This article provides an in-depth analysis of the economic and social role of mahallas in the development of New Uzbekistan, emphasizing their significance in local governance, social stability, and economic progress. As a unique form of community self-governance, mahallas play a crucial role in implementing state policies, ensuring social welfare, and supporting economic initiatives at the grassroots level. In recent years, Uzbekistan has modernized and institutionalized the mahalla system to align with its economic transformation and development strategy. The mahalla now functions as a key economic driver, assisting in job creation, small business support, rural development, and financial assistance programs. This article explores how mahallas contribute to sustainable economic growth by facilitating microfinance, employment generation, vocational training, and local entrepreneurship. Using statistical data and economic analysis, the study evaluates the impact of mahalla-based initiatives on Uzbekistan’s GDP, employment rates, and social development indicators. Additionally, it presents recommendations for strengthening the economic role of mahallas through policy reforms, digitalization, and increased financial autonomy.

Mahalla, community self-governance, social development, New Uzbekistan, economic transformation, neighborhood councils, social welfare

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