Developing a Regionally Differentiated Model for Poverty Reduction Through the Development of the Service Sector

The article substantiates a regionally differentiated model of poverty reduction based on the development of the service sector in Uzbekistan. It is shown that, despite a sharp fall in the national poverty rate (from 17% in 2021 to 8.9% in 2024 and 5.8% in 2025), poverty remains unevenly distributed across regions, while the level of service sector development differs several-fold between Tashkent city and peripheral regions. The model includes three components: a composite Service Development Index of regions (SDI), a typology of regions based on the "service development - poverty" matrix and cluster analysis, and a panel econometric specification estimating cluster-specific elasticities of poverty with respect to services. Four types of regions are identified and differentiated priorities are proposed for each: from knowledge-intensive business services in the metropolitan area to social, household and tourism services in high-poverty regions. The results can be used in preparing regional programmes for poverty reduction and employment.