Uzbekistan's experience in the global fight against poverty was discussed at the International Forum in Tashkent

The II International Forum on Poverty Reduction has completed its work. Within the framework of 6 thematic panel sessions, a wide range of issues were discussed, problems and proposals for developing countries were voiced. The progress made in Uzbekistan in the field of poverty reduction was noted, despite such challenges as the COVID-19 pandemic, instability of the world economy, etc.

Nobel Laureate Abhijit Banerjee, speaking about the reforms aimed at combating poverty in Uzbekistan, focused on the tools used to create social programs, increase the targeting of support for the poor, develop entrepreneurship, and understand the effectiveness of various programs adopted.

May 22, 2023. The II International Forum on the topic "Implementing Best Practices in Poverty Reduction", organized by the Center for Economic Research and Reforms (CERR) jointly with the Ministry of Employment and Poverty Reduction of the Republic of Uzbekistan, with the support of the United Nations Development Program and the United Nations Children's Fund in Uzbekistan in Uzbekistan has completed its work.

The Forum was attended by over 300 participants, including over 100 well-known experts from reputable international organizations and partner states.

Advisor to the President of the Republic of Uzbekistan on the development of economic sectors, implementation of investment and foreign trade policy Ravshan Gulyamov read the Message of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the participants of the Forum.

The Message emphasizes the irreversible nature of the reforms in the field of poverty reduction, which have reached a new level, based on the principle of “person – society – state".

In order to fully implement the social obligations of the state, as well as the development of human capital, five key areas in the fight against poverty were identified.

Firstly, the creation of the most favorable conditions for the private sector and entrepreneurship.

Secondly, the acceleration of the implementation of targeted support programs for poor families within the framework of the “social register” system based on an individual approach.

Thirdly, the provision of more than 100 social services in mahallas to persons with disabilities, women, citizens in need of special attention.

Fourthly, an increase in the amount of funds allocated through the “open budget” system for projects chosen by the population themselves.

Fifthly, the expansion of work to ensure the rights of everyone to access quality education and medical services.

Deputy Prime Minister of the Republic of Uzbekistan Jamshid Kuchkarov, Minister of Employment and Poverty Reduction of the Republic of Uzbekistan Behzod Musayev, Nobel Laureate in Economics, member of the US National Academy of Sciences Abhijit Banerjee, Director General of the French Development Agency Remy Rioux, Professor of Economics at George Washington University James Foster, Director of the Oxford Poverty and Human Development Initiative Sabina Alkire, Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic Edil Baysalov and others addressed their parting words to the participants of the Forum.

The Forum highly appreciated the active actions of Uzbekistan in the fight against poverty and inequality. It was noted that more than 2 million 300 thousand needy families, women, single elderly and persons with disabilities are fully covered by the social protection system.

As Remy Rioux noted, active economic and political reforms have changed the role and place of Uzbekistan at the international level. According to him, Brussels and Paris are closely monitoring the achievements of the country, where the fight against poverty is combined with ecology – reducing emissions into the atmosphere, improving access to clean drinking water.

Abhijit Banerjee, Alfred Nobel Prize Laureate in Economics, noted the most important areas of further research for the formation of anti-poverty policy. Speaking about Uzbekistan, the professor highlighted the tools that are used in our country to create social programs and the targeting of reforms.

"All this is quite a difficult job, but I am glad that your country is showing other countries by its example how to fight poverty. Standing here today, I feel the spirit of change in this country and I am proud that I can say with you: "Let's do it," the Nobel Laureate noted.

Deputy Prime Minister of Kyrgyzstan, Edil Baysalov, noted that Uzbekistan today is the engine and heart of the whole of Central Asia.

"The reduction of poverty in Uzbekistan in 2022, despite the difficult global situation, is sensational not only for the Central Asian region, but also for the whole world. We are delighted with the reforms in your country and are ready to learn from your experience. In the autumn we will have a similar event, I invite experts to take part in it. Thanks to the political will of the leaders of our two countries, the borders are one hundred percent agreed today, this has significantly improved the tourism potential of both Kyrgyzstan and Uzbekistan," the Deputy Prime Minister said.

Within the framework of the Forum, a plenary session was held to study Uzbekistan's experience in poverty reduction, moderated by Obid Khakimov, Deputy Adviser to the President, Director of the Center for Economic Research and Reforms.

Reports were made by the Minister of Poverty Reduction and Employment of the Population of the Republic of Uzbekistan Behzod Musayev, Minister of Overseas Pakistanis and Human Resources Development Sajid Husain Turi, Professor of the Elliott School of International Affairs at George Washington University James Foster, Director of the International Center for Poverty Reduction in China Liu Junwen, UN Resident Coordinator in Uzbekistan Consuelo Vidal Bruce and other.

UNDP Resident Representative in Uzbekistan Matilda Dimovska noted the determination to support the efforts of the Government of Uzbekistan in further reforms to eradicate poverty.

