Module 2: Macroeconomics, Sector Development and Poverty Reduction

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This module deals with the ways in which macroeconomic and sector policies affect poverty reduction directly (inflation rate, tax structure, and agriculture growth) and indirectly through its impact on growth. It was emphasized that growth is necessary for poverty reduction, but not sufficient if the benefits of growth are not equally distributed. This module also stressed the importance of pro-poor budgeting, and the importance of a well-thought out financial plan when developing poverty reduction strategies.

Aside from macroeconomic policies, other key topics covered here that were particularly relevant to the Uzbekistan situation included agricultural pricing, land reform, and rural poverty. Also highlighted were the informal sector, SME development, private sector development and the role of the state, infrastructure support, and employment policies.

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