APPROVED

by Collegium of the State Property Committee

of the Republic of Uzbekistan

August 26, 2009, № 01/19-21

The general directions of the valuation activity development in the Republic of Uzbekistan for the period 2009 - 2015

The document has been developed in pursuance of the item 6 of the work plan for the first half of 2009 of the State Committee of the Republic of Uzbekistan for State Property Management, approved by the minutes #1 of extended session of Collegium of the State Committee of the Republic of Uzbekistan for State Property Management on January 28, 2009.

Preface

The general directions of valuation practice development in the Republic of Uzbekistan for the period 2009-2015 have been developed within the framework of valuation activity reform, which is part of the large scale economic reforms in the republic.

 

The valuation activity concept and appraisal profession are relatively new to the republic. The necessity for valuation has been dictated by systematic transition from command economic system to market economy in the republic. It was government that has assumed the responsibility of the major reformer during this transitional period.

 

The President of the Republic of Uzbekistan I. A. Karimov in his book "The global financial-economic crisis, ways and measures to overcome it in the conditions of Uzbekistan" has particularly noted that "We have chosen an evolutionary approach to the process of transition from an administrative-command to a market system of regulation, the road of gradual and phased reforms, acting in line with a well-known principle - "do not destroy the old house until you build a new one".

 

And what was of a special importance, in order not to fall a prey to turmoil and chaos, we have clearly defined a principle that at a transition period it is the state must take a responsibility of a principal reformer.

 

In cases when it was dictated by long-term interests of the country and necessity to resolve and tackle extraordinary situations, we have applied the methods of state regulation which finally have completely justified themselves."

 

The main purpose of the current reforms in the republic is creation of a law-based state and development of market-based economic mechanism. Development of market mechanisms further assumes development of competitive environment in all the spheres of economy. The valuation of various kinds of property is intended to promote solution of these problems.

 

The issues of creation and development of a law-based state include the whole package of measures to ensure that all members of a society enjoy equal rights, including property rights. Therefore protection of these rights and creation of favorable conditions for their fair economic evaluation is a priority task of any law-based state. The document respectively corresponds with the United Nations principles of sustainable development stated in the Millennium Declaration (United Nations Millennium Declaration. Adopted by the Resolution of General Assembly A/RES/55/2, September 8th, 2000, item 25).

 

Thus, development of valuation activity is an integral part of economic reform process and creation of the law-based democratic state in the Republic of Uzbekistan.

 

Over the last years the valuation practice has gone through the establishment process and has developed into the separate economic field. The system of government regulation of the valuation activity has been developed on the basis of the Law "On valuation activity". It provides for the legal entities licensing, individual certification, and control over compliance with the license requirements and conditions.

 

The Republic of Uzbekistan has the necessary legal framework for valuation services and the economic conditions required for their rapid development. For the last few years the valuation practice in the Republic of Uzbekistan has achieved quite specific and significant results. However social and economic conditions do not remain stagnant and valuation as a professional kind of activity should be up to date with current economic reforms. The analysis of current situation and prospects of national practice indicates the need for enhancement of valuation practice quality in the coming years. These processes are especially important in the conditions of the global financial crisis.

 

The Resolution of the President of the Republic of Uzbekistan №RP-843 of April 24, 2008, "On further improvements of activity of the valuation organizations and enhancing their responsibility for quality of rendered services" sets the objective to improve the system of government regulation of valuation activity and to develop the property valuation, which is part of the whole economic reforms taking place in the Republic of Uzbekistan.

 

At the same time, the President of the Republic of Uzbekistan I.A. Karimov emphasized that "concentrating all attention, powers and resources on combating the consequences of the global economic crisis, strengthening the finance and banking system, rendering assistance to the enterprises of real economy, creating new jobs and implementing measures on social protection of population, we in no way must forget about the perspective.

 

In other words, we must think about the post-crisis period of our development, elaboration of the well thought-out long-term Program of purposeful projects to modernize and technically renew the main branches of our economy, introduce the modern innovative technologies that are called upon to give a powerful spur in terms of letting Uzbekistan secure the new achievements that would ensure a competitiveness of our country at the world market." (I.A. Karimov. "The global financial-economic crisis, ways and measures to overcome it in the conditions of Uzbekistan").