"We are determined to support the efforts of the Government of Uzbekistan to adapt its strategies in accordance with the context of the country to reach the least affluent segments of the population, taking into account the latest data and analysis of people's needs and capabilities. To this end, UNDP supports the development of a multidimensional poverty measurement tool for Uzbekistan. UNDP accompanies Uzbekistan on the way to solving numerous aspects of poverty through the creation of inclusive jobs, gender equality, human potential, rural development and, of course, the transition to a green economy and digitalization," the head of UNDP in Uzbekistan noted.

Munir Mammadzade, UNICEF Representative in Uzbekistan, noted the commitment of the UN Children's Fund to support comprehensive national strategies to combat child poverty in Uzbekistan.

"UNICEF is fully committed to supporting comprehensive national strategies to address child poverty in Uzbekistan. It is imperative to prioritize investments in early childhood development, health, education, and social protection. By doing so, Uzbekistan can harness the demographic opportunity and position itself as a trailblazer in human capital development within the region," noted UNICEF Representative in Uzbekistan.

At the end of the plenary session, A.Banerjee while answering journalists' questions, spoke about J-PAL's cooperation with CERR.

"I think the biggest advantage that we have seen after working with the Center for Economic Research and Reforms is a serious approach to research and a real commitment to the cause. I see that there are many specialists here who are ready to fight poverty and, at the same time, the country's leadership has a firm conviction that the fight against poverty is an important task. And we, for our part, offer a scientific approach to implement this task, and I think that such a combination of efforts of our organizations will eventually bring effective results," the co–founder of the global initiative to combat poverty summed up.

Following the Forum, a number of cooperation documents were signed and new joint projects were announced, including the signing ceremony of a Memorandum of Cooperation between CERR and J-PAL.

Within the framework of the Forum, foreign experts and partners visited the regions of Uzbekistan, the ongoing work on the field based on the “makhallabay” system was presented on the example of the makhalla “Madaniyat” in the Bukhara region. Based on the results of the study of work in the regions, experts noted the need to monitor and evaluate the effectiveness of the impact of strategies and government programs in Uzbekistan, as well as a deeper study of the Uzbek model of poverty reduction in order to further disseminate the acquired experience in developing countries.

Niloofar Assadi, the caretaker of international affairs of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) says that Iran and Pakistan have to devise new mechanisms to give a boost to their bilateral relations.

Assadi made the remarks addressing a major business forum of Iran and Pakistan in Tehran on Wednesday.

The forum was participated by more than 100 Pakistani businesspeople from Karachi, Lahore and Quetta.

Assadi said that the economic ties between the two countries is not satisfactory, urging the need for both nations to devise new mechanisms to enhance relations.    

Referring to major strong links between the private sectors of the two neighboring countries, she stressed the necessity of planning for making joint investment and production and more increased relations in the area of tourism, health tourism in particular.

Assadi also called for reviving a preferential trade agreement with Pakistan, more cooperation on textile and overseas farming, and focusing on facilitating barter trade between the two nations.  

Speaking in the meantime, Abdolhakim Rigi, the head of Iran-Pakistan Joint Chamber of Commerce said that volume of trade between the two nations has grown to $2.5 billion.

He said that bilateral trade between Tehran and Islamabad can double to $5 billion which would require both countries to prepare the necessary grounds, including implementation of preferential trade, lifting the customs bans and making a better use of border markets.

He called the complication of the barter trade a serious obstacle to trade between Iran and Pakistan, adding that the barter trade mechanism proposed by Zahedan Chamber of Commerce is so simple while the interference of the central banks of the two countries has complicated the issue.

President of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) Gholam Hossein Shafei said that promotion of relations with Kyrgyzstan is a main agenda of Iran’s private sector.

Shafei made the remarks in an Iran-Kyrgyzstan Joint Business Forum in Tehran on Sunday which was also participated by his Kyrgyz counterpart Temir Sariyev and Kyrgyzstan’s Ambassador to Iran Tordogan Sedigov and a large number of businesspeople from both sides.  

Shafei, however, noted that poor transportation is hampering trade relations between the two countries.

Putting the volume of trade between Iran and Kyrgyzstan at $80 million, he said that the figure does not match the economic potentials of the two countries.

Shafei voiced the readiness of Iran Chamber of Commerce to take further steps to pave the way for more increased trade with Kyrgyzstan, urging the need for both sides to remove the obstacles on the way of trade cooperation.

Kyrgyz businesspeople eye joint investment projects with Iran

Also addressing the business forum, Head of the Kyrgyzstan Chamber of Commerce and Industry, Temir Sariyev, said that Iran has pushed its way out of the pressure of Western sanctions for developing trade ties with the world.

Sariyev said that Kyrgyzstani businesspeople intend to get a better knowledge of Iran’s trade opportunities to find new ways for enhancement of trade cooperation.  

