ADB is providing $500 million to Uzbekistan to implement a program that will help the government ensure adequate food supplies at stable prices and provide social assistance to the population, Uznews reported.
Through the Active Countercyclical Spending Resilience Program (ACSP), ADB will provide critical financial support to the government of Uzbekistan to implement its $1.2 billion Countercyclical Development Spending Program.
The Uzbek government’s program aims to improve food security and price stability, provide direct social assistance to low-income families, the elderly and other vulnerable groups, and support the unemployed and returning migrant workers.
“As Central Asia has emerged from the pandemic, the region has faced the economic fallout of the (Russia-Ukraine) war, making life especially difficult for vulnerable people. The ACSP program is in line with the strategic priorities of the government of Uzbekistan and will help improve economic resilience by promoting social protection and inclusion,” said Evgeny Zhukov, Director General of ADB’s Central and West Asia Department.
Developments in the world due to the war in Ukraine have seriously affected Uzbekistan. These impacts include higher trade costs, higher inflation, higher unemployment and reduced remittances. This, in turn, reduces the purchasing power of low-income households, weakens private consumption, and leads to increased poverty.
It will also help the government of Uzbekistan to support social support payments to more than 8.9 million vulnerable people until December 2022.
ADB will also provide technical assistance to support monitoring and evaluation, which will be funded by a $400,000 grant from the Special Fund for Technical Assistance.
ADB already became of of largest financial source to assist Central Asian states after they gain an independency in 1991.
Oct. 5, 2022