Financial Times
November 27

Jean Lemierre, president of the European Bank for Reconstruction and Development, starts a three-day visit to Uzbekistan today, in an attempt to defuse concerns about the bank's plans to hold next year's annual meeting in Tashkent.

Mr Lemierre's visit comes amid mounting international criticism of Islam Karimov, the authoritarian president of Uzbekistan, who is accused of suppressing democracy, mistreating political prisoners and stifling economic reform. Human Rights Watch and about 50 other non-government organisations have urged the EBRD, the multilateral bank for the former Communist bloc, to secure immediate improvements from Mr Karimov - or move the meeting elsewhere.

The EBRD has itself criticised Uzbekistan's record, but argues that the best way to encourage change in Uzbekistan is to go ahead with the meeting, a prestigious event attended by hundreds of government officials, bankers and journalists. Bank officials say this places Tashkent under pressure either to reform or to face a barrage of bad publicity.

The EBRD's shareholder governments support the bank's approach. Privately, many directors representing western governments wish the EBRD had never chosen Tashkent. But they cannot see a way for the bank to pull out without embarrassing a country which is a key ally in the US-led war against terrorism. One director said this week: "This was a terrible choice. But we are stuck with it."

One EBRD director suggested said the bank might yet be saved from embarrassment by a US attack on Iraq. "If the US starts bombing, we will have a good excuse."

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