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Kyrgyzstan Unveils Ambitious Growth Plans at People’s Kurultai

On December 20, Bishkek hosted the third People’s Kurultai (Congress), a platform for direct dialogue between representatives of local communities from across Kyrgyzstan and the country’s top leadership. The event featured opening remarks by President Sadyr Japarov and a detailed address by newly appointed Chairman of the Cabinet of Ministers, Adylbek Kasymaliyev, who outlined the government’s economic priorities and strategic plans for the future. Japarov set the tone for the event by sharing his vision for Kyrgyzstan’s development priorities. He announced that construction of the long-anticipated China-Kyrgyzstan-Uzbekistan railway will commence on December 27. Kasymaliev, in his address, emphasized Kyrgyzstan’s ability to sustain economic momentum, citing the country’s 9% annual GDP growth rate over the past three years. He highlighted key initiatives aimed at transforming Kyrgyzstan’s economic landscape, including: Strategic Infrastructure Projects: Kasymaliyev underscored the significance of the China-Kyrgyzstan-Uzbekistan railway, which is expected to create new economic centers and logistics hubs, effectively positioning Kyrgyzstan as a "land port" in the region. Hydropower and Renewable Energy: As a reliable partner in Central Asia’s hydropower sector, Kyrgyzstan will continue collaborating with Kazakhstan and Uzbekistan on the flagship Kambarata-1 hydroelectric power plant. Kasymaliyev also announced plans to expand solar and wind energy, eliminate state monopolies in the energy sector, and create conditions to attract private investment. Agriculture and Food Security: The government will prioritize agricultural processing to add value to raw products, ensuring food security and bolstering rural economic development. Construction as an Economic Driver: With construction contributing 7.4% of Kyrgyzstan’s GDP - a tenfold increase since 2013 - Kasymaliyev called the industry a vital indicator of economic growth. He noted that construction has significantly improved citizens' well-being over the past three years. Government’s Strategic Goals Kasymaliyev laid out an ambitious roadmap for the Cabinet of Ministers, aiming for the following by 2030: Economic Growth: Maintaining a GDP growth rate of 9% and achieving a GDP of $30 billion. Income Growth: Raising GDP per capita from $2,500 to $4,000. Economic Transition: Shifting from a services-oriented economy to an industrial-agrarian model. Support for Small and Medium Businesses: Increasing their share in GDP from the current 40.5% to 50%. Poverty Reduction: Lowering the poverty rate to 17%. Education Expansion: Ensuring 80% of preschool-age children have access to kindergarten. Kasymaliyev’s address underscored the government’s commitment to comprehensive economic reforms and regional cooperation. His plans reflected an optimistic vision for Kyrgyzstan’s development while addressing key challenges in energy, infrastructure, and social services.

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World Bank Report Highlights Poverty and Inequality Challenges in Kazakhstan

