The Republic of Uzbekistan (Uzbekistan) is a landlocked country with a total land area of 447,400 km² in Central Asia, south and southeast of the Aral Sea, bordered by five neighboring countries: Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, and Turkmenistan. The country’s population is about 33 million, of which 50.5% live in urban areas. Uzbekistan’s gross national income (GNI) stands at USD 50.5 billion. In 2011, the country graduated to a lower-middle-income classification and now its GDP per capita has reached 1,724.5 USD[1],  showing sustained economic development.  Although the official poverty rate in 2018 declined by 0.5% from the 2017 level, approximately 11.4% of the population sit below the Basic Needs Poverty Line.[2] In terms of GDP share in 2019, agriculture, forestry, and fishing (25.5%), services (32.2%) and industry with 33.2% (comprising manufacturing, mining, construction, etc.) sectors comprise the key drivers of the country’s economy.[3]

Real GDP growth increased marginally to 5.564% in 2019, supported by investment growth that was financed by substantial increases in direct lending to SOEs[4], more robust agricultural growth, and increased construction activity.[5] However, economic growth in Uzbekistan did not conform proportionally[6]  to the projected real GDP growth in 2020, as it has not translated into substantial employment generation. The COVID-19 pandemic has contributed to the challenges for the market transition and significantly increasing the risk that poverty will rise.[7] Thus, it is crucial for Uzbekistan to continue prioritization and implementation of key reforms in order to sustain vigorous and inclusive economic growth and job creation. The country confirmed its intentions towards more sustainable development by adopting a strategy towards a green economy and committed to green reforms as part of the country’s development agenda, which include:

– increasing energy efficiency of the key sectors of the economy;

– adaptation and mitigation of the effects of climate change;

– increased efficiency in the use of natural resources and conservation of natural ecosystems;

– diversification of energy consumption and development of the use of renewable energy sources; and

– development of financial and non-financial mechanisms to support the green economy.

The 2019 UNDP Human Development Index ranked Uzbekistan at 64 out of 162 countries on Gender Inequality Index (GII), with female participation in the labor market at 65.4% compared to 78.0% for men.^[8] The status of women and men in Uzbekistan is largely shaped by the significant and rapid changes in recent years.  Over the past 10 years, the number of small and medium-sized enterprises headed by women has increased by a factor of 1.6 and the proportion of women employed in small businesses and private enterprises has risen to 45.7%. To promote the involvement of women in business activities and the development of family businesses, loans to women have doubled over the past two years. These days about 6.5% of the members of the Cabinet and 15.3% of the heads of local executive authorities. The proportion of women in senior management positions in ministries, State committees and agencies stands at 10 % and, in middle management positions, 24%, in the areas of health care and social services, the proportion of women is higher than 82%; in science, education and child development, culture and the arts – 72%; in agriculture – 45%; and in the industry – 38%.[9]

Although the Global Gender Gap Index and the Gender Equity Index show that the country is close to attaining gender equality in education and health, issues related to the status of women, social inclusion and gender equality still require attention. In 2017, the Women Committee of Uzbekistan (WCU) employment, creation of new jobs, development of business and entrepreneurial skills as the key issues for women in larger and small cities; and social and municipal infrastructure, family and home-based business development as the key issues for rural women^[10]. There are still existing inequalities in areas of property ownership; decision making; the labor market (with women mostly in seasonal and low paid jobs in the formal and informal sector; traditional attitudes towards and stereotypes in most sectors. Despite country reforms, including initiatives to improve women’s economic opportunities, efforts to promote gender equality and social inclusion mostly remain separate from the nation’s development programs.^[11]

From the gender and social inclusion perspective, women (including those engaged in formal or informal employment) contribute to their family’s livelihood by undertaking their traditional roles such as providing the necessary levels of water, heat, food – tending small gardens and large plots of land, growing fruits, vegetables, caring for livestock, production of dairy products for family consumption and for sales in the community. Women spend as much time on nonmarket or unpaid activities as men spend on paid work. However, this economic benefit derived from women’s contribution has not been calculated and is not included in GDP calculations. With regards to labor migration which allows people to earn a higher income, women are very unlikely to leave their families due to their reproductive functions which require their constant presence in their households.

Although the country continues its course towards achieving SDG targets, related challenges such as inequality and rural-urban and regional disparities persist. Poverty is concentrated in rural areas, distant from centers of economic activity and with inferior public services and infrastructure. Incomes are below the national average in the remote region of Karakalpakstan (the persistently high poverty level in Karakalpakstan (27%) is directly linked to the Aral Sea crisis[12]), in the rural provinces of Jizzakh, Samarkand, Surkhandarya, and Kashkadarya, and in the three regions of the Fergana Valley—Namangan, Andijan, and Fergana. The urban-rural disparity in poverty is also attributed to low productivity in labor-intensive agriculture, deficiencies in the coverage and quality of infrastructure, existence of informality in the labor market, and regional disparities in funding.[13]

[1] World Bank (2019).  Uzbekistan Overview. Retrieved from: https://www.worldbank.org/en/country/uzbekistan/overview

[2] World Bank (2020). Europe and Central Asia Economic Update, Spring 2020: Fighting COVID-19. Washington, DC: World Bank. Retrieved from: https://openknowledge.worldbank.org/handle/10986/33476

[3] World Bank (2018). Uzbekistan. Retrieved from: https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=AM-UZ

[4] World Bank in Uzbekistan. (2019). Country Snapshot. Retrieved from: .http://pubdocs.worldbank.org/en/389531571374572251/Uzbekistan-Snapshot-Oct2019.pdf

[5] World Bank (2020). Fighting COVID-19. Europe and Central Asia Update. Retrieved from: https://openknowledge.worldbank.org/bitstream/handle/10986/33476/9781464815645.pdf

[6] The United Nations Development Programme (2018). Unsustainable employment in Uzbekistan: the status, problems and solutions (original publication in Russian. Retrieved from: https://www.uz.undp.org/content/uzbekistan/en/home/library/poverty/unsustainable-employment-in-uzbekistan–the-status–problems-and.html

[7] World Bank (2020). Europe and Central Asia Economic Update, Spring 2020 : Fighting COVID-19. Washington, DC: World Bank. Retrieved from: https://openknowledge.worldbank.org/handle/10986/33476

[8] UNDP Human Development Report (2019). Inequalities in Human Development in the 21st Century. Retrieved from http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/UZB.pdf

[9] The Office of the United Nations High Commissioner for Human Rights (2019). Third periodic report submitted by Uzbekistan under articles 16 and 17 of the Covenant, due in 2019. Retrieved from: https://tbinternet.ohchr.org/_layouts/15/treatybodyexternal/Download.aspx?symbolno=E%2fC.12%2fUZB%2f3&Lang=en

^[10] The Food and Agriculture Organization of the United Nations (2019). Gender, agriculture and rural development in Uzbekistan. Gender Assessment series. Retrieved from: http://www.fao.org/3/ca4628en/ca4628en.pdf

[11] Asian Development Bank (2018). Uzbekistan Country Gender Assessment. Retrieved from: https://www.adb.org/sites/default/files/institutional-document/479841/uzbekistan-country-gender-assessment-update.pdf

[12] Refer to the table in P.11 of the Needs of the Population in the Aral Sea Region (2017) by the Institute for Social Research Under the Cabinet of Ministers of the Republic of Uzbekistan and UNDP

[13] Asian Development Bank (2019). Inclusive and sustainable growth assessment. Retrieved from: https://www.adb.org/sites/default/files/linked-documents/04_UZB%20CPS_LD_ISGA.pdf. Uzbekistan: Country Partnership Strategy (2019-2023)