue of its legal examination. For without the analysis of these issues it will be difficult to draw a definite conclusion about the state of the investment climate. Legal regulation of investment activity in Uzbekistan and state policy in this area When analyzing the role of government agencies in the legal regulation of investment activities in the Republic of Uzbekistan, it is important to dwell on the legal term of investment policy. Thus, investment policy refers to the investment policy that favors or discourages direct investment related to the laws, regulations and practices of the country and the benefit of investments that strengthen society, as well as the policy of transparency and non-discrimination toward investors, expropriation and compensation that include laws and dispute resolution practices [2]. The quality of a country’s investment policy, such as small or large has a direct impact on local or foreign investors and its decisions. The basic principles of transparency, property protection and non-discrimination-investment policy play a key role in supporting efforts to create a quality investment environment for all. The main directions of state investment policy are listed below:

1. Laws and regulations. 2. Effective ownership registration. 3. Intellectual property rights. 4. Contract enforcement and dispute resolution. 5. Expropriation laws and review processes. 6. Non-discriminatory treatment for national and international investors. 7. International cooperation and periodic review. 8. International arbitration instruments [2]. At the same time, it can be seen that a modern investment policy is being pursued, which has become a leading policy in many countries. Then what is a modern investment policy? Modern investment policy is a key tool for structural changes in the economy, ensuring the viability of agricultural modernization process, development of regions and natural resources, employment, science and technology development, solving environmental problems. [3]. Analyzing the importance of legal regulation of investment activity in Uzbekistan and the state policy in this area, it is advisable to dwell on the normative legal acts adopted on investment activity. The following is the legislation aimed at legal regulation of investment activities: • Law of the Republic of Uzbekistan of 25.12.2019 No. LRU-598 “On investments and investment activity”; • Decree of the President of the Republic of Uzbekistan dated 01.08.2018 No. PD- 5495 “On measures for cardinal improvement of investment climate in the Republic of Uzbekistan”; • Decree of the President of the Republic of Uzbekistan of 11.04.2005 No. PD-3594 “On additional measures to stimulate the attraction of private foreign investment”; • Decree of the President of the Republic of Uzbekistan dated 10.04.2012 No. PD- 4434 “On additional measures to stimulate the attraction of foreign direct investment”; • Decree of the President of the Republic of Uzbekistan dated 17.01.2017 No. PD- 4933 “On measures to accelerate the sale of

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state-owned property for business purposes and further simplify its procedures”; • Customs Code of the Republic of Uzbekistan [4]. State regulation of investment activities is carried out through: 1. Improving the regulatory framework for investment activities; 2. Creation of favorable conditions for the development of investment activity and provision of guarantees of the Government of the Republic of Uzbekistan; 3. Establishment of special economic zones and small industrial zones on the territory of the Republic of Uzbekistan; 4. Granting the right to accelerated depreciation of fixed assets; 5. Establishment of norms, rules and requirements of technical regulation; 6. Taking measures to support competition; 7. Determining the conditions of ownership and use of land and other natural resources. Admittedly, there are still a number of shortcomings in creating a favorable investment climate in the country. The following problems are the main obstacles to investment activity: 1. Unfavorable competitive environment; 2. Inadequate protection of private property; 3. Insufficient modern monitoring mechanism of investment project and excessive bureaucracy. Focusing on each of these problems will help to identify their roots. The importance of creating a pure competition in investment policy First, the unfavorable competitive environment will no doubt frighten foreign investors who plan to invest in the country’s economy. Given that the formation of a clean competitive environment is an important factor in development. The presentation of international indices of formation of an effective competitive environment shows how urgent this problem is: according to the statistics of the International Institute for

