“IMPROVING ECONOMIC MECHANISMS FOR POVERTY REDUCTION THROUGH INCREASED INVESTMENT ACTIVITY” (ON THE EXAMPLE OF SURKHANDARYA REGION).

Аннотация

Today, large-scale work is being carried out in Uzbekistan to increase investment activity. A number of projects are being implemented to ensure the proper use of investments. Thisarticle describes howtoincrease investment activity and thereby reduce poverty. Keywords:Economy, politics, investment, market, territory, entrepreneur, farmer, infrastructure, profession, mechanism, education, Uzbekistan, Surkhandarya, region, Afghanistan, Uzun, Kyzyrik, Baysun, Sherabad, China, Russia. In recent years, our country has been implementing large-scale reforms to increase investment activity. In particular, the legislation on the protection of investor rights has been improved. Free economic zones (FEZs): Customs and tax benefits are provided for enterprises operating in FEZs. Large-scale investment projects are being developed and implemented in each region. Taking the example of Surkhandarya region, industrial clusters are developing in Surkhandarya. Infrastructure for investors is being created in Denov, Boysun and Sherabad districts. Investors from China, Russia, South Korea, Iran and other countries have been attracted and are investing in the fields of electrical engineering, building materials, and processing of agricultural products. Investments are being attracted for the construction of water-saving technologies and greenhouses in Uzun, Kyzyrik, and Angor districts. Termez is becoming an international logistics center. Through the"Termez Cargo Center" project, cargo transportation is increasing in the border area with Afghanistan. Surkhandarya is a region located in the south of Uzbekistan. In addition to being a resource-rich region, Surkhandarya is also a region with a low economy. There are also regions with ahigh level ofpoverty. Themain reasons for poverty are: Lackof jobs. Low economicactivity. Technological obsolescence and insufficient infrastructure. Low level of education and skills. Although there are enough natural resources, thelevel oftheir processing islow. The solution to this can be to eliminate poverty by increasing investment activity. Work is being carried out in this direction in Surkhandarya region. In particular, light industry and food industry enterprises are being opened in industrial zones established in Denov, Termez and Sherabad, creating jobs for the local population. In districts with historical and natural resources such as Boysun, Sherabad, and Jarkurgan, local residents are being attracted to provide services through ecotourism and cultural tourism projects. Also, through the "Every Family is an https://ijmri.de/index.php/jmsi volume 4,issue3,2025 313 Entrepreneur" program, sources of income are being created at the household level. There are 6 mainmechanisms for poverty reduction.These are: 1.Jobcreation 2.Development and support ofentrepreneurship 3.Education andvocational training 4.Improvement ofthe social protection system 5.Territorial development and infrastructure 6.Special attention towomen and youth. To create jobs, it is necessary to attract investments in the industrial and service sectors. To ensure employment in rural areas, it is necessary to develop agriculture, animal husbandry, and crafts. It is necessary to train young people in modern, market-relevant professions. Reducing poverty by increasing investment activity means improving the standard of living of the population.Investments inject funds into theeconomy. Local or foreign investors invest in industry, agriculture, services and other sectors. Investments create new jobs. This isespecially important in regions such as Surkhandarya region. Thereason is that there are many labor resources there, but employment opportunities are limited. By increasing investment activity, it is possible to obtain stable funds. By increasing investment activity, support mechanisms for entrepreneurship will also expand. Along with investments, roads, electricity networks, water supply, and the Internet will also improve. Surkhandarya region is located in the southern part of Uzbekistan and is considered a region with agricultural, energy, trade and transit potential. According to official statistics: Population:over3million Poverty rate (2023): around 15–18% Unemployment rate: around 10% Alargepart of theworking-age population ismigrating abroad for labor These indicators indicate the urgency of ensuring employment and reducing poverty in Surkhandarya by increasing investment activity. Current status of investment activity in Surkhandarya region Anumberofmajor projects are being implemented in2022–2024: Project fortheinternational cargo terminal “Termez Cargo Center” Constructionofthe railway line“Termez-Mazar-i-Sharif” (will increaseregional transit capacity) Foreign investmentsare being attracted in theenergy, textileand agricultural clusters Investment indicators: Total investmentvolumein 2023: 8.2trillion soums Ofwhich, foreign direct investment:1.4trillion soums. To increase investment activity and reduce poverty in