The Impact of Migrant Remittances on Uzbekistan’s Poverty Rate: Insights from the World Bank Report
The World Bank’s recent report reveals that without migrant remittances, Uzbekistan’s poverty rate could rise to 16.8%. The country shows a more diversified migration profile compared to its neighbors, with significant remittance contributions to its GDP. The report emphasizes the necessity of effective migration management and suggests tailored policies for maximizing the socio-economic benefits of migration in the ECA region.
A recent World Bank report highlights the critical role of migrant remittances in Uzbekistan’s economy, indicating that, without these funds, the poverty rate would increase from 9.6% to 16.8%. The report, unveiled on March 7, analyzes migration trends in the Europe and Central Asia (ECA) region, where remittances account for 14% of Uzbekistan’s GDP, a figure lower than its regional peers.
The study reveals that Uzbekistan has a more diversified migration profile compared to Kyrgyzstan and Tajikistan, with 57% of its migrants in Russia and the remainder spread across Kazakhstan and Ukraine. Ongoing challenges in labor migration persist, as figures indicate a significant decrease in the number of Uzbek migrants abroad, especially in Russia. The Uzbek government is now inviting returning citizens to contribute to the construction of New Tashkent, offering various job roles with competitive salaries.
Labor migration serves as a vital income source in Central Asia, with remittance contributions reaching 45% of Tajikistan’s GDP and 24% in Kyrgyzstan. The considerable earnings abroad allow migrant families to alleviate poverty. The report emphasizes that without remittances, poverty in households with overseas migrants in Kyrgyzstan could spike to over 50%, while in Uzbekistan, it is projected to rise significantly.
The report asserts that effective migration management is essential for balancing demographic and socioeconomic challenges within the ECA region. It suggests coordinated international efforts to maximize migration benefits and ensure equitable distribution of its advantages. The report offers several policy recommendations aimed at enhancing migration strategies for both high-skilled and low-skilled migrants, promoting educational partnerships, and facilitating safer migration pathways.
In conclusion, the World Bank report underscores the significance of migrant remittances in reducing poverty levels in Uzbekistan while providing insights into migration patterns across Central Asia. The findings advocate for effective migration management and highlight the potential socio-economic benefits of labor migration. By implementing targeted policies and fostering international coordination, countries can optimize the advantages of migration and address regional challenges effectively.
Original Source: www.gazeta.uz
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