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Uzbek mannequin of poverty discount


How Uzbekistan makes use of the accrued expertise in poverty discount and social safety.

In response to the most recent World Financial institution report “Poverty and Shared Prosperity 2020” – about 3.3 billion individuals on the earth nonetheless dwell on $5.5 a day, and about 1.8 billion individuals – for $3.2 per day (in financial phrases at buying energy parity). The coronavirus pandemic has additional affected the already gradual tempo of decreasing the worldwide poverty stage, which has risen to the 2017 determine of 9.2% (in opposition to the forecast for 2021 of seven.9%). – writes Edvard Romanov, CERR

On the similar time, Uzbekistan has executed a whole lot of work in recent times to scale back poverty and strengthen social safety of weak segments of the inhabitants, and the “Growth Technique of the New Uzbekistan for 2022-2026” units a purpose to halve the poverty stage. To attain this and different targets of the Technique, the nation is present process deep structural reforms to strengthen and additional liberalize the financial system.

Poverty within the spectrum of definitions

Poverty, in a broad sense, is the financial state of affairs of individuals through which they can’t fulfill a sure vary of their minimal wants obligatory for all times, preservation of working capability and procreation. As a rule, poverty restricts entry of a big a part of the nation’s inhabitants to high-paying jobs, high quality schooling and well being companies, alternatives for profitable socialization of youngsters and youth, and many others. Attributable to the truth that this phenomenon is determined by the final lifestyle in a specific society, it’s thought-about that it belongs to relative ideas. Nonetheless, poverty stays the principle international drawback and impacts most nations of the world.

Amongst specialists, completely different teams and definitions of poverty are distinguished. Some specialists divide poverty into three classes: 1) poverty (when individuals would not have the means to a physiological minimal of life and are on the verge of fixed malnutrition, or are past this restrict); 2) want or common poverty (covers these teams of the inhabitants who’ve sufficient funds for the only physiological wants, however not sufficient to fulfill primary social wants, whereas their revenue lower than the official subsistence minimal, however greater than half or two thirds of it); 3) lack of safety or inadequate safety or average poverty (when the subsistence minimal is offered, however there isn’t a prosperity).

Consultants agree on the definitions of the destructive penalties of poverty for the socio-economic growth of any society and state, particularly: financial development is restrained, social tensions in society are rising, crime charges are rising, migration processes are intensifying and the life-style and habits of the inhabitants are deteriorating. As well as, within the context of poverty, such a phenomenon as “self–reproducing poverty” has taken root – that is when kids from poor households, usually disadvantaged of the chance to obtain schooling and work {qualifications}, proceed the vicious circle of poverty within the household from era to era.

Worldwide organizations on poverty

The need to unravel the issue of poverty by any means is a pure precedence for any fashionable civilized state and for your entire world group.

When creating their applications and tasks, the World Financial institution, UNDP, FAO, UNICEF and different worldwide organizations give precedence to the issue of poverty discount. In response to the World Financial institution, in situations of utmost poverty (when revenue is under $1.9 per day) there are 736 million individuals or about 10% of the world’s inhabitants. As a result of penalties of the coronavirus pandemic, native conflicts and local weather change, it’s predicted that an extra 88 to 115 million individuals will likely be in excessive poverty.

In response to the suggestions of the World Financial institution, a profitable struggle in opposition to poverty requires a mix of total financial development within the nation, creating further demand for labor, considerate investments in human capital and social safety of the poor and weak segments of the inhabitants.

Forming of the Uzbek mannequin

As recognized, any mannequin is predicated on the gathering and research of knowledge on the subject beneath research. For instance, the 2019 Nobel Laureates in economics A.Banerjee and E.Duflo, utilizing the instance of analysis, confirmed the effectiveness of the experimental method methodology in fixing points associated to poverty discount, through which it was proposed to evaluate the poverty of a single household primarily based on a mix of a lot of components, from the angle of the residing situations in a specific locality. In response to this technique, approaches to the event of poverty discount measures and the measures themselves must be developed primarily based on particular situations on the bottom, and their effectiveness must be proved by sensible utility and the outcomes obtained by means of area analysis.

At current, essentially the most exceptional and indicative within the area of combating poverty is the expertise of China, which has managed to take away nearly 100 million rural residents from the poor over the previous 8 years and greater than 850 million individuals over the previous 40 years. Having studied the expertise of the “Chinese language mannequin”, in addition to summarizing the massive array of knowledge obtained by means of digital reception rooms organized by the Head of State, large-scale systematic work was began in Uzbekistan to strengthen social reforms and kind its personal “Uzbek mannequin” to fight poverty.

Throughout the video-conferences over the previous two years, together with the primary quarter of this 12 months, held beneath the chairmanship of the President, clear and cardinal directions got to speed up the reform of necessary areas of the financial system and public life, together with these associated to strengthening the struggle in opposition to poverty and organizing social safety for weak segments of the inhabitants.  Accountable departments have been additionally established and particular positions have been created within the system of state energy, particularly, the Ministry of Financial Growth and Poverty Discount was created, the submit of Deputy Prime Minister for Monetary and Financial Points and Poverty Discount was launched in addition to the positions of assistants to the khokims and the “makhallabay” system was launched.

