Uzbekistan
by Dildora Karimova
Countries in transition to a market economy such as the Republic of Uzbekistan need to consider the causes of poverty. The situation in the labor market is reflected in the worsening of the problem of unemployment among the rural population and requires speedy measures to be undertaken to provide new jobs. Experience abroad in extension of economic reforms, small business development and an increase in self-employment all help to lay the foundation for increasing economic activity in the republic.
The month-long course on the Role of Women in Agricultural Development, held in March, 1999, and conducted by CINADCO at the Kibbutz Shefayim training center, brought together 31 participants from 19 different countries. Participants from Uzbekistan, the author, a researcher in living standards at the Macroeconomic and Social Research Institute, and Malika Mirzaeva, a member of the Association of Business Women, came to this course with a unique agenda - to obtain know how to help reduce unemployment, especially among youth in rural areas by providing new jobs for them.
During the course the Uzbek specialists attained much useful information about the dedication and hard work of the Israeli people who have brought the country to its present stage of development and given it the distinction of leading in agricultural development. But it is necessary to assess the achievements and problems of social policy that Uzbekistan faces in the process of on-going market reforms if we are to adapt the experience of Israel.
In Uzbekistan reforms are targeted to meet human needs, so every step of economic and social reform should be supported by adequate measures to help people adapt to the new situation. Such an approach has enabled Uzbekistan to go from the first phase of transition - reforms based on traditional social protection of the population - to the second - programs to develop democracy to allow the population to participate in the reconstruction of the society.
For nearly 70 years Uzbekistan was controlled by legislation and economic decisions taken thousands of kilometers away in Moscow. At independence in 1991 officials, academics, lawyers and professionals had little knowledge of how a modern public sector raised funds or allocated them to different areas. Soviet economic legislation had to be transferred out of state hands, since state property and command administrative allocation had applied to just about all sectors except plot agriculture.
Given the still very dominant role of the state in the economy and for other historical reasons, the state is Uzbekistan's principal reformer and agent of transformation. The state tries to balance the interests of the various groups in the population. In the difficult transition from a totalitarian to a democratic society, political stability is a necessary condition for the carrying out of effective and decisive reforms, especially economic but also political and social reforms. In transition countries with complex ethnic or economic legacies, the fear of losing social stability is very real to the leadership, and many other estates like business and the intelligentsia are deeply concerned about it. The shock of transition could potentially lead to a buildup of pressure that increases the risk of extremism, terrorism, unrest, civil conflicts and so on. The citizens of Uzbekistan tend to hold traditional views on roles in society. The government has therefore opted for a step-by-step change.
The government's social policy in Uzbekistan comprises: social welfare, income generation, employment, pension, education, health care, support to women, and so on. In a transitional period employment policy plays a prominent role as an instrument to arrest sharp industrial decline, stabilize and create conditions for economic growth but also provide social justice.
Trends and arising problems in the republic's employment sphere for 1991-1998 may be described as follows:
Influence of demographic trends on the labor market. The population of the Republic of Uzbekistan is nearly 23.5 million, 38% live in urban areas and 62% in rural areas. During the last years the rural population has grown faster than the urban. Rural areas' growth rates for working age population are higher than growth rates for other groups.
Structure of employment. The slight decreasing of absolute employment in Uzbekistan has led to the reduction in employment of the working age population and the total population. Employment in non-public sectors reached nearly 70% in 1998. More such employment is being registered in trade, services and agriculture. Sector shifts in employment reflect insufficient and incomplete structural changes in the economy. The share of industrial workers and service fell. At the same time the share of employment in agriculture grew.
Unemployment. The gradual implementation of the reforms, the absence of facts concerning real bankruptcy and closure of state-owned and privatized enterprises, managers' need to retain qualified cadres while awaiting future economic stabilization and growth, desire to avoid social tensions, a social mentality incompatible with the mass dismissal of workers - all of these phenomena promote the revealing of hidden employment in the form of forced holidays for workers or a shorter work week.
An analysis of the labor market reveals that economic decline has led to lower real demand for a workforce. In a free market economy this would have led to considerable decrease in employment. In the field of employment the new human-oriented development strategy seen creates an environment where every working age person can provide a decent living standard for himself and his family.
Visiting Kibbutz Shefayim, the Beit Berl College, the Golda Meir International Training Center, carnation and potato plantations and various other agricultural settlements in Israel we learned how development of small businesses to a large extent determines the possibility for expanding employment. Our introduction to the economic system of Israel showed that gender is one of the key factors in determining household division of labor and access to resources. Women are important contributors to the household, community and national economy. They are much more likely to undertake multiple activities in the various economic domains and much less likely to specialize.
The overall achievement in rural development in Israel - the promotion of broad-based economic growth through increased agricultural productivity and food security, sustainable natural resources, increased rural incomes and improved standards of living - allowed participants from Uzbekistan to practice and share with colleagues the knowledge and experience gained in Israel and to attain know how in order to find solutions to the problems of employment, gender issues, economic activities and living standards in their own country.