The World Bank has released its Kazakhstan Poverty and Equity Assessment 2024, urging policymakers to adopt pro-poor fiscal policies, improve education quality, and enhance climate resilience to address poverty and inequality in the country. According to the report, Kazakhstan’s poverty reduction has slowed in recent years despite significant progress since the early 2000s. “Between 2006 and 2021, economic advancement significantly improved living standards and reduced poverty rates in Kazakhstan. However, economic growth has slowed since 2014, and the pace of poverty reduction has fallen. The COVID-19 pandemic exacerbated these challenges, highlighting the need for resilient and inclusive economic strategies presented in this report,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan. Kazakhstan’s economy has grown exponentially since 2006, with an average annual growth rate of 4.7 percent. This growth helped lift 5.9 million people out of poverty, reducing the poverty rate from 49.5 percent to 8.5 percent. However, the report identifies three phases of Kazakhstan’s poverty reduction journey: 2006-2013: Rapid poverty decline driven by strong economic growth. 2014-2016: Reversal during the economic downturn, raising poverty rates. 2016-2021: Resumed poverty reduction but at a slower pace The report highlights that Kazakhstan’s middle-class households with a low probability of falling into poverty grew 2.5 times, reaching 67 percent of the population in 2021 compared to 26 percent in 2006. However, this expansion has stagnated since 2013 due to slower structural transformation and productivity growth. Income inequality has also increased. The Gini index, a measure of inequality (0 = perfect equality, 100 = extreme inequality), rose from 24.3 in 2015 to 26.4 in 2021, driven by faster income growth among high-income households. Although fiscal policies, such as taxation and social spending, have mitigated some inequality, the report recommends making fiscal measures more progressive and pro-poor to maximize their redistributive impact. Poverty rates in rural areas (11.4 percent) remain significantly higher than in urban centers (6.6 percent). The southern Turkistan region now accounts for a disproportionate share of the poor population. Alarmingly, poverty has become more concentrated among children and large families, with children comprising 40 percent of the poor in 2021, up from 27 percent in 2006. The report underscores the critical role of human capital investment in achieving long-term poverty reduction and growth. While access to education in Kazakhstan is nearly universal, significant disparities in quality and outcomes persist. The Human Capital Index indicates that children in Kazakhstan achieve only 53–64 percent of their productivity potential, with regional and socio-economic inequalities exacerbating the issue. Climate-related shocks present additional risks, particularly for rural and vulnerable populations. The report calls for targeted investments in infrastructure and social transfers to build resilience against these challenges. To reduce poverty and inequality, the report suggests: Enhancing fiscal policies through progressive taxation and better-targeted social transfers. Improving education quality and outcomes, particularly for disadvantaged groups. Building resilience to climate shocks by investing in infrastructure and providing targeted support to low-income households. The report concludes that sustained policy reforms will be essential for Kazakhstan to maintain economic progress,...

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Uzbekistan Joins Global Alliance Against Hunger and Poverty

The Republic of Uzbekistan has officially become a member of the Global Alliance to Combat Hunger and Poverty, marking a significant step toward achieving the Sustainable Development Goals and enhancing global efforts to improve food security. This decision reflects Uzbekistan’s commitment to addressing pressing challenges related to hunger, poverty, and inequality on a global scale. By joining the alliance, the country gains access to valuable opportunities for knowledge exchange, international investment, and collaboration on joint programs with other nations and organizations. To date, over 100 countries have joined this initiative. Earlier, on October 9, the United States announced the delivery of 131 tons of food aid to Uzbekistan through USAID. The package, valued at over $435,000, includes vegetables and legumes intended to support more than 33,000 people across 145 facilities, including tuberculosis centers, orphanages, and psychiatric institutions. “At USAID, we collaborate with our partners to deliver life-saving food assistance to the most vulnerable communities in Uzbekistan. By addressing malnutrition and ensuring access to adequate, safe, and nutritious food, we empower individuals to lead healthy, productive lives and build a more stable and resilient world for everyone,” said Anjali Kaur, deputy assistant administrator of USAID’s Bureau for Asia.

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Uzbekistan Engages Elders in Poverty Alleviation Efforts

In a unique initiative, Uzbekistan is involving community elders as mentors to support poor families. This program, outlined in a decree by President Shavkat Mirziyoyev, seeks to reduce poverty and enhance living conditions for disadvantaged populations. Empowering Through Mentorship Under the “From Poverty to Prosperity” program, elders will mentor families in agricultural practices, promoting self-sufficiency through farming. The initiative also assists families in renting mobile stores and obtaining equipment to start small businesses. In addition to economic support, the program encourages healthy living. Mentors will educate families about balanced diets, physical activity, and disease prevention. Elders will also engage citizens in community service and address child-rearing issues within impoverished households. This approach combines the efforts of the state, society, and active citizens, creating a unique model of community-driven poverty alleviation in Uzbekistan. Comprehensive Anti-Poverty Measures The “From Poverty to Prosperity” program aims to lift 500,000 people out of poverty by the end of 2024 and an additional 1 million in 2025. In September 2024, Mirziyoyev approved initiatives focused on entrepreneurship, vocational training, and infrastructure development in low-income areas. In 2025, $1.6 billion will be allocated to infrastructure projects, including installing water pumps and solar panels in 300 underdeveloped neighborhoods. These measures aim to unlock the potential of citizens while encouraging personal responsibility for wellbeing.

