At least 100,000 soms will be allocated to 100,000 families in two districts of Kyrgyzstan. The Ministry of Labour, Social Security and Migration and the UN World Food Programme are launching a pilot project on social contract. The ministry’s press service reported.
The project is being piloted in Kadamdzhai and Dzhumgal districts to help 100 families to get out of poverty. It will provide a one-time cash grant of 100,000 soms to support the local population.
«The social contract is an agreement between low-income families and the state, under which vulnerable families receive a cash grant to start income-generating activities along with a comprehensive support package that includes financial literacy training, assistance in developing a business plan, vocational or agricultural training, social services and mentoring for successful long-term livelihoods-related business,» the Labour Ministry said.
The project targets households living below the national poverty line with business ideas, start-up assets and basic knowledge for proposed activities such as livestock breeding, sale of dairy products, sewing services, greenhouses and other initiatives.
In certain cases, social contracts are also implemented in cooperation with local businesses and entrepreneurs, which create sustainable employment opportunities for targeted low-income families.
The pilot project will also serve as a learning opportunity to improve the project strategy for its further expansion.
