Though till 20-ies of last century valley was developed as agrarian zone, availability of mineral wealth essential resources in Fergana Valley mainly caused direction of industrial development in this region in XX. Coal and rare metals in Kyrgyz part of valley, nuclear substances and some accompanying metals in Sogd oblast of Tajikistan, oil, precious metals, polymetal  ores in Uzbekistan as well as raw material for building materials production promoted especially from the beginning of II World War and necessity of evacuating major part of enterprises and people from west to east big increase of industrial production and its certain place in economic development.

Major ore mining and processing enterprises, different hard rock mining, coal production, oil production and processing, powerful cement producing, and other enterprises of building industry promoted here formation of not simply industrial sector, but certain industrial and serving them urban agglomerations such as Fergana, Margelan, Kokand, Leninabad (now Khojent), Osh, Sumokta, Kzyl Kiy, and others. In 80-90-ies Government of Uzbekistan made essential efforts on creating industrial enterprises directly in rural region. Enterprises producing bearings, cable outputs, divisions of aircraft construction enterprises and many others were erected. All this promoted increase of population employment in industry, service, construction and transport, taking labor forces from rural place.         

In the same time rapid growth of industry and population in 40…80-ies demanded search and development of power capacities. Taking into account power resources potential problem solution was found by erecting hydropower complexes. In 1942…48 years Farkhad hydropower with capacity 132 kwt, in 1949…55 years - Kairakum hydropower with capacity 126 kwt, in 1962…74 years - Toktogul hydropower with capacity 1200 th. kwt, almost simultaneously - Andijan hydropower were constructed and put into operation. Hydropower capacities development was continued in creating Naryn hydropower cascade on fixed Toktogul flow.

After getting independence industrial production of Fergana Valley in general as well as in all Central-Asian countries decreased sharply. Range of industrial enterprises, especially on production of building details, pipes, and sets, were stopped for some time. Agriculture demand for infrastructure services rapidly reduced in connection with rural region economic possibilities decrease. Transport relations were complicated even within country - Fergana coal delivery in Kyrgyzstan to capital - Byshkek from Sulyukta because of railway costs increase, crossing borders, became cost-ineffective. In these conditions hydroenergy, in particular for Kyrgyzstan, and to less extent for Tajikistan became great social factor  - Kyrgyzstan almost totally transited to hydropower consumption reducing expensive electricity production on heat hydropower stations up to minimum. Naryn-Syrdarya water reservoirs cascade operation regime under "Kyrgyzenrgoholding" authority got prior social-economic importance - it not only provides 92% of country demand for electrification, but, annually gives above 100 mln. dollars of income at the expense of low prime cost that contributes sufficiently in maintenance of social-economic situation as of three oblasts of Kyrgyzstan in Fergana Valley so within entire country.

Though in Uzbek part of Fergana Valley new oilfield mining and oil processing increase on Fergana oil-chemical enterprise in general provides maintenance of total industrial production, however it could not employ those workers' quantity that was freed because of production decrease in non-working, unused or under-loaded industrial enterprise.

Table 1.   Demographic parameters of Fergana Valley. 

This table shows that rural population constitutes from 62.5% in Namangan to 77% in Osh oblasts. If it is to take into account that in rural place on average within 0.16-0.222 ha correspond to 1 man, and land reserves fit for irrigation are almost exhausted, it becomes clear that social well-being problems solution in valley is concluded in irrigated agriculture production increase, intensification of secondary processing, and development of small and middle business as in agrarian so in any other sectors.

In the same time indicators for recent years, in particular in Uzbekistan, prove social tension increase here - population increments by 2.4-2.7% per year (table 1.3), labor inputs in rural regions are used directly in agrarian sector less than by half, GNP growth rates from 2.9% to 7% under average level of GNP per capita 377-572 $/man per year - are significantly lower than average state.

Table 2.   Social-economic parameters of Fergana Valley oblasts in Uzbekistan for 2000. 

          Already at present time number of unemployed population in valley exceeded several thousands people. Irrigated agriculture production decrease for recent decade, profitability specific indicators reduction made irrigated lands water supply and other production conditions extremely important and prior.

Social tension in region during last 30-40 years, reduced by resettling rural population on newly developed lands of Central Fergana or even beyond - in Hanger Steppe, to where in 1960-80 above 0.5 mln (100 th. able-bodied population) were resettled, exhausted its opportunities by present time practically.

All this defines significance of agricultural production increase, hence, its basis - irrigated agriculture for valley in general. Sixty percents of rural able-bodied population taken before for work in industry, currently its revenues, livings, and ability to survive are depending mainly on water and land resources use efficiency. Here not only crop production volume itself, but opportunity to process it and obtain related effects and benefits from producing fiber, yarn, oil, silk and cotton wool fabrics as well as opportunity to increase consumption and production of agricultural machine building, fertilizers, etc. According to preliminary studies (V.A. Dukhovny 1983, M.A. Pinkhasov 1996) crop production unit in monetary expression allows to obtain 1.5-2.5 secondary production unit and caused need for 0.3-0.6 consumption goods units.

However extensive irrigated area approaches used before currently are almost exhausted in scales except partially Uzbekistan and Tajikistan, but taking into account high cost of new lands development even in these countries this direction is hardly possible and economically expedient. Basic solution of social-economic problems of Fergana Valley along with industrial production rehabilitation and increase is in rapid growth of irrigated land and water efficiency on base of set of measures included in system "Integrated water resources management".