22 april 2018

Central Asia news

Uzbekistan: President Islam Karimov promised 500 USD salary for population

01.09.2010 14:00 msk


This year the average salary in Uzbekistan will reach 500 US dollars. This was announced by the President Islam Karimov on September 1 during the celebration of Independence Day.

In his annual speeches Islam Karimov presents more and more fabulous picture of present and future situation in Uzbekistan. However, the real life often times contests blind confidence of Uzbek President. One of the facts, evidencing the deteriorating level of life for majority of population in Uzbekistan is the stable growth of the number of migrant workers. According to official data, today, every third foreign worker in Russia is the citizen of the Republic of Uzbekistan. Unofficially, there are about 2 million Uzbek guest workers in Russian Federation.
"Comparing to 1990 the gross domestic product of our republic has grown by almost 3.5 times, which is 2.5 times per capita. By the end of this year the size of average salary will reach about 500 US dollars and increase by 14 times" the President informed. The full text of presentation is available at UzA.

Converting US dollars into Uzbek sums – non-convertible national currency of Uzbekistan – and according to President Karimov, the average citizen will get about 807 000 sum (at official rate) or 1 109 500 sum (at black market rate as of September 1).

However, according to the Ministry of Economy and State Statistics Committee of Uzbekistan, in June of 2010 the average salary reached only 476.4 thousand sum (little over 200 US dollars at black market rate). This means that, according to Mr. Karimov, the salary size must double within half of the year. The President did not mention what must happen in order to make Uzbekistanis feel themselves as "sum" millionaires.

Completely different situation is observed if we look at certain category – the size of minimum salary. Despite the officially announced impressive economic growth in Uzbekistan in the last successful year – August 2009 through August 2010 – the minimum salary increased only by two dollars (considering the appreciation of American currency): from 33.645 sum per month ($18.4 at real exchange rate) to 45.215 sum ($20.4).

It has to be mentioned that such "insignificant" concepts for Uzbek economists as the appreciation of foreign currency and inflation are not reflected in the reports on socio-economic development in Uzbekistan; at least, those reports, published in mass media.

It is also worth saying that according to official statistics, by the summer of 2010 the average salary in Russia exceeded 650 US dollars while in Kazakhstan it reached 500 US dollars.