Management Development (IMD) in 2019, Uzbekistan is not included in this index at all, and this is deplorable fact [5]. It is true that government officials are struggling to create a competitive environment. However, in this case, unless a pure competitive environment is created, it is still impossible to attract investors not with a quality competitive environment, but with gossipy environment. In support of our view, given that the process of Uzbekistan joining the Global Competitiveness Index (GCI) will take two years, taking into account the above-mentioned conditions for cooperation with the World Economic Forum (WEF), the country will start in 2021. Waiting to join GCI. Well, the authorities are just waiting, but where is the result of the reforms? Currently, the Ministry of Finance is working with the WEF representatives to include the Republic in the GCI. The WEF representatives confirm that the procedure will take a long time for the following reasons: - In the first stage, until January 1, 2020, the WEF will select one of the non-governmental research institutes, private universities or agencies operating in Uzbekistan for cooperation. Organizations selected by the GCI should conduct a series of surveys among representatives of small businesses, large corporations, joint stock companies, as well as agencies (branches) of foreign companies operating in Uzbekistan; - The WEF partner organization in Uzbekistan should report on the results of WEF research conducted in 2020; - Following the above procedure and submission of reports, Uzbekistan can be included in the GCI from 2021 [6]. The WEF should analyze the reliability of the survey results and their closeness to the actual indicators of Uzbekistan. In addition, the media should monitor and analyze any changes in these indicators for 2 years. Second, in order to understand the urgency of the competitive environment, it is worthwhile to dwell on the ongoing reforms in this area. It should be noted that the Address of the President of the Republic of Uzbekistan

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to the Parliament of December 29, 2020 stated that the introduction of mechanisms to reduce the shadow economy is a priority to create a level playing field in the market and provide full support to honest entrepreneurs. In turn, this task is reflected in several items of the State Program, in particular, in the development of the draft “Entrepreneurship Code” set out in Paragraph 84 to improve the competitive environment for businesses and the transfer of some government functions to the private sector. The state policy in the field of competition can be seen directly in the following:  The “Concept of Administrative Reforms in the Republic of Uzbekistan” approved by the Decree of the President of the Republic of Uzbekistan dated September 8, 2017 No. PD-5185 sets out measures to restrict the establishment of state-owned commercial organizations in areas where the private sector operates effectively, the practice of granting exclusive rights, individual privileges and preferences to economic entities were abandoned [7].  In accordance with the Presidential Resolution of the Republic of Uzbekistan dated May 31, 2018 No. PP-3756 “On measures for cardinal improvement of the procedure for granting benefits and preferences” tax and customs exemptions and preferences are granted by law and acts of the President of the Republic of Uzbekistan [8]. Provision of temporary benefits for a period not exceeding 3 years on the documents of the President of the Republic of Uzbekistan. It should be noted that the documents were submitted by the President of the Republic.  Based on the Resolution of the President of the Republic of Uzbekistan dated June 27, 2019 No. PP-5755 “On measures to further regulate the provision of tax and customs benefits” from October 1, 2019 asbestos, coal, wood materials, timber and wood products, hydrocarbons ‒ raw materials are not exempt from value added tax (VAT). Previously, although local producers were VAT payers, imported businesses were exempt. As a result, in order to create equal conditions for all, the procedure of compulsory registration of importing businesses as VAT was introduced and the privilege was abolished.  On June 19, 2020, under the Decree of the President of the Republic of Uzbekistan No. PD-6011 “On the abolition of certain tax and customs benefits”, VAT-related tax and customs benefits in a number of regulations were abolished. In particular, in accordance with this Decree, regressive tax rates levied on exporting enterprises in proportion to the share of exports were abolished.  On the basis of the Resolution of the President of the Republic of Uzbekistan dated August 21, 2020 No. PP-4812 “On additional measures to support local producers” [9], there were abolished special procedures for procurement of goods (works, services) for strategically important economic societies and enterprises. In addition, the new Law on Public Procurement (No. LRU-684 dated 22 April 2021) and the Presidential Resolution No. PP-4544 dated 5 December 2019 “On measures to further improve the public procurement system and broadly involve business entities in public procurement process” provide for the mandatory selection of best offers and tender-based procurement procedures. Besides, the requirement to transfer in electronic form was introduced.

Does Private Property Security Attract Investors?

