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Society Poverty

Empowering Central Asia: A Unified Approach to Poverty Alleviation

Many developing nations have prioritised the eradication of poverty. They employing various strategies, such as pursuing higher economic growth and more equitable income distribution. These efforts have yielded mixed results, underscoring the importance of caution and awareness of the challenges involved. East Asian countries have made significant strides in eliminating poverty. China has made significant progress, and India has seen more moderate headway. Latin American nations have faced difficulties in reducing poverty due to sluggish economic growth, and unfortunately, poverty has risen in Africa. Extreme poverty has historically not been an issue in Central Asia, because of various support schemes provided by the former Soviet government. Nevertheless, while Central Asia's poverty rates continue to decline, poverty reduction is slowing in some countries. Interestingly, Uzbekistan has made notable progress in reducing poverty since 2021. The poverty headcount rate based on the national poverty line fell from 17.0 per cent in 2021 to 14.1 per cent in 2022 and further declined to 11.0 per cent in 2023. Robust real wage growth was the main driver of the recent poverty reduction. Between 2022 and 2023, increases in wage income accounted for nearly two-thirds of the total poverty reduction. However, wage growth was much higher among skilled workers, especially in urban areas, due to skills shortages in the labour market. The latest official statistics show that the average wage increased the most in the services sectors, with a higher share of high-skilled workers in telecoms, pharmaceuticals, and IT. Consequently, income growth favored the better-off skilled population. Such wage inequality leads to income inequality, measured by the Gini index, increasing from 31.2 in 2022 to 34.5 in 2023. It is also noted that the socio-economic conditions are better in all Central Asian economies than in other developing economies. In Central Asia, poverty reduction has been influenced by several factors, such as implementing a national welfare standard, improved access to quality education, and financial assistance for elderly individuals and households led by single mothers. For example, in Uzbekistan, introducing a national welfare standard in 2021 significantly reduced poverty. The poverty rate decreased from 17 to 11 per cent by 2023, with a more noticeable decline in rural areas (8 percentage points) compared to urban areas (4 percentage points), resulting in approximately 1.6 million individuals being lifted out of poverty. The government's initiatives suggest it is making progress towards halving poverty between 2021 and 2026, indicating a hopeful future for poverty reduction in the region. Notably, the World Bank has recalculated poverty estimates in Central Asia using updated international poverty lines. For lower-middle-income countries -- which globally include Kyrgyzstan, Tajikistan, and Uzbekistan -- the poverty line is set at US$3.65 per day. In contrast, it is $6.85 daily for upper-middle-income countries like Kazakhstan. According to these new poverty lines, approximately five million people are considered poor using the lower-middle income country threshold, and 20 million people are considered poor using the upper-middle income country threshold. These updated poverty lines account for differences in living costs between countries....

Kyrgyzstan Celebrates Independence Day

On August 31 Kyrgyzstan celebrated the 33rd anniversary of its independence. Ala-Too Square in Bishkek hosted a gala concert featuring famous Kyrgyz and foreign artists, while President Sadyr Japarov addressed the nation. “We are a great nation with a strong spirit!", Japarov said. "That is why, on this day, we raise our flag high. Let our country reach new heights, and let the flag wave highly. May our independence never be threatened. I congratulate all of you on our Independence Day!” Japarov also played the komuz, a Kyrgyz string instrument. The centerpiece of the Independence Day celebrations was a drone show. In the sky above Ala-Too Square, drones created images of Kyrgyzstan, and portraits of national heroes and athletes. On August 31 festivities took place throughout the country. [caption id="attachment_22518" align="aligncenter" width="2048"] @president.kg[/caption] On August 31, 1991, Kyrgyzstan officially withdrew from the USSR and declared its independence. Economist Nurgul Akimova said Independence Day is not just a national holiday but a symbol of economic and political independence: “On this day, I reflect on how our country, having become independent, began to build its economic policy, focusing on the needs and opportunities of its people. Economic independence is not just freedom from external control but the ability to independently determine the trajectory of development. In the context of globalization, when small economies often face pressure from more powerful players, preserving sovereignty and independence requires competent management and a deep understanding of how to integrate into the global economic system profitably. This day reminds me of the importance of economic policies aimed at social equity and sustainable development. It prompts reflection on how our country can use its resources and potential to improve the lives of all citizens. Economic independence is not an end but a means to create a just society where everyone can realize their potential. Independence Day reminds us that economic stability and prosperity are impossible without responsible governance and transparent institutions. It is also a reason to consider integrating into global markets. Still, on terms that will contribute to Kyrgyzstan's long-term development, not just short-term gain". [caption id="attachment_22519" align="aligncenter" width="2048"] @president.kg[/caption] Civic activist Mars Cherikchiyev told The Times of Central Asia that Independence Day is about family security and confidence in the future of children. “I liked President Japarov's speech, which talked about Kyrgyzstan's achievements and plans for the future. Good work is being done in all sectors of the economy, and foreign investors see this. We are creating our infrastructure, opening regional airports, building internal roads, and cooperating with neighbors. We are gaining confidence for the future. Improving economic terms and general welfare for citizens is independence,” Cherikchiyev said. [caption id="attachment_22520" align="aligncenter" width="2048"] @president.kg[/caption]

