President Calls for Mahallas to Become Centers of Employment and Entrepreneurship
Uzbekistan
Boosting employment, expanding entrepreneurship, and strengthening the role of mahallas in solving social issues were the key topics of a meeting chaired by President Shavkat Mirziyoyev. The President announced new support mechanisms for local communities, reforms of the "mahalla seven" system, and greater accountability for local officials.
During the meeting, it was noted that participation of low-income families in development projects remains very low in several districts. In 32 mahallas, where nearly 960 vulnerable families live, no residents secured permanent employment. In addition, banks in 883 mahallas failed to launch new projects or establish effective cooperation with entrepreneurs.
As a result, 152 local officials have been dismissed since the beginning of the year, while nearly 700 others have faced disciplinary action. The President stressed that every mahalla should become a genuine "center of trust, support, and opportunity."
A new operating model was presented in which mahalla chairpersons, together with local bankers, identify the needs of each family, develop business projects, and facilitate access to concessional financing. Mahalla leaders are also expected to gain authority to initiate land auctions for the construction of private kindergartens, schools, clinics, and sports facilities.
Each "mahalla seven" team will receive grants of 10 million soums for community projects, with a total of 240 billion soums allocated nationwide. A National Institute for Mahalla Development will also be established to provide methodological support, professional training, and modern development solutions.
The banking system will undergo significant changes as well. Within two weeks, 400 new district bankers will be selected and trained, while from August 1 they will work under a KPI-based performance system focused on entrepreneurship, employment, and household income growth.
An additional 2 trillion soums in concessional financing has been allocated for family business projects, while loan rates for the most disadvantaged mahallas have been reduced from 17.5% to 12%. State-owned banks have also been tasked with introducing integrated agricultural value chains in 1,000 mahallas, covering production, processing, storage, packaging, and sales.
As a result, 152 local officials have been dismissed since the beginning of the year, while nearly 700 others have faced disciplinary action. The President stressed that every mahalla should become a genuine "center of trust, support, and opportunity."
A new operating model was presented in which mahalla chairpersons, together with local bankers, identify the needs of each family, develop business projects, and facilitate access to concessional financing. Mahalla leaders are also expected to gain authority to initiate land auctions for the construction of private kindergartens, schools, clinics, and sports facilities.
Each "mahalla seven" team will receive grants of 10 million soums for community projects, with a total of 240 billion soums allocated nationwide. A National Institute for Mahalla Development will also be established to provide methodological support, professional training, and modern development solutions.
The banking system will undergo significant changes as well. Within two weeks, 400 new district bankers will be selected and trained, while from August 1 they will work under a KPI-based performance system focused on entrepreneurship, employment, and household income growth.
An additional 2 trillion soums in concessional financing has been allocated for family business projects, while loan rates for the most disadvantaged mahallas have been reduced from 17.5% to 12%. State-owned banks have also been tasked with introducing integrated agricultural value chains in 1,000 mahallas, covering production, processing, storage, packaging, and sales.
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