USING DIGITAL ECONOMY OPPORTUNITIES TO REDUCE POVERTY

This study examines how digital economy opportunities are being harnessed to reduce poverty in the Republic of Uzbekistan. Adopting an IMRAD framework, the paper draws on official statistics from the National Statistics Committee, the World Bank, the Central Bank of Uzbekistan, the UNDP, and IT Park Uzbekistan, covering the period 2016–2026. The results show that Uzbekistan's national poverty rate fell from 17.0 percent in 2021 to 5.8 percent in 2025, meeting its halving target three years ahead of schedule, alongside a parallel expansion of digital infrastructure: internet penetration reached 89.0 percent of the population in 2025, digital payment usage among adults rose from 39.0 percent in 2021 to 71.2 percent in 2025, and IT service exports grew from 140 million US dollars in 2022 to 344 million US dollars in 2023, with a government target of 5 billion US dollars by 2030. The paper identifies four channels through which the digital economy contributes to poverty reduction: digital financial inclusion, e-government-enabled social protection targeting, IT-sector job creation, and e-commerce-driven rural market access. The discussion situates these findings within the 'Digital Uzbekistan – 2030' strategy and the National Development Strategy 2022–2026, arguing that digital tools are most effective at reducing poverty when combined with complementary investments in digital literacy and rural connectivity. The paper concludes that sustaining Uzbekistan's poverty-eradication trajectory toward 2030 will depend on closing the remaining urban–rural digital divide and deepening digital-skills training for vulnerable populations.