Impact of Remittances on Poverty in Uzbekistan: World Bank Study
The share of Uzbek migrants choosing Russia has declined to 57%, raising concerns about potential impacts on poverty rates in Uzbekistan. A recent study by the World Bank on migration trends in Europe and Central Asia highlighted the importance of remittances from abroad in alleviating poverty in the region.
The report, titled “The Journey Ahead: Supporting Successful Migration in Europe and Central Asia,” examined migration patterns and their effects on government policies. As one-third of the world’s total migrants reside in Europe and Central Asia, understanding migration flows is critical for regional development.
In 2020, nearly two-thirds of the four million migrants leaving Kazakhstan headed to Russia, with a significant portion also choosing Germany for work. Migrants from Kyrgyzstan and Tajikistan exhibited even higher economic dependence on Russia, with over 80% of labor migrants from these countries heading to Russia as of 2023.
However, the flow of Uzbek migrants is more diversified, with 57% working in Russia, 15% in Kazakhstan, and 10% in Ukraine. Despite this diversification, the study highlights the potential impact of a decrease in remittances on Uzbekistan’s poverty rate, which could rise from 9.6% to 16.8% without these crucial financial inflows.
The impact of Russia’s invasion of Ukraine on migration flows in the region was also discussed in the report. The geopolitical shock caused by the conflict resulted in reduced employment opportunities abroad and declining remittance inflows to countries like Kyrgyzstan and Uzbekistan, which historically had strong ties to Russia.
The study also highlighted gender disparities in temporary migration, with a predominant male presence in short-term labor migration from Central Asian countries. Additionally, the report noted that highly skilled emigration is less prevalent in Central Asia compared to other regions, indicating a dominance of low-skilled labor migration.
To effectively manage migration in the region, the World Bank offered several recommendations, including defining different types of migration for policy development, enhancing labor competitiveness and human capital development, and developing safe and organized migration mechanisms. By implementing these recommendations, countries in Europe and Central Asia can better address the challenges and opportunities presented by migration.
