Plunging Poverty Rate Persists in Uzbekistan
Uzbekistan Reports Significant Reduction in Poverty Rates, Yet Controversies Surround Poverty Line Baseline
Tashkent, Uzbekistan - February 4 marked the announcement of Uzbekistan's declining poverty rate by 2.1 percent in 2024, dropping from 11 percent the previous year to 8.9 percent. This decrease reflects the efforts of nearly 720,000 Uzbeks who successfully climbed above the poverty line. Nevertheless, an estimated 3.3 million Uzbek citizens continue to navigate hunger and uncertainty.
According to data from the Ministry of Employment, four regions experienced the most significant decreases in poverty rates – Bukhara, Samarkand, Namangan, and the autonomous region of Karakalpakstan. The government attributed the progress to programs aimed at fostering entrepreneurship and increasing the efficiency of land usage in homesteading and farming. As a result, the average per capita monthly income saw a 10.7 percent increase, reaching 2.1 million Uzbek soum per month, or approximately $161.
World Bank experts have commended Uzbekistan's strides in poverty reduction, citing the government's shift towards globally accepted norms in measuring poverty rates. The country, previously lacking internationally comparable poverty estimates, revised its methodology in 2021 with a goal of reducing the poverty rate by half within five years. This change has led to a significant improvement in the poverty rate, decreasing from 17 percent in 2022 to the current 8.9 percent.
Despite the accolades, concerns persist over the official baseline for calculating the poverty line. Critics argue that the current standard, 669,000 soum per month, or approximately $51, may be too low, underestimating the actual income level required to escape poverty. Sustaining the rapid pace of poverty reduction may necessitate additional efforts from the government to enhance the productive capacity of low-income households.
In rural areas, impoverished Uzbeks are less likely to be employed, have lower levels of education, and have more dependents. Bridging these gaps between households will be critical in combating growing inequality and further reducing poverty. The World Bank emphasized that targeting resources to the most vulnerable and promoting education and employment opportunities are essential in the quest to achieve sustainable improvement in poverty alleviation.
In the quest for sustainable poverty alleviation, the World Bank emphasizes targeting resources towards education and employment opportunities, particularly in rural areas where impoverished Uzbeks are less likely to be educated or employed. To ensure accurate poverty measurements, concerns remain over the official baseline for the poverty line, as critics suggest the current standard may underestimate the income level required to escape poverty, potentially necessitating additional efforts in finance to enhance the productive capacity of low-income households within the business sector.
