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How Uzbekistan makes use of the amassed expertise in poverty discount and social safety.
In accordance with the most recent World Financial institution report “Poverty and Shared Prosperity 2020” – about 3.3 billion individuals on this planet 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% (towards the forecast for 2021 of seven.9%). – writes Edvard Romanov, CERR
On the similar time, Uzbekistan has performed numerous work in recent times to cut back poverty and strengthen social safety of susceptible segments of the inhabitants, and the “Growth Technique of the New Uzbekistan for 2022-2026” units a objective to halve the poverty stage. To realize 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 during which they can not fulfill a sure vary of their minimal wants crucial for all times, preservation of working capability and procreation. As a rule, poverty restricts entry of a major a part of the nation’s inhabitants to high-paying jobs, high quality training and well being providers, alternatives for profitable socialization of youngsters and youth, and many others. As a result of the truth that this phenomenon is determined by the final lifestyle in a selected society, it’s thought-about that it belongs to relative ideas. However, poverty stays the principle international downside and impacts most international locations 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 wouldn’t 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 satisfy fundamental 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 reasonable poverty (when the subsistence minimal is supplied, however there isn’t a prosperity).
Specialists agree on the definitions of the unfavourable penalties of poverty for the socio-economic growth of any society and state, specifically: financial progress 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 training and work {qualifications}, proceed the vicious circle of poverty within the household from technology to technology.
Worldwide organizations on poverty
The will to unravel the issue of poverty by any means is a pure precedence for any trendy civilized state and for all the world neighborhood.
When growing their packages and tasks, the World Financial institution, UNDP, FAO, UNICEF and different worldwide organizations give precedence to the issue of poverty discount. In accordance with 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. Because of the penalties of the coronavirus pandemic, native conflicts and local weather change, it’s predicted that an extra 88 to 115 million individuals can be in excessive poverty.
In accordance with the suggestions of the World Financial institution, a profitable struggle towards poverty requires a mixture of total financial progress within the nation, creating extra demand for labor, considerate investments in human capital and social safety of the poor and susceptible segments of the inhabitants.
Forming of the Uzbek mannequin
As identified, any mannequin is predicated on the gathering and research of data on the subject underneath 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 strategy methodology in fixing points associated to poverty discount, during which it was proposed to evaluate the poverty of a single household based mostly on a mixture of numerous components, from the angle of the dwelling situations in a selected locality. In accordance with this system, approaches to the event of poverty discount measures and the measures themselves needs to be developed based mostly on particular situations on the bottom, and their effectiveness needs to be proved by sensible software and the outcomes obtained by means of area analysis.
At current, essentially the most outstanding and indicative within the area of combating poverty is the expertise of China, which has managed to take away virtually 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 large array of data 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 type its personal “Uzbek mannequin” to fight poverty.
Throughout the video-conferences over the previous two years, together with the primary quarter of this yr, held underneath the chairmanship of the President, clear and cardinal directions got to speed up the reform of essential areas of the financial system and public life, together with these associated to strengthening the struggle towards poverty and organizing social safety for susceptible segments of the inhabitants. Accountable departments had been additionally established and particular positions had been created within the system of state energy, specifically, 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 idea of door-to-door visits, a database has been fashioned, which is popularly referred to as the “Iron Guide”, to supply susceptible segments of the inhabitants with social, financial, authorized and psychological help. Additionally, by analogy, “Girls” and “Youth” notebooks had been fashioned 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 accumulate data and a occupation.
Unemployed individuals normally have difficulties to find the cash they should get a occupation and grasp {qualifications}. That’s the reason the state allocates funds for the creation of 1000’s of non-governmental academic facilities all through the republic, educating professions and crafts in demand on the labor market, which have been referred to as “Monomarkaz: ishga marhamat”. As well as, in 2021, the Nationwide Financial institution obtained $100 million from the Reconstruction and Growth Fund, which can 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 a web-based format. Younger individuals who have efficiently accomplished these programs can be given certificates and preferential loans.
It needs to be famous that since April 1, 2021, a brand new mechanism for accounting for the poor has been launched by getting 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 extra provision of the mandatory 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 arrange the actions of assistants to the khokims on entrepreneurship growth, employment and poverty discount within the makhalla” had 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 arrange 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 industrial 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 fashioned.
Duties to be solved
It needs to be famous that from the second when the course was taken to cut back poverty, the prices of social safety of individuals in Uzbekistan are rising from yr to yr. 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 training 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 embrace elevating salaries and advantages forward of inflation and stimulating entrepreneurship. At present, 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 energetic work is constant to develop a technique for outlining the idea of poverty, standards and strategies for its evaluation.
Originally of January this yr, 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 information on minimal shopper spending of the inhabitants had been collected. Based mostly on the information obtained on account of this survey, the “minimal shopper bills” for the mandatory each day consumption of meals (2,200 kcal), in addition to the acquisition of non-food items and providers amounted to 498 thousand sums per individual per thirty days (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 objective to cut back the variety of poor within the nation by half by 2026. To realize this objective, the Technique offers for reforms in training, healthcare and pensions, measures to additional strengthen the social safety of susceptible 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 complete, it’s deliberate to implement about 15 packages to fight poverty.
Based mostly on the out there array of collected information on numerous packages and strategies used on this planet to cut back poverty and the outcomes of learning the expertise of international international locations on this space, it turns into apparent that the measures applied and launched packages to cut back poverty in Uzbekistan are carried out forward of the suggestions obtained from worldwide companions.
Edvard Romanov, CERR
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