Improving The Use of The Social Insurance System in Reducing Poverty

Poverty reduction has become a central policy priority in Uzbekistan as part of broader socio-economic reforms aimed at improving living standards and strengthening social protection. In this context, improving the use of the social insurance system is both relevant and feasible because social insurance can stabilize household income, reduce vulnerability to social risks (unemployment, illness, disability, old age), and prevent households from falling into poverty. The purpose of this article is to assess how effectively the social insurance system contributes to poverty reduction in Uzbekistan and to propose directions for improving its use as a poverty-reducing instrument. The study is empirical and applies a mixed-methods approach, combining household survey data analysis with document review and expert interviews. Descriptive statistics and correlation testing are used to evaluate coverage, benefit adequacy, and poverty-related indicators. The results identify major constraints limiting the poverty-reducing capacity of social insurance, including incomplete coverage (especially among informal workers) and insufficient benefit adequacy for meeting basic needs. The study substantiates that households with social insurance coverage demonstrate higher average income levels and lower poverty risk than uninsured households, confirming the protective effect of social insurance. Theoretical significance lies in contributing context-specific evidence from a transition economy. Practical significance is associated with improving policy design through expanded coverage, enhanced benefit adequacy, and better coordination between social insurance and targeted social assistance, thereby increasing the overall effectiveness of poverty reduction efforts.

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