Current State and Development Trends of Financing State Target Programs through Commercial Banks in Uzbekistan.
Abstract
State target programs are globally recognized as key instruments for poverty reduction, welfare improvement, and sustainable socio-economic development. In Uzbekistan, these programs have gained prominence in recent years, with initiatives such as “Every Family is an Entrepreneur” aimed at promoting family business and reducing unemployment through concessional lending provided by commercial banks. Despite tangible results, challenges remain in financing efficiency, transparency, and sustainability, necessitating deeper analysis of organizational and financial mechanisms. This study investigates the role of state target programs in socio-economic development and evaluates the dynamics of their financing through commercial banks between 2018 and 2024. Findings reveal that concessional loan allocations fluctuated, peaking at 16 trillion UZS in 2018–2020 but declining to 6 trillion UZS by 2024. Simultaneously, the share of small businesses in GDP dropped from 61.7% in 2018 to 47.5% in 2024, with regional disparities ranging from Jizzakh’s 86.3% to Navoi’s 42.3% at the outset. By integrating comparative international experiences with Uzbekistan’s structural reforms, the study highlights both the positive outcomes in employment and entrepreneurship and the systemic decline in small business contributions to GDP. The results underscore the importance of enhancing transparency, improving oversight, and aligning concessional financing with market realities to ensure long-term sustainability of state target programs.
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