 

This raises the imperative need for creation of the program document that would give the true picture of the new life's realities and would be aimed at qualitative and comprehensive structural reforming of the whole valuation system in the republic.

 

The document is developed on the basis of preliminary held system analysis including the analysis of valuation as a whole system, and analysis of each of its components. The SWOT analysis toolkit was also used during the research.

 

The document shall apply to all subjects of civil law, who are involved in valuation process to one extent or another, or are connected with any particular aspect of valuation activity.

 

The purpose of the present document is further (for 2009-2015) development of the system of independent valuation in line with the economic reforms in the republic and with due account of basic priorities of social and economic development of the Republic of Uzbekistan for the period 2009-2015, enhancing of professional level and quality of valuation services, introduction of the effective methods of control over the valuation organizations in the republic, and taking the national valuation to international level.

 

The following have been formulated in the present document in pursuance of the above purpose:

I. The factors that require the increasing role of valuation in the republic;

II. The approach to examine of valuation;

III. The main goals of structural changes in valuation practice as a whole and development of each component of valuation in particular;

IV. Courses and stages of valuation development.

I. The factors determining the increasing role of valuation within the system of economic reforms in the republic in the forthcoming period

The role and importance of valuation within the frame of economic reforms in the republic is expected to grow in the next few years. This is determined by development of a number of economic sectors, which require the direct involvement of valuation activity by valuation results.

The factors are:

 

Real economy development.

 

Banking sector development.

 

Growing volumes of foreign investments.

 

Improvement of privatization quality and increased efficiency of the state property management.

 

Development of real estate market and mortgage lending.

 

Insurance development.

 

Development of accounting system and financial reporting.

 

Improvement of tax system.

 

Improvement of court enforcement proceedings.

II. Approach to study of valuation

The method, known in economic literature as a system approach, was used in the document. The system approach is based on the principles of the system analysis. The system analysis is a methodology of problem solving, based on sight at one process or another as on a system. Therefore valuation is considered as a holistic system of interrelated and interdependent integral components, each of which is separately necessary, and all together they are sufficient for this system functioning. The very core of the system analysis is the method of quantitative comparison of alternatives in order to choose one for practical implementation. This can be done only if all the necessary components are taken into account and each one is correctly estimated. In other words, it means a comprehensive account of all the related variables.

             

A derived integrated whole is called "system". Thus system is something that solves problem. And problem is a situation defined by difference between the required and actual results. The point is that the actual result has been produced by the actual system. Accordingly, the required result can be produced only by required system, but not actual one. It would be a mistake to attempt to obtain the required result from the actual system which a priori cannot produce it.

 

Basically, the problem is the gap between the actual and required systems. Solution of the problem lies in the liquidation of this gap. Consequently, in order to obtain the required result, it is necessary, first of all, to start with changing the actual system to such an extent so that it can produce the required results. Accordingly, the attempt to solve problem by changing only one or few elements of the system will give nothing.

 

All the above can be entirely applied to the valuation process. Up to now all the attempts to improve the state of valuation activity were fragmentary and unsystematic by nature, which correspondingly effected the obtained results. This will keep happening unless it is clear how the system functions as one living organism; and any knowledge about its elements will not give the complete picture of this functioning. Therefore there will be no possible way to make system produce the required results.

 

The present document is designed to support the application of system approach to the development, introduction and improvement of the effectiveness of the national valuation system. For the system to work successfully it is necessary to identify all of its numerous interconnected elements and to control them. In many cases the output parameter of one element is the direct input parameter of another element. The advantage of the system approach lies in continuous control of the interconnections, combinations and interactions of the system's elements. Each of the system's elements significantly contributes to the system's output parameters. Therefore the feedback between the output and input parameters of the system is very important for comparison of the actual output parameter with its desired value and, correspondingly, for control to liquidate the occurred divergence.

 

The examination of valuation as the object of control is the second essential point of the document. To date there is no control over valuation system. There is no relevant regulatory body. The government involvement is limited to licensing, certification and control over legal compliance. However there is no control over each individual element of the system and over the system as a whole. Each of the elements of the valuation system was solving its own problems in isolation from the purposes and objectives of the system as a whole. This could not but affect the performance results of the valuation system, i.e. the quality of valuation services.

