Makhalla within the new system of private entrepreneurship development

The President of the Republic of Uzbekistan Shavkat Mirziyoyev initiated the extension of the best employment practices in development and approval of roadmaps for the implementation of new employment systems in makhallas for the population, especially for youth and women by providing civil society institutions the access to the National base of vacancies, including on the introduction of new vacancies into the database and the issuance of employment referrals across the country.

Notably, the president strengthens the power of “makhallas” as local civil society institutions – a driving force in the development of economy and increasing the effectiveness of economic policy.

The head of state highlights the necessity of studying the aspirations and demands of each family, helping to solve problems, creating jobs by visiting families at homes.

Makhalla as a unique institute revived in the years of independence has actively been participating in the development of private entrepreneurship, family business and craftsmanship. Relevant legal mechanisms were created. Those are facilitated by the commissions at citizens’ assemblies, advisory centers for the promotion of business development.

A system of visiting families at homes is being developed to clarify the need for concessional loans. State governing bodies, people’s receptions at places  chairman of makhallas, representatives of the Women’s Committee, the Youth Union and Trade Unions are working in close collaboration.

In necessary cases, women entrepreneurs who possess a newly established business are provided with vacant buildings in makhallas. Each makhalla has a list of women who want to get a consumer loan with a minimum interest rate.

Shops selling seeds, seedlings, mineral fertilizers, and objects of agriculture are organized in guzars of makhallas. On the other hand, the leaders of the national reception offices, along with the chairman of makhallas visit homes and help the population. Funds from the reserve budget of local budgets are allocated to low-income, socially vulnerable families for the delivery of seeds of vegetables that are on demand in the market: fruit trees and grape cuttings. It particularly pleases that the culture of using personal plots is increasing.

Nowadays, makhalla is directly involved in the development of projects of socio-economic programs at the places and establishment of systemic cooperation in ensuring their implementation.

Family Business Centers established with participation of Makhalla Public Charitable Foundation, the Women’s Committee of Uzbekistan, “Tadbirkor Ayol” Association of Business Women of Uzbekistan and Centers of Women’s Business of the Chamber of Commerce and Industry of Uzbekistan.

Position of a deputy chairman of the citizens’ assembly – advisor on promoting entrepreneurship, owners of homestead lands and improvement affairs was introduced on a voluntary basis in order to improve the activities of public commissions at citizens’ assemblies.

Job fairs are organized in urban centers and makhallas to ensure the employment of youth facing job difficulties after graduating from educational institutions.

In this regard, small industrial zones are organized in a number of makhallas to stimulate the growth of territories. Besides, makhallas turn into high-tech towns-territories.

Another significant innovation: entrepreneurship in the country is developing based on “one makhalla – one type of product” principle. Taking into account the peculiarities of each region, practical measures are taken for the specialization of each makhalla in fruit-growing, greenhouse farming, animal husbandry, poultry farming, beekeeping, rabbit breeding, turkey breeding and other areas.

Many people have intensions to establish their own businesses. Not everyone, however, are informed about the ways of delivering the necessary equipment. Exhibitions of mini-technologies are held to provide assistance in gaining the necessary knowledge.

Fergana’s experience in creating clusters is popularized and widely implemented in makhalla plans in establishing the enterprises for 300-400 workplaces, and in the adjacent territory of 1-2 hectares – outbuildings for the cluster.

Creating mini-clusters means securing entrepreneurs who have a set of business skills and achieved positive results in this industry; the families who took steps towards engaging in new entrepreneurial activities in makhallas, taking into account the specialization of rural areas and makhallas (handicrafts, sewing, growing some types of agricultural products, organization of compact greenhouses and others).

An emphasis is paid to supporting entrepreneurs’ initiatives on the organization of computer centers, in which tests, quizzes, development strategies and other useful programs are used. Those serve to expand the knowledge and horizons of the youth.

The plans include the construction of residential complexes in line with “tourist makhalla” project standards (in traditional architecture) for dehkans and farmers who have the intention and ability to receive tourists within the framework of rural and ethnographic tours (traditional life, crafts, cooking, etc.).

The assistance of law enforcement agencies to development of entrepreneurship in a fixed territory, when the provision of employment for the population, especially young people is considered as a vital factor in improving the crime related situation in the makhalla.

From now on, the socio-economic state of makhallas’ territories in the country is estimated based on the state of social infrastructure and its environment; the economic situation and the state of social facilities in the following categories: “exemplary”, “good” and “unsatisfactory”.

The Year of “Active Investments and Social Development” according to the State Program welcomes the shift from the traditional mechanism of cooperation between the state governing bodies and citizens’ assemblies to the triple mechanism, with the addition of business entities.

The development of entrepreneurship in makhallas occurs in consistent and systematic stages within the framework of implementation of the programs “Obod qishloq” (Prosperous village), “Obod makhalla” (Prosperous neighborhood), “Each family entrepreneur”, “Yoshlar – kelajagimiz” (Youth is our future).

The country continues to hold various events in order to widely study foreign experience and popularize domestic one, conduct negotiations with the representatives of international organizations on the joint projects as well as to establish cooperation between representatives of the state governing bodies, business circles and the population.

The positive results are echoed in the development of entrepreneurship and improvement of the business environment, expansion of the scale of family business, effective use of homestead plots, and ensuring employment of the population in makhallas.

Makhalla residents are aware that labor is at the heart of wealth and well-being. That is why the harmony warms the families of makhallas, ultimately making it a better place to live.