Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
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A study of four Asian economies (Cambodia, Indonesia, Myanmar, and the 
Philippines) indicated that digital finance significantly increases access to 
finance for low-income households, women, and SMEs (ADB 2017). For 
example, in Indonesia, unmet demand for payments, credit, and savings 
amounted to 65%, 36%, and 26%, respectively, of each category; and digital 
financial services (DFS) solutions could contribute to closing gaps by 37%, 
20%, and 35% in payments, credit, and savings, respectively. Mckinsey Global 
Institute (2016) estimates that digital finance can create $2.1 trillion in new 
credit and $4.2 trillion in new deposits globally (Figure 4.23). This involves new 
credit of $197 billion and new deposits of $376 billion created by digital finance 
for Eastern Europe and Central Asia, including Uzbekistan.
The introduction of DFS solutions will help encourage financial inclusion in 
Uzbekistan. The Global Findex Database (World Bank 2017) indicates that 
in Uzbekistan, the share of people using the internet to pay bills or to buy 
something online has been increasing sharply, from 0.6% of people over 15 
years old in 2014 to 7.1% in 2017 (Figure 4.24). None were using a mobile 
phone or the internet to access a financial institution account in 2014, but 
6.7% of people over 15 years old had done so as of 2017, and 34% of people 
over 15 years old had made or received digital payments in the past as of 2017.
Online supply chain finance, which provides short-term financing for SME 
suppliers of goods and services by using an online platform, is a promising DFS 
solution that is applicable in Uzbekistan (Figure 4.25). This DFS solution offers 
prompt payment of invoices at a discount for SME suppliers. The SME supplier 
Source: Author, based on Mckinsey Global Institute (2016).