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Uzbekistan 11/09/2024 Uzbekistan’s President declares poverty reduction a nationwide task

Uzbekistan’s President declares poverty reduction a nationwide task

Tashkent, Uzbekistan (UzDaily.com) —  A video conference meeting, chaired by President Shavkat Mirziyoyev, has commenced to address advancing the fight against poverty to a new qualitative level.

Four years ago, when efforts in this area began, 7.5 million people, or 23% of the population, were living below the poverty line.

Since then, the population has increased by 3.7 million people, and the poverty threshold has accordingly risen by 1.5 times.

Nevertheless, due to improved incomes, 3.5 million people managed to reduce the poverty level by 11% by the end of 2023.

Firstly, the coverage of social protection has been increased by 4.5 times (from 466,000 families to 2.2 million). Last year, 12.3 trillion soums were allocated for these purposes. Additionally, the amounts of pensions and benefits have been increased by 1.5 times.

It was noted that to reduce poverty in districts, 35 trillion soums were provided in the form of cheap loans and 7 trillion soums as subsidies for entrepreneurial projects.

120 trillion were allocated for improving districts, building kindergartens, schools, medical facilities, roads, and for water and electricity supply.

Furthermore, 260,000 hectares of land were distributed among 800,000 people, primarily youth, as income-generating assets for agricultural activities.

Recently, the Director of the FAO (Food and Agriculture Organization of the United Nations), who visited our country, noted that this not only creates jobs and income but also is an effective method for ensuring food security.

Experts from over 60 countries, who participated in the international conference on poverty reduction last month, highly praised Uzbekistan’s achievements in a short period.

The President noted that the situation in the fight against poverty varies not only by regions but also by districts. For example, in the last six months, poverty has decreased by more than 2% in Andijan, Bukhara, Jizzakh, Kashkadarya, and Khorezm, while no changes have been observed in Navoi, Surkhandarya, Fergana, and Tashkent.

In 15 districts of the republic, the poverty level exceeds 20%. These districts include Amudarya, Beruni, Konlikul, Nukus, Takhtakupir, Khojayli, Chimboy, Gulistan, Mirzaabad, Okoltin, Sardoba, Gurlan, Yangiaryk, Yangibozor, and Tuprokkala.

Despite the allocation of 1.7 trillion soums in the form of cheap loans and subsidies over three years to reduce poverty in these areas, no changes have occurred.

In 17 districts where land was provided to the population, poverty has been halved due to harvesting 2-3 times. These districts include Pakhtabad, Balikchi, Gurlan, Honka, Oltiarik, Dangara, Konimekh, Boyovut, Jomboy, Shafirkan, Sh. Rashidov, Zomin, Shakhrisabz, Bandikhon, Urta Chirchik, Buka, and Tahiatash.

However, in 14 districts — Konlikul, Shumanay, Korovulbozor, Peshku, Chirakchi, Muborak, Nurobod, Okoltin, Muzrabot, Bandikhon, Kizirik, Ohangaron, Parkent, and Tuprokkala — no changes have been observed.

There has been strict dissatisfaction with the slow work of district governors and their deputies for economy and agriculture.

By the President’s directive, responsible officials have more thoroughly investigated the problem and identified areas that need special attention by visiting the most disadvantaged districts and poor families.

As part of this, discussions were held with entrepreneurs from various sectors, including trade, services, textiles, medicine, public catering, construction, crafts, electricity supply, and transport.

Research has shown that solving the poverty problem cannot be limited to merely distributing money.

Currently, enterprises offering salaries from 3 to 5 million soums have 250,000 vacant jobs. However, 35% of the working-age members of poor families lack the knowledge and skills to perform the work.

43% of women who wish to work cannot find jobs due to the need to care for children.

In 83% of poor families, there are significant plots of land, but in 62% of these, there are problems with water supply, in 48% with electricity supply, and 50% face difficulties accessing central markets.

The President emphasized that the causes of poverty are diverse, and therefore measures to address it must be individualized and comprehensive.

If Granted a Loan, He Plans to Open One Enterp        rise in Each District of the Region, Hire 30 Representatives from Needy Families, and Pay Them Salaries Up to 4-5 Million Soums

The primary condition for obtaining the loan will be the employment of needy individuals.

The remaining 58 poultry farms in Andijan Region are also ready to launch 4-5 similar projects, providing jobs for 10,000 needy individuals.

660 fish farms in the region have proposed creating 10,000 new jobs through cooperation.

Emphasizing the importance of supporting such initiatives, the President has instructed responsible officials to establish a new system for financing these projects.

Land plots of 30 acres on at least 10 hectares at the pump stations in Andijan will be offered for fishing cooperatives.

With these initiatives, it is possible to create jobs for at least 200,000 needy individuals in the poultry and fishing sectors.

In response to the benefits provided to the public catering sector, major brands in this field have quickly employed 2,000 people in Samarkand, Andijan, and the capital.

