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0SOLUTIONS TO POVERTY IN UZBEKISTAN: A MULTIFACETED APPROACH
Amirdjanova S.S.
PhD, Tashkent State University of Economics https://doi.org/10.5281/zenodo.11241826
Abstract. Poverty is a complex and pervasive issue in economics that affects millions of individuals and families around the world. It is characterized by a lack of access to basic necessities such as food, shelter, and healthcare, as well as limited opportunities for education and employment. Poverty can have devastating effects on people's physical and mental well-being, leading to malnutrition, illness, and despair.
Keywords: poverty, solutions, economics, multifaceted approach, global challenge, increasing employment, reducing unemployment.
Introduction
Currently, the study of reducing poverty, increasing employment and welfare of the population is relevant not only at the global level, but also one of the most important tasks for the economy of Uzbekistan. As the President of the Republic of Uzbekistan noted, "that in 2022, the poverty level in the republic decreased from 17.0% to 14.0%, 1 million citizens were lifted out of poverty. In achieving such results, the decisive factor is the ongoing systematic and thoughtful policy aimed at training the population in modern professions, creating decent jobs, and comprehensive support for entrepreneurship. By expanding the scope of social services in the country's mahallas, more than 2 million 300 thousand needy families, women, single elderly people and persons with disabilities are fully covered by the social protection system. [1]
As a result of ongoing reforms in Uzbekistan to support entrepreneurship by the end of 2023 share of small businesses and private businesses Entrepreneurship in GDP is 65.9%, in the volume of industrial products 40.6%, in the volume of agricultural products 98.4%.
Poverty is a complex and persistent global challenge, demanding multifaceted solutions that address its root causes and empower individuals to escape its grip. While there is no one-size-fits-all approach, several key strategies can contribute to poverty reduction:
Progress and Challenges:
1. Poverty Reduction: Since gaining independence in 1991, Uzbekistan has witnessed a substantial decline in poverty rates. Government initiatives, economic reforms, and social programs have contributed to this progress.
2. Rural Poverty: Poverty remains more prevalent in rural areas, where access to basic services and economic opportunities is limited.
3. Vulnerable Groups: Women, children, the elderly, and people with disabilities are disproportionately affected by poverty and require targeted interventions.
4. Informal Economy: A large informal sector poses challenges in terms of social protection, job security, and access to finance.
5. Regional Disparities: Economic development and poverty reduction vary across regions, with some areas lagging behind.
Government Initiatives and Strategies:
¡.National Development Strategy: The government has implemented a comprehensive development strategy focusing on economic diversification, human capital development, and social protection.
2. Poverty Reduction Programs: Targeted programs aim to improve access to education, healthcare, housing, and social assistance for vulnerable populations.
3. Rural Development: Initiatives promote agricultural modernization, infrastructure development, and access to finance in rural areas.
4. Social Protection System: The government is strengthening the social protection system to provide a safety net for those in need.
In the world in recent years, the incidence of extreme poverty has decreased from 37.8% to 8.4%. The World Bank's 2022 report projects that global extreme poverty is expected to fall to 6.8% by 2030, well above the 3.0% target. As part of the Sustainable Development Goals (SDGs), which aims to end extreme poverty by 2030. [2]
Method
To analyze the level of poverty in Uzbekistan, a set of methods was used, including analysis of statistical data, official reports of international organizations, and research by local experts in the field of economics and sociology.
Literature review
The works of the following national scientists, such as Berkinov B.B., are devoted to the current state of macroeconomic stability, economic growth and solutions of poverty, explanation of the complexity and diversity of macroeconomic reality and understanding of what is happening with the economy of Uzbekistan. (2022).
An analysis of the authors' scientific works allowed us to conclude that it is necessary to develop theory and practice in the field of employment, where the issues of increasing the employment of youth and women in the context of using the potential of human capital will find their solution. This issue requires the development of appropriate mechanisms for planning and forecasting demand and supply in the labor market for young personnel, increasing their competencies through content education and professional training, which will increase their mobility and employment, and reduce unemployment.
Analysis and Results
As per a recent report from the Centre for Economic Research and Reforms (CERR) and the UN Children's Fund, Uzbekistan has also experienced a decrease in child poverty. The study indicates a decline from 21.5% in 2021 to 13.7% in 2023. The Navoi region and Tashkent city exhibit the lowest child poverty rates, while the Syrdarya and Jizzakh regions demonstrate higher levels. By analyzing data from a household budget survey covering over 16,000 families nationwide, researchers observed notable variations in poverty reduction between rural and urban areas. Rural child poverty rates decreased from 24.6% to 14.5%, while urban rates saw a drop from 18% to 13%. The research indicated that the lack of social transfers may elevate the general poverty rates from 11% to 20.8%, child poverty from 13.7% to 21.8%, and poverty among pensioners from 7.3% to 31.4%. This underscores the significance of the social protection system in mitigating poverty. [3]
To reduce poverty, first of all, it is necessary:
* Investing in Human Capital: Prioritizing education, skills development, and healthcare is crucial to empower individuals and break the cycle of poverty.
* Promoting Inclusive Growth: Policies should focus on creating decent jobs, supporting small and medium enterprises, and ensuring equal opportunities for all.
* Strengthening Social Protection: Expanding social safety nets and improving targeting mechanisms can provide a buffer against economic shocks and vulnerabilities.
* Empowering Women: Investing in women's education, health, and economic participation is essential for poverty reduction and sustainable development.
* Regional Development: Tailored strategies are needed to address the specific challenges and opportunities of different regions.
International Cooperation. Uzbekistan's efforts to combat poverty benefit from partnerships with international organizations and development partners. Continued collaboration is crucial to share best practices, access technical expertise, and mobilize resources.
Conclusion. Poverty is a complex challenge requiring comprehensive and multifaceted solutions. By addressing the economic, social, and environmental factors that contribute to poverty, and by empowering individuals and communities, we can create a more just and equitable world. While significant progress has been made, Uzbekistan faces ongoing challenges in its fight against poverty. By implementing comprehensive strategies, investing in human capital, promoting inclusive growth, and strengthening social protection, Uzbekistan can build a more equitable and prosperous future for all its citizens. Improving the welfare of the population of Uzbekistan is a strategically important task that is consistently solved. However, in later periods, the fight against poverty was consistently introduced into state economic policy and was formalized as national goal, taking into account the development and implementation of strategic programs and plans for the development of Uzbekistan.
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