11.09.2024

On September 11, President Shavkat Mirziyoyev chaired a video conference on the transition to a qualitatively new level of work on poverty reduction.

Work in this direction began in 2020, when the incomes of 7,5 million people, or 23 percent of the population, were below the poverty line. Thanks to the efforts of the last years, 3,5 million people have been lifted out of this state and by the end of 2023 the poverty rate has been reduced to 11 percent.

First, the coverage of social protection measures has increased significantly, with 12,3 trillion Uzbek soums being targeted last year. Pensions and benefits have increased by a factor of 1,5.

35 trillion Uzbek soums of soft loans and 7 trillion Uzbek soums of subsidies were allocated to projects for poverty reduction and entrepreneurship development in makhallas. 120 trillion Uzbek soums were spent on upgrading makhallas, construction and repair of kindergartens, schools, and health facilities, as well as improving the road infrastructure, water and electricity supply. In addition, 800 thousand residents received 260 thousand hectares of land for farming and income generation.

It is noteworthy that since 2020, the number of workers receiving from 3 to 5 million Uzbek soums per month has doubled, and those earning from 5 to 7 million Uzbek soums have tripled. As a result, poverty is reduced by an average of 3 percent annually.

However, progress in this direction is uneven. In some regions, such as Navoi, Surkhandarya, Fergana, the city of Tashkent has not changed in the past six months, and in 15 districts the poverty rate remains above 20 percent.

In 16 districts, poverty has been halved by obtaining 2-3 harvests on the land allocated to the population, but progress is not visible in 14 districts.

The President stressed that poverty cannot be overcome solely through cash payments and benefits. The main focus should be on training people and providing them with jobs.

Today, there are 250 thousand of vacancies in enterprises, but 35 percent of the working-age members of low-income families lack the necessary knowledge and skills, and some cannot work due to chronic illnesses. 83 percent of low-income families have plots of land, but they are difficult to cultivate because of problems with access to water, electricity and roads.

During the meeting, the current problems were analyzed and new challenges were identified.

The Head of State announced the preparation of a program “From poverty to prosperity”, which will define new approaches to combat poverty in Uzbekistan on seven fronts.

The National Agency of Social Protection, together with the regional administrations, will conduct a full inventory of makhallas, create a “portrait” of low-income families and develop individualized programs to support them. The Economic complex, district administrations and sector leaders will be engaged in raising families out of poverty.

Special attention will be given to the development of makhalla infrastructure: next year, US $1,6 billion will be allocated for this purpose. Part of this will be used to install pumps and solar panels in the 300 most problematic towers. In another 500 makhallas, issues of water, electricity and road infrastructure, as well as internet access will be solved.

Today in Uzbekistan there are about 9 thousand 200 entrepreneurs, creating at least 50 jobs each. The support will enable them to expand their production and employ more people.

For example, 58 poultry farms in the Andijan region took the initiative to attract 10 thousand needy residents to produce eggs, and 660 fish farms took the initiative to create as many jobs at the expense of cooperation.

The Head of state has instructed to create a new system for financing similar projects and expand it in other regions.

Two years ago, the President issued a decree granting social tax benefits to entrepreneurs in the catering sector. As a result, a number of enterprises provided jobs for 2 thousand people in Tashkent, Samarkand and Andijan. If this benefit is extended for another 2 years, entrepreneurs are ready to employ tens of thousands more citizens in need.

The textile industry is the largest employer in the industrial sector. Entrepreneurs in this field also asked to extend the social tax benefit granted two years earlier to enterprises producing finished knitwear, dyed fabrics and textiles.

Given their importance in the employment of the population, responsible persons were instructed to make proposals for the extension of benefits in these areas.

It was decided to maintain the social tax benefit for a further three years for each employed person from low-income categories. This benefit will be granted not only to textile enterprises but also to enterprises of all industries. This can employ hundreds of thousands of poor in the construction materials, textile, leather-shoe, electrical, food, livestock and construction industries.

Over the past years, 260 thousand hectares of land have been allocated to agriculture for 800 thousand inhabitants. Now another 50 thousand hectares of land will be distributed among 100 thousand low-income families.

These lands will be used for agriculture and horticulture under the “company - cooperative - dekhkan farm” principle. Based on the Chinese experience, a system is being established that allows income to be generated in three ways: 1) A large company producing and exporting agricultural products receives land as sub-lease from low-income families; 2) or the landowners join a cooperative as shareholders, receive orders from companies and the income is distributed among them; 3) in both cases the families will produce on the land themselves and earn a salary.

That is, a low-income family using the land given to it more effectively will receive rent or dividends along with its salary. The company grows one product on one plot and gains in quality and cost.

Microfinance services are also important for employment projects. Opportunities in this area are expanding.

Thus, 10 trillion Uzbek soums will be allocated in the years 2024-2025 for microcredit for self-employment, small and medium enterprises. In addition, low-income families will be provided with equipment worth up to 30 million Uzbek soums, mobile shops, motor scooters and scooters with a term of payment of 5 years. For the purchase of computers, children from low-income families will be granted a loan with no interest for 5 years with a 2-year grace period.

The Chamber of Commerce and Industry will establish a center for the placement and training of workers for entrepreneurs. Members of low-income families will be trained in skills appropriate to the requirements of enterprises.

Special attention will be paid to ensuring that each low-income family, especially among women, has people with higher education. They will receive interest-free educational loans, grants and other financial support.

In general, the Head of state stressed that this goal is very large and everyone should contribute to its achievement.

- From now on, poverty reduction will be a national movement. The daily work of leaders at all levels, from government to district organization, should be to lift families out of poverty. Both the control and the requirements will be strict, - said Shavkat Mirziyoyev.

The Deputy Prime Minister and khokims of the regions and districts presented information at the meeting. The objectives are to improve the targeting and effectiveness of funds allocated to low-income families, to monitor the work of those responsible in this area and to solve emerging problems.