 

On this basis, the document proposes to approach valuation as the object of control. It proposes the control body for the entire system and presents the approach to control over the system. In the management theory this approach is called Management by Objectives. The essence of this management approach is the combination of three managerial actions: setting the objectives of the whole system of valuation activity in the republic, management of the valuation system according to the current situation, organization of control over the results on the basis of comparison of the actual and required results of the valuation system. The decision to improve the separate elements of the system and system itself as a whole with due consideration of its internal and external connections is based on the results of these three actions.

III. Development of valuation activity as a system

The major courses of the valuation development as the system:

 

1. Development of each of the elements (components, component parts) of valuation, including:

development of the legal framework for valuation;

development of the methodological basis for valuation;

development of the practioners involved in valuation (valuation organizations and appraisers themselves);

development of the information sources necessary for conducting the valuation;

development of the licensing authority;

development of the appraisers' professional and further training in educational institutions;

development of the professional non-governmental organizations;

development of the customers of valuation services (including the state);

development of the users of the valuation results.

 

2. Development of the valuation system in whole, including:

convergence  the development objectives of each element into the single objective of valuation system development;

development of interconnections between the elements within the valuation system;

development of connections between the valuation and adjacent areas (accounting, auditing, financial reporting, cadastral registering, banking, insurance and others);

organization of the management of valuation system;

development of valuation system in the regions of the republic.

IV. Development of valuation elements

1. Elements of valuation system

Valuation, as any other system, has its own structure which consists of the elements (components, component parts). The valuation system of the Republic of Uzbekistan is mainly based on the following:

legal framework for valuation;

methodological basis of valuation;

practioners involved in valuation (valuation organizations and appraisers themselves);

information sources necessary for conducting the valuation;

licensing authority;

training and further education institutions for the appraisers;

professional non-governmental organizations;

customers of valuation services (including the state);

users of the results of valuation (legal entities and individuals);

objects of valuation.

2. Development of the legal framework

2.1. Main objectives of development of the valuation legal framework

The main objectives of development of the valuation legal framework are:

 

1. Systemacity in development and adoption of the valuation activity rules;

 

2. Prevention of establishment of the arbitrary terms, definitions, concepts by different ministries and authorities;

           

3. Prevention of adoption of the inconsistent, duplicative or contradictory rules by different ministries and authorities;

 

4. Establishment of clear boundaries between the valuation and adjacent legislation;

 

5. Creation of the single and noncontradictory legal framework of valuation  on the basis of the best foreign experience;

 

6. Substantial reduction of the number of reference rules and a simultaneous increase of the number of directly applicable rules.

2.2. Courses and stages of development of the valuation legal framework

To achieve the set objectives the following shall be done:

 

In 2009-2012:

 

1. To examine valuation legislation (including the regulatory legal acts of adjacent legislation) in order to eliminate conflicts between different documents.

 

2. After examining the legislation to amend the corresponding regulatory legal acts. However, it is necessary to eliminate any possibility of ambiguous understanding and free or dual interpretation of legislation rules.

           

In 2013-2015:

 

1. To bring provisions, methods and instructions, adopted by subordinate acts, including by the resolutions of the Cabinet of Ministers of the Republic of Uzbekistan and by departmental regulatory enactments, in line with the requirements of the national property valuation standards.

 

2. To attain the structuring of legislation on valuation activity so that the application of rules would fall under the scheme "law - standard - procedure guide".

 

3. To introduce the references to the national property valuation standards in the norms of the valuation adjoining legislation. 

3. Development of the methodological basis

3.1. Major objectives of development of the valuation methodological basis

The major objectives of development of the valuation methodological basis are:

 

1. Normative consolidation of the unity of methodological approaches in course of the value appraisal;

 

2. Determination of the requirements for the most important components of the valuation process and its results;

 

3. Unification of the requirements for the composition, content and forms of submitting documents with valuation results;

 

4. Reproducibility of valuation results;

 

5. Determination of the volume of the technical and economic information used for valuation;

 

6. Harmonization of the national property valuation standards with the international valuation standards;

 

7. Creation of the single and adapted to the economy of the Republic of Uzbekistan integral system of methodological approaches to the valuation of property and property rights;

 

8. Creation of the clear and univocal conceptual structure which prevents free interpretation of basic concepts and principles of valuation;

 

9. Creation of the ordered information basis of methodological documents;

 

10. Creation of the methodological and reference documents in the state language, and also their translation to the state language.