Two years ago, entrepreneurs in the public catering sector were granted social tax benefits.

If these benefits are extended for another two years, entrepreneurs are prepared to provide jobs for 150,000 needy individuals.

Some enterprises have set up call centers and now plan to provide jobs for 2,000 disabled individuals, providing them with computers and phones for home-based work.

It was also highlighted that if service sector entrepreneurs express a desire to employ the poor, the benefit period may be extended.

Currently, the textile industry is creating the most jobs in the industry.

Entrepreneurs are requesting an extension of social tax benefits for knitted, dyed fabrics, and fabrics introduced two years ago.

If enterprises hire needy individuals, the social tax benefit will be extended for an additional three years for these employees.

This Benefit Will Be Provided Not Only to the Textile Sector but to All Industries

It has been emphasized that it is crucial to utilize this opportunity to employ 120,000 needy individuals in the textile, construction, leather, footwear, and crafts industries; 120,000 in agriculture and livestock; 25,000 in construction; and 20,000 in electronics.

Over the next year, an additional 50,000 hectares of land will be allocated to 100,000 low-income families.

This land will be used for agriculture and horticulture based on the principle of "company - cooperative - individual farm." A new system will be established to generate three types of income:

- Large agricultural companies that produce and export products will lease land from low-income families on a secondary basis.

- Alternatively, landowners will form cooperatives as shareholders, receive orders from companies, and share the profits among themselves.

- In both cases, individuals will produce goods on the land and receive a salary for their work.

Thus, low-income individuals will be able to effectively utilize the land provided, earning both salaries and income from leasing or dividends.

Responsible officials have been instructed, along with regional governors, to ensure the employment of at least 200,000 people through these measures.

New microfinancing mechanisms will soon be implemented.

In 2024-2025, 10 trillion soums will be allocated for providing microloans for self-employment and small and medium-sized businesses.

Low-income families will also receive funds for purchasing equipment, mobile stores (food trucks), scooters, and other items for up to five years with installment payments.

An interest-free loan for five years with a two-year grace period will be provided for purchasing computers for children from low-income families.

Based on the experience of "Zarbdor" in industry, agriculture, and services, 500 billion soums will be allocated by the end of the year to provide infrastructure for at least five "project drivers," with an additional 1 trillion soums allocated next year.

Governors have been instructed to accelerate the implementation of these projects and ensure the employment of 150,000 people by the end of the year.

Currently, private human resource management companies are supplying employers with staff who have the necessary knowledge, skills, and potential.

This experience needs to be expanded.

A center will be established within the Chamber of Commerce and Industry to find and train workers from low-income groups for entrepreneurs.

The center will conduct research on workforce needs in various fields, determine the interests and skills of the poor, direct members of poor families who meet entrepreneurs’ requirements to work, and those without sufficient qualifications will be trained alongside entrepreneurs and then employed.

In summary, considering all the mentioned opportunities, the task will be set for responsible ministries and agencies, as well as governors, to lift 500,000 people out of poverty by the end of the year and 1.2 million people within the year.

The President Announced the Creation of Conditions to Ensure That Each Poor Family, Especially Women, Has at Least One Person with Higher Education

In this context:

- If the enrollment rate of students in higher educational institutions, colleges, and technical schools reaches at least 80%, they will receive interest-free educational loans for the next academic year.

- Additional grants will be provided to children from poor families who score at least 80% of the required points in entrance exams for higher educational institutions, colleges, or technical schools.

Moreover, financially independent higher educational institutions will announce grants of at least 1 billion soums annually.

These grants will cover 20% to 80% of the tuition fees for children from poor families, depending on their academic performance.

The organization of quality education for children from poor families in kindergartens, schools, technical schools, and higher educational institutions, as well as providing them with comprehensive support, will be coordinated by Shakhnaz Mirziyeva, Deputy Director of the National Social Protection Agency.

The President emphasized that the work of lifting families out of poverty must become a primary focus at all levels—from the government to district organizations.

Responsible officials have been warned of the need for strict control and monitoring in this area.

A special deputy prosecutor responsible for ensuring compliance with legislation in this area has been appointed.

He will visit at least one district each week to verify the authenticity of poor family registrations and ensure that allocated funds reach their recipients.

Under the chairmanship of the Deputy Prime Minister, a commission for poverty reduction will be established. The Director of the Social Protection Agency will become the deputy of this commission.

In each region and district, the commissions will be led by the regional governors.

The commission will discuss issues in one district of each region on a weekly basis and evaluate the performance of appointed leaders. Issues will be resolved promptly, and progress on poverty reduction plans will be reported to the President monthly.

Additionally, 9 economic research centers and higher educational institutions will focus on poverty reduction using a scientific approach.

Reports and plans of the responsible officials on the agenda were also reviewed during the meeting.

#Shavkat Mirziyoyev  
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