Uzbekistan has witnessed substantial economic growth over the past two decades, accompanied by a remarkable decline in poverty rates from 24% in 2000 to 11.5% in 2020, uplifting 2.2mn individuals out of poverty, the UNDP report reveals.
However, the COVID-19 pandemic has introduced new challenges, potentially pushing an additional million people into poverty. Additionally, geopolitical tensions, labor migration, energy crises, and environmental issues have compounded the complexity of poverty alleviation efforts.
Ambitious Goals Amidst Challenges
Despite these challenges, Uzbekistan has set ambitious targets of halving poverty by 2026 and attaining upper-middle-income status by 2030, as outlined in the New Uzbekistan Development Strategy for 2022-2026 and the Uzbekistan-2030 Strategy. Achieving these goals necessitates heightened efforts and investments towards fostering a sustainable and inclusive market economy.
Traditionally, poverty estimation in Uzbekistan relied primarily on income indicators. However, recognizing the limitations of this approach, the government has embraced the Global Multidimensional Poverty Index (MPI) methodology.
This method, developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), provides a comprehensive view of poverty by assessing deprivations in health, education, and living standards.
Key Findings from the Pilot National MPI
Findings from the pilot National Multidimensional Poverty Index (N-MPI), conducted in collaboration with various international agencies, reveal significant insights:
- Approximately 18.4% of the adult population, equivalent to 4.2mn individuals, experience multidimensional poverty.
- The average intensity of poverty is 43.7%, indicating substantial deprivation across various indicators.
- Educational attainment, food security, and informal employment emerge as the primary contributors to multidimensional poverty.
- Rural areas, particularly regions like the Republic of Karakalpakstan, Namangan region, and Tashkent region, exhibit higher poverty rates compared to urban areas.
- Gender disparities exist, with a higher incidence of poverty observed among the male population.
Recommendations for Policy Action
To address these challenges and effectively combat poverty, several recommendations are proposed:
- Incorporate the questionnaire utilized for the pilot N-MPI into the Household Budget Survey (HBS) for ongoing poverty measurement.
- Establish the final N-MPI as a dynamic 'poverty tracking tool' based on regular HBS data collection, facilitating biannual updates and informed policy decisions.
As Uzbekistan remains committed to achieving Sustainable Development Goal 1 of ending poverty in all its forms by 2030, the adoption of a multidimensional approach to poverty measurement represents a significant step towards realizing this vision.
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