3.2. Courses and stages of development of the valuation methodological basis

To achieve the objectives set the following is required:

 

In 2009-2012:

 

1. To examine the existing methodological documents in order to:

eliminate the existing contradictions;

revoke obsolete and inapplicable documents;

classify the documents by type and department;

bring the documents into compliance with the national property valuation standards.

 

2. In order to eliminate possible contradictions with the international valuation standards to provide the legislative consolidation of obligatory methodological expert examination of methodological documents in the State Property Committee, taking into account the opinion of professional public associations.

 

3. To harmonize the national property valuation standards with the international valuation standards.

 

4. To organize publishing and translation of the methodological and reference materials to the state language.

 

5. To develop the following new national property valuation standards and corresponding procedure guide:

property valuation for privatization purposes;

business valuation;

real estate valuation;

transport vehicles valuation;

machinery and equipment valuation;

valuation of the market value of urban lands and agricultural holdings;

incompleted construction valuation;

real estate valuation for taxation purposes;

valuation of intangible assets and intellectual property;

valuation of jewellery, gem stones and precious metals.

 

In 2013-2015:

 

1. To develop the following new national property valuation standards and corresponding procedure guide:

valuation for compensation purposes in the time of real estate withdrawal for the state needs;

valuation of damage and denied profit for different type of property and property rights;

valuation of perennial plantings including fruit and berry crops;

valuation of market value of agricultural and livestock products;

valuation of market value of artistic values and architectural monuments;

valuation of ambient effect and pollutant factors;

valuation of leaseholder's contribution to the improvements;

valuation of obligations;

valuation of property rights;

choice of the valuation approaches and the adjustment of the valuation results obtained by different approaches;

valuation objects identification.

 

2. To revise codes of departmental norms and regulations in order to bring them into the correspondence with the current market conditions.

             

3. To continue work on publishing and translation of the methodological and reference materials to the state language.

4. Development of the valuation practioners

4.1. Major objectives of development of valuation practioners

The major objectives of the development of valuation practioners (valuation organizations and appraisers) are:

 

1. Guarantee of the independent and reliable valuation of property;

 

2. Increasing competitiveness both on the domestic and foreign markets;

           

3. Recognition by the foreign investors of the reports implemented by domestic valuation organizations.

4.2. Courses and stages of development of valuation practioners

To achieve the set objectives the following is required:

 

In 2009-2012:

 

1. To constantly increase the qualification of the practicing appraisers via trainings, participation in the professional conferences, seminars for exchange of experience in the field of valuation;

 

2. To ensure effective internal quality control of the valuation reports in the valuation organizations in order to eliminate arithmetical and methodological errors and to exclude the possibility sponsored or biased or forged valuations;

 

3. To develop specialization of appraisers according to the types of evaluating property and valuation purposes;

 

4. To ensure control over nondisclosure of confidential and official information of the customer became known to appraisers during the fulfillment of professional services;

 

5. Valuation organizations should develop the tariffs on valuation work and adhere to them.

 

In 2013-2015:

 

1. To put into practice of valuation organizations work the creation of its own websites and their regular support. Each website must contain descriptive information about the valuation organization activity, its personnel, work experience, scope of performed services, and clients' comments.

 

2. To put into practice of valuation organizations work the sending of its appraisers for obtaining the certificates recognized internationally, for example RICS certificate (Royal Institution of Chartered Surveyors).

 

3. To develop valuation organizations in the direction of consolidation in terms of financial state and the professional service personnel.

