Uzbekistan’s Mohalla-Centered Reform Agenda Drives Growth, Employment, and Social Well-Being
The line of reform in Uzbekistan under President Shavkat Mirziyoyev remains very coherent, socially oriented, and has an impact, which is evident in the results of the conversation as discussed in a videoconference meeting held on January 23 on the essential tasks of the country to undertake in 2026 in the reduction of poverty and creation of jobs.
This optimism is based on the macroeconomic outcomes, which will be attained by the year 2025. As the economy grew at 7.7 percent (far surpassing the preliminary estimates) and the GDP passed the mark of 147 billion dollars, Uzbekistan has established a period of stable and inclusive growth. Of special interest is that this growth was widespread, as every sector performed better than in 2024, as well as the inflows of the foreign investments reaching 43 billion and the exports reaching 33.8 billion. Notably, this growth has been attained where inflation dropped greatly, 9.8 percent to 7.3 percent as a sign that there is management of the macroeconomic environment.
Highlighting the relationship between steady growth and social performance, the President reveals one of the key characteristics of the Uzbekistan reform model economic growth in the form of an instrument of improving living conditions. The 8.9 percent to 5.8 percent and 5.5 percent to 4.8 percent drop in poverty and unemployment, respectively, and 366,000 families coming out of poverty show that growth is already transferring into the actual benefits of the citizens. According to the President Mirziyoyev, this development has also enhanced confidence between the state and the people, which is a key resource in the maintenance of reforms.
The mahala-based approach is among the core elements of the governmental approach, and it presents a granular, people-oriented approach to governance. By declaring neighborhoods to be the real litmus test of the effectiveness of reforms, the leadership is making national programs to be judged as per their impact on the locals. The open admission of lapses in accountability and delivery capacity, especially with local governments, is an indication of a culture in governance that is becoming more preoccupied with accountability and outcomes than formality.
The ambitious but realistic goals of accomplishing by 2026 one million permanent jobs, removing 181,000 families out of poverty, increasing poverty-free neighborhoods to 3,500, and cutting poverty levels and unemployment to 4.5 percent are backed by clearly spelt out mechanisms. They consist of massive investment in renewable energy at the mahalla scale, especially the introduction of small-scale solar power plants as an economic resource in the hands of the local population. This is a clever strategy that puts together the creation of employment, generation of green energy, and income creation directly including low-income households in the operations and maintenance.
The further specialization of the neighborhoods with agriculture, the optimization of land use, and specific subsidies are also very important. The government is establishing an ecosystem-wide approach to productivity-income growth linkage by harmonizing increases in water supply, cultivating seedling support, incentives on drip irrigation, and compensating export-oriented agriculture. The distribution of forest lands to mulberry plantations and subsidies to cocoon-growing cooperatives are other indications of subtle knowledge regarding the rural livelihoods and value-chain building.
Another strength of the reform agenda is the financial inclusion and differentiated credit policies. By setting loan conditions to the conditions of the so-called difficult districts and border areas instead of using the same terms throughout the country, the government is responding to structural inequalities more successfully. The large growth of the family business finance, as well as the compensation system of production and processing loans, strengthens the small and medium-sized business as a job generator.
The introduction of a project-focused approach to the district and mahalla levels is a significant change in the sphere of the public administration. The tourism, services, education, healthcare, and urban renewal integrated project groups, such as the redevelopment of the area along the Kaykovus canal and Zarkainar Street, are the examples of how coordinated planning can release the economic potential of the area without compromising the cultural heritage. Tourism, as a low-capital, high-employment sector, is especially emphasized in the Olmazor district initiatives, which will be able to revitalize historic neighborhoods, as well as provide sustainable incomes.
The fact that the President has been involved in healthcare development, which also involved involvement of the private-sector, also indicates that the agenda on reform is all-inclusive. Investments like the Sinomed multidisciplinary medical center do not only enlarge the access to quality healthcare but also offer skilled employment, promote competition, and allow the international trained professionals to come back. This mix of both governmental support and citizen self-help enhances the quality of the service and expands the options of the citizens.
Lastly, the national population and agrarian census is another strategic investment in a data-driven governance. With defining the right and current image of each family and mahalla, the state is preconditioning the development of more specific, productive, and fair policies in the future.
Combined, the actions described and analyzed in my article has shown that the reforms in Uzbekistan are moving to the next stage, the one where integration of spheres, high concentration on the local level, environmental friendliness, and social responsibility occur. Even though the barriers are still there, the visionary focus on the problem, the magnitude of the implementation, and the human well-being indicate that the nation is gradually developing a sustainable economic and social model with the focus on the long-term development objectives.
