Social support measures
With the introduction of quarantine measures due to the coronavirus pandemic in Uzbekistan, the
main focus fell on measures of social support for the population. First of all, Uzbekistan took action
to prevent a decrease in the income of the population, sustain employment, and prevent
unemployment. Specifically, it was noted that employers can transfer employees, especially
pregnant women, the elderly, people with disabilities and chronic diseases, with their consent, to
the convenient work schedule or to home-based work. During the suspension of the activities of
preschool education institutions and secondary schools, one of the parents of primary school
students were granted annual leave regardless of their annual leave schedule (including persons
who have worked for less than six months).
492
It was envisaged to ensure the timely payment of
salaries to 1.04 million employees of pre-school, general, secondary special and higher education
institutions, sports and cultural institutions, which ceased their activities. Parents placed in
quarantine, as well as persons caring for their children, are paid temporary disability benefits in the
amount of 100 per cent of the average monthly salary. Employers are prohibited to terminate
employment contracts with the employees infected with coronavirus infection or quarantined, as
well as with parents of a child under the age of 14. The amount of tax-free financial assistance has
been almost doubled.
Second, measures were taken to support employment in the informal sector and create additional
jobs. The reason is that out of 13.5 million people employed in the labour market of Uzbekistan, 7.8
million are considered to be in the informal sector, including 2.6 million labour migrants.
493
341,300
people cannot work due to the pandemic. At the beginning of 2020, 426,700 people returned from
abroad, while 143,400 people could not go abroad to work.
494
For this reason, it is highly relevant for
Uzbekistan to mitigate the negative impact of the pandemic and the crisis on informal employment.
In this context, it is worth noting that support for entrepreneurship is seen as a great opportunity
and reserve for creating new jobs, generating demand and supply in the market, and also for
ensuring economic growth. With this in mind, the President of Uzbekistan has put forward several
important initiatives to prevent a sharp decline in employment and incomes. These include the
expansion of the list of activities for self-employed citizens and the provision of permits for all forms
of entrepreneurship (85 types of activities) that are not prohibited by law, development of the
service sector (delivery of products and goods, organisation of export trade and services), creation of
optimal opportunities for providing services to business entities working online, the conditions for
those engaged in deliveries.
495
It is also planned to expand lending for the repair of housing, motor
vehicles, household appliances, and other goods.
Also, given the fact that the majority of the affected population live in rural areas, close attention
has been paid to the broad involvement of the population in seasonal work, taking into account the
inaccessibility of rural areas, to the support of agricultural cooperatives, the creation of new areas
491
Ibid 3.
492
The Minister of Employment and Labour Relations of the Republic of Uzbekistan Command, During the period of quarantine measures,
when pre-school educational institutions and general education institutions are closed, it is time to grant annual leave to parents of pupils
and students of primary educational institutions, Lex.UZ, March 2020, https://lex.uz/docs/4776261
493
Mehnat.uz, What is the unemployment rate in Uzbekistan in 2019?, April 2020, https://mehnat.uz/uz/news/2019-yilda-uzbekistonning-
ishsizlik-darazhasi-qancha
494
Uza.uz, What is the benefit of allocating unconditional financial assistance from the state budget to the needy?, May 2020,
http://uza.uz/oz/society/yerdamga-mu-tozh-a-oli-atlamiga-davlat-byudzhetidan-be-araz--22-05-2020
495
Decree of the President of the Republic of Uzbekistan, On measures to simplify state regulation of entrepreneurial activity and self-
employment, Lex.UZ, June 2020, https://lex.uz/docs/4849605
Spotlight on Uzbekistan
140
and additional jobs, the development of withdrawn lands, to the creation of cooperatives, the
commissioning of greenhouses in private households, to the establishment of irrigation systems on
undeveloped lands, and other initiatives.
The above initiatives envisage the drastic simplification of the system of state registration of the
population employed in the informal sector and cancelation of taxing citizens who provide
household services to the population.
496
This can be recognised as one of the most effective reforms
undertaken to date to develop the labour market. Specifically, this year it is planned to employ
145,000 needy people through the implementation of 7,500 regional projects in the industrial
sector. In this context, it is worth to mentioning ample opportunities in agriculture. For example, in
the first half of the year it is planned to employ 25,000 people through the development of 38,000
hectares of land, and 45,000 people by the end of the year through the development of additional
51,000 hectares. 20,000 hectares of these lands will be allocated to low-income families. It is also
planned to allocate 120,000 hectares of grain-free land for secondary crops and create a source of
income for about 300,000 families. The implementation of 107 projects of cotton and textile clusters
worth $ 965 million will create more than 28,000 new jobs.
