Over the past two years, 13,333 families in Kyrgyzstan living below the subsistence level have signed social contracts with the state. Through this initiative, each family received an interest-free loan of $1,700 to start a small business.
According to the Ministry of Labor, the social contract program is designed to help families break the cycle of poverty by providing both start-up capital and practical support. Recipients use the funds to establish businesses, engage in subsistence farming, or purchase tools and equipment. In addition to financial assistance, the program offers training and consulting in sustainable agriculture and income-generating practices.
How the Program Works
Participants can use the funds to acquire equipment, materials, and other business essentials. The initiative has supported the creation of sewing workshops, food production facilities, apiaries, and small-scale poultry farms. Many recipients now produce honey, natural juices, felt goods, and meat products. The program is open to both new ventures and the expansion of existing microbusinesses.
Specially trained consultants guide participants through the process of launching and managing their businesses, helping to increase long-term viability.
Results and Regional Reach
Although the social contract program was launched five years ago, its most significant impact has been seen in the past two years. More than 13,000 families have become self-sufficient and no longer require government aid.
The majority of successful projects have emerged in Kyrgyzstan’s southern provinces, particularly Jalal-Abad and Osh, where rural entrepreneurship has rapidly expanded.
Government data indicates that over 280 different products have been developed through the program. While most are sold domestically, a small number are now being exported abroad.
This social contract initiative is a cornerstone of the government’s strategy to combat poverty and promote self-employment. Authorities emphasize its role in stimulating economic activity in rural areas and encouraging entrepreneurship among vulnerable populations.