 

4. Valuation organizations should take active part in the work of professional public organizations.

5. Development of information sources of valuation practice

5.1. Major objectives of development of the information sources of valuation practice

The major objectives of development of the information sources of valuation practice are:

 

1. Provision of appraisers with public information about the property being valued;

 

2. Authenticity and sufficiency of the property being valued information which does not require confirmation;

 

3. Creation of the mechanism of qualitative and timely collection, processing, storage and output of information.

5.2. Courses and stages of development of valuation information sources

To achieve the set objectives the following is required:

 

In 2009 - 2012:

 

1. To introduce at the legislative level the concept of reliability and adequacy of information, determining their criteria, as well as to establish clear requirements for the quantity and quality of information used for valuation;

 

2. To develop and implement an information database of valuation objects functioning in the semiautomatic mode.

 

In 2013 - 2015:

 

1. To create a single integrated system of databases required to valuation, based on modern information technologies.

 

2. To create a public electronic register of real estate objects.

 

3. To create a public electronic register of transactions for various types of property.

 

4. To create a public register of pledged property.

 

5. Develop and implement the national valuation information system with the possibility of free on-line access to all valuation organizations and other interested parties.

6. Development of licensing authority of valuation

6.1. Major objectives of development of the licensing authority of valuation

The major objectives of development of the licensing authority of valuation (within the powers conferred on him by the state) are:

 

1. Development of new and changes to existing regulations in the field of valuation activity;

 

2. Development and improvement of national valuation standards;

 

3. Coordination of work on the development and improvement of regulatory and methodological documents on the property valuation;

 

4. Licensing of valuation activity;

 

5. Certification of appraisers;

 

6. Overseeing the implementation of legislation in the field of valuation activity;

 

7.  Study of expert opinions on the reliability of valuation reports;

 

8. Participation in the work of the expert committee set up by decision of the Government, to review valuation materials received at the request of the judiciary.

6.2. Courses and stages of development of the licensing authority of valuation

To achieve the set objectives the following is required:

 

In 2009 - 2012:

 

1. To automate the work of the licensing authority, through the introduction of specialized computer databases and training personnel to work with them. To do this, develop and implement the following computer programs:

on forming and supporting of data bases for valuation organizations;

on forming and supporting of the data bases for appraisers;

on organization of the electronic workflow on assignment of the reports by means of electronic digital signature between the licensing authority and valuation organizations.

 

In 2013 - 2015:

 

1. To accomplish a gradual transfer of functions non-relevant to the licensing authority to infrastructure of valuation activity as soon as it is develop and ready.

7. Development of training and professional skill improvement of appraisers in educational institutions

7.1. Major objectives of development of training and professional skill improvement of appraisers in educational institutions

The major objectives of development of the training and professional skill improvement of appraisers in educational institutions are:

 

1. Quality teaching of future professionals-appraisers;

 

2. Effective professional skill improvement of appraisers;

 

3. Training qualified teachers on the valuation disciplines;

 

4. Development and implementation of effective educational programs;

 

5. Introduction of the contemporary methods of education;

 

6. Organizing and performing scientific research in valuation.

7.2. Courses and stages of development of the training and professional skill improvement of appraisers in educational institutions

To achieve the set objectives the following is required:

 

In 2009 - 2012:

 

1. To enter the property valuation discipline for economic, technical and juridical specialties at the Baccalaureate level;

 

2. To enter the property valuation discipline as key profiling specialty with a detailed study of each valuation area at the Master's level;

 

3. To organize the specialized departments at the higher educational institutions for the property valuation studying;

 

4. To define clear requirements on the scope and content of the learning process in each area of valuation;

 

5. To enter into the curricula of practical training in valuation of the actually existing objects;

 

6. To prepare the regulatory document prescribing requirements for teachers of higher educational institutions and training centers in property valuation disciplines and the procedure to improve their skills;

 

7. To develop and publish educational, scientific and methodical literature on the state and Russian languages, as well as translate foreign literature on the property valuation.

 

In 2013 - 2015:

 

1. To organize the applied scientific research in valuation area, wherefore include scientific research on valuation in the enumeration of priority trends of science development in the Republic of Uzbekistan;

 

2. To organize training libraries (including electronic) on valuation activity under the educational institutions and training centers;

 

3. To establish contacts with foreign educational institutions and training centers for the mastery of advanced experience in training and professional skills improvement of appraisers.