Quality of Life Car insurance Society Insurance Legislation Economy

Kyrgyzstan Introduces Law on Compulsory Home and Car Insurance

From September 2024, when re-registering cars, owners must provide a contract on compulsory civil liability insurance. The same applies to real estate. The law was adopted eight years ago, but has been delayed under public pressure. According to the State Insurance Organisation (SIO), the introductory amount of car insurance is 1,680 KGS ($20). The final amount will be affected by driving experience, driver age, and engine displacement. The legal department of the State Insurance Organization explained to The Times of Central Asia that a vehicle's insurance policy will be required when it is re-registered with the state authorities. “Employees of the State Insurance Organization are at the places of registration of motor vehicles throughout the country and will issue MTPL insurance policies on the spot. The average amount of MTPL insurance for passenger cars will range from 2,000 to 4,000 KGS ($25-45),” said Ulukbek Nishonov, head of the legal department of the State Insurance Organization. Fifteen private insurance organizations will also insure cars. The law on compulsory car insurance in Kyrgyzstan was adopted more than eight years ago. Nevertheless, no sanctions have been imposed for non-compliance with the law. Most Kyrgyz motorists considered compulsory insurance a “waste of money.” Now, the authorities have figured out how to force everyone to insure their cars, even those without insurance policies or car registration. At the same time, ordinary citizens will not be fined for the lack of insurance. Officials claim that compulsory insurance is a social project. It is worth noting that the law on compulsory real estate insurance also came into force on August 26, 2024. Here, just as in the case of car insurance, citizens will be obliged to insure their property against fire and natural disasters only when re-registering housing. In other cases, it can be done voluntarily. At the same time, the state holds a monopoly on residential property insurance.

Social Poverty Society Population reduce poverty low income

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.

Education Central Asia Healthcare UN Society Family Children UNICEF

UNICEF: Central Asia Must Work To Keep Children Out Of Alternative Care

About 60,000 children across the five Central Asian countries remain in alternative, care despite the known and devastating effects of family separation and child institutionalization, according to a new policy report released by UNICEF. Regina De Dominicis, UNICEF Regional Director for Europe and Central Asia, highlighted the dire and lifelong consequences of institutionalization for children and stressed the need for more investment in family support services. “We have seen progress in recent years in reducing the number of children in alternative care – including the closure of institutions. We must continue this work so that no child is ever placed in alternative care because of poverty, disability or challenging behavior, or because their family lacks access to services they need to care for their child at home,” she said. The report states that 203 children per 100,000 in the region live in care institutions, nearly double the world average of 105 per 100,000. While progress has been made in reducing the overall number of children in institutions, the report notes that children with disabilities are disproportionately represented in these homes. Between 2015 and 2021, the proportion of children with disabilities in residential institutions increased in all Central Asian countries except Kazakhstan, indicating persistent social norms and a lack of social services for these children. UNICEF emphasizes the need to close institutions and support families to prevent unnecessary placement of children in residential care. The organization offers a comprehensive approach to ensure that all children, regardless of their circumstances, grow up in a family environment: 1. Implement effective childcare reforms to keep children with their families where possible, including planning to close large-scale institutions and develop a comprehensive continuum of child and family support and protection services. 2. Investment in a range of child and family support services, including statutory family support services and a strong social service workforce, for the early identification of and intervention in situations when children are at risk of separation. 3. Securing family-based alternative care, including stronger support for extended family members who care for children and strategies to keep siblings together where possible. 4. Protecting children who are already in alternative care against violence, neglect, and abuse through robust safeguarding policies and practices. 5. Investing in more and better data on children who are at risk of family separation, in alternative care, or who have left care. 6. Raising public awareness of the benefits of keeping families together and the urgent need to prioritize family-based care. 7. Ensuring that children have a voice in the decisions that affect them and are consulted when new policies and practices are developed to meet their needs and rights. UNICEF works with governments and partners in Central Asia to keep and support families and community-based care. This also includes implementing deinstitutionalization policies, expanding family support services to prevent separation, а family reunification, and facilitating safe transitions to independent living.

Society

U.S. Embassy Supports Future Rural Teachers in Kyrgyzstan

The U.S. Embassy is reporting that 33 participants in the 'Teach for Kyrgyzstan -- Zamanbap Mugalim' project, which it is supporting, will begin teaching in rural schools in the Chui region in September. A summer school called Jaratman, which translates to “creators”, will offer four weeks of training and development for future teachers and other educators. The 'Teach for Kyrgyzstan' project will raise funds to place participants in ten pilot schools in the Chui region in the fall of 2024. Schools were selected by staff from the country's Ministry of Education, as well as educational institutions and public organizations. “The mission of the [project] is to help children reach their potential, and this institute is one step toward achieving that goal for the children of Chui [region] here in the Kyrgyz Republic,” American ambassador Lesslie Viguerie said of the project.