Low-income families who receive cash benefits from the state will now be able to sign a social contract with the state – as long as recipients have a real business plan, according to a report by the Ministry of Labor, Social Security and Migration of Kyrgyzstan.
As part of the fight against poverty in 2024, 20,000 families will enter a social contract with the state. According to the Ministry of Labor, priority will be given to those with three or more children or people with disabilities. The ministry emphasized that the money can also be allocated to families for the development of existing businesses. Businesses will need to comply with the state program, “One Village – One Product.”
“It is supposed to produce from local resources, develop skills of producers in terms of business management, marketing and expanding opportunities for product sales, promoting products in local and international markets, creating local brands and increasing the value of products,” the Ministry of Economy and Commerce stated in describing the program.
The “One Village – One Product” project has been underway in the Issyk-Kul region for many years and is showing good results. New jobs are being created and the region is seeing increased profits, including from exporting products abroad. Previously, this project was supported by Japanese humanitarian organizations working in Kyrgyzstan.
“The project helps domestic entrepreneurs to produce quality certified products exclusively from local resources. Over the last six years, thanks to the project, local producers have signed 167 export contracts totaling 238 million som,” ($2,670,000) the Ministry of Economy emphasized. The Ministry of Labor, in turn, said that over the past few years it has allocated money to 13,000 low-income families who have opened their own businesses. The project produces honey, natural juices and jams from local fruits, felt products, as well as meat products.
“Income from the realization of business projects in 2023 helped to improve the lives of 55,400 people, of which 33,500 are children. Eighty percent of these children previously received a need-based allowance… Now, thanks to the Social Contract program, all families earn their own income and do not need government support,” the Minister of Labor, Social Development and Migration, Gulnara Baatyrova said. According to the ministry, the majority of successfully implemented projects were in the Jalal-Abad and Osh regions.
According to the Ministry of Economy and Commerce, 280 products have been developed over five years that are successfully sold in domestic and foreign markets. Many of these entrepreneurs’ products, although not yet produced in large volumes, are supplied to Japan, China, South Korea, the U.S. and Europe.