8. Development of professional non-governmental organizations

8.1. Major objectives of development of professional non-governmental organizations

The major objectives of development of the professional non-governmental organizations are:

 

1. Advocacy of valuation organizations and appraisers;

 

2. Presentation of the valuation community of the republic in interrelations with the governmental authorities, other national and international organizations;

 

3. Preparation of proposals for improvement of the legislation on the valuation activity;

 

4. Development and implementation of methodological support of valuation activities;

 

5. Propagation of the best international practices in property valuation among the valuation community;

 

6. Raising the social importance and prestige of the profession appraiser in the republic.

8.2. Courses and stages of development of the professional non-governmental organizations

To achieve the set objectives the following is required:

 

In 2009 - 2012:

 

1. To create the association of valuation organizations to provide right of choice for the valuation practioners to be a member of the organization that would best meet their needs and interests;

 

2. To intensify work in the international public relations with non-governmental professional organizations of different countries to exchange experiences and promote the development of a methodological basis of valuation activity;

 

3. To organize the work on the preparation of relevant training programs, participation in the educational process, the work of Boards of Examiners together with universities and training centers of the republic;

 

4. To introduce the practice of holding regular training sessions, seminars, workshops on practical issues of valuation covering all regions of the republic;

 

5. To put into practice the development of plans of work of professional non-governmental organizations with a wide range of valuation practioners of the condition coverage of his performance in the media, including on a publicly accessible Internet site;

 

6. To develop and introduce in practice the mechanism for regular evaluation ratings of valuation organizations of the republic, highlighting them in the media;

 

7. To create a crisis center (crisis hotline) which would explain to valuation customers their rights and responsibilities in the field of valuation;

 

8. To hold regular meetings with representatives of banks, auditors, accountants and other users and customers of valuation to discuss the valuation specific issues.

 

In 2013 - 2015:

 

1. To join and continue to actively participate in international valuation organizations such as the European Group of Valuers' Associations (TEGoVA), International Valuation Standards Council (IVSC) and others in order to increase the international prestige of valuation organizations of the republic;

 

2. To organize regular training and examinations of appraisers of the republic for an international certificate of the Royal Institution of Chartered Surveyors (RICS);

 

3. To develop and implement a mechanism of effective interaction between the government authorities and valuation practioners.

9. Development of customers and users of valuation

9.1. Major objectives of development of the customers and users of valuation

The major objectives of development of the customers and users of valuation are:

 

1. Obtaining reliable result of valuation of their property;

 

2. Obtaining reliable data with the results of property valuation of third parties for use in their work.

9.2. Courses and stages of development of the customers and users of valuation

To achieve the set objectives the following is required:

 

In 2009 - 2015:

 

1. Customers and users of valuation results should focus attention on information relating to violations of legislation on valuation activity and applied the sanctions against violators in connection with it. The information can be found on the official website of the State Property Committee of the Republic of Uzbekistan, as well as in periodicals;

 

2. Valuation customers should appeal to the professional non-governmental valuation organization for an explanation of the legislation on valuation activities, in particular the rights, duties and responsibilities of valuation customers.

V. Development of valuation activity system in whole

1. Integration of goals of development of each element in the common goal of development of valuation activity system as a whole

1.1. Major objectives

The major objective in the process of integration of goals of development of each element of the system in the common goal of development of valuation activity system is

development of each element of the system towards the development of the valuation activity system in general.

1.2. Courses and stages of development

To achieve the set objective the following is required:

 

In 2009 - 2015:

 

1. To set the goals of each element of the system on the basis of the overall goal of the valuation activity system;

 

2. To ensure coordination between elements of the system to develop goals for each element.

2. Development of connections between elements within the valuation activity system

2.1. Major objectives

The major objective of development of connections between the elements inside the valuation activity system is

development of each element of the system taking into account the development of other elements of the valuation activity system.

2.2. Courses and stages of development

To achieve the set objectives the following is required:

 

In 2009 - 2012:

 

1. To establish the effective connections of the system's elements with the licensing authority;

 

2. To establish the effective connections of the system's elements with the non-governmental professional organizations;

 

3. To establish the effective connections between the non-governmental professional organizations and the licensing authority.