497
Third, measures were taken to expand the allocation of social benefits and financial assistance.
Specifically, in March, the number of recipients of benefits and financial assistance increased by ten
per cent, and then, as a result of the automatic extension of appointed benefits and financial
assistance, it grew by 1.2 times (increased from 596,000 to 719,000).
498
This May, due to the
allocation of 220 billion soms of additional funds, the number of recipients of benefits and financial
assistance increased by another ten per cent.
499
Fourth, measures have been taken to support retirees, single and lonely, and people with
disabilities. The most important steps in this direction include the possibility for working pensioners
to receive a two-month pension at a time, as well as the free provision of disposable masks,
antiseptic and antibacterial fluids to lonely elderly people and persons with disabilities.
Fifth, by the initiative of the President, the Sahovat va Kumak Foundation (Kindness and Support)
was established to financially support those in need during the quarantine, temporarily unemployed
citizens who have lost their income, to supply everyday goods, medicines and other products. The
Foundation and its territorial units have been opened by order of the government without
organising a new legal entity but instead operating under the Mahalla Charitable Public Foundation
of Uzbekistan and its territorial units, and special accounts were opened in the respective banks.
In this context, it is worth mentioning the widespread and effective practice of involvement of
business entities and the mahalla institution in Uzbekistan. A special center with territorial divisions
was established to coordinate the joint activities of not only government agencies, but also a large
number of volunteers, sponsors, and business entities. A smooth system of receiving assistance was
organised in special pavilions storing food and other products in the city of Tashkent and the regions.
As of June 10, a total of 194.6 billion soms (£15.2 million) of charitable funds were channeled to the
special account of the Sahovat va Kumak Foundation under the Mahalla Foundation.
500
To date,
300,400 needy families have been provided with 119 billion soms of financial assistance. Of these,
496
Ibid.
497
Aktam Haitov, Next measures: Increase the number of self-employed activities, xs.uz, June 2020, http://xs.uz/uzkr/post/navbatdagi-
chora-tadbirlar-ozini-ozi-band-qiluvchi-faoliyat-turlari-soni-kopajtirildi
498
Ibid 3.; Telegra, Uzbekistan introduces new measures to support population and economy, April 2020, https://telegra.ph/Uzbekistan-
introduces-new-measures-to-support-population-and-economy-04-01
499
Ministry of Finance, Decree of the President of the Republic of Uzbekistan ‘On Next Measures to Support the Population and
Entrepreneurship during the Coronavirus Pandemic’, Telegram, May 2020, https://t.me/minfinuzb/1911
500
Ministry of Mahalla and Family Support, Briefing on donations and donations received by sponsors and organisations to Charity and
Assiatnce Foundation, Telegram, June 2020, https://t.me/mahallavaoilainfo/755
Spotlight on Uzbekistan
141
67,300 families received 71.1 billion soms of cash (an average of more than 100 USD per family).
Also, more than 19,000 citizens in need of social protection each received 2.5 million soms (about
£200 ) each according to the lists compiled by municipalities of Andijan, Namangan, Tashkent
provinces and the city of Tashkent.
The charitable funds of five million USD were also allocated by Alisher Usmanov. Funds and goods
(including services) that are donated to Mahalla, Sahovat va Kumak, or Mercy, and Health of
Uzbekistan public foundations, as well as to individuals in need of social support, were exempted
from the income tax. Additionally, goods (services) are exempt from VAT and sales tax (for a period
up to October 1
st
). At the same time, for example, if a manufacturer provides his products as a
charity, the entrepreneur does not pay taxes for this product. The individuals receiving free
assistance are also exempt from income tax. The benefits stipulate that both parties (providing and
receiving) are exempt from all taxes.
Sixth, to prevent food price hikes and reserve the necessary volumes of food products, Uzbekistan
has taken appropriate measures. The Committee for State Reserves Management compiled a list and
the required volumes of foods to be imported and subject to intervention. Prices for socially
important food products in the markets and artificial price increases are monitored and controlled
daily to prevent artificial shortages and excessive demand. The Committee for State Reserves
Management was entrusted to ensure that food products are sold under contracts or exchange
trading in sufficient volumes to keep the market full and stabilise prices for products on the
domestic market at free prices. Customs duties and excises (by the end of 2020) on importing 13
types of food products, as well as seven types of hygiene products, have been set at a zero rate.
Amid the possibility of the global shortage of food products, there is a need for a mechanism to
introduce modern approaches to the use of land to tap resources and opportunities available in
agriculture, commission lands and allocate them to the population on favorable terms for growing
agricultural products, doubling the number of crops, obtaining high yields, and creating new jobs in
the agricultural sector.
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