It can be said that the inviolability of private property is at the forefront of any investment policy. After all, a foreign investor who brings his income to the country is interested in the question of ensuring the right to his property and how to protect it, the implementation of public policy in a conflict situation. In fact, no investor wants to spend his property without making a profit. This means that the right to private property is more important than ever. Indeed, in accordance with Article 53 of the Constitution of the Republic of Uzbekistan, private property, like other forms of property, is inviolable and under state protection.

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336 “On protection of private property and guarantees of property rights” applies the principle of priority of property rights in the relationship between the owner and the government agencies. All irreconcilable contradictions and ambiguities arising in this case shall be interpreted in favor of the owner [10].

Furthermore, according to the Resolution of the Cabinet of Ministers of November 16, 2019 No. 911 “On additional measures to improve the procedure for ensuring compensation for the seizure and granting of land plots and to guarantee the property rights of individuals and legal entities”, the following are provided: a) seizure of a land plot or part of it for state and public needs, as well as within the framework of the implementation of state programs aimed at the comprehensive development of regions, including modification and improvement of the architectural appearance of a certain territory, as well as within the framework of the implementation of investment projects and having socio-economic significance, are carried out with the consent of the land owner or in agreement with the land user and lessee on the basis of resolutions of the Jogorku Kenesh of the Republic of Karakalpakstan, the councils of People’s Deputies, as well as the President of the Republic of Uzbekistan and the Cabinet of Ministers; b) resolutions of the Council of Ministers of the Republic of Karakalpakstan, regional and Tashkent city or district (city) hokimiyats on demolition of real property located on the seized land plot are issued only if there is a positive opinion of judicial authorities; c) an agreement on compensation for compulsory seizure of a land plot between the initiator of alienation of the land plot and the owner of the real property located on the land plot which is subject to alienation must be notarized; d) issuance of a resolution on real property demolition is allowed only after full payment of compensation in the amount established by the agreement or, in disputable cases, in a court decision to the owner of the real property located on the land plot to be seized; e) it is prohibited to forcibly seize land plots by canceling or amending the previously issued resolutions of the Council of Ministers of the Republic of Karakalpakstan and hokimiyats on the allocation of land plots, including by canceling or amending resolutions due to the failure of the Council of Ministers of the Republic of Karakalpakstan, hokimiyats or other authorities to comply with administrative rules and regulations.

Problems with the circulation of investments have caused many disputes between states and scholars. In 1970, in the case concerning Barcelona Traction Light and Power Company, LTD (Belgium v. Spain), the Court concluded: “The growth of international corporations in the second half of this century, especially the growth of multinational holding companies and the protection of the economic interests of states, at first glance, the methods by which this is done may seem strange, that is, the evolution of law is not advancing in this matter, and generally accepted rules on the subject have not crystallized.” [11] If we take a critical approach to the issue, it should be noted that for a number of years in Uzbekistan, the population is dissatisfied with the demolition of housing. Naturally, such situations can frighten any investor when investing in Uzbekistan. In particular, if one pays attention to the statistics on this situation, in 2016‒2018, due to land acquisition for state and public needs, 4,689 residential and 1,456 non-residential buildings were demolished across the country [12].

In particular, according to the Regulation approved by the Cabinet of Ministers No. 97 of May 29, 2006, the owners whose property has been damaged due to the seizure of land must be notified in writing 6 months before the start of the demolition.

However, in 688 cases in the country: in Namangan ‒ 569, in Andijan ‒ 57, in Navoi ‒ 31, in Bukhara ‒ 22, in Samarkand ‒ 7 cases ‒ owners were not informed at all [12].

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In addition, the destruction of property without valuation is also one of the cases of violation of the inviolability of private property. In particular, in violation of the above Regulations, in 100 cases ‒ in Andijan ‒ 56, in Navoi ‒ 31, in Bukhara ‒ 6, in Khorezm ‒ 4, in Namangan ‒ 2, in Jizzakh ‒ 1 was demolished, but compensation was paid [12].

