On the structural front, the government has declared itself in favour of gradual reform. However, in practice this means reserving the commanding heights of the economy for the state (or for well-connected figures among the political elite), restricting foreign investment, expelling foreign investors when joint ventures become lucrative, and avoiding large-scale privatisation. Uzbekistan has refused to close large numbers of insolvent firms and has thereby avoided mass unemployment. Although this has reduced the social cost of the post-communist era to an extent, it has also led to structural inefficiency.

The most revealing indication of the slow reform approach is the government's modest privatisation process. The State Property Committee sold off 26 assets during the first quarter of 2011 for just Som10.3bn (US$6m). Of the assets disposed of, 20 were owned by local governments in the capital, Tashkent. In 2010 the government disposed of 96 state-owned assets, for a total sale price of Som23bn. Despite such a modest privatisation programme, the government claims that the private sector now accounts for around four-fifths of employment.