“Iron Books” and “Monomarkazes”

On January 17, 2019, the Presidential Decree “On measures to additional enhance the system of working with the issues of the inhabitants” was issued. On the premise of door-to-door visits, a database has been shaped, which is popularly known as the “Iron E book”, to offer weak segments of the inhabitants with social, financial, authorized and psychological help. Additionally, by analogy, “Ladies” and “Youth” notebooks have been shaped at the moment. When forming lists, particular consideration is paid to social, authorized and psychological help in addition to to individuals who have a necessity and want to amass data and a career.

Unemployed individuals often have difficulties to find the cash they should get a career and grasp {qualifications}. That’s the reason the state allocates funds for the creation of hundreds of non-governmental academic facilities all through the republic, instructing professions and crafts in demand on the labor market, which have been known as “Monomarkaz: ishga marhamat”. As well as, in 2021, the Nationwide Financial institution obtained $100 million from the Reconstruction and Growth Fund, which will likely be used to lend tasks to younger businessmen in 2022-2024. Free coaching and sensible programs on the formation of enterprise expertise and entrepreneurship coaching amongst younger individuals are organized, together with in an internet format. Younger individuals who have efficiently accomplished these programs will likely be given certificates and preferential loans.

It must be famous that since April 1, 2021, a brand new mechanism for accounting for the poor has been launched by coming into them into the data system “Unified Register of Social Safety”, which permits low-income households to obtain the social help they’re entitled to by regulation mechanically with out further provision of the required paperwork.

Assistants to the khokims – a part of the system

On December 3, 2021, a decree “On precedence instructions of state coverage for the event of entrepreneurship, employment and poverty discount within the makhalla” and a Presidential Decree “On measures to prepare the actions of assistants to the khokims on entrepreneurship growth, employment and poverty discount within the makhalla” have been issued.

By Decree, from January 1, 2022, the place of assistant to the khokim of the district (metropolis) was launched for the event of entrepreneurship, employment and poverty discount in every village in addition to in every makhalla. They need to assess the extent of employment, sources of revenue and wishes of the inhabitants, search for alternatives for the event of entrepreneurship in makhallas, help the inhabitants to find employment and coaching professions, and many others.

To coordinate the actions of the brand new establishments with authorities buildings, a Republican Fee has been established to prepare the actions of the assistants to the khokims. The Makhallabay Company for Work and Entrepreneurship Growth and its buildings have been recognized because the working our bodies of the Republican Fee and republican representatives. Accountable workers of ministries, departments and business banks, who’re republican representatives, are assigned to every district and metropolis. Thus, not only a new place of the assistants to the khokims for work in makhallas was launched, however an integral system of a brand new mechanism for combating poverty and financial growth of areas and rural areas was shaped.

Duties to be solved

It must be famous that from the second when the course was taken to scale back poverty, the prices of social safety of individuals in Uzbekistan are rising from 12 months to 12 months. If in 2018 they amounted to 35 trillion sums, then in 2019 – 61.3 trillion sums, in 2020 – 74.2 trillion sums, in 2021 – 85.3 trillion sums, and expenditures of 105.5 trillion sums are deliberate for 2022. Specifically, in 2022, the expenditures of the schooling sector will quantity to 46.9 trillion sums, healthcare – 22.8 trillion sums, tradition and sports activities – 3.4 trillion sums and the prices of measures for the additional growth of science – 1.5 trillion sums.

The President was instructed to develop a poverty discount program, which ought to embody elevating salaries and advantages forward of inflation and stimulating entrepreneurship. At the moment, a Nationwide Technique for Social Safety of the Inhabitants till 2030 is being developed collectively with the UN, ILO, UNICEF and the World Financial institution, and an lively work is constant to develop a technique for outlining the idea of poverty, standards and strategies for its evaluation.

Initially of January this 12 months, in accordance with the outcomes of a survey carried out by the State Statistics Committee and the World Financial institution amongst 10 thousand households in all areas of Uzbekistan, new knowledge on minimal shopper spending of the inhabitants have been collected. Primarily based on the info obtained on account of this survey, the “minimal shopper bills” for the required each day consumption of meals (2,200 kcal), in addition to the acquisition of non-food items and companies amounted to 498 thousand sums per particular person monthly (a rise of 13.2% in comparison with 2021).

The “Growth Technique of the New Uzbekistan for 2022-2026”, which changed the efficiently applied “Technique of Motion on 5 Precedence Instructions of Growth of the Republic of Uzbekistan in 2017-2021”, units a purpose to scale back the variety of poor within the nation by half by 2026. To attain this purpose, the Technique gives for reforms in schooling, healthcare and pensions, measures to additional strengthen the social safety of weak segments of the inhabitants; the introduction of the class of “minimal shopper spending”; the opening of specialised “monomarkazes” in every area for preferential coaching in working professions; rising the extent of advantages and pensions, advantages and different help; for the interval 2022-2023, in whole, it’s deliberate to implement about 15 applications to fight poverty.

Primarily based on the accessible array of collected knowledge on numerous applications and strategies used on the earth to scale back poverty and the outcomes of finding out the expertise of overseas nations on this space, it turns into apparent that the measures applied and launched applications to scale back poverty in Uzbekistan are carried out forward of the suggestions obtained from worldwide companions.

Edvard Romanov, CERR

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