Uzbekistan Launches Major Steps to Tackle Informal Economy, Boost Social Protection

Photo credit: royal-flags.com

Uzbekistan Launches Major Steps to Tackle Informal Economy, Boost Social Protection

The Government of Uzbekistan has taken a decisive step toward formalising its labour market and strengthening social protection systems with the official launch of two joint programmes: the Global Accelerator on Jobs and Social Protection for Just Transitions (GA) and the Multistakeholder Global Accelerator Joint Programme (M-GA), co-led by the United Nations agencies (UN) and the World Bank Group.

This initiative advance Uzbekistan’s high-level commitment - announced by Prime Minister Abdulla Oripov in 2023 - to serve as a pathfinder country under the UN Secretary-General’s flagship Global Accelerator initiative. Today’s launch marks a significant step toward transforming that vision into reality, The Caspian Post reports citing foreign media.

In Uzbekistan, informal employment accounts for an estimated 40 percent of the workforce, resulting in an annual loss of potential tax revenue. Informality disproportionately impacts women, youth, migrant workers, and persons with disabilities, restricting their access to social protection, fair wages, and safe working conditions.

To address these challenges, two joint programmes have been launched with the following objectives:

  1. Promote formalization through enabling business environment, entrepreneurship, especially for women, and labour protection;
  2. Support in building a comprehensive social protection system, via extension of social insurance and social assistance to ensure sustainable livelihoods against risks

The programmes aim to reach 300,000 informal workers, extend social protection coverage to 300,000 individuals, and improve social assistance services for 720,000 low-income persons. In addition, they will support the formalization of workers and pilot innovative models designed to empower women and other vulnerable groups. Capacity-building activities for public agencies and social partners - including measures such as integrating labour formalisation into public procurement and advancing social insurance reforms - are expected to drive lasting improvements in employment quality, public finance, and social inclusion.

By addressing gender gaps in the labour market and time spent for unpaid domestic care work, Uzbekistan not only advances women’s economic rights but also strengthens the resilience of its economy and society as a whole.

Implemented by the ILO, UNDP, UNICEF, UN Women, and the World Bank, the joint programmes reflect a new model of integrated multilateral cooperation under the leadership of the UN Resident Coordinator and the Government of Uzbekistan, represented by the Ministry of Economy and Finance and the National Agency for Social Protection.

In her opening remarks Ms. Sabine Machl, UN Resident Coordinator in Uzbekistan, stated: “Uzbekistan’s engagement in the Global Accelerator is a bold signal of leadership. By advancing just transitions to formal employment and universal social protection, the country is laying the foundation for inclusive and sustainable development.”

The Director of the Institute for Development of Social Protection under the National Agency for Social Protection Mr. Khurshid Zafari emphasised a critical role of Uzbekistan in this global initiative: “Uzbekistan is one of the 18 countries involved in the implementation of the UN Secretary-General’s global initiative on jobs and social protection for a just transition. Our objective is to develop innovative solutions to address developmental challenges in the context of multiple global crises. As a pathfinder country Uzbekistan will create models can be replicated in other countries.”

Ms. Anastassia Alexandrova, World Bank’s Program Coordinator for Uzbekistan, noted: “Expanding social insurance is crucial to building a future where all workers have access to the protection and opportunities they deserve. The World Bank will continue supporting Uzbekistan’s bold steps to formalize its labor market, empower vulnerable populations, and unlock the potential of a fully inclusive social protection system.”

The joint programme is made possible through support from the UN Joint Sustainable Development Goals Fund, with generous contributions from the European Union and the governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, the Netherlands, Norway, Poland, Portugal, the Republic of Korea, Saudi Arabia, Spain, Sweden, and Switzerland. Their commitment plays a crucial role in helping countries like Uzbekistan turn ambitious SDG pledges into real, people-centred results on the ground.

Related news

The Government of Uzbekistan has taken a decisive step toward formalising its labour market and strengthening social protection systems with the official launch of two joint programmes: the Global Accelerator on Jobs and Social Protection for Just Transitions (GA) and the Multistakeholder Global Accelerator Joint Programme (M-GA), co-led by the United Nations agencies (UN) and the World Bank Group.