Uzbekistan inherited the Soviet systemfor the procurement of goods, works and services for Stateneeds. This system was suitable for a command economy butlacks the essential elements of competitiveness,transparency and accountability, which are the hallmarks ofa market-based approach to government contracting. ThisCountry Procurement Assessment Report (CPAR) comes at a timewhen a number of factors are creating an increased need forpublic procurement reform. Primary among these is thatUzbekistan has concluded a Partnership and CooperationAgreement (PCA) with the European Union which commits theGovernment to develop conditions for open and competitiveaward of procurement contracts. Also, the country'sapplication for membership to the World Trade Organization(WTO) may lead to accession to the WTO Agreement onGovernment Procurement (GPA), thereby creating an obligationon Uzbekistan to align its procurement legislation with theGPA. The report, examines all areas of public procurementoperations, including, legislative framework, performance ofregulatory functions, capacity of public sector institutionsand the effects of corruption on procurement. It alsorecommends the Government to prepare a new draft Law onPublic Procurement based on the January 2000 draft Law onGovernment Procurement.