Revolutionary changes in poverty reduction — the question «Is there collateral?» is now banned

A historic meeting chaired by President Shavkat Mirziyoyev is taking place, dedicated to introducing a completely new system for poverty reduction and ensuring public employment. Pursuant to the head of state's instruction, all heads of the republic's economic complex stayed in Khorezm region in full composition for two weeks to study the mechanism of working with poverty from within. Based on these analyses, a new system coming into force nationwide, along with unprecedented independence and financial powers granted to districts, was announced.

The real picture in Khorezm: 9.5 thousand vacant jobs and the fate of 48 thousand children

During the two-week study, the living conditions of 81 thousand poor residents, that is, 19 thousand families in Khorezm region, were thoroughly analyzed:

• The paradox of unemployment and vacancies: It was revealed that the studied families have 12 thousand unemployed and 10 thousand low-income citizens. Meanwhile, local entrepreneurs themselves have 9.5 thousand vacant jobs (need for 4 thousand in construction, 3 thousand in services, and 2.5 thousand workers in industry);

• Opportunity to increase the income of 10–15 thousand people: It was determined that training the population in quick professions in accordance with the demands of enterprises can make this many people gainful;ubs;

• Working with children and youth: 48 thousand children are being raised in poor families. Despite having 1–2 technical schools and 4–5 training centers in each district, there was no special program to involve these youth in early vocational training. Now, free clubs will be opened for them in schools and training centers;

• Care for women and the elderly: More than 10 thousand women cannot work due to childcare (kindergarten coverage in such families does not even reach 75 percent). Additionally, social assistance will be strengthened for 526 elderly and disabled individuals in need of care, creating conditions for family members caring for them to work;

• Dual education: 646 college and university students will study and practice simultaneously based on new production projects in the region, earning income.

Hokims in the field and mahalla 3 days a week: The question «Is there collateral?» is banned

The Khorezm experience will now be applied to all regions, and the executive system is switching to an emergency work mode:

• 3 days a week dedicated solely to poverty issues: Regional, district, and city hokims, together with the heads of the entire economic complex, will dedicate three days of the week exclusively to poverty reduction and job creation;

• District headquarters will be established: A special headquarters headed by the hokim will be created in each region, with banks and employment departments attached to it;

• Sharp criticism of bankers and hokim assistants: It was pointed out that officials still do not understand new financial tools — leasing, factoring, guarantees, insurance, and working capital. "Hokim assistants and bankers still ask entrepreneurs the question 'Is there collateral?' before preparing a project," the head of state criticized. Loan repayment schedules will now be determined individually based on the nature of the business (agriculture, trade, or production).

3.2 trillion soums at the disposal of districts and up to 5 billion soums in unsecured loans

The most important revolutionary aspect of the new system was the complete transfer of funds and decision-making authority to the district level:

• 3.2 trillion soums under the authority of headquarters:

  • Family entrepreneurship resources — 1 trln 370 bln soums;

  • Funds of the three "notebooks" — 760 bln soums;

  • Youth entrepreneurship — 450 bln soums;

  • Entrepreneurship company compensation balance — 300 bln soums;

  • Poverty Fund — 240 bln soums;

  • Employment Fund — 100 bln soums.

• Complete independence: The district headquarters will independently decide on-site whether a loan is issued in cash or non-cash, extending payment deadlines, allocating subsidies or interest-free loans without asking permission from Tashkent;

• Huge privileges for leading entrepreneurs: A major path has been opened for business representatives who have provided income to poor families — entrepreneurs cooperating with 10 families will be allocated up to 500 million soums, and those employing 100 families will be allocated completely unsecured loans of up to 5 billion soums;

• "Green light" for those with damaged credit histories: Projects of needy families who previously had delays in loan payments will also be individually reviewed, and they will be re-allocated preferential funds.

This unprecedented reform breaks the old centralized bureaucratic chain, allowing each district to independently solve its problems with large financial resources.

In your opinion, will granting districts 3.2 trillion soums of authority and having hokims visit mahallas three days a week help eradicate poverty faster? Are the leading entrepreneurs in your mahalla ready to provide jobs for hundreds of families and get a 5-billion unsecured loan? Leave your thoughts in the comments!