 

In 2013 - 2015:

 

1. To establish the effective mutual connections between all elements of the valuation activity system.

3. Development of communications between valuation activity system and adjacent spheres

3.1. Major objectives

The major objective of the development of the connections between the valuation activity system of and the adjacent fields (accounting, auditing, financial statements, cadastral registering, banking, insurance and others) is

development of the valuation activity system taking into account the development of adjacent fields.

3.2. Courses and stages of development

To achieve the set objectives the following is required:

 

In 2009 - 2012:

 

1. To establish the effective connections with the accounting and auditing;

 

2. To establish the effective connections with the financial statements;

 

3. To establish the effective connections with the cadastral registering.

 

In 2013 - 2015:

 

1. To establish the effective connections with the banking;

 

2. To establish the effective connections with the insurance;

 

3. To establish the effective connections with other activities.

4. Manageability of valuation activity system

4.1. Major objectives

The major objectives of the development of the manageability of valuation activity system are:

 

1. Definition of the results of work of the valuation activity system in the republic as a whole;

 

2. Organization of management of the valuation activity system according to the current situation;

 

3. Organization of ongoing monitoring over the results based on a comparison of actual and desired results of the work of the valuation activity system;

 

4. Improvement of the structure of the valuation activity system;

 

5. Determination of the boundaries of expansion of valuation activity.

4.2. Courses and stages of development

To achieve the set objectives the following is required:

 

In 2009 - 2012:

 

1. To create the permanent National Council of valuation activity which would have served as the feedback mechanism, i.e. analyzing the existing problems in the valuation activity and to give recommendations to the elements of system to eliminate them. Representatives of interested ministries and agencies, non-governmental professional organizations, banks, auditing companies, educational institutions, users of the results of valuation, representatives of the regions of the republic would comprise into the council.

 

In 2013 - 2015:

 

1. To entrust the National Council of valuation activity with function in coordination and regulation of the work of all elements of the valuation activity system towards the common goal achieving.

5. Development of valuation activity system in regions of the republic

5.1. Major objectives

The major objective of the development of the valuation activity system in regions of the republic is:

providing a steady and stably high level of development of valuation activity in all regions of the republic.

5.2. Courses and stages of development

To achieve the set objective the following is required:

 

In 2009 - 2012:

 

1. Non-governmental professional organizations must open branches in all regions of the republic;

 

2. Non-governmental professional organizations must develop the detailed differentiated job schedules to different regions of the republic taking into account the unevenness of the valuation activity development there;

 

3. National Council of valuation activity must introduce a mechanism of effective interaction with the regions of the republic on the challenges to their development.

 

In 2013 - 2015:

 

1. To hear regularly the reports of non-governmental professional organizations to implement the work plans for raising the level of valuation activity in the regions at the session of the National Council of valuation activity.

Conclusion

For the purposes of further stable and systematic development of valuation activity the principal trends of its development have been presented in this document. They are developed on the basis of carried out comprehensive analysis of the existing situation in this sphere for determining the key problems. This analysis has been carried out with the application of the system analysis technology and the SWOT- analysis toolkit.

 

During investigation the basic elements of valuation activity system have been defined and described. The detailed activity analysis of each element severally has revealed both the strong and weak sides of each of them. The analysis of the elements has been carried out from the point of view of their positioning inside the system, the functions executed by them, the characteristics of internal structure, in particular its components, and the connections between them, as well as the connections of each element with the remaining elements of the system.

           

Problems both for each element and for the valuation activity system as a whole have been revealed and structured, the reasons for the emergence of problems have been determined and the possible ways of their solution have been proposed.

           

The approach to management of valuation activity system as a whole on the basis of the principles of Management by Objectives has been proposed.

                       

The represented document is aimed at development of the legislative base of valuation activity, creation of general methodological space, training of specialists in the sphere of valuation activity, development the national information system of valuation activity, increase of overall performance of the licensing authority, development of professional non-governmental organizations, literacy increasing of valuation users. 

           

The implementation of the measures proposed in the document will contribute to the accomplishment of the priority objective of further acceleration of development of the sphere of services and small business as the most important factor of the guarantee of employment, improvement in the quality of life of the population of the republic, set by the President of the Republic of Uzbekistan.