Analysis of Accumulative Pension Scheme in Uzbekistan

Socially oriented method of transition to market economy sets all priorities based on the aspects of development policy and current socio-economic condition. Social protection and welfare policy plays the central role and reflects essence of tendency of national development and prosperity of population. Wide range of social protection forms including various pension schemes hold particular importance in execution of state social policy. Accumulative pension scheme is a newly introduced type of public pension provision which has significance and multifaceted importance for prospective future. This article highlights the structure, importance and role of accumulative pension scheme. One of the prerequisites of market economy is the protection of human rights and opportunities. Government must take legislative measures to enhance the life conditions of population and support their attempts by launching the legislative means. Development of market relations, improvements in public- private ownership ratio have the direct effect on social protection system. In this respect, in his speech the President of the Republic of Uzbekistan Islam Karimov stressed that Uzbekistan achieved the socio-economic stability, improved through diversification and modernization, life condition of nation improved significantly due to stable and dynamic growth of national economy in the joint meeting held at the Cabinet of Ministers dedicated to socio-economic achievements in 2013 and priority tasks for 2014. In 2013 salaries and pensions increased 20,8 per cent, real income of population rose 16 percent. Public spending on social sector was kept in the highest share and constituted 59,3 percent of total public expenditures (Karimov, 2014). This indicator serves for ensuring the national prosperity and social protection. While complex strategy of socially oriented market economy infrastructure is reflected in five broad principles, it encompasses the all aspects of life. In order to create strong, systematic and flexible mechanism of social protection during transition to market economy Uzbekistan established the accumulative pension scheme in 2010 according to the Presidential Decree no.4161 "On the further improvement measures of civil