Politics

Have Poverty Rates Decreased?

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According to the United Nations, 1.2 billion people lived in poverty worldwide in 2022. But what about Uzbekistan? To be honest, until 2020, we knew nothing about it because it was not openly discussed. Were there no poor people before then? Of course, there were. But no one knew the exact number of poor people in Uzbekistan because, for years, neither the term nor the existence of a poor population in the country was acknowledged.

It was only in 2020 that the President of Uzbekistan spoke from an official podium about the country’s poverty level and the fight against it. At that time, our leader announced that the poverty rate in our country was around 12-15 percent. This means that 4-5 million people lack sufficient income sources and need social protection. Poverty has always existed and is present in every country. This cannot be denied. The main issue is how to fight against poverty, how state and society efforts are united and directed towards a clear goal. The key is to approach the problem correctly. Considering this, the issue of reducing poverty came to the forefront.

How is Uzbekistan Fighting Poverty?

A few years ago, the Ministry of Economic Development and Poverty Reduction was specially established to regulate the processes of reducing poverty. With the involvement of international experts, it was decided to develop a Poverty Reduction Strategy until 2030. Together with local state and public representatives, “iron books” were created to support needy families and those requiring material assistance and support.

It was established as a nationwide movement to reduce poverty levels in the regions, actively support small businesses and family entrepreneurship, improve the system of vocational training, and provide targeted support to the needy population.

In 2021, for the first time in Uzbekistan, the legal basis for the concept of poverty was established. Accordingly, minimum social standards and the poverty line were set, with minimum consumption expenditures defined as the measure of poverty in the country.

To determine eligibility for children’s allowances and material assistance, the monthly income per capita was equated to the minimum consumption expenditures, i.e., the poverty line.

Minimum consumption expenditures (the cost of more than 30 types of food and non-food goods and services) were adopted as the poverty criterion, and families with income below this amount were entitled to receive low-income benefits.

Another Important Issue

A social protection strategy for the population was adopted until 2030. The National Social Protection Agency under the President of Uzbekistan, its branches in all regions, and “Human” social service centers in every city and district of the republic were established.

“The national poverty line based on minimum consumption expenditures was approved.

For Information:

As a new measure of poverty in Uzbekistan, minimum consumption expenditures were introduced. The amount was 440,000 soums in 2021, and from January 2022, it was set at 498,000 soums. Later, this amount was increased from 498,000 soums to 568,000 soums in July 2023, and from January 2024, it was increased from 568,000 soums to 621,000 soums. As of May 1 of this year, in light of rising electricity and gas tariffs, it has been set at 648,000 soums.

Laziza Sherova, Correspondent of “Uzbekistan Voice”.