Policy Brief_Uzbekistan Towards 2030: A New Social Protection Model f bunxjnse pwvc en 9 | Page 5

Uzbekistan Towards 2030: A New Social Protection Model for a Changing Economy and Society Figure 5. Uzbekistan 2030: Structural transformation will change the demand for social protection. By 2030 , the share of manufacturing and services in the economy is expected to soar 100 90 80 70 60 50 40 30 20 10 0 45,1 100 90 80 70 60 50 40 30 20 10 0 55 19,5 8 15 26,4 22 9 2012 2030 Extractive Manufacturing Services Agriculture 79,0% 68,5% 66,0% 39,6% 2012 2030 1200 500 1000 400 800 300 600 200 400 100 200 0 0 Employed (% of employable population) Formally employed, % Average wage (2012=100%) 27 9 21,5 13 2012 2030 Agriculture Services 18 16,0% 16 14 12 8,0% 10 8 977 709 6 4 2 2012 2030 0 Recipients of social allowances, thou families Poverty rate, % The expected proficit of Pension Fund will allow cutting PF contributions from 30 . 8% to 17 . 0% 35 Revenues 30 100000 25 80000 Expenditures 60000 20 15 40000 30,8% 10 20000 0 69,5 Growth of personal income and poverty reduction is expected to reduce the demand for social allowances from 977 to 709 thousand families 600 Growth of formal employment will increase Pension Fund revenues thus ensuring its proficit 120000 60 Manufacturing The share of formal employment will nearly double , average wage is expected to increase more than fivefold by 2030 80 70 60 50 40 30 20 10 0 As a result of structural transformations, employment in manufacturing and services is expected to increase 17,0% 5 2012 2030 0 2012 2030 vided through expansion of the enrollment in pre-primary education from 23% to 60% in 2030, expansion of special programs of de-monetized assistance for children (winter clothing etc.) from 2% of government budget to 2,8%, focusing on providing better healthcare services for children etc. More focus will also be put on providing local support services to households at risk. However in this case, a different need will arise — it will be important to help people find employment, to earn decent incomes, to remain involved in economic activities and to maintain their social rights. The system of social protection will need to contribute to creating such opportunities through tak- ing on more of a “promoting” and “transformative” role. In fact, social protec- tion should in the future become more active in “promoting” and “transform- 5 Center for Economic Research Shota Rustaveli street, Tupik 1/5 Tashkent 100070, Uzbekistan Tel: +99871 150-02-02, 281-45-56/57/58/59; Fax: +99871 281-45-48 www.cer.uz The publication reflects opinions and views of the working group, which may not coincide with the official point of view of the Center for Economic Research or UNDP. © Сenter for Economic Research, 2014 (www.cer.uz) © UNDP, 2014 (www.undp.org) UNDP Country Office in Uzbekistan 41/3 Mirabad street, Tashkent 100015, Uzbekistan Tel: +99871 120-34-50, 120-61-67; Fax: +99871 120-34-85 www.undp.uz