Contribution to the Support Program for Socially, Environmentally, and Financially Sustainable Cotton Value Chain in the Republic of Uzbekistan Multi-Donor Trust Fund (MDTF)


The goal of the contribution to the World Bank’s Multi-Donor Trust Fund is to strengthen Uzbekistan’s cotton value chain, by making it environmentally more sustainable, promoting value addition to raw cotton and accessing international markets, generating income opportunities, ensuring decent work and inclusion of woman and vulnerable groups. The Projects will help to sustain progress achieved regarding labor rights and eliminating forced labor. It supports the Uzbek green growth strategy.

Land/Region Thema Periode Budget
Uzbekistan
Beschäftigung & Wirtschaftsentwicklung
Schaffung von Arbeitsplätzen
Sozialdialogs
01.11.2022 - 31.12.2025
CHF  1’000’000
Hintergrund

Agriculture remains important for poverty reduction in Uzbekistan and generates 20% of GDP. Cotton is the dominant cash crop and alone its harvest provides 2 million seasonal jobs that often involved child and forced labor. Civil Society Organizations launched the Cotton Campaign to boycott Uzbek cotton and put pressure on the Government. In response, the World Bank together with the International Labour Organization established the Multi-Donor Trust Fund “Support Program for the Socially, Environmentally, and Financially Sustainable Production of Cotton in Uzbekistan” that included third-party monitoring of labor conditions. Early 2022 the boycott was lifted, since Uzbekistan eliminated forced and child labor.

More income-generating opportunities for vulnerable groups, expanding value adding diversification and access to international markets are thus imperative.

Ziele Contribute to the development of a socially, environmentally and financially sustainable cotton value chain that is free of forced labour, environmentally responsible, generating more income opportunities, including for woman and vulnerable groups, and based on principles of fair trade, non-discrimination and decent work.
Zielgruppen
  • Farmers and agricultural communities; textile processors and other cotton cluster firms, international brands; government officials at all levels; civil society groups and trade unions; international brands
  • Targeted beneficiaries are women, persons with disabilities, and their families, unemployed rural poor
Mittelfristige Wirkungen

Outcome 1: The cotton value is free of forced labor: 
The Project will help to sustain the gains achieved in terms of improved labor rights in and beyond the cotton sector, which is a prerequisite to attract international brands to source textiles from Uzbekistan.

Outcome 2: Uzbekistan’s agriculture is more environmentally sustainable:
The Project will support the sustainable intensification and/or diversification of agriculture production and strengthen environmental monitoring as part of the Government’s green growth strategy.

Outcome 3: Income-generating opportunities for vulnerable groups in the cotton value chain are in place:
The Project will support the creation of income generating opportunities for rural woman, and other vulnerable groups in higher value parts of the cotton chain.

Resultate

Erwartete Resultate:  

  • Reports on farmland tenure security, sustainability of cotton textile clusters, job market analysis
  • Civil society monitoring reports on labor and environmental conditions
  • Management training including on non-discriminatory hiring and worker grievance mechanisms in cotton and textile clusters
  • Awareness-raising products about the benefits of employing women and persons with disabilities
  • Study tours, conferences and other outreach events for international textile and garment brands


Resultate von früheren Phasen:  

  • Mechanisms to monitor labor and environmental conditions in the cotton value chain are established to ensure compliance with international standards
  • Awareness about the legal and policy requirements with respect to labor practices and environmental sustainability have increased
  • Capacities of producers, private sector cotton clusters, government and civil society are strengthened
  • Role of the state in the cotton sector has been reduced
  • Production targets and interference in trade and price setting have been eliminated
  • Systemic use of forced labor has been eliminated and the international boycott of Uzbek cotton ended


Verantwortliche Direktion/Bundesamt DEZA
Projektpartner Vertragspartner
Internationale Finanzinstitution (IFI)
  • Other WB


Koordination mit anderen Projekten und Akteuren Coordination and synergies are expected with the Swiss Vet4Uz, NWRM and CR IWRM in ZRB projects; IFC/ILO Better Work Program; Better Cotton Initiative; FAO; USAID; JICA; EBRD.
Budget Laufende Phase Schweizer Beitrag CHF    1’000’000 Bereits ausgegebenes Schweizer Budget CHF    1’020’000 Projekttotal seit Anfangsphase Schweizer Beitrag CHF   5’000’000 Budget inklusive Projektpartner CHF   1’000’000
Projektphasen Phase 1 01.11.2022 - 31.12.2025   (Laufende Phase)