04/03/2021 - 09:27 4510

The issue of reducing poverty in the Republic of Uzbekistan was raised on the main agenda of socio-economic policy after the Address of President Sh. Mirziyoyev to the Oliy Majlis on January 24, 2020. This question was clearly formulated, and on the basis of international best practice, it was decided to put into practice effective means, criteria and methods for its calculation, as well as to develop long-term poverty reduction strategies.

Poverty reduction objectives in the country are being implemented in 3 priority areas.

I. Establishing an institutional framework for poverty reduction.

In order to implement a unified state policy on poverty reduction, the Ministry of Economic Development and Poverty Reduction was created, and a vertical system in this area was created in the regions.

In order to improve the quality of draft regulations in this area and to improve the targeting of measures taken, 14 experts from the World Bank, the United Nations Development Program and the Asian Development Bank were involved.

To ensure transparency and targeting of the process of supporting those in need, the automated information system "Unified Register of Social Protection" was launched by integrating databases of 17 ministries and departments. It is planned to provide more than 30 social services and assistance to families in need by gradually expanding the functionality of the "Unified Register of Social Protection".

In addition, an “iron book” was created with a list of needy and vulnerable families in the event of a pandemic, and the saxovat.argos.uz program was launched to provide them with targeted and timely assistance.

II. Create a source of income for needy families.

Practical mechanisms of poverty reduction were used. In order to increase the level of coverage, the use of 3 main tools widely used in world practice to create a sustainable source of income for poor families was increased.

The first tool: to create a permanent source of income for those in need and to allocate subsidies for the development of land by the population, for membership fees of persons participating in cooperatives in agriculture, crafts and other spheres, as well as employers who are hired under the direction of the authorities for the formation of initial capital labor.

In addition, the Entrepreneurship Support Fund provides compensation and interest guarantees on bank loans received by needy families wishing to engage in entrepreneurial activities.

The second instrument: mono-centers for training the unemployed and unskilled population in various professions, stimulating subsidies to restore and expand teacher-student traditions in order to improve the quality of human capital.

Training of the poor is being organized on the basis of World skills standards, and the participation of non-governmental organizations is expanding in this direction.

In addition, the School of Business and Entrepreneurship and its regional branches organize training courses aimed at developing the entrepreneurial skills of the population wishing to do business.

The third tool: providing direct material and non-material assistance to families in need, exempting children from paying for preschool education and providing free seasonal clothing to children attending school.

In addition, in 2020, 1 million 195 thousand families in need of financial assistance in the event of a pandemic received one-time financial assistance, and on the eve of the Eid al-Adha holiday, the Fund "Sakhovat and Support" provided financial assistance to more than 182 thousand families.

At the same time, since September 1 of last year, pensions, benefits for the elderly and disabled, disabled from childhood who do not have the required work experience have been increased by 10%, and by December the number of families receiving social benefits doubled compared to the beginning of the year and amounted to 1.2 million families.

III. Poverty reduction plans for the future.

Based on the Address of the President of the Republic of Uzbekistan to the Oliy Majlis dated December 29, 2020, the following poverty reduction priorities have been identified.

1. Ensuring inclusive economic growth in order to limit the negative impact of liberalization reforms in all sectors of the economy on the living standards of the population in need.
2. Development of a poverty reduction strategy in the Republic of Uzbekistan until 2030.
3. Development and implementation of a targeted program to reduce poverty in the regions in 2021.
4. Introduce a "social contract" system to support needy families.
5. Introduce the concept of minimum consumer spending of the population.
6. Develop measures to ensure the achievement of the Sustainable Development Goals in the post-pandemic period.

 Information service

The ministry of Economic development and poverty reduction