https://ijmri.de/index.php/jmsi
volume 4, issue 3, 2025
313
“IMPROVING ECONOMIC MECHANISMS FOR POVERTY REDUCTION
THROUGH INCREASED INVESTMENT ACTIVITY” (ON THE EXAMPLE OF
SURKHANDARYA REGION).
Saparov Ismat Chorshanbiyevich,
Lecturer, Department of Economics,
Termez Economic Service University.
Abstract:
Today, large-scale work is being carried out in Uzbekistan to increase investment
activity. A number of projects are being implemented to ensure the proper use of investments.
This article describes how to increase investment activity and thereby reduce poverty.
Keywords:
Economy, politics, investment, market, territory, entrepreneur, farmer, infrastructure,
profession, mechanism, education, Uzbekistan, Surkhandarya, region, Afghanistan, Uzun,
Kyzyrik, Baysun, Sherabad, China, Russia.
In recent years, our country has been implementing large-scale reforms to increase
investment activity. In particular, the legislation on the protection of investor rights has been
improved. Free economic zones (FEZs): Customs and tax benefits are provided for enterprises
operating in FEZs. Large-scale investment projects are being developed and implemented in
each region. Taking the example of Surkhandarya region, industrial clusters are developing in
Surkhandarya. Infrastructure for investors is being created in Denov, Boysun and Sherabad
districts. Investors from China, Russia, South Korea, Iran and other countries have been attracted
and are investing in the fields of electrical engineering, building materials, and processing of
agricultural products. Investments are being attracted for the construction of water-saving
technologies and greenhouses in Uzun, Kyzyrik, and Angor districts. Termez is becoming an
international logistics center. Through the "Termez Cargo Center" project, cargo transportation is
increasing in the border area with Afghanistan. Surkhandarya is a region located in the south of
Uzbekistan. In addition to being a resource-rich region, Surkhandarya is also a region with a low
economy. There are also regions with a high level of poverty. The main reasons for poverty are:
Lack of jobs.
Low economic activity.
Technological obsolescence and insufficient infrastructure.
Low level of education and skills.
Although there are enough natural resources, the level of their processing is low.
The solution to this can be to eliminate poverty by increasing investment activity. Work is being
carried out in this direction in Surkhandarya region. In particular, light industry and food
industry enterprises are being opened in industrial zones established in Denov, Termez and
Sherabad, creating jobs for the local population. In districts with historical and natural resources
such as Boysun, Sherabad, and Jarkurgan, local residents are being attracted to provide services
through ecotourism and cultural tourism projects. Also, through the "Every Family is an
https://ijmri.de/index.php/jmsi
volume 4, issue 3, 2025
314
Entrepreneur" program, sources of income are being created at the household level. There are 6
main mechanisms for poverty reduction. These are:
1. Job creation
2. Development and support of entrepreneurship
3. Education and vocational training
4. Improvement of the social protection system
5. Territorial development and infrastructure
6. Special attention to women and youth.
To create jobs, it is necessary to attract investments in the industrial and service sectors. To
ensure employment in rural areas, it is necessary to develop agriculture, animal husbandry, and
crafts. It is necessary to train young people in modern, market-relevant professions. Reducing
poverty by increasing investment activity means improving the standard of living of the
population. Investments inject funds into the economy.
Local or foreign investors invest in industry, agriculture, services and other sectors.
Investments create new jobs. This is especially important in regions such as Surkhandarya region.
The reason is that there are many labor resources there, but employment opportunities are limited.
By increasing investment activity, it is possible to obtain stable funds. By increasing investment
activity, support mechanisms for entrepreneurship will also expand. Along with investments,
roads, electricity networks, water supply, and the Internet will also improve. Surkhandarya
region is located in the southern part of Uzbekistan and is considered a region with agricultural,
energy, trade and transit potential. According to official statistics:
Population: over 3 million
Poverty rate (2023): around 15–18%
Unemployment rate: around 10%
A large part of the working-age population is migrating abroad for labor
These indicators indicate the urgency of ensuring employment and reducing poverty in
Surkhandarya by increasing investment activity. Current status of investment activity in
Surkhandarya region A number of major projects are being implemented in 2022–2024:
Project for the international cargo terminal “Termez Cargo Center”
Construction of the railway line “Termez-Mazar-i-Sharif” (will increase regional transit capacity)
Foreign investments are being attracted in the energy, textile and agricultural clusters
Investment indicators:
Total investment volume in 2023: 8.2 trillion soums
Of which, foreign direct investment: 1.4 trillion soums.
To increase investment activity and reduce poverty in Surkhandarya region, it is necessary to
expand free economic zones. For example, in Termez, logistics and production zones that
provide opportunities for trade with neighboring countries. It is necessary to support the entry of
https://ijmri.de/index.php/jmsi
volume 4, issue 3, 2025
315
local residents into the labor market along with new investment projects through the "Regional
Employment Program". It is necessary to establish interest-free or 2-4% annual loans for poor
families. Investment projects implemented in Surkhandarya region in recent years are important
for the regional economy. In particular, large-scale projects in the industrial and infrastructure
sectors are contributing to the creation of new jobs, the development of local entrepreneurship,
and most importantly, increasing the income of the population. As the investment climate
improves in Surkhandarya, small business and private entrepreneurship are becoming more
active. A significant decrease in poverty is observed in districts where investment flows have
increased.
List of used literature:
1. Resolution of the President of the Republic of Uzbekistan dated December 20, 2022 No. PQ-
456 “On the Investment Program for 2023”.
2. Decree of the President of the Republic of Uzbekistan dated December 3, 2022 No. PF-257
“On measures to radically reform the system of poverty reduction and employment provision”.
3. State Statistics Committee of the Republic of Uzbekistan. www.stat.uz
4. “Main indicators of socio-economic development of Surkhandarya region”, 2023, Termez.
5. MODELS OF VALUATION OF THE MARKET VALUE OF SHARES OF JOINT-STOCK
COMPANIES
AND
THEIR
INDIVIDUAL
ASPECTS.
Khurramov
Eshmamat
Khudoyberdievich
6. METHOD OF VALUATION OF THE VALUE OF ORDINARY SHARES OF JOINT-
STOCK COMPANIES. Khurramov Eshmamat Khudoyberdievich
7. INDIVIDUAL FEATURES OF VALUATION OF THE VALUE OF BONDS OF JOINT-
STOCK COMPANIES. Khurramov Eshmamat Khudoyberdievich
