Since transition, the Government has tackled employment problems in conjunction with
economic reform efforts, and the measures adopted have helped to generate employment
opportunities, alleviate the threat of mass unemployment and decrease individual dependency on
the state. However, for the period between 1996 and 2000, about two million new job will need
to be created, and more than 950,000 people will need to be trained or refrained.
6. Poverty
The Report identifies three types of poverty: income poverty (those with incomes which fall
below a certain level of consumption), capability poverty (ability to live a lone life, enjoy good
health, have access to knowledge, particularly vulnerable groups), and social deprivation poverty
(where incomes and capabilities are unacceptably lower than the norms of their community).
It is estimated that 44% of the Uzbekistan population fell in the category of poor, in terms of
income poverty, and this increased to 75% by 1991, during the period of perestroika, due largely
to inflation. It has been relatively stable since then, for which the slight reduction in crime rates
since 1992 is an indicator.
The Report puts forward a set of seven proposals to reduce poverty in Uzbekistan:
a. To reduce income poverty:
1. Resumption of economic growth, so as to assure more sustainable levels of incomes;
2. Emphasis should be placed on employment intensive growth, instead of relying on capital
intensive energy and mineral sectors, so as to absorb the surplus labor in agriculture;
3) Promotion of small and medium-scale enterprises, and the removal of obstacles to their full
expansion;
4)Establishment of a guaranteed employment scheme to provide productive employment to those
working in declining sectors of activities.
a. To reduce capability poverty:
1. Investment in human capital through education and training, to reduce capability poverty;
2. Strengthening of health services, particularly of preventive health services, e.g. water,
smoking, alcohol.
a. To reduce social deprivation poverty:
1. Provision of transfer payments to vulnerable groups, and/or community support groups to
such groups (aged, disabled, women, children, etc.)
In addition, suggestions are put forward to promote social support programs for poor families
and other vulnerable populations, for instance, the disabled and pensioners.
7. Social Trends
The reduction in state budgets for social services of health and education has had a critical effect
on the level of services, causing most funds to be directed towards maintaining only minimal
levels of health care. To offset reductions in state financing, non- governmental financing has