In this regard, the authorities plan to implement a number of measures, but their results are not yet noticeable. Currently, the district (city) justice departments are constantly monitoring the elimination of identified shortcomings and the restoration of violated rights of citizens in the process. Legislation regulating the sector is also under review by the ministry and proposals for improvement are being developed [12].

Improving the mechanism for investment project monitoring Therefore, it is crucial to first determine the scope of requirements for the investment project, the content of the project and the issue of its legal examination. For without analyzing these issues, it will be difficult to draw a clear conclusion about the state of the investment climate.

Scope of investment project requirements If a foreign investor plans to implement an investment project in Uzbekistan, then by what law should the legal relationship between the government and the investor be regulated? It should be noted that in order to invest in the economy of any country, there are certain rules that govern the party receiving the investment in this project, and these requirements are an important criterion that determines how much each government cares about the country’s investment climate.

So, the question naturally arises: in this case, what are the requirements for a foreign investment project? In order to get a reasonable answer to the above questions, it is expedient to dwell on the concept of an investment project. Thus, according to the Law of the Republic of Uzbekistan No. LRU-598 “On investments and investment activities”, an investment project is a set of interrelated activities aimed at implementing or attracting investments for economic, social and other benefits [13].

The concept of an investment project is an important part of the industry and economy of any country, covering the period from the attraction of investment in the country’s economy to its completion. Therefore, the analysis of the requirements for investment projects in the Republic of Uzbekistan on the basis of legislation shows that the following includes obligations for foreign investors to implement their projects:

1) Payment of taxes and fees; 2) Fulfillment of contractual obligations undertaken in connection with the investment; 3) Compliance with the requirements of legislation, including the legislation on competition, anti-corruption, investment and investment activities, labor, urban planning, environmental protection, as well as technical safety, sanitary norms and regulations; 4) Indemnification for damages caused to the participant of investment activity due to non-fulfillment or improper fulfillment of the terms of the agreement; 5) Compliance with the requirements of the competent public administration bodies and local public authorities within their competence [13].

Content of investment projects First of all, any investment project has a content that determines its goals, objectives, principles of implementation, sources of funding, working mechanism and the results of the investment project, and to determine this content, what is the purpose of the investment? It is possible to determine what the expected results may be, as well as what negative consequences may result.

An investment project is a long-term project when it is presented as a set of specific activities. In this case, the investor makes investments and reinvestments in a particular area of production or social sphere on a periodic basis. In addition to the investment entity, there will be participants in investment activities, i.e. executors of

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investment projects, service providers. In short-term investments, the investment project is limited to a one-time event [3]. Secondly, referring to the components of the investment project, it should be noted that the formation of the terms of reference for investment design is the first part of the investment project [3]. It is obvious that investment in the country’s industry is not devoid of purpose and expected results, and the formation of terms of reference is the basis of the investor’s plan, without which it is impossible to enter the investment climate. It should be noted that the development of investment projects is carried out by qualified specialists and experts in the field. This is a necessary condition for the implementation of the project. Third, it is important to note that determining who is involved in the design of an investment project is an integral part of investing. Undoubtedly, the enterprises and production complexes to be built on the basis of an investment project are usually performed by specialized design organizations. It should be noted that in most cases such design work is conducted on the basis of a special license, and the investor ensures that tenders among specialized organizations for the design of investment projects are held. Naturally, an agreement on the preparation of an investment project will be concluded with the winning organization based on which the investment project will be formed. Fourth, pre-project and project documents will be developed and ready for implementation [3]. The question naturally arises: what is this process and in what sequence? What is the role of this stage in investment? It should be noted that the pre-project documentation consists of a system of legal documents that determine the order of organization of activities and processes required to develop a project. Pre-project documentation is carried out both by the investor and by the structures that prepared the terms of reference, as well as by design organizations.

