At the moment, the Uzbek economy is predominantly focused on agriculture. The share of agriculture in GDP (27-28%) is higher than the share of industry (20-21%). Given that 64% of the Uzbek population resides in rural areas, living standards highly depend on the development of these two sectors. Research conducted by the Center for Economic Research in 2005 on the problems and prospects of the textile industry demonstrates that this sector could become a viable entry point for economic growth in Uzbekistan, an important element of the country’s industrial policy, and key to the Welfare Improvement Strategy for the next 5-10 years. As this policy brief explains, the development of textile industry needs to be accelerated.