The infographic of the Center for Economic Research and Reforms (CERR) presents the methodology and structure of a preliminary estimate of the cost of minimum consumer spending in Uzbekistan.
The main purpose of calculating the MCS is to identify the poor or those in need of social protection of the population and ensure their basic needs.
Determining the Minimum Consumer Expenditure is a very difficult and time-consuming task.
For example, it took Russia 10 years to determine the cost of living and the minimum wage.
MCSs are determined for the republic as a whole, taking into account the consumer characteristics of the studied 10 thousand households in 2019.
The process of the calculation of the MCS was carried out together with the international experts of the World Bank.
The calculation of the MCS was carried out on the basis of a globally recognized calculation methodology widely used by most countries of the world and international organizations to combat poverty.
The average minimum consumer spending per household member amounted to 440,000 soums per month (food - 69% and non-food - 31%).
The calculation is based on an estimate of the average minimum expenditure on consumer needs of the population.
The value of the MCS in Uzbekistan (440 thousand soums) is 27% of GDP per capita. For comparison, in Kazakhstan this figure is 11%, in Turkey 17%, in Russia 19%.
The determination of the level of government payments to the population based on the calculation of the MCS indicates the government's intention to move from a decision-making method based on the opinions to a method based on facts and empirical results.