Fifth, it is also important to identify technologies, equipment, and methods for the implementation of an investment project. It should be noted that the Administrative Responsibility Code and the Criminal Code of the Republic of Uzbekistan establish legal liability for the import of obsolete equipment and technologies, which in turn determines the fairness of the investment climate. In addition, identifying sources of funding is an important part of an investment project,since the basis of any investment project, of course, is financial policy. Instead of the concept of sources of financing, it is appropriate to use the term direct investment resources. Thus, in terms of investment resources, Article 7 of the Law of the Republic of Uzbekistan No. LRU-598 “On investments and investment activities”, adopted on 25 December 2019, directly refers to resources, which consist of:  Monetary (including foreign currency) and other financial means, including loans, shares, equities and other securities;  Movable and immovable property (buildings, structures, equipment, machinery and other tangible assets) and rights to them;  Technical, technological, commercial and other knowledge of intellectual property, including patented or non-patented (knowhow), formalized in the form of technical documentation, skills and production experience, necessary for the organization of this or that type of production;  Rights to own and use land and other natural resources, as well as other proprietary rights arising from property rights. The next step in implementing an investment project is to identify these investment participants. Thus, if when defining the subjects of investment, Article 9 of the above law specifies the boundaries of direct subjects, the norm is as follows: “The subjects of investment activity are citizens, individual entrepreneurs and legal entities ‒ residents of the Republic of Uzbekistan, state and local government bodies, foreign states, administrative or territorial bodies of foreign states, international organizations

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and foreign legal entities and citizens, as well as stateless persons.” The final stage of the investment project implementation is the examination and approval of the project and project documents together with the participants of the investment activity and other bodies provided by the legislation [3]. So what exactly does that mean? Thus, Article 39 of the Law “On investments and investment activity” stipulates that investment projects financed by decentralized investments must be subject to state expertise in terms of compliance with sanitary-hygienic, radiation, environmental, architectural and urban planning requirements and other requirements. This means that the investment in the economy is comprehensively controlled by the government. Investment projects of small businesses financed by bank credit resources should be examined by commercial banks for the feasibility of implementing these investment projects. Feruzbek Davletov, a leading researcher at the Center for Economic Research and Reform, in his recent article “On the introduction of a new mechanism for monitoring investment projects in Uzbekistan” focuses on the reforms that need to be implemented in this area. This article emphasizes that the implementation of investment projects usually involves three separate stages: • The initial phase lasts until the final decision on the project is made; • The next stage is implementation, which will continue until the project results are realized; • The final stage is the operational phase where the benefits of the project are realized [14]. To improve the mechanism, the following is recommended:  Conversion of market prices to accounting prices.  Monetization of non-economic effects.  Additional side effects.  Updating the assessment of cost and benefits.

 Calculation of cost-effectiveness indicators [14]. The question naturally arises: if a new mechanism for monitoring investment projects is introduced in Uzbekistan, what will be the effect? The results of these reforms are also discussed in detail in the article. Understanding the mechanism of comprehensive implementation of foreign investment in terms of timing, volume, risks and other aspects of project implementation can be of mutual benefit to agencies and the republic. In addition, the new mechanism will ensure the transparency, efficiency and flexibility of the investment project in any investment environment. This is because it is more important for a foreign investor to know in advance the risks that exist or may occur in the country. There is no doubt that the introduction of this system will benefit any foreign investor. Conclusion As a result of the above analysis, it should be noted that in the formation of a favorable investment climate in Uzbekistan, the independence of customs, finance, credit, judiciary, effective organization of legislation in this area, bringing legal regulation closer to international standards, avoiding excessive regulation ‒ these factors make up the sum of investment policy. In addition, as a result of the analysis to attract foreign investors to the country’s economy, it is expedient to cite the following solutions: 1. Enhancing the inviolability of private property and ensuring that it is adequately provided for by the state. 2. Creating a clean and fair competitive environment. 3. Improving the monitoring mechanism of the investment project. 4. Overcoming systemic problems in financial markets, manufacturing and market infrastructure. This means that if these systemic problems are eliminated, Uzbekistan’s investment climate will be improved to meet

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market requirements, as well as provide conditions created for foreign investors, the country with a number of financial the benefits and priorities are also the main advantages. Adequate awareness of the source of investment flows in the sectors of existing opportunities in our country, the our economy.