This indicator is known in economics as the quintile coefficient, which illustrates the degree of social inequality. The fact that one-fifth of the citizens control nearly half of all financial resources indicates a significant concentration of capital in the country.
Economist Iskender Sharshiev, commenting on the situation for 24.kg, emphasized that this conclusion does not take into account the peculiarities of income distribution in our region. He noted that family ties play an important role in the country.
“In our society, mechanisms of kinship and celebrations, such as weddings, function actively. Wealthier relatives often help their less fortunate family members. A similar situation is observed with remittances from migrants. These informal connections effectively replace state mechanisms for resource distribution,” he says.
Iskender Sharshiev
Sharshiev added that capital concentration is a global trend, as assets tend to gravitate towards those who know how to manage them. At the same time, he expresses doubt about the effectiveness of taxes for equalizing incomes.
“In Western countries, a proportional tax is applied; however, the wealthy find ways to avoid it through loans. As long as you are repaying loans and interest, you are effectively not taxed. If we implement a similar system, we will have the same result—evasion schemes will start to operate here as well. Therefore, introducing a ‘luxury tax’ makes no sense,” the expert explains.
He also noted that it is necessary to accelerate the development of the economy as a whole, while social justice in society will be restored through traditional methods.
According to the National Statistical Committee, from January to September of last year, the nominal income of the population amounted to 736 billion soms, which is 7.4 percent more compared to the previous year.
The main source of income for citizens remains employment—income from labor activities accounts for almost 80 percent of the total structure. Social payments (pensions and benefits) make up 12.6 percent, while 5.1 percent comes from the sale of products from personal subsidiary farms.