Noting that representatives from over 40 Kyrgyz countries are present in the forum, he said that the Kyrgyz businesspersons hope to find Iranian partners in trade and joint investments.

Speaking in the meantime, Kyrgyzstan’s Ambassador to Iran Tordogan Sedigov said that businesspeople from his country seek to identify Iran’s trade potentials.

The ambassador said that holding this forum is the first step expressing hope that another such forum will be held in his country.  

He invited the Iranian companies to visit Kyrgyzstan and launch joint production lines in the country.

President of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) Gholam Hossein Shafei underlined the necessity for Iran and Kyrgyzstan to remove obstacles on the way of transportation cooperation.

In a meeting in Tehran on Sunday with the Head of the Kyrgyzstan Chamber of Commerce and Industry, Temir Sariyev, Shafei expressed dissatisfaction with the volume of trade between Iran and Kyrgyzstan, noting that bilateral trade between the two countries accounts for an insignificant 1% of Kyrgyzstan’s foreign trade.

He said that the Iranian private sector actors are eager to do more trade with Kyrgyzstan and invest in the country.

Referring to a recent free trade agreement between Iran and the Eurasian Economic Union (EAEU), the Iran Chamber of Commerce president said that once the agreement comes into effect, it will enable Iran and Kyrgyzstan to develop more enhanced cooperation.

In addition to the Western sanctions on Tehran and the problems on the way of financial problems, poor transportation is another factor hindering trade between Tehran and Bishkek, Shafei said.   

He noted that China can gain access to the Sea of Oman and Persian Gulf through Iran and Kyrgyzstan, a transit route which will benefit the two countries.

The Kyrgyzstan Chamber of Commerce chief, who is in the Iranian capital to attend the Iran Expo 2023, said in the meeting that representatives from 42 Kyrgyz companies are accompanying him in his Tehran trip who are looking for Iranian investors and customers for their products in Iran.  

Sariyev noted that the sanctions have always been a source of concern but trade will also find its way.

The construction of a railway project joining China, Kyrgyzstan, Turkmenistan, Uzbekistan and Iran will be discussed in an upcoming meeting of the Shanghai Cooperation Organization (SCO), he said, adding that the railway will later join the countries to Turkey and Europe.

President of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) Gholam Hossein Shafei proposed forming a joint committee with Kazakhstan to facilitate transit between the two countries.

Speaking during an Iran-Kazakhstan Joint Business Forum in Tehran on Tuesday, Shafei said that Kazakhstan is a top priority of the Iranian private sector for expansion of trade ties.

The forum was participated by a top-ranking Kazakhstani delegation led by the country’s Deputy Minister of Trade and Integration Kairat Torebayev.  

Shafei said that oil and gas, shipping in the Caspian Sea, petrochemicals, agriculture, mining, construction, human and animal medicine, as well as techno-engineering services are among the main areas for expansion of cooperation between the two countries.

He expressed dissatisfaction with an annual $300 million volume of trade between Iran and Kazakhstan which he said is not compatible with the existing potentials.

The Iran Chamber of Commerce president said that Kazakhstan’s presence in the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organization provides a chance for further enhancement of trade with Tehran.

Shafei also highlighted the significance of a strategically significant INSTC corridor passing through Iran, noting that the corridor links Kazakhstan and other Central Asian countries to the Persian Gulf and South East Asia.

“The activation of this corridor will greatly help the commercial development of the countries along the route.”

Kairat Torebayev, who headed the Kazakhstani delegation, also addressed the business forum and said that as much as 511 Iranian companies are active in Kazakhstan in different areas, including processing industries, construction, and techno-engineering.

He regretted that trade between Iran and Kazakhstan has witnessed a 43% fall in the early months of the current year (2023) which he said is mainly caused by Iran’s reluctance to buy wheat from Kazakhstan.

The official noted that the Kazakhstani companies are ready to export over 100 items worth $162 million to Iran.

Iranian exports to Turkey jumped by nearly a fourth in the year to late March, according to a senior official in the country’s Trade Promotion Organization (TPO).

TPO’s head of West Asia Office Farzad Piltan said on Monday that Iranian exports to Turkey had amounted to $7.45 billion in the calendar year to March 20, up 23% from the previous calendar year.

“That made Turkey the third largest buyer of Iranian exports,” said Piltan while citing annual trade figures from the Iranian customs office.

He said that main goods and commodities exported from Iran to Turkey over the past calendar year included natural gas, aluminum, urea, polyethylene and copper products.

On imports from Turkey, Piltan said that Iran had taken delivery of nearly $6 billion worth of goods from its northwestern neighbor in the year to March, up 15% from the year before.

He said Turkey was the third largest supplier of goods and commodities to Iran in the past calendar year.

Cooking oil, over-the-road tractors for semitrailers, animal feed corn, banana and transformers were the main goods imported from Turkey to Iran over the year to late March, said the official.