THE ROLE OF THE NEIGHBORHOOD IN THE DEVELOPMENT OF NEW UZBEKISTAN

Аннотация

This article provides an in-depth analysis of the economic and social role of mahallas in the development of New Uzbekistan, emphasizing their significance in local governance, social stability, and economic progress. As a unique form of community self-governance, mahallas play a crucial role in implementing state policies, ensuring social welfare, and supporting economic initiatives at the grassroots level. In recent years, Uzbekistan has modernized and institutionalized the mahalla system to align with its economic transformation and development strategy. The mahalla now functions as a key economic driver, assisting in job creation, small business support, rural development, and financial assistance programs. This article explores how mahallas contribute to sustainable economic growth by facilitating microfinance, employment generation, vocational training, and local entrepreneurship. Using statistical data and economic analysis, the study evaluates the impact of mahalla-based initiatives on Uzbekistan’s GDP, employment rates, and social development indicators. Additionally, it presents recommendations for strengthening the economic role of mahallas through policy reforms, digitalization,and increased financial autonomy. Kеywоrds:Mahalla, community self-governance, social development, New Uzbekistan, economictransformation, neighborhood councils, social welfare INTRОDUСTIОN Uzbekistan is undergoing one of the most dynamic economic transformations in its history, driven by comprehensive reforms in governance, industry, and social policies. As part of the New Uzbekistan strategy, the government is emphasizing localized governance models that bring decision-making closer to the people. In this context, the mahalla (neighborhood community) remains one of the most vital institutions, serving as a bridge between citizens and thestate. The mahalla system is not just a social institution, but also an economic enabler. Through community-driven governance, mahallas help: Distributefinancial resources efficiently to thoseinneed. Facilitateemployment opportunities and reduce poverty. Supportsmall and medium-sized enterprises (SMEs)andlocal entrepreneurs. Ensuretheeffective implementation ofgovernment welfareprograms. Enhance social stability, which is a keyfactor in sustainableeconomic growth. MАTЕRIАLSАND MЕTHОDS The mahalla system in Uzbekistan has deep historical roots, originating as a self-governing community structure that has adapted over time to meet the changing needs of society. The traditional mahalla functioned as a unit of social organization, responsible for local decision- making, dispute resolution, and community support. Over the centuries, it has evolved from an page336 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue02,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai informal governance structure to a legally recognized institution, playing a critical role in Uzbekistan’spolitical, economic, and social framework. Historically, mahallas were essential for managing local affairs and ensuring the welfare of residents. In the absence of centralized governance, they provided a strong communal bond, where people worked together to solve common problems, share resources, and maintain cultural traditions. During the Soviet era, mahallas were integrated into the state system but retained their core functions of social support and community engagement. Following Uzbekistan’s independence in 1991, the government recognized the importance of reviving and strengthening themahallasystem as apillar ofnational identity and governance. RЕSULTSАNDDISСUSSIОN In order to formalize mahallas as official governance units, the Uzbek government enacted a series of legal reforms that provided greater autonomy and financial independence to these institutions.Someofthekey legislativedevelopments include: The Law on Mahalla Institutions (1999, revised in 2020) – This law defined mahallas as self- governing public organizations responsible for social services, dispute resolution, and local governance [1]. Presidential Decree on Mahalla Strengthening (2021) – This decree expanded the administrative and financial powers of mahalla councils, allowing them to participate in economic and social planning[2]. The National Mahalla Development Program (2022–2026) – This program introduced digital governance tools, improved citizen participation mechanisms, and strengthened the role of mahallas in economicdecision-making [4]. The government’s commitment to decentralization has ensured that mahallas play an increasingly active role in economic development, social cohesion, and policy implementation. By integrating modern technology and governance mechanisms, mahallas are now more efficient andcapableof addressing theneeds oftheir communities. Mahallas serve as the foundation of Uzbekistan’s social structure, providing essential services, so