In 2021, Uzbekistan, with assistance from the World Bank, set out an ambitious goal: to halve poverty by 2026. The poverty headcount rate based on the national poverty line fell from 17% in 2021 to 5.8% in 2025, accounting for a drop in poverty of two-thirds. After surpassing this target ahead of schedule, Uzbekistan has set a goal to completely eradicate poverty by 2030.

It’s worth noting that Uzbekistan’s national poverty line, used to calculate this figure, is set well below international benchmarks — at roughly $54.50 per person per month, less than half the World Bank’s $126 threshold for lower-middle-income countries. That means the 5.8% figure reflects Uzbekistan’s own, lower domestic standard rather than what a comparable international poverty measure might show, a distinction worth keeping in mind when evaluating the scale of the achievement.

How This Was Achieved

In 2023, Uzbekistan implemented the National Development Strategy 2030, aimed at becoming an upper-middle-income country by the end of the decade. With these aspirations, the upper-middle-income country (UMIC) poverty line is relevant in understanding Uzbekistan’s progress. Uzbekistan reduced the UMIC poverty line rate from 36% in 2015 to 17% in 2022. This rate fell faster than the rest of Europe and Central Asia, which saw only a 5% drop from 13% to 8% in the same period.

Increases in wage income accounted for nearly 60% of the poverty reduction progress. Other factors driving this reduction include an increase in social spending. The government expanded many social programs, such as pensions, which had the biggest overall impact among social benefit programs.

Other reasons include direct support from the World Bank. Between 2018 and 2021, the World Bank delivered around $2.1 billion to Uzbekistan across different Development Policy Operations. This financing backed reforms including the end of forced and child labor in the cotton sector, a shift away from state-run agriculture and the removal of price controls and internal mobility restrictions. The World Bank also partnered with United Nations Children’s Fund (UNICEF) to help build Uzbekistan’s Single Registry, a social protection database that expanded and simplified benefit access for low-income families and other vulnerable groups.

Inequality Concerns

While the progress made over the last couple of years is noteworthy, there are some inequality concerns. The increase in household incomes and wage growth was much higher in urban areas and for wealthier workers. Government and other official statistics show the highest wage growth took place in the service sector, jobs such as telecommunications and information technology. World Bank statistics showed that while the poorest 10% saw their income grow by 6%, the richest 10% saw incomes grow by more than 30% between 2022 and 2023. During this period, the Gini coefficient grew from 0.31 to 0.35, a measure of income inequality on a scale of 0 to 1, where higher values indicate a wider gap between rich and poor.

Building a Stronger Safety Net

Nevertheless, Uzbekistan’s reforms are still in their early stages. Recent moves show the government and its partners continuing to build out systems meant to reach those left behind. In mid-2024, the World Bank approved an additional $100 million “INSON” project to improve social care for vulnerable groups, establishing more than 50 community-based social service centers and expanding services to roughly 50,000 people. In 2025, Uzbekistan adopted its State Social Insurance Law, extending social protection coverage for maternity and sickness benefits to six million workers, with support from the United Nations (UN) Global Accelerator. That same year, the World Bank approved a further $800 million package, which will help protect low-income households from rising energy costs and expand social services delivered by accredited private and non-governmental providers. These developments show a social protection system that continues to grow, laying the groundwork for Uzbekistan’s poverty reduction targets and a more equal society.

Looking Ahead to 2030

With its 2026 target met three years ahead of schedule, Uzbekistan has set its sights on eradicating poverty by 2030. The government’s National Development Strategy 2030 ties this goal to its broader ambition of becoming an upper-middle-income country, with continued wage growth, expanded social insurance coverage and ongoing World Bank-backed reforms all expected to play a role. Sustained partnerships with the World Bank, International Labor Organization (ILO) and UNICEF, alongside newer initiatives like the INSON project and the National Agency for Social Protection, give Uzbekistan a strong institutional base heading into its last target. If the country’s pace over the past five years is any indication, Uzbekistan’s push toward zero poverty by 2030 is well underway, with the infrastructure now in place to reach even the most vulnerable households.

– Gonzalo Rodriguez Da Fonte Martins

Gonzalo is based in London, UK and focuses on Global Health and Politics for The Borgen Project.

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