In Bukhara, 24-year-old Ravshan Akhrorov’s job as a waiter has become a critical source of financial stability, enabling him to support his parents and plan for his future. Working at the Old Bukhara Restaurant for seven years, he has not only out-earned his siblings and relatives working in the public sector but also purchased household appliances for his family. Ravshan is now saving to buy a home for when he gets married. His employer, Sharif Sharipov, credits the growth of his restaurant business to the tourism boom in Bukhara. Starting with a single location and 18 employees, Sharipov now runs three restaurants and employs 150 people. He attributes this success to Uzbekistan’s broader economic liberalization that began in 2017, which has opened the country to global tourism and investment, turning sectors like tourism and horticulture into engines of job creation and economic growth.
Since the economic reforms began, Uzbekistan has seen a remarkable surge in tourism revenues—from $1.3 billion in 2019 to $3.5 billion in 2024. The number of foreign visitors jumped from 2.7 million in 2017 to 10 million in 2024, while domestic tourism attracted 23 million travelers in the past year alone. Horticulture, too, has emerged as a growth driver, with agricultural exports more than doubling—from $680 million in 2017 to over $1.5 billion in 2024. These gains were made possible in part by policy changes such as the removal of restrictions on hiring workers without local residence permits (propiska), and World Bank-supported reforms that encouraged private sector engagement in agriculture and aviation. These reforms also improved labor mobility and connectivity, which are critical to tourism and economic diversification.
A key milestone in Uzbekistan’s agricultural reform has been the elimination of forced labor in the cotton industry, which once involved over two million people annually. With support from the World Bank, the sector has undergone significant restructuring, reducing state control and aligning cotton prices with global markets. In 2022, the International Labor Organization verified the end of systemic forced and child labor in Uzbekistan’s cotton harvest. The transition away from state-mandated cotton production has allowed farmers like Yoqutkhon Abdullaeva to diversify into more lucrative crops. A trained agronomist, Yoqutkhon now grows apples and wheat, thanks to better irrigation from the World Bank-funded Ferghana Valley Water Resources Management Project. Her income has nearly doubled, enabling her to employ more workers and improve living conditions for her family.
New job opportunities have also emerged for former cotton pickers like Nodira Zarifova. Alongside her husband, Nodira shifted to working in a textile factory, where wages and conditions are significantly better. Initially uncertain about adapting to the new role, she now feels confident and grateful for the transition. The improved income from factory work allows the couple to meet their basic needs and invest in home repairs. This shift reflects the broader national effort to modernize the labor market, ensure fair employment, and create inclusive economic opportunities.
Since 2019, a series of World Bank-supported lending operations has helped Uzbekistan create a more inclusive and transparent labor market. Legal reforms have improved worker protections and made the job market more accessible—particularly for women—by promoting equal pay, formalizing part-time and temporary work, and removing restrictions that limited labor mobility. These labor reforms have been reinforced by the modernization of the country’s social protection system, aimed at helping citizens move out of poverty and into employment. The Single Registry, a digital platform that automates income verification across multiple government databases, now delivers six types of social allowances. Spending on social assistance has increased from 0.8% of GDP in 2018 to 1.9% in 2023.
The broader social support framework has also improved access to subsidized healthcare, housing, training, and childcare services. These efforts have contributed significantly to reducing poverty: the national poverty rate has dropped from 17% in 2021 to 8.9% in 2024. Reforms have especially helped increase job opportunities for women, who often face societal barriers to employment. For 29-year-old Laylo Yusupova, working as a social worker in Samarkand is not only her first paid job but also a source of empowerment. Her salary helps support her household and has enabled her to earn a Bachelor’s degree in psychology. Laylo sees her work as more than just a job—it’s a means of establishing her role in society and securing a better future for her family.
Related Posts