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Pathway to Prosperity: Uzbekistan’s Ambitious Plan to Halve Poverty by 2030

A presidential decree, "On taking measures to reduce poverty and increase the population's well-being to a new level," has been adopted in Uzbekistan. Lifting half a million people out of poverty in the remainder of 2024 and a further million in 2025 was defined as the primary task of the state's socioeconomic policy and state bodies and organizations at all levels. The “From Poverty to Prosperity” program will be implemented based on the positive results of poverty reduction from past national experiences and international practices. The program will be implemented from November 1, 2024, based on the doctrine of “Seven Opportunities and Responsibilities for Poor Families.” Within the framework of this program, systematic work is carried out to achieve stable employment and higher incomes, education and vocational training, access to the use guaranteed state medical services, social services, and an overall improvement in living conditions. The “Uzbekistan – 2030” strategy also includes steps to reduce poverty in the country. It was stated that the Ministry of Poverty Reduction and Employment in Uzbekistan will work with Chinese experts and international organizations to develop a strategy for reducing poverty from 2024 to 2030. This will aim to halve poverty by 2026, raise the income of 4.5 million people at risk of falling into poverty by 2030, and lift three million young people out of poverty by utilizing their labor skills. According to data, at the end of 2020, approximately six million people in Uzbekistan lived below the poverty line. While evaluating the results of the transformation programs aimed at solving the problems of poverty, it was noted that in 2023, the poverty rate in Uzbekistan decreased from 17% to 11%, meaning such programs have already helped lift almost two million people out of poverty. It is planned that the poverty level in Uzbekistan will be reduced to 7% in the next three years. This work to reduce poverty has been lauded at the international level. Dr. Ambar Narayan, Manager of the Global Poverty and Equality practice of the World Bank in Europe and Central Asia, for example, has recognized that large-scale work on poverty reduction has been carried out in Uzbekistan since 2020. Naravan believes that prioritizing investment in economic mobility and developing opportunities for vulnerable sections of the population, including youth, women, and inexperienced workers, will help create more productive jobs and reduce hardship. Geoffrey Ijumba, acting head of the UNICEF office in Uzbekistan, has also praised Uzbekistan’s efforts to develop a nationwide action plan to end child poverty. “Prioritizing the problem of child poverty, as well as the development of appropriate measures and programs, will allow Uzbekistan to achieve its goals of reducing poverty, as stated in the ‘Uzbekistan – 2030’ strategy. It will also help achieve the MDG (Millennium Development Goal) targets of ending child extreme poverty and halving it according to the national definition,” Ijumba stated. Global Finance published a list of the poorest countries in the world in 2024 based on the International Monetary Fund's data. Kazakhstan...

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Uzbekistan Targets Further Reduction in Poverty Rate

Uzbekistan has set itself the ambitious goal of reducing the rate of poverty in the country from 11% to 7% in the next three years. To achieve this, the government plans to introduce a series of systematic measures to improve the economic situation of low-income segments of the population. The main emphasis will be placed on the development of the private sector and entrepreneurship, which should lead to the creation of new jobs. In addition to economic measures, attention will be paid to improving the social protection system, improving the quality and accessibility of education, and expanding access to healthcare. Since 2020, Uzbekistan has made significant progress in fighting poverty: the poverty rate has fallen in this time from 17% to 11%. This has been achieved through a comprehensive approach that includes economic and social reforms. In the Syrdarya region, for example, the poverty rate has fallen by 6 percentage points, and in the Andijan region by 5.5 percentage points. The authorities plan to allocate significant funds annually to fight poverty. This money will be distributed to regions and mahallas (local communities) with high levels of poverty, where individual support programs for each family will be introduced. Public control over the implementation of these programs will also be strengthened.