They extend the subsidy plan for disadvantaged families to 1,000 euros. The beneficiaries can use the sum to start an activity and become self-employed. Follow the Chinese model. However, there are fears that there will be a lot of waste: many Kyrgyz people want the money, but are not interested in using it for work ventures.
Moscow () – Kyrgyzstan has decided to take strong measures to combat poverty at a time of serious economic crisis and following the example of Chinese policies. In 2023, a grant of 100,000 som (about 1,000 euros) will be distributed to 10,000 families without resources so that they can generate an independent source of income. Last year a similar policy benefited 2,800 families, and the authorities say it was very effective.
However, Kyrgyz economists and businessmen warn that to give true continuity to these projects it is necessary to raise the financial knowledge of citizens in order to prevent these funds from being wasted. The local press cites several edifying examples, such as that of Almaz, a Bishkek citizen who last year, thanks to the so-called “Social Contract” subsidy, was able to open a small business.
As Almaz recounts, “we already received a small monthly aid and they told us that we could have 100,000 som at once, but that the subsidy was suspended. So I started buying fruits and vegetables and selling them in the markets, and I did quite well.” Money is tied to entrepreneurship: you need to submit a business plan, which is drawn up with the help of a special office, and if works, you can get a new loan after three years, and even double it to 200 thousand som, with advantages in credit installments and opening a bank account.
Another inhabitant of the capital, Stalbek Isakov, with the money he received, bought a Honda Civic in installments, began to work as a taxi driver, significantly raising his standard of living. “When my wife passed away, I was left with two minor children and without a job. She did the whole process going through 4-5 commissions and now I can pay the installments and I have enough left over to feed the whole family”. The Social Contract is offered to those who already receive survival allowances, which are suspended to encourage work activities.
The pilot project was launched in 2021 with the support of the UN, and applied to 50 families in the poor regions of Džumgal and Kadamžaj. July 15 became a stable government policy. According to data from the Ministry of Labor, 58% of the beneficiaries of the subsidy have dedicated themselves to the agricultural sector, 24% to industry, 10% to services and 7% have started small businesses. The minister, Nargiza Turkebekova explained that “we pay a lot of attention to the implementation of the initiatives, such as the preparation of food and veterinary visits for those who have bought productive cattle.”
Prime Minister Akylbek Žaparov has announced that these programs will continue and expand, committing more than 1 billion from the state budget, adapting the Chinese model that carefully digitizes all beneficiary data and controls poverty conditions with more detailed and personalized parameters. “In China, a lot of attention is paid to orphans, lonely people and retirees, offering repairs and heating in homes and technologies for daily life. The authorities link these measures to the granting of a production subsidy to one of the family members, which many can enjoy”, explained the Prime Minister.
One of the groups benefiting from State aid is made up of the women of the Nurluu kayrjmduu kyzdar association of young entrepreneurs, which since the beginning of the Covid-19 pandemic began helping destitute people who were unable to defend themselves against the illness. President Inaat Nimatova warns that for state aid to be really effective, an effort must be made to educate citizens: “In an orphanage in the Chujsky region we placed 10 sewing machines and recommended the managers to supervise the orphans 24 hours a day. We encourage them to learn a trade that will serve them for a lifetime. But it doesn’t always work out, most people just want free help and don’t make an effort to participate in social and work activities.”
However, the entrepreneurs assure that jobs can be generated. “At least 5,000 in the textile sector, if we only manage to ensure that all the money distributed is not wasted.”
