CC BY
8Khurshid ASATULLAYEV,
Professor of Tashkent Financial Institute, Candidate of Economic Sciences Hilola TOKHTASHEVA, student of Tashkent Financial Institute
DIGITAL ECONOMY AND ITS PROSPECTS FOR DEVELOPMENT
IN UZBEKISTAN
Thanks to the development and application of information technology, many conveniences are emerging in our daily lives. Let's say we want to eat, but we don't want to cook it, no problem, we can order any food online through the home delivery service online. Or we need to transfer money to a friend, there is no need to go to a bank or financial institution, we can transfer money through mobile banking. We can do many of these types of services online, via smartphone or computer. In recent times, the concept of "digital economy" has been used many times. Indeed, in many developed countries, the digital economy has had a significant impact on their development factors. The digital economy plays an important role in the life of society. At a time when the concept of digital economy was relatively recent, it was discovered in 1995 by Nicholas Negroponte, an American scientist at the University of Massachusetts. The scientist spoke about the possible changes in the transition from the old economy to the new economy, following the intensive development of information and communication technologies.
The digital revolution has transformed our lives and societies with unprecedented speed and scale, delivering immense opportunities as well as daunting challenges. New technologies can make significant contributions to realizing the Sustainable Development Goals, but we cannot take positive outcomes for granted. We must urgently improve international cooperation if we are to achieve the full social and economic potential of digital technology, while avoiding unintended consequences. The so-called digital economy continues to extend its scope across every facet of the conventional analog economy, and more and more commercial purchases are going online. For enterprises, this ensures they have access to new platforms to meet existing consumers, as well as new markets through a compelling digital offering to increase market share. The ever-expanding digital economy offers consumers greater access to goods and services at their fingertips, as well as greater ease of viewing and comparing their knowledge. This helps to foster more aggressive pricing among suppliers, too. In certain cases, the emergence of digital platforms in developing economies has enabled industries to effectively bypass the development
processes seen in other countries, turning straight to digital solutions rather than engaging in large hard infrastructure networks.
The digital economy is a business activity in which the main factor in the production and service is data in the form of numbers, which can be processed by processing large amounts of information and analyzing the results of various types of processing. To implement more efficient solutions than the previous system in production, services, technologies, devices, storage, delivery of products. In other words, the digital economy is an activity associated with the development of digital computer technology in the provision of online services, electronic payments, Internet commerce, crowdfunding and other types of industries. E-commerce, internet banking, e-payments, internet advertising and, at the same time, internet games are considered to be the main elements the digital economy development.
Digital economy refers to an economy that is based on digital computing technologies, although we increasingly perceive this as conducting business through markets based on the internet and the World Wide Web. The digital economy is also referred to as the Internet Economy, New Economy, or Web Economy. Increasingly, the digital economy is intertwined with the traditional economy, making a clear delineation harder. It results from billions of everyday online connections among people, businesses, devices, data, and processes. It is based on the interconnectedness of people, organizations, and machines that results from the Internet, mobile technology and the internet of things.
Of course, the development of information and communication technologies, the introduction of modern technologies in our lives can give many positive opportunities in everyone's life. With the development of digital technology, a person can use the service he needs faster, save a lot of money by buying the products he needs online. For example, buying an electronic version of a book can make it much cheaper for you to buy a printed version of that book. Or an ordinary consumer can be an entrepreneur himself, engaging in online shopping without leaving home.
Other benefits of developing a digital economy include:
> increase of labor efficiency in production;
> increasing the competitiveness of companies;
> reduction of production costs;
> creation of new jobs;
> emergence of new modern professions;
> overcoming poverty and eliminating social inequality.
These are just a few of the advantages of the digital economy. The development of the digital economy will have a positive impact on our daily lives, provide many additional opportunities for the average user, and further ensure the growth and development of the market.
Risks posed by the digital economy:
> Cyber attack risk, personal data protection issues;
> "digital slavery" (the use of millions of people's data to later control their behavior);
> many industries and occupations may disappear following the rise in unemployment, the development and application of information technology.
The study of world experience has shown that in developed countries in the digital economy, the state (government) market "game" rules are set for all participants in the game, and the most important task of the state is to create a different, equal and accessible environment. That is, whether there is a large company in the market or a small business, they are equal. They are given the same opportunities. Government regulations are enforced and ultimately the average consumer is guaranteed to receive a quality, modern service or product. This means that for the development of the digital economy, the state should create equal conditions for all, as transparent as possible market rules, laws, contracts, laws based on market demand should provide freedom for the game participants.
Like other countries in the world, a digital economy is developing in Uzbekistan. With the introduction of information technology in our daily lives, many opportunities are being created for ordinary people. Nowadays, we can order a lot of groceries and meals without leaving home, and they can deliver them to our home. However, it should be noted that the digital economy in Uzbekistan is developing several times slower than the potential of Uzbekistan. That is, an opportunity, the necessary resources are available, but development is much slower. The reason for this is a number of obstacles to the development of the digital economy in Uzbekistan.
> monopoly in many areas;
> low internet speed and poor quality;
> outdated legislation in the field of information technology;
> extremely low level of computer literacy among citizens;
> non-transparency of the legislation;
> Lack of IT specialists or their departure to other countries;
> information culture, low information hygiene;
> poor security of information technologies;
> Lack or (in some) absence of specialists in the governing bodies who understand the field;
> Slow (or stagnant) development of science and especially specific sciences.
If the above-mentioned problems are solved step by step, systematically, based on world experience, Uzbekistan can easily become one of the countries with a developed digital economy.
When we talk about the digital economy, we do not need to understand only Blockchain technology and their use in international financial markets or cryptocurrencies. Digital Economy is an economy in which digital communications are carried out using IT.
Some may wonder why the digital economy is needed and what it provides. When we talk about the digital economy, we do not need to understand only Blockchain technology and their use in international financial markets or cryptocurrencies. Of course, blockchain technology and cryptocurrencies are also part of the digital economy. But the Digital Economy means the economy in which digital communications are carried out using IT. At the same time, it can also be seen as a means of eliminating the shadow economy. Because, firstly, all transactions will be registered electronically, and secondly, they will be transparent. In addition, the use of new IT technologies in production reduces the cost of products and services.
According to experts, by 2020, more than 30% of large banks will start using blockchain technology in their operations. This is due to the fact that despite the relatively recent development of blockchain technology, its inclusion of revolutionary changes in existing business processes has aroused great interest among financial market participants.
There is another factor to consider. The President set the development of the digital economy as a priority. The reason for this is to ensure the rapid growth of the Uzbek economy, to keep pace with the times, to accelerate the integration of our country in the international arena and, as a result, to make Uzbekistan one of the most democratic and economically developed countries.
References
1. Павлов К.В., Носова О.В., Асадуллина Н.Р. Проблемы и перспективы цифровизации экономики на постсоветском пространстве // Экономика и финансы (Узбекистан). 2020 №4 С. 191-199
2. Махмудов Э.А. Цифровая экономика как важный шаг в развитии «умной» экономики// Экономика и финансы (Узбекистан). 2020 №2. С. 184-190.
